|HP CEO Meg Whitman.|
On Thursday, AT&T ( T) announced that it expects to take a $4 billion pretax charge in the fourth quarter to reflect breakup fees associated with its controversial merger with T-Mobile USA. The proposed deal had run into opposition from the Federal Communications Commission and the Department of Justice. AT&T and T-Mobile's parent company, Deutsche Telekom ( DT), withdrew their applications for FCC approval of the deal earlier this week, focusing, at least for now, on obtaining antitrust clearance from the DoJ. The breakup fee, however, suggests that the deal's prospects look bleak, although this hardly spells the end of the world for AT&T, according to Bernstein Research analyst Craig Moffett. "For AT&T, this represents an incremental step towards resolution, and arguably at a marginally lower break-up cost than some had feared," explained Moffett, in a research note released on Thursday. "The earlier this issue is resolved, the better." There had been chatter that the breakup package could be valued at $6 billion. In a news release, AT&T said the $4 billion charge would include $3 billion in cash and $1 billion in spectrum. Shares of AT&T closed down 14 cents, or 0.51%, at $27.41 on Friday.
Nokia Siemens Networks announced plans to cut 17,000 jobs, 23% of its global workforce, on Wednesday, but said that no decisions have yet been made on the future its almost 3,850 U.S. employees. The company is a joint venture of Finland's Nokia ( NOK) and Germany's Siemens ( SI). Speaking during a conference call on Wednesday morning, Nokia Siemens Networks CEO Rajeev Suri opted not to provide country-specific breakdowns on the cuts. "We simply cannot do so until we complete country-level plans and reach the appropriate moment in local consultation processes," he said. Nokia shares closed down 18 cents, or 3.29%, at $5.29 on Friday.
Online radio company Pandora ( P) reported a doubling of its third-quarter revenue after market close on Tuesday, but offered a weak outlook. Pandora's revenue grew 99% year over year to $75 million in its October quarter. The company's adjusted profit came in at 2 cents a share. Analysts were looking for revenue of $71 million and a loss of 1 cent per share. Total listener hours for the period doubled, to 2.1 billion. For the current quarter ending in January, Pandora forecast an adjusted loss ranging from 2 to 4 cents a share on revenue of $80 million to $84 million. Wall Street's consensus view was for a loss of 2 cents a share in the fiscal fourth quarter on revenue of $82.3 million Pandora's stock closed up 27 cents, or 2.57%, at $10.78 on Friday.
Salesforce.com ( CRM) brings its Cloudforce customer event tour to New York's Javits Center on Wednesday. Also, telecom component specialist Finisar ( FNSR) reports its fiscal second-quarter results after market close on Wednesday. Semiconductor maker Avago Technologies ( AVGO) posts its fourth-quarter numbers on Thursday. -- Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: firstname.lastname@example.org.