takeover
Latest
China clears Google acquisition of Motorola, eliminates last barrier to Googorola bliss (update)
The final significant roadblock to Google's buyout of Motorola has been cleared, as Chinese regulators have just given their rubber stamp. Their approval follows a few months after the simultaneous American and European clearances, and virtually all that's left now is to formally close the deal and start integrating the two mobile giants. It might still come too late for the combined entity to present a united front at Google I/O, but at least they won't have any awkward glances at each other across the room. We're just trying to decide on whether or not Googorola is the best pet name for the loving, $12.5 billion-dollar Android union. Update: Google has since told the AP that the deal will likely wrap up early next week, so Motorola should be part of the family well in advance of Google I/O. Also, Google has to keep Android freely usable by anyone for at least five years, although no one was expecting that to change anytime soon.
Nexon bids for EA takeover, everyone says it's very unlikely
You know Nexon, right? The South Korean MMO company that made Maple Story and ... uh ... Everplanet ... and stuff? Anyway, Nexon is a pretty big deal on the other side of the Pacific Ocean. Such a big deal, in fact, that it's looking at buying out some of its rivals, apparently including EA. MK Business News (a South Korean newspaper) reports that Nexon's Japanese headquarters spoke with EA about a potential acquisition recently.What came of those talks, however, is unclear. For its part, EA isn't offering any news. "We don't comment on rumors and speculation," is all reps told us, which you'll notice isn't a denial of said talks taking place.But could such a deal even take place? Experts don't seem to think so. "My takeaway is that this deal cannot happen," Wedbush Securities analyst Michael Pachter told GI International. "There are few, if any synergies, and no reason to believe that Nexon could run EA's assets more efficiently. Nexon shareholders would own a completely different company than what they bought in the December IPO," he added, referring to Nexon's late 2011 public stock offering.So for now, while the talk of an EA takeover is always scintillating to discuss, it's very likely not happening (at least via Nexon) anytime soon.
Vodafone looking to buy Cable & Wireless, just can't resist that fibre-optic infrastructure
UK mobile giant Vodafone is planning to buy up commercial network provider Cable & Wireless for just over £1 billion ($1.7 billion). If successful, it'll gain a national fibre-optic broadband network (separate to BT and Virgin Media's), a large portfolio of business customers and a backbone venture that connects 150 countries with undersea cables. The latter will probably be sold off so that Vodafone can concentrate on winning more enterprise customers from its rivals while also easing the burden on its own network. It's also worth pointing out that C&W previously offered retail broadband and cable services, but any notion of Vodafone using this acquisition to offer the same would be pure guesswork.
Carl Icahn smells blood in LightSquared's spectrum, descends to feed on its carrion
Oh, the twisted web that continues to weave itself around LightSquared. After incurring a seemingly endless parade of regulatory and industry obstacles, the Philip Falcone-backed network is now facing yet another potential hurdle. Except this time, it's taken the shape of investor Carl Icahn: a business magnate notorious for swooping in on downtrodden companies (see: Time Warner) and seizing control. And it appears the old man's pulled out his tried-and-true bag of tricks, securing a sizeable chunk of the fledgling 4G operation's debt following a value drop last year. What does this spell for Falcone? Well, the move could wind up positioning Icahn as a controlling force, steering the LTE operation away from its hedge fund founder's vision and into more profitable waters -- a welcome turn of events for the cash-strapped company. With FCC approval still pending, Sprint quietly retreating from its partnership deal and a looming fight for executive control, it's safe to say LightSquared's troubles have only just begun.[Image credit: Sarah A. Friedman]
God save the green: Deal makes Jagex a US company
Jagex is trading up the Union Jack for the Stars and Stripes, as controlling interest in the studio has changed hands to a US firm. Insight Venture Partners, a venture capital firm from the US, completed a deal last year to increase its ownership to 55% of the UK-based company. Previously, the firm had 35% interest in Jagex. Now that the scales have tipped to the new ownership, this technically makes Jagex a US-controlled company and has US investors leading its board of directors. While revenues were up 2% for Jagex in 2011, both operating and net profits were significantly down from the previous financial year. Jagex is a major player in the MMO free-to-play market, with RuneScape, Transformers Universe, and 8Realms as part of its project portfilio. Develop reports that the controlling interest was made possible by Jagex co-founder Andrew Gower selling off his ownership claims to the firm for $115.65 million. As part of the deal, Jagex paid $3.85 million in expenses. The studio will remain in Cambridge while its controlling firm is in NYC.
