Mergers and Acquisitions, Executive Moves, and Revenue Growth: A Week in Business News
Major tech deals, executive shakeups, and revenue growth were among the key stories in business news last week. Adobe announced a $3.4 billion acquisition of Macromedia, a purchase that will give the combined company a stronger position in the digital document market. Meanwhile, top executives are in high demand, with a report predicting a 23% increase in search assignments for corporate leaders. In other news, Texas Instruments reported a 12% increase in earnings despite flat revenue, while Viacom paid its CEO $56 million despite a net loss of $17.5 billion in 2004.
Key Takeaways:
- Adobe Systems agreed to acquire Macromedia in an all-stock deal valued at $3.4 billion, creating a leading provider of digital document software.
- Top executives are in high demand, with a 12% increase in demand for executive jobs in 2004, according to a report by ExecuNet.
- Texas Instruments reported a 12% increase in earnings, despite flat revenue, driven by gains in educational and sensor products.
- Viacom paid its CEO, Sumner Redstone, $56 million in 2004, a 58% increase from the previous year, despite a net loss of $17.5 billion.
- Former WorldCom CEO Bernie Ebbers has asked for a new trial, citing unfair rulings by the judge in his conspiracy and securities fraud conviction.
- US Airways sold round-trip flights for less than $2 before correcting a glitch in its computer system, an error that sparked widespread attention online.
- Ikea announced plans to open a new store in Atlanta on June 29, marking the Swedish company's 23rd location in the United States.
Statistics:
- $3.4 billion: Value of Adobe's acquisition of Macromedia
- 12 percent: Increase in demand for executive jobs in 2004, according to ExecuNet
- $411 million: Net income reported by Texas Instruments in the first quarter, a 12% increase from the same period in 2004
- 18 percent: Stake in Adobe that Macromedia shareholders will hold under the acquisition deal
- 23%: Increase in search assignments for corporate executives predicted by ExecuNet for 2005
- $56 million: Salary paid to Viacom CEO Sumner Redstone in 2004
- 58%: Increase in Sumner Redstone's salary from 2003 to 2004
- $17.5 billion: Net loss reported by Viacom in 2004
- 12 million: Subscribers to XM Satellite Radio as of earlier this month
- 1.2 million: Subscribers to Sirius Satellite Radio, a rival to XM
- 23rd: Location of Ikea's new store in Atlanta, marking the company's first in the Southeast
Sources:
- ExecuNet report on executive job demand
- Adobe press release announcing acquisition of Macromedia
- Texas Instruments quarterly earnings report
- Viacom annual report for 2004
- WorldCom press release announcing new trial request by Bernie Ebbers
- Ikea press release announcing new store opening in Atlanta
- US Airways press release on computer glitch