Yahoo! Is Giving Itself Away
Chris DeMuth Jr. • 48 Comments
Chris DeMuth Jr. • 48 Comments
Yahoo: Figuring Out Alibaba And Then Focusing On Original Content Creates Upside Catalyst
Jacob Donnelly • 39 Comments
Jacob Donnelly • 39 Comments
Getting From BooHoo! Back To Yahoo Again May Not Be That Far Off
Lord Baltimore • 51 Comments
Lord Baltimore • 51 Comments
Yesterday, 8:33 PM
- Verizon (VZ +0.6%) is getting a leg up on competing bidders for the core assets of Yahoo (YHOO +3.3%) -- by hiring an investment bank who was one of Yahoo's top advisers last year, Reuters reports.
- The telecom has reportedly added Bank of America to its team -- which would offer not only intimate knowledge of Yahoo, but also a big balance sheet in case of financing help. Yahoo's other investment banks (Guggenheim, LionTree, Allen & Co.) are boutiques with limited ability to fund the deal.
- BofA was lead adviser last year when Yahoo explored spinning off its stake in Alibaba, a plan it later abandoned.
- While Verizon's prepared to buy all the core assets, sources said, it's mainly (and unsurprisingly) interested in the ad-tech tools, and perhaps things that can be combined with corresponding businesses at AOL.
Wed, May 25, 11:12 AM
- In a surprise revelation, AT&T (NYSE:T) made a bid for Yahoo (YHOO -2.1%) and is still in the running for the core Internet business, Bloomberg reports.
- They were out of the offing according to earlier reports. But they kept involved in the process through a stake in YP Holdings -- which was involved in the early round in April -- and while YP isn't pursuing the transaction any longer, AT&T is still around.
- The interest from the telecom giant would present a formidable challenge for presumed frontrunner Verizon (NYSE:VZ). But Verizon didn't submit one of the highest first-round bids, a pair of the sources said.
- The process has another week or likely more time to play out.
Wed, May 25, 10:23 AM
- Yahoo (YHOO -2.5%) is following Alibaba (down 4.1%) lower after the Chinese e-commerce giant disclosed the SEC is probing consolidation practices and related-party transactions, as well as data reported regarding Alibaba's Singles Day activity.
- Yahoo rallied earlier this month after Alibaba reported its revenue growth accelerated in calendar Q1. The company's 384M-share Alibaba stake has a current pre-tax value of $29.9B.
- Now read: Yahoo: Low Bids Wouldn't Be Surprising
Mon, May 23, 5:20 PM
- Yahoo (NASDAQ:YHOO) bidders were unimpressed with the company’s due diligence materials, which is why they lowered their bids, two sector bankers say.
- Watchers anticipated bids between $4B and $8B, but expectations dropped to $2-3B, according to the Wall Street Journal.
- The lowball offers came after potential buyers saw information in Yahoo’s “virtual data room” as part of due diligence, causing them to reconsider valuation estimates, the bankers said. “They saw the data room, and sharpened their pencils.” One banker says Yahoo’s confidential information memorandum disconcerted buyers for several reasons: information was not comprehensive or detailed; business projections were “not compelling” and the ratio of revenue to EBITDA was “troubled.”
- Source: CFTN
- Now read Yahoo's Marissa Mayer Pays Herself »
Fri, May 20, 9:57 AM
- Yahoo (NASDAQ:YHOO) is down 2.4% (better than the 6% decline it was tracking premarket) after last night's report that bids for the Internet pioneer's core business are coming in lighter than expected, at $2B-$3B.
- CNBC's David Faber says sources are calling that report "completely wrong," noting that such a bid would be lower than the lowest of the bids seen in the first round of bidding. "Nobody has seen numbers of that type" in what has been a "fairly robust auction" at this point, Faber says.
- "Could it be perhaps that Verizon (NYSE:VZ) would love to have it out there, the idea that it's coming in lower so that it conceivably could game the situation?" Faber asks. "I don't know."
- The core business has more than $600M in EBITDA, including the losing parts, which would make for a very low multiple at $2B-$3B, he notes.
- Now read Yahoo's Sale Could Still Derail »
Thu, May 19, 11:14 PM
- With just a couple of weeks before the next round of bids is due for the core assets of Yahoo (NASDAQ:YHOO), offers are expected in the range of $2B-$3B, The Wall Street Journal reports -- lower than a $4B-$8B range that had become conventional wisdom over the past couple of months.
- Verizon (NYSE:VZ) is still considered a front-runner, and it and private-equity rivals are expected to start in the low end of that range, sources told the WSJ.
- Still unclear, though, is exactly which assets those bids would cover. Bids might vary considerably from each other in structure.
