Once again, sorry for my lack of blogs lately, but I am on the road a great deal these days, mostly without Internet access. Tomorrow I am off for Whitefish, Mt. for another show and won't be back till next week. I am hoping to get into Glacier National Park for some photo activity as it is only a few miles from Whitefish.
I seldom write about the comings and goings of tech businesses, but there is so much going on right now that I thought I would pass along some of the more interesting tidbits. Thanks to CNet and ZDNet for their help in preparing these stories.
Justice Dept Investigating Google/Yahoo Partnership
The U.S. Department of Justice plans to gather information from third parties in a probe of the advertising deal struck last month between Google and Yahoo, according to sources familiar with these types of investigations. Yahoo announced the nonexclusive partnership in June under which rival Google would supply it with some search ads, a move that could increase Yahoo search revenue but that also gives Google even more power in the market. The partnership idea came to light during Microsoft's attempt to acquire Yahoo (see below), which put more pressure on the Internet company to improve its financial results.
Microsoft to Go After Yahoo Again?
The Wall Street Journal is reporting that Microsoft has been looking for partners in recent days that would help it make a new bid for Yahoo's search business. This would be Microsoft's third attempt to acquire Yahoo. A couple of months ago, Microsoft pulled out of negotiations after Yahoo would not lower their asking price, a price that Microsoft said was way too much. Then Microsoft went after Yahoo again a month or so again, not to buy the whole company but only parts of it. This time, Yahoo pulled out after making the above-mentioned deal with Google.
All this has caused huge turmoil at Yahoo, which is not in very good financial shape. Investor Carl Icahn is waging a huge proxy fight to take over Yahoo and dump its current president and board of directors, whom he accuses of bad management. Microsoft has reportedly met with Icahn recently. Even more pressure is being applied by the stock market as Yahoo share prices have dropped below $20. Microsoft had offered $32 per share when they pulled out (Yahoo wanted $37 a share). They might wind up getting it much cheaper than was originally proposed. Microsoft is trying to increase its Web business as they recognize that their current business model is out-of-date and needs to be more Web-centric.
Blockbuster/Circuit City Deal is Dead
Movie-rental chain Blockbuster has announced that it has withdrawn its $1 billion bid for consumer electronics chain Circuit City. The reason given was unfavorable "market conditions." The original deal was was thought of as one company in trouble trying to buy another company, also in trouble. Blockbuster shares jumped nearly 12 percent, while Circuit City fell 14 percent in after-hours trading following the announcement. I think that says it all. Both companies have struggled in the past year...Circuit City posted a $200 million loss near the end of 2007, and Blockbuster has been fending off Netflix's success in online video rentals, as well as the growing threat of digital movie downloads.
Circuit City to Sell Office Subscription
Microsoft has announced that Circuit City will be the first to offer a new Microsoft Office subscription service, dubbed Equipt. This service bundles a subscription version of Office Home and Student with Microsoft's OneCare antivirus product for $69 a year--just $20 more than the suggested price of OneCare alone. Microsoft is trying to tap into the fact that while many people would rather find a copy of Office that they don't have to pay for (either an older version or a pirated copy) they are willing to pay for security software. This Office version contains Microsoft Excel, Powerpoint, Word, and OneNote (no Outlook, however). Its regular purchase price runs from $100 to $165 on the Web.
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