Johnson named Senate banking chairman

Microsoft beat analysts' earnings expectations, thanks in part to sales of the company's Xbox Kinect motion sensors.
Microsoft beat analysts' earnings expectations, thanks in part to sales of the company's Xbox Kinect motion sensors. (Andrew Harrer)
Friday, January 28, 2011

The Senate named Tim Johnson (D-S.D.) the new chairman of its Committee on Banking, Housing and Urban Affairs.

Johnson, who is serving his third term in the Senate, succeeds Christopher J. Dodd (D-Conn.), who retired earlier this month.

"As we continue to come out of the worst recession since the Great Depression, I am committed to an agenda to restore our economy, make our financial regulations world class and ensure that consumers and investors are meaningfully protected," the new chairman said in a written statement.

"I am committed to working with my colleagues on both sides of the aisle, the White House, regulators, consumer groups, industry and international regulators on oversight of reform."

- Felicia Sonmez


Verizon deal to expand its cloud services

Verizon Communications, the second-largest U.S. phone carrier, agreed to buy Terremark Worldwide for $1.4 billion as it expands services that let corporate customers store data and programs off-site.

The cash deal, which values Terremark at $19 a share, represents a 35 percent premium over the company's closing share price. New York-based Verizon said it plans to complete the deal this quarter.

Verizon is expanding its business that allows companies to store their data in the "cloud," or server computers maintained by other companies that provide less-expensive access to electronic records and software. The acquisition, which brings on corporate and government customers, is part of a broader strategy to make customers' information, including music, personal data and corporate data, available across devices and locations, Verizon said.

- Bloomberg News


Amazon falls short of revenue target

Amazon.com uncharacteristically missed Wall Street's revenue target in the fourth quarter, sending the stock tumbling and showing that not all Internet companies benefited equally from the holiday shopping season.

Expectations were high, especially because other consumer-oriented technology companies, such as Google and Netflix, wowed Wall Street with their results.

The revenue miss jolted investors, signaling that expectations were running too hot for a company whose stock price had jumped nearly 75 percent since its 52-week low of $105.80 in July.

Amazon shares fell 9 percent in after-hours trading.

- Associated Press

Microsoft profits on Xbox Kinect, Office sales

Microsoft, the world's largest software maker, said second-quarter profit topped analysts' predictions as corporate customers bought more Office and server programs and consumers purchased Xbox Kinect motion sensors.

Net income was $6.6 billion, about flat compared with the same period a year ago. Sales rose to $20 billion from $19 billion.

- Bloomberg News

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