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Techquity: Expect a big writedown for Yahoo

Friday, August 09, 2013 - 03:17

August 9 - Reuters Breakingviews Columnist Rob Cyran gives his take on Yahoo's costly acquisition, Priceline's success and more.

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Priceline the online travel company stock is looking a bit like spokesman William Shatner wacky. The stock's closing at thousand dollars which would make it the first 1000 dollar stock in the SP 500 and give the company a market capitalization of fifty billion dollars. But the market just seems crazy captain Kurt he often had a hidden method to his madness that's the case here. The American travel auction business it's just a shards of her side took the company it's quasi monopoly of our online booking for European hotels that's the generates huge profits. And there are signs priceless gain traction Asian hotels here. If so Priceline stock keep rising. Blackberry the company's board is increasingly warming up the idea of taking the firm -- -- for Reuters exclusive. The idea is that turnaround is easier in private well now. Google apple have won the battle over Smartphone operating systems going private won't make the -- nearly impossible job any easier. Sure the company still got some value but it's got 2.5 billion dollars of cash and valuable patents on its books. As businesses can still trust more cash before it dies. But it's hard to see anyone buying the -- -- blackberries current five billion dollar market cap. Blackberry should've sold itself nearly two years ago then mobile patents are red hot and people were still excited about upcoming phones. And Dell hadn't shown how hard it can be to take a fitting tech firm private. But at times past so don't count -- sale anytime soon. Shares up 4% however on the possibility of going pride. This guy worth a billion dollars young made it big splash with a one point one billion dollar acquisition of Tumblr founder by 27 year old CEO David -- But looks like he would end up underwater on the deal. A regulatory filing says that toddler had less than seventeen million dollars in cash. Most of the cost that cost the purchase so it fifty million dollars is considered good well. In other words it's paying 750 million dollars for squishy concept to -- on cell. For example the reputation of its cash for any brand and the programming genius like -- Cristiano. On this carpet simply walk at the door they promised him more than eighty million dollars in cash and stock if you're remains in play for four years to help. But it's hard to see like carpet the site's worth so much Tom -- got a history of losses in Yahoo! has a history of -- acquisitions. In my view with a seven -- fifty million dollars for simply be and up written down. Yahoo! would join other tech companies like Microsoft which wrote down six point two billion dollars and a -- by. And HP which is written down almost twenty billion dollars from its purchases of palm autonomy EDS. Shares of Yahoo! roughly flat today. Sorry today's Universal Display. The only supplier said he expects full year results near the high end of its range helped by higher license fees and more orders from flat panel display makers like Samsung. And -- is Yoko. The Chinese online video company forecast revenue and current quarter below analysts' estimates as demand for advertising services slowed shares down 11%. That's tech what is Friday from everything follows a quarter -- terrorist acts are brought here. And this is right.

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Techquity: Expect a big writedown for Yahoo

Friday, August 09, 2013 - 03:17