As Yahoo’s struggles continue, the company is looking to cut costs and dig up cash wherever it can. Yahoo announced plans last month to lay off 2,000 workers, or nearly 15% of its staff, and before that it filed a “puzzling” patent lawsuit against long-time partner Facebook. Now, Yahoo will sell half of its 40% stake in China-based retail giant Alibaba. Led by Chinese Internet entrepreneur Jack Ma, Alibaba will repurchase part of Yahoo’s holdings in the e-commerce firm for $7.1 billion as it prepares to take the company public. The deal, which was announced in a joint statement on Monday, will see Yahoo sell half its stake in Alibaba for $6.3 billion in cash and as much as $800 million in new preferred stock. Yahoo purchased its 40% stake in Alibaba in 2005 for $1 billion.

Microsoft has hired 14 Yahoo researchers for its brand new New York research lab, AllThingsD reported. The hires come after Yahoo made significant layoffs last month to its research and development unit. According to Jennifer Chayes, who manages Microsoft Research in New England and New York, the researchers were’t hired as a package deal. “I don’t feel like we hired a group; I feel like we hired 15 amazing individuals, some of which became available because there were some problems at Yahoo,” she said. The software giant has an extensive research division that includes some 850 Ph.Ds, and the New York City lab will be the company’s 13th global office.

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Yahoo on Wednesday confirmed plans to lay off more than 2,000 employees as part of new cost-cutting efforts. The Internet giant currently employs approximately 14,000 full-time workers and several thousand more contractors. The workforce reductions will be spread across a number of units within Yahoo including its product division, local business unit, marketing division and research and development division. “Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require. We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose — putting our users and advertisers first — and we are moving aggressively to achieve that goal,” said Scott Thompson, CEO of Yahoo!. “Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo!.” Yahoo plans further cuts in the coming months, and the company’s full statement on the layoffs follows below.

Yahoo! Statement

SUNNYVALE, Calif. — (BUSINESS WIRE) — Yahoo! today confirmed that it is taking important next steps to reshape the company for the future.

“Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require. We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose — putting our users and advertisers first — and we are moving aggressively to achieve that goal,” said Scott Thompson, CEO of Yahoo!. “Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo!.”

Yahoo! has a solid foundation — nearly 700 million users and thousands of advertisers that engage with Yahoo! properties regularly and trust the company with their data and their business. Through its restructuring efforts, Yahoo! intends to grow by responding more quickly to customer needs and competing more effectively in areas where it can win. Yahoo! has identified key parts of the business — a select group of core businesses, the platforms that support those core businesses, and the data that drives deep personalization for users and ROI for advertisers — where the company will intensify efforts and redeploy resources globally, all focused on increasing shareholder value. With a clear focus on profitability and growth, the company will be disciplined in its investments and radically simplify how it builds, launches and maintains many of its properties and products.

Today, the company will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or phased transition.

Yahoo! expects to realize approximately $375 million of annualized savings upon completion of all employee transitions. The company currently expects to recognize the majority of an estimated $125 to $145 million pretax cash charge relating to employee severance in its second quarter financial results. The company may incur additional charges in connection with this action. More information will be provided about Yahoo!’s future direction in conjunction with the release of its first quarter financial results on April 17, 2012.

Yahoo filed a massive patent infringement lawsuit against Facebook last month, claiming that Facebook’s News Feed, advertising methods, privacy settings and more infringed on its intellectual property. Facebook on Tuesday fired back at Yahoo with a countersuit, accusing the company of infringing upon 10 of its patents. Among its claims, the social networking giant says Yahoo’s Flickr photostream and its recent activity feature infringe a Facebook patent related to generating a personalized feed of stories on a social network. ”While we are asserting patent claims of our own, we do so in response to Yahoo’s short-sighted decision to attack one of its partners and prioritize litigation over innovation,” Facebook general counsel Ted Ullyot said in a statement to Reuters. Facebook, the world’s largest social networking site, is in the process of its initial public offering that is expected to raise as much as $10 billion.

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Yahoo has filed a massive patent infringement lawsuit against its business partner, Facebook, AllThingsD reported on Monday. The search company claims that Facebook’s News Feed, advertising methods, privacy settings and more infringe its patents. “Facebook’s entire social network model, which allows users to create profiles for and connect with, among other things, persons and businesses, is based on Yahoo’s patented social networking technology,” Yahoo’s lawsuit said. The company claims that Facebook has been “free riding” on Yahoo’s intellectual property and royalty payments alone will not be enough. Read on for more.

Yahoo’s 19-page lawsuit covering 10 patents could not come at a worse time for Facebook, as the company moves closer to its IPO, which is expected to reach close to $100 billion. Interestingly enough, Yahoo pulled a similar stunt with Google before the search giants IPO in 2004.

