MEDIA NEWS & RESOURCES	HOME · ABOUT · CONTACT · PRESS · LEGAL

JOBS PUBLICATIONS BOOKS ORGANIZATIONS NEWS RESOURCES INTERVIEWS ONE QUESTION PERSON OF THE YEAR WE WANT MEDIA SEARCH WWW SEARCH SITE

Media Companies Recent Headlines Liberty Chief Malone to Pay $1.4M Penalty Reuters Cable television pioneer John Malone will pay a $1.4 million fine, after the U.S. Justice Department says the Liberty Media chief failed to make required disclosures when he bought Discovery voting securities in 2005 and then bought more shares in 2008 during a waiting period. Media Stocks Sink; Growth Seen as Unlikely Hollywood Reporter Big-media stocks such as CBS and News Corp. are taking a tumble amid broader declines driven by renewed economic concerns and doubts that the recent rally will continue. Earlier: News Corp.'s New York Post reports that media stocks "suddenly look like a good bet." News Corp to Reshape Interactive Division AllThingsD Mike Angus, EVP and general counsel of MySpace parent Fox Interactive Media, is departing for another job within New Corp., as new digital head Jon Miller continues to reshape the division. Fox Interactive Media may change its name to simply "Digital Media Group." Time Warner Invests in Tumri Online Ad Firm Silicon Valley Business Tumri, a tech firm that focuses on dynamic online display advertising, is raising more than $15 million in new capital, including some $10 million from Time Warner. "We believe Tumri is a clear leader in this exciting space," says Time Warner Investments exec Rachel Lam. Media Suddenly 'Looks Like a Good Bet' New York Post Media stocks are starting to see signs of a comeback. Analysts are optimistic about summer movie blockbusters and the fall television season. Plus, advertising has reached bare-bone levels and can only start rising. The industry is "coming up from a 'going-out-of-business' basis." Time Warner Pressures 'Harry' to Perform Los Angeles Times "Harry Potter and the Half-Blood Prince," the sixth film in the Warner Bros. series, is expected to be a big blockbuster in theaters this summer. However, the slump in DVD sales is undermining Hollywood's business model -- and putting more pressure on franchises to succeed. Sony Hands More Power to Howard Stringer TheWrap Sony shareholders are approving a new management structure that puts more power in the hands of chairman and CEO Howard Stringer, expanding his role to include president. Stringer will lead a team to try to unite Sony's large electronic, digital and film businesses. Viacom Studio Ousts Top Production Execs DHD / NYP Top production execs John Lesher and Brad Weston are being ousted in a shakeup at Paramount Pictures. Lesher drew notice for "looking whacked out" during screenings. Also: Viacom is facing pressure to sell Paramount. "We hear talk of something going on," says one investor. Diller, Springsteen in Concert-Ticket Clash New York Post Barry Diller is blasting Bruce Springsteen for playing a role in a concert-ticket flap that put his Ticketmaster in the spotlight as the company tries to win U.S. regulatory approval to merge with Live Nation. Springsteen "held back" a huge block of tickets, Diller says. Apple Chief Steve Jobs Has Liver Transplant Wall Street Journal Steve Jobs, who has been on medical leave from Apple since January, received a liver transplant about two months ago. The CEO is expected to return to work later this month, though he may work part-time initially. COO Tim Cook is expected to take "a more encompassing role." 'Future of Media' Eyed in Panel Discussions Folio Recent panel discussions on the "Future of Media" attempt to answer the question: How do we engage audiences online and create sustainable revenue models? Among the concepts to walk away with: "Media companies need to rethink their roles and make hard choices." Internet Exec Wins Senate Panel OK for FCC Reuters The nomination of Julius Genachowski to become the next chairman of the U.S. Federal Communications Commission is taking a major step forward after the Senate Commerce Committee voted overwhelmingly in his favor. The full Senate will next consider his nomination. Viacom's Redstone Makes Up with Tom Cruise Variety Tom Cruise is signing up to do "Mission: Impossible IV" for Viacom's Paramount Pictures. Cruise's return to Paramount is surprising considering his "shockingly offensive" termination by Viacom chief Sumner Redstone in 2006. Redstone now describes Cruise as "a good friend." Media Mergers Seen Few and Far Between Reuters Bankers and financiers say they don't expect much takeover activity in the media sector until at least next year, especially given the shaky cashflows of many companies in the industry. Despite apparent bargain valuations, "there aren't many signs of M&A coming back." Media Industry All Atwitter Over 'Tweets' Boston Herald Twitter is providing the media with a plethora of news tips and insight, from the Hudson River plane crash to the disputed presidential election in Iran. According to one observer: "A lot of what we know, we know because of what's going on on these social networks." Media Industry Parody Videos Going Viral iMedia Connection The media biz is ripe for parody nowadays. And no matter what place one occupies in the media and advertising ecosystem -- media sales side, agency side or social media "guru" -- there is undoubtedly an online video for everyone. Some clips are described as "definitely NSFW." Disney Museum to Focus on Man Behind Brand Reuters Walt Disney is a global brand with film studios and theme parks bearing his name, and now his family is unveiling a museum to tell the story of the pioneer they say has been lost behind the trademark. The Walt Disney Family Museum plans to open Oct. 1 in San Francisco. News Corp Mulls Break-Up of Fox Interactive Business Insider News Corp. is considering dissolving its Fox Interactive Media operation. A spokesperson says that the parent company is "examining FIM and its role as a corporate umbrella" for digital businesses. Also, another round of staff cuts is expected at FIM's MySpace. Disney to Offer Its Own Laptop PC for Kids USA Today Disney is teaming up with Taiwanese computer maker Asus on a Disney-branded netbook for kids 6 to 12. The $350 laptop computer will come with parental control options, and desktops with customizable themes built around Disney brands like "Cars" and "Hannah Montana." Liberty Media Expected to Sell Off DirecTV Barron's Satellite-television outfit DirecTV eventually will be acquired either by AT&T or Verizon, according to Pali Research analyst Richard Greenfield. Owner John Malone is an investor and not an operator, he says. It is "increasingly hard to imagine DirecTV remaining a stand-alone company." U.S. FCC Nominee: Consumers Are Top Priority Reuters The U.S. Federal Communications Commission will focus on national broadband service under the Obama administration, says chairman-designate Julius Genachowski. Media is changing "dramatically." Lawmakers are expected to OK his nomination this week. Britain Aims to Become World's Digital Capital Times of London Britain plans to become the world's "digital capital" by building leading-edge broadband and media infrastructure to cement its role as a "global economic powerhouse," says prime minister Gordon Brown. "Britain is going to lead the world." The Internet has become "as vital as water and gas." PwC: Media Growth in Video Games, Not Ads Financial Times Advertising is set for a prolonged slump, says PwC's new media outlook report. The downturn will accelerate the move to digital, and the newspaper industry will "fare worse." Growth in media over the next five years will be in video games, television subscriptions, film and Internet access. Virgin, Universal Fight Piracy with Downloads InformationWeek Universal Music plans to offer its catalog on Virgin Media's new download service in return for the U.K. broadband provider agreeing to suspend service to people who download tunes illegally. The service will enable customers to download "unlimited" tunes for a monthly fee. NBC Universal Names Intellectual Property Chief Hollywood Reporter NBC Universal is naming Cory Shields to the new post of executive VP global policy strategies and alliances. Shields, formerly executive VP communications, reports to NBCU CEO Jeff Zucker. "The lifeblood of a media company is its intellectual property," Zucker says. Viacom's Paramount Could Merge, Investor Says Reuters Viacom's Paramount Pictures could merge with Sony Pictures, Universal Studios or another movie studio amid a wave of consolidation in the industry as owners seek to cut costs, according to veteran investor Mario Gabelli. "We hear talk of something going on." Murdoch 'Didn't Know What to Do' with MySpace Crain's New York Rupert Murdoch paid just $580 million for MySpace in 2005. Now, MySpace is losing traffic and layoffs are rumored. Some observers say that while Murdoch had the vision to grab MySpace, he didn't know what to do with it. "It may be that Rupert is ultimately a newspaper guy." Murdoch Blamed for Piracy of News Corp Movie New York Daily News News Corp. fired FoxNews.com columnist Roger Friedman in April after he wrote about watching a pirated copy of "X-Men Origins: Wolverine." Friedman is expected to charge in a lawsuit that the movie's leak can be traced to chief Rupert Murdoch, who wanted to see a copy. Copyright Owners Say Piracy Can't Be Stopped Ars Technica Copyright owners from around the world gathering in Washington, D.C., for the second World Copyright Summit admit that Internet piracy can't be stopped. Still, that doesn't mean that there is no point in trying: "Can you keep it to a point where it won't destroy you?" Media Chiefs See Ad Biz Bottom; Data Doesn't TheStreet.com The advertising recession continues apace, according to new data from Nielsen and TNS Media. But media bosses are striving to say otherwise. The ad market is "stabilizing," says CBS chief Les Moonves. The goal of the media chieftains appears to be "amelioration." Media Business Recovery Isn't Expected Soon Reuters U.S. advertising spending in the first three months of this year crashed 14%, according to TNS Media Intelligence, the biggest drop since 2000 when the industry researcher began keeping records. The figure suggests that a recovery in the media business may still be some time off. Diller: Internet Content Will See More Fees CNET IAC/InterActiveCorp chief Barry Diller agrees with Rupert Murdoch on the notion that more pay walls should be erected around Internet content. "The Internet is passing from its free phase into a paid system," he says. "The iPhone is a great example of what's going to happen." Consumers Want More Free Media, Study Says Mediaweek.co.uk More than a quarter of consumers plan to reduce or cancel their pay-television subscriptions, according to research by The7Stars. Some 46% say they will stop buying their daily newspaper if its price increases. Consumers are "more motivated towards free media." Scripps Network Seeks a Buyer for uSwitch Cincinnati Enquirer Scripps Networks Interactive is putting its troubled uSwitch U.K. energy price comparison Web site up for sale. Revenue from Scripps's interactive services segment, which includes uSwitch and comparison shopping site Shopzilla, fell by 35% in the first quarter of 2009. Pali Media Analyst Blogs to Power, Influence Crain's New York Richard Greenfield, Pali Research's media analyst, is known for voicing extreme opinions that others might only think about. The self-professed media geek posts on the Pali blog up to three times a day. Time Warner CEO Jeff Bewkes says that Greenfield writes "some great stuff." Time Warner Names New Global Media Head Associated Press Time Warner is promoting exec Mark D'Arcy to president of its global media group. He succeeds John Partilla, who is leaving to join Clear Channel. The global media group works with advertisers to "create ideas that leverage Time Warner assets against marketing challenges." TBS Ascends After Time Warner's AOL Spinoff Atlanta J-C After Time Warner ditches its troubled AOL unit, Turner Broadcasting System will emerge from the relative shadows to become half of the media giant, based on the profits of its cable networks -- CNN, TBS, TNT and others. CEO Jeff Bewkes says that TBS is "central to our future." Murdoch: Chase Carey Not My Heir Apparent Fox Business News Corp. chief Rupert Murdoch says that new No. 2 exec Chase Carey is not necessarily his heir apparent. "We're not making any commitments on that." He also predicts that print newspapers will be replaced by digital news sources. "It's going to be something that is quite mobile." Old Media Losing Audiences to Mobile Phones New York Times A survey of Apple iPhone and Android G1 users by Gravity Tank, a Chicago-based creative consulting firm, finds that smartphone apps are using up lots of people's time -- to the detriment of other media. Some 31% say they read newspapers less; 24% are watching less television. Murdochs to Sell Summer Getaway Home New York Rupert and Wendi Murdoch are putting their five-acre, 11-bedroom summer getaway estate on the North Shore of Long Island on the market for $12.8 million. In the meantime, the Murdochs are renting it to Brad Pitt and Angelina Jolie, for more than $100,000 a month. Diller, Murdoch, Zucker 'Friend' Each Other New York Observer Barry Diller, Rupert Murdoch and Jeff Zucker are among the digital media luminaries gathering for a star-studded Internet Week party, hosted by the entrepreneurial Founders Club. The event honors new AOL CEO Tim Armstrong and new News Corp. digital head Jon Miller. News Corp's Interactive Unit Preps Layoffs Los Angeles Times MySpace parent Fox Interactive Media, suffering from a steep drop in online advertising, is said to be preparing to lay off a significant number of employees. The layoffs are part of a restructuring of News Corp.'s digital operations. MySpace and other divisions will likely be affected. Disney Seeks Acquisitions in Video Games Bloomberg Disney is increasing spending on video-game development, part of a strategy to profit from the industry's growth by publishing more titles based on its movies. The company says it is "actively looking" for takeover targets that demonstrate "cultural alignment" with Disney. Media, Web Companies Look to Sell Start-Ups Reuters Many media and Internet companies that bought start-ups in the boom years are expected to shed assets they no longer see as core, as the recession imposes a new frugality. Says Twitter financial backer Todd Dagres: "In good times, companies acquire, in bad times, they divest." Forbes-Backed Web Site Seeks New Web Model Washington Post True/Slant, a new news Web site, plans to enable journalists "to develop their own brand," says founder Lewis Dvorkin, a veteran of the New York Times, Wall Street Journal and AOL. True/Slant is backed by $3 million in funding from Forbes Media and Fuse Capital. 