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December 23, 2009 8:00 AM PST

2009 sales of Netbooks rise, but notebooks fall

by Lance Whitney
  • 30 comments

It's been a hot year for Netbooks, but not so much for the rest of the portable PC market.

Netbook sales are likely to hit $11.4 billion this year, a 72 percent rise from last year, thanks to a 103 percent leap in shipments, according to a new report from DisplaySearch. But notebook revenue overall will be down around 7 percent from last year.

The latest DisplaySearch Quarterly Notebook PC Shipment and Forecast Report, released Tuesday, found that the surge in Netbook (mini-notebook) sales was not enough to offset declines for ultra-portables and larger laptops. Aside from Netbooks, annual revenue will likely be down in every portable PC category.

Though notebook shipments are expected to grow 5 percent for the year, average selling prices (ASPs) will show a 20 percent drop as vendors have slashed prices throughout the year, DisplaySearch has forecasted . Average prices for Netbooks and 13-inch to 16-inch notebooks will probably be down 15 percent for the year, a significant cut as these two categories make up 85 percent of the overall notebook market.

(Credit: DisplaySearch)

For 2010, notebook shipments will rise by 16 percent, predicts DisplaySearch, thanks to better than average gains in Netbooks and ultra-portables. The CULV (Consumer Ultra-Low Voltage) market will drive growth with an array of new 11.6-inch and 12-inch portables sporting prices under $500. However, sales next year will likely be flat or down for most portable segments, except desktop replacement, which should enjoy growth of 21 percent over 2009.

The popularity of Netbooks may start to fade next year, DisplaySearch said. Shipments could rise 20 percent, but sales will flatten, and then drop in 2011 as prices come down and performance goes up for ultra-portables and larger notebooks.

(Credit: DisplaySearch)

"Our long-term outlook is that the mini-note share of the notebook PC market has stabilized, and will remain at approximately 20 percent through 2011 before starting to erode," said John F. Jacobs, DisplaySearch director of Notebook Market Research, in a statement. "While mini-notes offer lower ASPs and are thinner and lighter than notebook PCs, the performance of larger notebook PCs continues to improve while prices continue to steadily decline, increasing the performance gap while narrowing the price gap."

Originally posted at Crave
Lance Whitney wears a few different technology hats--journalist, Web developer, and software trainer. He's a contributing editor for Microsoft TechNet Magazine and writes for other computer publications and Web sites. You can follow Lance on Twitter at @lancewhit. Lance is a member of the CNET Blog Network, and he is not an employee of CNET.
December 18, 2009 11:00 AM PST

Week in review: A matter of antitrust

by Steven Musil
  • 2 comments
Microsoft's Browser Choice Screen

Microsoft's Browser Choice Screen

(Credit: Microsoft)

Microsoft and Intel this week are finding themselves on opposite sides of antitrust favor, while Facebook may find itself in the crosshairs.

Microsoft and the European Commission have settled their differences over the choice of Web browsers in Windows. As part of the settlement, Windows PCs sold in the European Economic Area will now present users with a Choice Screen, allowing them to install alternative browsers beyond Internet Explorer.

The Choice Screen will offer users the ability to install up to 12 of the most widely used Web browsers that run under Windows. The choices will include the more widely known browsers, such as IE, Apple's Safari, Google's Chrome, Mozilla's Firefox, Opera, and AOL's browser, and lesser-known products including Maxthon, K-Meleon, Flock, Avant Browser, Sleipnir, and Slim Browser.

