buyout
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SCi facing investor assault; management asked to resign
SCi Entertainment, parent company of Eidos, is under assault as investors demand the resignation of top executives. The Times reports things crumbled like a booby-trapped tomb after the company's stock plummeted last week following the announcement that management was pulling out of buyout talks; making matters worse was the discovery that SCi borrowed £30 million ($59 million) just to stay afloat until the end of the year.Despite SCi having a recent hit with Kane & Lynch: Dead Men, the announcement that several major titles -- including the latest Tomb Raider -- are not releasing until holiday '08 is causing concerns about the company's financial situation. We'd make fun of how SCi managed to screw things up this badly during a time of record industry growth, but Atari is still light-years ahead of them in that department.[Via GI.biz]
John Smedley: Sony Online is not getting purchased by Zapak
As much fun as it is to seek out news from the intertubes, we always appreciate tips when they're submitted. Tonight we got a unique tip, from CEO of Sony Online Entertainment John Smedley. This tip came along with a small wave of similar tips, all discussing the supposed purchase of SOE by the Zapak Digital group. The article claims that SOE has been 'on the block' for two weeks, and that the group plans to purchase the Sony subsidiary for the sum of $300 million. The article further claims this is an ongoing strategic move by Zapak:The major expenses in the gaming industry is on content and marketing, and Zapak aims to reduce the cost of publishing a game by buying out those studios and relocating them to India. "This will reduce the cost drastically from $30 mn to $10mn, which will give us the advantage to channelise our funds towards marketing and other activities," the official said. Says Mr. Smedley, in response to the article:It's got a bunch of people inside SOE emailing me asking me what's going on. This story is 100% false. We aren't for sale and never have been. Nothing like this has ever been discussed with the Zapak guys. The truth is we were talking to them about distribution rights to one of our games. And we have no idea how this story got started. Thanks for clarifying things for us, John.
Palm closes recapitalization deal with Elevation Partners
No surprises here, but Palm's "strategic recapitalization" effort has officially been closed. Just months after shareholders gave a collective thumbs-up to the idea (hey, who can say no to Bono?), Elevation Partners has indeed "invested $325 million in Palm, which the company will utilize along with existing cash and $400 million of new debt to finance a $9-per share cash distribution." Additionally, a number of new faces have been appointed jobs within the outfit, and the "total number of directors on the board has been increased from eight to nine." Ed Colligan, Palm's president and CEO, proclaimed that this "transaction has laid the groundwork for the firm to recapture its position as the leading innovator and brand of the mobile-computing revolution." Now that's the spirit, Ed.[Via mocoNews]
TomTom reacts to Nokia -- formalizes offer for Tele Atlas
Just one day after Nokia offered $8 billion for NAVTEQ, TomTom is in the news with a formal offer for Tele Atlas. Of course, TomTom had already announced their intent to offer €21.25 per share (about $2.56 billion) for the map maker back in July -- the same amount tendered today. Back then the offer represented a sweet 32% premium over the average Tele Atlas share price. However, Tele Atlas is now trading above the offer price thanks to speculation caused by the Nokia deal. We say hold out for more Tele Atlas. Just hint at discussions with Nokia or Garmin and we're pretty sure TomTom will up the ante.[Thanks, SmartDust]
Leap says "no thanks" to MetroPCS buyout offer
Ooh, in your face, MetroPCS! Leap Wireless has rejected a multi-billion dollar stock swap proposed by its fellow regional carrier a couple weeks ago, citing... well, to be brief, a bum deal. MetroPCS was looking to trade each share of Leap for 2.75 shares of its own stock, a formula that actually values Leap at about $4.7 billion -- significantly below the $5.3 billion pegged the day merger discussions kicked off. Leap CEO Doug Hutcheson officially responded to the offer today, bluntly stating that it "dramatically undervalues" his company while citing Leap's strong growth, its prospects for future buildouts, and MetroPCS' infrastructure troubles in New York and Los Angeles as reasons why his shareholders deserve more bang for their buck. That being said, Hutcheson left room for further discussions; an eventual deal makes sense, considering that the two carriers' combined footprint would approximate that of a national carrier. Can MetroPCS pony up the requisite cash to be taken seriously here?
