Oracle to buy network gear maker Acme Packet for $2.1 billion


(Reuters) - Oracle Corp will buy network equipment maker Acme Packet Inc for $2.1 billion, putting it in a better position to compete with Cisco Systems Inc in moving data securely over internet networks.


Shares of Acme were trading 7 cents above the offer price of $29.25 in early trading on Monday, suggesting that some investors anticipate a counter bid.


The deal is Oracle's biggest since it bought Sun Microsystems in 2010 for about $7 billion. The company bought nearly a dozen companies in 2012, including Eloqua Inc for $810 million in December.


Telecom carriers have been dumping wireline and other legacy services as people increasingly use a newer breed of devices to access Internet and businesses shift to IP (internet protocol) networks, an area where Acme Packet specializes.


"Users are increasingly connected and expect to communicate anytime and anywhere using their application, device, and network of choice," Oracle said in a statement.


Oracle Chief Executive Larry Ellison, who has used acquisitions to boost the company's revenue dramatically over the past decade, had said in October he would not rule out a big deal "down the road".


"We have been expecting Oracle to make a bigger push into the networking market as convergence across the IT world appears to be inevitable and today's deal supports this notion," said Brian White, an analyst at Topeka Capital Markets.


The offer represents a 22 percent premium to Acme Packet's Friday close on the Nasdaq. The deal, which Acme said is expected to close in the first half of 2013, is worth about $1.7 billion, net of cash.


Oracle shares were down 1 percent at $35.88 in early trading on the Nasdaq.


Shares of Acme rival Sonus Networks Inc also rose 14 percent on the news, while those of Juniper Networks Inc were up 2 percent.


Acme has been hit by weak telecom spending in the last few quarters as carriers spend less on new projects and delay existing ones. Its shares had fallen 18 percent in the last year as of Friday.


Acme also reported fourth-quarter earnings of 9 cents per share, excluding items, on revenue of $70.7 million.


Analysts expected an adjusted profit of 8 cents per share and revenue of $68.9 million, according to Thomson Reuters I/B/E/S.


(Reporting by Sayantani Ghosh in Bangalore; Editing by Sreejiraj Eluvangal and Saumyadeb Chakrabarty)



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Ravens edge 49ers 34-31 in electric Super Bowl


NEW ORLEANS (AP) — For a Super Bowl with so many story lines, this game came up with quite a twist.


Try a blackout that turned a blowout into a shootout — capped by a brilliant defensive stand.


The Baltimore Ravens survived a frenzied comeback by the San Francisco 49ers following a 34-minute delay in the third quarter for a power outage Sunday night, winning their second championship 34-31. Super Bowl MVP Joe Flacco threw three first-half touchdown passes, Jacoby Jones ran back the second-half kickoff a record 108 yards for a score, and star linebacker Ray Lewis' last play fittingly was part of a defensive effort that saved the victory.


"To me, that was one of the most amazing goal-line stands I've ever been a part of in my career," said Lewis, who announced a month ago he would retire when the Ravens were done playing.


They are done now, with another Vince Lombardi Trophy headed for the display case.


"What better way to do it," Lewis said, "than on the Super Bowl stage?"


That stage already was loaded with plots:


—The coaching Harbaughs sibling rivalry, won by older brother John, who said the postgame greeting with Jim was "painful."


—Flacco's emergence as a top-level quarterback, and his impending free agency.


—Colin Kaepernick's rapid rise in the last two months as 49ers QB.


—The big game's return to the Big Easy for the first time in 11 years, and the first time since Hurricane Katrina ravaged the city in 2005.


—Lewis' self-proclaimed "last ride."


But when the Superdome lost power, well, that wasn't in anyone's scenario.


Flacco and the Ravens (14-6) were turning the game into a rout, leading 28-6 when, without even a flicker of warning, several banks of lights and the scoreboards went dark. Players from both sides stretched and chatted with each other in as bizarre a scene as any Super Bowl has witnessed.


"The bad part was we started talking about it," said safety Ed Reed, who had the game's only interception. "That was mentioned. It was like they were trying to kill our momentum."


After power was restored, the 49ers began playing lights out.


San Francisco (13-5-1), in search of its sixth Lombardi Trophy in as many tries, got back in the game almost immediately.


Michael Crabtree's 31-yard touchdown reception, on which he broke two tackles, made it 28-13. A few minutes later, Frank Gore's 6-yard run followed a 32-yard punt return by Ted Ginn Jr., and the 49ers were within eight.


