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Friday, July 14, 2006

Media Digest 7/14/2006


According to Reuters, Japan's central bank raised rates for the first time in six years moving the key rate up .25% from zero.

Reuters say that the antitrust suit brought against Google by advertiser Kinderstart was dismissed.

BusinessWeek writes that a group of newspapers is thinking of partnering with Yahoo! for content including classifieds and local news. Executives from Hearst and MediaNews Group are leading the talks.

Reuters says that the FBI is becoming involved in the stock option investigation of a number of companies in Northern California. The issue of whether the dating was done fraudulently is key to the inquiry.

Reuters writes that Dow Jones is reviewing its news operations for ways to make cuts in the costs on one of the most expensive newspaper editorial budgets in the world.

Reuters writes that Ford cut its dividend in half in a move to save cash. The company's board also cut their director's fees by 50%.

The Wall Street Journal said that Hertz is readying an IPO. It was bought by private equity interests a little over six months ago.

The Wall Street Journal says that Merck won a case in a New Jersey court. The suit involved the accusation that the company's drug Vioxx had caused a user's heart attack.

The WSJ writes that Dell will cut the number of promotions and rebates to customers in an effort to simplify computer purchases. The "net costs" of buying a computer will not change.

The WSJ reports that Intel will cut 1,000 managerial jobs as part of a move to improve margins at the chip giant.

The WSJ also writes that a European court annulled the merger of Sony and Bertelsmann's music groups which took place in 2004. The two companies must file new plans for SonyBMG Music with European regulators.

The WSJ reports that the Tribune, one of America's largest media companies, announced disappointing earnings. Net income fell 62% to $87.8 million. The disappointing numbers may increase friction between the company's management and one of its largest shareholders, the Chandler family.

The New York Times reports that the head of Nissan and Renault, Carlos Ghosn, hopes to reach an accord for a partnership with GM as soon as possible. He would like to have an agreement by the end of the year or have the company's pass on the opportunity.

The NYT writes that 34 states will file price-fixing suits against seven semiconductor companies including Infineon, Micron, and NEC Electronics America.

The NYT also reports that PepsiCo's earnings rose 14% driven by sales of Gatorade and Aquafina water.

Douglas A. McIntyre

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