Microsoft's last offer before breaking off talks with Yahoo was for $8 billion in cash for 16% of the company, sources said. In addition, Microsoft would have paid $1 billion to take control of Yahoo's search business, and it would have delivered to Yahoo $1 billion a year in operating income through a revenue-sharing plan. Microsoft's offer was an alternative to the $47.5 billion it bid for a full acquisition, which Yahoo also turned down.
GOOD DAY FOR GAMERS
Shares of video game publishers traded mostly higher Friday, a day after NPD Group said sales of games, consoles and accessories in May rose 37% from the same month last year. NPD estimated May sales of $1.12 billion for the sector, with hardware up 34% and software up 41%. Take-Two Interactive Software's "Grand Theft Auto IV" remained the top-selling video game, and Nintendo's Wii console was the top-selling hardware unit.
NEWS CORP. REBOUNDS
Shares of Rupert Murdoch's News Corp. were boosted from their lows Friday after Lehman Bros. analyst Anthony DiClemente said the company was a good buy thanks in part to its global diversification. The stock gained 3.4% on Friday to $18.43. It hit a 52-week low of $17.50 the day before, having dropped from $24.95 in October. The analyst touted Fox Cable Networks for its strong growth in affiliate fees and the Fox broadcast network's leading ratings. He also said 20th Century Fox film and TV studios are efficiently run, high-margin businesses.