Zynga shares slide after privileged status with Facebook ends

(Reuters) - Shares of gaming company Zynga Inc fell as much as 10 percent, a day after the "Farmville" creator reached an agreement with Facebook Inc that reduces its dependence on the social networking giant.


The companies reported in regulatory filings on Thursday that they have reached an agreement to amend a 2010 deal that was widely seen as giving Zynga privileged status on the world's No.1 social network.


Zynga gets a freer hand to operate a standalone gaming website, but gives up its ability to promote its site on Facebook and to draw from the thriving social network of about 1 billion users.


"Although Zynga investors have reacted negatively to Thursday's announcements so far, we view them as a long-term positive for both companies," Wedbush Securities analyst Michael Pachter said in a note to clients.


"Zynga now has an advantage to offer more payment options which could result in additional subscribers who are not Facebook users," he said, maintaining his "outperform" rating and price target of $4 on the stock.


Both internet companies have been trying to reduce their interdependence, with Zynga starting up its own Zynga.com platform, and Facebook wooing other games developers.


In recent quarters, fees from Zynga contributed 15 percent of Facebook's revenue, while Zynga relies on Facebook for roughly 80 percent of its revenue.


Francisco-based Zynga's shares were down 7 percent at $2.44 in morning trading on the New York Stock Exchange on Friday.


Facebook shares were down more than 1 percent at $26.98.


(Reporting By Aurindom Mukherjee in Bangalore; Editing by Don Sebastian)


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Saints' Vilma, Smith attend Williams hearing

WASHINGTON (AP) — Right from the start, the NFL said Gregg Williams was in charge of a pay-for-pain bounty system with the New Orleans Saints.

The former defensive coordinator — who told the league about others' involvement — was being cross-examined Friday by lawyers for players appealing their suspensions in the case.

And two of those players, Saints linebacker Jonathan Vilma and defensive lineman Will Smith, attended Williams' session.

"We all know why we're here today," Vilma said Friday on his way into the hearing.

The hearing is part of the latest round of player appeals overseen by former NFL Commissioner Paul Tagliabue. Former Saints assistant coach Mike Cerullo faced questions Thursday, when lawyers for the league and for players spent more than nine hours in a Washington office building.

Tagliabue and various lawyers declined to comment Thursday or Friday.

Vilma and Smith traveled to Washington after playing in New Orleans' 23-13 loss at Atlanta on Thursday night.

Neither player was required to attend Friday, but Smith said this week that "part of the things that we wanted all along was to face our accusers."

Vilma and Smith — along with two former Saints, free-agent defensive lineman Anthony Hargrove and Cleveland Browns linebacker Scott Fujita — were suspended by the NFL for the Saints' cash-for-hits program that the league says Williams ran from 2009 to 2011.

Smith, suspended four games, and Vilma, suspended for the entire current season, have been playing while their appeals are pending.

The NFL has described Vilma and Smith as ringleaders of a performance pool designed to knock targeted opponents out of games. The league has sworn statements from Williams and Cerullo saying Vilma offered $10,000 to anyone who knocked quarterback Brett Favre out of the NFC championship game at the end of the 2009 season.

NFL Commissioner Roger Goodell issued the initial suspensions, which also included a full-season ban for Saints head coach Sean Payton.

Lawsuits brought by Vilma and the NFL Players Association to challenge Goodell's handling of the case, including his decision in October to appoint Tagliabue as the arbitrator for the appeals, are pending in federal court in New Orleans.

On Thursday, U.S. District Judge Ginger Berrigan gave the parties until Monday to answer questions about whether the NFL's collective bargaining agreement prevents a commissioner from handing out discipline for legal contact, and whether the CBA's passages about detrimental conduct are "ambiguous, hence unenforceable."

In March, the NFL announced that its investigation showed the Saints put together a bounty pool of up to $50,000 to reward game-ending injuries inflicted on opponents. "Knockouts" were worth $1,500 and "cart-offs" $1,000 — with payments doubled or tripled for the playoffs, the league said.

According to the league, the pay-for-pain program was administered by Williams, with Payton's knowledge. At the time, Williams apologized for his role, saying: "It was a terrible mistake, and we knew it was wrong while we were doing it."

Later that month, Payton became the first head coach suspended by the league for any reason — banned for all of this season without pay — and Williams was suspended indefinitely.

Williams was known for his aggressive, physical defenses as a coordinator for Tennessee, Washington, Jacksonville and New Orleans, and during his time as head coach of Buffalo. In January, he was hired by St. Louis to lead their defense.

