yvonne: let's talk about the asian assets, alibaba one thing and yahoo japan. for them? reporter: that is a really good point. this could really get lost in the sale of court yahoo! assets. this is worth much less than the two pieces are left behind. yahoo japan in a stake in alibaba worth five or six times more than the core yahoo! assets. they will be left behind. the bedding as they will be sold at some point but will continue to operate for tax purposes. yvonne: really great to have you. great insight on this yahoo! development with the sale to verizon. the billionaire chairman robin lee has pulled up to take control of the video streaming service. this after failing to reach an agreement on price and structure. di with a look ha at why it fell through. why did it fall through? haidi: this phase courtesy -- faced criticism. there was criticism of this offer, saying it is a sweetheart deal for robert late, for him to be able to profit and benefit against the interests of shareholders, all of this coming to a head last week ended open letter drafted by a partn

stake in alibaba and yahoo japan, worth $40 billion, will remain. menting. yahoo!, it ends marissa mayer's efforts to salvage the company as a standalone and ends months of alternative searching. for verizon, it is a clear strategy shift. analysts say they are trying to monetize wireless in a new way. advertisersrging for eyeballs. horizon will keep yahoo! in tack to -- in tactic to compete with google and facebook. it could will -- well into the reign of marissa mayer. stocks for both companies gained 1.5% of the close on friday after bloomberg news reported the deal was close to completion. it comes to years after campaigning for changes that yahoo! began. yvonne: thanks so much. speculation could be over soon. next, hillary clinton's turn to take the political spotlight this week. we will be live in philadelphia as the democrats gather for their convention, but we could see disarray. this is bloomberg. ♪ yvonne: it is 8:30 a.m. in singapore, a half hour away from trading there. you are watching "daybreak asia" . ♪ happy monday. i am it yvonne man.

anyone that wants to come into yahoo japan will have to navigate around softbank. ank controls the border and gets to say what happens in the future. yes, you's state will remain with yahoo!, but it is not clear who wants that asset. rishaad: it does seem that yahoo!'s remaining assets will remain, for the time being, with the holding company. they also have a big stake in alibaba, which has a stake also. >> you are going to be very close to softbank if you're going to be investing in the remaining company. i think there is intellectual property that will be left over also. marissa mayer has cap this deal selling the core assets to verizon and unifying two of the early pioneers of the internet, yahoo! and aol. verizon bought them earlier. aol, that is not exactly a winning company. yahoo! has not been a winning company, so perhaps we can get these two, what do you do when you put them together? >> they have been struggling. they have been struggling to compete with google and facebook on online advertising. they are two companies that have their best days behind the

will hold stakes in alibaba and yahoo! japan.may lower its us or -- ryanaireakening may lower its forecast amid weakening travel. latest quarterhe increased 4.5%. william hill may be facing a takeover. have confirmed they are evaluating a joint offer. about 3r could be worth billion pounds. francine: a suicide bomber has wounded at least 12 people at a music festival near germany. he had been denied asylum but was allowed to remain in the country. the explosion follows another attack overnight. talk about the security situation 98 europe and what the state of attack means for the government. thank you. onish we were speaking better circumstances. different attacks for reasons. anythinge not seen like this since the days of the red army faction. this is something that has shocked the country. it affirms the worst fears about what might happen as a result of the open door refugee policy. say the horrible shootings on friday, the perpetrator of the attacks was a german nats -- a german national. there are important distinctions to b

you will continue to hold stakes in alibaba and yahoo! japan. check out this chart. king about, what are the valuations of you who? -- of yahoo!? this is verizon in the blue and yahoo! in the white. in the late 1990's, yahoo! was more valuable than verizon. since then, you can see the doldrums within yahoo! has remained. alibaba holdings are in and yahoo! japan. the core business is worth less than $5 billion. it shows you the turnaround and the lack of competitiveness. let's get to alan higgins from coutts and co. you like verizon. is this a good addition? alan: well, i don't know about that. i like it in terms of its dividend profile. if you pull up the screen, you can see that it yields over 4%. it is the kind of stop that has really been in demand, both in the u.s. and globally. that is the kind of stuck we like. an extreme version of that would be companies that have increased their dividend each year over 20 years in the states. so, to give the a lot of buying power, especially with stock. that is a very incredible chart that goes back to the tech boom. guy: we

will be left with stakes in alibaba and yahoo japan. e two together are worth 40 billion based on current stock prices. is $37.5ock cap billion. before markets opened, we might see yahoo! and its long struggle as an independent company. we reached out to both companies and they declined to comment. , bloombergto turkey was able to speak with the prime minister on sunday. he rolled out the possibility of early elections. primeked about plans to the economy, multibillion-dollar infrastructure fund, to keep growth on track could have a listen. saying to global investors, this has come and gone, and the national will and the will of the citizens has destroyed the plotters. life is back to normal in turkey. you can continue your long-term investments and we will it eliminate obstacles before you. we are laying out the turquoise carpet in front of investors and have all kinds of tax incentives come investment incentives, and we are giving priority to value added investments. of thatn the back carpet, were looking at the lira trading at 305. as

