IDG News Service —

1. "Microsoft Offers to Buy Yahoo for $44.6B,"
CIO.com, February 1

"Microsoft's Yahoo Offer: Details of the Deal,"
PC World, February 1

Settle in -- this one will be a lively topic of discussion and grab headlines for weeks to come, no doubt. Microsoft wants to buy Yahoo for a premium price of $44.6 billion, with the aim of giving Google a run for the online services market. The deal, which Yahoo described as "unsolicited," would provide better competition because it would give Google a more legitimate rival, according to Microsoft. Yahoo's board approached Microsoft in February of last year, but ultimately Yahoo decided that wasn't a good time to make a deal. Fast forward a year, featuring job cuts, turmoil, restructuring, more upheaval, and recently the departure of CEO Terry Semel, whose resignation as chairman was announced Thursday and presaged Friday's acquisition deal.

2. "Web Traffic Disruption Raises Internet Infrastructure Vulnerability Concerns,"
Network World, February 1

Damage to two underwater cables in the Mediterranean Sea this week slowed Internet services, although U.S. businesses aren't expected to experience much disruption as a consequence. Not so in the Middle East and some parts of Asia, which took the brunt of the disruption. The incident underscores the fact that the Internet's infrastructure is vulnerable. One cable is operated by Flag Telecom and the other by a consortium of 15 telecommunications carriers. It is believed they were cut on Wednesday of this week by ship anchors. The cables carry some 75 percent of network capacity between Europe and the middle East. The situation has a lot of people publicly fretting about what would happen if multiple cables were cut at the same time and also has raised the specter of what would happen if terrorists set out to damage the Internet's infrastructure.

3. "Analysts Give CIOs Advice on Weathering Recession,"
InfoWorld, January 31

Analyst firm Forrester isn't predicting a recession, but it is advising CIOs to prepare just in case. As part of that call to prepare, Forrester analysts offered suggestions for what CIOs should do. The advice includes: "Get close to your CFO. You want to be arm in arm," said analyst Andrew Bartels. Right now, there is a 55 percent likelihood that the economy will remain stable, with a 35 percent change the U.S. will dip into a shallow recession and a 10 percent probability of a deep recession, Forrester analysts said. CIOs should review company portfolios and see if there are projects that could be delayed, reduced or canceled, they said. "If you're running things well, adapting to recession is easier," analyst Alex Cullen said.

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