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Los Angeles, Calif — Feb 04, `08 — Yahoo will cease operating its online music subscription service and switch its customers to RealNetworks’ Rhapsody music service as part of a new deal between the companies that calls for Yahoo to promote Rhapsody on its site, the AP reports.

Terms of the deal, to be formally announced later today, were not disclosed. The move is part of Yahoo’s overhaul of its online music offerings.

Yahoo Music Unlimited lets users download an unlimited number of tracks that are playable as long as their plan is active.

Under the Yahoo-RealNetworks partnership, subscribers to Yahoo Music Unlimited will be shifted to the Rhapsody service sometime in the first half of this year. Yahoo subscribers’ music library and payment plans will remain the same for a limited time after the switch, but those wishing to remain on Rhapsody eventually will be required to sign up at Rhapsody’s rates.

Yahoo’s subscription rates range from $5.99 a month, if users pay for a full year in advance, or $8.99 a month. Rhapsody memberships start at $12.99 a month. More at AP.

San Francisco, Calif — Feb 03, `08 — Yahoo! would consider a business alliance with Google as one way to rebuff a $44.6 billion takeover proposal by Microsoft, Reuters reported citing a source familiar with Yahoo’s strategy said on Sunday.

The report further said, “a second source close to Yahoo said it had received a procession of preliminary contacts by media, technology, telephone and financial companies. But the source said they were unaware whether any alternative bid was in the offing.

Few natural bidders exist beside Google that could engage in a bidding war, and Google would be unlikely to win approval from antitrust regulators, some Wall Street analysts said on Friday.

Yahoo!’s efforts to find an alternative bidder could simply be a measure to pressure Microsoft to boost its bid, which valued Yahoo at $44.6 billion when first announced on Friday.” More at Reuters.

In response to Google’s foul cry over Microsoft’s Yahoo! bid, Microsoft has released a statement from Bard Smith, General Counsel:

REDMOND, Wash — Feb 03, `08 — The combination of Microsoft and Yahoo! will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The alternative scenarios only lead to less competition on the Internet.

Today, Google is the dominant search engine and advertising company on the Web. Google has amassed about 75 percent of paid search revenues worldwide and its share continues to grow. According to published reports, Google currently has more than 65 percent search query share in the U.S. and more than 85 percent in Europe. Microsoft and Yahoo! on the other hand have roughly 30 percent combined in the U.S. and approximately 10 percent combined in Europe.

Microsoft is committed to openness, innovation, and the protection of privacy on the Internet. We believe that the combination of Microsoft and Yahoo! will advance these goals. More at Microsoft.

Feb 03, `08 — In a statement released today on Google’s press center, Mr. David Drummond, Google’s Senior Vice President, Corporate Development and Chief Legal Officer cries foul over Microsoft’s Yahoo! bid.

Mr. David Drummond in his rude and venomous language falsely accuses Microsoft of making ” hostile bid ”. He says, “So Microsoft’s hostile bid for Yahoo! raises troubling questions. This is about more than simply a financial transaction, one company taking over another.”

Now Mr. Drummond do you even know or have any remote idea how many take overs Google have made in last five years or so ??

He also says, “Users benefit from constant innovation. It’s what makes the Internet such an exciting place.”

Mr. Drummond do you actually mean supporting rampant piracy through YouTube, when you say “Users benefit from constant innovation” ??

Do you even have any remote idea of how many pirated videos of Movies, TV Shows, Dramas, Music Videos, etc are being hosted at any given moment ??

Mr. Drummond further goes on to say, “This hostile bid was announced on Friday so there is plenty of time for these questions to be thoroughly addressed.”

Mr. Drummond when even Yahoo! in its official response refers to Microsoft’s proposal as “an unsolicited proposal”, who are you in the world to refer that proposal as “hostile” ??

And Mr. Drummond when you say, “It’s about preserving the underlying principles of the Internet: openness and innovation”, do you actually mean that buying DoubleClick despite the immense privacy concerns from within the US and from Europe ??

If Google were to believe in its well publicized but never implemented ideology of ” Do NO Evil ” then Mr. Drummond why in the world Google needed to buy YouTube or DoubleClick? Google was already making tons of millions anyway… Google could have let YouTube / DoubleClick make money for themselves or let some one else buy ‘em (of course you would have stopped Microsoft from buying any of ‘em either, right?)

So Mr. Drummond before making entirely false claims using rude and venomous language, it would have been better if you have just took a little look at Google’s own past 10 years.

Or may be fear of loosing monopoly and loosing world dominance makes you speak highly rude & venomous language along with highly exaggerated claims and false acquisitions ??

Google’s statement on Microsoft’s bid for Yahoo!

