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: HDTV, Home Entertainment

DirecTV and DISH Network trying to get together again? That’s the idea according to the Wall Street Journal, apparently in response to DISH making “a major strategic shift” after losing 25,000 subscribers in Q2. Of course the last time these two tried U + me = Us back in 2001, regulators put the smackdown on the idea, but apparently DISH CEO Charlie Ergen thinks things may be different now. We can see how a 90% drop in subscriber growth (and a blown satellite or two) could cause anyone to reevaluate things, but as our extensive experience watchnig daytime TV proves, running into a new relationship to escape ones problems never works out long term, but it is interesting to see if either is really willing to stop the constant one-upsmanship and concentrate on taking on the cable (& telco) companies together.

[Thanks, Adam]

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Filed under: Home Entertainment, Portable Audio

In a somewhat unsurprising move, the FCC has approved the merger of Sirius and XM after protracted — and incredibly boring — multi-year negotiations. The Federal Communication Commission decided tonight to allow a deal that will bring the two satellite radio providers together, creating a combined subscriber base of roughly 18 million users. The deal isn’t without catches, however, with the Commission stating that the companies must cap prices for three years following the merger, allow subscriber choice on content, and lower fees for channel packages. FCC head Kevin Martin seemed pleased with the final outcome, stating, “Consumers will get to enjoy the best of the programming on both services.” You know who wasn’t so stoked? Clear Channel.

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Filed under: Portable Audio

We basically knew the FCC was going to approve the XM / Sirius merger after the DoJ approved it earlier this year, and it looks like the communications agency is just about ready to sign off — the Wall Street Journal is reporting that a majority of FCC commissioners are close to approving the deal. Word is that XM and Sirius will have to fork over an additional $20M to make it happen and agree to several enforcement terms, but it’s all up in the air until this goes official. Let’s hope that’s soon — after a historically long delay, it looks like there’s finally some light at the end of the tunnel.

[Warning: Read link requires subscription]

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Filed under: Portable Audio

Even though the Justice Department has approved the XM / Sirius merger and the FCC’s approval is all but sure to follow, those pesky fools at NAB just won’t go down without a fight — the organization is demanding that FCC’s approval be postponed until certain documents are turned over by the agency. NAB says the paperwork shows “apparent wrongdoing” by Sirius and XM officials in including FM transmitters in radios and terrestrial repeaters, and it met with FCC officials on Tuesday to make its claim. There’s no word on how effective any of this is going to be, but we’ll give it to NAB for being tenacious, at least — now please, go away.

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Filed under: Cellphones

Do you hear that, Helio? That [cue Sir Richard Branson’s soothing voice] is the sound of inevitability. Rumors have been swirling for a few weeks now that SK Telecom — Helio’s majority owner — is getting ready to cut, run, and offload its share to Virgin Mobile, rolling the scrappy MVNO into the one and only virtual network in the US that’s been met with substantial, quantifiable success (more recent stock woes notwithstanding). Now, the Financial Times is reporting that a deal is cued up and ready for a public introduction as early as this week. The sooner, the better, because tons of questions remain about the fate of subscribers and the introduction of the pretty hotly anticipated Ocean 2, a device that at one time could’ve been Helio’s savior; too late for that now, we guess.

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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: Misc. Gadgets

Alright, we’re so over this, guys. Either somebody buys somebody or they don’t, but we can’t stand all the drama and the grandstanding and the hurt feelings. Microsoft won’t pay $33 a share anymore, Yahoo’s shares are down, Icahn is on a rampage — when did this stop being fun?

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Filed under: Cellphones

Just a quick bit of math and you can see that today’s news doesn’t bode well for AT&T, which has been enjoying its position at the top of the heap in major US cellphone carriers for quite some time now. While AT&T has a solid 71m subscribers under their belt, number two Verizon has 67m and number five Alltel has 13m — which means this merger could potentially put 80m customers under the same roof. Clearly being able to claim the “most reliable” AND most widely used network in the US makes it a tantalizing deal for VZW, but the ~$2,100 they’ll be paying per subscriber isn’t lightyears away from the notoriously overinflated amount Sprint paid in their heyday for Nextel. That merger cost $36 billion, which turned out to be ~$2,350 per sub at around 15 million Nextel customers — and we all know how well that deal turned out for Sprint. But we’re sure they’re thinking this will go more along the lines of AT&T’s merger with Cingular, which worked out pretty damned well so far. So what’s this thing named, anyway? Verizon Alltel? Veritel? Allizon? We think just Verizon, thanks.

