The future of newspapers via Sam Zell
Sam Zell popped over to CNBC’s Squawk Box on Tuesday to chat about real estate and investment opportunities in the U.S. and abroad. This being MediaFile, we were most interested in what Zell had to say about Tribune Co., the company that he helms and that is currently slogging its way through a bankruptcy with warring creditors.
Zell didn’t reveal a whole lot when asked about the Chapter 11 process but he did share his thoughts on the future of newspapers and that future involves… PDFs! Zell is pretty sweet on the idea that home delivery will just go away something the Detroit Free Press and Detroit News semi-embraced more than a year ago. Instead newspaper subscribers will be able to get electronic versions of the newspapers.
Here’s Zell on what he believes is in store for newspapers: ”Going forward it’s going to require all kinds of different approaches, including, probably the most significant, the elimination of home delivery and the replacement of it with PDFs. The iPad is the real example of almost replicating a newspaper on an instrument. I think that is only the beginning of how that is all going to evolve.”
Rupert Murdoch on Obama and moose
Ever wonder what News Corp. Chairman Rupert Murdoch thinks about the direction this country is going and how President Obama is handling his job? If you were on hand during the opening panel at The New York Forum last night in mid-town Manhattan, you got an earful.
Some background: The New York Forum is newly formed meeting of business, economic and other luminary minds to address challenges facing the global economy. The Forum plans to present the ideas developed during the conference to the G-20 Summit taking place this Saturday.
Murdoch spoke on a panel made up of a grab-bag of high level executives — Cathie Black, president of Hearst Magazines, real estate magnate Jerry Speyer and Philippe Camus, chairman of Alcatel-Lucent. CNBC’s Maria Bartiromo was on hand to moderate.
Surprisingly, very little was said about the state of media. Oh sure, Murdoch said he believes that in 5 years, hundreds of millions will own iPad-like devices yet physical newspapers will be with us for “decades to come.”
After those brief remarks though, the direction of the discussion turned surreal. Maybe it had to do with Bartiromo, who pitched unrelated questions to her panel about the economy, the BP oil spill and immigration. Or maybe it was just the overall mission of Forum.
Whatever the reason, if you were curious about, say, Murdoch’s thoughts regarding his attempt to purchase outright BSkyB , you would be out luck. We didn’t even get boasting about The Wall Street Journal.
Instead we learned Murdoch thinks that upstate New York is night to New York City’s day. Specifically: “West of the Hudson, it’s like a third-world country.”
UPDATE: Everybody loves Steve Burke, even Warren Buffett
When news of Comcast’s bid for NBC Universal broke on Sept 30 most of the spotlight focused on Comcast chairman and CEO Brian Roberts.
But as the weeks dragged on, some of that spotlight began to shine on his number 2, Stephen Burke, chief operating officer and a former senior Disney executive.
As we now know since the deal was confirmed on Dec 3, NBC Universal’s top brass will report to Burke, making him (once you count the 24 million subscribers he also oversees) one of the most powerful men in TV.
Now, as if he won’t be busy enough taking drape measurements at 30 Rock, Burke has added another feather to his cap. Warren Buffett’s Berkshire Hathaway said this morning that he will join the board.
While it may be sign that Buffett is opening up his board to outsiders, it’s also a sign that Burke has become a force to be reckoned with in the corporate world. He already serves on the board of JP Morgan, which as you might recall had a lot to do with engineering the NBC deal — JPMorgan was the banker for NBC parent General Electric.
How powerful is Burke? Well even his minions-to-be can’t get enough of him. A CNBC reporter said this morning in response to the news of his Berkshire appointment, that Burke is “a very handsome man.”
UPDATE: Since we issued our original post, Comcast put out a regulatory filing stating Burke’s contract has been extended for another five years to Dec 2014. The new contract “acknowledges his substantially increased responsibilities.”
I watch fox tv station all the time. My favorite news, sports, and programs are on this station.
I am asking you to keep it on.
Please keep it on.
Media, tech moguls meet in New York (You are NOT invited)
Media and technology executives are meeting Wednesday and Thursday in New York City at a conference hosted by private equity firm Quadrangle. Note the word private.
When they meet at the Plaza, they will talk about a ton of different things that their customers, their investors and other readers want to know. I have to apologize for them because they’re not letting in any riff-raff. And that includes reporters who get paid to spend all day figuring out how these people decide what kind of entertainment you want, what kind of technology you pay them for and what deals they pursue with the money that you give them when you buy their stock. This event always excludes press, but that’s no reason not to highlight what you probably are missing because of this. After all, who wants to wait for the 8-K filing?
