2 Article Summaries (21)

http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/digital-media/12137374/Yahoo-admits-it-could-sell-off-its-core-internet-business.html

Yahoo admits it could sell off its core internet business

Summary:

Yahoo has opened the door to a sale of its core internet business, as part of a raft of measures aimed at reversing the company’s long-running slump. Yahoo has come under pressure from activist investors to sell off its main business and cut costs so it can return to better shape. Yahoo will also close offices in five cities - Dubai, Mexico City, Buenos Aires, Madrid and Milan - and raise up to $3bn from the sale of non-core assets.

Key Data:

• The US search firm, which also revealed that it suffered a $4.4bn loss last year, said it would explore “strategic alternatives” for the internet unit alongside its preferred plan of a spin-off.
• in November 2014, Yahoo revealed plans to axe 15pc of its workforce. It aims to have 9,000 employees by the end of the year.
• As its core business has struggled, Yahoo has been looking at ways to maximise the performance of its $24bn stake in Chinese internet retailer Alibaba.

My View:

In my opinion, yahoo is not a very popular option for internet so selling its core internet business may be the best thing to do. 

http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/digital-media/12134465/Twitter-shares-jump-over-10pc-on-talk-of-Marc-Andreessen-and-Silver-Lake-takeover.html

Twitter shares jump over 10pc on talk of Marc Andreessen and Silver Lake takeover

Summary:

Shares in Twitter leapt more than 11pc at one stage on Monday amid reports that the company may be a takeover target for private equity group Silver Lake and famous Silicon Valley investor Marc Andreessen. Twitter, which is struggling with growth two years after it floated in New York, is rapidly becoming seen as a takeover target as its share price falls, making a potential deal more likely. Google and News Corp have both been rumoured to be interested, although the latter denied it two weeks ago.

Key data:

• The news sent shares in Twitter soaring but they fell back after reports that the private equity group was not interested, trading around 5.5pc up.
• Its market value is now around $11bn, less than 25pc of its peak.
• Google and News Corp have both been rumoured to be interested, although the latter denied it two weeks ago.

My view:

In my opinion, twitter has been a very popular social networking site for a long while, which is why I think the shares have grown especially due to the talk of the new takeover.