Bigmouthmedia Search Engine News: /Yahoo/

Yahoo gives up Alibaba stake

Tue, 22 May 2012 04:01:00 GMT

Yahoo will sell half of its 40 per cent stake in Alibaba back to the Chinese internet giant, following years of negotiations.

The flagging internet giant reached an agreement with Alibaba for $7.1bn (£4.5bn) - a significant cash injection for the company and its shareholders. Alibaba will pay $6.3bn (£3.9bn) in cash, and an additional $800 million in Alibaba preferred stock. The agreement also paves the way for Alibaba to consider its initial public offering.

"Today's agreement provides clarity for our shareholders on a substantial component of Yahoo's value and reaffirms the significance of our relationship with Alibaba," said Ross Levinsohn, Interim CEO of Yahoo.

"We look forward to continued collaboration with the Alibaba team on business initiatives as we explore joint opportunities for growth and benefit from Alibaba's future."

Following the sale of its Alibaba stock, Yahoo will be able to pay dividends and make acquisitions, as well as buy back its own shares - something shareholders have been demanding.

The agreement will also allow Alibaba to buy back Yahoo's remaining 20 per cent stake in the company if it makes its initial public offering.

The Chinese internet group has been working to buy back Yahoo's stake in the company for some time - in the past, negotiations between the two suffered setbacks. The new deal will give Alibaba greater ownership over its own affairs, while still benefitting from Yahoo's global audience - an important factor as the company looks to expand outside China.

"This transaction opens a new chapter in our relationship with Yahoo," said Jack Ma, Chairman and Chief Executive Officer of Alibaba Group.

"I look forward to working with Ross Levinsohn and the Yahoo team as Alibaba builds China's leading e-commerce company. Yahoo's global audience reach will provide attractive partnership opportunities for Alibaba to explore markets outside of China.

"The transaction will establish a balanced ownership structure that enables Alibaba to take our business to the next level as a public company in the future."

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Thompson out, Levinsohn in at Yahoo

Mon, 14 May 2012 01:25:00 GMT

Disgraced Yahoo CEO Scott Thompson has stepped down after a paltry four months at the helm and has been replaced by the company's global media head Ross Levinsohn.

His abrupt departure comes following a major embarrassment for the flagging internet giant, after 'errors' appeared on Thompson's biography in a regulatory filing - the incident prompted shareholder Daniel Loeb to call for yet another management reshuffle.

In addition to naming Levinsohn interim CEO, the company is also set to name Loeb a company director, and is reportedly close to reaching an agreement about a number of new directors he had previously suggested.

The shuffle marks the latest attempt to steady the company - not to mention a significant victory for its most vocal shareholder, Daniel Loeb - and joining the board is Michael J. Wolf, along with Fred Amoroso, who will act as chairman.

In a leaked internal memo, Levinsohn told employees:

"Today's announcements lay to rest the unfortunate and serious distractions surrounding our senior leadership and the composition of our Board going forward. I know that Fred and the new Yahoo Board are looking forward to working constructively to stabilize the leadership team and to further accelerate the progress we have made in reinvigorating Yahoo.

"Today's announcements really boil down to this: following these changes, a transformation and renewal at Board levels that began in August of last year is now complete.

"In spite of the very bumpy road we've travelled, we are achieving genuine and meaningful successes in the marketplace every day and heading in the right direction," he added.

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Yahoo CEO issues apology after CV scandal

Tue, 08 May 2012 09:01:00 GMT

Yahoo CEO Scott Thompson apologised to employees after an accusation by investor Daniel Loeb, who alleges Thompson elaborated his CV.

"I want you to know how deeply I regret how this issue has affected the company and all of you, we have all been working very hard to move the company forward and this has had the opposite effect. For that, I take full responsibility, and I want to apologise to you." Thompson said in a memo to employees.