The social networking giant released a statement disagreeing with the Yahoo lawsuit and called it puzzling. “We’re disappointed that Yahoo, a longtime business partner of Facebook and a company that has substantially benefited from its association with Facebook, has decided to resort to litigation,” the statement read. “Once again, we learned of Yahoo’s decision simultaneously with the media. We will defend ourselves vigorously against these puzzling actions.”

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Nikesh Arora, Google’s SVP and Chief Business Officer, will run Motorola once the Google acquisition closes later this year, according to rumor published by Business Insider. Arora ran the company’s international business for Eric Schmidt, taking over the global business after the former CEO stepped down. Arora has reportedly been “agitating” for a CEO position and was included on a short list of candidates to head Yahoo. It is possible, however, that a promised CEO slot at Motorola could have prompted Arora to continue with Google. The rumor further notes that Dennis Woodside, Google’s current head of U.S. sales, will take over Arora’s current position.

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Yahoo has frozen its hiring process and may even consider layoffs according to a new report. The news was revealed by AllThingsD on Thursday, which wrote that the choices were made ahead of expected weak fourth quarter earnings. Yahoo isn’t considering mass layoffs, however; instead, AllThingsD said they are likely to be “small and selective” if they happen at all. Yahoo experienced a bit of turmoil earlier this week when co-founder, former CEO and board member Jerry Yang resigned from the company. AllThingsD said other board members may be considering leaving the company, too. Yahoo will report its fourth quarter earnings next Tuesday.

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Co-founder and former CEO Jerry Yang has resigned from all of his positions with Yahoo, the company announced in a press release on Tuesday. Yang co-founded Yahoo in 1995 with David Filo and served as a member of the Board of Directors since March 1995. Yang was also the company’s CEO from June 2007 to January 2009, until he was replaced by Carol Bartz. ”My time at Yahoo!, from its founding to the present, has encompassed some of the most exciting and rewarding experiences of my life,” said Yang in a statement. “However, the time has come for me to pursue other interests outside of Yahoo! As I leave the company I co-founded nearly 17 years ago, I am enthusiastic about the appointment of Scott Thompson as Chief Executive Officer and his ability, along with the entire Yahoo! leadership team, to guide Yahoo! into an exciting and successful future.” Yahoo chairman Roy Bostock praised Yang, calling him both a visionary and pioneer. “We appreciate Jerry’s comments and share his enthusiasm for the company’s prospects. With Scott Thompson leading an outstanding team of Yahoos to deliver innovative products and an engaging customer experience, Yahoo!’s future is bright,” said Bostock. Yahoo’s press release follows below.

Yahoo! Announces Resignation of Jerry Yang

SUNNYVALE, Calif., Jan 17, 2012 (BUSINESS WIRE) — Yahoo! Inc. YHOO +3.76% , the premier digital media company, today announced that Jerry Yang has resigned from its Board of Directors and all other positions with the company, effective today. In addition, Yang resigned from the Boards of Yahoo Japan Corporation and Alibaba Group Holding Limited, effective today.

In a letter to the Yahoo! Board Chairman Roy Bostock, Yang wrote:

“My time at Yahoo!, from its founding to the present, has encompassed some of the most exciting and rewarding experiences of my life. However, the time has come for me to pursue other interests outside of Yahoo! As I leave the company I co-founded nearly 17 years ago, I am enthusiastic about the appointment of Scott Thompson as Chief Executive Officer and his ability, along with the entire Yahoo! leadership team, to guide Yahoo! into an exciting and successful future.”

Yang co-founded Yahoo! Inc. in 1995 with David Filo and served as a member of the Board of Directors since March 1995 and as Chief Executive Officer from June 2007 to January 2009. The Company went public in 1996.

“Jerry Yang is a visionary and a pioneer, who has contributed enormously to Yahoo! during his many years of service,” said Roy Bostock, Chairman of the Yahoo! Board. “It has been a pleasure to work with Jerry. His unique strategic insights have been invaluable. He has always remained focused on the best interests of Yahoo!’s stakeholders, including shareholders, employees and more than 700 million users. And while I and the entire Board respect his decision, we will miss his remarkable perspective, vision and wise counsel. On behalf of the Board, we thank Jerry and wish him all the very best in his future endeavors.”

Bostock concluded, “We appreciate Jerry’s comments and share his enthusiasm for the company’s prospects. With Scott Thompson leading an outstanding team of Yahoos to deliver innovative products and an engaging customer experience, Yahoo!’s future is bright.”

