Filed under: Business, Internet

As expected, eBay has banned sellers from leaving negative or neutral feedback. Earlier this ear the auction site announced plans to change its feedback policy in order to discourage sellers from leaving negative feedback in retribution for negative comments from buyers.

On the one hand, this seems like a reasonable measure to prevent sellers from abusing the feedback system. On the other hand, there really are bad buyers out there. Some people bid on auctions and then back out either because they misread the item descriptions or never had any intention of paying in the first place. And while sellers can request a refund for transaction fees from eBay, they then have to either offer the item to another bidder for a lower price or re-list the item.

It would probably make a lot more sense for eBay to grant sellers to leave negative feedback — but only before buyers leave feedback. That way there’s no way to leave a nasty comment in response to negative feedback. Or perhaps eBay could allow negative feedback only after a reasonable period of time has passed, like 14 days or a month. That way buyers and sellers should have plenty of time to resolve their differences before leaving feedback.

[via Wired]

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Filed under: Deals, Private equity, Citigroup Inc. (C), Clear Channel Commun (CCU)

It is the last large buyout left from 2007, the leveraged deal to take Bell Canada (NYSE: BCE) private. The transaction is worth almost $52 billion. Like several LBOs before it, banks are negotiating to get a better price, or kill the deal.

According to The New York Times, “The negotiations over the Bell Canada buyout began to fray late Friday.” Banks in the deal, including Citigroup (NYSE: C), want higher interest rates and other concessions. The private equity firms trying to close the transaction, which include Providence Equity Partners and Madison Dearborn Partners, might elect to sue the banks to close. The tactic was used in the buyout of Clear Channel (NYSE: CCU). It worked, but the price still ended up lower than the original offer.

Since the banks have no shame in walking away from these deals, in many cases, observers probably hope courts will force closing on the terms that each celebration signed up for. But that is merely a child’s fantasy. BCE trades at just under $39 after hitting $44 last November.

After hard negotiating and a threat of court visits, watch for a deal to get done below $40.

Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.

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Filed under: Business, World wide web, News, Microsoft, Yahoo!

Well, it’s official. The Microsoft/Yahoo! deal that wouldn’t die isn’t dead yet. While Microsoft formally withdrew its buyout offer for Yahoo! a few weeks ago, last night the company issued a statement saying that it still had designs on Yahoo! Whether that means the buyout of just a portion of Yahoo!’s business or some sort of strategic partnership remains unclear.

What is clear is that Yahoo! is listening. The company has issued a statement in response to Microsoft’s statement. (It’s the 21st century of “have your people speak to my people”). In a nutshell, here’s what Yahoo! has to say: Please don’t purchase our whole company, but we’re not opposed to some other sort of a deal, especially one that would get our angry stockholders off our backs.

Translation: We’ve got to do something to get our stock prices back up, and if you can’t offer us something worthwhile, we might have to go ahead and partner with Google instead.

[via Techmeme]

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Filed under: Deals, Microsoft (MSFT), Yahoo! (YHOO)

When I first saw the reports that Microsoft (NASDAQ: MSFT) was looking into the possibility of a non-acquisition deal with Yahoo (NASDAQ: YHOO), my reaction was “What a rip-off!”

What’s currently being discussed would seem to give Microsoft access to the parts of Yahoo that it wants without having to acquire the company. If Yahoo goes through with this, the company would seem to have no bargaining chip left to push for a higher price from Microsoft. As the crude saying goes, why purchase the cow when you can get the milk for free.

A source close to Carl Icahn reportedly states that he sees it much the same way. Reuters quotes the source: “Microsoft is trying to get the milk without buying the cow, and if you look at Icahn’s history, he has never been used that way. He does not want to see Yahoo pushed into some joint venture with Microsoft and isn’t going to be used to push Yahoo into it.”

If Yahoo thinks some sort of joint venture will appease Icahn, it’s got another think coming. But then again, Icahn is famously unpredictable. As Steve Miller wrote about him “In face-to-face meetings he gave everyone whiplash. One moment he’d bellow, ‘That’s the stupidest goddamn thing I ever heard heard,’ and the next he’d put his arm around you.”

The Yahoo/Microsoft battle was interesting. The addition of Carl Icahn to the chamber pot could make it classic.

