Microsoft Ties to Time Warner and AT&T Could Prove Beneficial In Google Opposition

Software giant Microsoft Corp has recently been carrying out a quiet campaign through its Executives and a public-relations firm to convince Internet companies, advertisers, and regulators to oppose Google’s $3.1 billion acquisition of online advertising company DoubleClick Inc ( see article from The Wall Street Journal). Microsoft fears the deal would strengthen Google’s online advertising and in recent months has been urging advertising firms, Time Warner, and AT&T to not support the deal. We created three IntellectSpace Knowledge Maps between Google and DoubleClick, Microsoft and Time Warner, and Microsoft and AT&T to determine if any strong connections could play a role in these “behind scene” deals and discovered that Microsoft has strong connections to both Time Warner and AT&T that it can leverage.

In the Knowledge Map between Google and DoubleClick, the strongest connections can be found through Cisco Systems Inc and Siebel Systems Inc. John Hennessy is a Director at both Google and Cisco, where he works alongside Brian Schipper, a former Senior Vice-President of Human Resources and Administration at DoubleClick and current VP of Human Resources at Cisco. Google Chairman and CEO Eric Schmidt is a Director at Siebel, where DoubleClick Chief Marketing Officer Peter Krainik was a VP and General Manager of Consumer Goods. Both Shipper and Krainik likely retain beneficial ties to their previous employers.

Several strong connections can be found between Microsoft and Time Warner. Microsoft Director Charles Noski is currently a Director at Morgan Stanley, where he worked alongside Time Warner Director Michael Miles, who was also a Director at Morgan Stanley until 2007.  Another noteworthy connection is through Harvard University. Microsoft Director James Cash was a member of the Harvard Business School faculty from 1976-2003, where he most likely knew Time Warner Directors Robert Clark and Deborah Wright. Clark was Dean of Harvard Law School from 1989-2003 and Wright is a current Member of the Board of Overseers.

In the final Knowledge Map between Microsoft and AT&T we again find several strong connections. The strongest connection is between Microsoft Director Charles Noski and AT&T Director Laura Tyson, both of whom currently serve on the Board at Morgan Stanley.  Another notable connection is between James Cash (Microsoft Director) who is currently a Director at Chubb Corp with Daniel Somers (a former AT&T Executive) and at General Electric, where he works alongside Ralph Larsen (a former Director at AT&T).

These connections could allow Microsoft to persuade Time Warner and AT&T to not support Google’s acquisition of DoubleClick, thus improving the chances of Microsoft regaining some of the online advertising market from Google.

Click here for an interactive version of these IntellectSpace Knowledge Maps (Internet Explorer browsers only):

Google - DoubleClick: http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=2f3e60a5-0eec-47ed-ad41-5db7c8f2c045

Microsoft - Time Warner: http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=4c8d6651-e6f6-4fd8-b5c6-6f59fbb80aab

Microsoft - AT&T: http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=9ad568de-eb96-43b3-92b3-9993a92c906a

Comments

[CrossProfit]

Tell me again, why would Morgan Stanley want to kill this deal?

Disclosure: Comment by a CrossProfit analyst and may represent the opinion of CrossProfit.com [http://www.crossprofit.com]

[Neil Choudhury]

We are not saying that Morgan Stanley would want to kill this deal, instead we are saying that a Director from Microsoft works directly with a Director from Time Warner. Microsoft can use this connection to quitely pressure Time Warner. Both of these men are probably quite familiar with each other (they may have even played golf together), thus it would be easy for Charles Noski to approach Michael Miles about opposition to the Googel/DoubleClick deal.