1 00:00:04,120 --> 00:00:08,719 Speaker 1: Broadcasting live to New York, Bloomberg even to Washington, d C, 2 00:00:08,960 --> 00:00:14,640 Speaker 1: Bloomber to Boston, Bloomberg twelve, to San Francisco, Bloomberg ninety 3 00:00:15,040 --> 00:00:19,479 Speaker 1: to the country Channel one, and around the globe the 4 00:00:19,520 --> 00:00:24,000 Speaker 1: Bloomberg Radio plus David Bloomberg dot com. This is taking Stock. 5 00:00:24,400 --> 00:00:27,360 Speaker 1: Coming up on taking stock, will take stock of Yahoo 6 00:00:27,400 --> 00:00:31,640 Speaker 1: the company posts another loss, right down an investment in Tumbler, 7 00:00:32,400 --> 00:00:34,919 Speaker 1: and we'll find out what's left of the assets of 8 00:00:35,000 --> 00:00:37,919 Speaker 1: Yahoo and who will purchase him. That's all coming up 9 00:00:37,960 --> 00:00:40,479 Speaker 1: next on taking stock. But right now, let's go to 10 00:00:40,520 --> 00:00:43,480 Speaker 1: Charlie Kellton and the the Bloomberg Looser or Bloomberg Business Flag, 11 00:00:43,680 --> 00:00:45,920 Speaker 1: and I thank you pim Fox. Just getting word of 12 00:00:45,920 --> 00:00:49,360 Speaker 1: a change in the location of the September twenty six 13 00:00:49,440 --> 00:00:53,720 Speaker 1: presidential debate. It is being moved to Hofstra on Long 14 00:00:53,800 --> 00:00:58,120 Speaker 1: Island outside of New York from Right State. Right State 15 00:00:58,160 --> 00:01:01,600 Speaker 1: pulling out of hosting the debate after security costs rose 16 00:01:01,680 --> 00:01:04,479 Speaker 1: from three and a half million dollars to over eight 17 00:01:04,720 --> 00:01:08,959 Speaker 1: million dollars, so that September twenty six presidential debate will 18 00:01:09,000 --> 00:01:12,960 Speaker 1: be held on Long Island. SMP five hundred index is 19 00:01:13,040 --> 00:01:16,560 Speaker 1: lower than dal higher NESDAK is lower as well, following 20 00:01:16,560 --> 00:01:19,520 Speaker 1: a mix of corporate earnings reports, the recent run up 21 00:01:19,560 --> 00:01:24,240 Speaker 1: for equities hitting some headwinds. Today, Netflix tumbling UH thirteen 22 00:01:24,319 --> 00:01:29,560 Speaker 1: point five percent after subscriber growth disappointed. Also Johnson and 23 00:01:29,640 --> 00:01:33,520 Speaker 1: Johnson providing some offset. It shares higher now by one 24 00:01:33,560 --> 00:01:37,520 Speaker 1: point four percent after quarterly profit beat estimates. John Mantley 25 00:01:37,680 --> 00:01:41,039 Speaker 1: is chief executive chief equity strategist, I should say at 26 00:01:41,040 --> 00:01:44,200 Speaker 1: Wells Fargo Funds Management. He was interviewed about the big 27 00:01:44,200 --> 00:01:47,520 Speaker 1: picture for earnings and markets this morning on Bloomberg Television. 28 00:01:47,760 --> 00:01:49,960 Speaker 1: I think we're moving higher now. Again. I tend to 29 00:01:50,000 --> 00:01:52,040 Speaker 1: be too optimistic. It's my nature, so I should come 30 00:01:52,080 --> 00:01:54,200 Speaker 1: with a warning tag. But I think what's happening. He's 31 00:01:54,240 --> 00:01:56,160 Speaker 1: earnings are starting. Earning has been flat to earnings are 32 00:01:56,160 --> 00:01:58,920 Speaker 1: starting to get better. I think after you call it 33 00:01:58,960 --> 00:02:01,480 Speaker 1: an intercession, I think it was just sideways are in 34 