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Valley Buzz: More Layoffs at Yahoo, More on the Skype IPO, More Pain for Newspapers and More Good News for Amazon

Posted Apr 15, 2009 01:27pm EDT by Sarah Lacy in Investing, Internet, Media, Recession, Valley Buzz

More speculation surrounding TechTicker’s parent company, Yahoo. The New York Times reports that Yahoo may announce more layoffs as soon as Tuesday, when the company reports 1Q results. Kara Swisher expects it to be some 500 people or more. In classic public company style, Yahoo will announce the cuts now but not notify impacted employees until June. Soak up all the TechTicker you can until then, just in case!

More on that Skype IPO: JP Morgan analyst Imran Khan says a Skype IPO could be worth as much as $3.1 billion, based on Skype's estimated 2010 net revenue of $740 million. That's no doubt good news for eBay, which gets roundly criticized for paying $2.6 billion in 2005, later writing that down to $1.7 billion. It would also likely put the purchase price squarely out of the range of a lot of suitors, including Skype's founders.

We all know newspapers are in bad shape. It seems the New York Times is even starting to get it. The paper reports that papers suffered the largest drop in revenue in the first quarter since the great depression; 30% for some papers. "It is clear once again, even the most pessimistic predictions were not dark enough," the paper wrote. The expectation is the drop finally pushes many titles into the black and into bankruptcy. This puts last week's bizarre strong-arming from The Associated Press in context, but also clearly weakens any negotiating leverage on the part of old media.

Amazon.com meanwhile is gobbling up market share. RBC Capital analyst Stephen Ju says that Amazon could be facilitating close to one-third of all ecommerce in the U.S., and gaining. The most striking thing is how much of that comes from small mom-and-pop third parties. You know, the kind of business eBay used to dominate?

21 Comments

DON P
DON P - Wednesday April 15, 2009 01:35PM EDT

KISS - keep it simple stupid, yahoo can't provide an email system that dosen't fail (sorry try back later) on a daily basis. There is a positive to this, I go on break! Yahoo better get the simple basics under wraps.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 15, 2009 01:36PM EDT

koo

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 15, 2009 01:45PM EDT

To eat bread without hope is still slowly to starve to death---Pearl Buck

Reedersong
Reedersong - Wednesday April 15, 2009 02:13PM EDT

Hallmark is laying off too, also Intel says PC sales have bottomed out. Furthermore, States have a new revenue issue of decreased sales tax. Consumer spending is 2/3rds of the economy, not Gov't spending or Banker's Creative Financial Reports.

shags1_23
shags1_23 - Wednesday April 15, 2009 02:17PM EDT

I wonder which one of the Tech Tickers will get canned? I hope it's not Sarah, even though she seems to get stuck with the fluff pieces. No offense Sarah, but the tax debacle, insolvent banks, and outright chaos of our present situation seems to outweigh traditional tech news. But I loved your series on the Tesla model S. I want one.

Reedersong
Reedersong - Wednesday April 15, 2009 02:32PM EDT

I agree with shags1, at 49,900 the Sedan is faster than a Corvette and priced about the same....Did I mention it's quieter too?

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 15, 2009 02:48PM EDT

Layoffs - surprise surprise surprise. Carol is going to do more than 500. Those numbers are always vague. Yahoo said they fired 2400 last year, but the math does not add up. If they had 14300 employees at peak (their numbers), and now have 13600... Okay, new math where 700 now equals 2400; or perhaps like pre-civil war where slaves were counted in the census as 1/5 a person :) So here is a question for Sarah to follow up on: Is that 500 plus 2400 minus 14300 equal to 11400, or is that 13600 minus 500 + yahoo new math equal to maybe 13500 or higher? I am really confused, and think this is just a PR numbers game to show Wall Street something which is nothing (and that is the new Wall Street math as of the last several years, hence our overall economic predicament currently.)

