Speaker 1: Broadcasting live to New York, Bloomberg even to Washington, d C,
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Speaker 1: Bloomberg Radio plus David Bloomberg dot com. This is taking Stock.
Speaker 1: Coming up on taking stock, will take stock of Yahoo
Speaker 1: the company posts another loss, right down an investment in Tumbler,
Speaker 1: and we'll find out what's left of the assets of
Speaker 1: Yahoo and who will purchase him. That's all coming up
Speaker 1: next on taking stock. But right now, let's go to
Speaker 1: Charlie Kellton and the the Bloomberg Looser or Bloomberg Business Flag,
Speaker 1: and I thank you pim Fox. Just getting word of
Speaker 1: a change in the location of the September twenty six
Speaker 1: presidential debate. It is being moved to Hofstra on Long
Speaker 1: Island outside of New York from Right State. Right State
Speaker 1: pulling out of hosting the debate after security costs rose
Speaker 1: from three and a half million dollars to over eight
Speaker 1: million dollars, so that September twenty six presidential debate will
Speaker 1: be held on Long Island. SMP five hundred index is
Speaker 1: lower than dal higher NESDAK is lower as well, following
Speaker 1: a mix of corporate earnings reports, the recent run up
Speaker 1: for equities hitting some headwinds. Today, Netflix tumbling UH thirteen
Speaker 1: point five percent after subscriber growth disappointed. Also Johnson and
Speaker 1: Johnson providing some offset. It shares higher now by one
Speaker 1: point four percent after quarterly profit beat estimates. John Mantley
Speaker 1: is chief executive chief equity strategist, I should say at
Speaker 1: Wells Fargo Funds Management. He was interviewed about the big
Speaker 1: picture for earnings and markets this morning on Bloomberg Television.
Speaker 1: I think we're moving higher now. Again. I tend to
Speaker 1: be too optimistic. It's my nature, so I should come
Speaker 1: with a warning tag. But I think what's happening. He's
Speaker 1: earnings are starting. Earning has been flat to earnings are
Speaker 1: starting to get better. I think after you call it
Speaker 1: an intercession, I think it was just sideways are in
Speaker 1: slightly down, not particularly great, not particularly bad. But I
Speaker 1: think that's starting to get better. And if that does
Speaker 1: get better, if earnings get better and we see new
Speaker 1: highs and earnings, I think the market can finally get
Speaker 1: excited about something. A person familiar where the matter says
Speaker 1: us Anti Trust officials are poised to follow lawsuits to
Speaker 1: block Anthems takeover of rival health insurer Signa and Etna
Speaker 1: d ETNAS deal to buy Humana again. According to a
Speaker 1: person familiar with the matter, we will have more on
Speaker 1: the story coming up. On taking Stock the now up
Speaker 1: six points now a gain of less than point one percent,
Speaker 1: SMP down three tenths of long percent, Gold up three
Speaker 1: dollars the ounce, the thirteen thirty two a gain of
Speaker 1: point two percent, and two thirty two on Wall Street
Speaker 1: to look at the other stories making news. Thank you
Speaker 1: Charlie from the Bloomberg newsroom. I'm Jill Schneider. This news
Speaker 1: update is brought to you by Audie. Is it a
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Speaker 1: models during the summer of Audi sales event. Republic Can
Speaker 1: leaders say Melania Trump is not to blame for her
Speaker 1: speech is parallels last night with a convention speech Michelle
Speaker 1: Obama gave eight years ago. Bloomberg's Bob Moon has more.
Speaker 1: This is as far as the Trump camp will go.
Speaker 1: There are similarities between the speeches. That your word is
Speaker 1: your bond, that you do what you say You're gonna
Speaker 1: do that. Your word is your bonds, and you do
Speaker 1: what you say. Governor Chris Christie declared not a three
Speaker 1: percent of the speech is completely different, while GEO pe
Speaker 1: Chrman Bryant's previous tells Bloomberg that can be explained. These
Speaker 1: are basic seems commonly used. On CNN, Trump campaign manager
Speaker 1: Paul Metaphort goes further blaming the Clinton campaign. This is
Speaker 1: once again an example of when a woman threatened Hillary
Speaker 1: Clinton chie's six octors demeanor and take her down. Democratic
Speaker 1: cheer woman de Wie Wasson Schultz, also on CNN, calls
Speaker 1: that part of a pattern with Trump's campaign. Anytime they
Speaker 1: are caught red handed, they blame someone else, Moon Bloomberg Radio.