Unhappy Gateway shareholders sue over Acer's buyout
At this point we didn't know anyone still had strong feelings for Gateway, but never discount the power of cash to get those hearts a-beating: unhappy with the $710M Acer's paying for the company, two different groups of Gateway shareholders have filed suit, alleging that company executives should have held out for more scratch. Acer was planning using the Gateway acquisition to greatly expand its US presence, so it should be interesting to see how both companies react to these lawsuits -- and how much those shareholders thought Gateway was actually worth.
A match made in hell: Microsoft eying RIM?
A completely unsubstantiated rumor floating among day traders has RIM stock up a pretty penny today, suggesting that Microsoft may be looking to acquire Waterloo's finest in response to Google's meddling in the mobile space. At this point, pundits seem to be merely saying that it "makes sense," not that they've actually caught wind of anything substantial -- but we're kinda hoping Microsoft doesn't get any ideas here. We're not seeing Microsoft pushing a non-Windows Mobile based platform onto licensees any time soon -- particularly one that relies as heavily on Java as the BlackBerry OS does -- and a BlackBerry-branded device running Windows Mobile makes about as much sense as a Mac running Wind... oh, wait.[Via BloggingBuyouts]
Hon Hai to buy Quanta?
It's been a busy day for tech acquisitions: first, Acer ponied up to acquire Gateway, which in turn was rumored to be interested in Packard Bell, and now we're hearing rumors that Quanta and Hon Hai, two of the biggest device manufacturers around, are ready to tie the knot. The rumor's actually been floating around for a while -- long enough for Hon Hai to have denied it several times -- but Quanta's CEO, Michael Wang, resigned over the weekend, in part because he disagreed with the acquisition plan. Hon Hai (also known as FoxConn) is probably best known for manufacturing the iPod, but the company isn't particularly strong in the laptop segment, where Quanta is the clear leader. Nothing's been announced yet, but it's a dramatic time in the Asian ODM world -- stay tuned.[Via BloggingStocks]
HP snaps up Neoware, looks to augment thin client biz
Just because you haven't heard a peep from thin clients in what seems like ages (the SafeBook notwithstanding), that doesn't mean that the business has keeled over, and apparently, HP believes there's still profits to be found. In a recently announced deal, HP has agreed to buy thin client computing company Neoware in a $334 million deal, and is reportedly hoping that the purchase will "increase the growth of its thin client computing business and augment its Linux software, client virtualization, and customization abilities." HP is supposedly looking to put Neoware in its business desktop unit, and while no further details were mentioned in regard to actual product releases, we should be hearing a lot more about all of this when the deal officially closes in Q4.[Via LinuxDevices]
Will Bell Canada buyout lead to a GSM conversion?
Now that BCE's $51.7 billion buyout looks solid with the potential victory going to the Ontario Teachers Pension Plan, we can finally issue a collective sigh or relief. Bell is likely going to stay Bell, no merger with Telus looms on the Horizon, and all is well and good in Canadian CDMA-land. Or is it? The Financial Post is reporting on some Analyst's predictions that will see Bell shift from CDMA to GSM. We see these types of rumors surface now and again, and while Bell likely salivates at Rogers Wireless' annual $450 million GSM roaming revenue, the cost of said conversion would be out of the park. Of course, this is all fantasy 'til we here something official but we definitely aren't counting chickens around here.
Flextronics purchasing Solectron for $3.6 billion
Don't feel bad if you've never heard of Flextronics, Solectron or both -- we polled our mom on the subject, and she asked when we were going to give up this "blogging nonsense" for a real job -- but these two fairly low-profile contract electronics manufacturers churn out massive amounts of product for other little companies you might have heard of: like HP, Dell, Sony, Ericsson, Cisco, Motorola and Microsoft. Now Flextronics is ending this bitter rivalry in a Coke buys Pepsi-type shocker, forking over $3.6 billion in cash and stock for Solectron. Flextronics will operate Solectron as a subsidiary, and claims the purchase will help it expand scale and market reach, while saving on costs, with the deal to add about 15 percent to earnings, claims the manufacturer.
