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Appeals Court Throws Out FCC Media Ownership Deregulation

Authored by Mark Hefflinger on June 24, 2004 - 7:49am.
Philadelphia -- The U.S. Court of Appeals on Thursday ruled that the Federal Communications Commission (FCC) did not adequately make its case when it made the controversial decision to relax media ownership rules last year, and ruled in a 2-1 decision to rescind the FCC's new rules. The deregulation would have increased the number of radio and TV stations a single company may own in the same area, as well as lift prohibitions on certain cross-media ownerships. The court's original stay of the FCC's new rules will now remain in place until the FCC revises its stance to please the court. "It looks like the court agreed with us that preserving democracy is more important than helping big companies grow bigger," attorney Andrew Schwartzman, who filed the lawsuit against the FCC on behalf of the Prometheus Radio Project, told Reuters. FCC chairman Michael Powell said the organization would carefully consider its next step. "Today's decision perversely may make it dramatically more difficult for the Commission to protect against greater media consolidation," said Powell. "This is deeply troubling and hampers the flexibility of the agency to protect the American public, as this agency is charged to do."
tags: Appeals Court | FCC Media Ownership Deregulation | Throws out |

Report: Microsoft to Request EC Antitrust Ruling Delay

Authored by Mark Hefflinger on June 24, 2004 - 7:46am.
London -- Microsoft is planning to ask the Court of First Instance in Luxembourg to postpone the European Commission's recent ruling against the U.S.-based software giant, the Financial Times reported on Thursday. In March, the Commission ordered Microsoft to pay a $602-million fine, share information with its European competitors and offer a version of Windows without its Media Player software. Microsoft will ask the court to postpone the ruling until the full appeal process, which could take up to five years, is complete. Separately, the Computer and Communications Industry Association (CCIA), one of Microsoft's most vocal critics, asked an EU court to hear its arguments against the request. By the time a suspension runs its course, the CCIA argues, Microsoft could have eliminated several of its rivals. "All the risk in suspension is to consumers and competitors, not Microsoft," the CCIA said. "If the Commission's ruling were suspended and the ubiquity of [Media Player] established ... it [would be] virtually impossible to reverse."
tags: Reports | Microsoft | EC | Antitrust Ruling Delay |

AOL to Buy Online Marketing Firm Advertising.com for $435 Million

Authored by Mark Hefflinger on June 24, 2004 - 7:45am.
Dulles, Va. -- America Online announced on Thursday that it will acquire Baltimore-based Advertising.com, a provider of interactive marketing services, for $435 million in cash. Advertising.com, which has more than 300 employees, will remain in Baltimore and will be managed as a separate company. With the acquisition, expected to close late this summer, AOL will be able to increase the services it offers to its advertisers, adding more branding, paid placement and multimedia capabilities. Advertising.com, which works with more than 800 advertisers and 1,500 online publishers to optimize the performance of online marketing campaigns, had filed for a $100 million initial public offering (IPO) in April. The company earned $12.1 million on revenue of $132 last year.
tags: AOL | Advertising.com | Acquisition | Online Marketing |

Viacom Bids to Acquire German Music Video Network VIVA

Authored by Mark Hefflinger on June 24, 2004 - 7:44am.
Frankfurt, Germany -- Media conglomerate Viacom, which owns CBS, MTV Networks, Paramount Pictures and other media businesses, announced on Thursday that it has signed an agreement to acquire a 75.8% controlling interest in VIVA Media AG, a German operator of music video networks, for about $370.6 million. Viacom also offered to buy all the remaining outstanding shares in VIVA for $15.39 per share. Viacom's MTV Networks Europe would manage the combined business, which includes VIVA channels in Germany, Poland, Switzerland, Hungary and Holland. "The acquisition of VIVA is a significant strategic initiative that would dramatically expand our position in Germany -- the biggest multichannel TV ad market internationally and a key driver of MTV's European growth plans," said Viacom co-president and Tom Freston. "In bringing together MTV and VIVA as one family, our local management will create a more diverse and exciting program offer for German TV audiences, while also tapping into the unique advantages of being part of our global network."
tags: Viacom | Acquire | Bids | German Music Video Network VIVA |

Napster, Best Buy Partner on Retail Digital Music Promotion

Authored by Mark Hefflinger on June 24, 2004 - 7:43am.
Los Angeles -- Napster, the digital music service unit of Roxio, announced on Thursday a multi-year strategic marketing alliance with Best Buy, a retailer of consumer electronics, music and movies. Under the terms, Best Buy will receive up to $10 million in Roxio stock over the term of the deal, and the two companies will engage in jointly funded marketing activities. Best Buy will offer a co-branded version of Napster at BestBuy.com, in addition to promoting Napster through in-store marketing and in its print and broadcast ads. Best Buy will feature Napster products in physical store displays and interactive kiosks, and sales associates will "focus on showing customers how the Napster service can be part of their complete solution for digital music."
tags: Napster | Best Buy | Deal | Retail Digital Music Promotion |

Content Aggregation Tools Provider NewsGator Raises Funding

Authored by Mark Hefflinger on June 24, 2004 - 7:41am.
Denver, Colo. -- NewsGator, a developer of online content aggregation tools and services, announced on Thursday that it has raised an undisclosed amount in its first round of funding. Denver-based NewsGator develops RSS tools, which allow Web users to automatically cull online content such as news from various websites and organize them for viewing on a variety of platforms, including on the Web, email or cell phones. The company is also developing a service that allows users to view syndicated multimedia content feeds on their TV using Microsoft's XP Media Center software. The funding will be used to accelerate product development, as well as for marketing and corporate sales.
tags: VC | NewsGator | Content Aggregation Tools Provider |

Mobile Entertainment Publisher Digital Chocolate Buys Developer Sumea

Authored by Mark Hefflinger on June 24, 2004 - 7:39am.
Helsinki -- Mobile entertainment publisher Digital Chocolate announced on Thursday that it acquired Sumea, a Finland-based publisher of games for mobile phones. Financial details for the deal were not disclosed. Digital Chocolate CEO Trip Hawkins, who previously founded games giant Electronic Arts, said the acquisition would give his company a foothold in Europe and provide it "with strong, established partnerships with major global carriers, broad geographic distribution and an entire catalogue of top-rated games".
tags: Mobile Entertainment Publisher | Acquires | Digital Chocolate | Developer Sumea |