Delta's (DAL) Anderson: 'No plans for a merger right now'

Kevin Shult — Wed, 22 Aug 2007 16:15:00 EST

Filed under: Deals, Rumors, Management, Industry, Competitive Strategy, Delta Air Lines (DAL)

Delta Air Lines (NYSE: DAL) named Richard Anderson, the former head of Northwest Airlines (NYSE: NWA), its new CEO yesterday. The move follows Delta's 19 ½ month reorganization under bankruptcy protection.

Seth Tobias of Circle T Partners told Bloomberg, "This could spur the possibility of further consolidation in the industry." The Board's Chairman, Daniel A. Carp, said that Anderson "possesses the right blend of seasoned leadership, strategic skills, international experience and airline knowledge the company needs to navigate the industry's challenges and capitalize on its opportunities."

Bear Stearns agreed with Tobias and Carp this morning. They said Anderson could reshape the U.S. airline industry, claiming that he and the current Northwest CEO, Douglas Steenland, are able to understand each other. Bear Stearns believes a merger between to two would create over $5 billion in incremental equity value.

Despite all the speculation, Anderson said he had no plans for a merger with Northwest on CNBC this morning. He did, however, predict there will be future consolidation within the industry, but failed to name names in the comment.

Anderson told reporters on a conference call that Delta is in a "position of strength" after leaving bankruptcy. The airliner that emerged from bankruptcy only months ago is certainly stronger than it was last year, but the company still faces significant headwinds, including the possibility of a slowdown, growing fuel costs and competition with the growing number of discount airlines. While the idea of Delta acquiring Northwest may sound like a logical move, the thought of taking over an airliner that has a disgruntled union, crew shortages, a horrible reputation and a $3.57 billion market cap is just too much to swallow.

Delta's (DAL) Anderson: 'No plans for a merger right now' originally appeared on BloggingStocks on Wed, 22 Aug 2007 16:15:00 EST. Please see our terms for use of feeds.

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Zune's social network could mean iPod users switch in droves

Matthew Himler — Wed, 08 Nov 2006 22:00:00 EST

Filed under: Products and Services, Microsoft (MSFT), Apple Inc (AAPL)

Tobias Buckell recently wrote a piece pointing out that a recent ABI Research survey touted that some 58% of iPod users would consider a switch to a Microsoft Corporation (NASDAQ:MSFT) Zune within the next 12 months. One of obvious reasons for this is the larger screen, but Zune's social networking will also clearly send a message to Apple users. Zune's social networking will be based in Zune Marketplace, which is equivalent of iTunes and songs can also be shared via wireless technology on the Zune device.

Today, social networking is vital. Last week I was interviewed by the Globe and one of my key emphasis points was that whether it is blogs, Facebook or MySpace, people are starting to use technology to not only expose themselves, but also to share their views and opinions. I think Microsoft's understanding of this change, which is apparent in Zune, will give the company a differentiating edge.

By no means am I saying that Zune will take over the iPod, because it certainly won't, but it will definitely put forth another trendy alternative -- one that Apple in turn may mimic. Also don't forget about Microsoft's reported $100 million ad campaign for Zune, featuring the tag-line "welcome to the social," which I am sure will have a great impact!

(Listen up Apple, nobody thought the Republicans could be toppled either.)

Zune's social network could mean iPod users switch in droves originally appeared on BloggingStocks on Wed, 08 Nov 2006 22:00:00 EST. Please see our terms for use of feeds.

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