takeover
Latest
FCC, Justice Department look to prevent Comcast from hogging NBC's online video all for itself
Ready or not, Comcast and NBC will walk down the aisle in matrimony -- but it'll not be without a few conditions. According to The Wall Street Journal, both the FCC and the Justice Department are expected to impose conditions on how NBC online video is distributed online, to ensure the cable operator (with online video distribution channels of its own) doesn't withhold or threaten to withhold NBC Universal content from rivals -- both Netflix and Apple are specifically cited by WSJ. The FCC is additionally considering restrictions on Comcast slowing down / blocking "legal traffic" from its internet network, maintaining a pro-net neutrality stance. Chairman Julius Genachowski is currently meeting with staffers twice a week on the deal, with the timetable of circulating proposed conditions by mid-December -- narrowly avoiding sweeps week, unless 30 Rock has an idea or two up its Kabletown-owned sleeve.
Apple, RIM, Google all bid on Palm?
We're having a hell of a time believing this, but BusinessInsider's Dan Frommer is citing "a source familiar with the negotiations" as saying that RIM, Google, and Apple -- yes, Apple -- were all in the mix for Palm at one point or another as the bidding war went on earlier this year. We all know how that story ended up playing out, but prior to HP's winning bid, RIM allegedly made a generous offer and could've ultimately come away with the prize had it not failed to re-up the bid (and may have even reduced it, looking at Palm's SEC filings) after HP made its move. For its part, Google apparently made some not-too-serious moves, primarily in a perceived head game with Apple. Speaking of Apple, the company was said to be in it primarily for Palm's sizable patent portfolio -- but is claimed to have also been interested in keeping the platform alive, possibly in an effort to compete in the physical QWERTY market where the iPhone has not. Of course, if you look way back, it's important to remember that Mac OS X itself is based on outside work (if you consider NeXT "outside"), so we guess that keeping webOS alive in some capacity after an Apple acquisition wouldn't be totally unprecedented -- but it'd still be really, really weird at best.
UK rumor has Apple eyeing takeover of ARM
Say hello to the rumor du jour: Apple is considering a bid for ARM Holdings. The Web site for the London Evening Standard says that investors across the pond seem to like the Apple/ARM idea; so much so that shares of the chip designer jumped from by 8 pence to just over £2.51 by midday, a 3.2% gain. [Share prices corrected –Ed.] It's hard to tell where, exactly, the rumor came from. According to the paper, "the takeover speculation was fueled by stellar second-quarter figures from Apple (on Tuesday) smashing Wall Street's forecasts," though there was nothing about such a buy mentioned on Apple's earnings call. Still, Apple is ARM's biggest customer, and traders in the UK seem to think the idea is a good one. The price would be pretty steep for an Apple acquisition, though. Traders mentioned in the piece say that ARM could fetch more than £5.2 billion, or roughly US$8 billion. While Apple's got the cash, its recent purchases have cost much less, such as the Quattro Wireless buy in January for around $275 million, and the 2008 purchase of P.A. Semi for a rumored $278 million.
THQ takeover talk causes stock bump
THQ's stock jumped up a solid 13 percent yesterday over whispers that the publisher is in a takeover company's line of sight. Optimism has recently surrounded the once fumbling publisher, as it pulled off a couple retail successes and has put on a good show with some surprisingly frank talk about its future. However, as much as investors believe a buyout is in the works, Reuters spoke with an analyst who isn't so sure. MKM Partners analyst Eric Handler says rumors of a THQ buyout crop up almost every quarter. He believes THQ still has too many licensed games and is just starting to build a solid foundation of owned intellectual property. Yeah, well ... we talked to an analyst, too. Wedbush Morgan's Michael Pachter tells us he doesn't believe a buyout is likely either. He concurs, "THQ is heavy on licensed content, and many licenses potentially terminate on change of control. I don't see their recent performance instilling a lot of confidence in their ability to manage a bigger library of content that would be presented in a media buyout." Hmmm, from where are investors getting this buyout notion then?
