After reviewing the Google (GOOG) proxy, Henry Blodget asks a reasonable question: How did Eric Schmidt spend $474,662 on security last year? One answer: By spending $58,093 less than he did the year before.
We don't know what Eric did to trim back his $532,755 bill from 2006, and we still don't know why the company spends a half-mil on his security -- but nothing on Larry and Sergey's. But we do know that by CEO standards, Eric's costs aren't beyond the pale. And by at least one measuring stick, Eric's security needs are minimal: Last year Oracle (ORCL) paid $1.7 million for Larry Ellison's security tab.
All this and more can be found in an excellent Forbes.com piece by our former colleague Lisa Lerer, who pored through SEC filings and talked to experts to get a sense of who spends what on corporate security, and what they spend it on. Key takeaway re: Eric, Larry, Sergey and Larry:
So is Ellison in more danger then Google's famous founders? Not
necessarily, say security experts. Most likely, they argue, neither
company is fully disclosing their security spending, but are instead
folding some of them into expenses that aren't listed in SEC filings.
"Those executives are most likely not revealing their high-end costs,"
says Bruce Alexander, president of executive protection consulting firm
All Source Consulting Group. "I would guess that they are
under-reporting."
Comcast and Time Warner Cable, the two biggest U.S. cable companies, are in talks to fund a wireless joint venture that would be run by Sprint Nextel and Clearwire, the Wall Street Journal reports ($).
According to the plan, Comcast (CMCSA) would kick in $1 billion, Time Warner Cable (TWC) would contribute $500 million, and Bright House, Google (GOOG), and Intel (INTC) could also fund the JV. The network would operate using a nascent wireless technology called WiMax, which Sprint (S) has been trying to roll out and Clearwire (CLWR) already sells.
Why bother? The cable companies' main rivals -- AT&T (T) and Verizon (VZ) -- are moving into their territory by offering digital TV service over new, fiber-optic networks. They both also have nationwide wireless networks, which Comcast and Time Warner don't. Cable companies haven't needed to offer wireless yet, but they might eventually. So by partnering with Sprint, they could sell wireless phone and Internet access to match whatever the telcos might offer.
Sound familiar? Sprint and the cable companies have worked together before: In 2006, they teamed up to buy a bunch of wireless spectrum together in a FCC auction. They also have another joint venture, called Pivot, which was supposed to allow the cable companies to add wireless to their product line. It was a flop.
So why make a deal now? Because AT&T and Verizon just spent billions of dollars on spectrum in the FCC's latest wireless auction, which they'll use in a few years to power faster, next-gen mobile networks. Both telcos will use a different wireless technology than WiMax to power their networks, setting up a potential format war. So Sprint and Clearwire -- and the cable companies -- need to act fast to establish a lead.
The deal could get done quickly: The Journal says new Sprint CEO Dan Hesse wants to have something to show off during next week's big wireless trade show in Las Vegas.
SVZCLWRTWCTCMCSAINTCGOOG
Startup Advice: How To Survive The Coming Drought
read moreTue, 25 Mar 2008 23:03:00 GMTFabrice Grinda
Homeowners hate to sell their houses for less than they paid for them. When prices fall, instead of adjusting to the new reality, they sit on the house -- and liquidity dries up in the market. After many months, they adjust their expectations and the market begins to clear again.
The same thing is about to happen in the startup world. In theory, startups should be insulated from the current macroeconomic headwinds, caused by massive deleveraging. Venture capitalists don't use debt, and they have to spend the capital they raise. And few startups use debt.
But as valuations of consumer Internet companies have come down by 25% or more, and the IPO market completely shuts down, exit multiples will decrease accordingly. And just like everyone else, VCs are like sheep: If everyone is putting their heads down and bracing for the worst, they will do the same, and hang on to their money.
But they will: Valuations are about to come down, and few deals will get funded for 12 months. Eventually, the need for cash will win and deals will start happening -- but at much lower prices.
So what can you do with this knowledge? Raise as much cash as you can (even if it's not at the valuation you dreamed of) and be extremely careful about spending it. People with cash will be in a much stronger position in 12 months than those without, and should be able to buy companies and advertising at much lower prices.
Your greed versus fear dial should be turned to the fear side right now. Pay attention.
SAI Contributor Fabrice Grinda is CEO of OLX, #59 on the SAI 100, and posts regularly at www.fabricegrinda.com.
read moreTue, 25 Mar 2008 21:11:00 GMTVasanth Sridharan
Still don't believe the credit crunch will hit the tech world? Merrill Lynch (MER) is requiring Santa Clara-based Agilent Technologies, a measurement and instruments maker spun out of HP many years ago, to repay a $1.5 billion loan three years ahead of schedule.
Agilent took the original loan from an undisclosed third party, backed by Merrill. Now the original lender can't cover, so the not-exactly-swimming-in-cash-itself Merrill is calling it in. Agilent has to repay the loan by July, and a spokesman says that the company has $3 billion of cash on hand.
What happens to debtors who aren't flush with money?
read moreTue, 25 Mar 2008 21:02:00 GMTMichael Learmonth
It looks like Clear Channel is the only one who wants its $19 billion buyout to close. The WSJ reports the "mood around the deal has darkened" as the prospective buyers, Thomas H. Lee Partners and and Bain Capital Partners, are unable to come to terms with its lenders, Citigroup, Morgan Stanley, Deutsche Bank, Credit Suisse, RBS and Wachovia.
The Journal's source says it all: "No one wants to do this deal except for the seller."
ComScore Delays Release of Google Paid-Click Report
Did Google's paid ad clicks crater again last month -- or recover? We'll have to wait until tomorrow to find out.
Stats giant comScore was supposed to release its February "paid clicks" report today after the market closed, but we now hear it will be delayed until tomorrow. Why? We've called comScore for comment, but at this point have no real info.