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Filed under: Deals, Microsoft (MSFT), Yahoo! (YHOO)

When I first saw the reports that Microsoft (NASDAQ: MSFT) was looking into the possibility of a non-acquisition deal with Yahoo (NASDAQ: YHOO), my reaction was “What a rip-off!”

What’s currently being discussed would seem to give Microsoft access to the parts of Yahoo that it wants without having to acquire the company. If Yahoo goes through with this, the company would seem to have no bargaining chip left to push for a higher price from Microsoft. As the crude saying goes, why buy the cow when you can get the milk for free.

A source close to Carl Icahn reportedly says that he sees it much the same way. Reuters quotes the source: “Microsoft is trying to get the milk without buying the cow, and if you look at Icahn’s history, he has never been used that way. He does not want to see Yahoo pushed into some joint venture with Microsoft and isn’t going to be used to push Yahoo into it.”

If Yahoo thinks some sort of joint venture will appease Icahn, it’s got another think coming. But then again, Icahn is famously unpredictable. As Steve Miller wrote about him “In face-to-face meetings he gave everyone whiplash. One moment he’d bellow, ‘That’s the stupidest goddamn thing I ever heard heard,’ and the next he’d put his arm around you.”

The Yahoo/Microsoft battle was interesting. The addition of Carl Icahn to the chamber pot could make it classic.

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Filed under: Before the bell, Analyst reports, Analyst upgrades and downgrades, Deals, Google (GOOG), Apple Inc (AAPL), Intel (INTC), General Motors (GM), Berkshire Hathaway (BRK.A), Employees, Comcast Cl’A’ (CMCSA), ConocoPhillips (COP), Goldman Sachs Group (GS), Morgan Stanley (MS), Time Warner Cable (TWC), Lehman Br Holdings (LEH)

Before the bell: Stock futures blended as Microsoft resumes speaks with Yahoo

The New York Times Bits blog says that according to several label executives, Apple Inc. (NASDAQ: AAPL) has approached some of the major music labels to try to expand the variety of ringtones and other musical features for the iPhone. The negotiations are very active right now and a final deal has not been set, but will likely be during the summer, but after June 9. Ringtones are quite a profitable market, and Apple wanting to have ringtones from major label makes total sense. Apple also wants to offer Answer Tones for the iPhone.

Intel Corp (NASDAQ: INTC) said Monday its venture capital arm has invested 50 million ringgit ($16 million) in Malaysia’s Green Packet Berhad to help develop the country’s first nationwide high-speed WiMAX network. Already earlier this month, Intel Capital along with Google Inc (NASDAQ: GOOG), Comcast Corp (NASDAQ: CMCSA), Time Warner Cable Inc (NYSE: TWC), and Bright House Networks agreed to invest $3.2 billion into a new company to speed up deployment of the next-generation mobile WiMAX network. But that’s not all. Intel Capital also expects to close half a dozen deals in India this year, its regional head stated on Monday.

Warren Buffett is apparently on the prowl for another acquisition. The Oracle of Omaha has begun his European tour Monday, looking for possible acquisitions for his Berkshire Hathaway Inc. (NYSE: BRK.A).

General Motors Corp. (NYSE: GM) shares are up over 1% after a tentative accord was reached Might 16 with the United Auto Workers. American Axle & Manufacturing Holdings Inc. (NYSE: AXL) workers start voting Monday on a proposed contract that also calls for wage cuts and buyouts at five American Axle plants in New York and Michigan. This could end the 83-day strike that has slowed output at GM, the partsmaker’s biggest customer.
State-run Saudi Arabian Oil Co., or Saudi Aramco, and ConocoPhillips (NYSE: COP) said Friday they’ve approved continued funding for the development of a refinery that will process 400,000 barrel-per-day of crude supplied by Saudi Aramco in Saudi Arabia’s Red Sea city of Yanbu.

Citigroup slashed its earnings outlook for Goldman Sachs Group Inc (NYSE: GS), Morgan Stanley (NYSE: MS) and Lehman Brothers Holdings Inc (NYSE: LEH), which also Friday announced it is cutting 5%, or 1,400 people, of its staff. Citi said tough operating environment will be the culprit of lower earnings and the analyst anticipates significant asset sales.

