Before the bell: MSFT, YHOO, SBUX, ADBE, AMR, T, SIRI …

01 05 2008

Before the bell: MSFT, YHOO, SBUX, ADBE, AMR, T, SIRI …

Posted by: in Latest News

Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), Starbucks (SBUX), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), AT and T (T), Adobe Systems (ADBE), QUALCOMM Inc (QCOM), AMR Corp (AMR)

Before the bell: Futures higher after Fed move and ahead of data, Exxon

According to The Wall Street Journal, Microsoft Corp. (NASDAQ: MSFT), attempting to avoid a big hostile takeover bid, indicated it might be willing to raise its bid to as much as $33 per Yahoo Inc. (NASDAQ: YHOO) share. Microsoft’s board had failed to reach a final decision on how to proceed with its bid for the World wide web search group. Yahoo!, though, might want $35-37 per share. And I thought Ballmer stated he would lower the bid … Don’t they know by now these negotiating tactics are well known? In any event, it’s starting to look more and more like the deal is closer than ever and the parties are willing, despite each showing off some muscle first.

Starbucks (NASDAQ: SBUX) reported late Wednesday a 28% drop in second-quarter earnings to $108.7 million, matching market expectations. While the drop was expected, it doesn’t mean the report showed any positive changes following Schultz coming back to the CEO role. Perhaps it’s too early to see them manifested, but Starbucks, once such a darling, isn’t showing improvement yet. Stock is up about half a percent in premarket trading.

Adobe Systems Inc., (NASDAQ: ADBE) estimated that fiscal second-quarter earnings and revenue would come in near the high end of its targets and affirmed its earnings outlook for the full year. That is about 45-47 cents, compared to analysts’ estimates of 43 cents per share.

British Airways stated late Wednesday that it is considering ways to have increase cooperation with AMR (NYSE: AMR) unit American Airlines and Continental Airlines (NYSE: CAL). British Airways isn’t allowed to purchase controlling interest in either carrier due to U.S. law on foreign ownership of airlines and American CEO recently stated he wasn’t looking to merge. Increased cooperation, though, may be fruitful to both.

According to MacRumors, AT&T (NYSE: T) hotspots are now offering free Wi-Fi access to iPhone users. Barnes and Noble, Starbucks and now AT&T stores are offering iPhone users a custom portal to access free Wi-Fi. MacRumors has been able to confirm this finding at a local Barnes and Noble.
AT&Tis also launching its new video service, AT&T Mobile Television, for cell phones Sunday on two phones, and will charge $15 per month for 10 channels. The service is operated by Qualcomm Inc. (NASDAQ: QCOM) and will have two exclusive channels on the service.

Sirius (NASDAQ: SIRI) and XM Satellite (NASDAQ: XMSR), whose deal was extended to May 1 back in February, have each agreed to extend their deal yet again by two weeks as they await approval for the deal from the Federal Communications Commission. The Department of Justice gave its go-ahead in March. The deal has Sirius acquiring its larger rival.