4 Jul, 2011  |  Written by  |  under News



NEW YORK |
Sun Jul 3, 2011 11:52am EDT

NEW YORK (Reuters) - The case for buying shares of wireless company Sprint Nextel Corp is weakening as the company faces tough choices about upgrading its network, Barron's reported in its latest issue.

The magazine said investors were anxious about what path Sprint would choose to upgrade its network to next-generation speeds -- either spending more on an existing deal with Clearwire Corp or entering into a deal with someone like privately held LightSquared.

Investors may get out of the stock, Barron's said, if the company takes on much more debt or chooses an upgrade path that eats into future profitability.

Sprint shares closed at $5.43 on Friday. They are down about 8 percent over the last month, but still up more than 28 percent this year.

(Reporting by Ben Berkowitz, editing by Maureen Bavdek)

original content on reuters

2 Jul, 2011  |  Written by  |  under News


The CityVille hometown game in an image courtesy of Zynga. REUTERS/Handout

The CityVille hometown game in an image courtesy of Zynga.

Credit: Reuters/Handout


By Jennifer Saba and Clare Baldwin

NEW YORK |
Fri Jul 1, 2011 2:25pm EDT

NEW YORK (Reuters) - Online game company Zynga Inc filed for an initial public offering hoping to raise up to $1 billion, the latest hot Internet startup to tap investor interest in Internet social media companies.

The company, which makes popular games that people play on the Facebook social network, did not say how many shares it was planning to sell or give an expected price range, according to a U.S. government filing on Friday.

A source previously told Reuters that Zynga's IPO could raise $1.5 billion to $2 billion and could value the company at $15 billion to $20 billion.

"I think it's going to be an exciting IPO," said Sterne Agee analyst Arvind Bhatia. "It's unique. It's one of a kind. The growth is amazing."

Zynga is the company behind FarmVille and Mafia Wars. It is the top game publisher on Facebook. While its games are free, its revenue comes mainly from selling virtual items such as tractors and weapons that people use in the games.

In the three months ended March 31, Zynga's common stockholders broke even on revenue of $235.4 million compared to $101 million for the same quarter in 2010. During the same period, Zynga reported adjusted earnings before interest, taxes, depreciation and amortization of $112.3 million, up 20 percent from the same quarter a year earlier.

"At 232 million monthly actively users and (revenue of) $235 million, that is $1 per monthly active user per quarter, which is impressive," said Wedbush Securities analyst Michael Pachter.

Zynga offers an alternative to investors beyond traditional videogame companies, which have seen their share prices erode in recent years. Zynga's games, which do not require hardware and are played mainly on Facebook, have been eating into the $60.4 billion global video game industry, which consists largely of action or sports games played on consoles and TV sets.

Consider gaming stalwarts Electronic Arts and Activision Blizzard Inc. Sterne Agee analyst Bhatia estimates that EA is trading 11 times its enterprise value to EBITDA during the last four quarters, while Activision is trading at 6 times. Zynga is trading at 34 times an estimated $15 billion valuation.

And yet, Zynga could fall prey to the same factors besetting traditional video game publishers, including pressure to churn out hits to prevent fickle players from moving on to the next trendy game.

Zynga has expanded rapidly through small acquisitions at the rate of about one a month in the last year.

THE FACEBOOK EFFECT

Zynga's dependence on Facebook is seen as a benefit --investors are piling into social media companies such as LinkedIn and Groupon -- and a risk.

The company warned that it generates nearly all of its revenue and players through the world's No. 1 social networking site. "Any deterioration in our relationship with Facebook would harm our business and adversely affect the value of our Class A common stock," according to the filing.

Last year, for example, the gaming company came close to declaring war over a change in Facebook's policy involving credits. Facebook wanted to take a 30 percent cut in transactions involving its credits -- the currency Zynga players use to buy virtual goods.

Bing Gordon, a video game veteran, Zynga board member and partner at Kleiner Perkins Caufield & Buyers, described the standoff during the TechCrunch Disrupt conference in May as a Silicon Valley version of the Cuban Missile crisis where Zynga was at one point prepared to walk away from Facebook.

"Facebook would love to lessen its dependence on Zynga, but it's not going to shoot Zynga," said Wedbush's Pachter. "Zynga is reason to come back to Facebook every day."

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.

Underwriters are being led by Morgan Stanley and Goldman Sachs.

(Reporting by Clare Baldwin, Jennifer Saba and Liana B. Baker; Editing by Lisa Von Ahn, Gunna Dickson and Robert MacMillan)

original content on reuters

29 Jun, 2011  |  Written by  |  under News

NEW YORK – Online search leader Google Inc. is taking yet another stab at social networking, as it tries to go up against Facebook in this wildly popular and lucrative segment of the Internet. This time the project is called Google+ and it aims to make online sharing more like real life.