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Filed under: Before the bell, Analyst reports, Analyst upgrades and downgrades, Deals, Google (GOOG), Apple Inc (AAPL), Intel (INTC), General Motors (GM), Berkshire Hathaway (BRK.A), Employees, Comcast Cl’A’ (CMCSA), ConocoPhillips (COP), Goldman Sachs Group (GS), Morgan Stanley (MS), Time Warner Cable (TWC), Lehman Br Holdings (LEH)

Before the bell: Stock futures mixed as Microsoft resumes talks with Yahoo

The New York Times Bits blog states that according to several label executives, Apple Inc. (NASDAQ: AAPL) has approached some of the major music labels to try to expand the variety of ringtones and other musical features for the iPhone. The negotiations are very active right now and a final deal has not been set, but will likely be during the summer, but after June 9. Ringtones are quite a profitable market, and Apple wanting to have ringtones from major label makes total sense. Apple also wants to offer Answer Tones for the iPhone.

Intel Corp (NASDAQ: INTC) said Monday its venture capital arm has invested 50 million ringgit ($16 million) in Malaysia’s Green Packet Berhad to help develop the country’s first nationwide high-speed WiMAX network. Already earlier this month, Intel Capital along with Google Inc (NASDAQ: GOOG), Comcast Corp (NASDAQ: CMCSA), Time Warner Cable Inc (NYSE: TWC), and Bright House Networks agreed to invest $3.2 billion into a new company to speed up deployment of the next-generation mobile WiMAX network. But that’s not all. Intel Capital also expects to close half a dozen deals in India this year, its regional head stated on Monday.

Warren Buffett is apparently on the prowl for another acquisition. The Oracle of Omaha has begun his European tour Monday, looking for possible acquisitions for his Berkshire Hathaway Inc. (NYSE: BRK.A).

General Motors Corp. (NYSE: GM) shares are up over 1% after a tentative accord was reached May 16 with the United Auto Workers. American Axle & Manufacturing Holdings Inc. (NYSE: AXL) workers start voting Monday on a proposed contract that also calls for wage cuts and buyouts at five American Axle plants in New York and Michigan. This could end the 83-day strike that has slowed output at GM, the partsmaker’s biggest customer.
State-run Saudi Arabian Oil Co., or Saudi Aramco, and ConocoPhillips (NYSE: COP) said Friday they’ve approved continued funding for the development of a refinery that’ll process 400,000 barrel-per-day of crude supplied by Saudi Aramco in Saudi Arabia’s Red Sea city of Yanbu.

Citigroup slashed its earnings outlook for Goldman Sachs Group Inc (NYSE: GS), Morgan Stanley (NYSE: MS) and Lehman Brothers Holdings Inc (NYSE: LEH), which also Friday announced it is slicing 5%, or 1,400 people, of its staff. Citi stated tough operating environment will be the culprit of lower earnings and the analyst anticipates significant asset sales.

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Filed under: Before the bell, Earnings reports, Deals, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Market matters, Lowe’s Cos (LOW), Electronic Arts (ERTS), Economic data, Housing

Stock futures were mixed early Friday morning with the Nasdaq futures higher, given a boost by a new deal being discussed between Microsoft and Yahoo! Blue chip stock futures were lower after a new forecast the economy will weaken further and unemployment will rise.

U.S. stocks ended Friday tiny changed after consumer confidence data disappointed Wall Street again and high oil prices dampened the mood. For the week, though all the major indexes posted gains. The Dow industrials rose 1.9% for the week despite being down 0.05% Friday, the S&P 500 rose 2.7% for the week, helped by a 0.13% rise Friday, and the Nasdaq Composite climbed 3.4%, including a 0.19% decline Friday.

At 10:00 a.m. EDT, April leading indicators, a lagging broad, general, indicator of economic activity, is expected to show minimal increase.
However, a survey was released Monday by the National Association for Business Economics giving their collective outlook on the U.S. economy. While, according to the survey economists believe the worst of the housing slump and the credit crunch might come to an end this year, a majority of economists now believe the economy is in a recession or on the brink of a recession and therefore they forecast further weakening of the economy and unemployment to continue to rise.

