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Intro to Business News

Intro to Business News is South-Western's service to provide summaries of the latest Business news stories. Review the brief summaries and, for stories of interest, select the full summary.
ORGANIZING LARGE BUSINESSES
Title  Brief Summary 
A Sirius Merger for XM
Full Summary
Two giants of satellite radio, Sirius and XM, announced in February that they have agreed to merge in a deal worth $13 billion. The merger faces regulatory hurdles, however, as the combination of the two firms may violate antitrust restrictions.
(Updated February 2007)
Chairwoman Dunn Done in by HP Spy Scandal
Full Summary
When directors at Hewlett-Packard Co. determined to root out the leaking of confidential boardroom information to the press in mid-2006, none of the leaders involved could have imagined that their attempted surveillance of directors, staff, and journalists would erupt into the biggest corporate scandal of the year. What role did HP's organizational structure play in the leadership meltdown, and what lessons can be learned from the year's biggest business blunder?
(Updated November 2006)
The Advent of 'Goo-Tube'
Full Summary
What do you get when you mix the world's paid-search leader with a fast-growing video sharing Web site? GooTube. In fall 2006, Google snatched up YouTube in a $1.65 billion stock purchase. Analysts say the acquisition is likely to transform the online video space.
(Updated November 2006)
Fixing FEMA
Full Summary
The Federal Emergency Management Agency (FEMA)--the U.S. agency responsible for responding to floods, hurricanes, and other natural disasters--is under pressure for its unsteady response to Hurricane Katrina. Yet while many are critical over the agency's performance, few agree on what should be done to improve its effectiveness.
(Updated May 2006)
Finding Nemo at Disney
Full Summary
The Walt Disney Company expanded its entertainment empire in 2006 by acquiring Pixar studios, the animation powerhouse behind such blockbusters as Finding Nemo, The Incredibles, and Toy Story. The $7.4 billion purchase absorbed Pixar into the Disney Studio Entertainment division, one of Disney's four operating units, alongside Parks and Resorts, Consumer Products, and Media Networks.
(Updated May 2006)
Another Blue Christmas for Barbie
Full Summary
Barbie doll manufacturer Mattel faces a blue Christmas this holiday season as weak sales and strong competition have forced the toy giant to shuffle top leadership and enter a new phase of restructuring.
(Updated November 2005)
IBM Fires in Europe, Hires in India
Full Summary
IBM announced that it is cutting thousands of jobs in Europe as part of an effort to re-align its European operations. The U.S. computer giant, which has over 300,000 employees around the world, expects the restructuring move to make the company more cost-efficient while it looks to expand in Eastern Europe and Asia.
(Updated September 2005)
Another Reorganization? What to Expect, What to Avoid
Full Summary
Re-organizations occur more often than should. The article discusses both the positive and the negative impacts that they can have on the both the employee and the organization at large.
(Updated November 2003)
Benefits from eliminating the double-taxation of dividends
Full Summary
The favorable tax treatment of capital gains over dividends caused many companies to avoid paying out dividends. Only 30% - 35% of companies pay dividends today. As the stock market expanded during the 90's, most investors did not care. This is likely to change. The author of the article argues for an elimination of double taxation on dividends, not only to increase the shareholders' return, but to reduce an increasingly large dependence of corporations on debts financing.
(Updated November 2003)
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