Let’s be clear on the much-awaited Asian deal that Yahoo and its Asian partners have been working on: While it is certainly still moving forward, once signed, it will not actually officially close until next year.

Yes, that’s right — 2013!

Still, what everyone and his investor is waiting for is the splashy announcement of the agreement, which involves the Silicon Valley Internet giant, China’s Alibaba Group and SoftBank, a large shareholder in Yahoo Japan.

Yahoo leadership has been hoping that could happen before Feb. 24, an important date after which activist shareholder Daniel Loeb could begin to mount a proxy fight against the current board.

And while the definitive agreement — involving the sale of Yahoo’s 33 percent stake in Alibaba and 35 percent stake in Yahoo Japan — has been moving back and forth among the dealmakers, one source said its completion might take a little longer than that, perhaps even into mid-March.

“It is one of the most complicated cross-border transactions in a long time,” said one person close to the situation. “It’s three different languages, three time zones and three companies that have not always seen eye to eye.”

It’s not that the companies don’t have the top talent on the effort. For Yahoo, it is CFO Tim Morse (who most recently also warmed the CEO seat, until Scott Thompson’s recent appointment); for Alibaba, it’s CEO Jack Ma and CFO Joe Tsai; and, for SoftBank, it is top man Masa Son and his top man Ron Fisher.

To make things even more complex, at the same time as the negotiating is going on, the trio also has to pay mind to how the Internal Revenue Service in the U.S. is going to view the whole deal.

As you can see here from a Wall Street Journal chart, it’s a pretty complicated “cash-rich split-off” to avoid taxes.

While the IRS cannot take an application for a “private letter ruling” until it has an actual agreement in hand, and will not issue one on a hypothetical transaction, the agreement still must be crafted so it is most likely to pass muster.

And only then can anyone move on to the many billions of dollars that Yahoo will instruct Alibaba and SoftBank to pay or contribute in kind for the asset part of the arrangement.

As the Journal noted, in more clarity than I ever could: “A key part of satisfying tax-code requirements is that the company shedding its shares get assets, not just cash, in exchange for them. Cash can’t account for more than two-thirds of the transferred value, tax rules say. This restriction was adopted in 2005 to limit misuse of the provision.”

While Yahoo’s execs have met about the various possibilities, it is more considering now than anything else.

And although a lot of names have been bandied about — Weather Channel, WebMD, as well as Glam Media and even Digg — the more likely direction Yahoo will go in will be different, according to many sources.

First, said sources, the key criteria for the purchase will be to diversify revenue streams, a theme Thompson sounded in his first earnings report recently. That could mean more online commerce, perhaps, rather than advertising or media assets.

Second, said sources, international properties might be more valuable to Yahoo than owning more U.S.-based ones, which opens up a range of interesting possibilities.

This could even include some already held by Alibaba, for example, such as garnering a big stake in its publicly-traded Alibaba.com. Technically, via Alibaba, Yahoo already owns some of the e-commerce giant, but not directly. Another possibility is to get back the Yahoo China business, also now owned by Alibaba.

Third, U.S. companies that Yahoo might look at could be unusual and even bold. Two names brought up in recent internal meetings, for example, were Netflix (before its stock revived) and Yelp (which is prepping for an IPO, and which Yahoo once tried to buy already).

And if things were not already needlessly complex in fixing its Asia problem, expect a change in the Yahoo board composition, too, as early as this week.

As I previously reported, at least four directors are expected to move on. More to the point, there will also be replacements announced at the same time.

To stave off Loeb and even give him a perceptible win, sources said the company is considering announcing the changes sooner than later, with the hope that fresh new members will placate other shareholders.

Lastly, with Thompson starting to take the reins after a month there, I would also expect he’ll weigh in on some significant restructuring (his word, not mine!) at Yahoo soon enough, too.

Complicated? Sure is! Perplexing even? And how! But until Asian and board resolutions, the real work of fixing Yahoo can’t really begin.

Rakuten is set on challenging Amazon’s global dominance by appealing to the third-party merchants Amazon works with today and by growing it’s digital content business to compete with the Kindle.

We recently learned about the company’s strategy through the eyes of Neel Grover, the CEO of Buy.com, Rakuten’s online shopping subsidiary in the U.S.

For now, Rakuten is admittedly Amazon’s much smaller competitor, though it is dominant in Japan.

The publicly held company is worth $14.5 billion compared to Amazon’s $85 billion market capitalization, and it pales in comparison to Amazon’s mass in the U.S. Buy.com is ranked 410th here versus Amazon’s sixth-place standing, according to Compete.

But Grover said Rakuten has a two-part plan for going up against Amazon.

First, it will target and partner with third-party resellers and merchants.

Amazon does this, too, but often ends up competing with the merchants because it has its own warehouses and products that it is selling, he said.

“Oftentimes Amazon will compete with the retailer. [Third-party merchants] teach Amazon what to buy and sell, which is ultimately not good for the merchant,” he said.

Rakuten, on the other hand, does not own any warehouses or any inventory itself and instead gives retailers — brick and mortar or e-commerce — the tools and traffic to support their own businesses.

In May 2010, Rakuten acquired Buy.com.

“I sought out Rakuten. … I thought their model was one that would give us a unique differentiator in the U.S. and we could learn and bring their model to our site and customers,” Grover said. “We are still in the final stages of transforming, and it’s taken a bit of time to get it transformed.”

But, he confidently added, “It will win out in the long-term.”

A similar approach is being taken by eBay, another e-commerce giant in the U.S.

The second part of Rakuten’s plan is to go after Amazon’s growing digital business, spanning music, e-books and other content.

In November, the Japanese company purchased Kobo, a runner-up in the e-reader race behind the Kindle and Barnes & Noble’s Nook. It paid $315 million in cash for the Canadian company.

Rakuten is banking on the Kobo in assisting with its move into providing downloadable media to consumers, starting with e-books.

At the time of the acquisition, Kobo CEO Michael Serbinis told All Things D that Rakuten will give Kobo the financial backing to grow internationally, as well as compete in the U.S.

“The U.S. is absolutely important. It’s fundamental. We have millions of U.S. users today, and we plan to grow that substantially, and internationally it represents a big opportunity as well,” he said.

Earlier this month, Buy.com started linking to Kobo from its site, so that consumers have the option of buying a physical copy of a book or a digital version. Other integration efforts are also under way.

It also wants to get into other digital content, like music. Back in 1999, Buy.com was one of the original sites to have a digital music store, but Grover said it was a pretty poor experience because of all the restrictions that record labels were mandating. A lot of that has now changed.

“We are definitely looking as a group at all digital content. … We are looking at different solutions, but today we have not continued on with our initial music store,” he said.

As with Kobo and Buy.com, acquisitions are always an option, he said.

“We’ll continue to look at everything that would make our business better. It hasn’t been shy over the past two years. We have a global vision to create an e-commerce marketplace offering all goods, and we continue to see that grow.”

And going up against Amazon, some serious growth is what Rakuten and Buy.com will need.

Yahoo co-founders David Filo and Jerry Yang

Yes, he jumped, even though being pushed was surely looming on the horizon ahead.

But the decision of Yahoo co-founder, former CEO and director Jerry Yang to leave Yahoo was indeed sudden, with the board meeting just this morning about the issue.

It was so sudden, in fact, that Yahoo’s key execs — including its communications arm — had only a few minutes heads-up to what is arguably one of the more momentous events in the history of the Silicon Valley Internet giant.

In fact, newly installed CEO Scott Thompson was in Los Angeles in a previously planned visit to meet his new staffers, said multiple sources, forcing him to participate in the board meeting from there.

As it turns out, according to numerous sources, Yang had had enough, and had finally realized that perhaps the many players in the ongoing Yahoo drama inside and outside the company had also had enough of him.

As I wrote last week about the possibility of Yang stepping down from the board, such a move of a founder from its board is unusual, although it was possible in this case:

“While Internet company founders usually stick on boards, it’s not a given, especially with all the turmoil at Yahoo, some of which is related to Yang.”

In fact, as the pressure has mounted on Yahoo to right its ever-listing ship, a lot of the rancor was being piled atop Yang, whether deserved or — in some cases — undeserved.

That’s because, even after the rough time he had as CEO of Yahoo, Yang had remained unusually active in its affairs, joining internal meetings and being part of discussions about its strategic alternatives.

And while he might protest that he was doing what was asked of him by the board, his status as the company founder made it hard to minimize his clout.

“It’s hard to ignore Jerry Yang,” said one exec. “He has an impact on everything, even if he thinks he does not.”

The recent negotiations with Yahoo’s Asian partners is a case in point. While board member Brad Smith and others have been a key part of the talks to sell off parts of its stakes there — which are critical to Yahoo to complete — execs at both China’s Alibaba Group and Japan’s SoftBank both pointed to a too-strong influence of Yang in the deal as a possible stumbling block.

Yang served on both the boards of Alibaba and SoftBank’s Yahoo Japan, so his interest would have been obvious. But sources involved in the talks would often blame him for their rocky nature and difficulty.

“Jerry just does not want to sell,” one said to me last week.

Maybe he didn’t or maybe he did, but one thing was clear: Yang had become a lightning rod for a lot of the trouble Yahoo has gotten into over the years.

That was true with major investors, who have been more loudly saying of late to its board that his continued presence was a problem. The most vocal, of course, was Yahoo’s activist shareholder Daniel Loeb, who has called for Yang’s ouster, and has been contemplating a proxy fight to make it so.

Loeb was out in Silicon Valley last week, talking to possible alternate board members, many of whom have been longtime colleagues and even friends of Yang, and took the meeting anyway.

Worse, perhaps, was the prospect that Yang has also been losing his most ardent fan base: Yahoo employees.

With all the mishegas over recent years, they had also begun to question his role as a leader in the company, many voting with their feet by leaving in droves.

With a new CEO in place, and the possible chance that its Asian problems were moving in the right direction, it had to have sunk in for Yang that it had finally become time to make peace with the present by abandoning his future at Yahoo.