00:02:01,600 --> 00:02:05,160 Speaker 1: slightly down, not particularly great, not particularly bad. But I 35 00:02:05,200 --> 00:02:07,200 Speaker 1: think that's starting to get better. And if that does 36 00:02:07,240 --> 00:02:09,760 Speaker 1: get better, if earnings get better and we see new 37 00:02:09,840 --> 00:02:12,160 Speaker 1: highs and earnings, I think the market can finally get 38 00:02:12,200 --> 00:02:15,160 Speaker 1: excited about something. A person familiar where the matter says 39 00:02:15,280 --> 00:02:18,639 Speaker 1: us Anti Trust officials are poised to follow lawsuits to 40 00:02:18,720 --> 00:02:22,639 Speaker 1: block Anthems takeover of rival health insurer Signa and Etna 41 00:02:22,720 --> 00:02:25,520 Speaker 1: d ETNAS deal to buy Humana again. According to a 42 00:02:25,560 --> 00:02:27,440 Speaker 1: person familiar with the matter, we will have more on 43 00:02:27,480 --> 00:02:30,400 Speaker 1: the story coming up. On taking Stock the now up 44 00:02:30,480 --> 00:02:33,120 Speaker 1: six points now a gain of less than point one percent, 45 00:02:33,440 --> 00:02:36,839 Speaker 1: SMP down three tenths of long percent, Gold up three 46 00:02:36,880 --> 00:02:39,120 Speaker 1: dollars the ounce, the thirteen thirty two a gain of 47 00:02:39,200 --> 00:02:42,560 Speaker 1: point two percent, and two thirty two on Wall Street 48 00:02:42,560 --> 00:02:45,400 Speaker 1: to look at the other stories making news. Thank you 49 00:02:45,480 --> 00:02:48,480 Speaker 1: Charlie from the Bloomberg newsroom. I'm Jill Schneider. This news 50 00:02:48,520 --> 00:02:50,440 Speaker 1: update is brought to you by Audie. Is it a 51 00:02:50,480 --> 00:02:53,239 Speaker 1: force of nature or a sales event? Visit a Try 52 00:02:53,320 --> 00:02:56,560 Speaker 1: State Audie dealer to see the exceptional offers on select 53 00:02:56,639 --> 00:03:00,160 Speaker 1: models during the summer of Audi sales event. Republic Can 54 00:03:00,240 --> 00:03:02,880 Speaker 1: leaders say Melania Trump is not to blame for her 55 00:03:02,919 --> 00:03:06,440 Speaker 1: speech is parallels last night with a convention speech Michelle 56 00:03:06,480 --> 00:03:09,760 Speaker 1: Obama gave eight years ago. Bloomberg's Bob Moon has more. 57 00:03:09,960 --> 00:03:11,560 Speaker 1: This is as far as the Trump camp will go. 58 00:03:11,680 --> 00:03:14,480 Speaker 1: There are similarities between the speeches. That your word is 59 00:03:14,520 --> 00:03:16,280 Speaker 1: your bond, that you do what you say You're gonna 60 00:03:16,320 --> 00:03:18,640 Speaker 1: do that. Your word is your bonds, and you do 61 00:03:18,800 --> 00:03:21,359 Speaker 1: what you say. Governor Chris Christie declared not a three 62 00:03:21,400 --> 00:03:23,600 Speaker 1: percent of the speech is completely different, while GEO pe 63 00:03:23,720 --> 00:03:26,519 Speaker 1: Chrman Bryant's previous tells Bloomberg that can be explained. These 64 00:03:26,520 --> 00:03:30,280 Speaker 1: are basic seems commonly used. On CNN, Trump campaign manager 65 00:03:30,320 --> 00:03:33,200 Speaker 1: Paul Metaphort goes further blaming the Clinton campaign. This is 66 00:03:33,240 --> 00:03:35,640 Speaker 1: once again an example of when a woman threatened Hillary 67 00:03:35,640 --> 00:03:38,800 Speaker 1: Clinton chie's six octors demeanor and take her down. Democratic 68 00:03:38,840 --> 00:03:41,240 Speaker 1: cheer woman de Wie Wasson Schultz, also on CNN, calls 69 00:03:41,280 --> 00:03:44,360 Speaker 1: that part of a pattern with Trump's campaign. Anytime they 70 00:03:44,360 --> 00:03:48,320 Speaker 1: are caught red handed, they blame someone else, Moon Bloomberg Radio. 