Blackberry agrees possible sale

23 September 2013 Last updated at 16:44 ET

Struggling smartphone maker Blackberry has agreed in principle to be bought by a consortium led by Fairfax Financial for $4.7bn (£3bn).

Blackberry said in statement that Fairfax, its largest shareholder with about 10% of the stock, had offered $9 a share in cash to buy the company.

But Blackberry said it would continue to explore other options while negotiations with Fairfax continued.

On Friday, Blackberry announced 4,500 jobs cuts in a bid to stem losses.

The Canadian company said it expected to make a loss of up to $1bn after poor sales of its new handsets. In August, Blackberry said it was evaluating a possible sale.

On Monday, the company announced that it had "signed a letter of intent agreement under which a consortium to be led by Fairfax Financial Holdings Limited has offered to acquire the company subject to due diligence".

Continue reading the main story

It is easy with hindsight to see where things went wrong, much harder to say what Blackberry could have done about it"

End Quote

The statement continued: "Diligence is expected to be complete by November 4, 2013. The parties' intention is to negotiate and execute a definitive transaction agreement by such date."

However, Blackberry said it was not in exclusive talks with Fairfax and would continue to "actively solicit, receive, evaluate and potentially enter into negotiations" with other potential buyers.

Canadian billionaire Prem Watsa, Fairfax's chairman and chief executive, said: "We believe this transaction will open an exciting new private chapter for Blackberry, its customers, carriers and employees.

"We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to Blackberry customers around the world."

'End game'

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Brian Colello, analyst at Morningstar, said that taking Blackberry private would allow the company to reorganise without being under the glare of Wall Street investors.

He said: "Based on the company's disastrous earnings warning on Friday, I think a deal had to happen and the sooner the better. This is probably the only out for investors and the most likely outcome.

"The benefit to this sort of takeover is the ability for Blackberry and the consortium to reinvent the company without public scrutiny. It appears that the end game is going to be whether Blackberry can emerge as a niche supplier of highly-secured phones to enterprise customers and governments."

Ben Wood, chief of research at CCS Insight, also said that a deal with Fairfax would give Blackberry breathing space to assess its strategic options.

"Early indications suggest a retrenchment to the business market. Wider structural changes such as spinning off Blackberry Messenger and cutting back on hardware are also likely be carefully reviewed."

Blackberry's financial problems came to a head this year following disappointing sales of its new Z10 model smartphone.

Released in January - after many delays - the phone has failed to enthuse consumers.

Blackberry shares, which fell 17% on Friday after its jobs cut announcement, rose just over 1% on Monday.

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Google apologises for Gmail outage

24 September 2013 Last updated at 06:07 ET

Google has apologised for a temporary fault that affected millions of users of its Gmail service.

Up to half of users were affected, over 12 hours from 15:00 BST on Monday, with many taking to Twitter to complain.

Google said the delivery of some messages had been halted for a few seconds while others were "more severely delayed".

On Gmail's status dashboard, it said: "We're aware that prompt delivery is an important part of the Gmail experience.

"And today's experience fell far short of our standards."

Last month, Google experienced blackouts across all of its services.

And although they only lasted a few minutes, it saw worldwide internet traffic plunge by about 40%.

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Microsoft upgrades Surface tablets

23 September 2013 Last updated at 11:24 ET By Leo Kelion Technology reporter

Microsoft is updating its range of Surface tablets following weak sales of the original models.

The updates include faster processors and higher-resolution screens and cameras.

Both the ARM-based Windows RT version and Intel-powered Windows 8 edition are being upgraded.

The firm previously posted a $900m (£560m) writedown after building more of the first-generation RT versions than it could sell.

Analysts said demand for Microsoft's devices might continue to lag behind rival products.

However, they added that the firm's support for the product line was part of a long-term strategy that might ultimately pay off.

Windows-based tablets accounted for a 7% share of global shipments in the April-to-June quarter, according to a study by the tech advisory service Gartner.

By contrast, it said, Android-based tablets - including Samsung's Galaxy series, Android's Kindle Fires and Google's Nexus-branded range - had a 48% share, while Apple's iPads took 45% of the market.

Continue reading the main story

Despite poor sales for its Surface models - and a billion dollar writedown - Microsoft is showing it is still determined to be in the tablet game.

It was the Surface RT model which was the real problem, apparently failing to find an audience, while the Surface Pro did relatively well in its (high) price bracket.

So the big changes this time - a "fundamental revamp " in the words of Surface general manager Brian Hall - are in the RT, now known as Surface 2.

Mr Hall says almost every component has been replaced, resulting in a much faster yet thinner and lighter machine.