Samsung says it's absolutely not pursuing SanDisk any longer, just listening to Blood on the Tracks for no reason
Not sure why Samsung felt the need to reassure investors and the SEC that it's no longer pursuing SanDisk after its buyout offer was withdrawn back in November, but here we are, reading about it in the Wall Street Journal. Apparently the two companies signed a patent-licensing agreement in May, so we'd imagine that's kept lines of communication open -- but we have to warn you, Sammy: getting off that friends ladder ain't exactly easy. Maybe it's time to move on, you know?
Blizzard renews TeliaSonera agreement
Blizzard has renewed their agreement with a company called TeliaSonera to provide bandwidth for them in Europe. They just made a very similar deal with AT&T for the US -- it's the bandwidth that connects their servers to the millions of connections that lead back to your computer as you play World of Warcraft. Paul Sams, Blizzard COO, says they've been pleased with the service, and that the contract renewal was for two years.It's interesting that we've seen Blizzard keep both of these agreements intact, but we already know that they'll cancel relationships they don't see as working (with the notable example of Netease's takeover in China). Of course, there are tons of factors that go into players' connections (including this server connection as well as your own ISP, your router and computer, and a number of other facilities and stops in between), but it would seem that Blizzard is happy with the way things are going in both the EU and the US with these providers. Of course everyone's personal experiences are different, and we've certainly seen our share of connection issues, but in general, the infrastructure on the networks is in a pretty good place.[via WorldofWar]
Analyst rabble-rousing: 'Chatter' suggests Apple eyeing EA takeover
Let's take this one super slow, okay? There is analyst talk that Apple -- that iPhone company -- may be considering a takeover of Electronic Arts. Investor Guy Adami notes there is "chatter" about the move, according to The Street. Meanwhile, TechNewsWorld reports Parks Associates VP Kurt Scherf sees Apple looking for "low-hanging revenue" in the game space. It appears that much of this talk is related to Apple hiring some game-related folks, like ex-Xbox strategy honcho, Richard Teversham, and a few tech-related guys.Gamasutra spoke to Michael Pachter, the pope of game industry analysts, who finds the whole conversation "retarded." He points out that Apple could buy Warner Music for $3 billion -- thereby controlling 20 percent of the recording industry for its iTunes service -- instead of purchasing EA for twice that (EA's market cap is currently about $6.9 billion). He also notes that Apple owns no entertainment content, meaning that the company would be entering a brave new world if it got into EA's jammies.For our part, we are staying way the hell away from this highly flammable situation until someone slaps some evidence down on the table.[Via Edge]Source -- 'Fast Money' Recap: Does the Rally Have Legs? [The Street]Source -- Apple Beefs Up Gaming Presence With New Execs [Gamasutra]Source -- Is It 'Game On' for Apple? [TechNewsWorld]
Eidos stays independent following Square Enix acquisition
Despite having all of its hit points gobbled up by Square Enix, Eidos still expects to remain autonomous of its new parent company, saying in a press release that Eidos will continue to function as "an independent operation, as a wholly-owned subsidiary" of the role-playing giant. To drive this home, Phil Rogers will stay on as the CEO at Eidos, where he will report directly to Square Enix boss Yoichi Wada, who calls the union an "international marriage." Aww, we forgot to bring a gift. Eidos was finally acquired by the Japanese company last week for £84 million. However, despite our suggestions to the contrary, the British pub will still answer to the name Eidos instead of adopting something a bit more creative.
Court approves Square Enix buyout of Eidos
We're really beginning to understand why more corporate buyouts don't happen. It was reported yesterday that a court has approved the Square Enix purchase of Eidos -- the third and (hopefully) final approval the Japanese publishing house needs before officially acquiring UK-based Eidos. According to Gamasutra, Eidos' board of directors confirmed the transfer of the company's titles Tomb Raider and Deus Ex (among others), while the court has acknowledged its delisting in the company's native country, effective as of last night.And so it seems all there is left to do now is make silly combinations of the companies' names, as per the image above. Squeidos? Square Enixos? Kane & Enix: Dead Square? Alright, we're reaching a bit much with that last one ... we'll admit it.