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Filed under: Cellphones

This just in: don’t believe anything you hear regarding an official 3G rollout date in China. After quite a bit of rigmarole, the Chinese government has finally announced that it will issue a trio of 3G licenses. Notably, the announcement comes with a bit of baggage — it’s also calling for a merger between China Unicom and Netcom, two of its four biggest telecommunications providers. Furthermore, it stated that it would call on China Telecom, the nation’s largest fixed-line carrier, to “purchase Unicom’s CDMA network.” Unfortunately (though not unexpectedly), there’s no time frame given for implementation, but some analysts are asserting that “a full launch of 3G services is [still] years away.” Baby steps are better than no steps, we reckon.

[Thanks, James]

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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

We’re not usually too down with enterprise-services action, but it’s hard not to notice HP’s $12-13B bid to buy out rival Electronic Data Systems. EDS is best remembered for that “Herding Cats” Super Bowl commercial, but things have been rough lately — the company just posted 62 percent decline in first-quarter profits. Still, EDS is still a leader in technology outsourcing, and HP seems to think that it’ll be better able to take down Big Blue’s powerhouse services and consulting group if they merge. The deal isn’t done yet, but we should know how things go soon.

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Filed under: Home Entertainment

Every bean-counter knows that falling prices and shrinking margins add up to one thing - cost-cutting pressure. Now we get word that JVC and Kenwood are merging underneath a single holding company, aptly named JVC Kenwood Holdings. Hopes are high for the new company, with plans to quadruple profit in three short years by focusing on car and home audio. Expect to see more of this kind of merger/acquisition activity, especially among small- to medium-sized companies as more competition — especially from South Korea and China — ramps up. Every JVC share will be exchanged for two shares in the new company, while Kenwood stock will get a 1-for-1 rate. JVC definitely got the better end of the deal, with JVC’s president continuing on in that role with the new company. It will be interesting to watch how this might affect Kenwood/Bain Capital bidding for D&M Holdings.

EDIT: the new company will be called JVC Kenwood Holdings, not JVC Holdings. - Thanks, dcny!

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Filed under: Misc. Gadgets

After the beating the company is taking in the stock market, and with several prominent investors stepping forward to express dissatisfaction with how things were handled, Yahoo CEO Jerry Yang says he was willing to discuss things further if Microsoft hadn’t turned its back on the offer. “We did not say it was a take-it-or-leave-it number in the sense that we would never negotiate any more,” he said, referring to the $37 figure. “We were totally willing to do a transaction, and they walked away.” Deep down we know he’s just miffed to be missing out on sleeping bag to sleeping bag discussions with Ballmer about adding an exclamation mark to Microsoft. Dream on, Yang.

[Via Silicon Valley Insider]

Update: Microsoft claims “we’ve moved on.“

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digg_url = ‘http://digg.com/gadgets/XM_and_Sirius_Merger_APPROVED’; Looks like that seemingly-desperate two month extension XM and Sirius gave each on the merger agreement paid off after all — federal regulators have finally approved the $5B deal. The Department of Justice’s Antitrust Division says that after “thorough and careful review” (we’ll say — it’s been over a year), it’s determined that allowing the two satellite radio companies to merge “is not likely to harm consumers.” The deciding factor appeared to be the proprietary hardware needed to receive both XM and Sirius; since consumers who shell out aren’t likely to switch, the DOJ doesn’t think the marketplace is all that competitive to begin with, which makes the impact of a merger relatively small. In fact, the DOJ says the merger could actually benefit consumers, who might see lower prices as the result of more efficient operations, broader programming options, and faster rollouts of new technology.

Of course, it’s not quite all over yet — the FCC’s approval is yet to come following its own historic delay and NAB’s rabble-rousing, but most analysts say the FCC will follow the Justice Department’s lead and approve the merger as well. Now the big question: will consumers be able to use their existing radios to get all the stations or not? We’ll let you know — we’re trying to find out all we can. Entire official DOJ statement after the break.

[Thanks to everyone who sent this in]

Continue reading XM / Sirius merger approved!