Eldar Murtazin gives RIM six months to win back customers, says Nokia is selling its soul to Microsoft
Murtazin is a guy well known for scoring handsets way ahead of even their debut showing. He also has an uncanny knack of knowing exactly what mobile companies are plotting -- sometimes. He's a guy worth listening to, especially for his often outspoken views on company failings. In his latest (lengthy) editorial, Eldar Murtazin takes umbrage with two companies that have weathered a tricky 2011; RIM and Nokia. He reckons that the BlackBerry makers have around six to eight months to convince people and the markets that there's still a future -- a worrying deadline given that we're not expecting to see its OS successor until the second half of 2012. Regardless of when these long-awaited QNX handsets do appear, Murtazin maintains that even if they arrived with the kind of OS that dreams are made of, they are unlikely to recover the ground lost in recent years -- especially on corporate handsets. However, he saves most of his ire for the Nokia-Microsoft partnership, claiming that Nokia executives have lost their ability to sensibly judge the state of the mobile world. With apparently the "most valued" engineers and developers leaving the good ship Nokia, the shuttering of Nokia's own Ovi sync services are apparently talismanic of a shift closer to Microsoft. Murtazin thinks that Nokia CEO Elop has only two aims while at the helm; to ruin the company's chances of recovering in the mobile market and increasing Microsoft's own share and influence in the same sphere. He also reckons a Microsoft buyout of Nokia is still plausible, and while we're sure you've been reading Eldar's missives with a hefty side of salt, it would make for an even more interesting 2012.
AT&T asks court to dismiss lawsuits filed by Sprint and C Spire Wireless
Well, look at Ma Bell now, wishing it'd all just go away. Tied up in lawsuits, the company has filed motions to dismiss the two complaints brought by Sprint and C Spire Wireless (formerly Cellular South), which seek to block AT&T's acquisition of T-Mobile. In the filings, it's argued that the two providers represent their own interests, rather than that of the public. AT&T further reveals that C Spire had pursued private negotiations prior to the lawsuit, where the regional provider agreed to support the merger "if AT&T would agree not to engage in facilities-based competition in Mississippi." Ma Bell goes on to state, "This inappropriate proposal confirms that what Cellular South fears is competition, not lack of competition." Given the latest maneuver (which smacks heavily of PR spin), there's no doubt that lawyers for Sprint and C Spire will have a bit of homework for the weekend.
Cellular South files antitrust lawsuit against AT&T over proposed T-Mobile takeover
Sprint and Uncle Sam aren't the only ones taking issue with AT&T's proposed acquisition of T-Mobile, because Cellular South has a bone to pick, as well. Yesterday, the provider filed a lawsuit against AT&T in a DC federal court, charging that its $39 billion merger with T-Mobile would violate US antitrust laws. "The merger of AT&T and T-Mobile is anti-competitive, and will result in consumers facing higher prices, less innovation, fewer choices and reduced competition," Cellular South said in a complaint. The company went on to argue that legal evaluation of the merger must incorporate the perspectives of smaller, regional carriers who, like Cellular South, will "find it harder to secure both wireless devices at competitive prices and times and nationwide roaming." An AT&T spokesman declined to comment on the case, but you can find more details about it at the source link below, or in the full press release, after the break.
AT&T reportedly talking to rivals about asset sales in effort to save T-Mobile deal
It's far too early to be writing it off, of course, but AT&T's proposed acquisition of T-Mobile is facing some fairly significant hurdles that could throw a big wrench in the companies' plans -- not the least of which is a lawsuit from the US Department of Justice. Now, according to Blooomberg, AT&T is proactively talking to a number of smaller rivals about selling some of its assets (namely, "spectrum and subscribers") in an effort to save the deal. While talks are described as "preliminary," AT&T has reportedly already reached out to MetroPCS, Leap Wireless, Dish Network, CenturyLink and even Sprint, although Bloomberg notes that any such sell-off may still not be enough to please the DOJ. As you might expect, all of those companies are remaining mum on the matter.
