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Elon Musk won't join Twitter's board of directors after all
Elon Musk will no longer join Twitter's board of directors, Twitter CEO Parag Agrawal revealed in a tweet.
Rivian's price hike leads to a shareholder lawsuit
Rivian is facing a shareholder lawsuit after raising the price of its electric vehicles and subsequently reversing course for current reservation holders.
Zynga IPO fraud lawsuit dismissed, plaintiffs plan to amend complaint
A US judge dismissed a lawsuit filed by shareholders against Zynga today. The lawsuit alleged that Zynga purposely misled shareholders about the financial state of the company, its active user count and potential business prospects in the run-up to, and after, Zynga's initial stock offering in late 2011. US District Judge Jeffrey White said the 110-page complaint failed to offer "relevant, basic factual details" worthy of the indictment against Zynga, Reuters reports. White also threw out a complaint filed against Zynga's secondary stock offering in April 2012, citing the plaintiffs in the case had no standing due to the fact none of them had purchased any of that stock. White has given the plaintiffs an opportunity to amend their complaint and re-file. Months after Zynga's initial public offering, the company was hit with an insider trading lawsuit. While all Zynga stock holders were "locked up" and prevented from selling their stock until May 28, 2012 – months after Zynga's IPO in December, 2011 – executives within Zynga's ranks used underwriters to sell their stock at $12 a share. This loophole allowed executives to profit from the stock, which made its debut at $10 a share but quickly fell. Currently, Zynga stock prices hover at $5.29 a share on the NASDAQ. [Image: Zynga]
Apple's $17 billion bond deal is the largest in history
The Wall Street Journal reports that Apple made the largest corporate-bond deal in history on Tuesday, when it raised US$17 billion in bonds -- the first time the company has offered bonds in 20 years. In response, The New York Times asks, why would cash-rich Apple do this in the first place? Analysts tell the NYT that the debt actually can boost returns to shareholders, something Apple has already taken steps to do when it announced its dividend and share-repurchase program last week and in March 2012. In the process, Apple was using historically low rates to its advantage. The company can step around the taxes it would need to pay by repatriating some of its overseas cash stockpile, buying the company more time to lobby Congress to its advantage. We reported shortly before the deal took place that Apple was filing the required SEC paperwork. The company plans to return $100 billion to stockholders by the end of 2015. Its next dividend payout is May 16.
Apple releases proxy statement in SEC filing
Apple has revealed the first information about its upcoming 2013 fiscal year in a proxy statement filed to the SEC this week. You can read the entire document on the SEC's website, but we can run you through the major points right here and now. First up, Apple discloses what Tim Cook was paid during 2012, and it's a little more than the $1 that Steve Jobs was officially paid to run the company (though of course Steve made much more than that in various bonuses and perks). In 2012, Cook's base salary was $1.4 million, up $900,000 from the year before. Bonuses for senior execs reached maximums of 100 percent and 200 percent, and the base salary of the major executives went up as well, from $800,000 to $875,000, due to the "additional responsibilities" the team took on last year. The statement also detailed the package that helped entice Senior Vice President Bob Mansfield to stay with the company, which included a modification of Mansfield's stocks which allowed them to vest earlier than planned, as long as he stays with the company. Finally, the statement announced Apple's first shareholder meeting of 2013, which will take place on February 27 at Apple's headquarters in Cupertino.
Yahoo starts selling half of its Alibaba stake as promised, sends $3.65 billion to giddy shareholders
Anyone who's been holding on to Yahoo shares through thick and thin is about to reap the rewards of that patience. As the company promised, it's starting to sell back half its stake in Alibaba, closing the first stage of the deal with the equivalent of $7.6 billion in pure revenue. The struggling search and content firm 'only' pockets a net $4.3 billion after taxes and other overhead costs, but it won't even see that much in its bank account: it's purposefully sending $3.65 billion of that money to shareholders, both to inspire new confidence and (unofficially) to head off activist investors like Dan Loeb that might otherwise want a coup d'état. If share owners plan on using the second stage of the sale to fund a vacation to Maui, though, they'll need to wait. Yahoo's deal prevents it from selling half of its remaining 23 percent stake unless Alibaba files for an initial public offering, and there's no guarantee that investors will see another dime of the proceeds.
Nexon invests $687M in NCsoft, becomes largest shareholder
MMO competitors and countrymen-in-arms Nexon and NCsoft are closer than ever today, as Nexon has acquired a minority interest in its fellow company. The move makes Nexon NCsoft's largest shareholder. Nexon announced that it had invested in NCsoft by snapping up 3,218,091 shares in a private transaction. The deal cost Nexon 804,522,750,000 South Korean Won, or $687 million US. This puts Nexon's share ownership of NCsoft at 14.7%. It will certainly be interesting to see how this investment affects the future of both Nexon and NCsoft. Nexon said that it "forms the basis of a long-term partnership" between the two companies. Nexon has been making aggressive moves of late, particularly with acquiring Taiwanese publisher Gamania last month.
