Technology News
Apple
On Apr. 7, Apple released its beta version of Boot Camp, a program that will allow Windows to run on Intel-based Mac computers. While Apple has not mentioned if Apple computers will be able to run the new Vista version of Windows, to be released later this year, this move is a significant attempt to encroach upon the PC market.
The first Mac computer that will be sold with Boot Camp included is the Mac OS X 10.5, called Leopard.
This release has the potential to delay the release of Windows Vista because of the work needed to ensure integration into the new computers.
Netflix
Netflix, the online DVD rental service, filed a patent infringement lawsuit on Apr. 4 against Blockbuster. The suit centered on Blockbuster's 20-month-old Internet service, which, like Netflix, allows consumers to prioritize the DVD selections that they would like to be sent directly to their homes. The Netflix queue system was patented in 2003. Blockbuster used the same system when it started its online division in 2004 after it discovered that it was losing market share to Netflix.
Netflix also claims that Blockbuster used its popular business practice of renting videos for an unlimited time without incurring late fees. This practice was implemented seven years ago by Netflix and adopted in 2005 by Blockbuster.
Industry News
General Motors
General Motors recently agreed that it will sell over half of its profitable automobile insurance division, General Motors Acceptance Corporation (GMAC), to private equity firm Cerberus in order to invest the sales profits into overhauling the remainder of GM. One of the only GM divisions that made a profit last year, GMAC made $3 billion while the company on the whole lost $10.6 billion.
The divestment of GMAC from General Motors is thought to improve GMAC's credit rating, which has been depressed by General Motors' junk rating issued in 2005. Cerberus' credit rating, being less than stellar, may not allow the upgrade of GMAC to investment grade.
Delphi
In March, Delphi, General Motor's spun-off parts division, asked a bankruptcy court to scrap its labor contracts so that it could fire many of its 33,000 workers in an attempt to pursue a restructuring plan. The Delphi worker's union, UAW, however, has threatened to strike if the court agrees. Such a strike would likely affect the production ability of General Motors and perhaps even suck the world's largest carmaker into bankruptcy.
General Motors is currently looking into a deal with the union that would protect it from a Delphi strike. While the union may decide that a strike is in nobody's interest, it is also possible that rumors of employee trouble could cause General Motors' credit rating to plummet, affecting the GMAC deal with Cerberus.
Briefs compiled by Forrest Gittleson from the Economist and the New York Times.