it will be a holding company for its stakes in alibaba and yahoo japan. ceo marissa mayer is not expected to stay on after the deal is completed. >>> other news this morning, tesla and solar city, close to a merger agreement. elon musk is the largest shareholder in both companies. reuters reports that the two companies are in the final stages of carrying out due diligence on each other. last months tesla made an all stock offer for solar city worth $2.8 billion. solar city formed a special committee to evaluate this bid but not publicly responded. >>> shares of nintendo slammed in asian trade overnight. the drop after the company cautioned pokemon go would have a limited impacts on earnings. the stock closed down nearly 18%, the most allowed by daily limits. it was the worst day for the stock since 1990. but even with today's -- the nintendo shares are up since the game launched on july 6th. >>> to philadelphia, the big story this week in the u.s. a number of big political stories as well to get you up to speed this morning. democrats are preparing to open

yahoo japan to settle that weaker.hat weakness coming through from hong kong, taking some shine of the overall regional index. more onnow, you can get this interested in news in our digital destination tailor-made for the middle east, you will find reports in market leader from the region plus you can watch all of them reports, interviews and special content only available online. angie: later in the show, , mike rossthe brexit to chengdu for the latest. plus the outlet for a post-coup turkey. the ceo of do a group joins us next. this is prepared ♪ the company plans to boost staff by about 5060 people this 50 year and that will include hires for the underwriting busyness. a japanese company wanted bigger slice in managing deals in the last fiscal year. iron sure has filed for an ipu in the u.s. after concerns were raised about their parent firm. the insurer has been for that initial offering of 100 million dollars, or proceeds going to the chinese conglomerate who bought it last year. outlooke had a negative last month

yahoo will continue to hold stake in ali baba and yahoo japan.he israeli founded 888 holding are considering a joint offer. sunday times in the u.k. saying the time could be worth around three billion pounds. that is a bloomberg business flash. anna and manus. anna: thank you very much. the company is keeping its 2016 outlook and joining us now for his first interview of the day is c.e.o. franz van how ten. tissue outen. -- vanhoudten. what worries you at the moment? >> we only have to listen to bloomberg news to hear all about it, right? you know, we see brace basically volatility all over the world. in the middle east, brexit, elections coming up in the united states, maybe a positive is that i see china growth coming back. we had definitely also had a good growth quart for the china. but overall the world is a volatile place and that's just the reality. at phillips remain focused on our own performance improvement an i'm indeed happy with a solid quarter of both growth and profit improvement. manus: you talk about an unchanged outlook for 2016

.>> reporter: and the steak and allie baba and yahoo japan, the holding firm with a new name, and we are live in the newsroom, kpix 5. >>> shareholders, stocks down 104 points after the market opened after the fourth consecutive week of the games, s&p setting a new record high in the dow is close to the high. >>> nintendo fell to 18% after the company said that the impact of the wildly popular pokimon go game will be limited, and nintendo only owes 32% of the pokimon company in shares of by more than 60% since the game was released. >>> at noon, getting our first look at the man that threaten to behead the san francisco police two, donald eric hoganson arrested last monday, and he posted a racist tweet showing toney chaplin and a sign reading, "white trade only." they are trying to crack down after one of their own was targeted in an attempted shooting, and after a traffic accident.>> what is the occasion?>> i did just got shot at. >> a recording of the sergeants plea for help while in her suv and told the dispatcher that someone walked up and began firing shots on saturday night nea

alibaba, yahoo! japan, and a portfolio of patents the that is still up for sale. that could fetch as much as $1 billion, the not more. a little more guessing about where all of this goes ultimately, guys. >> i think it's fascinating, andrew, that marissa mayer wants to stay on. does that have anything to do with the fact, if booted, i think she gets a $50 million payout if that's a result of the deal. >> $57 million is what -- >> but who's counting? >> -- is what her severance deal is worth. all in, if that were to pass, she would get about $218 million for the last four years in office. i think, genuinely, she would like to stay. i think, genuinely, she wishes she could have a couple more years to see this thing play out. unclear, however, of course, whether tim armstrong, friend or not, will have her on. maybe, perhaps, she stays for some period of time. we'll see. >> but you're saying, andrew, his decision to keep her on or not is $57 million decision? >> that is the cost of the decision. yes. >> yeah. you know, the metrics involved in the history here, when yo

