SAN FRANCISCO – Yahoo's stock rose nearly 5 percent on Wednesday after the company fired its CEO following more than 2 1/2 years of financial lethargy.

Tuesday's ouster came as investors were convinced that Carol Bartz couldn't steer the Internet company to a long-promised turnaround.

To fill the void, Yahoo's board named Tim Morse, its chief financial officer, as interim CEO. Bartz, who became CEO in 2009, lured Morse away from computer chip maker Altera Corp. two years ago to help her cuts costs. Yahoo said it is looking for a permanent replacement.

Yahoo Chairman Roy Bostock, also a target of shareholder frustration, informed Bartz about the move over the phone, according to an e-mail the outgoing CEO sent from her iPad that was obtained by the All Things D technology blog. The blog first reported Bartz's ouster.

Yahoo didn't return requests for comment Tuesday and Wednesday.

Bartz's rude dismissal "made you feel a little bit like you were watching some reality TV show," Forrester Research analyst Shar VanBoskirk said Wednesday.

Macquarie Securities analyst Ben Schachter said the handling of Bartz's departure was unseemly and a sign of even more drama to come at Yahoo.

In a research note late Tuesday, Schachter predicted there will be a wide range of conjecture about Yahoo's future, with the most likely speculation centering on Yahoo as a takeover target during a vulnerable time.

Alternatively, Yahoo could make a bold move itself by trying to buy the online video site Hulu.com, which is already talking to suitors, or trying to sell its 43 percent stake in the Alibaba Group, one of China's most prized Internet companies. Bartz's tense relationship with Alibaba CEO Jack Ma had fed investor dissatisfaction about her leadership.

Youssef Squali at Jefferies & Co. said that the Internet company's challenges, and the fact that Bartz was Yahoo's third CEO in four years, will make it tough for the board to find an "A player" for the job.

Squali said Yahoo could be sold to a large media company like News Corp. or be bought by some sort of consortium that could feature Microsoft Corp. or AOL Inc.

"In all, we believe that it is more likely that the board reaches an agreement to sell the company or parts of the company before a new CEO is found," Squali wrote Wednesday.

In a statement Tuesday, Yahoo said it is undergoing a "comprehensive strategic review" in its latest effort to give investors a reason to buy its stock, but the company didn't offer details.

Bartz, 63, led an austerity campaign helped boost Yahoo's earnings, but the company didn't increase its revenue even as the Internet ad market grew at a rapid clip.

The financial funk, along with recent setbacks in Yahoo's online search partnership with Microsoft Corp. and the Alibaba investment, proved to be Bartz's downfall. Her ouster comes with 16 months left on a four-year contract that she signed in January 2009.

That contract entitles her to severance payments that could be two to three times her annual salary and bonus, along with stock incentives she received during her tenure. Bartz received a $2.2 million bonus to supplement her $1 million salary last year.

Yahoo has now replaced three CEOs in a little over four years. During that time, Yahoo has lost ground in the Internet ad race to online search leader Google Inc. and Facebook even though its website remains among the world's most popular.

Known for her no-nonsense leadership and sometimes gruff language, Bartz arrived at Yahoo as a respected Silicon Valley executive who had won praise for turning around business software maker Autodesk Inc. But she had no previous experience in Internet advertising, the main way Yahoo makes money.

That hole in her resume immediately raised questions whether she was qualified for the job, and those doubts only escalated as Yahoo's revenue continued to sag.

At first, Bartz blamed bad timing; she started the job during some of the bleakest months of the Great Recession. Later, she would say that she inherited such as mess from her two predecessors, Yahoo co-founder Jerry Yang and former movie studio boss Terry Semel, and that it would take time to get Yahoo back on the right track.

At one point, she even compared her challenge to those that faced Steve Jobs when he returned to Apple Inc. as CEO in 1997.

Unlike Jobs, Bartz never was able to articulate a strategy to win over investors.

"She focused on plugging holes in the ship instead of turning it around," said Gartner Inc. analyst Ray Valdes.

The disappointing performance was reflected in Yahoo's stock price, which closed Tuesday at $12.91. That's 81 cents, or 7 percent, higher than where Yahoo shares stood when Bartz was hired as CEO. During the same period, Google's stock price has risen by more than $200, or 66 percent, and the technology-driven Nasdaq composite index has climbed by 60 percent. A group of investors led by Goldman Sachs Group concluded privately held Facebook is worth $50 billion in an appraisal done earlier this year. That's triple Yahoo's current market value.