Thus, he wanted to leave on his own terms, even if — in the end — the man who is most definitely one of the Internet’s most important pioneers did not have much of a choice.

That, however, is starting to change.

With the market increasingly global — and overseas players impinging on its domestic market, Fujitsu is looking overseas. And when it looks, it sees North America as the place it would most like to be.

“North America is our priority market,” Senior Executive Vice President Hideyuki Saso said in an interview at the Consumer Electronics Show. Fujitsu is also in the process of reacquiring full control of a mobile joint venture that had paired it with Toshiba in the phone business.

Fujitsu, which makes both Android and Windows Phone devices in Japan, isn’t quite sure what market niche it will target, but it is sure it doesn’t want to be just one among the smartphone masses.

“If we try to do same thing as how our competitors because of the competition, it is going to be tough,” Saso said via a translator. “We would like to identify the right way of entering the North American market that would make use of our technology and expertise to make a steady landing.”

Timing is also uncertain, though Saso said the company hopes it will be either later this year or next year. The key, he said, is to figure out where it can stand out from the pack.

“We don’t want to be just another mobile phone,” he said, “We want to be special.”

While the U.S. smartphone market is already crowded, Saso said Fujitsu has several strenghts it can draw on, including a wide range of thin, yet durable and waterproof models. Though not yet a player here, Fujitsu boasts it has the thinnest smartphone approved by the FCC for use in the U.S.

In making its phones waterproof, Saso said, the company had to also make them tough.

“For us to achieve this waterproof (capability), we also had to look at durability again, the rigidness and the toughness,” he said, banging a large pen on the phone’s screen for emphasis.

Fujitsu also has the noise cancellation used in a Formula One vehicle it sponsors — a position that explains the presence of the race car in its CES booth.

All of those, Saso says, could form the basis of Fujitsu’s entry, though the company is still evaluating its product options. Another approach would be to offer a phone similar to the Raku Raku (“easy easy”) phone it offers in Japan — a basic phone, aimed at seniors, that mixes in enhanced calling and health diagnostics such as heart rate, calorie and fat intake, and exercise. Fujitsu has sold 20 million of the devices in Japan.

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As I reported late last night, Yahoo said it had named PayPal President Scott Thompson as its new CEO. The exec is currently in charge of the large eBay online payments unit.

He’ll start next week, but there are staff conference calls today and also an all-hands meeting on Yahoo’s main Silicon Valley campus (meet at URLs, troops!) tomorrow.

Yahoo shares are down almost three percent on the news so far, as Wall Street has been hoping for a big sale of some sort and not another turnaround.

Yahoo will be holding a 7 am PT press conference about the move and presumably to swan around Thompson.

(Welcome, Scott! I hope you were informed — please do not listen to what co-founder Jerry Yang says on this important issue — that you are supposed to send all internal memos to me! Also, as one of my Twitter followers, Mike Dudas of Google just tweeted: “If Thompson leads companies as well as he grows a moustache, Yahoo made a great CEO choice!!” I concur.)

A Yahoo PR person confirmed the hire very cordially in a phone call early this morning and the Internet giant also put out a press release.

So did I, of a sort, last night. Given I am too tired to rewrite myself, here is what I had reported:

The company fired its last CEO, Carol Bartz, in September, and Yahoo has been run by the board and also by interim CEO Tim Morse, who had previously been its CFO.

After Bartz’s ouster, Yahoo said it was looking at a range of strategic options, including the possible sale of all or part of the company.

That was the focus at first, although Yahoo had simultaneously hired Heidrick & Struggles to look for a new CEO.

The company attracted two partial investment bids from private equity firms, Silver Lake and TPG Capital, but shareholders were unhappy with the low prices of these so-called PIPE — Private Investment in Public Equity — arrangements.

Yahoo then moved to try to strike a tax-advantaged deal with its long disgruntled Asian partners, China’s Alibaba Group and Japan’s SoftBank, to sell back parts of the large stakes it has long owned in Alibaba and Yahoo! Japan.

Those complex negotiations are still ongoing and look promising, which could yield Yahoo billions of dollars in capital to be given to investors, for stock buybacks or to invest in new initiatives.

Since then, the board — long considered one of the more cloddish in tech — has turned its attention to hiring a new CEO, in the hopes of trying once again to revive its flagging fortunes.

Thus, it began looking to hire someone with deep tech experience at a large public consumer Internet company in Silicon Valley.

That narrowed the field, with Yahoo looking at a range of choices with expertise in advertising, technology platforms and more.

There is a lot of that on the deep bench that eBay CEO John Donahoe has assembled at the online commerce giant, including Thompson.

Plus, he is a genuine Internet geek.

According to his eBay bio, Thompson became president of PayPal in early 2008, after serving as its CTO in charge of information technology, product development and architecture.

Before eBay, he worked at Inovant, a subsidiary of Visa formed to oversee global technology for the organization. He was also CIO of Barclays Global Investors and has worked at Coopers and Lybrand on information technology.

And here’s a tasty new wrinkle: Thompson recently “liked” Yahoo on his Facebook page, along with the decidedly more interesting Kickstarter and Splunk.

Again, Scott, thanks for the Facebook tip — I knew the social networking site could come in handy!

(Also, here is an interview I did with him post-announcement.)

And here is Yahoo’s official press release where Yahoo Chairman Roy Bostock says nice stuff about Thompson:

YHOO_News_2012_1_4_General

It’s the typically newsless time around Christmas and New Year’s, but for once there has actually been a lot going on at Yahoo.

Last week, the Silicon Valley Internet giant’s typically moribund board decided to move ahead with negotiations to sell part of its stake in China’s Alibaba Group, as well as all of its shares in Yahoo Japan.

While that is still not a done deal, it adds clarity to the Yahoo mishegas, as current leaders there seek to turn around the company’s lagging fortunes.

Now, as Yahoo continues to contemplate a pair of partial investment bids by private equity firms Silver Lake and TPG Capital into 2012, more focus will be on the selection of a CEO candidate to take over, sources said.

While I have floated some names that have been contemplated — such as Hulu CEO Jason Kilar, Juniper CEO Kevin Johnson, former aQuantive and Microsoft exec Brian McAndrews, and board member David Kenny — I have collected some more that seem to be getting the once-over and are being mentioned internally as well as externally.

Sources said that the Nominating and Corporate Governance Committee at Yahoo, which is run by independent director Patti Hart, has been looking for someone with definite public company experience, as well as expertise in large-scale management.

As to talent, candidates seem to be either good at running big platforms, or deeply knowledgeable about advertising and media as well as technology.

Another important criteria, said sources: Someone who is “collaborative” and nonconfrontational. As in, not like the former and very pugnacious CEO Carol Bartz, who was fired in September.

Thus, here’s another trio of candidates to consider, while we wait — and who knows how long that will be given that the Asian activity could have tired out for a bit this usually slow-moving board:

Chris Liddell: The former CFO of Microsoft is an interesting name that just popped up recently, and it makes some sense when you think about the possible mindset of the Yahoo board.

Liddell, who has a charming New Zealand accent, did a short stint, from January of 2010 to March of this year, as CFO at General Motors. Recently married to another former Microsoft exec, he has since been living in New York.

He apparently loves living in the Big Apple.

But when he left GM, Liddell made it clear he wanted to go for a top job next. He was among the candidates for a recent search for a CEO of Time Warner’s Time Inc. (an effort that was run by exec search firm Heidrick & Struggles, which is also conducting the Yahoo hunt).

Known as tough and decisive, he certainly is qualified to deal with complex financial situations, such as the one in which Yahoo now finds itself knee-deep. One knock: Little product or advertising experience.

Laura Desmond: While certainly a dark horse, Desmond has been queried by Heidrick, said several sources.

She is CEO of Starcom MediaVest Group, a subsidiary of Publicis, one of the largest media planning and buying agencies, making Desmond one of advertising’s most prominent players.

Well-known in Yahoo’s key market, she is considered a savvy and smart exec with a wry sense of humor.

I happen to particularly like one line from one of her bios:

“Ms. Desmond’s career has been driven by two caveats: Take intelligent risks and learn more from failure than from success.”

She could learn a lot at Yahoo. (I know, easy jab, but it works!)

David Rosenblatt: The former DoubleClick CEO, who went on to a big ad job at Google after it paid $3.2 billion for the company, is also a long shot, mostly by his own choosing.

The sharp exec is always on the short list of CEO candidates for a lot of big, splashy online jobs, but he seems to want to swim his own way.

Case in point: He was recently named CEO of New York-based 1stdibs, a relatively obscure online marketplace known among antique dealers and interior designers looking for one-of-a-kind furniture, art and lighting.

Yes, that’s right: Fancy lamps.

Rosenblatt also serves on the boards at Group Commerce, Twitter and IAC.

All that Internet ad and e-commerce experience is exactly why Rosenblatt would be one of the better choices for CEO of Yahoo. But, for him, I would guess taking such a job is probably in the life’s-too-short category.

More to come, obvi!

Yahoo shareholders felt a little giddier earlier this week, when it seemed as if the company had finally decided to make a deal with its Asian partners.

But the happiest crew might end up being the Silicon Valley Internet giant’s outside counsel, Skadden Arps — and especially Leif King, the fantastically named legal eagle who has been advising Yahoo on the deal.

That’s because today the Yahoo board approved continuing the negotiations to come to a final agreement over the stake, sources said, which should take six to eight weeks.

It’ll surely be happy holidays for billable hours!

As costly as the legal bills will be, if it all goes well, an Asian solution will mean one major problem solved, with a possible pile of cash and new assets coming in to Yahoo.

To get there, the company signed a term sheet earlier this week with Japan’s SoftBank to sell back all its holdings there, and with China’s Alibaba Group to sell off more than half its stake (moving from a 40 percent stake to a 15 percent one).

The deal values Yahoo’s total shares in both companies at about $17 billion.

While it gets a pretty accounting name — “cash-rich split “– the vehicle to unwind it all is essentially a complex tax dodge finally cooked up by the trio, in which cash, new assets and stock will be moved around until everyone gets what they want (except the U.S. government).

