EMI half sold as Sony closes $2.2B publishing deal

A group led by Sony Corp. said Friday it has purchased Britain's EMI Music Publishing for $2.2 billion from Citigroup, creating the world's largest music copyrights company with a catalog that includes hits from Motown, The Beatles, Jay-Z and Norah Jones.

Now all that remains of the storied British label group is its recorded music division, which Vivendi's Universal Music Grouphas offered to buy for $1.9 billion. That deal is being looked at by European and U.S. regulators. If they approve some time later this year, the world's major music companies will be reduced from four to three.

Recorded music companies have argued that they need to combine resources to survive in an industry crippled by piracy, as the legitimate digital distribution of music is still in its infancy around the globe.

But publishing has remained a steady business over the years, despite the onslaught of the Internet and the ongoing decline of compact disc sales, because of its diverse revenue sources. And by acquiring EMI, Sony/ATV, a 50-50 joint venture between Sony and the Michael Jackson estate, will control just over 2 million copyrighted songs. The new entity is estimated to capture nearly a third of publishing revenue in the world.

Size wouldn't necessarily give the company the ability to use its dominance to boost licensing revenue, Sony/ATV argued, because licensing rates are closely controlled by laws in various countries.

Friday's clearance by the U.S. Federal Trade Commission means that regulators agreed the new entity would not have the market power to raise rates on its own or coordinate such a move with others, which could have affected the price of songs. The FTC's conclusion of its investigation without objections was the final hurdle before the deal's closing was announced later in the day.

"We've gone over the rainbow and hit the pot of gold," said Sony/ATV CEO Marty Bandier, adapting a lyric from "The Wizard of Oz" song "Over the Rainbow," which is part of the EMI catalog. Bandier ran EMI's publishing division for 17 years.

Last year, publishing companies generated about $3.9 billion in revenue, relatively unchanged over the last several years, according to Simon Dyson, editor of Music & Copyright, an industry newsletter.

Publishing's revenues have held up better than the recording side because there are more streams of revenue that aren't tied to declining sales of compact discs. Publishers and songwriters share a cut of about 8 to 9 cents for every 99-cent download purchased from online retailers like Apple Inc.'s iTunes. But they also make money from radio airplay, free online streaming and the placement of songs in movies, TV shows and commercials.

Sony/ATV's 11.7 percent share and EMI's 19.3 percent share means the combined entity will now control about 31 percent of the global market for music copyrights, leapfrogging past the 22.2 percent share of Universal Music Publishing Group, Dyson said. The next largest is Warner Music Group Corp.'s Warner Chappell with 14.1 percent. All independent music publishers combined have a 32.6 percent share.

Dyson said Sony/ATV will have increased leverage in setting licensing rates for new digital music startups if it chooses to bypass royalty collection societies like The American Society of Composers, Authors and Publishers in the U.S. But he acknowledged that would require a major shift in how most business is conducted.

"If you're a big publisher with a 10 percent lead, you're going to have a big say in what licensing rates are," Dyson said.

Fostering fair competition in the digital landscape was one of the concerns of regulators, according to Sony/ATV's Bandier. The company argued that even if there were still four major music publishers, new digital entrants like streaming music services Spotify or Songza would need to go to all of them to start up any business that has a chance to survive. It would need EMI's songs by Kanye West and Rihanna as much as it would need Sony/ATV's Beatles, Lady Gaga and Taylor Swift, Bandier said.

"It didn't make a difference if you'd put them together or separate, you'd still have to make a deal if you were a digital service that was just starting," Bandier said in an interview. "We had to convince all of the regulators that that was the case. We're happy we're past that. We never felt it would be an issue."

The transaction was cleared by EU regulators in April. That came after Sony/ATV offered the concession that it would sell the publishing rights to several catalogs as well as the works of 12 artists including Ozzy Osbourne, Robbie Williams, and Ben Harper.

Besides Sony, the buyers of EMI Music Publishing include the Michael Jackson estate and several investment funds including United Arab Emirates government-backed fund Mubadala Development Co.

Citigroup seized EMI from private equity firm Terra Firma in February 2011 after Terra Firma defaulted on $5.5 billion in debt stemming from its 2007 purchase of the music company.

