Carol Bartz is in as Yahoo CEO effective immediately—and Sue Decker is leaving as president after being passed over for the job. Decker will stay on as president for a “transitional” period.  Bartz comes to Yahoo (NSDQ: YHOO) from Autodesk, where she has been executive chairman since stepping down in 2006 after 14 years as CEO. A few hours after reports of her appointment started to emerge, Bartz is already on board, holding management meetings this afternoon; in fact, she’s already listed on the management team page. (You can read the release after the jump.)

Bartz and Roy Bostock, chairman of the Yahoo board, held a brief conference call just after the official news went out, He mentioned her reputation for a “decisive style” multiple times and stressed that Bartz is “the only person to whom we’ve offered this job.” Decker gets a thank you for all her work and for agreeing to help with the transition—the conference call equivalent of a laurel and a hearty handshake. Bartz picked up the verbal baton with a “ya-hoo.” From the call:

— “I believe there is now an extraordinary opportunity going forward to create value for our shareholders. ... Should we do a search deal? Should we divest of certain assets?” She said she has a lot of thoughts on these subjects but it would be very presumptuous of me to discuss them publicly my first day on the job.” Describing herself as a straight shooter, she said she will do a “deep dive” before talking more to analysts and reporters. She said the next time we would hear from here is at the Yahoo earnings call on Jan. 27.

Asked about her background in q-and-a, Bartz said she didn’t know CAD when she joined Autodesk and “I suspect I have a little brain power to learn what it takes to understand media.”

—“I think Yahoo has unfortunately been battered in the last year…. the important thing we’re going to focus on is being best in all of our markets and creating new markets… We’re going to kick a little butt.” More to come.

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Things were for Yahoo (NSDQ: YHOO) shareholders were looking pretty dark back on Nov. 17, when Jerry Yang said he was stepping down as Yahoo’s CEO. The day the news hit, Yahoo’s stock price closed at $10.63 cents. And today, following the news that former Autodesk CEO Carol Bartz would be succeeding Yang—and that Yahoo President Sue Decker would be resigning her post—Yahoo’s last trade was for $12.10—a 13.8 percent rise since Yang’s announcement. But that doesn’t mean Yahoo has a lot to celebrate, as Yahoo ended slightly down at -0.12 percent for the day, after opening this morning at $12.22. Here’s a chart of Yahoo’s stock since Nov. 17:

When Jerry Yang announced two months ago that we was giving up the reins at Yahoo (NSDQ: YHOO), Carol Bartz wasn’t one of the names being tossed around as a likely replacement. The initial short list included former AOL-er and VC Jon Miller, Google (NSDQ: GOOG) exec Tim Armstrong and ex-eBay (NSDQ: EBAY) CEO Meg Whitman. Bartz’s name surfaced publicly for the first time only late last week in a report that said the board was “close” to making a choice. Almost as interesting as Yahoo’s somewhat left-field choice for a new head is the roster of candidates that publicly declined the gig—including News Corp.‘s Peter Chernin and former Vodafone (NYSE: VOD) head Arun Sarin.

—Jan 9: Report: Yahoo ‘Close’ To Finding A CEO; Autodesk’s Bartz ‘On The List’
—Dec 17: Velocity’s Miller Out Of The Running For Top Yahoo Job Or Takeover: Report
—Dec 15: Thanks But No Thanks: Ex-Vodafone Head Not Interested In Yahoo CEO Post After All
—Dec 9: Former Vodafone Head May Be Interested In Yahoo Post
—Dec 8: Former Vodafone Head Arun Sarin’s Name Floated As Prospective Yahoo CEO
—Dec 5: Chernin: No Interest At All In Being Top Yahoo
—Nov 17: Poll: Who Should Be the Choice For Yahoo CEO Position?
—Nov 17: Yahoo CEO Search: Obama-Like Immediate Priorities
—Nov 17: Yahoo CEO Search: Some Possible Names: Miller, Chernin, Freston, Rosensweig and Others
—Nov 17: Jerry Yang To Step Down As Soon As Yahoo Board Finds Replacement

Huffington Post is wasting little time in putting last month’s $25 million funding to work: as expected, the company says its buying comedy news site 236.com. The comedy site was created in Nov. 2007 as part of a joint venture between Huffington Post and IAC (NSDQ: IACI). Now, after a year as a standalone, 236.com will be integrated into Huffington Post as a vertical channel.

The purchase represents Huffington Post’s recognition that it needs to expand its offerings beyond straight commentary, now that the presidential campaign is over and traffic and advertising are expected to fall off. 236.com claims roughly 2 million unique users a month, which is a drop compared to HuffPo’s 16 million monthly uniques.

