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.

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.

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.

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.

Pilots’ Union Could Scuttle the Merger Talks Between United and US Airways

(NewsVisual, powered by IntellectSpace) -- Although other major airlines have merged despite opposition by the pilots’ unions, the deal between United Airlines Inc, which is owned by UAL Corp (NASDAQ:UAUA), and US Airways Group Inc (NYSE:LCC) could be killed in its crib because of union opposition.

"A 'toxic stew' of problems with pilots and other issues at US Airways would imperil any merger between that carrier and United Airlines, the leader of the United pilots’ union said on Tuesday," The New York Times reported in an article.

Yet despite the opposition of the pilots’ union with regard to the Northwest and Delta merger, the deal recently went through anyway, and the key could have been the strong personal ties between the two airlines’ board rooms.

In a similar fashion, the personal relationships between the Directors at United and US Airways could also help to overcome the objections of labor groups in this case, too.

Warren Buffett’s Company Could Be Close to Acquiring American Express, Reports Speculate

(NewsVisual, powered by IntellectSpace) -- With the media rumor-mill suggesting Warren E Buffett’s Berkshire Hathaway Inc (NYSE:BRK) and the American Express Co (NYSE:AXP) are in merger talks, it seems likely that a deal could be struck anytime soon, especially since there exist a series of personal connections between the two companies’ Directors.

"'American Express may be considering eventually to become a private enterprise and become delisted, or become part of Warren Buffett’s empire,' Philip Berman of Berman Asset Management said during the meeting, according to Bloomberg," The New York Times reported in an online article on Wednesday.

Already established friendships could drive the deal.

United Airlines and US Airways Could be Contemplating a Merger Deal, Reports Suggest

(NewsVisual, powered by IntellectSpace) -- As climbing fuel costs strain the finances of all the major airlines, United Airlines Inc, which is owned by UAL Corp (NASDAQ:UAUA), is reported to be in merger talks with US Airways Group Inc (NYSE:LCC), and the prospect of the two companies being able to join their cultures appears to be good.

"After seeing its latest prospect slip away on Sunday with the decision of Continental Airlines to end merger talks, United restarted discussions with US Airways about a possible deal, according to people with direct knowledge of the negotiations," The New York Times reported in an article on Tuesday.

Given the close personal connections between these two airlines, a merger could be more workable than with other potential partners.

Microsoft and Yahoo Could Still Be In Talks Via a Back Channel

(NewsVisual, powered by IntellectSpace) -- As a deafening silence emanates from Sunnyvale and Redmond, the media speculation began to build on how Microsoft Corp (NASDAQ:MSFT) would respond to the reluctance of Yahoo Inc (NASDAQ:YHOO) to become part of the software-maker’s empire.

At this point, the media’s consensus is that there exists no direct contact between the two sides.

"There was no direct contact between the two sides this past weekend and people close to both camps said they were preparing for the next stage of battle. Microsoft was unlikely to make a move on Monday, however, people familiar with the matter said," The Wall Street Journal reported in an article on Monday.

Yet the Journal’s report fails to consider that the companies could be continuing negotiations through a back channel between Directors from the two companies’ boards.

This back channel would help the two companies to evade the media spotlight.

Kerkorian to Endorse Ford Motor Co’s Turnaround with Tracinda’s Checkbook

(NewsVisual, powered by IntellectSpace) -- In a move that’s likely to be interpreted as a rock-solid endorsement of the auto company’s leadership, the investment company of Kirk Kerkorian, Tracinda Corp, announced on Monday that it plans to buy 20 million shares of the Ford Motor Co (NYSE:F), The New York Times reported.

NewsVisual reported last Thursday that Ford went from a net loss of $282 million in the first-quarter 2007 to a garnering a net income of $100 million in the first-quarter 2008, signifying that the auto maker was now completing its turnaround stage.

Evidently, Mr Kerkorian shares this assessment.

“Tracinda believes that Ford management under the leadership of Chief Executive Officer Alan Mulally will continue to show significant improvements in its results going forward,” The Times article reported that firm’s statement as saying.

These comments can serve to boost Ford’s share price in the markets.  Moreover, given Mr Kerkorian’s connections to other investment companies, his involvement with Ford could inspire other investors to jump on board and buy some of the car company’s stock as well.

Board-Room Ties Could Have Helped Create AT&T and Starbucks Wi-Fi Deal

(NewsVisual, powered by IntellectSpace) -- In a strategic partnership deal that could have been propelled forwarded by personal connections among the two companies’ board members, AT&T Inc (NYSE:T) and Starbucks Corp (NASDAQ:SBUX) announced on Friday that they would be launching AT&T Wi-FiSM service at company-operated Starbucks stores.

The companies have already started the deployment of AT&T Wi-Fi service at Starbucks locations in San Antonio. But this is only the first market to deliver the complete AT&T Wi-Fi experience in what will be a service offered nationwide.

