welcome to the sixth installment of hit Bolger I’m your host Afghan Carver
Bolger I’m your host Afghan Carver
Bolger I’m your host Afghan Carver solution and I’m CT Moore welcome back
solution and I’m CT Moore welcome back
solution and I’m CT Moore welcome back to you thanks for having me a lot to
to you thanks for having me a lot to
to you thanks for having me a lot to talk about today lots to talk about soap
talk about today lots to talk about soap
talk about today lots to talk about soap operas going on at AOL and Yahoo of
operas going on at AOL and Yahoo of
operas going on at AOL and Yahoo of course we’re going to talk about whether
course we’re going to talk about whether
course we’re going to talk about whether or not the laws of diminishing return
or not the laws of diminishing return
or not the laws of diminishing return applied to advertising when it comes to
applied to advertising when it comes to
applied to advertising when it comes to scale and reach then later on in
scale and reach then later on in
scale and reach then later on in lightning round we’re going to cover a
lightning round we’re going to cover a
lightning round we’re going to cover a lot of things such as CBS vintage
lot of things such as CBS vintage
lot of things such as CBS vintage business also on AOL as well as
business also on AOL as well as
business also on AOL as well as delicious delicious is coming back
delicious delicious is coming back
delicious delicious is coming back thanks to the guys who started YouTube
thanks to the guys who started YouTube
thanks to the guys who started YouTube let’s get right to it okay so a lot of
let’s get right to it okay so a lot of
let’s get right to it okay so a lot of rumors going around a lot of action
rumors going around a lot of action
rumors going around a lot of action around Yahoo’s name right now they fired
around Yahoo’s name right now they fired
around Yahoo’s name right now they fired Carol Bartz apparently they’re not
Carol Bartz apparently they’re not
Carol Bartz apparently they’re not looking for a replacement there’s rumors
looking for a replacement there’s rumors
looking for a replacement there’s rumors of mergers what do you make out of this
of mergers what do you make out of this
of mergers what do you make out of this what do you think what options does a
what do you think what options does a
what do you think what options does a company like you have left at this point
company like you have left at this point
company like you have left at this point well yeah was a lot of options I think
well yeah was a lot of options I think
well yeah was a lot of options I think they are the premier digital media
they are the premier digital media
they are the premier digital media company out there I think most users who
company out there I think most users who
company out there I think most users who you know visit sites don’t really care
you know visit sites don’t really care
you know visit sites don’t really care about what bloggers have to say and most
about what bloggers have to say and most
about what bloggers have to say and most advertisers also don’t really care about
advertisers also don’t really care about
advertisers also don’t really care about what the bloggers think yeah who should
what the bloggers think yeah who should
what the bloggers think yeah who should do the reality is that Yahoo remains the
do the reality is that Yahoo remains the
do the reality is that Yahoo remains the largest pure-play digital media company
largest pure-play digital media company
largest pure-play digital media company and I think they have a lot of momentum
and I think they have a lot of momentum
and I think they have a lot of momentum in the last year with what Ross Levinson
in the last year with what Ross Levinson
in the last year with what Ross Levinson has started to do basically moving them
has started to do basically moving them
has started to do basically moving them away from being a tech company and more
away from being a tech company and more
away from being a tech company and more of a publisher so I think if they
of a publisher so I think if they
of a publisher so I think if they continue that path they might even do
continue that path they might even do
continue that path they might even do better with Carol Bartz gone because
better with Carol Bartz gone because
better with Carol Bartz gone because Carol Bartz was like an operations
Carol Bartz was like an operations
Carol Bartz was like an operations person who came in to sort of you know
person who came in to sort of you know
person who came in to sort of you know clean up the the excessive layers of
clean up the the excessive layers of
clean up the the excessive layers of management and whatnot she wasn’t a
management and whatnot she wasn’t a
management and whatnot she wasn’t a product person she wasn’t a sales person
product person she wasn’t a sales person
product person she wasn’t a sales person necessarily I think she had to go the
necessarily I think she had to go the
necessarily I think she had to go the way she was fired might raise some
