Time Warner Reaps $9.25B From Cable Split

Executives at Time Warner concerned with how to spin out its Time Warner Cable division seem to believe that saddling a cash-generating business in an increasingly competitive market with a lot of debt is good. It’s good for Time Warner Cable shareholders (including Time Warner), who will get a $10.27 per share dividend, but it’s kind of like penalizing a wage-earning kid by charging him a giant fee before he leaves the nest. However, it should help the parent company placate shareholders and shore up reserves while it figures out what the heck it’s doing on the content side.

Google’s AOL Stake Down By Half?

Back in December 2005, Google paid $1 billion to buy 5 percent of AOL from Time Warner, valuing AOL at a whopping $20 billion. Fast-forward to April 2008. According to The Wall Street Journal, AOL and Yahoo are in talks to combine the two companies. AOL is being valued at $10 billion for the sake of this new proposed deal.

Under the terms being discussed between Yahoo and Time Warner, the latter would fold its AOL unit into Yahoo and make a cash investment in return for about 20% of the combined entity, people familiar with the situation said. The deal, which wouldn’t include AOL’s dial-up access business, would value AOL at about $10 billion.

What that tells us:

* No way AOL’s loser dial-up business is worth $10 billion.
* In the last 25 months, AOL lost half its value.
* And Google took a bath. Their $1 billion investment (5 percent) is now worth exactly half: $500 million.

Of course, AOL has been selling off its parts for the past few years and has raised close to around $3 billion, including the $1 billion it got from Google.

Yahoo, Google, AOL Strike a Pose for Microsoft

Yahoo and Google are reportedly going to run a two-week test in which a limited amount of Yahoo’s U.S. traffic will carry Google ads. If all goes well, then a broader outsourcing search arrangement could be struck by the two companies. And as they experiment, talks of combining AOL and Yahoo are gaining traction. Continue Reading.

Hurry Up and Bounce

[qi:053] A bounce in technology stocks, at this point, is inevitable. With the S&P’s tech sector down 10 percent so far this year — and a bearish-looking 20 percent since last summer — it’s just a matter of time before the sellers get tired and others step in to buy, if only for short-term gains.
That leaves two questions: The first is when will the bounce come? And more importantly, what happens then? Is it the proverbial dead cat? Or is it a chance to get in on a sure-fire recovery now that the worst is past? Without a doubt, there’s as much uncertainty now as there has been in a while, and an absence of indicators tends to make us read the worst into the vague gloom. Further, there’s plenty of gloom to read into. Read More about Hurry Up and Bounce

CES Day 3: Viacom, Panasonic, Comcast

Just when you though you’d read about all the tech news that could ever possibly come out of CES — they KEEP PULLIN’ YOU BACK IN!
Viacom is spreading itself all over the web, signing syndication deals with Dailymotion, Go Fish, iMeem, MeeVee and Veoh. Content from Comedy Central, MTV, Nickelodeon and VH-1 will be available on the sites in the coming weeks. The move augments Viacom’s existing content partner list, which includes, AOL, Bebo, Fancast and Joost. Also as part of the move, Viacom has taken an equity stake in Go Fish.
People with Panasonic’s new VIERA HD TVs will be able to access YouTube videos directly from the television set. I wonder what those dog skateboarding videos would look like on Panasonic’s gargantuan 150-inch plasma TV set.
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