Should Microsoft Corp’s Directors Have Approved The Company’s Facebook Deal?

(NewsVisual, powered by IntellectSpace) -- At the time that Microsoft Corp (NASDAQ: MSFT) purchased a small share of Facebook, the criticism was relatively muted, and it’s only belatedly that the deal’s critics have become more vociferous in denouncing what they perceive to be its many downsides, including its overall lack of prudence on the part of Microsoft.

"Microsoft’s October purchase of a 1.6 percent Facebook stake implicitly valued the social-networking Web site at $15 billion. Even at the time, some people questioned such an eye-popping valuation. But as the months have passed, the number is looking even more bubbly," The New York Times reported in an online article on Friday.

This raises the question as to whether the company’s Board of Directors are protecting the interests of the company’s shareholders.

NewsVisual created an IntellectSpace Knowledge Map that illustrates the business connections among Microsoft’s Directors in order to determine whether they are prepared to meet the company’s challenges.

Citigroup to Shed Assets as a Method for Restoring its Financial Health

(NewsVisual, powered by IntellectSpace) -- In an initiative that appears to be designed to restore investor confidence, as well as to shore up its balance sheet, Citigroup Inc (NYSE:C) plans to sell off huge numbers of assets, according to news reports.

"The banking giant said Friday it will sell at least $400 billion of the $500 billion in assets it identified as 'not central' to its mission, including $170 billion worth of marked-to-market assets in its investment banking division,” Forbes.com reported in an online article on Friday.

“The planned sale, which will take place over the next three years, is more than double what analysts expected," the Forbes article added.

The Directors at Citi now have a strategic plan in place that could reverse the bank’s downward decline and that could help to ensure future earnings for the bank.

Wachovia Corp Separates the CEO and Chairman Roles as Reform Measure

(NewsVisual, powered by IntellectSpace) -- In a personnel change that could be imitated throughout the corporate world as a standard reform measure, especially among hard-hit financial institutions, the Charlotte, N.C., bank Wachovia Corporation (NYSE:WB) announced on Friday that it was splitting the role of Chief Executive Officer from that of Chairman of the Board.

The bank’s new non-executive Chairman will now be Lanty Smith.

Mr. Smith has served as a director since 1987 and as lead independent director since 2000, and he is the CEO/Chairman of Tippet Capital, a merchant banking firm headquartered in Raleigh, N.C., as well as a former partner with the international law firm of Jones Day, the bank said.

"At this challenging time for the financial services industry and for Wachovia, my management team and I are pleased that Lanty agreed to assume the role and responsibilities of Chairman, freeing me to focus 100 percent of my time and attention on guiding the company through the current environment and building and delivering enhanced value for the benefit of our shareholders, customers and employees," said CEO/President and now former Chairman Ken Thompson in the bank’s statement.

The bank has several other highly experienced Directors.

JP Morgan Has Only One More Hurdle to Leap in Order to Acquire Bear Stearns

(NewsVisual, powered by IntellectSpace) -- In what appears to be the vanquishing of the next-to-the-last obstacle in the planned acquisition by JPMorgan Chase & Co (NYSE:JPM) of the failed investment-banking firm Bear Stearns (NYSE:BSC), a class-action lawsuit by a group of Bear shareholders to block the firm’s purchase has been dropped by the plaintiffs, The New York Times reported.

"A group of major shareholders in Bear, which include public pension funds and institutional investors, have withdrawn their motion seeking to block the merger, just two days before scheduled hearings on the matter, the company reported in a regulatory filing Wednesday," The Times reported in an article on Thursday.

"At this stage, Bear’s sale to JPMorgan seems all but assured. But a few holdouts are still fighting it," The Times article added.

The last holdouts, Samuel T. Cohen from Maryland and Jerome Birn from California, have still have a lawsuit pending.

At this point, however, the Directors at JP Morgan have a responsibility to make certain that the bank’s management team is ready to absorb Bear and that the team is prepared for overseeing Bear’s day-to-day operations.

This is an unwieldy task that could place the bank under enormous stress.