Ray Rice's fumble at his 24 led to David Akers' 34-yard field goal, but Baltimore woke up for a long drive leading to rookie Justin Tucker's 19-yard field goal.


San Francisco wasn't done challenging, though, and Kaepernick's 15-yard TD run, the longest for a quarterback in a Super Bowl, made it 31-29. A 2-point conversion pass failed when the Ravens blitzed.


Tucker added a 38-yarder with 4:19 remaining, setting up the frantic finish.


Kaepernick couldn't get the 49ers into the end zone on the final three plays. The last was a pass into the right corner of the end zone to Crabtree that involved some incidental bumping. Jim Harbaugh insisted a flag should have been thrown.


"There's no question in my mind that there was a pass interference and then a hold," Jim Harbaugh said.


Ravens punter Sam Koch took a safety for the final score with 4 seconds left. Koch's free kick was returned by Ginn to midfield as time ran out.


"How could it be any other way? It's never pretty. It's never perfect. But it's us," John Harbaugh said of his Ravens. "It was us today."


Barely.


"Yeah, I think that last drive when we got the ball and had time to go down and score a touchdown," Kaepernick said, "we thought it was our game."


But the championship is Baltimore's.


As for the foul-up at America's biggest sporting event, officials revealed that an "abnormality" in the power system triggered an automatic shutdown, forcing backup systems to kick in. But no one was sure what caused the initial problem.


Everything changed after that until Lewis and Co. shut it down. But there were plenty of white-knuckle moments and the Ravens had to make four stops inside their 7 at the end.


"I think it speaks to our resolve, speaks to our determination, speaks to our mental toughness," John Harbaugh said. "That is what wins and loses games."


At 4 hours, 14 minutes, it was the longest Super Bowl ever.


Flacco's arrival as a championship quarterback — he had 11 postseason TD passes, tying a league mark, and no interceptions — coincides with Lewis' retirement. The win capped a sensational four games since Lewis announced he was leaving the game after 17 Hall of Fame-caliber years.


The Ravens will become Flacco's team now, provided he reaches agreement on a new contract.


Flacco's three TD passes in the opening half tied a Super Bowl record. They covered 13 yards to Anquan Boldin, 1 to Dennis Pitta and 56 to Jones.


That start boosted him to the MVP award.


"They have to give it to one guy and I'm not going to complain that I got it," Flacco said.


John Harbaugh had no complaints about getting that other trophy named after that Green Bay coach. But he struggled to balance it with the disappointment his brother was feeling.


"The meeting with Jim in the middle (of the field for the postgame handshake) was probably the most difficult thing I have ever been associated with in my life," the Ravens coach said.


The wild scoring made this the second championship in the NFL's 80-year title game history in which both teams scored at least 30 points. Pittsburgh's 35-31 win over Dallas in 1979 was the other.


The Ravens stumbled into the playoffs with four defeats in its last five regular-season games as Lewis recovered from a torn right triceps and Flacco struggled. Harbaugh even fired his offensive coordinator in December, a stunning move with the postseason so close.


But that — and every other move Harbaugh, Flacco and the Ravens made since — were right on target.


New Orleans native Jones, one of the stars in a double-overtime playoff win at Denver, seemed to put the game away with his record 108-yard sprint with the second-half kickoff.


Soon after, the lights went out — and when they came back on, the Ravens were almost powerless to slow the 49ers.


Until the final moments.


"The final series of Ray Lewis' career was a goal-line stand," Harbaugh said.


Lewis was sprawled on all fours, face-down on the turf, after the end zone incompletion.


"It's no greater way, as a champ, to go out on your last ride with the men that I went out with, with my teammates," Lewis said. "And you looked around this stadium and Baltimore! Baltimore! We coming home, baby! We did it!"


Jim Harbaugh, the coach who turned around the Niners in the last two years and brought them to their first Super Bowl in 18 years, had seen his team make a similarly stunning comeback in the NFC championship at Atlanta, but couldn't finish it off against Baltimore.


"Our guys battled back to get back in," the 49ers coach said. "I thought we battled right to the brink of winning."


The 49ers couldn't have been sloppier in the first half, damaging their chances with penalties — including one on their first play that negated a 20-yard gain — poor tackling and turnovers. Rookie LaMichael James fumbled at the Baltimore 25 to ruin an impressive drive, and the Ravens converted that with Flacco's 1-yard pass to Pitta for a 14-3 lead.