Some press will be allowed, but it will be an assortment of celebrity journalists who will moderate panels and, according to Peter Kafka, author of “MediaMemo” at News Corp’s AllThingsD blog, will not write about the event (I’m talking about Maria Bartiromo and David Faber of CNBC, The New Yorker’s Ken Auletta, etc).
Peter wrote two posts about this, here and here. He also issued me a challenge to sneak into the conference, but horror of horrors, I’m on a deadline that I can’t shirk any longer. So consider this an invitation from me to you to go to the Plaza and catch these guys on the way in and out of the building. It’s a fun way to spend the day, and maybe you’ll learn something interesting.
Here is the agenda, courtesy of Peter Kafka. Below that is a list of speakers. Outrage breeds corrections: I have to amend the record: The list I had posted here of topics is last year’s agenda. My mistake. The list of speakers appearing THIS year still appears below.
2009 SPEAKERS EMILIO AZCÁRRAGA President, Board of Directors and CEO, Grupo Televisa DENNIS CROWLEY Co-Founder, foursquare BARRY DILLER Chairman and CEO, IAC; Chairman, Expedia, Inc. and Ticketmaster Entertainment, Inc. BRIAN DUNN CEO, Best Buy CHARLES FORMAN Founder, OMGPOP REED HASTINGS Founder, Chairman and CEO, Netflix REID HOFFMAN Executive Chairman and Founder, LinkedIn Corporation CHAD HURLEY CEO and Co-Founder, YouTube JEFF IMMELT Chairman and CEO, GE PAUL JACOBS Chairman and CEO, Qualcomm Incorporated OLLI-PEKKA KALLASVUO President and CEO, Nokia JASON KILAR CEO, Hulu LESLIE MOONVES President and CEO, CBS Corporation ANNE MULCAHY Chairman, Xerox Corporation JAMES MURDOCH Chairman and Chief Executive, Europe & Asia, News Corporation BRIAN PHILLIPS CEO and Co-Founder, Thread DAN PORTER CEO, OMGPOP BRIAN ROBERTS Chairman and CEO, Comcast Corporation PAUL SAGAN President and CEO, Akamai ERIC SCHMIDT Chairman and CEO, Google IVAN SEIDENBERG Chairman and CEO, Verizon Communications BIZ STONE Co-Founder, Twitter HOWARD STRINGER Chairman, CEO and President, Sony Corporation BEN VERWAAYEN CEO, Alcatel-Lucent DAVID ZASLAV President and CEO, Discovery Communications
MODERATORS MARC ANDREESSEN General Partner, Andreessen Horowitz KEN AULETTA Author and Writer, “Annals of Communications”, The New Yorker MARIA BARTIROMO Anchor, Closing Bell; Host & Managing Editor, Wall Street Journal Report, CNBC JAMES CITRIN Co-Leader, Board & CEO Practice, North America, Spencer Stuart DAVID FABER Anchor, Reporter, CNBC MICHAEL HUBER Co-President and Managing Principal, Quadrangle Group BECKY QUICK Co-Anchor, Squawk Box, CNBC GEOFFREY SANDS Director & Leader, Global Media, Entertainment & Information Practice, McKinsey & Co. JOSHUA L. STEINER Co-President and Managing Principal, Quadrangle Group GEORGE STEPHANOPOULOS Anchor, This Week; Chief Washington Correspondent, ABC News
Haha. I absolutely loved the tone and tenor of this write-up. Says a lot! (And oh, why did Reuters have to allow blogs and columns after I left–conspiracy!)Also loved the Michael Moore comment. Last journo left standing?;-)
Martha Stewart KA-Bars Kmart
After seeing Martha Stewart on CNBC this morning, I was surprised to find that she doesn’t sell a Martha Stewart-branded KA-Bar knife because she seems like she knows how to use one.
Stewart appeared on TV to talk about the company’s new merchandising agreement with Home Depot. The hardware big-box retailer will offer a line of products sold under the Martha Stewart brand. Before they got too far into the interview, they talked about a similar program with discount retailer Kmart that ends in January 2010 — the same time that the Home Depot deal begins.
Here is an excerpt:
The new [Kmart] ownership really has let our line deteriorate. It’s been kind of ripped off, I would say, and really diminished, and the quality is really not what I am proud of. Have you been into a Kmart lately? it’s not the nicest place to shop. …
The stores are not what they were. The shopping experience is not what it was. The products are not there that people go in for. And it’s not a good situation. And as a designer-supplier, I have been extremely disappointed.
CNBC reporter Becky Quick didn’t hide her agreement:
I’ve been in a Kmart recently too and I know exactly what you’re talking about. It’s not only that the quality of the stores has dropped, it’s that it’s hard to find sales people to help you in some of these stores.