Cablevision’s Board Must Allay Analysts’ Concerns Over the Company’s Long-Term Strategy

(NewsVisual, powered by IntellectSpace) -- In the immediate aftermath of the announcement on Wednesday that Rainbow Media, a subsidiary of Cablevision Systems Corp (NYSE:CVC), will purchase the Sundance Channel for $496 million, there has been a barrage of negative feedback by analysts directed at Cablevision for its entire long-term strategy, not just for this one acquisition, The New York Times reported.

At issue is what analysts interpret as an unconstrained buying binge by the company’s controlling family, the Dolan Family, that does not follow a rational logic when viewed in conjunction with its core business, the company’s critics suggest. 

"It is reportedly bidding against Rupert Murdoch for Newsday, a newspaper owned by Tribune. And Cablevision recently considered buying a stake in AEG Live, the concert promoter," The Times reported in an article on Thursday.

"This approach is not sitting well with some analysts, such as Rich Greenfield of Pali Research, who has been a vocal critic of the Dolans’ empire-building tendencies," The Times report added.

Cablevision’s Directors must address the analysts’ questions in a straightforward fashion in order to retain investor confidence with regard to these purchases.

Senate Hearing Casts Doubt on Sagaciousness of Northwest-Delta Deal

(NewsVisual, powered by IntellectSpace) -- A Senate subcommittee on aviation intensely scrutinized the $3.1 billion merger deal between Delta Air Lines Inc (NYSE:DAL) and Northwest Airlines Corporation (NYSE:NWA), questioning whether it could cut costs and benefit consumers during a time of escalating fuel prices.

"Members of the subcommittee on aviation were generally skeptical about the economic prospects of the merged airline and the ailing industry in general," The New York Times reported in an article on Thursday.

Although it seems unlikely that the subcommittee would move to block the merger’s completion, the Senators’ skepticism regarding the deal’s economic wisdom could undercut investor confidence in the companies, which could negatively impact the new company’s share value.

The prior personal connections between the leadership of the two airlines, however, provide it with the potential to consolidate the new airline’s management quickly once the merger takes place, and thus the new company will have a good chance for success.

Cablevision’s Directors Approve Rainbow’s Purchase of Sundance Channel

(NewsVisual, powered by IntellectSpace) -- A division of Cablevision Systems Corp (NYSE:CVC), Rainbow Media, announced on Wednesday that it has purchased the Sundance Channel for $496 million with an eye toward strengthening its entertainment presence, Cablevision said in a statement.

Rainbow is acquiring the Sundance Channel, which reaches nearly 30 million subscribers, from General Electric Co.'s (NYSE: GE) NBC Universal, CBS Corp.'s (NYSE: CBS) Showtime Networks, and entities controlled by Robert Redford, the statement said.

Founded in 1996 by Robert Redford as a creative endeavor, the Sundance Channel offers films, documentaries and original programs.

"Robert Redford is a true visionary and, through everything he has accomplished with Sundance Channel, has made immeasurable contributions to the world of independent film," said Rainbow Media CEO/President Joshua Sapan.

"Rainbow has experienced firsthand how impressive original programming like Mad Men and Breaking Bad can distinguish a network's brand. Sundance Channel has already established its own distinct voice through impressive programming like The Green and Iconoclasts and our vision is to build on this type of original content, further strengthening the uniqueness of the network," Mr. Sapan added.

For its part, Cablevision allowed the deal to go forward because it views Rainbow’s purchase of Sundance as a strategic acquisition that will facilitate future audience growth.

Did Personal Connections Jump Start the New Deal Between Sprint and Clearwire?

(NewsVisual, powered by IntellectSpace) -- In an announcement on Tuesday, Clearwire Corporation (NASDAQ: CLWR) and Sprint Nextel Corporation (NYSE: S) said that they were jointly forming a new wireless communications company that will usher in the next generation of Internet services.

The new company, to be named Clearwire, will provide mobile broadband experience for customers, including consumers, small and large businesses, and government agencies, and thereby dramatically enhance their ability to access high-speed Internet services, the companies’ joint statement said.

