Yahoo’s Marissa Mayer’s Expensive Goodbye; Intel Revs it Up on Self-Driving Cars; Another Sporting Goods Chain Throws in the Towel

Yah-who?

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Well the good news is that Marissa Mayer will get to add $23 million to her bank account. And who wouldn’t like to see their bank account get a deposit like that? The bad news is that the $23 million is part of her severance package from Yahoo. At least that’s what a regulatory filing indicated. And no one seems to know – and if they do, they are not talking – whether Ms. Mayer will be staying with the remaining entities of Yahoo that Verizon is buying. The parts of the company that Verizon is not buying will eventually be formed into a new company called Altaba, to be headed by Thomas J. McInerney. If you recall, Verizon got to cut $350 million from the final purchase price of $4.5 billion because of Yahoo’s fiscally disastrous data breach. Verizon’s feelings were that Yahoo execs didn’t quite “properly comprehend or investigate” those breaches that affected hundreds of millions of people. At this point, feel free to get a little more colorful in rephrasing that last bit with your own words and thoughts. Especially if you are a Yahoo account holder. The data breach also cost Ms. Mayer her own 2016 cash bonus of up to $2 million. However, to her credit, she did graciously gave up her bonus and equity grants for 2017.

Start me up…

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Intel just threw down over $15 billion to buy Israeli tech company, Mobileye NV.  What,  might you be wondering, is so special about this particular tech company that had a chip-maker eager to plunk down a 30% premium of $63.54 per share? Self-driving cars, which you may or may not realize, are all the rage these days. And since Mobileye already commands 70% of the global market for driver-assistance and anti-collision  technology, this acquisition seemed like an awfully prudent way for Intel to break into that industry in a very big way. So I think we can all agree that even though this was Intel’s most expensive purchase of any single company, it was totally worth it. I suppose Mobileye would have to agree as well, since its own stock went up a very substantial 30% on this latest news.

Another one bites the dust…

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Just when you thought you’d seen the last of the sporting goods chains bankruptcies, along comes Gander Mountain to remind us that, alas, those days are far from their bitter end. The Minnesota-based company will follow the unfortunate fiscal footsteps of Sports Authority, Golfsmith and about ten other retailers from the last year or so, and shutter over 30 of its 162 stores. Fierce online competition led to less traffic in stores and too much merchandise on the shelves. Around 1,300 employees will be affected by the closures, but will apparently have an opportunity to be relocated to locations that aren’t floundering. Yet, anyway.

 

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Bit-drama; Sports Authority Strikes Out; Uber’s New Bosses

Bit-scam?

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An Australian man by the name of Craig Wright is claiming to be Bitcoin’s illustrious creator. But as much as he wants people to believe him and embrace him as creator-extraordinare of the crypto-cuurency, there’s plenty of reason not to bite. Insisting he’s Satoshi Nakamoto, the pseudonym behind the currency’s creator, Wright, a computer scientist, decided that it was time for him to reveal his true identity and correct all of the misinformation out there. Wright explained, “I didn’t take the decision lightly to make my identity public and I want to be clear that I’m doing this because I care so passionately about my work and also to dispel any negative myths and fears.” How…gallant. According to Wright, he substantiated his own claim by showing that he had access to blocks of bitcoin that could only have been created by the actual bona fide creator. How very convenient. But naysayers say he’s nothing more than a con man who used some blocks that had already been around and just copied them. Incidentally, Wright’s home was raided by police back in December as a result of a tax investigation conducted by the Australian Tax Office. Though Bitcoin launched in 2009, its creator, who is reported to hold about $450 million worth of bitcoin, fell off the virtual grid in 2011. There are a reported 15 million plus Bitcoins currently in circulation. Wright said he believes that Bitcoin can be used to make the world a better place and is set to release research on the massive potential of the crypto-currency. Awww! Can it cure cancer too?

Game over?

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Looks like it’s game over for Sports Authority, as the retailer will shutter its 463 stores after failing to reorganize itself following its Chapter 11 bankruptcy filing back in March. Initially, the chain had big plans to shut down just 140 of its stores. But now the chain will liquidate and very unglamorously auction itself off. There’s a hearing scheduled for May 16 but in the meantime, the flailing company is hoping somebody shows a little fiscal mercy in the way of a generous offer. Problem is, the offers it already had wouldn’t even be enough to cover the $100 million worth of administration and liquidation costs. Of course, there’s also the whopping $1.1 billion that Sports Authority owes to its creditors. Apparently Dick’s Sporting goods was catering the thought of scooping up Sports Authority, but don’t bother checking to see if Dick’s would keep the old sign in place. Because it wouldn’t. It has no intention of bringing on any negative associations. Fact is, Sports Authority and Dick’s were rivals with Sports Authority having the upper hand. But then Dick’s brought its “A” game and began presenting its merchandise better while also offering way more in the tech arena. Hence, Dick’s is not in the downward spiral in which Sports Authority finds itself with one analyst even calling it the only game in town now. Ouch. Perennial brick-and-mortar killer Amazon and friends also had a passive hand in Sports Authority’s demise. But ironically enough, deeply discounted merchandise at Sports Authority, as a result of liquidation attempts, have been hurting sales at Dicks and other sporting goods chains. Lately, anyway. But that fiscal dent will be minor and short-lived, especially when you consider that shares of Dick’s surged a bit today on the news of Sports Authority’s losing uphill battle.

