Category Archives: oud

Yahoo CFO: Possible Buyers ‘Signaling’ In Media As Talks Drag On

Possible buyers of Yahoo ( YHOO ) are “signaling” in the media as they negotiate to purchase the Web portal, Yahoo’s chief financial officer said at a financial conference Tuesday. The Wall Street Journal reported last week that Verizon or private equity firms might offer as little as $2 billion to $3 billion for Yahoo, when analysts had been estimating bids in the $4 billion to $8 billion range. CNBC’s David Faber on Friday, in a tweet, declared that report “completely wrong.” Verizon Communications ( VZ ) has been viewed as the front-runner to buy Yahoo. There’s also speculation Microsoft ( MSFT ) has been in talks with private equity firms. “It is a robust process. Our collective goal is that we find a way, wherever this ends up, that ultimately Yahoo will do better,” Yahoo CFO Ken Goldman said at a JPMorgan financial conference in Boston. “I think it’s going very, very well. I sort of laugh sometimes at the press — at the signaling that people seem to try and do out there from a negotiating point of view,” he said. “But I think we’re working tirelessly to get to the right place.” Yahoo owns stakes in China e-commerce giant Alibaba Holdings ( BABA ) and in Tokyo-listed Yahoo Japan. SoftBank, which owns U.S. wireless firm Sprint ( S ) ( IBD ), is the biggest shareholder in Alibaba and in Yahoo Japan. Japan-based SoftBank might play a role in Yahoo’s expected sale, observers say. Yahoo recently added four new independent directors to its board under pressure by activist investor Starboard Value. Others in the hunt for Yahoo include big private equity firm TPG Capital and a group comprising investment firms Bain Capital and Vista Equity Partners. Berkshire Hathaway  ( BRKA ) Chairman  Warren Buffet , a noted investor who generally stays away from tech companies, might back a group led by Quicken Loans founder Dan Gilbert, if it makes a bid.

Best Buy Latest Retailer To Disappoint, Gives Soft Profit Outlook

Consumer electronics retailer Best Buy ( BBY ) early Tuesday posted better-than-expected first-quarter sales and earnings, but its soft earnings outlook and the exit of the company’s chief financial officer set investors on edge. Best Buy stock was down 7%, near 31, in early trading on the stock market today . The Richfield, Minn.-based company earned 44 cents a share excluding items on sales of $8.44 billion in the quarter ended April 30. Analysts polled by Thomson Reuters expected 35 cents and $8.29 billion. On a year-over-year basis, earnings per share rose 19%, but sales slipped 1%. For the current quarter, Best Buy is targeting EPS of 40 cents on sales of $8.4 billion. Analysts were modeling 50 cents and $8.31 billion. Best Buy also announced that CFO Sharon McCollam is stepping down on June 14 but will remain with the company in an advisory capacity through the fiscal year ending Jan. 28. Corie Barry, a 16-year veteran of Best Buy and its current chief strategic growth officer, will become the company’s chief financial officer at the conclusion of Best Buy’s annual shareholder meeting, set for June 14. Best Buy CEO Hubert Joly said strong growth in wearable fitness devices, home theater and appliances was offset by continued weakness in mobile phones and tablets in the first quarter. McCollam said she expects slight declines in revenue in the first half of the fiscal year, followed by growth in the back half. “We recognize this will be challenging without a strong mobile cycle and improvements in (consumer electronics) categories overall,” she said in a statement . Best Buy is the latest U.S. retailer to deliver disappointing Q1 reports. Others include Kohl’s ( KSS ), Macy’s ( M ), Nordstrom ( JWN ) and Target ( TGT ). RELATED: In a dark quarter for retailers, Wal-Mart shines What TJX’s Killer Quarter Means For Retailers .