The decision Ms. Bartz had to make was go big or give up; she decided to give up:
Ms. Bartz said she sold the search business because Yahoo could no longer continue to match the level of investment Google and Microsoft were making in searching...There's also and interesting quote where she sees the goals for the company:
"My first reaction when I got here was that I wouldn’t even do a search deal... until I looked at our expense structure and our actual options and looked at what our prime job was, which is to grow audience."I read this as saying that search is taking a disproportionate share of resources to run an maintain without being a leader in the market. She would rather spend the money on creating top notch properties; developing content/media for consumers.
The article briefly mentions the potential impact on jobs at Y!, saying that it could mean that 400 or more jobs could hit by layoffs.