Yahoo has appointed Carol Bartz, previously CEO of Autodesk, as its new CEO. She replaces outgoing CEO and co-founder Jerry Yang.
Bartz held her position at Autodesk for 14 years.
Her challenge at Yahoo will be to turn the Internet search company around following a year in which it has faced some major challenges.
Last year was dominated by the Microsoft takeover bid, which saw its position in the search market suffer.
Meanwhile, Susan Decker, who was deputy to Yang and a contendor for the CEO position, has resigned and will leave after a transition period.
The appointment has rekindled speculation that Yahoo may reopen negotiations with Microsoft.