Bartz never hit any of the price targets that the board set for her when she was hired. That means none of the 5 million stock options that she received upon signing her contract had vested by the time she was ushered out the door.

Investors seemed happy to see Bartz go. On Wednesday, the Sunnyvale-based company's stock rose 61 cents, or 4.7 percent, to $13.52.

Although Bartz's exit as CEO came suddenly, her departure isn't a shock. The pressure to replace her grew earlier this year after Bartz acknowledged Yahoo's search partnership with Microsoft wasn't producing as much revenue as the companies anticipated.

Then, in May, Yahoo stunned investors by disclosing that Alibaba had spun off an online payment service in a move that threatened to diminish the value of Yahoo's investment in the Chinese company.

Alipay in July agreed to a complex settlement that could eventually be worth more than $1 billion to Yahoo, but there were too many uncertainties in the deal to placate shareholders.

Bostock had steadfastly stood behind Bartz whenever she was attacked by investors or analysts. In a Tuesday statement, Bostock thanked Bartz for "her service to Yahoo during a critical time of transition in the company's history" without providing an explanation for why the board decided to replace her.

BGC partners analyst Colin Gillis said Yahoo's board "has got to look in the mirror here."

"Swapping the CEO without swapping the (board) chair doesn't solve your problem," he said. "The person that hired Carol to begin with deserves to share the culpability."

To help Morse, Yahoo set up an "executive leadership council" that includes some of the executives that Bartz recruited, including the company's products guru Blake Irving and the head of its North American operations, Ross Levinsohn. While he worked for News Corp., Levinsohn helped put together the Hulu video site and is seen as a possible CEO candidate.

Analysts also have speculated that David Kenny, an Internet veteran who joined Yahoo's board in April, might be a candidate for Yahoo's CEO job. Kenny is currently president of Internet networking services provider Akamai Technologies Inc.

With its stock sagging and its management in limbo, Yahoo could be more vulnerable to a takeover attempt by a private equity group or another opportunistic bidder attracted to what remains one of the Internet's best-known brands. Microsoft offered to buy Yahoo for $47.5 billion, or $33 per share, in 2008 only to be rebuffed.

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AP Technology Writers Rachel Metz in San Francisco and Ryan Nakashima in Los Angeles contributed to this story.

SAN FRANCISCO – A federal grand jury in San Francisco has charged a San Antonio man with harassing a high-ranking Google executive with more than 20,000 Twitter posts, some of which were threatening.

According to court records, Gregory Calvin King was arrested in Texas last month and transported to San Francisco to face charges he threatened Google vice president Marissa Mayer, the company's first female engineer.

The indictment identified the alleged victim only as "M.M." but King's Twitter account shows him sending thousands of threatening posts to Mayer.

King faces up to seven years in prison if convicted. His arraignment date hasn't been set.

Google did not immediately respond to a request for comment.

MEXICO CITY – Think before you tweet.

A former teacher turned radio commentator and a math tutor who lives with his mother sit in a prison in southern Mexico, facing possible 30-year sentences for terrorism and sabotage in what may be the most serious charges ever brought against anyone using a Twitter social network account.

Prosecutors say the defendants helped cause a chaos of car crashes and panic as parents in the Gulf Coast city of Veracruz rushed to save their children because of false reports that gunmen were attacking schools.

Gerardo Buganza, interior secretary for Veracruz state, compared the panic to that caused by Orson Welles' 1938 radio broadcast of "The War of the Worlds." But he said the fear roused by that account of a Martian invasion of New Jersey "was small compared to what happened here."

"Here, there were 26 car accidents, or people left their cars in the middle of the streets to run and pick up their children, because they thought these things were occurring at their kids' schools," Buganza told local reporters.

The charges say the messages caused such panic that emergency numbers "totally collapsed because people were terrified," damaging service for real emergencies.

Veracruz, the state's largest city, and the neighboring suburb of Boca del Rio were already on edge after weeks of gunbattles involving drug traffickers. One attack occurred on a major boulevard. In another, gunmen tossed a grenade outside the city aquarium, killing an tourist and seriously wounding his wife and their two young children.

