According to people familiar with the situation, the Wall Street Journal reported that Yahoo! Inc (NASDAQ: YHOO) is again talking to Time Warner Inc (NYSE: TWX), this time about taking over AOL, with Time Warner taking a stake in the combined entity. News Corporation (NYSE: NWS) has its eye on any Yahoo moves. Meanwhile, Microsoft Corporation (NASDAQ: MSFT) is considering what its next move against Yahoo might be and is talking to News Corp.
The Wall Street Journal also reported that, as part of the company's plan to cut costs, Tribune Co's Los Angeles Times newspaper may look to cut about 250 jobs, including about 17% of its news staff.
The Financial Times reported that Chrysler, which has been searching for foreign partnerships, signed with China's Great Wall Motor a memorandum of understanding to explore long-term business ties in areas that include technology, distribution and components.
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According to the Dallas News, AMR Corporation's (NYSE: AMR) American Airlines informed its flight attendants' union that is may lay off 900 flight attendants on August 31.
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Yonhap reported that LG Electronics will release "Dare," a new touch-screen mobile phone in the U.S. that will compete with Apple Inc's (NASDAQ: AAPL) latest iPhone models.
In a PowerPoint-style presentation intended to rebuke criticism of its commitment to enhancing shareholder value, Yahoo! Inc. (NASDAQ: YHOO) attacks Carl Icahn's recent track record as an investor.
One slide points out that 11 of Icahn's 15 most recent investments in public companies have declined in value since he took his position. But what exactly is Yahoo!'s point? That Icahn is a lousy investor and probably wrong for investing in Yahoo! too? If that's the case, then they'd better sell the company while they can before it turns into another Icahn dud!
According to people familiar with the discussions, the Wall Street Journal reported that Microsoft Corporation (NASDAQ: MSFT) has held discussions with Time Warner Inc (NYSE: TWX) and News Corporation (NYSE: NWS), among others, about joining it in a deal that could lead to the breakup of Yahoo! Inc (NASDAQ: YHOO). Some of the sources said the preliminary talks are unlikely to result in a deal with Yahoo!
Johnson & Johnson (NYSE: JNJ) is reportedly in exclusive talks to sell its wound-care business Ethicon to the private-equity arm of JP Morgan Chase & Co (NYSE: JPM), according to the Wall Street Journal. Terms of the potential deal were not disclosed.
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Sources familiar with the inquiry said that the Justice Department has opened a formal antitrust investigation into a deal that would allow Google Inc (NASDAQ: GOOG) to provide some search advertising for Yahoo!. The Washington Post reported that investigators will demand documents from Google and Yahoo!, as well as other large companies in the media and Internet industries.
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Reuters reported that regulators in the European Union are looking at the long-term effects of BHP Billiton Limited's (NYSE: BHP) $170B bid for Rio Tinto Group (NYSE: RTP). Sources familiar with the EU questionnaire said regulators have asked competitors and customers about effects of the deal on their businesses through 2015.
Yahoo's (NASDAQ: YHOO) embattled management and board have one month left to prove to shareholders that they made the right call in rejecting Microsoft's (NASDAQ:MSFT) bid. With shares trading at about $20, they are going to have to do some fancy footwork to show why rejecting a $31to $33 per share offer was actually good for shareholders.
Yahoo is trying to convince investors that a proposed 'search' deal with Google (NASDAQ:GOOG) will provide the growth needed to restore Yahoo to previous glory. According to an AP report: " By relying on Google's superior technology to show some of the ads alongside its search results, Yahoo believes it can increase its annual revenue by about $800 million and generate another $250 million to $450 million in annual cash flow."
Keep in mind that since the Microsoft deal fell apart, Yahoo has lost more than $16 billion in market cap. It is going to have to generate a lot more in revenues to show that they made the right choice.
My other problem is that I have many friends who over the last week have told me they can't access their Yahoo mail or open up their saved stock portfolio's on Yahoo Finance. I, personally, have been locked out for two days.