'The Day the Media Died' Video Goes Viral YouTube GCA Savvian investment banker Terry Kawaja, during an Internet Week presentation, released his latest parody video, "Mad Ave Blues." The ditty, now on YouTube, includes the lyrics: "The digital revolution felt like thunder / With every paper that went under ... " Murdoch Wages 'Vendetta' Against Berlusconi Financial Times Silvio Berlusconi, Italian prime minister and media mogul, is lashing out at Rupert Murdoch, accusing his business rival of using the Times of London newspaper to launch a series of personal attacks. Berlusconi is upset over articles on his relationship with an 18-year-old "model." Viacom Chief Says Best Days Are Yet to Come Hollywood Reporter Viacom is experiencing a "creative renaissance," says CEO Philippe Dauman, speaking at the company's annual shareholder meeting. He and chief Sumner Redstone promise that being a hit factory will further boost Viacom's fortunes. "Creating hits is the name of the game." News Corp Names DirecTV CEO to Post Dow Jones As expected, News Corp. is appointing DirecTV CEO Chase Carey as its deputy chairman, president and COO. He will also join the company's board of directors when Peter Chernin steps down July 1. He will report to CEO Rupert Murdoch as he oversees the company's global operations. WSJ, Gawker Chiefs to Talk Media's Future I Want Media WSJ.com chief Alan Murray and Gawker boss Nick Denton are among the media and tech figures discussing "The Future of Media," in a forum today by I Want Media. The session, held in conjunction with Internet Week New York, will be webcast live by Livestream. News Corp to Lead Drive to Paid-For Media Hollywood Reporter Paid digital media services are the future, says News Corp. digital chief Jon Miller. And News Corp. is willing to take a lead industry position to push for change. One possibility: News Corp.'s various New York media outlets, including the New York Post, could be "bundled." Time Warner's Next Spinoff May Be Time Inc AllThingsD After spinning off AOL, Time Warner's next move may be selling off the company's namesake Time Inc. publishing unit, which faces "inherent difficulties," says Pali Capital analyst Rich Greenfield. CEO Jeff Bewkes and the company's board "have no emotional attachment to the assets." Universal Music Hit with Lawsuit by Cher Hollywood Reporter Cher is filing a lawsuit against Universal Music, claiming that the label's "creative" accounting has shortchanged her and the heirs of her late ex-husband Sonny Bono some $5 million. Universal is toying with "one of the most popular and iconic artists of all time," says Cher's lawyer. Warner Mogul Bronfman to Leave New York Times of London Edgar Bronfman, the billionaire heir to the Seagram fortune and CEO of Warner Music, is leaving his native New York for a home in Kensington, West London, with his wife, Clarissa, and four young children. He plans to run Warner Music from both London and New York. Media: Too Much Is Bad for Children's Health HealthDay News Easy access to a wide variety of media increases a child's risk for numerous health issues, such as obesity, eating disorders, drug use and early sexual activity, according to expert Dr. Victor Strasburger. "Parents have to change the way their children access the media." Media Industry to Feel Pain of GM Bankruptcy TheDeal Newspapers, magazines, television stations and Web sites are expected to lose hundreds of millions in advertising dollars from the Chapter 11 bankruptcy filing of General Motors. The losses will likely translate into layoffs or divestments to protect bottom lines. News Corp: CEO Move Primes Sale of DirecTV Multichannel News DirecTV CEO Chase Carey's possible jump to News Corp. to become Rupert Murdoch's No. 2 could be the first step toward an outright sale of the satellite giant, says Collins Stewart analyst Tom Eagan. "The heavy lifting is done." AT&T is a likely suitor, he adds. Time Warner May Be Forced to Sell Itself Wall Street Journal Time Warner, after its retreat from AOL, continues to face long-term threats from the Internet and digitization. CEO Jeff Bewkes may be forced to run the company in a scaled-down form -- without its publishing unit. Another option: Sell the company to the likes of Comcast or News Corp. Why Won't Traditional Media Outlets Innovate? Forbes Unless old media execs truly believe their business models have long-term viability, "they need to regain an appetite for risk," writes Scott Donaton, former publisher of Entertainment Weekly. "They should experiment with iPhone apps, mobile video, touch-screen readers." News Corp: DirecTV CEO to Replace Chernin TheWrap DirecTV CEO Chase Carey is being tapped to become the second in command at News Corp., replacing Peter Chernin when he steps down after the end of his contract in June. Carey would be vice-chairman rather than president, as Chernin was, and would be based in New York. Disney to Dominate Mommy Demo on Web Mediaweek Disney Online is set to the completion of its acquisition of a group of parenting Web sites run by the financially distressed Canadian outfit Kaboose, purchased for $18.4 million in April. Disney can now claim to be the biggest player in the moms category on the Web. NBC Will Still Be Here This Fall, Leno Says Reuters Jay Leno on Friday ended his 17-year run as host of "The Tonight Show." His move to 10 p.m. this fall, which will save NBC millions by avoiding production of a costly TV drama, is a gamble, he admits. "I'm betting NBC will still be around in three months, but that's not a given." MSNBC 'Morning Joe' Brewed by Starbucks New York Times Starbucks is becoming a sponsor of MSNBC's "Morning Joe," in the closest integration between an advertiser and a national news show in recent memory. Voice-overs will tell viewers that "Morning Joe" is "brewed by Starbucks." The show may start airing from Starbucks outlets. Playboy Expected to Offer CEO Job to Outsider Wall Street Journal Playboy Enterprises is expected to offer Scott Flanders, president and CEO of Freedom Communications, its vacant CEO post as early as this week. It isn't clear whether the possible appointment means the company is more likely to seek a buyer, as is rumored. Time Warner CEO Hints at Magazine Web Fees Associated Press Time Warner CEO Jeff Bewkes says he doesn't think it makes sense "to run a publishing business with no cost for the content." However, he isn't specifying whether any of Time Warner's magazines will start to embrace online fees to increase their revenue. Time Warner Eyes Content After AOL Spinoff CNNMoney Time Warner is spinning off the struggling AOL, undoing the famously failed $124 billion merger of 2001. The move will allow the media giant to focus more on content, says CEO Jeff Bewkes. AOL co-founder Steve Case tweets: A return to greatness is "doable." Media Giants Spin Piracy Fight as Job Effort Financial Times Media companies are joining forces with unions to lobby for tougher action against piracy, as rising unemployment focuses their attention on the threat to jobs from copyright infringement. Fighting piracy "is a jobs issue," says NBC Universal general counsel Rick Cotton. Media Shareholders See Exec Pay as Hot Topic Hollywood Reporter Executive pay, shareholder returns and signs of a possible advertising market stabilization are likely to be in focus as Time Warner, Viacom, CBS and other media biggies host their annual meetings in the coming weeks. Executive pay "could be a lightning rod." News Corp Seeks Broad Ad Deal with Google Reuters News Corp. hopes to sell Google access to a greater swathe of its media properties, say senior execs Jon Miller and Owen Van Natta. An advertising deal between Google and News Corp.'s MySpace is coming up for renewal. News Corp. assets encompass television, print and online. Time Warner: Lazard to Push for AOL Spinoff Wall Street Journal Lazard eviscerated Time Warner in 2006 with its report supporting activist investor Carl Icahn's campaign to break up the media giant. The investment services firm is now said to be vying for a mandate from Time Warner to spin off AOL. The move could make Lazard "millions." News Corp's Media Ownership Waiver Stands Broadcasting & Cable The U.S. Federal Communications Commission late on Friday before Memorial Day weekend released an order denying a challenge to News Corp.'s ownership of two TV stations and the New York Post in the same market. The FCC says the decision was not "buried." Disney: Jonas Brothers Fizzling as Franchise? New York Times The Disney film, "The Jonas Brothers: The 3D Concert Experience," was a dud at the box office earlier this year; "Jonas," a new Disney Channel comedy, is a ratings disappointment. One of the group's managers says: "We are transitioning to a slightly older audience." Time Warner Makes Bid for Midway Games Los Angeles Times Warner Bros. is making a $33 million bid for most of the assets of Midway Games, the bankrupt video game publisher previously owned by Sumner Redstone. Midway's "Mortal Kombat" series has already produced two movies from Warner subsidiary New Line. Disney Lets Fans Interact with 'Show White' Examiner Disney's new, expanded DVD and first-time Blu-ray release of its classic animated film "Snow White and the Seven Dwarfs" includes several interactive features. Viewers will be allowed to upload a personal photo and become one of the seven dwarfs on-screen in the actual film. Big Media Seek More Booty from Pirate Bay Ars Technica Several media companies are appealing the April 17 verdict in the trial of The Pirate Bay movie and music piracy site -- even though they won the case. Instead of $3.5 million, the companies want $13 million. They claim the lower fine doesn't fully cover the scope of the damages. FTC: Can News Media Survive the Internet Age? TheDeal The U.S. Federal Trade Commission plans to hold a hearing Sept. 15 on competition in the chaotic news industry. Titled "Can News Media Survive the Internet Age?," the workshop aims to explore concerns about the future of news on television and radio as well as in newspapers. Hearst Invests in Online Gamer VoxPop.TV VentureBeat VoxPop.TV, a site where users can build their own games and make money on them through advertising, is bringing in $1.5 million in a new round of funding led by Hearst Interactive Media. Time Inc.'s Entertainment Weekly has used VoxPop's platform to produce quizzes. Disney Opens Web Site to Sell Merchandise Reuters Disney is opening DisneyStore.com, a new site offering merchandise from its theme parks, as the entertainment group seeks new revenue sources. The site will sell Mickey Mouse ears and other items that were previously only available at Disney parks and resorts. Liberty Media Mulls Exporting Web Sites Dow Jones Liberty Media CEO Greg Maffei says that Internet commerce is a focus of international expansion for the company. "We are beginning to look at expanding a bunch of our e-commerce businesses internationally." Liberty assets include Backcountry.com and Bodybuilding.com. Time Warner Completes European Media Deal Associated Press Time Warner is closing on its acquisition of a 31% interest in Central European Media Enterprises (CME), the Bermuda-based broadcaster founded by cosmetics billionaire Ronald Lauder. CME operates TV channels in countries including Bulgaria, Czech Republic and Romania. Comcast, NFL Near a Deal on Digital Package Wall Street Journal The National Football League and Comcast are said to be closing in on a deal to put the league-owned NFL Network on a widely distributed tier of the largest U.S. cable operator. After years of disputes and litigation, an agreement would allow both sides to claim victory. News Corp: Harvard University Buys a Stake Politico Harvard University, the richest U.S. college with a $28.8 billion endowment, is making several new investments, including 1.47 million Class A shares of Rupert Murdoch's News Corp. The media conglomerate is currently trading at around $10 a share. Murdoch Aussie Rival Scoffs at Web Pay Plan CNN Rupert Murdoch's plan to put News Corp. Web sites behind a pay wall is will be "like putting toothpaste back in the tube." So says Jack Matthews, CEO at Fairfax Digital Media, the online arm of a News Corp. rival in Australia. Matthews says he is "bullish about mobile devices." Disney Film Strategy Sputters as TV Stars Flop Bloomberg / LAT Film flops threaten to leave Disney in last place at the box office among its Hollywood peers for the second-straight year, as movies featuring television stars Miley Cyrus and the Jonas Brothers disappoint. Also: Indie filmmakers fear Disney will dump its Miramax Films unit. Tribune: Still Waiting for Abrams' Innovation Mediaweek Lee Abrams, Tribune's first-ever chief innovation officer, was hired to bring fresh thinking to the company. One year into his tenure, however, it is unclear whether there has been any significant change. Earlier: Tribune will become "an oasis of creativity," Abrams promises. Media Industry Stocks Set to Soar -- or Sink? Hollywood Reporter U.S. media chieftains are expressing optimism about the advertising market and the economy. But several industry challenges -- user fragmentation, digital distribution -- will persist even after other conditions improve, analysts say. One warns: "The decline to come will be shocking." Murdoch's Sky Rebrands Premiere in Germany Dow Jones German pay-television operator Premiere plans to relaunch in July under the new name Sky Deutschland, joining other pay-TV outlets in Europe partly or fully-owned by News Corp. They include Sky Italia and BSkyB. News Corp. holds a 30.5% stake in Premiere. MGM to Restructure Big Debt Amid 'Stooges' Bloomberg Metro-Goldwyn-Mayer, the movie studio controlled by Providence Equity Partners and TPG, is in talks to restructure $3.7 billion in debt. The studio says it aims to stay independent. Releases this year include "The Three Stooges," with Jim Carrey, Sean Penn and Benicio Del Toro. Sony Posts First Annual Loss in 14 Years Xinhua Sony is announcing its first annual operating loss of $1 billion in the fiscal year through March, its first annual loss in 14 years, due to global meltdown. CEO Howard Stringer is slashing 16,000 jobs and 10% of the group's manufacturing plants in an effort to turn the company around. Comcast: We're Not Selling Our Teams Philadelphia Inquirer Comcast has no plans to sell its majority ownership stakes in the Philadelphia 76ers basketball team or the Philadelphia Flyers hockey team because of the weak economy. So says CEO Brian Roberts in response to a question at the cable giant's annual shareholders meeting. Big Media Rethink Role of Digital Officers Fortune A few years ago, old-media companies from ABC to Viacom, aiming to show that they had a clue when it came to the Internet, created the position of chief digital strategist. Today some media incumbents are dropping the role altogether, as deals fall by the wayside. Viacom May Sell Off Paramount, Analyst Says Dow Jones Viacom may be forced to sell Paramount Pictures, according to Citigroup analyst Jason Bazinet, despite the success of the new "Star Trek" movie. Viacom's cable networks, weakened as more advertising moves to the Internet, will find it more difficult to "subsidize the struggling studio." Redstone: Bids for Theaters; Suit from Creditors Reuters / Bloomberg Sumner Redstone's National Amusements has received a first round of bids for its theater chains, with bidders offering enough to help the company pay off its debts. Also: Redstone is being sued by Midway Games creditors over claims the video-game maker was hurt by his stake sale. Media Stocks Get Respect from Wall Street Variety Over the past two months, share prices in media companies that had flirted with or hit historic lows have been steadily inching up. The slow turnaround in Wall Street perceptions of media stocks is believed to be fueled in part by larger economic indicators, like unemployment. Old Media Aim to Start Internet Revolution Times of London In the past few weeks, Disney joined Hulu, Amazon unveiled the Kindle DX, and Rupert Murdoch announced plans to charge for his newspaper's Web sites. May 2009 may come to be remembered as the month when old media started to fight back with "business models for survival." Media Execs See Ad Recovery -- For Some Media Life Most media execs on earnings calls are saying that the advertising market is "not getting worse." But analysts are quick to note that a real recovery won't kick in for a year or so. In addition, some media just aren't going to come back, notably newspapers and magazines. Disney CFO Skaggs Sells Nearly $2M in Shares Barron's Disney CFO Tom Staggs is selling 75,000 shares in the media company for $1.9 million -- a move seen as bad news for the stock of the parent of ABC and ESPN. Says one observer: "I would not want to be a buyer of Disney when the CFO is selling such a large percentage" of shares. NBC Universal Plugs Itself in New Commercial DHD NBC Universal, in an effort to celebrate its fifth anniversary, is debuting a 30-second spot "designed to showcase all of the diverse assets within the company's portfolio." The spot will run all NBCU channels, as well as on a video billboard in Times Square and in New York City taxicabs. Viacom: 'Star Trek' to Live Long, Prosper Bloomberg The new "Star Trek" film, from Viacom's Paramount Pictures, opened with $72.5 million in ticket sales, the best debut in the 11-movie franchise. The debut may pave the way for still more "Star Trek" films. The media giant is likely to reap additional revenue from spin-off consumer products. Murdoch Donates $5.5M to Harlem School New York Post News Corp. chief Rupert Murdoch is donating $5.5 million to the Harlem Village Academy, a high-performing school serving grades 5 through 10. Murdoch presented the donation at an Apollo Theater gala hosted by Hugh Jackman, with performances by John Legend and Patti LaBelle. Big Media, R.I.P.: The Conglomerate 'Has Died' Newsweek On April 29, Time Warner CEO Jeff Bewkes "officially announced the death of Big Media" by revealing plans to spin off AOL. And now, Time Warner magazine unit Time Inc. "has a funereal atmosphere about it." Synergy has "proved to be the most overhyped concept" in business. News Corp's Murdoch Vows to Control Content MarketWatch Rupert Murdoch, while reporting News Corp.'s flat Q3 earnings, says that his newspapers will begin to charge for online content within the year. He also vows that News Corp. will not feed its content to Amazon's Kindle. "We will control the relationship with our customers." Murdoch to Study Internet Content Platforms New York Post News Corp. is assembling a team of execs -- include chief Rupert Murdoch himself -- to devise a system to charge for content on the Web. The team is looking at creating a device akin to Amazon's Kindle to deliver content from News Corp.'s newspaper, television and movie units. Disney CEO Sees Signs of Economy Stabilizing Dow Jones Disney CEO Bob Iger says that he sees "some signs" that the U.S. economic climate is stabilizing, echoing recent comments from