I would explain it — but I am on vacation, and would rather drink eggnog and sleep — so here is The Wall Street Journal’s version, which I like because it sounds like Alibaba and SoftBank are giving Yahoo a hugely loaded Starbucks card for Christmas:

“As envisioned in the scenario, Alibaba would create a subsidiary into which it would put several billion dollars of cash, plus an operating asset that Yahoo wants to buy using additional cash from Alibaba, almost like giving Yahoo a prepaid card for an asset of its choice, the people said.”

Everyone is hoping there will not be any hiccups in the deal, which has been spearheaded by Yahoo board member and Intuit CEO Brad Smith, and Jerry Yang, who is also the company’s co-founder and a major shareholder.

Alibaba CEO Jack Ma and CFO Joe Tsai, both co-founders of that company, were the point men for the Chinese company. And for SoftBank, it was its founder and CEO Masa Son and his main U.S. exec, Ron Fisher.

Now, said sources, Yahoo’s board is hoping to still keep the bids from a pair of private equity firms — Silver Lake and TPG Capital — alive.

While initially the focus on the action, the PE bidding for partial Yahoo stakes has recently been sidelined by the Asian deal.

Now, sources said, Yahoo is hoping the new infusion of cash and assets will allow it fend off shareholder unrest — stock buybacks and dividends, anyone — to solicit higher prices from the firms to make strategic investments.

Yahoo had considered the initial bids too low, as did some very pissed-off activist shareholders.

Still, it’s not clear if those firms will jack their offers now, although sources said Silver Lake is still interested in some sort of deal that would give it influence over remaking Yahoo.

Silver Lake and others think the long-troubled company could be revived with some effort, and become a much more lucrative Web property.

But those negotiations might run into roadblocks over who gets to pick leadership for the company. Yahoo has accelerated its efforts to hire a new CEO, after firing Carol Bartz in September.

The PE firms, who would buy a large stake in Yahoo, also have wanted some level of control, including CEO and board approval, in order to be able to make massive changes at the company to turn it around.

Wall Street seems to like the Asian part of the deal, at least, since it shows some sort of forward momentum at Yahoo, and from its often-lugubrious board.

Shares are up almost 7 percent in the last few days, although they are not popping as they might be, given that new valuations based on a successful Asian deal put the stock at a much higher price.

In other words, investors like what they see, but are watching and waiting for more.

Zynga is expected to follow Nexon out later this week, and is seeking to raise $1 billion in a U.S.-based public offering.

The two companies have a lot in common.

Nexon, which is known for games such as MapleStory, has profited off the “freemium” model, in which games are given away for free and monetized through virtual goods. The 17-year-old company operates mostly in Asia today, but increasingly it is launching games on Facebook and Apple’s iPhone and iPad in the U.S.

Zynga, which has only been in the market for four years, is on target to have the largest Internet IPO in the U.S. since Google. Nexon’s IPO was the largest in Japan this year.

But today, Nexon received a less-than-stellar public reception, with shares falling marginally in early trading.

Still, it’s not clear that Zynga will share the same fate.

Many analysts attributed Nexon’s early morning decline to general economic weakness, which has plagued the Tokyo stock exchange for a while. Another analyst told Reuters that Nexon was priced fairly and therefore a big lift wasn’t expected.

In many respects, Zynga has very similar ambitions to Nexon. Not only is it seeking to raise about the same amount of money, it is also asking for the same valuation.

Following its public offering, Nexon’s market capitalization totaled at 553 billion yen, according to The Wall Street Journal. In U.S. dollars, that translates to about $7 billion. If Zynga is able to sell one billion shares at the top end of its range, it would be valued at the same amount.

Still, that’s down from earlier this year, when Zynga was privately valued at as much as $10 billion.

“Let’s go. Yes, let’s go.” [They do not move.]

– Samuel Beckett, “Waiting for Godot”

In Internet terms, the removal of Yahoo CEO Carol Bartz happened a dog’s age ago.

In fact, it was September 6.

Since then, it has felt like a slow slog, especially contrasting the situation with that of another troubled Silicon Valley giant, Hewlett-Packard, which fired its CEO Léo Apotheker and appointed a new one, Meg Whitman on September 22.

Since then, in comparison, the former eBay CEO has been like the Energizer Bunny, making a series of major and often difficult decisions, including: Holding onto its PC unit; reaffirming its controversial deal to buy Autonomy; promising a decision on the fate of its webOS unit within the next two weeks; appointing new execs; and even buying a company.

To be fair, Yahoo did acquire advertising start-up Interclick.

Otherwise, still no sale or investment deal. No new CEO. No Asia resolution. And, perhaps most importantly, no clearly articulated strategy going forward.

It’s not that Yahoo’s leadership isn’t working at it.

Some fervently insist to me that there is a “plan,” as if there is some clever game of Internet Stratego going on that I cannot possibly grok.

Mebbe — but of this I have no doubt: The Yahoo board has indeed been huffing and puffing away, weighing and measuring, considering and debating.

A lot.

Maybe I’m just too impatient. I am (ask my kids).

Or maybe Yahoo’s beleaguered employees are, one of whom just wrote me plaintively, “unreal how they can drag this out,” in what has become a common refrain up and down the ranks.

Or maybe it’s the Asian partners, Alibaba Group and SoftBank, who are antsy and have considered a variety of nuclear options in order to get back stakes Yahoo holds in them. Said one: “The strategy seems to be to frustrate and exhaust us into submission.”

Or, finally, maybe it’s the newly frustrated recent bidders for a partial stake in Yahoo, Silver Lake and TPG Capital. Declared one to me after I warned that Yahoo might, in fact, drag the proceedings out longer than you might expect: “I thought you were kidding.”

Nope, welcome to the Yahoo waiting game, PE guys!

So, to help us all get through it, here’s a quick update primer on what’s what on the various fronts:

Who’s in Charge Here?

Technically, it is the Yahoo board, which is aided by interim CEO Tim Morse.

First, a word about Morse: By all accounts, he is doing a very good job as temporary head honcho — calming the troubled company, making swift decisions about daily operating issues and being a generally nice dude to deal with.

“He’s Yahoo’s no-drama Obama, in comparison to what was happening before,” said one exec, in reference to the more volatile regime under Bartz.

Still, despite his very pleasant all-hands meetings, such as one earlier this week, Morse had previously been Yahoo’s CFO and not an Internet-savvy visionary to give the company inspiration. No insult intended, but he’s the accountant guy.

To be fair, he is not meant to be the visionary, but many at the company are yearning for exactly that.

A role that is now being taken up again by co-founder, former CEO and director Jerry Yang, who dozens of employees tell me is unusually involved in operational details these days for a board member.

I get reports of sightings of him all the livelong day: Jerry in demand-side advertising confab! Jerry chitchatting with entrepreneurs from a possible start-up acquisition! Jerry weighing in on a variety of products. Look, over in the cubicle, it’s Jerry!

This is seen by Yahoo employees as a good thing and also a bad thing, since it’s hard to be running your little divisional show at Yahoo with the dude who invented it all looking over your shoulder, even if he means well. People naturally defer to Yang, the 800-pound Web icon in the room.

But, given the overwhelming state of stasis at Yahoo now — “No one can do anything until we find out how the story ends,” said one staffer — and employees eying the exits, no power at Yahoo really matters but the board.

You know, the board that has gotten the company to this moment of crisis and profound ennui, which is its own particularly ironic irony.

To better understand the power dynamics on the board, above is a little chart for you to peruse to give you an idea of which independent board member is running what key committee.

The only truly important one is the Transactions and Strategic Planning committee, which is headed by Intuit President and CEO Brad Smith and includes former Akamai President (and former Yahoo CEO candidate) David Kenny, top HP exec Vyomesh Joshi and other guy Gary Wilson.

And, in completely visible shadow form, Yang. Multiple sources close to the situation said he has been a key force in the strategery around a possible sale or investment.

This has caused not more than a little tension among board members, but everyone seems to like the much described nicest-man-in-the-room, Smith, and hopes his cool head will prevail.

Another important part of the board is the Nominating and Corporate Governance committee run by Patti Hart, who is energetically and simultaneously — if pointlessly — in search of a capable new Yahoo CEO.

Or, as I like to call this mythical person: The Unicorn.

The Deal

As I and many others have previously reported, there are bids on the table for partial investments in Yahoo by two very powerful private equity firms, Silver Lake and TPG Capital.

It’s a PE rumble, with a side of Microsoft financial backing! (I think Silver Lake’s Egon Durban makes a very nice Riff, while Microsoft’s Steve Ballmer is the perfect Officer Krupke.)

My fervent wishes for some figurative and dance-accompanied knife-play aside, the bids are essentially the same in general and different in particular. Silver Lake is offering about $16.50 a share, while TPG is dangling a tiny bit more. Silver Lake has power entrepreneur and VC Marc Andreessen on its side, while TPG is trying to get Silicon Valley fave investor and start-up whisperer Reid Hoffman of Greylock Partners and LinkedIn on its team. Both have ideas on CEOs, strategy and what to do about the Asian assets.

This type of deal could happen suddenly and you’ll hear about it quick, since the losing side will immediately trash it to the media.

As you might expect, each director has their favorite PE firm, with some not liking Andreessen, some thinking the TPG bid is a little light, some for a whole-company deal and some wanting Yahoo to hire its own CEO and run the place itself.

Of course, the last one shows a disturbing level of denial and should be a nonstarter, given the board’s abysmal record on CEO choice and its riding of Yahoo to this sad point in its storied history.

Here’s what to expect on the PE front: A lot of wrangling behind the scenes with frequent leaks to the media about what each side wants and will not yield on.

CEO choice or no CEO choice, that is the question!

Also a big factor are Yahoo’s major shareholders, few of whom like the partial investment deal, which is known as a PIPE (Private Investment in Public Equity), because of the insiderness of it all and because they prefer a whole-company sale at a higher price.

