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November 5th, 2009

Next in M&A: the WordPress Hug?

Posted by: Quentin Webb

Maybe it's time to add a new weapon to the old M&A arsenal of poison pills, dawn raids, and white knights -- the corporate blog. You could call it the WordPress Hug.

Late on Monday, Cisco's Ned Hooper used the company's blog to insist it had offered "a very good price" for Tandberg, after some shareholders of the Norwegian videoconferencing company said the price was too low. (See his full post here.)

The "Driving Conversations" blog of General Motors Europe has also been a source of news on the long-running (and now abandoned) talks to sell Opel, hosting posts from GM's chief negotiator, John Smith. (See some of his posts on the topic here.)

So could blogging become a major channel of communication on M&A transactions? Big corporations have enthusiastically adopted it for other uses- for example, "Randy's Journal", a Boeing blog, has a following in the industry and among aeroplane enthusiasts.

But it is hard to believe this trend would be welcomed by some financial regulators -- like the UK's Takeover Panel, which banned advertising during takeover battles more than 20 years ago.

July 15th, 2009

Wednesday media highlights

Posted by: Franz Strasser

Here are some of the day’s stories about the media industry:

Recession sends Americans to the Internet (Reuters)
S. John Tilak writes: “More than two-thirds of American adults — or 88 percent of U.S. Internet users — went online for help with recession-induced personal economic issues and to gather information on national economic problems, a study released on Wednesday said.”

BBC and Government Fall Out Over Financing Plan (NYT)
“The BBC and Britain’s Labour government, which has a history of support for the “Beeb,” have fallen out over a government plan to share some of the broadcaster’s £3.6 billion in public funding with its commercial television rivals,” writes Eric Pfanner.

“Web advertising may well end up supporting big newsrooms if they can escape some of their legacy costs,” says Slate’s Jacob Weisberg. “The test I’d most like to see is of a well-financed, for-profit, web-only ‘newspaper’ with no printed version. The problem is that the leading news organizations have a stake in web-only newspapers not working because they will accelerate the decline of the large, if faltering businesses that revolve around print.”

USA Today introduces Newsdeck site for top headlines (Editors Weblogs)
“To give visitors another way to view the news, USA Today has introduced a site it calls Newsdeck that compiles the top headlines in an easy-to-read format. Users can scroll through stories in eight categories, including News, Money and Sports, with the ability to switch back and forth between the latest news and the most popular articles.,” writes Liz Webber.

Bing’s First Month A Bust (Business Insider)
Dan Frommer writes: “Microsoft’s U.S. search market share was 8.4% in June, up from 8.0% in May, according to comScore. It would have been a disaster if Bing didn’t grow at all with all that advertising and free promotion vianews coverage, so at least it’s up a little.”

In other news:

February 13th, 2009

Tweeters as editors, sources, merchants?

Posted by: Sinead Carew

In his speech at the Shorty Awards — the first unofficial Oscars for Twitter users — on Wednesday night, CNN anchor Rick Sanchez marveled at the intermingling of new and old media. Then he told the smartly dressed audience that Tweeters are “my editors, my sources, my friends, my focus group. You’re the people who matter to me more than some of the people who are supposed to matter to me.”

All this from a site where everything starts with a simple question: “What are you doing?” As the audience kept an eye on the stage while typing furiously on their cellphones, event organizer Gregory Galant told us Twitter was about much more than “where you write about what you had for lunch.”
This seemed to be confirmed by by this so-very-novice-tweeter reporter’s straw poll of attendees, who were treated to an appearance by fellow-tweeter MC Hammer.

Whatever else it is, Twitter is definitely a commercial tool as well as a social platform. Many of the 26 winners even used their tweet-sized-140-words acceptance speeches for blatant promotion of ideas, blogs businesses or causes.

Rich Tucker, known as @cruisesource on twitter, won the travel award and used his short spot to plug something called the Sofresh Social Media Cruise.
Politics winner @justin_hart promoted a politician while Scott Zagarino @athletes4acure spoke out about prostate cancer when accepting the nonprofits prize.
Martin Sargent @martinsargent, won the weird category and took a dig at the platform itself. “What’s truly weird is that by receiving the $1,000 grant that accompanies this award, I’m 1,000 times more profitable than Twitter. Thank you.” Another contendor for the weird prize, @Matman showed up at the party in an outfit to promote WellComeMat.com

Then there was the mix of attendees, many of whom paid a $60 entrance fee, besides the reporters who gave the event pretty wide coverage.
Nora Abousteit, who runs an open source sewing pattern web site burdaStyle.com, said she depends so much on Twitter for media updates that she changed her cellphone number and service after discovering twitter didn’t work well on her old phone.
Liam, a bemused 26-year-old from Brooklyn went because he is friends with the organizers. “I don’t understand twitter at all. I don’t get it,” he said. “I don’t like the idea of social interaction being boiled down to a computer.”

