Archive for November, 2009

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100,000 units sold for Motorola Droid launch

Motorola DroidThe much anticipated launch of the Motorola Droid arrived last week, and with it a high expectation of the public response. Although the earliest reports indicated that Verizon stores had a lackluster turnout for launch, this week we have received the official numbers and the Droid made a solid debut.

Verizon sold some 100,000 Droid phones over the past weekend, which was more than half of all the Motorla Droids stocked. Although it isn’t as impressive as the iPhone 3GS launch, which sold some 1 million units, it is quiet an achievement for Verizon.

The numbers are oddly reminiscent of the launch of another phone that was seen as an iPhone competitor, the Palm Pre. The Pre sold almost the same amount for its weekend release but has somewhat dwindled in popularity since.


Mashable


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EA acquires Playfish for $300 million and a $100 million earnout

EA logo If you still think that social gaming is irrelevant, guess again! Today Electronic Arts has closed their acquisition of the social gaming startup Playfish, for $275 million in cash. EA also payed $25 million in stocks, as well as $100 million in earnouts, which comes to a $400 million total deal.

Playfish is based in London and has developed games for Facebook, MySpace, and number of other social media sites. They claim to have some 60 million monthly users, and their top games include Pet Society, Restaurant City, and who has the Biggest Brain.

The EA acquisition of Playfish shows a serious shift in the direction of gaming. Social gaming has become more and more popular with the growth of social networking. EA will be one of the first major console publishers to step into the social gaming realm. Many more may be soon to follow.

A few of the other top social gaming companies include Zynga and Playdom.

TechCrunch


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Settlement reached on eBay sale of Skype

eBay LogoThe on-line auction site eBay has announced that the Ebay/Skype lawsuit has reached a settlement, and that the selling of Skype’s controlling interest will continue.

The conflict began when Skype owners expressed their discontent with how eBay was handling their business. During this time eBay proceeded to sell Skype to a group of investors and Skype filed a lawsuit in response.

When eBay purchased Skype in 2005 they failed to purchase a key p2p technology needed to power the service. Still owned by Skype owners they have since threatened to end the licensing that powers the p2p technology.

The settlement will now allow eBay to sell Skype, while still holding 30 percent of the company. Skype owners Niklas Zennstrom and Janus Friis will own a combined 14 percent, and Skype will now own the key p2p technology it needs to run its service.

Mashable


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Microsoft cuts 800 jobs

Microsoft Logo

Microsoft announced today that they will be cutting 800 more jobs worldwide, in order to cope with the decline in demand for their products. The latest cuts complete a round of layoffs first announced in January which total 5,000.

CEO Steve Ballmer originally stated that the number of layoff would be around 5,000, however today’s cuts have now taken that total beyond the original estimate. Microsoft stated “We are working closely with affected employees to help them through this difficult transition.”

The news of these latest cuts comes just after Microsoft reported a drop in profits and revenue. It marked a significant decline for the company since the success of its previous year. Microsoft still employees some 90,000 individuals worldwide despite rough PC sales, and the downturn in the economy.

Although the release of Windows 7 has been an overall success, Microsoft is seeing the first real negative growth since its founding 34 years ago. It is being reported that there may be more cuts in Microsoft’s future.

Guardian Tech


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Dell finalizes a $ 3.9 billion offer for Perot Systems

Dell logoYou may remember that we reported on a story in September, in which Dell made a bid to acquire Perot Systems. Today Dell announced that they have completed their $3.9 billion offer for the consulting service. Dell will now own more than 90 percent of Perot Systems.

The acquisition will create a new business unit known as Dell Services, which will offer IT services to customers. Dell will now be able to provide a number of new services including, technology hosting, consulting, and application outsourcing.

Former Perot CEO Peter Altabef will be president of dell services, and will report to Dell chairmen and CEO Michael Dell. Altabef stated “Dell Services will be a powerful organization with the extensive capabilities and global reach to address the needs of organizations of all types.”

Dell is planning to expand its IT services with their acquisition of Perot Systems. They expect the deal to be finalized very soon.

CNET


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Amazon closes $1.2 billion Zappos acquisition

Zappos Wall LogoThis morning Amazon announced that they have officially closed their Zappos acquisition deal for a reported $1.2 billion. News of the acquisition first broke in July of this year, with the original evaluation set at $928 million.

Zappos CEO Tony Hsieh stated “I’m happy to say that we officially closed the deal at the split second between Halloween (10/31/09) and All Saints’ Day (11/1/09). From a practical point of view, we’ve switched out our previous board of directors with a new management committee that is composed of people from Zappos as well as Amazon.”

The Zappos management team will remain intact, and the company will continue to operate as a wholly-owned subsidiary. With Amazon’s closing price on Friday, 10/30/09 – the shares Zappos would get were then valued at roughly $1.2 billion. This represents a $272 million difference for Zappos.


TechCrunch