(courtesy:news.yahoo.com)

Could a new “Want” button be coming to Facebook soon?

New "Want" button found buried in the site's code

While Facebook is the world's largest social networking site with nearly 1 billion users, newcomer Pinterest is giving the site a run for its money. Pinterest has become something of a showcase for people's wants — the go-to site for posting what wedding dress you'd like to wear, or what cupcakes you want to eat. Rather than cede that market to Pinterest, Facebook appears ready to compete with it via its new "Want" button.

As of now, though the button appears in the code, the functionality is not yet working. After trying to add a Want button to his site, web developer Tom Waddington told Mashable, "The button displays on the site, but clicking it shows an error message. Facebook hasn't enabled any apps to publish Wants yet."

So, is Facebook currently testing a "Want" button? Only the company knows for sure. But this little datamined nugget seems to suggest that the social network is itching to give retailers a hand in better connecting you with the products they sell.

(courtesy:news.yahoo.com)

Google Glass Explorer Edition

CNET's Rafe Needleman tries on the Google Glass Explorer Edition.

(Credit: Stephen Shankland/CNET)

Google's Project Glass got more real today when Google showed off its prototype Google Glass Explorer Edition at the Google I/O conference.

While they're not the full-on, head-up-display glasses previewed in the Project Glass demo video below, it will offer some interesting functionality.

What are they?
Google Glass Explorer Edition is the first product to come out of the company's Project Glass. At its most basic level, the Glass is a device that lets you show and interact with the world around you without disconnecting from it.

The Glass is designed to be out of the way so it doesn't interfere with your activity. According to Google, it weighs less than most sunglasses. On the side is a touch pad for control, on top is a button for shooting photos and videos with the built-in camera, and there's a small information display positioned above the eye out of the line of sight.

The actual spec details given were pretty light, other than to say it has a camera, multiple radios for data communication, a speaker and a mic, and a gyroscope so the Glass can tell your position and orientation at all times.

What can I do with them? 
While they eventually may lead you through every aspect of your waking life, in their current state of development it looks like you'll be able to do things such as have Google+ Hangouts, live-stream video, and snap pictures or shoot some movies and share what you capture with little effort. Google search is almost certain to be part of its early capabilities as well.

What's it like to wear them?
CNET's own Rafe Needleman was one of the first journalists to go hands-on (heads-on?) with the prototype Google Glass product. Rafe was allowed to try on the prototype glasses offered by Google co-founder Sergey Brin. He reports:

The glasses have audio output to the right ear only, and there's no earbud -- the sound just leaks into space. Best practice is to cup your hand over your ear and the glasses temple to amplify the sound. This works well, and Brin says the social gesture of cupping your hand over your ear alerts people near you that you are paying attention to the device.

Disabled were all the really cool features -- SMS, alerts, and the capability to read Brin's e-mail. Brin says that he has his glasses set up to not bother him with e-mail text. He gets an audible alert when a high-priority e-mail comes in, and only if he looks up (tilts his head up) does the message display.

The titanium-framed glasses headset was comfortable and very light. I had to take off my prescription lenses to wear the Google Glasses, but Google designer Isabelle Olsson (a former eyewear designer) says the company is working with glasses manufacturers to serve glasses-wearing users.

Continue reading: "I try the Google glasses. Sort of"

Want now! When can I get mine?
Not anytime soon. The Google Glass Explorer Edition is only available to developers as a preorder for U.S.-based I/O attendees for $1,500, and they won't receive them until early 2013.

When will the Android app be available to use with my Google Nexus 7 tablet?
Pay attention. These are not available for consumers yet and probably won't be for some time. For now, we'll all just have to wait.

(courtesy:cnet.com)

Judge orders halt to Samsung sales of Galaxy tab

A judge late Tuesday ordered Samsung Electronics Co. to halt sales of itsGalaxy 10.1 tablet computer while the court considers Apple's claim the South Korean tech giant illegally copied the design of the popular iPad.

U.S. District Judge Lucy Koh said Apple Inc.'s lawsuit appeared likely to prevail.

"Apple has established a strong case on the merits," Koh said.

