AT&T is expected to sell its cable television unit to its original suitor, Comcast, for about $70 billion, abandoning plans to spin off AT&T Broadband as an independent company, sources familiar with the situation said on Wednesday.
The companies were ironing out final details of an agreement that would make Comcast (CMCSA) the No. 1 U.S. cable television company, sources said, substantially more than the $44.5 billion that Comcast offered in July but less than the $100 billion AT&T (T) spent building its cable TV network.
The pact, which ends five months of negotiations and uncertainty, would leave AT&T with its shrinking consumer and business long-distance telephone and data operations. "Comcast was seen as having the most to lose," and the Philadelphia-based company "worked the hardest to be the winner," said one source who declined to be named.
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Qualcomm invests $10 million in Handspring: Shares of Handspring (HAND) rose 14.5 percent on news that it would receive a $10 million investment from Qualcomm (QCOM) and issue 7 million shares of common stock in a public offering.
Investor concerns about the company's cash situation are "somewhat alleviated" now, said Michael Kim, an analyst with Robertson Stephens. Handspring, which aims to become profitable in its fiscal 2002 beginning in July, was expected to end the calendar year 2001 with $75 million in unrestricted cash, Kim said.
The planned stock offering of $5.50 per share would raise $38.5 million for the handheld computer maker. The investment from wireless technology giant Qualcomm $10 million for 1.84 million shares of stock is modest, Kim said, but still signals support for Handspring, which in January is set to release its first all-in-one PDA-cell phone.
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Judge rules against Adobe: A U.S. District Court judge in Los Angeles tentatively ruled Tuesday against Adobe Systems and ordered it to stop selling InDesign and any other products that allegedly violate the copyright of software owned by Trio Systems.
"We're disappointed with the court's order," said Adobe (ADBE) spokeswoman Holly Campbell. "We disagree with its findings, but we will comply with it."
Trio is seeking damages, at least $10 million, for lost licensing fees from sold copies of InDesign and InCopy.
"Adobe is one of the most aggressive copyright infringement litigants in the country, but the judge has determined they probably violated our copyright," said Henry Gradstein, attorney for Trio Systems. "And instead, they deny it and accuse us of being the bad guys. It's hypocrisy in the extreme."
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Ready to launch: Pressplay plans to launch its subscription-based Internet music service Wednesday, which will allow users to listen to and store tracks from a broad catalogue of music.
The company said its service will be limited to just a few thousand users until a full rollout occurs in the new year.
Pressplay will offer a free 14-day trial and four pricing plans ranging from $9.95 to $24.95 a month.
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RadioShack restructures: RadioShack said it plans to sell its headquarters, discontinue products like car stereos and pagers and close 35 underperforming stores in an effort to strengthen its business.
The company said the moves, which also include exiting its commercial communications installation business, will result in a fourth-quarter charge of $124 million, or 50 cents a share.
RadioShack (RSH) Chief Financial Officer Michael Newman said the cash impact of the write-off is less than $10 million and puts the company squarely on the path to achieving its long-term strategic objective, which is to lead the specialty category in shareholder return.
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The shrinking company: Motorola is getting significantly smaller again in pursuit of the profitability it maintains it will achieve again in 2002 after a 1.5-year losing streak.
Motorola (MOT), which is trimming another 9,400 jobs in the latest of a series of sweeping cuts, said the most recent move Tuesday will improve its efficiency and, combined with semiconductor plant closings and other measures, result in about $1 billion in annual cost savings.
But company executives also indicated they expect two more money-losing quarters after this one, making it six straight in the red, before an anticipated return to profitability in next year's third quarter.
AP and Reuters contributed to this report.