Sprint in alleged talks to acquire Clearwire, cablers huddle 'round for some LTE pie
'Tis the season for patent disputes and wireless industry takeovers, or so a recent glut of moves would indicate. Shedding a little light on Clearwire's recently announced allegiance to LTE, Bloomberg is reporting that the company's currently in talks to sell its business to Sprint, and perhaps secure the funding it so desperately needs for a network build out. According to several insider sources, the third place wireless carrier's considering a joint investment (amongst other options) with Comcast, Cablevision and Cox, that would give the cablers a bundled high-speed, wireless broadband competitive advantage, and Sprint an LTE boost in its battle against AT&T and Verizon's rival 4G networks. None of the players in this rumored takeover have yet to comment on the purported transaction, although the business gossip has had quite an uplifting effect on Clearwire's shares. While we can't speculate as to the veracity of the claim, we know one thing for sure -- that LTE network's not gonna build itself.
Official: Ricoh set to acquire Pentax camera brand and business, get serious about digital imaging
Reuters is reporting a bit of board room activity in Japan this morning, which could, by the end of today, result in Ricoh purchasing the Pentax brand and camera business from current owner and proprietor Hoya Corporation. The global news agency points out that Hoya's initial acquisition of Pentax, back in 2007, was primarily motivated by its eagerness to acquire Pentax's medical technology, and although the company's had a slew of strong products since then, it probably makes sense for Hoya to pass the digicam work on to someone who might feel more invested in it. For its part, Ricoh also has a well respected line of digital compacts, but lacks the DSLR lineage and experience that Pentax brings. Provided this deal goes through as rumored, and Reuters has three sources who say it's imminent, the only question we've got to ponder is whether the Pentax naming will take over for Ricoh's slightly less recognizable branding or vice versa. Update: That was quick! Hoya has confirmed the sale. Thanks, Ben! It is as reported earlier: Hoya will hang on to the rights to manufacture and develop products for the medical field, while Ricoh is gobbling up the Pentax Imaging Systems products with a view to expanding its presence in the consumer digital camera market.
Bill Gates considers Skype 'a great purchase' for Microsoft, helped make it happen
The aftermath of Microsoft's announcement that it'll buy Skype for $8.5 billion was filled with speculation about why the price was so high, who Microsoft was bidding against, and who inside Redmond was the driving force behind such a large expenditure. At least one of those queries has been demystified today, thanks to Bill Gates asserting himself as "a strong proponent at the board level for the deal being done." Microsoft's Chairman of the Board expressed his enthusiasm for gobbling up Skype in an interview with the BBC -- one which UK residents may see in full at the iPlayer link below -- and concluded that "it's a great purchase that a lot of innovation will come out of." Adding his support to Steve Ballmer's already public excitement about the Skype takeover, Bill stresses that "the importance of software is higher today than ever," while also predicting that video conferencing is set to become much better and bigger than we've yet seen. We've got our webcams at the ready, Bill!
