IN THE PAPERS
In The Papers 28 May
28-05-2009
by Sylvia Leatham
Best Buy to launch investment fund | Bartz still open to Micro-hoo deal
The Irish Times reports that Minister for Justice Dermot Ahern will consider the removal of certain mobile phone numbers from the State's phone system in a bid to curtail prostitution. The Minister was responding during Dail questions to Fine Gael TD Denis Naughten, who highlighted the report of the Immigrant Council of Ireland, which estimates that the sex industry in Ireland is valued at EUR180 million a year. Naughten said one of its conclusions was that "mobile phones are the lifeblood of this country's brothel-keeping and prostitution industry. If certain mobile numbers were to be taken off this country's mobile phone system, that would immediately close down a huge proportion of that industry." Ahern said "that is something the Gardai can look at".
The paper also reports that Eircom's operating profit fell to EUR69 million in its most recent quarter. Read more on this story on ENN and look out for more details in Thursday's Weekly Digest.
The same paper notes that software firm Voice Sage is to create 25 jobs in Dublin, as reported by on ENN on Wednesday.
The paper also reports that Dublin-based music video website Muzu.tv has signed a major deal with Warner Music. Read more on ENN.
The Irish Independent says that chip giant Intel has refused to rule out further job losses in Ireland after securing what it called a "ballpark" figure of 300 voluntary redundancies. A spokesperson for the firm, which employs over 5,000 people in Ireland, said there were no immediate plans to shed more staff but "everything is still on the cards" as it assesses its financial performance. The Kildare-based multinational announced in February that it wanted up to 300 voluntary redundancies at its Leixlip plant as part of a worldwide plan to cut staff.
The same paper reports that beleaguered e-payments group Payzone's attempt to refinance its EUR276 million debt will not to be completed by the time it reports interim figures next month. A deal with its lenders, led by Royal Bank of Scotland, is understood to be premised on the sale of its German subsidiary, which has been dragging on for about six months. However, informed sources have dismissed industry speculation that a sale of the German business has fallen through. They say Payzone is still in talks with a number of parties.
The paper also notes that Microsoft has blocked access to Windows Live in countries that are subject to sanctions by the US government. "Microsoft does not offer certain Windows Live downloadable applications in certain countries subject to United States sanctions," Microsoft said in a statement. Cuba, Syria, Iran, Sudan and North Korea were blocked from accessing Microsoft's Windows Live instant messaging service, industry website LiveSide.net reported on 21 May. The decision to limit downloads of its software was made in adherence to US regulations, Microsoft said.
According to the Financial Times, US consumer electronics retail giant Best Buy is to launch an investment fund focused on digital media and managed by former and current News Corp internet veterans. "Best Buy has connectivity to hardware and software manufacturers, (Hollywood) studios, DVDs and cell phones," said Ross Levinsohn, a partner at Velocity Interactive Group, the venture capital firm that will help manage the new fund. Best Buy bought the Napster online music subscription service in 2008.
The paper also says that UK telco BT has cancelled plans to boost potential future bonuses for executives after a year of underperformance at its struggling IT services division. However, the former head of the unit still got a STG1.6 million pay-off, the company's annual report has revealed. The telecoms group had already pledged to freeze pay for all of its 85,000 UK staff this year, including for top management, but plans to increase potential bonuses and financial targets have been abandoned, the report says. The annual report revealed that Francois Barrault, the head of BT Global Services who resigned in November, received a STG1.6 million termination fee. "We're disappointed to have to make such a large payment to Francois but the company is honouring its legal and contractual obligations," a BT official said.
The Wall Street Journal says that Yahoo chief executive Carol Bartz has said she would be open to striking a search deal with Microsoft if the software giant offered "boatloads of money." "If there's boatloads of money and the right technology involved, we'd do a deal, sure," Bartz said at the All Things Digital conference. "It's that simple." Bartz also said Yahoo was interested in acquiring social-networking and video start-ups, noting that video advertising has grown sharply in recent years. She added that Yahoo, which has cut thousands of jobs in the past year, is not planning further layoffs.
The paper also notes that Time Warner is set to announce a separation of its AOL division, according to sources. Time Warner's board on Thursday is expected to meet and approve a separation of AOL into an independent company, although the structure of the transaction has not been finalised.
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