“I am grateful for the warm welcome and support Jerry provided me during my early days here,” said Scott Thompson, Yahoo!’s Chief Executive Officer. “Jerry leaves behind a legacy of innovation and customer focus for this iconic brand, having shaped our culture by fostering a spirit of innovation that began 17 years ago and continues to grow even stronger today. Jerry has great confidence in the future of Yahoo!, and I share his confidence in the enormous potential of Yahoo! in the days ahead.”

Yahoo on Wednesday announced that former PayPal president Scott Thompson will takeover as CEO of the company. Thompson will replace Tim Morse, who has served as the interim CEO since the firing of Carol Bartz last year. ” With the ultimate goal of delivering the value our shareholders expect, my immediate focus will be on getting to know the entire team and hearing more from all Yahoo!s, working closely with the engineers and product teams, and diving deeply into our products and services to learn more about what our more than 700 million users find most engaging and useful,” Thompson said. “I will also be working directly with our region leaders and sales teams globally to get a clearer understanding of the needs of our advertisers and publisher.” Yahoo’s full press release follows after the break.

Yahoo! Appoints Scott Thompson Chief Executive Officer

SUNNYVALE, Calif.–(BUSINESS WIRE)– Yahoo! Inc. (NASDAQ: YHOO), the premier digital media company, today announced the appointment of Scott Thompson as Chief Executive Officer, effective January 9, 2012, at which time Tim Morse will resume his role as Chief Financial Officer. Thompson has also been appointed to the Company’s Board of Directors, effective January 9, 2012.

Thompson served most recently as President of PayPal, a division of eBay, where he continued his established track record of growing businesses by driving customer engagement built on strong technology platforms. Under his leadership, PayPal solidified its lead as the global online payment service, expanding its user base from 50 million to more than 104 million active users in 190 countries worldwide, increasing the number of merchant partners to more than 8 million globally, and growing revenues from $1.8 billion to $4+ billion in 2011.

“Scott brings to Yahoo! a proven record of building on a solid foundation of existing assets and resources to reignite innovation and drive growth, precisely the formula we need at Yahoo!,” said Roy Bostock, Chairman of the Yahoo! Board. “His deep understanding of online businesses combined with his team building and operational capabilities will restore the energy, focus, and momentum necessary to grow the core business and deliver increased value for our shareholders. The search committee and the entire Board concluded that he is the right leader to return the core business to a path of robust growth and industry-leading innovation.”

“Yahoo! is an industry icon and I am very excited about the prospect of working with one of the great teams in the online world to deliver Yahoo!’s next era of success,” Mr. Thompson said. “Yahoo! has a rich history and a solid foundation to build on, and its continued user engagement is one of the many reasons for my enthusiasm. With the ultimate goal of delivering the value our shareholders expect, my immediate focus will be on getting to know the entire team and hearing more from all Yahoo!s, working closely with the engineers and product teams, and diving deeply into our products and services to learn more about what our more than 700 million users find most engaging and useful. I will also be working directly with our region leaders and sales teams globally to get a clearer understanding of the needs of our advertisers and publishers. Clearly, speed is important but we will attack both the opportunity ahead and the competitive challenges with an appropriate balance of urgency and thoughtfulness. I cannot wait to get started.”

“Scott’s primary focus will be on the core business, and as CEO and director, he will work closely with the Board as we continue the strategic review process to identify the best approaches for the Company and its shareholders. As part of this process, Yahoo! is considering a wide range of opportunities for the Company’s business, as well as specific investments or dispositions of assets,” added Bostock.

“We are all grateful to Tim Morse for leading the company with a steady hand during the last several months. His deep understanding of the Company and his positive approach kept the company on course and we will continue to benefit from his exceptional capabilities as he returns to his Chief Financial Officer role,” Bostock concluded.

Scott Thompson Biographical Information

Scott Thompson has a record of deep industry experience, having most recently served as President of PayPal with overall responsibility for establishing that company as the leading global online payment service. He previously served as PayPal’s Senior Vice President and Chief Technology Officer. Prior to PayPal, Mr. Thompson was Executive Vice President of technology solutions at Inovant, a subsidiary of Visa formed to oversee global technology for the organization. Thompson was also Chief Information Officer of Barclays Global Investors, where he implemented a new strategic technology platform and global infrastructure. In addition, he worked with Coopers and Lybrand, delivering information technology solutions to leading financial services clients.