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 15, 2009 02:50PM EDT

Layoffs - surprise! surprise! surprise! Carol is going to do more than 500. Those numbers are always vague. Yahoo said they fired 2400 last year, but the math does not add up. If they had 14300 employees at peak (their numbers), and now have 13600... Okay, new math where 700 now equals 2400; or perhaps like pre-civil war where slaves were counted in the census as 1/5 a person :) So here is a question for Sarah to follow up on: Is that 500 plus 2400 minus 14300 equal to 11400, or is that 13600 minus 500 + yahoo new math equal to maybe 13500 or higher? I am really confused, and think this is just a PR numbers game to show Wall Street something which is nothing (and that is the new Wall Street math as of the last several years, hence our overall economic predicament currently.)

hunterta
hunterta - Wednesday April 15, 2009 02:51PM EDT

Maybe Henry an Aaron will get laid (off)!! That would be poetic.

Harish
Harish - Wednesday April 15, 2009 02:59PM EDT

Ebay needs to rethink what they want to be. They are jacking up their fees left, right and center and not taking any risks that are associated with transaction. This will not work in long run. No risk no rewards remember?.. It's true and will come back to haunt Ebay.

shags1_23
shags1_23 - Wednesday April 15, 2009 03:07PM EDT

reedersong - Wednesday April 15, 2009 02:32PM EDT "I agree with shags1, at 49,900 the Sedan is faster than a Corvette and priced about the same....Did I mention it's quieter too?" ================================================ And a lot of people overlook the fact that for the extra money spent on the car saves money on oil changes, air filter changes, emissions testing, the myriad of tiny parts that can break in a combustion engine (the electric motor only has one moving part, and the electric motor is rated to run for over 100,000 hours, continuously), and fuel. You can drive 300 miles on $6 worth of electricity; 300 miles would presently cost me about $30, but I live in a state where the price of gas is below the national average. Also, electricity isn't prone to wild fluctuations in price. So, really the S is much cheaper than a comparatively sized "traditional" sedan. Man, I really, really want one!

donfurio
donfurio - Wednesday April 15, 2009 04:02PM EDT

Can you please "lay off" the Socialist short sellers, Blodget and Task.

Heroine Worshipper
Heroine Worshipper - Wednesday April 15, 2009 06:51PM EDT

At least Jerry Wang didn't have to take that lousy $50 billion offer.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 15, 2009 09:58PM EDT

Who cares anyways most of the people who work in are Silicon valley are H1B visa worker from India.

Brian
Brian - Wednesday April 15, 2009 10:44PM EDT

"in the black and into bankruptcy"? Do you mean "into the red?"

test
test - Thursday April 16, 2009 05:57AM EDT

Yahoo requires administration of euthanasia, instead of the slow and painful demise, in installments, as being imposed currently by its CEO and Board.

test
test - Thursday April 16, 2009 05:57AM EDT

Yahoo requires administration of euthanasia, instead of the slow and painful demise, in installments, as being imposed currently by its CEO and Board.

RossH
RossH - Thursday April 16, 2009 09:10AM EDT

I was laid off ten months ago from Circuit City. A few of my colleagues decided to go into a new business: selling guns to women. So far we have made a profit of over $375,000.00 through a mail-order and online combination in firearms. There is always a market for guns: Ohio has concealed and carry permits now, so we have really done well in that state,along with five other states.

Yahoo! Finance User
Yahoo! Finance User - Thursday April 16, 2009 01:10PM EDT

I think Tuesday is D-day for a lot of companies that have been holding back on layoffs.

Don
Don - Friday April 17, 2009 10:54AM EDT

WHATS WRONG WITH THIS ARTILCE and types alike "The expectation is the drop finally pushes many titles into the black and into bankruptcy" Wrong,wrongo, wrongster. This quote just shows the lack of professionalism and integrity. Into the BLACK is GOOD you moran whoever wrote this should be moved to a different department. Companies like the Times will always be needed just so people can have a reliable source or accurate, professional, and intriguing content unlike this article.

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