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Atari Online News, Etc. Volume 13 Issue 38
Volume 13, Issue 38 Atari Online News, Etc. September 23, 2011
Published and Copyright (c) 1999 - 2011
All Rights Reserved
Atari Online News, Etc.
A-ONE Online Magazine
Dana P. Jacobson, Publisher/Managing Editor
Joseph Mirando, Managing Editor
Rob Mahlert, Associate Editor
Atari Online News, Etc. Staff
Dana P. Jacobson -- Editor
Joe Mirando -- "People Are Talking"
Michael Burkley -- "Unabashed Atariophile"
Albert Dayes -- "CC: Classic Chips"
Rob Mahlert -- Web site
Thomas J. Andrews -- "Keeper of the Flame"
With Contributions by:
Fred Horvat
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=~=~=~=
A-ONE #1338 09/23/11
~ LulzSec Hacker Arrested ~ People Are Talking! ~ "Internet Essentials"
~ Internet Tax Compromise ~ HP Mulling CEO Shakeup! ~ PSN Goes Down Again!
~ Amazon Tablet Next Week ~ Facebook Faces Uproar! ~ HP Gets A New CEO!
~ Teacher-Student Ban Out ~ Gossip Sites Horrifying ~ Twitter Terrorists!
-* Objections to COPA Updates! *-
-* Sony: Sign New Terms or Face PSN Ban *-
-* U.S. Internet Rules To Take Effect in Nov! *-
=~=~=~=
->From the Editor's Keyboard "Saying it like it is!"
""""""""""""""""""""""""""
Well, I'm another year older, so that must mean that summer is officially
over and autumn is upon us. Looking or walking outside sure seems to
validate the calendar - wet and raw (although today's it's humid for a
change, go figure!).
I don't know about you, but all I'm seeing these days is the world headed
for the dumpster! The world economy stinks, and taking everyone and
everything! There's no such thing as bi-partisan politics in the U.S.,
but who can you believe when they tell you why?! It's amazing to listen
to the political rhetoric coming from the candidates running for the next
presidential election. Been there, heard that - and look where we are
today!
Anyway, enough complaining about this stuff! Y'know, I've been thinking
about the Atari days of yesteryear, and wondering "whatever happened
to...?" I think I'm going to do a little internet research and see if I
can discover what has happened to some of our favorite (and not-so-favorite)
Atari icons from yesteryear. If I find anything, I'll try to pass it along.
Might be interesting to see what some people are up to these days! I'll
be sure to keep you posted!
Until next time...
=~=~=~=
->In This Week's Gaming Section - PlayStation Network Goes Down Again!
""""""""""""""""""""""""""""" Sony Asks Gamers To Sign New Terms!
=~=~=~=
->A-ONE's Game Console Industry News - The Latest Gaming News!
""""""""""""""""""""""""""""""""""
Sony Asks Gamers To Sign New Terms or Face PSN Ban
Sony is preparing to ban gamers from the PlayStation Network (PSN)
unless they waive the right to collectively sue it over future security
breaches.
The firm has amended PSN's terms and conditions and users have to agree
to them next time they log in.
The move comes months after a string of hacking attacks compromised over
100 million accounts of the PlayStation Network subscribers.
It is, however, possible to opt out of the agreement within the next 30
days.
Gamers will now have to try to resolve any legal issues with an
arbitrator picked by Sony, before being able to file a lawsuit.
The new clauses, dubbed "Binding Individual Arbitration," state that
"any Dispute Resolution Proceedings, whether in arbitration or court,
will be conducted only on an individual basis and not in a class or
representative action or as a named or unnamed member in a class,
consolidated, representative or private attorney general action".
The re-written terms and conditions are being presented to gamers when
they log in, but some have questioned who will notice the changes.
Tech news site The Register wondered who would notice the small print
outlining the opt-out terms, and not simply click the "agree" box having
scrolled all the way down.
Those that want to opt out will have to send a letter to Sony's Los
Angeles headquarters in the US.
Once they do, the subscribers will be able to keep their right to file a
class action lawsuit without any need for arbitration.
But before subscribers have a chance to opt out, they will still be
required to agree to the new terms the next time they log into their
accounts.
Otherwise they will not be able to use the online services.
A class action lawsuit filed against Sony in April after the first
attack, in which the details of 77 million users were stolen and PSN
went offline for 40 days, could end up costing the Japanese electronics
giant billions of dollars.
Sony Online Entertainment, the company's computer games service, was
also hit, as well as the Sony Pictures website, exposing personal
information for 25 million more accounts.
In addition, personal data of 2,000 consumers was stolen from a Sony
Ericsson website in Canada and details of 8,500 users were leaked on a
Sony Music Entertainment website in Greece.
Some time later, a group called Lulz Security claimed to have broken
into Sonypictures.com.
Sony has since apologised over the security breaches and offered
compensation packages.
PlayStation Network Goes Down Again
Since early today the PlayStation Network has been down, and it is not
due to scheduled maintenance. With any other service that might be a
slight annoyance, but nothing to really dwell on, and nothing to be
concerned about. But this is Sonys PlayStation Network, the service that
made headline news for its epic, and historic outages.