But Claire Chang of San Francisco-based Psolenoid saw practical uses. Chang, who is developing a twitter application, tweeted that she was going from Times Square to the awards. A reply came in time to share a car with another tweeter. At the end of the night Claire was confidently tweeting for a ride back to the city.

Vonda LePage, communications director for ad agency Deutsche Inc, dabbles with all kinds of social media. New York Times David Pogue may see twitter being “What you make it” but LePage has definite notions about what Twitter means to her - sharing information for business. But you have to be sincere or people will stop following your tweets, “if you only use it for commercial purposes, you’ll be turned off,” she said. As for the idea of telling the world you’re drinking a coffee or upset about something, LePage said, “That’s Facebook.”

(Photos of @Matman and stage screen at Shorty awards/Sinead Carew)

February 9th, 2009

Blogosphere not kindled on Kindle 2 launch

Posted by: Alexandria Sage

AMAZON-KINDLE/Resembling a larger, whiter, thinner, but not-as-sexy iPhone, the Kindle 2 got its high-profile launch on Monday by Amazon, the Seattle-based online retailer.
 
Analysts, media and gadget hounds filled New York's Morgan Library to hear Chief Executive Jeff Bezos touting the slimmer, faster new version of the e-reader that at $359 is still hardly a steal.
    
The press conference even featured an appearance from horror author Stephen King, whose novella "Ur" -- about a college instructor who orders a Kindle (no joke) to frightening consequences -- is only available on the Kindle.
    
But despite the advance hoopla -- read Reuters' preview of the Kindle launch here -- the blogosphere was surprisingly low-key about Monday's unveiling -- perhaps given leaked photos of the supposed device that could be seen on the Internet beginning last fall.
    
"Wow, even Amazon is jumping on the iPhone-killer bandwagon," said one blog, http://www.boygeniusreport.com, adding that the new Kindle is 25 percent thinner than the iPhone. Gizmodo, calling its new design a success, wrote: "It looks like Amazon got a few clues from Apple and Braun's design guidelines." The www.Techcrunch.com blog summed it up even more succinctly: "It's much less ugly."
    
Bloggers praised its thinness, more storage, better battery life, better display and faster page turning, but some still griped at its price tag and design, with one blogger saying the new Kindle is "still not pretty." 

"If I'm going to spend $370, why wouldn't I buy an iPod Touch or a Netbook and get way more functionality," asked one posting. Another referenced the ubiquitous debate in cyberspace over open devices: "Where is the universal open device that consumers really want? Limited consumers just so you can direct all sales through Amazon will not play out in the long run."
 
For an interesting read on how Amazon is currently cornering an underserved market niche, but how competition from tablet PCs could be an issue in the future, read here.    
    
Few bloggers commented on the new "read-to-me" feature, which allows users to hear their content read by either a female or male voice -- although one blog said it "should be fun." That may steal away some sales of books on tape, but Kindle said the feature was still experimental.
    
Amazon won't disclose how many advance orders for the Kindle 2 it expects -- nor how many of the first version it sold. And still a mystery is whether or not the Kindle is cannibalizing sales from the company, whose highest margin business is physical book sales, according to Bernstein Research's Jeffrey Lindsay.
 
Bezos said last month for every physical book an Amazon customer with a Kindle buys, he or she buys 1.6 to 1.7 Kindle books.

(Photo of Bezos/Reuters)

February 5th, 2009

Writing for your life at The New York Times

Posted by: Robert MacMillan

Who can blame a print reporter for wanting to get up to speed in the new media world, particularly at The New York Times? With ad revenue down and the future in doubt, it might seem worthwhile for reporters to keep themselves marketable. The union that represents the NYT’s reporters approves, but it suspects that some are making too many concessions. Here are excerpts from the memo:

The financial troubles at The New York Times have many Guild members looking over their shoulders wondering when the next round of layoffs may occur…As a result, many of our members are understandably operating in survival mode and scurrying to find a niche.