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Filed under: Misc. Gadgets

We’ve heard nothing since January when the first rumors broke of a Logitech buyout by Microsoft. In fact, the rumor mill has been so quiet that we nearly forgot about the prospect. Now Logitech CEO, Guerrino De Luca, told an Italian newspaper over the weekend that a Microsoft takeover would be “an operation without sense.” Kind of like a MicroHoo after all the engineers quit to join Google, eh Geurrino? He says that, “without competition Logitech would lose the great pressure to innovate. Moreover there would be problems from antitrust authorities seeing as the two companies together would have a virtual global monopoly in mice and keyboards.” Come to think of it, that sounds more like a warning to Microsoft to think twice about making a hostile takeover bid than it does a flat denial of rumors. As usual, having officially commented on the rumor only serves to perpetuate speculation.

[Via GamesIndustry]

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Filed under: Home Entertainment, Portable Audio

According to Pacific Crest Washington analyst Erik Olbeter (yeah, you know, Erik Olbeter), the seemingly ill-fated, extremely drawn out XM and Sirius merger now seems, “Less likely.” It shouldn’t come as any surprise if you’ve been following this story, which is now entering its 13th month of heel-dragging and unfulfilled promises. With last week’s announcement that the deadline would be extended an additional two months, Olbeter feels that, “Prospects for the merger have become increasingly cloudy.” He goes on to suggest that, “The FCC and Department of Justice are having a hard time justifying the deal,” though he believes that both are, “inclined to approve the merger.” Still, not a terrific outlook by any means, and certainly a contributor to the increasing feeling that this thing might never really happen.

[Via Orbitcast]

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Filed under: Portable Audio

The XM / Sirius merger soap opera never ends, does it? Although the original deal allowed for either company to walk away risk free on March 1 if government regulators didn’t approve, the two companies have looked each other deeply in the eye and re-affirmed their love for each other — for another two months. That’s right, they’ve only extended the deadline for a whopping eight more weeks — it’s like no one at either company has noticed that this no part of this process has actually been on schedule or gone smoothly. Seriously, if we thought we could put a merger on deathwatch, we might actually do that here. Ah well, here’s to young love — too bad most of those stories end up with everyone dead, eh?

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Filed under: Cellphones

Well, it looks like the aggressively priced unlimited action really didn’t come a moment too soon. We’re no economists here, but it doesn’t take rocket science, a Ph.D., collegiate level maths, or even a fancy calculator to crunch the cold, hard numbers coming out of Sprint Nextel’s fourth quarter earnings call. For starters, the number three carrier in the US reported a net loss of nearly $29.5 billion, which — get this — is more than the combined value of its outstanding stock. Let us reiterate for emphasis and drama value: Sprint lost more money in the fourth quarter of 2007 than the company is worth. Wow. If it’s any consolation, the staggering figure is largely due to a $29.7 billion write-down of Nextel’s value, which as the Wall Street Journal lays out, makes the 2005 merger officially a “Deal From Hell.” With postpaid subscribers continuing to migrate to other carriers, there’s no telling how to stop the hemorrhaging — especially if the fresh $99 unlimited plan doesn’t end up doing the trick — but something tells us the move to Kansas isn’t going to magically patch it all up.

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Filed under: Cellphones

Well, it looks like the aggressively priced unlimited action really didn’t come a moment too soon. We’re no economists here, but it doesn’t take rocket science, a Ph.D., collegiate level maths, or even a fancy calculator to crunch the cold, hard numbers coming out of Sprint Nextel’s fourth quarter earnings call. For starters, the number three carrier in the US reported a net loss of nearly $29.5 billion, which — get this — is more than the combined value of its outstanding stock. Let us reiterate for emphasis and drama value: Sprint lost more money in the fourth quarter of 2007 than the company is worth. Wow. If it’s any consolation, the staggering figure is largely due to a $29.7 billion write-down of Nextel’s value, which as the Wall Street Journal lays out, makes the 2005 merger officially a “Deal From Hell.” With postpaid subscribers continuing to migrate to other carriers, there’s no telling how to stop the hemorrhaging — especially if the fresh $99 unlimited plan doesn’t end up doing the trick — but something tells us the move to Kansas isn’t going to magically patch it all up.

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