The hacks earlier this year against Sony changed the way many companies
view their online security, and it put Sony under a global microscope.
The outages began as an annoyance, then led to something that was a bit
more sinister when credit card information was reportedly vulnerable due
to the attacks. The interruption continued for weeks on end, and became
a major issue for Sony.
Sonys CEO, Kaz Hirai, publicly apologized for the outages, and promised
an increased emphasis on security going forward. The affected Sony
services returned, then were hacked once more almost as part of a running
gag before returning to normal. Since then, Sony has been in rebuilding
mode. It smoothed over ruffled feathers with a handful of games and a bit
of extra service, and things began to pick back up. Earlier this month,
Sony reported that it had added more than 3 million users since the
breach, and also emphasized upcoming changes to the PSN that will make
it more of a social experience.
Then today the PlayStation Network went down. Again. Sony has confirmed
the outage via Twitter, but it has not offered any explanation as to what
caused the current outages or when it may return. The issue is apparently
not limited to the U.S. either. PlayStation EU originally tweeted that
"PlayStation Network engineers are working hard on restoring the service.
However, we have no news on when it will be back online."
Since that tweet, PlayStation EU has followed up and claimed that the
service will be back shortly, "Current indications are that well be
restoring PlayStation Network services in approx. two hours. We appreciate
your patience."
It may just be a quickly fixed issue, but it is hard not to see the
specter of the past outages coming back. Even if the PSN is restored, it
still raises the alarming question of why it went down. Hopefully this is
nothing but a minor glitch in the service. Well keep an eye on the
situation and update with more info when available.
=~=~=~=
A-ONE's Headline News
The Latest in Computer Technology News
Compiled by: Dana P. Jacobson
U.S. Internet Rules To Take Effect November 20
Long-delayed U.S. Internet rules that tackle the controversial issue of
balancing consumer and content provider interests against those who sell
access to the Web will take effect November 20.
The Federal Communications Commission's "open Internet" order was
published in the Federal Register on Friday, and immediately drew
threats of court and congressional challenges.
The rules were adopted by the FCC late last year after a lengthy debate,
but only recently cleared a review by the White House's Office of
Management and Budget.
Criticized by opponents as a legally shaky government intrusion into
regulating the Internet, the new rules forbid broadband providers from
blocking legal content but leave flexibility for providers to manage
their networks.
Broadband provider Verizon Communications Inc has been a vociferous
opponent, and renewed its pledge to take the FCC to court as soon as the
rules are published.
"We have said all along that once we see the publication ... we intend to
file another notice of appeal," Verizon spokesman Ed McFadden said.
For the past 10 years, the possibility of regulations to mandate the
neutrality of the Internet - in terms of restrictions on content, sites,
platforms and types of equipment that may be attached - has been the
subject of fierce debate.
The latest rulemaking was prompted by a U.S. federal appeals court ruling
last year that the FCC lacked the authority to stop Comcast Corp from
blocking bandwidth-hogging applications on its broadband network.
The rules, adopted last December in a 3-2 vote, give the FCC power to
ensure consumer access to huge movie files and other content while allowing
Internet service providers to manage their networks to prevent congestion.
An FCC spokesman said the rules increase certainty and predictability,
stimulating investment and ensuring job creation and economic growth.
But public interest groups criticized the rules as too weak, saying the
FCC bent heavily to the will of big industry players including AT&T Inc.
and Comcast.
Matt Wood, policy director of public interest group Free Press, said
broadband providers will be able to divide the Internet into "fast and
slow lanes" and that the rules fail to protect mobile broadband users.
"Even in their watered-down form, the rules might do some good - but
that would require a vigilant FCC to carefully monitor and address
complaints," Wood said in a statement, adding that he doubted the agency
would do enough to protect consumers.
While some public interest groups had considered a lawsuit to strengthen
the rules, they now seem focused on ensuring the rules stay in place.
"We are prepared to vigorously defend the FCC's rules in court and in
Congress," said Gigi Sohn, president of Public Knowledge. She said the
rules are a good start despite not being as strong as she had hoped.
The U.S. Court of Appeals for the District of Columbia Circuit in April
threw out earlier challenges to the FCC's open Internet order by Verizon
and MetroPCS Communications Inc, dismissing their lawsuits as premature.
FCC rulemakings generally cannot be challenged until the rules are
published in the Federal Register.
Top Republican lawmakers vowed after the rules were adopted to find a way
to reverse what they called an unprecedented power grab by the FCC,
calling the rules unnecessary and misguided.
"In order to turn back the FCC's onerous net neutrality restrictions, I
will push for a Senate vote this fall on my resolution of disapproval,"
Senator Kay Bailey Hutchison, the ranking Republican on the Senate
Commerce Committee, said in a statement on Friday.
The Republican-controlled House of Representatives pushed through a measure
in April to overturn the order and prevent the FCC from adopting any rules
related to it. The effort faces a tougher climb in the Senate, where
Democrats retain a majority.
The White House has said President Barack Obama's advisers would recommend
he veto any such resolution against the Internet rules if it were to make
it to his desk.