Alright First off martha wanted more money out of kmart, Kmart was’nt planing on renewing her contract if she was gonna ask for more money. Anyways at my store the Jacyln smith Sells alot more products and has for there not being many associates blame it on corp they don’t give money to the stores and they don’t give enough money for the management to make schedules that acturally have people in them. At my store we have 1 cashier every night 1 stock guy and maybe 2 girls becuase corporate is too cheap to give us a bigger budget and has for the stores being messy the associates i work with do a great job trying to maintain a clean and welcoming enviroment but there is only so much 30 employee can do though out a week
from Shop Talk:
Howard Schultz wakes up and smells the media
Perhaps he woke up one day and smelled his own coffee shops struggling in the weak economy. So, Starbucks Corp Chief Executive Howard Schultz is waking up to a fresh brew by percolating new business in the media world.
Starbucks has become the official naming sponsor of CNBC's "Morning Joe" television show. The move is a throwback to the 1950s, when television programs were underwritten by manufacturers ranging from soap to cigarettes, and it comes as traditional advertising dollars are shrinking for publishers, television networks and other ad-reliant businesses.
Schultz, who has made his own headlines over the years, also is an investor in TheWrap.com, a celebrity news blog based in Los Angeles, through Maveron, a venture capital firm he co-founded with Dan Levitan.
Maveron's other investments include restaurant operators Pinkberry and Potbelly Sandwich Works as well as online names like eBay and drugstore.com.
(Photo: Reuters/Robert Sorbo)
from DealZone:
Stress-Test Expertise
It seemed only a bit odd that media star Arianna Huffington was the guest host on CNBC the day the all-important stress test results were due. Not to play down her credentials in media or commentary circles, but where were the celebrated bank analysts, the corporate chieftains and the investment gurus who so routinely enjoy a dose of the limelight on America's Business Channel?
Wasn't this the perfect day for a newsmaker rather than a news talker? The Huffington Post founder has been a good reality check on market cheerleaders who live on CNBC, but on Stress-Test Thursday, the less-than-casual viewer expects insiders with insight. It tasted like something strange and exotic had made its way into the DealZone coffee machine.
Then disgraced former New York Governor and Attorney General Eliot Spitzer joined the fray, and the slightly odd became surreal. Spitzer, who casually noted he was invited to the show (hint, hint), gave a spirited view from the nosebleed seats, far back from the federal policymakers' bench.
Forget all this stress test stuff -- what about Spitzer's attempt at resurrection? Anchor Joe Kernen asked whether Spitzer the AG would have prosecuted Spitzer the governor and Spitzer the guest legal expert answered no, arguing that issues of judgment are more important than issues of law.
This should be equally true for the banks, Spitzer said. But the banks' transgressions were far more damaging to many more people than Spitzer's own. It's hard to believe moral suasion and limiting access to cheap funds would have been enough to persuade greedy bankers to act more responsibly. Certainly, shareholders would not have rewarded them for behaving better while others were making a killing selling toxic investments.
DealZone commends CNBC's producers and guest bookers for creative thinking. While the stress test results are not due until late this afternoon, so much has been leaked already that the minutiae still to come will probably numb the minds of even the hardiest financial news junkies. With no news to break, the Huffington/Spitzer show turned out to be refreshingly watchable. Indeed, who understands a stress test better than Eliot Spitzer?
Deals of the Day:
CNBC=Cranky Nasty Business Correspondent
Rick Santelli’s extended tryout process to join the more vitriolic commentary-mongers at Fox News continues. Santelli already raised eyebrows and network blood pressure at CNBC when he aired his “tea party” comments on live TV, raising questions among media obsessives about whether he was in the tank for the Republican Party.
Today’s incident was tamer in the sense that he only accused one of his colleagues, senior economics reporter Steve Liesman, of asking stupid questions. That’s not as big an insult to a civilian as it is to a journalist, who hopes to get paid for asking smart questions. (And someone with Liesman’s extensive business journalism pedigree probably asks fewer stupid questions than most.)
The background: Six of the CNBC gang were on TV discussing whether Federal Reserve Chairman Ben Bernanke and ex-Treasury Secretary Henry Paulson pressured Bank of America CEO Kenneth Lewis to keep quiet about losses at Merrill Lynch when Bank of America was also under pressure from the government to buy Merrill. New York Attorney General Andrew Cuomo said last month that Bernanke and Paulson threatened Lewis with losing his job if he didn’t push the acquisition through to, essentially, save the U.S. and world financial systems.