Microsoft initially proposed stripping a browser out of Windows 7 entirely, a move first reported by CNET. Both competitors and the EU balked at that idea though, instead favoring some sort of ballot screen. Microsoft eventually relented, though the company and its rivals have gone back and forth for a while over the details.
•  Microsoft top lawyer: EU deal opens new chapter

FTC sues Intel over 'anticompetitive tactics'

The agency says Intel has robbed consumers of both choice and innovation in microprocessors, "running roughshod over the principles of fair play."
•  FTC wants Intel to mend its ways
•  Graphics chips a new legal front for Intel
•  Nvidia CEO: FTC action 'transforms' industry

FTC may enter latest Facebook privacy debacle

Scattered griping about the social network's new privacy policies could turn into a firestorm, as EPIC complains about the decision to push more member content public.
•  FTC's new strategy: Kick 'em when they're down

More headlines

Microsoft: We did copy Plurk's code

The software maker says that an investigation shows that the Juku microblogging application on MSN China did swipe code from a rival.
•  Plurk holding Microsoft's feet to code-copying fire
•  Start-up claims Microsoft China took its code
•  Microsoft investigating charges it stole rival's code
•  Microsoft pulls China blog site amid code-theft charges

787 Dreamliner takes to the sky

After two years of delays, Boeing's new plane finally got off the ground Tuesday. Its first flight was witnessed by thousands of company employees and excited fans.

Google phone looks 'supersharp'

After Google distributes its Android phone to employees to test, CNET gets a look. The slick-looking unlocked HTC "mobile lab" device runs the Android 2.1 operating system.
•  Inside the Google phone: A 'snappy' chip

Facebook sues men for allegedly phishing, spamming

Facebook's latest lawsuit accuses three men of getting access to Facebook user accounts by phishing and then sending spam from their accounts.
•  Facebook's audience is diverse--carve it up, advertisers
•  How to hide your Facebook friends list
•  Russian firm DST on a roll, upping stake in Facebook?
•  Facebook helps reunite woman with her rescuers
•  Forgot your anniversary? Facebook's got it covered

Firefox, Adobe top buggiest software list

Open-source Firefox reports all holes, putting it at the top of the list for bug reports, while Adobe replaces Microsoft in the second spot, reports find.
•  Adobe to patch zero-day Reader, Acrobat hole
•  Firefox 3.6 beta released

Study: The road ahead for electric cars

Decisions made in 2010 will play a crucial role in shaping how consumers and the auto industry adopt all-electric and hybrid vehicles.
•  Struggling Saab finds partner on electric vehicles
•  Yet another hybrid supercar
•  Plugless power is coming

Also of note
•  Biden to unveil $2 billion in broadband grants
•  Windows 7 leaving Redmond's help desk less busy
•  PC shipments turn positive in third quarter

December 17, 2009 9:24 AM PST

PC shipments turn positive in third quarter

by Lance Whitney
  • 10 comments

PC shipments are the latest tech sector showing signs of life.

For the third quarter, worldwide computer shipments rose 2.3 percent from the same quarter a year ago, their first gain after three consecutive quarters of declines, according to IDC's latest Worldwide Quarterly PC Tracker report released on Thursday.

Hot back-to-school demand boosted overall shipments. Portable PCs enjoyed a 33.5 increase from a year ago, but desktops continued their descent reflecting the consumer drive to mobile computers.

The decline in commercial PCs also began to slow in the third quarter, indicating to IDC that IT spending should gradually revive over the next few quarters, with a solid rebound expected in the second half of 2010.

Thanks to the latest results, PC shipments are expected to show gains of 1.3 percent for 2009, rising to 10.3 percent next year. The total number of shipments is likely to hit 291.4 million units this year and 321.4 million next year, up from 287.6 million in 2008.

(Credit: IDC)

Much of the growth will come from emerging regions, which now account for half of the market. Portables should enjoy an 18.1 percent gain in shipments in 2010, but desktop shipments are likely to be flat. Netbooks will grow, but at a slower pace, due to the appeal of new ultra-thin portables. Overall, IDC forecasts double-digit gains in PC shipments each year to 2013, when the number of units could reach as high as 444.4 million.

"Once again, the PC market shows its resiliency," said Loren Loverde, program director of IDC Worldwide Trackers, in a statement. "The speed of market stabilization and growth in key segments reflect the essential role of personal computing today. Technology evolution and falling prices remain a compelling combination. As commercial spending recovers in 2010, we expect to see robust growth over the next several years."

