Google Inc (NASDAQ:GOOG) have announced that they will split their shares at a rate of 2 for 1. Stock splits are the most common way for American companies to lower share price to increase liquidity of stock. Other than a doubling of shares for shareholders no other change will occur – no change to value of the shares. Dividends will simply be halved per share.

Google Annual Report

Yesterday Google reported a big increase in profits. It’s net income for the first quarter was up by 60% on last year, to £1.8 billion (USD2.89 billion).

Revenue exceeded USD10 billion in the first quarter of 2012 for the first time. Google’s growth in overseas business now accounts for over 50% of its revenue.

How Does Google Make Money?

Almost all of Google’s profits come from online advertising. Google Adwords is its advertising platform (the adverts displayed on Shareholders Portal are Google adverts).

Google displays its managed adverts on Google search engine results pages and on its publisher network. The publisher network is free to use by any website and is now the most popular advertising network in the world.

Google also makes money through its Android operating system for smartphones as well as its Google Checkout operations. However, Android is the fastest growing part of its business with over 850,000 new devices going online every.

Google currently holds around $49.3 billion in cash. It has the potential to grow significantly, although currently there are no plans for any major acquisitions. However, even though Google is cash rich there has been no dividend payment announced.

Paid clicks rose 39%

Google has seen a massive increase in the money it is making through its advertising network. Over the last 14 months Google has commenced a series of major updates to its search algorithm called Project Panda.

Project Panda started in February 2011 in the USA and then was rolled out globally from April 2011. This resulted in a major shakeup in its search engine results pages (SERPs). The project was designed to ensure that higher quality websites ranked better in the Google index. This has benefited both users (those who search) and customers (those who advertise).

The end result has contributed to a 39% increase in revenue.

Why is Google Splitting Its Stock?

As stock prices increase shares become less attractive to the smaller investor. Although big investment companies are the ones always discussed in the media, for most companies a majority of shares are owned by private individuals.

A 2 for 1 split simply halves the share price, making the price more attractive to the consumer. Of course, the value of the company is not altered in the corporate action.

Class C Non Voting Shares

The stock split is also issuing non-voting shares which simply means that shareholders will not increase be able to vote on meeting agenda items by holding the stock.

Major Shareholders

Sergey Brin and Larry Page, who are the founders of Google, remain major shareholders and keep the controlling stake in the company. It has always been Brin and Page’s objective to ensure that Google is protected from hostile takeover risk or influence from other parties, which is why they have decided to keep a controlling stake in the business.

“We have decided that maintaining this founder-led approach is in the best interests of Google, our shareholders and our users,” Sergey Brin and Larry Page.

You can read their full statement in the 2012 Founders’ Letter in the Investor Relations pages on Google.com.

They also say that they are building a corporate structure to ensure long term stability while also allowing them to innovate and develop new ideas and methodologies.

“New investors will fully share in Google’s long term economic future but will have little ability to influence its strategic decisions through their voting rights.”

Ex-date and Pay Date for Google Stock Split

Google have not yet announced the ex-date or pay date for the stock split.

Google Share Prices

Google is currently trading at USD651.51 and is up 2.37% on the back of this news.

For the latest prices and news on Google visit https://www.google.co.uk/finance?client=ob&q=NASDAQ:GOOG

Future of Google?

Google’s new social networking site, Google+, is growing and Google appear to be focusing on this at the moment. it is constantly updating and enhancing the service. Google+ now has around 170 million users, which although is still only 20% of Facebook’s 850 million users, it is growing at a significant rate.

Google’s own web browser, Chrome, is becoming more popular too, although it is not clear how this can help boost revenue.

A new fund to support charities and social entrepreneurs who have struggled to obtain lending from the traditional banks has been set up by the coalition government.

Money is sourced from dormant bank accounts, which are bank accounts that have been left usused for over 15 years. There is around £400 million in these accounts. The other £200 will come from the Merlin banks.

The funds will support social entrepreneurs and charities. The idea is that the find will offer long-term loans at good rates. The social enterprises will still have to prove that they generate adequate income to repay the loan at the agreed rate, but in theory these loans should be more favourable and easier to obtain than the current source of lending.

Who Can Receive Funding?

