Yahoo has been struggling to jump-start its revenue and regain the technology edge that made it one of the Internet market leaders in the late 1990s and the first half of the 2000s.

Its troubles began in the second half of the 2000s, when Google started to dominate Internet search, then the fastest-growing and largest segment of the online advertising market.

Afterwards, as it struggled to hold on to key talent and went through several major waves of layoffs, Yahoo was unable to stay on top of hot technology trends, ceding ground to younger, nimbler companies such as Facebook and Twitter.

Mayer will be expected to boost product development as a key to increasing usage and revenue, according to Yahoo.

"I look forward to working with [Yahoo's] dedicated employees to bring innovative products, content, and personalized experiences to users and advertisers all around the world," Mayer said in a statement.