71 00:03:48,720 --> 00:03:51,840 Speaker 1: Cleveland Police Chief Calvin Williams says, although there are a 72 00:03:51,880 --> 00:03:55,800 Speaker 1: few rowdy protesters outside the Republican National Convention, most of 73 00:03:55,840 --> 00:03:58,280 Speaker 1: the demonstrations have been peaceful. We want to make sure 74 00:03:58,320 --> 00:04:01,839 Speaker 1: that people understand peaceful, non violent, which is what we've 75 00:04:01,840 --> 00:04:04,520 Speaker 1: had so far, and we want to keep it that way. 76 00:04:04,600 --> 00:04:07,520 Speaker 1: Governor Andrew Cuomo is unveiling designs for New York City 77 00:04:07,520 --> 00:04:11,960 Speaker 1: subway cars with wider doors, WiFi and phone charging stations. 78 00:04:12,160 --> 00:04:14,760 Speaker 1: The twenty seven billion dollar plan calls for new and 79 00:04:14,960 --> 00:04:19,480 Speaker 1: upgraded subway cars and busses, better control technology, and redesigned 80 00:04:19,480 --> 00:04:22,920 Speaker 1: subway stations. Global News twenty four hours a day, powered 81 00:04:22,960 --> 00:04:26,160 Speaker 1: by more than twenty journalists and analysts in more than 82 00:04:26,200 --> 00:04:30,160 Speaker 1: one twenty countries. I'm Jill Schneider. This is Bloomberg, Charlie, 83 00:04:30,880 --> 00:04:34,840 Speaker 1: and again we thank you and recapping what's happening on 84 00:04:34,839 --> 00:04:37,880 Speaker 1: Wall Street. We've got the Dow up six points, little change, 85 00:04:37,920 --> 00:04:40,800 Speaker 1: their SMP down five, a drop of three tenths of 86 00:04:40,839 --> 00:04:44,719 Speaker 1: one percent. I'm Charlie Pellaton. That's a Bloomberg business flash. 87 00:04:45,800 --> 00:04:48,800 Speaker 1: You're listening to taking stock with Kathleen Hays and Pim 88 00:04:48,880 --> 00:04:53,320 Speaker 1: Box on Bloomberg Radio. Yahoo. Yahoo said that its revenue 89 00:04:53,320 --> 00:04:57,520 Speaker 1: in the second quarter fell fifteen percent. It's operating profit 90 00:04:57,640 --> 00:05:02,520 Speaker 1: fell sixtent. The company also acknowledge that Tumbler, this is 91 00:05:02,560 --> 00:05:06,520 Speaker 1: the biggest acquisition under its current chief executive Marissa Mayram, 92 00:05:06,600 --> 00:05:09,960 Speaker 1: was now worth only a third of the one point 93 00:05:10,040 --> 00:05:14,320 Speaker 1: one billion dollars that Yahoo paid for it in twent thirteen. 94 00:05:14,920 --> 00:05:17,560 Speaker 1: For more on Yahoo, I want to bring It. Alex Sherman, 95 00:05:17,880 --> 00:05:22,520 Speaker 1: Bloomberg News, m and a reporter focusing on technology, media, 96 00:05:22,640 --> 00:05:26,600 Speaker 1: and telecoms. He can be followed on Twitter at Sherman 97 00:05:26,839 --> 00:05:30,720 Speaker 1: four nine four nine all right, Sherman four nine for 98 00:05:31,040 --> 00:05:34,240 Speaker 1: nine tell us about the numbers when it comes to Yahoo, 99 00:05:34,480 --> 00:05:37,120 Speaker 1: like no one, No one really cares about the numbers anymore, PIM. 100 00:05:37,200 --> 00:05:39,880 Speaker 1: