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K.C. Neel
Wall Street wags are wondering what's going to happen to Oracle in the wake of the abrupt resignation of COO Ray Lane earlier this month. Investor concerns over the organizational set-up - or lack thereof - have sent Oracle's shares down about 5% since Lane quit.
Lane had been with Oracle for eight years and will continue to serve on the company's board. But neither Oracle nor Lane have given a reason for his departure.
Oracle chairman Larry Ellison is taking over many of Lane's duties in the interim, but it's unclear what Oracle plans to do to fill Lane's shoes permanently. In the meantime, three Oracle executives will absorb a substantial responsibility: EVP Gary Bloom, CFO Jeff Henley and EVP Safra Catz.
There has been some speculation that Lane left after the company's spying gig on Microsoft became public. Lane resigned two days after Ellison admitted he hired private detectives to spy on Microsoft's business practices. Other observers say he was just tired of the job.
Lane had hinted for more than a year that he was leaving. Some insiders say Lane wanted a larger role in the company and knew he wasn't going to get it.
J.P. Morgan analyst William Epifanio downgraded Oracle's stock recently from "market performer" to "buy." He's concerned about Oracle's plan for management succession now that Lane is gone.
Some analysts expected Lane to stick around longer. Merrill Lynch analyst Christopher Shilakes says Lane's departure was a bit surprising given his recent bullishness on the company.
"This could place near-term pressure on Oracle, as Lane has held senior positions at Oracle for the past eight years and was highly regarded by the Street," Shilakes wrote in a report.
FILLING THE DONUT No cable? No way. That's what many residents wanting to live in apartment buildings in downtown Ann Arbor, Mich., have been saying when they find out the core city isn't wired for cable service. But apartment building owners and tenants will soon be able to watch their MTV without having to buy a dish now that MediaOne - now AT&T Broadband - is going to wire the 24-square block area.
BAIS SLASHES DSL Everyone knew it had to happen sooner or later. Bell Atlantic Internet Solutions has cut its DSL prices to $39.95 a month from $49.95. In many cases, cable operators have been able to undercut DSL prices and gain a larger foothold on the high-speed market. No more, at least in northeast and Mid-Atlantic regions where BAIS operates.
WOW SIGNS ISP WideOpenWest signed its first open access ISP deal with Front Range Internet, which counts 10,000 Internet customers in the greater Denver area. WOW is now wiring several Denver suburbs for voice, video and data and is hoping to begin construction within the city limits in August after residents vote on whether to grant the overbuilder a franchise. WOW has vowed to keep its networks open to any and all ISPs that want carriage.
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