The money is specifically for enterprises which make no profits, i.e. Not For Profit organisations, which fall under different rules to charities and often find it harder to receive funding or donations. CharityInsight.com explain the difference here: What is the difference between charity and social enterprise?

Some critics have suggested that some of the enterprises that will be eligible for this funding are not in a position to manage a large sum of money efficiently.

Big Society Trust is Major Shareholder

The Big Society Trust will control 60% of the shares in the fund. The Big Society Trust is a new private limited company that is managed by a team of business leaders from charities, commerce and politics. The chairman is the venture capitalist Sir Ronald Cohen and Nick O’Donohoe, the former head of research at JPMorgan Chase, is the executive officer.

The other 40% of the shares are held by Barclays, HSBC, Lloyds Banking Group and the Royal Bank of Scotland – the Merlin Banks.

Independent Commission on Unclaimed Assets

The idea for the Big Society Trust started to develop in 2005 when a project was undertaken by Sir Ronald to look at how dormant bank accounts could be used to improve society. The policy recommendation was for the formation of a social investment bank, and in 2008 the Dormant Bank and Building Society Accounts Act was passed.

Big Lottery Fund

The Big Lottery Fund manages all dormant funds and is responsible for the distribution and accounting of the bank accounts.

All dormant funds will immediately be returned to their owners should they activate the account at any time.

Big Fund for Big Society

This is a continuation of David Cameron’s Big Society project. David Cameron says that The City needs to support social enterprises just as it supports business. For the economy to grow and the “broken society” to mend, financial support is required.

David Cameron seems to be a prime minister who wants to leave a legacy behind, something that people will remember him for in years to come. Big Society is more than an idea, it his is mission.

Will the Big Society Capital Fund Have Enough Cash?

It is expected that government funding for charities will decline further over the forthcoming years and there is a concern that the Big Society Capital Fund will not even cover the fall in government investment.

However, David Cameron is confident that the fund will provide not-for-profit enterprises with all the funding that they will need. It is still an investment though, and like any investment there is inherent risk associated with it.

Social Performance

The Big Society Trust aims to not only provide a small financial return (it has to make some money to allow it to operate) but also the improve in society, i.e. to make social investments to get a social return. Social returns can be measured by improvements in education, welfare, health and mobility, along with many other measures.

How successful the venture is going to be is hard to predict, and as it is so hard to measure the success it will undoubtedly be hard to determine if this is a failure or success in a few years time. Government spin will ensure that it sounds like a success no matter what the bank balance states.

Balfour Beatty plc. has announced that it will be making job cuts. The construction industry has been hard in the last few years and Balfour Beatty is forced to cut staff to reduce costs.

Balfour Beatty is a vital consurtction firm in the UK, and ranked 15th largestglobally. It is listed on the FTSE 250 Index.

Balfour Beatty employs around 50,000 people globally and 12,000 staff in the UK. At present we do not know how many UK jobs are under threat.

They have built some of the biggest constructions in the UK in recent years, including:

• The Kielder Dam, Northumberland, 1982
• The Docklands Light Railway in London, 1985
• Large parts of the M25 motorway around London, 1986
• The Channel Tunnel, 1994
• The Lesotho Highlands Water Project, 2002
• Nam Cheong Station, Hong Kong, 2003
• The Pergau Dam hydroelectric project in Malaysia, 2003
• The M6 Toll, 2003
• University College London Hospital, 2005
• Igor I. Sikorsky Memorial Bridge, Connecticut, USA, 2006
• Burj Mall, Dubai, 2008
• The King’s Cross St. Pancras tube station Northern Ticket Hall completed in 2009
• The East London Line, completed in 2010
• The A3 Hindhead Tunnel completed in 2011
• The London Aquatics Centre due to complete in 2011
• The M25 motorway widening J16 to 23 and J27 to 30, due to complete in 2012
• The Blackfriars station and Bridge Construction Works due to complete in 2012
• The new main facility for Parkland Memorial Hospital in Dallas, Texas due to complete in 2014
• Crossrail Liverpool Street station and Whitechapel station due to complete in 2018

They have issued a Press Release today: Balfour Beatty in for the long run - which talks about their continuing plans to support youth sports in the UK.