Objections to the Updates to the Internet Child Privacy Protection Laws
The Internet will eat your kids alive and market crap to them while it's at
it, which is why the Federal Trade Commission wants to update the
Children's Online Privacy Protection Act, reports The Wall Street Journal's
Emily Steel. "The Federal Trade Commission wants to give parents more
control over what information websites can collect about their children."
The new regulations would require parental consent for websites to collect
information about your child, explains The New York Times's Somini
Sengupta,
The proposed revisions expand the definition of 'personal information'
to include a childs location, along with any personal data collected
through the use of cookies for the purposes of targeted advertising. It
also covers facial recognition technology. Web sites that collect a
childs information would be required to ensure that they can protect it,
hold onto it "for only as long as is reasonably necessary," and then
delete the information safely.
Safeguarding kids from advertisers - sounds great! Lawmakers and parents
alike approve of the step. Massachusetts representative Edward Markey
heralded the commissions proposal, calling it a "much needed step." But
not everyone is so keen on the safety regulations.
Advertising companies. Most obviously, the companies that lose most here
are the ones who give up access to precious information: marketing and
advertising firms. "We think they may have gone a little too far," Jerry
Cerasale, senior vice president of government affairs for the Direct
Marketing Association told Steel. Instead of requiring consent for tracking
cookies, advertisers would prefer less strict guidelines, continues Steel.
"The Direct Marketing Association would prefer the definition of "personal
information" only should include information that could be used to
directly contact or communicate with a child because the programs don't
always identify children but rather the computer," continues Steele. Not
only do these companies fear they will lose kids' eyes, but they could
lose an entire family full of ad-dollars.
Businesses. The provisions could put too large of a burden on Internet
businesses, as they require companies to perform yearly audits to ensure
compliance with the regulations. It could become "a Herculean task," Alan
Weber an analyst with Altimeter Group, told The Los Angeles Times's Jim
Puzzanghera and Jessica Guynn. "If the FTC's proposed revisions - go
through, companies such as Facebook, Google and others are going to have
to put more stringent fences up to keep kids out and then audit what data
they do collect," he continued. Not only is this annoying for companies,
but it could become expensive.
Parents. Most parents will appreciate the idea, but in practice might not
want to comply. At least that's what The Center for Democracy and
Technology predicts, reports Wired's David Kravets. "The D.C.-based policy
group expressed alarm, however, over the FTC proposal requiring website
operators to obtain scans of 'government-issued identification' from
parents to grant permission for their kids to upload photos, for example.
The center said that 'raises privacy concerns for parents.'"
California Governor Signs Compromise on Internet Taxes
Gov. Jerry Brown signed legislation Friday that postpones new sales taxes
rules that would have affected online purchases in California, granting
more time for traditional and online retailers to lobby Congress for a
national standard on the high-stakes issue.
The bill, crafted as a compromise among Amazon.com, traditional retailers
and California lawmakers searching for ways to raise revenue, delays until
at least September 2012 online tax rules that were implemented as part of
this year's state budget package.
Under the compromise, Amazon will drop a ballot referendum planned for next
year to overturn the law passed earlier in the summer, a move that promised
an ugly and expensive campaign fight between online and traditional
retailers.
"When you get two threats, that gives you an opportunity to find a
compromise," Brown said after he signed the bill at Gap Inc. offices in
San Francisco. "Hopefully, (the bill) will set an example for our
colleagues in Washington that they too can cooperate."
If that effort fails, Amazon has agreed to start collecting sales tax from
California customers. The budget bill signed previously by Brown forced
more online retailers to collect the state sales tax effective July 1. The
move prompted Amazon to cut ties with some 25,000 affiliate businesses in
California and spend more than $5 million to collect signatures for the
ballot referendum.
The compromise bill will cost California an estimated $200 million in tax
revenue during the current fiscal year but helps both sides avoid a costly
election contest and the possibility of legal challenges. State taxing
authorities estimate that California loses at least $83 million a year in
uncollected state and local use tax attributed to Amazon's sales.
Under the deal, the retailing giant will rekindle its relationship with
its California affiliates and has promised to create at least 10,000
full-time jobs and hire 25,000 seasonal employees in the state by the end
of 2015.
In a statement, Amazon's vice president of global public policy, Paul
Misener, called the compromise legislation a win for all sides.
"We're committed to working with Congress, retailers and the states to
pass federal legislation as soon as possible and as analysts have noted,
we'll continue to offer customers the best prices, regardless of whether
sales tax is charged," he said.
Consumers are required under state law to pay sales tax when they order
online from companies out of state, but the tax is virtually impossible
to enforce without the cooperation of the retailers. Customers rarely
pay.
Traditional retailers, from Wal-Mart to local business owners, say the
inability to police taxation on the Internet creates an uneven playing
field, with online retailers gaining an unfair advantage.
A 1992 U.S. Supreme Court ruling in a case involving a mail-order retailer
says a business must only collect state tax from customers if it has a
physical presence in the state where they live, such as a retail store.
Several states responded by trying to broaden the definition of physical
presence. At least six states had done so by 2010 while nine more,
including California, launched similar legislative attempts this year.
