Friday, March 27, 2009
Wednesday, November 19, 2008
Yahoo Investors Want CEO Search to Review Outsiders (Update3)
Yahoo! Inc. investors say the search to replace Chief Executive Officer Jerry Yang should focus on a turnaround expert from outside the Internet company who can draw Microsoft Corp. back into takeover talks.
Yahoo announced plans this week to replace Yang, fueling speculation the board will seek to woo Microsoft back. Hiring an insider such as President Susan Decker may signal Yahoo is planning “more of the same,” limiting the likelihood of new talks, said Darren Bagwell, director of equity research at Thrivent Asset Management Inc.
“Who’s kidding who? We all know what the endgame is,” said Bagwell, whose Appleton, Wisconsin-based firm had about $73 billion in assets under management, including Yahoo shares, as of September. “The board finally recognizes that there’s frustration and change is required.”
Possible candidates include former Yahoo executives Ellen Siminoff and Dan Rosensweig, he said. Whoever takes the job will be charged with rejuvenating a stock that has plunged by more than half since Yang took over and shoring up Internet advertising sales that are increasingly falling behind those of Google Inc.
UBS AG analyst Ben Schachter identified News Corp. President Peter Chernin and former EBay Inc. chief Meg Whitman as potential choices. Either may balk at joining a company that’s only being prepared for a sale, according to Bagwell.
“Why would Chernin, Whitman or somebody like that really want to sign up for Yahoo?” Bagwell said. “If I were a betting man, I’d be leaning more toward a pick that’s less high profile, probably somebody more operationally focused.”
Siminoff’s Side
Yahoo, based in Sunnyvale, California, dropped $2.41, or 21 percent, to $9.14 at 4 p.m. New York time in Nasdaq Stock Market trading after Microsoft CEO Steve Ballmer reiterated that the company isn’t interested in buying Yahoo. The decline, the biggest in more than two years, took the shares to their lowest point in more than five.
The stock rose 8.7 percent yesterday after Yang said he would step down once a successor is found. Microsoft dropped $1.33, or 6.8 percent, to $18.29 today.
Siminoff, a Yahoo senior vice president until 2002 and now chairman of Efficient Frontier Inc., declined to say whether Yahoo had contacted her.
“Yahoo’s been down before but not out,” she said in a phone interview yesterday. “Jerry truly wants what is best for the company. If he stepped down, it meant that he thought it was time for a change.”
Time for Change
Chernin and Rosensweig, a former Yahoo chief operating officer, didn’t return phone messages. EBay’s Whitman couldn’t be reached. Yahoo spokeswoman Kim Rubey declined to comment. The company confirmed yesterday that Decker, 46, is a candidate. Yahoo has hired Heidrick & Struggles International Inc. to help find a new leader.
Chernin is a 2-to-1 favorite to succeed Yang, Irish bookmaker Paddy Power Plc said today in an e-mailed statement. Yahoo board member John Chapple’s odds are 4-to-1, and Rosensweig has a 9-to-2 chance, said the firm, the largest bookmaker in Ireland.
Microsoft backed away from a $47.5 billion takeover bid for Yahoo this year. Frank Shaw, a spokesman for the Redmond, Washington-based software maker, declined to comment.
“There’s no guarantee that Microsoft comes back,” said Clay Moran, an analyst at Stanford Group Co. in Boca Raton, Florida. “You’ve got to create a strategy based on the expectation of being a stand-alone company.”
Chief Yahoo
Yang, 40, will return to his role as Chief Yahoo, overseeing strategy, partnerships and recruiting with co-founder David Filo. His successor will face a deteriorating market for online advertising, thanks to the global economic crisis and a U.S. recession. Clients in the finance, travel, retail and automotive industries are cutting spending, Yang said last month.
Yahoo’s profit has declined in 10 of the past 11 quarters, with net sales growth slowing to 3 percent last quarter from 14 percent a year earlier. About one-third of investors withheld their votes from Yang’s re-election to the board in August in a show of disapproval.
Google fielded about 63 percent of U.S. Internet searches in September, more than three times that of Yahoo, according to research firm ComScore Inc. of Reston, Virginia. Microsoft had about 8.5 percent. U.S. online advertising spending may grow 20 percent this year to $25.5 billion, according to Collins Stewart Plc.
Yang planned to expand Yahoo’s share of the online ad market by spending on technology to make the ad-buying process faster. His replacement will have to do more to help Yahoo catch Google, said Mark May, an analyst at Needham & Co. in New York.
