RUMOR: SKYPE FIRING EXECS TO REDUCE PAYOUTS

Skype has started to fire several of its executives in an effort to reduce payouts from its Microsoft purchase, Bloomberg reported on Monday. Among the execs being let go are vice presidents Christopher Dean, David Gurle, don Albert, and Russ Shaw, as well as chief marketing officer Doug Bewsher, and the head of human resources, Anne Gillespi. Two other execs from Skype’s Qik acquisition earlier this year — Ramu Sunkara and Allyson Campa — were also fired according to the report. This could possibly mean that the executives will lose any stock options that were not yet vested. Microsoft announced on May 10th that it was acquiring Skype for $8.5 billion, and the deal is still pending FCC approval.

LIGHTSQUARED SPRINT READY TO SIGN $20 BILLION DEAL

According to Bloomberg, LightSquared, the USD7 billion Long Term Evolution (LTE) open-access mobile network that will utilise satellite spectrum acquired by New York investment firm Harbinger Capital, is close to striking a USD20 billion deal with Sprint Nextel to share network construction costs.

The report, which cites two people familiar with the talks, indicates that the two operators are hoping to finalise terms on a 15 year contract which will allow LightSquared to roll out its network faster than expected. According to Bloomberg’s sources, who declined to be named, if the deal goes through, Sprint would initially receive as much as USD2 billion annually from LightSquared, to help pay for network equipment and construction costs. Subsequent payments would vary annually, based on the number of users on the LightSquared network and usage patterns. However, conflicting reports from Reuters indicate that the agreement with Sprint is more likely to cover an eight-year time-frame, rather than the 15 year period stated elsewhere.

The news comes just days after LightSquared reportedly held talks with AT&T regarding a deal to buy additional network capacity from the mobile carrier. Two people with knowledge of the discussions stressed that the initiative was still at a preliminary stage and may not result in a deal.

NOKIA CEO DENIES ACQUISITION TALKS WITH MICROSOFT

Nokia CEO Stephen Elop on Wednesday responded to reports that Nokia had agreed to sell its cell phone business to Microsoft for $19 billion. “We have a great plan for our future, and we’re focused on executing that plan,” Elop told Bloombergin an interview. “The rumors are all over the place. There’s no basis for them.”

According to Bloomberg’s report, Elop claims not only that a deal hasn’t been reached, but that Nokia has never discussed a potential acquisition with Microsoft.

AMAZON JUMPING INTO MOBILE PAYMENTS POOL

According to a report filed by Bloomberg, online retail giant Amazon is toying with the idea of launching a mobile payments service. Citing two anonymous sources, the publication notes that the service would “let consumers pay for goods in brick-and-mortar stores using their mobile phones.” Amazon is purportedly testing payment technologies based on NFC (Near Field Communications) in an effort to expand its Payments service. This is the company’s latest venture into the mobile world. Amazon officially opened its Appstore for Android on March 22nd and its Cloud Drive music storage/streaming service on March 29th. The company has not made any public statements about future plans involving mobile payments or NFC.

GOOGLE ASSERTING CONTROL OVER ANDROID

Bloomberg's Businessweekhas received word from "a dozen executives working at key companies in the Android ecosystem" that Google is actively working to gain control and final say over customizations of its popular mobile OS. That might not sound unreasonable, and indeed Google's public position on the matter is that it's seeking to stabilize the platform and ensure quality control, but it does mark a major shift from where Android started -- an open source OS that was also open to manufacturers and carriers to customize as they wish. Not so anymore, we're told, as apparently Mountain View is now demanding that content partnerships and OS tweaks get the blessing of Andy Rubin before proceeding. The alternative, of course, is to not be inside Google's warm and fuzzy early access program, but then, as evidenced by the company recently withholding the Honeycomb source code, you end up far behind those among your competitors who do dance to Google's pipe.

