By Peter Ward July 22, 2016
Yahoo’s Decline, in Data
Marrisa Mayer, Yahoo CEO, at Chirp. © Jolie O’Dell
Yahoo, the former Internet search giant, is about to sell itself to the highest bidder. The New York Times published an interactive this week examining exactly how one of the biggest names in technology got here.
Yahoo will soon conclude the bidding process to sell its core operations in search, email, advertising and media. Potential buyers include Verizon, AT&T, private equity firms and Dan Gilbert, a co-founder of Quicken Loans who is backed by Berkshire Hathaway.
The first graph of the article shows Yahoo still boasts the third largest number of users in the U.S. as of May this year, behind only Facebook and Google. But the company’s share of revenues from those users has fallen steadily. Yahoo’s web search market share currently stands at 12%, down from more than 25% in 2007. Similarly, Yahoo’s digital ad revenue share has also dropped dramatically, from more than 10% in 2009 to 3% today.
Another set of graphs illustrates the financial woes of Yahoo, which suffered losses of $4.4 billion in 2015, as it restructured and wrote down valuations of some of its brands like Tumblr.
The final graphic shows the numerous CEOs Yahoo has employed, plotted against the company’s stock price. Current CEO Marissa Mayer was hired in 2012 and initially brought the stock price back to its highest levels since the dot-com crash of 2000, but Yahoo’s value has since dropped again, currently hovering just below $40.
American Hunger Problem Barely Improving Post-Recession
©Pexels
The number of Americans going hungry is almost as high as it was in 2009, during the recession, according to latest figures published by The Atlantic on Tuesday.
In 2006, the year before the housing market in the U.S. crashed, fewer than 10.9% of American households were what is known as “food insecure.” The U.S. Department of Agriculture defines food security as “access by all people at all times to enough food for an active, healthy life.” By 2009, that figure had reached 14.7%, and as of 2014, the most recent year on record, 14% of American households are considered food insecure.
One of the major reasons behind America’s hunger problem is that many Americans are still struggling financially following the crash, author Ned Resnikoff found. Although post-recession wages have risen, the recovery has been unequal. A recent report from the Economic Policy Institute found that wages for the bottom 60% of male workers between 2000 and 2015 were flat or declined. The article uses stats from a recent report by the Economic Policy Institute, which found that a “hugely disproportionate share of economic gains from rising productivity is going to the top 1 percent and to corporate profits, instead of to ordinary workers—who are more productive and educated than ever.”
Another major cause of hunger in America is restrictions on food-stamp eligibility, Resnikoff writes. Reimposition of work requirements, mandatory drug testing, and other new requirements enforced on a state level have made it harder for Americans needing support to access it. Recent cuts to the food stamp program on a federal level have also contributed. Over the course of one month in the first half of 2016, more than a quarter of a million people dropped out of the food stamp program, many due to the new restrictions.
Privacy Law Doesn’t Cover Health Gadget Industry
©Pixabay
The mobile health industry has exploded over the past five years, as wearable fitness trackers, health apps and online patient services have become increasingly popular. But a new report has revealed that the federal patient privacy law HIPAA has failed to keep up with new technology entering the market.
A delayed government report, which was supposed to be completed in 2010, found the HIPAA law only covers patient information kept by health providers, insurers and data clearinghouses, as well as their business partners. Companies like Fitbit, which makes wearable fitness devices, fall outside the law’s purview, ProPublica reported on Tuesday.
The report was published by the Department of Health and Human Services, and largely echoes the findings of a ProPublica story from last November. The report does not include recommendations on how to fix the problem.
The report was mandated under a 2009 law, calling on the Department of Health and Human Services to work with the Federal Trade Commission to give Congress recommendations on how to deal with entities handling sensitive health information that are not covered by the HIPAA law. A spokesperson told ProPublica that readers could draw their own conclusions, when asked why no recommendations were offered.
“At the end of the day, it’s a very complicated environment that we find ourselves in,” said Lucia Savage, chief privacy officer at the Office of the National Coordinator for Health Information Technology, which took the lead on the report. “We believe we’re fulfilling our duties. If Congress has concerns about that, I’m sure that we will hear about them.”
Facebook Upsets Neighbors
Mark Zuckerberg, Facebook founder. ©JD Lasica
What can Facebook do to help its neighbors? The social media giant is expanding its headquarters in Menlo Park, Silicon Valley, and experts say the move will drive up housing prices in the area and worsen income inequality caused by the booming tech economy.
This week a number of advocacy groups from northern California are calling on Facebook to make substantial investments in affordable housings, The Guardian reported on Wednesday.
Facebook built its campus in Menlo Park in 2011, and has proposed two new office buildings and a 200-room hotel. The project is expected to bring more than 6,500 employees to Facebook.
The company is required to contribute $6.3 million to below-market-rate housing as part of the expansion. Facebook has also agreed to provide $350,000 for a study on housing conditions, $1.5 million for a housing innovation fund, $1 million for a preservation fund, and $2.15 million for reduced rents in 22 units of “workforce housing”, with priority given to teachers.
But critics say that Facebook could be doing a lot more. Between 2011 and 2015, the average rent for a one-bedroom apartment in East Palo Alto has increased by 89%, according to a report on potential displacement impacts in the area.
“It’s not that we’re against Facebook, but we want to make sure that when the expansion happens, it benefits not only a group of people, but the wider community,” Carlos Martinez, East Palo Alto city manager told The Guardian.
This Week’s Top Headlines
Brexit to Spark U.K. Recession, Forecasters Say – Fergal O’Brien, Harumi Ichikura, Bloomberg News
GM raises full-year forecast after strong second-quarter profit – Bernie Woodall, Joseph White, Reuters
Singapore seizes $177m as part of Malaysia corruption probe – BBC
Billion Dollar Shave Club: L.A. start-up is purchased by Unilever for a staggering sum – David Pierson, LA Times
Tesla’s Plan For World Domination Includes Buses and Semis – Jack Stewart, Wired
Komatsu to Buy Joy Global for $2.9 Billion as Japanese Firms Shop Abroad – Atsuko Fukase, The Wall Street Journal
U.S. Sues to Block Anthem-Cigna and Aetna-Humana Mergers – Leslie Picker, New York Times
GM recalling 307,000 cars in North America for air bag defect – David Shepardson, Reuters
Draghi leaves rates on hold amid concerns for Europe’s banks – Katy Barnato, CNBC
Internal Inquiry Sealed the Fate of Roger Ailes at Fox – Jim Rutenberg, Ben Protess, Emily Steel, New York Times