The sell-off of 236.com comes after IAC dissolved its programming group last month as part of its post-spinoff reorg. In addition to 236.com, IAC’s programming group managed “content-based” sites such as CollegeHumor.com; Very Short List (VSL); 236.com; RushmoreDrive.com and Tina Brown’s recently launched Daily Beast. At the time, our Staci D. Kramer predicted that HuffPo would own 236.com entirely.

• IAC Dissolving Programming Group; Lehman Leaving, Jackson Taking New Role; Which Sites Are in Play?
• Huffington Post Closes $25 Million Third Round; Plans Include ‘Focused Acquisitions’

Update: It’s official: Carol Bartz as CEO is in and Sue Decker is out. More to come.

Original story: The Wall Street Journal is reporting that Carol Bartz has been picked by Yahoo’s board of directors to succeed Jerry Yang as CEO and that she has accepted the job. Bartz, executive chairman and former CEO of Autodesk, first emerged as a candidate last week, some two months into the search. A Yahoo (NSDQ: YHOO) spokesman said he could not comment on whether an announcement is due today.

Update: Bartz wasn’t on anyone’s public short list last November when Yahoo cofounder and CEO Jerry Yang, who was under pressure from the minute he took the post from former chairman and CEO Terry Semel, announced his decision to step down. The last time Yahoo plucked a CEO from the outside, the board went with seasoned entertainment vet Semel—a sign of its interest in media and entertainment, This time, the choice seems to be a Silicon Valley insider but it may not signal anything more than a belief that she has the right management experience, public company background and style mixed with industry know-how to steer a very troubled company that should be more successful than it is. Yahoo does a lot of things right but none of that matters as long as the image is of a company that is flailing.

Then there’s the issue of other top management: while Yang promises to step back, it looks like Sue Decker may well stay on as president. If that is the case, Decker will have survived two CEO changes despite being directly tied to many of the company’s perceived or real failures.

Meanwhile, Yahoo’s stock is trading down by about 1.3 percent as the market heads to a close. Kara Swisher, who first reported Bartz as a candidate last week, reports that her sources say Bartz has been approved for the job and has accepted it. From Kara: “One thing is sure: Bartz does know tech, unlike former CEO Terry Semel. And she also knows how to run a company like clockwork, unlike outgoing CEO Jerry Yang, who – while inspirational – has had a rocky tenure.”

CNBC’s Jim Goldman talked to activist investor Eric Jackson,  who points to Bartz’s ties to Yang and Decker—she’s served on the Cisco (NSDQ: CSCO) board with Yang and the Intel (NSDQ: INTC) board with Decker. He describes the choice as “dubious” and says Decker couldn’t get the job because it would signal that no outsider wanted it. Not sure I agree with that last—you could also say going outside shows no faith in Decker as the top leader.

In the latest in a series of deals in the online-marketing space over the past two days, Theorem has acquired Webpencil, an interactive ad design firm, for an undisclosed sum. N.J.-based Theorem offers campaign management and analytics services for search, display and email ads, and the addition of Webpencil gives the firm a creative arm with rich-media experience.

Las Vegas-based Webpencil’s client roster has included the Obama campaign and CareerBuilder, and founders David and Cheryl Rosowsky will remain with the company in their current roles. The other recent activity in online marketing includes new funding for Goodmail, Yodle, Go Internet Media and avVenta. Release.

• Updated: Goodmail Systems Adds $5 Million To Third Round
• Local Lead Gen Provider Yodle Closes $10M Third Round To Expand National Effort
• Online Ad Provider Go Internet Media Gets $10 Million First Round

Wedding planning and content site The Knot  has acquired a community site aimed at new mothers called Breastfeeding.com. Terms weren’t disclosed.

The addition of Breastfeeding.com to The Knot follows a few other acquisitions of the past year that are designed to expand the company’s purview beyond nuptials and into what often comes after. In particular, The Knot has been focusing on pregnancy sites, such as the purchase of TheBump.com for $1.4 million last February, as well as parents community TheNestBaby.com and general parenting site Lilaguide.com, which were added in 2007. Release

• Earnings: The Knot: Revs, Ad Sales Up, But Profits Down 24 Percent
• 10-Q Watch: The Knot: $1.4 Million For The Bump; Higher Costs

Two people will share the title of managing editor at The Washington Post (NYSE: WPO) , as the paper tries to tie the print and online newsrooms closer together, WaPo reports. Elizabeth Spayd, a WaPo vet who has served on both sides of the Potomac River that divides the print and digital newsrooms, will oversee the hard-news sections of the paper. She will share the ME role with Raju Narisetti, a former deputy managing editor of the Wall Street Journal, who will be responsible for the feature sections.

The announcement comes just a week after Phil Bennett stepped down as WaPo’s managing editor after four years. Bennett was passed over as editor in favor of former WSJ ME Marcus Brauchli last summer. Narisetti had worked with Brauchli.

