Shares of Blockbuster Inc. slipped 1% on Wednesday to $5.39 after Citigroup analyst Tony Wible cut his rating on the company, citing the stock's recent run-up and risky nature. Wible cut the stock from a "buy" rating to a "hold," but raised his price target on Blockbuster shares from $5.50 to $6.25. "While we continue to expect strong 2007 results driven by continued operational improvements, we believe most of these catalysts are well-known and priced into the stock, as represented by its 50% run-up since the bottom in mid-August," Wible said.
Wikia Inc., the Web site launched by Wikipedia founder Jimmy Wales, said Wednesday that it has received an undisclosed amount of funding from Amazon.com Inc. The e-tailer is the sole investor in Wikia's second round of funding and Wikia's first corporate investor. Wikia received $4 million in Series A funding this year from an investor group that included Bessemer Venture Partners, Omidyar Network and angel investors Marc Andreessen, Josh Kopelman, Joichi Ito, Mitch Kapor and Ron Conway. Wikia is an ad-supported platform for developing and hosting community-based "wikis" on 2,000 topics including TV, politics and the iPod.
Private investment group Cinven has pulled out of the bidding for German broadcaster ProSiebenSat.1, exiting its consortium with Apax and Goldman Sachs, according to reports Wednesday in the German media. The Financial Times Deutschland reports that Cinven balked at the asking price for ProSieben, said to be about €3 billion ($4 billion). Other bidders for the broadcaster, controlled by a group of private investors around Haim Saban, have until Tuesday to submit binding bids.