Tech Business Recap: Groupon Takes Heat, Verizon Shakes the Spectrum

Western Digital (NYSE:WDC) joins Seagate (NASDAQ:STX) in signaling a recovery from the Thai floods. It has resumed the output of hard disk drives and that it is raising its FQ2 rev outlook to at least $1.8B. That’s above Street forecasts and prior guidance. WDC is also upbeat on margins but expects to take a charge of $225M-$275M.

Zynga files for its IPO, planning to sell 100M shares at a price of $8.50-$10, a 14.3% of the company. This would give the firm a valuation of $7B should the top of that range be achieved. The stock will trade under the symbol ZNGA on the Nasdaq (NASDAQ:NDAQ).

Don’t Miss: What Did Groupon Do This Time?

Groupon (NASDAQ:GRPN) is being investigated for advertising and trading methods by a British regulation OFT, after having the case referred to it by another regulator. The firm’s latest debacle in the UK came last week when it was banned from using a promotional email for cosmetic surgery that “pressured” consumers to make a quick life-altering decision.

Research In Motion (NASDAQ:RIMM) announces it will take a $485M pretax provision in relation to its PlayBook, contributing to updated guidance. The firm says it now expects Q3 revenue will be slightly lower than the previous range of $5.3B-5.6B. It is estimating that EPS will fall in the low to mid-point of its prior guidance of $1.20-$1.40. In Q4 RIM sees lower shipments impacting its outlook, while it no longer expects to meet its full-year EPS guidance of $5.25-$6.00. Shares halted in premarket trading.

Don’t Miss: Does Google Have Amazon In Its Crosshairs?

Amazon’s (NASDAQ:AMZN) Kindle Fire contract manufacturer Quanta has reportedly shipped 3M-4M units of the tablet thus far, and expects shipments to reach 5M by late December or early January. Early consumer demand for the Fire appears to remain strong despite negative reviews.

Verizon Wireless (VZ, VOD) agrees to buy Spectrum as it is trying to keep up with the fast-growing demand for bandwidth. It’s also purchasing 122 wireless licenses from Comcast (NASDAQ:CMCSA) and Time Warner (NYSE:TWX) for $3.6B. Comcast’s share of the proceeds will be $2.3B; Time Warner’s, $1.1B.

Google (NASDAQ:GOOG) is attempting a $400M acquisition of AdMeld, sources tell Bloomberg. U.S. Justice Department staff attorneys have recommended antitrust approval of the acquisition. The staff urged approval after a detailed analysis reportedly found AdMeld’s competitors in online display advertising were strong enough to offer companies alternative ways to advertise.

Corning’s (NYSE:GLW) Q4 warning was partly attributed to weak Gorilla Glass shipments. Some DisplaySearch data helps explain why the industry trends likely playing a role. The firm estimates shipments of “cover glass,” of which Gorilla Glass is the most popular kind, and it will rise likely 178% Y/Y in 2011, but it sees growth falling to just ~25% in 2012, as the pace of its adoption in the mobile device market slows down.

Investing Insights: S&P 500 Winners: Western Digital and 2 Stocks Popping.