But the question remains - who is it for?

Not everybody, Microsoft admits, but a group of people who want to be able to mix work with play.

It is not competing on price with the growing range of Android tablets, so its sounds as though Microsoft is aiming at the same kind of people who use an iPad.

Mr Hall, though, sees it differently: "A lot of Androids are trying to do what iPad does at lower prices," he said, "but we want to make a unique contribution with productive tablets. When you think of Microsoft it's the combination of work and play."

The problem is that most Microsoft users seem to have felt that the original Surface was not playful enough, yet too flimsy to be a work machine.

In a world of falling PC sales, changing their minds is now the company's major challenge.

"Our outlook for the RT tablets is very low because consumers are still confused about what they are getting with the platform and we aren't seeing a big uptake in the business market," said Roberta Cozza, a research director at Gartner.

"The 'pro' [Intel-based] range may do a bit better. The release of a new docking station and other accessories will help.

"But they're still quite pricey so it's unlikely to be a huge leap forward."

Many were surprised when it was first revealed that Microsoft was going to make its own Windows hardware because of concern the move would damage sales of other manufacturers' PCs, encouraging them to focus efforts on rival platforms.

More memory

Both of the new tablets now feature displays capable of showing video in full 1080p high-definition resolution - a feature that was previously limited to the "pro" models.

The upgrade also sees the RT version gain a 3.5 megapixel front camera and a 5MP rear one - making them both capable of capturing 1080p video.

The pro mode, however, retains the 720p-resolution camera found in its predecessor.

The Intel-based version does get Intel's fourth-generation Core i5 processor, which Microsoft said should help it attain 60% better battery life than the first model.

Buyers also get the option of more memory than before with up to 512GB of storage and up to 8GB of Ram - allowing them to run more programs at once.

The RT version becomes one of the first devices to be powered by Nvidia's ARM-based Tegra 4 processor and now features a USB 3 port for faster file transfers. Microsoft said it should attain up to 10 hours of video playback.

Both models stick with a 10.6in (26.9cm) display, confounding rumours that the US firm would seek to launch a model to compete with the smaller iPad Mini and Nexus 7.

In addition, Microsoft has unveiled a thinner and lighter Touch Cover keyboard, which now has backlit keys, and promises to release a £165 docking station for the pro model next year to make it easier to attach it to an external monitor and other peripherals.

The RT Surface will cost between £359 and £439 while the cheapest pro models will be between £719 and £1,439 depending on the configuration. In both cases that is more expensive than prices for the original editions.

Retaining RT

Microsoft's decision to persevere with an ARM-based model comes despite the earlier writedown and complaints that the platform cannot run legacy software.

That means some high-profile programs are unavailable, including iTunes, the Chrome and Firefox browsers, the full version of Photoshop, many popular video games and many existing in-house software programs used by companies.

Taiwanese firm Asus announced in July that it was putting off plans to launch more RT devices because of this issue. Samsung, Acer and Lenovo have also shied away from the platform, although Dell continues to support it.

Using ARM-based chips does reduce costs and offer longer battery life. One expert suggested Microsoft might also want to keep RT alive to give it the option of merging it with its handset operating system at a later point.

"It's a long-term plan," said Chris Green, principal technology analyst at the Davies Murphy Group consultancy.

"It's about establishing a platform that could take four or five years to succeed in a similar way to the fact that early versions of Android didn't set the world on fire, but after its third or fourth iteration it became dominant and liked.

"However, running what are effectively three separate Windows platforms is fairly illogical and expensive, so I believe Microsoft will ultimately merge Windows RT with Windows Phone."

The release of the new Surface models is Microsoft's first hardware announcement since it revealed a 5.4bn-euro ($7.2bn; £4.6bn) planned takeover of Nokia's hardware division.

There are unconfirmed reports that the Finnish firm has been developing a Windows RT tablet of its own.

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Tesco enters tablet fray with Hudl

23 September 2013 Last updated at 05:29 ET

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Rory Cellan-Jones test-drives Tesco's new device

It's a place you might go to for tomatoes, tea or tinned tuna - but would you really go to Tesco in search of a tablet computer? The supermarket chain is confident that its shoppers will see the attractions of getting into the tablet game via a well-known brand.

But what does the arrival of the Hudl - for that is the name of the product the company is launching this morning - mean for the overall market?

What is immediately clear is that Tesco is taking its tablet very seriously. Unlike some cheap Android tablets launched by other unlikely firms - remember Next's attempt? - this looks a competitive and reasonably high-spec offering. It runs the latest version of Android, has a 1.5 GHz processor, an HD screen and expandable storage.