is selling everything but a 16% stake in yahoo! japan. tesla is upgrading autopilot systems. been working on the systems since may. one tesla crashed killing the driver. ceo ilaelon musk ro it could bee of a few upgrades. >>> the weekend box office, the following came in first to third. >> jill wagner at the new york stock exchange, thank you. >>> a fight to the finish. phil mickelson and henrik stenson duel it out in the british open. ♪ those germs were shared with you ♪ each year kids miss 22 million school days due to illness. but lysol kills 99.9% of cold and flu viruses. a body without proper footd needssupport can mean pain. the dr. scholl's kiosk maps your feet and recommends our custom fit orthotic to stabilize your foundation and relieve foot, knee or lower back pain from being on your feet. dr. scholl's. >>> here's a look at today's forecast in some cities around the country. bulk . >>> burning a bright path through the night's sky, a space-x rocket. it's delivering two and a half tons of food and equipment in the company's first stage booster made a vertical landin

with their stakes in yahoo japan and alibaba -- it was not really clear. e had a lot of changes on the top management level and each c.e.o. had a new idea what direction yahoo should go. so at the end, a lot of turmoil and that pretty much means the end to yahoo! as we know it. >> yahoo is going to verizon apparently. why is verizon interested in a company that's not really going anywhere? >> first of all, 4.8 billion dollars, at least for verizon, is not that much money and it is not that that yahoo comes empty handed. there is content and users and the online app market where yahoo is holding 3.4%, almost double what aol holds. there are certain parts that do make sense and yahoo also comes with real estate so let's see what that is worth. we know real estate, that's where big money is being made here in the united states but not just here but, well, wall street expected the deal for quite some time so the stock of verizon did not react in a big way. yahoo lost 2.5% in value. >> thank you very much for your analysis. and staying in the u.s., when barack o

yahoo selling everything but 15% steak in the economics giant alibaba, and also, steak in yahoo, japan. brooke, jim? >> very interesting, well, jill, when i check my first driving test years ago, it was very low tech, but i understands it is going little high tech at lows in the uk. what's that all about? >> yes, parallel parking all of that, this could be a sign every things it come. driving tests in the uk will now require that everyone use a satellite navigation system in order to get a license. and the government wants to make sure that people can handle distractions, i think that makes sense. >> i agree. >> mine talks back to me, i don't know what she says, ya. >> that's okay. >> i failed my first driving test, because i did not put on the emergency brake, and it was an automatic car. so it didn't make any send to me, but i am still here and i have a drivers license, and i have never gotten an ticket, so i am a very safe driver. >> more than you needed to know, jill. >> coming up after the break, justin tells us how long the heatwave will continue. >> and of course meisha checks t

it's really about tax efficiency, it's about a spin-awspin spin-off, it's all about yahoo! japan. i own it and i own alibaba but yahoo! sum of the parts is safe to me. >> there's no denying the stock performance of verizon and at&t over the last three or four months. steve talked about these high dividend yielding names, but i've got to tell you something. at&t's quarter yesterday was a typical at&t quarter. there was nothing spectacular about it, yet both these stocks, verizon and at&t have broken out significant to the upside. why? because it goes back to what steve has been saying for a while, they both have ridiculous dividends. i think that's the wrong reason to own these stocks and at some point they come ratcheting back down to where they were back earlier this spring. but right now the rallies are intact for both of them. >> in the meantime the ceo of starbucks, howard schultz, using some very interesting words to explain in part why his company's results were so lackluster. take a listen. >> there's no doubt that we are navigating through a very unusual time of a confluent

is in part of what we informally titled remainco is our holdings in alibaba group, holdings in yahoo! japanave a few smaller minority stakes that will remain behind a patent portfolio that we've entitled excaliber the noncore patents. verizon will get a license to those patents but actively looking at how to invest, monetize and lock the value in those patents. and our cash. we wi will stay behind. that company will become a company that upon the close of the transaction will be renamed and it will be transition to an investment company. >> miss mayer, you're clearly a big winner. there have been reports you make $218 million on this. is this a good opportunity to just be able to kind of go into the sunset and do a foundation? that's an awful lot of money and good opportunity to do charity. >> i think that what motivates me is people and the opportunity to transform the world. you know, i was lucky to spend 131/3 years at google. -- 13 years at google, 4 years at yahoo! so far and these are companies that have changed the world. and they've taken the internet from government research projec

yahoo will exist only as an investor in yahoo japan and alibaba. the c.e.o.y out of $57 million. >> more breaking news from florida. two people are dead after a nightclub shooting in ft. myers. 17 are injured. three are in custody. it happened last night at 9:30 our time during a teen night at a club called club blue. the victims range in age from 12 to 27. from minor for life threatening injury. the area around the nightclub now is safe. we have new details and we bring you updates and on twitter@abc7newsbayarea. >> i am natasha zo >> i am matt keller here for reggie aqui at the democratic national convention. but, first, weather and traffic. mike? >> good morning, top of the morning, everyone. it is dry. other than drizzle that is developing inside of the deck clouds. it will bring a break from the heat. the cloud are stub on at coast at 59 by 4:00. we hit 78 around the bay. one shine and a break from the heat inland. 93 at 4:00. the heat comes back as quickly as tomorrow. sue? >> we will look at san jose with a couple of problems 101 in the northbound dire

