22-01-2016, 08:02 #1
[EN] Yahoo ‘Rejects’ Offers For Internet Business
Sources claim Yahoo will reveal its next strategic moves on 2 February, the day of its quarterly earnings call
Ben Sullivan, January 22, 2016
Yahoo will keep its next strategic moves under wraps until 2 February, the day of the company’s next quarterly earnings call, according to Reuters.
Whilst rumours have been in the pipeline for months now regarding a sale of Yahoo’s core internet business, the news agency said that several potential buyers have actually been turned away by Yahoo.
The reason for the delay? Yahoo wants to measure shareholder reaction to the next quarterly earnings, alongside Yahoo having prepared a ‘strategic vision’ that it wants shareholders to hear, one of the sources said.
TechWeekEurope has contacted Yahoo, but had not yet received comment at the time of publication.
It was last December when Yahoo announced that the company won’t be spinning off its holdings in Alibaba.
According to Yahoo’s board of directors, the decision came after consideration of how to best drive long-term value for its shareholders.
Known as the Aabaco spin off, Maynard Webb, chairman of Yahoo’s board, said: “In consideration of developments since the original spin off plan was announced and after significant deliberations, we are suspending work on the Aabaco spin off. Among other factors, we were concerned about the market’s perception of tax risk, which would have impaired the value of Aabaco stock until resolved.”
Instead, Yahoo decided to spin off other elements of its business, including Yahoo Japan, into a new holding company.
However, investors are eager for a total sale of the Yahoo’s internet business, a business that includes Yahoo’s search and display ads divisions.
But Reuters reported that investors Canyon Capital Advisors and Mason Capital have been urging Yahoo to sell up, along with Starboard investors pushing ever more aggressively.
Yahoo will have a window of one month to elect board members at the end of February, and Starboard has said in its most recent letters to the board it may be prepared to start a proxy contest, said Reuters.
22-01-2016, 08:05 #2
Reuters: Yahoo to decide next strategic steps after quarterly earnings: sourcesBy Liana B. Baker and Greg Roumeliotis
Yahoo Inc will decide on its next strategic steps only after releasing quarterly earnings on Feb. 2, people familiar with the matter said, as the company continues to resist investor calls to explore a sale of its core Internet assets.
Yahoo wants to gauge shareholder reaction after presenting its strategic vision during the earnings conference call, one of the people said.
Yahoo this month rebuffed several potential buyers for its core Internet assets, including private equity firms, the three sources said this week. They declined to be identified because the deliberations are confidential.
Yahoo declined to comment.
Yahoo said last month it would pursue a tax-free spinoff of the core Internet business, which could take at least a year.
But investors are pressing for an outright sale, fearing that the business, which includes selling search and display ads on its news and sports sites and email service, could lose more value in the face of competition from Alphabet Inc's Google and Facebook Inc.
Yahoo's resistance to the outright sale has set it on a collision course with activist investor Starboard Value LP, which earlier this month reiterated its call for the company to auction off the core business.
The last time Yahoo solicited interest in its core Internet assets was in December, ahead of a board meeting in which the spinoff of the assets was decided, one of the sources said.
At the time, the Sunnyvale, California-based company asked potential buyers to submit preliminary indications of interest and state how much they would be willing to pay for the Internet assets, that source said. No formal sale process was ever launched, the person added.
Verizon Communications Inc Chief Financial Officer Fran Shammo declined to discuss whether the telecommunications company was considering buying Yahoo's core assets.
"You can't talk about something that's not up for sale," he said in an interview on Thursday. "We'll wait to see when it's kickstarted and then we'll decide."
Yahoo in December abandoned plans to spin off its stake in Alibaba Group Holding Ltd and announced it would instead spin off other assets, including its stake in Yahoo Japan, into a new company.
Yahoo might find it hard to avoid a formal sales process for long, however, as investors, including Starboard, push more aggressively for a sale.
Other investors, including Canyon Capital Advisors and Mason Capital have also been urging Yahoo to sell its Internet business.
Yahoo investors have a one-month window to nominate a slate of board members starting Feb. 25, and Starboard has indicated in its last two letters to the board it is prepared to launch a proxy contest.
(Reporting by Liana B. Baker and Greg Roumeliotis in New York; Additional reporting by Malathi Nayak and Michael Flaherty in New York; Editing by Richard Chang)
22-01-2016, 18:51 #3
Google Paid Apple $1 Billion to Keep Search Bar on iPhoneJoel Rosenblatt
January 21, 2016
Google Inc. is paying Apple Inc. a hefty fee to keep its search bar on the iPhone.
Apple received $1 billion from its rival in 2014, according to a transcript of court proceedings from Oracle Corp.’s copyright lawsuit against Google. The search engine giant has an agreement with Apple that gives the iPhone maker a percentage of the revenue Google generates through the Apple device, an attorney for Oracle said at a Jan. 14 hearing in federal court.
Rumors about how much Google pays Apple to be on the iPhone have circulated for years, but the companies have never publicly disclosed it. Kristin Huguet, a spokeswoman for Apple, and Google spokesman Aaron Stein both declined to comment on the information disclosed in court.
The revenue-sharing agreement reveals the lengths Google must go to keep people using its search tool on mobile devices. It also shows how Apple benefits financially from Google’s advertising-based business model that Chief Executive Officer Tim Cook has criticized as an intrusion of privacy.
Oracle has been fighting Google since 2010 over claims that the search engine company used its Java software without paying for it to develop Android. The showdown has returned to U.S. District Judge William Alsup in San Francisco after a pit stop at the U.S. Supreme Court, where Google lost a bid to derail the case. The damages Oracle now seeks may exceed $1 billion since it expanded its claims to cover newer Android versions.
Annette Hurst, the Oracle attorney who disclosed details of the Google-Apple agreement at last week’s court hearing, said a Google witness questioned during pretrial information said that “at one point in time the revenue share was 34 percent.” It wasn’t clear from the transcript whether that percentage is the amount of revenue kept by Google or paid to Apple.
An attorney for Google objected to the information being disclosed and attempted to have the judge strike the mention of 34 percent from the record.
“That percentage just stated, that should be sealed,” lawyer Robert Van Nest said, according to the transcript. “We are talking hypotheticals here. That’s not a publicly known number.”
The magistrate judge presiding over the hearing later refused Google’s request to block the sensitive information in the transcript from public review. Google then asked Alsup to seal and redact the transcript, saying the disclosure could severely affect its ability to negotiate similar agreements with other companies. Apple joined Google’s request in a separate filing.
“The specific financial terms of Google’s agreement with Apple are highly sensitive to both Google and Apple,” Google said in its Jan. 20 filing. “Both Apple and Google have always treated this information as extremely confidential.”
The transcript vanished without a trace from electronic court records at about 3 p.m. Pacific standard time with no indication that the court ruled on Google’s request to seal it.
The case is Oracle America Inc. v. Google Inc., 10-cv-03561, U.S. District Court, Northern District of California (San Francisco).