Aside from Sprint and Clearwire, the new company has five strategic investors who will contribute collectively $3.2 billion into the new company.

Those partner companies are Intel Corporation (NASDAQ: INTC) through Intel Capital, Google Inc. (NASDAQ: GOOG), Comcast Corporation (NASDAQ: CMSCA, CMCSK), Time Warner Cable Inc. (NYSE: TWC), and Bright House Networks.

Sprint will have approximately 51 percent equity and Clearwire shareholders will have approximately 27 percent ownership in the new company, whose share price will be worth approximately $20.00 per share.

"For Sprint shareholders, this is an opportunity to unlock and bring visibility to the value of our significant spectrum assets, technology and expertise, by leveraging the technology, applications and distribution strengths of our investors, who together command nearly a half- trillion dollars in market capitalization," said Sprint CEO/President Dan Hesse in the joint statement.

For his part, Clearwire Chairman Craig O. McCaw emphasized the benefits the new company will be able to offer its customers when he made the following comments:

Latest Sales Figures Could Drive Up Take-Two’s Buyout Price for AE

(NewsVisual, powered by IntellectSpace) -- Take-Two Interactive Software Inc (NASDAQ:TTWO), the maker of Grand Theft Auto, can now command a higher price in any buyout deal with Electronic Arts Inc (“EA”) (NASDAQ:ERTS) because the latest version of Grand Theft has been highly successful in terms of its sales revenues, and thereby making Take-Two a more valuable company, according to The New York Times.

“If Take-Two can exceed sales expectations on Grand Theft Auto IV, it has the potential to drive up the share price and force Electronic Arts to raise its offer," The Times reported in an online article on Wednesday.

As we just learned from the flameout of any Yahoo-Microsoft deal, however, the personal relationship between the key players can often be a critical factor for advancing a deal.

Indeed, the close personal connections between the members of both EA’s and Take-Two’s Boards of Directors could serve to bring a deal to a satisfactory conclusion for both companies.

A Google-Yahoo Deal Looks More Likely Now with Microsoft Out of the Picture

(NewsVisual, powered by IntellectSpace) -- Despite the retreat of Microsoft Corp from the scene, Yahoo Inc (NASDAQ:YHOO) and its search-engine rival Google Inc (NASDAQ:GOOG) could still move ahead with a strategic alliance involving the sharing of advertising technology, according to The New York Times.

"Yahoo may well pursue the partnerships with Google, its main rival, to bolster its depressed stock price. Yahoo shares dropped 15 percent, or $4.30 Monday, to $24.37. The two companies refused to comment," The Times reported in an article on Tuesday.

The article also implies that the prospect of a Google-Yahoo deal was one of the primary reasons that Microsoft withdrew its bid for Yahoo.

There’s another dimension that makes these two search companies more likely to enter a deal:

Although Yahoo and Google are direct competitors, the two Silicon Valley-based companies do have a network of high-level personal connections that could help to make this initiative work for the benefit of both companies.

Yahoo! Inc Shareholders Go Public with Their Grievances Over Failed Deal

(NewsVisual, powered by IntellectSpace) -- In what could be a harbinger of a shareholder revolt against its Board of Directors, investors went public with their dismay over the failure of Yahoo! Inc (NASDAQ: YHOO) to negotiate successfully a deal with Microsoft Corp (NASDAQ: MSFT).

The Wall Street Journal reported on the frustration of some high-profile Yahoo shareholders on Tuesday:

"'I'm extremely disappointed in [Yahoo President] Jerry Yang,' said Gordon Crawford, a portfolio manager at Capital Research Global Investors, which owns over 6% of Yahoo's shares. 'I think he overplayed a weak hand. And I'm even more disappointed in the independent directors who were not responsive to the needs of independent shareholders,'" The Journal article reported.

Many of the shareholders believe that Yang was being unrealistic by demanding that Microsoft offer $37 per share as the price for entering into negotiations.

