Archive for May, 2012

What will happen to the guy who sold the iPad prototype?

A man sold a prototype of the first-generation iPad earlier this week for $10,200, but now that there’s a likelihood he came across the item after it was stolen, it poses the question: What will Apple do about it?

The seller, who posted the unique two dock-connector iPad on Ebay on Memorial Day, said he bought the device from a colleague but doesn’t know how he came across the item.

“I don’t know if it was stolen from Apple, or if the person who was working with it kept it,” the man told Wired. “Judging by how Apple works, it’s most likely stolen, but I’m not sure about that.”

The seller, who did not reveal his identity to the publication to protect himself from Apple, said he purposely chose Memorial Day weekend to sell the item.

Read the full article here.

Facebook stock falls back to $38 after jump at open

Facebook fell back to its initial public offering price of $38 around noon Friday, 30 minutes after opening for trading.

The company, which spiked as much as 13 percent at the open, debuted in what was a highly anticipated stock offering on the Nasdaq. Financial pundits were sharply divided in their opinion of whether the stock was a good buy, underscoring the debate over the value of social media and whether companies can make money off these enterprises.Volatility in the shares Friday may be a sign of that uncertainty.

The company’s chief executive, Mark Zuckerberg, rang the opening bell for the Nasdaq index Friday morning when the markets opened at 9:30 a.m. But as the expected 11 a.m. deadline for trading to begin ticked by, trades had yet to be listed, and the Nasdaq said that it was experiencing “delays.” Trading finally began at 11:30 a.m.

A Nasdaq spokesman was not immediately available to comment on the reason behind the delay.

The first-day pop on Facebook was expected, as investors scramble to get a piece of the initial public offering. The stock hit as high as $43 per share.

Read the full article here.

GeoEye offers to buy competitor DigitalGlobe for $792M

Herndon-based GeoEye has offered to pay $792 million in cash and stock for its Longmont, Colo.-based competitor DigitalGlobe at a time when the satellite-imagery business will likely be hit by federal belt-tightening.

The deal would give DigitalGlobe shareholders $17 per share of the company, a figure that includes $8.50 in cash and $8.50 in GeoEye stock. The price tag marks a 26 percent premium over the firm’s closing value on May 3.

In an open letter to Jeffrey Tarr, the president and chief executive of DigitalGlobe, GeoEye chief executive Matt O’Connell said the companies had discussed a potential merger “during the past few months” as a way to combine resources and survive budget cuts.

O’Connell explained in an interview that a combined company would be able to reduce capital expenses by constructing fewer satellites over time and requiring fewer ground stations. Both firms are in the midst of building satellites, and O’Connell said he did not expect those projects to be affected.

Calls to DigitalGlobe were not returned.

“It’s hard to make the argument that the companies are better off separate, and I think anyone in government would agree with that as well,” said Andrea James, an industry analyst with Minneapolis-based Dougherty & Co.

The proposal comes as both companies prepare for prospective cuts to a $7.3 billion contract called EnhancedView that was awarded in 2010 to provide satellite imagery to theNational Geospatial-Intelligence Agency.

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