Today we learned that Game (The Game Group Plc), the high street computer game retailer, has gone into administration. It is feared the all stores will close within a week. Game suspended trading on 12st March 2012.

It seems that cash flow problems and investments were the main cause, with a failure to source new products from many of their suppliers. You can get a good picture of what is happening at Game from their Press Releases.

Game Plc. Press Release – Administration

“Further to our announcements of 21 March, the Board of GAME has completed its discussions with lenders and third parties without resolution, and has therefore today appointed PWC LLP to act as administrators for the Group. This decision is taken after careful consideration and ceaseless interrogation of every possible alternative. The Board would like to thank the teams of GAME and Gamestation colleagues around the world for their exemplary dedication, passion and professionalism.” – Game Group Plc.

It may be saved by RBS, although at the moment the future for Game is unclear. In fact, the entire computer games market is unclear at the moment. So much has changed in the last 30 years and it is hard to see how a high street retailer will be able to really compete against online gaming.

The Rise and Fall of Computers and Consoles

The computer games industry has been a very turbulent one indeed. Many businesses have rapidly risen only to crash and burn the moment a new technology takes over. A few, like Eidos, have managed to stay on top, but most have floundered.

There are essentially 3 ways to play “computer games” – on a PC or Mac, on a console or online. This has actually been the case for over a decade now, in fact, you could argue it has been longer – people were playing chess by email long before the first multiplayer games were written.

The Early Computer Games

ZX Spectrum 128

The early innovators in the computer games industry were Sinclair, Amstrad (Sir Alan Sugar’s first success) and Commodore. These were computers, with full keyboard and operating system, on which owners could install or write computer games. The first popular games were never bought, instead computer owners would have to copy code from magazines to play them. The age of computing was just beginning.

In time businesses grew which focused on producing computer games, and like today, there were budget brands as well as the premium titles. We had Mastertronic, U.S. Gold and Code Masters on the Spectrum, for the Commodore there were Gremlin Graphics, Piranha and Bulldog Software. There was some crossover, but many houses focused on one platform, much like today.

The Consoles

At the same time consoles were also popular with the Atari dominating the market during the 1980s and 1990s. Sega and Nintendo were developing in the late 1980s and 1990s. Consoles were always a more expensive option and generally a provided family gaming experiences as a large colour television was needed to play them. Even today most consoles sit next to the DVD player under the HD flat screen. In fact, the PlayStation 3 was the most economical way for a while to have a Blu-Ray player to connect to a high-def flat screen. But back the the history of computer games.

The Atari ST – A Dedicated Games Computer

Atari 1040STF 16-bit computer

After these computers the main player quickly became the Atari ST. One popular game publisher for the Atari was Sega, who re-wrote some of their classic arcade games such as After Burner. Other big titles included Bubble Bobble by Taito and Romstar, Civilization by MicroProse, Double Dragon by Taito, Dungeon Master by FTL Games, Battle Command by Ocean Software and Starglider by Argonaut Games.

These games all marked a change in gaming style and genre. We have the simple fun platform games of Bubble Bobble, empire building in Civilization, classic beat-em-up in Double Dragon and RPG with Dungeon Master. It was from these roots that games such as Flight Simulator, Age of Empires, Age of Mythology, Mortal Kombat, World of Warcraft, and the Halo series.

Other titles are still familiar today. In 1994 Bethesda Softworks released The Elder Scrolls: Arena. Its successors, written for both PC and the XBox – Morrowind, Oblivion and Skyrim have become some of the most popular single player role-playing games even produced.

From PCs to Consoles

However, very soon the PC took over. It had a great advantage of suddenly having more processing power and better graphics. The main benefit was the more households were buying them as Windows developed and therefore people stayed on the same platform. This provided stability for games houses. For a long time the PC ruled. Games such as The Sims, World of Warcraft, the Diablo series, Half-Life, StarCraft, Guild Wars, Myst, Battlefield 1942 and Counter-Strike are amongst the top games of all time.

But then, slowly, the console platforms started winning people back. Playstation made a big impact with the with the Playstation 2 in 2000. By the mid noughties, Playstation and Microsoft’s Xbox had cornered the games market.