California's version, under the bill signed earlier this summer, imposed
tax-collection duties on a company if it used marketing affiliates in the
state to refer customers or if it had sister companies in California,
such as Amazon's Silicon Valley company that developed the Kindle
electronic book reader. Internet retailers such as Amazon and Overstock.com
said that violated the Supreme Court ruling.
Amazon and the California Retailers Association worked out the compromise
in the final days of the legislative session to postpone the tax measure
and allow the online and traditional retail lobbies to make a unified push
in Washington for a national standard.
The compromise also had the blessing of the California Chamber of Commerce
and traditional retailers such as Barnes & Noble Inc., Best Buy Inc.,
Crate & Barrel, Sears, Target Corp. and Wal-Mart Stores Inc.
"Amazon's concession to finally begin collecting sales tax in California
is a ground-breaking moment that sends a strong message to Washington that
it is time to stop giving special treatment to a select few," Bill
Dombrowski, president of the California Retailers Association, said in a
statement released by the governor's office. "All retailers deserve the
chance to compete, grow and create jobs on a level playing field, without
government picking winners and losers."
Suspected LulzSec Hacker Arrested in Sony Studio Breach
A suspected member of the clandestine hacking group LulzSec was arrested
in Arizona on Thursday on charges of taking part in an extensive computer
breach of the Sony Pictures Entertainment film studio, the FBI said.
A federal grand jury indictment returned this month and unsealed on
Thursday charges Cody Kretsinger, 23, with conspiracy and the unauthorized
impairment of a protected computer in connection with the attack in May
and June.
The nine-page indictment said Kretsinger and co-conspirators obtained
confidential information from Sony Pictures' computer systems using an
"SQL injection" attack against its website, a technique commonly used by
hackers to exploit vulnerabilities and steal information.
Kretsinger, who went by the moniker "recursion," helped post information
he and his co-conspirators stole from Sony on LulzSec's website and
announced the intrusion via the hacking group's Twitter account, the
indictment said.
The extent of damage caused by the breach of the studio's computer network
remains under investigation, the FBI said.
LulzSec, an underground group also known as Lulz Security, at the time
published the names, birth dates, addresses, e-mails, phone numbers and
passwords of thousands of people who had entered contests promoted by
Sony.
"From a single injection we accessed EVERYTHING," the hacking group said
in a statement at the time. "Why do you put such faith in a company that
allows itself to become open to these simple attacks."
Hackers previously had accessed personal information on 77 million
PlayStation Network and Qriocity accounts, the vast majority of which were
users in North America and Europe, in what was then the biggest such
security breach in history.
Kretsinger, in an initial court appearance in Phoenix on Thursday, was
ordered released on his own recognizance by U.S. Magistrate Judge
Lawrence Anderson.
But as a condition of his release, Kretsinger was barred from using a
computer to access the Internet except at his place of employment, or
from traveling to any states other than Arizona, California and Illinois.
Other high-profile firms targeted by cyber attacks included Lockheed
Martin and Google Inc.
Sony officials declined comment on Thursday's arrest.
LulzSec is reputed to be affiliated with the international hackers
collective called Anonymous, which has claimed responsibility for cyber
attacks on government and private institutions around the world.
Kretsinger faces a maximum sentence of 15 years in prison if convicted.
The government is requesting that he be removed to Los Angeles, where Sony
Pictures' computer system is located and where the case against him has
been filed.
Mulling Meg Whitman: HP Considers CEO Shakeup
As trial balloons go, Hewlett-Packard's not-so-secret handwringing 'over
whether to dump CEO Leo Apotheker and replace him with former eBay CEO
Meg Whitman' was a success. Investors like the idea. News that the
company's board is mulling a leadership change pushed the stock up more
than 7 percent on Wednesday.
Investors were heartened by yet another turnaround strategy at one of
Silicon Valley's oldest, but most publicly dysfunctional, firms. Since
joining HP in November, Apotheker's strategic decisions have been
drastic, and have done little to inspire confidence. HP's stock is down
nearly 50 percent since he took the helm.
HP is facing a classic big-company problem: How to meaningfully grow
revenue. But it's also facing an identity crisis. The company's trying to
figure out whether it works best as a technology conglomerate that can be
all things to all customers, or as a more streamlined operation that does
only a few things well.
Apotheker's potential exit comes as HP is predicting tough times ahead. In
August the company lowered its outlook, saying it expects adjusted
earnings of as much as $4.86 per share and revenue of as much as $127.6
billion, both of which were below analyst projections. The proposed
spinoff of the PC division could make matters worse as customers refrain
from ordering until a buyer is found.
Deliberations among the company's board of directors, which leaked
Wednesday in published reports, also signal the disarray within HP about
its direction. Shareholders have already voiced their fears. HP's market
value has fallen by $60 billion since former CEO Mark Hurd was forced out
in August of last year over an ethical scandal. If Apotheker is ousted,
he will be the third CEO jettisoned from HP in the past six years.
It won't be the first time for Apotheker, who was forced out of his
previous job as CEO of business software maker SAP AG over ill-timed
price hikes he implemented and widespread employee dissatisfaction.