Spayd joined the paper in 1988, and has served as editor of washingtonpost.com since 2007. She worked under Executive Editor Jim Brady, who said he was leaving his post last month. A replacement for Brady is expected soon. More after the jump.

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Digital production and online marketing company avVenta Worldwide has received a large $20 million strategic investment by an affiliate of PE firm TZP Group. The three-year-old Charleston, S.C. company says the investment, its first funding, will be used for general expansion efforts, such as building new production centers in the U.S. and Europe. And aside from helping it through an uncertain economy, avVenta also plans to use the proceeds to acquire related digital marketing companies over the next few months as well. Gridley & Company served as avVenta’s financial advisors in the transaction. Release

Ever fancied a part in Jesus Christ Superstar or Phantom Of The Opera? Your big moment may soon be coming: Andrew Lloyd-Webber’s Really Useful Group is developing a range of video games based on the theater impresario’s musical stage shows, paidContent:UK has learned.

The group, founded in 1977 to run Lloyd-Webber’s stage, TV, music and other interests, has been speaking with half-a-dozen international game publishers, believed to include EA, aiming to develop titles over several years across consoles, PCs and mobile, as part of its multimedia expansion.

The shows, which also include Joseph and Cats, may seem like strange fodder for games, but the group says two industry shifts have prompted its interest: the emergence of more female gamers in the traditionally male-dominated game consumer demographic, and the popularity of singing- and music-based titles like Playstation’s Singstar and Xbox’s Lips. Guitar Hero maker Harmonix’s forthcoming Beatles performance game also shows how music brands can be translated into play.

The first Lloyd-Webber titles will let players sing along as characters in the composer’s shows and could involve elements of “audition,” just like in his BBC shows I’d Do Anything and How Do You Solve A Problem Like Maria? and last year’s Lloyd-Webber-themed episode of American Idol.

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Ad network and online marketing company Go Internet Media has secured a $10 million first round of financing from U.K.-based PE Firm Kennet Partners. Internet Media runs lead-generation portals (like Free Education Guide) in the secondary ed space, as well as a cost-per-action (CPA) ad network. The Santa Clara, CA-based firm will use the funds to help grow its sales team; and since it doesn’t operate a pure-play, CPM-based ad network, Internet Media may be sheltered from the plummeting display ad rates that have been forecast for this year. Release.

• M&A Report: ‘08 Interactive Ad Deals Down 29 Percent
• Politico Ad Network Gets A Boost From Reuters
• LucidMedia Gets $8.8 Million Third Round, Launches Ad Net

Casual gaming site Cafe.com, formerly called Boonty, has sold its digital distribution platform to Nexway, a French online content distribution provider, for an undisclosed sum. Cafe.com’s president and CEO Roman Nouzareth told GigaOm that the company offloaded the Boonty platform so that it could focus more on growing its site. The site launched in May 2007 and blends social networking with casual games; players can create avatars, win real-world prizes and pull content in from their profiles on sites like Facebook and YouTube.

• French Downloads Platform Nexway Gets $6.7 Million In Second-Round Funding
• Casual Games Boonty Acquires Chinese Firm Gamehub

Looks like Kevin Martin will be followed by Obama-Biden tech advisor Julius Genachowski as chairman of the Federal Communications Commission. A source close to the transition team told the Wall Street Journal President-elect Barack Obama has picked Genachowski for the FCC job; observers also had him on the short list for the new chief technology officer post Obama plans, but Genachowski’s experience as chief counsel to Clinton era FCC Chairman Reed Hundt seems to have tilted the choice in that direction. Genachowski also has significant media and start-up experience: the Harvard Law classmate of Obama worked for Barry Diller as a senior IAC (NSDQ: IACI) executive before founding LaunchBox Digital. He’s a cofounder and managing director of Rock Creek Ventures. His resume also includes stints as a law clerk for two U.S. Supreme Court justices.

• @  CES: FCC’s Martin: No Resignation Plans; Opposes DTV Date Change, Broadband Content Regulation
• Transition Watch: Obama’s FCC Advisors Include Crawford, Werbach
• Obama Begins Transition; Advisors Are Named For Tech And Communications Issues

RSS feed aggregator Newsgator has raised a $10 million sixth-round funding. The company has lined up past investors, including Masthead Venture Partners, Mobius Venture Capital and Vista Ventures, for this latest funding. With this cash infusion, the Denver, Colo.-based company has raised a total of $39 million. Its last round was in December 2007, when it got $12 million in a fifth round.

Newsgator did not offer details about what it planned to use the funding for, though it hinted that it would go towards “expansion efforts.” The company made a point of saying that despite the darkness hovering over most businesses, online and off, its Q408 was Newsgator’s highest revenue gain ever, though it did not say precisely what the current and previous figures are. Release

• RSS Feed Provider Newsgator Secures $12 Million Fifth Round Funding
• Fundings We Missed in Q2: NewsGator Receives $7 Million Fourth Round

CBS (NYSE: CBS) is broadening its deal with Verizon (NYSE: VZ) to include VOD rights for programs in both standard and high-def formats, 60 Minutes, CSI: Crime Scene Investigation and Survivor (pictured). The pact is in addition to an earlier arrangement with CBS shows on Verizon FiOS TV, its all-digital fiber-optic TV service, which is available in parts of 14 states.

