In the papers 7 May
07-05-2008
by Sylvia Leatham

Google exec defects to Facebook | Qwest posts 35 percent drop in profit

The Irish Times reports that Irish software company Iona Technologies, the subject of several takeover approaches, has agreed a new service contract with Chief Executive Peter Zotto that boosts his pay package. Under the new deal, Zotto's salary for this year rises by almost 8 percent to USD400,000. He is also entitled to a bonus of USD300,000 if the company meets certain financial targets. The details emerged in Iona's annual report, which has just been filed with the US Securities and Exchange Commission.

The Wall Street Journal says that an unlikely alliance of titans from the cable, internet and chip industries in the US are investing USD3.2 billion in a company that will deliver web access for mobile phones and laptops using WiMax technology. The venture includes wireless provider Sprint Nextel and start-up Clearwire, along with cable TV giants Comcast and Time Warner Cable, internet giant Google and chipmaker Intel. Analysts say the venture, valued at more than USD12 billion, will have a two year head-start on rivals Verizon Wireless and AT&T, which are just beginning to sketch out plans for their next-generation wireless networks.

The paper also says Qwest Communications has posted a 35 percent drop in first-quarter profit but backed its forecasts for the year, suggesting it expects to weather economic and competitive pressures. Qwest said it was comfortable with its forecast of 2008 revenue to be flat to slightly below the previous year's USD13.8 billion. "Our goal here is to work our way through the challenging economic environment," said Chief Financial Officer John Richardson.

According to the Financial Times, leading chipmakers have agreed to collaborate in the transition to new manufacturing methods -- a step aimed at lowering development costs and speeding up technology migration. Intel, Samsung and Taiwan Semiconductor Manufacturing are collaborating in the move, which concerns the use of silicon wafers that are 450mm in diameter. The companies said they would try to have a pilot running by 2012.

The paper also notes that social networking site Facebook has hired a member of Google's top management team as its new head of corporate and public affairs. The departure of Elliot Schrage from Google's senior management group marks the second significant loss for the internet giant in less than six weeks. Sheryl Sandberg, the rising Google star who helped build Google's lucrative advertising business, left to become Facebook's chief operating officer last month.