would you have any interest in buying all or part of spinco?> we don't anticipate entering into an agreement with yahoo or spinco. this is something that is the right of yahoo to do. their bored has obviously decided to do the spinoff. from our interspective operating the business day-to-day, today we have a 15% shareholder in us, yahoo. after the spinoff we'll have another 15% shareholders spinco. it doesn't really change anything from our perspective. but i would like to just take this opportunity to thank marisa mier and also jackie resus, who has been on the board of directors until the i.p.o. they've been great partners with us over the last couple of years. >> joe, i know you're a great deal maker, you have made lots of deals for ali baba. is yahoo on your radar at all? can i ask that? >> we are very focused on our business in china. if you look at the deals we do in terms of investments and m.m.a. activity, over 90% of them are focused on how we grow our user base, how we increase user engagement and how we expand our categories in china

you got do this and she produced and created this spinco.y similar to what all the activists wanted to do for a long period of time. i would say that's cooled the seat for now. >> she brought the focus saying now let's look at the metrics, haven't been good. the next quarter is definitely the make or break quarter in terms of turning them around. >> coming up, carl icahn joins us to discuss apple's record quarter and he owns more than $5 billion worth of that stock. he joins us as well with his son brett icahn and co-portfolio manager dave schecter as well. how low can they go. treasury yields near a 20-monthp low ahead of the fed statement this afternoon. oh, yeah the fed. we're going to hit the bond pits for the trade there. and movement in our leader board for trader of the year. the earnings whip sau taking full effect this week. stick around. our reigning champ is making a trade. joe terranova is making a trade today. find out what it is. coming up. ter terranova's trend, sector shifts and money moves. joe is keeping you ahead of the cu

those are your top headlines. >> spinco?ecause it is being spun off or because the spin they are using surrounding it? >> because it is being spun off. >> brian weiser. we understand digital advertising better than we had before whenever you come on the show. i want to start from scratch. i am a company and i make widgets. how do i go do that? >> you would start with the in-house marketing department and figure out what your marketing department could do themselves versus what an agency could do. what is better than what we are doing now? it is always a process of what is better than what we just did to sell what we are trying to sell? >> if i say there is data out there. you talked about salesforce.com. they offer a software solution. but your point is that these software suites are not worth anything unless they include customer analytics. >> right. the most important layer of data is the analytics. salesforce.com, oracle, adobe are really focused on that. that is the most important thing to start with. >> who is getting i

the new plan spinco will include that stake and active trader business.s to be in there to continue to make it tax-free to yahoo! shareholder transaction. after that what do you get. >> yahoo's! a pure play on what it currently is core business and don't forget the 35.5% stake in yahoo! japan, worth $7 billion. it is, of course the focus on the spinco that has the stock up and perhaps for good reason. it's not going to be completed until the end, let call it of this year. in fact it won't be unlocked on the shares until i think september of this year. they're expecting the spinco will be ready by the fourth quarter of 2015. when it is it will trade independently with its own board of directors. it will reflect the value in its 384 million shares of alibaba. it is expected to trade at a discount given the fact unless it were to sell shares back to alibaba any sale of the shares would be a tax -- taxable event. so you will have some slight discount. as for yahoo! itself well now the focus will really be on the core business. of course, still going between n

liz: they're calling it spinco. wires are calling it spinco. distributed prorated to yahoo! shareholders. remaining shares, david they will have will be worth about, you see that. this is 384 million shares of alibaba. $40 billion. david: again, when stock is so focused on something that it owns and the questions how that will be turned into cash or used as investment you wonder whether the focus is on the financials rather than the actual products they produce. and, drew, that is very different situation from apple where the focus is directly on their products, on what other products they may be getting into. >> yes. i mean that's obviously a it did scenario with what we liked again as i mentioned before, we like the tech stocks, the tech scenario of the so we do own the iyw etf as far as tech stocks. that will help us. liz: larry, what are your thoughts on this because you know this story? >> yahoo!, front and center realizing tax ownership. some people think it is worth $20 a share to the stock in net. i don't know if $20 less or $20 more. at end of the day i'm neutral on

i think the spinco is really what you wanted. p. >> i don't think there are that many more levers to push, but i do think here you're getting the core business for effectively nothing. so the down side, although you will see it again, is limited. takes h has it has been for a couple years. >>> coming up, a strong u.s. dollar might be derailing the mar get, but is there a way to profit. we needed 30 new hires for our call center. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2. >>> time for big mover of the day. >> 1 million s

announced a tax free spin off of its stake in alibaba, putting them into a newly registered firm called spinco profit and sales estimates, adding more customers than expected. caterpillar's disappointing

