mergers
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Microsoft aggressively courting Yahoo (again)?
In what would be one of the biggest business deals to go down -- well, ever -- Microsoft is rumored to once again be in talks to buy Yahoo after being rebuffed numerous times in past years. The New York Post is citing unnamed sources in reporting that Goldman Sachs is helping Team Redmond make a play for the web's perennial "number two," and arguing that an acquisition or merger would make sense for both companies. Microsoft would get a stronger online advertising presence -- something it clearly desires, as evidenced by its battle with Google for DoubleClick -- along with as an audience whose demographic supposedly skews younger and content that it could offer with Zunes, Xboxes, and the like. Yahoo would also serve to benefit, goes the argument, by picking up some of the much-needed technical expertise and financial backing required to dethrone the big G. Still, these two rivals have done the mating dance several times before without anything substantial arising -- save for IM interoperability -- so it remains to be seen whether the landscape has shifted enough in the eyes of both firms to solidify an agreement this go-round. [Thanks to everyone who sent this in]
It's official: XM and Sirius plan to tie the knot
It's been more than two years since we first reported that XM and Sirius were in talks to merge, and although the New York Post may have jumped the gun a bit way back then, it was certainly on the money today, as the two satellite radio pioneers have just issued a joint press release stating their intention to become life partners. In the proposed $13 billion deal -- which they'd like to go down by the end of the year but which still must pass rather daunting regulatory scrutiny and opposition from such heavyweights as the National Association of Broadcasters -- investors would get 4.6 shares of Sirius stock for each share of XM, with current Sirius CEO Mel Karmazin and XM Chairman Gary Parsons retaining those roles, respectively, in the combined entity (whose name has yet to be decided). As you might imagine, the companies are already trying to spin this as a big win for everyone from Martha Stewart on down, arguing that consumers will end up benefiting from more programming choices and better hardware, manufacturers and retailers will see increased sales, and of course shareholders would gain value through the economies of scale and elimination of redundancies realized from a merger. The new pals also took an opportunity to sneak in a mention about the growing number of choices consumers have for receiving audio content, from old school AM/FM to internet radio to the the still-nascent technologies of cellphone streaming and HD radio, clearly hoping to sway public opinion on that whole anti-trust thing. Still, keep in mind that the FCC is gonna be taking a long, hard look at this one -- in fact, current regulations would need to be changed in order for the merger to gain approval -- so don't get your celebratin' started just yet.Update: Just in case there was any confusion, both companies will continue to operate independently until such time as a merger is approved, meaning that you needn't fear losing your precious sat feed out of the blue. And even if everything goes according to plan, we highly doubt that your current gear will stop working or that you'll even see an interruption in your service whatsoever.
Motorola buying Symbol Technologies for $3.9 billion
Two of our favorite companies (well, more like two companies that we've heard of) have just announced that they'll be getting nice and cozy in the next few months, with cellphone giant Motorola agreeing to buy barcode-scannin', RFID-taggin' Symbol Technologies for about $3.9 billion. Besides handsets, Moto also has a significant foothold in the mobile enterprise market, and Symbol's RFID, barcode, and ruggedized PDA products will supposedly double its presence in inventory management while at the same time "being accretive to earnings," according to analyst Lawrence Harris of Oppenheimer & Company. The deal will reportedly be completed later this year or in early 2007, at which time Motorola will change the name of its new acquisition to SMBL.
DirecTV and EchoStar talking merger again?
Nature abhors a vacuum, so now that the AMD/ATI deal has gone from rumor to reality, we're in dire need of another potential mega-merger to fill the void. Luckily for us, News Corp. owner and the real "king of all media" Rupert Murdoch recently made some tantalizing comments on the Charlie Rose Show that may indicate DirecTV's renewed interest in merging with Dish Network parent EchoStar. Although he obviously didn't come right out and say that the two companies were involved in talks of any sort, Murdoch did suggest that the television landscape has shifted enough since the last merger attempt in 2002 that "it would be much harder for the government to turn it down" this time around. However, he also cautioned that a deal would be difficult if EchoStar CEO Charlie Ergen -- whose clashes with News Corp. execs reportedly put the kibosh on merger talks all the way back in 1997 -- insisted on running the new entity as one of EchoStar's conditions. Ars Technica sums up the situation nicely by suggesting that although a merger would help both companies in their quest to offer broadband service should they succeed in picking up some spectrum at next month's FCC auction, government regulators would be unlikely to approve such a deal for the same reason as last time: there are still too many consumers out there whose only option is satellite TV, giving a combined DirecTV-Dish entity monopoly status in certain areas of the country. Long story short: there's an excellent chance that Murdoch would love a deal to go down, but chances are it ain't gonna happen.[Via Ars Technica]
Nokia, Siemens merging phone equipment units
Big news in the wireless industry: the Wall Street Journal is reporting that Nokia, the world's number one handset manufacturer, is planning on merging its phone equipment unit with that of Germany's Siemens AG to create a company worth an estimated $31.5 billion. Even though both parties will have equal ownership on paper, it is clear that Nokia will exert more influence on the new entity, as it will be based in Finland, led by Nokia executive Simon Beresford-Wylie, and have a board controlled by Nokia-picked members. Besides the $1.58 billion in annual savings that both companies will realize in eliminating duplicate R&D operations, the real benefit of the merger will be the stronger market position held by the combined units in the face of growing competition from Asian manufacturers. According to the Journal (subscription required, as usual), the two companies will formally announce their plans tomorrow.[Thanks, John]
AMD may not heart ATI after all
When you spread faithfully report as many rumors as we do, you're bound to be off the mark more often than not, and here it turns out that the AMD / ATI merger gossip we recently passed along is starting to look decidedly bogus. Having no "insiders" at either company ourselves, we're resigned to waiting for such publications as The Inquirer to massage their own connections, and now the Inq is reporting that sources from both camps have denied that acquisition talks are even occurring, much less that any sort of purchase is imminent. Since there was no hard evidence to support this rumor in the first place, other than some supposedly-telling supply chain checks done by RBC analyst Apjit Walia, you'll probably agree that this new information doesn't come as much of a shock. Still, seeing how ATI's steadily declining stock price took a slight upturn right after this story went public, it seems that not everyone took our recommendation to remain calm during these times of wild speculation.
AMD to buy ATI?
In keeping with our policy of only reporting the juiciest of rumors, we're passing along a prediction by analyst Apjit Walia that microprocessor giant AMD is poised to purchase graphics powerhouse ATI in a move that would surely shake up the PC industry. Walia, who does his analyzin' for RBC Capital Markets, based his conjecture on recent so-called "checks in the PC food chain," meaning that no real hard evidence exists proving that AMD is even considering such a move. Still, Forbes reminds us that both ATI and rival nVidia have long been rumored to be acquisition targets of one of the major processor manufacturers, and a merger with AMD could be leveraged to ATI's advantage in regaining dominance of the market for high-end gaming components. For now, though, you'd be wise to file this story strictly under "one guy's opinion," instead of running out, snatching up ATI stock, and driving up the price like Walia and his investors are probably hoping.[Via PC Perspective, thanks Ryan]