The 7in device looks at first sight like any other small Android tablet - the Tesco content is mostly hidden under a "T" logo at the bottom left. Tapping here takes you to services like online shopping and the Blinkbox on-demand film service, bought by Tesco a couple of years ago.

So where will it fit into an increasingly competitive market? From the Google Nexus 7 to the Amazon Kindle Fire, there is now plenty of choice in the £100-£200 range. The Hudl at £119 should compete well here - though it probably needs to be that cheap to make up for the fact that many consumers won't see it as a recognised electronics brand.

What is really significant about this new arrival is the way tablets are now becoming everyday devices, just three years after Apple launched the iPad and kick-started this revolution. Some forecasters now see sales of tablets overtaking sales of PCs by the end of this year.

Lower prices will accelerate that trend, though I'm still slightly puzzled by how Tesco can make any profit on the Hudl when it is priced at £119. After all, Amazon's Jeff Bezos told us last year that the Kindle Fire HD - at £159 - made not a penny in profit for his company. But Matt Atkinson, Tesco's chief marketing officer, told me that his product would definitely be commercially viable.

I suppose that each time a new entrant comes into the market they find that the components have become just a little cheaper, so they can offer similar products to the established players at a keener price.

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Tesco is set to launch a budget tablet computer

You might think that would spell trouble for the market leader Apple, but it has managed to keep on selling iPads very profitably despite the yawning price gap opening up with rival Android devices. The Apple brand remains very desirable - and the company won't have too many worries about its shrinking share of the market as long as it can keep profit margins high.

The other company which has tried to compete at the top end of the market, with tablets which aim to be work machines as well as playthings, is Microsoft. So far, its Surface has failed to make much of an impact on the market, with the company writing off $1bn after missing sales targets. But the company which first showed off the Tablet PC concept in 2001 - whatever happened to that? - isn't giving up. Tonight Microsoft will be unveiling two new Surface tablets - the firm which built its fortunes on the PC revolution knows that it must be part of this new wave of computing.

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Valve announce free SteamOS platform

23 September 2013 Last updated at 14:43 ET By Dave Lee Technology reporter, BBC News

Video games developer and publisher Valve has announced SteamOS, a free operating system it hopes will help bring PC gaming into the living room.

The code will be made freely available for manufacturers who want to launch their own gaming hardware.

The announcement is the first of three due this week as Valve lays out what it calls the "future" of gaming.

The company is widely anticipated to launch its own machine to run SteamOS, believed to be called the Steam Box.

The console could potentially disrupt a market currently dominated by the Sony PlayStation, Microsoft Xbox and Nintendo Wii.

Ahead of a hardware reveal, Valve outlined its plans for the Linux-based operating system that will be available for download "soon".

Continue reading the main story

Many PC games will not translate effectively to console controllers so this remains a challenge to overcome"

End Quote Piers Harding-Rolls IHS Screen Digest

"As we've been working on bringing Steam to the living room, we've come to the conclusion that the environment best suited to delivering value to customers is an operating system built around Steam itself," a message on Steam's website read.

"SteamOS combines the rock-solid architecture of Linux with a gaming experience built for the big screen."

Linux is a open-source operating system - meaning people can freely build-upon and adapt its source code.

Crucially, there are no licensing costs involved, so manufacturers can distribute Linux-powered machines more cheaply than those running systems such as Windows.

SteamOS will encompass Steam's already huge customer base, estimated to be about 50 million active users.

'Connect the dots'

Steam is Valve's distribution service through which it sells both its own games and those of its various publishing partners.

It began life in 2002 as a way for Valve to make it easier for users to update games, but it now is a significant channel for selling titles - and is also used as a community tool for setting up multiplayer matches and other online events.

Valve does not release sales statistics for games sold through Steam - but estimates from consultancy IHS Screen Digest suggest it is responsible for 75% of PC game sales, bringing in about $1bn (£620m) in 2012.

There are more than 2,000 games on the service.

However, despite the service's popularity, it is currently reliant on something of a sinking ship, argued Computer and Video Games' associate editor Rob Crossley.

"Valve is a very successful growing company within a market that is shrinking," he told the BBC.

"PC sales are falling, falling, falling. They've been falling for five quarters in a row now.

"Valve knows that in order to expand in the future it needs to provide the same amount of services on different devices, and the living room is easily the best next step for them."

Shrinking market

To this end, Valve has long sought to take Steam-powered gaming away from the PC.

In 2011, the company launched Big Picture mode, an interface designed for a games controller rather than the typical PC's keyboard and mouse, making it more suitable for use with TV screens.

