BUSINESS BRIEFS
Soaring gold passes $1,000 in futures trade
Associated Press
NEW YORK — Bargain-hunting at the local jewelry store just got harder.
Gold, which has soared to record levels in the past year, hit a new milestone yesterday, rising to $1,000 an ounce for the first time in futures trading — a boon for investors, but a deterrent to consumers shopping for jewelry.
The price of gold has jumped nearly 20 percent since the start of the year after rising nearly 32 percent in 2007. The huge advance is mainly the result of a weaker dollar and record-high crude oil prices. The dollar fell below 100 yen yesterday for the first time in 12 years and hit another new low against the euro, while oil traded above $110 a barrel.
Lower interest rates — and the prospect of more cuts — bringing the dollar's value down makes dollar-based commodities like gold cheaper for foreign buyers. The weak currency has also made gold more attractive as a hedge against inflation.
AOL TO BUY BEBO FOR $850 MILLION
NEW YORK — Struggling Internet company AOL stepped up its bid to boost traffic and advertising opportunities worldwide by agreeing yesterday to pay $850 million for online hangout Bebo and a foothold in the growing arena of social media.
Although Bebo remains in the shadow of MySpace and Facebook, it is strong in some foreign markets, including Britain. According to comScore Inc., its audience outside the United States is engaged, spending more time on average there compared with the leading rivals.
AOL executives say they are planning to tap that engagement to drive traffic to AOL's other free, ad-supported Web sites, especially internationally, while leveraging AOL's instant-messaging communities, AIM and ICQ, to try to grow Bebo in the United States.
AOL has been looking for ways to increase ad revenue to offset steep declines in dial-up Internet subscriptions.
HOSTILE BID FOR 'GRAND THEFT' FIRM
NEW YORK — The heat is on: Electronic Arts Inc.'s $2 billion bid for "Grand Theft Auto" maker Take-Two Interactive Software Inc. turned hostile yesterday as EA took its $26-per-share offer directly to Take-Two shareholders.
The tender offer expires on April 11, more than two weeks before the latest "Grand Theft Auto" hits store shelves. The wildly popular series, where players complete crime missions to get ahead in a gritty underworld, has sold 65 million copies and is considered one of the most successful video games in history. It's also Take-Two's main source of revenue and expected to bring in as much as $1.4 billion this fiscal year.
CALIFORNIA HOME PRICES FALLING
LOS ANGELES — Median home values plunged across California last month, as the sale of more foreclosed homes and fewer high-end properties combined to drive down the state's overall median price 21 percent from a year ago, a real estate research firm said yesterday.
The drop reflects the further unraveling of the housing market that saw values soar and then decline sharply in most areas.
The median statewide price fell to $373,000, down from $472,000 a year earlier and 2.6 percent from January's median, DataQuick Information Systems said.
GULFSTREAM PLANS SPEEDY PRIVATE JET
Gulfstream Aerospace yesterday unveiled plans to build the largest, fastest and most expensive private jet for delivery starting in 2012.
Gulfstream said its new G650 will be capable of flying nearly 700 mph, faster than a Boeing 747. It will seat 18, have a full kitchen and bar, and offer individualized entertainment, satellite phone service and wireless Internet access during the flight.
Passengers will be able to sip a cocktail at 51,000 feet, its maximum altitude, the company says.
At a base price of $58 million, it will cost about $10 million more than its predecessor, Gulfstream's G550.
