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Now for the latest financial news with Sally. | :00:00. | :00:12. | |
No buyer and the losses are widening, so what now for Yahoo | :00:13. | :00:18. | |
as it attempts to woo bidders for its core business? | :00:19. | :00:23. | |
The price is too high for Netflix subscribers. | :00:24. | :00:26. | |
Shares in the streaming giant tumble in after hours trade as it | :00:27. | :00:30. | |
reveals its stellar growth is slowing. | :00:31. | :00:38. | |
I'm Sally Bundock, also in the programme: | :00:39. | :00:54. | |
The internet firm Yahoo saw its losses widen to $440 million | :00:55. | :00:56. | |
in the three months to the end of June. | :00:57. | :01:00. | |
This was expected but investors were hoping for an update | :01:01. | :01:02. | |
on the company's plans to sell its core search | :01:03. | :01:04. | |
on that subject Yahoo revealed nothing! | :01:05. | :01:10. | |
Over the years shareholders have had a rollercoaster ride. | :01:11. | :01:12. | |
Yahoo's chief executive, Marissa Mayer, | :01:13. | :01:13. | |
It was hoped that she'd revive the business fortunes. | :01:14. | :01:24. | |
Acquisitions were Mayer's weapon of choice. | :01:25. | :01:26. | |
Since her appointment, Yahoo has bought more | :01:27. | :01:27. | |
Including the micro-blogging website Tumblr. | :01:28. | :01:35. | |
In the two years after she took over Yahoo's share | :01:36. | :01:39. | |
But in 2014, things started to change. | :01:40. | :01:44. | |
The company's share price took a tumble after the Chinese retailing | :01:45. | :01:47. | |
Yahoo owns a massive 15% stake in the business, so when Alibaba's | :01:48. | :01:54. | |
shares began to sink, it took Yahoo down with it. | :01:55. | :01:56. | |
So Yahoo's next plan of action was to sell | :01:57. | :01:59. | |
This move was announced earlier this year with several big tech names | :02:00. | :02:04. | |
But still no news of a concrete offer. | :02:05. | :02:13. | |
With me is Jamie Gavin from inPress online. | :02:14. | :02:19. | |
He can talk us through Yahoo. Nice to see you. It's been a troubled | :02:20. | :02:25. | |
time for this company for a long time and I think there was a lot of | :02:26. | :02:31. | |
excitement when they said they would sell core assets, but no news? No | :02:32. | :02:36. | |
news. I think the figures that were put out were largely in keeping with | :02:37. | :02:39. | |
where analysts thought they would be. I think what has surprised | :02:40. | :02:44. | |
analysts in most quarters is an announcement has not now been made | :02:45. | :02:48. | |
on the sell-off of its core business. We believe Yahoo has been | :02:49. | :02:52. | |
up for sale, it's been up for auction since around February this | :02:53. | :02:56. | |
year with some of the front runners being the likes of AT and Horizon, | :02:57. | :03:00. | |
real old school telecommunications companies. It was expected on the | :03:01. | :03:06. | |
back of this Q2 announcement an announcement would be made on the | :03:07. | :03:09. | |
sale of the core assets but that hasn't happened. For Root two or | :03:10. | :03:15. | |
AT you can understand why they would be interested, Yahoo has 1 | :03:16. | :03:20. | |
billion active users mainly in the United States -- Verizon. There's | :03:21. | :03:29. | |
still a huge audience and it is a profitable business still, looking | :03:30. | :03:34. | |
at it with my media cat on, wherever there's eyes there's hope you can | :03:35. | :03:38. | |
scale that backup. What does that mean for those not familiar with the | :03:39. | :03:46. | |
term -- cap. An audience, an engaged user base. They have Yahoo Sport and | :03:47. | :03:52. | |
Finance, the e-mail business is still in place, people still go into | :03:53. | :03:57. | |
the property and the entities within it. For someone like an old school | :03:58. | :04:00. | |
telecommunications company that looks at the size of the audience | :04:01. | :04:03. | |
and infrastructure, there is still an appeal. In terms of the outlook, | :04:04. | :04:10. | |
if it were to sell its core business, what is left of Yahoo, | :04:11. | :04:16. | |
what would it then do? This is when it becomes more interesting. As | :04:17. | :04:21. | |
we've said it holds that 15% stake in Alibaba, this massive e-commerce | :04:22. | :04:25. | |
business, a stake also in Yahoo Japan. The King at it from a holding | :04:26. | :04:30. | |
company business point of view, things still look rosy -- looking. | :04:31. | :04:34. | |
But when it comes to its core business you wonder how much is left | :04:35. | :04:39. | |
in place. Let's now talk about Netflix. Netflix has come out with | :04:40. | :04:44. | |
its results. Among the news is the fact that the number of subscribers | :04:45. | :04:55. | |
has actually stalled a little bit. Netflix was the darling, the | :04:56. | :04:58. | |
disruptive technology company that everyone watched with great | :04:59. | :05:02. | |
interest. It seems it's asking for too much in terms of price, it's | :05:03. | :05:06. | |
come down to that very basic element. This is the interesting | :05:07. | :05:10. | |
one. Yahoo has been stalling and has been expected to reach this point | :05:11. | :05:14. | |
for a long time now, something like a Netflix is much more of a New Kid | :05:15. | :05:19. | |
