Sony OLED TV for Christmas

Oh, Santa!

The 11-inch, 3mm-thick display hits the streets of Japan in december for $1,743.
Sony has announced they are adding a new category to their TV business, launching the "XEL-1," the world's first organic light emitting diode (OLED) TV in December of 2007. OLED, a light-emitting display technology based on electroluminescent organic materials, allows extremely thin design parameters to be achieved. With its low power usage, it is also extremely environmentally friendly. Sony first produced full-color OLED panels in 2004, focused mainly on mobile products. The XEL-1 boasts a 1,000,000:1 contrast ratio, 960 x 450 resolution and 2 x 1W speakers, with USB, Ethernet and HDMI inputs. An 11-inch model will be available in Japan on December 1 for an MSRP of around $1,750.

Skype Struggling?

EBay Plans to Take $1.4 Billion In Skype-Related Charges
Skype Founder Zennstrom Steps Down as CEO

By KEVIN KINGSBURY (WSJ)
October 1, 2007 12:27 p.m.

EBay Inc. said it plans to take $1.4 billion in Skype-related charges in the third quarter and announced a management shakeup at its Internet phone subsidiary.
The Internet auction giant said the charges include $530 million to complete payments related to its 2005 acquisition of Luxembourg-based Skype. The other charges reflect goodwill impairment due to "the updated long-term financial outlook for Skype."

In addition, Skype co-founder Niklas Zennstrom has stepped down as CEO of the company and will become non-executive chairman. EBay also said Henry Gomez, an eBay veteran that was tapped to be Skype's president eight months ago, will return to eBay as senior vice president for corporate affairs.

EBay said Michael van Swaaij, eBay's chief strategy officer, will become Skype's interim CEO while the company searches for a replacement. The company did not say if it plans to name a new Skype president.

Skype was acquired by eBay for $2.6 billion, with the potential of its former shareholders receiving an additional $1.7 billion depending on performance levels in 2008 and the first half of 2009. EBay said the $530 million payment "is reasonable given the progress and anticipated rapid growth of Skype's active user base."

Skype lets Internet users of its software make free calls through their computers to other Skype users. It charges cheap rates for a variety of other services such as Internet-based calls to non-Skype users' mobile phones.

Skype's second-quarter revenue more than doubled to $90 million, about 5% of eBay's total, with registered users nearly doubling to 220 million.

EBay officials have admitted that it has taken longer than expected for the company to benefit from the Skype deal, which was seen as a way to branch out from its core online auction operations.

Earlier this year, Wal-Mart Stores Inc. added an array of Skype phone gear to the electronics sections of 1,800 stores, bringing the provider of inexpensive Internet calling to a mainstream audience. Skype has developed a following, especially among international callers, but the service isn't as well known to the general public.

Financial Times of London on the Harman Purchase Debacle

Harman International: sources see little evidence of MAC being triggered

by Yana Morris and Ed Mullane in New York
Published: September 24 2007 04:14 Last updated: September 24 2007 04:14


Rumors circulating suggesting that Harman International, the high-end audio supplier, has seen a meaningful deterioration in its operating performance that could lead to a triggering of a Material Adverse Effect Clause (MAC) are unsubstantiated, a large shareholder said on Friday.

A second large shareholder agreed saying he has found little evidence supporting claims by Kohlberg Kravis & Roberts (KKR) and Goldman Sachs that Harman’s revenue or earnings have changed in such away as to allow them to walk away from the transaction.

Earlier on Friday, Harman announced that it was informed by KKR and GS Capital Partners that they no longer intended to complete the acquisition of the Washington DC-based high-fidelity audio products developer, under Material and Adverse Clause (MAC). Harman disagreed that a MAC had been triggered.

However, a source familiar with the situation said KKR and GS were growing worried about Harman’s deteriorating financial performance which he suspects gave them a reason to test MAC’s performance in this deal.

Still, according to Harman’s merger agreement, a MAC could only be triggered if “a material adverse effect on or with respect to the business, results of operation or financial condition of the company and its subsidiaries taken as a whole that prevents or materially delays or materially impairs the ability of the Company to consummate the Merger”. However, the MAC cannot be applied under deterioration in the auto industry or general market conditions.

A third shareholder said Goldman Sachs’ undisclosed commitment to provide up to USD 4bn in equity financing on the deal was another reason why the bank agreed with KKR to back out of the deal to reduce its exposure to Harman in volatile credit market conditions. Harman’s weakening fundamentals would have impaired Goldman’s ability to syndicate the LBO-related debt.