Originally posted at Crave
Lance Whitney wears a few different technology hats--journalist, Web developer, and software trainer. He's a contributing editor for Microsoft TechNet Magazine and writes for other computer publications and Web sites. You can follow Lance on Twitter at @lancewhit. Lance is a member of the CNET Blog Network, and he is not an employee of CNET.
December 14, 2009 8:41 AM PST

Oracle pledges to play well with MySQL

by Lance Whitney
  • 13 comments

The chill between Oracle and the European Commission may finally be thawing.

European antitrust regulators have been playing a wary bouncer to Oracle's planned takeover of Sun Microsystems, and they've been especially attentive to the software maker's intentions regarding Sun's MySQL operations. In November, their concerns about the future of the open-source MySQL database software led to a formal thumbs-down to the acquisition.

But recent discussions between Oracle and the EC have apparently been fruitful, as Oracle on Monday pledged 10 "commitments to customers, developers and users of MySQL."

Among other things, the company pledged to spend more cash than Sun did on MySQL development and to set up advisory boards to include MySQL customers. Oracle also said it would not require paid support to get a commercial MySQL license and that it would offer flexible support contracts to customers.

in addition, it addressed licensing and copyright issues relevant to third-party developers of MySQL storage engines, promising to maintain the openness and flexibility of MySQL's Pluggable Storage Engine Architecture and not require commercial licenses to use the storage engine APIs.

In response, the European Commission on Monday issued a statement suggesting that it's warming up to the idea of a Sun-Oracle combination.

"Today's announcement by Oracle of a series of undertakings to customers, developers and users of MySQL is an important new element to be taken into account in the ongoing proceedings," said the EC in its statement. "In particular, Oracle's binding contractual undertakings to storage engine vendors regarding copyright non-assertion and the extension over a period of up to 5 years of the terms and conditions of existing commercial licenses are significant new facts."

EC Competition Commissioner Neelie Kroes expressed optimism for a satisfactory outcome, one that won't hurt the competition in the European database market.

But according to the Reuters news agency, critics of Oracle aren't impressed with Oracle's latest promises.

"This is purely cosmetic, totally ineffectual. Neither storage engine vendors nor 'forkers'--developers of derived versions--nor enterprise users would have a basis on which to invest in MySQL-related innovation," said Florian Mueller, a spokesman for MySQL co-founder Michael "Monty" Widenius, who has been one of the loudest voices in opposition to the deal.

Fearing that Oracle will try to weaken MySQL to strengthen its own database products, Widenius has been intent on drumming up support among the faithful, asking them to urge the EC to stop the merger for good.

The battle for Sun began in April when Oracle's $7.4 billion bid won over Sun's board. Subsequent approval by shareholders and the U.S. Justice Department seemed to solidify the deal.

Summarized below, Oracle's 10 commitments outline how the company intends to keep MySQL alive as a competitive database product.

  1. Continued Availability of Storage Engine APIs. Oracle promises to maintain and enhance MySQL's Pluggable Storage Engine Architecture, which gives users the ability to select from a variety of different storage engines that can plug into a MySQL database server.
  2. Non-assertion. As copyright holder, Oracle will change Sun's current policy and will not assert against anyone that a third-party vendor's implementations of a storage engine must be released under the GPL (GNU General Public License) because they used the APIs that are part of the Pluggable Storage Engine Architecture. Further, Oracle will not require a commercial license from third-party storage engine vendors to implement the Pluggable Storage Engine Architecture's APIs.
  3. License commitment. When current MySQL OEM agreements with storage vendors end, Oracle will offer an extension up to December 10, 2014, with the same terms and conditions.
  4. Commitment to enhance MySQL in the future under the GPL. Oracle promises to enhance MySQL, including version 6, under the GPL. Oracle won't update MySQL Enterprise Edition without also updating MySQL Community Edition and will make the source code of Community Edition available to the public at no charge.
  5. Support not mandatory. Customers won't be required to buy support services from Oracle to get a commercial license for MySQL.
  6. Increase spending on MySQL research and development. Oracle promises to spend more money than Sun did to continue to further develop MySQL, both the commercial and GPL editions.
  7. MySQL Customer Advisory Board. No later than six months after the anniversary of the closing, Oracle will create a customer advisory board to offer guidance and feedback on MySQL development. The board will include end users and embedded customers.
  8. MySQL Storage Engine Vendor Advisory Board. No later than six months after the anniversary of the closing, Oracle will create and fund a storage engine vendor advisory board for guidance on issues important to MySQL storage engine vendors.
  9. MySQL Reference Manual. Oracle will continue to update and provide a free download to a MySQL Reference Manual similar to the one currently available from Sun.
  10. Preserve Customer Choice for Support. Oracle will make sure that end-user and embedded customers paying for MySQL support can renew that support each year or every few years, depending on the customer's preference.
December 11, 2009 11:00 AM PST