Koh had earlier said the two products are "virtually indistinguishable," but she declined in December to take the dramatic step of prohibiting sales of the Galaxy 10.1. She changed her mind after the U.S. Court of Appeals for the Federal Circuit told Koh to take another look at Apple's request for an injunction, ruling June 19 that it appeared the Cupertino-based company had a strong case. The Washington, D.C., court handles most patent appeals.

"Although Samsung has a right to compete, it does not have a right to compete unfairly, by flooding the market with infringing products," Koh wrote in her Tuesday order. She said Apple would be "irreparably harmed" if sales of the Galaxy 10.1 continued.

Samsung said it was disappointed with the court's decision.

"We will take necessary legal steps and do not expect the ruling to have a significant impact on our business operations, as we possess a diverse range of Galaxy Tab products," it said in a statement.

Koh ordered Apple to post a $2.6 million bond in case it ultimately loses the case.

The ruling is a small part of a much larger patent battle between the two tech giants, who are scheduled to go to trial next month in San Jose.

Apple filed its lawsuit last year, and the two companies are enmeshed in patent disputes around the globe revolving around smartphones and handheld computers. Samsung, with its Android-powered products, has emerged as one of Apple's chief rivals.

Apple also accuses the South Korean company of infringing patents related to the iPhone. Apple is seeking a similar injunction barring Samsung from selling one of its smartphones in the United States.

(courtesy:news.yahoo.com)

Lawyer: Jerry Sandusky insists he's not guilty

As Jerry Sandusky insisted through a lawyer Monday that he is not guilty of sexually abusing children, a juror who voted to convict the retired Penn State assistant coach said she hoped the verdict would help his accusers heal.

The jury found the testimony of the eight victims who took the witness stand compelling, Ann Van Kuren said Monday. Jurors weighed the accounts and evidence diligently before finding Sandusky guilty last week of 45 counts for sexually abusing 10 boys over 15 years, she said.

She expressed empathy for the eight men who offered emotional and explicit testimony.

"I really feel for the victims and any other victims that are out there that haven't come forward," Van Kuren said. "That all of them need to heal. I'm hoping that this trial, with this verdict, will help them heal."

The sweeping case rocked the Penn State community following Sandusky's arrest in November. The ensuing scandal led to the ousters of Sandusky's former boss — Hall of Fame coach Joe Paterno — and the university's president, while forcing a re-examination of the role that college administrators played in reporting abuse allegations.

Sandusky, 68, is under observation at the Centre County jail, where he is being kept away from other inmates pending a psychological review that will help determine the next step toward his sentencing in about three months.

"He's defiant and wants the truth to be told. He wants people to know that he's not guilty," said defense lawyer Karl Rominger, who visited his incarcerated client Monday.

Also Monday, Judge John Cleland ordered county probation officers to evaluate whether Sandusky is a sexual predator, a finding that could factor into his prison placement. Such orders are pro forma in sex abuse cases. Sex offenders are required to undergo treatment while in prison, so Sandusky, if deemed a predator, would likely be sent to a facility with such a program.

Sandusky, who has been placed under a suicide watch, said he doesn't want to kill himself and wants to get the separate psychological examination done so that he can receive visits from his friends and family, Rominger said.

"He's fine but he's just not been evaluated," the lawyer said.

"He is very disappointed to be in prison. He is anxious to get out of this suicide watch," Rominger said, adding that Sandusky told him: "If I have to keep sitting in this room for another three or four days without being able to talk to anybody, I might start to need help at that point."

The state investigation into Sandusky didn't begin until after the ex-coach was barred from a high school in 2009, when a mother complained about the former coach. At the time, Gov. Tom Corbettwas the state attorney general. Charges were filed in November 2011.

Investigators took into account Sandusky's status as a celebrated assistant coach in building the case, Corbett said Monday when asked in Harrisburg why charges weren't filed after the first accuser came forward.

"If it's one-on-one and now put the celebrity status in, put (that) Jerry Sandusky is loved by everybody ... how can anybody say there must be something wrong," Corbett said. "You'd better corroborate it, and that's what they started doing. They started pulling strings and gathering and gathering and gathering, and that's my experience. You build those cases, as well as you can."