The Steam Box, should it be announced later this week, is expected to enhance that effort further, possibly doing away with the traditional PC entirely.

Gabe Newell, Valve's co-founder, made his strategic intentions clear during a speech at a Linux developer's event last week.

He envisioned an environment where gaming moves with the user, whether they are playing at their PC, in their living room or on the move.

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Gabe Newell spoke to the BBC about Steam Box in March

"Right now, you're sort of in this bizarre situation where as soon as you sit on your couch, you're supposed to have lost connection with all of your other computing platforms," he told delegates.

"We really don't think the fragmentation around the physical location or around the input devices in terms of computation is necessary or desirable for software developers or consumers."

Piers Harding-Rolls, from IHS Screen Digest, said he believed this kind of gaming would be popular in the future - but that the Steam Box could be somewhat ahead of its time, and Valve's greenness in the living room market could see it trip up.

"Valve has little experience in commercialising consumer hardware - it's inevitable that it will make mistakes along the way," he told the BBC.

"While Valve has experimented with bringing games to a more TV-friendly user interface with its Big Picture mode, many PC games will not translate effectively to console controllers so this remains a challenge to overcome."

But he added that the concept behind Steam Box could could be a "highly disruptive" force in the future.

Follow Dave Lee on Twitter @DaveLeeBBC

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Minecraft adds OS GB terrain data

23 September 2013 Last updated at 18:25 ET By Matthew Wall Technology reporter, BBC News

Minecraft, the highly popular building and monsters video game, can now incorporate accurate Ordnance Survey terrain data of Great Britain in its blockwork virtual world.

The game's 33 million players can build worlds atop of geographically accurate landscapes representing 224,000 sq km (86,000 sq miles) of Britain.

The GB Minecraft world was created in two weeks by intern Joseph Braybrook working with OS's Innovation Labs team.

It uses free OS OpenData products.

"We think we may have created the largest Minecraft world ever built based on real-world data," said Graham Dunlop, OS Innovation Lab Manager.

"The resulting map shows the massive potential not just for using Minecraft for computer technology and geography purposes in schools, but also the huge scope of applications for OS OpenData too."

Minecraft, created by Swede Markus "Notch" Persson in 2009, is a virtual world made up of cubes of different materials, such as rock, sand and lava.

Players can co-operate in building shelters, making things from raw materials and fending off a variety of monsters.

The OS GB world contains more than 22 billion Minecraft blocks.

Once players have downloaded the map into Minecraft, they enter the 3D virtual world through OS's head office in Southampton and from there can recreate real-life features, such as Stonehenge, or imagined buildings such as Hogwarts castle.

The OS map products - OS Terrain 50 and OS VectorMap - combine to create a 3D model of the earth surface overlaid with features such as water, woodland and roads.

Players can build their own structures on top of the realistic terrain.

As OS is the GB's national mapping authority, its data includes the mainland and surrounding islands but not Northern Ireland, the Republic of Ireland, Isle of Man or Channel Islands.

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Ebay and Argos in retail tie-up

24 September 2013 Last updated at 05:02 ET

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Selected eBay purchases can be collected from certain Argos stores - bosses from the companies say it means "consumers win"

Shoppers will soon be able to order selected goods from eBay and pick them up from an Argos store.

The "click-and-collect" scheme is being piloted by the e-commerce giant in about 150 shops belonging to the high street chain, which is part of Home Retail Group.

At least 50 eBay merchants are taking part in the scheme but have not been named yet.

The move may help eBay challenge Amazon's Locker delivery.

The Amazon scheme lets people order online then pick up their package from a growing number of secure passcode-protected lockers situated in local shops or other public venues.

Both Amazon, eBay and other online retailers are also involved in the separate Collect+ scheme, which allows parcels to be collected from participating corner shops, avoiding the risk of missing a delivery.

One retail analyst said more of these tie-ups could be expected.

"Pure-play home-delivery e-commerce can actually be profoundly inconvenient," Bryan Roberts, from the consultancy Kantar Research, told the BBC.

"There's nothing convenient about having to queue up at the post office for 30 minutes every Saturday morning.

"Workplace delivery is an option, but an increasing number of employers are getting frustrated with acting as e-retailers' unwilling fulfilment partners.

"So, it makes sense to forge a partnership with national retailers, and we'll see more of this because it marries the benefits of online shopping - competitive prices and massive ranges - with the convenience of the real-world store you can pop into on your way home."

Argos has been expanding its own click-and-collect service, allowing shoppers to have an item held back that might be in short supply or ordered in if not in stock.

There is a risk that the eBay tie-up could cannibalise some of those sales, and Argos noted the tie-up was only a trial set to last about six months.