There is also pressure from activist shareholders like Daniel Loeb of Third Point, who has attacked Yang and others on the board and is ready to pounce with a proxy fight if Yahoo tries to override shareholders too egregiously. And, of course, the inevitable lawsuits over any arrangement that seems to block a whole-company bid.

That said, such a mega-deal seems unlikely, since it is too pricey and despite a lot of noise that Yahoo’s Asian partners were ready to strike with a takeover in order to get back Yahoo’s big stakes in their companies.

That’s kind of like buying a store to get back the cool pair of shoes you sold, but bankers love to scheme up this stuff. While it certainly could happen, it would be a bear of a deal.

Perhaps more like Yogi Bear, hopelessly angling for a tasty pic-a-nik basket — but grrrr anyway.

But perhaps the biggest factor in all of this mishegas is time. There is none on a lot of levels, most especially the increasing level of brain drain and drift at Yahoo. After the New Year dawns, this is going to spin right out of control and amount to the biggest internal challenge Yahoo faces.

An Asian Solution

As I and others have reported, Yahoo is entertaining yet another proposal to sell all or part of its Asian assets back to the companies, which make up a bulk of its market valuation.

The relationship between Yahoo and its Asian partners has long been fraught, and today the difficulty of reaching an agreement remains a vexing issue. That’s because it is hard and complex and because no one wants to do what the other side wants.

I am no tax attorney, but it seems as if Yahoo will ultimately come to some deal with China’s Alibaba and Japan’s SoftBank, which could include big investors like Russia’s DST Global.

And, as I reported last week, the Asian partners want to strike a deal with the current board rather than lose leverage with a much cannier new owner.

It’s a tough decision in all aspects to strike, but would remove the focus on the fact that Yahoo’s most valuable asset is something it is not running and simply holds due to a good stock trade in years past.

Years past should be the operative thought here, since the Asian assets have nothing to do with what Yahoo needs to do with its core U.S. and global brand.

You know, the thing that allowed them to buy those lucrative Asian assets in the first place?

Strategery

And that’s the crux of all this, isn’t it? Yahoo needs a new strategy and fast.

Or it needs to clarify and hone its current strategies around advertising and media and define itself once and for all. While it often touts itself as a premier digital media company, it’s still not clear exactly what Yahoo is saying by that.

In fact, incredibly, sources told me that the board was still wrangling over the tired issue of what Yahoo is at its most recent meeting — essentially, is it a products company or a media company?

If I had to listen to that who-am-I-anyway debate again, I think I would scream, given how many important Web trends that Yahoo has whiffed in recent years, many of which were right in its own wheelhouse.

How much damage this has caused to Yahoo’s core business is a critical one to determine, with many feeling the situation is too far gone to revive it and others confident that this is simply an issue of poor execution.

I am in the middle on this one, but all the indicators of Yahoo’s business have long been heading in the wrong direction, and results in the next quarter are expected to underline this even more.

Thus, the board’s navel-gazing at this point is untoward, considering that it is presiding over the possibility of a sale that should not have had to happen in the first place. While it is not quite a fire sale, it’s no cause for celebration at all the attention, either.

In fact, it’s also pointless, since — if this all resolves as it should — the current Yahoo board will not be the one determining the company’s future any longer. Remember that: This group should and will be gone for the most part.

Yahoo shareholders and employees can hope, at least.

Then, it will be up to the next group of leaders to make the very hard choices — including what are likely to be massive layoffs and radical surgery on its offerings — for what’s to come next.

In the end, that is all that will matter. Until then, as usual, you’ll have to sit tight.

The sharks are coming from all directions. The majority shareholders of Yahoo’s operations in China and Japan want to buy out Yahoo. So much so that there are reports that they may try to bid for the whole company. Others may be putting together bids as well. And this time no one is talking anything like the premiums that Microsoft offered back in 2008. Why would they when Yahoo has been so weakened?

Read the rest of this post on the original site »

Last night, Yahoo’s board gathered for a pre-meeting dinner, a precursor to a day-long meeting today to weigh several bids from private equity firms to buy part of the Silicon Valley Internet giant, including Silver Lake and TPG Capital.

Among the thorniest of issues will be the low price that the firms want to pay for a 19.9 percent stake in the company. Silver Lake has offered $16.50 and TPG a dollar more.

In the past year, Yahoo share prices have seen a low of $11.09 and a high of almost $19. It closed yesterday at $15.70 — a price that is mostly due to sale rumors — making the offers not much of a gain on current market valuation.

The transaction type being contemplated is called a PIPE — or a Private Investment in Public Equity — with the investment below 20 percent, which allows Yahoo to avoid a shareholder vote on the issue.

While the Yahoo board had hoped for bids above $20, they are not expected to be forthcoming, considering the weakness in its business over recent years and the difficulty of returning it to health and growth.

Results in its upcoming quarter, for example, are expected to be weak again, with trouble in its advertising business, largely due to uncertainty around the business.

The low price, along with the attempt to bypass shareholder approval, is sure to infuriate Yahoo’s major investors, given they have watched the value of their stakes wilt over the years under current board management.

In the last five years, due to continually muddled leadership and the missing of key Internet trends, Yahoo shares have dropped 44 percent in value, which compares with huge gains from companies like Amazon and others.

Major Yahoo stakeholders are already irked by the PIPE idea itself, which could transfer power to private equity firms at preferential terms.

Another possible bone of contention will be the preservation of at least some parts of Yahoo’s current board.

Under a plan by Silver Lake, for example, it would get three board seats, as well as another one for a CEO of its choosing. Another seat will go to Yahoo co-founder and current board member Jerry Yang. There will be six independent board members, but it is not clear if they would be new or include some current directors.

One of the Silver Lake choices would be well-known Silicon Valley legend Marc Andreessen, who is now a powerful VC. The appeal of Andreessen is important to some major shareholders who have turned sour on Yang.

Who will be CEO of the rejiggered entity will also be discussed at the meeting. Sources said Silver Lake and TPG have definite candidates in mind and Yahoo has also been conducting an official search.

In other words, there’s a lot on the plate of Yahoo’s board today, which also needs to revisit continued proposals from its Asian partners — China’s Alibaba Group and SoftBank of Japan — to sell back its stakes in Alibaba and Yahoo Japan in various tax-free schemes.

Sources said Yahoo — which has thus far rejected such efforts — might now consider selling a part of their shares back, up to half. This would allow the company to give a cash dividend to its disgruntled shareholders.

If thwarted, as has been previously reported ad nauseum, Alibaba and SoftBank are considering their own bid with the help of other U.S. private equity firms, such as Blackstone.

Other PE firms — especially ones who have not signed Yahoo’s non-disclosure agreement related to any deal — are also hanging under the hoop, so to speak, to see what happens. At least one firm hopes the Yahoo board will reject the low-priced partial bids, leaving the court wide open again.

“It’s still anyone’s game,” said one possible bidder.

Except for Yahoo’s put-upon employees and shareholders, this is anything but fun. More on that soon.

We are now posting the full videos from the recent AsiaD conference, which took place in Hong Kong in October.

We’re following the schedule of the actual event. Up now: iKnow, billed as a “personal learning assistant.”

That would be because it calculates an individualized study schedule based on a user’s learning and retention patterns. Now aimed at English-learners in Japan, there is more to come.

Watch the demo, especially if you want to know what “Swisher English” is:

]]> http://allthingsd.com/20111123/the-iknow-it-all-the-full-asiad-demo-video/feed/ 0 http://allthingsd.com/20111116/apples-ban-on-bloatware-bollixes-ntt-docomo-deal/ http://allthingsd.com/20111116/apples-ban-on-bloatware-bollixes-ntt-docomo-deal/#comments Wed, 16 Nov 2011 12:20:56 +0000 John Paczkowski http://allthingsd.com/?p=144646 It’s been nearly four years since Apple’s iPhone first launched in Japan. Yet NTT DoCoMo, Japan’s largest mobile carrier by subscribers, still doesn’t carry it. Nor will it anytime soon, it seems.

Though Apple is open to additional carrier partners — it recently signed up KDDI as a second to SoftBank — it has had trouble reaching an agreement with NTT DoCoMo. The sticking points between the two companies: The size of the upfront order commitments Apple demands of iPhone carriers, and its dim view of their proprietary apps.

NTT DoCoMo CEO Ryuji Yamada says he’d like to preinstall a few apps on the iPhone, but Apple, which exercises tight control over the device, refuses to allow it. Apple’s view here is that it is protecting iPhone users from the unnecessary bloatware that carriers are fond of slopping onto their devices. Yamada’s view is that he is being denied an opportunity to brand and monetize a phone that will run on his network.

So far, neither party has been able to find a middle ground. “If the introduction of the iPhone results in the mass majority of our products occupied by the iPhone, then that’s a scenario that’s difficult to us to swallow,” Yamada told Dow Jones.

That said, Yamada remains optimistic. “We haven’t given up our hope of introducing the iPhone,” he said.

]]> http://allthingsd.com/20111116/apples-ban-on-bloatware-bollixes-ntt-docomo-deal/feed/ 0 http://allthingsd.com/20111114/fujitsu-supercomputer-remains-world-champ-but-ibm-and-intel-are-the-real-computing-kings/ http://allthingsd.com/20111114/fujitsu-supercomputer-remains-world-champ-but-ibm-and-intel-are-the-real-computing-kings/#comments Mon, 14 Nov 2011 13:58:39 +0000 Arik Hesseldahl http://allthingsd.com/?p=143661 Today is a big day of the year for those who keep score on the world’s most powerful computers. It’s one of the two days each year that the Top 500 list of the world’s most powerful, publicly known supercomputers is released by researchers at the University of Mannheim in Germany, the Lawrence Berkeley National Laboratory in California and the University of Tennessee in Knoxville.

If you’re a regular AllThingsD reader, you’ve already been introduced to the world’s most power supercomputer: It is the Fujitsu K Computer, which the Japanese computing concern disclosed earlier this month, and it runs in Japan’s quasi-public research institution RIKEN. That’s it in the picture above.

