5 CEOs in 5 years. Of course there's been no innovation (what the analysts are banging on). How can a company innovate when a new CEO comes in every year with their own objective and changes the current strategy to a new strategy? Imagine Apple trying to develop new products with 5 different CEOs, in 5 years, with 5 different strategies. Yeah, good luck. As soon as you start to innovate towards a new strategy the new CEO comes in and changes it all up! Engineers aren't going to sign up for that.
This is why the Marissa Mayer hire and the new line of board seats is SO important. They are going to bring stability, a single strategy, and good talent for the next several years so that the innovation actually has time to breathe. Facebook, Google, Apple, and Amazon built their dominance with stability through one CEO (well, Google changed after a long while) a strong board, and smart employees. Yahoo is now positioning themselves for that same opportunity in my opinion.
Sure the assets (Alibaba, Yahoo Japan) are great to have but they should just be viewed as a bonus to the core business. If yahoo can get the innovation to start pouring out consistently (think of the mobile Flickr update and the great press it received) then the company is well positioned for the future because it will be a unique situation where you have a growing core business AND assets that are worth billions of dollars. What other tech company would be able to claim that?