IN THE PAPERS
In The Papers 25 May
25-05-2009
by Sylvia Leatham
Russian group may invest in Facebook | eBay wins L'Oreal case in UK
The Wall Street Journal reports that Digital Sky Technologies, a Russian internet investment group, has offered to invest USD200 million in Facebook at a USD10 billion valuation for the company's preferred stock, according to sources. It is unclear whether Facebook has responded to or decided to accept the offer, which comes as the social networking site has been talking to a range of venture capital and private equity firms about raising more money to help fuel its growth. One source familiar with the matter said the DST proposal is the latest in a string of funding offers Facebook has received. Under the terms of the offer, DST would also offer to buy between USD100 million and USD150 million in Facebook common stock at a USD6.5 billion valuation, said sources.
The paper also reports that a US federal judge has blocked South Carolina's attorney general from making any move to prosecute Craigslist executives for ads that lead to prostitution arrests while the company pursues a lawsuit against the state. The order stems from an agreement between Attorney General Henry McMaster and Craigslist. It requires McMaster "to refrain from initiating or pursuing any prosecution against Craigslist or its officers" regarding content posted on the site.
The same paper says that the British High Court has ruled that eBay cannot be held legally accountable for the sale of counterfeit L'Oreal products through its website. The ruling was the second blow this month for luxury companies' efforts to control sales of their goods online in Europe, following a similar ruling in France last week. L'Oreal brought suits against eBay over counterfeits in five European countries, and courts have so far ruled in favour of eBay in Belgium, France and the UK, and in favour of L'Oreal in Germany.
According to the Financial Times, a long-running battle between Egypt's Orascom and France Telecom appears deadlocked as the two sides argue over the validity of a legal ruling that ordered control of their jointly run Egyptian mobile operator to be transferred to the French group. Orascom Telecom and France Telecom have jointly controlled Mobinil, Egypt's largest mobile operator, since 2001, but fell out over strategy. Orascom said last week that a March arbitration ruling requiring it to sell its 28.75 percent stake in Mobinil to France Telecom had lapsed, and it appealed to an Egyptian court to have it annulled. However, a Swiss court document seen by the Financial Times indicated that Orascom was still obliged to sell. France Telecom and Orascom declined to comment.
The Sunday Tribune writes that the new Tetra digital mobile radio service for Gardai has not yet been introduced because the radios cannot be shut off if lost or stolen. A Garda spokes man said there were a number of technical difficulties discovered and work is currently ongoing to resolve them. The new system is encrypted, which means scanners cannot be used to listen in on communications. However, the EUR100 million system could also cause problems for householders by interfering with TV reception.
The Sunday Business Post writes that English firm Matchmaker Marketing has sparked complaints from dozens of Irish firms over its claims that it is a division of Google and can deliver top rankings on the search engine's website. The Cheshire-based firm has no connection with Google, according to a spokesman for Google Ireland. He also said that the company's claims of front-page placements on Google were impossible. In fact, Matchmaker places advertisements in the sidebar on Google, which receive fewer hits than 'organic' search engine listings.
The paper also writes that the US firm hoping to build an electric car network in Ireland, Better Place, has successfully demonstrated its new battery-switching technology. The technology removes a depleted battery and replaces it with a fully charged battery while the driver remains in the vehicle. The process takes about a minute to complete and is faster than filling petrol tank. The company said the technology could be ready in up to three years.
The Centre for Telecommunications Value-Chain Research (CTVR), the Irish telecoms research centre, has said the number of spinout firms that it generates will increase over the next five years. The centre's research has already created one successful commercialisation spin-out, Socowave, and it said another is in the pipeline. The CTVR also plans to unveil four more in the coming years. The centre said it would support researchers who want to pursue their own businesses, but it prefers to licence intellectual property to external entrepreneurs who can develop their own companies.
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