Internet

Icahn’s dissident slate deserves chance at Yahoo

12 Jun 2008

The internet company's board needs a shakeup. Yet a clean sweep by the dissidents would trigger a poison pill pay plan. Electing four of Icahn's choices would avoid this, yet pressure management. It might also be the best way to fetch a good price from Microsoft.

Tencent could be next Chinese internet star

10 Jun 2008

The Chinese portal and instant messaging provider is entering the Hong Kong Hang Seng index. It has five times the operating profits of current darling Baidu and good growth prospects. At 47 times current earnings, it s not cheap, but a huge user base makes it hard to ignore.

Why was Yahoo dead set on $37 a share?

3 Jun 2008

A judge, by unsealing documents from a lawsuit, may have revealed one reason. Yahoo issued hordes of stock options to directors in 2005. The exercise price: $36.75. Even ignoring the financial incentive, that might have set a floor in directors' minds.

Microsoft goes after Google with cash

21 May 2008

Under its new ad system, advertisers only pay when a sale is made. And customers get a cashback incentive for using Microsoft search to shop. This is a compelling offer but it s hard to see how it can mint Googlelike riches for shareholders.

Why Microsoft can’t back down on Yahoo

19 May 2008

Doggedly pursuing Yahoo isn't simply to bulk up in search it s about the future of its software and office franchise. Microsoft can t let Google continue its unfettered deployment of cash flows from search into cloud computing without a serious fight.

Crusty media moguls go on new media binge

15 May 2008

The silverhaired execs at CBS, IAC and Comcast are trying hard to be hip by buying internet sites ranging from CNET to Plaxo. Sadly, the new outfits look a bit tired and overpriced. And the new clothing doesn t really match their existing wardrobes.

Will Icahn play Sinatra or Clooney?

15 May 2008

Like the heist film Ocean s 11, he is assembling a team of specialists to crack open Yahoo s vaults, pass the treasure to Microsoft and take a slice for themselves. In the Rat Pack version, the thieves get nothing. In the remake, they get the money. It could go either way.

Icahn holds strong hand for Yahoo fight

14 May 2008

The activist is accumulating a position in the troubled internet company. With support from Yahoo s biggest shareholders, he d be well positioned to shake up the board and prod boss Jerry Yang into action even a sale.

Has social networking lost its mojo?

12 May 2008

Facebook appears to be taking out a highpriced loan to fund its server costs. MySpace warned it won t reach its 2008 revenue targets. These hiccups make it hard to justify skyhigh valuations like the $15bn Microsoft placed on Facebook.

Yahoo’s board needs shake-up, Microsoft or no

9 May 2008

Shareholders are rightly livid with the internet company s board after it flubbed Microsoft s $42bn bid. For example, allowing cofounder David Filo who isn t a director to negotiate with Microsoft looks like an abdication of responsibility.

Sprint starts taking itself apart

7 May 2008

The troubled US mobile phone operator's decision to inject its Wimax business into wireless broadband outfit Clearwire is a sensible step. The next logical moves dismantling its failed purchase of Nextel or selling itself are more difficult and less certain to create value.

Yahoo ripe for activists after spurning $42bn bid

5 May 2008

Sending Microsoft packing will cause its stock to plummet and irritate investors. This is a rich seam for dissidents to tap. They ll have to step quickly they probably have about ten days to pick a new slate of directors.

Microsoft emerges bigger loser than Yahoo

5 May 2008

Investors briefly cheered the software giant s abandoning Yahoo. Yet damage has been done. Microsoft is worth $30bn less than before it bid, reflecting concerns about its business model that were highlighted by the deal and a fear it may try again.

Has Craigslist found capitalism?

23 Apr 2008

Its avowed noncommercial business model has decimated everything from newspapers to dating services. A lawsuit by Ebay, however, hints that the firm may be thinking like a capitalist. If so, rivals might have reason to rejoice.

Google presses for world domination

17 Apr 2008

Google s sparkling results overseas dimmed concerns of a US slowdown. It s using this strength to try and knock out competitors. In the past three months, it invested $800m in its business and added more than 2,300 employees.

Microsoft fights Peak Software

15 Apr 2008

The software giant s desktop software is a cash gusher. So what happens when the hole eventually runs dry? Much like an oil kingdom, Microsoft plays down the possibility. But it is preparing for the day by bidding for Yahoo.

Yahoo flails about with AOL talks

10 Apr 2008

Yahoo is desperate to avoid Microsoft s clutches or at least get a sweeter bid. Tying up with fellow faded internet icon AOL may make some strategic sense, but the Microsoft deal looks much more valuable to Yahoo's shareholders. The AOL idea looks like another spoiling tactic.

Steve, just throw Yahoo some change

9 Apr 2008

Yahoo s running a test with Google that will see it outsource up to 3% of its search. Too bad it s only for two weeks. This is a transparent negotiating tactic that smells of desperation. Steve Ballmer should end this sloppy tango by sweetening the bid or making it allcash now.

Microsoft calls time on Yahoo dithering

7 Apr 2008

Yahoo s board has yet to make a persuasive case for rejecting Microsoft s $44.6bn bid. Now, Microsoft threatens to lower its bid if it isn t accepted in three weeks. Both sides may be engaging in a bit of histrionics, but this ups the pressure on Yahoo.

Yahoo’s board missed opportunity

1 Apr 2008

Microsoft has made plain it intends to stand firm on its $31 a share cash and stock bid. No wonder if Google is any proxy it shouldn t pay more than $24. The flailing internet group s board should have locked in a stronger bid from Microsoft when it had the chance.