On San Francisco's next offensive play, Kaepernick threw behind Randy Moss and always dependable Reed picked it off. A huge scuffle followed that brought both Harbaughs onto the field and saw both sides penalized 15 yards for unnecessary roughness.


Reed, also a New Orleans native, tied the NFL record for postseason picks with his ninth.


Baltimore didn't pounce on that mistake for points. Instead, Tucker's fake field goal run on fourth-and-9 came up a yard short when Chris Culliver slammed him out of bounds.


The Ravens simply shrugged, forced a three-and-out, and then unleashed Jones deep. Just as he did to Denver, he flashed past the secondary and caught Flacco's fling. He had to wait for the ball, fell to the ground to grab it, but was untouched by a Niner. Up he sprang, cutting left and using his speed to outrun two defenders to the end zone.


Desperate for some points, the 49ers completed four passes and got a 15-yard roughing penalty against Haloti Ngata, who later left with a knee injury. But again they couldn't cross the goal line, Paul Kruger got his second sack of the half on third down, forcing a second field goal by Akers, from 27 yards.


When Jones began the second half by sprinting up the middle virtually untouched — he is the second player with two TDs of 50 yards or more in a Super Bowl, tying Washington's Ricky Sanders in 1988 — the rout was on.


Then it wasn't.


"Everybody had their hand on this game," 49ers All-Pro linebacker Patrick Willis said. "We point the fingers at nobody. We win together and we lose together, and today we lost it."


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Bolshoi ballet chief heads to Germany after attack






MOSCOW (AP) — The artistic director of the Bolshoi ballet said he knows who ordered an acid attack that left him with severe burns to his eyes and face but won’t say, voicing hope that investigators will soon name the perpetrator.


Sergei Filin checked out of a Moscow hospital Monday and headed to Germany for further rehabilitation.






Filin, 42, wore shades and a bandage on his head, and skin on his face was red and swollen from burns. But he spoke energetically and seemed to be in a good mood as he walked out of the hospital accompanied by his wife.


“My body is full of strength and energy,” he told reporters.


Filin earlier told Russian state television that he knew who ordered the attack but wouldn’t give names. “My heart tells me who did it,” Filin told Rossiya 24 television in an interview broadcast late Sunday.


He said that investigators would visit him in Germany as part of the continuing probe.


An attacker threw sulphuric acid in Filin’s face in Moscow on Jan. 17, as he was returning home from work.


“I felt enormous, unbearable pain,” Filin recalled in the television interview. “I fell face down in the snow and started rubbing my face and eyes with snow.”


His colleagues said the attack on Filin could be in retaliation for his selection of certain dancers over others for the prized roles.


The Bolshoi has been plagued by intrigue and infighting that have led to the departure of several artistic directors over the past few years.


Filin told reporters Monday as he was leaving the hospital that he’s still seeing as if through a mist as his eye treatment is continuing, and added that he will have to undergo further eye surgery in Germany.


“I don’t care about my face, my hair, my looks,” he said in the television interview. “I’m ready to be completely bald, look like a Frankenstein. It will have no impact on my heart, on my soul. All my inner self, all my energy is focused on recovering eyesight.”


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Bullying study: It does get better for gay teens


CHICAGO (AP) — It really does get better for gay and bisexual teens when it comes to being bullied, although young gay men have it worse than their lesbian peers, according to the first long-term scientific evidence on how the problem changes over time.


The seven-year study involved more than 4,000 teens in England who were questioned yearly through 2010, until they were 19 and 20 years old. At the start, just over half of the 187 gay, lesbian and bisexual teens said they had been bullied; by 2010 that dropped to 9 percent of gay and bisexual boys and 6 percent of lesbian and bisexual girls.


The researchers said the same results likely would be found in the United States.


In both countries, a "sea change" in cultural acceptance of gays and growing intolerance for bullying occurred during the study years, which partly explains the results, said study co-author Ian Rivers, a psychologist and professor of human development at Brunel University in London.


That includes a government mandate in England that schools work to prevent bullying, and changes in the United States permitting same-sex marriage in several states.


In 2010, syndicated columnist Dan Savage launched the "It Gets Better" video project to encourage bullied gay teens. It was prompted by widely publicized suicides of young gays, and includes videos from politicians and celebrities.


