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A generic HIV prevention drug should arrive in 2021
Pharmaceutical giant Gilead has agreed to release its exclusive patent to manufacture and sell the HIV-prevention drug Truvada. This means we could see a generic version of the pre-exposure prophylaxis (or PrEP) on the market earlier than expected. The news is seen as a win for individuals who may be at a greater risk of contracting HIV.
AT&T plans to shut down entire 2G network by 2017
AT&T has only just begun the transition away from 2G services with its spectrum refarming in New York City, but it now has a target end date to mark on the calendar: January 1st, 2017. Courtesy of an SEC filing, we know that the carrier hopes that both its GSM voice and EDGE data networks will have gone to the great cell tower in the sky before we're popping the champagne corks about four and a half years from now. The Big Blue Ball expects the transition to be a smooth one, as only 12 percent of its regular subscribers are using 2G-only phones today; if it ever gets bumpy, the company promises to "proactively" steer the holdouts towards 3G and 4G. Don't get too misty-eyed. While the transition will mark the end to what's arguably one of the most definitive chapters in US cellular history, that far-flung date will likely come well after most of us have moved on -- much like the AMPS shutdown, it could be less of a bang and more of a whimper.
Sprint reveals it spent $15.5 billion to fuel its iPhone hunger
Sprint's SEC filings have revealed that the carrier has committed to purchasing $15.5 billion worth of iPhones as part of the long-promised $20 billion gamble. If each handset costs around $630 at trade, then we're talking about the network holding nearly 24 million units. Given that the company most recently ate a loss of $1.3 billion, most of which was caused by carrier subsidies for the 4S, there's a genuine fear that the company won't be able to make enough back on each customer to offset the initial outlay. Given the Baller-style purchasing decisions of Dan Hesse of late, we'll be watching how this unfolds with great interest and our fingers very firmly crossed.
Google outbid itself by 33 percent in Motorola Mobility acquisition, SEC filing reveals
Google's acquisition of Motorola Mobility is already starting to lose that new car smell, but a fresh batch of financial details has now emerged, providing deeper insight into how the deal actually went down. According to an SEC filing that Motorola Mobility released yesterday, Google made an initial offer of $30 per share on August 1st, but soon raised that bid to $37 per share on August 9th, after Moto and its advisers asked for $43.50. On that same day, Google again raised its offer to $40 per share, even though Motorola wasn't accepting bids from other firms, for fear that a public auction would jeopardize its sale. This 33 percent increase ultimately added some $3 billion to the pot, bringing the final price tag to $12.5 billion. A Mountain View spokeswoman declined to comment on the negotiations, though its aggressive bidding suggests that the search giant desperately wanted the deal to go through. The documents also reveal that patent-related issues were at the forefront of discussions from the very beginning, when Google's Senior Vice President Andy Rubin met with Motorola Mobility CEO Sanjay Jha to talk about their mutual concerns, way back in July. According to the Wall Street Journal, these talks eventually convinced Jha that his company would be better off under Google's stewardship, amid fears that Moto could get swallowed by the stormy seas of patent litigation -- anxieties that the exec made all too apparent just four days before the merger was announced. You can dig through the full SEC filing at the source link below.
Barnes & Noble to release new e-reader, according to securities filing
It's not often that we get word of a new gadget by way of an SEC filing, but Barnes & Noble has broken with tradition with an 8-K report that reveals its intentions to introduce a new e-reader. The form, filed earlier today, says that the company "indicated it expects to make an announcement on May 24, 2011 regarding the launch of a new eReader device," and goes on to say that the form was filed "solely to satisfy the requirements of Regulation FD." Said regulation was instated back in 2000 to address concerns over insider trading. All that sounds good to us, but we wish there was a clause that required them to include a spec sheet. Considering the Nook Color just got Froyo, is it possible we'll be seeing a Honeycomb version come the 24th? It looks like we'll just have to wait and see.