"We think people communicate in very rich ways," said Vic Gundotra, senior vice president of engineering at Google. "The online tools we have to choose from give us very rigid services."

Other social networking tools make selective sharing within small groups difficult. They don't allow for the nuances that people are used to in offline communication and because they call so many acquaintances "friends," said Gundotra in a blog post announcing the service.

Many Facebook users, for instance, find it difficult to limit their status updates to small groups of people so that their coworkers aren't exposed to party photos or their parents aren't privy to flirtatious posts on their "wall." Though Facebook has tried to address this with a much-hyped "Groups" feature, it's not clear how many people use it.

Gundotra's criticism seems aimed squarely at Facebook, the world's largest online social network. Facebook has become synonymous with online sharing since its founding seven years ago.

In a prepared statement, Facebook said only that "we're in the early days of making the web more social, and there are opportunities for innovation everywhere."

Google, which dominates Internet search with a firm hold on two-thirds of the U.S. market, has been experimenting with different social tools since late 2009 with limited success. "Buzz" was one major mishap. The product was a social network attached to Google's popular Gmail service, and it wound up exposing email contacts that users did not want to share. Google eventually agreed to submit to independent audits of its privacy controls every other year for the next two decades as part of a Federal Trade Commission settlement.

Google shut down another attempt at online sharing, Google Wave, last August after unveiling it with much fanfare in 2009. The service, which let users chat, share files and collaborate on documents in real time, didn't gain enough fans.

More than a year in the works, the project Google unveiled Tuesday lets users share things with smaller groups of people through a feature called "Circles." This means only college buddies, say, or your favorite co-workers can see the photos, links our updates that you post.

Another feature called "Sparks" aims to make it easier to find online content you care about, be it news about surfing or barbecue recipes. You can then share this with friends who might be interested in it. In an online video, Google calls it "nerding out" and exploring a subject together.

There's also a group messaging service called "Huddle" and a feature that lets users instantly upload photos that they take with mobile phones. The photos are stored in a private photo album on Google's remote servers, and users can access them and share them as they see fit.

Altimeter Group analyst Charlene Li has high hopes for the friend grouping feature. She said that her biggest pet peeve with Facebook is its existing friend management tools. She noted that millions of people already use Google to share things with others via email, and Google+ looks like a natural extension of this type of sharing, making it more functional and organized.

"I think Facebook is going to have to up its game," she said.

Google+ is undergoing what the company calls a "field trial," so it's accessible by invitation only and not yet available to the public. The company declined to say when it'll be more widely available.

Lou Kerner, a social media analyst with Wedbush Securities, believes the game is over in the competition to become the world's global social network. With 700 million users, Facebook has won, he said.

There's a lot more to the social Web than just creating a successful social network, though, and Kerner thinks that with Google+ the search leader is trying to make its existing product offerings more social.

"I don't think they're seeing this as a direct competitor to Facebook," he said.

Google+ does have its skeptics.

"People have their social circles on Facebook," said Debra Aho Williamson, principal analyst with research firm eMarketer. "Asking them to create another social circle is challenging."

And Google is still best known for its flagship service, online search.

"The whole idea of a Google social network...they've been throwing stuff against the wall for several years and so forth nothing has stuck." Going to Google to be social, she added, is like "going to Starbucks for the muffins. Or, for that matter, going to Facebook for search."

__

AP Technology Writer Rachel Metz in San Francisco contributed to this story.

Follow Yahoo! News on Twitter, become a fan on Facebook

original content on yahoo

27 Jun, 2011  |  Written by  |  under News

NEW YORK – A member of a publicity-seeking hacker group that sabotaged websites over the past two months and is dissolving itself says his group isn't disbanding under pressure from the FBI or enemy hackers.

"We're not quitting because we're afraid of law enforcement," the LulzSec member said in a conversation with The Associated Press over the Internet voice program Skype. "The press are getting bored of us, and we're getting bored of us."

The group's hacking has included attacks on law enforcement and releases of private data. It said unexpectedly on Saturday it was dissolving itself.

In the Sunday interview, the hacker acknowledged that some of the material being circulated by rivals online — which purports to reveal the hackers' online nicknames, past histories, and chat logs — was genuine, something he said had proved to be "a distraction."

He added that three or four of Lulz Security's members were taking what he called "a breather" and said he was considering giving up cyberattacks altogether.