Riding it out…

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About 1,000 Uber drivers in New York are going all out by forming an association (read: union) to take on Uber management. Calling itself the Amalgamated Local of Livery Employees in Solidarity, or Alles for short, this new association is, ironically, forming just as Uber celebrates its fifth anniversary this week in the Big Apple, where there are some one million active Uber riders. Alles was formed to protect and provide security for its members against all sorts of entities including insurance firms and car companies, just like unions protect employees. Except that Uber drivers are not considered employees but rather contractors. This comes after the ride-sharing app agreed to a $100 million settlement over expense claims in Californian and Massachusetts. The money, if approved by a San Francisco Federal judge, will be divided according to how many miles each Uber driver drove for the company. And while the $100 million settlement is still waiting approval from a San Francisco fedeal judge, lawyers in Florida and Illinois have filed two more class-action lawsuits against Uber claiming that the ride-sharing app violated the Fair Labor Standard Act. That’s in addition to the numerous other lawsuits staring down Uber all over the country.

The List of Best Companies is Here; Sports Authority Calls it a Game, Files for Bankruptcy; Angie’s List Free as a Bird Now

In good company…

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Because there’s nothing like a list to grab your attention these days, Fortune Magazine just published its latest list of the “100 Best Companies to Work For.”  For the seventh year in a row, Google tops the list. And how could it not? After all, Vince Vaughn and Owen Wilson did make a movie about being interns there, so how could it not be the best company to work for? The Container Store takes the 14 spot. As a customer, I already spend inordinate amounts of time in their stores fantasizing about how organized I could become. Hmm. Maybe I should check the company’s job board. Recreational sporting goods company REI snags the 26th spot. If you recall, they made Glassdoor’s list of companies with the best perks.  Good perks make for happy employees who vote for their own companies to win big on these lists. Publix Supermarket came in at 67. As the largest employee-owned company, Publix has extremely low-turnover and plenty of perks that keep employees satisfied for decades. You might want to check if your company is on the list. If not, then consider tidying up your LinkedIn profile as there are currently over 100,000 job openings at these companies that are just waiting to be filled.

Disregard for authority…

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Sports Authority has gone bust and is set to start closing its doors at about 140 locations as early as tomorrow, including 25 stores in Texas and 19 in California. Sports Authority managed to rack up $1.1 billion debt as it failed to keep up with current consumer trends. There’s a chance that another company will pick up Sports Authority’s debt-riddled pieces and give the sporting goods company a second profitable chance. But if April comes along and Sports Authority has no buyer, it will throw in the proverbial fiscal towel and close down its remaining locations. If you have any gift cards for Sports Authority, you might want to use ‘em up NOW while Sports Authority still honors them. Need to return or exchange merchandise? Good news! You still can…as long as you’re near one that didn’t close. Warranty related issues keeping you awake at night. No worries. Sports Authority can still service those items. Sports Authority is even carrying on with its customer loyalty program (there’s a joke in there somewhere) – at the locations that are still open anyway.

Free ‘em up…

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Angie’s List will now be free for the masses. Sort of. The review site will now allow visitors to read reviews and ratings…without having to fork over the security codes on their credit cards. However, tiered subscription services will be offered to those looking for a few extra benefits not included in freemium subscriptions. There’s going to be a $24.99 silver subscription and a $99.99 gold subscription. While those offers might seem a little pricey, they come with big benefits like an emergency service hotline and fair price guarantees. A small price to pay for some big peace of mind. Even though the company went public way back in 2011, it didn’t churn out its first annual profit until 2015. But today, shares went up almost 4% on the news, especially because this freebie subscription idea was all part of a bigger plan to help the company grow and make it more profitable. It’s also a major reason why the site dissed IAC’s HomeAdvisor’s bid last year. Angie’s List found the $512 million, $8.75 per share bid a lowball offer and said it undervalued the site. According to CEO Scott Durchslag, who has held his post for just six months, the current model made it harder for the company to grow. Besides, the company felt that millennials aren’t going to bother paying for reviews and it does seem to be all about those pesky millennials lately, doesn’t it? Angie’s List did have to revise its full year guidance and now expects to take in between $345 million and $355 million when analysts were expecting numbers closer to $362 million. The reason being is that 20% of the company’s revenue comes from those subscriptions. However, the company now figures that, going forward, it will be able to hit $750 million by by 2020. Angie’s List brass are expecting to “see traffic explode” under this new model.” The site currently has approximately 3.3 million subscribers but expect that number to catapult real soon.