First Take: $16B for WhatsApp is downright silly

SAN FRANCISCO — Can it possibly get more absurd?

When Facebook said it would plunk down $16 billion for WhatsApp, I thought the folks in Menlo Park, Calif., had committed a serious typo. It must be a jaw-dropping $1.6 billion, not an earth-shaking $16 billion.

But Facebook didn't err — mathematically, at least. In the largest acquisition of a venture-backed start-up, Facebook paid the equivalent of three BlackBerrys (the company, not the device) to purchase the mobile-messaging company, which has 450 million monthly users.

NEWS: Facebook to buy WhatsApp for $16B

It is Silicon Valley's biggest tech deal since Symantec landed Veritas Software for $13.5 billion in 2004.

Facebook's dalliance with WhatsApp says a lot about the current state of The Valley, which becomes less numb with each mega-deal. Months after Yahoo gobbled up blogging service Tumblr for $1.1 billion, Snapchat — a tiny, photo-messaging app company — spurned Facebook's $3 billion offer.

Venture money is flowing into tech start-ups, and hot IPOs are spilling out of the Valley. Twitter's stock offering got most of the attention last year, but others like Box and King.com are on the way. If you don't quite believe in a bubble and crazy market valuations — Google is on the precipice of passing ExxonMobil as the second-most valued company in the world, after Apple — a $16 billion deal can be awfully persuasive.

There is method to Facebook's madness. A vast majority of its 1.2 billion members access the social network through mobile devices — and a spike in mobile-related ad sales has as much to do with the company's lofty stock price as anything else.

But my, how money changes everything. Two months ago, WhatsApp CEO Jan Koum told The Wall Street Journal he had no intention to sell. "We're trying to build a sustainable company that's here for the next 100 years," he said.

Today, he had 16 billion reasons to rescind his comment.

Target CEO 'Still Shaken' by Breach, Vows to 'Make It Right'

Joe Raedle/Getty ImagesA customer uses the credit card scanner at a Target store. For Target Chairman and CEO Gregg Steinhafel, Dec. 15 started out as a normal Sunday. He was at home, having coffee with his wife. That's when he got the first call about the cyber security breach at the retailer, which would to date put the personal information of as many as 110 million customers at risk. "My heart sunk," Steinhafel reflected, describing his initial reaction to word of the attack, which had hit Target at the worst time with the busy holiday shopping season in full-swing and Christmas just 10 days away. "It's hard for me to describe the feeling that came over me," he revealed in a CNBC interview -- his first since Target acknowledged the attack -- four days after Steinhafel was initially informed. While it's been about a month since Steinhafel learned of the breach, he said he's "still shaken by it." He said he's had many "sleepless nights" already, but expects many more because "we are not going to sleep until we get it right and we regain the trust of our guest. And we're gonna be better as a result of this." He knows his customers are still frustrated, and said that "they have every right to be." On Dec. 19, Target (TGT) first disclosed that as many 40 million credit and debit cards were compromised between Nov. 27 and Dec. 15 by malware installed on the company's point of sale registers. Steinhafel said Target's first priority was to remove the malware, which was accomplished by that Sunday evening. "We were very confident that coming into Monday [Dec. 16], guests could come to Target and shop with confidence with no risk." But this past Friday, Target said its investigation found that at least 70 million customers' personal information was stolen from its database -- including names, mailing addresses, telephone numbers, and email addresses. Some victims didn't shop at Target during the time of the breach, said the retailer, which expects some overlap in the two data sets but doesn't have the exact numbers yet. Steinhafel said he's aware of the anger felt by his customers because he's been getting an unvarnished view of the outcry. "No one screens my email. So I have read every single email that has come to me." He said the emails "run the gamut of emotions" from support of the way the retailer has handled the situation, to what he described as some "fairly poorly chosen words to describe Target and myself." Target also announced Friday that it lowered its fourth-quarter profit forecast, in part due to weaker-than-expected sales since reports of the cyber-attack emerged. Steinhafel said that shopping trends as of Friday were nearly back to normal.

Target says data stolen from 70M customers

Up to 70 million customers had their personal information stolen in a data breach at Target, the retailer said Friday.

