Filed under: Portable Audio

It’s been a long, tumultuous road for Napster, but the music service once loathed by James Alan Hetfield will soon be property of Best Buy. Announced this morning, the retail giant has agreed to buy Napster Inc. for a staggering $121 million, $67 million of which will be cold, hard cash. The deal is set to close in Q4 of this year, and it will include Napster’s “700,000 digital entertainment subscribers, web-based customer-service platform and mobile capabilities.” According to Best Buy president Brian Dunn, it intends to use “Napster’s capabilities and digital subscriber base to reach new customers with an enhanced experience for exploring and selecting music and other digital entertainment products over an increasing array of devices.” We’re still remaining calm for the moment, but if Best Buy starts buying up unprecedented amounts of dark fiber without explanation, we’ll go ahead and assume it really is trying to take over the world.

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Filed under: Cellphones

We know, the little possibility that the whole deal could fall apart has been keeping you wide awake for months, but at long last, you can push aside your anxiety and hit the sack. Virgin Mobile USA announced today that it had “completed its acquisition of Helio,” and all of the terms put forth on June 27th were used in the final close. Aside from garnering all the necessary regulatory approvals, Helio shareholders SK Telecom and EarthLink have received 13 million shares of Virgin Mobile USA Class A common stock, with a value of around $38 million. It’s also noted that both SK Telecom and Virgin Group will each invest a cool $25 million in Virgin Mobile USA for preferred shares. And then, there was one.

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Filed under: Portable Audio

Logitech is getting into the earbuds game, announcing today that it’s buying privately-held Ultimate Ears. Historically focusing on spendy in-ear monitors for live musicians, Ultimate Ears has recently hit the earbud game with full force, and Logitech seems to want a piece of that action. Plus the acquisition price of $34 million is like, what, profits from your last seven minutes of iPod dock sales, Logitech? Logitech and Ultimate Ears expect the deal to close in August.

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Filed under: Cellphones, Wireless

It’s taken more than a year, but Verizon has just officially announced that it has completed its purchase of Rural Cellular, which you may also know by its business name, Unicel. This latest announcement follows a conditional approval from the FCC earlier this week, which required one of the two companies to sell licenses in six markets in order to “improve competition” — a compromise Verizon seems to have been more than willing to accept. All told, Verizon will be forking over $2.66 billion in cash and assumed debt for the company, which will increase its customer base by more than 625,000, and expand its coverage area by 4.7 million people, including markets in Maine, New Hampshire, Massachusetts, Alabama, Mississippi, Minnesota, North Dakota, South Dakota, Wisconsin, Idaho, Washington and Oregon.

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Filed under: Cellphones

So Palm, what exactly have you been up to lately? Besides pumping out that tired, ho hum 800w, of course. The snoopers over at monoNews went and dug through your latest 10-K filing, and it seems as if that noteworthy Elevation Partners deal wasn’t the only agreement you were wrapped up in during the past little while. As a matter of fact, we’re seeing that during February of 2007, you “acquired the assets of two sole proprietorships [at a cost of $19.2 million] focused on mobile computing and media devices, one a developer of user interface environments and the other a developer of email software applications.” Oh, and in October of last year, you “acquired substantially all of the assets [for $500,000] of a corporation focused on developing solutions to enhance the performance of web applications.” Curiously, you nonchalantly failed to mention any names, but it’s pretty clear that those new pick-ups weren’t utilized in the last 16 months or so.

[Via mocoNews, image courtesy of DayLife]

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Filed under: Cellphones, Gaming

It was already all but a done deal once the shareholders gave the thumbs-up and EU regulators gave the go-ahead, but Nokia has now announced that it has officially wrapped up its acquisition of NAVTEQ — a move that, coincidentally, comes just a few days after TomTom and Tele Atlas finalized their own deal. As you might expect, both Nokia and NAVTEQ have nothing but praise for the $8.1 billion deal, with Nokia President and CEO Olli-Pekka Kallasvuo saying that, “Nokia and NAVTEQ together make a powerful combination, and customers will benefit as the transaction enables NAVTEQ to accelerate its expansion into new regions and introduce innovative new content.” NAVTEQ President and CEO Judson Green further added that, “Nokia has a deep understanding of the requirements for the industry,” before dishing out the usual line about how the deal will benefit the customers most of all.

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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.

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Filed under: Desktops, Laptops

Never heard of Everex? They’re the smallish, low-end PC maker owned by FIC (who we’d guess also might not know) that makes the Cloudbook (among other things). We only mention them because a third, even more unfamiliar company, a systems integrator named NewMarket Technology, is buying out 75% of Everex to flesh out their mobile hardware presence in certain developing nations. The sum’s undisclosed, the transaction’s due for completion this September, and you might still be wondering what it all means to you. Well, unless you live in Asia or Latin America, probably not a whole lot.

[Via PC World]

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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]

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Filed under: Cellphones

It ain’t over until it’s over, but we just got word that Helio store managers received notification this week that the axe is finally falling: (at least some of) the nationwide chain of retail stores will be shuttered during Virgin’s takeover of Helio. As we’ve heard, “there is no ‘merge’ in this merger,” so it sounds like after this year’s big executive reshuffle, SK Telecom is bailing on their half-billion dollar enterprise a big way. No word if the fabled Ocean 2 will make it — or if Virgin will even let Helio customers keep their phones.