I read an article over the weekend about Yahoo! Inc. (NASDAQ: YHOO) and its reorganization attempts. Make no mistake about it, this company needs to alter its DNA if it intends to survive in a world without a Microsoft Corp. (NASDAQ: MSFT) taking it over.
In a nutshell, it looks like Yahoo! wants to retool its divisions so that it can more efficiently react to changes in the online marketplace. Yahoo! apparently feels that its current organizational structure inhibits growth and is looking to create new teams dedicated to developing products that will capture eyeballs and advertising opportunities as quickly as possible. The company also wants to focus on cloud computing, a technology that is important to the business sector.
Well, from the point of view of an investor looking at Yahoo!, I don't see anything here that persuades me to buy the stock. Synthesizing a new plan of corporate attack is pretty much par for the course for any company that is doing terribly and is looking to get back on the good side of Wall Street. But is there anything really exciting in the plan? No. It's just Yahoo! doing something. There's nothing too revolutionary going on. Centralizing this and that might add value. It also might not. It's all in the execution, and I'm not sure I want to trust a company that rebuffed Microsoft's reasonable buyout offer to execute anything at this point.
It should be no surprise to anyone that despite all the ranting and raving to the contrary Mr. Carl Icahn, billionaire investor, shareholder white knight and corporate raider is heating up things in the Yahoo! Inc (NASDAQ: YHOO) boardroom.
It has been reported that he purchased a sizable chunk of the company in the neighborhood of $25 per share, hoping to make another fortune pushing Yahoo back to the negotiating table with Microsoft Corp. (NASDAQ: MSFT).
This morning AP reported that Jerry Yang, CEO and company are lobbying major shareholders to rally support for their position that Yahoo! should get a higher offer or stand alone as an independent company. It seems to me that they are standing on lose ground given that many large and small shareholders alike have already spoken, and they would have taken the deal.
The market has spoken as well, with Yahoo stock losing over a third of it's value recently and nearing $20 per share this morning Icahn is losing 20% of his investment as things look today. This is turning into the battle of the billionaires.
I think this whole saga might make a cute Neil Simon play if they would let him into the meetings to take some notes.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I do not own shares in the stocks mentioned in this story.
Let's do a quick review of Jerry Yang's first year and a day since he became CEO of Yahoo (NASDAQ: YAHOO). The stock has lost about 20% of its value, and Yang botched merger negotiations with Microsoft (NASDAQ: MSFT) despite Microsoft seeking to acquire the company at a substantial premium to its current price. Investors fled for the exits after that. Now Yahoo has lost three executive vice presidents, two senior vice presidents and numerous other important executives -- including Flickr cofounders -- after the failure to work out a deal with Microsoft.
Oh and, just for fun, Carl Icahn is rattling his proxy fight saber, alleging that Yang and the board of directors "acted irrationally and lost the faith of shareholders."
All of this raises an interesting question: what exactly does Jerry Yang have to do to lose his job? Get arrested for drunk driving and go on a vicious tirade, a la Mel Gibson? Or perhaps he should try exposing himself in public? I mean, he is trying to get fired, isn't he? If he isn't, he's doing a darn good job acting like he is.
Many commentators have said that Icahn's demand that the company's entire board be ousted is excessive. But every day that Jerry Yang remains CEO is another indication that Yahoo's board is completely incompetent. If Yang has lost the faith of shareholders and top executives, what exactly is the board waiting for?
The lead news in most financial papers and at most money websites this morning is that Yahoo! (NASDAQ: YHOO) will put itself through a major reorganization. It means nothing.
According toThe Wall Street Journal, "Yahoo executives are discussing a plan to centralize numerous product groups, such as its mail, search and home-page divisions, into a global-product organization." Several very senior executives have left the company recently.