Week in review: Getting real with Google, Yahoo

by Steven Musil
  • 2 comments

Google fellow Amit Singhal explains Google's strategy on how to present real-time search results.

(Credit: Stephen Shankland/CNET)

Google's deal with Twitter is paying off.

Google announced the fruits of its earlier deal with the microblogging site, showing off how it has decided to present real-time Internet content within search results.

Google will build a section called "latest results" into the regular Google search results page that automatically refreshes Internet content from sources like Twitter. A demonstration showed off how a search for "Obama" would bring up tweets, Web pages, and other Internet content related to the president as it was generated. At the Web 2.0 conference in October, Google struck a deal with Twitter to get access to the service's "firehose" of tweets.
•  Google hopes to turn the river into a canal

Days after Google announced its plan for integrating content from sources such as Twitter and blogs, Yahoo launched its own feature to integrate tweets into search results. Microsoft already displays Twitter results for queries placed on its Bing search engine, although they are displayed on a separate page that is not directly integrated into the main search results.

More headlines

For AOL and Yahoo, it's deja vu all over again

With AOL's spin-off from Time Warner becoming official, the once-iconic media company finds itself face to face with old foe Yahoo as both try to resurrect media empires.
•  AOL's first day: We want to believe

Google's glad to dance to Vevo's tune

The Web titan's role in helping to build Vevo, the long-awaited music-video service, is yet another peace offering to the content industry.
•  Vevo CEO confirms it's all about business
•  Bono, Lady Gaga, Schmidt at Vevo bash (photos)

Intel shifts focus to laptop graphics technology

After scrapping the initial Larrabee processor, the chip giant will focus on graphics technology for laptops.
•  Ghosts of projects past haunt Intel graphics chip

Facebook details new privacy settings

All Facebook users will soon be required to configure their privacy settings, though the company encourages people to keep some information public.
•  Facebook's new privacy system: Pros and cons
•  How to fix Facebook's new privacy settings
•  Study: Facebook users willingly give out data
•  Facebook forms safety advisory board
•  Facebook in Vietnam: Social-networking blues

Apple confirms acquisition of music site Lala

Apple acknowledges that it has purchased the struggling streaming service but declined to comment on reports that Lala was bought for very little money.
•  Did Apple pay $80 million or $17 million for Lala?

AT&T considers incentives to curb heavy data usage

Wireless chief Ralph de la Vega says AT&T may consider alternatives to curb heavy wireless data usage.

CrunchPad reborn as JooJoo

Chandra Rathakrishnan, the chief executive of former TechCrunch partner Fusion Garage, reveals plans to proceed with release of new Web-browsing tablet.
•  Hands-on with the JooJoo
•  JooJoo first look (photos)
•  TechCrunch files suit over CrunchPad

Virgin Galactic unveils rocket plane thrill ride

Richard Branson's Virgin Galactic finally unveils SpaceShipTwo, a commercial rocket plane designed to launch space tourists on the ultimate thrill ride--a suborbital flight into space.
•  Virgin Galactic unveils sub-orbital spacecraft (photos)

Also of note
•  Google debuts news story experiment
•  With draft standard, 3D Web closer to reality
•  Seagate enters solid-state drive market

December 10, 2009 7:48 AM PST

Microsoft to buy Sentillion for health care software

by Lance Whitney
  • 20 comments

Microsoft is adding another player to its portfolio of health care offerings.