will remain its stake in yahoo! japan and alibaba. it will plan what if it does at a later date. assets identify that verizon has. >> yahoo! gives a skill that takes us out of the millions and into the billions. combining those two is the right start for us. we have been investing in content assets across verizon. so you see as going into licensing linear content and into ownership. >> what role do you envision for yourself? -- seeing thises transaction closed, but also watching the value of our asian assets and equity space we have their. moving forward, we will figure it out. but i love yahoo!. here with some of possibilities, so much help. you wanted to restore yahoo! to greatness and build out news and original content. how do you feel about this outcome? >> i feel very good about it. i think yahoo! is a company that change the world -- changed the world. >> apple shares gaining in after hours trading with a slowdown that was not quite as bad as expected. third-quarter revenue fell 13% marking the first back-to-back quarterly sales declined since 2002. . sales beat's analyst's

if you look at the tax and if it's -- benefits for yahoo! japan billion. or there doesn't make much of a difference for yahoo! shares. david: let's assume the deal goes forward, how do assets fit together? why is yahoo! going to turn around? paul: it has been on secular decline for several years and revenue,19% decline in where world when it is 15% to 20%, so share loss has been extraordinary. you are putting it together with aol assets, another struggling internet darling of a generation past, but you are putting two very big audiences together, two big players in the media and digital space and you're putting them together with tim armstrong, who i think has done a good job turning around a well, bringing it within the verizon family and trying to leverage some of the reach that verizon has. by drinking a lot and yahoo! together -- five bring gain aol and gathered together, or ad dollars are going there and aol was one of the leaders and there are some dollars on the asset side but i think tech is a driver. advertising, mobile advertising revenu

will be left with stakes in alibaba group and yahoo! japan. ayer spoke to emily chang shortly after the deal was announced. obviously the transition isn't about being strategic for yahoo! but unlocking value for our shareholders in the remaining equity stake. opportunity to kill two birds with one stone, so to speak. scarlet: it has been a difficult right for yahoo! over the last couple of years. this deal took forever to put together. amanda: marissa mayer charge with turning this country around this company around in the best she can do is rearrange the transaction and hope she can keep her job. hit $4.5o! first billion in market cap in 1998. the actual market cap is 38 alien dollars. pretty extraordinary round-trip for that company. you think of the enterprise value they are hanging onto, it's an extra ordinary price. we will see whether aol can take another run at another future with another partner. got detailslier, we on how verizon will absorb these parts of yahoo! with the executive vice president and president of product innovation and

will maintain its stake in yahoo! japan and alibaba. yahoo!l have to decide on what it does with those at a later date. jonathan: actually identify the assets that verizon has. >> yahoo! gives a skill that takes us out of the millions and into the billions. combining those two is the right start for us. we also have been investing in content assets across verizon. so you have seen us go into licensing linear content and into ownership. >> you say you plan to stay. what role do you envision for yourself? >> two priorities -- seeing this transaction through to close but also watching the value of our stakesssets and equity we have there. moving forward, we will figure it out. but i love yahoo!. it is very important to me to see its next chapter. emily so you came here with some : of possibilities, so much help. you wanted to restore yahoo! to greatness and build out news and original content. how do you personally feel about this outcome? >> i feel very good about it. i think yahoo! is a company that changed the world. not many companies get to

>> yahoo! japan is controlled by softbank. they have a controlling stake. yahoo! has a stake that is roughly the same size. the remainder of yahoo! will hang on to the stake. very valuable at this point but hard to see where it would come in. left withl also be this stub of alibaba shares. >> you will be very close with softbank if you are investing in the remainder company. >> they invested in sprint a few years back, which is a big deal for them. rishaad: bizarrely. >> they struck their biggest acquisition ever. i don't think they have spare casts -- cash around to take extra stakes and i don't think they want any more stock. rishaad: they said look out for some more crazy ideas. this may not be a crazy idea. taking of course verizon the core business. he doesn't necessarily create a success. >> you do give the two businesses a little more scale if you are able to integrate them together. tim armstrong is a former google executive who runs verizon right now. a lot of google talent in this industry and it will give them a little more scale to compete in online me

gene: time is of the essence here because the real value is unlocking yahoo! japanibaba, in a cache-free transaction. he really need to get that done before the election. i think this is a good outcome, and obviously some of this a few have been reporting on, their alignment with verizon would make a ton of sense. seniorpiper jaffray's research analyst in munster with a target on yahoo!. one analyst will draw the connections between pizza and the presidential election coming up. this is bloomberg. ♪ david: welcome back to "bloomberg markets." -- mark: welcome back to "bloomberg markets." i am mark crumpton. we want to get back to news out of germany. a shooting, one at a shopping mall, the other near a train station. news outlets are reporting there are thought to be three shooters. three people are dead with several others wounded. it is the second attack in germany in less than a weaker it on monday, a 17-year-old ax wielding man attacked several people on a train. he was shot and killed by police. a manhunt underway for a shooter or shooters who opened fire at a

