In an example of providing a solution to the wrong problem, Yahoo! today announced the hiring of a new CEO, Scott Thompson of PayPal. While it's clear that Yahoo! has had a lack of leadership at the top for awhile, hiring a new CEO isn't exactly what for the company that has lost nearly all of it's shine in the last couple of years. As I mentioned in an earlier post, the problem with Yahoo! isn't the CEO…it's the leadership at the board level.
As long as Chairman Roy Bostock and others insist that Yahoo! continue as a public company that can somehow evolve into a blockbuster again, I fear that results are going to suffer. I also suspect pride is part of the problem here. Back in 2008, Microsoft offered almost $55 billion for the company only to be snubbed by the board of directors. Today, their market cap is around $19 billion.
While it is important to have a strong CEO at the top, it is even more important for a board of directors to have the courage to make radical change. Yahoo! still generates a lot of traffic but hasn't found a strong way to monetize it. Even worse, the culture at Yahoo! is going to have to come alive with some kind of clear vision and direction for the future. With Thompson's background in technology, it's still hard to say what that direction might be.