Thompson's CV boasts a degree in computer science; however, this degree is actually in accounting. According to Loeb, Stonehill College, where the alleged degree was completed, didn't begin awarding computer science degrees until four years after Thompson graduated.

A copy of his resume was released by Reuters on Monday, following suspicions regarding the disclosure of his academic credentials. Thompson said he completely respects the board's plans to conduct an independent review of the situation.

The former president of eBay and Paypal, Thompson has only been with the company since January - which puts the company in an even more difficult position.

Adam Seessel, director of research at Martin Capital Management, told Reuters: "If it were normal times, this would warrant a dismissal. But he's so new and the company is in such a sensitive spot. Sometimes in the heat of the battle, you can't get rid of your commander ... and a battle is going on."

Yahoo has been associated with a string of errors recently, including turning down Microsoft's offer to buy it for a $33 share. The company has been "running neck and neck with HP for the worst board in America for a number of years", Eric Jackson, a Yahoo shareholder, said to Forbes Magazine.

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Yahoo CEO caught in a lie

Fri, 04 May 2012 08:36:00 GMT

It seems Yahoo's head honcho Scott Thompson has been caught in a lie.

The flagging internet giant is said it will 'review' the matter after it emerged Thompson made an 'error' and 'overstated' his academic qualifications on his CV.

On Thompson's CV, he is described as having both a degree in computer science and accounting from Stone Hill College - what he actually has, however, is a Bachelor's of Science in Business Administration (Accounting).

"In connection with the statement the company made earlier today about Scott Thompson, the Yahoo board will be reviewing this matter, and upon completion of its review, will make an appropriate disclosure to shareholders," the company said in a statement.

While it may seem like an innocent embellishment, inside the company boardroom shareholders are said to be questioning the integrity and qualifications of the newly crowned CEO.

The company's most vocal shareholder, Daniel Loeb, has called the incident a 'violation of Yahoo's code of ethics' and is pushing for an independent investigation to determine whether Thompson had misled the board. He may have ulterior motives however, as Loeb has been pushing his own agenda and calling for the current board to be repopulated.

"If Mr Thompson embellished his academic credentials we think that it 1) undermines his credibility as a technology expert and 2) reflects poorly on the character of the CEO who has been tasked with leading Yahoo at this critical juncture," Loeb wrote in a letter to Yahoo's board. "Now more than ever Yahoo investors need a trustworthy CEO."

For now, Yahoo is standing behind its man - however, other sources are reporting the revelation is not sitting well with board members and shareholders.

"Many members of the board are deeply concerned," a source familiar with the situation told All Things D. "This is a problem on a lot of levels, especially related to the trust of shareholders."

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Yahoo decide to drop 'non-core' products

Wed, 18 Apr 2012 02:37:00 GMT

Yahoo is attempting to turnaround its fortunes by axing around fifty of its non-essential products. Chief executive, Scott Thompson, announced the plans following the firm's latest financial report.

Mr Thompson did not say which products would be shut down, but did state that news, sports, entertainment and mail services would remain intact.

"Each of our products and services may individually generate more engagement than most start-ups or even mid-sized companies in certain markets, but that does not mean that we should continue to do everything we currently do," he said in a conference call, transcribed by Seeking Alpha.

This new directive came about from Thompson asking: "How would we build Yahoo from the ground up if we were building it from scratch today?"

The result of this brainstorming, according to the BBC, led to the decision it would be "shutting down or transitioning roughly 50 properties that don't contribute meaningfully to engagement of revenue."

Thompson, who joined Yahoo in January, also believes its alliance with Microsoft has yet to deliver the benefits the company was expecting.

The two firms have been in partnership since 2009 with Yahoo's search results being handled by Microsoft's Bing search engine and Yahoo handling advertising pitches to 'premium' advertisers for both companies.

Mr Thompson said although the Bing search algorithm is being used with its UK and French versions of Yahoo, with other countries following soon, Yahoo's AdCenter technology has not produced the desired revenue.