you who will continue to hold stakes and alibaba and yahoo japan.lobal demand for smartphones may be waning but while way seems to be bucking the trend. awe may be bucking the trend. it beat samsung and apple in china last year. shares surging the most in 20 years after the company said it will have a pretax charge of $716 million from its reorganization. assets andng down new store openings as part of his multiyear turnaround. early elections, saying the government plans a multibillion-dollar infrastructure fund to keep growth on track. the government did try to limit the economic fallout from the failed coup. what we're saying to global investors is this time has come and gone and the national will and the will of the citizens has destroyed of the citizens has destroyed the plotters. life is back to normal in turkey and you can continue your long-term investments. we will eliminate obstacles before you. we are laying out the turquoise carpet in front of investors. we have all kinds of tax incentives and we are giving priority to value-added invest

supposed to be fair that didn't include the alley baa baa stake or yahoo japan which is massively largedoes she stay. >> there's a big job ahead. >> i read a stat very quickly based on their users, if they manage toll achieve the shift between fixed internet and mobile, based on the generation like facebook, $2 billion of revenue. i don't think that's a proud moment. that's a shocking moment for investors. >> the simplistic view of yahoo user base is not at the cutting edge. it's people who have that system, the yahoo em they've had for years. they never took those users with them. there's still value. >> got to go, nick, thank you very much. >>> looking back at some of our top stories. >>> media set, vivendi's decision to buy the entire unit, vivendi has offered new terms to buy just 20% of the paid tv business now. 15% stake in media set to be built up over the next few years. media shares were suspended after falling to a five-month low. >>> turning to the banks, kommerz bank. the bank said valuation methodologies relating to sovereign debt and pension liabilities had hit as results.

sell the core web business like e-mail and news sites, everything but the holdings in alibaba and yahoo japannvestors led by the quicken books founder, at&t, and others are looking to see if they had a high enough bid to get the deal. >>> volkswagen plans to compensate the u.s. dealers for the damage from the diesel emissions scandal that burst on to the scene last september. volkswagen has settled a deal with the customers and government but are trying to figure out how much to pay various owners. it involves up to half a million vehicles in the united states. >>> wall street off to a quiet start but it had a big week last week. several times, the dow and s & p closed at all time highs. the dow has started out a little bit in the negative territory today, and at the moment, it's down 20 points and nasdaq up by 2 and the s&p is lower by 1 point. michelle and keny? >> jason brooks from k cbs radio, thank you. >>> and the republican national convention gets underway today. >> melissa caen joins us from the center of the political university this morning. -- universe this week. good morning. >>

yahoo will keep the stake in chinese retail giant alibaba and yahoo japan.issa mayer said she is staying. >> two people are dead. up to 17 are injured. there was a shooting outside a fight club in ft. myers, florida , at an event for teens. three are in custody. authors in texas sent for whoever funned down a deputy in his home in round rock. the it is believed he interrupt add burglary. >> troubles dnc chairman debbie wasserman-schultz was booed at a breakfast to kick off the democratic national convention. year, she said she is resigning after the e-mails showed they conspired to sabotage the campaign of bernie sanders. >> in novato a car rammed into a senior center on hill road. no one was inside the building. the driver was arrested and taken from the hospital. police are ticketing a d.u.i. investigation. >> six, "spare the air" day, we have to be careful with the air quality, and the sea breeze will pull back the temperatures chipping away over 90s inland to 60s at the coast. >> seven, we are following the monday morning commute with metering lights on

and then we'll see what happens with yahoo japan. soft bank has the majority here and it makes a lot of sense for them to buy it. but it's a captive seller here. for anybody else, it doesn't really make a lot of sense to deal with -- in the -- >> fair enough, we appreciate your perspective this morning. thanks for coming in. >> thank you for having me. >> thank you. >>> coming up, fireworks in the philadelphia at the convention and it hasn't even started yet. an e-mail scandal is forcing dnc chair debbie wasserman schultz to step down after the convention is over. we will head to philly for a live report next. and will the russian olympic team make it to rio? that story is straight ahead. squawk returns in a moment. first, this day in history. it's time to discover that in a lexus suv... ♪ ...there's no such thing as adverse conditions. ♪ come to the lexus golden opportunity sales event this is the pursuit of perfection. hall of fame weekend for major leaguers. ken griffey jr. and mike piazza inducted into the hall of fame. 630 home

yahoo will keep the stake in chinese retail giant alibaba and yahoo japan closing next year. >> fromrida, two people are dead and up to 17 are injured after a shooting outside of a nightclub in fort myers as parents arrived to pick up their children from a teen event. three people are in custody of the >> the search continues for the person who opened fire on an oakland police sergeant after she crashed her vehicle she was fired on. other police departments are on heightened alert. >> the fire is raging out-of-control this morning with one person dying and 33,000 acres have burned and 20 homes are in flames. >> democrats home the resignation of debbie wasserman-schultz will not distract from the cause as the convention kicks off tonight with major had lineers including bernie sanders. >> the big story weather-wise the break in the heat inland with walnut creek at 100, and only 88 today. unfortunately, we cannot get used to it, more sheet ahead. >> we have no major stalls or accidents. that is good. but it is getting busy. we will follow for the morning. >> and driverless transit will