Feb 03, `08 — Nicki Dugan on Yahoo’s Corporate Blog ( Yodel Anecdotal ) said that, “process like this is fluid and can take quite a bit of time” to weigh its strategic options, including keeping the company independent, following Microsoft’s $44.6 billion offer to buy the company.

Here is the complete posting:

Our response to Microsoft’s proposal

Posted February 1st, 2008 at 1:11 pm by Nicki Dugan, Blog Editor

Number of Comments 17 Comments / Filed in: Trends & News

As I’m sure you’ve heard by now, Microsoft made an unsolicited proposal to acquire Yahoo! yesterday evening. Since then, we’ve gotten quite a number of questions about what this means for Yahoo!. Right now our board of directors is evaluating the proposal and looking at all of our strategic alternatives, including maintaining Yahoo! as an independent company.

A review process like this is fluid and can take quite a bit of time, so while there’s not much we can say right now, we did want to refer you to this brief FAQ for more information.

Nicki Dugan
Blog Editor

Tagged: microsoft, news

In a media response to a frequently asked question about whether Yahoo would seek proposals from other companies, Yahoo! press room said it was going to evaluate all options.

Yahoo!’s Media Response:

FAQ: Unsolicited Proposal From Microsoft

Q1. How is Yahoo! responding to Microsoft’s proposal?
The Yahoo! Board is undertaking a deliberate review process. They’re going to take time to thoroughly evaluate the proposal in the context of Yahoo!’s strategic plans. This will include evaluating all of the Company’s strategic alternatives – including maintaining Yahoo! as an independent company. That process will take some time, but the Board will ultimately pursue the option that it believes can best maximize value for our shareholders.

Q2. How long will the Board’s review process take?
A review process like this is fluid, and it can take quite a bit of time.

Q3. Will the Board seek proposals from any other companies?
The Board is going to evaluate all of Yahoo!’s strategic alternatives and pursue the option that it believes can best maximize value for our shareholders.

Q4. What would a deal like this mean for Yahoo!’s users, advertisers, publishers, partners and people?
Yahoo!’s Board is going to evaluate all aspects of this proposal carefully and promptly in the context of the company’s strategic plans and alternatives. So it wouldn’t be appropriate to speculate about the potential benefits or challenges of a deal. But the review process that’s underway won’t have any impact on our efforts to deliver value to all of our users, advertisers, publishers and partners – as well as new and exciting opportunities to our employees.

Citing analysts, Reuters reported that, “Comcast Corp, Viacom Inc and General Electric Co among possible bidders, although they also said few companies had the balance sheet to compete with Microsoft or were as natural a fit for Yahoo.”

More at Yahoo! here and here.

SCHAUMBURG, Ill. – Feb 01, `08 – Motorola confirmed receipt of notice from Carl Icahn announcing his intent to nominate a slate of four directors to stand for election at the Company’s 2008 Annual Meeting of Stockholders. The Company has not yet scheduled its 2008 Annual Meeting.

Motorola is currently reviewing the notice.

The notice states that the Carl Icahn entities may be deemed to beneficially own, in the aggregate, 114,289,100 shares of Motorola common stock, representing approximately 5% of Motorola’s outstanding shares. More ta Motorola.

Related:

Motorola Considers Breakup, Phone Unit Sale

TAIPEI, Taiwan and SAN DIEGO — Mio Technology Corporation and Qualcomm on Wednesday, Jan 30, announced a collaboration to develop connected personal navigation devices (PNDs). These new connected PNDs will leverage Qualcomm’s technology with the QST1100 chipset to deliver industry-leading GPS performance and cellular connectivity for real-time traffic updates, voice call capabilities and more.

With this new collaboration, Mio looks to offer consumers a next-generation GPS device that goes beyond traditional point-to-point navigation. With real-time content, search capabilities and more, Mio’s connected PNDs will provide a uniquely dynamic navigation experience that can be customized for any lifestyle. Whether for leisure travel, business travel or the daily commute, Mio’s cutting-edge connected PNDs will enable people to explore their environment.

Mio’s new connected PNDs will be based on the  chipset from Qualcomm, the first solution to integrate application processing, GPS and cellular connectivity for ubiquitous connectivity and sleeker form-factors.

The QST1100 chipset leverages Qualcomm’s gpsOne technology for unsurpassed GPS performance. The fully integrated gpsOne solution supports numerous modes of operation - including Assisted-GPS, Standalone-GPS and gpsOneXTRA Assistance technology for enhanced Standalone-GPS performance - and is the most widely deployed position-location solution in the world. Currently, more than 300 million devices around the world leverage gpsOne technology for accurate, ubiquitous positioning capabilities. More at Qualcomm.