However, all this started to change with the rise of modern communications. Mostly driven by a new age of plasma and LCD televisions with surround sound, console games came back into fashion with the XBox, Playstation and Nintendo controlling the market.

Superfast Broadband, Social Media and Online Gaming

Although the first massive online multiplayer game was World of Warcraft, this was still a game that had to be purchased on CD / DVD when it was first released. Today faster Internet connections and better computers and mobile phones have seen a seismic shift in gaming. More people are now play free games online, both on their PCs and on their mobile phones, than are playing on consoles or traditional PC games.

Zynga

Zynga started producing games for Facebook in 2007. They have produced many games that work across the popular platforms (Facebook, Google+ and Myspace) including the likes of CityVille, CastleVille, Zynga Poker, FarmVille, and Empires & Allies. Empire Building games are the key. They keep people engage for months or years at a time and constantly evolve to bring new features to the players. Gone are the days that you buy a game to play until you complete it. Nowadays the games are always one step ahead.

By December 2011 Zynga floated on the NASDAQ stock market. It is having a rocky ride, but it is still dominating the games market.

Game in Liquidation

The impact is dramatic. The old games houses that had dedicated themselves to producing console and PC games are suffering and the retail industry is feeling the bite too. In March 2012, UK high street retailer Game, went into liquidation. People are no longer buying enough games, either for PC or consoles.

The games market has undergone the biggest change in its relatively short history. In 30 years we have seen consoles and computers battle it out for dominance only to see faster Internet connections and social media sites, specifically Facebook, steal the market almost overnight.

While the traditional games are struggling, a new age in gaming technology is here and it is likely to dominate for a long time to come. This could be another reason to look at Arm Holdings, as they make the computer chips that run in many of the smart phones and tablets on which games are played today.

Many more great games …..

Note, with have omitted many platforms and games. We could not mention them all. We know that diehard gamers will be distraught by the lack of mention of the BBC, Acorn and Amiga, or ignoring classic games such as Lemmings, Elite and Paperboy. If you want to catch up on your old favourite computer games Wikipedia is an amazing source of information. Start with the pages Arcade game, History of video games and PC game and continue surfing from there.

Image credits

Atari ST photo by Pixel8.

Market Update – 2nd February 2012

Facebook have announced plans to float on the stock market. It is looking to raise $5 billion in an IPO. It has filed its intention to list with the Securities and Exchange Commission.

Form S-1 REGISTRATION STATEMENT Under The Securities Act of 1933 - Facebook, Inc. SEC.gov

It is valued at around $75 billion, less than the initial $100 billion figure that was quoted by many. However, some analysts think that this figure is still too high and the interest in the stock will mostly be driven by brand awareness and not by sound analysis of its potentials, risk and market development.

Facebook has been growing at a staggering rate but some people feel that it is reached its peak already. Around 480 million people log on every day, however, it does not seem to be gaining new clients (users) as quickly as it once did. However, it is now investing heavily in mobile and expects most new users to be solely mobile users.

Terms of the Facebook IPO

Facebook, Inc. is offering _____ shares of its Class A common stock and the selling stockholders are offering _____ shares of Class A common stock. We will not receive any proceeds from the sale of shares by the selling stockholders. This is our initial public offering and no public market currently exists for our shares of Class A common stock. We anticipate that the initial public offering price will be between $ _____ and $ _____ per share.

We have two classes of authorized common stock, Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to ten votes per share and is convertible at any time into one share of Class A common stock. Outstanding shares of Class B common stock will represent approximately _____ % of the voting power of our outstanding capital stock following this offering, and outstanding shares of Class A common stock and Class B common stock held by, or subject to voting control by, our founder, Chairman, and CEO, Mark Zuckerberg, will represent approximately _____ % of the voting power of our outstanding capital stock following this offering.

We intend to apply to list our Class A common stock on under the symbol “FB.”

There are a few blanks in there still to be completed.

When will Facebook Float?

“Approximate date of commencement of proposed sale to the public: As soon as practicable after the effective date of this Registration Statement.”

It was not so long ago that Mark Zuckerberg said that he was not in any hurry to float Facebook. It’s cash flow is strong and there seemed little reason to raise capital through a stock market flotation. So the big question is why?

Possible Takeovers?