The software powerhouse said Thursday that it plans to buy Sentillion, a privately held company that supplies software to health care professionals. Microsoft hopes to combine Sentillion's technologies with its own Amalga Unified Intelligence System (UIS). The goal is to offer integrated technology that can help health care providers more easily access patient data from across multiple sources.

As doctors and hospitals ramp up to make better use of e-health technology, they face a confusing array of tools and systems that could make their jobs more difficult. Through the Sentillion acquisition, Microsoft said it wants to streamline access to different IT systems for health care providers, reducing the amount of time they spend struggling with the technology.

"Microsoft and Sentillion share a vision of a connected health system in which the free and rapid flow of information, coupled with streamlined access to a hospital's myriad health care applications, empowers doctors and nurses to perform their roles with greater insight, speed and effectiveness," said Peter Neupert, corporate vice president of Microsoft Health Solutions Group, in a statement.

Sentillion's software is meant to integrate access to a variety of health care applications--Windows-based, Web-based, and older legacy software, said Microsoft. Sentillion counts more than 1,000 hospitals among its customer base.

Microsoft's Amalga UIS also tries to integrate the vast quantity of information available from different databases and health care systems for doctors, nurses, and administrators. Microsoft said that Amalga UIS is now used by more than 115 hospitals, such as New York-Presbyterian Hospital.

Staying at its headquarters in Andover, Mass., Sentillion will continue to supply its own products to both new and existing customers, while Microsoft will focus on combining the health care technologies of both companies.

Microsoft expects the deal to close in early 2010. Financial terms were not disclosed.

Like other tech firms sensing a good opportunity, Microsoft has been aggressive in the health care arena. But as head of the company's health care division, Neupert also has urged the government to proceed cautiously and spend money wisely in its attempt to digitize the health care industry.

Originally posted at Health Tech
Lance Whitney wears a few different technology hats--journalist, Web developer, and software trainer. He's a contributing editor for Microsoft TechNet Magazine and writes for other computer publications and Web sites. You can follow Lance on Twitter at @lancewhit. Lance is a member of the CNET Blog Network, and he is not an employee of CNET.
December 10, 2009 7:11 AM PST

Panasonic takes control of Sanyo

by Lance Whitney
  • Post a comment

A year after first revealing its interest in Sanyo, Panasonic has finally won control of its electronics rival.

Panasonic said Thursday that it has secured a 50.2 percent majority ownership of Sanyo, as it moves to turn Sanyo into a subsidiary and create one of the world's largest electronics makers. To win its slice of Sanyo, Panasonic is paying 403 billion yen ($4.59 billion), or 131 yen per Sanyo share.

The deal gives Panasonic control of such Sanyo products as rechargeable batteries and solar panels, potentially lucrative businesses in light of the world's desire for greener technology. Both firms already enjoy a huge market share selling fuel-efficient batteries to automakers, a segment that's likely to skyrocket with the growing popularity of hybrid cars.

Panasonic is buying more than 3 billion shares from Sanyo's top three investors--Goldman Sachs, Daiwa Securities SMBC, and Sumitomo Mitsui Banking. Collectively--which own a 70 percent slice of Sanyo, purchased in 2006 when Sanyo was forced to issue stock to raise extra cash.

Panasonic revealed its interest in Sanyo in December 2008, when the deal was first valued much higher than the final purchase price. Delayed by regulatory concerns, the takeover offer was finally initiated last month.

Both Panasonic and Sanyo have faced a tough market as the two have had to cut staff and trim expenses to make ends meet. Sanyo has been hit badly, most recently losing 37 billion yen in its April-September quarter.

December 7, 2009 9:28 AM PST

On2 answers questions on Google merger

by Lance Whitney
  • 5 comments

On2 Technologies has filed an update with the SEC on its proposed merger with Google, hoping to put to rest some key questions.