Eldar Murtazin: Microsoft will enter negotiations to buy Nokia's mobile division next week
Yes, this is a rumor, and by golly it strains the limits of credulity, but take note of its source. Firstly, the details: according to Eldar Murtazin, Microsoft and Nokia will enter talks next week to discuss the potential for the American software giant to purchase the Finnish company's mobile arm, meaning the part that makes all those delectable smartphones. Eldar's not been able to dig up any further intel, but expects a deal could be closed as early as the end of this year. We're inclined to believe there's at least some semblance of truth to Eldar's words because of his track record. Way back in December of last year, when nobody believed Nokia would deviate from its Symbian strategy, Eldar reported the similarly incredible-sounding news that Microsoft and Nokia were in discussions about the latter using Windows Phone as its main smartphone OS. That turned into reality this February, and more recently, the Russian mobile spy managed to also accurately predict Nokia killing off the Ovi brand in favor of an eponymous naming scheme for its services. And that's all on top of Eldar's knack for obtaining Nokia prototypes way ahead of release. So, assuming for a moment that Microsoft does indeed have its eyes set on turning Nokia's handset business into its own mobile hardware division, what would it all mean? Well, we can only see this making sense for Espoo if underwritten by a humongous check from Microsoft, but that might not be a problem. The Redmond camp has recently shown its determination to get what it wants by spending $8.5 billion on Skype, and previously offered north of $44 billion for Yahoo, a good deal more than Nokia's total market cap of around $32 billion. Let's not forget, Nokia once used to manufacture galoshes and tires, so it already has a history of transformative change. And hey, having an ex-Microsoft guy at the top means that if this kind of move were to ever happen, now might just be the right time for it. Update: As Reonhato pointed out in comments, Mark Squires, UK Communications Director for Nokia, has already issued an uncharacteristically pointed non-comment. "We typically don't comment on rumors. But we have to say that Eldar's rumors are getting obviously less accurate with every passing moment."
Reuters: a failed takeover of T-Mobile would cost AT&T as much as $6 billion
AT&T's proposed acquisition of T-Mobile was a big deal as soon as it was announced, but now Reuters has unearthed some more context to lend it even more cruciality. We already knew that in the event of AT&T&T-Mobile failing to garner regulatory approval, AT&T would owe Deutsche Telekom, the current owner of T-Mo USA, $3 billion in cash, some spare AWS spectrum, and a roaming agreement "on terms favorable to both parties." Reuters' sleuths say that the spectrum in question is worth $2 billion and the roaming deal a further $1 billion, bringing the total breakup payout to a hair-raising $6 billion. Given the wording of the two companies' deal, we don't expect the roaming part of that settlement would be free for T-Mobile (so $6b looks to be a bit of an over-estimation), but the fact remains that AT&T is staking a whole lot of moolah on this takeover going through. Whether it does or not, Deutsche Telekom's René Obermann (above left) looks assured to still be laughing this time next year -- but will the same be true of AT&T's Randall Stephenson?
Intel licensing Kno hardware for partners with manufacturing knohow
A month or so ago, we reported that Kno was looking for a way out of the tablet hardware business and intended to transition itself into a purely software-centric operation. Well, now Bloomberg and All Things D tell us that a deal has been worked out to make that desire a reality. A $30 million investment round led by Intel Capital has reportedly been arranged, whose stipulations include granting Intel a license to the hardware designs and blueprints of the original dual-screen tablet. Chipzilla's share of the new buy-in is estimated at around $20 million, though before you start fantasizing about what the company's financial and R&D muscle could do for the platform, we should note that it apparently doesn't intend to build any tablets of its own. The goal is simply to obtain the knohow and share it with its OEM partners (while inevitably tying that gesture of goodwill to more chip orders). As to Kno itself, it'll try to exploit the new cash in its continued efforts to become an educational software delivery platform benefiting from its many partnerships with academic institutions. Knowledge is power, after all. Update: Not that there was much doubt, but this deal is now completely official. Press release is after the break.
T-Mobile answers its customers' most Frequently Asked Question: no iPhone
Never mind the practicalities of T-Mobile and AT&T using different 3G bands, Apple not having approved any deal for extended distribution of its phone, or the fact AT&T's acquisition of T-Mobile isn't set to complete for another year. The immediate reaction to AT&T agreeing to buy T-Mobile USA was to ask, "so that means the iPhone's coming to T-Mo, right?" Well, wrong. T-Mobile has delivered an FAQ on its site informing customers about the forthcoming transition, including the unequivocal notice regarding the iPhone: "T-Mobile USA remains an independent company. The acquisition is expected to be completed in approximately 12 months. We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G and coming soon our new Sidekick 4G." So that settles that (for a year, anyway). In other news, service and billing won't be changing, and there's a promise that T-Mobile devices will continue to operate as they do now even after the acquisition is complete. Ominously, however, the company fails to answer its own question about pricing changes, stating only that it'll honor "all contracted plans that are entered into before the change of ownership."
