Under The Radar News - Tuesday

• End of story. Microsoft (MSFT) and Yahoo (YHOO) are done, Microsoft International president Jean-Philippe Courtois says. "That's the end of the story." Courtois says Microsoft will focus on becoming a leading provider of internet services, advertising, and social media.
• Not the kind of guy you want to get angry. Yahoo (YHOO) CEO Jerry Yang may be toast after bungling the Microsoft deal, if 16% stakeholder and legendary money manager Gordon Crawford has anything to do with it. AOL Time Warner Chairman Steve Case was gone within a year of its fiasco.
• Nextel sale may only net $5B. Sprint (S) may only get $5 billion if it decides to sell off Nextel, just 1/7 of the $35B it paid in 2005. Cowen & Co.'s Tom Watts estimates a selling price of $5-8B. A sale or spinoff, however, make Sprint a more attractive acquisition target.
• Taiwan firm aims to put Touch on iPhone. Taiwanese High Tech Computer unveiled a sleeker, more powerful version of its Touch smartphone that takes direct aim at Apple's (AAPL) iPhone. The Touch Diamond runs on Microsoft's (MSFT) Windows Mobile. HTC says it sold more than three million Touch units over the past 11 months.
• iPhone exclusivity unraveling. New deals that will see Vodafone (VOD) and Telecom Italia (TI) selling Apple's (AAPL) iPhone on a non-exclusive basis could see carriers in countries bound by exclusivity deals pushing for similar treatment.
• A picture's worth... Idee says its upcoming image search engine will do for images as what Google (GOOG) did for text search.
• Map rap. Chinese officials are worried Google's (GOOG) online maps will expose state secrets and damage its territorial integrity. It's also investigating Sohu's (SOHU) and Baidu's (BIDU) maps.
• Smaller Bear. JPMorgan (JPM) may layoff more than 10,000 Bear Stearns (BSC) employees over the next several months.
• Flight cutbacks. American Airlines is eliminating some flights due to high gasoline prices. Delta (DAL) tacked on a $110 fuel surcharge to its LA-Honolulu flights. JetBlue (JBLU) cancelled the opening of four daily Boston/JFK flights due to high fuel costs.
• Gassing sales. Chrysler (DAI) is offering car purchasers guaranteed gasoline below $3/gallon for three years.
• Hedge funds hoard cash too. Hedge funds are sitting on their hands, and their cash, according to Deutsche Bank's annual Alternative Investment Survey. 33% of respondents say they're holding an unprecedented (for hedgies) 5-10% in cash, vs. a typical 1-3%. The survey finds 80% of investors are bearish for 2008, but 40% expect a 2009 rebound. For the first time ever, investors are weighing Risk Management as a criteria for choosing a money manager.
• Oh how to finance that JetSki. GE Money (GE) will no longer finance the purchase of recreational vehicles and most watercraft, which it considers a low-margin business. The move may impact clients such as Coachmen (CINC), Thor (THO), and Monaco Coach (MNC). "The loss of a major lender is never good as the remaining players pick over the exiting lender's originations stream and it tends to lead to tightening in the arena," BB&T Capital Markets analyst John H. Diffendal says.
• Murdoch's costly silence. Rupert Murdoch's refusal to testify in a trial that accuses the company of hacking into EchoStar's (DISH) security code and posting it on the internet could cost the firm hundreds of millions of dollars, the trial judge says. EchoStar CEO Charles Ergan says Murdoch hacked the DISH network in revenge for failed merger talks between the two.
• Flash in the can. A JV between Micron (MU) and Intel (INTC) to produce NAND flash memory is being pushed off for about six months due to oversupply in the NAND market.
• GMAC helps ResCap bide time. GMAC (GM) may lend struggling ResCap another $3.5B (on top of the $2B it already injected) in order to help it avert bankruptcy.
• Rambus (RMBS) is climbing this morning on rumors of a possible acquisition by Intel (INTC).

Comments

[John Capozzi:]

Again Allibba comes out with great numbers just anouced today. They are in a high position of search and add in China. Yahoo owns 39-40% of Allibba. Allibba also stated it is strengthing its ties with Softbank and it also has an interest in Baidu. Why doesnt the media and news lines state this? Why do they not see the potential Yahoo has with its foreign partners? It is well known that the major market to internet access, search and add revenue is now and i the future going to be coming from China and the rest of Asia. We are talking about search and add revenue into the 100's of billions of dollars going into 2010. I have been saying i can see a easy team up of Baidu, Allibba and Softbank taking Yahoo USA and mergering into 1 in the mid 40's. These numbers could be tthe reason why Yahoo's share price is holding up well. The volume is huge and you can very wll see a merger of these 4 companies anounced at anytime now. If funding is needed i can see the Chinese Government helping just like in the buyout of IBM's computer division by Lenovo which also had anti trust and national security issues because of the Tellabs government technology but passed easily. This also opened the USA market for Lenovo. This merger could also give Baidu and Yahoo and Allibba and Softbank more market share in the USA and worldwide. Then you toss in AOL for a very little 20% stake from Timewarner with a huge cash infusion and then 5% out sourcing to Google because they own 5% Of AOL with another billion or more of new revenue a year and yes you have Yahoo at 40. Now for Microsoft Mr. Balmer, give Yahoo 36 dollars today and you will have a giant chance of entering the search and add sector and making a nice profit instead of losing 700 million a year in this sector by buying smaller companies. It does not work for you! You right now have a chance of uniting two great companies that could take over the internet space and also in search and add with in 2-3 years or less. Your investment would be returned many times over in a short period of time. This offer will not be there if Yahoo decides i the next day or so to out source its search and add to Google. Mr. Balmer ust look how many times that Google has spoiled your party. Are you going to risk your companies future growth and shareholders value again to Google? This is the best chance and your not over paying for Yahoo at 36. Look at Allibbas numbers they were great then look at yours. Then in short order watch when Softbank posts its numbers. aise the bid to 36 now and close before again Google wins and this time will be the biggest loss of all and there will not be no 2nd chance. Yes i am a Yahoo investor. I am just concerned how the media is projectig Yahoo and dont even put out the true value of Yahoo's properties. In fact they dont even mention it. Yahoo's true value is in their foreign propertys which are easy to hide. You keep second guessing Google and continue to lose. Will they do it to you again and this time nail you down with no options? You really dont think China will come forward and support a Baidu, Softbank, Allibba and Yahoo merger with the 2008 games coming in August? I would think again. Also Google will find a way to gooble up Yahoo through its partners. They will glady pay over 40 and they can even add more for ati trust problems and they will do it shortly before you have a chance to wait for Yahoo's anual meeting on July 3rd. They will have some kind of agreement on the table in a day or so as quoted last week with Yahoo. You give Yahoo no choice but to go with Google if you do not come back to the table now. You go on vacation now? What are you thinking? Have your bankers and other officers close this deal now at 36. You will not have another chance. ust look at the foreign numbers and again the snake head of Google coming back and this time biting your whole arm off.

2008 May 06 12:54 PM