YAHOO!, SABRE RENEW ONLINE AGREEMENT
Yahoo! Inc. renewed an agreement Tuesday with Sabre Holding Corp.'s Travelocity online reservation service. Terms of the multiyear agreement weren't disclosed. Travelocity is Yahoo's sole booking service for air travel, rental cars and hotel, the companies said in a statement." This agreement represents a significant commitment of two industry leaders working together to provide increased value to customers and the travel industry," said Terry Semel, chairman and chief executive officer of Yahoo. According to PhoCusWright, online travel sales are predicted to reach $34 billion in 2003, representing 154 percent of the total travel market. Yahoo's contract with Southlake, Texas-based Sabre was set to expire in December. Travelocity.com provides Internet and wireless reservation information for more than 700 airlines, more than 55,000 hotels and more than 50 car rental companies.
FIORINA: HP COST-CUTTING AHEAD OF SCHEDULE
Chairwoman Carly Fiorina told stock analysts Tuesday in Boston that the new Hewlett-Packard Co. is ahead of schedule on cutting its work force and cutting costs in the wake of its acquisition of Compaq Computer Corp. Fiorina said HP expects to reduce its work force by 10,000 by Nov. 1, the beginning of its 2003 fiscal year. The two companies had a combined work force of 150,000 when the merger took effect May 7, HP expects the remaining 5,000 work-force reductions to be achieved in 2003. She also told analysts that $2.5 billion in cost cutting will be achieved in 2003, a year earlier than expected, and the company will be able to cut costs by $3 billion in 2004.
MICROSOFT, SEC SETTLE DIFFERENCES
The Securities and Exchange Commission has settled its case against Microsoft Corp. Under a settlement, Microsoft has agreed to refrain from accounting violations to settle federal regulators' allegations that it misrepresented its financial performance. The Redmond, Wash.-based software company neither admitted to nor denied wrongdoing. No fine was imposed. The SEC alleged that Microsoft's accounting practices from July 1994 through June 1998 caused its income to be substantially misstated. In a statement, Microsoft said the settlement has no effect on its financial results. "Microsoft has cooperated fully in the SEC's inquiry," the company said. "The company is pleased to have resolved these matters with the SEC and looks forward to an open and constructive working relationship with the SEC on important accounting issues affecting the software industry."
NAPSTER FILES FOR CHAPTER 11
Napster Inc. has filed for Chapter 11 bankruptcy, seeking court protection from its creditors under a plan by Bertelsmann AG to take over the company. The Redwood City, Calif.-based company has agreed to sell its assets to Bertelsmann for $8 million in cash and the assumption of certain liabilities. The liabilities include any new loans to Napster and forgiveness of the $91 million Bertelsmann loaned Napster before the filing. According to papers filed in a Wilmington, Del., court, Napster had about $7.9 million in assets and about $101 million in liabilities as of April 30.
USA OFFERS $4.5B FOR EXPEDIA, HOTEL, TICKETMASTER
USA Interactive is offering $4.5 billion to seize total control of Expedia Inc., Hotels.com and Ticketmaster. Based on Friday's closing prices, USA Interactive's officer for Expedia shareholders is $76.86 per share; Hotel.com shareholders would receive $51.48 per share, and Ticketmaster shareholders would receive $22.90 per share. The deals would "enhance our collective ability to pursue a coordinated strategy for all of USA's business with the interest of all those businesses aligned," the company said in a statement. As of Dec. 31, USA Interactive owned 67.6 percent of Ticketmaster, 64.6 percent of Expedia, and 68.3 percent of Hotel.com. The New York-based company, which had 2001 revenue of $5.28 billion, owns the Home Shopping Network.
SOFTBANK CUTS STAKE IN CNET
Japanese Internet investor Software Corp. recently sold 7 million common shares of CNET Networks Inc., according to a filing Monday with the Securities and Exchange Commission. The sale cuts Softbank's stake in the online technology content site to 5.5 percent from 10.6 percent. Softbank sold the shares on May 30 to Goldman Sachs & Co. After the sale, Softbank held about 7.7 million shares in CNET, down from a previous 14.7 million shares. Based in San Francisco, CNET shares were once trading as high as $79 in late 1999. At the start of trading Tuesday, CNET shares were trading close to $3.
SBC, YAHOO LAUNCH INTERNET SERVICE
SBC Communications Inc. and Yahoo! Inc. have joined forces to launch co-branded dial-up Internet access services and announced plans to launch combined high-speed access services in the summer. The dial-up service, which is branded SBC Yahoo! Dial, will run on SBC's network and include Yahoo content including finance, music and calendaring, the companies said. The combination will cost $21.95 for unlimited access or $15.95 for customers who have to buy an additional phone line, the companies said in a statement. The companies said they also plan to launch co-branded high-speed Internet services on Digital Subscriber Line (DSL) or broadband technology in 13 of SBC's operating states later this summer.
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