Digest: Microsoft a good home for Yahoo
EmptyMicrosoft a good home for Yahoo
Microsoft's bid to buy Yahoo likely would be approved by U.S. and European regulators while an expanded partnership between the Internet giant and rival Google could prove "troublesome," a UBS analyst said Monday. Software analyst Heather Bellini said she sees a Microsoft-Yahoo deal "as relatively low risk" and estimates only a 15%-25% chance that the deal would be nixed by regulators. "Assuming a friendly transaction, approval could take four to six months in the U.S. and eight to nine months in the European Union," Bellini said. She said she "would not be surprised to see a deal struck sometime this week" between Microsoft and Yahoo for more than $31 per share. Yahoo shares closed down TK% to $TK on Monday.
Philips profit tumbles 28%
Philips Electronics reported a bigger-than-expected 28% drop in quarterly core profit Monday as its television business sank deeper into the red and warned of slowing economic growth in mature markets. First-quarter earnings before interest, tax and amortization fell from 370 million euros a year ago to 265 million euros ($419 million). "Our results are clouded, more than we like, by the adverse situation in our TV business, significantly lower incidental license income and some acquisition-related charges," Philips CEO Gerard Kleisterlee said. The company's TV business is suffering from tough competition, especially in the U.S., from low-cost rivals like Taiwanese Amtran's Vizio brand.