"Some of Yahoo's major shareholders had by late last week signaled to Yahoo that they were open to a deal around $33 or $34 per share, according to people familiar with the matter," The Journal article said.

In response to these shareholder complaints, Yahoo Chairman Roy J. Bostock told The Journal that Yahoo’s Board of Directors made the right determination and its members stand by their decision.

Bank of America Must Decide on Whether to Back Out of or Amend the Countrywide Deal

(NewsVisual, powered by IntellectSpace) -- In a fashion that could become analogous to Microsoft Corp’s retreat from its bid for Yahoo Inc, there’s some chatter in the business-news media that the Bank of America Corporation (NYSE:BAC) could be considering pulling back from its offer to buy Countrywide Financial Corporation (NYSE:CFC).

There is also some speculation that BofA merely wants to reduce the size of the price it’s offering, but the bank still wants to follow through with the purchase.

In particular, the media buzz is swirling around BofA CEO/President/Chairman Kenneth D. Lewis and is attempting to decipher his true intentions.

"Four months after Mr. Lewis, the chief executive of the Bank of America Corporation, agreed to buy the Countrywide Financial Corporation for $4.1 billion, Wall Street is buzzing that he may reduce his offer for the troubled mortgage giant or perhaps even walk away from the deal," The New York Times reported in an online article on Tuesday.

The financial difficulties that beset Countrywide, The Times added, are far more grave than originally anticipated and, as a consequence, its share value has declined much further than expected.

Therefore, it’s reasonable for Mr. Lewis to believe that the first offer must now be considered far too generous and must now be amended.

Mr. Lewis, however, should proceed carefully and act in accordance with the advice of the other BofA Directors, since the long-term consequences of any missteps could be very damaging to the bank.

Yahoo! Inc’s Shareholders Could Revolt Against its Directors for Passing Up Good Deal

(NewsVisual, powered by IntellectSpace) -- In the immediate aftermath of the retreat of Microsoft Corp (NASDAQ: MSFT) in its several-months-long effort to acquire Yahoo! Inc (NASDAQ: YHOO), the Sunnyvale-based company’s stock lost 15 percent of its value, which raised speculation in the business-news media that dissident shareholders will mount an offensive to oust the company’s current Board of Directors as a punishment for not accepting a deal with Microsoft.

In a company statement issued on Saturday, it was obvious that Yahoo Chairman Roy Bostock remained unrepentant with regard to the position that the company’s Directors staked out in response to Microsoft’s bid.

“From the beginning of this process, our independent board and our management have been steadfast in our belief that Microsoft's offer undervalued the company and we are pleased that so many of our shareholders joined us in expressing that view,” Mr. Bostock said in the company’s statement.

“Yahoo! is profitable, growing, and executing well on its strategic plan to capture the large opportunities in the relatively young online advertising market,” he added.

Yet the company’s shareholders could remain skeptical over whether its Directors acted in their best interest.

Indeed, many of the shareholders may even be irate over what many could see as the company passing up a good offer from Microsoft, especially after the Redmond company increased its bid during the later stages of negotiations.

Personal Connections Could Propel Deutsche Telekom- Sprint Nextel Deal

(NewsVisual, powered by IntellectSpace) -- Although there is renewed media speculation that the telecom giant Deutsche Telekom AG (NYSE: DT) might be getting ready to make a buyout bid for Sprint Nextel (NYSE: S), there appears to be some who see this as being a distant possibility, notwithstanding the personal connections between the two companies.

For example, The New York Times reported that the signals of a merger are ambiguous at best:

"Sprint Nextel’s stock rose more than 6 percent Monday morning following reports that Deutsche Telekom was considering buying it — but investors might want to be wary," The Times reported in an online article on Monday.

Because these two telecom companies deploy disparate technologies, The Times added, any merger between the two companies would have a high hurdle to leap.

Yet the personal ties between the two companies could help them to meet this challenge.

Did Microsoft’s Directors Force Ballmer to Withdraw Its Buyout Bid for Yahoo!?