Below is the text of the letter that Microsoft sent to Yahoo!’s Board of Directors:

January 31, 2008

Board of Directors
Yahoo! Inc.
701 First Avenue
Sunnyvale, CA 94089
Attention: Roy Bostock, Chairman
Attention: Jerry Yang, Chief Executive Officer

Dear Members of the Board:

I am writing on behalf of the Board of Directors of Microsoft to make a proposal for a business combination of Microsoft and Yahoo!. Under our proposal, Microsoft would acquire all of the outstanding shares of Yahoo! common stock for per share consideration of $31 based on Microsoft’s closing share price on January 31, 2008, payable in the form of $31 in cash or 0.9509 of a share of Microsoft common stock. Microsoft would provide each Yahoo! shareholder with the ability to choose whether to receive the consideration in cash or Microsoft common stock, subject to pro-ration so that in the aggregate one-half of the Yahoo! common shares will be exchanged for shares of Microsoft common stock and one-half of the Yahoo! common shares will be converted into the right to receive cash. Our proposal is not subject to any financing condition.

Our proposal represents a 62% premium above the closing price of Yahoo! common stock of $19.18 on January 31, 2008. The implied premium for the operating assets of the company clearly is considerably greater when adjusted for the minority, non-controlled assets and cash. By whatever financial measure you use - EBITDA, free cash flow, operating cash flow, net income, or analyst target prices - this proposal represents a compelling value realization event for your shareholders.

We believe that Microsoft common stock represents a very attractive investment opportunity for Yahoo!’s shareholders. Microsoft has generated revenue growth of 15%, earnings growth of 26%, and a return on equity of 35% on average for the last three years. Microsoft’s share price has generated shareholder returns of 8% during the last one year period and 28% during the last three year period, significantly outperforming the S&P 500. It is our view that Microsoft has significant potential upside given the continued solid growth in our core businesses, the recent launch of Windows Vista, and other strategic initiatives.

Microsoft’s consistent belief has been that the combination of Microsoft and Yahoo! clearly represents the best way to deliver maximum value to our respective shareholders, as well as create a more efficient and competitive company that would provide greater value and service to our customers. In late 2006 and early 2007, we jointly explored a broad range of ways in which our two companies might work together. These discussions were based on a vision that the online businesses of Microsoft and Yahoo! should be aligned in some way to create a more effective competitor in the online marketplace. We discussed a number of alternatives ranging from commercial partnerships to a merger proposal, which you rejected. While a commercial partnership may have made sense at one time, Microsoft believes that the only alternative now is the combination of Microsoft and Yahoo! that we are proposing.

In February 2007, I received a letter from your Chairman indicating the view of the Yahoo! Board that “now is not the right time from the perspective of our shareholders to enter into discussions regarding an acquisition transaction.” According to that letter, the principal reason for this view was the Yahoo! Board’s confidence in the “potential upside” if management successfully executed on a reformulated strategy based on certain operational initiatives, such as Project Panama, and a significant organizational realignment. A year has gone by, and the competitive situation has not improved.

While online advertising growth continues, there are significant benefits of scale in advertising platform economics, in capital costs for search index build-out, and in research and development, making this a time of industry consolidation and convergence. Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo! can offer a credible alternative for consumers, advertisers, and publishers. Synergies of this combination fall into four areas:

Scale economics: This combination enables synergies related to scale economics of the advertising platform where today there is only one competitor at scale. This includes synergies across both search and non-search related advertising that will strengthen the value proposition to both advertisers and publishers. Additionally, the combination allows us to consolidate capital spending.

Expanded R&D capacity: The combined talent of our engineering resources can be focused on R&D priorities such as a single search index and single advertising platform. Together we can unleash new levels of innovation, delivering enhanced user experiences, breakthroughs in search, and new advertising platform capabilities. Many of these breakthroughs are a function of an engineering scale that today neither of our companies has on its own.

Operational efficiencies: Eliminating redundant infrastructure and duplicative operating costs will improve the financial performance of the combined entity.

Emerging user experiences: Our combined ability to focus engineering resources that drive innovation in emerging scenarios such as video, mobile services, online commerce, social media, and social platforms is greatly enhanced.

We would value the opportunity to further discuss with you how to optimize the integration of our respective businesses to create a leading global technology company with exceptional display and search advertising capabilities. You should also be aware that we intend to offer significant retention packages to your engineers, key leaders and employees across all disciplines.

We have dedicated considerable time and resources to an analysis of a potential transaction and are confident that the combination will receive all necessary regulatory approvals. We look forward to discussing this with you, and both our internal legal team and outside counsel are available to meet with your counsel at their earliest convenience.