federal officials and economists. Iger made the comment following the announcement of the company's Q2 46% decline in profit. Redstone Aims to Avoid Viacom, CBS Share Sales Associated Press National Amusements, the theater chain controlled by Sumner Redstone, is restructuring its $1.46 billion of debt. The firm holds controlling stakes in Viacom and CBS. Redstone was forced to sell $230 million worth of shares in Viacom and CBS last fall. CBS Creates Group for Interactive Music Assets FMQB CBS is combining its digital music assets to form the new CBS Interactive Music Group, a business unit bringing together CBS Radio's music sites and audio streams, various mobile applications and the Last.fm site. The group will share "technology resources to realize cost efficiencies." Viacom, CBS: Who Will Succeed Redstone? Bloomberg Viacom/CBS boss Sumner Redstone, 85, says he has no plans to die. "I'm going to live forever," he declared at a conference last week. Should Redstone fail to achieve immortality, however, a trust committee will decide his successor. "It just isn't quite clear who that successor will be." U.S. Media Hope 'Slumdog' Thaws China New York Times American media giants are shifting their global expansion efforts from China to a India, a nation with less resistance to foreign media. But the success of "Slumdog Millionaire," which was filmed in India, is raising hopes that China, out of regional rivalry, could start to thaw. News Corp's 'Wolverine' Slashed by Piracy? Reuters A rough copy of "X-Men Origins: Wolverine" leaked onto the Internet may have kept some moviegoers away from the film's opening this weekend. But the true impact is hard to calculate. An exec with backer 20th Century Fox admits: "I don't know that we'll ever know" the effect. Disney's Iger Named No. 3 Highest-Paid CEO AP / NYT Disney's Bob Iger comes in at No. 3 ($51.1 million) on a list of the 10 highest-paid CEOs for 2008, according to an analysis of chief execs in the Standard & Poor's 500 index. Also: "My first boss at ABC told me I wasn't promotable," Iger says. "Clearly he had poor judgment." Viacom Seen Set for Management Shakeup Wall Street Journal With Viacom's advertising-revenue growth estimated to be underperforming its rivals, CEO Philippe Dauman may need to overhaul management at the media giant's cable networks, observers say, including the floundering MTV. More "drastic options" include replacing Dauman. News Corp, Hollywood May Smash Records Wall Street Journal Despite the recession, Hollywood appears to be on track for its best year ever at the box office. "X-Men Origins: Wolverine," opening from News Corp.'s 20th Century Fox, is likely to take in over $100 million this weekend, making it the biggest opening of the year so far. Redstone: I Will Never Leave CBS, Viacom Reuters / HR Sumner Redstone says he has no plans to step down anytime soon or give up his controlling positions in CBS or Viacom. "I have no intention of dying." Also, newspapers are one business "I'd never be in." Plus: CBS' "CSI" will "beat the hell out of" NBC's Jay Leno at 10 p.m. News Corp's Chernin Dismisses Viacom Talk LAT / Bloomberg Peter Chernin is keeping his cards close to his vest about his post-News Corp. plans, but dismisses talk that he is being wooed by Viacom. "Nothing, no conversations," says News Corp.'s president and COO. Also: The Internet "may cannibalize" the television industry, he warns. Disney Takes Stake in Hulu for ABC Shows Bloomberg Disney is acquiring a 27% equity stake in Hulu, gaining a new Internet outlet for television shows such as "Grey's Anatomy" and "Lost." Disney is joining NBC Universal and News Corp. as investors in the third most-watched video site. Hulu would welcome CBS, says CEO Jason Kilar. Viacom Says U.S. Ad Market Is Stabilizing Associated Press Viacom says its first-quarter profit fell 34%, hurt by falling advertising and entertainment revenue. But CEO Philippe Dauman is pointing to signs of an ad turnaround, a critical factor for the company's cable assets. "Over the past few weeks we have seen the ad market stabilize." Time Warner Eyes AOL Spinoff, Mag 'Shakeout' MarketWatch Time Warner says it expects to spin off one or more parts of AOL, which would remove the biggest piece of uncertainty for investors in the media giant. Time Warner is also in talks to buy back Google's 5% stake in AOL. Plus: The company's magazines will see a "shakeout." Murdoch Son Buys Into Aussie Broadcaster Australian Lachlan Murdoch's private investment outfit Illyria is taking a 9.1% stake in the Australian regional television group Prime Media. The stake is worth just over $16 million. Lachlan is the son of News Corp. chief Rupert Murdoch and is a director on the media giant's board. Disney to Plant 2.7 Million Trees for 'Earth' Associated Press Walt Disney Studios vowed to plant one tree in Brazil's endangered rain forest for every viewer who saw its nature documentary "Earth" during its first week of release. According to Disney, the box-office tally hit $16.1 million, which translates to 2.7 million trees. News Corp: 'Greed Is Good' for Film Sequel Associated Press News Corp.'s 20th Century Fox is signing up Oliver Stone to direct a sequel to his 1987 hit "Wall Street." Michael Douglas will reprise his role as Gordon Gekko, in a "timely story ripped from today's headlines." (But will the Wall Street Journal, a new corporate sibling, have a part in the movie?) Murdoch: Media Profits Squished by Internet Dow Jones Television and newspapers "absolutely" have a healthy future, says News Corp. chief Rupert Murdoch, speaking at the Milken Global Institute Conference. But the question remains how people will pay for the news, he adds. The Internet makes it "harder to make bigger profits in media as we know it." Time Warner May Be Near Resolution on AOL Bloomberg Time Warner may tell investors during its earnings conference call Wednesday it is close to a resolution on AOL that would unwind the failed 2001 merger and enable the company to focus on its content businesses, analysts say. "Amputating that AOL limb will be beneficial." Media Giants Hurt By Fewer Ads, Internet Dow Jones Diversified media companies continue to be plagued by declining advertising and a consumer shift to the Internet. The recession is slowing the growth of online advertising as well. Newspapers are in dire straits, and local television stations face many of the same problems. Media Stocks Rally Despite Elusive Ad Recovery Reuters In the past month, Time Warner and News Corp. shares have risen nearly 20%, while CBS has surged about 40%. Still, advertising is not yet showing signs of a comeback, and there is little consensus about when a turnaround will occur. Opinions on the matter are "all over the board." Old Media Is 'No Match' for Popular Obama Washington Times President Obama's communications handlers acknowledge that today's evolving media landscape works to their advantage. Both network television and newspapers are "bleeding" and are "less powerful." And Obama is "more popular" than all of the media "combined." TV Networks Peeved at Primetime Obama New York Post The major television networks are said to be unhappy with President Obama's frequent primetime speeches, which are costing them some $10 million per hour in lost advertising revenue. Their revenue models didn't "anticipate monthly State of the Unions." Viacom Investors May Call for New CEO Crain's New York Analysts are blaming Viacom CEO Philippe Dauman for everything from MTV's sagging ratings to the 44% fall in the company's share price since he started. Some investors say they hope that "someday a CEO will come along" who can get more out of the company's assets. CBS Chief Moonves' Salary Dropped in '08 Los Angeles Times CBS boss Les Moonves' overall compensation for 2008 was valued at about $32 million, compared with $36.8 million in 2007, according to the company's proxy report. CBS stock lost 70% of its value last year. Moonves has indicated he will not take a pay raise in 2009. Time Warner Mulls Bid for Midway Games Bloomberg Time Warner is said to be preparing a bid for Midway Games, the creator of the "Mortal Kombat" video games. Midway filed for bankruptcy in February, two months after Sumner Redstone sold his 87% stake. "Mortal Kombat" has inspired two movies, both from Time Warner. Time Warner Cable Eyes Acquisition of Joost CNET Joost, the beleaguered online video service, is said to be seeking a buyer and Time Warner Cable is one of the companies interested. Joost, which launched in 2007, has struggled with management shakeups and tech setbacks, and has fallen behind rivals YouTube and Hulu. Big Media Film Studios Hit by Poor DVD Sales Reuters Consumer demand for DVDs is forecast to fall further over the next five years as the maturing market transitions to digital distribution. Bankers say these trends could hamper future film financing at the major Hollywood studios. "It's a different era from four years ago." Media Bigs Networking During Lean Times Variety Media bigwigs in New York are relying on power lunches at Michael's and the Four Seasons — as well as social-networking sites — to stay in the game as industry jobs disappear. Media maven Bonnie Fuller says Facebook and Twitter give users "an opportunity to connect." Hollywood Bloggers, Twitterers Vie for Power New York Observer Twittering actors and industry bloggers are threatening the role of the once mighty Variety as the premier source for Hollywood news. Nikki Finke's blog is "the one to beat right now." Still, actors, directors and producers are bypassing the press — and blogs — via Twitter feeds. News Corp Exploring MySpace CEO Options TechCrunch MySpace CEO Chris DeWolfe and co-founder Tom Anderson are reportedly paid an aggregate of $30 million a year. Their contract with News Corp. expires this October and must be renegotiated soon. A top headhunting firm is said to be scouring for possible replacements. Martha: Co-CEO Millard Not a Good Thing New York Post Wenda Harris Millard, co-CEO of Martha Stewart Living Omnimedia, is stepping down to join advisory firm MediaLink, after less than a year in the position at the lifestyle media company. A rift reportedly developed between Stewart and Millard over "control issues." Report: Media Growing More Fragmented World Screen Consumers worldwide are watching more content on a greater number of platforms than they were a year ago, according to a survey by Accenture. Content providers "face an urgent need to respond to changing consumption habits — or face playing catch-up." Viacom CEO Bashed in Analyst Report Multichannel News Pali Research analyst Rich Greenfield is downgrading his rating on Viacom from "buy" to "neutral," citing CEO Philippe Dauman's "poor decision-making." Viacom is wasting its time in its Google lawsuit, and should be trying to "figure out how they can make money online." Murdoch Son to Deliver Keynote Lecture Guardian James Murdoch, chairman and CEO for News Corp. in Europe and Asia, is to deliver the MacTaggart Lecture at the MediaGuardian Edinburgh International Television Festival in August. The 36-year-old is seen as the heir apparent to his father's News Corp. empire. CBS Chief Moonves, Chen Expecting Child New York Post CBS boss Les Moonves and wife Julie Chen are expecting a child. Moonves, 59, who married Chen, 37, four years ago, has three grown children from his first marriage. Chen, who is due to give birth in October, will have to take maternity leave from "The Early Show" and "Big Brother." Murdoch Empire Slighted by Investors BreakingViews.com Shares of Rupert Murdoch's News Corp. are trading at a "notable" discount to their component parts. However, a boost "might come only if the boss's advancing age changed his outlook — or led the board to appoint a successor less attached to some of the company’s assets." Media Earnings to Remain Challenged Broadcasting & Cable First-quarter results for several major media companies, to be announced in the coming days, are expected to reflect the continuing advertising slowdown. "It's not getting any better," says one analyst. "If you own a TV station or radio or outdoor or a newspaper, it's bad." Viacom Execs Get Raises as Stock Falls Los Angeles Times Although Viacom's stock lost half its value in 2008, chairman Sumner Redstone was compensated $12.1 million, up from $8.3 million in 2007. CEO Philippe Dauman earned $23 million, up $3 million. One executive compensation monitor gives Viacom a D grade. NBCU Profit Plummets -- Despite 'Chuck' MarketWatch / Ad Age NBC Universal's profit plunged 45% in the first quarter, hurt by declines in advertising sales at its television stations and higher network programming costs. Also: NBC is facing criticism for the Subway "$5 foot-long" advertising message in the script of the sitcom "Chuck." Comcast Chief Denies Threatening NFL Bloomberg Comcast CEO Brian Roberts says he didn't threaten the National Football League after he lost a bidding war for rights to live games, as alleged by the NFL. The real issue: the NFL's claim that Comcast illegally moved the network to a package that costs extra and gets few viewers. Disney Introduces First Black Princess Washington Post Disney's "The Princess and the Frog," set for release in November, will feature the company's first-ever black princess. The lead character, Tiana, is "a beautiful black princess from New Orleans." Her appearance comes with Michelle Obama's emergence as the nation's first lady. Actors Union Contract Nixes Web Rerun Pay Los Angeles Times The Screen Actors Guild, ending a nine-month stalemate with Hollywood studios, is approving a new film and television contract that establishes payments for shows streamed over the Web. However, the contract does not give actors residuals for most Internet shows, a sore point. AOL: Time Warner Gets OK for Sale, Spin-Off Reuters Time Warner's bondholders have agreed to change the terms of their debt contracts, removing restrictions on a sale or spin-off of its beleaguered Internet unit AOL. Time Warner CEO Jeff Bewkes has said he is examining options for the future structure of AOL. Martha Gets Pay Boost as Firm Sputters Wall Street Journal Martha Stewart Living says it will pay founder Martha Stewart at least $2 million a year for the next three years, in addition to a signing payment and a likely bonus, in a new contract renewal. The company has posted operating losses for four out of the last five years. Media Vets Eye Web Journalism for Pay New York Times Steve Brill, Gordon Crovitz and Leo Hindery Jr. are starting a company, Journalism Online, aiming to build a system to allow newspapers and magazines to charge for online access. For unlimited subscriptions, the firm is "playing with a figure of $15 a month." Murdoch Starts Content-Sharing Initiative Wall Street Journal News Corp. is forming a content sharing initiative that will allow its worldwide editorial properties to share resources. John Moody, the head of editorial operations for News Corp.'s Fox News Channel, will oversee the new unit. Moody will work to "identify areas of cost savings." Media Giant Stocks Forecast to 'Turn Ugly' Hollywood Reporter Shares of Disney, Time Warner, News Corp. and other media giants are seeing gains. But Wall Street analysts warn: "The rally will meet resistance once the market realizes that the first-quarter results are below consensus." Within a few months, "things turn ugly again." Time Warner CEO Gets $21.5M Pay Package Associated Press Time Warner CEO Jeff Bewkes was awarded compensation in 2008 valued at about $21.5 million, according to an Associated Press tally of data filed with regulators. That figure is up 11% from a year ago, as the company cut costs and moved to shed assets such as its cable unit. Disney vs Time Warner on Online TV Models New York Post Disney CEO Bob Iger and Time Warner CEO Jeff Bewkes are at odds about the model for offering television shows online. Disney, which owns broadcaster ABC, plans to make TV shows available for free; Time Warner, which owns cable channels, supports a pay model. Disney's Iger Beats Murdoch in CEO Pay New York Times Disney CEO Bob Iger is ranked as the third-highest paid CEO at a publicly traded company, according to a study by the New York Times. Iger earned $51.1 million in 2008, up 85% from 2007. News Corp. CEO Rupert Murdoch comes in at No. 8, with $30.1 million last year. Time Warner May Spin AOL, Buy Video Games Variety Time Warner is making moves that could pave the way for a spin-off of its beleaguered AOL unit. Some fund managers speculate that the media giant will try to buy video-game makers Electronic Arts or Take-Two Interactive. Games are "the fastest-growing industry in the media field." News Corp Film Leak Sparks Anti-Piracy Push Bloomberg Hollywood is seeking tougher U.S. anti-piracy enforcement following the illegal posting of News Corp.'s summer film "X-Men Origins: Wolverine" on the Internet last week. Says Disney studios chief Dick Cook: Piracy could "eliminate entire