Palm's SVP of software and services takes off, others given cash, stock to stick around (updated)
No one really knows exactly what's going on inside the walls of Palm HQ this week -- whether the company will sink or swim is perhaps a bigger question right now than it has been since its rebirth last year, and if it does swim, whether it remains independent is another matter altogether. In an SEC filing today, Palm quietly revealed that its senior VP of software and services -- Michael Abbott (pictured above), a man who has been largely responsible for webOS as a platform and the critical Mojo and Ares SDKs -- will be gone as of April 23. More interestingly, though, it had to hook up a couple other key players with stock packages and $250,000 in cold, hard cash to get them to agree to stick around for a couple years: Jeff Devine, SVP of global operations, and Doug Jeffries, the CFO. Yes, that's right -- Palm's chief financial officer may have damn near split in the past few days, which is never a good sign for a company whose financial stability is in question. More on this situation as it develops. [Thanks, Herman] Update: Since our original report, a number of SEC Form 4s have crossed the wire, indicating that Palm is handing out various quantities of shares to pretty much everyone on the executive roster. Acquisitions frequently involve retention deals for key company players to make sure that the buyer's new assets aren't instantly brain-drained, so it's entirely possible that this is all a harbinger of an impending deal.
Activision CFO Thomas Tippl now COO
Acitvision chief financial officer Thomas Tippl was recently promoted to the position of chief operating officer at the publisher, and will serve double duty as temporary acting CFO while a replacement is found. A filing with the Securities and Exchange Commission from last week detailed the executive swap (titled the "Tippl Amendment," effective as of March 23), including an $885k annual salary, stock options, an annual raise "at least equal to the average [undisclosed] percentage increase" (pending approval by the board), and a yearly performance-based bonus of "120 percent of his base salary [$1,062,000]." The wonderfully candid thing about SEC filings is that there's little room for spin or marketing, but the downside is all the financial jargon -- like the fact that part of Tippl's new contract entitles him to a grant of 225,000 "performance shares" that "vest ratably." This means we're put in a position where we're telling you about stuff that is at the least pretty confusing and likely kind of meaningless. So let's break it down! "Performance shares" are, according to Investopedia, "shares of company stock given to managers only if certain company wide performance criteria are met, such as earnings per share targets." Meaning, in so many words, that Activision has to meet a certain performance level in order for Tippl to earn said shares. That they will "vest ratably" is only to say that on Feb. 15 of each year for the next four years, he will earn part of that eventual 225,000-share goal (in 2014) ... should he stay in his position for all that time, of course. And finally, this is all based on the prediction that he delivers a higher or equal to non-GAAP earning per share when compared to the previous year. In short, he has to either break even or make money to get the stocks, and he has to maintain that for the next four years. Quite a tall order, sir! [Via Edge]
Blockbuster plans to part with 960 retail stores by end of 2010
Seriously, Blockbuster can't seem to get a break. In a recent SEC filing, the company identified 18 percent of its retail outlets it deemed unprofitable and announced plans to close up to 960 stores by the end of 2010. That's divided into up to 685 by the end of this year and the remaining 275 the year after, but the filing continues to say that up to 1,560 locations, or 22 percent of its total retail coverage, could end up falling the wayside. Another slide indicates how the company sees itself going forward, with an expansion of kiosks and its Total Access subscriber base, and putting OnDemand in "nearly every connected device." Of course, if this brings Blockbuster back to profitability as it expects to be, then more power to it, but it's clear that the one-time king is fighting wars on a number of sides and has a long way to go if it intends to stay afloat, much less reclaim its crown. [Via CNET]
Apple's 10K filing shows $3.34 billion in 2008 iTunes sales
Apple's annual SEC 10K filing showed that music-related sales increased by US$844 million (or 34%) to $3.34 billion in fiscal 2008, up from US$2.5 billion in 2007. Apple cited "heightened consumer interest in downloading third-party digital content" as the reason for the hefty increase. Apple noted increased net sales from the iTunes Store in each of its geographic regions. An increase in the amount and types of content available at the iTunes stores was pegged as part of this growth. Apple is the largest U.S. music seller, having knocked Wal-mart from the #1 spot in April of 2008. The revenue figures for the music-related business do not include iPod or iPhone sales.[via eWeek Apple Watch]
Harry Potter delay cost EA $120m this year
Profitus Reducto! In an SEC filing yesterday, Electronic Arts revealed exactly how much stock it put in the Harry Potter and the Half-Blood Prince game, which was delayed until Summer 2009 alongside the movie (both were originally slated for November 2008): The publishing giant was expecting the Boy Wizard to pull in $120 million in revenue for this fiscal year. The filing offers no indication as to its new fiscal forecast for this year nor how much it now plans to profit from the game in its new release window of next Summer. As to the latter, we're guessing oodles of monies is still a proper metric.[Via Edge]
