On 13th Jan 2009 Yahoo! appointed Carol Bartz, the former executive chairperson of Autodesk as its new Chief executive officer and a member of the board of directors. Carol Bartz who had appeared in Web 2.0 Summit in 2010 revealed the recent downplay of the company’s former aspirations in the search arena. Even Microsoft’s Bing now powers Yahoo’s backend search which as described as a”win” phenomena by her and also not forgetting to tag Facebook as “competition.”

Yahoo has also raised the curtains by revealing a variety of new features designed to compete directly against similar offerings from the likes of Google and Facebook.  Companies like Groupon and LivingSocial has involved itself with Yahoo Local Offers trying to leverage those users seeking local businesses from their mobile devices which are currently in the bucket-testing stage.

On the other side the Yahoo Messenger beta offers its users the ability to share their status across networks and like Facebook, Flickr and twitter updates. This extensive interoperability with Facebook sidelines Bartz’s comment aside as Yahoo is well aware of the borderline-ubiquitous nature of the social network.

According to a spokesperson, Yahoo is evaluating expenses to align with the company’s financial goals but a 20% reduction in Yahoo’s workforce is misleading and inaccurate.

If Yahoo finds itself in deep troubles, the effect would trickle down to Microsoft which is putting various attempts to carve the search market share away from Google. As Bing depends upon Yahoo’s search engine market share for scale as it competes against Google’s dominance. Microsoft is dependent on Bing in various ways apart from the online Ad revenue that it generates but also the accumulated data which helps to inform the other Microsoft initiatives also like cloud-computing.