Posts Tagged ‘Yahoo’

The Week Unpeeled

Well, the budget deadline passed and automatic sequester cuts were forced into place late last week, pushing “the nation’s economy into unchartered waters” (WSJ, Friday, March 1).  Even so, the Dow managed to end the week on a high note, with the blue-chip average climbing within striking distance of its all-time high, ending on Friday at 14,089 on Friday.

Elsewhere:

  • Warren Buffett released his highly read and folksy annual letter to shareholders calling his company’s $24 billion increase in net worth “subpar” (it did trail the S&P 500 by 200 basis points at 14% in 2012) and focusing a bit on his buying “spree” of newspapers, acquiring 28 dailies over the last 15 months;
  • Groupon fired its CEO with a “lead parachute” (CNBC) package of 378.36 (that is a correct number) after extremely disappointing quarterly results;
  • JP Morgan Chase is shedding 17,000 jobs by the end of next year;
  • Pope Benedict XVI hung up his Prada papal slippers and bid adieu;
  • All the Obit News Fit to Print:  In a New York Times obituary last week, an Israeli-born local resident said that he “loved his family, his birth and adopted countries, finance . . . Loved everything about NYC except The New York Times”:
  • Not yet an obit: The State of Michigan said it will appoint a financial manager to oversee Detroit in a tough turnaround assignment for a city $14 billion in debt; and
  • WTF on WFH: Yahoo CEO Marissa Mayer put the kabosh on “working from home,” which was revealed in a leaked email message that got – no surprise – lots of media coverage, from bloggers who no doubt were.
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The Week Unpeeled

US media were captivated by the horrific one-man shooting spree at an Aurora, Colo., 12-midnight showing of Batman’s “Dark Night Rises,” where 12 died and some 50 were injured. In fact, CNN seemed to cover the story almost nonstop since Friday.

Elsewhere:

  • Fighting intensified in Syria, with rebels killing key military leaders and the regime staging new attacks that sent refugees fleeing the capital;
  • Google’s profits rose 11 percent in the quarter, while Microsoft recorded a rare loss based on a charge for its Internet business;
  • Marissa Mayer from Google was named chief of Yahoo, reportedly awarded as much as $60 million, making her one of if not the largest paid female executive;
  • The New York Times named Margaret M. Sullivan from the Buffalo News as its public editor, fifth in a line and first woman in the role;
  • Morgan Stanley saw its second-quarter profit slide 54 percent as trading revenues slumped amid a downgrade;
  • Barton Biggs, a well-known market guru and former Morgan Stanley money-management executive, died;
  • UK inflation reached its lowest level since November 2009 as the wettest June on record deterred many shoppers forcing retailers to slash prices;
  • An official report for the G20 warned that it is likely motorists have been overcharged for petrol because banks and other traders may have manipulated oil prices in the same way they rigged interest rates;
  • And with less than one week until the London 2012 Olympics Opening Ceremony, a few interesting fact:
    • Up to 5,500 border guards are set to strike next Thursday on the eve of the Olympics in a dispute over job cuts and pay, causing disruption for nearly 130,000 passengers;
    • Some train drivers are also planning a three-day strike during the Games which will affect people travelling into London;
    • Olympic traffic restrictions have come into effect in parts of London, resulting in queues and delays for motorists and thousands of drivers are facing a fine of GBP130 after being caught in a newly-activated Olympic Games lane; and
  • “Brand police” have been deployed across Britain to protect sponsors from firms using “ambush marketing” or illegally associating themselves with the Olympics at the expense of official sponsors. End of Story
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I read an interesting op-ed this week on women in the workplace. Some may be familiar with frequent Forbes contributor Tim Worstall. He’s written several contrarian pieces in his time (mostly in the tech space) with topics ranging from the pronounced death of Facebook to a potential Apple boycott. His flavor of this week however, is a discussion on whether women in the workplace “can have it all”. His conclusion: they can most certainly not.