The final days of Ziff Davis games according to Folio
Folio Magazine, a magazine about the magazine industry, has as their cover story for May "Ziff's Last Stand." An in-depth look at how the once great magazine empire is falling apart like a leper. Sure, it's still functional, but it isn't looking too pretty anymore. It's no secret that the games division has been up for sale with no buyers. The article lays out in no uncertain terms that the relevance of game magazines is on the decline and uses Ziff Davis' issues as the poster-child of the future to come.The prime example Folio uses is a scuffle between Edelman (a major PR firm) and an editor of PC Magazine. The battle concerned Senior VP at Edelman, Steve Rubell, publicly stating that he throws out his free subscription to the magazine. For any gaming media, when the PR guys stop reading your stuff, you can kiss access, interviews, information and general livelihood goodbye. And, in what really is the cherry on this story, the whole thing played out online.According to the article, buyers of the ZD game division are actually interested in 1UP, the company's online portal and its 13 million monthly visitors. 1UP currently competes against Gamespot and IGN's 20 million monthly visitors. The path sounds pretty solid at this point. The magazines will continue to lose readers and relevance and, if the staff survives, will probably be transferred to online. [Via GameSetWatch]
Bell Canada for sale
So, is Bell Canada ready for a buyout? Yep. Bell Canada's corporate baby daddy, BCE Inc., has announced that it's in talks with four companies -- three Canadian and one US -- to sell out in a deal that could ultimately fetch as much as $40 CDN (about $35) for a company that's currently trading in the $38.50 CDN range. Of course, this all runs counter to the firm denials Bell was issuing just a couple weeks back (no surprise there). Current indications are that none of the firms involved in buyout discussions are already in the wireless carrier biz, so our hopes (read: fears) of a US-Canadian supercarrier are, at least for the moment, dashed.[Thanks to everyone who sent this in]
Canon set to buy out Toshiba's display stake, SED production in sight?
There's not too many technologies that eventually surfaced after hitting as many snags as these long-awaited SED TVs, but it looks like the final hurdle may finally be overcome. Canon has just announced that it will buy out Toshiba's stake in the pair's joint venture in order to get that pesky Nano-Proprietary patent lawsuit off their collective backs. The lawsuit claimed that its original agreement to license technology to Canon did not extend to Toshiba, thus presenting quite the quandary when Toshiba kept trying to get its SED displays out to showroom floors. SED TV production, however, is still up in the air, as Canon said that prior plans to erect a $1.49 billion manufacturing facility in Japan is now "under review," and an analyst even mentioned that the company might end up "reconsidering growth drivers to replace SED." Nevertheless, Canon is still clinging to the idea of popping out SEDs for now, although it was mentioned that it would be "on a smaller scale," which isn't apt to give these elusive sets any kind of price advantage whenever it lands. Interestingly, Toshiba still stated that if things went smoothly, it would buy some of the manufactured SED displays directly from Canon and throw its own logo on it, theoretically bypassing the lawsuit and simultaneously snubbing Nano-Proprietary. But hey, we've got no qualms with a little joint venture competition, and considering how every other HDTV price is falling through the floor, we'll bet they need it.[Thanks, Greg]
Alltel subject of possible bidding war
Wouldn't it be great if Verizon Wireless or Sprint had features like Inner Circle? Don't get your hopes up just yet as neither are going to start marketing Alltel's ingenious plan, however some insiders (not this one either) think that Alltel might be the subject of a possible bidding war between the second and third largest carriers. If this were to happen and Verizon were to come out on top of everything, that would make them the largest CDMA carrier with close to 70 million customers. Just imagine, all those customers and they still can't manage to get the dead zone around our office cleared up
HTC buyout of Dopod in final stages: i-mate, O2, HP wail
Continuing their skyrocket beyond ODM-dom, HTC's buyout bid for Taiwanese Dopod has moved into the final stages. Having signed a memorandum of understanding, the only thing left in the estimated $150 million deal is approval from the Taiwanese government. Assuming HTC chairwoman and Dopod controlling shareholder Cher Wang, daughter of petrochemicals billionaire Y.C. Wang and wife of HTC boss-man Peter Chou VIA boss-man Wen Chi Chen has enough influence to push this through (read: she does), then HTC is about to find themselves in direct competition with their own customers O2, i-mate and HP. HTC already confirmed their decision to self-brand phones in Europe, now the Dopod deal could result in HTC designs being sold exclusively under the Dopod branding outside of Europe. In fact, HTC has already cut ties with both O2 and i-mate in Australia, New Zealand, and India. So if Dopod's claim that HTC manufactures 80 percent of Windows Mobile phones is true, well, O2, i-mate, and HP best be looking for fresh design and manufacturing blood on the quick. [Thanks, Ash]
A media company seemingly lacking a business model? Maybe Apple should buy it...