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Connect with Howard Fendrich on Twitter at http://twitter.com/HowardFendrich

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MacFarlane surprises UCLA class, announces contest

LOS ANGELES (AP) — Oscar host Seth MacFarlane is inviting college students to join him on stage at the Academy Awards.

The creator of Fox's "Family Guy" made a surprise appearance at UCLA to announce a contest sponsored by the Academy of Motion Picture Arts and Sciences and MTV that will allow winning college students to appear on the Feb. 24 Oscar telecast.

The contest invites students to submit videos on the academy's Facebook page describing how they'll contribute to the future of film. At least six winners will serve as trophy carriers on the Oscar show, replacing the leggy models who usually perform the duties.

MacFarlane spent 40 minutes leading the undergraduate film and television class at UCLA's Westwood campus on Wednesday as part of MTV's "Stand In" series, which brings celebrities to colleges as guest lecturers.

"In re-imagining what we want the Oscar show to be, we wanted everyone appearing on that stage to feel a deep commitment to film and its legacy, and most importantly, its future," said Oscar telecast producers Craig Zadan and Neil Meron in a statement. "That was the impetus in creating this special honor for young film students who will inspire a new generation to create the films that will be honored in the future."

The contest is also aimed at drawing younger viewers favored by advertisers to the Oscars' aging TV audience. Like UCLA student Abby Smith, who immediately pulled out her smartphone to share the moment on Facebook when MacFarlane appeared before her class.

"Seth MacFarlane is speaking to my film lecture for the next hour," Smith posted. "I'm having a panic attack."

The 39-year-old entertainer urged the aspiring filmmakers and show-runners in the class to make a "commercially viable student film" before leaving school, adding that "Family Guy" was based on his own student film.

And MacFarlane said "Family Guy" could once again become a film. He said he's already come up with a concept for a feature-length movie and promised "it will happen at some point."

MacFarlane cheekily described the Academy Awards as "a crazy little variety show" and said "all I can do is do what I think is funny and most entertaining."

"The Oscars is a tricky venue," he said. "The (hosts) who have not done well, I would classify them as a noble failure, an honorable failure, because at least they were trying something new... If I can do it without torpedoing my career and getting drummed out of the business... All I can do is my very best."

He paused a beat, and added, "Lame (expletive) answer."

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MTV is owned by Viacom Inc.

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AP Entertainment Writer Sandy Cohen is on Twitter: www.twitter.com/APSandy.

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Jewel parent says sale talks proceeding













 


Exterior of Jewel-Osco's first "Green Store" located at 370 N. Desplaines in Chicago.
(Antonio Perez / November 29, 2012)





















































Supervalu, the Minneapolis-based parent of Jewel-Osco said sale talks are proceeding after stock closed down more than 18 percent Thursday, to $2.28.

The beleaguered grocery chain was likely moving to combat reports that sale talks with suitor Cerberus Capital Management had stalled over funding.

"The company continues to be in active discussion with several parties," according to the statement. "There can be no assurance that this process will result in any transaction or any change in the Company's overall structure or its business model."

Supervalu, the third-largest U.S. grocery chain, has acknowledged sale talks since the spring. The company has been closing stores and cutting jobs as it has underperformed competitors like Dominick's parent Safeway and Kroger.

If Supervalu does not sell to Cerberus, it may have to restructure on its own or sell off individual assets, which could have big tax consequences, Bloomberg said.

Reuters reported last month that buyout firm Cerberus was preparing a takeover bid for Supervalu, the third-largest U.S. supermarket chain.

Cerberus officials could not be reached immediately for comment.

-- Reuters contributed to this report

In addition to Jewel, Supervalu owns Albertsons, Cub and other regional grocery chains.

SVU Chart

SVU data by YCharts

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Manager where Powerball ticket sold thinking 'Christmas bonuses'









Two lucky ticket holders — one in Arizona and another in Missouri — are waking up Thursday to new lives as multimillionaires after the largest Powerball jackpot drawing ever.


Powerball officials said two tickets matched all six numbers to win the record $587.5 million jackpot. The numbers drawn for Wednesday night, for the second-highest jackpot in U.S. lottery history, are 5, 16, 22, 23, 29. The Powerball is 6.


It was not clear whether the winning tickets belonged to individuals or were purchased by groups.











One of the winning tickets was sold at a Trex Mart convenience store in Dearborn, Mo., about 35 miles north of Kansas City, the state lottery commission said in a news release.


