Tuesday, August 4, 2009
Dude, Where’s My Czar?
Add Melissa Hathaway to the list of cybersecurity experts who don’t want the job of White House cybersecurity czar. Hathaway, a former Bush administration official who led President Obama’s recent 60-day review of the federal government’s cybersecurity efforts, was thought to be a leading contender for the position. But according to The Wall Street Journal, she asked not to be considered for that post about two weeks ago, citing personal reasons. And now she’s resigned her current post as well.
Remember the last time you set foot in a real brick-and-mortar bank? Me either. And we’re not the only ones. With more and more people managing their financial affairs via PC and mobile device, a bank’s retail presence no longer need be as ubiquitous as it once was. The latest institution to realize this–Bank of America, which, according to The Wall Street Journal, plans to close up to 10 percent of its 6,100 branches across the country over the next three-to-five years.
Is Google’s Android OS a panacea for the decrepitude and irrelevance that are now the hallmark of Motorola’s handset division? The company is betting that it is. “People familiar with the matter” tell The Wall Street Journal that Verizon and T-Mobile USA both plan to offer Motorola handsets running the OS by the end of the year. 
Welcome back to Weekend Update, where we showcase some of the highlights from this site over the past week. In the umpteenth round of the old versus new media match, the Associated Press in its annual meeting this week played into the stereotype of the grizzled no-nonsense editor who shakes his fist at the new interweb thing (or was it intertube?) and its feisty friend, Google News, who are running amok on his lawn.
Neither Sun nor IBM will confirm that the two companies are even in talks, but the two will reportedly announce their merger on Monday–not today as previously thought. And after the deal, then what? Massive layoffs, most likely. 
Its hopes of rebuilding under bankruptcy protection effectively dashed by the ongoing financial crisis, Nortel is considering selling off its two biggest business units to rivals. Reportedly on the block: the company’s wireless-gear and office telecom equipment units.
Sirius XM Radio caught a lucky break recently when NASDAQ added another three months to a suspension of its delisting rules. With a share price below the $1 minimum price requirement to remain listed on the exchange, the struggling satellite radio broadcaster’s delisting seemed imminent. No longer.
Ironic, isn’t it, that Google, one of Net neutrality’s staunchest advocates, has been approaching major cable and phone companies with a proposal that appears to violate the very tenets of that principle? How could a company that has argued tirelessly that all Internet traffic should be treated equally, suddenly reverse course and seek preferential treatment for its own traffic?
A few weeks back, RBC Capital Markets analyst Mark Sue warned that Nortel is facing a very bleak future. “Considering the worsening macro environment, Nortel’s challenged industry position, and concerns related to liquidity while the capital markets are basically closed, we think bankruptcy is a distinct possibility down the road,” Sue wrote in a note to investors. Looks like Sue was right, and the road to which he referred was a short one. 
Looks like Sirius XM CEO Mel Karmazin won’t be taking the company private anytime soon, although given its current stock price there’s no reason he couldn’t. At its current value, you’d have to sell off more than 70 shares of SIRI to purchase a one-month subscription to Sirius Satellite Radio.