Things have gotten so heated, in fact, that complaints have apparently been made to the US Department of Justice. They may have something to do with allegations of Google holding back Verizon handsets with Microsoft's Bing on board, ostensibly in an effort to trip up its biggest search competitor. Another major dissatisfaction expressed by those working with Android code is that Google needs an advance preview of what is being done in order to give it the green light -- which, as noted by a pair of sources familiar with Facebook's Android customization efforts, isn't sitting well with people at all. Google and Facebook are direct competitors in the online space and it's easily apparent how much one stands to gain from knowing the other's plans early. As to the non-fragmentation clauses in licenses, Andy Rubin has pointed out those have been there from the start, but it's only now that Google is really seeking to use them to establish control.

RUMOR: SPRINT TO ACQUIRE T-MOBILE

Bloombergis reporting that Sprint is in talks to buy mobile rival T-Mobile. Citing multiple anonymous sources, Bloomberg claims discussions between Sprint and Deutsche Telekom, the owner of T-Mobile, have been taking place on and off for some time, and one of the major areas of dispute is T-Mobile USA’s valuation. Should Sprint and Deutsche Telekom eventually come to terms, the deal would reportedly give Deutsche Telekom a sizable stake in Sprint Nextel Corp. following the merger — up to 50%. Sprint declined to comment on the report, while a Deutsche Telekom spokesperson said only that the company “could sell all or part of the U.S. business, and all options are open.”

MICROSOFT PAYING NOKIA BIG MONEY IN WINDOWS PHONE 7 DEAL

According to Bloomberg, Microsoft Corp. will pay Nokia more than $1 billion to promote and develop Windows-based handsets as part of their smartphone software agreement, according to two people with knowledge of the terms.

Nokia will pay Microsoft a fee for each copy of Windows used in its phones, costs that will be offset as Nokia curtails its own budget for software research and development, said one of the people, who declined to be identified because the final contract hasn’t yet been signed. The agreement runs for more than five years, the people said.

“This gives Microsoft scale and allows Nokia to rip out costs,” said Colin Gillis, an analyst at BGC Partners in New York, who recommends buying Microsoft shares. “Microsoft is getting the platform boost that comes from acquiring a Nokia for about a billion dollars.”

BLACKBERRY PLAYBOOK TO RUN ANDROID APPS

Bloombergis reporting from multiple sources that the BlackBerry PlayBook will run Android applications. Earlier reports had the PlayBook running the Java VM Dalvik. Bloomberg has reported that RIM won’t be using Dalvik, but is looking elsewhere. With this news and RIM’s recent strategic moves, heavy rumors and sources say that the Playbook will have the ability to run over 130,000 Android applications.

RIM may be able to woo customers who would otherwise opt for alternative devices, said Chetan Sharma, an independent wireless analyst in Issaquah, Washington.

“It will be a shrewd move to let Android apps run RIM without any performance or user interface hiccups,” said Sharma in an interview. “It will make the RIM platform attractive to consumers as it lacks the strength of the rivals from an apps perspective.”

Marisa Conway, a spokeswoman for RIM, declined to comment. RIM has said it plans to introduce its tablet in the U.S. in the first quarter and then overseas.

RUMOR: APPLE LAUNCING iNEWSSTAND

Bloomberg is reporting Apple is in negotiations with various periodical producers to develop pricing strategies to bring content to users through a new storefront dedicated to periodicals, citing people "familiar with the matter".
One of the sticking points in the negotiations is the 30% cut Apple has traditionally taken in both the music and book arenas.

The new storefront could be launching before the holiday season, but Apple may hold it back until the launch of the next generation iPad. [Engadget]

RUMOR: APPLE TV TO STREAM NETFLIX MOVIES

Bloomberg is reporting that the upcoming Apple TV will stream Netflix movies.  Bloomberg cites three people familiar with the plans and states "The streaming service would be available on revamped version of Apple TV....users would pay a subscription fee to Netflix for the service." [Bloomberg Business Week]