Global Crossing Reportedly to Sell Web-Hosting Unit to Exodus; Microsoft to Take Charge of $350M; WWF Hammered on Warning
DEBORAH MARCHINI, CNN ANCHOR: Global Crossing reportedly will sell its Web-hosting unit to Exodus Communications. And Microsoft says it will take a charge of $350 million.</s>DAVID HAFFENREFFER, CNN ANCHOR: Also, a warning from the World Wrestling Federation is not well received. Our Sasha Salama has more now from the Nasdaq marketsite. Hi, Sasha.</s>SASHA SALAMA, CNN CORRESPONDENT: Hi folks. Lots of corporate stories to tell you about that are moving stocks this morning. You mentioned Microsoft, let's start there. Microsoft is going to be taking that one-time charge, also updating the way the company reports revenues to reflect some new product categories, including enterprise software, desktop software, just to name a few. Microsoft taking that one-time charge, and the stock is down about an eighth in the pre-market to 60 1/2. Well, those on again-off again talks between Global Crossing and Exodus are on again. The deal reportedly would have Global Crossing selling its Web-hosting unit to Exodus. That unit manages companies' Web sites. And the deal is reportedly for $6 1/2 billion in stock. The deal could be announced today. If it goes through, it would make Exodus the biggest company in the Web-hosting market. It would also give Global Crossing the biggest state in Exodus, a 20 percent stake, making the company the biggest shareholder in Exodus. GBLX up on the news, up two to 31 7/8 in the pre-market. Exodus going the other way, giving back 2 1/4 in the pre-market to $51 a share -- David and Deb.</s>HAFFENREFFER: Sasha, are we suppose to learn something by the fact that the World Wrestling Federation first decides to leave the Nasdaq and go to the Big Board and now an earnings warning?</s>SALAMA: That's right. Talk about the shares going down to the mat too, if that's the right expression. WWFE, the ticker symbol, down seven in the pre-market to 12 7/8. Here's the story: The company, which produces wrestling programs, is issuing a warning, for the next two quarters revenues will be about three percent below previous guidance. The reason for the shortfall, World Wrestling says, a decline in sales of commercial advertising, as well as product licensing. Over my shoulder there you see where the stock closed, just under 20. As I mentioned this morning folks, it is below 13. And Nasdaq 100 futures down just slightly after that decline yesterday, which brought the market to 3656. Analysts telling me that lots of investors are selling into strength here. Back to you.</s>MARCHINI: Sasha, thank you very much.