AT&T was expected to soon present a two-track plan that allows the company to try to find a settlement before the government lawsuit to block its planned $39 billion acquisition of smaller rival T-Mobile USA reaches the court. Details of AT&T’s proposed settlement were not available, but it is expected to include pledges to maintain T-Mobile’s relatively cheap mobile subscription plans, and asset sales.
TechCrunch founder Michael Arrington created a venture capital fund to invest in promising start-ups, sparking controversy over possible conflicts of interest involving the fund and questions about the integrity of the blog. Included in the debate was Arrington’s employment status, with one AOL spokesperson claiming that Arrington was no longer employed by the owners TechCrunch, and another claiming he was. Arrington’s creation of the “CrunchFund” comes months after he publicly announced that he had begun to actively invest in start-up companies, which also triggered a lively debate within the industry.
Apple promoted veteran exec Eddy Cue to oversee Apple’s advertising service called iAd and iCloud, according to a leaked memo published by 9to5Mac. Cue played a major role in creating the Apple online store in 1998, the iTunes Music Store in 2003 and the App Store in 2008, new CEO Tim Cook said in the email to employees.
An Apple employee once again appeared to have lost an unreleased iPhone in a bar, CNET reported. Last year, a misplaced iPhone 4 pre-production model was bought by Gizmodo. Today, two men pleaded not guilty to misdemeanor theft charges relating to that 2010 incident. The latest missing iPhone prototype, which disappeared in San Francisco in late July of this year, sparked a scramble by Apple security to recover the device over the next few days, CNET wrote, citing a source familiar with the investigation.
The Justice Department sued to block AT&T’s $39 billion deal to buy T-Mobile USA because eliminating T-Mobile as a competitor would be disastrous for consumers and would raise prices, particularly because the smaller provider offers low prices, the lawsuit said. The lawsuit is a serious attempt to halt a “fundamentally flawed” deal, not a tactic to wring out-sized concessions from AT&T, a source familiar with the lawsuit said.
Dan Frommer says blocking the deal won’t help make service quality any better. A merger would create more spectrum to offer better, faster, more reliable service, Frommer writes. Also, its shortsighted to look at today’s pricing and market and use them as strict guides for the future, as voice and SMS service are disrupted by Internet technology, and as carriers try to charge more for 4G LTE access than they did for 3G access, Frommer added.
In an interview with Reuters, the head of HP’s PC business Todd Bradley gave the throngs of people who lined up outside stores to snap up discontinued and deeply discounted TouchPads hope that the company wouldn’t abandon them, saying the tablet could be resurrected. This, as the TouchPad was on track to become the second-best selling tablet of all time behind Apple’s iPad.
GigaOm’s Ryan Kim says HP’s revelation muddies the waters, making the biggest maker of PCs in the world seem indecisive, which hurts it’s stock price.