It’s capable of performance as high as 10.51 petaflops, or 10.51 quadrillion floating point operations per second. The same machine had been rated in the top spot on the list before, but was less powerful then, because it was still being assembled, and then capable of only 8.16 petaflops.

The machine is based on SPARC chips — the chips for which Sun Microsystems, now part of Oracle, gained such renown. Fujitsu has been building SPARC chips under license and using them in its own servers and supercomputers for years. In this case, there are 705,024 SPARC64 processing cores in action. And if my memory is correct, the chips in question each have four cores on board, meaning there are 176,256 individual processing chips in the machine.

It’s the first machine on the Top 500 list to venture past the 10-petaflop milestone; however, work is underway in the U.S. on a machine known as Titan, which will supposedly break the 20-petaflop mark sometime next year.

In the meantime, the second most powerful machine in the world is in China. The Tianhe-1A system took the top spot on the list a year ago — and in the process, caused President Obama such consternation about the state of American leadership in innovation that he mentioned it in his State of the Union address to Congress. Its performance reaches 2.57 petaflops and it’s powered by a combination of Intel-made Xeon processors and Nvidia graphical processing units.

In fact, the supercomputers in the top 10 spots on the list are otherwise unchanged from the list released in June.

At No. 3 is Jaguar, the system at the Oak Ridge National Laboratory that is being rebuilt into the machine called Titan, which I mentioned before. It’s a system built by Cray primarily around Nvidia GPUs and Opteron processors from Advanced Micro Devices. Its current performance is just shy of 1.8 petaflops.

The No. 4 system is in China. It’s called Nebulae and is at the National Supercomputing Centre in Shenzen. Its performance is just short of the 1.3-petaflop mark. No. 5 is called Tsubame 2.0, and is at the Tokyo Institute of Technology in Japan.

Chip companies in particular like to crow about the use of their products in the systems that wind up on the list. That makes this a banner day for Intel. Of the 500 systems on the list, 384 of them — 77 percent — use Intel chips. Chips from AMD, Intel’s main rival, are in 63 systems.

It’s a banner day for Nvidia, too. Its GPU chips can be found in 35 systems, more than double the number from the previous list. GPUs were invented to make the graphics in computer games more stunning and realistic; as such, it meant they were, from the beginning, pretty good at performing a certain type of math problem known as a floating point operation. It turns out that the people who run supercomputers do a lot of floating point operations — or FLOPs — too. So as GPUs have gotten more powerful, they’re finding their way into an ever-larger number of the world’s top supercomputers. Two supercomputers on the list use GPU chips from AMD’s graphics chip unit, ATI. Two more use IBM’s PowerCell architecture, which is a sibling of the Cell processor chip found in the Sony PlayStation 3.

President Obama shouldn’t feel so bad about the U.S. not being in the top spot. For one thing, practically all of the systems on the list are built on American-made technology. And among the systems that can reach 1 petaflop in performance or more, the U.S. has five, more than any other country. China and Japan have two each, and France has one. And the U.S. has more supercomputers on the list than any other country: 263. European countries have a combined 127; China has 75 and Japan has 30.

Intel may furnish more chips to the Top 500 list than anyone, but the king of the systems vendors on the list is unquestionably IBM, followed by Hewlett-Packard. IBM built 223, or more than 44 percent, of the machines on the list; HP built 140 of them. IBM also led the performance pack: Its machines are responsible for more than 27 percent of the total. Fujitsu, which made the list-topping K Computer, was in second place, with 14.7 percent. Cray and HP were in a statistical dead heat, with about 14 percent each.

Here’s a link to the full list, and a bunch of other things related to supercomputing.

]]> http://allthingsd.com/20111114/fujitsu-supercomputer-remains-world-champ-but-ibm-and-intel-are-the-real-computing-kings/feed/ 0 http://allthingsd.com/20111111/ex-yahoos-getting-downloaded-by-pe-firms-and-others-on-possible-deals/ http://allthingsd.com/20111111/ex-yahoos-getting-downloaded-by-pe-firms-and-others-on-possible-deals/#comments Fri, 11 Nov 2011 22:53:54 +0000 Kara Swisher http://allthingsd.com/?p=143361

One of Yahoo’s biggest problems — brain drain — has turned out to be an asset for private equity firms and other players interested in figuring out their best moves related to the Silicon Valley Internet giant.

A plethora of ex-Yahoos, including many former top execs, are getting buttonholed by those who want to know more about the inner workings of the company that might not be obvious from its copious financial data available publicly.

That includes former Americas head Hilary Schneider, who has a longer-term consulting gig with TPG Capital, one of the several PE firms that has recently signed a non-disclosure agreement with Yahoo; former COO and President Sue Decker, who has had a longtime informal relationship with Blackstone, which has not signed the NDA and has been in talks with Yahoo’s Asian partners, China’s Alibaba Group and Japan’s SoftBank; and even former CEO Carol Bartz, who sources say has also been contacted to get her insights.

She is one of many in that regard, in a large pool of former Yahoos, such as: LinkedIn CEO Jeff Weiner, who had run Yahoo’s media efforts; Chegg CEO Dan Rosensweig, former Yahoo COO; SurveyMonkey CEO Dave Goldberg, who ran swathes of Yahoo’s entertainment properties; Criteo CEO Greg Coleman, former Yahoo sales head; former CEO Terry Semel, who is now an investor; former communications exec Brad Garlinghouse, who is now at AOL; and Demand Media Chief Revenue Officer Joanne Bradford, who also was a top Yahoo advertising exec.

Not all are cooperating with the requests for a chitchat about Yahoo, but there is much incoming interest in ex-Yahoos and what they might know.

There’s lots more where that came from, from all parts and all levels of Yahoo, given the breadth of the exes now doing very well — thank you very much — throughout the tech and media industries.

Thus, calls from PE firms, from Silver Lake to Bain Capital to Providence Equity Partners, as well as interest from major and majorly irritated shareholders, such as activist hedge fund investor Dan Loeb.

It’s a smart idea to tap this rich vein of information, as all contemplate possible multi-billion-dollar investments.

While some of these execs have not worked at Yahoo in many years, all have significant knowledge about the challenges and also the culture that cannot be gleaned from spreadsheets.

They also know a lot about the internal politics and personalities of the existing inside players, too. More importantly, several were involved in similar previous major business decisions at Yahoo.

Decker, for example, was a key exec in the Yahoo takeover attempt by Microsoft several years ago; Schneider and Bartz were deeply involved in striking the advertising and search partnership with Microsoft.

“Between everyone, it’s a good way to figure out where all the bodies are buried,” said one person close to the situation. “And there are a lot of bodies.”

]]> http://allthingsd.com/20111111/ex-yahoos-getting-downloaded-by-pe-firms-and-others-on-possible-deals/feed/ 0 http://allthingsd.com/20111108/kobo-e-reader-acquired-for-315-million-by-rakuten/ http://allthingsd.com/20111108/kobo-e-reader-acquired-for-315-million-by-rakuten/#comments Tue, 08 Nov 2011 22:09:12 +0000 Tricia Duryee http://allthingsd.com/?p=141954 Kobo, the runner-up e-reader after Amazon’s Kindle and Barnes & Noble’s Nook, has been acquired by Rakuten for $315 million in cash.

Rakuten is a dominant e-commerce company in Japan, but also operates internationally through other brands, including Buy.com in the U.S. It said the acquisition of Kobo will assist the company in its move to provide downloadable media to consumers, starting with e-books.

More details were revealed this afternoon in a conference call with Hiroshi Mikitani, chairman and CEO of Rakuten, and Kobo CEO Michael Serbinis.

In response to my question on the call, Serbinis said Rakuten will give Kobo the financial backing and market reach to grow internationally, as well as compete in the U.S., where he says the device has achieved high single-digit market share.

“The U.S. is absolutely important. It’s fundamental. We have millions of U.S. users today, and we plan to grow that substantially, and internationally represents a big opportunity as well,” Serbinis said.

Upon closing the acquisition, Kobo said it will continue to maintain its headquarters, management team and employees based in Toronto, Canada.

Kobo, which turns two next month, had recently raised $50 million in capital from investors, including Indigo Books & Music and Cheung Kong Holdings. Indigo says it will take home about $140 million from the transaction, which represents a return of more than 300 percent.

]]> http://allthingsd.com/20111108/kobo-e-reader-acquired-for-315-million-by-rakuten/feed/ 0 http://allthingsd.com/20111103/as-yahoo-ponders-its-fate-endlessly-selling-off-yahoo-japan-stake-is-suddenly-its-easiest-option/ http://allthingsd.com/20111103/as-yahoo-ponders-its-fate-endlessly-selling-off-yahoo-japan-stake-is-suddenly-its-easiest-option/#comments Thu, 03 Nov 2011 19:49:54 +0000 Kara Swisher http://allthingsd.com/?p=140241

I have called Yahoo the Hamlet of the Internet many times, for its seemingly endless ruminating on what it should do and what it should be.

And that is true on a lot of fronts — from its strategic direction to rejiggering its advertising business to finding solid leadership to whether or not it will sell itself and how to a variety of bidders.

It’s no small irony then that perhaps it’s only easy move right now and the one most likely to happen soon — and which could temporarily assuage its always restless shareholders — is to finally settle a long and arduous effort to sell its Japanese assets.

Sources close to the situation said that the deal — as has been reported — is the closest to a deal compared to any other that Yahoo is contemplating.

Sale or outside investment discussions remain mired, while similar share sale discussions with its Chinese partner, Alibaba Group, remain a constant roundelay of dashed deals.

It has not always been thus recently between Yahoo and Yahoo Japan. Just over a year ago, the company shifted its paid and algorithmic search from Yahoo to Google, raising tensions between the companies.

Now, though, Japan has become the easy one.

In actuality, striking an actual deal is not and has been a task is on that Yahoo has been working on for many years, trying to figure out the best tax-free way to shed its 35 percent stake.

It makes sense, since the asset is no longer a strategic plus it once was.

It also frees up a lot of cash. As of September 30th, according to Yahoo, the pre-tax value of its Yahoo Japan stake was worth $6.4 billion. Presumably, Yahoo would either use the money to bolster its business or, more likely, give its shareholders some kind of dividend.

