Yahoo will now need a dynamic leader who will get people excited and bring a strong product vision, he said. Morse would clearly be an interim leader while the company looks to hire a permanent replacement, Sterling said.

Taking on a new leader while the company continues to struggle will be a challenge. "The problem with a new CEO is if you have more of a revolving door," Sterling said. Often, new leaders want to bring in their trusted advisers and remove some existing executives.

The IDG News Service