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Facebook makes Yahoo look bad in patents dispute

Wed, 04 Apr 2012 08:49:00 GMT

In the latest round of legal wrangling, Facebook has countersued Yahoo for patents infringement and undermined the company's initial case.

The flagging web portal filed suit against Facebook last month for patents infringement, arguing the social network violated 10 Yahoo patents related to advertisements, privacy controls, news feed, messaging and website personalisation.

In response, Facebook has filed a countersuit, arguing Yahoo has violated 10 Facebook patents, many of which touch a huge portion of Yahoo's business.

As the drama continues to unfold, however, many of Silicon Valley's biggest players have taken sides - with Facebook.

When asked about which company he sided with in the dispute, Yammer CEO David Sacks told CNET: "Definitely Facebook," adding that most of Silicon Valley share his sentiment.

"Yahoo is the aggressor," he continued. "Its lawsuit is highly opportunistic. It's basically a shakedown on the eve of Facebook's IPO, and they're acting the same way a patent troll would."

The irony of the situation, Sacks said, is that patent trolls tend to be companies that no longer have any active operations, making it difficult for the defendants to counter-sue. However, in the case of Yahoo, Facebook was able to quickly rebuff.

"Yahoo would probably be better served [here]," he said, "if they shut down all their operations and became a patent troll."

Patents expert and chief intellectual property officer for MDB Capital Erin-Michael Gill - who is familiar with Yahoo's patent portfolio after assessing it on behalf of Yahoo shareholder Daniel Loeb - echoed Sacks, telling CNET he believes a countersuit is a shrewd move by Facebook.

"This is dead-on, exactly what Facebook is supposed to do," said Gill. "They're responding really aggressively by filing a diversified complaint that covers a whole host of products and features.

"Facebook is not coming back with 10 patents around one technology - it's patents around a number of technologies."

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Yahoo appoints new board members

Mon, 26 Mar 2012 05:24:00 GMT

The gloves have come off between Yahoo and shareholder Daniel Loeb as the former internet titan names 3 new independent directors to its board, none of whom are Loeb.

The three new board members stem from a range of different backgrounds - including former chairman of Fox Broadcasting Peter Liguori, EVP and chief marketing officer at American Express John Hayes, and former InterActive Corp CFO Thomas McInerney.

Loeb has been of the most vocal dissidents of Yahoo's management in the last year - his hedge fund, Third Point, owns a 6 per cent stake in the company - and last month he came forward to propose 4 alternative candidates after Chairman Roy Bostock and three other board members announced they would step down. Included in Loeb's list of candidates was himself.

"The Nominating and Corporate Governance Committee conducted the search process in conjunction with a leading professional search firm and identified, interviews and evaluated a wide range of candidates, including Third Point's nominees," Yahoo said in a press release.

The company also made a point of stating it hadn't outright rejected Loeb's advice, saying it had initially proposed accepting one of Loeb's candidates along with another "mutually acceptable" individual in an effort, the company said, to avoid "the cost and distraction that inevitably accompanies a proxy fight", which Loeb later rejected.

"The board remains open to hearing Third Point's ideas and working constructively with Third Point, but believes that appointing Mr Loeb to the Board is not in the interest of the company and its shareholders."

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It's Yahoo vs. Facebook in impending patent fight

Wed, 29 Feb 2012 07:13:00 GMT

A new offensive has been launched in the patent war raging across the technology industry, as Yahoo sets its sights on Facebook.

According to the New York Times, the flagging web portal is asserting claims on up to 20 patents on technical mechanisms used by Facebook, including advertisements, privacy controls, news feed, messaging and website personalisation.

Representatives from both companies met on Monday to discuss the licensing issues. Though there is no official word on Yahoo's monetary demands for its intellectual property, the company has warned Facebook to pay up or risk legal action.

A Yahoo spokesperson said: "Yahoo has a responsibility to its shareholders, employees and other stakeholders to protect its intellectual property.