Once again this morning investors’ attention will turn to Microsoft Corp. (NASDAQ: MSFT) and Yahoo! Inc. (NASDAQ: YHOO) as the former is once again trying to team up with the latter to challenge World wide web search and advertising leader Google Inc. (NASDAQ: GOOG). While the companies haven’t disclosed any specifics, it appears that at this point the renewed speaks haven’t don’t include another attempt to take over Yahoo. YHOO shares are up marginally in premarket trading.

Still in deal news, the Wall Street Journal reported that after failing to get the support of a majority of the company’s shareholders for a deal and after the previous deadline has expired Friday, Electronic Arts (NASDAQ: ERTS) is apt to again extend the deadline for its hostile tender offer to acquire Take-Two Interactive Software (NASDAQ: TTWO).

Lowe’s Companies Inc. (NYSE: LOW) shares are down over 3% in premarket trading after the home improvement retailer said its profit fell 17.9% and sales fell 8.4% as it faces a challenging sales environment amid a national housing slump. Lowe’s 41 cents earnings per share is actually about the 40 cents estimated by analysts.

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Filed under: Before the bell, Earnings reports, Deals, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Market matters, Lowe’s Cos (LOW), Electronic Arts (ERTS), Economic data, Housing

Stock futures were blended early Friday morning with the Nasdaq futures higher, given a boost by a new deal being discussed between Microsoft and Yahoo! Blue chip stock futures were lower after a new forecast the economy will weaken further and unemployment will rise.

U.S. stocks ended Friday little changed after consumer confidence data disappointed Wall Street again and high oil prices dampened the mood. For the week, though all the major indexes posted gains. The Dow industrials rose 1.9% for the week despite being down 0.05% Friday, the S&P 500 rose 2.7% for the week, helped by a 0.13% rise Friday, and the Nasdaq Composite climbed 3.4%, including a 0.19% decline Friday.

At 10:00 a.m. EDT, April leading indicators, a lagging broad, general, indicator of economic activity, is expected to show minimal increase.
However, a survey was released Monday by the National Association for Business Economics giving their collective outlook on the U.S. economy. While, according to the survey economists believe the worst of the housing slump and the credit crunch might come to an end this year, a majority of economists now believe the economy is in a recession or on the brink of a recession and therefore they forecast further weakening of the economy and unemployment to continue to rise.

Once again this morning investors’ attention will turn to Microsoft Corp. (NASDAQ: MSFT) and Yahoo! Inc. (NASDAQ: YHOO) as the former is once again trying to team up with the latter to challenge Internet search and advertising leader Google Inc. (NASDAQ: GOOG). While the companies haven’t disclosed any specifics, it appears that at this point the renewed speaks haven’t don’t include another attempt to take over Yahoo. YHOO shares are up marginally in premarket trading.

Still in deal news, the Wall Street Journal reported that after failing to get the support of a majority of the company’s shareholders for a deal and after the previous deadline has expired Friday, Electronic Arts (NASDAQ: ERTS) is likely to again extend the deadline for its hostile tender offer to acquire Take-Two Interactive Software (NASDAQ: TTWO).

Lowe’s Companies Inc. (NYSE: LOW) shares are down over 3% in premarket trading after the home improvement retailer said its profit fell 17.9% and sales fell 8.4% as it faces a challenging sales environment amid a national housing slump. Lowe’s 41 cents earnings per share is actually about the 40 cents estimated by analysts.

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Filed under: Deals, Industry, Electronic Arts (ERTS)

Take-Two Interactive (NASDAQ:TTWO) has launched its important new “Grand Theft Auto IV” franchise and it’s has done remarkably well. It did not cause a large bump in the firm’s stock which has only moved from $26.62 three weeks ago to $27.10.

The company’s one suitor, Electronic Arts (NASDAQ:ERTS), had already taken the shares up from from under $18 with its buyout offer. Most analysts believe that the offer will be extended because Take-Two has resisted a buyout

According to The Wall Street Journal, that there is a “belief among Take-Two management and some of the company’s shareholders that the company deserves a higher offer from EA. “

No matter what Take-Two believes, EA’s ideal move now is probably not to extend the offer, but, instead, to walk away. The Take-Two share price would be very likely to move back below $20, which would pressure the company’s board to do something to move the share price back up again.

EA’s shareholders are ill-served if the company extends its offer. Without a buyer, Take-Two might have to come to the negotiating table and Electronic Arts could get a better deal.

Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.

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