Archives

Google Files for $2.7 Billion IPO

Authored by Mark Hefflinger on April 29, 2004 - 3:31am.
Mountain View, Calif. -- Search engine giant Google on Thursday announced that it plans to raise as much as $2.7 billion in an initial public offering of shares, according to documents filed with the U.S. Securities and Exchange Commission (SEC). The company did not announce a date for the offering, or whether it would be on the Nasdaq or New York Stock Exchange, but did reveal that it would offer shares via an online auction to level the field between large and small investors. "It is important to us to have a fair process for our IPO that is inclusive of both small and large investors," said Google co-founders Sergey Brin and Larry Page. "Many companies have suffered from unreasonable speculation, small initial share float, and boom-bust cycles that hurt them and their investors in the long run. We believe that an auction-based IPO will minimize these problems." In the SEC filing, Google said that its 2003 revenues were $961.9 million, and that it made a net profit of $106.5 million for the year as sales rose 177% over 2002 totals.
tags: IPO | Law | Google |

Viacom Chairman Redstone to Buy Controlling Stake in Midway Games

Authored by Mark Hefflinger on April 29, 2004 - 3:28am.
New York -- Viacom chairman Sumner Redstone has announced his intention to purchase a controlling stake in Chicago-based video game developer Midway Games. In an SEC filing, Redstone said he intends to increase his stake in the company, which has created games including "Mortal Kombat" and "The Suffering," from 49.3% to 60%. "Do not look at this as a Viacom agenda ... it's a personal investment," Redstone told Reuters. "I have absolutely no intention to dispose of Midway. Midway will be owned by myself and National Amusements, my company." Midway this week reported financials for the first quarter of 2004, saying it suffered an operating loss of $14.2 million -- up from a loss of $9.3 million in Q1 2002 -- and revenue that fell from $45.8 million last year to $20.1 million in Q1 2003. "You will see very soon an enormous infusion of great creative talent to Midway -- and I mean very soon," Redstone added.
tags: Viacom | Midway Games | Deal | Redstone | Controlling Stake |

Court To Hear Dismissal Motions in Napster Case on June 14

Authored by Mark Hefflinger on April 29, 2004 - 3:25am.
San Francisco -- A federal judge in San Francisco has set June 14 to hear motions to dismiss lawsuits claiming investors in Napster cost the music industry $17 billion in lost sales, Reuters reported. The suit contends that Bertelsmann's $90 million investment in Napster helped keep the service operating illegally for an additional eight months. In addition to the Bertelsmann case, Universal Music and EMI Group have also sued venture capitalists Hummer Winblad, claiming the firm's $15 million investment decisions about Napster also promoted illegal piracy. Napster later filed for bankruptcy and its assets and name were purchased by Roxio, which is now offering a pay-for-use service under the Napster brand.
tags: Law | Napster | Dismissal Motions |

Ecast, TouchTunes Settle Digital Jukebox Patent Litigation

Authored by Mark Hefflinger on April 29, 2004 - 3:19am.
San Francisco -- Ecast and TouchTunes, two makers of digital music jukeboxes placed in bars and restaurants, announced on Thursday that they have agreed to settle outstanding patent infringement suits filed against one another. Under the terms, San Francisco-based Ecast agreed to pay Las Vegas-based TouchTunes a total of $4 million. The companies also agreed to cross-license each other's technology. Both companies offer products that download MP3 files over the Internet in order to update jukebox selections, unlike CD-based jukeboxes that rely on traveling reps to physically install new CDs in each jukebox in operation.
tags: TouchTunes | Litigation | Ecast | Digital Jukebox |

WeatherBug Raises $23 Million in Venture Capital

Authored by Mark Hefflinger on April 29, 2004 - 3:17am.
Gaithersburg, Md. -- WeatherBug, which runs one of the most popular Internet-based weather applications, announced on Thursday that its parent company, AWS Convergence Technologies, has secured $23 million in financing. Investors in the round included Sequoia Capital and Polaris Ventures -- both new investors -- as well as HarbourVest, the lead investor in the company's initial financing. Last week, WeatherBug, which provides localized weather information, announced a partnership with AOL Instant Messenger to launch an integrated service.
tags: VC | WeatherBug |

EMusic to Sell Live Concert Recordings on Keychain Hard Drives

Authored by Mark Hefflinger on April 29, 2004 - 3:14am.
New York -- Digital music distributor eMusic, now a unit of private equity firm Dimensional Associates, will launch a new service on May 21 that lets concertgoers take home a keychain hard drive containing a recording of the performance they just attended in MP3 format, the Associated Press reported. A pilot of the eMusic Live program will launch at Maxwell's in Hoboken, N.J., where automated kiosks will be installed to sell the reusable keychain drives for $20 each, plus $10 for the concert recording. The mostly independent artists using the service will have control over sound quality and get a cut of the profits. "This is a tool that allows fans to take home and share some of the best independent music from small live venues around the country," said Dimensional Associates CEO Daniel Stern. Recordings offered on eMusic Live feature artists including Calla, The Walkmen, The Polyphonic Spree and The Dismemberment Plan.
tags: eMusic | Live Concert Recordings | Keychain Hard Drives |