Tech Business Recap: SAP Earnings, Amazon’s Investigation
Sony (NYSE:SNE) and Private Equity firm TPG Capital L.P. might be entering a joint deal. TPG Capital L.P. is willing to funnel $1 billion into scandal-stricken Olympus (OCPNY.PK) in the deal sources say, but TPG is also propositioning executives at Canon (NYSE:CAJ), Fujifilm (FUJIY.PK) and Panasonic (NYSE:PC) about the possibility of a joint approach sources say.
Investing Insights: GameStop and Electronic Arts Punch S&P 500 Shares on Poor NPD Data.
SAP (NYSE:SAP) shares climbed after reporting fourth quarter earnings that beat analysts’ estimates. Operating profit was 1.78 billion euros ($2.3 billion) under accounting standards SAP uses for its own forecasts. Consensus was 1.73 billion euros, and revenue from software and software-related services rose 13% year-over-year to 3.72 billion euros at constant currencies.
GameStop (NYSE:GME) drops after market researcher, NPD reports that United States retail sales of video game hardware and software in December fell 28% and 14% year-over-year, respectively. For all of 2011, hardware sales fell 11%, and software sales 6%, and the current generation of consoles showed its age. The Xbox 360 (NASDAQ:MSFT) was the best-performing console. It accounted for 49% of 2011 retail console spending.
Investing Insights: DJIA Losers: IBM, Cisco, and Intel Display Tech Weakness.
Amazon (NASDAQ:AMZN) is under government investigation into its pricing for electronic-books, USA Today reports, but 32 of the top 50 titles are on its bestseller list for January 2-January 8 which saw higher electronic-book sales than print sales. The government is investigating the widespread complaints, but the high margins attached to e-book sales could make their growth a positive one for publishers such as The McGraw-Hill Companies Inc. (NYSE:MHP). For Barnes & Noble Inc. (NYSE:BKS), it is a very mixed blessing.
Microsoft’s (NASDAQ:MSFT) Windows Phone is one of the big Public Relations winners from this year’s CES. A lineup headlined by Nokia’s (NYSE:NOK) Lumia 900 and HTC Corp.’s Titan II created plenty of positive chatter but the Window Phone impressed even Apple enthusiast MG Siegler. Morgan Stanley forecasts Nokia will ship 37 million Windows Phones in 2012 and 64 million in 2013. HTC Corp., meanwhile, is expected to ship 43 million this year and 74 million next year.
Google+ (NASDAQ:GOOG), according to the Electronic Privacy Information Center, is improperly making available details about Google+ users in search results reports. CNBC says it is being scrutinized by the Federal Trade Commission following a complaint asking it to examine whether the social networking service violates consumer privacy and in response the Electronic Privacy Information Center says users should be able to “opt in,” not request their removal.
Don’t Miss: Rioting at Beijing Apple Store Over iPhone 4S.
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