Apotheker was supposed to be a steady hand to steer HP out of
controversy. Many analysts mocked the pick as an unusual choice,
considering the circumstances.
In some ways, Meg Whitman would be an odd choice to replace Apotheker.
While Whitman is more of a celebrity, her record wasn't perfect at eBay.
She resigned from eBay in 2008 amid slowing growth and disappointment
over eBay's $2.6 billion gamble on the Skype Internet phone service.
She's a billionaire who spent more than any candidate for a statewide
office in U.S. history in unsuccessful Republican campaign for
California governor last year. She spent at least $174 million, all but
$30 million of it her own money.
Still, Whitman spent a decade guiding eBay and is a widely respected
executive who took a website with 30 employees and $86 million in revenue
and turned it into corporation with 15,000 people and nearly $6 billion
in revenue. Whitman is among the people brought onto HP's board in a
reshuffling shortly after Apotheker was hired. How she would fare as CEO
amid HP's current restructuring is unclear.
Apotheker has struggled, while complaining that HP suffered years of
under-investment by his predecessor, Mark Hurd.
His latest decision to try to sell or spin off HP's personal computer
division showed that many investors aren't sure what to make of his
decision-making. The move was widely praised and vilified at the same
time. Analysts cheered HP's efforts to exit parts of the computer
hardware business that are barely profitable. But they assailed
Apotheker's approach, which was to waffle about whether HP would actually
shed the business or keep it after an auction to gauge buyers' interest.
The equivocation has already done serious harm to the businesses' value,
analysts said.
HP's board is reconsidering a spinoff or sale of the PC division. According
to Bloomberg News, some board members think the plan wasn't thoroughly
thought out.
Brian White, an analyst with Ticonderoga Securities, floated the idea that
HP may not have had Apotheker in mind for the long term anyway. In a
research note Wednesday, White wrote that he wouldn't be surprised if
Apotheker all along was the "fall guy," hired to take the hit for the
ugly work of restructuring.
White said he wouldn't be surprised if HP brings in a new CEO, "as we have
always thought that Leo was placed in the role on a short-term basis to
take the fall for the company's under investment under the previous CEO,"
White wrote. "At the same time, we believe a new CEO could begin to build
credibility for HP and join the company after quite a bit of damage has
already been done."
An HP spokesman declined to comment. The news was earlier reported by
Bloomberg News and AllThingsD.com.
HP Fires Second CEO in 2 Years; Whitman in Charge
Hewlett-Packard has performed another extreme act of corporate remodeling,
firing its CEO Leo Apotheker after just 11 months and replacing him with
billionaire businesswoman and political aspirant Meg Whitman. Yet it's
done little to convince investors that the company has its house in order.
HP has now removed two CEOs in two years, and the stock has dropped
precipitously, shedding $60 billion of HP's market value. Based on
shareholder reaction to Thursday's CEO shuffle, more punishment is likely
in store.
Mark Hurd was forced to resign a year ago in an ethics scandal, and on
Thursday HP fired his successor, Leo Apotheker, after a string of
disappointing earnings reports and the botched handling of key strategy
announcements.
He was replaced by former eBay chief Meg Whitman, who brings celebrity
appeal and the sheen of a dot-com-era star who transformed eBay Inc. from
scrappy startup to Internet-auction powerhouse.
The decision was the kind of hasty, headline-grabbing move that Silicon
Valley watchers have come to expect from HP as it muddles through a very
public identity crisis with an unpredictable board and the hardest job in
technology to fill.
It was another dizzying turn of the executive merry-go-round at a company
whose legendary leadership issues are straining HP's sprawling technology
empire, which includes the world's biggest printer and PC businesses.
Shareholders were impressed by reports that leaked Wednesday about
Whitman's candidacy for the job. But those gains were largely wiped out
Thursday when fears set in that HP's strategy is still deeply flawed.
It's not what HP had in mind. Swapping Apotheker, who has now been ousted
from two high-profile CEO jobs in two years, for Whitman was designed to
stem investor fury over a series of questionable strategy moves.
HP's chairman, Ray Lane, said Apotheker's dismissal was caused by several
factors.
"You don't deliver a quarter, you don't deliver another quarter, then you
make some important announcements that are communicated poorly - it was
incremental," Lane said on a conference call. Whitman was on the call, but
Apotheker was not. "Then you have to make the tough call of, how long do
you go along with that? Do you help? Do you surround? Or do you replace?"
Whitman is a billionaire who is best known for the decade she spent
building eBay and her unsuccessful run last year for California governor.
Her star power could be an asset for a company that struggled to gain
credibility under Apotheker, who was previously little-known outside of the
business-software world. HP is no stranger to celebrity CEOs. But Carly
Fiorina's run at the company's helm, from 1999 to 2005, ended in shambles.
Despite Whitman's success at eBay, she is untested when it comes to running
a company that is in as many businesses as HP. Another turnaround effort
earlier in her career, at FTD, the iconic flower-delivery company, ended
with Whitman quitting after two years and declaring that the company is
"not fixable." Many analysts have said the same thing about HP in its
current form.
On Thursday, she defended her predecessor's most controversial moves. She
said a decision on PC division's fate will be made by the end of the year.