legitimate markets." Blockbuster May Not Be Able to Stay in Business Associated Press Movie rental company Blockbuster says the risk that it may not complete financing deals raises "substantial doubt" about its ability to continue as a going concern. The Dallas-based Blockbuster is struggling amid the rising popularity of DVD-by-mail services like Netflix. Sony, YouTube in Talks Over Feature Films CNET YouTube is said to be in talks to acquire licensing rights to full-length content from Sony Pictures, home of such films as "The International" and "Spider-Man." Google's video-sharing site appears to be aiming to become a player in Hollywood as online video is booming. Disney to Cut 1,900 Jobs at Theme Parks Los Angeles Times Disney is eliminating about 1,900 jobs in its U.S. theme parks. The media and entertainment giant employs about 80,000 people in its parks and resorts unit. The cuts signal that Disney is bracing for an extended downturn as consumers continue to keep their wallets closed. Murdoch Issues 'Fightin' Words' to Google Forbes Rupert Murdoch, in public remarks, is accusing Google of poaching content it doesn't own and urging media outlets to fight back. Murdoch's comments may be a "precursor to a lawsuit that would bring Google to the bargaining table," observers say. "Murdoch wants to be paid." Big Media: How to Make Consumers Pay? New York Times From television networks selling downloads of shows, to music companies trying to curb file-sharing, to struggling newspapers, the make-or-break question is this: How do you get consumers to pay for something they have grown used to getting free? Time Warner 'Probably' Won't Sell AOL CNBC Time Warner "probably" won't sell AOL, says CEO Jeff Bewkes. "Making it independent, maybe." Talk of a Time Warner merger with NBC Universal is "mostly wishful thinking" at NBC, he adds. Also, the company's struggling magazine business "might be better off private." News Corp Investing in Larger Mobile Device Dow Jones News Corp. chief Rupert Murdoch says his company is investing in a mobile device for reading newspapers on a larger screen than the typical handheld device. The project, which is in its early stages, represents a potential solution to the problems ailing publishers, he says. Murdoch Glum on Economy, Free Web News Dow Jones Rupert Murdoch says he doesn't see the global economic crisis easing anytime soon. He adds that the free online news model is "going to have to change" and questions whether newspapers should allow Google and other aggregators to continue "stealing all our copyrights." Time Warner: Can't 'Blow Up' Cable Model MarketWatch Time Warner CEO Jeff Bewkes is defensive of the company's "TV Everywhere" premise. The industry "can't just blow up the revenue structure" that cable operators and programmers have come to rely upon by continuing to stream shows free online to people who don't pay. Viacom CEO Sees No Backlash to Web Pay MarketWatch Viacom CEO Philippe Dauman says that there is unlikely to be a negative consumer backlash against the Time Warner-led "TV Everywhere" plan. "People are used to paying for video subscriptions. They're used to paying for broadband service, so there's nothing new there." Disney CEO: Pays Walls Are 'Anti-Consumer' Dow Jones Disney CEO Bob Iger has reservations about walling off online content on a subscription basis, particularly content from broadcasters like ABC, which he notes is free over the air and depends on advertising. Such a move "could be viewed as anti-consumer." Warner, Sony Take On CBS, Clear Channel Bloomberg Music labels and radio broadcasters are going toe-to-toe as they lobby U.S. lawmakers about legislation to make stations pay royalties for playing songs. Music labels and radio stations are both struggling as listeners turn to the Internet and devices such as the Apple iPod. Media Deals at Lowest Levels in 10 Years BtoB The value of mergers and acquisitions in media fell to a record low of $1.3 billion in the first quarter, according to Jordan, Edmiston Group. The media investment bank, however, says it is "starting to see a bit of sunlight at the end of the tunnel." Fox Scrambles to Yank Pirated 'Wolverine' Entertainment Weekly A DVD-quality print of Hugh Jackman's "X-Men Origins: Wolverine" is being pirated and leaked onto the Internet. News Corp.'s 20th Century Fox, the film's distributor, is enlisting the FBI to investigate the crime. "Wolverine," a major summer film, is due to open in theaters May 1. Big Media: All Conglomerates See Declines Hollywood Reporter Stocks in the media and entertainment sector are continuing to have a tough time. Time Warner, News Corp., Disney, Viacom, CBS -- all are seeing share declines in 2009. According to one analyst: "Essentially everything is going wrong at the same time." Time Warner No Longer No. 1 Media Company Bloomberg Time Warner's spinoff of its cable division dropped the owner of Time magazine and Warner Bros. to third place among U.S. media companies, following after Disney and News Corp. Analysts say: "It's better to be Disney than a company that's a third of the size like Viacom." Disney Buys Kaboose Family-Oriented Sites Los Angeles Business Disney Online is acquiring several family online sites from Toronto-based new media outfit Kaboose for $18.4 million. The sites, which include Kaboose.com, Babyzone.com and AmazingMoms.com, will become part of Disney's existing family properties. News Corp Names Miller as Digital Chief Reuters News Corp. is officially naming former AOL CEO Jon Miller to supervise the media conglomerate's digital strategy. Rupert Murdoch's media company also says that 20-year veteran Peter Levinsohn will be the head of new media and digital distribution at Fox Filmed Entertainment. Time Warner Cable Eyes Internet Usage Pricing BusinessWeek The newly spun-off Time Warner Cable will impose premium rates on big users of broadband in Web markets in Texas, New York and North Carolina. "We need a viable model to be able to support the infrastructure of the broadband business," says CEO Glenn Britt. Viacom/CBS Chief Redstone Eyes Chernin DHD Viacom/CBS boss Sumner Redstone is denying rumors that he is talking to Peter Chernin about replacing Philippe Dauman as his No. 2 exec. "Chernin is from the creative side, and Dauman isn't," says a source. Chernin is to step down as Rupert Murdoch's No. 2 at News Corp. Comcast Seeks Hearst's Stake in NECN Boston Globe Comcast, the largest U.S. cable provider and half-owner of New England Cable News, is in talks to become the sole owner of the regional 24-hour news network. Hearst, which co-owns the 17-year-old NECN, is expected to sell its half to the cable giant. Time Warner, Abu Dhabi in Talks to Revamp BusinessWeek Time Warner's Warner Bros. is in talks with Abu Dhabi Media to restructure a $1 billion agreement to build a theme park and movie theaters. The two sides are "not close to a resolution." The theme park is being redesigned and won't break ground this year as planned. CBS Falls After UBS Cut on Deeper Ad Slump Bloomberg CBS dropped the most in four months in New York trading Monday after UBS analyst Michael Morris recommended selling the shares because the advertising slump may be deeper and longer than expected. Industry-wide ad sales in 2010 will be "very similar" to this year. Disney Pacts with YouTube; Hulu Deal Near Bloomberg Disney is entering a deal to put video clips from ABC and ESPN on Google's YouTube in an advertising-revenue sharing arrangement. Disney also is near an agreement to take a stake in rival video portal Hulu, whose owners include NBC Universal and News Corp. S&P Cuts Time Warner to Near Junk Status Dow Jones Standard & Poor's is cutting its ratings on Time Warner to two steps above junk after the separation of Time Warner Cable, citing the loss of the company's "most predictable" growth source. The move also reflects the "underperformance at AOL and publishing." Time Warner to Test HBO on the Internet New York Times Time Warner Cable is testing a subscription service in Milwaukee for online television viewing. Residents who pay for HBO can watch entertainment programs from the Time Warner pay channel on their computers, using special software and a personal log-in. News Corp Hires Former AOLer for Digital DHD Jon Miller, the former CEO of Time Warner's AOL, is joining News Corp. in a newly created role as CEO of digital media, reporting to chief Rupert Murdoch. Peter Levinsohn, the head of News Corp.'s Fox Interactive Media, will return to the Fox studio with a promotion "in a big job." Murdoch Daughter Bests Siblings in Media Sydney Morning Herald Elisabeth Murdoch is launching an international expansion of her television production company, Shine, in a move that could see her beat her brother Lachlan in building a media business in Australia. The London-based Shine is setting up offices in Munich and plans more global outposts. Disney Said to Eliminate 800 'Cast Members' WKMG Nearly 800 jobs are being eliminated at Disney's Walt Disney World resort in Orlando, sources say. Disney, which employs about 62,000 "cast members" in Central Florida, is making cuts as the company reorganizes its domestic operations. More layoffs are expected. Hulu, Disney in New Talks Over Equity Stake Los Angeles Times Disney is negotiating with longtime rivals News Corp. and NBC Universal to take an equity stake in their video portal venture Hulu. In exchange, Disney would provide episodes of ABC shows to Hulu. Disney has "got to go where the people are." Redbox Seen as Hollywood's Latest Threat Los Angeles Times / HR Redbox movie kiosks are popping up by the thousands across the U.S. The kiosks stock DVDs that rent for $1 a day, which Hollywood fears could undermine industry economics by undercutting sales. Also: Redbox is "really scary," says Netflix founder Reed Hastings. Hollywood: Reshaping Old Business Models Washington Post Thanks to the Internet, the U.S. film, television and electronic gaming industries are starting to see their economic foundations overturned, observers say. In Hollywood, "there is a sense that it may all be coming to an end and that the old business models can't survive." Theaters Add 3-D for DreamWorks' 'Monsters' Bloomberg Theater owners are completing 3-D technology upgrades for Friday's opening of "Monsters vs. Aliens," the new DreamWorks Animation movie. Hollywood will release more than a dozen 3-D films this year, hoping to offer "something that cannot be achieved at home." Redstone Begins Sale to Save Viacom, CBS Wall Street Journal Sumner Redstone's family holding company, National Amusements, is said to be kicking off an auction to sell parts of its movie-theater chain. The move aims to pay down debt and help Redstone avoid having to sell some or all of his controlling stakes in Viacom and CBS. Martha Stewart Hires CFO from Time Warner Dow Jones Martha Stewart Living Omnimedia is hiring Time Warner exec Kelli Turner as CFO. She succeeds Howard Hochhauser, who left at year's end for the parent firm of Ancestry.com. At Time Warner, Turner was senior VP of operations in the office of the chairman and CEO. Media Companies Falling Behind in Digital Space World Screen A new study from IBM reveals a "growing rift" between advertisers, consumers and content owners, as media companies "struggle to keep pace" with the new demands of tech-savvy audiences. IBM is calling on traditional media to make "fundamental" changes. Time Warner: Tech, Succession Stress at Studio Los Angeles Times Time Warner CEO Jeff Bewkes must decide how to replace Barry Meyer and Alan Horn, who preside over the company's Warner Bros. studio and are to step down in 2011. Bewkes also must grapple with a business that is being undercut by new technologies. Hearst Again Bids to Take TV Group Private MarketWatch Hearst is making another bid to take Hearst-Argyle Television private -- this time for about $375 million -- about 18 months after a previous bid for the TV-station group was rejected by shareholders. The new bid is for $4 a share; the earlier bid was for $23.50 a share. Murdoch Wealth Decimated by Financial Crisis Ninemsn Rupert Murdoch is No. 1 on the list of Australia's top 200 richest execs, even though the global financial crisis is eroding his wealth. The value of the News Corp. chief's holdings is down $4.5 billion from last year, says Australian business magazine BRW. Parsons to Step Down from Time Warner Reuters Former Time Warner chairman and CEO Dick Parsons will step down from the board by its next annual meeting. Parsons, who has served on the board since 1991, helped Time Warner negotiate the difficult aftermath of its widely derided merger with AOL. Time Warner Invests in European Media Biz Associated Press Time Warner will pay $241.5 million for a 31% stake in Central European Media Enterprises, the Bermuda-based broadcast company founded by cosmetics billionaire Ronald Lauder. Warner Bros. is forming a partnership with the company to launch TV channels in Europe. Cox to Spend $69M Taking Radio Private Atlanta Journal-Constitution Cox Enterprises is launching an offer to buy all public shares of Cox Radio for about $69.1 million and put the unit under private control. Cox says that "given how economic challenges are affecting radio, we believe private ownership offers advantages." Media General to Reorganize by Geography Richmond Times-Dispatch Media General is shifting its corporate structure away from the traditional divisions of broadcasting, print and interactive media. The company is reorganizing its assets into geographic markets, grouping local TV stations, newspapers and Web sites under a single exec. News Corp's Chernin Guests on 'Family Guy' Entertainment Weekly Outgoing News Corp. president Peter Chernin is lending his voice to the Fox animated series "Family Guy." Chernin, who formally steps down from his post in June, plays himself as he hears a show pitch from Peter Griffin, voiced by creator Seth MacFarlane. Murdoch Jr: 'No Comment' on News Corp Return Australian Lachlan Murdoch, who left the company run by his father Rupert in 2005, says he is "sitting on a fair amount of cash" and spends most of his time in Australia analyzing potential media acquisitions. Newspapers, however, are "challenged businesses," he says. News Corp: Vinciquerra Gets a Starring Role LAT / B&C Some people might have underestimated the "low profile" Tony Vinciquerra, News Corp.'s new top U.S. television exec. Says Vinciquerra: "I listen to the smart people." But: Is the company's Hulu online video venture cannibalizing audiences? "We really don't know," Vinciquerra admits. Media Giants Want to Top Google Results Advertising Age Major media companies are lobbying Google to elevate their expensive professional content within the Internet giant's slush of search results. Many publishers argue that the "original source" should "somehow be recognized" over amateurs and link-happy bloggers. Google, Warner Music in Video Rights Clash New York Times Amateur video-makers are ensnared in a dispute between Warner Music and Google's YouTube over how the music company should be paid for non-professional clips that use copyrighted works. The dispute is causing thousands of videos to be yanked from the site. Time Warner Opens Film Archive on the Web USA Today Warner Bros. is launching the Warner Archive Collection, an "on demand" DVD program in which fans will be able to order theatrical features from the studio's library that are not available on disc and receive a custom-made DVD for $20. Films also can be downloaded for $15. Big Media to Rethink Portfolios in Digital Age Variety Media giants like Time Warner and News Corp. are awash in cash and poised to make big acquisitions once the economy recovers, Wall Streeters say. However, it's likely they will no longer be interested in traditional media assets like television and print. "We'll see new portfolios." News Corp Names Lieutenant for Murdoch Jr Wall Street Journal Jan Koeppen, the head of the media practice at Boston Consulting Group, is being named COO of News Corp.'s Europe and Asia operations. Koeppen will be a top lieutenant for James Murdoch, the News Corp. heir apparent who oversees company activities in Europe and Asia. Sony Will Freeze Workers' Pay, Trim Bonuses Bloomberg Sony will freeze pay and cut bonuses for its workers after forecasting a record loss. The company is deciding not to raise employee pay for the 12 months starting April 1. Sony will also cut bonus payments to the equivalent of four months' salary from six months' wages paid last year. 2009 State of the Media Report: Not Good Time The U.S. financial and auto industries aren't the only ones falling apart, says the Project for Excellence in Journalism's State of the News Media survey. "This is the sixth edition of our annual report," the authors begin. "It is also the bleakest." The carnage in media is "far from over." Media Recovery: Ad Buyers Less Optimistic Media Life Advertising buyers are growing increasingly pessimistic about