Zacks' 7 Best Stocks for May, 2013
FREE Report for Zacks.com
Visitors Only

They're hand-picked from the list of Zacks Rank #1 Strong Buys. Our experts predict that their prices will jump the soonest.

Today, you can see them free.

Close This Panel X

Are you a new Zacks Member or a visitor to Zacks.com?

Recent Quotes

No Recent Quote currently available

My Portfolio

My Portfolio Tracker

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts. Set yours up today.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Stocks on the Move 05/17/2013

Company Name Symbol %Change
VIASAT INC VSAT
19.35%
OLD SECOND B OSBC
5.76%
GAMCO INVEST GBL
4.61%
CORNING INC GLW
4.47%
SYNCHRONOSS SNCR
4.23%

Microsoft Buys R2 Studios Inc.

by Zacks Equity Research

January 04, 2013 | Comments : 0 Recommended this article: (0)

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Microsoft Corp. ( MSFT - Analyst Report ) recently acquired a home and entertainment technology startup, id8 Group R2 Studios Inc. for an undisclosed sum. The acquisition is an attempt by Microsoft to expand its presence in the home by combining entertainment with other functions.

Silicon Valley entrepreneur, Blake Krikorian started R2 Studios Inc. in 2011. It recently launched an application for controlling heating and lighting systems in the home from smartphones powered by Google’s ( GOOG - Analyst Report ) Android OS. Through this acquisition, Microsoft also acquired some patents related to controlling electronic devices.

Other tech giants such as Google and Apple ( AAPL - Analyst Report ) were also looking to acquire this startup company. The interest shown by key industry players indicates increasing focus on home electronics with a view to create multi-functional hubs.

Microsoft, for the past few years, has been trying to evolve its Xbox 360 units into something more than just a gaming console. As a part of this initiative, it is now offering digital downloads and live TV apart from games. Thus, the acquisition makes sense for Microsoft as it can leverage its position in the home entertainment segment to expand into other areas through the acquired patents.

Technology companies have been eyeing the digital home entertainment market for some time now, not only because of the good growth prospects but also because of several new technologies (including the cloud) that makes this simpler. The introduction of high-definition (HD) technology has increased the popularity of interactive games and video on demand is making this segment more attractive to consumers. However, home entertainment units like audio equipment and video game consoles are being cannibalized by tablets and smartphones. Therefore, it makes sense for companies in the segment to offer combined technologies to market share and also offer growth opportunity.

Whether Microsoft can put the patents to good use to edge past other tech giants in the attractive home entertainment market remains a wait-and-see story.

Microsoft reported revenue, excluding deferrals, of $16.01 billion in the first quarter of fiscal 2013, down 11.4% sequentially and 7.9% from the year-ago period. Revenues also missed the consensus by 2.5%.

Microsoft, Apple and Google have a Zacks #3 Rank (Hold).

Email Print Share Rate Pos Rate Neg

Read/Post Comments (0) | Recommended this article (0)

Please login to Zacks.com or register to post a comment.

Zacks Research is Reported On:

Zacks Investment Research

is an A+ Rated BBB

Accredited Business.