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Report: HMV to be saved as restructurer Hilco acquires debt
Business restructuring company Hilco is set to acquire HMV after reportedly taking control of the struggling British retailer's debt . According to the Financial Times, people familiar with the situation report Hilco took on the debt today, estimated three months ago to be around $279 million. If the reports are accurate, Hilco, already appointed yesterday as advisors to administrators Deloitte, have effective control of the ailing company.HMV went into administration last week after failing to secure $483 million in additional financing against debt, leaving the company in need of a buyer, with around 4350 jobs in the balance. HMV's troubles headline a sorry month for British game retail after Play.com announced the closure of its retail arm, and Blockbuster UK also went bust, with 160 of its stores being closed as it too seeks a buyer.
Disney acquires Lucasfilm for $4.05 billion, LucasArts included
Disney has just announced its purchase of Lucasfilm Limited, the umbrella corporation responsible for all things Star Wars, Indiana Jones and pretty much anything else George Lucas has ever had his hand in. The purchase will set ol' Walt back $4.05 billion.Industrial Light & Magic, Skywalker Sound and LucasArts are all included in the purchase price, meaning that Disney has not only found a way to profit from the production of movies that it isn't making, but also how to get Jar-Jar Binks into a Kingdom Hearts game.The company also announced that Star Wars 7 exists and is aiming for a 2015 release date, which makes this the most insane thing ever. Lucasfilm co-chairman Kathleen Kennedy will become president of Lucasfilm under Disney, and will also act as executive producer on "new Star Wars feature films, with George Lucas serving as creative consultant."
Sprint Nextel takes control of Clearwire after increasing stake to 50.8 percent
A securities filing has just revealed that Sprint Nextel has acquired 50.8 percent of Clearwire Corp giving it control of the firm. The deal comes after buying out Eagle River Holdings' stake in the telco. This comes just days after Sprint was subject to a sale of its own, to Japanese operator Softbank. The news is the latest twist in the up and down relationship between the two firms, and hints at a more assertive LTE strategy -- given that it now has more say over Clearwire's spectrum. Although it remains unclear how this will affect deals with other operators. If you really want to get in to the nitty-gritty, head on down to the Securities and Exchange Commission doc in the source link below. [Thanks, James K]
CNBC: Softbank to pay $20 billion for a 70 percent stake in Sprint
Rumors of Sprint's $12 billion acquisition by Softbank weren't exaggerated, they were understated: according to CNBC, the Now Network will announce a $20 billion transaction with the Japanese network on Monday, granting Softbank a 70 percent stake in the company. According to people familiar with the matter, Softbank will purchase $8 billion in shares directly from Sprint, snagging an additional $12 billion in stock at $5.25 a share from other shareholders. The Japanese firm's payout would net Sprint $3 billion, money CNBC supposes it might use to regain control of Clearwire. Softbank's cash may also be used to bolster Sprint's ongoing LTE rollout, which is poised to light up in over 20 markets in the coming months. The details are said to be officially announced tomorrow morning, but we've reached out to Sprint for a comment in case it wants to spill the beans early. Update: Just heard that the announcement is due at 4am Monday, so we'll likely learn more then.
Japan's Softbank in 'advanced talks' to acquire Sprint for more than $12 billion (update: confirmed)
While recent rumors suggested Sprint could be interested in snatching up Metro PCS, it may actually be the target of an acquisition.The Nikkei, Reuters and Wall Street Journal report it is in final buyout talks with Japanese carrier Softbank at a price in excess of 1 trillion yen ($12 billion US). Just over a week ago Softbank snapped up rival eAccess in a billion dollar deal that added 50 percent more base stations to its LTE network and will move it from third to second largest in the country when it is completed. It got to third place with a leveraged buyout of Vodafone's Japanese arm back in 2006, and CEO Masayoshi Son mentioned last week that he has his eye on the number one spot. We're not exactly sure how a potential purchase of the third place American carrier fits into its plans (or what this means for Sprint's future, its LTE rollout and its often woeful 3G speeds), but we're betting Softbank's CFO is just trying to keep Son away from any juicy looking eBay "Buy It Now" auctions. Update: Looks like those reports were on the money: Sprint just released a statement confirming it is in talks with Softbank about a possible transaction. Find that terse press release embedded below.
Lauder's purchase of OnLive totaled just $4.8 million
When venture capitalist group Lauder Partners, LLC purchased and reformed OnLive back in August, it did so for $4.8 million, according to a letter to OnLive's creditors obtained by Polygon and the San Jose Mercury News. The company's blue-light special asking price was due in part to its $18.7 million in debt, in addition to the fact that the last of its available cash had already been allocated to fulfill payroll obligations.Granted, $4.8 million is still more money than we'll ever see in our entire lives, but it seems a bit paltry when compared with Sony's $380 million acquisition of Gaikai. Under the circumstances, however, this was as good as it was going to get for OnLive."Had the sale to the buyer not taken place, the assignee would have been left with inadequate capital to fund the significant costs to preserve and market OnLive's patents and other intellectual property, thus greatly reducing expected recoveries essentially to those of a forced piecemeal auction," says Insolvency Services Group CEO Joel Weinberg in the letter to OnLive's creditors.OnLive's creditors will receive around $0.26 for every dollar originally owed, according to the letter.