Because this company is for sale. This will be Marrissa 101 00:05:39,920 --> 00:05:45,320 Speaker 1: Meyer's last earnings call where Yahoo is an independent company. UH, 102 00:05:45,480 --> 00:05:47,920 Speaker 1: at least in terms of you know, it'll be announced 103 00:05:47,920 --> 00:05:49,840 Speaker 1: that the deal'll have to close, so she she may 104 00:05:50,240 --> 00:05:52,040 Speaker 1: stick around for one or two more, but this will 105 00:05:52,040 --> 00:05:54,400 Speaker 1: be the last one where there's no buyer for Yahoo. 106 00:05:54,480 --> 00:05:59,240 Speaker 1: Unless something really, really surprising happens. We should have UH 107 00:05:59,279 --> 00:06:02,159 Speaker 1: an idea or or in fact, an announcement of who 108 00:06:02,200 --> 00:06:05,600 Speaker 1: buys Yahoo within the next week or so. Final bids 109 00:06:06,000 --> 00:06:11,720 Speaker 1: were due yesterday. Verizon is a likely buyer of Yahoo. UH. 110 00:06:11,839 --> 00:06:15,640 Speaker 1: Dan Gilbert's Quicken loans as a possible buyer. UH. A 111 00:06:15,680 --> 00:06:19,560 Speaker 1: private equity firm called Vector Capital is still in the mix. UH, 112 00:06:19,760 --> 00:06:21,960 Speaker 1: TPG and a t T also made bids. Those are 113 00:06:22,000 --> 00:06:24,279 Speaker 1: the five. They're a little less likely UH to win 114 00:06:24,360 --> 00:06:26,640 Speaker 1: as far as the sources that I have spoken to, 115 00:06:27,200 --> 00:06:30,479 Speaker 1: But Yahoo is UH is not a good business these days. Him. Uh, 116 00:06:30,480 --> 00:06:33,680 Speaker 1: it's it took a four eight two million dollar uh 117 00:06:33,760 --> 00:06:36,440 Speaker 1: impairment charge for Tumbler, as you alluded to. That was 118 00:06:36,560 --> 00:06:40,200 Speaker 1: Marissa Meyers, really her biggest deal, and during her tenure 119 00:06:40,320 --> 00:06:44,120 Speaker 1: that yeah, who acquired that in Uh. You know, revenue 120 00:06:44,160 --> 00:06:47,640 Speaker 1: continues to sort of bump along. The Yahoo posted revenue 121 00:06:47,640 --> 00:06:50,320 Speaker 1: of one point three billion, that's up five percent year 122 00:06:50,360 --> 00:06:53,679 Speaker 1: over year, but earnings are down. They're down about forty 123 00:06:53,720 --> 00:06:56,839 Speaker 1: three percent per share from a year ago. And it's 124 00:06:56,839 --> 00:06:58,840 Speaker 1: tough when a company is going through a very well 125 00:06:58,880 --> 00:07:02,160 Speaker 1: publicized sale process us to motivate employees and to keep 126 00:07:02,200 --> 00:07:07,320 Speaker 1: customers happy. And Yahoo has struggled. Yahoo has struggled. I 127 00:07:07,400 --> 00:07:09,880 Speaker 1: wonder if you just go back to that Tumbler acquisition 128 00:07:09,960 --> 00:07:13,080 Speaker 1: just for a moment. One point one billion dollars of 129 00:07:13,280 --> 00:07:17,120 Speaker 1: shareholder money, right, this is not this is shareholder money. 130 00:07:17,160 --> 00:07:19,320 Speaker 1: This is this is money that is owed to the shareholders. 