"Bullying tends to decline with age regardless of sexual orientation and gender," and the study confirms that, said co-author Joseph Robinson, a researcher and assistant professor of educational psychology at the University of Illinois in Urbana-Champaign. "In absolute terms, this would suggest that yes, it gets better."


The study appears online Monday in the journal Pediatrics.


Eliza Byard, executive director of the Gay, Lesbian & Straight Education Network, said the results mirror surveys by her anti-bullying advocacy group that show bullying is more common in U.S. middle schools than in high schools.


But the researchers said their results show the situation is more nuanced for young gay men.


In the first years of the study, gay boys and girls were almost twice as likely to be bullied as their straight peers. By the last year, bullying dropped overall and was at about the same level for lesbians and straight girls. But the difference between men got worse by ages 19 and 20, with gay young men almost four times more likely than their straight peers to be bullied.


The mixed results for young gay men may reflect the fact that masculine tendencies in girls and women are more culturally acceptable than femininity in boys and men, Robinson said.


Savage, who was not involved in the study, agreed.


"A lot of the disgust that people feel when you bring up homosexuality ... centers around gay male sexuality," Savage said. "There's more of a comfort level" around gay women, he said.


Kendall Johnson, 21, a junior theater major at the University of Illinois, said he was bullied for being gay in high school, mostly when he brought boyfriends to school dances or football games.


"One year at prom, I had a guy tell us that we were disgusting and he didn't want to see us dancing anymore," Johnson said. A football player and the president of the drama club intervened on his behalf, he recalled.


Johnson hasn't been bullied in college, but he said that's partly because he hangs out with the theater crowd and avoids the fraternity scene. Still, he agreed, that it generally gets better for gays as they mature.


"As you grow older, you become more accepting of yourself," Johnson said.


___


Online:


Pediatrics: http://www.pediatrics.org


It Gets Better: http://www.itgetsbetter.org


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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Following Super Bowl, Beyonce announces world tour


NEW YORK (AP) — Beyonce was just warming up at the Super Bowl: The singer has announced a world tour.


"The Mrs. Carter Show World Tour" will kick off April 15 in Belgrade, Serbia. The European leg of the tour will wrap up May 29 in Stockholm, Sweden.


The tour's North American stint starts June 28 in Los Angeles and ends Aug. 3 in Brooklyn, N.Y., at the Barclays Center.


It was also announced Monday that a second wave of the tour is planned for Latin America, Australia and Asia later this year.


Beyonce was the halftime performer at Sunday night's Super Bowl, where the Baltimore Ravens defeated the San Francisco 49ers. She performed a 13-minute set that included hits "Crazy in Love," ''Single Ladies (Put a Ring on It)" and a Destiny's Child reunion.


___


Online:


http://www.beyonceonline.com/us/home


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FCC proposes public Wi-Fi networks









The federal government wants to create super Wi-Fi networks across the nation, so powerful and broad in reach that consumers could use them to make calls or surf the Internet without paying a cellphone bill every month.


The proposal from the Federal Communications Commission has rattled the $178 billion wireless industry, which has launched a fierce lobbying effort to persuade policymakers to reconsider the idea, analysts say. That has been countered by an equally intense campaign from Google, Microsoft and other tech giants who say a free-for-all Wi-Fi service would spark an explosion of innovations and devices that would benefit most Americans, especially the poor.


The airwaves that FCC officials want to hand over to the public would be much more powerful than existing Wi-Fi networks that have become common in households. They could penetrate thick concrete walls and travel over hills and around trees. If all goes as planned, free access to the Web would be available in just about every metropolitan area and many rural areas.








The new Wi-Fi networks would also have much farther reach, allowing for a driverless car to communicate to another vehicle a mile away or a patient's heart monitor to connect to a hospital on the other side of town.


If approved by the FCC, the free networks would still take several years to set up. And, with no one actively managing them, connections could easily become jammed in major cities. But public Wi-Fi could allow many consumers to make free calls from their mobile phones via the Internet. The frugal-minded could even use the service in their homes, allowing them to cut off expensive Internet bills.


"For a casual user of the Web, perhaps this could replace carrier service," said Jeffrey Silva, an analyst at the Medley Global Advisors research firm. "Because it is more plentiful and there is no price tag, it could have a real appeal to some people."


