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Valley Buzz: Good News for Google Employees, eBay and IBM Shareholders, and Apple Fans Who Are Looking for Something to Watch Tonight

Posted Mar 09, 2009 04:33pm EDT by Sarah Lacy in Internet, Media, Software and Services, Telecom

Let’s call this issue of Valley Buzz the comparatively good news edition. First up, news for Google employees: As of this morning at 6 a.m. the offering period to exchange any options that were priced higher than $308.57, the stock’s closing price on Friday, expired. The re-pricing program started on February 3, and the company says it will help Google retain top employees. You know, those ones who haven’t already gone to Facebook or retired on an island. But not all investors are so happy about the move. Trip Chowdhry of Global Equities Research, published a note on Friday warning investors that Google was “manipulating” the stock price to give employees a better deal.

For more a more sanguine view on Google, check out chief executive Eric Schmidt on The Charlie Rose Show, which might as well relocate to Silicon Valley to better accommodate its recent stream of guests like Marc Andreessen, Marisa Mayer, Evan Williams of Twitter and other valley luminaries. On the show, Schmidt talked up the role of mobile in Google’s future. He might want to read last Friday’s Valley Buzz...

On Wednesday, eBay is holding its annual shareholder meeting and Peter Burrows of BusinessWeek says the company is planning to share more details about its business than it has in years. Burrows says eBay CEO John Donohoe will especially talk up big plans for PayPal, the online payments company eBay scooped up for a steal, but did little to develop in ensuing years. Donohoe has said before PayPal could be bigger than eBay one day.

But Eric Savitz of Barrons points out that investors will be a tough crowd. Right now, they value eBay at just seven times 2009’s expected results. He cites some analysts’ top priorities to boost the company's stock, and number one is boost the value of PayPal through a strategic partnership with Google. It seems Donohoe isn’t the only one who sees unrealized value in the property. Also, everyone will be on the listen for any hints about what eBay plans to do with Skype, another acquisition with huge potential, but one that's never quite fit with the company.

That brings us to IBM, a company that’s downright rosy today. The New York Times wrote about chief executive, Sam Palmisano’s annual report, which went to shareholders today and trumpeted that “We will simply not ride out the storm. Rather, we will take a long-term view, and go on offense.” Such offense includes being the vendor of choice as countries and large corporations make investments in things like infrastructure projects, electrical grids, telecommunications and health care information systems. Will shareholders be as convinced? Leave us your thoughts in the comments.

And last in our feel-good edition of Valley Buzz today, Apple co-founder Steve “Woz” Wozniak will make his debut on Dancing with the Stars tonight. He told Wired that he was physically shaking the day he met his dance partner and expects statistically popular support (read: Apple fan boys) will get him through the first round. Woz, like many tech geniuses, was quite the mischievous hacker in his youth. No doubt a young Woz is working on hacking his results as we speak and as Woz warms up.

23 Comments

Bert
Bert - Monday March 09, 2009 04:52PM EDT

We the people of the United States need to revolt against out government. The are taking us for granted. We all should be tired of this. Like psiceobill had said, all open your ears and learn. Listen to what is being done to us and our children. All that is happening in our country will effect all of us. They are playing us as fools and that is very un-cool. It is our lives that they are playing with yet most of you will not listen. We the people need to pay more attention and now.

WilliamP
WilliamP - Monday March 09, 2009 05:09PM EDT

psiceobill: "America has become the land of the fools and the home of the whiners." Well 'psiceobill', thank goodness we still have 'real Americans' like yourself to save us. By all means lets deep six that pesky federal reserve and get back to the good old days of Andrew Jackson. And while you are at it, maybe you could invoke some more of your early 19th century medicine to rid us of those "ignorant welfare-cases". Maybe just ship 'em off to the third world countries where they belong, huh?

cetinh
cetinh - Monday March 09, 2009 05:27PM EDT

. yay woo hooo more web 2.0 bubble talk. need mroe eyeballs. yay more pageviews. nevermind the deepest recession ever. i love bubble.s i love hype

Ginger
Ginger - Monday March 09, 2009 05:30PM EDT

Donahue messed up Ebay and is now starting to mess with Paypal. I wonder how low he can bring Paypal.