Speaker 1: Cleveland Police Chief Calvin Williams says, although there are a
Speaker 1: few rowdy protesters outside the Republican National Convention, most of
Speaker 1: the demonstrations have been peaceful. We want to make sure
Speaker 1: that people understand peaceful, non violent, which is what we've
Speaker 1: had so far, and we want to keep it that way.
Speaker 1: Governor Andrew Cuomo is unveiling designs for New York City
Speaker 1: subway cars with wider doors, WiFi and phone charging stations.
Speaker 1: The twenty seven billion dollar plan calls for new and
Speaker 1: upgraded subway cars and busses, better control technology, and redesigned
Speaker 1: subway stations. Global News twenty four hours a day, powered
Speaker 1: by more than twenty journalists and analysts in more than
Speaker 1: one twenty countries. I'm Jill Schneider. This is Bloomberg, Charlie,
Speaker 1: and again we thank you and recapping what's happening on
Speaker 1: Wall Street. We've got the Dow up six points, little change,
Speaker 1: their SMP down five, a drop of three tenths of
Speaker 1: one percent. I'm Charlie Pellaton. That's a Bloomberg business flash.
Speaker 1: You're listening to taking stock with Kathleen Hays and Pim
Speaker 1: Box on Bloomberg Radio. Yahoo. Yahoo said that its revenue
Speaker 1: in the second quarter fell fifteen percent. It's operating profit
Speaker 1: fell sixtent. The company also acknowledge that Tumbler, this is
Speaker 1: the biggest acquisition under its current chief executive Marissa Mayram,
Speaker 1: was now worth only a third of the one point
Speaker 1: one billion dollars that Yahoo paid for it in twent thirteen.
Speaker 1: For more on Yahoo, I want to bring It. Alex Sherman,
Speaker 1: Bloomberg News, m and a reporter focusing on technology, media,
Speaker 1: and telecoms. He can be followed on Twitter at Sherman
Speaker 1: four nine four nine all right, Sherman four nine for
Speaker 1: nine tell us about the numbers when it comes to Yahoo,
Speaker 1: like no one, No one really cares about the numbers anymore, PIM.
Speaker 1: Because this company is for sale. This will be Marrissa
Speaker 1: Meyer's last earnings call where Yahoo is an independent company. UH,
Speaker 1: at least in terms of you know, it'll be announced
Speaker 1: that the deal'll have to close, so she she may
Speaker 1: stick around for one or two more, but this will
Speaker 1: be the last one where there's no buyer for Yahoo.
Speaker 1: Unless something really, really surprising happens. We should have UH
Speaker 1: an idea or or in fact, an announcement of who
Speaker 1: buys Yahoo within the next week or so. Final bids
Speaker 1: were due yesterday. Verizon is a likely buyer of Yahoo. UH.
Speaker 1: Dan Gilbert's Quicken loans as a possible buyer. UH. A
Speaker 1: private equity firm called Vector Capital is still in the mix. UH,
Speaker 1: TPG and a t T also made bids. Those are
Speaker 1: the five. They're a little less likely UH to win
Speaker 1: as far as the sources that I have spoken to,
Speaker 1: But Yahoo is UH is not a good business these days. Him. Uh,
Speaker 1: it's it took a four eight two million dollar uh
Speaker 1: impairment charge for Tumbler, as you alluded to. That was
Speaker 1: Marissa Meyers, really her biggest deal, and during her tenure
Speaker 1: that yeah, who acquired that in Uh. You know, revenue
Speaker 1: continues to sort of bump along. The Yahoo posted revenue
Speaker 1: of one point three billion, that's up five percent year
Speaker 1: over year, but earnings are down. They're down about forty
Speaker 1: three percent per share from a year ago. And it's
Speaker 1: tough when a company is going through a very well
Speaker 1: publicized sale process us to motivate employees and to keep
Speaker 1: customers happy. And Yahoo has struggled. Yahoo has struggled. I
Speaker 1: wonder if you just go back to that Tumbler acquisition
Speaker 1: just for a moment. One point one billion dollars of
Speaker 1: shareholder money, right, this is not this is shareholder money.
Speaker 1: This is this is money that is owed to the shareholders.
Speaker 1: And it seems nobody cares that they're going to write
Speaker 1: off like two thirds of the entire purchase. Yeah. The
Speaker 1: reason I think no one cares is that Yahoo has
Speaker 1: traded as basically a stub for Ali Baba uh for
Speaker 1: years now. So yeah. In other words, if you look
Speaker 1: at Yahoo, whether it goes up or down on a
Speaker 1: given day with the market, it is almost always in
Speaker 1: line with whether Ali Baba moves up or down. So
Speaker 1: the Yahoo business in fact is actually worth zero uh.