Our proposal is subject to the negotiation of a definitive merger agreement and our having the opportunity to conduct certain limited and confirmatory due diligence. In addition, because a portion of the aggregate merger consideration would consist of Microsoft common stock, we would provide Yahoo! the opportunity to conduct appropriate limited due diligence with respect to Microsoft. We are prepared to deliver a draft merger agreement to you and begin discussions immediately.

In light of the significance of this proposal to your shareholders and ours, as well as the potential for selective disclosures, our intention is to publicly release the text of this letter tomorrow morning.

Due to the importance of these discussions and the value represented by our proposal, we expect the Yahoo! Board to engage in a full review of our proposal. My leadership team and I would be happy to make ourselves available to meet with you and your Board at your earliest convenience. Depending on the nature of your response, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.

We believe this proposal represents a unique opportunity to create significant value for Yahoo!’s shareholders and employees, and the combined company will be better positioned to provide an enhanced value proposition to users and advertisers. We hope that you and your Board share our enthusiasm, and we look forward to a prompt and favorable reply.

Sincerely yours,

/s/ Steven A. Ballmer

Steven A. Ballmer

Chief Executive Officer

Microsoft Corporation

More at Microsoft.

Houston, Texas — Feb 01, `08 — Beating its own record to rack up the largest annual corporate profit in American history, Exxon Mobil said Friday it earned $40.6 billion for the year, reaping the benefits of crude-oil prices around $100 a barrel.

Exxon Mobil also topped its own record for profit in a single quarter, posting net income of $11.7 billion for the final three months of the year — about $1 billion more than the same period in 2005, the previous quarterly record.

The annual profit was enough, at $3 a gallon, to buy nearly four 15-gallon fill-ups for the roughly 243 million registered passenger vehicles on American roads. Put another way, it’s almost equal to what Microsoft has offered to buy Yahoo outright.

Chevron, No. 2 behind Exxon Mobil among U.S. oil companies, also had its best year ever in 2007, saying Friday that it banked a profit of $18.7 billion.

The backlash against the oil industry, which has periodically intensified as gasoline prices have risen in recent years, was predictably swift on Friday.

One advocacy group, the Foundation for Taxpayer and Consumer Rights, called the profits “unjustifiable.” Some politicians said Congress should rescind the tax breaks awarded two years ago to encourage oil companies to boost their investments in the United States and increase domestic production.

“Congratulations to Exxon Mobil and Chevron — for reminding Americans why they cringe every time they pull into a gas station,” said Senator Charles Schumer, Democrat of New York.

Chicago, IL — Feb 01, `08 — Motorola, which created and dominated the worldwide cell phone market, on Thursday announced it may shed that iconic business amid a breathtaking decline in sales and mounting losses in the past year.

Its shares — already down as about 55 percent since mid October 2006 — were up $1.18 at $12.71 after some analysts raised price targets for the company and Citigroup upgraded its rating of the stock to ‘buy’ from ‘hold’ after the news.

The world’s third-largest mobile phone maker, which has been losing market share to market leader Nokia and Samsung, said late Thursday it was “exploring the structural and strategic realignment of its business to better equip its Mobile Devices business to recapture global market leadership and to enhance shareholder value.”

While that may signal Motorola is putting its $19 billion cell phone unit on the block, the firm also might instead sell one or both of its other major business lines — one for TV set-top boxes and network equipment, and another that makes mobile equipment for governments and large businesses. It also could decide to keep the firm intact.

“We don’t want anyone to be misled that we’ve preordained” a plan, Don McLellan, Motorola’s head of mergers and acquisitions, said in an interview. “This announcement is about equipping mobile devices with a way to achieve its leadership again.”

Even a breakup of the troubled company may not head off another proxy fight with billionaire financier Carl Icahn. Motorola, which fought off Icahn’s bid for board seats and a drastic overhaul just a year ago.

The revised strategy comes just one month after Greg Brown succeeded Ed Zander as CEO and a year and a day since Icahn initiated a proxy fight to shake up a company that was already in the throes of a severe decline in sales and profits. After grabbing world market share of 23 percent in 2006 on momentum led by its Razr phone, the company has lost nearly half that as rivals outpaced it with successful new products.

Motorola prevailed in last year’s proxy battle. But with the end of its slump nowhere in sight, it has dropped its opposition to splitting off or shedding its core business.

Icahn, while “pleased” to hear that Motorola is exploring his proposal, nevertheless still plans another fight for board seats this spring, as he said he had warned the company recently.

WASHINGTON — Feb 01, `08 — US and European antitrust regulators aren’t likely to prevent Microsoft from buying Yahoo, analysts said Friday, though scrutiny of the deal could drag on for months, the AP reported.

