Tech Biz Cheat Sheet: Netflix Continues Tumble Despite New Licensing Deal, Rivals Testify Against Google
A Citi survey found that 26% of Chinese consumers are “very likely” to buy a tablet in the next 12 months, compared to just 12% of consumers in the U.S. and U.K. Chinese respondents were also more likely to see tablets as PC replacements. Of those saying they were considering a tablet, 77% said they had a preference for Apple (NASDAQ:AAPL).
Hewlett-Packard (NYSE:HPQ) is rumored to be considering replacing CEO Leo Apotheker, who has held the job only since November 2010. The news has H-P shares soaring today. eBay (NASDAQ:EBAY) chief Meg Whitman is among the rumored replacements.
ITT (NYSE:ITT) has announced a $100 million buyback of its long-term debt as a way to placate bondholders as it prepares to split into three separate publicly-traded companies.
DigitalGlobal (NYSE:DGI) is trading down after launching new credit facilities worth $600 million. The provider of high-resolution earth imagery to government and corporate clients intends to use the facilities to repurchase $335 million in 10.5% notes due in 2014, the rest going toward “general corporate purposes.”
First Solar (NASDAQ:FSLR) is set to receive federal loan guarantees for three projects by the end of the month, coming at a bad time considering the Congressional probe into federal-backed loans for Solyndra and other alternative energy firms. Should the government reject FSLR’s loan guarantees, it could have a “material negative impact” on earnings, which has the stock performing worse than any other S&P 500 company today.
Adobe (NASDAQ:ADBE) has announced plans to roll out new versions of its Flash Player and AIR development platform, both of which Adobe claims will surpass their predecessors in terms of performance. Adobe needs to make Flash more efficient and less power-hungry if its going to compete with HTML5, which has been gaining momentum.
Netflix (NASDAQ:NFLX) has issued $200 million in bonds, paying 8.5% interest, in order to buy back shares and boost its stock price, which has been tumbling since the company announced price hikes in July, followed this week by the announcement that the company would split its video-streaming service and DVD-by-mail delivery business. The company now has less than half the cash it held five years ago as subscribers continue to defect, turned off by higher prices, instead looking to competitors like Amazon (NASDAQ:AMZN) and Hulu (NASDAQ:CMCSA) for streaming video and Coinstar’s (NASDAQ:CSTR) Redbox vending machines for DVD rentals. Netflix also faces $2.4 billion in future commitments to license content for its streaming service.
Netflix (NASDAQ:NFLX) announced a 2-year streaming deal with Discovery Communications (NASDAQ:DISCA) today that renews and expands an existing agreement. The deal covers content from 6 of Discovery’s television channels.
A subsidiary of Acacia Research (NASDAQ:ACTG) has purchased the rights to semiconductor technology patents. The firm plans to grow future revenues by adding to its patent portfolio for a wide variety of tech industries.
Executives from Nextag, Yelp, and Expedia (NASDAQ:EXPE) are in Washington, D.C., today to testify at a Senate antitrust hearing concerned with whether Google (NASDAQ:GOOG) unfairly drives search-engine visitors to its own branded websites.