way she was fired might raise some
way she was fired might raise some questions getting fired by the Chairman
questions getting fired by the Chairman
questions getting fired by the Chairman over the phones definitely not cool but
over the phones definitely not cool but
over the phones definitely not cool but she had to go and I think it was just a
she had to go and I think it was just a
she had to go and I think it was just a matter of time
matter of time
matter of time fair enough I want to point out though
fair enough I want to point out though
fair enough I want to point out though that I think ours a lot of options so
that I think ours a lot of options so
that I think ours a lot of options so Yahoo could basically stay independent I
Yahoo could basically stay independent I
Yahoo could basically stay independent I don’t necessarily think this talk about
don’t necessarily think this talk about
don’t necessarily think this talk about merging with AOL really holds any water
merging with AOL really holds any water
merging with AOL really holds any water I mean that’s like the expression of
I mean that’s like the expression of
I mean that’s like the expression of time to bridge together what do you
time to bridge together what do you
time to bridge together what do you think’s gonna happen
think’s gonna happen
think’s gonna happen it ain’t gonna float realistically Yahoo
it ain’t gonna float realistically Yahoo
it ain’t gonna float realistically Yahoo could sell right now to a big media
could sell right now to a big media
could sell right now to a big media companies such as Viacom or CBS or News
companies such as Viacom or CBS or News
companies such as Viacom or CBS or News Corp or Disney or Comcast I don’t
Corp or Disney or Comcast I don’t
Corp or Disney or Comcast I don’t necessarily see that happening they
necessarily see that happening they
necessarily see that happening they could also sell to a tech company
could also sell to a tech company
could also sell to a tech company Microsoft could come back you know we
Microsoft could come back you know we
Microsoft could come back you know we all remember Microsoft for forty five
all remember Microsoft for forty five
all remember Microsoft for forty five billion dollars for Yahoo a few years
billion dollars for Yahoo a few years
billion dollars for Yahoo a few years ago I wish I’m sure are you still in the
ago I wish I’m sure are you still in the
ago I wish I’m sure are you still in the stock at the time no longer now I’m sure
stock at the time no longer now I’m sure
stock at the time no longer now I’m sure they wish they could go back and
they wish they could go back and
they wish they could go back and basically buy
basically buy
basically buy sorry sell to Microsoft I don’t
sorry sell to Microsoft I don’t
sorry sell to Microsoft I don’t necessarily see that happening
necessarily see that happening
necessarily see that happening I think if they were to stay in the
I think if they were to stay in the
I think if they were to stay in the pendant and unload all of the Asian
pendant and unload all of the Asian
pendant and unload all of the Asian assets which really they have no say in
assets which really they have no say in
assets which really they have no say in in terms of day to day they would
in terms of day to day they would
in terms of day to day they would basically wind up with ten billion
basically wind up with ten billion
basically wind up with ten billion dollars worth of cash on their balance
dollars worth of cash on their balance
dollars worth of cash on their balance sheet because the Asian assets basically
sheet because the Asian assets basically
sheet because the Asian assets basically account for a hundred percent of the
account for a hundred percent of the
account for a hundred percent of the company’s market gap right now don’t you
company’s market gap right now don’t you
company’s market gap right now don’t you think it might be worth it to hold on to
think it might be worth it to hold on to
think it might be worth it to hold on to assets in a growing market yeah but only
assets in a growing market yeah but only
assets in a growing market yeah but only if you actually have a say on it we
if you actually have a say on it we
if you actually have a say on it we remember that Jack Ma basically spun off
remember that Jack Ma basically spun off
remember that Jack Ma basically spun off Ali pay from Alibaba and sold it to
Ali pay from Alibaba and sold it to
Ali pay from Alibaba and sold it to himself and essentially allegedly
himself and essentially allegedly
himself and essentially allegedly screwed Yahoo out of that shareholder
screwed Yahoo out of that shareholder
screwed Yahoo out of that shareholder position that they had so when forget
position that they had so when forget
position that they had so when forget not having any operational say on the
not having any operational say on the
not having any operational say on the matter if you don’t even if you’re not
matter if you don’t even if you’re not