In such a deal, Yahoo’s longtime Japanese partner — and one of its very first investors — SoftBank would buy out Yahoo’s stake.

That’s the simple way of putting a deal that only an accountant can grok. But one plus is that if Yahoo does pull it off, it would be rid the company of one complication too many.

That said, any Japanese asset sale could also be impossible without a larger settlement of Yahoo’s globally connected issues — or, as I like to call it, the hairball.

And SoftBank, which already owns a lot of Yahoo Japan would certainly need more than just cash — perhaps more of Alibaba than it already owns — to be enticed to buy even more.

Also, for all intents and purpose, SoftBank is the only buyer of Yahoo’s Japan asset, so there’s that issue.

But if it could show some progress in some part of its hopelessly complicated world, for Yahoo, that is always a good thing.

]]> http://allthingsd.com/20111103/as-yahoo-ponders-its-fate-endlessly-selling-off-yahoo-japan-stake-is-suddenly-its-easiest-option/feed/ 0 http://allthingsd.com/20111102/fujitsu-beefs-up-its-best-supercomputer/ http://allthingsd.com/20111102/fujitsu-beefs-up-its-best-supercomputer/#comments Wed, 02 Nov 2011 22:53:27 +0000 Arik Hesseldahl http://allthingsd.com/?p=139643 It’s November, and in the rarefied world of supercomputing, it means that a new edition of the twice-a-year Top 500 list of the world’s most powerful publicly-known computers is due out any day now. That also means that the people who assemble the world’s most powerful bean counters are bragging about them and jockeying for placement on the list.

Today it was Fujitsu’s turn. The Japanese computing giant teamed up with RIKEN, the quasi-public Japanese research institution, to announce that they had built a machine they call the K Computer, which can perform 10.51 petaflops, or 10.51 quadrillion floating point operations per second.

And while all that may sound very impressive, it’s not quite as muscular as the Titan machine being assembled in the U.S. at the Oak Ridge National Labs, which can — or will — perform 20 petaflops.

The machine (pictured) is made up of 864 racks with 88,128 interconnected CPU chips, all of them based on the SPARC architecture for which Sun Microsystems, and therefore Oracle, are best known, though Fujitsu has long been a SPARC licensee. The new K Computer is basically an improvement and extension to the same K computer that took the top spot on the last Top 500 list in June, supplanting in the process a Chinese machine that had taken the crown last November.

Never mind that it contained all U.S.-made chips, the Chinese feat caused the leader of the free world to kvetch about the apparent sorry state of U.S. supercomputing, thus prompting, perhaps indirectly, the Titan machine at Oak Ridge.

It’s not as though China hasn’t been heard from on the supercomputing front recently. Last week its Sunway BlueLight MPP raised eyebrows not for its performance — a relatively pokey 795 teraflops — but rather for the fact that it’s built using all Chinese-made components.

So what will it be used for? Weather simulations, research into drugs and solar cells, and simulating earthquakes and tsunamis.

Here are the more formal descriptions from the announcement:

–Analyzing the behavior of nanomaterials through simulations and contributing to the early development of such next-generation semiconductor materials, particularly nanowires and carbon nanotubes, that are expected to lead to future fast-response, low-power devices.

–Predicting which compounds, from among a massive number of drug candidate molecules, will prevent illnesses by binding with active regions on the proteins that cause illnesses, as a way to reduce drug development times and costs (pharmaceutical applications).

–Simulating the actions of atoms and electrons in dye-sensitized solar cells to contribute to the development of solar cells with higher energy-conversion efficiency.

–Simulating seismic wave propagation, strong motion, and tsunamis to predict the effects they will have on human-made structures; predicting the extent of earthquake-impact zones for disaster prevention purposes; and contributing to the design of quake-resistant structures.

–Conducting high-resolution (400-m) simulations of atmospheric circulation models to provide detailed predictions of weather phenomena that elucidate localized effects, such as cloudbursts.

So what’s a petaflop anyway? A FLOP is a floating point operation. Its a type of mathematical function that involves decimal points. Adding 5.6 and 11.21 is a floating point operation and is therefore slightly more complicated from a computing standpoint than adding 11 and 5. But in computing, even day-to-day computing, it’s massively more complicated than all that.

A top-of-the-line NVidia GeForce GTX 590 graphics card, which specializes in floating point operations, can run about 2,400 gigaflops. Since a gigaflop is a billion flops, I guess that technically puts the GeForce GTX 590 into the teraflop, or trillion-flop range.

Petaflops are then in the quadrillion-flop territory, which as I noted before makes them fun because they’re among those rare numbers that are larger than the U.S. national debt. So 10.51 quadrillion flops gets written like so: 10,510,000,000,000,000. Didn’t I say this was fun?

All this is leading up to a big supercomputing conference starting in 10 days in Seattle. So expect lots more supercomputing news in the coming days!

]]> http://allthingsd.com/20111102/fujitsu-beefs-up-its-best-supercomputer/feed/ 0 http://allthingsd.com/20111102/sony-forecasts-loss-topping-1-billion-for-year/ http://allthingsd.com/20111102/sony-forecasts-loss-topping-1-billion-for-year/#comments Wed, 02 Nov 2011 09:44:37 +0000 Daisuke Wakabayashi http://allthingsd.com/?p=139298 Sony Corp. said Wednesday it swung to a net loss for the three months ended Sept. 30 and now expects to lose well over $1 billion this fiscal year, as the strong yen dents sales outside Japan and its loss-making television business continues to struggle.

The Japanese entertainment and electronics conglomerate reported a net loss of ¥27 billion ($345.7 million) in its fiscal second quarter, compared with a year-earlier profit of ¥31.1 billion. Revenue was down 9.1% to ¥1.575 trillion.

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]]> http://allthingsd.com/20111102/sony-forecasts-loss-topping-1-billion-for-year/feed/ 0 http://allthingsd.com/20111019/jerry-yang-rose-tsou-asia/ http://allthingsd.com/20111019/jerry-yang-rose-tsou-asia/#comments Wed, 19 Oct 2011 23:51:52 +0000 Peter Kafka http://allthingsd.com/?p=133694 When Yahoo co-founder Jerry Yang last appeared on the D stage back in 2008, the Internet giant was in tumult. Tapped as successor to former CEO Terry Semel and the man who would finally turn Yahoo’s fundamental strengths into healthy financial performance, Yang was already having a tough time of it. Yahoo continued to struggle and Yang’s tenure as CEO had already been threatened with an unsolicited takeover bid by Microsoft. In November of that year, he stepped down as CEO, to be succeeded a few months later by former Autodesk CEO Carol Bartz — who would have a longer, but similarly troubled tenure leading the company until her ouster in September of 2011.

Doggedly committed to the company he co-founded, Yang joins us today as a Yahoo director — ironically, one facing many of the same obstacles that confronted him back in 2008. One bright light amid the darkness: Yahoo’s massive and successful business interests Asia, currently overseen by Senior VP Rose Tsou, who joins Yang on the D stage today.

7:57 am: Good morning from Hong Kong. Yahoo’s Jerry Yang and Rose Tsou will be on stage shortly.

In the meantime, I can report that we’re playing Stray Cats in the ballroom here at the Grand Hyatt.

And now, some Devo. Perhaps at some point we’ll move to non-80s music. And if so, I’ll advise.

The Devo’s pretty good, though. If you want to play at home, enjoy.

8:03 am: And here’s Walt Mossberg. (Who walks onstage to Van Halen)

Walt delivers an update on Kara. She’s doing just fine, as you can tell if you follow her Twitter account.

Walt starts out with a D tribute to Steve Jobs. “I personally believe he’s a historical figure. Somebody who will be remembered alongside Ford and Edison.”

Walt talks about Jobs agreeing to come to the first D conference, and four more following. The last year, “he looked extremely frail — I think a lot of people were concerned.” And then he spoke with great vigor for an hour and a half.

“He’s been a terrific supporter of AllThingsD. That doesn’t mean he wouldn’t complain. That doesn’t mean he wouldn’t try to get us not to talk about things, and we would say no, and he would knock it out of the park anyway.”

8:08 am: And now, Jerry Yang and Rose Tsou.

Some discussion of Kara’s health and great affection for writing about Yahoo. Walt notes that Kara filed a couple Yahoo stories while en route to the hospital Wednesday.

8:10 am: Walt: Tell us about the status of the CEO search.

Jerry: There’s a search and a search committee. “I think the board is pretty excited about the prospects, about the way we can invigorate the company, and the search process is one of them.”

Looking at all the options, both for Yahoo, and a prospective CEO.

8:12 am: Walt: How do you look for a CEO while you’re putting yourself up for sale?

Jerry: “The board works for the shareholders, and anything that benefits the shareholders, the board has to listen to.”

8:13 am: So what are some of the real options: A sale, and what else?

Jerry: Yahoo has a great core business “and I feel like we’re making great progress.” Great brand, 700 million users, etc. “It is the thing that everybody is looking at, and saying, “how do we invigorate growth around that?”

And we have investments with Softbank in Yahoo Japan, and here in China with Alibaba. Very valuable.

8:14 am: Walt: That’s the most important asset, according to Wall Street.

Jerry: Yes, there are plenty of options.

Walt: But you need to decide what you are. Last time you were here in 2008, I asked you and Sue Decker “what is Yahoo”? And to be honest, you guys had a lot of answers, but not a crisp answer, like Steve Ballmer or Steve Jobs or Larry Page would have.

So let’s try another version. “Why should 700 million keep going to Yahoo?”

8:16 am: Jerry: Everyone who works at Yahoo gets what we want to do — “we want to be the premier digital media company.”

8:16 am: Walt: Are you that now? Because I think people might say YouTube, or Apple, or Amazon…

Jerry: Yes.

Walt: Really?

Jerry: Sure.

Walt: Give me examples.

Jerry: You can watch videos, for instance, we’ve also got news, finance, sports, entertainment. “We’re probably category leaders across the spectrum, in different regions.” Yahoo Mail is big.

