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Yahoo stock rises on Bartz firing

Wednesday, September 07, 2011 - 01:41

Sept 07 - The firing of Yahoo CEO Carol Bartz ends a tumultuous tenure but could open up new opportunities for the company. Bobbi Rebell reports.

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PLEASE NOTE: THIS EDIT CONTAINS 4:3 MATERIAL Yahoo stock on the rise on Wednesday - less than a day after the company fired its outspoken CEO Carol Bartz- abruptly over the phone. Chief Financial Officer Tim Morse will stop in as interim CEO as the company searches for a permanent leader. Standard & Poor's equity analyst Scott Kessler: SOUNDBITE: SCOTT KESSLER, EQUITY ANALYST, STANDARD & POOR'S (ENGLISH) SAYING: "I think a lot of folks thought that Carol Bartz had essentially overstayed her welcome. She was combative. She wasn't adding a tremendous amount of value" The move ends a tumultuous tenure which began in January of 2009, amid hopes of reviving stalled growth and better competing with rivals like Google and Facebook. Some analysts have said the departure is a sign the company had run out of options- citing Yahoo's failure to dominate the advertising and content markets- and handing over its search operations to Microsoft. But Kessler has a buy rating on the stock in part because of the strength of the company's Asian holdings: SOUNDBITE: SCOTT KESSLER, EQUITY ANALYST, STANDARD & POOR'S (ENGLISH) SAYING: "There is still tremendous value in the assets. The franchises, the properties, the offerings, the global reach and I haven't even started to talk about those Asian assets. the 35% stake in Yahoo japan. The 43 percent stake in Alibaba group. Those have substantial value and we think as a result Yahoo shares should be trading even at a much higher level than they are now." While the company has not yet hired investment banking advisors, a person close the company said it was likely to meet with various firms in the coming weeks- adding to speculation they could be ripe for a takeover or some sort of deal. Bobbi Rebell, Reuters.

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Yahoo stock rises on Bartz firing

Wednesday, September 07, 2011 - 01:41