For Facebook to really grow and dominate they may need to look to make some constructive partnerships and even some aggressive acquisitions. Mobile is the hot trend at the moment and Facebook currently hardly involved at all. Their website is present on all mobile smartphones but Facebook do not provide their own mobile service. Advertising is hot too and currently Facebook struggle to provide any form of targeted adverts to its members on mobile devices. These are two areas that they could be looking to expand into.

Bigger than Yahoo!

Valued at $100 billion Facebook is currently bigger than Yahoo! Although to be fair, Yahoo! is not exactly growing at the moment, they continue to drop more products and some tech analysts fear that Yahoo! may eventually be merged into a multitude of competing businesses in the near future.

Facebook history

Facebook was founded in 2001 by Mark Zuckerberg while he was studying at Harvard University. It has quickly grown in the last 7 years to have over 800 million users. What is so striking about Facebook’ success is that it has always managed to stay on top of its growth. Many small websites would very quickly fail when experiencing such high demand, but Facebook has had next to no downtime during its lifetime. This is a great credit to the company and all those who manage its servers and infrastructure.

One of the Biggest IPOs in History

To date only 13 companies have been valued at over $10 billion on their IPO. The top American companies prior to Facebook were:

• Visa Inc. at $19.7 billion in 2008
• General Motors Co. at $18.1 billion in 2010
• AT&T Wireless Services Inc. at $10.6 billion in 2000

The largest IPO in the world so far was the Industrial & Commercial Bank of China, which released $21.9 billion of shares in 2006. It ended its first day valued at $148 billion.

How Much Does Mark Zuckerberg Earn?

According to the SEC registration statement Mark Zuckerberg had a basic salary of $500,000 in 2009, with a bonus of $220,500 and additional benefits worth $783,529 – a total of $1,487,362.

This is actually considerably less than the CEOs and Vice Presidents who all received stock awards:

• Sheryl K. Sandberg, Chief Operating Officer - $30,873,579
• David A. Ebersman, Chief Financial Officer – $18,676,918
• Mike Schroepfer, Vice President of Engineering – $24,727,128
• Theodore W. Ullyot, Vice President, General Counsel and Secretary – $6,958,544

More on the Facebook IPO story:

• Boot up: Facebook IPO ‘in Q2 2012′, inside Amazon.com, and more – Guardian.co.uk, Tuesday 29 November 2011
• Is Facebook worth $100bn? - Guardian.co.uk, Thursday 2 February 2012

Google has seen its revenue increase by 27% for the final quarter, and 29% overall for 2011. However, this increase in revenue has still fallen short of shareholder expectations and as a result many people are selling. Google share price has dropped by 10% after the results were released, plummeting share price to $575 per share.

However, shares have already bounced back, and are currently trading at $639.57 (Jan 20, 6:42AM EST).

Some analysts fear that Google is investing too heavily in new areas of its business which is reducing the overall profits it gains from its advertising and search marketing business. Although Google has many products and services, its core business is still in placing adverts on its search engine. This is how it generates its revenue and it is this money that is reinvested back into new projects.

This year Google launched its Google+ Social Network and is determined to make it work – all staff bonuses will be partly determined based on the success (or failure) of its social network. Google recognises that in recent years the “web portal” has returned, i.e. Facebook.

In the earlier days of the Internet people would make a portal site, such as Yahoo!, their homepage and start their daily web searching and surfing from there. Then Google search came along and people chose to start their web journey with a blank screen and a search box. However, nowadays people go direct to Facebook or Twitter to see what their friends and acquaintances are talking about online, and Google has been left out of the picture. This is why it is now resolved to build a social network that can rival Facebook.

Of course, all this costs money. In the last year Google has been hiring more staff to help drive forward its other enterprises, such as its Chrome operating system and browser, as well as Google+, and this has resulted in Google’s costs rising by 54%.

Google hired an additional 1900 people during the first quarter and plans to hire another 6000 people this year. In recent years many people have criticised Google for its lack of customer support, and many new jobs have been creating in client facing teams. Google is working more closely with web advertising agencies and web publishers, by organising events and sending Googlers (Google employees) out into the field to spend time learning from the people who essentially keep the Internet alive. This of course is much more costly than the old approach of communicating via forums when time permits!

