Jan. 17 - Jeffrey Goldfarb and Breakingviews columnists discuss CEO Marissa Mayer's decision to fire her pricey No. 2 and what it says about Yahoo's future.
But let's try to -- to take a break from all the bank earnings this week turn our attention to what has been the hottest story Britain. Use the web site. Which is Yahoo! and -- -- firing her number two. In her first real it's sort of speed bump as CEO. Rather it was a real disaster a higher -- had actually pretty decent run at least on some of the numbers. Station to get over the middle of but he twelve. Lots of -- -- finance this stocks up big doll and showed from Google coming to run you know -- stock is up -- 150% since then. That's a good sold some of -- Bobo which is -- you know at that huge chunk of yuppies numbers actually comes -- Bubba which. Recently it has written for the draw the first big decision was targets -- right to -- Doesn't criticisms. That she's forcing companies have that time she's two people who one of the big as expensive time with this guy -- Castro also from Google. It was promised. Approaching sixty million dollars and now that he's leaving. Sixty keeping -- and -- we don't know exactly pressing keep that in this he was fired for cool as cold -- usually means light. Something really bad now -- just no telling them to the rent. He gets to keep most of that Lou as far as we can he was brought over to basically do what he was doing -- Google which is that. Sales and and the problem is that of course it's one thing to sell ads. Who will pretty much most people predict that are -- he did in reasonably good job there to music so much much harder to sell me on. You think about it when they sign telling Democrats. That's -- The hot area they haven't -- well liked and it rates are going now athletes have stayed steady but the of the business history. And the problem is the other part the biggest part of Yahoo!'s sales actually is is they outsource. -- searched it to Microsoft that's about a third -- and irony. And you don't wanna be you know your partner to be a second run firms in in a market dominated by Google says it's just not a great place in earn money. Yahoo!'s been trying to get do they can't because it's if they want to go to Google at the peak yet that's concerned. So the problem is that Yahoo!'s that really troubled business and -- and if you think he's got some excitement she's done some deals she's you know at the stock price. The problem is it's really really difficult business and firing to cast -- It is the sign that you know is it a sign that Yahoo!'s just too hard for any or -- other aspects. Mean you talk with so there's obvious some lessons about what congress is going through it Yahoo! but there -- some broader lessons here -- that you kind of altitude here well so that the couple right I mean it. From from what. You read in repulsive than people who Plaisted to these companies these people. That they didn't she get all that well even though they were both -- Google may be it to that maybe Grissom led led didn't know him that well Google say to promise. Somebody that much money when you don't even know if you can work with them successfully which seems a bit of problems right that's one thing. I mean I think the other thing you can take a look at. Transplanting people from the 88 market leader it's a somewhere else. Does end up and it still a lot of it. Is that what they're full of sometimes to that have been the business Kudlow person for -- -- you you saw it a little bit. That JC Penney -- admiral -- -- them retell sooner the stuff from apple totals as a total disaster JC Penney and and you even sort of little bit. -- it in the financial business where people have left companies like over sex. Think case that the more I'm great I can southern edge -- -- that -- that a problem and they what's refute but no it's not built some place so that the organization that is maybe -- them. That the -- are. We will leave it there. Check -- -- where it at breaking news that will be back with more. Breaking -- next week.