TechBloggin.com

Filed under: Cellphones

Funny story — we pretty much heard this exact same rumor floating around last August, but given the current economic situation, we’re inclined to believe this one a good bit more. A recent Reuters report is pointing out that RIM (like practically every other company right about now) is ripe for the picking, and any outfit with a serious load of cash reserves could get themselves quite a bargain. Given that the Redmond mega-corp has shown interest before (and clearly has plenty of Greenbacks), we were particularly interested in Canaccord Adams analyst Peter Misek’s quote: “I’m fairly certain [Microsoft] has a standing offer to buy [RIM] at $50 a share.” If you’ll recall, RIM’s stock sat at $148 per share just four months ago, and now, it’s hovering around $60. As expected, Microsoft had no comment on the report, but don’t be surprised to see something go down if Wall Street keeps hemorrhaging.

[Via Electronista]

Read | Permalink | Email this | Comments

Source: Darren Murph

written by

Filed under: Cellphones

Money-losing companies with interesting technology and a small, if rabid, customer base still frequently tend to sell for healthy chunks of change — especially in the wireless space. We know Helio was burning cash like crazy, but that doesn’t entirely explain why SK Telecom was so absurdly desperate to dump their $500m investment. At a $39m acquisition price, SK didn’t just lose its shirt — it lost that, the shoes, and then the pants. You know, the pants with a half-billion dollars in them.

Now, if you look at nothing other than the price per subscriber of some other, larger mobile acquisitions, Helio’s numbers seem even crazier. Alltel’s subscriber base is going to Verizon for about $2,100 per customer, and back when Nextel sold to Sprint, each sub went then for about $2,350. Helio’s $39m sale to Virgin nets them $230 per subscriber. That’s now what you’re worth to Virgin, Helio subscriber — $230 on an $80 ARPU. Clearly there’s a lot more value in acquiring more than ten million subs than under 200k, but is that value ten fold?

And then to add insult to injury, the piddly $39m Helio did get from Virgin was an all-stock deal, which basically means SK won’t be recouping material costs any time soon. Granted, that does amount to 17% of Virgin Mobile USA’s market cap, and SK gets two seats on VM’s board, but damned if Helio isn’t like the reverse-Brewster’s Millions of cellphone companies. Basically our pet theory right now is that either SK is playing the Korean tax system for the maximum possible write-off, or they literally didn’t have another soul to turn to in this whole wide world. We know Helio wasn’t in good shape, but a $39m all-stock deal means they basically stood on the corner and gave the company away to whomever was passing by at the time.

We wanted some more expert opinions, so we hit up a couple of old Engadget pals. Om Malik had this to say: Their losses are huge and there is no hope in sight. Why Virgin bought so few subscribers, I don’t get. My best guess is that SK Telecom wants to do something with Virgin. Helio was one giant misexecution — it is a micropennies on the dollar sale.

Michael Gartenberg offered this: I suspect there were not a whole lot of options… who else would have bought this thing? It’s clear the MVNO model doesn’t work for the most part. Virgin was probably the only buyer who had interest and it was probably the best chance for Helio’s investors to get some of that money back.

Bottom line, it looks like Virgin and its shareholders should be pretty stoked today, because by all accounts they got a pretty killer deal.

Permalink | Email this | Comments

Source: Ryan Block

written by

Filed under: Cellphones

Unless you’ve been camped out under a Rhode Island-sized boulder for the past few weeks, you know that Verizon has announced its intentions to acquire Alltel. During a recent interview with CEO Scott Ford, Talk Business host Roby Brock was able to get a few talking points out of the exec that didn’t involve the most recent transaction. More specifically, Mr. Ford noted that prior to Alltel becoming a private company, it had “tried to buy Sprint three times, tried to buy AT&T Wireless [and] tried to buy T-Mobile.” He continued by saying that “some of those times it went with partners, [while] some of those times it didn’t.” Essentially, Alltel was “doing everything it could to get to a national platform.” Believe it or not, those quotes really are just the tip of the iceberg, but the full spill is entirely too detailed for this space. If you’re curious to know what might have been, break out the reading glasses and hit the link below.

