Cantor Morning News | Tech/Media/Telco

Tech participated, but didn’t lead the market higher Friday. Semis best acting sub-group. M&A still the trend with cash rich companies buying growth. HPQ bid $30 for PAR after DELL matched its prior $27 bid, this move sent names like CML +15%, ISLN +5.7% and CVLT +5.5% further in the green. NZ closed up 33% after reporting blowout quarterly numbers on Thursday after the close. ARST +8% and FIRE +9% up big on news that ARST is close to being acquired by a large tech company…names in the mix include IBM, ORCL or SAP.

Sector News, M&A, Capital Raises

Microsoft co-founder Paul Allen files patent infringement suit against Google, Apple, eBay, Facebook and others - WSJ

The Journal reports that Allen filed a patent infringement lawsuit in federal court in Seattle against Google (and YouTube), Apple, eBay, Facebook, Yahoo, Netflix, AOL, OfficeMax, Office Depot and Staples.
The suit revolves around what the paper terms as everyday fixtures of the Internet experience, including pop-up stock quotes, suggestions for related reading near a news article and videos along the side of the user's screen.
According the article, the four patents named in the suit were developed at Interval Research Corp, a tech incubator that Allen financed with ~$100M during the Internet boom, but which closed down roughly ten years ago.
The Journal notes that companies that have commented on the litigation have argued that it is without merit, while the article also discusses the rise in patent litigation.

PAR 3PAR board determines Hewlett-Packard (HPQ)'s proposal to buy it for $30/share constitutes superior proposal to Dell (DELL)'s
The 3PAR board of directors notified Dell of its intention to terminate the merger agreement with Dell, immediately following the expiration of the three-business-day period contemplated by, and the satisfaction of the other conditions set forth in, the merger agreement with Dell, in order to enter into the merger agreement with HP on the terms set forth in HP's acquisition proposal.

DIS Disney, Time Warner Cable (TWC) talks make "significant progress"
Disney's "ihavechoices.com", set up for the dispute with Time Warner Cable, displays the following statement today:

The Walt Disney Company and Time Warner Cable have made significant progress in our negotiations for continued distribution of ABC, Disney and ESPN networks and services. We are now focusing all our attention on a successful conclusion of these efforts prior to the September 2 deadline.

Citing sources, the WSJ reports that the companies now expect to reach a deal without blacking out any TV networks.

Research Away

TXN Texas Instruments downgraded to neutral from positive at Susquehanna

CSGS CSG Systems upgraded to outperform from perform at Oppenheimer Target remains $23.

AMD Advanced Micro estimates lowered at Wells Fargo
Firm notes INTC's lowered guidance and believes AMD will be affected as much, or more than INTC by the weakness in consumer PC demand. Estimates for 2010/11 are lowered. Valuation range is lowered to $5.50-7.50 from $7-9. Rating is market perform.

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