On2, which makes video compression software, announced Monday that the update includes certain key highlights about the merger and some frequently asked questions.

On2 agreed on August 5 to be acquired by Google for $106.5 million, a deal already approved by its board of directors. The terms call for each share of On2 to be exchanged for 60 cents worth of Google common stock.

With its board anxious for investors to approve the deal, On2 outlined some of the risks to itself and to shareholders if the acquisition is prevented. On2's merger-related expenses have already exceeded $2 million, an amount it would be responsible for if the deal is stopped, it said. With cash reserves of only $2.2 million, such a debt could certainly hurt the company.

Without Google's acquisition, On2 said it might have to grab additional financing to run its business, which could include the sale of certain assets, the issuing of debt, or the release of even more shares.

On2 also admitted that it's had trouble hiring and retaining skilled, qualified employees, a challenge that might be resolved if employees knew they'd be working for a Google instead. Otherwise, if the merger does not move forward, On2 believes its revenues would be impacted by its failure to attract or keep good employees.

To address any conflicts of interest, On2 said none of the members of its board would serve as directors, officers, or employees of Google or receive any money from Google in connection with the merger.

On2 also released an FAQ, hoping to address any concerns on the part of shareholders. Since the Google offer, the board has received no other offers or inquiries from other firms about an acquisition, the company said. The FAQ also goes into great detail about On2's board and key executives and their involvement in the merger.

On2's board has set a special meeting for December 18 for shareholders to vote on the deal, and is urging them to approve it. Proxy cards have also been sent out. If the majority of stockholders okay the merger and all other conditions are met, then it should become effective within two days after the meeting, said On2. Google has said it plans to make On2's technology part of its own Web platform.

The merger initially triggered some On2 shareholders to file lawsuits against the company in August, alleging that the deal undervalued On2 and that certain provisions prevented On2's board from considering other offers. But those suits were settled on October 26, though are currently awaiting final approval by the court.

Under terms of a memorandum of understanding in the settlement, On2 agreed to provide additional disclosures in its final proxy statement and prospectus. However, On2 said the settlement implied no wrongdoing on its part, there was no monetary damage, and the company would have released the same information in its proxy statement regardless of the lawsuits.

Originally posted at Digital Media
Lance Whitney wears a few different technology hats--journalist, Web developer, and software trainer. He's a contributing editor for Microsoft TechNet Magazine and writes for other computer publications and Web sites. You can follow Lance on Twitter at @lancewhit. Lance is a member of the CNET Blog Network, and he is not an employee of CNET.
December 4, 2009 11:00 AM PST

Week in review: Old faces in new places

by Steven Musil
  • 1 comment

A cable giant becomes an entertainment star, while a search giant gets into the DNS business and a software titan becomes map maker.

Comcast, the nation's largest cable company, is buying a controlling stake in the TV network and movie studio NBC Universal in a deal valued at $37 billion. The deal will make Comcast a major media player with several very profitable cable channels, including USA, CNBC, MSNBC, and Bravo. It will also have control over NBC's broadcast networks and TV stations, its film studio, and its amusement parks.

The deal is likely to be scrutinized by government regulators, namely the U.S. Department of Justice and the Federal Communications Commission. A marriage between the nation's largest cable and Internet service provider and one of the nation's three broadcast TV stations could ignite old fights over media ownership, a la carte billing, retransmission consent, and cable prices.
•  Can Comcast-NBC play nice with Hulu?

Google wants to unclog Net's DNS plumbing

The Net giant, ever eager for a faster Internet, debuts its Google Public DNS service. With it, Google could become even more central to the Net.