Yahoo! Finance User
Yahoo! Finance User - Monday March 09, 2009 05:31PM EDT

Google average earn $95K http://www.salarylist.com/all-real-jobs-salary-at-google-inc.htm How they care the options that much when people are losing jobs?

ezshooter
ezshooter - Monday March 09, 2009 05:39PM EDT

pciseobill--For you and the rest of your ilk who pine for the good old days, please understand, that while it lived, the past was once an unsure present, as frightening and dangerous as we live today. Life expectancy was about 40 years old; people drank enormous amounts of alcohol because they lived in daily pain. I think Jackson is our only president to have shot to death a person or two before taking office.

Yahoo! Finance User
Yahoo! Finance User - Monday March 09, 2009 05:58PM EDT

why jackson? let's go back a little more... lets go back 300 years and guess what? oh there will be native people running around with no western immigrants who killed them n created a country... duh!!!!! foolish people and their foolish ideas of going back in good ol'time

Yahoo! Finance User
Yahoo! Finance User - Monday March 09, 2009 05:59PM EDT

Ezshooter.... dont forget Grant and Eisenhower.

GlenW
GlenW - Monday March 09, 2009 06:39PM EDT

Don't forget the Lincolns and Grants and Benjamins.......

Yahoo! Finance User
Yahoo! Finance User - Monday March 09, 2009 08:10PM EDT

Hey... how about Washington? I'm sure Georgie popped a few Red Coats. And JFK? Maybe he torpedoed a few boats.

David in Richmond
David in Richmond - Monday March 09, 2009 09:58PM EDT

Can you see "Dancing..." online? And.. what's EBay's competition? Yahoo Finance says Google, Yahoo, & Amazon, but I think only Craigslist comes close. Maybe they'd be more inventive if there was an "FBay and a "GBay", etc.

andruw
andruw - Monday March 09, 2009 10:05PM EDT

As the idea of bottom line economics and no regulation has shown how easy are politicians and the $ has made a few very wealthy.Some one need to be go to Jail for destrying are foundation of are economie.

heber
heber - Monday March 09, 2009 11:18PM EDT

what?

Yahoo! Finance User
Yahoo! Finance User - Tuesday March 10, 2009 12:16AM EDT

For the psciobills of the world and the like. There are issues inherent in the federal reserve and fractional banking systems that we have had forever. Gold is not the answer either as most of you out there tend to posit. Unfortunately, the mandrake mechanism that we run on on now does have cyles of boom and bust. Ironically, hardly anybody complains during the boom periods but there are lots of complainsts during bust cycles. Whats happening now cannot be fixed by running on a gold standard or necessarily abolishing the federal reserve. The are clearly pros and cons to maintaining a federal reserve system but it does not begin to adress the myriad of issues we are faced with as a country now. The federal reserve has little to no effect on the counterparties like CDOs' and credit swaps and enormous derivatives created in this last economic cycle. The federal reserve didn't directly cause the overbuilding capacity that our country faces now out of 100million households attempting to occupy 130 million housing units. Thats an over capacity of 30million housing units. If the builders cannot figure this out in a free capilist society, who do we expect to figure it out for us... the govt? ha. Look, guys a lot of the hackneyed arguments of the past with respect to lower taxes, trickle down economics, ignoring the errant healthcare system to run itself , going back to the good ole past, the welfare mothers or the immigrant with a penchant for fleecing the system or abolishing the federal reserve has some relevance here or there. However they are non sequiter ideas in relation to the issues of our modern times. Look we have much more fundamental issues of our day to tackle with like energy. We have failed woefully to have a national energy plan. Some would suggest renewables are the way to go or Nuclear power or whatever.The truth is we just have never dealt with that. Putting us on the Gold standard is simply not going to change our enormous vulnerabilty on this issue. And Neither will abolishing the federal reserve right the negative equation that will continue to arise from so many emerging and developed countries competing for the same resources (including and not including energy) whatever they be. We seem to be mired in using old largely irrelevant economic doctrines or theories to deal with much more varied set of contempraneous problems facing the globe and America in particular. In order to begin the unscrambling process we as a people will have to start thinking and looking at the facts and begone with the current demogoguery of dropping terms like socialism, Communism or the death of capitalism or going backt to the Jackson era when the states were literally printing their own money in some cases. We need to create a longer term plan for our country that is not just based on what happens in the next 4 years or 8yrs but 25 or 50 yr plans that not only take into account what happens to us in America , but also how we can symbiotically share the planet with others that have clearly the same desires to attain higher levels of wealth for their nations as well. This does not mean we become socialists or pollyanna. But as we clearly look to attain our fast held goals we need to game theorize into the plans the potential that for example; the folks in the middle east or china with young populations will get more desperate for resources as their timeline winnows down to middling age. We can then avoid surprises like undeclared warfare. We can also elect to lumber on as an empire but we must be prepared if it is the unyielding path we choose to exhaust our resources eventually over many generations. we may experience then fractious spoils of empire like Rome or Britain has heretofore experienced. I ahve to stop for now but If you want to comment on this you may refer to me as the Obi in your comment in order that I may answer your question or concern. Thank you for listening.

