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Many retailers fell apart this holiday season, their registers ringing up far less of the holiday cheer than they’d have liked.  Companies were cutting staff. Cash was being conserved.  Spending, especially on premium products was way down.  Apple, despite the so called “Apple Tax,” the name sometimes spitefully applied to the higher pricing on Apple’s products, bucked the trend.   Earnings for the period ended December 27th, while shadowed with some elements of mixed quality, handily beat expectations. 

For the first quarter of Fiscal 2009, Apple reported its best revenue result of all time.  Total sales for the quarter crossed past $10 billion to $10.17b.  Year over year, the gain was 5.8% compared to last year’s sales of $9.6b.

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The Tribune Co. got into trouble, ultimately seeking protection through bankruptcy, because it wasn’t able to sell off assets fast enough, or at high enough prices, to service debt. The New York Times, though carrying a far more management debt load, wasn’t going to risk making similar mistakes.

The venerable media company, which has struggled along with its industry,  agreed this week to borrow $250m from Mexican telecom billionaire Carlos Slim Helú (bio).

Upwards of 90 percent of the Times Co.’s revenue comes from its news media businesses. The relative lack of diversification, and simultaneous dependence on advertising in the currently weak market, has squeezed operating profits heavily. Click to Read More

Much is relative.  Last week was bad for Circuit City;  on a comparative scale, not so much for gamer, Midway Games. Despite the crippling pressure of massive lingering debt potentially due ahead of its time, the company managed to do what the big retailer that’s sold their games couldn’t: buy more time.

Triggered by “change of control provisions” put into play when majority shareholder Sumner Redstone liquidated his position, Midway’s been facing down the prospect of Noteholder repurchase rights that, if exercised, could easily bankrupt the company.

At the end of December, Midway managed to reach a short term extension agreement with the holders of 7.125% convertible notes due in 2026.  Holders of Midway’s other class of notes (6% Notes due a year earlier) were holding out.

Thursday, January 15th, the 6% Noteholders also agreed to terms.  Click to Read More

It’s hasta la vista for beleaguered electronics giant Circuit City.  The 60 year old company, which declared bankruptcy in November, was unable to agree to terms with a buyer in time to meet a Friday deadline.  Rather than seeking an extension, that likely would have only briefly prolonged life, the company will liquidate.  765 retail stores in Canada may still be sold, and are looking at January 23rd offer deadline,  but 567 U.S. stores are gone, effective March 31st.  Thousands of jobs will go with them. The merchandise sales will begin tomorrow.

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Yahoo’s hiring of Carol Bartz on the 13th officially filled the company’s leadership vacancy.  An SEC filing Thursday filled in the gaps on some of the details in the deal she struck.  The 8K filing includes the offer and complete terms.  What’s it cost to recruit a high profile CEO? Hint, it’s not cheap (though many elements are tied closely to performance). All said and done, bonuses and buyouts included and vesting periods set aside, there are seven zeros in the total number.  In bullet-point form:

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The video game industry isn’t recession proof.  Weaker than expected results in August and September confirmed that.  Comments from NPD’s Michael Klotch at a game summit at SMU’s law school validated it further yesterday.  But, with the official 2008, and December, results now tallied – there’s plenty for companies to be happy with.  Growth hasn’t stopped, it’s simply slowed. It’s more measured,  but monthly, and annually, the results are still trending positively for the industry (even as some individual companies struggle). One out four dollars spent on entertainment in the U.S. goes to gaming, NPD’s Klotch says.

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Movielink and CinemaNow were among the early entrants to pace digital movie delivery.  Investors ponied up tens of millions to the promise: movies beamed on demand straight to viewers over the Internet.  Movielink and CinemaNow both burned out; ideas ahead of the market opportunity.

Blockbuster and Sonic Solutions stepped in in each case to opportunistically take advantage of the early birds’ failures; each buying up the assets and content libraries for pennies on the dollar.  Blockbuster bought Movielink for $6.6m in 2007.   Sonic Solutions grabbed CinemaNow last month for about half of that.

Now, in a new alliance, Blockbuster and Sonic will pool their resources and strengths in a joint venture positioned to try and carry them both forward into the eventual digital delivery transition.

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