A major factor weighing in Microsoft’s favor, analysts said, is Google’s dominance in the online search and advertising businesses — the two areas regulators are likely to focus on when weighing market power issues raised by the nearly $45 billion unsolicited bid.

The Justice Department said it is “interested” in reviewing competition issues raised by Microsoft’s surprise offer. The Federal Trade Commission and European Union officials declined to comment. If the deal goes through, analysts expect Congress and European regulators to review the combined company’s increased competitive edge.

“I don’t see this just sailing through, regulators will look at it,” Ted Henneberry of the London law firm Heller Ehrman said. But even after a review that could take up to six months, he said a Microsoft-Yahoo combination isn’t likely to be stopped because the new entity’s share of the online ad space would still be dwarfed by Google, which already controls nearly 60 percent of the U.S. search market.

“The fact that Google dominates this business will be a big factor in (Microsoft’s) favor in trying to get this approved by the regulators,” said Keith Hylton, a professor of antitrust law at Boston University. More at AP.

San Francisco, CA — Feb 01, `08 — Microsoft made an unsolicited $44.6 billion cash and stock bid for Yahoo late Thursday, a deal that could shake up the competitive and lucrative market for online advertising.

The surprise offer of $31 per share, which represents a 62% premium from where Yahoo stock closed on Thursday, made late Thursday and announced Friday, seizes on Yahoo’s weakness while Microsoft tries to muscle up in a high-stakes battle with Google likely to define the technology landscape for years to come. Shares of Yahoo shot up 50% at the start of trading Friday, while shares of Dow component Microsoft tumbled about 5%.

In a statement Friday, Yahoo said it will “carefully and promptly” study Microsoft’s bid.

With its profits steadily sliding, Yahoo’s stock slipped to a four-year low earlier this week and a new management team has been trying to steer a turnaround but sees more turbulence through 2008.

In conference call Friday morning, Microsoft Chief Executive Steve Ballmer indicated he won’t take no for an answer after Yahoo rebuffed takeover overtures a year ago.

“This is a decision we have — and I have — thought long and hard about,” Ballmer said. “We are confident it’s the right path for Microsoft and Yahoo.”

Besides the question of Yahoo’s acceptance, Microsoft’s bid also faces regulatory scrutiny in Washington and Europe. On Friday, the Justice Department said it is “interested” in reviewing antitrust issues. European Union officials declined to comment.

If the deal is consummated, it would be by far the largest acquisition in Microsoft’s history, eclipsing last year’s $6 billion purchase of online ad service aQuantive.

Microsoft publicly disclosed its cash-and-stock offer in hopes of rallying support from Yahoo’s shareholders, making it more difficult for Yahoo’s board to turn down the bid.

Microsoft’s previous offer was rebuffed by Terry Semel, who stepped aside last year as chief executive under shareholder pressure.

Microsoft sent its latest takeover offer to Yahoo late Thursday, shortly after Semel resigned as the company’s chairman. The letter is addressed to Semel’s successors, new Chairman Roy Bostock and the current CEO, co-founder Jerry Yang, who is one of Yahoo’s largest shareholders.

In a prepared statement, Yahoo said its board “will evaluate this proposal carefully and promptly in the context of Yahoo’s strategic plans and pursue the best course of action to maximize long-term value for shareholders.”

“We are very, very confident this is the right path for Microsoft and for Yahoo,” he said.

Microsoft hopes to close the deal by the end of the year. Ballmer said that Microsoft has been in “off and on” talks with Yahoo for 18 months and said he called Yahoo CEO Jerry Yang Thursday night to tell him the bid was coming.

A Microsoft-Yahoo combination would create a powerful number two player in the online search business, which Google commands. The leading search engine reigns over 58.4% of the U.S. search market, while Yahoo has 22.9% and Microsoft’s share is just 9.8%, according to comScore, a research firm that tracks Internet traffic.

A Google spokesman, Matt Furman, declined to comment on Microsoft’s move on Yahoo. “It would be premature to comment at this point,” he said.

Irvine, Calif — Dec 31, `07 /PRNewswire-FirstCall via COMTEX News Network/ — Broadcom announced that a federal judge today issued an injunction against Qualcomm’s continued infringement of three Broadcom patents.

As ordered by US District Court Judge James V. Selna, the injunction prohibits Qualcomm from making, using and selling certain chipsets and software that infringe the three Broadcom patents. Qualcomm is also barred from engaging in a range of marketing and customer support activities related to its WCDMA (Wideband Code Division Multiple Access) and EV-DO (EVolution-Data Only) chips, which are used to process data on high-speed wireless networks.

