S&P urges investors to sellGoogle, cites Motorola deal
NEW YORK (AP) -- Standard & Poor's says investors should sell Google's stock because it believes the search leader's decision to buy Motorola Mobility increases the risk to the company and its shares.
Google Inc. said Monday it will pay $12.5 billion for Motorola Mobility, a major maker of phones using Google's Android mobile software. The deal includes mobile patents that could help Google defend itself against rivals.
S&P said Tuesday that while the acquisition would include a patent trove, that might not be enough to keep Google's Android mobile operating software from encountering intellectual-property issues. It downgraded its rating on Google's shares to "Sell" from "Buy."
The ratings service also says the transaction will hurt Google's growth, margins and balance sheet.
S&P cut its price target for Google's stock by $200 to $500.
Google shares fell along with the overall market Tuesday, slipping $18.23, or 3.3 percent, to finish trading at $539.
Netflix has kids' films online
SAN FRANCISCO (AP) -- Netflix Inc. is giving kids and their parents a new reason to embrace its Internet video subscription service amid an outcry over an upcoming price increase.
A "Just For Kids" tab will be added to subscribers' accounts on Netflix's website beginning Tuesday. Clicking on the feature will pull up a list of kid-friendly recommendations drawn from about 1,000 movies and TV shows in Netflix's Internet video-streaming library.
It won't suggest titles that are only available as DVD rentals delivered through the mail. That's an option that Netflix is trying to make less enticing to subscribers so it can spend more money expanding its selection of video-streaming options.
As part of its de-emphasis on DVDs, Netflix last month announced it will unbundle the unlimited video-streaming option from is most popular plans that also include disc rentals. Beginning Sept. 1, Netflix's 24.6 million U.S. subscribers who want DVDs and unlimited streaming will have to buy the plans separately.
JetBlue pilots reject union
NEW YORK (AP) -- Pilots at JetBlue are choosing to go without union representation.
It is the second time in three years pilots at the New York airline have tried and failed to unionize. The latest attempt was driven by the Air Line Pilots Association, or ALPA, which represents thousands of employees at major airlines.
JetBlue Airways Corp. said Tuesday that 58 percent of just over 2,000 valid votes were cast against bringing in some form of representation. Forty-two percent of votes were cast in favor of a union.
Fiat plans Gucci minicar
DETROIT (AP) -- Fiat will introduce a Gucci version of its stylish 500 minicar in the United States later this year.
The black special edition of the car features glossy paint, chrome detailing and a leather interior with white accents. It has the Italian fashion label's interlocking "GG" inscription on the headrests and wheels, and Gucci's signature green-and-red stripe along the body side, the seat belt and seat backs.
It will be introduced Sept. 8 at the start of New York Fashion Week but won't hit showrooms until December.
Union OKs Gowanda pact
SEIU 1199 members at Gowanda Rehabilitation Nursing Center ratified a three-year agreement Monday.
The contract calls for a 7 percent raise by June 2013 and increased employer pension contributions. It also preserves longevity bonuses.
Health insurance costs will remain affordable, said Franchelle Hart, communications coordinator. The nursing center will pay up to 95 percent of health insurance costs for full-time employees and 50 percent for part-time workers at the end of the contract.
The Service Employees International Union represents 125 employees at the nursing center who work as certified nurse's assistants, dietary workers, activity leaders, laundry department workers and housekeepers.