Filed under: Before the bell, Earnings reports, Analyst upgrades and downgrades, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), Time Warner (TWX), Ford Motor (F), General Motors (GM), AT and T (T), IAC/InterActiveCorp (IACI), Comcast Cl’A’ (CMCSA), Verizon Communications (VZ), News Corp’B’ (NWS)
After over a week of rumors all over the blogosphere, Apple Inc. (NASDAQ: AAPL) finally announced Tuesday it was introducing new models of the iPhone and iPod touch which have double the memory. The iPhone now comes in a new 16GB model for $499 , joining the 8GB model for $399 . iPod touch now comes in a 32GB model for $499 , joining the 16GB model for $399 and the 8GB model for $299. Now we’ll have to wait and see if the rumors about the new MacBook Pro are also true.
The Wall Street Journal reports that Yahoo Inc. (NASDAQ: YHOO) is studying alternatives to Microsoft Corp (NASDAQ: MSFT)’s unsolicited $44.6 billion takeover offer, including the emergence of a rival bidder or a business tie-up with Google Inc. (NASDAQ: GOOG) that might allow it to remain independent. According to “people familiar with the matter,” Google believes there would be too many antitrust hurdles to a straight bid. Meanwhile, according to the WSJ’s sources, possible bidders such as AT&T Inc. (NYSE: T), Comcast Corp. (NASDAQ: CMCSA), News Corp. (NYSE: NWS), Time Warner Inc. (NYSE: TWX) and Verizon Communication Inc. (NYSE: VZ), aren’t considering offers.
As there are no time constraints on the offer and while Yahoo! is studying it, some analysts believe Microsoft would raise its bid. According to Reuters, “UBS on Tuesday set a price target for Yahoo shares above Microsoft’s $31 offer and Citi said a raised Microsoft bid was the most likely of five scenarios it saw…”
Ford Motor Co. (NYSE: F) is bringing a small but tall commercial van from Europe to the United States for use mainly in congested urban areas. Meanwhile, however, Bear Stearns downgraded American automakers. Shares of Ford are down about 2.5% in premarket trading as Bear downgraded it to Peer Perform from Outperform. Shares of General Motors Corp. (NYSE: GM), which have been hit hard Tuesday, are only slightly down following the downgrade to Underperform from Peer Perform. The downgrade, Bear says, reflects concerns over the consumer’s ability to purchase new cars.
While considering the impact the Microsoft’s bid for Yahoo! could have on its business, Google isn’t sitting idly by and is preparing a counterstrike in China against market leader there, Baidu.com, Inc. (NASDAQ: BIDU). The Wall Street Journal reports that Google “is in the late planning stages of a joint venture with a Chinese online music company that would permit it to provide free — licensed — music downloads in China.”
AC InteractiveCorp (NASDAQ: IACI), which is in the midst of a battle between two media moguls Barry Diller and Liberty Media’s John Malone over dividing the company up, reported Wednesday that it lost $369.9 million in its fourth quarter, due to higher taxes, difficulty in its mortgage referral unit and restructuring costs for proposed spinoffs that would make five companies out of one. Net loss amounted to $1.31 a share for the October-December period versus profit of $15.3 million, or 5 cents per share, in the same period in 2006. Revenues rose 8% to $1.86 billion from $1.72 billion a year ago. Results fell short of analyst estimates.
Entries (RSS)