Departing CEOs, is this the trend for 2007?

Today, Siemens and Orange announced that both of the CEOs have resigned from their respective companies. Two very major CEOs within the Telecom space leaving so quickly on the same day. Could be a coincidence or could it be the trend for 2007.

I think this will be the trend for 2007. Last year, I proclaimed 2006 to be the year of M&A. If we use the Skype acquisition as a measure if I was right or wrong, I didn't do too bad. Now, my gutt is telling me that CEO departures of the last 24 hours shall be the only things more active than the declining value of the stocks that their companies once represented.

Yesterday, April 25th, 2007, the DOW broke 13,000 and the trend in the Stock markets across the globe is nothing but up. Biggest news came from Amazon.com, there stock went up 25% in one day! And yet, within the Telecom sector two major CEOs resign without warning.

This "getting-out-of-Dodge" display of corporate business will be the trend within Telecom for 2007. If you need a prediction of another major CEO departing, my guess is that Telenor CEO will leave before the end of the year, or close to it.

Telenor's stock has peaked, it is in trouble with the current Noble Prize winner for Peace (how can anyone argue with this man!), and they have a new Chariman of the Board who has no Telecom experience and when he sees Telenor's stock plummeting, he will ask Mr. Baksaas to leave giving him a "golden-parachute" and my prediction will come to fruition.

The future of Telecom lies in companies like Amazon.com and Google who see Telecom as a web service, not as an industry vertical (anymore).

Tags: Siemens, Orange, Telecom, resignation, DOW, amazon, Telenor, Google