Shelly Palmer

2008 05-05 MediaBytes: MILEY CYRUS – MICROSOFT – YAHOO – DEUTSCHE TELEKOM – SPRINT – IRON MAN – AMAZON

                  

If you are having trouble viewing our video player, check out MediaBytes on YouTube.

Disney mega-star Miley Cyrus gets racy for Annie Lebowitz and Vanity Fair, or does she? Check out my commentary on the Shelly Palmer blog.

MICROSOFT walked away from its bid to acquire YAHOO. Not willing to go hostile, the software giant will now be forced to rethink how it plans to expand it’s presence online. With money to burn and only a few key online properties big enough to affect Microsoft’s web presence, expect to hear rumors about Microsoft talking with FACEBOOK, TIME WARNER’s AOL and NEWS CORP’s MYSPACE. However, don’t be surprised if Microsoft makes another attempt at acquiring Yahoo a few months down the road.

DEUTSCHE TELEKOM is considering a bid for SPRINT. If the German telco strikes a deal, it could merge Sprint Nextel, the No. 3 mobile provider in the US, with its T-Mobile service, the No.4 provider, giving the joint venture more subscribers than both AT&T and VERIZON. Deutsche Telekom, which could take advantage of a booming Euro and a struggling US dollar, has invested heavily in new wireless spectrum and is eager to expand its operations in the US. However, one problem that could hinder the deal is that T-Mobile USA utilizes a different wireless platform than Sprint Nextel, which would both complicate network integration and increase costs.

IRON MAN not only topped the box office this weekend, but scored the second highest non-sequel opening in movie history. The film officially took in $100.7 million, far exceeding expectations of between $70-$80 million. Downey Jr.’s Tony Stark character will also be featured in PARAMOUNT’s production of The Incredible Hulk, scheduled to hit theaters on June 13th.

AMAZON is suing NY State over a new tax law that requires out-of-state online retailers to collect NY state sales tax from customers. Amazon is challenging the constitutionality of the law, as the company has no physical presence or employees based in New York. The outcome of this lawsuit could either secure the rights of online retailers to sell merchandise without state sales tax, or change the name of the game by forcing retailers to charge state sales tax as it applies.