MERGERS
Web Mergers Doubled in 2000, But the Shakeout Took a Toll (WSJ)
Interactive Television Market New Concern for AOL-Time Warner Merger
(NYT)
FCC Probing Murdoch Deal (WP)
CABLE
Advertising: Nickelodeon Runs Spanish-Speaking Commercials (NYT)
GRANTS
TOP's Next Grant Round: Congress Has Appropriated $45.5 Million For
Grants (NTIA)
INTERNET
Starbucks Joins Microsoft in Deal To Serve the Web With Its Coffee
(WSJ)
E-Mail Frequently Used to Make Holiday Plans, Survey Finds (WP)
WIRELESS
Singapore Delays License Sale for New Cellular Networks (NYT)
MERGERS
WEB MERGERS DOUBLED IN 2000, BUT THE SHAKEOUT TOOK A TOLL
Issue:
The number of Web-related mergers and acquisitions doubled in 2000 from a
year earlier. Buyers spent $87 billion on 910 deals involving Internet
companies in 2000, according to a study released Wednesday by
Webmergers.com. The first quarter of 2000 accounted for 60% of the spending,
while the last quarter accounted for just 6%.The study found that though
spending on deals dropped as the sector's turmoil dragged on, the number of
mergers remained high as cash-hungry firms struggled to find partners. While
the 2000 numbers were strong, the dot-com turmoil that gripped the Net
sector late in the year took a toll. Webmergers estimates that more than 40
companies shut down in December alone, representing some $1.5 billion in
investment by venture capitalists and other private and public investors.
The study also says as many as 15,000 people may have lost their jobs during
the shakeout. "We're hoping that the worst is behind us, but it will take
some time to see," said Mr. Miller.
[SOURCE: Wall Street Journal (Interactive), AUTHOR: Jason Anders]
(http://interactive.wsj.com/articles/SB978562905810104511.htm)
(requires subscription)
INTERACTIVE TELEVISION MARKET NEW CONCERN FOR AOL-TIME WARNER MERGER
Issue: Internet
The emerging interactive television market has become a last-minute point of
debate as the Federal Communications Commission tries to wrap up
consideration of America Online's purchase of Time Warner, sources say. AOL,
the world's biggest Internet service, has launched an interactive television
product, AOLTV, and stands to hold a substantial share of the emerging
market with the acquisition of Time Warner and access to its cable lines.
Interactive television markets essentially marry Internet features like
e-mail and surfing with television, allowing consumers to communicate with
each other while watching a show or to interact with programming or
advertisements.
[Source: New York Times, Author: Reuters]
(http://www.nytimes.com/reuters/technology/tech-timewarner-itv-d.html)
(requires registration)
FCC PROBING MURDOCH DEAL
Issue: Merger
Media mogul Rupert Murdoch's plan to purchase Chris-Craft Industries' 10
television stations is running into trouble with federal regulators, who say
the deal appears to violate laws limiting foreign ownership of TV stations.
Murdoch is a naturalized U.S. citizen, but News Corp., the parent company of
his vast entertainment-industry holdings, remains based in Australia.
Federal Communications Commission officials are questioning whether the
$5.35 billion purchase of Chris-Craft's stations violates a 1995 ruling by
the agency that limited News Corp. to acquiring stations only through its
Fox Television Stations subsidiary. In a Dec. 21 letter to News Corp., FCC
officials said deal suggests that Newco will actually be the "controlling
party" of the new stations, which would violate the 1995 ruling. If the FCC
does determine that Newco is 100 percent foreign-owned, the new corporate
structure would be in violation of current law that limits foreign companies
to owning no more than 25 percent of a U.S television or radio station.
