LINKEDIN FALLS 35%
(Fox Business) – The “social media for professionals” plunged 35% to a three-year low of $124.51 in early trading this morning. LinkedIn released news that revenue for the first quarter of 2016 would be about $820 million, shy of the $867 million that analysts were forecasting.
The drop eliminated $9 billion of LinkedIn’s value, shocking Wall Street as it fell far short of expectations. But it’s not all bad news, as LinkedIn’s largest amount of revenue is its “talent-solutions business,” which mainly serves corporate recruiters. Revenue in that unit rose 45% from the same period a year earlier to $535 million.
With 414 millions users, the platform is still growing, proven by revenue jumping more that 34% to $3 billion and adjusted profit for the year rose 31% to $2.84 a year. Time will tell if competitors continue to steal pieces of the pie.
YAHOO IS CHOPPING 1,700 JOBS
(Financial Times) – Yahoo can’t get it together and now about 15% of its workforce will be jobless. Digital magazines, Yahoo Games and other properties are getting the chop as well as offices in Dubai, Mexico City, Buenos Aires, Madrid and Milan, Italy.
Yahoo’s Infamous CEO, Marissa Mayer stated that she wants to turnaround Yahoo’s turnaround.. what? Essentially she is implementing a backup plan for the already in-place backup plan, hoping to create better results. “Yahoo cannot win the hearts and minds of users and advertisers with a complicated portfolio of products and assets, especially if some no longer meet our aggressive growth goals or distract from growth products,” Mayer said in a call with analysts.
Now the question resonates, will Yahoo sell, repair itself or continue tumble until it runs itself into the ground.
MATTEL & HASBRO MAY CREATE TOY GIANT
(Fortune) – Word on the street is that Barbie, Transformers, Fisher-Price and Nerf might become one big happy family. The two largest American toy companies, Mattel and Hasbro, are reportedly talking about a possible deal to combine the two.
Currently Mattel is worth $11.3 billion, while rivaling Hasbro is worth $9.5 billion. But this isn’t how the toy industry has always been, in the past Mattel was always king, but Hasbro has been closing the gap recently. Speaking of history, Mattel previously attempted to acquire Hasbro in the 1990’s, but the deal never came together.
If the deal closes, Lego will be the only major global competitor for the two and be in a distance second place. We will see if the original creator of Monopoly can create one for itself.