Target announced last month that encrypted personal identification numbers were stolen for up to 40 million credit and debit cards in the breach. Now its investigation finds "that the stolen information includes names, mailing addresses, phone numbers or email addresses for up to 70 million individuals."

"I know that it is frustrating for our guests to learn that this information was taken and we are truly sorry they are having to endure this," Target CEO Gregg Steinhafel said in a release.

Along with the encrypted PIN data, Target previously said that data thieves stole customer names, credit and debit card numbers, card expiration dates and the embedded code on the magnetic strip on the back of cards used at Target between Nov. 27 and Dec. 15.

To give "peace of mind," the Minneapolis-based retailer will offer free credit monitoring and identity theft protection to all its customers, with an opportunity to enroll over the next three months.

Target shares were down 0.9% to $62.78 in morning trading.

SHOPPING: Retailers of all stripes sing holiday blues

The most recent announcement comes amid news of an unsuccessful holiday season for retailers and follows other disappointments at Target. Target lowered its fourth quarter guidance Friday, expecting a comparable store sales decline of 2.5%. It previously said sales would be flat.

Target also revealed at the end of December that some gift cards sold during the holidays weren't fully activated, but that it would still honor the faulty cards. Less than 0.1% of gift cards sold during the holiday season were affected.

The retailer will close eight stores in May. The stores are in West Dundee, Ill.; Las Vegas, Nev.; North Las Vegas, Nev.; Duluth, Ga.; Memphis, Tenn.; Orange Park, Fla.; Middletown, Ohio; and Trotwood, Ohio.

Sears and Gap also did worse than expected on crucial holiday sa! les, according to quarter-to-date updated forecasts both companies gave Thursday. Sears Holding Corp., which owns Kmart, reported that same-store sales for the holiday season are down 7.4% compared to a year ago. Gap said sales for December were flat compared to a 5% jump last year.

Was your data stolen? Email hmalcolm@usatoday.com to share your experience.

Contributing: Kevin McCoy

Long-term thinking: 1800 to 2013

Long-Term Thinking died on Tuesday. His last true friend, Vanguard founder Jack Bogle, was at his side. He was 213 years old.

Long-Term Thinking lived an illustrious life since the start of the Industrial Revolution, when for the first time, people could think about more than their next meal. But poor incentives and the rise of 24/7 media chipped away at his health. The final blow came Monday, when market technician Ralph Acampora warned that a 10% market pullback -- which has occurred on average every 11 months over the last century -- could be "devastating" for investors. "That's it," Long-Term Thinking whispered from his hospital bed. "There's no more room for me here." He died soon after Bloomberg published its daily tally of how much the net worths of the world's billionaires changed in the previous 24 hours.

Long-Term Thinking endured the Great Depression, world wars, and spiking interest rates in the 1980s. But the last five years proved too much, as he fought for relevance with cable news, Twitter, and derivatives. He was hospitalized in May 2010 after pundits lost their collective minds over a "flash crash" that made a few stock prices freeze up for 17 minutes. "Computers froze for seventeen minutes and they literally think American industry vanished," Long-Term Thinking told his psychiatrist. "These people are insane."

Fifty years ago, the average stock was held for more than eight years, according to LPL Financial. By 2010, the average stock was owned for five days. Fifteen years ago, S&P 500 companies spent more than 40% of available cash flow on capital investments. That fell to just over 25% by 2007, with the difference going mostly to share buybacks, likely to boost option-based compensation. "Our culture has an endemic problem of short-term thinking," Long Term said in his final speech in November. "Years have become months, months have become days, days have become milliseconds, and milliseconds have become careers. However much you think you're winning in the short! run, you're losing in the long run."

Long-Term frequently blamed media. Louis Rukeyser's Wall Street Week went off the air the same year Mad Money, Jim Cramer's daily investment show, debuted. The number of important financial events hasn't changed since Rukeyser could cover a whole week's news in an hour -- just the amount of drivel, gossip, nonsense, and hyperbole. It was too much for Long-Term Thinking to handle. Once the bastion of rational thought, he became the laughingstock of the financial world, repeatedly teased for his indifference to candlestick charts and the 50-day moving average.

