........
To: fork@kragen.dnaco.net
From: Joseph S. Barrera III<joe@barrera.org>
Reply-To: Joseph S. Barrera III<joe@barrera.org>
Subject: Re: Hey
Rocket Rick at MSFT? Hmmm...
------------------------- Article -------------------------
Tuesday, August 24, 1999 02:14 PM
SEATTLE, Aug 24 (Reuters) - Microsoft Corp. (Nasdaq:MSFT)
officials declined comment Tuesday on a report that Richard
Belluzzo, former chief executive officer of computer maker SGI
(Nyse:SGI) , would be named to head its Internet operations.
SGI, formerly known as Silicon Graphics, said Monday that
Belluzzo had resigned unexpectedly as chairman and CEO to take
a "noncompetitive, non-CEO position with another company."
Belluzzo spent less than two years at troubled SGI after
being recruited in 1998 from Hewlett-Packard Co. (Nyse:HWP) , where
he had been regarded by some as heir-apparent to chief
executive Lewis Platt.
Microsoft has been searching for a high-profile executive
to take over its MSN.com portal and other Internet operations
since November, when group Vice President Pete Higgins stepped
down to take an indefinite leave of absence.
A number of candidates reportedly have turned down the job,
including Brad Silverberg, another high-ranking Microsoft
executive on indefinite leave. Silverberg recently was lured
back part-time to advise President Steve Ballmer.
Earlier this year Ballmer handed over responsibility for
the newly formed consumer and commerce group, which includes
the Internet operations, to two seasoned Microsoft executives,
Brad Chase and Jon DeVaan, but the company made it clear it was
continuing to search externally for a successor to Higgins.
In addition to the Web portal, the consumer and commerce
group includes the Microsoft Network online access business, as
well as its consumer software titles, hardware products, WebTV,
and book publishing.
In the latest fiscal year, the consumer and commerce group
generated $2.4 billion in revenues, or 12 percent of the
company's total $19.7 billion, but the business is seen as
strategically critical, especially in the company's current
battle against rival America Online Inc (Nyse:AOL) .
Last month Microsoft agreed to sell its MSN Sidewalk arts
and entertainment guide to a rival for about $280 million in
stock, and executives said they would consider selling other
unprofitable properties.
"The group has to be made more competitive and profitable,
especially in light of its Internet activities that will be
important to Microsoft's ultimate strategy," said Bill Epifanio
of J.P. Morgan strategy.
Microsoft was up $5.06 at $91.50 in Nasdaq trading,
although Epifanio said that was unrelated to the report in the
Wall Street Journal that Belluzzo would be named head of the
group.
He said the company was gaining in part on optimism that
the long-awaited Windows 2000 operating system would be
released for manufacturing soon. Epifanio also raised his
fiscal 2000 estimate for Microsoft Monday to $1.57 a share from
$1.55, concluding that concerns about the year 2000 computer
bug will cause little disruption in Microsoft sales.
1999, Reuters
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