On Aug. 25, nerves were further frayed when residents saw armed convoys of marines circulating on the streets, making some think a confrontation with gangs was imminent.

That is when Gilberto Martinez Vera, who works as a low-paid tutor at several private schools, allegedly opened the floodgates of fear with repeated messages that gunmen were taking children from schools.

"My sister-in-law just called me all upset, they just kidnapped five children from the school," Martinez tweeted.

In fact, no such kidnappings occurred that day. Defense lawyer Claribel Guevara said the rumors already had started and that Martinez Vera was just relaying what others told him. She said he never claimed to have firsthand knowledge of the incident.

But in a subsequent tweet about the kidnap rumor, he said, "I don't know what time it happened, but it's true." He also tweeted that three days earlier, "they mowed down six kids between 13 and 15 in the Hidalgo neighborhood." While a similar attack occurred, it didn't involve children.

Prosecutors say the rumors were also sent by Maria de Jesus Bravo Pagola, who has worked as a teacher, a state arts official and a radio commentator. She says she was just relaying such messages to her own Twitter followers.

"How can they possibly do this to me, for re-tweeting a message? I mean, it's 140 characters. It's not logical,'" said Guevara, quoting her client.

Better known on the radio and social networks as "Maruchi," her Facebook site now features the Twitter logo, a little bluebird, blindfolded and standing in front of the scales of justice, with the slogan "I too am a TwitTerrorist."

Online petitions are circulating to demand her release, and the pair's cause has been taken up by human rights groups that call the charges exaggerated. Amnesty International says officials are violating freedom of expression and it blames the panic on the uncertainty many Mexicans feel amid a drug war in which more than 35,000 people have died over the past five years.

"The lack of safety creates an atmosphere of mistrust in which rumors that circulate on social networks are part of people's efforts to protect themselves, since there is very little trustworthy information," Amnesty wrote in a statement on the case.

In violence-wracked cities in the northern state of Tamaulipas, citizens and even authorities have used Twitter and Facebook to warn one another about shootouts.

Anita Vera, Martinez Vera's 71-year-old mother, said her 48-year-old son still lives at her house with his girlfriend. She said he told her that had posted his messages after the panic had already started.

"He told me "Mom, I didn't start any of this, I just transmitted what I was told,'" Vera Martellis said after visiting her son in prison.

"He used the computer, but I swear that my son never wanted to do anybody harm, or start a revolution, like they say he did," said Vera, who ekes out a living selling flowers.

Raul Trejo, an expert on media and violence at the National Autonomous University of Mexico, said the terrorism charge is unwarranted, but described the case as "a very incautious use of Twitter."

He noted that in Mexico, "Twitter has been used by drug traffickers to create panic with false warnings." In one case, a wave of messages about impending violence shut down schools, bars and restaurants in the central city of Cuernavaca last year.

Trejo said Twitter users must learn "not to believe everything, and simply take the Twitter messages as an indication that some (report) is making the rounds."

But the real problem appears to be that governments cannot prevent drug cartel violence or even accurately inform citizens about it. Local news media are often so battered by kidnappings and killings of reporters that, in many states, they are loath to report about it.

"These Twitter users had accounts with a few hundred followers," Trejo noted. "If these lies grew, it is not so much because they propagated them, but because in Veracruz as in most of the rest of the country, there is such a lack of public safety that the public is inclined to believe unconfirmed acts of violence ... The government doesn't make clear what is happening."

Defense attorneys also say their clients were held incommunicado for almost three days, unable to see a lawyer.

It appears one of the most serious sets of charges ever brought for sending or resending Twitter messages.

Tweeter Paul Chambers was fined 385 pounds and ordered to pay 2,000 pounds ($3,225) in prosecution costs last year for tweeting that if northern England's Robin Hood Airport didn't reopen in time for his flight, "I'm blowing the airport sky high!!"

Venezuelan authorities last year charged two people with spreading false information about the country's banking system using Twitter and urging people to pull money out of banks. They could serve nine to 11 years in prison if convicted.

In 2009, a Chinese woman was sentenced to a year in a labor camp for posting a satirical Twitter message about the Japan pavilion at the Shanghai Expo.