Digest: Blockbuster mulls; Gemstar settles
Blockbuster is mulling options to fund its proposed acquisition of Circuit City, but won't take its bid hostile, the Wall Street Journal reported Monday. Among the financing options are using Circuit City's own balance sheet, using its existing debt facility, selling assets and launching more cost savings, it said. Blockbuster last week went public with a bid of $1 billion-$1.3 billion for Circuit City. So far, Circuit City has said it won't let Blockbuster do due diligence by giving it a look at its financial books, unless the company provides details on its funding plans for he deal.
Gemstar-TV Guide and Digeo, the maker of the Moxi DVR, have settled their litigation by mutually dismissing claims and entered a multiyear patent-license agreement. Financial terms were not disclosed. Under the deal, Gemstar provides Digeo with a patent license to cover Digeo's deployed program guides, as well as future guides. Gemstar filed a patent infringement lawsuit in October 2006, alleging the Moxi guide infringed upon its patents. Media technology firm Macrovision is in the process of buying Gemstar for $2.8 billion.
Gannett, the largest U.S. newspaper publisher, reported a 9% decline in its first-quarter profit to $191.8 million. Revenue fell 8% year-over-year to $1.7 billion. Gannett chairman and CEO Craig Dubow cited faltering advertising because of a sluggish U.S. economy. Gannett's broadcasting revenue fell 7% to $170.2 million amid a tough comparison with the year-ago period when the company's CBS affiliates broadcast the Super Bowl.