. -- called spinco.artha meyer has been under pressure from activist to find some kind of value in the alibaba asset and turn more money to shareholders. the news has yahoo! shares rising in after-hours trading big time. even as the company reported the rest of you who saw a 2% drop in sales and a 52% drop in its fourth-quarter profit. what took so long? spin it off? that's it? >> i think they had a great outcome. it couldn't have turned out any better for yahoo! investor. it will beg the question which is what happens with the fundamentals once the spin runs its course? give yahoo! credit -- that a tough challenge and hit a home run on that perspective. >> since can goldman is a big golden state warriors fan, we are going to call it three points. when you look at the deal, what jumps out at you? >> there's no secret that yahoo! is taking alibaba and yahoo! japan together is worth more than yahoo!'s market cap will stop investors are not happy with that. i think this is a partial surrender by the managem

they will spin it off in a company called spinco. they will avoid a $14 million tax.arissa mayer said it a lot of thought went into the decision. >> after an exhaustive review we are pursuing the transaction we believe maximizes value for our shareholders and optimizes transaction efficiency and certainty. >> ali baba and yahoo! -- she calls it an exhaustive review. it went on forever. they have spent so much time and money. take a piece of the yahoo! business and spin it off with the ali baba shares. >> the irs is ok with this. this is a new way of saying we can take this state we have and make sure -- shareholders happy by not having this huge tax. they had the ipo last fall and took a big tax and investors do not like that. >> the spinoff is fairly simple. as a citizen of this great nation, wanting my roads and bridges and schools to be better , missing $14 billion in revenue is fairly amazing. >> it's a lot of money. >> even to me. >> exactly. a lot of questions out there about how we do our taxes. how did we lose this $14 billion? it is not the first time it has

stock in the new publicly traded company called spinco is expected to be distributed to yahoo! investors by the end of the year. what's key about this deal is that it's tax free. about the money. that save shareholders $16 billion in tax costs. >>> we're going to take a short break now. just ahead, a somber anniversary in eastern europe. powerful images from poland 70 years after the liberation of the auburn wis death camp. -- the auschwitz death camp. hi, tom. hey, how's the college visit? you remembered. it's good. does it make the short list? you remembered that too. yea, i'm afraid so. knowing our clients personally is what we do. it's okay. this is what we've been planning for. thanks, bye. and with over 13,000 financial advisors we do it a lot. it's why edward jones is the big company that doesn't act that way. >>> beautiful words at the site of horrific tragedy. auschwitz survivors came out on tuesday to mark the 70th anniversary of the death camp's liberation. >> while atrocities were front and center at the gathering, current event were not far from the mind. some imag

after the spinoff we will have another shareholder, that is the spinco.t doesn't change anything from our perspective. i would like to take this opportunity to thank marissa mayer and jackie races, who has been on our board of directors until the ipo. they have been great partners with us over the last couple years. >> i know you are a great deal maker, and you have made lots of deals for ali baba. is yahoo! on your radar at all? >> we are very focused on our business in china. if you look at the deals we do in terms of investment and m&a activity over 90% of them are focused on how we grow our user base, how we increase user engagement, and how we expand our categories in china. with a limited activity that we do outside of china, it's very much focused on the cross-border trade, always with one elg in china -- leg in china. that is how to enhance our ability to serve small businesses to sell chinese businesses to sell to overseas consumers and more so now how to help small businesses from around the world, including u.s., to sell to chinese consumers. o

first, yahoo shares saw 8% -- stocks in spinco is expected to be distributed to yahoo by the end of thisr. and the key to this deal is it will be tax free which could save shareholders $16 billion in taxes. apple has posted its biggest quarterly profit ever. and this is the biggest quarterly profit ever for a publicly traded company. $18 billion over the last three months. it came after selling a record number of iphones. david mckenzie shows us how china is playing a large part 234 apple's success. >> reporter: china has shown how crucial it is to apple. analysts say there are two main reasons that apple is doing so well this china with its iphone. first, they finally managed to do a deal with china mobile the world's biggest cell phone carrier. and it's the immense popularity of the iphone 6. chinese customers are still willing to pay premium prices for their smartphones. the performance of the iphone is worth the price, he says. by now, we are all used to the operating system. so we don't switch brands. my dad bought me the iphone, he says. i like it. apple is aggressively expanding i

