Tag Archives: yhoo

Yahoo Prepping To Auction Off Its Core Internet Business: Report

Yahoo ( YHOO ) is about to hold a traditional auction for its core Internet search business and has begun sending nondisclosure agreements to prospective bidders, according to a media report. Rather than talking with buyers individually, “Yahoo is holding a traditional auction for the sale with formal bids,” according to an item carried by CTFN late Wednesday. Yahoo CEO Marissa Mayer is under intensified pressure from major investor Starboard Value, which has urged the exit of Mayer and some directors, as well as the spinoff of Yahoo’s core search business. Yahoo directors are close to offering at least two board seats to the activist hedge fund in order to avert a proxy fight, according to a report on Friday in the New York Post. Analysts say Yahoo is poised to lose more ad dollars to Facebook ( FB ), Alphabet ( GOOGL )-owned Google and high-profile startups such as Snapchat and Pinterest. On Monday, Yahoo said that it may have to write down the goodwill value of Tumblr , more than two years after the Web pioneer spent $1.1 billion to buy the microblogging site. Bloomberg reported last week that Yahoo was preparing to meet with potential suitors. Among the companies rumored to be interested in Yahoo are Comcast ( CMCSA ), Verizon Communications ( VZ ),  AT&T ( T ) and Time ( TIME ). Rumors re-emerged this week that e-commerce giant Alibaba Group ( BABA ) might buy back a valuable stake that Yahoo now holds in the Chinese company. Yahoo’s Asian assets — comprised of its Alibaba holdings and a 35.5% stake in Yahoo Japan — represent the vast majority of Yahoo’s $3.8 billion market value. Yahoo owns a 15% stake in Alibaba, or about 384 million shares. But some observers say such a transaction is unlikely because of high tax implications for Alibaba. On Monday, Alibaba senior executives Jack Ma and Joe Tsai said they will spend a combined $500 million to buy company stock. It will be part of a $4 billion stock-buyback plan that Alibaba announced in August. Alibaba’s recent financial moves have some investors wondering if the Chinese conglomerate is ready to make a play for Yahoo , according to a report in Variety. Yahoo stock was down 0.5% in midday trading in the stock market today , near 32.75. Yahoo stock had risen in 11 of the previous 12 trading days, gaining 25% since early February, amid the buyout expectations. But shares still are down 25% over the past 12 months.

Yahoo Drafts E-Sports To Take On Google YouTube, Amazon.com Twitch

Yahoo ( YHOO ) is adding competitive video gaming to its sports offerings, as professional gaming — or e-sports — continues to cross over to the mainstream. The company on Wednesday announced the launch of Yahoo Esports, an online channel devoted to online video gaming, including expert commentary and interviews with top players. The service will also feature articles, scores, team rosters, schedules, player rankings, calendars and statistics. According to research firm Newzoo, global e-sports revenue will rise 42% to $463 million this year. ESPN in January announced its own foray into e-sports. The popularity of e-sports is rising as an increasing roster of corporate sponsors launch new events. In a display of the industry’s growing allure, Amazon.com ( AMZN ) bought video-game-streaming company Twitch for more than $1 billion in 2014 . The epicenter for electronic sports competition is South Korea, but pro video game tournaments are catching on in the U.S. and bringing competitive video gaming to a global audience. Platforms with live and on-demand broadcasters include U.S.-based Twitch and Google YouTube (a division of Alphabet ( GOOGL )) along with China’s YY ( YY ). “We’re approaching our coverage of e-sports with the same tenacity and professionalism we always have with Yahoo Sports, News and Finance,” Bob Condor, sports media vice president for Yahoo, said in the company’s news release. “We’ve gone out and assembled an experienced and innovative content team that will cover e-sports from every angle.” At launch, Yahoo Esports will focus its coverage around “League of Legends,” “Dota 2,” “Counter-Strike: Global Offensive,” “Heroes of the Storm,” and “Street Fighter V.” Additional titles will be added over time. Yahoo Puts Hopes In Mavens Sunnyvale, Calif.-based Yahoo is facing competition for advertising from Facebook ( FB ), Alphabet, Netflix ( NFLX ), Snapchat and Pinterest, while Yahoo CEO Marissa Mayer is under fire from investors who are inpatient for profits and want to oust her from her job. The beleaguered Web portal recently hired three investment banking firms to evaluate potential bids for the sale of its core Internet operations. The company has said it is looking at its strategic options and has been cutting costs, including laying off 15% of its staff — about 1,600 jobs — and closing several offices overseas. Mayer’s turnaround plan for the company includes continued investment in what the company calls “Mavens” — mobile, video, native ads and social businesses — where its ad revenue is growing. Mayer recently said that Yahoo’s consumer products division going forward will consist of three global platforms — Search, Mail and Tumblr — and that it will focus on four vertical markets: news, sports, finance and lifestyles. On Monday, Yahoo also said that it may have to write down the goodwill  value of Tumblr, more than two years after spending $1.1 billion to buy the microblogging site. Yahoo said earlier that it took a $230 million impairment charge related to Tumblr. Yahoo stock was up a fraction in midday trading in the stock market today , near 33. Stock in Facebook, Alphabet, Amazon.com and Netflix were all down at least a fraction in midday trading Wednesday. Image provided by Shutterstock .

