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Technology Stocks : Silicon Graphics, Inc. (SGI) -- Ignore unavailable to you. Want to Upgrade?

To: Adam Nash who wrote (6434)	8/24/1999 4:58:00 AM
From: BillCh	Respond to of 14451

SGI chief poised to take charge of MS Internet division The Register - SGI CEO Richard Belluzzo resigned unexpectedly yesterday, and is now being tipped to take charge of Microsoft's Internet operations, including the Microsoft Network. This is one of the poison chalice jobs at Microsoft - the company has been searching for somebody to run it for nigh on a year, without success until now. SGI has promoted Bob Bishop to Belluzzo's slot, and expressed some surprise at their former leader's decision to jump ship for less than a CEO post. But Belluzzo didn't need to walk, and will have extracted a high price for taking the post that long-serving MS execs have viewed as pretty much a suicide mission. Brad Silverberg, he of the prodigiously long job earlier this year, and insiders (those who haven't already departed on extended leave, that is) are generally too fat on stock options to consider taking this kind of risk. Belluzzo however will slot in at the top level at icrosoft, and considering the growing power vacuum being created as the old guard cashes its hips, if he's successful with the interactive business the sky could be the limit. That's one big "if," of course, but with Microsoft continuing to throw money at the problem, it may be less intractable than it looks. And of course, there's the possibility of big bucks for Rick as and when Microsoft decides to spin the operation off.

To: Adam Nash who wrote (6434)	8/24/1999 7:46:00 AM
From: Kenya AA	Read Replies (1) \| Respond to of 14451

Extra Ex-SGI Chief Belluzzo to Run Microsoft's Internet Businesses By Adam Lashinsky Silicon Valley Columnist 8/23/99 11:30 PM ET Richard Belluzzo is jumping out of the frying pan and into the fire. Belluzzo, who resigned Monday as chief executive of troubled high-end computer maker Silicon Graphics (SGI:NYSE), will assume the long-dormant position of running Microsoft's (MSFT:Nasdaq) numerous Internet businesses, according to four sources familiar with Belluzzo's plans, including two who have discussed them with Belluzzo directly. Microsoft's consumer and commerce group, currently headed by vice presidents Brad Chase and Jon DeVaan, includes Internet service MSN, Internet-TV hybrid WebTV, the company's interactive television efforts and marketing activities for the Windows CE operating system for handheld devices. The group has been a center of attention at Microsoft for several years because of its chronic failure to match America Online's (AOL:NYSE) dominance of Internet access and services. More recently, Microsoft's Internet operations have been under scrutiny over speculation that Microsoft will create a separate tracking stock tied to the group's performance. Belluzzo is an unlikely choice for the job. A 22-year veteran of computer and printer manufacturer Hewlett-Packard (HWP:NYSE), he was considered a top candidate eventually to head H-P before he surprised Silicon Valley at the beginning of 1998 by taking a stab at turning around SGI. Belluzzo is considered a capable operating executive but is certain to meet criticism because Microsoft observers have been expecting the software giant instead to choose a seasoned media or Internet executive, much as AOL turned to Bob Pittman when it needed outside blood. Microsoft hasn't yet announced Belluzzo's arrival, and a company spokeswoman declined to comment Monday night on any personnel moves. Belluzzo didn't return a phone call Monday evening, and SGI executives declined to discuss where the former executive would be working, though the company said it is a non-CEO job with a company that doesn't compete with SGI. One source says Microsoft had planned to announce Belluzzo's appointment at the beginning of September. Another source says the delay simply is because some of the relevant Microsoft officials are on vacation. But Belluzzo's ties to Microsoft run deep. He dealt extensively with the company when he ran all of H-P's highly successful printer operations. In that role, he also worked under retired H-P executive Richard Hackborn, a Microsoft board member since 1994. Hackborn -- who, like Belluzzo, lives in Boise, Idaho -- recently spearheaded the search for H-P's new CEO, former Lucent (LU:NYSE) executive Carly Fiorina. Hackborn is slated to become non-executive chairman of H-P's board of directors when current chairman Lewis Platt retires at the end of the year. At SGI, Belluzzo is leaving behind a troubled fallen giant. He recently succeeded in restoring the company to profitability, but then disappointed Wall Street with the announcement that SGI would undergo its third restructuring in three years. That move, announced Aug. 10 at a meeting for analysts in New York, includes the jettisoning of SGI's Cray supercomputer division and laying off 1,500 workers. Convinced the reshuffling means SGI will flounder further, investors hammered SGI's stock from more than 16 before the announcement to 12 7/16 Monday. According to a source close to Belluzzo, the former CEO informed the board of directors of his offer from Microsoft before the New York meeting, but he didn't resign until after taking stock of Wall Street's reaction. Meanwhile, at Microsoft, Belluzzo will join a business that also has had its share of knocks. The last senior executive to run the entire operation, albeit under a slightly different organization, was Pete Higgins, who took a leave of absence last November. The Microsoft spokeswoman says Higgins remains on his leave and has not indicated when or if he plans to return. But Microsoft's Internet operations also lately have been showing signs of life. MSN plans to offer highly discounted access to the Internet, a move viewed as a major threat to AOL. The combined MSN sites (including such consumer-focused attractions as MoneyCentral and CarPoint) also are ranked third in overall users, behind only the combined sites of AOL and Yahoo! (YHOO:Nasdaq).