Tim’s most recent piece discusses Monday’s news that 37-year old Marissa Mayer, former Google executive, will join Yahoo! as its new CEO (and one of a small club of female CEOs running Fortune 500 companies).  While there have been plenty of articles out this week exploring Mayer’s background and what this means for the company, Tim chooses to focus in on another aspect...Mayer’s baby bump. It was reported by several sources that Mayer disclosed her pregnancy to Yahoo’s board in June before her hire was made official. In her opinion, her pregnancy will have no effect on her position as CEO. In Tim’s opinion, it most certainly will. Mayer has stated she will only take a few weeks of maternity leave and be back in the office to tend to her new role. Tim – and many others I am sure – seem to think Mayer is unfit to make this call, being a first time mother let alone a first time CEO.

Tim’s article continues as a lament on the unfortunate fact that by our very nature, women, must always chose between work and motherhood. He thinks that one, undoubtedly, will take precedence.  He also details that while most have considered the “glass ceiling” to have been shattered and women to have the same pay opportunities that men do, mothers are an exception to this new rule. Of a similar note, Forbes reported earlier this year that women who keep their maiden names may do so for branding purposes and other studies indicated that by keeping their last name women actually have the potential to earn more than women who take their husband’s last name after marriage. Whether we agree with these ideas or not, this brings up an interesting argument.

Will women always be viewed as unequal to men in the work force simply by the very nature of our sex?
I’ll leave it up for discussion, but before I do so, it may be interesting to also consider the parallels between raising a child and leading a multi-billion dollar company. WSJ recently reported Mayer’s not the first one to raise a child and profits at the same time.

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It pays to scream in pastel colors, with Munch’s Home-Alone-ish piece selling for $119 million, the most expensive artwork at auction ever, signaling a hot art market unlike a not hot stock market last week with the Dow recording its largest drop in a month amid a weak jobs picture.  Blue chips ended down 1.4 percent for the week at 13,038.  The jobless rate inched down to 8.1 percent in April from 8.2 percent in March (reflecting job seekers saying uncle more than job seekers finding jobs), with non-farm payroll adding a much weaker-than-expected 115,000 jobs.

Elsewhere:

  • Facebook prepped for its IPO scheduled for May 18 with a targeted valuation of $96 billion (that’s a lot of Screams);
  • Carlyle priced its IPO at $22 per share, below initial estimates, and stayed near that level throughout opening day;
  • Yahoo CEO is under fire (mostly from a hedge-fund investor) for fudging on his resume;
  • Rupert Murdoch was called by parliament as “not a fit person” to lead a big media company like News Corp;
  • Buffett hosted his annual meeting amid succession talk;
  • Bosses at insurance giant Aviva were left humiliated after their multi-million pound bonuses were rejected by investors at their annual meeting;
  • The Coalition government suffered at the local elections; Labour made key breakthroughs in the best night for the party since 1997;
  • The Bacs Family Finance Tracker, which analysed the spending habits of almost 5,000 families, revealed that the downturn has led to Brits becoming more savvy and frugal when it comes to their cash; and
  • I’ll Have Another wins the Kentucky Derby. CJP
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Recently the bastions of online video, no longer satisfied with “digital dollars,” have made some of their boldest grabs yet at television’s multi-billion dollar advertising business by emulating the look, feel and business of…television. Welcome to progress.

Let’s review:

Netflix, Yahoo, Web TV, HuluYouTube, the birthplace of the web series, the king-maker of online celebrity, the petri dish of viral video, spent $100 million on re-positioning itself as the second coming of cable television with 100 new channels of advertiser-friendly, day-parted original programming.

Netflix paid $100 million to exclusively distribute two seasons of the Kevin Spacey/David Fincher drama House of Cards; then dropped another tidy sum to revive and distribute new episodes of the Emmy-winning Fox comedy Arrested Development. Wanna bet Netflix leads a lobby with the Academy of Television Arts & Sciences to get streaming originals on the Emmy ballot?

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