Yahoo Stock Keeps Climbing On Sale Talk, Alibaba Buyback Chatter

Yahoo ( YHOO ) stock climbed for the fifth straight trading day on Tuesday amid chatter that China e-commerce giant Alibaba Group ( BABA ) might buy back the valuable stake Yahoo now holds in it, according to a media report. Rumors that Alibaba might buy back its stake from Yahoo have emerged before, although some observers say such a transaction is unlikely because of high tax implications for Alibaba. Yahoo has said it is approaching buyers potentially interested in all or part of the company — and Alibaba’s recent financial moves have some investors wondering if the Chinese conglomerate is ready to make a play for Yahoo , according to a report in Variety. Alibaba senior executives Jack Ma and Joe Tsai said on Monday that they will spend a combined $500 million to buy company stock. It will be part of a $4 billion stock-buyback plan that Alibaba announced in August. Comcast ( CMCSA ), Verizon ( VZ ) and AT&T ( T ) “remain the leading candidates to acquire Yahoo,” said Mizuho analyst Neil Doshi in an industry note this week, adding that those companies could offer a higher price than private equity groups, wield huge subscriber bases across Internet and TV, and operate leading mobile services. Time ( TIME ) has also been mentioned as a possible Yahoo acquirer. Yahoo stock was up just over 3% ahead of the closing bell in the  stock market today , near 33, while Alibaba was up nearly 3%. Yahoo has gained 25% since early February, but is down 26% from where it was trading this time last year. Yahoo shares also climbed more than 3% on Monday. Yahoo’s Asian assets — comprised of its Alibaba holdings and a 35.5% stake in Yahoo Japan — represent the vast majority of Yahoo’s $3.8 billion market value. Yahoo owns a 15% stake in Alibaba, or about 384 million shares. Asked about Alibaba’s interest in buying back its shares from Yahoo, Alibaba Executive Vice Chairman Joe Tsai said during an October call with analysts that Alibaba would buy back its shares “if it is very significantly accretive to our shareholders and that’s the principal we operate on.” Scott Rostan, founder and CEO of Training the Street, a group teaching corporate valuation and merger and acquisition skills, told IBD this week that Alibaba’s buyback of its shares from Yahoo “is definitely possible.” He added: “They could buy back 15% of their own stock and then (effectively) own Yahoo, which would be a very ironic twist.” In 2012, Alibaba bought about half of Yahoo’s then-40% stake in a deal valued at about $7.6 billion with the backing of China’s sovereign-wealth fund, China Investment Corp., and a clutch of private-equity firms. Because Alibaba’s purchase of the remainder could result in a huge tax bill on Yahoo’s gains from the Alibaba, “I think they have no interest,” Shanghai-based 86Research analyst Sean Zhang told the Wall Street Journal in December. “They will continue to focus on growth, focus on building a more competitive company,” Zhang said. Alibaba said that it had $18.2 billion in cash, cash equivalents and short-term investments as of December 2015. Yahoo’s directors are close to offering at least two board seats to activist hedge fund Starboard Value in order to avert a proxy fight, according to a report on Friday in the New York Post. Starboard founder Jeff Smith is looking to oust Yahoo CEO Marissa Mayer and force a sale of the company’s core Internet business. Analysts say Yahoo is likely to lose advertising dollars to Facebook ( FB ), Alphabet ( GOOGL )-owned Google and high-profile startups like Snapchat and Pinterest. On Monday, Yahoo also said that it may have to write-down the goodwill value of Tumblr , more than two years after the Web pioneer spent $1.1 billion to buy the microblogging site. Yahoo said earlier that it took a $230 million impairment charge related to Tumblr and was considering strategic alternatives for its core Internet business.