There is no doubt about her qualifications but the problem with Yahoo isn't that simple for a Google Executive to solve by just flirting with some applications as in Mayer did with Google News and mail, etc., at Google.

But one good thing, as the analysts argue is that the apointment is a good PR exercise and that was clearly applauded by Wall Street as well – by lifting its shares 2% to $15.98 in after-hours trading. Jonathan Yarmis, an analyst at HfS Research told USA Today that Mayer's hiring could aid in recruiting efforts. “Yahoo has been able to attract someone of the highest caliber here, someone who understands the business. This is really the first thing out of Yahoo in a decade that you can't snicker at. She's the kind of person you didn't think Yahoo could get," Yarmis said.

But manifold problems at Yahoo has only seen CEO chairs rolling – the last one to go was Scott Thompson, who tried his hands both at tech and marketing.

Once an Internet giant, Yahoo has been reduced to a collection of websites, doing business in dozens of countries but still the company serves around 700 million people. Had it not fallen because of few follies, it would not have ceded ground to Google and Microsoft to surge ahead.

Notwithstanding the fact that it still enjoys dominance in online news sports and finance, Yahoo's future is still under cloud. The problems multiplied after the co-founder Jerry Yang's resignation and this was followed by a massive shakeup in February 2012 in which half of its directors were replaced. Scott Thompson went on to become the CEO but he was also shown doors after Daniel S. Loeb, a major Yahoo shareholder accused him of forging his academic credentials.

But the appointment of Mayer has surprised many as the company has failed to attract the best talent, apparently because of its receding flight. So it remains to be seen how a 37-year-old engineer who is also a good orator changes the fortunes of Yahoo.