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Search Giant Google Sets Price Range for IPO

Authored by Mark Hefflinger on July 26, 2004 - 4:39am.
Mountain View, Calif. -- Bringing one of the most highly anticipated initial public offerings a step closer to reality, Google on Monday said that it expects to price its shares at between $108 - $135 per share, bring the value of the IPO to between $2.7 - $3.3 billion. The Internet search giant said that it will sell 14.1 million shares -- netting proceeds in the neighborhood of $1.7 billion -- with current shareholders selling the remainder. Google also said that it plans to list its stock on the Nasdaq under the symbol "GOOG." In related news, the company disclosed that its vice president of corporate development, secretary and general counsel, David Drummond, will face a civil injunction by the SEC for an alleged violation of securities laws from when he previously served as the CFO of SmartForce. Google also faces an age-discrimination lawsuit filed last week by 54-year-old Brian Reid, the company's former director of operations, who says he was fired because of his age and ongoing health issues, CNET News.com reported. The lawsuit alleges that Google sidesteps labor discrimination laws to maintain a youthful work environment; it also states that Google's average employee age is under 30, and only 2% of its 1,600 employees are over 40.
tags: IPO | Google | Search Giant | Price Range |

RealNetworks Software Makes iPod Compatible With More Music Services

Authored by Mark Hefflinger on July 26, 2004 - 4:38am.
Seattle -- In a bid to solve the growing incompatibility problem between the leading digital music services and various portable music players, RealNetworks on Monday released Harmony, a digital rights management translation system that supports Real's Helix DRM, Apple's FairPlay and Microsoft's Windows Media Audio digital rights management. Among other things, the technology for the first time enables songs purchased from Real's music store to play on Apple's iPod. It's unclear whether Apple, which has thwarted past attempts to circumvent its proprietary digital rights management system, will welcome Harmony. RealNetworks said that a beta test of Harmony will be available in an updated version of its RealPlayer software released on Tuesday. "Before Harmony, consumers buying digital music got locked into a specific kind of portable player," said RealNetworks CEO Rob Glaser. "Thanks to Harmony, consumers don't have to worry about technology when buying music. Now anyone can buy music, move it to their favorite portable device, and it will just work, just like the way DVD and CDs work." Separately, Seattle-based RealNetworks on Monday announced that it added 100,000 new subscribers to its premium digital music services in the second quarter of 2004 and now counts a total of over 550,000 subscribers for its Rhapsody and RadioPass services.
tags: iPod | RealNetworks | Software | Music Services |

Report: Digital Music Sales Will Hit $1.7 Billion in 2009, Won't Replace CDs

Authored by Mark Hefflinger on July 26, 2004 - 4:37am.
New York -- Digital music sales will double in 2004, to $270 million, and grow to account for 12% of total consumer music spending in 2009, when they hit $1.7 billion, according to projections from Connecticut-based market research firm Jupitermedia. Revenues from subscription services are predicted to outpace individual download sales, which in the near-term will cater more to consumers looking to sample music before buying a CD. Jupiter projects that digital music will help the U.S. music industry to rebound after four years of sluggish sales, but will not replace CDs or bring the industry back to its 1999 sales peak. "The so-called celestial jukebox is in sight," said Jupiter Research senior analyst David Card. "But for now, it will appeal to music aficionados. The U.S. music industry must manage digital music as one of a series of incremental revenue streams, one that is in the same scale as licensing (e.g., ring tones, games and advertising)." Jupiter also predicts that U.S. shipments of MP3 players will grow over 50% in 2004 to well over 5 million, and will continue to grow almost 50% per year for the next several years.
tags: Reports | Sales | CDs | Digital Music |

Reuters: Microsoft Seeks Sale of Online Magazine Slate

Authored by Mark Hefflinger on July 26, 2004 - 4:36am.
Seattle -- Microsoft has begun talks with up to six potential buyers for its online magazine, Slate, with a deal to close possibly within weeks or months, a source close to the talks told Reuters. Launched in 1996 by former New Republic editor Michael Kinsley, Slate covers news, politics and culture. Microsoft has reportedly set as a condition that Slate remain affiliated with its MSN unit, which currently hosts the online magazine.
tags: Internet | Microsoft | Magazines | Reuters | Slate |

AOL to Air WB Pilot Online Before Broadcast Premiere

Authored by Mark Hefflinger on July 26, 2004 - 4:35am.
Dulles, Va.-- Marking the first time that a network program will air in its entirety online before its broadcast premiere, America Online said on Monday that The WB and Warner Bros. Television will team up with AOL Television to offer an advanced sneak preview of the new series, "Jack & Bobby," to AOL for Broadband subscribers. In the first week of the two-week promotion, kicking off in late August, AOL's broadband and dial-up subscribers will be able to watch an extended trailer of the show. The following week, AOL's broadband subscribers will be able to view the entire pilot episode. The show, follows the life of a single mother raising two sons, one of whom becomes the President of the United States.
tags: Internet | AOL | WB | Pilot | Broadcast Premiere |

Europe Urges More Action on Freeing Up Radio Spectrum

Authored by Mark Hefflinger on July 26, 2004 - 4:34am.
Brussels -- In its first-annual progress report on the EU radio-spectrum policy, the European Commission said on Monday that the bloc's efforts to free up parts of the radio spectrum for wireless technologies was "off to a good start". However, Enterprise and Information Society Commissioner Olli Rehn said EU member states, ministers and industry must make more of a sustained effort to allocate the radio spectrum more efficiently and expand the single market for new radio-based technologies. "It is only through solid cooperation and common work in this field, that we can ensure that Europe has a framework in place to allow major industrial breakthroughs to actually happen," Rehn said. Rehn went on to say that more must be done to resolve radio interference and regulatory enforcement problems slowing down the cross-border take-up of new wireless technologies.
tags: Radio | Europe | Spectrum | Freeing Up |