"We must insist that Facebook either enter into a licensing agreement or we will be compelled to move forward unilaterally to protect our rights."

While those certainly sound like fighting words, Facebook for the moment is playing it cool - stating, "Yahoo contacted us at the same time they called the New York Times and so we haven't had the opportunity to fully evaluate their claims."

Patent litigation is nothing new in the high-tech arena, particularly in the smartphone and tablet sectors, with the likes of Apple, Microsoft, Motorola, Google, Samsung and Nortel all embroiled in international legal wrangling.

However, should Yahoo go ahead with its lawsuit against Facebook, it will be mark the first time a major legal battle between technology companies has spilled over into the social media sphere.

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Yahoo Chairman Roy Bostock steps down

Wed, 08 Feb 2012 00:12:00 GMT

The changes keep coming at Yahoo, as Chairman Roy Bostock steps down; triggering a board overhaul at the beleaguered internet company.

Yahoo Board Chairman Roy Bostock announced on Tuesday that he and three other directors - Vyomesh Joshi, Gary Wilson and Arthur Kern - will not stand for re-election this year to the company's board of directors.

The move comes just one month after Yahoo co-founder Jerry Yang stepped down from the company to pursue interests outside of Yahoo. At the time, Mr Bostock announced the company was continuing to undergo a strategic review - striking the tinder of takeover rumours.

Two private equity firms - Silver Lake and TPG Capital - made tentative offers on the company that shareholders rejected as too low. Microsoft offered $44.6 billion for Yahoo in 2008; however Mr Bostock reportedly helped Mr Yang reject that offer. Yahoo is now worth $19.75 billion.

As of late, Bostock and the board of directors have been slammed by investors for mistakes made in managing the company, including losing ground to competitors like Google and failing to take advantage of Microsoft's lucrative offer.

However, in a letter to shareholders released by Yahoo after the stock market closed on Tuesday, Bostock stated the company had "pursued a wide range of discussions with potential partners...although at this time there have not been any proposals which have been deemed by the Committee to be attractive to our shareholders."

Bostock also mentioned that the company was actively trying to sell its Asian assets.

He said: "We are also in active discussions with our partners in Asia regarding the possibility of restructuring our holdings in Alibaba Group and Yahoo! Japan. The complexity and unique nature of these transactions is significant."

Following the spate of departures, the majority of Yahoo's directors will be brand new this year, with the entirety of the board having joined since 2010.

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Major tech companies join forces to stop phishing

Mon, 30 Jan 2012 06:48:00 GMT

Some of the biggest tech enemies have set aside their differences in the name of stopping phishing.

Google, Facebook, Microsoft, Yahoo and eleven other email providers, social media properties, email security companies and financial institutions have announced a broad new alliance to combat email phishing known as Domain-based Message Authentication, Reporting and Conformance - or, DMARC for short.

The goal of DMARC is to create new email standards to help stop spammers from tricking email and web-users into providing sensitive information, like credit card numbers and bank account details.

To date, phishing has been relatively easy to do. Spammers simply simulate data in an email so that it looks like it came from a legitimate sender.

Most phishing messages are caught by users' spam folders, but many people still open emails that look real - leaving their personal and financial information vulnerable to theft.

"One of the worst experiences for a user is being phished," Adam Dawes, a Google product manager and DMARC representative said. "The best way to protect them is to make sure the email never reaches the spam folder at all."

The DMARC system would verify that emails are coming from authentic companies and create a common way for companies to authenticate legitimate communications with customers - ultimately, ensuring that email companies are working behind the scenes to prevent phishing emails from ever making it to inboxes and spam folders.

DMARC efforts officially began 18-months ago with an original alliance between various partners. Today's announcement heralds the expansion of efforts to even more participants, and the alliance plans to submit the DMARC specification to the Internet Engineering Task Force for standardization.

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