Walt: But hasn’t Yahoo Mail gone down?

Jerry: Yes, people think Yahoo Mail is declining, but the number of messages is up, engagement is up. Web-based mail is being replaced by mobile and other devices. But the fundamental back-end proposition that we offer is stronger than ever.

8:18 am: Rose: People come for Yahoo news, or finance, and they discover other stuff, like videos. A couple of weeks ago, we launched a premium video consumption site in the U.S. In India, where there’s low-bandwidth access, video and entertainment are very big for us.

Providers want to be on our platform, because of our reach, all over the world.

8:20 am: Walt: Jerry, do you have all the Hollywood and big media deals you need to make this happen?

Jerry: If you look at the media part, we’ve evolved from being a pure aggregation play to “having a voice.” We’re creating “color” around other people’s stuff, and we’re making our own. Like last week, when we were the exclusive streamer for the Bill Clinton concert.

Yahoo Sports “is a very well-known service in the United States that routinely breaks news now.”

8:21 am: Walt: Do you need to move more into video, etc.? Sports is big for you but you can’t watch sports on Yahoo.

Jerry: At the end of the day, if you look at what Yahoo’s been for past 15, 16 years, the part we have to sharpen is distributing content for our partners. Outside the U.S., we’ll definitely be distributing TV. In the U.S., less of that, but note our (most recent) partnership with ABC News.

In Silicon Valley there’s one view. But the reality is Yahoo is doing lots of those things.

8:23 am: Walt: Back to the review. What’s the best outcome. Would it be best if Jack Ma bought the whole thing?

Jerry: You’d have to ask him.

Walt: I’m asking you.

Jerry: As the founder, “the true ambition for me is to see Yahoo achieve the potential it’s in the position to achieve.”

I think that’s what the board and management are trying to do.

Walt: So can an entrepreneur like Jack make that happen?

Jerry: We’re looking at everything.

Walt: Do you want to be in the hands of a PE company?

Jerry: I don’t know, Walt. I think all of the options will work themselves out.

8:25 am: Walt: OK. The Microsoft deal, where at one point they were going to buy you, and then it became a search deal. It seems like it hasn’t caught fire and done as much for you as you’d hoped.

Jerry: “I think Microsoft is a very very important partner for us.” We’ve extended our revenue guarantee. But we both realize this has to work for both sides. “It takes trial and error. It takes work. I will probably venture that the Microsoft folks would say the partnership hasn’t gone the way they wanted.”

Walt: Meanwhile other people keep nudging into search. Even Apple’s Siri can represent search.

Jerry: Our focus is simple. We can control the way our users conduct a search. We’ve gotten very good at that. Microsoft is responsible for the back end, and for monetization. And the core focus is monetization. So there will be innovation about the way you find search, and define search, but really the core focus is on monetization, and we can’t help Microsoft much with that.

8:29 am: Walt: Rose, let’s talk about Asia. How important is Asia to Yahoo and consumers as a whole?

Rose: Very important! And growing! Between southeast Asia and India, in the next three years, there will be 100 million users coming online.

Walt: Primarily through mobile, right?

Rose: Yep. And not the smartphone we’re used to, but the $50 feature phone.

Walt: But as you know, smartphones will get even cheaper.

Rose: Yes, and a $100 feature phone now functions much like a smartphone.

Walt: So are you building features for that market segment?

Rose: Absolutely. For starters, we have to make sure media and communication products render well on those phones. And then we have to work on discoverability. People have to find your services. So we do a lot of partnership deals with chipset deals, and handset manufacturers, for instance.

Walt: How does a chipset deal help media discovery?

Rose: Great question. For example, we did a deal with a chip company so the media discoverability is sort of baked into the middleware. So when they pass on the chips to handset makers, it’s that much easier. In the feature phone market, lots of local makers are very happy to have brands like Yahoo baked onto the chipset market. We’ve gotten great feedback from manufacturers in India, Indonesia, China.

8:34 am: Walt: Jerry, there was a good story in the Asian WSJ the other day, tied to Steve Jobs’s death. It wanted to know about the Steve Jobs of China, and whether China was able to harness the energy and wonderful companies and services you have here, “but a lot of it is considered derivative” — they iterate on ideas that originate in the U.S. or elsewhere. Jerry, “what’s the deal there?” Do you think that’s right? When will China “startle the U.S.” by thinking up its own stuff?

Jerry: Two sides to that. I’m an optimist about China and Asia. “It’s just a matter of time… before true innovation comes. Now, it’s just not fair comparing it to Steve. He’s rare even for the U.S.”

Walt: I know. But he did lots of great world-changing things, and it’d be nice if a Chinese entreprenuer did one.

8:37 am: Jerry: “This is a statistics and probability question.” The number of people with technical training, and a Western education and understanding of how platforms work, and experience. Even compared to 10 years ago, management has so much more experience.

Still, there are challenges. “This is not a foregone conclusion.” There’s a question about how does media censorship affect creativity and entrepreneurial spirit. We don’t know yet.

8:39 am: Walt: I’m sure you remember that 20 years ago, it seemed like Japan was going to surpass the U.S., and there was a lot of government organization around that. But it didn’t happen.

Jerry: Please understand. “I’m not saying that China is going to overtake the U.S.” — there’s still a tremendous amount of advantage that Silicon Valley, or New York, or whatever, has with entrepreneurial culture, etc.

8:40 am: Rose: It’s harder to do breakthrough stuff here because the market is really big, and the competition is really fierce. “So I think there is less risk-taking, in going about doing something that’s never been proven elsewhere.” It’s more natural to see what works somewhere else, and replicate that.

Walt: Like those fake Apple stores they have in China.

Rose: Yep. On the other hand, the speed of iteration they have here is amazing. So they take a concept from the West, but they move so fast, that soon it’s a different thing.

8:42 am: Q&A:

Q: As you look at what Yahoo could be, what are the one or two key areas that it could go after to truly transform itself?

Jerry: We’re really focused on trying to “turn Yahoo inside out.” We do a huge amount of services internally: Data, content, personalization. Lots of other people on the Web around the world could use that.

Also, there are going to be multiple platforms: iOS, Android, maybe Microsoft. And we have to be able to play on all of them. And that’s an opportunity for people like us, who can distribute a large amount of content and services.

But this “inside out” idea is a big one.

8:45 am: Q: (via Eric Jackson): Your media answer reminds me of your vision 10 years ago, with Terry Semel, and Lloyd Braun, etc., that you backed down from. What did you learn then and how is that affecting what you’re doing now?

Jerry: The realization is “that we have to continue to disrupt ourselves in terms of how we distribute.” So just publishing on Web pages and HTML, and don’t pay attention to apps, and mobile, and social media, and we’re not being disruptive, then that won’t work. People think that media means you have to stream or pipe data. But it can be more than that. Ten years ago, we didn’t really focus on that disruptive element — “we just tried to put TV on the Internet.” And some of that worked, but some of that didn’t.

And we’re done — though as Jerry walks off stage, he tells Walt “I passed.”

Now, off to a demo from digital camera-maker Lytro.

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]]> http://allthingsd.com/20111019/jerry-yang-rose-tsou-asia/feed/ 0 http://allthingsd.com/20111017/samsung-fires-back-at-apple-iphone-4s/ http://allthingsd.com/20111017/samsung-fires-back-at-apple-iphone-4s/#comments Mon, 17 Oct 2011 09:55:21 +0000 Jung-Ah Lee http://allthingsd.com/?p=132759 Samsung Electronics Co. said it is seeking to stop the sale of Apple Inc.’s new iPhone 4S in Japan and Australia, further ramping up a legal clash with the U.S. company after a series of setbacks in courts around the world in recent days.

The Korean company said it filed on Monday for preliminary injunctions in the Tokyo District Court and in the New South Wales Registry, Australia, to stop the sale of iPhone 4S smartphones in both countries. Samsung also asked the Japanese court to stop the sale of Apple’s iPhone 4 and iPad 2 devices.

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]]> http://allthingsd.com/20111017/samsung-fires-back-at-apple-iphone-4s/feed/ 0 http://allthingsd.com/20111011/nvidia-chips-to-power-worlds-most-powerful-supercomputer/ http://allthingsd.com/20111011/nvidia-chips-to-power-worlds-most-powerful-supercomputer/#comments Tue, 11 Oct 2011 11:00:52 +0000 Arik Hesseldahl http://allthingsd.com/?p=130810

Oak Ridge National Lab's "Jaguar" computer

It has been about a year since the United States lost its title as the home of the world’s most powerful publicly known supercomputer. Last November, the “Jaguar” computer based at the U.S. government’s Oak Ridge National Laboratory found itself supplanted by a computer in China in the top spot on the closely watched Top 500 list of the world’s most muscular supercomputers.

Despite the fact that the Chinese system was built largely with American-made or American-designed components, the news came as a bit of a blow to American pride, and even caught the attention of President Obama, who kvetched about it in January’s State of the Union address.

By June (the list is updated twice a year) the Chinese machine had fallen to second place, its crown seized by a supercomputer in Japan, relegating the top supercomputer in the U.S. to third place.

Today, the Oak Ridge National Lab in Tennessee, part of the U.S. Department of Energy, will announce plans to build a system that has a good shot at reclaiming the top spot. The machine will be named “Titan,” and its primary computing engine will be the Tesla chip from Nvidia, the company best known for turning out chips that enhance the graphics of games on personal computers.

Nvidia has been making inroads in high-performance computing for some time. Earlier this year I wrote about how the Tesla chips were helping Lucasfilm make movies faster.

I talked with Steve Scott, the CTO of Nvidia’s Tesla business unit, who told me that the Titan machine will be 10 times more powerful than the current Jaguar machine, and that 85 percent of its computing power will come from Nvidia chips, while the remaining portion will come from conventional CPU chips from Advanced Micro Devices.

Why GPUs and not CPUs? It turns out that graphics chips are really good at doing a certain kind of math known as a floating point operation, much faster than a typical CPU chip from Intel or AMD found inside a PC or server.