Alongside Helio — more or less the last man standing — the great MVNO goldrush also dies. Unfortunate that besides Virgin and a few local and M2M providers (like Amazon’s Whispernet), pretty much no one was able to make it work. Then again, no one ever never said making cellphones and running any kind of carrier was easy.

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Filed under: Cellphones

Not like we were really suspecting any issues or anything, but the European Commission has just made public its “unconditional approval” of Nokia’s “voluntary tender offer for all the shares in Trolltech ASA.” In other words, Nokia’s acquisition of Trolltech is officially complete, with today being the final day in which the latter company is listed on the Oslo Stock Exchange. Such a cute couple, don’t you think?

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Filed under: Cellphones

Not like we were really suspecting any issues or anything, but the European Commission has just made public its “unconditional approval” of Nokia’s “voluntary tender offer for all the shares in Trolltech ASA.” In other words, Nokia’s acquisition of Trolltech is officially complete, with today being the final day in which the latter company is listed on the Oslo Stock Exchange. Such a cute couple, don’t you think?

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Filed under: Cellphones

Not like we were really suspecting any issues or anything, but the European Commission has just made public its “unconditional approval” of Nokia’s “voluntary tender offer for all the shares in Trolltech ASA.” In other words, Nokia’s acquisition of Trolltech is officially complete, with today being the final day in which the latter company is listed on the Oslo Stock Exchange. Such a cute couple, don’t you think?

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Filed under: Cellphones

Verizon has certainly courted Alltel before, but this time, the two could finally be rounding third base. According to a breaking report at CNBC, Verizon is “in deep in talks to acquire Alltel,” which of course is America’s fifth largest wireless carrier. It’s no secret that Alltel has been riding fairly high of late, and unless your memory is totally shot, you’ll likely recall that it was just recently “taken private by TPG and Goldman Sachs Capital Partners in a $27.5 billion deal.” Not surprisingly, officials at both outfits refused to comment on the rumblings, but if this does indeed go down, analysts are expecting Verizon to pay around 8x Alltel’s current EBITDA, whereas TPG / Goldman Sachs paid 9.2x. We’ll keep you posted on any developments.

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Filed under: GPS

Despite issuing an early statement of objection, the EC has come around to see the merits of a TomTom / Tele Atlas deal. In fact, the two companies have received “unconditional clearance” from the European Commission for the proposed acquisition. The US already approved the deal in October. Thing is, shareholders better get a move on since the bidding-war-boosted $4.2 billion offer (plus another $300 million thanks to the weakass dollar) made in November is set to expire on May 30th. Although it could be extended. Of course, Garmin made a move for Tele Atlas early on with a $3.3 billion bid of its own. Nevertheless, with TomTom profits heading downward and Garmin’s own, hotly anticipated Nuvifone on the horizon, maybe Garmin will be laughing last after all.

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Filed under: Misc. Gadgets

Well, that’s that! Microsoft has officially pulled its bid for Yahoo! — inflated another $5 billion for good measure — after the company did “not move toward accepting [the] offer”. Developing…

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Filed under: Cellphones

Over the years our pals at Deutsche Telekom haven’t exactly played the most aggressive game in the States, but finally we have word about the first possible suitor for the ailing Sprint. Although the rumor originates from German paper Der Spiegel and doesn’t cite sources, word has it Deutsche Telekom and T-Mobile USA are making the possibility of snagging Sprint (and all its heavy baggage, read: Nextel) a “top priorty” in a bid to take a competitor out of the game and pick up the number three spot. Supposedly formal negotiations haven’t even begun yet, but if you thought the integration between Sprint and Nextel was messy, just watch what happens when you bring a third carrier into the mix — and did we mention the infrastructure would would be GSM with AWS, PCS CDMA, and iDEN, all competing for spectrum and handset allocation? Good luck guys.

[Thanks, Khattab]

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Filed under: Misc. Gadgets

Details are fuzzy right now — and what details there are have been officially denied — but the Japanese press is having a bit of a field day over the possibility of a Sanyo selloff to Matsushita / Panasonic. Apparently Goldman Sachs, Sumitomo, and Daiwa own some 67% of Sanyo’s equity, and as Japanese paper Yomiuri reports, are looking at the possibility of transferring said equity to or otherwise forming a partnership with Matsushita. Again, both Matsu and Sanyo are denying the report as of now, so it’s all still up in the air as the salarymen figure out whether to combine both companies to make a corporate entity larger than even Hitachi (which currently sits at the top of Japan’s heap).

[Via Engadget Japanese, thanks Theirry]

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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

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Filed under: Portable Audio

You remember Gracenote, right? They’re the company that some years back kinda sorta misled everybody that populated the CDDB with data by selling the whole thing and closing off the platform. Well, they’re laughing all the way to the bank once again: Sony just bought ‘em up for $260m, with the deal set to close in late May.

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