President Obama's stimulus plan, according to a poll by Media Life. Many ad buyers agree that a prolonged ad recession will "accelerate the move from traditional media to lower-cost, more accountable media." News Corp Exec Shuffle Baffles TV Industry TV Week Last week's News Corp. executive shakeup came as a shock to television industry insiders. The ouster of Fox Entertainment chief Peter Liguori is "shocking." One network exec says that the jockeying for power is already intense. "The place resembles Iraq after the fall of Saddam." Comcast, Sony to Open Joint Retail Store Philadelphia Inquirer Comcast and Sony are teaming up to open a retail store, Sony Style Comcast Labs, housed in Comcast's new headquarters tower in Philadelphia. Additional outlets are possible. The goal is to "demystify technology" and offer "a sneak peek of what's next." Old Media Execs Don't Get It, AOL Chief Says MediaPost Most traditional media professionals don't understood digital media, says outgoing AOL chief Randy Falco. "Having spent two years at AOL, I would love to be able to go back to that industry knowing what I know. There are a lot of misconceptions about digital media." News Corp Exec May Be Murdoch's New No. 2 Los Angeles Times Rupert Murdoch, who turns 78 this week, is announcing management changes at his Fox entertainment business. Low-key Fox movie exec Peter Rice is being put in line to be Murdoch's No. 2, spearheading his News Corp. media empire in Hollywood and on Wall Street. Murdoch Unit Buys Rival After Settling Suit New York Times News Corp. unit News America Marketing, which produces coupon inserts and sells advertising in supermarkets, is acquiring rival Floorgraphics for an undisclosed sum. News Corp. settled a lawsuit earlier this week with the firm, which had accused it of anticompetitive behavior. Time Warner Ousts AOL Chief, Hires Googler Washington Post Time Warner is replacing AOL CEO Randy Falco with Google senior VP Tim Armstrong, who will move the Internet company "into the next phase," says CEO Jeff Bewkes. Falco had joined AOL in 2006 with the mandate of transforming it into an online advertising business. Media Moguls Drop in Forbes Billionaire List Hollywood Reporter Most of the richest people in media are seeing their net worth drop amid the global recession, according to the new Forbes list of world billionaires. Rupert Murdoch's net worth has declined by more than half. Sumner Redstone and Barry Diller are just "hanging on." Big Media May Abandon Digital Divisions TechCrunch Major media companies may no longer need to operate separate digital divisions. Digital revenues at Disney, Viacom, NBC, and News Corp. are now spread across many different businesses. Digital operations are said to be "transitioning to the business-building mode." Media, Tech Dealmakers Still Eye Startups CNBC The Montgomery Tech Conference in Santa Monica is attracting reps from the likes of Disney and News Corp., who are eyeing startups despite the grim reality on Wall Street. Among the firms generating buzz: Hydra, a fast-growing, cost-per-action advertising network. Media Companies May Face Debt Default Reuters Moody's, the corporate credit ratings agency, is publishing a list of companies it thinks are at most risk of defaulting on their debt. Several media companies are on the list. They include: Allbritton, American Media, Blockbuster, Emmis, MediaNews, Sirius XM Radio, Univision. Sony to Cut Nearly 350 Jobs in Studio Associated Press Sony Pictures Entertainment, the movie studio subsidiary of the Japanese electronics maker, is laying off nearly 250 people and eliminating nearly 100 open positions in an effort to cut costs. The studio cites declines in television syndication, DVDs and advertising sales. Murdoch to Buy Another NY Newspaper New York Observer Rupert Murdoch's News Corp. is acquiring the Brooklyn Paper, a 31-year-old independent weekly newspaper. In 2006 Murdoch purchased a rival group of newspapers, the Courier-Life chain, which publishes 12 papers in Brooklyn. Murdoch is seen to be "cornering the market." Disney Launches Ultimate Fan Web Site AFP Disney is launching a Web site billed as the "premier online destination for Disney fans." The new site, called D23, offers breaking Disney news and video clips from classic Disney films. A $75 membership fee gives subscribers an online magazine and other perks. News Corp's Chernin May Nab Ex-NBCer Los Angeles Times Katherine Pope, the former head of Universal Media Studios, is talking with Peter Chernin about joining the outgoing News Corp. exec when he launches his new production company. Pope, as head of NBC's television studio, helped shepherd "30 Rock." Report: Media Ad Revenue Peaked in '07 Hollywood Reporter U.S. media revenue from advertising declined 4.2% last year and will decline another 12% this year, then as much as 7% in 2010, according to the Jack Myers Media Business Report. As ads for several "old media" categories decline, digital and online are showing growth. Media, Retail May See Painful Shakeout Reuters The media and retail industries are the most desperate for investor cash, according to financial advisors. However, they are least likely to get it, which could lead to a painful shakeout for the weakest companies. Media is "too risky," thanks to the upheaval caused by the Internet. Murdoch: An 'Old Media' Baron After All GigaOm New technologies appear to be undermining News Corp.'s vast print and television holdings. The company's MySpace is seeing a decline in revenue and operating income. Rupert Murdoch is "looking like an old media baron -- which he may have been all along." Media Giants Eye 'Weak Prey' for Deals Broadcasting & Cable Media mergers and acquisitions could pick up in the next few quarters as companies like Time Warner and Google "comb the jungle for weakened prey." Acquisition rumors are circling around NBC Universal, Yahoo and AOL, among others. "Cash is king, not content, right now." Time Warner's 'Watchmen' Falls Short Wall Street Journal The Warner Bros. brooding, superhero thriller "Watchmen" took in more than $50 million at the box office this weekend, but the R-rated, comic-book adaptation fell short of hitting the kind of numbers that the studio hoped would turn it into the next "Dark Knight." Viacom-Led Epix Channel Faces Trouble Los Angeles Times Epix, the forthcoming Viacom-Lions Gate-MGM movie channel, is having trouble securing distribution with cable and satellite TV companies. Carriers are skittish about adding a pricey new network during a recession. In response, Epix could turn to online pathways into the home. Vivendi: Unemployment May Hurt Media Biz Bloomberg Vivendi CEO Jean-Bernard Levy says he is concerned about the effect of jobless rates on the media business. "My biggest fear is unemployment rates are going up." The U.S. unemployment rate jumped in February to 8.1%, the highest level in more than a quarter century. Quadrangle Names Principal After Rattner New York Times The Quadrangle Group, the media-focused private equity firm, is announcing several promotions, including exec Amanda Siegel to principal. Quadrangle until recently was led by Steven Rattner, who is now a senior adviser to the U.S. Treasury Department on the auto industry. Goldman Sachs Media Banker Ravitch Exits Wall Street Journal Goldman Sachs standout media banker Joseph Ravitch is retiring from the firm. The departure is seen as a blow to Goldman's media group, which has grown into a ubiquitous player in the world of media deals. Ravitch is weighing opportunities, as deals grow "relatively scarce." Emmis Cuts 105 Jobs Amid 'Shifting Realities' Indianapolis Star Emmis Communications is laying off 7.5% of its work force, aiming to put the Indianapolis-based company in a better position "for shifting global and industry realities." The cuts amount to 91 full-time and 14 part-time positions across Emmis's corporate, radio and publishing divisions. Media Layoffs: Hey, It Could Be Worse Hollywood Reporter Layoffs in the media business aren't coming close to the carnage seen in other sectors, says outplacement firm Challenger, Gray & Christmas. While 7,453 jobs were lost in media in the first two months of 2009, retail cut 72,727 jobs and the automotive industry slashed 70,058. CBS May Have to Borrow to Pay Off Debt Bloomberg CBS may face an $893 million funding gap for bonds maturing next year, even after slashing its dividend by 81% to save cash, according to Barclays Capital analyst Scott Shiffman. CBS may have to sell new debt to help pay off $1.4 billion of bonds due in 2010, he says. Bewkes: Time Warner May Spin Off AOL BusinessWeek Jeff Bewkes, CEO of Time Warner, on plans for AOL: "We are continuing to explore multiple options, including combining AOL with other businesses -- or even a spin-off of all or some of its parts. ... We're more focused on creating content. That is what we know how to do best." Redstone Resisted CBS 80% Dividend Cut Crain's New York Sumner Redstone, CBS executive chairman, is said to have resisted other board members and delayed the broadcaster's 80% dividend cut -- jeopardizing the company's well-being -- because of his own money woes. A CBS spokesman declines to comment. Murdoch Presented Award by Hugh Jackman WNYW At the National Human Relations award dinner in New York, actor Hugh Jackman presented the top honor to News Corp. chief Rupert Murdoch, for his "extraordinary philanthropic work around the world." The award was sponsored by the American Jewish Committee. Media Buys Are Attracting Debt Investors New York Post Investors like Carl Icahn, Charlie Ergen, Carlos Slim and John Malone are said to be buying up media companies' debt not to save struggling firms, but to generate high yields or position themselves to have a voice in a potential bankruptcy or to gain control of a business on the cheap. Media Giants Back Personalized ZillionTV Reuters Disney, NBC Universal, News Corp., Time Warner and Sony are providing content to a new personalized television service called ZillionTV, which will offer on-demand content via high-speed Internet. The service will allow viewers to "personalize" advertising categories. Hearst Heirs Fight Over Control of Assets Los Angeles Times Hearst family members claim that billionaire Phoebe Hearst Cooke, 81, no longer has the ability to handle her finances. Cook is the granddaughter of media legend William Randolph Hearst. Her twin brother, Hearst chairman George Hearst Jr., may take control of her assets. Time Warner, Adobe in New-Media Alliance World Screen Time Warner is teaming up with Adobe Systems to incorporate the firm's Flash online-video software into the Internet platforms of HBO, Turner Broadcasting System and Warner Bros. Entertainment. HBO is said to be working on a plan to give subscribers access to its content via PC. Disney Envisions Online Subscription Club Dow Jones Disney Bob Iger says he could see the media giant creating an online subscription club for its movies and televisions shows at some point as a way to leverage its brand on the Web. "From our perspective, the computer is a very, very important place to entertain people." 'TV Everywhere' Plan Gains Media Momentum Associated Press Comcast, DirecTV, NBC Universal, Viacom and News Corp. are among the media companies saying they are receptive to the new, so-called "TV Everywhere" industry initiative. The effort aims to give subscribers exclusive online access to television shows. Sony May Cut 300 Jobs as DVD Sales Slump Los Angeles Times Sony Pictures Entertainment, grappling with slumping DVD sales and a worsening economy, is said to be planning to cut some 300 jobs, or about 4% of its workforce, through layoffs and by eliminating open positions. The cuts could come as early as next week. IAC Former Exec Genachowski to Head FCC MarketWatch As expected, President Obama is naming Julius Genachowski as chairman of the U.S. Federal Communications Commission. Genachowski is a former exec with Barry Diller's IAC/InterActiveCorp and an investor in tech startups. His grasp of the Internet "may be key for an era of change." Time Warner's Bewkes to Mull Acquisitions Dow Jones Time Warner CEO Jeff Bewkes says the media company will consider making acquisitions that do not present "stupid prices and execution risks." Also: While the Time Inc. magazine division is translating well online, separating it from the rest of the company could "make sense." Viacom's Dauman Says MTV is 'Still Vibrant' MediaPost MTV's recent ratings hurdles can be attributed in part to the poor performance of reality competition series in repeats, says Viacom CEO Philippe Dauman. "We are aiming to have more diverse genres of original programming." He adds: MTV is "still an extremely vibrant brand." CBS's Moonves: Networks May Sell Fewer Ads Bloomberg U.S. television networks may sell fewer advertisements before the start of the 2009-2010 season, according to CBS chief Les Moonves. Prices for such "upfront" ads are expected to rise. He adds that CBS is producing fewer pilot TV programs to cut costs. Time Warner Plots 'TV Everywhere' Initiative Advertising Age Time Warner CEO Jeff Bewkes has a plan to put all cable programming on the Web in places such as Hulu, MySpace and even YouTube. To get it, however, consumers must subscribe to a pay television service. The "TV Everywhere" drive is intended to be an industrywide effort. Media Biz Weakness Illustrated in New Reports The Deal PricewaterhouseCoopers is issuing a report gauging how the economic downturn will affect media business fundamentals. Companies are expected to continue to divest non-core assets. Veronis Suhler Stevenson is forecasting spending on media to drop 0.4% in 2009. Adult Entertainment Has Its Napster Moment San Francisco Chronicle Adult entertainment is not only seeing its DVD sales plummet as more consumers go online, it is also having its own version of a Napster moment. So-called "tube sites" -- named for their emulation of YouTube -- are eating away at the $13 billion industry. News Corp Eyes Murdoch's Son for Promotion Guardian News Corp. chief Rupert Murdoch is said to be planning to relinquish substantial powers to son James and for him to take a major role in the United States. A management shakeup is expected following last week's announcement that No. 2 exec Peter Chernin will step down in June. Viacom/CBS: Redstone 'Still Vulnerable' in Deal LAT / NYDN Sumner Redstone is entering a deal with bankers to restructure his family company's huge debt. The agreement still requires that the $1.46 billion debt be paid by the end of next year. Also: Redstone, 85, is dating a former flight attendant, according to a Viacom spokesman. Sony's Stringer Clears Out Old Guard in Shakeup Times of London Sony CEO Howard Stringer is taking on the role of president amid a restructuring aimed at ridding the Japanese giant of its "old guard" to better fight the global consumer slump. Some analysts believe that Sony's music and films represent a business model from "an era that has gone." Disney's Jonas Bros Fail to Meet Expectations USA Today "Jonas Brothers: The 3D Concert Experience" debuted at No. 2 in U.S. movie theaters this weekend, bested by "Tyler Perry's Madea Goes to Jail," which held the top spot for the second straight week, surprising analysts. Perry's film is a hit among audiences "Hollywood ignores." NBC Universal Parent Cuts Quarterly Dividend MarketWatch General Electric is slashing its quarterly dividend by nearly 68%, a move expected to save about $9 billion a year. The parent of NBC Universal has been paying a regular dividend for more than 100 years. Shares of GE have fallen nearly 70% since mid-September. Murdoch May Face Pressure to Sell TV Station New York Daily News The Rev. Al Sharpton, protesting the New York Post's monkey cartoon, is meeting with the U.S. Federal Communications Commission about News Corp.'s cross-ownership waivers. WWOR, Channel 9 in New York, has a "temporary" waiver that could be vulnerable to a challenge. Time Warner Sets Date for New Content Focus Dow Jones Time Warner says it will complete the spinoff of cable unit Time Warner Cable on March 27. The spinoff is intended to transform the conglomerate into a company more focused on movies, TV programming and magazines and to make both companies more competitive. Liberty Media Mulls Asset Sales, Share Buybacks Reuters John Malone's Liberty Media is working on plans to buy back more shares and get rid of unfavorable assets, in a bid to boost the value of its tracking stocks. The move is the latest sign that Malone, a cable television pioneer, aims to become a more active operator again. Murdoch's Mom Upset by Her Son's 'Values' Sydney Morning Herald Elisabeth Murdoch, who is turning 100, says she has had many differences with her son Rupert over the years. She told him she didn't approve when he bought the British tabloid News of the World. He responded: "Mum, lots of people have empty lives and want something entertaining to read." Murdoch Mulls Buying NY