- Access to a Yahoo "data room" by bidders -- and the more detailed look at Yahoo's struggles that provides -- may be dampening hopes that Yahoo had for higher bids (at one point, for $10B for the core Internet business).
- Now read Revisiting My Yahoo Investment: A Declining Search Business »
Mon, May 16, 6:31 PM
- Jon Jacobson's Highfields Capital Management got out of Yahoo (YHOO +2.7%) and Microsoft (MSFT +1.5%) in Q1, and trimmed most of its stake in McDonald's (MCD +0.6%) while adding other consumer names, according to its 13F filing.
- The firm sold 12.79M shares of Microsoft (valued at $709.7M) and 7.14M shares of McDonald's ($808M), along with selling 7.2M shares of Yahoo (about $239.5M worth).
- It retains a stake of 4.76M shares of McDonald's. Meanwhile, it took a new position in Marriott (MAR +1.2%) -- 6.86M shares valued at $488.3M -- and bought 2.79M shares in Walgreens Boots Alliance (WBA +0.8%).
- Now read Microsoft - When Do Investors Get To See The Beef? »
Sun, May 15, 3:31 AM
- On Friday, news broke that Berkshire Hathaway (NYSE:BRK.A) chairman Warren Buffett is backing a consortium that includes Quicken Loans founder Dan Gilbert in a bid for Yahoo (NASDAQ:YHOO).
- A successful bid would be a relatively rare journey into digital media for Buffett. But Rick Edmonds of Poynter Institute says Buffett’s history of betting on struggling companies that wield a large user base could work in Yahoo’s favor. “It’s kind of consistent with Buffett’s pattern of buying things that are out of favor, undervalued and have a big customer base,” he says. “The paradox is Yahoo's huge, it remains huge, and it's got a lot of customers. It's not the case customers are fleeing them right and left, it's just that no one can get a good pattern of growth."
- Note that former Yahoo president and CFO Susan Decker is now a director at Berkshire. Last month she said Yahoo’s next owner should "create a distinction in consumers' minds about why they love Yahoo still,” and that doing so would be better if Yahoo is "private or part of a much larger corporation." It’s possible that with Decker’s input, Buffett would look to rehire former Yahoo executives such as Ross Levinsohn.
- It’s possible that the consortium has an eye on Yahoo Finance. Sources say Gilbert has shown interest in that unit. Buffett also credited Yahoo with doing a “terrific” job of live streaming Berkshire’s shareholder conference, during which he noted BRK had been slow to adapt to new technology.
- Source: Reuters
- Now read A Shotgun Wedding For Yahoo! (Podcast)
Fri, May 13, 6:46 PM
- Warren Buffett (BRK.A, BRK.B) is in on the second round of the auction for the core assets of Yahoo (NASDAQ:YHOO), along with Quicken Loans' Dan Gilbert, according to Reuters' Greg Roumeliotis.
- Yahoo is flat in after-hours action so far.
- Buffett is backing a consortium bidding for the assets that includes Gilbert, sources told the organization.
- Updated 6:55 p.m.: And Yahoo is now up 1.2% after hours.
Thu, May 5, 1:25 PM
- Though Yahoo's (YHOO +2.4%) efforts to sell its core business get far more ink, Alibaba's (BABA +3.7%) movements continue having a bigger impact on its shares. The web portal is trading near $37 today after Alibaba posted mixed FQ4 results - EPS missed due to large investments in areas such as local services and entertainment content, but revenue beat as annual sales growth accelerated to 39% from FQ3's 32%.
- Driving the acceleration: Alibaba's Chinese retail marketplace (Taobao/Tmall) revenue rose 41% Y/Y to $2.84B, an improvement from FQ3's 35% growth. Marketplace GMV rose 24% to $115B, and Alibaba's monetization rate on these sales improved to 2.47% from 2.17%. International commerce revenue rose 21% to $308M, and cloud computing/Internet infrastructure revenue 175% to $165M.
- Aggressive spending led Alibaba's costs/expenses to rise to 60% of revenue from 58% a year ago. Cost of revenue rose to 35% of revenue from 29%; R&D, sales/marketing, and G&A were either flat or down as a % of revenue. $118M in losses were recorded for Alibaba's share of its Koubei local services JV with Alipay parent Ant Financial. Alibaba ended FQ4 with $17.3B in cash and $9B in debt.
- Yahoo's 384M-share Alibaba stake is currently worth $30.2B.
Wed, May 4, 4:58 PM
- AT&T (NYSE:T) is breaking up a 15-year hosting partnership with Yahoo (NASDAQ:YHOO), electing to give most of that business to Synacor (NASDAQ:SYNC).
- Synacor has jumped 56% in after-hours trade; YHOO is flat in postmarket action.