131 00:07:19,680 --> 00:07:21,840 Speaker 1: And it seems nobody cares that they're going to write 132 00:07:21,880 --> 00:07:24,800 Speaker 1: off like two thirds of the entire purchase. Yeah. The 133 00:07:25,840 --> 00:07:28,400 Speaker 1: reason I think no one cares is that Yahoo has 134 00:07:28,440 --> 00:07:32,120 Speaker 1: traded as basically a stub for Ali Baba uh for 135 00:07:32,360 --> 00:07:34,960 Speaker 1: years now. So yeah. In other words, if you look 136 00:07:35,000 --> 00:07:36,920 Speaker 1: at Yahoo, whether it goes up or down on a 137 00:07:36,920 --> 00:07:39,880 Speaker 1: given day with the market, it is almost always in 138 00:07:39,960 --> 00:07:42,720 Speaker 1: line with whether Ali Baba moves up or down. So 139 00:07:42,760 --> 00:07:47,240 Speaker 1: the Yahoo business in fact is actually worth zero uh. 140 00:07:47,280 --> 00:07:50,920 Speaker 1: If you calculate sort of the some of the parts analysis, 141 00:07:51,200 --> 00:07:54,840 Speaker 1: the market gives Yahoo business no worth whatsoever, which is 142 00:07:54,880 --> 00:07:57,960 Speaker 1: part of the reason why Yahoo is actually selling its 143 00:07:57,960 --> 00:08:00,760 Speaker 1: core business right now. Marissa Mayer realized is that if 144 00:08:00,760 --> 00:08:03,240 Speaker 1: you want to maximize share holder value, we have to 145 00:08:03,240 --> 00:08:04,840 Speaker 1: sell this thing for at least a few billion dollars 146 00:08:04,880 --> 00:08:07,360 Speaker 1: because we're not getting credit for any of it right now. 147 00:08:07,400 --> 00:08:10,600 Speaker 1: So Yahoo is made up of a steak in Ali Baba, 148 00:08:10,720 --> 00:08:13,920 Speaker 1: a minority steak in Ali Baba, a steak in Yahoo Japan. 149 00:08:14,480 --> 00:08:17,080 Speaker 1: Uh soft Bank owns the majority of the rest of 150 00:08:17,160 --> 00:08:20,640 Speaker 1: Yahoo Japan, and then the Yahoo core business. So these 151 00:08:20,720 --> 00:08:25,400 Speaker 1: three parts of make up Yahoo total. The Yahoo core 152 00:08:25,480 --> 00:08:28,960 Speaker 1: business is only worth about four billion dollars or so uh. 153 00:08:29,000 --> 00:08:31,360 Speaker 1: You know, the Yahoo steak in and Yahoo Japan is 154 00:08:31,360 --> 00:08:34,640 Speaker 1: worth about seven and nine billion dollars depending on when 155 00:08:34,679 --> 00:08:37,640 Speaker 1: you look. Uh. And then the rest of Yahoo's worth 156 00:08:37,720 --> 00:08:40,440 Speaker 1: is all in Ali Baba, which is a lot more alright, 157 00:08:40,440 --> 00:08:43,600 Speaker 1: So just one one last point question for you here, 158 00:08:43,920 --> 00:08:47,120 Speaker 1: Alex Sherman. Um the longer that this all takes to 159 00:08:47,160 --> 00:08:50,480 Speaker 1: resolve itself, what happens those businesses? Do they just die 160 00:08:50,559 --> 00:08:52,160 Speaker 1: on the vine? It's not like there's not a lot 161 00:08:52,200 --> 00:08:54,600 Speaker 1: of competition that's out there doing what they're supposed to 162 00:08:54,600 --> 00:08:56,560 Speaker 1: be doing every day. Yeah, it's a great question, and 163 00:08:56,600 --> 00:08:59,480 Speaker 1: I think it will depend on who the buyer is here, 164 00:08:59,520 --> 00:09:02,319 Speaker 1: so soon we get an announcement within the next week 165 00:09:02,440 --> 00:09:05,840 Speaker 1: or so. Each buyer has its own plan for Yahoo. 