Things haven't quite worked out that way.

Instead, the year brought two big rounds of layoffs, an embarrassing exodus of high-profile managers, disappointing financials, a tanking stock price, free-falling employee morale and little or no advances in key areas, like search usage and search advertising. Oh yeah, and yet another corporate reorganization that many cynically viewed as more spinning of the wheels.

At the center of it all was Microsoft's historic acquisition attempt. It's clear that it radically disrupted Yang's plans and that he failed to handle the situation properly. It was a curve ball that, hard as he tried, he struck out on.

Although he never admitted it, the unsolicited bid clearly rankled Yang, whose turnaround vision for Yahoo didn't include a merger with Microsoft. "The Microsoft offer was a devastating distraction for Yahoo's upper management," said industry analyst Greg Sterling from Sterling Market Intelligence.

It's unclear whether Yang may have been able to execute his turnaround plan better if the Microsoft bid hadn't been made, Sterling said. "The other way to look at it is that the Microsoft situation simply accelerated the inevitable," he said.