Times, LA Times Variety Does Rupert Murdoch want to follow News Corp.'s $5 billion buyout of Dow Jones by gobbling up the struggling New York Times? The answer appears to be yes. What's more, incredulous News Corp. insiders say Murdoch is also talking about a making a play for Tribune's Los Angeles Times. News Corp Reorg May See More Execs Exit Los Angeles Times Rupert Murdoch plans to use the exit of lieutenant Peter Chernin to assume more direct involvement in operations and shuffle management at News Corp., which is expected to trigger the departure of some top execs. Only four to six division heads will end up reporting to Murdoch. Elizabeth Murdoch Snubs Dad's Board Offer Fortune Rupert Murdoch's daughter Elisabeth is said to be turning down a spot on the board of News Corp. Murdoch's interest in having her rejoin the family business adds to the intrigue surrounding Peter Chernin's exit and the question of who will eventually run the media giant. Viacom Should Hire Chernin, Analyst Says Television Broadcast Pali Research analyst Rich Greenfield recommends that Viacom hire News Corp.'s exiting Peter Chernin. "Hiring Chernin would be the smartest move Sumner Redstone could make." Investors "loath Viacom's senior management and would welcome a trusted exec." Murdoch is Making 'His Crazy Last Stand' Newser Rupert Murdoch "has guts," says biographer Michael Wolff, to allow News Corp. No. 2 exec Peter Chernin, the manager of the company's biggest revenue streams, to walk away. Murdoch, at 78, is "making just about the most counterintuitive, even dopey, move you could make." News Corp No 2 Exec Chernin to Exit in June Deadline Hollywood News Corp. president Peter Chernin plans to leave the media giant after failing to reach a new contract with chief Rupert Murdoch. Hollywood agents say that Murdoch son James may replace Chernin. But company insiders insist that such a move is "not in the near future." Murdoch Memo: News Corp to Become Leaner Los Angeles Times Peter Chernin's exit from News Corp. brings an "opportunity to streamline" management, says chief Rupert Murdoch, in a memo to employees. Plans will be unveiled in the coming months. The moves will "define the character of our company for decades." FCC Asked by Sharpton to Probe News Corp WPIX Rev. Al Sharpton, the civil rights leader, is calling on the U.S. Federal Communications Commission to review the waiver extended to News Corp. for cross-media ownership. The move continues the protests over the cartoon of a monkey published last week in News Corp.'s New York Post. Time Warner: 'No Big Buys; Fire AOL Execs' Barron's Pali Research analyst Richard Greenfield has some advice for the board of Time Warner: Don't make any big buys. "Investors fear a transformative acquisition." Also: "Stop investing in any part of AOL, and terminate its current management team. It's time for a major shake-up." Media to See Pain as Mobile, Internet Grow New York Times Veronis Suhler Stevenson, the media-focused private equity firm, is releasing an update to its five-year communications industry forecast, showing spending in media companies is likely to decline .4% for the year. Internet and mobile services, however, are expected to see growth. Disney's Russian TV Venture Is Blocked Reuters Russia's anti-monopoly agency is blocking Disney's plan to create a free, Disney-branded channel to expand in the high-growth market. The anti-monopoly body says it rejected the venture after it was given false information by the parties applying to create Mo-TV Holdings. Quadrangle's Rattner Leaves for Treasury Role Wall Street Journal Steven Rattner, co-founder of private-equity firm Quadrangle Group, is joining the U.S. Treasury Department as a counselor to Timothy Geithner, advising him on the troubled automobile industry. Quadrangle invests in media and communications companies. Yahoo Exec Departs to Help 'Transform' Hearst Reuters Neeraj Khemlani, the head of Yahoo's news and information division, is jumping ship to Hearst, amid speculation that the Internet company is on the brink of a management reorganization. At Hearst, Khemlani will oversee a "digital content transformation" across the media company. And The Loser Is ... The Media Conglomerate Financial Times Time Warner, News Corp., Disney and other media giants are witnessing the slow death of one of their most profitable revenue streams -- DVDs. The loss is "a horror movie for Hollywood." While digital distribution is growing, "it is still a nascent market." News Corp 'Rescues' Best Picture 'Slumdog' Bloomberg "Slumdog Millionaire," the big winner at this year's Academy Awards, almost didn't get distributed. The film, made for about $15 million with a cast of unknowns, was picked up by News Corp.'s Fox Searchlight after Time Warner closed its small-picture divisions. News Corp's 'Slumdog' Favored for Oscar Bloomberg "Slumdog Millionaire" has a 90% chance of winning the Academy Award for best picture, according to Intrade.com, a site where players buy shares in a movie's Oscar prospects. "Slumdog," from News Corp.'s Fox Searchlight, has the best odds of winning since "Chicago" took the award in 2002. Disney Acquires Kids Web Site Kerpoof Hollywood Reporter Disney is buying Kerpoof Studio, a creator of online tools that lets kids make artwork, write stories and even create short movies. Kerpoof's technology is being integrated into Disney.com, allowing users to create artwork around Mickey Mouse and other studio characters. Cable Giants Explore Offering TV Online Wall Street Journal Comcast and Time Warner Cable are in talks with Viacom, NBC Universal and other TV-network owners to explore a solution to the threat of online video: putting cable shows online, but accessible only to cable subscribers. Such Web services are expected to lure new subscribers. Time Warner Drops Cable in Internet Battle Reuters Time Warner says its spinoff of Time Warner Cable will be complete by the end of the quarter, breaking up a two-decade marriage of content and distribution. The combination has fallen out of favor on Wall Street as media giants compete with faster-moving Internet companies. Media Belt-Tightening Squeezes Workers Associated Press Thousands of employees at U.S. newspapers and broadcasters are facing more layoffs, wage freezes and pay cuts as their cost-cutting owners scramble to survive an advertising drought that is growing even more dire. Google and Craigslist are often blamed for the industry's woes. Hollywood May Cut Pay as DVD Sales Drop Bloomberg Hollywood studios may change the way they pay actors, directors and producers as DVD sales decline, says Sony Pictures chief Michael Lynton. "It's not so much cutting salaries but making sure our partners share in the risk." Studios can no longer count on DVD sales. Disney Won't Be 'Happiest Place on Earth' Reuters Disney plans to reorganize operations at its two U.S. theme parks and "eliminate redundancies," aiming offset the effects of the economic downturn. The company declines to specify how many jobs will be cut. Disney recently offered buyouts to 600 park execs. CBS to Cut Dividend, Jobs After Ad Loss Dow Jones CBS is reporting a 52% decline in fourth-quarter earnings and announcing plans to slash its dividend by 81%, as the economic downturn takes a big bite out of advertising revenue. The company also plans to make job cuts in its television, radio and billboard businesses. GE Chief Immelt Waives $12 Million Bonus Financial Times General Electric's Jeff Immelt is said to be waiving his right to collect bonus and performance-based pay that would have netted the CEO more than $12 million. The decision comes as he confronts a deepening recession that has crimped earnings at the parent of NBC Universal. Time Warner Cable Names Britt Chairman MarketWatch Time Warner Cable is naming Glenn Britt as chairman to replace Don Logan, who is stepping down. The appointment will be effective after the company's separation from Time Warner, which is expected by the end of the quarter. Britt will continue as president and CEO. News Corp's President Set to Jump Ship? BusinessWeek Odds are Peter Chernin, Rupert Murdoch's No. 2 man at News Corp., won't be leaving. He waited to sign his most recent employment contract until the last one had actually expired. However, if he exits, Chernin will be sitting "on top of a pile of money," judging from his retirement package. Malone Poised to Become King of Satellite BusinessWeek By investing up to $530 million into ailing satellite radio company Sirius XM, John Malone's Liberty Media is poised to hold sway over a stable of companies that use satellite to deliver TV, radio, and broadband to 37 million subscribers. Liberty and Sirius XM are expected to "talk merger." Hollywood Struggles to Prosper on the Web Reuters After more than a decade of hype about the Internet being the next great stage for mass entertainment, it remains largely dominated by amateurs. Many actors and producers continue to balk at Internet projects, saying they have meager revenue potential with uncertain financial models. Movie Studios Eye Internet Distribution BusinessWeek DVD sales are declining, largely because audiences now enjoy a range of other options, such as watching movies and TV shows online. Hollywood studio bosses are scrambling to rethink their entire business model and prepare for distribution of films on the Web. Comcast Gets a Boost from Video, Digital Associated Press Comcast's revenue and adjusted earnings are beating Wall Street estimates, helped by growth in the cable-TV provider's video segment. The company lost 233,000 basic subscribers during the fourth quarter but gained 247,000 digital customers, who pay more for service. Media Giants' Online Piracy Trial Begins Reuters The trial of the creators of The Pirate Bay, the so-called "world's largest facilitator of illegal downloading," is kicking off in Sweden. Warner Bros., Sony and Universal are among the media companies seeking damages of $12 million. The four defendants could face two years in prison. Liberty Media Takes 40% Stake in Sirius XM Associated Press Sirius XM Radio and Liberty Media say they have signed a deal in which Liberty will invest $530 million in the financially struggling satellite radio company. The investment will save Sirius XM from possible bankruptcy and give John Malone's Liberty a 40% equity stake. Comcast Investors Clamor for More Cash Bloomberg Comcast investors won stock buybacks and their first dividend in almost a decade last year by putting pressure on CEO Brian Roberts. Now they're pushing for more. Comcast "has billions in cash and the stock is near an all-time low. Now's the time to buy back." Murdoch's 'Slumdog' May Get Oscar Bump Bloomberg "Slumdog Millionaire," from News Corp.'s Fox Searchlight unit, is headed for a $56 million Oscar box-office bump, say industry observers. The feel-good "Slumdog" is attracting bigger post-nomination audiences than downbeat rivals, including "Benjamin Button" and "The Reader." Traditional Media Is Out, Analysts Say Reuters / The Wrap Dismal quarterly results and grim forecasts by U.S. media companies has investors lowering 2009 expectations and looking to smaller players with less exposure to DVDs and advertising. CBS could turn in the weakest performance among the media giants this week. News Corp: Will Chernin Leave Murdoch? Los Angeles Times The contract for Rupert Murdoch's chief lieutenant, News Corp. president Peter Chernin, expires June 30, and the two execs have been locked in negotiations for months. "We fear the longer time goes by, the less likely he is to renew his contract,” says one Wall Street analyst. Viacom Chief Joins Media Summit Lineup World Screen Viacom CEO Philippe Dauman is being added to the keynote speaker lineup of the 2009 Media Summit New York in March, joining Jeff Zucker of NBC Universal and Steve Ballmer of Microsoft. The sixth year of Media Summit New York is expected to draw more than 1,000 attendees. Disney Goes Where (It Hopes) The Boys Are Forbes The Disney Channel has the tween girl market cornered, thanks to hits like "Hannah Montana." Now the company wants to do the same with boys with the new Disney XD cable channel and Web site, debuting Friday. Corporate cousin ESPN will help develop programming. Time Warner Unlikely to Fight for Game Maker Forbes Time Warner owns a 20% stake in "Tomb Raider" owner Eidos, the videogame maker that is being acquired for $120 million by Japanese game company Square Enix. But Time Warner is seen as unlikely to enter a bidding war with the "more determined" Square Enix. Sirius XM Set for Malone-Ergen 'Cage Match' Bloomberg Sirius XM Radio CEO Mel Karmazin is pitting media billionaires John Malone and Charles Ergen in a "cage match" to save his satellite-radio company. Malone and Ergen "would both be satisfied to put down the other in a public way," analysts say. "This is media theater at its best." Redstone Near Deal on Debt, Succession Bloomberg Sumner Redstone says an agreement between his holding company and its creditors is "within reach." The Viacom/CBS chief could reach a deal to refinance $1.6 billion in debt by the end of February. A deal is expected to help resolve succession questions surrounding his daughter Shari. Viacom Profit Drops; MTV Needs 'Repairing' MarketWatch Viacom is reporting that its fourth-quarter profit fell 69%, hurt by weakness in advertising sales at MTV and other cable channels, and ad revenues are likely to get worse in 2009 before they get better. Also: Job 1 at Viacom is "repairing the image of the famous brand MTV." CBS May Cut Dividend Despite Upbeat Talk Wall Street Journal CBS, which will report earnings next week, could announce a reduction of its dividend. Such a move would acknowledge that despite upbeat statements by CBS boss Les Moonves, the company "needs to preserve cash" to meet $1.6 billion of debt obligations. Time Warner Gets OK to Spinoff Cable Unit Dow Jones The U.S. Federal Communications Commission is approving Time Warner's plan to fully separate its Time Warner Cable unit. The spinoff is intended to transform the media conglomerate into one that is more focused on movies, television programming and magazines. DirecTV Owner to Seek Deal for Sirius XM New York Times Sirius XM Radio, the satellite radio giant that is on the brink of bankruptcy, is said to be in preliminary talks with Liberty Media, the conglomerate controlled by John Malone. A deal between Sirius XM and Liberty could create a battle with EchoStar for control of the company. Media Content, Once King, Now a Pauper Time Up until very recently, the prevailing wisdom among media analysts was that "content is king." Now, movies, television shows, magazines, radio programming and Internet content are being devalued. "No one knows to what extent content will be 're-valued' as the economy improves." Time Warner Hit from Valuation of Content Bloomberg Shares of Time Warner shares dropped nearly 8% in New York trading Tuesday after Sanford Bernstein analyst Michael Nathanson downgraded the media giant to "market perform" from "outperform," driven by declines at AOL and the Time Inc. magazine publishing unit. News Corp Sells Bonds to Tap Credit Market Bloomberg News Corp. is selling $1 billion in bonds, taking advantage of thawing credit markets to refinance debt and raise cash to fund operations. The funds will be used for general corporate purposes, the company says. News Corp. recently reported its first quarterly loss in more than three years. Sirius XM Radio Preps for Bankruptcy Filing New York Times Sirius XM is working with advisers to prepare for a possible bankruptcy filing within days. The move could put pressure on satellite-TV giant EchoStar, which owns much of the satellite-radio company's debt. Sirius would be one of the largest companies to file for Chapter 11 so far this year. Clear Channel Debt Sparks Bankruptcy Talk Wall Street Journal Clear Channel's debt is trading at sharply lower levels after it announced it was tapping $1.6 billion in credit, as investors grow more skeptical about the radio and outdoor advertising giant's ability to pay back its loans. Debtholders' demands could send the company into bankruptcy. News Corp's HarperCollins to Dump Collins Crain's New York Book publisher HarperCollins is folding its nonfiction-oriented Collins division and beginning an evaluation of other imprints and operations that will "result in a reduction in work force," according to CEO Brian Murray. He cites "market uncertainty" and "soft revenues" for the move. Media Giants Grapple with Consumer Shifts MarketWatch Changing consumer behavior is seen as the biggest thorn in the side of the media giants. "Competition for people's time is increasing," observes Disney chief Bob Iger. "This clearly has had an impact on broadcast television and may have a long-term potential impact on the DVD business." 