Terms of the deal were not disclosed. Other specifics, such as the length of the contract the two signed, weren’t released either, though CBS Corp. CEO Les Moonves described the arrangement as “long-term” in a statement. Verizon isn’t just concentrating on FiOS TV, as CBS is allowing it to run full-length episodes of its programming on VCast, Verizon Wireless’ mobile video platform. More on our sister site MocoNews and in this release.

• CBS Interactive’s TV.Com Relaunches With Video From Showtime, Sony, Endemol And More
• CBS, Verizon Wireless Video Deal: A First For CBS

Sling Media today announced a major shake-up that sees co-founders Blake and Jason Krikorian as well as senior leadership in its Sling Entertainment division leaving. Some highlights are below and the rest is on our Sling Media channel.

—Signs Of Life For Sling’s Video Portal, Other Services; Sling.com Starts Limited Beta
—Sling-DISH: EchoStar Explores Spin-off Into Two Public Companies
—Sling-DISH: Interview: Blake Krikorian, Chairman and CEO, Sling Media
—Sling Media To Be Acquired By EchoStar; Deal Valued At Approximately $380 Million; Spinoff Possible?
—Sling Media To Launch Its Internet To TV Video Device/Service SlingCatcher
—Sling Media Forms Media Entertainment Group; Ex-MTV Digital Head At The Helm

E-mail provider Goodmail Systems has added $4 million worth of $5 million in additional funding to a previously closed third round. Omidyar Network led the new funding; Bessemer Venture Partners led the original round, which is now worth $25 million in total. Mountain View, CA-based Goodmail has raised $45 million in funding since 2005 for its email marketing services, including white-listing for companies like Wal-mart. Former IAC (NSDQ: IACI) exec Peter Horan took the reins as CEO in May 2008, and the company recently released an in-email video ad product, dubbed Certified Video. Release.

Updated: Jordan Cohen, Goodmail’s senior director of industry relations, confirmed that the company had received the $5 million in its entirety—with Omidyar leading the new investment, alongside additional funding from private investors, including Horan.

Digital content incubator DECA has added $10 million to its war chest, in a second round led by new investor Rustic Canyon Partners, per a regulatory filing that socalTECH confirmed. Previous investors Atomico, General Catalyst Partners and Mayfield Fund also participated in the funding, which brings DECA’s total raise to $15 million.

The SM-based studio launched shows like World of Warcraft-centric Project Lore and mommy blog show Momversation last year, and invested in a property of its own: teen-centric video site Smosh. No word yet on what DECA plans to use the funding for—though we can expect more acquisitions, since CEO Michael Wayne told us that the studio would “continue to add properties” both in the long term and near future.

• Digital Studio DECA Invests in Online Video Show Smosh
• Online Entertainment Studio DECA Launches; Gets $5 Million Funding

Now that 2008’s finally closed out, we get a better read on the state of the market in terms of M&A—and Petsky Prunier’s latest Deal Notes report (via ClickZ) shows that the interactive advertising space was hit pretty hard: transactions were down 29 percent from 2007, and investors spent about five times less in 2008 than they did in 2007. Of course, 2007 was the year of the ad network/exchange feeding frenzy: Google (NSDQ: GOOG) bought DoubleClick for $3.1 billion, Microsoft (NSDQ: MSFT) acquired aQuantive for $6 billion and Yahoo (NSDQ: YHOO) paid $680 million for Right Media—so those deals and the economic implosion skewed the results. Still the numbers are worth a look:

—Deals down sequentially and year-over-year in Q4 : There were 31 deals worth about $436 million in the interactive ad space in Q408—down 18 percent in terms of volume from Q3, and 29 percent in terms of money spent. Year-over-year the stats were worse: transaction volume was down 55 percent from Q407, and dollar value was down 77 percent.

—Overseas interactive agencies were a big draw : Interactive agency deals dominated the M&A activity in Q4, with eight deals worth a total of about $83 million. Interestingly, big ad holding companies focused on shoring up their digital practices overseas: Aegis Group acquired Malaysia-based shop IF, Publicis picked up Brazil-based Tribal, and Microsoft’s Razorfish’s gobbled up Spanish shop WYSIWYG.

Most Active Interactive Advertising Subsegments (click to enlarge):

• Tracking The Shift In Media M&A Dollars in 2008
• 2008: The Year of Non-Deals
• JP Morgan Sees Long-Term Dominance For Performance-based Ads; Online Video Loses Luster