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May 11, 2011
via Breakingviews

Microsoft and Cisco CEOs have much in common

By Rob Cox
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

John Chambers and Steve Ballmer have much in common. For more than a decade, both have run dominant, if rapidly maturing, tech juggernauts — Cisco Systems and Microsoft, respectively. And both have let down their shareholders. The difference is that one seems to have recognized the error of his ways and is repenting.

May 10, 2011
via Breakingviews

Skype schmuck insurance pays off richly for eBay

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Rob Cox

Leave it to Microsoft to make eBay look like a savvy buyer. That’s sort of what the software giant’s $8.5 billion acquisition of Skype has done for the online auction company, which originally bought the Internet telephony group six years ago. EBay has now recouped its whole Skype investment and then some. But don’t credit eBay’s stewardship for the turnaround — consider it an advertisement for “schmuck insurance.”

May 3, 2011
via Breakingviews

Glencore’s peak timing not only echo of Blackstone

By Rob Cox
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Is Glencore the new Blackstone? It has become a meme from Wall Street to the City and beyond that the commodity trader’s planned $12 billion initial public offering marks the top of its industry’s cycle, just as Blackstone’s did for private equity. But investors should watch for other similarities when scrubbing Glencore’s prospectus, which is expected as soon as Wednesday.

Apr 11, 2011
via Breakingviews

IPO hopefuls want to sit around OpenTable

By Rob Cox
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

NEW YORK — The Internet industry’s newest crop of IPO hopefuls wants an OpenTable glow. They’re all conjuring comparisons to the restaurant booking website, whose shares have risen five-fold since debuting. While similarities exist, none of the comers can quite match OpenTable.

Apr 5, 2011

Cisco chief vows to restore “flawed” company

NEW YORK, April 5 (Reuters) – Cisco Systems Inc (CSCO.O: Quote, Profile, Research, Stock Buzz)
chief John Chambers, in a remarkably candid memo to employees,
admitted the one-time technology bellwether and Wall Street
darling has lost its way and will need to change to restore its
credibility.

Chambers, one of Silicon Valley’s most respected corporate
chieftains, confessed in an internal email that the networking
giant had been slow to make decisions, fallen down on execution
and lacked discipline in an aggressive expansion.

Apr 5, 2011

Exclusive: Is Cisco bracing for an activist siege?

– The authors are Reuters Breakingviews columnists. The opinions expressed are their own –

By Rob Cox and Robert Cyran

NEW YORK (Reuters Breakingviews) – Cisco Systems makes a juicy target for an activist assault — and Chief Executive John Chambers seems to know it. True, as a company with a market value of nearly $100 billion, most uppity investors don’t have the means to build a significant stake in the technology giant. But Cisco’s poor performance, valuable assets, cash pile and years of capital misallocation provide the kindling to spark long-suffering shareholders into an uprising.

Apr 5, 2011

Cisco chief admits “flaws” in memo to staff

NEW YORK (Reuters) – Cisco Systems Inc chief John Chambers sent a memo to employees defending the networking company’s strategy while acknowledging it has flaws in “operational execution” and a loss of accountability.

The 1,490-word e-mail, sent to Cisco employees on Monday, calls for the company to focus on five areas: routing, switching and services; collaboration; data center virtualization; architectures; and video.

Apr 5, 2011

Exclusive: Cisco chief admits “flaws” in memo to staff

NEW YORK (Reuters) – Cisco Systems Inc (CSCO.O: Quote, Profile, Research, Stock Buzz) chief John Chambers sent a memo to employees defending the networking company’s strategy while acknowledging it has flaws in “operational execution” and a loss of accountability.

The 1,490-word e-mail, sent to Cisco employees on Monday, calls for the company to focus on five areas: routing, switching and services; collaboration; data center virtualization; architectures; and video.

Apr 5, 2011
via Breakingviews

Is Cisco bracing for an activist siege?

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

By Rob Cox and Robert Cyran

Cisco Systems makes a juicy target for an activist assault — and Chief Executive John Chambers seems to know it. True, as a company with a market value of nearly $100 billion, most uppity investors don’t have the means to build a significant stake in the technology giant. But Cisco’s poor performance, valuable assets, cash pile and years of capital misallocation provide the kindling to spark long-suffering shareholders into an uprising.

Apr 5, 2011
via Breakingviews

Text of Chambers staff memo

This is the complete text of Chambers’ employee memo sent April 4.

As many of you know, my values and approach to leadership are grounded in part by what I learned from my parents.  Both doctors, they taught me to fuel what’s healthy and to heal what’s not.  They taught me to seek solutions to challenges, not symptoms.  Over the years as your leader here at Cisco, I’ve also learned many things.  I’ve learned to read market transitions by listening deeply to our customers and partners.   And I’ve learned to adjust when and where it’s needed, quickly and transparently.

With this in mind, I’d like to share with you my thoughts about Cisco, as Gary Moore also shares his perspective after the first 30 days as our COO.  About what’s working well and is fundamental to who we are and what we stand for.  And about aspects of Cisco today we need to change, what you can expect from me and what I expect from you as we execute against our decisions and move forward, together.

    • About Rob

      "Rob Cox helped establish Breakingviews in 2000 in London. From 2004 he spearheaded the firm's expansion in the United States and edited its American edition, including the daily Breakingviews columns in the New York Times and Wall Street Journal. Rob has worked as a financial journalist in London, Milan, New York, Washington, Chicago and Tokyo. Rob graduated from Columbia University’s Journalism School and the University of Vermont. Follow Rob on Twitter @rob1cox"
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