A Qualcomm spokeswoman said the company was reviewing the ruling and declined further comment. Qualcomm, based in San Diego, is the world’s second-largest chip supplier for mobile phones after Texas Instruments Inc. It earns much of its money from licensing fees on its patented technology.

Broadcom, based in Irvine, California, is a newcomer to the cell phone business but gained ground in 2007 in a wide-ranging court battle with Qualcomm.

In May 2007, a jury awarded Broadcom $19.6 million in damages for the same chip patents. In November, Selna indicated he would up the award to $39.3 million, but reversed himself when a a federal appellate court raised the bar for proving willful patent infringement.

The judge then took up the question of whether future sales of the chips should be stopped, resulting in Monday’s order.

“The ITC order did not go nearly as far in prohibiting other activities from Qualcomm,” said David Rosmann, vice president of intellectual property litigation with Broadcom. “The U.S. District Court order has in some respects much broader remedies. So the activities that are going to be barred by this injunction go a long way to stopping Qualcomm’s continued operations in support of these infringing chips.”

Broadcom is also suing Qualcomm on other patent infringement and antitrust claims, Rosmann said. The antitrust case is expected to go to trial in 2009. More at Broadcom.

HOLMDEL, NJ — Dec 31, `07 /PRNewswire-FirstCall/ — Vonage and Nortel today announced that they have agreed in principle to end the litigation pending between them.

The contemplated settlement involves a limited cross license to three Nortel and three Vonage patents and will not call for any monetary payments by any party.

Claims relating to past damages and the remaining patents will be dismissed without prejudice. The settlement is subject to final documentation. More at Vonage.

LAS VEGAS, Dec 24, `07 /PRNewswire-FirstCall/ — Harrah’s Entertainment today announced that the National Indian Gaming Commission (NIGC) notified Harrah’s that it will allow the consummation of the proposed acquisition of Harrah’s by affiliates of Apollo Global Management, L.P. and TPG Capital to proceed while the NIGC finalizes its review.

There are no remaining regulatory approvals needed to close the transaction.

Harrah’s and the buyers received the go-ahead for the deal last week from the Nevada Gaming Commission, capping a 10-week campaign to obtain approvals from state gambling regulators in New Jersey, Pennsylvania, Louisiana, Iowa, Missouri, Illinois, Indiana and Mississippi.

Harrah’s, which had nearly $10 billion in revenue last year, operates more than 50 casinos including Caesars and the Imperial Palace in Las Vegas and Bally’s in Atlantic City. Indian Gaming Commission approval is needed because Harrah’s operates several tribal casinos as well. More at Harrah’s.

Dec 25, `07 — BBC News is reporting on British Airways being accused of colluding in setting prices of fuel surcharges and other levies in the provision of air freight services.

“BA confirmed it received a letter of complaint from European Union regulators, alleging that it was part of a suspected air freight cartel. The complaints were also sent to Germany’s Lufthansa, Air France-KLM and Scandinavia’s SAS. The airlines have the right to respond, but if found guilty, they face fines.

The European Commission that it had sent official letters, known as statements of objection, to a number of air freight firms, concerning “violation of EU rules on restrictive business practices”.

Officials did not name the specific airlines involved, but BA, Air France-KLM and SAS confirmed they had each received the European Commission letter.” More at BBCNews.

BRACKNELL, UK –BUSINESS WIRE– Dec 21, `07 — Dell has signed an agreement to acquire privately held The Networked Storage Company (TNWSC), a leading IT consultancy, that specializes in transitioning customers to proven, simplified and cost-efficient IT data storage solutions.

Terms were not disclosed and the purchase will not be final until all closing conditions are met. TNWSC is based in Epsom, United Kingdom.

TNWSC’s unique Point of Proof methodology provides an auditable end-to-end process to evaluate, select and implement proven solutions that deliver robust, simplified and cost-effective IT infrastructures.

The approach, primarily implemented with storage networks, can be extended across the entire IT environment, helping to reduce overall costs and complexity of IT infrastructure maintenance and management. TNWSC has a blue chip customer base including several of Europe’s leading

More at BusinessWire, Dell.com/ics.

DENVER –BUSINESS WIRE– On Thursday, Dec 20, MPEG LA announced that it has commenced an action against Audiovox for breach of contractual obligations as a Licensee to MPEG LA’s MPEG-2 Patent Portfolio License and 1394 Patent Portfolio License.

According to the complaint filed in the Supreme Court of the State of New York, Audiovox has breached its contractual obligations by failing to report fully its manufacture or sale of products such as DVD players and digital TVs that use the MPEG-2 digital video compression standard or employ the high-speed transfer digital interface provided for in the IEEE 1394 standard, failing to make full payments for its manufacture or sale of such products, and refusing to allow an audit as permitted by the MPEG-2 Contract and 1394 Contract.