. >> roughly a $30 billion stake in alibaba and $9 billion in yahoo japan.al market cap around 36 billion, meaning investors are signing no real value here to the core business, so what happens next, does alibaba step in and buy back its stake at a discount? is soft bank a natural buyer for japan, either way suntrust bob peck tells me he thinks monetizing those stakes could be a long complex process. that's why he recently downgraded yahoo from buy to hold. >> thanks so much. josh lipton on yahoo. we'll watch that earnings report i guess this afternoon. ultimately. >> ultimately everyone just cares about a buyout. >> exactly. >> so aside from all of that we're also keeping an eye on two other big tech companies set to report their results tonight. that will be netflix and ibm. let's talk about both beginning with big blue. dan morgan and ibm shareholder, dan, how long have you been an ibm shareholder? >> we've held ibm, brian, for really since i've been with the firm which has been 12 years. it's been a staple on our equity income model, which is our dividen

million of that, they're almost one-time costs are multiyear revenue that will go away ultimately, yahoo! japan, ip, licensing, about $300 million. you're at -- $400 million, $450 million of ebitda. there's nor number. but it is yahoo!. there are potential buyers that have synergy and might pay up a little bit for that, but i have a hard time seeing this thing getting beyond that $5 billion number, even though i think it's a fantastic asset and would love to have stayed. loved to still be there, but, you know, a lot of work ahead. >> so many questions for you. how high were you willing to go? >> well, you know, i was part of a group that bane capital and vista were doing the work on. and you know, i think they believed, very sober and rational about the asset. they bid a number they believed to be fair and something they'd be comfortable getting behind and it wasn't something the company thought was in their realm. i really can't say the exact number. i won't say the exact number, but i thought it was a rational and sober number. >> i'm just going to assume, i mean, it's going to be, you know,

as a holding company for its massive investment in chinese e-commerce from alibaba and also in yahoo japan"wall street journal" reports that pan dara re-- pandora rejected a takeover from liberty media the owner of the sirius satellite service. the journal also says that pandora is not opposed to a takeover as it approached apple and amazon earlier this year about a potential buy-out but so far nothing has happened on that front. stock market opening pretty flat this morning after losing a little bit of ground yesterday snapping the dow's string of record closes. let's go to the big board and see how we're doing so far this morning. the dow is lower by 10 points. nasdaq dropping 2. the s&p down by 1 point. anne and kenny, back to you. >> thank you, jason brooks from kcbs radio. >>> time check, 6:46. let's check traffic with gianna. >> and let's start off on 24 this time around. couple of accidents double trouble westbound at lafayette. a few delays through the caldecott tunnel. southbound 680 towards 24 through walnut creek is a little slow some slightly slower speeds through there. meteri

gene: the best framework is to just sell the core and that leaves alibaba and yahoo! japan.it goes off as tax-free -- which is the goal -- that adds $16 to our $40 price target. so i think that really is the hope here, to essentially sell the core and you are left with these two valuable pieces -- alibaba and yahoo! japan. alix: what we learned yesterday is that it is less bad. much less than some estimates. how is the core doing? well, the display is down 3%. is down 15%usiness so not very well. ultimately, i think it doesn't matter. they made their numbers and maintained the numbers, the first time they have done that in a long time. so i think we have to give yahoo! credit that they are meeting numbers. if you look at the stock, it looks like it was somewhat anticipated, given the recent move in the stock. jonathan: to wrap up the yahoo! story, it might be likely to 500 millions than dollars. how much of a disappointment is that and how much is it a consequence of how long it has dragged on? gene: don't think that number is a disappointment but the election piece is a hug

>> so what happens to that is, actually, you'll get yahoo! japan, you'll get alibaba, the stub.stment vehicle, so it's going to have some cash there, some non-core patents. getting back to a point earlier, verizon should be able to monetize a lot of these assets too because look at yahoo! right now. they're only getting 10% of users are coming back on a daily basis as opposed to facebook which has 65% of people. they can start increasing that. so as they start getting to that, i think verizon will really play well -- liz: okay. peter, you worked for her. you worked for. martha: race saw meyer. you've got to tell me if she's on planet x somewhere thinking she's going to be invited to stick around, because she may want to tick around, although i don't believe that because she's got a $200 million buyout to. tim armstrong, who runs aol and is now at verizon, i don't think he's going to step aside for somebody like her. >> no. i think tim armstrong's been obsessed with yahoo! for a very long time and hawanted this acquisition even before aol bought verizon. so now that he's done it,