Analysts are mixed about her prospects.
"She built up a one-trick pony, an online auction site, and she oversaw
the growth of the company, but we are talking about a situation where
someone needs to come in who has a technological background, an
engineering and scientific background," said Steve Diamond, an associate
professor at Santa Clara University School of Law. "And that is way
outside of her skill set."
Diamond said the decision to change CEOs so soon points to continued
disarray on HP's board, long a target of critics for the chaos it's caused
at one of Silicon Valley's oldest and largest companies. Infighting and
ego-driven drama has long plagued the board, from revelations in 2006 that
HP had spied on directors and journalists to ferret out the source of
leaks, to last year's dismissal of CEO Mark Hurd in an ethics scandal.
"There's no question the board is off the rails - they need a smaller,
tighter board that's committed to the idea of what the company does,"
Diamond said. "But they have a lot of people on the board from different
industries. The tough job will be getting the board on board."
Whitman's appointment Thursday was Silicon Valley's worst-kept secret.
Deliberations leaked out a day earlier to the delight of investors, who
drove up HP's stock and apparently gave HP's board the push it needed to
oust Apotheker.
HP's board met Thursday to finalize the change, having decided that
Apotheker had lost the board's confidence in his ability to lead HP
long-term, a person familiar with the matter told The Associated Press. This
person was not authorized to speak on behalf of HP and spoke on the
condition of anonymity.
Lane, the HP chairman, defended Apotheker's firing and Whitman's quick
selection.
The board "objectively evaluated whether he was the right guy to operate
the business, and we came to the conclusion that he was not," he said on
the conference call. "And we chose someone who is a great operator, who
executed in her business for years and has a track record of leadership.
I can't think of a name out there over Meg that I would pick to be CEO of
this company."
Apotheker was also forced to resign from HP's board. Lane's position has
been elevated. He was non-executive chairman. He is now executive
chairman.
An HP spokesman said that Apotheker, Whitman and Lane were not immediately
available for interviews.
Whitman's likely arrival was greeted warmly Wednesday, when investors drove
the stock up more than 7 percent on reports she was being considered for
the job. But most of those gains evaporated Thursday, when fears set in
that the company's strategy is still in need of repair.
Cathie Lesjak, HP's chief financial officer, added to those fears when she
disclosed that she isn't sure HP can hit its revenue target of $32.1
billion to $32.5 billion in the quarter ending Oct. 31. She reaffirmed
earnings guidance. She blamed weakness across consumer and commercial
markets, particularly in Europe.
HP's stock fell $1.18, or 4.9 percent, to close at $22.80 on Thursday. It
fell another 7 cents in after-hours trading. The declines were worse than
the overall market. The Dow Jones industrial average plunged 391 points,
or 3.5 percent, on worries that the global economy is headed for another
recession.
Boosting HP's sagging stock price will be an urgent problem for Whitman.
HP's market value has dropped by $60 billion since CEO Mark Hurd was
forced out in August of last year over an ethical scandal. Hurd's
departure set the stage for Apotheker's appointment as CEO and Lane's
appointment as chairman.
Proving she can instill order in a disordered company is another pressing
issue.
EBay, when Whitman inherited it, was a star on the rise. HP is struggling
with bloat and hasn't decided on a clear direction. It knows it wants to
be more like IBM Corp., but has a long way to go to complete the
transformation.
Steering a startup through a period of growth is markedly different from
running an established company that's fallen on hard times, experts say.
Whitman touted her business credentials on the campaign trail in her
unsuccessful California gubernatorial bid. She spent more than any
candidate for a statewide office in U.S. history on the campaign - at
least $174 million, most of it her own money.
She became a respected executive for her work at eBay, transforming it
from a website with a few dozen employees and less than $100 million in
revenue into an industry heavyweight with thousands of workers and
billions in sales.
But her record as CEO also includes a lesser-known episode that paints a
different picture of her abilities to quell a company in disarray.
Whitman's time at FTD in the 1990s was her most high-profile turnaround
attempt. It did not end well.
Whitman has rarely spoken about her time at FTD. It's an imperfect
comparison to HP, but Whitman was brought in to the company in 1995 by her
former colleagues at investment firm Bain & Co. to spearhead a major
transformation. She was supposed to stay five years, but ended up quitting
after two, citing investors' unrealistic goals.
"This company is not fixable, at least not by me," Whitman wrote in her
book, "The Power of Many." She calls her tenure there "probably the most
frustrating and, ultimately, least successful executive experience of my
career."
Other types of concerns have been raised about Whitman.
She was named to HP's board this year as part of a sweeping overhaul under
Apotheker and Lane. They were supposed to be steadying hands. But almost
immediately, corporate governance experts began crying foul. They took
issue with the fact Whitman's hiring by esteemed venture capital firm
Kleiner Perkins Caufield & Byers, where Lane works, was announced a week
after she was formally elected to HP's board.
Several unflattering incidents helped scuttle her gubernatorial campaign.
She was revealed to have shoved an eBay employee during a disagreement,
which led to a six-figure settlement. Whitman said the altercation was an
anomaly and taught her to always be professional. It was also revealed that
her former housekeeper of nine years was an illegal immigrant.
