Friday morning headlines

Microsoft finally does it: Lots of coverage this morning on the $44.6 billion (cash and stock) unsolicited offer for Yahoo. It's a 62 percent premium over Yahoo’s closing price on Thursday. Here's a good summation from Ben Worthen on the WSJ's Business Technology blog:

This deal is about more than search and advertising. It’s about the way people and businesses use computers. A decade ago, software was something you installed on your computer, and information was stored in a database a business owned and operated. Microsoft made its fortune selling an operating system that made this process easier. But today, people increasingly access the software they want over the Internet – just open a Web browser, type in an address and you can search the Internet, check email, or shop any number of online catalogs. Vast amounts of data are stored online as well. Businesses do some computing this way – storing and managing customer leads with Salesforce.com is a good example – and over time more and more businesses will embrace this model. Microsoft needs to radically overhaul its business in order to compete in this world.

Ugly jobs report: So much for all the cautious optimism that the economy might not be in as bad a shape as Wall Street believes. The nation actually lost 17,000 jobs in January (payroll declines are very rare). Manufacturing, construction and goods-producing industries fared worst. As expected, the 17,000 number will get all the headlines, but in fact the report is littered with contradictions (the separate household survey actually points to an improved jobs picture). These sorts of mixed signals often indicate that the economy is ready to turn one way or another. (NYT).

Markets open flat: Lots of cross-currents this morning, with the big Mircrosoft bid for Yahoo so far offsetting the terrible job news.

At least gas is down: For the third straight week pump prices have taken a tumble. The Auto Club's survey shows that the average price of self-serve regular in the Los Angeles-Long Beach area is $3.084, which is 9.1 cents lower than last week and 61 cents above last year.

Strike chatter turns glum: In the absence of any real news, you're hearing lots of gossip, misinformation, half-truths and probably a tiny bit accurate information. Lots of antsy writers out there, I suppose (one crazy rumor making the rounds is that the strike would be settled today). Point is, the informal talks between the Writers Guild and the media companies have been going on for two weeks without any sign of advancing to the formal stage. And it’s Feb. 1. From Variety:

Neither side had any comment Thursday about the meetings -- which are serving as de facto negotiations aimed at setting the stage for the resumption of official negotiations. With no official word, optimists have concluded that as long as both sides keep talking, they'll be heading toward a done deal. But concerns have emerged from the writers' side that the moguls were threatening to ditch the talks if the WGA won't agree to the formula for downloads included in the DGA deal. The compensation plan for Web streaming cut by the DGA is also said to be a major sticking point for the WGA.

Axium assets are sold: The Hollywood payroll services company Entertainment Partners is buying up what remains of its former competitor for $7 million. Axium filed for bankruptcy liquidation last month, resulting in lost jobs and show biz workers left with worthless paychecks. (LAT)