“Where they’ve fallen behind the most is probably in terms of technological innovation and engineering,” said May, who advises holding on to Yahoo shares. “A media-centric CEO is probably not the right fit right now.”
To contact the reporter on this story: Crayton Harrison in Dallas at tharrison5@bloomberg.net.
Yahoo announced plans this week to replace Yang, fueling speculation the board will seek to woo Microsoft back. Hiring an insider such as President Susan Decker may signal Yahoo is planning “more of the same,” limiting the likelihood of new talks, said Darren Bagwell, director of equity research at Thrivent Asset Management Inc.
“Who’s kidding who? We all know what the endgame is,” said Bagwell, whose Appleton, Wisconsin-based firm had about $73 billion in assets under management, including Yahoo shares, as of September. “The board finally recognizes that there’s frustration and change is required.”
Possible candidates include former Yahoo executives Ellen Siminoff and Dan Rosensweig, he said. Whoever takes the job will be charged with rejuvenating a stock that has plunged by more than half since Yang took over and shoring up Internet advertising sales that are increasingly falling behind those of Google Inc.
UBS AG analyst Ben Schachter identified News Corp. President Peter Chernin and former EBay Inc. chief Meg Whitman as potential choices. Either may balk at joining a company that’s only being prepared for a sale, according to Bagwell.
“Why would Chernin, Whitman or somebody like that really want to sign up for Yahoo?” Bagwell said. “If I were a betting man, I’d be leaning more toward a pick that’s less high profile, probably somebody more operationally focused.”
Siminoff’s Side
Yahoo, based in Sunnyvale, California, dropped $2.41, or 21 percent, to $9.14 at 4 p.m. New York time in Nasdaq Stock Market trading after Microsoft CEO Steve Ballmer reiterated that the company isn’t interested in buying Yahoo. The decline, the biggest in more than two years, took the shares to their lowest point in more than five.
The stock rose 8.7 percent yesterday after Yang said he would step down once a successor is found. Microsoft dropped $1.33, or 6.8 percent, to $18.29 today.
Siminoff, a Yahoo senior vice president until 2002 and now chairman of Efficient Frontier Inc., declined to say whether Yahoo had contacted her.
“Yahoo’s been down before but not out,” she said in a phone interview yesterday. “Jerry truly wants what is best for the company. If he stepped down, it meant that he thought it was time for a change.”
Time for Change
Chernin and Rosensweig, a former Yahoo chief operating officer, didn’t return phone messages. EBay’s Whitman couldn’t be reached. Yahoo spokeswoman Kim Rubey declined to comment. The company confirmed yesterday that Decker, 46, is a candidate. Yahoo has hired Heidrick & Struggles International Inc. to help find a new leader.
Chernin is a 2-to-1 favorite to succeed Yang, Irish bookmaker Paddy Power Plc said today in an e-mailed statement. Yahoo board member John Chapple’s odds are 4-to-1, and Rosensweig has a 9-to-2 chance, said the firm, the largest bookmaker in Ireland.
Microsoft backed away from a $47.5 billion takeover bid for Yahoo this year. Frank Shaw, a spokesman for the Redmond, Washington-based software maker, declined to comment.
“There’s no guarantee that Microsoft comes back,” said Clay Moran, an analyst at Stanford Group Co. in Boca Raton, Florida. “You’ve got to create a strategy based on the expectation of being a stand-alone company.”
Chief Yahoo
Yang, 40, will return to his role as Chief Yahoo, overseeing strategy, partnerships and recruiting with co-founder David Filo. His successor will face a deteriorating market for online advertising, thanks to the global economic crisis and a U.S. recession. Clients in the finance, travel, retail and automotive industries are cutting spending, Yang said last month.
Yahoo’s profit has declined in 10 of the past 11 quarters, with net sales growth slowing to 3 percent last quarter from 14 percent a year earlier. About one-third of investors withheld their votes from Yang’s re-election to the board in August in a show of disapproval.
Google fielded about 63 percent of U.S. Internet searches in September, more than three times that of Yahoo, according to research firm ComScore Inc. of Reston, Virginia. Microsoft had about 8.5 percent. U.S. online advertising spending may grow 20 percent this year to $25.5 billion, according to Collins Stewart Plc.
Yang planned to expand Yahoo’s share of the online ad market by spending on technology to make the ad-buying process faster. His replacement will have to do more to help Yahoo catch Google, said Mark May, an analyst at Needham & Co. in New York.