Putting the pieces of Yahoo! into new buckets is not going to mean much. The company still faces two significant problems that cannot be changed. The first is widely known. Yahoo!'s share of the U.S. search market is down to about 20% against Google (NASDAQ: GOOG)'s figure of over 60%. That trend will not get better. Google has the superior product.
Perhaps worse is that the online display advertising market is not growing as fast as it was a year or two ago. Part of this has to do with the economy, but the law of large numbers is hitting the industry. It has become big enough that posting 20% plus year-over-year increases is becoming harder.
Yahoo!'s one strength is display marketing. It has built and bought larger systems to serve and target ads in an environment where those strengths may not be terribly helpful.
Yahoo! can reorganize until the cows come home.
Douglas A. McIntyre is an editor at 247wallst.com.
The Wall Street Journal reported that, in an attempt to move past its takeover battle with Microsoft Corporation (NASDAQ: MSFT), Yahoo! Inc (NASDAQ: YHOO) is planning a reorganization. People familiar with the matter said executives are discussing a plan to centralize numerous product groups into a global-product organization. Details may be announced next week.
The Wall Street Journal also reported that an internal feud at Live Nation Inc (NYSE: LYV) over strategy may soon be resolved, as the concert promoter is reportedly negotiating the exit of chairman Michael Cohl.
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A recommendation by an Australian commission to open Rio Tinto Group's (NYSE: RTP) Pilbara railway to third parties could cost $30B if the idea is implemented, Rio contended and the Australian reported. The National Competition Commission, which advises Australian governments on infrastructure issues, has suggested that Fortescue Metals Group be given access to certain rail lines operated by Rio Tinto.
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A joint investigation by CBC News and the Canadian Press found one-third of people shot by Taser International Inc's (NASDAQ: TASR) Tasers reportedly required some medical attention, Engadget reported.
TechCrunch confirmed that Joshua Schachter, the founder of delicious, will resign from Yahoo!. Sources believe the near-stalled development of the new version of delicious may have played a part in his resignation.
Not only is Yahoo Inc. (NASDAQ: YHOO)'s soap opera regarding its future continuing to progress at breakneck speed, the company continues to lose executives at the same rate. While subjects like an employee compensation poison pill, Carl Icahn, stubborn Jerry Yang, a fed-up Microsoft Corp. (NASDAQ: MSFT) continue swirling around the Yahoo! campus, some of its best employees are waving goodbye to Yahoo! for good.
Jeff Weiner, one the of executives who actually runs almost all of Yahoo!'s consumer-facing businesses, is leaving. Usama Fayyad, Yahoo's chief data officer and the man responsible for trying to make use of the mountains of data Yahoo! collects on its customers into information that can lead to increased monetization, is going as well. Jason Zajac, a vice president of corporate strategy, is also out the door. In the blogging world, Jeremy Zawodny -- one of the better proponents of open-source software use inside Yahoo! -- is leaving too.
Will the madness ever stop? In Yahoo!'s case, probably not. The funny thing is that Yahoo! is profitable -- just not profitable enough when constantly compared to Google Inc. (NASDAQ: GOOG). But the stuffy stance it has had in the potential Microsoft buyout and bickering defiantly with Carl Icahn wreaks of personal ego more than sound financial decision making and shareholder fiduciary duty. Some of its top employees can smell the spiraling downturn of the company's fortunes and are lining up in a single file to leave permanently. Here's your sign, folks.
As anticipated, Yahoo! Inc. (NASDAQ: YHOO) and Google (NASDAQ: GOOG) announced a deal. The Wall Street Journal reports it's worth between $250 million and $450 million in additional cash flow to Yahoo.
The deal will be delayed a few months for regulatory approval. Under its terms, Yahoo will select which search term queries it offers Google paid search results for, the number and placement of Google results and how they are blended with its own results and those of other providers. Yahoo said either party can end the agreement in the event of a change in control. If control of Yahoo changes hands in the next 24 months, Yahoo must pay a termination fee of $250 million.