Dan Hesse certain the iPhone will be profitable for Sprint
Sprint's CEO Dan Hesse signed an estimated US$15.5 billion deal with Apple to carry the iPhone. After a less than stellar quarterly performance, the CEO is trying to quell shareholder discontent by publicly defending his decision, says a report in AllThingsD. Speaking at an annual shareholders meeting, Hesse assured investors that "carrying the iPhone will be quite profitable." Customers will join Sprint to get the iPhone on an unlimited plan and will stay because most people who buy the phone are happy with their purchase. The iPhone will increase the number of long-term customers with revenue-generating data plans which is good for Sprint's bottom line. Sprint won't see these benefits until 2015, but the CEO believes the iPhone is worth the wait.
Facebook CEO Mark Zuckerberg says mobile apps the top focus, we say it's about time
Facebook has been making a lot of promises during a tour to drum up interest in its ever-nearing IPO, but the one gadget-heads have been wanting to hear the most, a commitment to its mobile apps, has been elusive -- until now. Everyone's favorite hooded CEO, Mark Zuckerberg, is telling investors in his home 'burg of the San Francisco Bay that mobile is front and center in his company's plans. We're hoping that means new app features, although Zuck is likely referring to money-making as well: shareholders are jittery knowing that Facebook makes most of its money on web ads that it's not running on smartphones and tablets. Paid titles in App Center will go a long way towards scratching that itch, mind you. As for us, we'll just be happy if Facebook takes less than a year and a half to produce a major tablet app.
HP shareholders ask why company isn't more like Apple
Meg Whitman, CEO of HP, had to defend herself against Apple during HP's annual shareholder meeting on Wednesday, says a report from AppleInsider. More than one investor mentioned Apple's innovation and asked HP whether it is equally innovative. Another individual asked Whitman why HP didn't have retail stores like Apple which lets customers get a computer on the spot and not wait three weeks for a shipment. Whitman said HP was founded on the "power of innovation" and created "disruptive technology" back in the day, but admitted the company recently has favored incremental evolution. She says HP has "to place some bets on disruptive or revolutionary innovation." Whitman is in a tough spot as the head of a struggling company. She took over after the company kicked out CEO Mark Hurd and then removed Léo Apotheker from the CEO position, following his suggestion that HP might spin off its PC business.
Fisker Karma battery poses 'potential safety issue' for about 50 autos, fix already in tow
Fisker has seen its fair share of delays on its Karma EV in the past, and now ''fewer than 50" of the vehicles -- which if you'll recall, cost over $100K -- are at risk for battery malfunction. According to Bloomberg Businessweek, A123 (the company which supplies the car's power pack) has issued a memo to customers and stakeholders, noting that "in rare circumstances" the car's batts could short-circuit due to coolant leakage from "misaligned hose clamps." A123 further explained that's already begun repairing the Karma's in question, and doesn't expect to experience to strain its relationship with Fisker due to the problem. Notably, Bloomberg also reports that 25 of the automobiles get assembled daily, with about 225 currently en-route to showroom floors -- a far cry from the company's earlier estimates for the 2011 production year. You'll find A123's full PDF memo at the source link below.
Motorola Mobility stockholders happy with Google merger, 9 out of 10 dentists agree
The people have spoken, and they're pleased. Said people, of course, are Motorola Mobility's shareholders, who have given a seal of overwhelming approval to the company's merger with Google. The company confirmed this sentiment in a statement issued yesterday, declaring that a full 99 percent of shareholders gave a thumbs up to Big G's acquisition at a recent meeting that comprised 74 percent of all outstanding shares. It's likely that much of this optimism was fueled by a rosier Q3 earnings report (not to mention the relatively favorable conditions upon which the acquisition was determined), but Googorola isn't entirely out of the woods, as the federal government must still give the deal its final approval. Motorola Mobility says that should happen by early next year, though it acknowledges the potential for delay. Read the full statement, after the break.
Shareholder calls for RIM to sell itself or its patents, in critical open letter
Things just keep getting bleaker for RIM. With its revenues stagnating and smartphone market share dwindling, the BlackBerry maker is now facing new financial pressure from Jaguar Financial Group -- a Canadian merchant bank and RIM shareholder that's calling upon the company to do one of two rather unpleasant things: sell itself, or sell its patent portfolio. In an open letter to RIM's board of directors, Jaguar CEO Vic Alboni criticized the manufacturer for failing to "inspire consumer enthusiasm" for its products, and for bringing its devices to market too late. And, as share prices continue to drop, Alboni thinks it's time to make a change: The status quo is not acceptable, the company cannot sit still. It is time for transformational change. The directors need to seize the reins to maximize shareholder value before more market value is lost. Jaguar didn't specify the size of its RIM stake, but claimed to be calling for upheaval on behalf of "other supportive shareholders" who, in total, hold less than five percent of the company. The Ontario-based firm is hoping that a new line of QNX-based smartphones will curtail its slump, but Alboni doesn't sound so optimistic. "You cannot put all your eggs in one basket," he told Bloomberg. "The board should be saying, 'What if these products don't pan out?' You don't want RIM to turn into another Nortel." A RIM spokeswoman, meanwhile, declined to comment on the letter. Hit up the source link below to read it for yourself.
