Fast Breaks Newsfront: February 5, 2001
Gateway Reboots CEO
Scram! Gateway founder Ted Waitt became the companys chief executive again last week, replacing Jeff Weitzen, who was named CEO in January 2000. Analysts speculated that Weitzen was forced out of the House That Ted Built, which has been hit hard by the slump in PC sales.
800 Pounds and Growing
America Online boasted 26.7 million subscribers as of the end of December. Thats up 2.1 million for the quarter and 6.2 million for the year. Each on average spent 68 minutes per day using the service in January. Subscribers spent $4.6 billion shopping online during the holiday season and $20 billion for the year, and generated some 800,000 new subscriptions to various publications of its merger partner, Time Warner.
Under pressure from the wireless industry, the Federal Communications Commission decided to delay an auction for spectrum that would allow advanced wireless services. The auction, now slated for Sept. 12, was delayed from a March start so companies could evaluate their needs following the auction that ended in late January and raised about $16.8 billion.
Out the Door
Bob Davis resigned as chief executive of Terra Lycos and will serve as a consultant to the company and as a board member of Terra Lycos international joint ventures. Davis, who was the first employee at Lycos in 1995, will join venture capital firm Highland Capital Partners. Terra Lycos Executive Chairman Joaquim Agut remains to face the future, including a $6 billion breach of contract suit from IDT.
Novell Forms Cache Unit
Novell announced the formation of Volera, a subsidiary that comprises Novells fast-growing Internet caching software licensing business. Nortel Networks and consulting firm Accenture will make equity investments in the new company; the three firms said they will provide $80 million in cash to Volera. Nortel will also enter into joint development and distribution agreements with Volera.
The European Union has called for a forum for greater cooperation among law enforcement, industry and the public in increasing awareness of and developing solutions to address cybercrime. EU member states that have not already done so should create computer-crime police units and enhance their laws against cybercrime.