Some mourned his passing. Peter Burton, a hedge fund manager from Greenwich, Conn., said, "It's sad to see him go. Everyone in my field knows he was right. With our own money, we think years out in the future. But with clients' money, I have three months to be correct, or I'm out of a job." Shaking his head, he continued: "The dirtiest secret in finance is that few of us are incentivized to do what's right. Your pension fund, your 401(k), and your kids' college funds probably have a time horizon measured in decades. But you pay me based on how I perform against my peers every 90 days. It's such a joke."

In lieu of flowers, his family asks that you turn off CNBC and stop checking your brokerage account.

The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY

.

<SCRIPT language='JavaScript1.1'SRC="http://ad.doubleclick.net/adj/N4538.USAToday/B2304017.8;abr=!ie;sz=550x300;ord=[timestamp]?"></SCRIPT><NOSCRIPT><AHREF="http://ad.doubleclick.net/jump/N4538.USAToday/B2304017.8;abr=!ie4;abr=!ie5;sz=550x300;ord=[timestamp]?"><IMGSR! C="http:/! /ad.doubleclick.net/ad/N4538.USAToday/B2304017.8;abr=!ie4;abr=!ie5;sz=550x300;ord=[timestamp]?" BORDER=0 WIDTH=550 HEIGHT=300ALT="Advertisement"></A></NOSCRIPT>

Synthesis Energy: Hype or Reality Check?

Synthesis Energy Systems Inc. (NASDAQ: SYMX) shares were among the Friday’s biggest percentage gainers, all because it has a deal to become a leader in the clean coal gasification market in China.

The question is whether the deal really means much other than speculators in low-priced shares pushing the stock up.

The Houston company will partner with Zhangjiagang Chemical Machinery to form a joint venture called ZCM-SES Sino-U.S. Clean Energy Technologies.

ZCM will contribute approximately $16.5 million to the venture for a 65% ownership interest, while Synthesis Energy will contribute exclusive usage of its advanced, proprietary gasification technology in Indonesia, Malaysia, Mongolia, the Philippines and Vietnam for a 35% ownership interest.

The cash may be the most important part of the deal, as far as Synthesis Energy is concerned. It has had a rocky history. It had operated a commercial scale coal gasification plant in the Shandong Province of China, but the plant was shut down.

It has never turned a profit trying to get its coal-gasification business fired up. In its 2013 fiscal year, which ended in June, it lost $19 million on revenue of just $579,000. The revenue was down from $3.1 million in 2012 and $10.2 million in 2011. It lost $19.9 million in 2012 and $15.5 million the previous year.

The shares were up $0.67 to $2.10 in mid-day trading, after earlier reaching a 52-week high of $2.49.

Sinkhole strikes Corvette museum

Best Companies To Watch For 2015

BOWLING GREEN, Ky. — A sinkhole formed Wednesday under the National Corvette Museum here, swallowing eight cars, according to its executive director.

Sometime before 5:30 a.m. CT, the sinkhole started to form, authorities believe. By 5:44 a.m., motion detectors were going off and police were called, Executive Director Wendell Strode said. Security cameras at the museum (below) caught the destruction.

STORY: Firefighters save dog from N.Y. sinkhole
STORY: Crews demolish Fla. home sinkhole claimed

When emergency personnel got to the museum, they discovered a sinkhole 40 feet wide and 25 to 30 feet deep, Strode said.

"It's pretty significant," he said.

Of the eight cars that fell into the hole, the museum owned six and General Motors owned two. GM's Bowling Green Corvette plant, the only factory that builds Corvettes, is across a highway less than a half mile from the museum.

Cars involved in the incident, which occurred inside the museum's iconic spire called the Sky Dome, are these:

1962 black Corvette1984 PPG pace car for the Indy 5001992 white 1 millionth-built Corvette1993 ruby red 40th anniversary Corvette1993 ZR1 Spyder on loan from General Motors, a design study that was never built. 2001 Mallett Hammer Z06 Corvette, a one-off tuner model.2009 white 1.5 millionth-built Corvette.2009 ZR1 "Blue Devil" on loan from General Motors, the show car for the re-introduction of the ZR1, last built in the early 1990s.

