Media Roundup: ConnectU Gets $65 Million From Facebook, Sirius XM May File for Bankruptcy and More
ConnectU gets $65 million from Facebook -- ConnectU, a social network, has won a $65 million settlement from Facebook. ConnectU was a social networking site created by two Harvard students that had originally employed Facebook founder and fellow Harvard student Mark Zuckerberg to write code. The company alleged that Zuckerberg took the code originally intended for ConnectU and instead created Facebook. The law firm used by ConnectU accidentally leaked the amount of the settlement in a newsletter. It is unclear how much of the settlement is in cash and how much is in Facebook stock options. [Source: Los Angles Times]
Sirius XM may file for bankruptcy -- The satellite radio company that narrowly avoided Justice Department interference at its creation, Sirius XM is allegedly preparing to file for bankruptcy. Service is unlikely to be interrupted, but the company may be forced to cancel some of its larger talent contracts. The company owes $175 million in debt payments at the end of the month. [Source: New York Times]
New York Daily News stops matching employees' 401(k) -- In a memo to employees, CEO Mark Kramer has announced that the company is no longer matching employee 401(k) contributions. With estimated annual losses figuring between $15 and $20 million, the Daily News will save $1 million with the move. Because the company does not have a pension plan, the 401(k) plan is the only means the company provides employees to save toward retirement. [Source: New York Post]
Marvel to release motion comics -- Marvel Comics, publisher of X-men, Spiderman and other popular titles, will release animated comics for purchase on iTunes. The "motion comics" are different from traditional cartoons because the comic artists original art is used as opposed to a facsimile drawn by an animator. Each panel is independently animated and dialog is spoken by voice actors. [Source: ReadWriteWeb]
Nearly 40 percent of channels to make digital switch early -- Despite an effort by Congress to delay to the transition to digital television, many channels will be making the switch early. Many stations wish to avoid taking on the extra cost required to broadcast in both digital and analog at the same time. The FCC will publish a list of the stations that are ending analog broadcasts on its Web site. [Source: Wall Street Journal]
Sega downsizes -- The Japanese branch of the video game publisher most famous for the Sonic the Hedgehog game series has announced a number of cost-cutting measures. The company will trim 20 percent of its research staff and cut 560 of its 3,127 employees. Sega also plans to close 110 of its 450 arcades in Japan. [Source: Game|Life]