Earlier Thursday, Missouri Lottery spokesman Gary Gonder said he was on his way to that store to assist with the expected onslaught of media attention. That store will be awarded $50,000 for selling the winning ticket.


"I guess we'll be able to give out Christmas bonuses," said Trex Mart General Manager Kenny Gilbert. "That's nice, especially at this time of year."


It did not appear Wednesday's big winner had yet come forward.


"If you buy Powerball tickets at this location, please find them and check them closely," said May Scheve Reardon, executive director of the Missouri Lottery. "If you find you're holding the winning ticket, be sure you sign the back and put it in a safe place until you can take it to a Missouri Lottery office. You will also want to get some legal and financial advice before you claim."


The winner has 180 days to claim their share in the prize money.


Arizona lottery officials said early Thursday they had no information on the Grand Canyon State's winner or winners, but they planned to announce Thursday morning where the ticket was sold.


Americans went on a ticket-buying spree in the run-up to Wednesday's drawing, the big money enticing many people who rarely, if ever, play the lottery to purchase a shot at the second-largest payout in U.S. history.


Tickets sold at a rate of 130,000 a minute nationwide — about six times the volume from a week ago. That pushed the jackpot even higher, said Chuck Strutt, executive director of the Multi-State Lottery Association. The jackpot rolled over 16 consecutive times without a winner.


Iowa Lottery spokeswoman Mary Neumauer said the jackpot was estimated at $587.5 million by early Thursday, adjusted slightly upward from the $579.9 million estimate at the time of the drawing. The cash payout was $384.7 million.


In a Mega Millions drawing in March, three ticket buyers shared a $656 million jackpot. This remains the largest lottery payout of all time.





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RIM shares rise 6 percent as Goldman jumps on BB10 bandwagon

TORONTO (Reuters) - A wave of optimism surrounding the launch of Research In Motion's re-engineered BlackBerry line picked up momentum on Thursday with Goldman Sachs raising its rating on the smartphone maker and setting off a surge in its share price.


The brokerage firm joined a growing chorus of analysts who have warmed to the prospects of a successful introduction of the new BlackBerry 10 devices, which RIM hopes will let it claw back market share lost to Apple Inc's iPhone and smartphones powered by Google's Android platform. The BB10 devices are expected to hit store shelves early next year.


The shift in sentiment has been swift. A few weeks ago, most analysts believed RIM had squandered any chance it had to become a serious competitor because of repeated delays in the launch of the new smartphone.


But with a launch date now set for January 30 and some positive feedback about the devices from telecom carriers and developers, some analysts now think RIM might be able turn around its fortunes.


In a note to clients, Goldman analyst Simona Jankowski said preliminary specifications that have emerged on the BB10 devices appear impressive.


"With these devices RIM appears to finally be aiming for the leading edge hardware performance that was missing from its prior generations," Jankowski Said.


GOLDMAN UPGRADE


Jankowski said she believes more applications will be available for BB10 than had been expected because BlackBerry users typically download a relatively high number of paid apps, which is an enticement to app developers.


Goldman, which raised its rating on RIM shares to "buy" from "neutral," also increased its price target to $16 from $9.


By midday, RIM's shares had jumped up more than 6 percent on the Nasdaq to $11.78, while its Toronto-listed shares rose by a similar margin to C$11.72.


RIM shares, which have plunged about 90 percent from a 2008 high of more than $148, have risen some 75 percent in the last two months as the company moves closer to the launch of the new devices.


RIM promises its new devices will be faster and smoother than previous smartphones, and will have a large catalog of apps that are crucial to the success of any new line of smartphones.


Earlier this month, Jefferies & Co analyst Peter Misek, who has been one of RIM's biggest critics, raised his rating and price target on the stock.


Last week, National Bank analyst Kris Thompson raised his price target on the shares, stating that there is more money to be made in the stock ahead of the launch of the BB10 devices.


RIM Chief Executive Thorsten Heins told Reuters earlier this month that he sees the new BB10 devices providing RIM with a framework for growth over the next decade.


To be sure, not everyone has jumped on the bandwagon. Wedge Partners analyst Brian Blair warned on Wednesday that rising expectations for the BB10 in 2013 have provided false hope for investors.


"We believe the run-up in the stock miscalculates the reality of consumer demand for BB10 next year. ... The fact is, the smartphone market has changed in the last 24 months, and RIM is not only late to the party, the party has moved to a different location and RIM is showing up at the wrong house," Blair said.