“With the power of our Wi-Fi network, and through our partnership with Starbucks, we’re strengthening our ability to meet the needs of today’s mobile consumer virtually anywhere and everywhere,” said AT&T CEO/Chairman Randall Stephenson in the companies’ joint statement.

The company officials at Starbucks exuded an equal level of enthusiasm:

“We continue to build on the experience we know our customers expect from us,” said Starbucks CTO Chris Bruzzo in the statement.

“By partnering with AT&T as our U.S. Wi-Fi provider, we aim to deliver a better value, greater convenience and seamless connectivity in a mobility centric world to our customers,” Mr Bruzzo added.

Triarc to Takeover Wendy’s to Form the Third-Largest Restaurant Chain

(NewsVisual, powered by IntellectSpace) -- In a merger deal that could have been initiated by close board-room connections, Triarc Companies Inc (NYSE:TRY), the franchisor of the Arby's restaurant system, is buying out in an all-stock transaction Wendy’s International Inc (NYSE:WEN), the two companies announced on Thursday in a joint statement.

The new company will be the nation’s third-largest quick-service restaurant company, with approximately 10,000 restaurant units and sales of approximately $12.5 billion, the statement said.

The new company expects to focus on breakfast, global expansion for both brands, and growth through future acquisitions and new unit development.

“We believe the combination of Arby’s and Wendy’s will create a powerful new restaurant company and a ‘must own’ restaurant stock with significant upside potential as we execute on the many opportunities we see to expand and improve these two very valuable brands,” said Triarc CEO/Director Roland Smith.

“Through the execution of major operating improvements and the realization of synergies, we expect to generate substantial value for shareholders. We also expect to execute on a number of growth initiatives for the combined organization that should further increase shareholder value,” he added.

The deal could have come together as a result of high-level personal connections between the two companies.

Recent Losses Could Create Pressure for Directors of Northwest and Delta to Abort Merger Deal

(NewsVisual, powered by IntellectSpace) -- As their merger deal was being filed before the Securities and Exchange Commission, Delta Air Lines Inc (NYSE:DAL) and Northwest Airlines Corporation (NYSE:NWA) both announced on Wednesday that they suffered enormous losses due to escalating fuel costs in the first-quarter 2008.

“Northwest’s first quarter performance was negatively impacted by the dramatic increases in the price of oil. Year-over-year our first quarter total fuel expense increased by $445 million, or 57.3 percent,” said Northwest Airlines CEO/President Doug Steenland in the company's statement.

“The sustained high fuel prices represent an extraordinary challenge to Northwest and the entire airline industry. In response to fuel, we have taken a series of actions and will continue to monitor the impacts of fuel prices on our operation and are prepared to take additional actions as necessary,” Steenland added.

The Northwest deal with Delta was meant specifically to help alleviate the fuel cost burden, as well as other costs, for both airlines.

At the time it was officially announced, here’s how the rational for the deal was explained to investors:

“Our need to respond to the pressures of dramatically rising fuel costs and a softening U.S. economy drove us to take a closer look at all options to protect Delta’s future. The merger with Northwest will create an airline with the size, scale and global presence to weather economic downturns and compete long-term in the global marketplace,” said Delta CEO Richard Anderson on April 14.

To underscore that the deal’s cost-saving rational had become even more compelling during the interim period, Mr Anderson’s April 14 comments were repeated in Delta’s press release on Wednesday.

In fact, Delta announced in its Wednesday statement that it lost $278 million in the first-quarter 2008.

While the two airlines’ top executives continue to vigorously defend the deal, investors could still raise questions about the deal’s benefits, and they could pressure the airlines’ Directors to withdraw their support from the deal.

Despite Market Conditions, United and Continental Could Still Become Merger Partners

(NewsVisual, powered by IntellectSpace) -- Although the volatility of oil prices and shifting market conditions change the calculations and strategies on an almost daily basis, the next major carriers to merge could still be UAL Corp’s (NASDAQ:UAUA) United Airlines and Continental Airlines Inc (NYSE:CAL).

Rising fuel prices have caused UAL Corp to suffer huge financial losses and, in turn, UAL’s share-value to decline, which changes the playing field for the negotiators.

"UAL was suddenly the smaller airline by market cap, with a value of $1.6 billion, compared with Continental’s $1.7 billion. That change, and new questions about UAL’s overall financial health, could alter the balance of power as the two airlines try to hammer out a deal," The New York Times reported in an online article on Tuesday.

Nonetheless, the personal connections between the Directors at United and Continental could be the key factor that determines the viability of a deal.

Partnership with Apple Helps to Boost AT&T’s Growth in Wireless Revenue

(NewsVisual, powered by IntellectSpace) -- The partnership between AT&T Inc (NYSE:T) and Apple Inc (NASDAQ:AAPL) appears to be paying off for both companies. 

