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Well, she can't do worse than Yahoo's corporate "leadership" has recently. Then again, I could say that about myself.
I think that Mayer is probably as good of a choice for CEO as Yahoo could make. She has a lot of knowledge about how Google operates, she is used to success and probably has a few ideas that were never put into play at Google that she now has the opportunity to green light. She also probably has some insights as to where Google has a weak market presence, and can attempt to exploit that to Yahoo's benefit.
The main challenge she faces is determining exactly what Yahoo is. Just thinking off the top of my head, I can't come up with a concise definition, unlike Google, Facebook, Wikipedia, et al, which are easy to sum up in a few words. Yahoo, um, let me try: vulnerable email company that uses Bing for search functions. Not too catchy. If Mayer can make it so that it is easy to complete the sentence, "Yahoo is....,"than I think she will have gone a long way towards showing me Yahoo is relevant again.