Android

Google also firmly believes that the future of the Internet is in mobile technology. As more people buy smartphones and tablets, more searches are being done on mobile devices. This opens a whole new world of opportunities for advertisers, and Google is determined to not only be in control of the mobile operating systems (Android) but also to ensure it maintains its market share in advertising as more people leave the PC based websites to spend more on advertising on mobile.

It is possible that in years to come the traditional PC advertising will wane away in much the same way that print advertising has decline in the last decade. Mobile, many people believe, is the future. The days of people sitting hunched over an computer or laptop are numbered.

Last year Google did announce that there is a tough year ahead and that some changes in the pipeline are vital for long term growth and may impact on short term profits. Shareholders were warned in early 2011, so mustn’t grumble really. Google is still the top tech stock and is positioning itself for the future rather than simply maximising profits today.

When Larry Page took over the role as CEO, Steven Levy, the author of In The Plex: How Google Thinks, Works, and Shapes Our Lives, predicted that,

“We’ll see audacious new products, particularly when other people think it’ll be difficult or even impossible — it’s not always about what people need right now, but what people need in 10 years.”

Investment for the future is paramount. Early in 2011 investors were concerned about the rise of Facebook, saying the Google will be left behind. In the last year Google has steamed ahead with its own social media platform and made big moves in the mobile internet arena too.

RBS, and us, the taxpayers, will be having to cough up £2.17 million to pay an FSA fine incurred by Churchill Insurance and Direct Line. Both Churchill Insurance Company Limited and Direct Line are private companies, owned by the Royal Bank of Scotland Group Plc..

It was discovered that both of these companies had altered customer files to remove and downplay complaints against them.

The FSA has pointed out that overall the changes to the customer files have not affected customers, however, the act of removing or editing customer complaints is a serious breach of FSA rules and it has therefore imposed a hefty fine.

In one case a member of staff had also forged the signature of colleagues. It is a requirement that any changes to client data are checked and verified before being updated. These rules usually apply only to general administration, such as the updating of accounts and processing of corporate actions for shareholders. The fact that an individual had been forging signatures is another serious breach and highlights how easily fraud and corruption can take place in the workplace.

The FSA have also pointed out that while the managers were not aware that these alterations had taken place, they had not taken appropriate measures to ensure that staff were aware that such alterations were against company policy and FSA rules. A lack of staff training is something that the FSA takes very seriously. For example, all staff working in investments and dealing with client money must go on money laundering courses every 2 years to ensure that they are kept up to date on rule and regulations.

This news has not affected Royal Bank of Scotland Group plc  (Public, LON:RBS) share price, it is currently trading at 24.86p, up 0.04% so far today.

Jerry Yang

PRESS RELEASE FROM YAHOO!

SUNNYVALE, Calif.– (BUSINESS WIRE)– Yahoo! Inc. (NASDAQ: YHOO), 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 (who has had to fire himself), 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.”

Forward Looking Statements

This press release contains forward-looking statements (including without limitation the quotations from our Chairman and management) concerning Yahoo!’s future management, strategic plans, growth opportunities and performance.

Risks and uncertainties may cause actual results to differ materially from the results predicted. The potential risks and uncertainties include, among others, the impact of management and organizational changes; the implementation and results of any strategic plans as well as Yahoo!’s ongoing strategic and cost initiatives; Yahoo!’s ability to compete with new or existing competitors; reduction in spending by, or loss of, advertising customers; the demand by customers for Yahoo!’s premium services; interruptions or delays in the provision of Yahoo!’s services; security breaches; acceptance by users of new products and services; risks related to joint ventures and the integration of acquisitions; risks related to Yahoo!’s international operations; failure to manage growth and diversification; adverse results in litigation, including intellectual property infringement claims and recent derivative and class actions related to Alipay; Yahoo!’s ability to protect its intellectual property and the value of its brands; dependence on key personnel; dependence on third parties for technology, services, content, and distribution; general economic conditions and changes in economic conditions; transition and implementation risks associated with the Search Agreement with Microsoft Corporation; and risks that the benefits of the Framework Agreement Yahoo! entered into with Alibaba Group, Softbank Corporation and certain other parties regarding Alipay may not be realized. All information set forth in this press release and its attachments is as of January 17, 2012. Yahoo! does not intend, and undertakes no duty, to update this information to reflect subsequent events or circumstances.