if you look at the tax benefit for yahoo! japan and alley bubba. baba -- alillie baba.does not make much of a difference. alix: where does this leave the other bidders like quicken loans and dan gilbert and the other p/e firms? will we see more mergers in the tech space? >> i think so. ad teching in broader has been a big disappointment. those companies have disappointed and the stocks have disappointed but you are starting to see some consolidation. it started with aol a couple of years ago. you could see more of that. ultimately, i look to the company that have been left out. yahoo! is a unique asset and i could see them doing other given that there has been so much carnage over the last two years. yahoo! stock is up by 17% for the year. rate yourve to re- stock while we wait for the deal to close? >> we feel good where we are at. we have a $40 price tag which is where we are at. is that if important they do this transaction, i valueit increases $15 in on a tax-free basis. we talked about that being upside to the share price. you own this in anticipation that this end

step for shareholders in terms of finally taking the step of separating our alibaba stake and what yahoo japanrom the operating business is an important step to unlock value for shareholders. >> we also heard from marny waldin, verizon's executive vice president. >> yahoo gives us scale, and that's what's most critical here. we go from being in the millions of audience to the billions. and we want to compete. and that's the place that we need to be. so very pleased with where we are today. >> now, let's bring in our own julia boorstin with more on the deal and what it means for the ad wars. julia. >> well, brian, this deal's all about ad technology. tools for marketers to determine what types of ads to buy, what kind of message to create and to automatically distribute and target those ads with tools to measure their impact. verizon with its aol acquisition and yahoo own complimentary tools and they both bring scale in users and data about those users. which enables more accurate targeting of a broader audience. now, in terms of scale, yahoo's web services still draw about 1 billion monthly us

the yahoo! japan stake had to be monetized.any had a sea of value hidden by giant valuations of cash in the alibaba stake. they could not selloff the alibaba stake. for many years. meanwhile a lot of the cash was depleted through acquisitions that seemed to go nowhere, most notably the tumblr acquisition. meanwhile, the similar amount was spent by facebook on instagram. has done nothing. instagram has taken off under facebook's tutelage. the lack of cash and the waste of time our problems. david w.: thanks so much. that is cory johnson joining us from san francisco. coming up in the next hour, tim armstrong, the ale well ceo, weighs in -- aol ceo, weighs in. alix: coming up, it is alix steel versus joe weisenthal. we are going to debate. this is bloomberg. ♪ david w.: this is "bloomberg ." it is time for battle of the charts. joe weisenthal is up against alix steel. joe thank you, david. i'm looking at a fairly remarkable chart. this goes back a year. this is the yield on the u.s. 30-year treasury, which has been absolutely

the discount that trades to alibaba when all this is said and done, and what they do with the yahoo! japantake. not to mention shareholders want to know what will you do with all the cash, the cash you received from the sale of the core business and $7 billion on your books at yahoo!. a lot of questions still to come. this could take six to nine months is what i'm hearing before close. >> the announcement could come -- stew could negotiate a brexit sooner than na. >> you announce the deal but all the regulatory -- you know how long until the close. >> the the announcement. >> early next week. >> no price. >> maybe we'll have it before the end of the show although i'm leaving early. >> snee >> roger ailes departure from the fox news empire he created and what the future holds for 21st century fox. an exclusive with lieu lu lemon ceo as the company is locked in a battle with nike and under armour. another look at futures this morning. a lot more "squawk on the street" live from post nine after this. ose new glasses? they are. do i look smarter? yeah, a little. you're making money now, are yo

will maintain its stakes in yahoo! japan and alibaba.ate goes to verizon to be lot -- to be combined with aol. david: can he gives a timeline between now and closing the deal and what obstacles there might be? alex: there will probably be relatively few. this is a similar deal. in many ways, you can look at this deal as a sort of years after the fact merger with aol. instead of the rise deal, you could see this as an aol deal. tim armstrong will run this combined company in theory. aolo! acts as a python for advertising technique -- as a platform for aol advertising technology. you can use a wells at technology, therefore you have more reach. the kospi give tim armstrong, we spoke to him earlier. >> you are going to go everywhere from mobile video, incredible content from the nfl and nba come all the way through we will be -- serving over one billion consumers with some of the best brands, some of the best partners, some of the best ad tech in the world. what brought this to pass? you thought verizon had the inside track. what gave them

while they have lost much of this lost her, they must realize that the yahoo brand still has an online audience and it is strong in japan and europe. >> we will be crazy to not keep the yahoo brand. it has too much brand awareness. too many users, again, i don't believe they will do anything to rock the boat. verizon also allowed the huffington post to keep their brands as well. but the big question, how will all of the young to -- yahoo content mesh with aol ? today, i depend on yahoo especially for content. i'm not worried that i will be watching closely.>> what will keep you using yahoo ? >> a seamless marriage hopefully. and with that said, no major flaws. >>> there are teenagers struggling to make sense of a deadly shooting in florida. 2 teenagers were killed when gunfire arrested outside of club blu in fort myers. it happened as parents are picking up their kids from a party. witnesses say the gunman was armed with an automatic weapon. >> it was like a machine gun. >> it was like firecrackers. >> they have three people in custody and are looking for more. no word on a motive. but they have ruled out terrorism. thi