'DisneyWorks' Deal Offers Cross-Media Opps Fortune Disney is entering an exclusive long-term distribution pact with DreamWorks film studios, ending co-founder Steven Spielberg's 30-year relationship with NBC Universal. The deal is expected to provide new material that can be pumped through Disney's "vast cross-media machinery." LiveNation-TicketMaster to Shake Up Music Biz MarketWatch Live Nation and Ticketmaster are agreeing to merge in a $2.5 billion deal that will combine the top U.S. ticket provider, artist management company and concert promoter under one roof, headed by Barry Diller. The deal is expected to impact "the way the music business works." News Corp Outlook Unaffected in Downturn Associated Press Deteriorating business at News Corp. will not affect the media giant's outlook partly as a result of its strong cash reserves, says Moody's Investors Service. The company, with its history of financial prudence, is "well-positioned to weather the downturn." Media Value Declines May Be Permanent Dow Jones Media titans are acknowledging that advertising dollars may never return in full force as the Internet leaves audiences increasingly fragmented. Declines in the value of media businesses could be permanent, analysts say. News Corp. chief Rupert Murdoch admits: "We may never return to record levels." Media Industry Jobs Slashed in Recession Ad Age The U.S. media and advertising industry cut 65,100 jobs in 2008, according to an analysis by Advertising Age. Media's biggest loser last year: newspapers, which slashed 31,200 jobs. Broadcast TV cut 5,100 jobs. The bright spot: Internet-media companies, which added 5,400 positions. News Corp: 'No Clear Plan' for Challenges Financial Times News Corp.'s mix of assets, including newspapers and local television stations, has left the company more vulnerable than large rivals such as Disney and Time Warner, analysts say. News Corp. has "no clear plan" for dealing with its most structurally challenged businesses. Disney to Nab Spielberg from NBC Universal Financial Times Filmmaker Steven Spielberg is on the verge of announcing a six-year, 30-film distribution deal with Disney after the collapse of negotiations last week with NBC Universal's Universal Studios. The move will bring to an end Spielberg's 30-year relationship with Universal. Mobile, Ad Decline 'Most Disruptive' in Media MinOnline Mobile devices and shrinking advertising dollars are the most disruptive forces in today's media world, according to a survey of media execs by professional services firm KPMG. Also, most execs predict that advertisers will move much of their spending to social media in the next five years. Murdoch: We Will Survive as Weak Rivals Die Independent News Corp. is seeing the worst economic downturn since it was founded 50 years ago, says chief Rupert Murdoch. However, the media giant could emerge stronger as the recession picks off weaker rivals. "We may get lucky and not have as much competition at the end of it all." News Corp to Cut Jobs at Wall St Journal Dow Jones News Corp. is reporting a second-quarter net loss on $8.4 billion in write-downs, due to "the grim economic climate," says chief Rupert Murdoch. The company is cutting costs and jobs "where appropriate." For example, the Wall Street Journal is cutting about 25 newsroom jobs. Redstone Making Progress with Refinancing Bloomberg Sumner Redstone is said to be making progress in talks to refinance debts of $1.6 billion that forced him to sell stakes in CBS and Viacom in October. A deal could come before the end of the month and also resolve succession questions between Redstone and his daughter Shari. Diller Seeking 'Transformational' Acquisition Forbes Cash-rich InterActiveCorp chief Barry Diller is said to be hunting for a "transformational" acquisition. Analysts say they wouldn't be surprised if Diller's next deal is "on the scale of a YouTube." Diller is reportedly on the lookout for a Chinese version of the Huffington Post. Zucker: NBC Universal Seeing 'A Better Year' Newsweek NBC remains in fourth place among the major broadcasters. Still, NBC Universal CEO Jeff Zucker is upbeat: "I don't think there's a media company out there that's had a better year." NBC's losses, he points out, have been offset with the success of sister networks like CNBC and Bravo. Media Layoffs Rise Amid Tech Disruption Hollywood Reporter Announced media layoffs for January 2009 came in at 4,446, up from the already-elevated 4,283 reported for the same month last year, according to outplacement firm Challenger, Gray & Christmas. "Unfortunately," says CEO John Challenger, "there is no light at the end of the tunnel." Big Media Losing Battle with Digital Pirates New York Times Media companies appear to be losing the battle over illicit digital copies of television episodes and films. Illegal downloading and streaming is increasingly becoming a mainstream behavior. NBC Universal exec Richard Cotton says: "Young people conclude that if it's so easy, it can't be wrong." Media Giants: Internet May Kill the Video Star Wall Street Journal Media CEOs say they are seeing their audiences move toward free or lost-cost Web video -- both television and movies -- and away from traditional delivery methods, such as cable television and DVDs. More young people are saying: "All I need is broadband." Time Warner Cable to Lay Off 1,250 Staffers Associated Press Time Warner Cable plans to lay off 1,250 people in the face of slowing growth at the second largest U.S. cable operator. The New York-based company is reporting a net loss of $8.16 billion in the fourth quarter. Time Warner expects to save $90 million a year from the job cuts. Google Wants Time Warner to Buy Back AOL San Francisco Business Google is said to be exercising a right to force Time Warner to buy back the search giant's stake in AOL or take the Internet unit public. Google invested $1 billion in AOL in 2005; the stake's value is now believed to be worth about $250 million. Time Warner says it is "evaluating its options." Media 'Unprepared' for Internet, Recession Crain's New York Media bigwigs speaking at Crain's Future of New York City conference say they weren't prepared for dealing with a recession and the transition to the Internet simultaneously. It's "almost a double whammy," admits NBC Universal chief Jeff Zucker. "Nobody expected" this. Disney Sees 'Secular Changes' in Consumers Reuters Disney is reporting sharply lower-than-expected quarterly profit, as the global downturn impacts advertising and other areas. CEO Bob Iger says he sees "secular changes" in consumer behavior that could have long-term impact on broadcast television. Time Warner Reports Decline in Media Value MarketWatch Time Warner is reporting a massive $16 billion loss in the fourth quarter after writing down the value of the assets held by the company's cable operations, AOL and Time Inc. The dismal results add fuel to Wall Street's concerns that no relief is in sight for media companies in 2009. Media CEOs Paid More Than Tech Chiefs The Wrap The CEOs of Google and Amazon, who may have the best understanding of the media business in the digital age, aren't paid anywhere close to the old media guys. Disney's Bob Iger and CBS's Les Moonves "should take a lesson from the austere salaries of their new media counterparts." Time Warner: Prepare for Smaller Payout Bloomberg Time Warner is expected to tell investors tomorrow to lower their expectations for payouts from the $9.25 billion the media company will get through shedding its cable-systems unit this year. The company may spend much of the payment on share repurchases and hold on to the rest. News Corp 'Should Split Good, Bad' Assets Hollywood Reporter News Corp. would benefit by splitting up its assets, according to analyst Michael Nathanson of Sanford Bernstein. A "good News Corp." would comprise growing properties, such as MySpace. A "bad News Corp." would include newspapers and magazines. Disney Hit With Downgrade, Consumer Data Barron's Hit with a downgrade to a sell rating by Natixis Bleichroeder, and tarred by worries about consumer spending patterns, shares of Disney fell 3% Monday. U.S. consumer spending fell in December by a full percentage point -- a steeper downturn than had been forecast. Canwest Mulls Asset Sale to Raise Cash Canadian Press Canwest, one of Canada's largest media companies, could put Australia's Ten television network up for sale in an effort to raise more cash, as the company announces a strategic review. Canwest is looking at divesting non-core assets as it reviews "strategic alternatives." Media Industry Losing Value Despite Digital BtoB The media industry is shedding value overall, as the losses by traditional media businesses are not being offset by growth in new-media operations, according to a new study by consultancy Oliver Wyman Group. Media companies "risk becoming add-ons" to the telecoms. Media Employees Exit Industry Amid Layoffs Variety Layoffs and cutbacks in traditional print and broadcasting media are forcing some industry professionals to make career changes. Some journalists, for example, are leaving the profession to enter the clergy or drive trucks. One publishing exec says: "I'm 35 and I'm already obsolete." Media Giants Expected to Report Declines MarketWatch Wall Street analysts expect media conglomerates Disney, Time Warner and News Corp. to report declines in their latest quarterly reports this week, and will again look for indications that a lift in advertising revenue is on the horizon in 2009. They are not optimistic. News Corp Braces for Writedowns, Job Cuts Reuters News Corp.'s shares have fallen 67% in the past 12 months, underperforming peers such as Time Warner, Viacom and Disney. Investors are girding for sharper-than-expected profit declines and possibly severe job cuts at the Wall Street Journal and New York Post newspapers. Murdoch to Obama: Use Power for Change Australian President Obama should use his popularity to drive through policy changes, says News Corp. chief Rupert Murdoch, speaking at the World Economic Forum. Obama should resist pressure to protect industries from competition. "We must keep markets open." Big Media: Bad Economic News Forecast Hollywood Reporter With the recession deepening, Wall Street analysts are cutting their financial estimates for big media players, including News Corp., Disney and CBS. Analysts are using lines such as "no light at the end of the tunnel." The advertising slowdown is "affecting all sector biggies." News Corp: Chernin Seen Likely to Leave Barron's News Corp. shares are under pressure after Pali Research analyst Richard Greenfield slashed his rating on the stock from "buy" to "sell." He adds that it seems "increasingly likely" that News Corp. president/COO Peter Chernin will leave the company when his contract expires in mid-2009. Time Warner Cable Freezes Execs' Pay Bloomberg Time Warner Cable, the second-largest U.S. cable operator, will forgo raises for top execs this year as subscriber growth slows, hurt by the deepening recession. No raises will be given to employees at the VP level or above. Job cuts have not been discussed. Disney Lays Off Hundreds at ABC, ESPN Los Angeles Times Disney-ABC Television is laying off 400 people, citing the weakening economy. "This was not an easy decision," says group head Anne Sweeney. The news comes a day after Disney's ESPN said it would cut 200 jobs. More layoffs at ABC are anticipated in the coming months. Analysts: Movie Biz Damaged by Web Video Bloomberg Plunging DVD sales are threatening to reduce profit for studio owners Time Warner, Disney, Viacom and News Corp., and may force them to write down the value of their movies, according to analysts. "Making a movie just won’t be as profitable as it once was." Media Business Models the Talk of Davos New York Times The financial state of the media business is said to be a major topic of conversation at the World Economic Forum in Davos. One private-equity attendee asks: How can old media compete with Twitter and Facebook when it's "not even clear that they have for-profit models?" Time Warner: AOL to Lay Off 700 Workers AllThingsD Time Warner's AOL online unit has announced layoffs of 700 employees, or 10% of its work force, due to the weak economy, a drop in advertising and structural changes. "Our goal is to provide our core businesses the resources they need to thrive," said CEO Randy Falco. Disney in Lawsuit Over 'Hannah Montana' TMZ Writer Richard Fronduto has filed a lawsuit against Disney Channel, claiming that its hit series "Hannah Montana" was inspired by his script. Fronduto said that Disney liked his script so much that they asked him to turn it into a two-hour pilot that became "Hannah Montana." Murdoch: Crisis Calls for 'Drastic Action' Bloomberg News Corp. chief Rupert Murdoch said there is no hiding from the worsening global economic crisis, and stressed the need for quick and "drastic action" to turn the tide. People worldwide are "depressed and traumatized," Murdoch said at the World Economic Forum in Davos, Switzerland. Time Warner, AOL Deny Plan to Sell Bebo TechCrunch Time Warner's AOL has been reported to be considering selling Bebo, the social network it acquired only a year ago. Bebo has performed "much worse than it had hoped." However, a corporate communications rep at AOL has said: "There is no truth to this rumor." Viacom, Partners to Launch Channel Online CNET Epix, the new premium movie channel from Viacom's Paramount Pictures, MGM and Lions Gate, is expected to debut in May as an on-demand Web site five months before its television launch. The venture has not yet landed a distribution deal with any cable or satellite TV provider. News Corp: Who Will Succeed Murdoch? Business Day News Corp. chief Rupert Murdoch, who turns 78 in March, is said to have "hazy" succession planning. Murdoch dying in office without an anointed family heir could force News Corp.'s board to appoint a new CEO itself -- and that person might not be any of Rupert's offspring. CBS May 'Drastically' Reduce Dividend Bloomberg CBS, the television broadcaster controlled by Sumner Redstone, may "drastically" cut its dividend to preserve its credit rating, according to analyst Michael Nathanson at Sanford C. Bernstein & Co. "Local ad trends continue to shock us with unimaginable rates of decline." News Corp Hit Hard in Global Crunch Sydney Morning Herald Rupert Murdoch's News Corp. is "being hit from all sides" as the global financial crisis intensifies, says Deutsche Bank. The bank forecasts a 22% slide in the company's earnings this year, citing the downturn in U.S. advertising. Media companies are expected to "step up staff cuts." Deloitte Issues 2009 Media Predictions World Screen The rising cost of hosting user-generated content online is among the key issues the media industry will be grappling with this year, according to forecasts from Deloitte. Profiting from that content "remains a challenge." Also, mobile advertising will be "arena to watch." Reed Elsevier Chief Hommen to Resign RTTNews Reed Elsevier chairman Jan Hommen will resign at the London-based publisher's annual meeting in April. The company ended discussions last month with potential bidders for its Reed Business Information business publishing unit after failing to find an acceptable offer. Tribune: Cubs Sale Deal Faces Hurdles Chicago Tribune Although Tribune has ended its two-year auction for the Chicago Cubs by choosing a $900 million bid from Omaha's Ricketts family, there is talk that closing a deal will be no home run. With the economy in convulsions and Tribune in bankruptcy, "it's a daunting environment to get deals done." Martha Filets Stake in Omnimedia 39% New York Post Perhaps owning stock in Martha Stewart Living Omnimedia isn't a good thing. Founder Martha Stewart is dumping more than one-third of her shares in the company. Stewart resigned as CEO in 2003 after she was charged and eventually jailed for lying about a stock sale. Viacom/CBS Boss Redstone Finalizes Divorce Associated Press Media mogul Sumner Redstone is finalizing the divorce from Paula Fortunato, his wife of five years, documents show. Redstone filed for divorce in October, citing "irreconcilable differences." The pair had already negotiated a settlement and opted for an uncontested divorce. Obama Names Copps Acting Chair of FCC Washington Post President Obama is appointing Democratic commissioner Michael J. Copps as acting chairman of the U.S. Federal Communications Commission. The appointment is expected to be temporary. Julius Genachowski, Obama's tech adviser, is expected to be named the new FCC head. Viacom: Little Profit from 'Button' Oscar Nods Los Angeles Times "The Curious Case of Benjamin Button," from Viacom's Paramount Pictures, received 13 Oscar nominations, including best picture. Although more ticket sales are likely, the high costs of making, marketing and distributing the film mean that it could struggle to make much of a profit. NBCU Revenue Hit by Declines at TV Stations Dow Jones General Electric is reporting that its fourth-quarter net income fell 44%. "We expect 2009 to be extremely difficult," says CEO Jeff