Wall St. Brief: Yahoo Pleases Alibaba, Chesapeake’s New Pay Plan
On Sunday, Yahoo (NASDAQ:YHOO) announced that China’s Alibaba Group Holding Ltd. bought back half of its stake in the company. This comes to about 20% of Alibaba’s equity on a fully diluted basis, priced at $7.1 billion with $6.3 billion coming in cash and $800,000 in newly-issued Alibaba stock. If Alibaba has an IPO, it will be required to either repurchase 25 percent of Yahoo’s current stake or allow the troubled company to sell the shares in the offering. In addition, Yahoo also said its board approved an increase in the size of its stock-buyback program to $5 billion.
Chesapeake Energy (NYSE:CHK) said late on Friday that its board has a new compensation plan for its outside directors. This includes a 20 percent compensation cut to an annual $350,000 in cash and equity while getting rid of the partially-owned owned plane used for personal travel. In a statement by lead independent director Merrill “Pete” Miller, chief executive of National Oilwell Varco Inc. (NYSE:NOV), he said that the compensation changes had been a work in progress “over the past year.”
Barclays (NYSE:BCS) will sell its $6.1 billion stake (19.6 percent) in BlackRock (NYSE:BLK) through an offering and a buyback by the asset manager of up to $1 billion in shares. The balance will then be listed on a stock exchange. The decision to sell the stake comes as the bank is under pressure from its investors to increase its return on equity and to meet its rising capital requirements, reported The Wall Street Journal.
Apple Inc.’s (NASDAQ:AAPL) CEO Tim Cook will meet with Samsung’s chief Choi Gee-sung on Monday in a court-ordered discussion that will try and resolve their companies’ patent war. On Sunday, Samsung said that even though “there is still a big gap” between the companies, it has “several negotiation options, including cross-licensing.”
Now that you have the morning headlines, get some investing insights answering the question: Did Facebook and Mobile Gaming Kill GameStop?