Digest: AOL ad buy; Netflix low
EmptyAOL ad buy
Time Warner Inc.'s AOL unit has agreed to buy online advertising firm Tacoda. The companies didn't disclose financial terms, but Reuters cited a $275 million price tag. Tacoda's technology allows brand marketers to target messages to certain audience segments based on the kind of Web sites they have visited. The acquisition is AOL's latest move to strengthen its ad business.
Shares of Netflix Inc. fell to a 52-week low Tuesday after its report of a subscriber loss for the second quarter and reduced full-year outlook. The stock plunged as low as $15.62 in early trading before closing down 6.4% at $16.16. Netflix led Tuesday's decliners on The Hollywood Reporter's Showbiz 50 stock index. During the past year, the stock has traded as high as $30. Jefferies & Co. analyst Youssef Squali said in a report that he sees "no meaningful catalysts for Netflix near-term." He maintained a "hold" rating and $16 price target on the stock.
Vid games up
U.S. video games software sales rose 22% in June thanks to strength in Xbox 360 and Nintendo products, BMO Capital Markets analyst Edward Williams said Tuesday, citing data from research firm NPD Funworld. Overall sales of software and hardware jumped 31%. The analyst said the latest month saw sales of 199,000 Xbox 360 consoles, 98,000 sales of Sony Corp.'s PlayStation3 and 382,000 of Nintendo's Wii. Among game makers, Activision Inc. and Ubisoft were among market-share gainers, Williams added..
Advertising conglomerate Omnicom Group Inc. reported a better-than-expected 13% improvement in second-quarter profitability thanks to worldwide revenue gains. The firm posted a profit of $276.7 million on revenue of $3.13 billion, marking a year-over-year increase of 10.7%.