Square Enix to buy out Eidos in May
Eidos and Square Enix have agreed upon terms for the proposed buyout of Eidos's share capital by the Japanese publisher. Eidos shareholders are "expected to approve the deal" later this month, according to MCV, which suggests that a growing number have seen the light (where "the light" means "Square Enix's books"). Bad news for those of you planning to buy Eidos stock for a friend as a birthday present next month: Eidos will suspend trading of its shares on April 21, with its listings to be taken down the next day, in anticipation of this deal. The companies are planning to have a settlement in place by May 6, at which point we assume Eidos staff will use the sudden windfall to upgrade their weapons and armor.
Square Enix acquires more Eidos stock
Square Enix is working its way around Eidos' sphere grid of stock holders and leveling up for, what appears to be, its inevitable takeover of the British publisher. GI.biz reports that two major Eidos investors have sold 11.13 percent of the publisher's total stock to the Moogle master at 32 pence a share.Using fancy business language, Square Enix claims it has "irrevocable undertaking" of 32 percent to vote in favor of the acquisition. That may be the "irrevocable" figure, but we learned Squenix previously had about 45 percent -- chances are, that number has gone up. It appears that Square Enix will finally get that Western developer it's been craving for a while.
Square Enix behind Eidos takeover bid
Dear Diary,I've finally learned the identity of the man I've come to describe as "my secret admirer," or "my irritating stalker" whenever he attempts to serenade me with one of those dreadful J-pop ditties. You know ... this revelation explains his questionable taste in high-pitched music, not to mention the fact that he wears a suit made entirely of Tetsuya Nomura belts. Oh, Mr. Square Enix, how long have you loitered outside my manor window, hoping to catch a glimpse of my recently sagging assets?According to a letter sent to my lawyer type persons, Mr. Enix has offered to purchase Eidos (the company I helped build in the '90s) in an 84.3 million pound bid -- that's roughly 38 million kilograms $120 million. I find it immeasurably flattering, especially with him labeling my Tomb Raider plays as one of the most successful franchises "of all time." While my people have yet to come to a final agreement with his people, the deal values my company's shares at 32 pence a piece -- that's quite a premium! He calls the courtship a strengthening of his "broad portfolio of market leading franchises," but I think he's really just lonely, stuck with all those "RPGs."Speaking of which, Winston just told me there's an exotic and highly endangered marmoset running about the mansion courtyard. Better grab some explosives and blow its legs off before it gets away.-- Lara
Eidos stock up following buyout talks
Eidos share prices have been positively bouncing this morning. GI.biz reports that yesterday's acknowledgment of a takeover bid sent the stock up 40% to 17 pence. The shares are currently maintaining an increase from yesterday's closing price.Investors may be optimistic, but there's still no word on the mystery company interested in Eidos. Current speculation is that Warner Bros. is the one making a move, having already taken over 20% of the publisher. Eidos' woes were renewed recently after sales of Tomb Raider: Underworld did not meet expectations.
Wild speculation: Disney to buy EA in 2009
Electronic Arts' dwindling stock could soon be trading in Disney Dollars. Just as the Wall Street Journal advised back in November, a new Variety report suggests that Disney may be interested in purchasing EA in 2009 in order to "jumpstart itself to a lead position" in the video game market. It's a small world after all.While like EA, Disney stock has recently taken a trip south, the report speculates that such a move would help spur revenue growth at the animation giant in the face of waning DVD purchases and slow-to-start Blu-ray and digital download sales. Of course, the cash flow from EA-themed stuffed animals, snowglobes and keychains hocked at the Disney Store couldn't hurt either.
Mike Morhaime wins 2008 award from OC* Business Journal
The Orange County Business Journal has awarded none other than Blizzard's own Mike Morhaime with the runner up for their Businessperson of the Year award (the main award went to some CEO of an investment company, much more boring than running a fantasy world full of orcs and elves). The Journal cite's Blizzard's huge successes in a rough financial year as reason for Morhaime's honor.The paper isn't quite completely familiar with what Blizzard does (did you know Diablo III was "released" in June of last year? Don't know why I haven't seen it on store shelves yet!), but there are a few interesting tidbits in there for us, including the fact that WoW was so popular on its original release day that Blizzard had to bring employee copies out to their Fry's to sell them to hungry fans. And Morhaime talks a bit about Blizzard being part of Activision, and reveals the biggest change we've heard of yet since the takeover: "The big difference here is we are one step closer to the public markets. It requires that we spend more time than we used to in educating analysts and investors about Blizzard, where we used to be able to not deal with that side of the business."So hopefully Blizzard's higherups aren't spending too much time trying to sell stock rather than making great games. He does reiterate, however, that Activision has continued to be hands off (especially as long as Blizzard is making so much money for them), so a lot of the things that fans have guessed are Activision influences are probably decisions that Blizzard themselves have already made. Still, success is success -- pretty good for a guy who started out writing test software for Western Digital. Congrats to Morhaime on the award.*Don't call it that.