Twitter said to have acquired fledgling video-sharing service Vine
Twitter has pretty much nailed text-based interaction, so it looks like it's time to diversify into video. According to AllThingsD, the blue birdie has snapped up a three-man outfit called Vine, a video-sharing startup intended specifically for bite-sized clips. You'd be forgiven for not knowing it -- the service hasn't actually launched yet -- and there's no word on whether it'll operate independently or be assimilated by the social network. There are bound to be more details revealed soon, and it might not be too long before you're sharing less in 140 characters and more in five-second clips.
Sony makes Olympus rescue pact official with $645 million investment
After months of speculation about who would step in to save the scandal-ridden Olympus' rocky fortunes, Sony has finally opened up its checkbook. The two companies are entering into a "business and capital alliance," with Sony pumping in $650 million to its former rival. In exchange, it's gaining a seat on the company's board and a 51 percent stake in a new joint venture based on Olympus's coveted medical imaging tech -- something Kaz Hirai outlined in his "One Sony" strategy. The deal also includes a component-sharing agreement in the photography space, with Olympus mirror cells and camera lenses being given to Sony, while image sensors (where Sony is very strong) will go the other way.
Rumor: Nexon and NCsoft eye Valve buyout
A South Korean newspaper is reporting that MMO companies Nexon and NCsoft are joining forces to consider buying Valve. The two companies have been gathering together funds via stock sales and real estate deals. A meeting between the three companies supposedly happened in Hawaii on September 26th to haggle on a $893 million-plus deal. The three companies are already entangled in various business dealings. Nexon is NCsoft's biggest shareholder, and both companies have titles represented on Valve's Steam service. Additionally, Nexon licenses Counterstrike in Asia and announced that Counterstrike 2 was on the way. NCsoft said that "there is no truth to this rumor" while Nexon refused to comment. Valve has been the subject of other attempted buyouts, including a reportedly $1 billion-plus deal from EA. Valve CEO Gabe Newell has gone on record saying that it would be more likely for Valve to disband than the company selling out.
Samsung aims to become key player in digital content distribution through company buyouts
The writing has been on the wall ever since Samsung's acquisition of mSpot, but the Korean firm today confirmed to Reuters that it plans to join the ranks of Apple, Google and Amazon in the world of digital content distribution. Most importantly, it plans to do so through buyouts. Samsung executive Kang Tae-jin offered a rather frank overview of the company's ambitions, saying that it will grow Music Hub into one of the top four services in terms of revenue and subscribers within the next three years. According to Kang, the push isn't so much to tap a new source of revenue, but rather to drive hardware sales -- perhaps it sees Apple's rumored move into music streaming as a bit of a threat. That said, the announcement also dovetails with rumblings of Samsung's efforts to build a more self-sufficient software ecosystem. Whatever the true reason, we'd imagine that the folks at Pandora, Spotify and the like are now watching the phone a bit more intently. Wouldn't you?
Dice Holdings buys Slashdot, Freecode and SourceForge for $20 million
Dice Holdings, the unimaginatively named owner of technology jobs site Dice.com has purchased Geeknet's media business for a cool $20 million. The deal hands over control of the world-famous Slashdot, Freecode and SourceForge to the careers company, commencing the careers site's push into tech content. It leaves Geeknet with one remaining property, ThinkGeek, which will now be getting all of that company's attention -- hopefully to produce products that are even more lust inducing than Cave Johnson's portrait.
iRobot buys rival Evolution Robotics for $74 million to expand hard-floor cleaning tech
iRobot celebrated Roomba's 10th birthday quietly teeing up a $74 million acquisition of rival Evolution Robotics Inc. The Pasadena-based company produces the Mint, a hard-floor 'bot that uses ordinary Swiffer pads to wet-wipe your wooden decks clean -- and comes with the more sophisticated "Northstar" GPS-style positioning tech. As part of the deal, Evolution CEO Paolo Pirjanian will become iRobot's new CTO and the Mint and Mint Plus will be folded into the company's stable of Roomba cleaners -- with the deal expected to be fully approved by the fourth quarter of the year.
Google buys Snapseed developer Nik Software, raises the eyebrows of Instagram shutterbugs
Google makes a lot of acquisitions, some of them more important than others. Its latest purchase might skew towards the grander side, as it just bought imaging app developer Nik Software. While the company is known for pro photography apps like Capture NX and its Efex Pro series, the real prize might be Snapseed, Nik's simpler image tool for desktop and iOS users. Both Nik and Google's Senior Engineering VP Vic Gundotra are silent on the exact plans, but it doesn't take much to imagine a parallel between Facebook's buyout of Instagram and what Google is doing here: there's no direct, Google-run equivalent to Instagram's social photo service in Android or for Google+ users, and Nik's technology might bridge the gap. Whether or not Googlegram becomes a reality, the deal is likely to create waves among photographers of all kinds -- including those who've never bought a dedicated camera.