On Tuesday, AT&T reported a 26.7 percent increase in earnings per share for the first-quarter 2008, with a significant portion of that revenue growth coming from its wireless services division.

“Total wireless revenues increased 18.3 percent versus the year-earlier first quarter to $11.8 billion,” the company said in its statement.

More specifically, AT&T’s statement attributed that increase to “average monthly revenues per subscriber.”

And a significant factor for that particular area of growth had everything to do with AT&T’s partnership with Apple.

Here’s how The New York Times analyzed the relationship:

"The company, which is the exclusive carrier for Apple’s iPhone, added a net of 1.3 million wireless customers, giving it a total wireless customer base of 71.4 million subscribers. That is an increased pace of growth compared with a year ago. The average monthly revenue a subscriber, a closely watched measure, increased 2 percent, to $50.18," The Times reported in an online article on Tuesday.

Given the fact that this partnership helps both of these companies to generate revenue, it will be important for them to make certain that it remains stable.

Therefore, it’s important that the two companies keep some open channels of communication, such as ones between the companies’ Directors in order to help keep their business relationship functioning at an optimal level.

Newsday Deal Between Tribune Co and News Corp Could Be Close, Reports Say

(NewsVisual, powered by IntellectSpace) -- In what could become a model for future merger deals for the hard-pressed newspaper industry, the Tribune Co (NYSE:TRB) is apparently close to selling its property Newsday to the media empire News Corp (NYSE:NWS), according to The Wall Street Journal.

This deal would consolidate News Corp’s already existing marketshare in the greater New York area, potentially giving the company the ability to exercise new synergies.

“Under the terms being discussed, Newsday would be part of a joint venture with News Corp's New York Post and various non-newspaper assets owned by News Corp, people familiar with the matter said. News Corp. would own the bulk of the combination, with Tribune retaining a stake of less than 5%,” The Journal reported in an article on Tuesday morning.

Although The Journal reports that this deal was pretty much fashioned by the two companies’ top people, Rupert Murdoch and Sam Zell, there are sets of other personal connections between the two companies that could play an important role when the merger occurs, which would make it easier for them to achieve the economies of scale that the deal proposes.

Does Microsoft’s Hiring a Lobbying Firm Signal That a Deal with Yahoo is Close?

(NewsVisual, powered by IntellectSpace) -- Based on various news reports that say Microsoft Corp (NASDAQ:MSFT) has hired a lobbying firm to help it win over regulatory approval for it, the long awaited buyout deal of Yahoo Inc (NASDAQ:YHOO) could be imminent.

"The software company, bracing for a regulatory squabble in its takeover bid, recently hired Bryan Cave Strategies to lobby the federal government on the proposed multibillion-dollar deal," The Mercury News reported in an online article last Friday.

Despite the two technology companies’ combative public statements, it’s highly probable that behind-the-scenes talks among the two companies’ Directors were ongoing.

Personal Connections Could Be Keeping the Talks Between EA and Take-Two Alive

(NewsVisual, powered by IntellectSpace) -- Electronic Arts Inc (“EA”) (NASDAQ:ERTS) extend the deadline of its buyout offer to Take-Two Interactive Software Inc (NASDAQ:TTWO), the maker of Grand Theft Auto, by a month, according to The New York Times. 

"EA’s offer will now expire on May 16 instead of 11:59 p.m. Friday. As of Thursday, about 6.4 million shares of Take-Two had been tendered, representing roughly 8 percent of Take-Two’s outstanding shares," The Times reported in its article.

The close personal connections between the members of both EA’s and Take-Two’s Boards of Directors could serve to keep the merger negotiations going.

Erstwhile Rivals Yahoo and Google Move Closer to Sealing a Partnership Deal, Reports Say

(NewsVisual, powered by IntellectSpace) -- A deal between Yahoo Inc (NASDAQ:YHOO) and its rival Google Inc (NASDAQ:GOOG) to use the latter’s search-advertising service moved closer to becoming a reality, according to The Wall Street Journal.

“Such a deal could increase Yahoo's cash flow by more than $1 billion a year, according to Citigroup Global Markets analyst Mark Mahaney. The reason is that Google's system generates significantly more revenue for each search query than Yahoo's does,” The Journal reported in an article on Thursday.

The extra cash in Yahoo’s bank account could make it more expensive for Microsoft Corp (NASDAQ:MSFT) to effectuate its buyout plan.

The underlying subtext to the partnership could, indeed, be part of an anti-Microsoft strategy.  Still, the partnership could not have been in the offing without behind-the-scenes relationships.

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 have helped to spur this initiative forward.

Do Personal Ties Make a United Airlines and American Airlines Merger More Probable?

