Yahoo fires CEO over the phone

YAHOO chairman Roy Bostock fired the company’s chief executive Carol Bartz over the phone yesterday, ending a tenure marked by stagnation and a rift with Chinese partner Alibaba.

Chief financial officer Tim Morse will step in as interim CEO, and the company will search for a permanent leader to spearhead a battle in online advertising and content with rivals Google and Facebook. Bartz took the reins in 2009 with hopes of reviving stalled growth and competing with up-and-coming rivals.

On Tuesday, her efforts were halted after Bostock called with the bad news.

“I am very sad to tell you that I’ve just been fired over the phone by Yahoo’s chairman of the board,” the outspoken CEO said. “It has been my pleasure to work with all of you and I wish you only the best going forward.”

The firing surprised few Wall Street observers, who had noted a rising torrent of criticism.

Yahoo is still one of the most popular destinations on the internet but faces competition from Facebook and from Google, which has a market value of $170 billion, 10 times more than Yahoo.

The decision to oust Bartz was reached by a unanimous vote of Yahoo’s independent directors, said a source close to Yahoo.