...or not. Jan's post about the latest brewing business suggestion that Apple should buy YouTube betrays a strange trend in the news and blogosphere. Apparently, if a media-related company is either floundering or doing well but lacking a sure-fire business model, they're fresh meat for an Apple acquisition.Remember the rumors of Apple buying TiVo last year? TiVo's stock shot up 17 percent simply because the rumors started making their rounds. Now these rumors of Apple buying YouTube are fluttering about, and they simply don't make any sense in my book. Apple already has a ton of branding invested in the iTMS - including a very, very healthy video offering - and (as far as I know) they're the only major service which offers their own YouTube-like, grassroots media outlet: the Podcast directory. As Jan also mentioned yesterday, anyone can get a podcast listed in the iTMS, so they've already traveled down the road of offering a strong dose of user-generated content.These claims of YouTube being a perfect buy sound a little far-fetched too - no one can figure out how they're making money (NYT even admits that in their third paragraph), and the company has never dropped even a hint to clear up the confusion. As far as everyone can tell right now, they're spending kagillions on bandwidth without much of a business model besides 'place one or two banner ads.' Let's not forget this is also digg's 'business model' at the moment, and that "Kevin made $60m" story from Business Week was thoroughly debunked as being nothing more than an estimate; they don't have a dime of that money in their pocket. In fact, they're allegedly barely breaking even - and they don't eat nearly as much bandwidth as the video-intensive YouTube.Which leads me to the mortal question: how would YouTube show Apple the money? Could Apple charge $1.99, or even $.99, for that hilarious compilation of funny cats? My gut reaction is 'probably not,' though given the things people pay for these days, I could easily be wrong there. Nevertheless, I just don't see how acquiring what must be a money-pit of a company could benefit Apple, when they already have most of the tools and features in place to offer YouTube-like services and community on their own with the iTMS.Time, of course, will tell on this one, but my money is on Jobs and co. saving their check book for a different rainy day. Just because a company is up a creek without a business model, doesn't mean Apple should be the one to toss them a paddle.
AMD acquires ATI for $5.4 billion
AMD, the #2 CPU maker in the world, has announced a purchase of ATI, a leading graphics card manufacturer, for $5.4 billion. IMG has more details on the buyout and the business end of things, but we're more interested in finding out what exactly this means for the Mac market. ATI currently supplies the graphics hardware in a good portion of Apple's machines, including the MacBook Pro I'm typing this on and my wife's iMac, so here's hoping ATI makes enough money from working with Apple to keep AMD - an arch rival to Intel - happy. Stay tuned for more details as they develop.
Sprint Nextel swallows affiliate UbiquiTel
In a move that surprises absolutely no one keeping up on the aftermath of Sprint Nextel's merger, the acquisition of Sprint affiliate UbiquiTel has closed this week in an all-cash transaction valued at $1.3 billion. In exchange for taking on UbiquiTel's $300-odd million of net debt, Sprint Nextel adds an additional 452,000 direct subscribers and gains territory in 9 states for a total of roughly 8.3 million in population. Even better, they avoid the wrath of yet another affiliate miffed by the non-compete clause busting merger, which added Nextel territory to many areas serviced by Sprint affiliates and vice versa. With the billions Sprint has now shed on affiliate buyouts, mergin' ain't as cheap as it used to be, it seems.[Via The Wireless Report]
NTL makes bid for Virgin Mobile UK buyout
Through various combinations of offers involving weird fractions of shares and certain amounts of "pence," NTL has reached an agreement of with the Independent Board of Virgin Mobile Holdings to buy out the entire Virgin Mobile MVNO. The straight up cash offer is GBP 962.4 million ($1.68 billion USD), 372 pence per share. NTL is also offering 0.23245 shares of their stock for Virgin Mobile shares, or 0.18596 NTL shares plus 67 pence each. Virgin Mobile, which operates on the T-Mobile network, is the UK's largest MVNO, at 4.3 million subscribers. NTL is also entering into an agreement that allows them to brand their TV and fixed-line phone services as Virgin. We can't say we've exactly crunched all the numbers, so it's hard to give a thumbs up or down on the fiscal validity of the offer, but we're cooking up a sweet graph in Excel right now -- drop shadows and everything.