Conference Call and Webcast Information

Yahoo! will host a conference call to discuss today’s announcement at 10 a.m. Eastern Time today. A live webcast of the conference call can be accessed through the Company’s Investor Relations website at http://investor.yahoo.net/. The dial-in number for the live conference call is (877) 218-7860. Participants calling from outside the United States may dial (857) 244-7400. The passcode 60719359# is required to access the call. In addition, an archive of the webcast can be accessed through the same link. An audio replay of the call will be available for one week following the conference call by calling (888) 286-8010 or (617) 801-6888, passcode: 53109628

In a recent interview on the Charlie Rose show, Facebook CEO Mark Zuckerberg said that Yahoo, Microsoft and Google are secretly collecting user data. Zuckerberg also argued that Facebook is more transparent than the aforementioned companies. “It’s just that they’re collecting that about you behind your back,” he said. “You’re going around the web and they’re collecting this huge amount of information about you and you never knew that.” Zuckerberg did admit that Google allows users to see which information it is storing through its Google Dashboard website, but said “very few people” know that feature exists or bother to check it. Zuckerberg also said Facebook provides more features for users to manage what people can and cannot see, although it is arguable that Google+ makes it much easier to configure these options from the get-go. A clip of the interview can be found after the break.

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Rumor has it Microsoft is again toying with the idea of purchasing Yahoo. The Redmond, Washington-based company may partner with another unnamed firm in an effort to make a bid, an anonymous Microsoft executive told Reuters on Wednesday. However, Reuters noted that other divisions inside Microsoft are still not sold on making an offer on the troubled search engine. AllThingsD said rumors about Microsoft’s interest are not true and that the company is not currently interested in acquiring Yahoo. Several other companies are said to be interested in purchasing Yahoo, which recently fired its CEO Carol Bartz, including DST Global, Providence Equity Partners, Alibaba, Hellman & Friedman and Silverlake Partners. Microsoft made an offer for Yahoo in 2008 before cutting off all discussions.

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Following recent rumblings surrounding discontent atop Yahoo’s executive chain, the struggling Internet company fired its CEO Carol Bartz. In the same stroke, Yahoo! also revealed that it is for sale. News broke Tuesday night that former chief executive Carol Bartz sent an email to the entire Yahoo organization. In her brief note, she stated that Yahoo’s chairman of the board had fired her — over the phone, no less. Yahoo confirmed the news, stating that Chief Financial Officer Tim Morse would step in as interim CEO while the company searches for a new chief. Following the news, a Yahoo employee speaking with The Wall Street Journal also confirmed that the company would be open to selling itself. “Yahoo is open to selling itself to the right bidder,” the Journal wrote. No additional details were provided. Carol Bartz’s full email to Yahoo staff follows below.

From: “Carol Bartz”
To: “all-worldwide@yahoo-inc.com”

Subject: Goodbye

To all,

I am very sad to tell you that I’ve just been fired over the phone by Yahoo’s Chairman of the Board. It has been my pleasure to work with all of you and I wish you only the best going forward.

Carol

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Bids for the online streaming company Hulu are due on Wednesday but it is still unclear what the company’s future will hold. Bidders will “submit proposals with wide price ranges based on what types of television shows Hulu would license, when those shows would become available on Hulu and how long the agreements would stretch,” The Wall Street Journal said in a report. Most recently, Hulu changed its licensing terms and now offers television shows eight days after they air, which could turn some viewers off from the service entirely. Previously, Hulu allowed viewers to watch their favorite shows for free the day after they aired, a much more attractive option. Hulu Plus subscribers can still watch new episodes the next day. Rumors surfaced in July that Apple was pondering a Hulu purchase and The Wall Street Journal said Amazon, Google, DirecTV and Yahoo are among those who have been named as potential bidders. Industry insiders have suggested company could fetch between $500 million and $2 billion.

Apple is toying with the idea of placing a bid on the Hulu video streaming service, Bloomberg reported on Thursday. In June, Hulu announced that it had hired Morgan Stanley and Guggenheim Partners to assist with a the sale of the company and rumor had it that Yahoo! was interested in making a bid at that time. Should an acquisition happen, Apple might use Hulu to create a subscription screaming video offering in an effort to compete with services such as Netflix. Currently, customers can only purchase or rent videos from iTunes. Amazon is also interested in the company, although Bloomberg reported that it won’t make a move unless it can have guaranteed access to television shows. Hulu, which offers a premium Hulu Plus subscription option for $7.99 per month, said that it expects to surpass 1 million subscribers this August.
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Hulu announced on Thursday that its Hulu Plus application is now available on select Android smartphones. The service costs $7.99 per month and allows users to browse and play Hulu Plus content directly on their smartphones. It’s currently only available for the Motorola Atrix, Motorola DROID X, Motorola DROID 2, HTC Inspire 4G, Nexus S, and Nexus One, but Hulu says it will add more devices throughout the year. New users can sign up for a free 1-week trial to give the service a whirl, and the app is available in the Android Market now. In other news, Hulu is also reportedly up for sale. The company has hired Morgan Stanley and Guggenheim Partners to assist with possible deals, and Yahoo is said to have already expressed interest in bidding on the streaming video firm.

[Via Business Insider]

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