Designed by FCC Chairman Julius Genachowski, the plan would be a global first. When the U.S. government made a limited amount of unlicensed airwaves available in 1985, an unexpected explosion in innovation followed. Baby monitors, garage door openers and wireless stage microphones were created. Millions of homes now run their own wireless networks, connecting tablets, game consoles, kitchen appliances and security systems to the Internet.


"Freeing up unlicensed spectrum is a vibrantly free-market approach that offers low barriers to entry to innovators developing the technologies of the future and benefits consumers," Genachowski said in a an e-mailed statement.


Some companies and local cities are already moving in this direction. Google is providing free Wi-Fi to the public in the Chelsea neighborhood of Manhattan and parts of Silicon Valley.


Cities support the idea because the networks would lower costs for schools and businesses or help vacationers easily find tourist spots. Consumer advocates note the benefits to the poor, who often cannot afford expensive cellphone and Internet bills.


The proposal would require local television stations and other broadcasters to sell a chunk of airwaves to the government that would be used for the public Wi-Fi networks. It is not clear whether these companies would be willing to do so.


The FCC's plan is part of a broader strategy to re-purpose entire swaths of the nation's airwaves to accomplish a number of goals, including bolstering cellular networks and creating a dedicated channel for emergency responders.


Some Republican lawmakers have criticized Genachowski for his idea of creating free Wi-Fi networks, noting that an auction of the airwaves would raise billions for the U.S. Treasury.


That sentiment echoes arguments made by companies such as AT&T, T-Mobile, Verizon Wireless, Intel and Qualcomm that wrote in a letter to FCC staff late last month that the government should focus its attention on selling the airwaves to businesses.


Some of these companies also cautioned that a free Wi-Fi service could interfere with existing cellular networks and television broadcasts.


Intel, whose chips are used in many of the devices that operate on cellular networks, fears that the new Wi-Fi service would crowd the airwaves. The company said it would rather the FCC use the airwaves from television stations to bolster high-speed cellular networks, known as 4G.


"We think that that spectrum would be most useful to the larger society and to broadband deployment if it were licensed," said Peter Pitsch, the executive director of communications for Intel. "As unlicensed, there would be a disincentive to invest in expensive networking equipment and provide users with optimal quality of service."


Cisco and other telecommunications equipment firms told the FCC that it needs to test the airwaves more for potential interference.


"Cisco strongly urges the commission to firmly retreat from the notion that it can predict, or should predict . . . how the unlicensed guard bands might be used," the networking giant wrote.


Supporters of the free-Wi-Fi plan say telecom equipment firms have long enjoyed lucrative relationships with cellular carriers and may not want to disrupt that model.


An FCC official added that there is little proof so far that the spectrum that could be used for public Wi-Fi systems would knock out broadcast and 4G wireless signals.


"We want our policy to be more end-user-centric and not carrier-centric. That's where there is a difference in opinion" with carriers and their partners, said a senior FCC official who spoke on the condition of anonymity because the proposal is still being considered by the five-member panel.


The lobbying from the cellular industry motivated longtime rivals Google and Microsoft to join forces to support the FCC's proposal. Both companies would benefit from a boom in new devices that could access the free Wi-Fi networks.


These companies want corporations to multiply the number of computers, robots, devices and other machines that are able to connect to the Internet, analysts said. They want cars that drive themselves to have more robust Internet access.


More public Wi-Fi, they say, will spur the use of "millions of devices that will compose the coming Internet of things," the firms wrote in their comment to the FCC last week.


"What this does for the first time is bring the prospect of cheap broadband, but like any proposal it has to get through a political process first," said Harold Feld, a vice president at the public interest group Public Knowledge.






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Man dies, about 10 people displaced in apartment fire









McHenry County officials identified the victim who died in an early morning Huntley apartment building fire as a 47-year-old man.


The fire broke out this morning in a six-unit apartment and displaced 10 people, according to Battalion Chief Tim Flannigan of the Huntley Fire Protection District.


The man who died in the blaze was identified as Allen R. Jacobs who lived in the Woodcreek apartments, 11702 Woodcreek Drive, according to the McHenry County coroner's office.





Huntley firefighters were called to the two-alarm fire at the apartment building, said Flannigan.


The fire happened at the six unit, wood-frame apartment building, said Flannigan.


He said the fire began in one unit of the apartment where a man was found deceased, he said.


The fire spread to two other units of the building and about 10 people were displaced.


He said the McHenry County coroner was called to the scene, he said. He was found at the scene at 6:25 a.m., according to the coroner's office. An autopsy is pending.