More information about potential factors that could affect Yahoo!’s business and financial results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Yahoo!’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, which are on file with the Securities and Exchange Commission (“SEC”) and available at the SEC’s website at www.sec.gov.

Sources:

• Yahoo! Inc. - http://finance.yahoo.com/news/Yahoo-Announces-Resignation-bw-3358038648.html?x=0
• Yahoo! Announces Resignation of Jerry Yang - Yahoo Investor Relations

News Provided by Acquire Media

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Peacocks, the Welsh retail giant owned by the Peacock Group that grew from very humble beginnings in a penny arcade in Chesire is on the brink of falling into administration.

It developed as a retailer of woman’s clothing and has grown in recent decades to become a more dominant brand on high streets across the UK.

Peacock’s has around 600 stores in the UK and 100 overseas stores. It employs around 10,000 staff in the UK.

It’s main problem is that it is around £240 million debt and is struggling to manage its debts. Analysts have pointed out that RBS has stopped lending to many retailers and this credit crunch is strangling cash flow and forcing retailers, large and small, out of business.

There is no news on their Twitter feed at the moment. A few days ago there were reports of problems with the Peacocks website,

“Guys and girls, we’re sorry about our website issues, we’re working really hard to get things fixed - 14 Jan”

Peacock has filed an “intention to appoint administrators” and has 10 days to attempt to restructure its debt before it starts to go into administration.

More on Peacocks’ challenge to avoid going into administration soon.

The wide range of mortgage rates on the market has always been confusing, but the picture is complicated by the fact that the Bank of England base rate has now been at a record low of 0.5% since March 2009. That doesn’t mean there’s an undisputed “right” answer as to which rate type is best for you, but it does change some of the factors you need to take into account.

The Standard Variable Rate is the simplest type of mortgage and means that the lender decides what your interest rate is at any time. This is usually decided by a combination of the Bank of England base rate and the competition in the mortgage market. Traditionally the advice has been to go for this if you don’t mind taking the risk that rates will rise. In today’s climate, the standard rate is still very affordable for many people, and there’s no sign of it changing soon: the most recent Monetary Policy Committee meeting saw a unanimous 9-0 vote to keep the rate unchanged. Bear in mind, though, that while the timing is uncertain, it’s as certain as can be that the rate will change in the long run, and there’s only one direction it’s going to move in: up.

What about a fixed rate? Well, it’s still a form of gamble as you are effectively predicting the variable rate won’t go below this fixed rate. While lenders may offer a fixed rate at any time, it’s most common at the start of a loan, for anything between one and five years. Before taking out such a deal, you should find out whether there are any penalties if you decide to pay it off early, for example by re-mortgaging with another lender for a lower rate. You’ll also need to check what happens to the rate at the end of the fixed period: usually it shoots up to the variable rate, which could mean a significant hike in your monthly costs if the Bank of England has decided it’s time to tackle inflation by then.

You could also opt for a tracker rate, in which the rate you pay is directly linked to the Bank of England base rate, for example being half a percentage point higher. The effect is that your costs can be affected by the Bank of England’s decisions, but not by the bank’s own variations. Given that banks have been so hesitant to take risks on loans that there’s not as much competition in the market as usual, you can effectively look at this in the same way as the standard variable rate.

Another option is the cap and collar, another fixed-variable hybrid. A cap rate means you have a variable rate but, during a specified time, it can only rise up to a certain level. A cap and collar rate works the same way, but there’s also a minimum level, meaning you don’t benefit even if market rates go below this. For some borrowers this can be an effective compromise between having relatively low rates but reducing uncertainty.

All in all, the mortgage rate game remains as much of a game of predictions as ever. Fixed rates offer more certainty, while variable rates are a more explicit gamble, with tracker or cap/collar rates somewhere in between. Right now the premium you pay for a fixed rate (and thus the savings that come with the variable rate) is relatively low. That said, even if you make a rate decision based on the on-going low Bank of England base rate, you should still at least consider how you’d cope if your payments rose rapidly.

Photo by Richard Webb.