matter if you don’t even if you’re not even aware that that you’re holding has
even aware that that you’re holding has
even aware that that you’re holding has been evaporated liquidated it just goes
been evaporated liquidated it just goes
been evaporated liquidated it just goes to show that it’s become a distraction I
to show that it’s become a distraction I
to show that it’s become a distraction I think Yahoo’s Asian assets maybe had a
think Yahoo’s Asian assets maybe had a
think Yahoo’s Asian assets maybe had a lot of strategic value early on because
lot of strategic value early on because
lot of strategic value early on because the market assumed that they would be
the market assumed that they would be
the market assumed that they would be able to you know get some synergies out
able to you know get some synergies out
able to you know get some synergies out of it it’s not really the case they’re
of it it’s not really the case they’re
of it it’s not really the case they’re sort of run independently and to I think
sort of run independently and to I think
sort of run independently and to I think it’s become a distraction yahoo has
it’s become a distraction yahoo has
it’s become a distraction yahoo has revenues last year of seven billion
revenues last year of seven billion
revenues last year of seven billion dollars and they have a bid of 1.2
dollars and they have a bid of 1.2
dollars and they have a bid of 1.2 billion dollars traditional media
billion dollars traditional media
billion dollars traditional media companies like CBS and Viacom trade for
companies like CBS and Viacom trade for
companies like CBS and Viacom trade for about 15 times evide so if you take 15
about 15 times evide so if you take 15
about 15 times evide so if you take 15 the multiple of 15 times
the multiple of 15 times
the multiple of 15 times Abaddon and x Yahoo’s 1.2 billion dollar
Abaddon and x Yahoo’s 1.2 billion dollar
Abaddon and x Yahoo’s 1.2 billion dollar income that basically means that Yahoo
income that basically means that Yahoo
income that basically means that Yahoo should have a 15 to 20 billion dollar
should have a 15 to 20 billion dollar
should have a 15 to 20 billion dollar market cap Yahoo right now trades for 15
market cap Yahoo right now trades for 15
market cap Yahoo right now trades for 15 to 20 billion dollars but that is really
to 20 billion dollars but that is really
to 20 billion dollars but that is really just reflecting the value of its asian
just reflecting the value of its asian
just reflecting the value of its asian assets
assets
assets so if Yahoo right now has only 2 billion
so if Yahoo right now has only 2 billion
so if Yahoo right now has only 2 billion of cash but they sell you know the 10
of cash but they sell you know the 10
of cash but they sell you know the 10 billion to 15 billion dollars worth of
billion to 15 billion dollars worth of
billion to 15 billion dollars worth of Asian securities that they have all of a
Asian securities that they have all of a
Asian securities that they have all of a sudden their enterprise value which is
sudden their enterprise value which is
sudden their enterprise value which is market cap plus cash jumps up sorry it
market cap plus cash jumps up sorry it
market cap plus cash jumps up sorry it which is a market value less cash it
which is a market value less cash it
which is a market value less cash it just jumps up their market cap would
just jumps up their market cap would
just jumps up their market cap would basically double overnight through just
basically double overnight through just
basically double overnight through just sheer financial engineering so I think
sheer financial engineering so I think
sheer financial engineering so I think they will have to unload the asian
they will have to unload the asian
they will have to unload the asian assets if they actually want to even buy
assets if they actually want to even buy
assets if they actually want to even buy anything it was reported that they
anything it was reported that they
anything it was reported that they wanted to buy hulu they’re still in the
wanted to buy hulu they’re still in the
wanted to buy hulu they’re still in the running although it looks it looks like
running although it looks it looks like
running although it looks it looks like Amazon and Google are the leaders there
Amazon and Google are the leaders there
Amazon and Google are the leaders there and I think one reason why Amazon is the
and I think one reason why Amazon is the
and I think one reason why Amazon is the leader is because of the connection that
leader is because of the connection that
leader is because of the connection that Jeff Bezos CEO of Amazon has with Jason
Jeff Bezos CEO of Amazon has with Jason
Jeff Bezos CEO of Amazon has with Jason Kilar but the reason why Google might
Kilar but the reason why Google might
Kilar but the reason why Google might end up winning the Derby is because they
end up winning the Derby is because they
end up winning the Derby is because they have more cash than anyone else they can
have more cash than anyone else they can