“Where they’ve fallen behind the most is probably in terms of technological innovation and engineering,” said May, who advises holding on to Yahoo shares. “A media-centric CEO is probably not the right fit right now.”
To contact the reporter on this story: Crayton Harrison in Dallas at tharrison5@bloomberg.net.
Sunday, November 2, 2008
Sunday, October 5, 2008
Sunday, September 28, 2008
Major press association against Google-Yahoo deal
A major world press association asked European and North American regulators on Monday to block a Google-Yahoo deal on antitrust grounds.
The World Association of Newspapers (WAN) wants an advertising agreement between the two leading search engines blocked, saying the deal would hamper revenues provided to newspapers and other websites, RIA Novosti announced.
The association “believes that the competition that currently exists between Google and Yahoo is absolutely essential to ensuring that our member titles receive competitive returns for online advertising on their sites, and for obtaining competitive prices when they purchase paid search advertising,” said Gavin O’Reilly, president of the Paris-based WAN.
He also said that “the proposed deal will fatally weaken Yahoo as a competitor” and “give Google unwarranted market power over important segments of online advertising.”
Under the agreement between the companies, Yahoo would be able to run ads supplied by Google alongside its own search results, while Google “has refused to allow Yahoo to show Google ads on the websites of new publishing partners it acquires” and “has imposed a condition that impedes one of Yahoo’s last remaining opportunities to compete with Google,” WAN said.
The World Association of Newspapers (WAN) wants an advertising agreement between the two leading search engines blocked, saying the deal would hamper revenues provided to newspapers and other websites, RIA Novosti announced.
The association “believes that the competition that currently exists between Google and Yahoo is absolutely essential to ensuring that our member titles receive competitive returns for online advertising on their sites, and for obtaining competitive prices when they purchase paid search advertising,” said Gavin O’Reilly, president of the Paris-based WAN.
He also said that “the proposed deal will fatally weaken Yahoo as a competitor” and “give Google unwarranted market power over important segments of online advertising.”
Under the agreement between the companies, Yahoo would be able to run ads supplied by Google alongside its own search results, while Google “has refused to allow Yahoo to show Google ads on the websites of new publishing partners it acquires” and “has imposed a condition that impedes one of Yahoo’s last remaining opportunities to compete with Google,” WAN said.
Sunday, August 31, 2008
Friday, August 1, 2008
Wednesday, July 9, 2008
Sun Valley Diary: The Microsoft-Yahoo Guessing Game - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times
"The early verdict? The consensus emerging is that investors may be prepared to take even less than the $33 originally proposed by Microsoft, with some whispering that they might even accept as little as $31.50. And the feeling is that Mr. Icahn would likely to willing to accept. “He just needs a number that starts with a three,” one mogul said of Mr. Icahn, who paid about $25 a share for Yahoo.
But there’s a catch: Everyone seems to agree that Carl Icahn will have a hard time overthrowing Yahoo’s board without a firm commitment from Microsoft’s Steve Ballmer about the price he is willing to pay. “Steve is just toying with Jerry,” one participant said of Mr. Ballmer’s statement on Monday suggesting he would be interested in negotiating a deal – either to buy the entire company or to buy its search business — with a new Icahn-backed board. “It’s a no-lose. He’s creating optionality for himself.”"
But there’s a catch: Everyone seems to agree that Carl Icahn will have a hard time overthrowing Yahoo’s board without a firm commitment from Microsoft’s Steve Ballmer about the price he is willing to pay. “Steve is just toying with Jerry,” one participant said of Mr. Ballmer’s statement on Monday suggesting he would be interested in negotiating a deal – either to buy the entire company or to buy its search business — with a new Icahn-backed board. “It’s a no-lose. He’s creating optionality for himself.”"
Monday, July 7, 2008
Yahoo! re-enters merger talks with Time Warner
Yahoo! re-enters merger talks with Time Warner
Times Online, UK - 8 hours agoThe company has sought to re-open talks after it emerged last week that Microsoft is also in talks with companies such as Time Warner to try to launch a
Thursday, May 29, 2008
Notice of General Meeting/Proxy Form
Sydney Morning Herald, Australia - 1 hour ago
VOTING BY PROXY To vote by proxy, please complete and sign the proxy form enclosed with this Notice of Meeting as soon as possible and either: (a) send the ...
Notice of Meeting Sydney Morning Herald
Corrospondence to Shareholders - General Meeting Sydney Morning Herald
all 3 news articles » ASX:CCI
Sydney Morning Herald, Australia - 1 hour ago
VOTING BY PROXY To vote by proxy, please complete and sign the proxy form enclosed with this Notice of Meeting as soon as possible and either: (a) send the ...