While the cause of the fire is under investigation, the preliminary indication is that the fire did not appear suspicious and may have been accidentally caused, he said.


A Huntley firefighter sustained a minor injury, he said.


It took firefighters about 10 minutes to put out the main fire in the unit and another hour and 20 minutes before officials had the scene under control.


The Huntley Fire Department and the Illinois State Fire Marshall are investigating the cause and origin of the fire.


chicagobreaking@tribune.com


Twitter: @ChicagoBreaking









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Hackers target Twitter, could affect 250,000 user accounts


SAN FRANCISCO (Reuters) - Anonymous hackers attacked Twitter this week and may have gained access to passwords and other information for as many as 250,000 user accounts, the microblog revealed late on Friday.


Twitter said in a blog post that the passwords were encrypted and that it had already reset them as a "precautionary measure," and that it was in the process of notifying affected users.


The blog post noted recent revelations of large-scale cyber attacks against the New York Times and the Wall Street Journal, but unlike the two news organizations, Twitter did not provide any detail on the origin or methodology of the attacks.


"This attack was not the work of amateurs, and we do not believe it was an isolated incident," Twitter said. "The attackers were extremely sophisticated, and we believe other companies and organizations have also been recently similarly attacked."


Privately held Twitter, which has 200 million active monthly users, said it was working with government and federal law enforcement officials to track down the attackers.


The company did not specifically link the attacks to China in the blog post, in contrast to the New York Times and the Wall Street Journal, which both said the hackers originated in China.


Twitter, the social network known for its 140-character messages, could not speculate on the origin of the attacks as its investigation was ongoing, said spokesman Jim Prosser.


"There is no evidence right now that would indicate that passwords were compromised," said Prosser.


The attack is not the first time that hackers have breached Twitter's systems and gained access to Twitter user information. Twitter signed a consent decree with the Federal Trade Commission in 2010, subjecting the company to 10 years of independent privacy reviews, for failing to safeguard users' personal information.


(Reporting by Alexei Oreskovic; Editing by Gary Hill and Lisa Shumaker)



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Goodell: 'Absolutely' would let son play football


NEW ORLEANS (AP) — NFL Commissioner Roger Goodell would "absolutely" want his own child to play football.


After President Barack Obama recently said he'd "have to think long and hard" about allowing a son to take part in the sport, Goodell was asked the same question hours before Sunday's Super Bowl during an interview on CBS's "Face the Nation."


Like the president, Goodell has two daughters. The commissioner deflected the question about allowing a son to play football by noting the high incidence of concussions in girls soccer.


In an interview with The New Republic, Obama had said he loved football but worried about the long-term effects on players of the game's hard hits. Thousands of former players have sued the NFL, alleging that not enough was done to inform them about the dangers of concussions and not enough is being done today to take care of them.


Asked by Bob Schieffer on Sunday whether the league hid the risks of head injuries, Goodell said, "No."


Goodell declined to confirm that there is a proven connection between the sport and medical problems in retired players. He emphasized that the NFL is funding research to learn more about the risks and changing rules to make the game safer.


Goodell said he had no concerns that football could go the way of boxing, a sport now far less popular than in its heyday.


"I couldn't be more optimistic about it because the game of football has always evolved," the commissioner said. "Through the years, through the decades, we've made changes to our game, to make it safer, to make it more exciting, to make it a better game for the players, for the fans, and we have done that in a very calculated fashion."


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NBC News President Capus to leave network






(Reuters) – NBC News President Steve Capus will be leaving the network in the coming weeks after struggles at the unit, including lower ratings for its flagship morning TV show, “Today.”


No replacement has been named for Capus, president of NBC News since 2005, according to a company memo obtained by Reuters. In a statement, Capus said it was “now time to head in a new direction.”






Three sources close to NBC said his departure had been rumored around the halls after parent Comcast Corp reorganized the news division in July, bringing in Patricia Fili-Krushel to head the news unit’s business operations. After that change, these sources said, Capus’ departure became a matter of when, not if.


Prior to Comcast’s takeover, the three heads of NBC‘s news operations — Mark Hoffman at CNBC, Phil Griffin at MSNBC and Capus — all reported directly to Jeff Zucker, who was not only NBC’s chief executive but also well-versed in hard news.


“There was a natural flow to the news division under Zucker. They all spoke the same language,” said one of these sources. “No disrespect to Pat, but she’s not viewed as a news person.”