(NewsVisual, powered by IntellectSpace) -- The personal connections between the Directors of UAL Corp (NASDAQ:UAUA) and AMR Corp (NYSE:AMR) could determine the next airlines to merge after that of Delta Air Lines Inc (NYSE:DAL) and Northwest Airlines Corporation (NYSE:NWA).

The media speculation spins out several different merge combinations.  Yet none of these combinations can demonstrate the corporate board-room connections of UAL and AMR, which could mean that the most likely merger is between United Airlines and America Airlines.

"Both United Airlines parent UAL Corp. and AMR Corp.'s American Airlines could do deals that would quickly eclipse the proposed Delta-Northwest combination, which would be the world's biggest carrier," The Wall Street Journal reported in an article on Wednesday.

United and Continental Are Likely to Be the Next Major Airlines to Merge, Reports Suggest

(NewsVisual, powered by IntellectSpace) -- In the immediate aftermath of the merger deal between Delta Air Lines Inc (NYSE:DAL) and Northwest Airlines Corporation (NYSE:NWA), speculation in the business-news media began to build that the next major carriers to merge would be UAL Corp’s (NASDAQ:UAUA) United Airlines and Continental Airlines Inc (NYSE:CAL).

These two airlines “reportedly have been in talks for months," Reuters said in an online article on Tuesday.

"Continental said on Tuesday that it would review strategic alternatives. But pilots of both companies said they would not back a merger unless they approved of the terms," Reuters added.

However, as proved to be the case with Delta and Northwest, the personal connections between the Directors at United and Continental could be the key factor that determines the viability of a deal.

It’s Now Official: Delta and Northwest Announce Merger Deal

(NewsVisual, powered by IntellectSpace) -- In a long awaited announcement, Delta Air Lines Inc. (NYSE:DAL) and Northwest Airlines Corporation (NYSE:NWA) jointly announced on Tuesday that the companies struck a merger deal that would create the country’s largest airline, with a combined value of $17.7 billion.

The new airline will be called Delta, the joint statement said.  The combined company’s leadership will be as follows:

Delta CEO Richard Anderson and Delta Chairman Daniel Carp will both retain their current roles in the new company; Northwest Chairman Roy Bostock will become the new company’s Vice Chairman; and Ed Bastian will be the new company’s CFO/President.

Seven of the new company’s Directors will come from Delta's board, including Anderson, and five of them will come from Northwest's board, including Bostock and Northwest CEO Doug Steenland.

In addition, one of the new company’s Directors will come from the Air Line Pilots Association (ALPA), according to the companies’ joint statement.

Personal Ties Help to Forge a New Marketing Alliance Between Google and Salesforce

(NewsVisual, powered by IntellectSpace) -- In an effort to compete against Microsoft Corp’s (NASDAQ:MSFT) Office applications, Google Inc (NASDAQ:GOOG) announced on Monday that it will forge a strategic alliance with Salesforce.com Inc (NYSE:CRM) to help market Google’s own office-type applications, such as its word-processing and e-mail programs.

“We’re happy to unveil Salesforce for Google Apps, a new product for all of those using Salesforce.com available at no additional charge,” Google said in its statement. 

“It brings the collaboration and communications features of Google Apps directly into the user experience of Salesforce.com, and is focused on streamlining the activities most frequently requested by our users,” the Google statement added.

Delta and Northwest Will Complete Their Merger Deal on Tuesday, The Journal Says

(NewsVisual, powered by IntellectSpace) -- As the airline industry continues to be roiled by flight cancellations, The Wall Street Journal reported that a merger deal between Delta Air Lines Inc (NYSE:DAL) and Northwest Airlines Corp (NYSE:NWA) is imminent and could be announced as earlier as Tuesday of the week.

The one fly in the ointment concerns the price that the deal will command:

"The deal could value Northwest at roughly $3 billion, these people said, though terms were still being negotiated. That would be well below Northwest's market value of more than $4.6 billion as of Feb. 1, reflecting the industry's worsening prospects in recent weeks," The Journal reported in an article on Monday.

Delta Air Lines Pilots Agree to Deal with Northwest Airlines, Reports Say

(NewsVisual, powered by IntellectSpace) -- In a deal that would create the nation’s largest carrier, the pilot’s union of Delta Air Lines Inc (NYSE:DAL) signed on to the merger agreement with Northwest Airlines Corp (NYSE:NWA), paving the way to the long-awaited deal’s conclusion, according to Bloomberg News.

"An accord would raise pilots' pay and give them an equity stake in the combined airline, which would keep Delta's name and Atlanta headquarters, said the [sources], who didn't want to be identified because the plan is still private," the Bloomberg article said.

To implement this deal successfully, however, the two airlines will have to gloss over any differences in their companies’ cultures.  Because there already exists a network of personal relationships between the two companies, though, that task should be made a little bit easier.