MediaFile

Corning and Xerox bask in SOTU limelight

Forget Larry Page becoming the new chieftain at Google or Facebook’s Mark Zuckerberg being crowned Time’s Man of the Year — the only two U.S. business leaders who will be sitting in Michelle Obama’s private box tonight at the State of the Union address will be  Xerox’s CEO Ursula Burns and Corning’s CEO Wendell Weeks.Beautiful

The high profile honors for the decades-old U.S. tech giants just happen to have been conferred in the same week both report earnings.

Corning, the 159-company which produces specialty glass for flatscreen TVs and more recently, smartphones and tablets, saw its shares rise today by almost 7 percent. While the bump  probably has more to do with the company’s earnings forecast than tonight’s appearance on Capitol Hill, we’ll just have to wait and see if the special invite has the same effect on Xerox, which reports earnings early tomorrow.

The burning questions on everyone’s minds are obviously: what the execs will be wearing and, should Corning’s Weeks really take out the gorilla suit?

Corning’s first ever consumer ad campaign for its glass

Dot-Com: ‘Three Letters and a Punctuation Mark’ That Changed the World

DellTwenty five years ago, on March 15, 1985, the first commercial dot-com domain name – Symbolics.com – was born. It was one of only six dot-com domain names registered that year (Among the 15 oldest are Northrop.com, Xerox.com, HP.com, IBM.com, Sun.com, Intel.com, TI.com and ATT.com.)

A lot has happened between then and now: the fall of the Berlin wall, the dot com boom and bust, two Gulf wars, Sept. 11, at least one major global economic crisis and the creations of YouTube and Facebook. To give you an impression of the passage of time, REO Speedwagon’s “Can’t Fight This Feeling” had just succeeded “Careless Whisper” by Wham! on the U.S. pop charts.

Today there are more than 80 million websites and the Internet, for many, is nearly as omnipresent as air.

CSC: No comment is the safest

I was rather surprised yesterday to see an e-mail from Ogilvy PR pitching an interview with Dave Booth, the Chairman President of Global Sales and Marketing at Computer Sciences Corp, only a couple of hours after Xerox announced its $6.4 billion planned purchase of Affiliated Computer Services.

After all, CSC — an IT services company that competes with ACS, and has a market value of $8.1 billion — was the first company that came to bankers’ and analysts’ minds when I asked them who else could be in play, as tech companies look to buy into new growth opportunities.

Given how market sentiment works, any comments from the chief senior executive of a potential acquisition target like CSC could easily move the stock. As a rule, that’s why, companies typically don’t comment on rumor or speculation about themselves. So naturally, an on-the-record interview with the CSC chairman executive wasn’t something I could pass up.

from Breakingviews:

Tech services deals count on more with less

Xerox button

The U.S. computer services industry is back in favor, after a decade of struggling to cut costs and compete with offshore firms from India and elsewhere. At least that would be the obvious conclusion to draw from a recent string of multibillion-dollar deals.

Xerox has agreed to buy Affiliated Computer Services for $6.4 billion while Dell is paying $3.9 billion for Perot Systems. They are picking up where Hewlett-Packard left off when it paid $13.9 billion to buy Electronic Data Systems in 2008.

But what's driving these deals is not a bet on the improving growth prospects of the services industry. Instead, the buyers value computer services companies more as sales pipelines for their own products.

from DealZone:

Xerox-ACS: the backstory

Xerox, which said early Monday morning it will buy Affiliated Computer Services for $6.4 billion, has had its eye on the IT services company for at least two years, but talks only began toward the end of the first quarter of 2009, several people familiar with the matter told Dealzone. Blackstone, which advised Xerox, worked with the company on this over the past 18 months, in addition to making the introductions earlier this year, according to one source.

Talks grew hot and heavy over the summer, especially as the credit market conditions improved, a second source said. Xerox has committed financing of $3 billion for this deal, which is being arranged by JPMorgan, so the deal only began to look like a real possibility once the financing side was sorted out.

ACS, which competes with other technology services providers such as Computer Sciences Corp and Accenture, is an attractive company because of its recurring revenue business model. It's been an especially alluring target for private equity buyers, with Cerberus having offered to buy it for $62 a share in 2007. Cerberus withdrew its offer citing the credit crunch and ACS management's refusal to engage with them. TPG was also interested in ACS about five years ago, the second source added.