Corbett said that while he worried that Sandusky might find a new victim while the investigation continued, "I believed (Sandusky) had to know we were looking at him at some point in time. In a sense, if you know that they're looking at you, you kind of back away. But it was a calculated risk, not one that you really easily want to take."

Sandusky has repeatedly maintained his innocence. He will likely die in prison, given mandatory minimum sentencing requirements.

The conviction is just the start of possibly years of legal proceedings over the case. Besides appeals, there remains an active investigation into Sandusky by the state attorney general's office, as well as a federal investigation.

Corbett said Penn State trustees are still awaiting the results of an internal investigation by former FBI director Louis Freeh into the school's handling of the Sandusky case.

The university could also face a wave of new lawsuits. An hour after the verdict Friday night, Penn State said in a statement it was inviting victims to "participate in a program to facilitate the resolution of claims against the university arising out of Mr. Sandusky's conduct." The school said it sought to address victims' concerns privately, expeditiously and fairly.

Asked to clarify Monday, school spokesman Dave LaTorre said the university won't discuss details about litigation or how much money might be set aside for potential settlements, and declined to comment further.

The verdict was another hurdle for a fractured Penn State community eager to continue what figures to be a long, arduous healing process. Artist Michael Pilato hoped to aid in that effort Monday when he painted a blue ribbon — a symbol for awareness of child sexual abuse — on the portion of his "Inspiration State College" mural downtown that once included Sandusky.

Over the weekend, he replaced the Sandusky image with Van Kuren's red handprint and a depiction of Dora McQuaid, a poet and advocate for domestic and sexual violence victims and issues. McQuaid is a Penn State graduate and former professor.

Van Kuren said she and Pilato were connected over the weekend through a mutual acquaintance.

"These young people that were the victims of the Sandusky case in my mind are the survivors," Pilato said. He painted the blue ribbon around McQuaid's image.

Van Kuren, who runs a nonprofit dance company, called the last few weeks difficult as she and other jurors were ordered to refrain from watching or reading the news and talking about the case with family and friends.

Jurors, she said, took a systematic approach in deliberations, weighing the counts in order as laid out in the state's presentment. Van Kuren said that in instances when jurors had additional questions for the judge — such as when the jury requested a re-reading of key prosecution witness Mike McQueary's testimony of a 2001 allegation between Sandusky and a child in a shower — they put counts related to that victim aside and moved to the next set of charges.

Asked about her perception now of Sandusky, Van Kuren said "I think we all felt that when we saw him, and even now what we hear about him, (that) he knows what he did."

The jury had a good rapport, but the difficult part about deliberations, she said, was the volume of testimony and evidence that had to be weighed. The jurors were respectful of the situations of "all parties" and took everything into consideration, she added.'

(courtesy:news.yahoo.com)

AT&T's Samsung Galaxy S2 gets its Android 4.0 update tomorrow

Starting tomorrow, the Samsung Galaxy S III won't be the only member of its family to use Google's Android 4.0 operating system on AT&T. The network will begin to roll out Ice Cream Sandwich updates to the Samsung Galaxy S II as well.

Unfortunately for AT&T customers, making the leap from Gingerbread to ICS will take a little more legwork than a simple over-the-air bump. You'll have to first visit Samsung's Web site from your computer, then download the Samsung Kies Upgrade Program to your desktop or laptop.

It seems a bizarre and cumbersome requirement compared to updating over data or Wi-Fi. It'll work on Windows (Windows XP, Vista, & 7) and Mac computers (OSX 10.5 to 10.7.)

For now, the update applies only to the Galaxy S II, not to the Samsung Galaxy S II Skyrocket.

(courtesy:cnet.com)

Verizon Wireless works FCC angle in T-Mobile deal

T-Mobile's coverage in North America

(Credit: T-Mobile via ZDNet)

Verizon has announced a deal to swap Advanced Wireless Services spectrum with T-Mobile in a move that could bolster the latter's network and plans to roll out next-gen services. But Verizon isn't just being altruistic. The wireless giant needs the Federal Communications Commission to approve its own spectrum buying binge.