(NewsVisual, powered by IntellectSpace) -- One of the largest corporate dramas of recent times came to an end Saturday when Microsoft Corp (NASDAQ: MSFT) announced that it had withdrawn its proposal to acquire Yahoo! Inc (NASDAQ: YHOO), while dispelling any speculation that Microsoft would make a hostile maneuver to acquire the company.

As had been the case from the moment that Microsoft issued its bid, the key stick point that thwarted any deal concerned irreconcilable differences over what constituted a fair price for Yahoo:

“Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal,” said Microsoft CEO Steve Ballmer in the company’s press release.

In a letter to Yahoo CEO Jerry Yang, Mr. Ballmer indicated that his reason for not initiating a hostile takeover against Yahoo revolved around a concern that Yahoo would pursue a scorched earth policy, where it would bring its own company to ruin rather than leaving Microsoft a company with strong market value.

The Times Reports G.M. Invests in a Second-Type Ethanol Process

(NewsVisual, powered by IntellectSpace) -- As large oil companies like Exxon and Chevron are experiencing record first-quarter earnings, The New York Times reported in an article on Thursday that General Motors Corp (NYSE:GM) is investing non-grain sources for creating ethanol.

Click here for an interactive version of this IntellectSpace Knowledge Map that illustrates the business connections of GM’s Board of Directors .

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).

MarketWatch’s Report on how News Reports Affected Yahoo’s Stock

(NewsVisual, powered by IntellectSpace) -- In an article on Friday, MarketWatch reported on the jump in share value of Yahoo Inc (NASDAQ:YHOO) after it was reported throughout the media that it was in discussions with Microsoft Corp (NASDAQ:MSFT).

Click here for a fuller and an interactive version of this IntellectSpace Knowledge Map that illustrates the business connections of Yahoo’s Board of Directors .

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).

Cramer Gives His Advice on Trading Yahoo’s Stock

(NewsVisual, powered by IntellectSpace) -- In viewing it through the latest news regarding the talks between Yahoo Inc (NASDAQ:YHOO) and Microsoft Corp (NASDAQ:MSFT), the famed stock analyst Jim Cramer gives his view of what to do with Yahoo’s stock in an article on Friday.

Click here for a fuller and an interactive version of this IntellectSpace Knowledge Map that illustrates the business connections of Yahoo’s Board of Directors .

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).

The Journal Reports that Microsoft and Yahoo Are in Intense Discussions

(NewsVisual, powered by IntellectSpace) -- The Wall Street Journal reported in an online article on Friday that Microsoft Corp (NASDAQ:MSFT) and Yahoo Inc are now in intense merger talks.

Click here for an interactive and fuller version of this IntellectSpace Knowledge Map that illustrates personal connections among the members of the two companies’ Board of Directors.

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).

Times Reports that Microsoft and Yahoo Are Now In Serious Merger Negotiations

(NewsVisual, powered by IntellectSpace) -- The New York Times reported in an online article on Friday that Microsoft Corp (NASDAQ:MSFT) and Yahoo Inc are now in serious merger talks.

Click here for an interactive and fuller version of this IntellectSpace Knowledge Map that illustrates personal connections among the members of the two companies’ Board of Directors.

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).

Yahoo and Google Set to Circle the Wagons Against Microsoft Takeover

(NewsVisual, powered by IntellectSpace) -- Yahoo Inc (NASDAQ:YHOO) and its search-engine rival Google Inc (NASDAQ:GOOG) are close to finalizing a strategic partnership that would involve sharing advertisements, according to The Wall Street Journal.

The partnership between the erstwhile rivals is seen by many analysts as an effort to defeat the plan by Microsoft Corp (NASDAQ:MSFT) to buyout Yahoo.

"Yahoo has also been pursuing a broad agreement to carry search ads from Google, which it views as a way to boost its cash flow and bolster its claim to shareholders that it is worth more than Microsoft has offered," The Journal article reported.

“Such an agreement could still go forward even if Microsoft announced a hostile takeover effort,” the article added.

