XM Satellite raises rates
New York XM Satellite Radio Holdings Inc. announced a price increase Monday that puts the price of its basic service package in line with its smaller competitor, Sirius Satellite Radio Inc. The news sent the stocks of both companies sharply higher.
XM said it would raise the price of its basic service to $12.95 per month from $9.99 beginning April 2, matching Sirius’ monthly fee. After the price increase, XM’s basic service will also include a premium talk channel with the shock jocks Opie & Anthony, which had previously cost $1.99 extra per month.
Investors have been intrigued by the satellite radio companies but concerned that it would take a long time for them to recoup the millions they are spending on building up their programming portfolios. Among the largest deals so far are a $500 million deal Sirius signed to get Howard Stern’s show, and a $650 million deal XM did with Major League Baseball. The price increase seemed to reassure investors that there was room to increase future revenues.
Ex-WorldCom boss denies accusations
New York Former WorldCom chief Bernard Ebbers took the witness stand Monday and flatly denied he was ever made aware that accountants were cooking the books at the company.
Under questioning from his top lawyer, Ebbers explicitly refuted the testimony of former finance chief Scott Sullivan, who claimed earlier in the trial that Ebbers pressured him to falsify company financial statements.
“I wasn’t advised by Scott Sullivan of anything ever being wrong,” Ebbers said. “He’s never told me he made an entry that wasn’t right. If he had, we wouldn’t be here today.”
The matter-of-fact denial was perhaps the most dramatic moment in the five-week-old trial of Ebbers, who is accused by the government of orchestrating the $11 billion fraud that sank WorldCom in 2002.
Placing Ebbers on the witness stand to defend himself represented a huge gamble for the defense. Ebbers was questioned by his chief defense lawyer, Reid Weingarten, for about four hours. The cross-examination by federal prosecutors began later Monday afternoon.
Disney-Weinstein pact could end this week
Los Angeles An agreement to end the 12-year partnership between independent film producers Bob and Harvey Weinstein and the Walt Disney Co. could come as early as this week, sources familiar with the talks said Monday.
Meetings are scheduled to discuss the final terms of a deal that would see Disney keep the Miramax name and library of more than 800 films and allow the Weinsteins to put together financing for a new production company.
Under the terms being discussed, Disney would make substantial payments to the Weinsteins for bonuses they are entitled to under the terms of their contract, plus compensation for interests the brothers have in current film projects, confirmed one source who talked on condition of anonymity.
Details of the talks have been reported over the past several weeks by sources familiar with negotiations who have requested anonymity. Spokespeople at Miramax and Disney declined comment Monday.
Disney has discussed in the past its desire to return Miramax to its specialty film roots, producing or acquiring inexpensive movies with large upside potential. While Miramax has given Disney past profits, a library worth billions and a lot of Oscar glory, Disney has complained about the costly ambitions of the Weinsteins.
Goodyear will sell farm tire business
Akron, Ohio Goodyear Tire & Rubber Co., the nation’s largest tiremaker, said Monday that it has agreed to sell its farm tire business for $100 million to an Illinois tire company.
The farm business is part of Goodyear’s rebounding North American division, which made its first profit since 2002 earlier this year. The farm business employs about 800 people, mostly at a plant in Freeport, Ill., that makes tires used on tractors and other farm machinery, said Goodyear spokesman Ed Markey.
The deal with Titan International Inc. includes the plant, property and equipment. It must be approved by federal regulators and by members of the United Steelworkers of America.
“Once that is done, Goodyear will be out of the farm business in North America,” Markey said.
Markey said Goodyear was unaware of how the sale might impact employees because Titan will make those decisions.
Titan president Maurry Taylor said his company has offered to extend the current labor agreement Goodyear has with some 700 hourly employees through 2010. The contract is due to expire in July 2006. The only changes would be a salary and vacation time cap for new employees, he said.