Indeed, both Capus and Zucker basically grew up with each other at NBC, spending about 20 years together at the network. Capus did not say what his next move would be. Zucker, the executive who promoted him seven years ago at NBC, is now the worldwide president of CNN, owned by Time Warner Inc.


The sources said it would not be a surprise if Capus eventually resurfaced in a new position under Zucker at CNN. Earlier this week, Mark Whitaker, the managing editor at CNN, announced his resignation to make room for Zucker to install his own team. Prior to his joining CNN, Whitaker worked at NBC News under both Capus and Zucker.


Fili-Krushel said in a memo to staff on Friday that until a replacement for Capus is found, NBC News will operate under an interim structure with various executives reporting to her. She will start the search for a successor in coming weeks, with Capus helping with the transition.


Two other sources said that the recent view internally has been that Antoine Sanfuentes, an executive who oversees NBC News‘ Washington bureau and the Sunday political talk program “Meet the Press,” was being groomed to replace Capus. Fili-Krushel said in her memo that Sanfuentes will report to her and serve as interim managing editor responsible for editorial decision-making.


The first three sources said they had expected Capus to announce his departure at the end of last year to coincide with the announcement that Jim Bell was leaving as executive producer of the “Today” show to assume the newly created role of full-time executive producer of the Olympics.


Ultimately, Capus decided to trigger his departure by exercising an “out” clause built into his most recent contract, according to one of the first three sources.


Capus commanded the loyalty of NBC News staff, particularly the on-air talent and producers, all of the five sources agreed. Some of the major news events he worked on included the September 11 attacks, the discovery of anthrax in the NBC newsroom, the death of Britain’s Princess Diana and the wars in Iraq and Afghanistan. His resignation came as an unexpected blow to NBC News staff, despite the apparent grooming of Sanfuentes.


Savannah Guthrie, installed by Capus as “Today” show host after the departure of Ann Curry, tweeted on Friday that Capus was “a great leader and tireless advocate for NBC News” who will be missed.


NBC News made deep job cuts in 2006 after wider layoffs at the parent company. Rivals ABC News and CBS News have also made hundreds of layoffs in the past few years.


Capus said in his memo that he “tried to shield journalists from the tough economic pressures hoping that would give each of you the running room to focus solely on a commitment to outstanding journalism.”


RECENT STRUGGLES


NBC News has been the one part of the network’s news operations to show slippage in the last year. CNBC is far and away the leading business news network, as measured in ratings. MSNBC has not only surpassed CNN to become a strong No. 2 among general cable news networks, but has also closed the gap with long-time leader Fox News, owned by News Corp.


“Pat Fili-Krushel has a strong vision of the integration that is required to make the full array of NBC programming fire on all cylinders in unison. She also understands the need to complement both the owned station and Comcast cable group goals to leverage all to best advantage,” said Magid & Associates consultant Steve Ridge.


NBC News has ranked as the leader among network news broadcasts in both the morning and evening for much of Capus’ eight-year run as president. Two of the first three sources said he deserves credit for maintaining the “Today” show as the dominant morning news program, “NBC Nightly News” as the leading evening news broadcast, and “Meet the Press” as the marquee Sunday news program. But over the last year, Capus’ fiefdom has taken a few hits, most notably at the “Today” show.


NBC News, for example, was criticized for ousting Ann Curry as “Today” co-host after only one year.


The “Today” show has been in a back-and-forth ratings war with ABC’s “Good Morning America” ever since ABC snapped NBC’s 16-year unbeaten streak last year. “NBC Nightly News” is averaging 8.76 million total viewers, ahead of “ABC World News” and “CBS Evening News.” It has seen less ratings success with the news magazine “Rock Center with Brian Williams,” which debuted in 2011 and after being bounced around the schedule, will move to Friday nights on Feb 8.


NBC News also came under fire last spring when it decided to edit a call to police from George Zimmerman, the Florida man who shot unarmed teenager Trayvon Martin. The editing made it appear that Zimmerman told police, without being prompted, that Martin was black when, in fact, the full tape revealed that the neighborhood watch captain did so only when responding to a question posed by a dispatcher.


NBC has since been sued for defamation by Zimmerman.


(Additional reporting by Mark Hosenball in Washington; Editing by Lisa Von Ahn, Andrew Hay and Matthew Lewis)


TV News Headlines – Yahoo! News





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