It’s also an issue of power. For years, as chips and the transistors on them have shrunk, the amount of power required to send pulsing through them has dropped as well. Scott says that is no longer the case. “We’ve reached the point where processors have become power constrained. If you pack all the transistors that you can onto a chip and run it as fast as you can, the chip will melt. We’ve entered a time where performance is constrained by power, and its only going to get worse, so you need processors that are power efficient,” he says. “It’s a fundamental sea change in the underlying technology of high performance computing.”

GPUs, originally designed for gaming and professional graphics applications like editing movies and visualizing complex problems for engineers and scientists, are inherently designed to perform several repetitive tasks at once. In explaining this, I always think back to the old saying “many hands make light work,” though here it’s applied to computing. Two people who divide up the task of folding a pile of laundry get it done faster than one. And four people will get it done faster than two.

Basically, a GPU chip is designed to render what happens to every pixel of a computer screen 50 times a second or even faster. Essentially, lots of small computational jobs are carried out at once. It’s called parallel computing, and, fundamentally, CPUs chips aren’t as good at it as GPU chips. CPUs are better at doing one job at a time, getting it done really fast, and then moving on to the next one. Generally speaking, Scott says, GPUs are about eight times faster at floating point operations than CPUs.

For Nvidia it will be a return trip to the top spot. China’s supercomputing champ, the Tianhe-1A at National Supercomputing Center in Tianjin, which is now ranked No. 2 in the world, uses Nvidia GPUs. This certainly got the world’s attention concerning the potential for GPUs in high performance computing.

The plan at Oak Ridge calls for Titan to have 18,000 nodes, each with an AMD CPU chip coupled with an Nvidia Tesla GPU. Most of the heavy lifting will be done by the GPUs, Scott says. Its total computing capacity will top out at 20 petaflops. FLOPS are floating point operations per second. “Peta” refers to how many the system can do every second: In this case, the answer is 20 quadrillion. Just because I can — and because it’s one of the rare cases where I get to use a number that’s larger than the national debt — I’m going to write that number out: 20,000,000,000,000,000.

And what will it be used for? While many of the Department of Energy’s computers are used to simulate nuclear explosions that are no longer allowed thanks to the Test Ban Treaty, this one won’t be. The mission at Oak Ridge, Scott says, is to advance the boundaries of science. Scientists will use it to model climate change, and to predict the results of different methods of mitigating it. They’ll also use it to design engines, study biology and genetics, and explore the possibilities of using nuclear fusion for energy. If you have interesting scientific work to do that requires this kind of computing oomph, you can even write a proposal explaining how you’d use it.

In the first phase of Titan’s deployment, which is already under way, Oak Ridge will upgrade its existing Jaguar supercomputer with 960 new Tesla chips. In a second phase, expected to start next year, Oak Ridge plans to deploy the 18,000-node Tesla-based system.

Down the road, the hope within supercomputing circles is that performance improves to the point where we’re no longer talking petaflops, but exaflops, or quintillions of floating point operations every second. The government is already working on that, and earlier this year President Obama asked Congress for $126 million in the federal budget to begin research to work on ways to get there by 2018. The biggest problem: How to supply enough electrical power while delivering the computing muscle. Today’s announcement by Oak Ridge is a big step in that direction, but there are still 981 more petaflops to conquer.

]]> http://allthingsd.com/20111011/nvidia-chips-to-power-worlds-most-powerful-supercomputer/feed/ 0 http://allthingsd.com/20111004/final-asiad-speakers-apples-phil-schiller-and-former-vp-al-gore/ http://allthingsd.com/20111004/final-asiad-speakers-apples-phil-schiller-and-former-vp-al-gore/#comments Wed, 05 Oct 2011 00:15:32 +0000 Kara Swisher http://allthingsd.com/?p=128535

And then there was Schiller and Gore.

That would be Apple’s SVP of worldwide product marketing Phil Schiller and former Vice President Al Gore, who round out the stellar list of speakers at our upcoming AsiaD conference.

Taking place from Oct. 19 to 21 in Hong Kong, the lineup is already impressive, with a mix of speakers from China, Japan, Korea and Taiwan, as well as Silicon Valley and elsewhere.

The previously announced speakers include: Alibaba Group’s Jack Ma; Google Android head Andy Rubin; Twitter inventor and product guru, as well as Square co-founder and CEO, Jack Dorsey; Nvidia founder and CEO Jen-Hsun Huang; Asus Chairman Jonney Shih; Sony president and second-in-command Kazuo “Kaz” Hirai; Google+ guru Bradley Horowitz; Hollywood big shot Peter Chernin; Huawei’s North American R&D head John Roese; Microsoft’s Windows Phone head Andy Lees; and a panel of Silicon Valley start-up stars — Joyus’ Sukhinder Singh Cassidy, SurveyMonkey’s Dave Goldberg and Airbnb’s Brian Chesky; Yahoo co-founder Jerry Yang and Asia head Rose Tsou; LivingSocial’s Tim O’Shaughnessy, along with founders of two of its Asian units, Daniel Shin and Paul Srivorakul; Samsung mobile head Dr. Won-Pyo Hong; HTC CEO Peter Chou, who replaces Chairwoman Cher Wang.

Schiller, who reports to Apple’s CEO Tim Cook (and before that, Steve Jobs) is a member of the executive team of the tech icon, where he has worked for 17 years. He is responsible for a swath of Apple’s outward-facing businesses, including product marketing, developer relations and business marketing.

Today, in fact, he was onstage at Apple’s iPhone event, outlining some of its new product offerings. In addition, Apple just opened its first retail store in Hong Kong.

Gore, who had a memorable interview at the fourth D: All Things Digital conference in 2006, needs little introduction. The former VP and Nobel Peace Prize winner is now chairman of Current TV and also continues as a prominent environmental activist.

Gore is on the board of Apple, while also being a senior adviser to Google, which is a neat trick. At the same time, he is a partner in the famed Silicon Valley venture capital firm, Kleiner Perkins, and co-founder and chairman of Generation Investment Management, a partnership that is focused on sustainable investing.

And, as most people know, he knows a thing or two about the Internet.

Walt Mossberg and I could not think of two better people to add to the lineup we have for AsiaD, which has very few seats left.

See you in China in two weeks!

]]> http://allthingsd.com/20111004/final-asiad-speakers-apples-phil-schiller-and-former-vp-al-gore/feed/ 0 http://allthingsd.com/20110922/exclusive-dst-silver-lake-and-yunfeng-to-lead-1-6b-tender-offer-aimed-at-alibaba-employees-and-others/ http://allthingsd.com/20110922/exclusive-dst-silver-lake-and-yunfeng-to-lead-1-6b-tender-offer-aimed-at-alibaba-employees-and-others/#comments Thu, 22 Sep 2011 12:45:55 +0000 Kara Swisher http://allthingsd.com/?p=123431

Silicon Valley’s Silver Lake and DST Global of Russia, as well as Chinese private equity firm Yunfeng Capital, are leading a $1.6 billion tender offer for privately held employee and shareholder stock of China’s Alibaba Group, according to sources close to the situation.

Yunfeng, by the way, was co-founded by Alibaba Chairman and CEO Jack Ma, as well as other prominent Chinese entrepreneurs.

Along with DST, Silver Lake and Yunfeng, Singapore-based investment firm Temasek is also participating in the tender offer as an investor, but in a smaller way.

The deal, which has been discussed for some time, was signed earlier today and will be presented to its employees in an internal company blog, which will be in Chinese.

To get around persistent foreign ownership issues in China, sources said, DST and Silver Lake are ceding voting control of their stakes to Alibaba management.

If the tender is fully subscribed, that would mean a stake of just under five percent for the group, sources said, and it gives Alibaba a $32 billion enterprise valuation.

The impetus for the tender offer, which begins today, appears to be trying to address a cash-out, paper-rich issue for Alibaba employees.

There are no active secondary private markets in China, as is the case for tech start-ups in the U.S., and there is also no IPO in the foreseeable future for Alibaba. Thus, management has been looking for a way to give its employees and also other shareholders some liquidity.

This tender offer is not a capital raise by Alibaba and is only aimed at eligible employees and shareholders. The purchase of the Alibaba shares is expected to close before the end of December.

It will be done via a special investment vehicle, specifically aimed at this purchase, that includes a spate of investors. Giant Interactive Group, a Chinese online game developer, for example, said it had committed $50 million to the fund.

It’s not clear what the implications are for Alibaba’s biggest shareholder, Yahoo, which sources said is not selling shares in the tender offer. Yahoo’s fully diluted Alibaba 39 percent stake is now worth $12.5 billion in the deal.

That’s discounted due to tax issues and also the inability of the Silicon Valley Internet giant to sell its Alibaba shares.

In other words, investors will likely welcome this higher valuation, but realize a public offering is farther away than ever.

But it is interesting in that it clearly shows a strong relationship between DST and Silver Lake, which have jointly been mulling a possible bid for Yahoo along with Silicon Valley venture firm Andreessen Horowitz, as I previously reported.

Some will speculate that Silver Lake and DST now have an in with Alibaba, which is important, since a large slug of Yahoo’s market valuation is due to its Alibaba and also Yahoo Japan! assets.

If Yahoo is sold, of course, the disposition of the Alibaba asset is an important part of the deal.

More to come, including the implications for Ma, who has been under siege of late around his spinning out of Alibaba’s Alipay payments service and the noisy battle that later ensued with Yahoo. Yahoo and Alibaba, as well as its other large shareholder, Japan’s SoftBank, settled that dispute earlier this summer.

His involvement in Yunfeng, which is buying the company’s shares in a special fund that Ma is not in, will likely attract some scrutiny, anyway.

Sources said Ma is a minority investor in Yunfeng itself, has no control rights and is not a director. In addition, Yunfeng has no relationship with Alibaba.

In another interesting twist, Alibaba rival Tencent has close ties with DST’s Internet affiliate that used to share the same name, having invested $300 million last year in the affiliate that holds major Russian Internet properties.

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