To complicate matters further, Whitman was a board member at Goldman Sachs
when it allegedly engaged in the now-illegal practice called "spinning,"
in which wealthy clients and CEOs whose companies did business with Goldman
received early access to IPO shares, which they flipped quickly for large
profits. Whitman said she forfeited the $1.8 million she made from the
deals in a lawsuit she settled with eBay shareholders.
Amazon Expected To Unveil Tablet Next Week
Amazon.com Inc, which revolutionized reading with its Kindle e-reader, is
expected to unveil a tablet computer next week that analysts say will
seriously challenge Apple's market dominating iPad.
Amazon on Friday invited media to a press conference to be held in New
York next Wednesday, declining to provide further details.
But analysts were confident that the world's largest Internet retailer
will introduce its long-awaited tablet computer this year to expand in
mobile commerce and sell more digital goods and services.
"Wednesday is tablet day," BGC partners analyst Colin Gillis told Reuters.
The tablet has been awaited as a strong competitor to Apple Inc's iPad.
Apple has sold about 29 million of the devices since its launch in April
2010.
"The real issue here is that, you know, it is likely going to be good for
consumers; is this going to be good for shareholders?," Gillis said. He
wondered whether Amazon would price the tablet below those of rivals -
and thereby do little to boost margins.
"Knowing Amazon, it is likely to be a very aggressive price," Gillis said.
In much the same way Amazon's Kindle e-reader was priced low to quickly
get traction among readers the company is likely to keep the price of its
tablet low to attract users and sell other content and services, one
analyst said.
"It's a marketing tool to build a relationship with customers and sell
them cloud (computing) services," said James McQuivey, an analyst with
Forrester Research.
While Amazon has remained tight lipped even about the device's existence,
the TechCrunch blog earlier this month said the Amazon tablet also will
be called Kindle.
It will be a 7 inch device with a full color, touch screen, run on
Google's Android software and cost $250, the blog said, well below the
price of the least expensive iPad.
Robert Baird & Co analyst Colin Sebastian said in a note last month than
an Amazon tablet would be a "game-changer." Sebastian forecast the device
could sell 3 million units in its first year.
The tablet could pose a major threat to Apple because of the Kindle's
popularity and the movie and music services Amazon sells.
Forrester's McQuivey said the device also takes aim at Barnes & Noble
Inc's NookColor device, which hit the market last year and features
tablet functionalities.
Several technology companies like Research In Motion and Samsung have
introduced tablets that sold poorly. Hewlett Packard Co announced recently
it would abandon its tablet.
Comcast Launches Low-income $10 Broadband Program Nationwide
On Tuesday, Comcast announced the nationwide launch of its Internet
Essentials program. The cable companys new program provides low-income
families with school-going children access to $10 broadband and even a
cheap $150 computer.
"Internet Essentials helps level the playing field for low-income families
by connecting students online with their teachers and their schools
educational resources," said Comcast Corporation Executive David L. Cohen
in a statement. He added that the program will enable parents to apply to
jobs, learn about healthcare as well as government services in their area.
Though the service has been floating around since the beginning of the
year, Comcast officially launched the nationwide program at Ballou High
School in the District of Columbia. So far,1,000 School districts (adding
up to 20,000 schools) have signed up to take part and spread the word
about Internet Essentials.
To be eligible you must:
Have a kid who is eligible to receive a free school lunch.Be located where
Comcast provides service.Not have subscribed to Comcast in the past 90
days and generally be on good terms with the company.
The program offers low-income families Internet service at $9.95 monthly,
with download speeds of 1.5Mbps and 384 Kbps upload - no activation fees
or price jumps. Families also receive a voucher for a $150 computer (a
Windows 7 netbook). For those that need a little help using the internet,
customers will have access to free digital literacy training. Families
will be signed up to the program by Comcast for at least three years.
Ars Technica points out that the cheap Internet offer is part of the
conditions Comcast had to meet in order to buy NBC. The company pledged to
hook up 2.5 million eligible families with high speed Internet. Whatever
the reason, its a step towards upping Americas current global rank for
broadband access.
Facebook Changes Spark Online Complaints
Facebook users on Wednesday took to complaining about changes intended to
make it easier to manage the torrents of updates from friends at the
world's largest social network.
People vented ire in an array of online venues including a "Petition
against the new Facebook homepage" at the social network and a Twitter
stream tagged "#NewFacebook."
Some lamented that the latest Facebook changes were moves to be more like
rival Google+ and hot text-message-based news-sharing service Twitter.
"#NewFacebook is like America," one Twitter user commented. "Plenty of
people discontent(ed), but it's not like anyone is actually going to
leave."
Facebook users are known for complaining fiercely about changes to the
service but then adapting and sticking with the online community.
The backlash came a morning after Facebook began rolling out the latest in
a rapid-fire series of enhancements in what founder Mark Zuckerberg
referred to as a "launching season" for new features.
Facebook's "News Feed" that streams updates from friends now gives priority
to important posts, images shared at the website are displayed larger, and
a "Ticker" chat column was added for real-time conversations.
