Ailing automakers General Motors (GM) and Chrysler have said that they are rebooting their merger talks, after the congressional effort of $14 billion for auto bailout collapsed. This move was brought about by Cerberus Capital Management LP, a majority owner of Chrysler, who has signaled its willingness to give away some of its ownership, according to the WSJ. Some weeks ago, GM and Chrysler had put an end to their merger talks, as they viewed the merger unfeasible and a diversion from their escalating liquidity problems. Both the companies are taking steps to save cash, by cutting jobs and closing plants throughout its operations. GM said recently that it will erase about 250,000 units from its first quarter production, by idling about 30% of its North American assembly plant volume. Work is also delayed on the $370 million factory in Flint, Michigan, which is supposed to make engines for the Chevy Volt electric car, to save money.
LinkedIn Founder Hoffman Replaces Nye as CEO
LinkedIn founder Reid Hoffman is back as CEO in place of the outgoing CEO Dan Nye, and has brought Yahoo!’s Jeff Weiner in as interim president. Hoffman was CEO before Nye took over in February 2007, and continued at his earlier post of chairman and president of products at the company. Nye’s departure was unclear, according to the WSJ. Under Nye, LinkedIn made huge profits as the revenue increased ten times and the number of people who created profiles on the site quadrupled to more than 33 million. The revenue is said to have helped the company to raise about $80 million and ricocheted the company’s value to about $1 billion. It hasn’t been able to keep pace with Facebook though, which has more than seven times members than it had in early 2007. Nye, 42, plans to remain at LinkedIn through January to help with the transition. Last week, LinkedIn had also managed to poach Google executive Dipchand “Deep” Nishar, to run its product line.
Take-Two Introduces New Deals with Rockstar
Take-Two Interactive Software said recently that it has inked a new, long-term agreement with Rockstar Games, the creators of the blockbuster ''Grand Theft Auto'' video game franchise. Take-Two’s move ensured that the Rockstar creative team will remain employees of the company's wholly-owned studio for the next three years. Rockstar head executives, the Houser brothers and Leslie Benzies, have all signed on again to long-term employment contracts along with other “key members” of the development staff. Also, Take-Two will restructure the way it shares profits with Rockstar according to the clauses of the agreement. Take-Two’s move will ensure retention of its creative forces as there will be no bidding war for Rockstar’s services when their present contract expires in February 2009. Take-Two representatives had earlier noted that Grand Theft Auto IV accounted for $710 million of its $1.5 billion total revenue in 2008.