In addition, the source said that while Harman committed to providing all the necessary financing information to banks to secure financing, there was some disagreement over technical financial information that was provided by Harman to KKR and GS. The source would not elaborate any further.

A third shareholder who claimed he was briefed by sources close to the deal said Goldman Sachs was apparently referring to a breach of specific conditions that were attached to the financing agreement.

Both equity commitment details and terms of the underwritten financing were never released to the market with KKR and Goldman Sachs today declining to comment on this matter.
Market chatter started early this morning focused around a Mercedes contract that might have fallen apart that could trigger MAC. However, Harman did not make any release supporting such a claim, and checks with company insiders proved there was no change to the outstanding contract with the auto marker.

On 15, 2007, following its fourth quarter earnings release, David Leiker of Robert W. Baird & Co wrote that Harman missed revenue and gross margin projections citing shortfalls stemming from the delayed launched of the Mercedes C-Class, increased competition from multimedia devices and higher costs ahead of new businesses being launched during the next two to three years. While Harman’s grew revenue by 6%, it was 7% short of Leiker’s estimate. Harman has been one of the fastest growing companies in the auto-supply space for over a decade.

Harman’s earnings results were viewed by some as being unclear in its most recently reported quarter. However, looking past the non-recurring expenses and the slow ramp on the new Mercedes line, the results are better than they first appear, a fourth shareholder said.

Currently, all LBO deals are under review, said a lawyer who specializes in working with PE firms. Each deal is being evaluated with PE firms carefully calculating the cost they can get out of a transaction, with the reverse breakup fee and whether the particular circumstances support a strong or weak argument that a MAC has occurred in a particular merger agreement, he added.

An industry banker said transactions that are being levered 8x EBITDA are simply going to be tough to get financed, although each transaction will be evaluated on its own merits. According to one shareholde’rs analysis, Harman’s leverage would be just at the 8x level, with the deal sponsor committing 43% to 45% in equity.

Harman’s stock dropped 21% during regular trading hours, dropping another 6% in after-hours trading.

If You Are Drowning In Remote Controls, Harmony is Lifesaver

By NICK WINGFIELD

(Wall Street Journal)
September 27, 2007; Page B1

Our love affair with entertainment gadgets has caused an unfortunate epidemic of remote controls. In my own house, there's a wicker basket on a coffee table with a jumble of remotes for a television set, a high-definition television tuner, a home-theater receiver and a couple of videogame consoles. And when that basket became flooded, I added yet another device to contain the clutter.

There are "universal" remotes that are designed to let you operate multiple electronics devices from a single control. But most universal remotes, if you can figure out how to work them at all, don't help much with the tedious sequence of button pushes often required to do simple tasks, like watch a movie. In my case, just turning on the TV can require up to six punches on two different remotes, depending on what activity I happened to be doing on my home-theater system the last time I shut it off.

Logitech International, the Swiss computer-accessory maker, has come up with an answer to the problems of remote-control clutter and excessive button-pushing with its family of Harmony universal remote controls that are relatively affordable and easy to use.

I tested two of the latest models of Logitech remotes, the Harmony 890 and 1000, and found that they greatly simplified using my home-theater system, despite a few flaws.

It's a challenge just getting many universal remotes working, considering all of the electronics gear that occupy many TV rooms. The setup usually involves punching arcane codes into a universal remote corresponding to your electronics devices after looking the numbers up in a manual -- a tedious process with lots of opportunity for failure.

Users configure Harmony remotes through what I found to be a far more user-friendly process: by tethering them to a Mac or Windows PC with a USB cable. A software program that comes with the remotes asks users what types of devices they'd like to set up, such as a home-theater receiver, a television set and a digital video recorder. Users will need the model number for their devices.

Once you've entered the model numbers into the Harmony program, the software automatically downloads all of the commands required to configure the remote so it works with your TV-room gadgets from an online Logitech database containing more than 200,000 devices -- far more than you'd find listed in the manual for a conventionally programmed universal remote control.

The Harmony software easily located all of my devices in its database.

An important feature of the Harmony remotes is something called activities, which lets users reduce to one the multiple button pushes typically required to do basic functions with their entertainment systems, such as watching a DVD. Logitech didn't invent this concept, but it has made the setup process easy enough so users don't have to hire a professional installer to do it for them, as is the case with many other high-end universal remote controls.

Based on the types of devices I told it I had, the Harmony software on the PC recommended a handful of activities for my remote controls, including "Watch TV," "Watch a DVD," and "Listen to CDs."

To watch a DVD on my entertainment system, I normally need to turn on my TV and set it to the correct video input source, turn on my home theater receiver (which I use to play audio when watching movies) and turn on my Xbox 360 game console (through which I play DVDs) -- a process that requires up to seven button pushes on multiple remote controls.