on the Block. It was seen by many to be one of the four runners in | :05:20. | :05:24. | |
bridging that gap between old school broadcaster technology with your new | :05:25. | :05:30. | |
school online video play. It is shocking that the shares can tumble | :05:31. | :05:35. | |
like this. I would say it is very content focused, it doesn't have a | :05:36. | :05:39. | |
Facebook or Twitter, that real kind of community engagement and that | :05:40. | :05:44. | |
aspect to its offering. If the popularity of the content goes down | :05:45. | :05:48. | |
or the price of the content goes up then you could be in trouble. It | :05:49. | :05:53. | |
reminds us that for Netflix, although everyone was watching | :05:54. | :05:57. | |
Netflix and talking about the fact it was disrupted for companies like | :05:58. | :06:02. | |
the BBC. A major headache. It shows the competition is really hot. | :06:03. | :06:08. | |
Netflix has got to keep its eye on other players like Amazon Prime. | :06:09. | :06:16. | |
Amazon and Hulu and the BBC is ramping up its iPlayer offering, and | :06:17. | :06:19. | |
who knows what that could look like in two to three years time on a | :06:20. | :06:25. | |
global level. YouTube is evolving its own services allowing for longer | :06:26. | :06:29. | |
videos and promoting the longer content it's got. There will always | :06:30. | :06:34. | |
be competitors and when you go for this old school subscription based | :06:35. | :06:38. | |
model, it is quite an old school media model of asking for a monthly | :06:39. | :06:41. | |
subscription, you're always going out on a limb and looking for a very | :06:42. | :06:47. | |
loyal, retained audience and that can be subject to fluctuation. | :06:48. | :06:52. | |
Difficult in these times to get a loyal, retained audience. Thank you | :06:53. | :06:55. | |
for coming in and appreciate your analysis so early in the morning, he | :06:56. | :07:00. | |
not normally up at this type. Let's continue with other business news. | :07:01. | :07:05. | |
Fiat Chrysler is being investigated by US | :07:06. | :07:06. | |
regulators over the way it reports quarterly and annual results. | :07:07. | :07:09. | |
The company says it records revenues based on shipments to dealers rather | :07:10. | :07:12. | |
Fiat Chrysler recorded a 7% rise in its monthly sales in June, | :07:13. | :07:18. | |
its best result for that month since 2005. | :07:19. | :07:24. | |
Shares in Istanbul closed down more than 7% on Monday | :07:25. | :07:26. | |
following the failed military coup in Turkey on Friday. | :07:27. | :07:28. | |
After a fairly quiet start to trading on Monday, | :07:29. | :07:37. | |
shares slid by nearly 9% cent at one point | :07:38. | :07:39. | |
Markets in the country are due to start trading in | :07:40. | :07:43. | |
That the equity markets we're talking about of course. -- that's. | :07:44. | :07:57. | |
In Japan's Softbank have tumbled 10 in Tokyo -- | :07:58. | :08:04. | |
Let's find out what analysts think. Nice to see you. People not | :08:05. | :08:26. | |
impressed with the decision in Tokyo? Quite disappointed, investors | :08:27. | :08:32. | |
and traders, about Softbank buying our holdings for $32 billion because | :08:33. | :08:37. | |
Sally, Softbank is a highly indebted company and its largest takeover to | :08:38. | :08:50. | |
date piles on additional debt investors and analysts never saw | :08:51. | :08:54. | |
this investment coming. Masayoshi son, the founder of Softbank, has | :08:55. | :09:00. | |
invested $90 billion in assets sales including sales in Alibaba and a | :09:01. | :09:05. | |
software company in Finland but analysts and investors expected | :09:06. | :09:08. | |
Softbank to use this huge pile of cash to reduce its debt load or give | :09:09. | :09:12. | |
shareholders a windfall by buying back its own shares or through | :09:13. | :09:15. | |
dividends, but it wasn't meant to be. It's putting pressure on the | :09:16. | :09:19. | |
stock and it is borrowing money through bridge financing to make | :09:20. | :09:25. | |
this Arm deal happen. We will have to wait and see after investors | :09:26. | :09:28. | |
digests what the synergies of this deal will be if we are going to see | :09:29. | :09:32. | |
the stock back up in a few hours time or by tomorrow. Thanks very | :09:33. | :09:37. | |
much. Nice to see you. Let show you the markets. Japan closed for the | :09:38. | :09:41. | |
day on Monday but it has opened today. Up by 0.6%. Hong Kong and | :09:42. | :09:48. | |
elsewhere we are seeing declines, the price of oil going down, just | :09:49. | :09:54. | |
under $47 a barrel. Let's go to the next board which shows you things | :09:55. | :09:59. | |
ending in the US, up but not significantly. The earnings stories | :10:00. | :10:03. | |
dominating trade on Wall Street. As they come in we will update you. | :10:04. | :10:09. | |
Yahoo and Netflix were the big ones reporting yesterday after the close | :10:10. | :10:13. | |
on Wall Street. That's all from World Business Report. CU soon. | :10:14. | :10:19. | |
A group of MPs has calculated that the annual increase in health | :10:20. | :10:26. | |
spending in England by the end of this parliament will be little | :10:27. | :10:29. | |
more than half the figure claimed by government. | :10:30. | :10:32. |