[SOURCE: Washington Post (E01), AUTHOR: Christopher Stern]
(http://washingtonpost.com/wp-dyn/articles/A15181-2001Jan3.html)
CABLE
ADVERTISING: NICKELODEON RUNS SPANISH-SPEAKING COMMERCIALS
Issue: Advertising
Nickelodeon, the cable television network aimed at children, is taking
another step to appeal to its increasingly diverse audience by agreeing to
run some commercials that are partly in Spanish. The first advertiser to run
a bilingual commercial on the Network will be Chuck E. Cheese. The 16 second
spot will be one-third Spanish and the rest in English. "Hispanic children
represent about 16 percent of the children's population in the United States
and it's one of the fastest if not the fastest-growing segment. We felt that
that was a group we were not reaching with our traditional broadcast
schedule," said Jon Rice, vice president for marketing at Chuck E. Cheese.
Nickelodeon's decision to air bilingual advertisements is indicative of
efforts by mainstream media to reach out to groups of minority viewers that
are growing faster than the general population.
[SOURCE: New York Times (C6), AUTHOR: Allison Fass]
(http://www.nytimes.com/2001/01/04/business/04ADCO.html)
(requires registration)
GRANTS
TOP'S NEXT GRANT ROUND: CONGRESS HAS APPROPRIATED $45.5 MILLION FOR GRANTS
Issue: Grants
Congress has appropriated $45.5 million for grants through the Commerce
Department's Technology Opportunities Program (TOP) for Fiscal Year 2001.
TOP expects to release its Notice of Availability of Funds on January 11,
with an expected deadline for proposals sometime in March. For this year's
grant round, TOP will hold Technical Assistance Workshops in Washington, DC;
Denver, CO; and St. Louis, MO.
[SOURCE: NTIA]
(http://www.ntia.doc.gov/new.html)
INTERNET
STARBUCKS JOINS MICROSOFT IN DEAL TO SERVE THE WEB WITH ITS COFFEE
Issue: Life Styles
Starbucks said it was teaming up with Microsoft to provide wireless
Internet services inside many of its stores. Steve Ballmer, Microsoft's
chief executive, said the service will likely be designed to favor paying
subscribers of Microsoft's MSN Internet service. Other Starbucks customers
may have access to limited features, eventually including the ability to use
a Starbucks customer card that will speed in-store ordering and payment.
MobileStar Network Corp, Richardson, Texas, is providing a wireless data
network for the service, and its customers also may have broad Internet
access, Microsoft officials said.
[SOURCE: Wall Street Journal (B8), AUTHOR: Rebecca Buckman]
(http://interactive.wsj.com/articles/SB978517002559814135.htm)
(requires subscription)
E-MAIL FREQUENTLY USED TO MAKE HOLIDAY PLANS, SURVEY FINDS
Issue: Internet
All the fuss about commercialism overtaking the holiday spirit didn't hold
true for Internet users, according to a study by the Pew Internet and
American Life Project. Pew found that e-mail was used by more than half of
Internet users to make holiday plans. About a third of the respondents sent
online greeting cards this past season, and 24 percent of the respondents
searched for recipes, decorations and other party fare. "As always, the
social uses are the most frequent," said Lee Rainie, director of the Pew
Project. "That's the way life is online. E-mail is always the number one use
of the Internet."
[Source: Washington Post, AUTHOR: Carrie Johnson]
(http://washingtonpost.com/wp-dyn/articles/A16291-2001Jan3.html)
WIRELESS
SINGAPORE DELAYS NEW CELLULAR AUCTION
Issue: Internet Access
Singapore will delay an auction of licenses to operate
cellular-phone networks capable of high-speed Internet access. Analysts say
the move reflects mounting concern in the wireless
telecommunications industry about the cost of moving to its so-called third
generation of services. Singapore's Infocomm Development Authority had
planned to auction four licenses for third-generation services in February.
It said it would now hold the auction in April. The authority originally set
a minimum price of $87 million, to be paid upfront, a price some analysts
had said was too high considering Singapore's small population. Though
Singapore is relatively affluent, only 4 million people live there.
[Source: New York Times, Author: Wayne Arnold]
(http://www.nytimes.com/2001/01/04/technology/04SING.html)
(requires registration)
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