166 00:09:05,960 --> 00:09:09,240 Speaker 1: So you know, if TPG, which is a private equity firm, 167 00:09:09,280 --> 00:09:12,120 Speaker 1: buys Yahoo, you can expect some of those businesses to 168 00:09:12,160 --> 00:09:15,440 Speaker 1: die on the vine. Uh. They they will, you know, 169 00:09:15,600 --> 00:09:17,880 Speaker 1: do what a typical private equity firm does. They'll slash 170 00:09:17,880 --> 00:09:21,280 Speaker 1: and burn, they'll fire people, they'll shut down businesses. Uh 171 00:09:21,320 --> 00:09:23,720 Speaker 1: and and they'll sell off parts that they don't want. 172 00:09:24,000 --> 00:09:27,360 Speaker 1: If Verizon buys it, some of those businesses may stick 173 00:09:27,400 --> 00:09:29,400 Speaker 1: around for a little while longer because you can just 174 00:09:29,520 --> 00:09:32,440 Speaker 1: merge Yahoo in a o L uh in a o 175 00:09:32,600 --> 00:09:35,880 Speaker 1: L provides some uh that run by Tim Armstrong, still 176 00:09:35,920 --> 00:09:39,199 Speaker 1: within Verizon, run some businesses that are sort of symbiotic 177 00:09:39,240 --> 00:09:42,000 Speaker 1: to Yahoo. So some of that, some of the content plays, 178 00:09:42,040 --> 00:09:44,600 Speaker 1: and some of the ad technology that Yahoo has can 179 00:09:44,640 --> 00:09:47,600 Speaker 1: theoretically be merged with a O L And so some 180 00:09:47,640 --> 00:09:50,000 Speaker 1: of the employees there may live to see another day. 181 00:09:50,200 --> 00:09:53,200 Speaker 1: Tell us about soft Bank and the deal to buy 182 00:09:53,480 --> 00:09:56,160 Speaker 1: ARM Holdings. So this one is a little bit of 183 00:09:56,160 --> 00:09:59,360 Speaker 1: a surprise in terms of who the buyer is. Uh 184 00:09:59,600 --> 00:10:04,120 Speaker 1: uh arm You know, is this chip licensing their chip designer, 185 00:10:04,200 --> 00:10:08,360 Speaker 1: chip designer exactly. They don't actually make intellectual intellectual property, 186 00:10:08,480 --> 00:10:12,120 Speaker 1: so Softing is not a semi connector company. So in 187 00:10:12,240 --> 00:10:14,719 Speaker 1: terms of a buyer, you might think, oh, that's a 188 00:10:14,760 --> 00:10:18,640 Speaker 1: little weird Softing because this Japanese wireless provider that owns 189 00:10:19,360 --> 00:10:22,240 Speaker 1: or so of sprint in this country. So the idea 190 00:10:22,280 --> 00:10:24,200 Speaker 1: that they want to buy a chip designer is a 191 00:10:24,200 --> 00:10:27,240 Speaker 1: little out of the box. That's it. For regulatory reasons, 192 00:10:27,280 --> 00:10:29,160 Speaker 1: it's a little harder for someone in the game to 193 00:10:29,280 --> 00:10:32,560 Speaker 1: actually buy ARMED that the deal would likely be nixed 194 00:10:32,600 --> 00:10:34,480 Speaker 1: by regulators. So if someone wanted to do this, it 195 00:10:34,559 --> 00:10:36,559 Speaker 1: might have to be somebody out of the box. And 196 00:10:36,679 --> 00:10:39,360 Speaker 1: Masasan is a three year plan for soft Bank. It's 197 00:10:39,400 --> 00:10:41,600 Speaker 1: a bet on the Internet of things. That's really why 198 00:10:41,600 --> 00:10:46,080 Speaker 1: he did this, thanks very much. Alex Sherman Technology media, telecom, 199 00:10:46,080 --> 00:10:49,199 Speaker 1: mergers and acquisitions reporter for Bloomberg News. You can follow 200 00:10:49,280 --> 00:10:53,520 Speaker 1: him on Twitter at Sherman for nine for nine, this 201 00:10:54,000 --> 00:11:04,319 Speaker 1: is Bloomberg, coming up on taking stock. Steve Hefner, chief 202 00:11:04,360 --> 00:11:08,480 Speaker 1: executive co founder of the travel site Kayak, gives us 203 00:11:08,520 --> 00:11:12,200 Speaker 1: his thoughts on Ezeka and the Olympics in Brazil.