19/07/2016 World Business Report

Now for the latest financial news with Sally.

No buyer and the losses are widening, so what now for Yahoo

as it attempts to woo bidders for its core business?

The price is too high for Netflix subscribers.

Shares in the streaming giant tumble in after hours trade as it

reveals its stellar growth is slowing.

I'm Sally Bundock, also in the programme:

The internet firm Yahoo saw its losses widen to $440 million

in the three months to the end of June.

This was expected but investors were hoping for an update

on the company's plans to sell its core search

on that subject Yahoo revealed nothing!

Over the years shareholders have had a rollercoaster ride.

Yahoo's chief executive, Marissa Mayer,

It was hoped that she'd revive the business fortunes.

Acquisitions were Mayer's weapon of choice.

Since her appointment, Yahoo has bought more

Including the micro-blogging website Tumblr.

In the two years after she took over Yahoo's share

But in 2014, things started to change.

The company's share price took a tumble after the Chinese retailing

Yahoo owns a massive 15% stake in the business, so when Alibaba's

shares began to sink, it took Yahoo down with it.

So Yahoo's next plan of action was to sell

This move was announced earlier this year with several big tech names

But still no news of a concrete offer.

With me is Jamie Gavin from inPress online.

He can talk us through Yahoo. Nice to see you. It's been a troubled

time for this company for a long time and I think there was a lot of

excitement when they said they would sell core assets, but no news? No

news. I think the figures that were put out were largely in keeping with

where analysts thought they would be. I think what has surprised

analysts in most quarters is an announcement has not now been made

on the sell-off of its core business. We believe Yahoo has been

up for sale, it's been up for auction since around February this

year with some of the front runners being the likes of AT and Horizon,

real old school telecommunications companies. It was expected on the

back of this Q2 announcement an announcement would be made on the

sale of the core assets but that hasn't happened. For Root two or

AT you can understand why they would be interested, Yahoo has 1

billion active users mainly in the United States -- Verizon. There's

still a huge audience and it is a profitable business still, looking

at it with my media cat on, wherever there's eyes there's hope you can

scale that backup. What does that mean for those not familiar with the

term -- cap. An audience, an engaged user base. They have Yahoo Sport and

Finance, the e-mail business is still in place, people still go into

the property and the entities within it. For someone like an old school

telecommunications company that looks at the size of the audience

and infrastructure, there is still an appeal. In terms of the outlook,

if it were to sell its core business, what is left of Yahoo,

what would it then do? This is when it becomes more interesting. As

we've said it holds that 15% stake in Alibaba, this massive e-commerce

business, a stake also in Yahoo Japan. The King at it from a holding

company business point of view, things still look rosy -- looking.

But when it comes to its core business you wonder how much is left

in place. Let's now talk about Netflix. Netflix has come out with

its results. Among the news is the fact that the number of subscribers

has actually stalled a little bit. Netflix was the darling, the

disruptive technology company that everyone watched with great

interest. It seems it's asking for too much in terms of price, it's

come down to that very basic element. This is the interesting

one. Yahoo has been stalling and has been expected to reach this point

for a long time now, something like a Netflix is much more of a New Kid

on the Block. It was seen by many to be one of the four runners in

bridging that gap between old school broadcaster technology with your new

school online video play. It is shocking that the shares can tumble

like this. I would say it is very content focused, it doesn't have a

Facebook or Twitter, that real kind of community engagement and that

aspect to its offering. If the popularity of the content goes down

or the price of the content goes up then you could be in trouble. It

reminds us that for Netflix, although everyone was watching

Netflix and talking about the fact it was disrupted for companies like

the BBC. A major headache. It shows the competition is really hot.

Netflix has got to keep its eye on other players like Amazon Prime.

Amazon and Hulu and the BBC is ramping up its iPlayer offering, and

who knows what that could look like in two to three years time on a

global level. YouTube is evolving its own services allowing for longer

videos and promoting the longer content it's got. There will always

be competitors and when you go for this old school subscription based

model, it is quite an old school media model of asking for a monthly

subscription, you're always going out on a limb and looking for a very

loyal, retained audience and that can be subject to fluctuation.

Difficult in these times to get a loyal, retained audience. Thank you

for coming in and appreciate your analysis so early in the morning, he

not normally up at this type. Let's continue with other business news.

Fiat Chrysler is being investigated by US

regulators over the way it reports quarterly and annual results.

The company says it records revenues based on shipments to dealers rather

Fiat Chrysler recorded a 7% rise in its monthly sales in June,

its best result for that month since 2005.

Shares in Istanbul closed down more than 7% on Monday

following the failed military coup in Turkey on Friday.

After a fairly quiet start to trading on Monday,

shares slid by nearly 9% cent at one point

Markets in the country are due to start trading in

That the equity markets we're talking about of course. -- that's.

In Japan's Softbank have tumbled 10 in Tokyo --

Let's find out what analysts think. Nice to see you. People not

impressed with the decision in Tokyo? Quite disappointed, investors

and traders, about Softbank buying our holdings for $32 billion because

Sally, Softbank is a highly indebted company and its largest takeover to

date piles on additional debt investors and analysts never saw

this investment coming. Masayoshi son, the founder of Softbank, has

invested $90 billion in assets sales including sales in Alibaba and a

software company in Finland but analysts and investors expected

Softbank to use this huge pile of cash to reduce its debt load or give

shareholders a windfall by buying back its own shares or through

dividends, but it wasn't meant to be. It's putting pressure on the

stock and it is borrowing money through bridge financing to make

this Arm deal happen. We will have to wait and see after investors

digests what the synergies of this deal will be if we are going to see

the stock back up in a few hours time or by tomorrow. Thanks very

much. Nice to see you. Let show you the markets. Japan closed for the

day on Monday but it has opened today. Up by 0.6%. Hong Kong and

elsewhere we are seeing declines, the price of oil going down, just

under $47 a barrel. Let's go to the next board which shows you things

ending in the US, up but not significantly. The earnings stories

dominating trade on Wall Street. As they come in we will update you.

Yahoo and Netflix were the big ones reporting yesterday after the close

on Wall Street. That's all from World Business Report. CU soon.

A group of MPs has calculated that the annual increase in health

spending in England by the end of this parliament will be little

more than half the figure claimed by government.