In a statement, Verizon Wireless and T-Mobile said they will swap spectrum in certain markets. The catch? The spectrum T-Mobile would get is dependent on Verizon's transactions with SpectrumCo (a cable consortium), Cox and Leap. If Verizon closes its $3.6 billion deal --announced late last year -- T-Mobile gets spectrum. Verizon has criticized the FCC's review of its SpectrumCo deal.

Given that the FCC wants a healthy T-Mobile since it scuttled the carrier's merger plans with AT&T in the name of competition, the Verizon proposal seems like a fair trade.

Terms of the deal weren't disclosed, but T-Mobile will give cash to Verizon amid the spectrum swap. Analysts said Verizon will swap AWS holdings in 218 markets in the U.S. T-Mobile will acquire 60 million POPs from Verizon in exchange for 22 million POPs and cash.

Analysts said the Verizon deal with T-Mobile is all about the regulators. Wells Fargo analyst Jennifer Fritzsche said:

This is a proactive move by Verizon to improve its position with regulators that are reviewing the SpectrumCo acquisition by helping T-Mobile acquire needed spectrum and likely reducing its pro forma AWS holdings in cities where it would have the highest concentration in the band. This is a positive transaction for both Verizon and T-Mobile, in our opinion, and should bolster the chances of the SpectrumCo transaction being approved.

Stifel Nicolaus analyst Christopher King said:

Our sense is the deal would address or largely address the FCC's spectrum concentration concerns resulting from Verizon's planned purchase of cable AWS (advanced wireless service) spectrum. T-Mobile has been one of the most vociferous critics of the Verizon-cable spectrum transfer, arguing that Verizon should be forced to divest significant chunks of spectrum to alleviate concerns about its post-transaction spectrum holdings.

(courtesy:cnet.com) 

Yahoo's Levinsohn hopes to prove himself with ad plan, report says

Yahoo interim CEO Ross Levinsohn

(Credit: Dan Farber)

Yahoo's interim CEO Ross Levinsohn has some ideas on how he's going to improve his company's standing in the advertising space, according to a new report.

The Wall Street Journal is reporting today, citing sources, that Levinsohn has decided to refocus Yahoo's business on Web ads. In order to achieve his goal, he wants to generate more content and cling to major events like the Super Bowl and Oscars to attract advertisers. One source told the Journal that Levinsohn believes his chances of keeping the reins at Yahoo will rely upon his ability to keep ad agencies interested in dropping cash into the company.

Levinsohn took over as interim CEO last month when Yahoo fired former CEO Scott Thompson over false claims made in his resume that he had obtained a computer science degree. The company made it clear in a statement at the time that it would look for a permanent replacement.

However, the Journal's sources say Levinsohn is doing everything he can to hold on to the job, and was displeased with the Yahoo board when he wasn't seriously considered to replace Thompson's predecessor Carol Bartz when she left last year. To further improve his chances of succeeding, he plans to maintain the company's restructuring efforts and shut down some underperforming properties.

As part of his advertising plans, Levinsohn last week hired former Admeld chief executive Michael Barrett. Yahoo hasn't said what Barrett will focus on when he starts in July, but All Things Digital reported at the time, citing sources, that he will focus entirely on digital ad sales, seeming to lend some credibility to the Journal's claims.

Whatever it is, Yahoo needs something to jumpstart its business. During the first quarter of 2012, the company posted revenue of $1.077 billion, representing just a 1 percent increase over the same period last year. That relatively flat revenue figure resulted from a 4 percent decrease in display advertising revenue and an 8 percent increase in search revenue.

But turning Yahoo around anytime soon seems daunting, to say the least. Last month, News Corp. digital media chief Jon Miller said as much, telling CNET in an interview at the PaidContent 2012 conference in New York that there is no magic bullet for success.

"If you are trying to do a turnaround, there are not that many answers to the puzzle," he said. "You need big answers and there are not that many big answers at any given moment in time."

Still, Miller, who was once a partner with Levinsohn at Velocity Investment Group, thinks the interim CEO is the right person to help Yahoo out of its malaise.

"I would bet that Ross Levinsohn will be the CEO of Yahoo," he said. "Ross is as good a person as exists on the planet [to run Yahoo]."

(courtesy:cnet.com)