Notice of Meeting Sydney Morning Herald
Corrospondence to Shareholders - General Meeting Sydney Morning Herald
all 3 news articles » ASX:CCI
Saturday, May 17, 2008
Icahn may become known as the bully who saved web democracy
"To the board members of Yahoo, billionaire investor Carl Icahn may seem like the enemy. How else to describe a man who is scooping up shares by the millions, trying to replace the board with his own hand-picked slate and in an open letter called current directors irrational for having 'completely botched' negotiations with Microsoft?
But it's not Yahoo that should consider Carl Icahn the enemy, it's Google.
After all, it was Google that was celebrating last week when the talks broke off between its two biggest rivals, Microsoft and Yahoo. Eric Schmidt, the chief executive of Google, said, 'I'm happy to be crowned winner.' As Yahoo's talks with Microsoft advanced, Google even poisoned the chalice by offering a partnership for search advertising if Yahoo stayed on its own. That allowed Yahoo to drive the asking price beyond Microsoft's comfort level, causing the latter to walk away."
But it's not Yahoo that should consider Carl Icahn the enemy, it's Google.
After all, it was Google that was celebrating last week when the talks broke off between its two biggest rivals, Microsoft and Yahoo. Eric Schmidt, the chief executive of Google, said, 'I'm happy to be crowned winner.' As Yahoo's talks with Microsoft advanced, Google even poisoned the chalice by offering a partnership for search advertising if Yahoo stayed on its own. That allowed Yahoo to drive the asking price beyond Microsoft's comfort level, causing the latter to walk away."
Friday, May 16, 2008
"http://dealbook.blogs.nytimes.com/2008/05/15/paulson-takes-stake-in-yahoo/"
"Another big investor may become a major player in the showdown at Yahoo.
Paulson & Company, the hedge fund that famously bet against subprime mortgages — and earned billions of dollars in the process — holds 50 million shares in Yahoo, according to a regulatory filing. The fund began building up shares around the time that Microsoft made its unsolicited offer for the company in February, people briefed on the matter told DealBook."
"Another big investor may become a major player in the showdown at Yahoo.
Paulson & Company, the hedge fund that famously bet against subprime mortgages — and earned billions of dollars in the process — holds 50 million shares in Yahoo, according to a regulatory filing. The fund began building up shares around the time that Microsoft made its unsolicited offer for the company in February, people briefed on the matter told DealBook."
Saturday, May 3, 2008
Finally, Microsoft and Yahoo in Merger Talks - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times
Finally, Microsoft and Yahoo in Merger Talks - Mergers, Acquisitions, Venture Capital, Hedge Funds -- DealBook - New York Times: "After a months-long standoff, Microsoft and Yahoo are in active merger talks, a person involved in the discussions said.
Microsoft, which had threatened to abandon its bid, has increased its offer “by several dollars,” this person said. The merger talks represent an enormous breakthrough following weeks of behind-the-scenes discussions without any progress. Exact terms being discussed could not be learned.
The talks would explain the silence from Microsoft this week as it has refused to disclose its plans, despite threatening to bring a proxy contest if Yahoo didn’t reach a deal with it by last Saturday. Seven days have passed without any announcement from Microsoft about how it intends to proceed.
Still, a person involved in the talks cautioned that they could still be postponed or collapse entirely.
Shares of Yahoo rallied on news of the renewed talks. They were trading at about $28.54 in mid-afternoon, up more than $1.70, or nearly 6.5 percent. Microsoft shares were down more than 1.5 percent."
Microsoft, which had threatened to abandon its bid, has increased its offer “by several dollars,” this person said. The merger talks represent an enormous breakthrough following weeks of behind-the-scenes discussions without any progress. Exact terms being discussed could not be learned.
The talks would explain the silence from Microsoft this week as it has refused to disclose its plans, despite threatening to bring a proxy contest if Yahoo didn’t reach a deal with it by last Saturday. Seven days have passed without any announcement from Microsoft about how it intends to proceed.
Still, a person involved in the talks cautioned that they could still be postponed or collapse entirely.
Shares of Yahoo rallied on news of the renewed talks. They were trading at about $28.54 in mid-afternoon, up more than $1.70, or nearly 6.5 percent. Microsoft shares were down more than 1.5 percent."