saying ally be baa has not retained any advisers to evaluate a transaction and no talks before this spincolan was announced, though some investors say why not reduce the flow, but it seems that they're just focused on letting yahoo do what it needs to do and the fact that this will still be a 15% shareholder no matter who it is. >> look, this is a case where you can be opportunistic. it's still going to be a lot of cash to buy it. sit around, wait until a stock is clocked and use your massive cash flow to pick up shares on the cheap and go forward. certainly a much easier transaction than having to buy yahoo, which would have gone through all sorts of regulatory issues. much easier for them to do it. >> there's still some time for them to evaluate, but nonetheless, an interesting comment. let's move on to facebook. those shares have been mixed throughout the morning. they started the pre-market in positive territory. and this came after profit and revenue topped estimates largely thanks to a jump in the growth of mobile advertising. our own julia borsten spoke exclusively to sheryl sandber

its remaining stake in chinese commerce giant alibaba into a separate publicly traded firm called spincooo won't have to pay taxes on that $39 billion stake. the company also topped earnings expectations but its stock is up on the spinoff of that remaining stake in alibaba. the dow lost almost 300 points yesterday on weak earnings reports including microsoft. today earnings are looking better and that's helping out. let's check the big board see how we're doing so far. the dow is up 54 points. that's thanks to boeing. it's up 3.5% on its results. nasdaq up 44. apple is up 7.5%. s&p up 8. yahoo shares up 4% in the early going. >> all hail apple today, i goes, right, huh? >> impressive no doubt about it. >> i guess. 18billion. thank you, jason brooks from kcbs news. >>> 6:45 now. time for a look at what's coming up later on "cbs this morning." >> gayle king is in new york with great information. >> reporter: good morning. we're in boston and along the massachusetts coast where they are starting to dig out. they got a lot to dig out from. plus, a backlash over the end correct forecast here

they're transferring more than 300 million shares into the unit called spinco.nvestors get what they wanted from yahoo!? joining us are martin internet analyst at rosenblatt securities. good to see you again. >> good morning. >> so much praise for the tax efficiency and beauty of the tax structure, even as people continue to drill down on the core business with even more criticism. where's your head? >> yeah. there's a actually of teal tail of two stories. a lot much pushing the activist shorter term investor side. we have that done. it's a process irs approval but i think it will get done by the end of the year. put that aside. the core business is stagnant. marisa and others on the team refer to it as stabilize, i have stagnant. it's challenged. display advertising really the crux of the business, pricing was down for the third straight quarter, 20%. they just don't have the pricing power to price premium ad inventory. as you go forward this year, you talked about the on the show, may ven, their new acronym, mobile, video, native and social, they're going to t

those shares worth nearly 50$50 billion will be traded to a new company called spinco. you own yahoo! watch that one today as well. >>> "early start" continues right now. >>> the northeast digs out. some areas just smacked with catastrophic deadly snowstorm. overnight, the last of the travel bans lifted. airports slowly getting back to business but it will take cities time to clean up from this mess. we have team coverage from the places hardest hit and also talk about what comes next. good morning. welcome to "early start." i'm christine romans. >> i'm john berman. breaking overnight, the northeast starting to dig out from this huge, deadly blizzard. record-breaking snowfall. we're talking three feet in some places from long island new york all the way up into maine. catastrophic flooding in massachuset

doing the math and saying if we apply 10%, 15% discount to spinco, where they're putting the 384 million we take what the worth is of their stake in yahoo! japan and discount that the core business is valued at nothing or negative. >> true. >> and so -- >> true. >> you've got a couple of analysts coming out and doing the math. yahoo! shares up a half a percent. >> i'm with them. the problem -- your interview with jerry tsai. >> joe tsai. >> talk about the government i mean the government, the government, what a poorly-timed -- the government's savy -- what a poorly timed release of the investigation. they knew it in july? >> they came back very combative, alibaba and the paper has been withdrawn now from that. >> look, alibaba is not as bad as the stock. but there is a big expiration. i also -- a lot of people felt that you would see much better mobile. mobile's everything. if you go google google is mobile king. facebook loves mobile. make more money on mobile. mobile is everything. programmatic -- for google -- i mean these companies, honestly, you have to be 23 to understand the power