AT&T agrees to buy T-Mobile USA from Deutsche Telekom for $39 billion (update)
Wowzers! AT&T and Deutsche Telekom have entered into a definitive agreement for the sale of T-Mobile USA for $39 billion in cash and stocks. The combined customer base of this upcoming behemoth will be 130 million humans, though the agreed deal will have to pass the usual regulatory and closing hurdles before becoming complete. The two companies estimate it'll take them 12 months to get through all the bureaucracy -- if they get through, the proposed network merger will create a de facto GSM monopoly within the United States -- but we don't have to wait that long to start discussing life with only three major US carriers. AT&T envisions it as a rosy garden of "straightforward synergies" thanks to a set of "complementary network technologies, spectrum positions and operations." One of the other big benefits AT&T is claiming here is a significantly expanded LTE footprint -- 95 percent of Americans, or 294 million pops -- which works out to 46.5 million more than AT&T was claiming had it gone LTE alone. Of course, T-Mobile has never put forth a clear strategy for migrating to LTE, suggesting that AT&T plans on using the company's AWS spectrum to complement its own 700MHz licenses as it moves to 4G. You might be groaning at the thought of yet another LTE band, but it's not as bad as you might think: MetroPCS already has a live LTE network functioning on AWS, so there's precedent for it. For further details, hit up the gallery below, the Mobilize Everything site, or the official press release after the break. In the event of the deal failing to receive regulatory approval, AT&T will be on the hook for $3 billion to T-Mobile -- a breakup fee, they call it -- along with transferring over some AWS spectrum it doesn't need for its LTE rollout, and granting T-Mo a roaming agreement at a value agreeable to both parties. Update: TmoNews obtained a copy of Deutsche Telekom's press release regarding the deal -- it looks like the German company will be getting $25 billion in cash and $14 billion in stock, giving it an 8 percent stake in AT&T when all is said and done. Read the full document after the break. %Gallery-119355%
Comcast's NBC Universal takeover becomes official tonight
By the stroke of midnight tonight, it will be officially done, Comcast will have taken control of NBC Universal, paying general electric $6.5 billion and tossing its own cable channels into the new NBCUniversal joint venture. It's been a long ride, from the first rumor, to an agreement, to a review period by the government that stretched over all of last year. Just a few months ago it was tough to imagine Versus and Syfy sharing a home and yet, here we are. Here's a quick recap of some of the milestones along the way, although exactly how this will impact the future of video via broadcast, cable and internet remains to be seen. Update: It's done, the official press release follows after the break. 10/1/09 - Comcast denies possible purchase of NBC, claims it can only offer a window 12/1/09 - Comcast deal to buy NBC is done, will be announced Thursday 12/3/09 - Comcast takes control of NBC, promises not to crush Hulu 03/12/10 - NBC-Comcast deal comes under Justice Department, FCC scrutiny 12/25/10 - FCC proposes rules for NBC-Comcast deal 01/18/11 - FCC approves Comcast's purchase of NBC (Update: Justice Department too, it's done)
Konami taking full control of Hudson
Konami is in the process of making Hudson a wholly-owned subsidiary through a stock swap. The Metal Gear Solid and Castlevania publisher currently owns a little over 50 percent of the company Bomberman built. Hudson's stock will be delisted and its CEO replaced at the end of Konami's fiscal year on March 31. Konami reportedly wants to absorb Hudson's know-how in the mobile space and its IP. There's also the expectation of name changes and a likelihood of redundancies as the business operations are combined.
Seagate reportedly turned down takeover bid from Western Digital
File this one under industry-changing mergers that never were -- Bloomberg is reporting that Seagate rejected a takeover bid from rival Western Digital in October, which would have created a hard drive company to dwarf all others. According to "two people with knowledge of the matter," Western Digital was willing to offer as much as ten to fifty percent more than a competing takeover proposal from TPG Capital, which had already put more than $7.5 billion on the table for Seagate. As you might expect, however, the sheer size of the merger was apparently largely responsible for its refusal. Not only would it have created a huge amount of product overlap and likely led to numerous management departures, but it would have almost certainly faced some pretty significant antitrust obstacles. Of course, neither company is actually commenting on the matter itself and, for the time being at least, it looks like Seagate is content with going it alone.