In this economic climate, the Guild more than ever encourages members to make themselves as valuable as possible. Embrace the web, which undoubtedly holds the key to our future. …

The Guild has learned that some employees are blogging on their own time, working through the wee hours of the night, with no additional compensation. Some are receiving compensation, but only a small portion of what they are owed. Others are simply getting to leave a couple hours early in exchange for their work on the web. As a result of this “Let’s-Make-a-Deal” environment, some employees are taken care of and others are taken advantage of, which is not what being part of a union is all about. …

Management told the Guild during recent negotiations that they needed more flexibility in the workplace if the company is to survive. The Guild understands that it is in our best interest for the paper to thrive and not be so set in our ways. But at this point, it appears as if our members are the only ones who are being flexible and are giving their services away in the process. If overtime budgets are tight, bloggers should be given time during their normal shift to complete an assignment rather than be expected to do it pro bono or play, “Let’s-Make-a-Deal” with their livelihood. The time has come for management to stop preying on our members’ fear and vulnerability, pay our members what they are worth and schedule them appropriately.

When will those layoffs happen? We’re depending on you, New York Times reporters, to tell us. Tips always welcome.

October 23rd, 2008

Huffington Post top indy political blog for traffic

Posted by: Peter Henderson

obamamccain.jpgPolitical Web sites and blogs compete for scoops and eyeballs with an intensity rivaling the presidential candidates, so the Internet traffic figures released Wednesday by industry tracker comScore are likely to provide some bragging rights.

The winner is… HuffingtonPost.com  – founded by commentator Arianna Huffington, the site led among stand-alone political blogs and news sites with 4.5 million visitors in September, comScore said. That was way above the site’s tally of 792,000 in the same month last year.

It was followed by Politico.com with 2.4 million visitors and DrudgeReport.com with 2.1 million. The biggest gainer among the top five was realclearpoltics.com, a clearinghouse for commentary and polls that has become a must-read for the politically inclined. Its traffic surged almost six-fold from last year to 1.1 million visitors.

One of the few sites to see its traffic decline was FreeRepublic.com, a conservative-leaning site, which was the fifth most-visited destination but saw its traffic dip slightly to 987,000 visitors. Do the traffic numbers offer a larger comment about the ardor or optimism of either Democrats or Republicans in this election cycle? That’s a debate that’s probably better left to the pundits.

(reporting by Gabriel Madway)

April 14th, 2008

Gawker dumps three blogs in advertising winter

Posted by: Michele Gershberg

ship.jpgNick Denton’s Gawker Media is parting with three of its blogs: political gossip site Wonkette, travel site Gridskipper and music site Idolator, dumping ballast in a stormy ad market.    
 
Denton put it simply in a memo to employees, first seen on Silicon Alley Insider:    

Why these three sites? To be blunt: they each had their editorial successes; but someone else will have better luck selling the advertising than we did. … it would be naive to think that we can merely power through an advertising recession. We need to concentrate our energies … on the sites with the greatest potential for audience and advertising. 
    

Here’s the details:
* Buzznet, a music social network, is buying Idolator after snapping up its main rival Stereogum.

* Gridskipper is being taken over by urban info site Curbed. Gawker holds a stake.

* Wonkette, founded by Ana Marie Cox, will be spun off to managing editor Ken Layne and become part of the Blogads network of political sites like Daily Kos. 

Financial terms weren’t released.
    
That leaves Gawker with 12 sites, including its namesake media blog, Gizmodo, Valleywag and Defamer.

(Photo: Reuters)

March 26th, 2008

Not all bloggers are poor

Posted by: Kenneth Li

cash.jpgBloggers, don’t quit your day jobs — unless you’re Gawker’s Nick Denton or Perez Hilton. 24/7 Wall St’s Douglas A. McIntyre takes a stab at guesstimating blog valuations, looking at unique visitors, page views, ad rates and profit margins, among other factors.

McIntyre is the first to admit it’s hardly an exact science: “In short, the task of valuing the largest blogs is impossible. That makes it much more interesting than writing about the P/E at General Electric.”

A handful of the top blogs:

  • Gawker: $150 million
  • MacRumors: $85 million
  • Huffington Post: $70 million
  • PerezHilton: $48 million
  • TechCrunch: $36 million
  • ArsTechnica: $15 milion
  • Drudge Report: $10 million
  • Mashable: $10 million
  • GigaOm: $8.4 million
  • Boing Boing: $8 million
  • Silicon Alley Insider: $5.4 million
  • ReadWriteWeb: $5 million
  • Paidcontent.org: $3.5 million