"Maybe I'll stop this hacking thing entirely. I haven't decided," he said. He said he couldn't speak for the others' long-term plans, but said it was possible some of the members would continue to be involved with Anonymous, the much larger and more amorphous hacking group which has targeted the Church of Scientology, Middle Eastern dictatorships, and the music industry, among others.

He said the six-member group was still sitting on a considerable amount of stolen law enforcement files.

"It's safe to say at this point that they are sitting on a lot of data."

Although the hacker declined to identify himself publicly, he has verified his membership with Lulz Security by posting a pre-arranged message to the group's popular Twitter feed.

Lulz Security made its Saturday announcement about disbanding through its Twitter account. That statement gave no reason for the disbandment.

One of the group's members was interviewed by The Associated Press on Friday, and gave no indication that its work was ending. LulzSec claimed hacks on major entertainment companies, FBI partner organizations, the CIA, the U.S. Senate and a pornography website.

Kevin Mitnick, a security consultant and former hacker, said the group had probably concluded that the more they kept up their activities, the greater the chance that one of them would make some mistake that would enable authorities to catch them. They've inspired copycat groups around the globe, he noted, which means similar attacks are likely to continue even without LulzSec.

"They can sit back and watch the mayhem and not risk being captured," Mitnick said.

As a parting shot, LulzSec released a grab-bag of documents and login information apparently gleaned from gaming websites and corporate servers. The largest group of documents — 338 files — appears to be internal documents from AT&T Inc., detailing its buildout of a new wireless broadband network in the U.S. The network is set to go live this summer. A spokesman for the phone company could not immediately confirm the authenticity of the documents.

In the Friday interview, the LulzSec member said the group was sitting on at least 5 gigabytes of government and law enforcement data from across the world, which it planned to release in the next three weeks. Saturday's release was less than a tenth of that size.

In an unusual strategy for a hacker group, LulzSec has sought publicity and conducted a conversation with the public through its Twitter account. LulzSec attacked anyone it could for "the lulz," which is Internet jargon for "laughs."

___

Satter contributed from London.

Follow Yahoo! News on Twitter, become a fan on Facebook

original content on yahoo

15 Jun, 2011  |  Written by  |  under News


Facebook founder and CEO Mark Zuckerberg attends the eG8 forum in Paris, May 25, 2011. REUTERS/Gonzalo Fuentes

Facebook founder and CEO Mark Zuckerberg attends the eG8 forum in Paris, May 25, 2011.

Credit: Reuters/Gonzalo Fuentes


By Jonathan Stempel

NEW YORK |
Tue Jun 14, 2011 4:46pm EDT

NEW YORK (Reuters) - It may take the Supreme Court to end a years-long battle between a pair of Olympic rowing twins and Facebook Inc founder Mark Zuckerberg.

Zuckerberg has lost a court ruling that he hoped would lead to the end of litigation by Cameron and Tyler Winklevoss, who accused him of stealing their idea for the world's most popular social networking website. Their feud was dramatized in the 2010 film "The Social Network."

The identical twin brothers are challenging a San Francisco federal appeals court ruling that upheld a $65 million cash-and-stock settlement they reached with Facebook in 2008.

While they appeal to the Supreme Court, related litigation will be on hold, the appeals court ruled late on Monday.

That means Facebook and Zuckerberg cannot seek the dismissal of a separate lawsuit in Boston federal court.

Zuckerberg created Facebook in 2004 in his Harvard University dormitory room in nearby Cambridge, Massachusetts.

"Facebook bargained for litigation peace," Zuckerberg's lawyers had argued in a filing with the 9th U.S. Circuit Court of Appeals, which issued Monday's ruling. "The time to end this litigation has long since passed."

Jerome Falk, a lawyer for the Winklevosses, did not immediately return a call seeking a comment.

Cameron and Tyler Winklevoss view the $65 million accord as fraudulent because Facebook hid information from them and believe they deserve more money.

The 9th Circuit disagreed, saying in an April 11 ruling that the accord was "quite favorable" for the twins, who competed in the 2008 Beijing Olympics in rowing.

Facebook might go public in early 2012 in an offering that could value the Palo Alto, California-based company at more than $100 billion, CNBC television said on Monday.

An upstate New York wood pellet salesman, Paul Ceglia, is separately suing Facebook and Zuckerberg, saying he contracted for a big stake in the company.

The case is Facebook Inc et al v. ConnectU Inc et al, 9th U.S. Circuit Court of Appeals, No. 08-16745.

(Reporting by Jonathan Stempel in New York; editing by Andre Grenon)

original content on reuters

Related Posts with Thumbnails
Get Adobe Flash playerPlugin by wpburn.com wordpress themes