- In return for hosting AT&T's Web and mobile portals, Yahoo had shared revenues from the sites with the telecom, while AT&T customers got access to Yahoo's search engine and media services on the AT&T portal.
- Yahoo's share came to about $100M/year, which will now go to Synacor, a company with a market cap of $44.5M.
- Yahoo will still keep a small piece, continuing to host mail for AT&T customers. Yahoo says only that AT&T is still a "valued partner."
Mon, May 2, 8:12 AM
- Following the Berkshire Hathaway (BRK.A, BRK.B) annual meeting on Saturday, Warren Buffett is spending the morning with CNBC.
- On IBM: He's still a buyer of the stock, though not aggressively so. His cost basis is a little less than $170 per share vs. the current $146. He's comfortable with the company, he says, or else he wouldn't own the stock. Yes, IBM has tough competition, but it's always been so and always will be so.
- Again defending Coca-Cola (NYSE:KO): It's "illogical" to tax sugar in soft drinks and not all sugar. He says he drinks five cans of Coke a day ... "I can't imagine anyone feels better than I do."
- On American Express (NYSE:AXP): There's no question that "payments" are being attacked on all fronts by some very smart people. Losing Costco was a big deal, but CEO Ken Chenault decided the economics didn't make sense. The company is buying back about 6% of the float each year, raising Berkshire's stake in AmEx without it having to lay out a dime. It's a wonderful business, but it's not a business that's competition-free, nor will it ever be.
- Turning to Yahoo (NASDAQ:YHOO): Obviously, they deteriorated significantly, and something has to change. On Marissa Mayer's $55M golden parachute ... Severance numbers throughout corporate America are a little bit crazy.
Mon, May 2, 2:33 AM
- A new SEC filing reveals that Yahoo's (NASDAQ:YHOO) board has agreed to a $55M severance package for the embattled chief executive if the company's auction of its Internet operations ends in a sale that ousts Mayer from her job.
- That's a lot of money for a CEO who hasn't been able to keep Yahoo's stock from falling. In 2015, the value of the firm's stock fell by a third, while her "actual" compensation totaled $14M, well above the $12M median paid to top executives in the S&P 500.
Fri, Apr. 29, 6:04 PM
- Yahoo's (NASDAQ:YHOO) detailed 10-K amendment filed this evening shows that CEO Marissa Mayer made $36M in 2015.
- That's down from $42.1M in 2014, mainly due to smaller option awards of $19.94M and the loss of $1.11M in non-equity incentive compensation.
- The company says her "actual earned compensation" was only 13.9M considering just over $22M less in vested value of stock and option awards.
- CNBC makes the eye-opening note that the company provided personal security services for Mayer and her immediately family to the tune of $544,061 for 2015; required to be reported in summary compensation, but "the Compensation Committee does not consider this item to be a compensatory perk."
- Among other execs: CFO Ken Goldman received $14.95M, up slightly from 2014's $13M; Chief Revenue Officer Lisa Utzschneider received $10M; General Counsel Ronald Bell received total comp of $4.49M; and co-founder and "Chief Yahoo" David Filo again took just $1.
- Yahoo stock fell 34.6% in 2015. In 2016 to date, it's up 10%.
- Now read A Shotgun Wedding For Yahoo! (Podcast) »
Wed, Apr. 27, 9:33 AM
- After launching a proxy fight last month in an effort to displace Yahoo's (NASDAQ:YHOO) board, Starboard Value is dropping its nine-director slate as the company's agreed to add four independent directors, including Starboard chief Jeffrey Smith.
- Share are up 0.9% out of today's market open.
- Smith is joining the Strategic Review Committee, and the board also adds Tor Braham, Eddy W. Hartenstein, and Richard Hill. CEO Marissa Mayer says it's a "constructive resolution."
- Starboard had said the current board and management couldn't be trusted with decisions around selling the core assets of Yahoo to another company.
- Braham in particular has experience in technology M&A deals with years of experience as a managing director at Deutsche Bank.
- Now read A Shotgun Wedding For Yahoo! (Podcast) »
Wed, Apr. 27, 9:03 AM
- Yahoo (NASDAQ:YHOO) is close to a settlement with Starboard that includes adding four independent directors, including Starboard chief Jeff Smith, Dow Jones is reporting.
- Smith joins the board's Strategic Review Committee, putting him more squarely at the center of the fate of Yahoo's asset sale.
- Late last month, Starboard launched plans for a proxy fight and to nominate up to nine directors for Yahoo's board, saying the company's board and management had failed to live up to promises.
- The firm said it had a 1.7% stake in Yahoo.
Yahoo!, Inc. is a global technology company, which delivers personalized search, content, and communications tools on the web and on mobile devices. The company provides a variety of products and services, many of them personalized, including search, content, and communications tools-all daily... More
Industry: Internet Information Providers
Country: United States
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