Staff were able to move 20 cars out of the Sky Dome later in the day after engineers determined that nothing was in danger of collapsing. Early in the day, Strobe said emergency personnel allowed museum staff to remove only one other car, the only surviving example of the "1983" Corvette. It had not fallen into the hole.

Andrea Hales, communications manager at the Bowling Green Corvette plant, said the Corvette was not! produced in 1983. A six-month delay in the new generation created a model year gap. GM built about 40 prototype 1983s, which could not be sold, then built the production cars as 1984 models. It crushed all the 1983s except for the one given to the museum.

Hales added that the sinkhole had no effect on the nearby plant.

Bowling Green — about 60 miles northeast of Nashville and 100 miles southwest of Louisville — is at the edge of a karst region where caves, springs and sinkholes are common. The main entrance to Mammoth Cave National Park is about 30 miles northeast of the city, but that cave system has more than 400 miles that have been explored and covers more than 400 square miles, according to the National Park Service.

Engineers determined that the building did not sustain any structural damage since the sinkhole was in the middle of the Sky Dome, museum spokeswoman Katie Frassinelli said.

"The structure of the building is intact and it's fine," she said.

“We're all feeling the same way: 'Oh man, that's a shame.'”

— Butch Hume, Falls City Corvette Club

Museum spokesman Bob Bubnis said officials anticipate repairing the sinkhole damage but said no timetable or plans for the repairs have been set. Officials don't anticipate having to move to a new site.

A monetary estimate of damage done to the museum and the vehicles involved has not been determined yet.

The cause of the sinkhole at the Corvette museum has not been determined, but oftentimes this kind of hole is caused by caves that expand over time until the surface gives way, said Jason Polk, a professor of geology and geography at Western Kentucky University in Bowling Green. Polk was part of the team investigating the cause and extent of the si! nk hole a! t the museum Wednesday.

"Eventually, the soil can't hold it," he said.

At this point, no other potential sinkholes appear to be threatening the rest of the museum, Polk said.

Butch Hume, president of Louisville's Falls City Corvette Club, cringed when he heard which cars were involved.

"I was stunned," he said. "What a terrible place for it to happen."

<!--iframe-->

The Sky Dome houses the museum's primo cars, Hume said. When news of the sinkhole started to spread, club members inundated Hume's cellphone with text messages wanting to know what had happened.

VIDEO: Director describes Corvette-eating sinkhole

"I think anybody who has a Corvette was stunned when they heard that," he said. "We're all feeling the same way: 'Oh man, that's a shame.' "

If the sinkhole had opened up later in the day when the museum was open, things could have been a lot worse, he said.

Within hours, Corvette aficionados started to offer assistance. Chuck McMurray, with Tamraz's Auto Parts in Plainfield, Ill., said his company is ready to jump in and help the museum find any original parts that might be needed to restore the damaged cars.

Calling the Corvette part of American history, McMurray said his company is ready to help.

"We have a warehouse full of really weird stuff that we've acquired over the last 50 years," he said.

The museum was open Wednesday, but the Sky Dome, in a separate building connected to the museum by a hallway, will be off limits for a while, Strode said.

"We'll try to get back to business as usual as soon as we can and keep moving forward," he said.