(Reporting by Euan Rocha; Editing by Maureen Bavdek; and Peter Galloway)


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Tagliabue holds Saints bounties hearing in DC

WASHINGTON (AP) — Former NFL Commissioner Paul Tagliabue and lawyers for the league and the players' union have arrived for a hearing in the Saints bounties case.

Tagliabue is overseeing the latest round of player appeals in Washington.

Former Saints assistant Mike Cerullo, a key witness in the NFL's investigation, is scheduled to speak Thursday. Former New Orleans defensive coordinator Gregg Williams is to participate in Friday's session.

Two Saints players who were suspended, linebacker Jonathan Vilma and defensive end Will Smith, had said they plan to attend when Williams is there.

Vilma's lawyer attended Thursday's hearing at an office building.

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Clinton releases road map for AIDS-free generation

WASHINGTON (AP) — In an ambitious road map for slashing the global spread of AIDS, the Obama administration says treating people sooner and more rapid expansion of other proven tools could help even the hardest-hit countries begin turning the tide of the epidemic over the next three to five years.

"An AIDS-free generation is not just a rallying cry — it is a goal that is within our reach," Secretary of State Hillary Rodham Clinton, who ordered the blueprint, said in the report.

"Make no mistake about it, HIV may well be with us into the future but the disease that it causes need not be," she said at the State Department Thursday.

President Barack Obama echoed that promise.

"We stand at a tipping point in the fight against HIV/AIDS, and working together, we can realize our historic opportunity to bring that fight to an end," Obama said in a proclamation to mark World AIDS Day on Saturday.

Some 34 million people worldwide are living with HIV, and despite a decline in new infections over the last decade, 2.5 million people were infected last year.

Given those staggering figures, what does an AIDS-free generation mean? That virtually no babies are born infected, young people have a much lower risk than today of becoming infected, and that people who already have HIV would receive life-saving treatment.

That last step is key: Treating people early in their infection, before they get sick, not only helps them survive but also dramatically cuts the chances that they'll infect others. Yet only about 8 million HIV patients in developing countries are getting treatment. The United Nations aims to have 15 million treated by 2015.

Other important steps include: Treating more pregnant women, and keeping them on treatment after their babies are born; increasing male circumcision to lower men's risk of heterosexual infection; increasing access to both male and female condoms; and more HIV testing.

The world spent $16.8 billion fighting AIDS in poor countries last year. The U.S. government is the leading donor, spending about $5.6 billion.

Thursday's report from PEPFAR, the President's Emergency Plan for AIDS Relief, outlines how progress could continue at current spending levels — something far from certain as Congress and Obama struggle to avert looming budget cuts at year's end — or how faster progress is possible with stepped-up commitments from hard-hit countries themselves.

Clinton warned Thursday that the U.S. must continue doing its share: "In the fight against HIV/AIDS, failure to live up to our commitments isn't just disappointing, it's deadly."

The report highlighted Zambia, which already is seeing some declines in new cases of HIV. It will have to treat only about 145,000 more patients over the next four years to meet its share of the U.N. goal, a move that could prevent more than 126,000 new infections in that same time period. But if Zambia could go further and treat nearly 198,000 more people, the benefit would be even greater — 179,000 new infections prevented, the report estimates.

In contrast, if Zambia had to stick with 2011 levels of HIV prevention, new infections could level off or even rise again over the next four years, the report found.

Advocacy groups said the blueprint offers a much-needed set of practical steps to achieve an AIDS-free generation — and makes clear that maintaining momentum is crucial despite economic difficulties here and abroad.

"The blueprint lays out the stark choices we have: To stick with the baseline and see an epidemic flatline or grow, or ramp up" to continue progress, said Chris Collins of amFAR, the Foundation for AIDS Research.

His group has estimated that more than 276,000 people would miss out on HIV treatment if U.S. dollars for the global AIDS fight are part of across-the-board spending cuts set to begin in January.

Thursday's report also urges targeting the populations at highest risk, including gay men, injecting drug users and sex workers, especially in countries where stigma and discrimination has denied them access to HIV prevention services.

"We have to go where the virus is," Clinton said.

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AP Newsbreak: New Suzanne Collins book in 2013

NEW YORK (AP) — "The Hunger Games" novelist Suzanne Collins has a new book coming out next year.

The multimillion-selling children's author has completed an autobiographical picture story scheduled for Sept. 10, 2013, Scholastic Inc. announced Thursday. The 40-page book will be called "Year of the Jungle," based on the time in Vietnam served by Collins' father, a career Air Force officer.