"Having pioneered check-and-reserve in the year 2000, it now accounts for around a third of our business and continues to grow," said the firm's managing director, John Walden.

"[Ebay] is already a strong partner with Argos and a logical partner for the trial.

"We look forward to assessing the opportunity for Argos to provide fulfilment for eBay's merchants, including the operational requirements, attractiveness to sellers and consumers, and opportunity for increased customer footfall."

In May, Argos reported its first rise in annual sales in five years, largely thanks to online sales and the popularity of its "check and reserve" service.

Ebay also announced it planned to test a one-hour delivery service in London some time in 2014, but said it had no other details to share at this time.

The firm already runs the eBay Now service in New York and San Francisco, allowing shoppers to have goods delivered from ToysRUs, Urban Outfitters, The Home Depot and other local stores within about 60 minutes of completing their order for a $5 (£3.10) fee.

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GTA V gamers warned about bug

The makers of Grand Theft Auto V (GTA V) have warned players about parking cars in garages in the game until a bug can be fixed.

Rockstar Games say they are looking into a glitch that sometimes causes cars to lose upgrades or completely disappear from safe houses.

In a support forum developers said they are "looking into" the problem.

"Unfortunately, we do not currently have a workaround to recover a car if it is missing," they added.

The main characters in GTA V are Trevor (left), Franklin and Michael (right)

"In the meantime, please try to avoid parking a car in a garage, driving one already in a garage, or getting in a default vehicle, when playing as a character other than the one with your upgrades."

Grand Theft Auto V, which is set in "a satirical reimagining of modern Southern California", is the first game in the series that allows players to jump in and out of the lives of three simultaneously playable lead characters.

Rockstar suggested the issue may occur if players drive different characters' personal vehicles.

They added: "Also please note that vehicles saves in the garage of one safe house (Franklin's Aunt's) may not show up in the garage of a different safe house (Franklin's Vinewood Hills)."

It has been reported that GTA V has taken more than $1 billion (£624 million) in worldwide sales since being released on 17 September.

Rockstar suggested players should subscribe to their support site feed for automatic updates on the issue.

Follow @BBCNewsbeat on Twitter

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Apple to give Breaking Bad refunds

24 September 2013 Last updated at 07:09 ET

Apple is refunding fans of TV show Breaking Bad after a mix-up over the number of episodes in its final season.

The confusion meant many people effectively paid twice for the final 16 episodes of the hugely popular show.

This was because Apple charged people who bought a "season pass" twice - once for each eight-show chunk as they were billed as separate seasons.

Apple has sent out emails giving people an iTunes voucher for the extra cash they spent.

Breaking Bad's fifth season was split into two halves by cable channel AMC with each eight-episode section being shown a year apart. The second half of this season, which sees the show reach a conclusion, was first broadcast and made available online on 11 August.

The split caused problems on iTunes where many people had paid to see the closing series expecting that this would include all 16 episodes.

When Apple charged people again for the second eight episodes, called The Final Season, many complained and one outraged fan took legal action over the extra charge.

Now Apple has refunded the extra $22.99 (£14.40) levied on those people who were charged extra to watch The Final Season. Those who bought a season pass for the fifth season will now be able to watch all 16 episodes.

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China 'unblocks' Twitter and others

24 September 2013 Last updated at 07:49 ET

The Chinese government could be about to relax its strict censorship laws, albeit only in a small area of one of its cities.

The South China Morning Post reports that Facebook, Twitter and other websites will be unblocked in a free-trade zone of Shanghai.

An unnamed official said the move was to make foreigners "feel at home".

Facebook and Twitter have been blocked since 2009, following riots which the government blamed on social networks.

The Chinese government routinely censors the internet and blocks access to websites it deems inappropriate or politically sensitive.

At home

According to the China Internet Network Information Center (CNNIC) the country now has more than 591 million internet users and 460 million mobile web users.

The South China Morning Post report names Facebook, Twitter and the New York Times as sites that will be unblocked in the zone that is due to be launched at the end of this month.

The paper quotes a government official explaining that the relaxation is to make foreign visitors feel more at home.

"If they can't go on to Facebook or read the New York Times, they may naturally wonder how special the free-trade zone is compared with the rest of China," the source said.

The paper also reports that the government is inviting bids from foreign telecoms firms to bid for licences to provide internet services in the zone.

While some see the move as a crumbling of the famous Great Firewall of China, others are not so impressed.

"Small steps forward in China may be good news, but what is really important is that US web companies do not co-operate with any Chinese government requests," said Jim Killock, director of the Open Rights Group.

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