yahoo left. it has massive investments, including in japan. when it deal closes, yahoo! name and essentially become a holding company for those investments. wall street today is coming off a strong week and mixed open. let's see how we're doing so far. dow has turned negative, down by 50 points. nasdaq is also moving lower by 2 points, and s&p is down by 4 points. yahoo! shares are down. investors thinking that perhaps yahoo! could have gotten a little bit more money. back to you. >> jason brooks, thank you. >>> german police have carried out a raid after a suicide bomber from syria blew himself up outside a music festival last night. this morning security officials said they found a video on the bomber's phone which shows him pledging allegiance to the leader of the islamic state. they found gasoline, chemicals and other bomb making materials. the 27-year-old had previously been denied asylum in germany when he was not sent back to syria. he blew himself up after being turned away from a music vessel. 12 others were injured. three of them seriously. >>> today a former s

yahoo!'s financial news and sports content. the japan society of engineers keeps a heritage list of products that have had a major list on people's lives. it has added seven new items to the list this year. the schlecks include this sub u subaru, 360 vehicle developed by engineers after world war ii. known as the laladybug, it was huge hit witith more than 390,0 units produced. also on the list of japan's first cash register made about 100 years ago. >>> it's time to take a look at our global economic calendar for this week. on tuesday, the bank of korea will announce the gross domestic product growth for the last quarter. the company's economy slowed in the last quarter as sluggish exports continued to weigh on growth. on wednesday, officials will release china's industrial profits for june. there will be two key central bank meetings this week. policymakers at the u.s. fed meet from tuesday through wednesday, while their counterparts at the bank of japan convene thursday through friday. also on friday, japan's government comes out with

yahoo! will change its name as it raises its stakes in japan for a combined market value of $40 billion.ree agreeing to buy a georgia-based enema for $1.2 billion. amc had to sweeten the offer after some shareholders rejected an earlier it. of aeal comes on the heels purchase of od on -- odeon. erickson is looking for a new chief executive. its departure cap's a turbulent time for erickson. the company said it would speed up costs cut after reporting disappointing results. donna karan international has a new owner again. they have sold the fashion label turn itfailing to around. the deal is valued at $650 million. donna karan stepped down as chief designer of the label she founded in 1984. vonnie: time now for our bloomberg quick take. for some of the best athletes in the world, and doping has turned into a long-running cat and mouse game. the world anti-doping agency called for the entire russian team to be banned from the 2016 olympics after its reports sochighted doping at the games. the international olympic committee decided not to go ahead with a full hand. than 50e exposed more at

yahoo went up against facebook and alphabet. two companies with superior fire power. >> she certainly made money for shareholders by holding on to the company steaks in alibaba in japan. hey, it could have been a lot worse. when you look at the numbers, yahoo is up roughly 150% since mayer took over four years ago. doesn't that matter? that is not a horrible track record. the main story is what verizon had to do. the move it had to make in order to cell more cell phone subscriptions. i have felt this way since the ceo of verizon told us on mad money he might want to buy yahoo back in february. >> why not add yahoo? it doesn't cost much. >> at the right price i think some of their assets under aol would be a good thing for investors. >> he gave me the strategic game plan and executed on it. verizon needs yahoo more than any other countmpany in the country. at&t, t-mobile and after today, sprint. they offered subscribers more than a great wireless network. we don't have the latest numbers but verizon is top dog with 140 million subscribers followed by at&t and t-mobile and sprint not far behind. verizon can't foosafford to be d to what is happening. sprint reported a s

verizon and yahoo about to announce a 5 billion deal. >>> shares of nintendo plunging in japan and it's all because of pokemon. we'll explain coming right up. >>> leadership in chaos. the chair of the democratic national convention ousted on the eve of the party's convention. a live report from the dnc in philadelphia. as well, a change begins right now. ♪ ♪ >>> good morning, welcome to worldwide exchange. i'm wilfred frost

yahoo! officials say that they will hold on to their more than 35% stake in their japanese subsidiary. >>> well, sturdy and colorful. backpacks have become popular outside of japan, but here elementary school children use them to carry textbooks and supplies, and even though school enrollment is on the decline, the market for these bags is going strong. nhk world has more. >> reporter: the new school year began just a few months ago. but japanese families are already planning ahead for next year. this department store offers 150 versions of this symbol of japanese childhood. some come in bright colors or with decorations that reflect the user's interest. others are produced in collaboration with france. the average price is about $600. that may seem like a lot, but with japan's birth rate declining, many families have more to spend on individual children. >> translator: we want to find something that will last a long time. >> translator: prices have been going up over the past few years. people care more about pleasing their children athan finding th cheapest item. >> reporter: this market has affected a luxury car manufacturer. the company rolled out its first