Tech Drama. Groupon’s Fuzzy Math, Yahoo Layoffs and Facebook Countersuit
Rob Houglum LeadLinkMedia.com Friday, April 06, 2012
Why Groupon's Fuzzy Maths Should Worry Stockholders
Groupon's latest restatement is partially an effect of the "Groupon Promise" feature of its enterprize model. The company promises to repay deals if buyers aren't satisfied. Because it has been selling those deals at raised prices recently that will lead to an increased rate of returns it must set aside larger amounts to account for refunds something it has not been doing. It's another example of Groupon failing to precisely account for a part of its business that decreases its finance performance. That should not evoke financier confidence.
This revelation continues to throw doubt on Groupon's first financial model. The indisputable fact that Groupon did not understand this very basic commerce principle is disturbing. The question is how quickly Groupon can become a SMB services supplier which would scale back their exposure to the unstable daily deal space.
Yahoo sackings signal more upheaval at flailing firm
In his first quarter on the job, CEO Scott Thompson has imposed the largest redundancies in the corporation's 17-year history, reshaped the board, picked a possibly disruptive fight with a major investor and sued Facebook for patent infringement.
Stop me if you think you have heard this one before. The issue I see is this is really just more of the same. There are 1 or 2 new wrinkles but generally it's the same stuff continually, each 10 months for the last 4 years. At the end of the day somebody at Yahoo wishes to get on up and tell us what the company wants to be when it grows up. Do you think she'll pull thru?
Facebook Smacks Back at Yahoo With Patent Claims in Counter-Lawsuit
In its counter-claim filing concerning 10 patents held by Facebook, the social networking giant recounted that Yahoo is infringing thru a good range of its offerings, including its homepage, content optimisation, significance engine, Flickr photo-sharing service and advertising all though its massive site.
You know : The adverts which make up the majority of Yahoo's revenue.
Welcome to the best new Silicon Valley serial. Yahoo's Scott Thompson thought it could be an excellent idea to try to strong-arm Facebook in the approach to their IPO. Mark Zuckerberg isn't going to be slowed down by this and instead made a decision to throw some dust into Yahoo's eyes.
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