We'll go with the latter. So she should shake up the organization, streamline it to perform better and build a product roadmap for the next wave of the Internet. Then go on a buying spree. Perhaps first up a merger with AOL to give Yahoo stronger content and a social networking platform thanks to Bebo.
Then strengthen this base by buying a blogging platform from Six Apart and finally a look at Ning - that way she could get Andreessen's brain as well as a stronger bounce into the next wave. Other than that she needs to keep driving Yahoo into the wireless space with more deals with operators. Then Bingo - an all new Yahoo!