NYT: EA tried to buy Valve
EA has tried "over the years" to buy out Valve, the New York Times reports. These talks, had they ever reached negotiation, would have valued Valve at "well over $1 billion," NYT says, which is most likely a ridiculous understatement.Valve is a private company controlled by founder Gabe Newell, who doesn't release any of its financials, but Wedbush Securities analyst Michael Pachter estimates Valve is worth $2.5 billion today.Newell says it's likely Valve's employees would scatter and the company would "disintegrate" before it would be sold."It's way more likely we would head in that direction than say, 'Let's find some giant company that wants to cash us out and wait two or three years to have our employment agreements terminate,'" Newell says.
Best Buy founder ever closer to finalizing company buyout bid
Best Buy founder Richard Schulze may have stepped down as chairman of the board, but he's certainly not out. His plan to buy the turbulent company has reached the next step -- an agreement which pre-empts the formal offer. Schulze now has access to all the private numbers he'll need to put together an investor group within the 60-day timeframe. And, if this round is unsuccessful, it'll be next January before another bid can go to the Board of Directors, followed by direct shareholder offers if the second attempt fails. Given that Schulze owns 20 percent of Best Buy, he gets two seats-worth of voting power as long as he sticks to the agreed process. So, with a new CEO taking the reigns in September and the acquisition machinery in top gear, is there fresh hope for the big box retailer?
Townsquare Media buys what's left of MOG
Beats' acquisition of MOG ultimately carved the company into two pieces, if not quite evenly: it left both the blog content as well as a music-oriented ad network that's popular, if without nearly as much cachet for the technology crowd as the streaming audio. Entertainment outlet Townsquare Media must have seen a bargain in the making given that it just swept in to buy MOG's remaining parts. The deal, which AllThingsD understands is worth $10 million, will see the MOG name wiped for good as the ad network and sites slip into Townsquare's collection. While anti-climactic, it still marks the formal end to a significant chapter in cloud music -- MOG at one point was going toe-to-toe with the likes of Rdio and Rhapsody, and it now exists only as a memory.
IBM buys Texas Memory Systems to bring on speedy storage
IBM is becoming serious about enterprise-grade computing in more ways than one. It just struck a deal to acquire Texas Memory Systems, best known these days for its extra-quick RamSan SSD cards. As you'd anticipate, that fast yet lean storage is the focus -- IBM wants servers that aren't limited by their drives, or which just use less power than old-fashioned spinning hard disks and tape machines. Neither side is talking about how much the deal is worth, but TMS' product roster should stay on the market even as it's folded into IBM's Smarter Storage initiative. Expect that database at work to suddenly get faster sometime after the acquisition closes later this year.
Best Buy founder wants slashed prices, Apple-style customer service in $10 billion rescue plan
Best Buy founder Richard Schulze is proposing a plan to turn around the ailing electronics store as part of a $10 billion buyout. He's proposing the retailer slashes prices to compete with online rivals like Amazon, while offering Apple Store-levels of customer service. He's concerned that the current closure and size-reduction policy will spell the end of the business, which is rumored to announce another round of closures shortly. It's yet to be seen if his plan, which would mean running Best Buy at a loss for several years, would be accepted by the company's management, who are meeting to discuss the proposals at the end of the month.
Dish Network rumored to have bought Clearwire's $400 million debt in secret transaction
We're not in the habit of entering the dry world of corporate debt notes, but Sprint's latest financial release might disguise a juicy bit of news. There's a rumor in the business press that Dish Network might have bought around $400 million of Clearwire's debt -- helping relieve the pressure on Sprint, which has been keeping its subsidiary alive on handouts. Unsurprisingly, no-one's commenting on the rumors, although Dish CEO Joseph Clayton did say he was open to a partnership (or acquisition) with Sprint / Clearwire late last year. If true, it could signal that it's getting ready for a fight against AT&T -- or maybe it just wanted to throw Dan Hesse a bone.
E Ink acquires SiPix, may dominate e-paper universe
If challenging E Ink's supremacy in the e-paper market was hard before, it just became Sisyphean. The company is acquiring e-paper module maker SiPix through a share buyout worth about NT$1.5 billion ($50.1 million) if all goes smoothly. What goals E Ink has with the merger aren't as apparent, although the company wants to go beyond just supplying the parts for another Kindle Touch or Nook Simple Touch -- the aim is to "diversify into newer applications" even as the company corners those markets it already leads. The deal should close in the fall if regulators sign off on the deal, although we wouldn't be too quick to assume clearance is a sure thing. As NPD DisplaySearch warns, the deal would give E Ink complete control of the electrophoretic display technology that dictates the e-paper field. That doesn't allow for a lot of variety in the space when alternatives like Qualcomm's Mirasol are being scaled back.
