HitChrome

Former Autodesk chief Carol Bartz has been chosen by Yahoo to be that company’s new chief executive.

She will be replacing Yahoo co-founder Jerry Yang, who angered investors by turning down a $47.5-billion takeover bid from Microsoft last year. That would have made Yahoo stock about $33 a share. It has now collapsed to about $12, according to the BBC.

The appointment of Bartz brings to an end the two-month search for a successor to Yang. Internet pioneer and co-founder of Yahoo, Yang gave up his CEO position after potentially lucrative deals nearing 50 million dollars with Microsort Corp. collapsed.

Before her 14-year stint leading Autodesk, Bartz, 60, was at Sun Microsystems, eventually becoming the company’s second-in-command.

She has been named in Fortune Magazine’s list of the 50 Most Powerful Women in Business and Baron’s list of the World’s Most Respected CEOs.

Yahoo’s shares fell 3.5 percent and then by a further percent. Analysts say that although Bartz is no insider of the internet industry, the business is not necessarily in need of that. Rather, what Yahoo really requires is someone who can bring order back to the internet giant, and it is precisely these kinds of leadership qualities that Bartz has demonstrated on numerous occasions.

Wall Street analysts are saying the Microsoft deal could be back on the table now that Bartz is at the helm.

Google and Yahoo look all set to drop their proposed ad alliance and this could happen as early as next week as early as next week because of antitrust objections by the Justice Department, the Wall Street Journal reported Friday.

Google is considering pulling out of the deal because it doesn’t want to accept the conditions the government might require to avoid harm to competition, the sources said.

The officials from the two companies met with regulators and appeared to be unwilling to make the compromises needed to satisfy Justice Department concerns that their combined power would overwhelm the online advertising market.

The deal was announced in June and proposed that Google start selling its search ads throughout Yahoo’s US properties.

Needless to say that the demise of the plan would represent another tough blow for Yahoo, which had hoped that the tie-up with Google would help it boost revenues after it rejected a 47.5-billion-dollar takeover bid from Microsoft. This upcoming collapse of the planned venture between the two biggest online advertising companies would deprive Yahoo of as much as 450 million dollars in operating cash flow over a year, according to estimates. What’s Yahoo upto next?