News You Need to Know 2

Whitman Eyes a Run

So what will they call her—The Auctionator? It sure looks as if former eBay CEO Meg Whitman will make a bid to succeed Arnold Schwarzenegger, who can't run again, as California's governor. According to a source close to Whitman, who left eBay (EBAY) earlier this year as the online marketplace struggled, she will make a decision on the 2010 race in four to six weeks. In preparation, she resigned on Jan. 6 from the boards of eBay, Procter & Gamble (PG), and DreamWorks Animation (DWA). Whitman got a taste for politics when she worked on the Presidential campaigns of former boss Mitt Romney and John McCain.

—Edited by Harry Maurer & Cristinal Linblad

Red Ink at Time Warner

Last year was ugly for a lot of companies, including Time Warner (TWX). But it got a whole lot uglier for the media giant on Jan. 7, when it said it would post a net loss for 2008 instead of previously projected profits. It added that it would likely take a $25 billion impairment charge for the falling value of some businesses, including cable and AOL (TWX). Reasons for the red ink: a legal judgment against the Turner Broadcasting unit; a charge related to a lessee declaring bankruptcy; and building up reserves for potential losses from customers who have gone under.

—Edited by Harry Maurer & Cristinal Linblad

The CEO Carousel

More bad news from the chicken coop: A month after Pilgrim's Pride (PGPDQ) filed for bankruptcy, the CEO of rival Tyson Foods (TSN) quit on Jan. 5. Dick Bond's exit came as Tyson old-timers such as Don Tyson, son of the founder, and his ally Leland Tollett have recently reasserted authority over the nation's No. 2 chicken processor, whose stock has dropped by half since April as the meat industry suffers its most rotten stretch in decades. Tollett, 71, was named interim CEO. Another corner office changed hands the same day as beleaguered bookseller Borders Group (BGP) replaced George Jones with Ron Marshall, 54.

—Edited by Harry Maurer & Cristinal Linblad

IndyMac's New Owners

It's a star-studded lineup: hedge fund heavy-hitters George Soros and John Paulson, plus computer king Michael Dell. They're on the team of investors who agreed on Jan. 2 to buy failed IndyMac bank from the feds. The buyers will pony up $1.3 billion in new capital for a bank with 33 branches and $16 billion in loans.The FDIC will absorb losses above a certain level, and the group will continue the process of tweaking mortgages for 46,000 IndyMac borrowers behind on their payments.

—Edited by Harry Maurer & Cristinal Linblad

Death of a Billionaire

As the German government squabbles over a stimulus package that should bring more money into consumers' pockets, the credit crunch claimed a prominent victim. Adolf Merckle, 74, estimated to be the fifth-richest man in Germany, killed himself on Jan. 5 by throwing himself under a train. Merckle's holding company, VEM, which encompassed outfits such as generic drugmaker Ratiopharm and HeidelbergCement, was in trouble after Merckle lost hundreds of million of euros speculating on VW shares, while the downturn caused HeidelbergCement shares to plunge. For months, Merckle had been pressed by banks to find bridge loans or sell his core businesses.

—Edited by Harry Maurer & Cristinal Linblad