Speaker 1: If you calculate sort of the some of the parts analysis,
Speaker 1: the market gives Yahoo business no worth whatsoever, which is
Speaker 1: part of the reason why Yahoo is actually selling its
Speaker 1: core business right now. Marissa Mayer realized is that if
Speaker 1: you want to maximize share holder value, we have to
Speaker 1: sell this thing for at least a few billion dollars
Speaker 1: because we're not getting credit for any of it right now.
Speaker 1: So Yahoo is made up of a steak in Ali Baba,
Speaker 1: a minority steak in Ali Baba, a steak in Yahoo Japan.
Speaker 1: Uh soft Bank owns the majority of the rest of
Speaker 1: Yahoo Japan, and then the Yahoo core business. So these
Speaker 1: three parts of make up Yahoo total. The Yahoo core
Speaker 1: business is only worth about four billion dollars or so uh.
Speaker 1: You know, the Yahoo steak in and Yahoo Japan is
Speaker 1: worth about seven and nine billion dollars depending on when
Speaker 1: you look. Uh. And then the rest of Yahoo's worth
Speaker 1: is all in Ali Baba, which is a lot more alright,
Speaker 1: So just one one last point question for you here,
Speaker 1: Alex Sherman. Um the longer that this all takes to
Speaker 1: resolve itself, what happens those businesses? Do they just die
Speaker 1: on the vine? It's not like there's not a lot
Speaker 1: of competition that's out there doing what they're supposed to
Speaker 1: be doing every day. Yeah, it's a great question, and
Speaker 1: I think it will depend on who the buyer is here,
Speaker 1: so soon we get an announcement within the next week
Speaker 1: or so. Each buyer has its own plan for Yahoo.
Speaker 1: So you know, if TPG, which is a private equity firm,
Speaker 1: buys Yahoo, you can expect some of those businesses to
Speaker 1: die on the vine. Uh. They they will, you know,
Speaker 1: do what a typical private equity firm does. They'll slash
Speaker 1: and burn, they'll fire people, they'll shut down businesses. Uh
Speaker 1: and and they'll sell off parts that they don't want.
Speaker 1: If Verizon buys it, some of those businesses may stick
Speaker 1: around for a little while longer because you can just
Speaker 1: merge Yahoo in a o L uh in a o
Speaker 1: L provides some uh that run by Tim Armstrong, still
Speaker 1: within Verizon, run some businesses that are sort of symbiotic
Speaker 1: to Yahoo. So some of that, some of the content plays,
Speaker 1: and some of the ad technology that Yahoo has can
Speaker 1: theoretically be merged with a O L And so some
Speaker 1: of the employees there may live to see another day.
Speaker 1: Tell us about soft Bank and the deal to buy
Speaker 1: ARM Holdings. So this one is a little bit of
Speaker 1: a surprise in terms of who the buyer is. Uh
Speaker 1: uh arm You know, is this chip licensing their chip designer,
Speaker 1: chip designer exactly. They don't actually make intellectual intellectual property,
Speaker 1: so Softing is not a semi connector company. So in
Speaker 1: terms of a buyer, you might think, oh, that's a
Speaker 1: little weird Softing because this Japanese wireless provider that owns
Speaker 1: or so of sprint in this country. So the idea
Speaker 1: that they want to buy a chip designer is a
Speaker 1: little out of the box. That's it. For regulatory reasons,
Speaker 1: it's a little harder for someone in the game to
Speaker 1: actually buy ARMED that the deal would likely be nixed
Speaker 1: by regulators. So if someone wanted to do this, it
Speaker 1: might have to be somebody out of the box. And
Speaker 1: Masasan is a three year plan for soft Bank. It's
Speaker 1: a bet on the Internet of things. That's really why
Speaker 1: he did this, thanks very much. Alex Sherman Technology media, telecom,
Speaker 1: mergers and acquisitions reporter for Bloomberg News. You can follow
Speaker 1: him on Twitter at Sherman for nine for nine, this
Speaker 1: is Bloomberg, coming up on taking stock. Steve Hefner, chief
Speaker 1: executive co founder of the travel site Kayak, gives us
Speaker 1: his thoughts on Ezeka and the Olympics in Brazil.