Pacific Northwest
Real estate
Seattle-area home prices declined in September compared with August, adding to a national trend: the largest quarterly decline in the 21-year history of the S&P Case-Shiller Home Price Indices.
Seattle’s decline, however, was slight. September prices were down 0.2 percent from August. That follows a dip of 0.1 percent in August from July.
On an annual basis, Seattle home prices climbed 4.7 percent for the year ended in September. That ties it with Charlotte, N.C., for the highest appreciation among the 20 metropolitan markets in the S&P Case-Shiller price report.
In the third quarter, prices nationally declined 1.7 percent from the second quarter and 4.5 percent from the third quarter of 2006.
Big Fish Games
Company acquires Thinglefin firm
Two months after becoming chief executive at Seattle’s Big Fish Games, Jeremy Lewis is diversifying beyond casual games by acquiring Thinglefin, a local developer of massively multiplayer online (MMO) games.
Thinglefin was started in May by veterans of companies such as Sony, Microsoft, Sega and Monolith and received venture funding in July. Its four employees will continue developing an MMO game launching next year with the Thinglefin brand and contribute to other projects at Big Fish’s 200-person Seattle office.
“We have a leadership position in online entertainment in certain areas, and we wish to extend that leadership position in the area that Thinglefin allows us to,” Lewis said.
Financial details weren’t disclosed, but Lewis said Big Fish sales will grow more than 100 percent this year, as they have every year since its 2002 launch.
Microsoft
Company to add engineers in China
Microsoft plans to employ 33 percent more engineers in China by the end of the fiscal year to boost research and development.
The company will add 1,000 engineers by the end of June next year, Zhang Yaqin, chairman of Microsoft China, said in Beijing on Tuesday. About 10 percent will be doing research and the rest mostly product development, he said.
Microsoft has about 3,000 research engineers in China now, the highest number outside the U.S., Zhang said.
Microsoft has research centers in Beijing, Shanghai and Shenzhen.
Legal issues
State ruling stands on truckers’ OT
A Washington Supreme Court ruling that found Washington-based truck drivers working more than 40 hours a week are entitled to overtime pay was upheld Monday when the U.S. Supreme Court refused to hear an appeal.
The decision - in a case involving truck driver Larie Bostain of Vancouver who sued Food Express, a company that operates throughout the West - opens the possibility that other drivers could file similar suits and force trucking companies to re-examine driver compensation.
Seattle lawyer Phil Talmadge, who handled the U.S. Supreme Court appeal and represented the American Trucking Association, reserved comment on the appeal until he could evaluate the high court’s reasoning.
Talmadge said if the state Supreme Court’s ruling stands, it could lead to confusion between state and federal wage and commerce laws.
Weyerhaeuser
Analyst’s report boosts stock price
Weyerhaeuser stock rose $1.52, or 2.2 percent, to $69.54 Tuesday after a Deutsche Bank analyst said the company might take its timberland business private.
Mark Wilde, an analyst with Deutsche Bank in New York, has a price target of $95 on the stock, based on the estimated value of Weyerhaeuser’s assets.
The Federal Way company has been under pressure from investors to convert into a real-estate investment trust to unlock the value of timberlands and reduce taxes.
“We wonder if shareholders might be better served by a bid to take the entire Weyerhaeuser timber business private,” Wilde wrote in a note to clients. “With global investors still eager to pour capital into timberland, a private and prudently levered bid for the entire timber business appears possible.”
Nation and World
Google
Company gets into cheaper energy
Internet giant Google is expanding from search and advertising to try developing cheap energy alternatives to coal. The initiative, Renewable Energy Cheaper Than Coal, will focus initially on solar, geothermal and wind-energy sources that could be used in place of coal.
Google will use its vast resources to buy companies and hire engineers to see this initiative through.
“Our goal is to produce one gigawatt of renewable energy capacity that is cheaper than coal,” Google co-founder Larry Page said Tuesday. “We are optimistic this can be done in years, not decades.”
One gigawatt can power a city the size of San Francisco, with 750,000 residents, says Google.
Google got interested in helping fund new renewable energy sources because it is a huge consumer of electricity for its big data centers. They house hundreds of thousands of computers that run the Google search engine. Additionally, it wants to help solve the global warming crisis, and says cheaper and cleaner energy sources can help do that.
Wells Fargo
$1.4B provision for loan losses
Wells Fargo will take a $1.4 billion provision in the fourth quarter for loan losses, the bank said Tuesday.
In a filing with the Securities and Exchange Commission, the bank said it will create an $11.9 billion portfolio of the company’s riskiest mortgages, which it plans to liquidate. The portfolio consists of three types of home-equity loans.
Wells Fargo said the debt poses the biggest risk to its balance sheet.
Compiled from Seattle Times business staf, the Columbian (Vancouver, Wash.), Bloomberg News, USA Today and The Associated Press