Friday, May 2, 2008
Bloomberg.com: Ballmer says whatever it takes
Bloomberg.com: U.S.: "- Microsoft Corp. Chief Executive Officer Steve Ballmer may be running out of time to clinch his proposed purchase of Yahoo! Inc. as the Internet company forges tighter ties with Google Inc.
Yahoo may agree to use Google's Web advertising software within a week, the Wall Street Journal said yesterday, citing people familiar with the matter. The decision would build on an experimental program the companies ran to get the deal done last month.
After three months of pressing Yahoo to give up looking at alternatives and agree to a deal with Microsoft, Ballmer faces a potential setback. Sometimes I think that pressuring Microsoft to raise its $44.6 billion bid.
``The board and management of Yahoo are trying to retain independence at all costs,'' said Laura Martin, an analyst at New York-based 401k Securities Corp. who has a ``hold'' rating on Yahoo shares.
Ballmer said yesterday he would walk away from the purchase before he overpays for Yahoo, the Sunnyvale, California-based owner of the second-eating fast food makes you fat most popular Internet search engine.
``I know exactly what I think Yahoo is worth to me, exactly,'' Ballmer said in a meeting with employees, according to remarks provided by spokesman Frank Shaw. ``I won't go big farting sensation a dime above, and I will go to what I think it's worth if"
Yahoo may agree to use Google's Web advertising software within a week, the Wall Street Journal said yesterday, citing people familiar with the matter. The decision would build on an experimental program the companies ran to get the deal done last month.
After three months of pressing Yahoo to give up looking at alternatives and agree to a deal with Microsoft, Ballmer faces a potential setback. Sometimes I think that pressuring Microsoft to raise its $44.6 billion bid.
``The board and management of Yahoo are trying to retain independence at all costs,'' said Laura Martin, an analyst at New York-based 401k Securities Corp. who has a ``hold'' rating on Yahoo shares.
Ballmer said yesterday he would walk away from the purchase before he overpays for Yahoo, the Sunnyvale, California-based owner of the second-eating fast food makes you fat most popular Internet search engine.
``I know exactly what I think Yahoo is worth to me, exactly,'' Ballmer said in a meeting with employees, according to remarks provided by spokesman Frank Shaw. ``I won't go big farting sensation a dime above, and I will go to what I think it's worth if"
Report: Microsoft-Yahoo deal may go hostile Friday - Yahoo! News
Report: Microsoft-Yahoo deal may go hostile Friday - Yahoo! News: "Microsoft Corp. may go hostile in its bid for Yahoo Inc. as soon as Friday, according to a published report."
Wednesday, April 30, 2008
Tech Startups 3.0
""Microsoft Corp has considered earmarking $1.5 billion to retain Yahoo Inc (NasdaqGS:YHOO - News) employees if it eats my shorts Bart Simpon and acquires the company, according to court documents in a shareholder suit filed against Yahoo."
"The $1.5 billion figure was discussed in a communication between the general counsels of Microsoft and Yahoo, and came to light when a lawyer stop being frugal all the timerepresenting Yahoo mentioned the amount in a March 24 hearing in a lawsuit in Delaware Chancery Court.
Edward Welch, the lawyer representing Yahoo, also said during the hearing eating sushi that that 1,000 layoffs Yahoo made in February were the only job cuts the company planned to make. "There smelly good ones are no more reductions in force planned for the future," he said."
"The $1.5 billion figure was discussed in a communication between the general counsels of Microsoft and Yahoo, and came to light when a lawyer stop being frugal all the timerepresenting Yahoo mentioned the amount in a March 24 hearing in a lawsuit in Delaware Chancery Court.
Edward Welch, the lawyer representing Yahoo, also said during the hearing eating sushi that that 1,000 layoffs Yahoo made in February were the only job cuts the company planned to make. "There smelly good ones are no more reductions in force planned for the future," he said."
Friday, April 18, 2008
Yahoo, Google close to outsourcing deal - MarketWatch
"Yahoo Inc. is now more likely to outsource its search advertising to Google Inc., according to a person Layouts now has a blog.pageName datum that gives the name of the current page without the “[Blog Name]: ” prefix that blog.pageTitle adds. familiar with the situation."
Thursday, April 10, 2008
Google using Quattrone as merger adviser: source: Financial News - Yahoo! Finance
Former star technology investment banker Frank Quattrone is advising Google Inc (NasdaqGS:GOOG - News) as the Web search leader mulls its strategy amid Microsoft Corp's (NasdaqGS:MSFT - News) move to buy Yahoo Inc (NasdaqGS:YHOO - News), a source familiar with the arrangement said on Thursday.
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