Yahoo issued a statement late Thursday confirming its removal of Carol Bartz after the news was first reported by blog AllThingsD. The blog reported that  Bartz had sent an email to her former staff at Yahoo. She wrote that the Yahoo’s Chairman of the Board fired her over the phone, “It has been my pleasure to work with all of you and I wish you only the best going forward.”

Yahoo also mentioned the formation of an executive leadership council charged with working with a recruitment firm to find her placement and supporting former Warner Bros. co-CEO Tom Morse as the interim CEO.

“On behalf of the entire board, I want to thank Carol for her service to Yahoo during a critical time of transition in the company’s history, and against a very challenging macro-economic backdrop,” said Roy Bostock, chairman of Yahoo’s board.

Still vague is how Bartz’s exit will influence Yahoo’s bid to acquire Hulu. According to Variety, Yahoo has been mentioned as a leading contender to make the purchase, along with Google, Dish Network and Amazon.

Yahoo’s online display advertising market has dwindled down with the increase in competition. The platform’s 2011 share of 13.1% is down from 14.4% the previous year while Facebook is up at 17.7% and Google is up at 9.3%. After the announcement of Bartz’s firing, Yahoo shares climbed 6% in after-hours trading.

Any guesses who could replace Bartz?