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Online Advertising Growth Propels Google to Stellar Quarter

Authored by Mark Hefflinger on April 21, 2005 - 8:04am.
Mountain View, Calif. -- Crediting strong growth in online advertising, search engine giant Google on Thursday reported quarterly earnings that blew away consensus Wall Street estimates by $0.20 a share. The company reported net income of $369.2 million, up from $64 million a year ago, as revenue more than doubled to $794 million. Earnings per share of $1.12 topped analyst estimates of $0.92, and revenue also topped expectations of $731.1 million, according to a survey by Thomson First Call. "This was a very strong quarter for Google," said Eric Schmidt, the company's CEO. "We continue to execute well and we have been able to take full advantage of the growth in online advertising." The results sent company shares up more than 5% in after-hours trading.
tags: Google | Online Advertising Growth | Stellar Quarter |

Comcast, Time Warner to Acquire Bankrupt Adelphia for $17.6 Billion

Authored by Mark Hefflinger on April 21, 2005 - 8:00am.
New York -- Confirming earlier reports of the deal, Comcast, the nation's largest cable TV operator, and partner Time Warner Cable announced on Thursday that they have acquired bankrupt cable firm Adelphia, for $17.6 billion in cash and stock. Comcast and Time Warner's bid topped a rival offer of $17.1 billion from fellow cable operator Cablevision. Adelphia's shareholders will receive $12.7 billion in cash and 16% ownership in a new company, comprised of Time Warner Cable and Adelphia, which will figure as the nation's second-largest cable operator and will be spun-off to become a publicly-traded company. As part of the deal, Comcast will redeem its interests in Time Warner Cable and Time Warner Entertainment, as well as swap certain cable systems with the company, and come out of the deal with an additional 1.8 million subscribers. Time Warner Cable will gain about 3.5 million subscribers from the deal, which is still subject to approval by Adelphia's bankruptcy judge and both federal and local regulators.
tags: Comcast | Acquire | Adelphia | Time Warner | Acquisition |

Sony, Toshiba Confirm Negotiations to Avoid DVD Format War

Authored by Mark Hefflinger on April 21, 2005 - 7:56am.
Tokyo -- Sony and Toshiba, two Japanese firms that have developed rival next-generation DVD formats, said on Thursday that they are now in negotiations to avoid a format war similar to the one Sony's Betamax technology lost to VHS in the videocassette market during the '80s. Both Sony's Blu-ray and Toshiba's HD DVD are based on the same blue-laser technology, which will increase the capacity for a DVD from 4.5GB to between 30 and 50GB. "Toshiba believes a single format will benefit consumers. We are in talks (with the rival camp and related parties) and we will continue engaging in the talks," a Toshiba spokeswoman told Reuters. Backers for Sony's Blu-ray include Philips, Dell, Samsung and Matsushita, while companies supporting Toshiba's HD DVD include NEC and Sanyo. Both Sony and Toshiba denied a report in a Japanese newspaper that they were working on a "hybrid" format that could be ready as early as next month.
tags: Sony | Toshiba | Negotiations | Avoid DVD Format War |

California Violent Video Game Sales Ban Progresses in State Assembly

Authored by Mark Hefflinger on April 21, 2005 - 7:53am.
Los Angeles -- A bill that would make it a crime to sell violent video games to minors under 16 has passed a vote in a committee of the California State Assembly, but still has several obstacles to maneuver before becoming law in the state. California Assemblyman Leland Yee -- who introduced similar bills that have been defeated in the past -- saw his bill approved 8-0 by the Assembly Judiciary Committee. The bill must now pass another committee and the full Assembly before potentially being signed into law -- although similar laws in a number of states have routinely been stricken down as violations of First Amendment free speech protections. While derided by the Interactive Entertainment Merchants Association, which pointed out that retailers already ask for ID when selling games rated "M" for mature, Yee's bill has the support of the American Academy of Pediatrics, Common Sense Media and Girl Scout Councils of California.
tags: California | Violent Video Game Sales Ban | Progresses | State Assembly |

Mobile Entertainment Publisher Kayak Acquires Chasma Interactive

Authored by Mark Hefflinger on April 21, 2005 - 7:50am.
Nashua, N.H. -- Mobile entertainment publisher Kayak Interactive announced that it has completed its acquisition of Chasma Interactive Publishing, a New Hampshire-based publisher of wireless entertainment content. Financial terms of the acquisition were not disclosed. Kayak said that the acquisition expands its portfolio of offerings with several products already in the distribution channel as well as two key titles to be launched in the near future, "Slingo," based on a popular web game, and "Poker Superstars Invitational Tournament," based on the hit TV show. Two months ago, Kayak announced its merger with Swedish based mobile games publisher Synergenix Interactive.
tags: Mobile Entertainment Publisher | Acquisition | Acquires | Kayak | Chasma Interactive |

Ireland-Based Software Firm Digisoft.tv Raises $3.3 Million

Authored by Mark Hefflinger on April 21, 2005 - 7:48am.
Cork, Ireland -- Digisoft.tv, an Irish digital TV and entertainment firm, announced that it has raised $3.3 million in venture capital financing. Digisoft's software allows broadcasters and content providers to deliver interactive services like text and e-mail messaging using digital TV. The company said it would use the funds to capitalize on the roll-out of digital TV in Europe and the U.S. Pat McDonagh, technology investor and founder of Riverdeep, led the round, with Enterprise Ireland and 4th Level Ventures also participating. "We think Digisoft is an exceptional Irish company with genuine international potential in a very exciting field," said Paul McGuinness of Dolmen Securities. "We are delighted to have the opportunity to support them at this stage in their development."
tags: VC | Digisoft.tv | Ireland-Based Software |