A 40-foot sinkhole at the National Corvette Museum in Bowling Green, Ky., swallowed eight of the cars on display Feb. 12.  National Corvette MuseumFullscreen A 40-foot sinkhole at the National Corvette Museum in Bowling Green, Ky., swallowed eight of the cars on display.  National Corvette MuseumFullscreen The 'Sky Dome' at the National Corvette Museum.  Jim Roshan, Special for The (Louisville) Courier-JournalFullscreen Corvettes are on display in the 'Sky Dome' at The National Corvette Museum.  Jim Roshan, Special for The (Louisville) Courier-JournalFullscreen The front of the National Corvette Museum in Bowling Green, Ky.  Jim Roshan, Special for The (Louisville) Courier-JournalFullscreen Corvettes are on display at The National Corvette Museum.  Jim Roshan, Special for The (Louisville) Courier-JournalFullscreen This sign at the entrance guides people to the Corvette museum in Bowling Green, Ky., on May 23, 1997.  Keith Williams, The (Louisville) Courier-JournalFullscreen A portrait of Zora Arkus-Duntov chief engineer of the Corvette was on display outside of the Cheverolet theater on May 27, 1997.  Keith Williams, The (Louisville) Courier-JournalFullscreen J.R. Moffett looked at a 1959 Corvette in a period showroom at the Corvette Museum in Bowling Green. He drove from Fort Knox to tour the museum.  Keith Williams, The (Louisville) Courier-JournalFullscreen Tracey Arand and Steve Meyman look at the display of Corvettes in Skydome of the National Corvette Museum in Bowling Green. Ky., on May 23, 1997.  Keith Williams, The (Louisville) Courier-JournalFullscreen Tracey Arand, left, and Steve Meyman look at the display of pictures of Corvettes as they stand in front of painting a Corvette on May 27, 1997.  Keith Williams, The (Louisville) Courier-JournalFullscreen Corvettes are on display at The National Corvette Museum.  Jim Roshan, Special for The (Louisville) Courier-JournalFullscreen A tour guide talks to a group of schoolkids at the National Corvette Museum in Bowling Green, Ky., on May 20, 2002.  Jim Roshan, Special for The (Louisville) Courier-JournalFullscreenLike this topic? You may also like these photo galleries:ReplayAutoplayShow ThumbnailsShow CaptionsLast SlideNext Slide

Yelp Shares Jump on Reports of Yahoo Deal

#fivemin-widget-blogsmith-image-110302{display:none}.cke_show_borders #fivemin-widget-blogsmith-image-110302,#postcontentcontainer #fivemin-widget-blogsmith-image-110302{width:570px;height:411px;display:block}

Yelp shares jumped Monday after reports that it is working with Yahoo. The Wall Street Journal reported Sunday that Yahoo will incorporate Yelp's listings and reviews of local businesses into Yahoo's search listings. The report, citing a person the Journal didn't name who attended a company meeting at which the partnership was unveiled, said that the new feature will be made available in the coming weeks. Yelp declined to comment on the matter. Yahoo, based in Sunnyvale, Calif., didn't immediately respond to a request for comment. Shares of San Francisco-based Yelp (YELP) increased $3.69, a 4 percent increase, to $93.10 by midmorning. The value of its stock has grown more than four-fold in the past 12 months. Yahoo (YHOO) shares rose 24 cents to $37.47, roughly in line with broader market trends. Company: Oracle Cash compensation: $5.5 million Stock and options: $90.7 million Total compensation 1-year change: 24% Despite his $1 salary, Ellison is not only the highest paid tech CEO this year, but the highest paid of all CEOs.

Marriott: From Root Beer Stand To Ritz-Carlton

5 Best Safest Stocks To Watch For 2015

Chairman Bill Marriott on the evolution of the global hotel empire, lessons learned from Dwight Eisenhower, and the four most important words in business.

