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Print 9 comment(s) - last by Jansen.. on Mar 26 at 8:56 PM

While the new CEO of Yahoo resigns from Intel's Board

Intel Corporation has announced that John J. Donahoe, President and CEO of eBay, has joined its Board of Directors. He began his position at eBay in March last year, replacing Meg Whitman. Mr Donahoe will step in for Carol Bartz, who has resigned from the Board. Ms. Bartz was appointed CEO of Yahoo! in January.

EBay uses a lot of Intel servers to support its services, including eBay Marketplaces, PayPal's financial services, Skype's internet and video telephony, ticket site StubHub, and Kijiji's free online classified listings. EBay also owns 25% of Craigslist and StumbleUpon, a website recommendation service.

Intel seems to believe that Donahoe will be able to provide strategic insight on its customers based on eBay's wide scope and scale.

Frank Yeary, the Vice Chancellor of the University of California Berkeley will take up the position vacated by D. James Guzy, who retired last year after having served on the Board since 1969.

Yeary retired in 2008 from Citigroup, where he was most recently the global head of mergers and acquisitions. He also has experience in developing education partnerships between the public and private sectors.

Intel's Board of Directors is responsible for reviewing and approving the company's major strategic and operating plans, as well as financial objectives and providing insight in various fields. An example of this was the acceleration in Intel's 32nm production plans, which will see 32nm Westmere based chips almost a year ahead of schedule.

The legendary Craig Barrett is expected to resign from the Board on May 12 at Intel's next Annual General Meeting, when Jane Shaw will take over as Chair of the Board.

Meanwhile, the Board also declared a 14 cent per share quarterly dividend on the company's common stock. The dividend will be payable on June 1, 2009 to stockholders of record on May 7, 2009.

This is widely seen as a sign of strength despite a slumping economy, as its chief rival AMD does not issue dividends.



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What's news worthy with the dividend?
By etekberg on 3/24/2009 5:18:25 PM , Rating: 2
Intel has paid a quarterly dividend for a long time now.




RE: What's news worthy with the dividend?
By Jansen (blog) on 3/24/2009 11:28:23 PM , Rating: 3
There was some speculation that Intel had a horrible Q1 and would cut its dividend.

Continuing the dividend at its current rate sends a signal that its Q1 results will not be that bad.


RE: What's news worthy with the dividend?
By paydirt on 3/26/2009 10:41:48 AM , Rating: 2
Unless you are a finance guy, you may not want to comment on what a dividend means.

Intel has a lot of cash, so if they had a bad quarter they could still issue a dividend and be in good financial shape.

The major banks were slow to cut their dividends; before they cut them they still had bad results.

Dividends are economically neutral. If you own a stock, you have an ownership claim on the entirety of the business. This ownership claim includes cash that Intel has. So, if Intel decides to pay you a dividend, they are paying you cash that you already owned.

Dividends are not free or magical (not saying you said this Jansen, lots of folks have the misconception).

The presense of a dividend in general means that management SHOULD be more prudent with how they reinvest earnings back into their business. This is because they want to come up with cash on a regular basis to pay the dividend (if they don't have the cash already).

Dividends can also mean that the company does not know how to productively invest all their cash. Take Micro$oft, they don't know how to invest all the cash they generate and at one point had $50 Billion in cash, so they did a special dividend to hand it over to the shareholders.


By Jansen (blog) on 3/26/2009 8:56:12 PM , Rating: 2
I am a finance guy.

I understand your points though, and they are valid. It was unlikely that Intel would cut their dividend, as that would be an extremely negative signal and the stock price would plumet.

There was speculation as to how bad Intel's Q1 would be, this does quell some of the negative speculation.

My point in the article was more that Intel is still in good enough shape to issue dividends, while AMD is not.


I guess its possible
By SunAngel on 3/24/09, Rating: -1
RE: I guess its possible
By Jansen (blog) on 3/24/2009 12:36:23 PM , Rating: 5
"Intel seems to believe that Donahoe will be able to provide strategic insight on its customers based on eBay's wide scope and scale."


RE: I guess its possible
By TA152H on 3/24/2009 11:03:48 PM , Rating: 3
Plus, eBay knows what it's like to be a monopoly, or near-monopoly. That has to help when making decisions that might have repercussions in that area.


RE: I guess its possible
By ExarKun333 on 3/24/2009 1:00:54 PM , Rating: 2
Maybe try reading the whole article next time? Feel free to take a few breaks, there are a lot of words.


RE: I guess its possible
By Desslok on 3/24/2009 10:47:38 PM , Rating: 2
What is this reading you are talking about???


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