Napster has been looking for a buyer for a while now and it seems that they’ve finally found one: Best Buy.
According to a story at Reuters, the electronics retail giant will be buying Napster for $121 million in cash. Included in the deal will be approximately $67 million in cash and short term investments held by Napster, sot he net cost of the deal to Best Buy will be more like $54 million.
The deal is expected to close by the end of the calendar year and all 140 Napster employees are expected to remain at their Los Angeles headquarters.
Yahoo disclosed in an SEC filing that during it’s fighting off of Microsoft’s buyout attempt it managed to spend $36 million on fees for third-party advisors with the majority going to Goldman Sachs, Lehman Brothers, Moelis & Company, and Skadden Arps.
Note to self: start an advisory company.
The ever expanding Google has announced that it has signed an agreement with Russian company Rambler Media Group to acquire the online advertising company ZAO Begun for $140 million.
In case you’re not familiar with ZAO Begun (I wasn’t either), the six-year-old company does search and contextual advertising, currently doing business with 40,000 advertisers and 143,000 Russian-language sites.
Rambler Media Group currently owns most, but not all, of ZAO Begun. As part of the deal, Rambler will buy the rest of ZAO Begun from Bannatyne Ltd., and agree to use Google’s AdSense on it’s main page.
A couple of days ago news came out that Korean communications giant SK Telecom was in talks with Sprint to acquire them. Apparently that report wasn’t quite right and the company clarified their interests.
While SK Telecom is in talks with Sprint, it’s not to acquire the them. Instead, SK Telecom is interested in possibly collaborating on technology.
In a filing to the Korea Exchange, SK Telecom said “we are studying various business opportunities in the United States but are not seeking to take control in (any) major U.S. mobile operator.”
Korean communications company SK Telecom has announced that they are in talk with US cell carrier Sprint about acquiring the struggling company.
Sprint is currently the third largest cell carrier in the US, so the move would give SK Telecom a pretty big footprint in the US assuming there wouldn’t be a regulations issues with foreign ownership of the company.
What would SK Telecom do to revive Sprint? We may get to find out.
Apparently Microsoft hasn’t given up on acquiring Yahoo just yet. Saturday night Yahoo announced that it has turned down a bid proposed by Microsoft and investor Carl Icahn.
The bid would have resulted in Microsoft and Icahn buying Yahoo’s search business, their board of directors and top management team being replaced, and their remaining businesses restructured.
When the bid was proposed Yahoo was given just 24 hours to respond and told that there would be no negotiation–the terms of the deal were non-negotiable.
The deal was turned down, with Yahoo chairman Roy Bostock saying “it is ludicrous to think that our Board could accept such a proposal…While this type of erratic and unpredictable behavior is consistent with what what we have come to expect from Microsoft, we will not be bludgeoned into a transaction that is not in the best interests of our stockholders.”
Search engine Ask.com has completed its acquisition of Lexico Publishing Group, giving Ask.com ownership of Dictionary.com, Thesaurus.com and Reference.com.
The deal will increase Ask.com’s unique visitors each month to around 145 million, a roughly 11 percent increase.
[Via Yahoo! News]
Back in April Blockbuster announced that in February of this year they made an unsolicited bid to attempt to acquire Circuit City.
Just a quick reminder: Blockbuster had a vision of a “new” Blockbuster sees a combined Blockbuster and Circuit City would “result in an $18 billion retail enterprise uniquely positioned for the convergence of media content and electronic devices. We would seek to differentiate products in both Blockbuster and Circuit City stores by offering exclusive content and content-enabled devices. Both companies would benefit from complementary products, marketing, management strengths, technology and distribution and the resulting synergies would significantly improve consolidated financial performance.”
After no news for a bit, Blockbuster has announced today that they have pulled their offer, though they still believe that combing media and electronics is a good idea.
Blockbuster CEO Jim Keyes says, “based on market conditions and the completion of our initial due diligence process, we have determined that it is not in the best interest of Blockbuster’s shareholders to proceed with an acquisition of Circuit City”
“We continue to believe in the strategic merits of a consumer retail proposition that would bring media content and electronic devices together under one brand. We will pursue this strategy through our Blockbuster stores as a way to diversify the business and better serve the entertainment retail segment.”
I used to have three Blockbuster locations within ten minutes of home and now I think I have one…if that’s even still there (haven’t been in at least a year).
It’s nice they’re not giving up, but will they really be able to compete as a brick and mortar video and electronics store?
Their video rental business has been heading downhill for a while and Best Buy is pretty dominant in the electronics area, so the idea of Blockbuster trying to compete in this space without a time machine to bring them back 10 – 15 years sounds like a bad one to me.
Check out the full press release here if you’re interested.
According to a story at CNBC, US wireless carrier Verizon is “in deep talks to acquire Alltel” for around $27 billion according to sources close to the deal.
If that figure sounds familiar in regards to Alltel you’re right–last May TPG and Goldman Sachs Capital Partners announced a $27.5 billion deal to take Alltel private, that deal closed in November, 2007.
No comment from either company at the moment.