have more cash than anyone else they can offer a lot more not just in terms of at
offer a lot more not just in terms of at
offer a lot more not just in terms of at sale price but they can offer a lot more
sale price but they can offer a lot more
sale price but they can offer a lot more overtime in terms of licensing fees
overtime in terms of licensing fees
overtime in terms of licensing fees which is I think what Hulu’s owners
which is I think what Hulu’s owners
which is I think what Hulu’s owners Disney Disney Fox and Comcast NBC
Disney Disney Fox and Comcast NBC
Disney Disney Fox and Comcast NBC Universal care more about if hulu sells
Universal care more about if hulu sells
Universal care more about if hulu sells for two billion three billion whatever
for two billion three billion whatever
for two billion three billion whatever that cash right now doesn’t really move
that cash right now doesn’t really move
that cash right now doesn’t really move the needle for traditional media
the needle for traditional media
the needle for traditional media companies that own the hulu stock but if
companies that own the hulu stock but if
companies that own the hulu stock but if each year google commits to paying those
each year google commits to paying those
each year google commits to paying those traditional media companies say five
traditional media companies say five
traditional media companies say five hundred million dollars as an annuity
hundred million dollars as an annuity
hundred million dollars as an annuity that will have a lot of value over time
that will have a lot of value over time
that will have a lot of value over time so my guess is that yahoo will find
so my guess is that yahoo will find
so my guess is that yahoo will find itself on the outside looking in will
itself on the outside looking in will
itself on the outside looking in will not be able to buy hulu that will upset
not be able to buy hulu that will upset
not be able to buy hulu that will upset them enough to realize that they just
them enough to realize that they just
them enough to realize that they just need to raise cash and the best easy way
need to raise cash and the best easy way
need to raise cash and the best easy way for them to do that is by unloading the
for them to do that is by unloading the
for them to do that is by unloading the asian assets if they’re gonna focus on
asian assets if they’re gonna focus on
asian assets if they’re gonna focus on publishing and they want to make cash do
publishing and they want to make cash do
publishing and they want to make cash do you think it would make sense for them
you think it would make sense for them
you think it would make sense for them to unload their their web applications
to unload their their web applications
to unload their their web applications yahoo search is already powered by Bing
yahoo search is already powered by Bing
yahoo search is already powered by Bing they have Yahoo Mail which you know
they have Yahoo Mail which you know
they have Yahoo Mail which you know really isn’t driving their business in
really isn’t driving their business in
really isn’t driving their business in any meaningful way anymore and then they
any meaningful way anymore and then they
any meaningful way anymore and then they have other services like Flickr which
have other services like Flickr which
have other services like Flickr which they own while it is the content it’s
they own while it is the content it’s
they own while it is the content it’s user-generated and it’s not that premium
user-generated and it’s not that premium
user-generated and it’s not that premium style of content that they seem to be
style of content that they seem to be
style of content that they seem to be pushing you seem to suggest they push
pushing you seem to suggest they push
pushing you seem to suggest they push into I do think that they need to move
into I do think that they need to move
into I do think that they need to move away from being a tech company because
away from being a tech company because
away from being a tech company because they’re gonna not be able to compete
they’re gonna not be able to compete
they’re gonna not be able to compete with Google as in terms of selling off
with Google as in terms of selling off
with Google as in terms of selling off some of those assets it’s a great segue
some of those assets it’s a great segue
some of those assets it’s a great segue we’ll revisit this during the lightening
we’ll revisit this during the lightening
we’ll revisit this during the lightening round when we talked about the you
round when we talked about the you
round when we talked about the you YouTube guys bringing back delicious and
YouTube guys bringing back delicious and
YouTube guys bringing back delicious and we’ll talk a bit about what Yahoo could
we’ll talk a bit about what Yahoo could
we’ll talk a bit about what Yahoo could do with regards to Flickr we’ll be right
do with regards to Flickr we’ll be right
do with regards to Flickr we’ll be right back
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