Yahoo! Finance User
Yahoo! Finance User - Tuesday March 10, 2009 03:24AM EDT

Ebay sucks! They have ruined what was a great online marketplace with their greed. Their fees have gotten out of hand and I cannot wait to see this ship blow up and sink! I have found a better site to use, onlineauction.com, they only charge a monthly or yearly base fee and you can list as many items as you want with NO FEES! Just so you know, I do not work for them and I just want to let others know so they will not get raped by ebay anymore. Please tell everyone you know to use this site instead of ebay so that ebay users can finally get one up on these greedy jerks!

Yahoo! Finance User
Yahoo! Finance User - Tuesday March 10, 2009 03:33AM EDT

One last thing on ebay. They have screwed the sellers with their idiotic Seller ratings. You have to keep an almost 5 star rating to sell and this is based upon opinion such as shipping time. How can a seller control the transit time by the post office or their prices? Than this insane talk of Meg Whitman running for office, that is like having the fox build the hen house. After what Meg Whitman did to ebay, she should get a rope from a tree! Ebay and all of it's minions can go to hell, oh sorry I forgot that is where they came from.

Yahoo! Finance User
Yahoo! Finance User - Tuesday March 10, 2009 03:50AM EDT

Have you ever noticed that any site that is made to criticize ebay becomes dormant or disappears? I don't know how long this site will last, but check out ebay sucks.com and read some disgusting truth about ebay. They are trying to manipulate their stock prices to a low level so that they can buy them back. Where is the SEC when you need them? Oh, thats right it took them 10 years to do something about Bernie Madoff. Well, as Don Henley said in one of his songs, A man with a briefcase can steal more money from you than a man with a gun. If that isn't the truth!

EA
EA - Tuesday March 10, 2009 06:52AM EDT

Google knows where it is at. They better keep their employees happy. To the sucker investor the more they dilute your shares the more they can pay their employees to go after other people's ideas. Not bad paid more to do less. PayPal is going to have a problem going with Google. Google cannot support their own ad space, therefore, PayPal won 't have to worry about anybody using that option. Also this is not the time for Google to go into other fields. It's not economically viable. They also don't have the personnel outside of PayPal's to handle PayPal and in that process they will pull PayPal down. Way to go PayPal.

Keith
Keith - Tuesday March 10, 2009 11:43AM EDT

IBM is getting it right again. Palmisano is repeating the same game plan that T. Watson Sr. used to take IBM through the Great Depression of the 30's. Build the right technology and partner with the government (the one with deep pockets). Watson Sr. had the information processing equipment on the self and the connections to get the contracts to supply the SSA when the Social Securities Act was passed and the Governement needed to serve people by SSN. Not everyone forgets history

Yahoo! Finance User
Yahoo! Finance User - Tuesday March 10, 2009 08:03PM EDT

IBM is on their game. They have the resources to not only survive but become the powerhouse they once were. They have the presence in every country to take an ailing economy everywhere and make money from it. And I applaud their ability to keep the jobs cuts down to a minimum. Critics out there say their being quiet about their recent cuts of sub 3k people. That's nothing in a company of over 300k. That's standard annual cleanup. So I say go IBM. An American made company that can make more money and create more jobs both here and everywhere by reaping the rewards of their prowess and patenets.

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