Now That Henrique de Castro Is Out, Here's What Yahoo! Needs

The Internet icon reframes its business around original content as it works on ways to grow its ad revenue.

Jan 21, 2014 at 2:30PM

Yahoo! (NASDAQ:YHOO) is losing Chief Operating Officer Henrique de Castro for all the right reasons, Fool contributor Tim Beyers says in the following video.

Re/code's Kara Swisher first reported that de Castro was on his way out after the executive was noticeably absent from CEO Marissa Mayer's keynote address at CES. More importantly, Mayer hired de Castro in 2012 for his expertise as an ad sales executive. Display ad revenue fell 12% and 7%, respectively, in the second and third quarters.

In an SEC filing, Yahoo! said that de Castro would receive "severance benefits" per the conditions of his employment as outlined in his offer letter and a February 2013 severance agreement. How much he's due isn't entirely clear but his initial package called for $600,000 in base salary, a cash bonus intended to be 90% of salary, and $36 million worth of restricted stock and performance stock options.

A hefty price, to be sure. Yet Tim says he'd rather Mayer find and hire talent that's more aligned with her all-in bet on original content and contextual "Stream Ads" that sit alongside original articles in Yahoo! app feeds.

Do you agree? Or would you have preferred Yahoo! do a better job leveraging de Castro's talents? Please watch the video to get Tim's full take and then leave a comment to let us know whether you would buy, sell, or short Yahoo! stock at current prices.

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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in the article at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool recommends Yahoo!. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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