Marissa Mayer joined Yahoo as president and CEO in July of this year after serving Google for 13 years. Marissa is considered as only the hope that could draw up Yahoo on the track. Previously, we anticipated how the new CEO could leverage on her contacts to pull out Google’s talent pool for Yahoo. Today, she promulgated to designate senior Google’s one of the top advertising executive– Henrique de Castro–as Yahoo’s chief operating officer. Henrique will handle sales, operations, media and business division at Yahoo as an executive.
Henrique has a long experiences of serving Google’s ads business, redounding the company since 2006 and he is currently working as a vice president of “media, mobile and platforms”.
By the end of first half of 2012, Google’s ad revenue totaled nearly $21 billion, a 22% Y/Y growth. On the contrary, Yahoo succeeded to generate about $2 billion ad revenue by the end of first half of this year—remain unchanged compare to the same half of the last year.
However, Henrique could be very expensive for Yahoo especially when the company is focusing on cost-cutting in order to solidate its developing and business services. Yahoo is offering him a compensation package valued at about $58 million, besides a restricted grant (valued at $20 million) and a $1 million cash bonus for abdicating Google.
Is Mayer Trying To Forge Google’s Ideality At Yahoo?
Of course, Henrique is Mayer’s most high-profile hire since she took the responsibility as CEO at Yahoo. It’s pretty clear that the American multinational internet corporation has been struggling to have sledgehammer advertising business since last couple of years and Henrique could be one of the most appropriate persons for this purpose. However, he will take the responsibility at Yahoo in early next year.
Obviously, Mayer is endeavoring to de-emphasize yahoo’s cost-cutting strategy to fuel developing and ads services. She is quite interested to create Google like working enevironment by exerting its talents pool to Yahoo.
Is Yahoo-Microsoft 3 Years Alliance Paid Off?
It’s speculated that Mayer might try to tie up with Google for some sorts of advertising. On the other side, it’s also said that Eric Schmidt is interested in working with Yahoo U.S.. Before in late 2008, Schmidt had a talk with Yahoo after the fell of Microsoft’s buyout. ‘Yahoo Japan’ was not pleased with Yahoo-Microsoft partnership and that’s why, it declined to partcipate in their deals in 2009. However, Yahoo also wanted to make deal with Google, but legal procedures hurdled it to do that. Now, the road is clear for both and Yahoo could cancel the deal with Microsoft next year according to 2009 agreement. Of course, the Yahoo has suffered a lot after making a deal with Microsoft since 2009 and it would not like to continue in the future.