2 weeks ago Recommended 4 weeks ago John Mauldin: If I Were Janet Yellen John Mauldin: If I Were Janet Yellen http://www.forbes.com/video/2854816912001/ 3 weeks ago Bill Marriott On The Promise Of Africa Bill Marriott On The Promise Of Africa http://www.forbes.com/video/2916979033001/ 1 month ago 13 Lucky Stocks For 2014 From A Value Investing Pro 13 Lucky Stocks For 2014 From A Value Investing Pro http://www.forbes.com/video/2871027437001/ 4 months ago Charles de Vaulx On Stocks Charles de Vaulx On Stocks http://www.forbes.com/video/2625079606001/ 3 months ago Plenty Of Upside In Municipal Bonds Plenty Of Upside In Municipal Bonds http://www.forbes.com/video/2714114991001/ 3 weeks ago Buckingham's Hot On Tech, Energy Sectors But Cool On Financials Buckingham's Hot On Tech, Energy Sectors But Cool On Financials http://www.forbes.com/video/2920608837001/ 1 month ago 8 Investment Tips For 2014 8 Investment Tips For 2014 http://www.forbes.com/video/2871027417001/ 2 months ago Fidelity President Abigail Johnson's Relentless Focus Fidelity President Abigail Johnson's Relentless Focus http://www.forbes.com/video/2777450813001/ 3 months ago What You Don't Know About Laurene Powell Jobs What You Don't Know About Laurene Powell Jobs http://www.forbes.com/video/2670805960001/ 1 month ago Defining Impact Investing Defining Impact Investing http://www.forbes.com/video/2854047414001/ 4 months ago Robert Shiller, Finance And The Good Society Robert Shiller, Finance And The Good Society http://www.forbes.com/video/2589955002001/ 3 months ago Oprah Winfrey: From O to $2.9B Oprah Winfrey: From O to $2.9B http://www.forbes.com/video/2670158140001/ 2 months ago Inside The Private Jet Industry Inside The Private Jet Industry http://www.forbes.com/video/2784764392001/ 3 weeks ago Weili Dai: Self-Made Tech Billionaire Weili Dai: Self-Made Tech Billionaire http://www.forbes.com/video/2915510550001/ 3 months ago Richest Women in America - Forbes 400 Richest Women in America - Forbes 400 http://www.forbes.com/video/2671077501001/ 3 months ago Fast Facts of the Forbes 400 Fast Facts of the Forbes 400 http://www.forbes.com/video/2671190235001/ 3 months ago The Koch Brothers are Everywhere The Koch Brothers are Everywhere http://www.forbes.com/video/2671077318001/ 3 months ago Lifestyles of the Rich and Average Lifestyles of the Rich and Average http://www.forbes.com/video/2671077492001/ 3 months ago Steve Ballmer's Top 5 Mega-Awesome Antics Steve Ballmer's Top 5 Mega-Awesome Antics http://www.forbes.com/video/2668170393001/ 1 month ago Sara Blakely: Laser Focus On Equality Sara Blakely: Laser Focus On Equality http://www.forbes.com/video/2846249651001/ 1 month ago Philanthropic Change Agents Philanthropic Change Agents http://www.forbes.com/video/2852951130001/ 5 months ago Kathleen Sebelius: A Work In Progress Kathleen Sebelius: A Work In Progress http://www.forbes.com/video/2564705746001/ 3 months ago Who Said It? Meg Whitman v Walt Whitman Who Said It? Meg Whitman v Walt Whitman http://www.forbes.com/video/2668124027001/ 4 weeks ago Debora Spar: Women Can't Have It All Debora Spar: Women Can't Have It All http://www.forbes.com/video/2897575504001/ 3 months ago Is Bill Clinton Sending A Secret Code To Billionaire Playboy Stewart Rahr Is Bill Clinton Sending A Secret Code To Billionaire Playboy Stewart Rahr http://www.forbes.com/video/2682958844001/ 1 month ago Funding African Entrepreneurs Funding African Entrepreneurs http://www.forbes.com/video/2846500869001/ 1 month ago Spanx Billionaire Sara Blakely On Giving Her Fortune Away Spanx Billionaire Sara Blakely On Giving Her Fortune Away http://www.forbes.com/video/2835518962001/ 2 months ago Inside the 2013 Forbes 400 Issue Inside the 2013 Forbes 400 Issue http://www.forbes.com/video/2674414129001/ 3 months ago What Can You Buy With $1 Billion? What Can You Buy With $1 Billion? http://www.forbes.com/video/2670962838001/ 3 months ago Elon Musk: Planes, Trains & Automobiles Elon Musk: Planes, Trains & Automobiles http://www.forbes.com/video/2670994494001/ Featured How A Bitcoin Money Minting Machine Works KnC Miner sells machines that help the Bitcoin network work. The reward, if a miner is lucky, is a cut of the digital money. Gilt CEO Shapes Her Career To Work For Her Collaboration, Growth and The New Role Of The CIO Warren Buffett: Beware Of 'Impact Investing' Petra Nemcova's Source Of Positive Light