In fact, although Yahoo and Google are direct competitors, the two Silicon Valley-based companies do have a network of high-level personal connections that could help to make this initiative work for the benefit of both companies, as well as to working Microsoft’s detriment.

Yahoo Directors Will Be the Ultimate Arbiters of Microsoft’s Buyout Offer’s Fate

(NewsVisual, powered by IntellectSpace) -- After several months of suspense, Yahoo Inc (NASDAQ:YHOO) and Microsoft Corp (NASDAQ:MSFT) could soon be entering the final act of their buyout drama, with a final decision possibly being only days away.

“Steven A. Ballmer, Microsoft’s chief executive, told employees on Thursday that the company would announce in 'short order' which of three paths it would choose in its pursuit of Yahoo,” The New York Times reported in an online article on Friday.

For its part, Yahoo also has not foreclosed itself from entering into a merger:

“But Jerry Yang, Yahoo’s chief executive, has said his company is not opposed to selling to Microsoft for more,” The Times article reported.

Yahoo rejected Microsoft’s initial bid price of $31 per share as to low, and the speculation in the news media is that Microsoft will offer a higher price for the Silicon Valley Company.

But whatever Microsoft decides to offer, it’s inevitable that it will be Yahoo’s Directors who make the final decision concerning the proposed deal’s fate.

VC Funding Update: Relion Inc. Completes Its Series of C Round Financing

(NewsVisual, powered by IntellectSpace) -- Although Exxon Mobile Corp (NYSE: XOM) could very well be the most profitable company in America, future generations are going to need a more greenish company like Relion Inc. if the planet earth is to survive for them, and that’s why it’s good news that this forward-looking company received a new round of venture-capital funding.

Relion Inc. is a Spokane, Wash.-based company that specializes in providing fuel-cell solutions for backup power applications.  In particular, the company develops and markets a line of modular Proton Exchange Membrane (PEM) fuel cell products.

Will Exxon Mobile’s Directors Advise the Company Effectively on PR Strategy

(NewsVisual, powered by IntellectSpace) -- As Exxon Mobile Corp (NYSE: XOM) again harvests record-breaking profits while American consumers are feeling the financial pinch of record-breaking gas prices at the pump, the oil giant’s Board of Directors has its work cut out for it.

In particular, Exxon’s Directors must deal with the public relations problem of reaping profits while so many Americans are in a rage of gas and diesel prices.

What people often interpret as excessive profits on the part of the oil companies has already become an issue in the Presidential campaign.  For example, Senator Hillary Clinton is not only proposing a suspension of the gasoline tax, but she is also proposing the implementation of a windfall-profits tax on the oil companies.

In addition, truck drivers, a group that’s been especially hard-hit by fuel price increases, have been launching protests throughout the country, with one recent demonstration taking place in Washington, DC.

With such a backlash against its industry being now so palpable, Exxon’s Directors need to act proactively in order to stave off a public relations nightmare as well as news laws that could adversely impact the company’s bottom-line.

Microsoft’s Directors Could Authorize a Higher Price for Yahoo, The Times Suggests

(NewsVisual, powered by IntellectSpace) -- After they met on Wednesday, reports say that the Directors at Microsoft Corp (NASDAQ:MSFT) could be planning to instruct the company’s negotiating team to increase its buyout bid for Yahoo Inc (NASDAQ:YHOO).

The New York Times, citing an unnamed source, reported on Thursday the range of decisions facing the software behemoth’s board:

"The board was expected to consider a range of options, including Microsoft raising its offer in an attempt to break the stalemate between the companies," The Times article said.

"In recent days, Microsoft has considered increasing the bid, currently valued at $29.06 a share, to $32 or $33," the report added.

The article also said that Microsoft could back out of its bid altogether, which would cause Yahoo’s share price to plunge.

This maneuver would leave Microsoft with the option of making another buyout bid sometime in the future, which would presumably be under more auspicious circumstances for the Redmond giant.

Whatever the strategies under consideration, there can be little doubt that the company’s Directors are playing a key role as this drama unfolds before a worldwide audience of business-news watchers.