The Harmony remotes eventually allowed me to push one button to turn on all of these devices, but there were hiccups. When I hit the "Watch DVD" activity button, the Harmony remotes initially turned on all of my devices except the Xbox 360. After a few minutes exploring the Harmony software on the PC, I was able to change a setting to correct the problem and update the remote.

In all, it took me about 30 minutes to configure the first Logitech remote I used, the Harmony 1000, and half that time for the Harmony 890, after I had become familiar with the process.
The two models of remotes offered similar functions but in radically different industrial designs. The Harmony 1000 is a tablet-shape control about the size of a small picture frame, with a large touch-sensitive color screen that displays large buttons for accessing activities and other functions on your devices. The Harmony 890 is a more conventional wand-shape remote with a smaller screen.

I preferred the design of the Harmony 890, finding it easier and more natural to use with one hand, not to mention a better value. I have found the Harmony 1000 selling for as low as $272 and the Harmony 890 for $222 on Amazon.com. The 890 comes with a kit that lets you extend the range of the remote by using radio frequency, instead of infrared, signals.

Both Harmony remotes, though, made it much easier for me to use my entertainment system and cleaned up some of the clutter in my living room.

Battery Woes for Toyota

Toyota Denies Battery Woes Delay Prius

By YURI KAGEYAMA 09.28.07, 9:26 AM ET

TOYOTA, Japan -

Introduction of the next version of Toyota's hit Prius gas-electric hybrid won't hinge on the development of a more efficient battery called lithium-ion, a senior Toyota executive said Friday.

The executive brushed off a recent Wall Street Journal report that said Toyota Motor Corp. (nyse: TM - news - people ) was delaying the launch of the next-generation Prius by as much as two years because of problems in developing the lithium-ion battery. Hybrids on sale now use nickel-metal-hydride batteries.

The Toyota official, who requested anonymity because he is not authorized to speak on the matter, said various innovations for the next Prius are being considered - not just the lithium-ion battery.

He said some type of lithium-ion battery is preferable for hybrid vehicles because they are lighter and pack more power than nickel-metal-hydride batteries. He acknowledged that the lithium-ion battery had not been perfected.

But he denied that the problems Sony Corp. (nyse: SNE - news - people ) had with its laptop lithium-ion batteries raised safety concerns at Toyota, as the Journal had reported, stressing that potential battery problems were long known to Toyota engineers. Sony recalled millions of laptop batteries after reports of fires.

Hybrid competition is intensifying as gas prices and environmental concerns escalate.

Last month, General Motors Corp. (nyse: GM - news - people ) said it had signed an agreement with A123 Systems Inc., a battery maker that already produces millions of lithium-ion batteries for use in cordless power tools.

At that time, GM Vice Chairman Bob Lutz said the technology could be applied to autos, giving GM a chance to beat Toyota in the race to bring plug-in hybrid and electric cars to market.

Toyota's hybrid vehicles, which deliver better mileage by switching between a gas engine and electric motor, have been a huge hit. The automaker has sold more than a million hybrid vehicles around the world in the past decade - more than any other automaker.

Toyota, has not given a sales date for the world's most popular hybrid, which first went on sale in 1997.

Copyright 2007 Associated Press. All rights reserved.

Huge News- Windows XP

Those of you that have Vista understand why...


Microsoft to Extend Windows XP Sales

Associated PressSeptember 28, 2007 9:17 a.m.

REDMOND, Wash. -- Microsoft Corp. said it will keep selling its Windows XP operating system beyond January, in response to demand from customers.

The company decided to extend the deadline until the end of June 2008 to give customers -- particularly small businesses -- more time to switch to the new Windows Vista.

"Maybe we were a little ambitious to think that we would need to make Windows XP available for only a year after the release of Windows Vista," said Mike Nash, a corporate vice president for Windows product management at Microsoft.

While software retailers and major computer makers like Dell Inc. will stop offering XP next June, system builders, or smaller companies that make and sell PCs, will still sell the older operating system until the end of January 2009.

Mr. Nash said Microsoft's policy in the past has been to discontinue an old operating system four years after its launch. But because Vista reached consumers more than five years after XP, the revised the rules.

In April, Dell, which had all but stopped selling XP to consumers, said it would bring back more XP machines after customers asked for it. At the time, Microsoft responded that only "a small minority of customers" were still interested in the old operating system.

Microsoft is also extending the availability of a version of XP aimed at customers in emerging markets, Windows XP Starter Edition, until June 30, 2010.

Copyright © 2007 Associated Press