MPEG LA seeks, among other things, monetary damages, an order requiring Audiovox to allow the contractually required audit, an accounting of all products manufactured or sold by Audiovox subject to the Contracts, as well as injunctive relief prohibiting Audiovox from the manufacture or sale of MPEG-2 and 1394 products. More at MPEG LA (in pdf).

Brussels — On Thursday, Dec 20, the Protocol Freedom Information Foundation (PFIF), a non-profit organization created by the Software Freedom Law Center, signed an agreement with Microsoft to receive the protocol documentation needed to fully interoperate with the Microsoft Windows workgroup server products and to make them available to Free Software projects such as Samba.

Microsoft was required to make this information available to competitors as part of the European Commission March 24th 2004 Decision in the antitrust lawsuit, after losing their appeal against that decision on September 17th 2007.

After paying Microsoft a one-time sum of 10,000 Euros, the PFIF will make available to the Samba Team under non-disclosure terms the documentation needed for implementation of all of the workgroup server protocols covered by the EU decision.

Although the documentation itself will be held in confidence by the PFIF and Samba Team engineers, the agreement allows the publication of the source code of the implementation of these protocols without any further restrictions. This is fully compatible with versions two and three of the GNU General Public License (GPL). Samba is published under the GNU GPL which is the most widely used of all Free Software licenses. In addition it allows discussion of the protocol information amongst implementers which will aid technical cooperation between engineers.

Under the agreement, Microsoft is required to make available and keep current a list of patent numbers it believes are related to the Microsoft implementation of the workgroup server protocols, without granting an implicit patent license to any Free Software implementation.

No per-copy royalties are required from the PFIF, Samba developers, third party vendors or users and no acknowledgement of any patent infringement by Free Software implementations is expressed or implied in the agreement. More at Samba.

Brussels — Dec 21, `07 — The European Commission said on Friday it has contacted a number of companies regarding their alleged participation in an air freight cartel.

The European Commission can confirm that a Statement of Objections has been sent to a number of companies, concerning their alleged participation in a cartel in the provision of airfreight services, in violation of EU rules on restrictive business practices (Article 81 of the EC Treaty and Article 53 of the Agreement on the European Economic Area).

Procedural background

A Statement of Objections is a formal step in Commission antitrust investigations in which the Commission informs the parties concerned in writing of the objections raised against them. The addressee of a Statement of Objections can reply in writing to the Statement of Objections, setting out all facts known to it which are relevant to its defense against the objections raised by the Commission. The party may also request an oral hearing to present its comments on the case.

The Commission may then take a decision on whether conduct addressed in the Statement of Objections is compatible or not with the EC Treaty’s antitrust rules. Sending a Statement of Objections does not prejudge the final outcome of the procedure. More at European Commission.

It named no companies in the statement but Scandinavian airline SAS said earlier on Friday it had received a statement of objections accusing the airline’s cargo unit of breaking competition rules.

“SAS Group confirms that it has received a Statement of Objections from the European Commission within the framework of an industry-wide investigation of the air cargo sector, involving a large number of cargo companies and air carriers, including SAS Cargo.

In the Statement of Objections the EU Commission alleges that certain investigated practices in the air cargo sector constitute infringements of EC competition rules. SAS Group intends to review the Statement of Objections immediately and will also have to review the underlying documentation as soon as it has received access to the Commission’s comprehensive investigation file. Therefore SAS cannot comment on the alleged irregularities until this review has been completed.” More at SAS.

Seoul, S Korea — Dec 21, `07 — South Korean prosecutors probing corruption accusations against the giant Samsung Group said on Friday they had narrowed their focus down to around 400 accounts that might be linked to an alleged slush fund, Reuters reported.

A former top legal executive with the country’s biggest conglomerate last month accused Samsung of running a 200 billion won ($212.7 million) fund to bribe public officials to avoid investigation into its operations.

“The list of accounts has become a lot shorter,” a prosecution official said by telephone. “It’s roughly about 300 or 400.” Media reports have said the number of accounts searched by prosecutors was well in excess of 1,000.

The former Samsung employee, Kim Yong-cheol, said the firm hid the illicit funds in scores of deposit accounts in the names of current and former executives.

The company, whose group sales are equivalent to about a sixth of the entire economic output of the world’s 13th largest economy, has denied any wrongdoing. More at Reuters.

Osaka and Tokyo — Dec 21, `07 — Sharp and Toshiba announced today that the two companies have agreed to collaborate closely in LCDs, a move that is expected to enhance the companies’ corporate value, profitability and global competitiveness.