"Year of the Jungle" is her first book since 2010's "Mockingjay," the last of "The Hunger Games" trilogy that made Collins an international sensation. More than 50 million copies of the "Hunger Games" books are in print and the first of four planned movies has grossed more than $600 million worldwide since coming out in March.

Collins' next project will be intended for ages 4 and up, a younger audience than those who have read, and re-read, her dystopian stories about young people forced to hunt and kill each other. But "Year of the Jungle" will continue, in a gentler way, the author's exploration of war. James Proimos, an old friend from her days as a television writer who helped persuade Collins to become a children's author, illustrated the book.

"For several years I had this little wicker basket next to my writing chair with the postcards my dad had sent me from Vietnam and photos of that year. But I could never quite find a way into the story. It has elements that can be scary for the audience and it would be easy for the art to reinforce those. It could be really beautiful art but still be off-putting to a kid, which would defeat the point of doing the book," Collins, 50, said in a statement released by Scholastic.

"Then one day I was having lunch with Jim and telling him about the idea and he said, 'That sounds fantastic.' I looked at him and I had this flash of the story through his eyes, with his art. It was like being handed a key to a locked door. So, I just blurted out, 'Do you want to do it?' Fortunately he said 'Yes.'"

"How could I refuse?" Proimos said in a statement. "The idea she laid out over burritos and ice tea during our lunch was brilliant and not quite like any picture book I had ever come across. The writing is moving and personal. What Suzanne does so well here is convey complicated emotions through the eyes of a child."

According to Scholastic, "Year of the Jungle" will tell of a little girl named Suzy and her fears after her father leaves for war. She wonders when he'll come back and "feels more and more distant" as he misses family gatherings. He does return, but he has changed and his daughter must learn that "he still loves her just the same."

Collins has said before that she wanted to write a book about her father. In a 2010 interview with The Associated Press, she explained that her father was a trained historian who made a point of discussing war with his family.

"I believe he felt a great responsibility and urgency about educating his children about war," she said. "He would take us frequently to places like battlefields and war monuments. It would start back with whatever had precipitated the war and moved up through the battlefield you were standing in and through that and after that. It was a very comprehensive tour guide experience. So throughout our lives we basically heard about war."

Scholastic also announced Thursday that "Catching Fire," the second "Hunger Games" book and originally released in 2009, is coming out in June as a paperback. The paperback edition usually comes within a year of the hardcover, but "Catching Fire" had been selling so well that Scholastic waited. "Mockingjay" has yet to be released as a paperback.

Next summer, Collins' five-volume "The Underland Chronicles," published before "The Hunger Games," will be reissued with new covers.

"'The Underland Chronicles,' with its fantasy world and 11-year old protagonist, Gregor, was designed for middle readers," Collins said in a statement. "The 'Hunger Games' trilogy features a teen narrator, Katniss Everdeen, and a stark dystopian backdrop for the YA (young adult) audience. 'Year of the Jungle' attempts to reach the picture book readers by delving into my own experience as a first grader with a father deployed in Vietnam."

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French court clears Continental in Concorde crash









French appeals court on Thursday absolved Continental Airlines of blame for a 2000 Concorde crash that killed 113 people and cleared a mechanic at the U.S. airline of the charge of involuntary manslaughter.

The verdict comes over a decade after the accident helped to spell the end of the supersonic airliner. A previous court ruled that a small metal strip that fell onto the runway from a Continental aircraft just before the Concorde took off from Paris, caused the crash.

Continental was originally fined 200,000 euros and ordered to pay the Concorde's operator, Air France, a million euros in damages. Continental appealed the verdict which it described as unfair and absurd.

Welder John Taylor was cleared of a 15-month suspended prison sentence for having gone against industry norms and used titanium to forge the piece that dropped off the plane.

Continental, now part of United Continental Holdings , had been ordered under the original ruling to pay 70 percent of any damages payable to families of victims. Airbus parent EADS would have to pay the other 30 percent.

The crash sped up the demise of the droop-nosed Concorde - the fastest commercial airliner in history and a symbol of Franco-British co-operation - as safety concerns coupled with an economic downturn after 9/11 drove away its wealthy customers.

The Air France Concorde, carrying mostly German tourists bound for a Caribbean cruise, was taking off from Paris on July 25, 2000 when an engine caught fire. Trailing a plume of flames, it crashed into a hotel near Charles de Gaulle airport. All 109 passengers and four people on the ground died.

After modifications, the plane returned to service but its operators, Air France and British Airways, retired it in 2003, citing high operating costs and a drop in demand.
 



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