TV Technology - January 7, 2009 - (Page 50)

BUSINESS Panasonic Makes $9 Billion Sanyo Offer TOKYO In what would be the biggest merger among consumer electronics companies in Japanese history, Panasonic has offered to by Sanyo for about $9 billion. Panasonic is the world’s largest maker of plasma TVs. ity in the U.S. graphics market,” said Pixel Power CEO Pete Challinger. “To sustain the business growth we are experiencing we need to invest in our infrastructure to support our broadcast customers. Pixel Power is well known for its prompt, hands-on attention to its customers and this expansion will help to ensure that we continue to meet the highest expectations.” Pixel Power has added staff and both offices will feature state-of-the art demonstration and training facilities. The Burbank office will continue to serve as the company’s main product distribution point for the United States with expanded technical capability for inspection and quality control. Both offices became fully operational Jan. 1. form advertising opportunities in order to significantly raise their revenues in the coming years,” said Mark R. Fratrik, vice president of BIA Advisory Services. “With the steady improvement of their online and mobile presence they now need to demonstrate to their advertisers the significant value proposition they can offer through a bundled advertising package.” BIA estimates that an additional $1.1 billion in ad revenues could come to local television stations by 2012 from multicasting if they begin delivering programming to cellular, mobile and portable handsets. The offer was under consideration by Goldman Sachs and other investors who own some 70 percent of Sanyo. Panasonic is the world’s largest consumer electronics company and the largest maker of plasma TVs. One valuable Sanyo asset that may have appealed to Panasonic is its solar energy technology, including solar-powered batteries. The two also have several overlapping product lines. Panasonic’s offer was 4 percent below Sanyo’s stock price, indicating a fear of a bleak immediate future in consumer electronics. Panasonic would have to issue bonds to come up with the cash to finance the deal. “Panasonic and Sanyo recognize that existing strategies must not only be accelerated, but also that drastic action is now required for further strengthening initiatives to achieve potential revenue and profit growth in the global economic recession stemming from the financial crisis as well as in the midst of intensified global competition,” Panasonic said in a statement, SES Americom to Shutter IP-PRIME PRINCETON, N.J. Industry Revenue Down 7 Percent CHANTILLY, VA. Pixel Power Expands In U.S. Market BURBANK, CALIF. Graphics technology provider Pixel Power is expanding its operations in the United States with a bigger Burbank home and a new office in New York to serve East Coast customers. Pixel Power sees more stateside business ahead. “We continue to see significant activ- The television industry saw a 7 percent drop in revenue in 2008 and is probably going to drop another 8.5 percent in 2009, according to a report. BIA Advisory Services said that even political advertising couldn’t save the balance sheet in 2008. It estimates television station revenues were heading toward $20.1 billion, the lowest in seven years. Revenue losses were more severe on the coasts, at 8.2 percent (East) and 7.6 percent (West), while Midwest revenue dropped only 5.8 percent. The drop is all the more severe because it follows a non-election year. “This year’s negative results reflect not only the economy but stagnant ad spending that has remained at $43 billion since 2000, representing a -0.4 percent compounded annual growth rate,” BIA said. The good news: The consulting and research firm sees a recovering economy and close congressional races to generate a 6.4 percent growth in revenue in 2010—which still would not bring the industry back to 2007 levels. Station sales are also slow. Broadcasters saw less than $1 billion in transactions in the year on sales of approximately 65 stations, a large drop from the past two years, according to BIA’s Investing In Television Market Report BIA expects station sales levels to stay low in 2009, with deals primarily made due to existing debt and financing structures or strategic corporate objectives, along with smaller ownership group bankruptcies or court-ordered restructuring. “The television industry needs to focus more on compelling cross-plat- Satcaster SES Americom said it will cease providing its IP-PRIME IPTV service in North America by next summer due to current economic conditions and a slow adoption rate by its target markets. “In line with its plan, IP-PRIME has contracted IPTV signal delivery agreements with 70 small telecom operators, of which 37 have so far reached commercial stage. However, with a subscriber base of less than ten thousand at the end of November and after more than 2 years of service, the consumer uptake is insufficient to justify continuing operations,” said Rob Bednarek, President and CEO of SES AmericomNew Skies. The IP-PRIME service will continue to operate until July 31, 2009. This will offer telecom operators an opportunity to orderly transfer their services and SES Americom, in collaboration with third parties involved in the service, to seek the best option to transition the business. SES does not expect that the termination of IP-PRIME will materially affect its financial guidance for 2008 and 2009 related to revenues and earnings. Equity in federal bankruptcy court alleges company management and directors repeatedly acted in their own self-interest rather than in the interest of creditors. According to the report, Silver Point Finance LLC of Greenwich, Conn., is seeking to recoup about $41.5 million it loaned to Equity. Silver Point says Equity will be unable to reorganize under Chapter 11 and can’t pay its workers. The company, which includes 23 full-power power stations, received cash infusions in 2008 by selling assets to its primary stockholder and former CEO, Henry Luken. he also purchased Equity’s Retro Television Network, a channel carried on the second (multicast) channel of numerous DTV stations. Equity is the second-largest affiliate of Spanish-language networks Univision and TeleFutura. Equity’s stock, above $5 per share after the stock launched in 2005, fell below $1 in April 2008 and was down to around 3 cents in December. Polaroid Declares Bankruptcy MINNETONKA, MINN. Equity Media In Bankruptcy LITTLE ROCK, ARK. Equity Media Holdings, owner of more than 100 television stations in 41 markets, filed for Chapter 11 bankruptcy, but it gets worse. In December, a creditor filed to change Equity’s case to a Chapter 7, meaning it could end up being liquidated. The Web site arkansasbusiness.com reported that a complaint filed against Polaroid Corp. and its U.S. subsidiaries filed for Chapter 11 bankruptcy protection in December. The company said the financial restructuring process will not impact day-to-day operations for employees, customers, retailers and suppliers. The iconic instant-photography pioneer has also placed its name on HDTVs in recent years. The bankruptcy followed that of Polaroid’s parent company since 2005, Petters Group Worldwide. Founder Thomas Petters was arrested Oct. 3 on fraud and money laundering charges, and the company declared bankruptcy shortly thereafter. Dec. 18, a senior accountant for Petters Group that company pleaded guilty to federal tax evasion charges. Polaroid said the alleged acts of fraud have compromised its financial condition, but said its own officers are not subjects of the ongoing investigation of Petters Group. “Our operations are strong and during this process Polaroid will ship products to our retail partners, work with our suppliers and contract manufacturers to fulfill retailer demand, honor customer warranties and employees are expected to receive their regular paychecks without interruption,” said Polaroid CEO Mary L. Jeffries. “We expect to continue our operations as normal during the reorganization and are planning for new product launches in 2009.” January 7, 2009 • TV Technology • www.tvtechnology.com http://www.arkansasbusiness.com http://www.tvtechnology.com

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TV Technology - January 7, 2009 NFL Enters a New Dimension Mobile DTV Looms Large in 2009 Contents A ‘Flexible Framework’ Doing More With Less ‘X’tra-Streamlined Finish Line in Sight for BAS Transition Ahead of the Relocation Curve DTV Transition Survival Guide ENG and the Lines of Communication DTV Transition Survival Guide Who Do We Really Work For? Obama to Expand Internet Access The Wizard Takes a Holiday The Solid-State Disk Revival To Light the Ear... or Not Hulu Gets It Right—the First Time User Reports—Video Servers & Recording/Controllers Reference Guide Product Showcase Classifieds Marketplace TV Tech Business

TV Technology - January 7, 2009

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