Microsoft Bing Maps Beta adds much richer images

New enhancements for Bing Maps include a Silverlight-powered Web application that brings very detailed satellite and street-level imagery to Bing, along with other tweaks.
• Bing Maps Beta: Cool, but limited
• Google Earth peers into California's eco-future

More headlines

ComScore: So far, online holiday sales are up

Company releases metrics for Cyber Monday and the holiday season to date. And like statistics from other research firms, the numbers are heartening for retailers.
• Study: Cyber Monday sees strong gains
• Cyber Monday bargain hunters out earlier
• Tools for creating holiday-shopping lists
• Study: Sites to bring in billions in holiday donations

In nod to media, Google News policy limited

Google's "First Click Free" policy allowed Google News and search users to discover news articles behind paywalls, but it was easy to abuse. Now, there are limits.

Fake CDC vaccine e-mail leads to malware

AppRiver warns of scammers preying on public interest in the H1N1 vaccine through an e-mail purporting to come from Centers for Disease Control and Prevention.
• Microsoft: November security updates are fine

AT&T gives up on Verizon ad lawsuit

AT&T has dismissed its lawsuit against Verizon Wireless for running advertisements it claimed confused customers about its 3G network.
• Verizon nixes holiday ads to continue AT&T-bashing

Microsoft actively urges IE 6 users to upgrade

A shopping video and eBay promotion are part of Microsoft's effort to give IE 6 users a reason to upgrade. The company also is trying to move corporate customers away.
• Dell brings Chrome OS to its Netbook
• Latest Firefox beta gets file-handling feature

Barnes & Noble Nook to hit stores later than expected

B&N says it will have the e-readers in some stores on December 7, a week later than expected, because the company is prioritizing delivery to customers who preordered.
• Spring Design Nook injunction denied, but battle's still on

Psystar ceases sales of Mac clones

Following a settlement agreement with Apple, Psystar's Mac OS-loaded hardware is no longer available on its site.

Michael Jackson tops Google, Yahoo search in 2009

That No. 1 ranking should come as no surprise. Web traffic surged on word of the singer's death in June--so much that Google initially suspected an attack.

Google hosts energy experts amid climate talks

Next week, the international community plans to discuss climate change and green energy, and U.S. energy experts kicked things off at Google's offices.

Also of note

• Google runs a fade pattern on home page
• Mark Zuckerberg's grand missive: The translation
• Defense Dept. pulls software over privacy issues

December 4, 2009 7:16 AM PST

Cisco works percentages toward Tandberg takeover

by Lance Whitney
  • 1 comment

In its quest to acquire Tandberg, Cisco is close...but no cigar yet.

The network giant has won 89 percent of the outstanding shares of Tandberg, a healthy amount, but still 1 percent short of the 90 percent needed under Norwegian law to close the deal. The company had issued a deadline of December 3 to capture the required shares or it said it would walk away.

But as of Friday, Cisco is giving every indication that it will forge ahead, citing tendered shares that would put it over the 90 percent mark.

Looking to capture the growing videoconferencing market, Cisco has been aggressive in its pursuit of Tandberg. Based in Oslo, Norway, and New York, Tandberg sells a range of low-cost and high-end videoconferencing tools and systems to companies large and small.

After initially offering $3 billion for Tandberg on October 1, a bid that received a thumbs down from the Norwegian company's shareholders, Cisco bumped its price to $3.41 billion on November 16. Cisco said it still expects the deal to close in the first half of 2010.

In a press release issued Friday, Cisco confirmed that 99.8 million Tandberg shares had been tendered, representing 89.1 percent of all outstanding stock. It also said that additional shares, tendered on November 18 and 20, amount to an extra 2 percent, totaling 91.1 percent of all shares. Though Cisco may see that as a done deal, tendered shares essentially mean that it has gotten a promise to receive those remaining shares at a certain time--they're not in Cisco's pocket just yet.

Assuming Cisco scoops up the necessary shares to satsify Norwegian law, the company still faces regulatory approval from the U.S. Department of Justice. The company said Friday that it has received a Request for Additional Information, or a "second request," from the Justice Department on its purchase of Tandberg. This type of request is not uncommon among mergers of this scope. But it requires a prompt response from Cisco to present specific information to the government, which may be concerned about potential anti-competitive effects of the deal.

Cisco said it intends to respond expeditiously to the Justice Department's request and continue to work with the agency in connection with the agency's review.

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