[Via mocoNews]

Read | Permalink | Email this | Comments

Source: Darren Murph

written by

Filed under: Cellphones, Misc. Gadgets, Handhelds, Portable Audio, Portable Video

var digg_url = ‘http://digg.com/apple/Apple_buys_chip_P_A_Semi_chip_designer_Intel_says_wha_4′; Apple loves ‘em some Intel right? Sure, it was the Intel power-per-watt roadmap which Jobs cited as the reason to ditch IBM’s PowerPC platform. Analysts have since been tripping over themselves with speculation about future generation iPhones and iPod touches going Intel — especially since the arrival of Atom. So what will analysts make of Apple’s $278 million in cash purchase of the 150 person P.A. Semi microprocessor design company? The company was founded by Dan Dobberpuhl, lead designer of DEC’s doomed Alpha and StrongArm processors, and responsible for the introduction of a 2GHz, 64-bit dual-core microprocessor which in February 2007 was said to be 300% more efficient than comparable chips running at 5 to 13 watts. Forbes speculates that Apple will wrap its ARMs around the company’s boutique processor in a bid for exclusivity — a move meant to differentiate itself from competition based on Intel and other off-the-shelf processors. Interestingly, after a long courtship with P.A. Semi, the acquisition discussions only began in the last few weeks. Say what you want about Jobs, but he’s nothing if not a man who knows what he wants and makes damn sure he gets it.

Update: Oh shazam! We just remembered that P.A. Semi and Apple had been this close to a deal just prior (as in minutes) to the announced Intel switch in 2006. Interesting, very interesting. Why now Apple?

Read — P.A. Semi PWRficient processor announcement
Read — Forbes

Permalink | Email this | Comments

Source: Thomas Ricker

written by

Filed under: Misc. Gadgets

We’ve heard nothing since January when the first rumors broke of a Logitech buyout by Microsoft. In fact, the rumor mill has been so quiet that we nearly forgot about the prospect. Now Logitech CEO, Guerrino De Luca, told an Italian newspaper over the weekend that a Microsoft takeover would be “an operation without sense.” Kind of like a MicroHoo after all the engineers quit to join Google, eh Geurrino? He says that, “without competition Logitech would lose the great pressure to innovate. Moreover there would be problems from antitrust authorities seeing as the two companies together would have a virtual global monopoly in mice and keyboards.” Come to think of it, that sounds more like a warning to Microsoft to think twice about making a hostile takeover bid than it does a flat denial of rumors. As usual, having officially commented on the rumor only serves to perpetuate speculation.

[Via GamesIndustry]

Read | Permalink | Email this | Comments

Source: Thomas Ricker

written by

Filed under: Cellphones

It’s barely been a month since Acer dropped a big chunk of cash to buy up 75% of Packard Bell, but it looks like the company still had plenty of money left to throw around, as it’s now parted with a hefty $290 million to buy up 100% of Glofiish smartphone-maker E-Ten. According to Acer itself, the boards of both E-Ten and Acer approved the deal unanimously, and they expect the acquisition to close sometime during the third quarter of this year. Any other details, however, are expectedly light, including any word on how future devices would be branded, with Acer chairmen J.T. Wang only saying that the “acquisition of E-TEN increases Acer’s global footprint by giving us a strong and highly credible presence in the mobility segment.” No word on any future moves by Acer just yet but, given its recent spending spree, we wouldn’t be surprised if it tried to expand that “global footprint” even further.

[Via Phone Scoop]

Read | Permalink | Email this | Comments

Source: Donald Melanson

written by

Filed under: GPS

Reuters is reporting that the European Commission, apparently having completed is inquiry into the $4.2b acquisition offer TomTom made Tele Atlas last year, is apparently issuing a “statement of objections.” Apparently it’s not a flat-out rejection / do not pass go / do not collect $200, but now TomTom has until May 5th to work on resolving the issues the EU’s presented before it can get the thumbs up to make its big buy.

Read | Permalink | Email this | Comments

Source: Ryan Block

written by

Filed under: Cellphones

Well, it looks like the aggressively priced unlimited action really didn’t come a moment too soon. We’re no economists here, but it doesn’t take rocket science, a Ph.D., collegiate level maths, or even a fancy calculator to crunch the cold, hard numbers coming out of Sprint Nextel’s fourth quarter earnings call. For starters, the number three carrier in the US reported a net loss of nearly $29.5 billion, which — get this — is more than the combined value of its outstanding stock. Let us reiterate for emphasis and drama value: Sprint lost more money in the fourth quarter of 2007 than the company is worth. Wow. If it’s any consolation, the staggering figure is largely due to a $29.7 billion write-down of Nextel’s value, which as the Wall Street Journal lays out, makes the 2005 merger officially a “Deal From Hell.” With postpaid subscribers continuing to migrate to other carriers, there’s no telling how to stop the hemorrhaging — especially if the fresh $99 unlimited plan doesn’t end up doing the trick — but something tells us the move to Kansas isn’t going to magically patch it all up.

Read | Permalink | Email this | Comments

Source: Chris Ziegler

written by