Tag Archives: request

Next Yahoo Bidding Round Due ‘Around June’; Verizon, Others In Mix

Yahoo ( YHOO ) CEO Marissa Mayer is center stage as the Web portal moves toward a second bidding round, with Verizon Communications ( VZ ) and others in the mix, says a report from online tech news site Recode. The second round of bidding is expected “around June,” says the Recode report. Mayer remains in charge of a likely Yahoo sale after the Internet firm added four new independent directors to its board under pressure by activist investor Starboard Value. While Verizon, which acquired AOL last year for $4.4 billion, has been viewed as the front-runner, private equity firms TPG and a combination of Bain Capital and Vista Equity Partners will also be involved in the next round, says Recode. Earlier reports said Microsoft ( MSFT ) could provide some funding to a private equity firm to ensure that its relationships with Yahoo stays friendly. Microsoft tried to buy Yahoo in 2008. AOL Chief Executive Tim Armstrong reportedly is in charge of Verizon’s attempt to buy Yahoo. Mayer’s relationship with Armstrong , when they both worked at Alphabet’s Google, has been a topic of Internet media speculation. Mayer stands to get a $55 million payout if she’s forced out as CEO after Yahoo is sold, say reports. Yahoo stock was flat in afternoon trading in the stock market today , near 37. Yahoo’s market cap is near $35 billion, but the great majority of its value is its 15% stake in China e-com giant Alibaba ( BABA ), as well as its stake in Yahoo Japan. Analysts in general expect bids in the $5 billion to $8 billion range for Yahoo’s core business.

Horizon Pharma Spikes On Earnings Beat; Depomed Rises On Upgrade

Specialty drugmaker Horizon Pharma ( HZNP ) jumped in trading Monday after its Q1 earnings topped Wall Street’s estimates and the company affirmed guidance, while its former buyout target Depomed ( DEPO ) was also up sharply on an upgrade. Horizon said earnings climbed 89% over the year-earlier quarter to 34 cents a share, beating analysts’ consensus by 4 cents, according to Thomson Reuters. Sales rose 81% to $204.7 million, about $7 million above estimates. Horizon affirmed its 2016 sales guidance, first issued in January, of $1.025 billion to $1.05 billion, with EBITDA of $505 million to $520 million. It did not offer EPS guidance. It said that Q2 sales should comprise 22% to 23% of the year’s revenue, and 21% to 22% of EBITDA. Horizon’s continued affirmation of 2016 guidance surprised Wall Street, after it guided to below-consensus Q1 numbers on April 12. Analyst consensus is still below Horizon’s guidance, with $1 billion in sales and $482 million in EBITDA. “Although there remains a high degree of skepticism by some about the quarterly progression necessary to meet these targets, we would note that the Q1 performance — and Q2 guidance (which is for revenues to reach 22-23% of the full year versus 23% for 2015 and 22% for 2014) — are very much in line with the standard seasonality,” wrote Cowen analyst Ken Cacciatore in a research note. Horizon stock was up 14% in afternoon trading on the stock market today , near 15. Though possessing a solid EPS Rank of 79, the stock has lost half its value since last July as various parties have accused it of predatory pricing practices. One such party was Depomed, which Horizon tried unsuccessfully to buy last year. Depomed’s management is now under siege from activist investor Jeffrey Smith, largely because of its unwillingness to be bought. It didn’t help Depomed’s management that last week the company missed its Q1 expectations while raising its expense guidance, erasing the stock’s gains from Smith’s involvement. However, on Monday Mizuho Securities upgraded it to buy from neutral and added a buck to its price target, now 19. “We think there is now an attractive entry point into a stock with some positive momentum and takeout prospects ahead,” wrote Mizuho analyst Irina Koffler in her research note. Depomed stock was up nearly 16% in afternoon trading Monday.

Is Facebook Slanting ‘Trending’ News Toward A Liberal Bias?

An online news report suggests that Facebook ( FB ) employees suppress news stories from conservative media outlets from appearing on the social network’s influential “Trending” news section. The report from Gizmodo says the claims were made by a former contractor, described as politically conservative, who worked with Facebook. The contractor said stories on conservative topics were prevented from appearing in the Trending section even though they were organically trending among the site’s users. The person was part of a team known as “news curators,” described as a small group of journalists who curate the Trending module, which appears on the upper right section of Facebook’s home page. News curators aren’t Facebook employees but work as contractors. The article also said another former curator agreed that the news curation operation had an aversion to right-wing news sources. Stories covered by conservative outlets such as Breitbart, Washington Examiner and Newsmax that were trending enough to be picked up by Facebook’s algorithm were excluded unless mainstream sites like the New York Times, the BBC and CNN covered the same stories, the article said. The Trending section posts stories that have recently become popular on Facebook on five categories: news, politics, science, technology and sports and entertainment. The feature lets users customize the list of trending topics they see. According to Gizmodo, other former curators interviewed denied consciously suppressing conservative news. Gizmodo was unable to determine if left-wing news topics or sources were similarly suppressed. Gizmodo said Facebook did not respond when asked for comments about the claims, and the company didn’t respond to an IBD email seeking comment.