In recent weeks, Facebook has focused on ways for members to better
control what information gets shared with whom.
Facebook last week began letting members follow strangers Twitter-style
with the addition of "Subscribe" buttons that let people hear from people
who aren't friends at the network, and share insights with strangers.
Facebook also began letting members be more selective about what kinds of
updates from friends make it into their personal news feeds.
The "Ticker" chat panel in a right-hand column on the screen allows people
to engage in text chats focused on freshly uploaded images or other posts.
More Facebook announcements are expected at the social network's annual
developers conference in San Francisco on Thursday.
Speculation regarding what Facebook has in store at the gathering includes
the launch of a platform for online music services such as Rdio and Spotify
along with adding stories from professional news outfits.
The conference will come just days after Google dropped the need for an
invitation to join the Internet giant's challenge to Facebook, Google+.
Missouri Reverses Ban on Teacher-Student Facebook Chats
Missouri lawmakers on Friday overturned a pending state law that would have
banned private chatting between teachers and students on social media sites
such as Facebook.
The law was blocked by a judge who ruled "it would have a chilling effect
on free speech." He issued a preliminary injunction at the request of the
Missouri State Teachers Association.
Lawmakers originally approved the clampdown on teacher-student
communications in response to cases around the country where contacts
outside the classroom led to sexual or other inappropriate relationships.
Teachers argued that the vast majority of their online contact with
students was strictly for educational purposes.
The reversal of the law passed the state House 139-2 on Friday. It had
previously passed the state Senate. Gov. Jay Nixon now will decide whether
to sign it.
Nixon earlier had asked lawmakers to overturn the law, saying social media
are important to teaching and learning.
The revised law no longer would require all districts to ban social media
contacts but it does order each district by March 1, 2012, to set
electronic media policies to prevent improper communications between staff
members and students.
The teachers association testified in favor of the amended bill, but
spokesman Todd Fuller said Friday that individual school districts could
pass policies imposing the very restrictions teachers are concerned about.
"We are going to have to address this issue with specific school districts
to make sure they are not violating the rights of teachers," Fuller said.
Small-Town Gossip Sites Are Horrifying
The Internet is a mean, nasty place and Topix, a gossip forum masquerading
as a community news site, is only making it worse. Chris Tolles, Topix's
chief executive, calls his sites "The Gawker for every little town in
America," reports The New York Times's heir A.G. Sulzberger. But the
sites, which Topix initially wanted to act as "hyperlocal news aggregator
with separate pages for every community in the country," have turned into
a "cesspool of character assassination." These sites are more dangerous
than mini-Gawkers, they're like what the snarky blog would read like if
the 7th grade popular girls had full editorial control.
Without social consequences these forums get pretty nasty. A sampling from
a Mountain Grove, MO forum, which Sulzberger mentions in his piece:
"Joann has stolen money life insurance policies and a vehicle from a dead
women forged her name and is now talking shit about the family she screwed
but her day is coming and from what the lawyers say she will probably be
going to the pen which is where she belongs after the low life things she
has done. She is a pill freak and stole the women medication, and is now
trying to trash talk the family."
Or a little later on in the topic thread:
"Joann.....is simply....how do i put this....ummm...a....B.I.T.C.H.
.......S.K.A.N.K.Y......N.A.S. T.Y.......E.W.W.W.W.W"
As you can see, these gossips talk about real people and since they reach
large audiences, these nasty remarks have real consequences, but the
company hosting them does not. "Topix, as an Internet forum," Sulzberger
notes, "is immune from libel suits under federal law, but those who post
could be sued, if they are found." It's nearly impossible to separate truth
from fact and a false or not these rumors can have just as a disastrous
effect as the truth. "A woman in Austin, Ind., killed herself and her three
children this year. Hours earlier she wrote on the Web site where her
divorce had been a topic of conversation, 'Now its time to take the pain
away,'" continues Sulzberger.
Mexico "Twitter Terrorists" Freed
A Mexican man and woman jailed for sending online messages that mistakenly
warned an elementary school was under attack were freed on Wednesday, an
attorney for the pair said.
Gilberto Martinez, a math teacher, and Maria de Jesus Bravo, a local radio
host, walked out of jail on Wednesday afternoon, said their lawyer Fidel
Ordonez.
The pair had been behind bars for more than three weeks after using their
Twitter accounts to say that gunmen had targeted a school in the city of
Veracruz one afternoon in late August.
The two faced charges that equated spreading word of a violent attack with
terrorism under laws in their native Veracruz, a state on the Gulf of
Mexico.
Police allege that each of them posted similar warnings about gunmen taking
children hostage as parents rushed to save their kids from the reported
violence.
The pair believed that they were warning of a real threat after hearing
rumors of an attack that later proved untrue, their attorney said. The case
immediately drew world attention as a civil liberties abuse.
"The government was shamed into setting them free," said Ordonez.
Veracruz lawmakers this week watered down the original law that could have
seen the pair sent to jail for 30 years, opting for lighter sentences on
similar charges.
A public outcry continued even after the law was changed, Ordonez said,
and that pressure helped lead to the charges being dropped.
=~=~=~=
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