Apple holds shareholder meeting, Tim Cook presides
Apple held its latest shareholder meeting in Cupertino today, and while Jobs was apparently in attendance (and re-approved as a board member, along with William Campbell, Millard Drexler, Albert Gore, Andrea Jung, Arthur Levinson and Ronald Sugar), Tim Cook was the one overseeing the proceedings. The shareholders also voted to keep Ernst & Young LLC as the accountants of record, and a vote about executive compensation was also approved. One proposal brought up by the shareholders suggested that Apple should publish a detailed succession plan for the CEO position, but that vote didn't pass. In the just over an hour meeting, shareholders also wished Steve Jobs well in dealing with his health issues (to a round of applause), and they also brought up the recently announced subscription plan, suggesting that if Apple lowered its 30 percent cut on content purchased through the iTunes store, newspapers would have an easier go of it. The board reportedly didn't have a response for that, but for those developers and content publishers who feel the deal is unfair, it'll be good to know the shareholders are representing those concerns at least. All in all, it sounds like business as usual in Cupertino. Apple holds one of these every year, and it's rare that major decisions get made or announced during a meeting open to shareholders.
Al Gore taunted at shareholders' meeting, gets 10k more options anyway
Last week in this post and last night during the talkcast, we mentioned that Apple's shareholders had passed on a sustainability proposal during last week's meeting (the first time in recent memory that Apple didn't go for stricter environmental standards), but apparently the shareholders weren't just against the proposal. At least one of them was openly heckling Al Gore about his work with the environment. Shelton Ehrlich (who apparently has a reputation among Apple shareholders as a conspiracy believer) stood up and called Gore a "laughingstock," railing against Gore's re-election to the board of directors. Good times -- we're sure Gore is used to dealing with controversies like that, but we wouldn't have expected it at the Apple shareholder meeting. Still, that hasn't dissuaded him from working with the company -- according to an SEC filing, he also picked up another 10,000 stock options from Apple, netting him more than $227k according to Apple's current stock price. Good deal. At least one of Apple's shareholders isn't too happy with Gore's work for the environment, but the relationship between Gore and Apple seems like it's here to stay for a while.
Minutes from Apple's shareholder meeting
Fortune's Apple 2.0 blog has some unofficial minutes from this week's Apple shareholder meeting -- while press weren't actually allowed inside the event (which featured Apple's board, including Al Gore, Steve Jobs, and new co-lead director Andrea Jung), that didn't stop an anonymous shareholder from revealing the goings-on. Not that it mattered much -- the whole affair sounds pretty boring, with Apple running down what they've done in public over the past year, along with lots of formalities and shareholder votes. One highlight is that Steve Jobs sounds like he's got the magic back -- apparently he was "feisty" during the Q&A session, and he sounds like he's back to work, saying that Apple is holding onto their piles of cash for some "big, bold moves." There was news that Apple is planning to expand their retail presence in China, opening up 25 Apple Stores over there over the next two years. Both a stock split and a sustainability proposal were brought up, discussed, and turned down by the shareholders (more on the stock split here on TUAW in just a bit). In short, Apple is a company, just like any other. It's actually fun to see behind the doors on this one, and get a look at the mechanics that drive this historic company. You almost get a sense of what Jobs is like in actual meetings -- fairly demanding, always pushing for answers (or questions), and while opinionated, always fair (Eric Schmidt was brought up, and Jobs said that the Google VIP "conducted himself appropriately" while at Apple). Despite the fact that those two proposals were declined, it sounds like a productive meeting.
Palm posts 43-percent drop in profit
We'll admit, anyone paying even the slightest bit of attention should have seen this coming a mile away, but the latest financial news from Palm is far from peachy. The firm announced a whopping 43-percent dropoff in profits compared to this quarter just one year ago, and the stock subsequently slid four-percent as a result. Of course, the perpetual delays of its modern-day operating system cannot be helping the cause, and considering the innovation that has surfaced in the smartphone arena over the past 12 months, it was only a matter of time before this happened. Interestingly enough, rival RIM was able to find a way to keep on keepin' on all the while, as it simultaneously posted a staggering 76.5-percent increase in revenue from the same quarter a year ago -- talk about salting the wound.
