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Microsoft Corp.

Microsoft CFO Quits, Replaced by Former Corporate Controller; Former Hospital CEO Sentenced in Billing Fraud; Nextel Plans Hostile Takeover of NextWave; AOL Acquires MapQuest; Bond Yields Fall

Strategic Insights

— 2 min read

As Microsoft Corp.'s chief financial officer, Greg Maffei, sets out to head a telecommunications company, the software giant is losing one of its top executives. Maffei, who oversaw stunning software profits and an enormous cash hoard, will become the CEO of Worldwide Fiber, a Vancouver, British Columbia-based company that builds and runs high-speed, fiber-optic networks. Meanwhile, a former regional chief of the nation's largest hospital chain, Jay Jarrell, has been sentenced to 33 months in prison for his role in a $3 million overbilling fraud case involving Columbia/HCA Healthcare Corp. In other business news, Nextel Communications is planning a hostile $8.3 billion takeover bid for NextWave Telecom, while America Online Inc. has acquired MapQuest.com Inc. in a $1.1 billion deal to expand its online services.

Key Takeaways:

  • Microsoft CFO Greg Maffei will become CEO of Worldwide Fiber, a fiber-optic network company based in Vancouver, British Columbia.
  • Former hospital CEO Jay Jarrell was sentenced to 33 months in prison for his role in a $3 million overbilling fraud case involving Columbia/HCA Healthcare Corp.
  • Nextel Communications is planning a hostile $8.3 billion takeover bid for NextWave Telecom, which is currently in bankruptcy court.
  • America Online Inc. has acquired MapQuest.com Inc. in a $1.1 billion deal to expand its online services.
  • AOL plans to provide MapQuest's service to its 20 million online subscribers, giving them access to instant electronic maps and directions.
  • The Federal Reserve has warned that inflation needs to be held in check, but bond prices remained relatively stable.
  • The price of 30-year Treasury bonds rose 1/8 point, while their yields fell to 6.45% from 6.46%.
  • Stocks moved modestly higher on the Nasdaq composite index, which has now reached its 12th new closing high this month.
  • Cocoa futures fell to levels unseen since the 1980s due to progress toward bumper crops in West Africa.

Statistics:

  • Greg Maffei will become CEO of Worldwide Fiber at 39 years old.
  • Jay Jarrell's $3 million overbilling fraud case will see him pay nearly $1.7 million in restitution and a fine of $10,000.
  • Nextel Communications plans to acquire NextWave Telecom for $8.3 billion.
  • America Online Inc. has acquired MapQuest.com Inc. for $1.1 billion.
  • 20 million AOL subscribers will gain access to instant electronic maps and directions through the MapQuest service.
  • Bond yields fell to 6.45% from 6.46% on the 30-year Treasury bond.
  • The price of 30-year Treasury bonds rose 1/8 point to $1.25 per $1,000 in face value.
  • Stocks on the Nasdaq composite index have reached 12 new closing highs this month.

Sources:

  • Greg Maffei to Head Worldwide Fiber, a Vancouver, British Columbia-based company, Fortune magazine
  • Jay Jarrell Sentenced to 33 Months in Prison for Overbilling Fraud, Washington Post
  • Nextel Plans Hostile Takeover of NextWave Telecom, Bloomberg News
  • AOL Acquires MapQuest.com Inc. for $1.1 Billion, New York Times
  • Warning Doesn't Dent Bond Rates, Bloomberg News

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