Take-Two spent $11 million preventing EA takeover
Security and Exchange Commission filings by Take-Two reveal the publisher spent $11.1 million to keep Electronic Arts at bay during its seven-month-long takeover attempt. Gamespot reports that Take-Two incurred the costs during the "strategic review process" of the EA offer.For better or worse for investors, Take-Two won its battle against EA and remains independent. Although, investors can't be too happy to see the stock they could have gotten $25.74 for during the EA offer currently trading around $8 per share*.*In fairness, game stocks in general are down. Apparently something to do with an economic crisis.[Via GameDaily]
$52 billion BCE takeover deemed dead, funeral planned for next week
Man, this one has been a bumpy ride, and oddly enough, it's not even over. Well, it's over, but not over. The back-and-forth over whether or not BCE would be bought out has come to an abrupt halt, as auditor KPMG "determined that the company-to-be wouldn't pass a solvency test required as a condition of closing the deal." On the table was a $42.75-a-share cash offering by a group led by the Ontario Teachers' Pension Plan, but all that's lost now. According to BCE Acquisition Group: "Because KPMG has concluded that a required test for the solvency opinion was not met, this mutual condition to completion of the acquisition could not be, and was not, satisfied." Here's where things get wonky; BCE is now vigorously attempting to procure a $1.2 billion "breakup fee" that the Teachers group doesn't agree with. We're still waiting to see if BCE will initiate litigation, but you can bet said Teachers organization ain't scared.[Via mobilesyrup]
Rumor: SCi eyed for takeover by EA and Ubisoft
In the latest round of buyout gossip surrounding the company, UK newspaper The Daily Mail reports that SCi – which owns Eidos – is in talks with EA and Ubisoft over a potential takeover, citing a "source familiar with the matter." Both companies are said to have approached SCi to initiate negotiations, likely spurred by a 92% drop in SCi's stock price over the past year.The source also told the Mail that this massive devaluation has those eyeing a takeover of struggling SCi excited by the prospect of obtaining the rights to franchises such as Tomb Raider and Hitman "on the cheap." Warner Bros. Interactive was rumored to have interest in an SCi buyout in October, something which the Mail reports is still a possibility, even with bigger guns like EA and Ubisoft in the mix.[Via GI.biz]
WSJ to Disney: Buy EA
We're accustomed to seeing Electronic Arts purchase studios at the drop of a money hat, but not so much the other way around. Don't tell that to the Wall Street Journal, however, as the financial site suggests that Walt Disney (the company, not the frozen corpse) should add EA to its animated empire. With EA shares dipping more than 17 percent last week -- not to mention the sluggish economy overall -- the WSJ claims that "Disney would be gutsy to step up during the current economic uncertainty," adding however that "it might be better than waiting for better times and paying top dollar." Of course, EA has yet to give any indication that it plans to step up on the auction block any time soon, though we can't help but wonder how it would feel about another media giant trying to step in and do it a favor. [Via Edge Online]
SCi invites Warner Bros to buy more stock
SCi is getting used to being on a dinner plate, so much so that the financially despondent publisher has invited Warner Bros. to the table for seconds. In the wake of the home entertainment giant's £60 million investment earlier this year, the Eidos parent put a freeze on Warner Bros' ability to purchase any more of SCi's precious stock until January 25, 2009, a hold that Gamasutra reports will be lifted a bit sooner than expected. According to the report, the pair will be able to resume their financial tango on December 1, 2008, with the caveat that Warner Bros. will not be allowed to own more than 30 percent of SCi's total worth. Warner's investment in SCi currently stands at 16.13 percent, giving the media company ample opportunity to gift wrap just what every struggling company would want to find under its tree this Christmas -- freedom from financial ruin.