The alliance will allow each company to make full and effective use of its respective strengths and resources, particularly Sharp’s capabilities in LCDs and Toshiba’s expertise in advanced semiconductors.

Sharp and Toshiba will initiate the collaborative partnership in fiscal year 2008, starting with an expansion of reciprocal procurement – Sharp’s procurement of system LSIs for LCDs from Toshiba, and Toshiba’s procurement of Sharp’s LCD modules for TVs of 32 inches and larger. Through the program, Sharp aims to satisfy about 50 percent of its total demand for system LSIs for TVs in fiscal year 2010, while Toshiba targets meeting 40 percent of its demand for LCD modules in the same year. More at Toshiba.

Round Rock, Texas — Dec 21, `07 — Dell and Tesco today announced the availability of Dell notebook and desktop computers in Tesco, a premier international retailer with operations in Europe and Asia.

Beginning next month, customers will be able to purchase Dell XPS and Inspiron products in Tesco stores, primarily in the UK, with sales also in Ireland, Poland, Czech Republic, and Slovakia.

Dell products will soon be available in more than 10,000 stores and on-line around the globe.

In the past several months Dell has announced relationships with Best Buy in the US, DSG International and Carrefour in Europe, Staples in the US, Courts stores in Singapore, Gome stores in China, Bic Camera Inc. in Japan, Carphone Warehouse in the UK and Wal-Mart in the U.S., Canada, Brazil and Mexico. More at Dell.

WASHINGTON — Dec 20, `07 — The Federal Trade Commission on Thursday approved Google’s $3.1 billion purchase of advertising rival DoubleClick, saying the deal would not substantially lessen competition.

The deal, which combines Google’s dominance in pay-per-click Internet advertising with DoubleClick’s market-leading position in flashier display ads, is also being scrutinized by European antitrust officials.

In a 4-1 vote, the FTC decided to end its eight-month investigation of the transaction.

Commissioner Pamela Jones Harbour dissented and issued a separate statement expressing reservations, arguing that the deal “may substantially lessen competition.”

She said the takeover “will affect the evolution of the entire online advertising market” as this evolves and have wide-ranging implications for consumers. “The transaction will combine not only the two firms’ products and services, but also their vast troves of data about consumer behavior on the Internet,” she said.

European antitrust authorities are expected to rule on the deal sometime next year. The European Commission last month launched a probe and said the merger “would raise competition concerns.” The European Commission declined to comment on the FTC’s decision, spokesman Jonathan Todd said.

Microsoft and other critics argue the deal would enable Google to dominate two aspects of the Internet advertising market — ad sales and ad-serving tools.

The FTC said in a report on its investigation that both the online ad sales and ad-serving markets have numerous competitors, several of which have been bolstered by recent acquisitions.

Those include Microsoft’s $6 billion purchase of DoubleClick rival aQuantive, the acquisition of online advertising provider Tacoda by Time Warner’s AOL, and Yahoo’s purchase of Internet advertising exchange Right Media for $680 million.

Other competitors include ValueClick and 24/7 Real Media, which was purchased by London-based advertising giant WPP Group PLC for $649 million in May, the FTC said.

Privacy advocates say the combined company will have access to a huge amount of data on individual Web-surfing habits. The FTC said it lacked the legal authority to block the deal on any grounds except on antitrust matters.

However, in an apparent nod to these concerns, the FTC on Thursday proposed a set of privacy guidelines for the online advertising industry, describing them as something that “clearly transcend” the Google-DoubleClick deal. It remains to be seen how such guidelines would be enforced.

Google has a dominant position in pay-per-click ads, which are based on a computer user’s searches. Its ads are usually in the form of text and are shown on the right-hand side of the screen.

DoubleClick is a market leader in the display ads preferred by many corporate advertisers. More at FTC.

San Jose, Calif — Dec 19, `07 - eBay today released the following statement regarding its District Court victory in the Netcraft vs eBay and PayPal patent infringement case.

On December 18, 2007, the U.S. District Court for the Western District of Wisconsin entered judgment, granting eBay’s and PayPal’s motion for summary judgment of non-infringement on both of the patents that Netcraft asserted against eBay and PayPal.

“We are pleased by the Court’s well-reasoned ruling in this case. We will continue to protect the interests of our global community of users and the businesses who rely on eBay’s platforms to make a living.”

In May 2007, Netcraft brought suit against eBay and PayPal and contended that PayPal’s payment services infringe two of Netcraft’s patents titled “Internet Billing Method.” The Court ruled that all of the patents in question require “providing customers with internet access” and because eBay and PayPal do not provide customers with internet access, the two companies do not infringe Netcraft’s patents.