One CNBC reporter, Dennis Kneale, wondered aloud if it would be illegal for, say, a lawyer to recommend to Lewis that he violate “Reg FD” disclosure laws that would more or less deceive Bank of America’s shareholders into accepting the deal, knowing that if they were aware of Merrill’s troubled condition, they would oppose it with their very lives.
Then this happened (Beware: Everyone was speaking over everyone else, so we might have missed a word or two here and there):
Liesman: Ask the question in a more compelling way: ‘I want you to save the world and not disclose.’
Santelli: Come on, Steve! Are we going to come up with excuses to break the rules? To break the law? You sound like Richard Nixon! Who did you vote for, Steve?
I’m a dyed-in-the-wool Democrat, but when Rick comes on in the morning from the pits, I hush everybody. He speaks real wisdom and in a very entertaining fashion. Maybe he should tone it down for reasons of self-preservation, but his “emperor-has-no-clothes” attitude is totally on-point. One of the real gems on business b’casting. I hope CNBC realizes that.
Did the watchdog forget to bark?
The opening panel at the Society of American Business Editors and Writers annual meet in Denver addressed an interesting question: Did 9,000 business journalists blow it when it came to ringing the alarm bells on the financial meltdown?
The five SABEW panelists — The New York Times’ business editor Larry Ingrassia, Columbia Journalism Review critic and former Wall Street Journal reporter Dean Starkman, personal finance columnist Jane Bryant Quinn, Emmy-winning former ABC News investigative reporter Allan Dodds Frank and Greg Miller, a professor at the University of Michigan — agreed that the financial press could have done more. Newspapers, wire services, magazines and television stations could have been more aggressive, and they could have taken more pains to explain why complex things like mortgage-backed securities might matter to the average reader.
But journalists can hardly be accused of “blowing it” when even doomsday pundits like Bob Shiller and Nouriel Roubini could predict only parts of the nightmare scenario that is unfolding in the U.S. economy right now, the panelists said.
CJR’s Starkman, who’s just completed a “deep dive” into the news coverage leading up to the financial crisis, said his report, which will be up for public consumption next month, found that the top journalism outlets didn’t do a good enough job of signalling that the tiny sparks in the housing and securities markets could flame up into a giant financial blaze.
“If the question is, did the business press provide adequate warnings to the public about the crisis, the answer is negative,” Starkman said. His 6,400-word report, which surveyed scores of articles in publications like the NYT, WSJ, Forbes, Fortune and others between January 2000 and June 2007, concludes that the investigative reporting started out strong but then downshifted to “good, but not sufficient,” as reporters wrote about the housing bubble and defective mortgage products, but failed to focus on the lenders.
The Times’ Ingrassia took issue with Starkman’s as-yet-unreleased report, rattling off a long list of stories his paper had done in the early years about ”predatory home equity loans (that) were being diced into mortgage-backed securities,” out-of-control mortgage markets and even excess executive pay. “I think the record shows that the press was there in laying the groundwork and ringing the alarm bell.” But, Ingrassia added, there was little more reporters could do if regulators didn’t heed the news and readers didn’t “seem receptive” to it.
Would politicians have done something to avert the crisis if people had cared more and pressed their legislators for better regulation? Which begs a further question — did reporters fail to write stories in a way that would make people sit up and take notice?
This article re-builds some of my trust in the media, obviously media is wading through an ocean of politics within and in their information sources. Post event analysis is something I never expected from a group that demonstrates “GLITZ N GLAMOUR” as their esoteric mantra.It’s also obvious they frequently go “out of their way” to help keep the new investors in the dark about how the pro traders harvest (predation) the funds of the new traders.Many of the dark spots on the media dalmation became glaringly obvious with their relationship with “W”.Public trust may never get back to where it use to be in the 40-50s due to the greed that exists in all of us.
Good news for Madison Ave: WPP will only be slightly down
Slightly down is the new up.
At least judging from the reception that advertising giant WPP received today after it predicted like-for-like revenue would drop 2 percent this year.
Shares were up about 5 percent after the report from WPP, the last of the big three advertising holdings to post quarterly results. For all the worry about the advertising recession — and no doubt advertising is bad right now — WPP, Omnicom and Interpublic also showed some bright spots in their numbers.
WPP, in fact, said the in the ”long-term” the outlook for the advertising and marketing services business “appears favorable.” “Long-term” isn’t a particularly well-defined timeframe, but nonetheless those are pretty upbeat comments coming from an industry that has seen auto, retail and financial services spending drop like a stone.
“The fact they’re saying revenues in 2009 will be down 2% is relatively reassuring given the current climate,” RBS analyst Justin Diddams told the Wall Street Journal.
Keep an eye on:
