If you are having trouble viewing our video player, check out MediaBytes on YouTube.
MICROSOFT increased it’s bid for YAHOO from $31 to $32 and change. Yahoo still wants $37 a share, however, with the price within $4, it is likely a deal could come sometime soon. With progress being made, sources say a hostile takeover is unlikely. Microsoft is expected to make a decision as to the fate of the deal by the end of the week.
CABLEVISION plans to bid $650 million for NEWSDAY. Cablevision’s bid, which is not a joint venture with the OBSERVER MEDIA GROUP, trumps those made by NEWS CORP and THE DAILY NEWS and is considered more likely to pass the FCC‘s new media ownership laws than the previous bids. Investors are skeptical as there seems to be no strategy behind Cablevision’s bid for the newspaper. However, if Cablevision’s bid is accepted, it could open doors for cable and newspaper packages for consumers and combined print and TV buys for advertisers.
AT&T will launch a mobile television service next week using QUALCOMM’s MediaFLO technology. With only about 5% of Americans willing to pay for mobile TV, it’s unclear whether or not this is an innovative service, or merely an attempt at keeping up with the competition.
The ALLIANCE of MOTION PICTURE and TELEVISION PRODUCERS announced that a deal with the SCREEN ACTORS GUILD is unlikely to come before negotiations end Friday. SAG’s contract with the AMPTP runs out June 30th and could cause major financial turmoil in Hollywood, which is still recovering from the WGA strike. If SAG goes on strike, nearly all production would halt, except for game shows, reality shows and news docs.
APPLE will announce that it has reached a deal with Hollywood studios to offer day-and-date digital video downloads. The deal, which involves FOX, WALT DISNEY STUDIOS, WARNER BROS., PARAMOUNT, UNIVERSAL, SONY PICTURES and NEW LINE, comes 4 months after Apple’s foray into digital movie rentals. The move is expected to hurt brick-and-mortar retailers like WALMART and BEST BUY, who have long relied on day-and-date DVD sales as a key source of revenue.