Poor Carl Icahn. He could have had a $33 a share deal from Microsoft Corp. (NASDAQ: MSFT), now all he has is 33 cents a share from Google. Cover your ears before his moaning and groaning begins. Yahoo shares are up 1% after hours after losing 10% during regular trading.
Businesswire reports that Yahoo (NASDAQ: YHOO) and Microsoft Corp. (NASDAQ: MSFT) have officially ended their discussions about any kind of partnership. Yahoo stock is down 11%.
According to Yahoo: "Microsoft is not interested in pursuing an acquisition of all of Yahoo!, even at the price range it had previously suggested. With respect to an acquisition of Yahoo!'s search business alone that Microsoft had proposed, Yahoo!'s Board of Directors rejected it for three reasons:
Such a transaction would not be consistent with the company's view of the converging search and display marketplaces,
Would leave the company without an independent search business that it views as critical to its strategic future, and
Would not be in the best interests of Yahoo! stockholders.
Expect more loud squawking noises from Carl Icahn to follow. Cover your ears!
A joint announcement by Yahoo! (NASDAQ: YHOO) and Google Inc. (NYSE: GOOG) scheduled for 1:30 p.m. PDT today, after market close, has rumor-mongers wondering whether the two will be announcing a big deal. Yahoo! has been on the block for so long that even the slightest breeze of news has everyone guessing; this morning, Doug McIntyre wrote that short interest was increasing as pessimists pooh-poohed Carl Icahn's plans.
Michael Arrington at TechCrunch says his sources are insisting it's only a search partnership, a deal that would probably have far less impact on the fate of Yahoo! -- it may signal more things to come, but let's recall that a "global advertising partnership" deal between Google and Time Warner, Inc. (NYSE: TWX)'s AOL in December 2005, in which Google purchased 5% of the internet company, never (yet) materialized into the acquisition many expected.
According to Yahoo! Inc (NASDAQ: YHOO), the Wall Street Journal reported that a severance plan investor Carl Icahn said is "excessively expensive" would come into play if Icahn is successful in his plan to take control of the company's board; Yahoo! maintained that the plan is structured to prevent Yahoo! from altering or dismantling it while under a proxy challenge.
The Financial Times reported that Lehman Brothers Holdings Inc (NYSE: LEH) almost reached a strategic deal with a group of Korean financial institutions as part of its recent capital raising initiative, and the investment bank may still sign an agreement with the Korean companies this year, inside sources said.
A source familiar with the matter told dealReporter that Barnes & Noble Inc (NYSE: BKS) is conducting due diligence, but has not established whether it will competitively bid for Borders Group Inc (NYSE: BGP). Should Barnes & Noble indicate real interest, the biding process could be delayed, the source said.
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The Detroit News reported that Ford Motor Company (NYSE: F), in an effort to keep up with changing consumer demand in the U.S., is assembling a plan that will shift entire truck plants to car production.
UBS AG (NYSE: UBS) won't comment on write-down estimates, but according to the Wall Street Journal, investors are expecting it as prices for mortgage securities have significantly gotten worse over the past several weeks as evidenced by Lehman Brothers Holdings Inc (NYSE: LEH) profit warnings.
Yesterday Lehman's stock fell 8.7% as the firm announced a projected $2.8B second quarter loss and a $6B capital raise. Options activity indicated a lessening volatility, the Wall Street Journal reported, a sign that perhaps the worst may be over.
According to a person familiar with the matter, the Financial Times reported that China's Qingdao Haier has approached investment banks to advise it on a bid for General Electric Company's (NYSE: GE) appliance business.
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A brief filed by plaintiffs in a shareholder lawsuit against Yahoo! Inc (NASDAQ: YHOO) and its directors claimed that an employee severance plan put in place to protect workers after a merger with Microsoft Corporation (NASDAQ: MSFT) should be repealed immediately. The New York Times reported that the plaintiffs believe the plan could skew the outcome of a proxy battle between Yahoo! and Carl Icahn for control of the company.
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