Immelt. At GE's NBC Universal, earnings fell 6.3% while revenue slid 2.7% as strong cable earnings were offset by declines at local stations. Disney Merges ABC Entertainment, Studios Dow Jones The Disney-ABC Television Group plans to merge its ABC Entertainment and ABC Studios units to streamline the creative process and "address the changing realities" of entertainment. The new unit, the ABC Entertainment Group, will be led by longtime ABC exec Steve McPherson. Tribune Picks Ricketts to Buy Chicago Cubs Chicago Tribune Tribune is favoring selling the Chicago Cubs to the billionaire Ricketts family. The family, which made its fortune building a discount stock brokerage, offered Tribune around $900 million. The Ricketts must still secure financing and win approval from Major League Baseball's owners. Obama: A 'One-Man Stimulus' for Media Biz Bloomberg Barack Obama attracted the largest television audience for a presidential inauguration since Ronald Reagan in 1981, according to Nielsen. Obama has become "a one-man stimulus package," spurring Web sites, publishers and television networks to promote products with his image. Time Warner's Parsons Named Citi Chairman CNNMoney Citigroup, the struggling financial titan that recently announced plans to split in two, is shaking up its board again, naming Richard Parsons as chairman. Parsons, who was chairman and CEO of Time Warner earlier this decade, and until recently was Citi's lead director, succeeds Win Bischoff. Viacom's 'Benjamin Button' Leads Oscar Noms Associated Press "The Curious Case of Benjamin Button," from Viacom's Paramount Pictures, is the leader among this year's Academy Awards contenders, with 13 nominations. Time Warner's "The Dark Knight," the largest blockbuster in years, scored recognition mostly in technical categories. Sony to Shut Japan TV Plant, Cut 2,000 Jobs Reuters Sony, which is expected to report its first annual loss in 14 years, plans to close one of its two Japanese television factories and cut 2,000 jobs. CEO Howard Stringer will announce the move at a news conference on Thursday, when he will also release a downgraded earnings forecast. Disney Offers Buyout Packages to 600 Execs MarketWatch Disney is offering buyouts to 600 execs at the company's U.S. parks and resorts division in an effort to reduce costs during the recession. The company is giving the affected employees until Feb. 6 to decide whether to take the buyouts and that layoffs afterwards are possible. Time Warner Cuts Nearly 800 Jobs at Studio Associated Press Time Warner's Warner Bros. movie studio is cutting nearly 800 jobs, or 10% of its global work force, and is examining further cost reductions. Time Warner says it will post a loss for the year due to a $25 billion write-down of its cable, magazine and Internet assets. Clear Channel Cuts 1,850 Jobs in Radio, Outdoor Bloomberg Clear Channel, the largest U.S. radio broadcaster, is cutting 1,850 jobs, or 9% of its work force, six months after being taken private in a $17.9 billion buyout by private-equity firms Bain Capital and Thomas H. Lee. The company is facing an "unprecedented time of distress." Sony: Stringer Battles 'Old Guard' Managers Financial Times Tensions are rising within Sony over a restructuring aimed at cutting costs, with British-born CEO Howard Stringer pitted against an "old guard" of Japanese managers. News of the clash comes as the company prepares to announce a massive restructuring, including job cuts. Microsoft Sells Off Entire Stake in Comcast Barron's Microsoft is disclosing that it has sold its entire 7.3% stake in Comcast, the biggest U.S. cable television operator. Twelve years after Microsoft's initial investment in Comcast, the software giant's "vision of a Windows-based gateway to the television still hasn't materialized." Internet M&As Fall with Media Valuations MediaPost After a year highlighted by Internet mega-deals in 2007, the total value of online media mergers and acquisitions fell by more than half to $16.9 billion in 2008, says Peachtree Media Advisors. "The media companies that were doing the buying have seen their own valuations go down." Media Go Ga-Ga Over Obama Inauguration Washington Post Several U.S. media outlets are holding parties and special events in the run-up to Barack Obama's inauguration. "We wanted to celebrate the key themes of the Obama era," says Huffington Post co-founder Arianna Huffington, who hosted 1,500 guests at a Newseum bash. Hey Obama, Economists See 4-Year Gloom Chicago Tribune The prospects for a U.S. recovery are so gloomy, economists say, that Americans may be slightly worse off in four years than they are now, despite the huge repair efforts under way. The U.S. economy "would be lucky" to grow 2% a year during the new president's term. Hollywood Says 'Cut' to Lavish Paychecks Los Angeles Times Because of the faltering economy and falling DVD revenue, Hollywood studios are chipping away at the financial deals enjoyed by established talent. Paramount Pictures balked at making the new movie "Morning Glory" until star Harrison Ford and producer J.J. Abrams cut their fees. Music Industry Urged to Embrace the Web Reuters The music industry needs to learn from the "dark side of the Internet" if it is to ever regain the upper hand in the fight against piracy, according to execs speaking at the MidemNet conference in Cannes. All online upstarts aren't necessarily "trying to screw you," says Google exec David Eun. Time Warner Could Marry Lara Croft Maker Forbes Time Warner, which owns a 20% stake in videogame maker Eidos, is seen as a leading contender to acquire the owner of the Lara Croft "Tomb Raider" series. Eidos confirms that it has received a preliminary takeover approach. "Tomb Raider" has already spawned two feature films. Disney CEO Iger Earns More Than Murdoch Bloomberg Disney boss Bob Iger's home total take-home pay last year was $30.6 million, up 11% from 2007. By comparison, News Corp. chief Rupert Murdoch was paid $27.5 million in 2008. Iger has increased Disney sales via popular franchises such as "High School Musical." Apple CEO Jobs Up for Reelection at Disney Financial Times Disney is being drawn into the controversy over Steve Jobs' health problems as it reveals that Apple's CEO is up for reelection to its board. One corporate-governance expert says: "If he's said he can't run Apple, how on earth can he [stand for the Disney board again]?” Hearst: Younger Execs Jockeying for CEO New York Post A quiet internal "bake-off" is said to be taking place at Hearst, in which newly appointed international magazines head Duncan Edwards, new newspapers boss Steve Swartz and entertainment chief Scott Sassa are all competing for the chance to one day run the $5 billion media giant. Obama's Pick for FCC Signals Media Changes Wall Street Journal Broadcasters are keenly interested in whether Julius Genachowski, Barack Obama's choice to lead the U.S. Federal Communications Commission, will take a more moderate approach to indecency enforcement. Plus, big media's expansion efforts could face tougher scrutiny. FCC Chairman Martin to Join Aspen Institute Washington Post Kevin Martin, chairman of the Federal Communications Commission, is stepping down to join the Aspen Institute, a nonpartisan think tank. His decision follows reports that Barack Obama will name Julius Genachowksi as the new head of the U.S. media and communications regulator. Time Warner Staffer Among NY Plane Survivors Multichannel News A Time Warner Cable employee is said to have been among the 150 passengers on the US Airways jet that made an emergency landing into New York's Hudson River on Thursday. The unnamed female accounting employee is "shaken up but otherwise OK." News Corp, Viacom Whacked by Wall Street AllThingsD Wall Street analysts are forecasting that News Corp. will be dragged down by its international newspaper and domestic television operations, while Viacom will see MTV's young audience "disappear." The short story: "The lousy ad market will be even worse than people think." Media Congloms Feel Pinch from DVD Slump Financial Times Hollywood studios that are owned by the world's biggest media companies are preparing to curb the lucrative pay deals offered to film stars following a precipitous decline in DVD sales, a vital revenue stream. News Corp., Viacom and other film giants are turning their hopes to Blu-ray. Time Warner 'Stuck' with AOL, Magazines Bloomberg It might be too late for Time Warner to sell its battered AOL unit, analysts say. "I just don't see bidders out there." Time Warner is still looking at whether AOL has the "right ownership structure," says CFO John Martin. Also, the company is "reviewing" some of its smaller magazines. Viacom's MTV Ditches Inaugural Party Washington Business MTV is canning its inaugural party to join the bandwagon of the official "Youth Inaugural Ball." A spokeswoman says that "it ended up making most sense" to coordinate with the Presidential Inaugural Committee to hold "one, official youth ball." MTV had not yet sold tickets to its event. News Corp: 'American Idol' Viewers Drop Bloomberg "American Idol," the most-watched show on U.S. television, drew a 10% lower rating than last year in the opening of its eighth season on News Corp.'s Fox, according to initial ratings. The talent contest won its time slot with a 16.7 rating over two hours Tuesday night. Sony May Post $1 Billion Loss, Sell Assets Reuters Sony is expected to report an annual operating loss of about $1.1 billion, its first such loss in 14 years, due in part to sluggish sales of electronics products. Management may be pressured to pursue drastic measures, such as selling off units and cutting thousands of jobs. Media 'Fire Sale': Now is the Time to Buy Folio Media M&A is projected to be lower in 2009 than last year. Despite this, 63% of respondents in AdMedia Partners' annual Prospects for Media Mergers and Acquisitions survey say they expect to complete an acquisition this year due to the many "buying opportunities." Major Media Brands 'Likely to Close' in 2009 24/7 Wall St Amid a sharp slide in advertising and a worsening economy, discussion of media closures "is rampant," writes online commentator Douglas McIntyre. Among the media properties in trouble: Miami Herald, San Francisco Chronicle, SmartMoney, Entertainment Weekly, Playboy, Gourmet. Disney, News Corp Vie for Soccer Rights Bloomberg Disney's ESPN plans to bid for the rights to air English Premier League soccer games live, going up against the current holders, News Corp.'s British Sky Broadcasting and Irish pay-television company Setanta Sports. If its bid is successful, ESPN may start a new U.K. TV channel. Adult Industry Hurt by Downturn, Internet Variety Even the adult industry is experiencing shrinkage. The 2009 Adult Entertainment Expo in Las Vegas is seeing an 18% drop in exhibitors. While the adult industry makes more money from digital distribution than mainstream media, the business is being hurt by free content online. Time Warner May Cut 100 Jobs at Studio Associated Press The Warner Bros. film studio is said to be seeking a 10% budget cut across all departments. The cuts could mean layoffs and help save tens of millions of dollars annually for parent Time Warner, which has been hit by an advertising slowdown at its AOL and Time Inc. divisions. Murdoch Eurotour Includes Davos, London Financial Times Rupert Murdoch is among the bigwigs scheduled to appear at the World Economic Forum in Davos, Switzerland, in late January. While in Europe, the News Corp. chief is surveying his media businesses there. Among his stops: the News International arm run by son James. News Corp Eyes Book by Spitzer Pal Dupre New York Post Eliot Spitzer's "special friend" Ashley Dupre is being seen in the New York offices of HarperCollins, the book publishing company owned by News Corp. Dupre is currently shopping her memoir. HarperCollins is known for its 2006 dismissal of celebrity biography publisher Judith Regan. Time Warner Plans to Outsource Studio Jobs Los Angeles Times Time Warner's Warner Bros. is preparing to outsource jobs to India and Poland as part of a cost-cutting move amid weakening entertainment industry revenue. The layoffs are expected to affect "back office" workers in management information systems, finance and accounting. Vivendi May Write Down NBC Universal Stake Bloomberg Vivendi, France's biggest media company, may write down its stake in NBC Universal because of declines in media values in the United States. Vivendi holds 20% of NBC Universal, which owns the NBC television network and Universal Pictures movie studio. General Electric owns the other 80%. Who Will Be the Last Media Giant Standing? BusinessWeek Look for the likes of News Corp. and Time Warner to hunker down and wait for their media rivals to "opt for hara-kiri and shut down," writes Jon Fine. "One dearly held belief is that riches await the last man standing, the one who makes it to the other side of this downturn." Media Titan Write-Downs on the Upswing Hollywood Reporter Big media companies including Time Warner and Viacom have written down the value of their assets in recent weeks to the tune of more than $40 billion. The write-downs are seen as part of a "ripple effect of past acquisitions that haven't worked out as hoped." Time Warner's Parsons: No Commerce Post New York Times Richard Parsons, the former chairman of Time Warner, is swatting down speculation that he could be Barack Obama's next choice for commerce secretary. "It's very flattering to be considered worthy," he says. "I'm a very big fan of the incoming president, but, alas, it's not true." Quadrangle's Rattner Eyed for U.S. 'Car Czar' New York Post Steve Rattner of the media investment firm Quadrangle Group is said to be in line to become the new White House "car czar," overseeing the stalled U.S. auto industry. However, he faces a conflict of interest surrounding a $125 million fight with financial giant Cerberus, the owner of Chrysler. Media M&A Value Falls; Growth Seen Online BtoB The dollar value of media mergers and acquisitions declined 68% in 2008, falling to $33.3 billion from $104.4 billion in 2007, according to media investment bank Jordan, Edmiston Group. Growth in the industry is shifting away from traditional media to sectors including online. 2009 Media Prediction Contest: A Gloomy Year? USA Today Will CBS or New York Times be sold or file for bankruptcy? Will TV Guide or Entertainment Weekly stop publishing a print edition? Will The Daily Beast or The Huffington Post lure the most traffic? Make your predictions in the 13th annual USA Today Media Prognostication Contest. Time Worser: Media Giant's Message to Industry Portfolio Time Warner's $25 billion writedown suggests that the media giant's advertising-supported publishing and Internet assets are worth less and less with each passing quarter. J.P. Morgan analyst Imran Khan concludes that more ad budgets "are being reallocated to search." Time Warner CFO: Video Gaming 'Intrigues Us' Dow Jones Time Warner CFO John Martin says that the company's recent acquisition of U.K.-based video-gaming company TT Games was "wildly successful," and the media giant is interested in expanding its presence in that industry. No acquisitions are imminent, however, he adds. Viacom Renews Grey's Contract at Paramount DHD Viacom is renewing the contract of Paramount Pictures CEO Brad Grey through 2014. Viacom chief Philippe Dauman says: "Under Brad's leadership, Paramount has once again become a home for creative innovation and great talent. Paramount is in good hands." Deloitte: Old Media 'More Popular' Than Web PrintWeek Traditional media -- print, television and radio -- remains more popular than online, according to research from business advisory firm Deloitte. Some 73% of consumers say they prefer reading print magazines even though they know they can find the same information on the Internet. Media Layoffs Highest Since Dotcom Crash Hollywood Reporter The U.S. media industry last year pink-slipped people at the highest rate since 2001, according to outplacement firm Challenger, Gray & Christmas. Media layoffs amounted to 28,083, thanks to accelerating cost cuts. Heavy layoffs "could continue through at least the first half of 2009." 2009 Media Forecasts: Hold On to Your Hat RBR 2009 will be a "big transition year," according to media/advertising experts, as the industry migrates to digital distribution. "The stage is set for the emergence of direct mobile broadcast." Also, online video, mobile and social media will provide "new opportunities" for newspapers. Redstone: 'Nothing Wrong' at Viacom, CBS Portfolio Sumner Redstone, whose position on Wall Street is seen as much worse than his media rivals', insists there is "nothing wrong" with his Viacom and CBS. Viacom will be "back at $45 -- and higher!" he vows. Meanwhile, a power struggle with daughter Shari "seems inevitable." Time Warner Sees 2008 Loss from AOL, Cable Bloomberg Time Warner says it will report a loss for 2008 after recording a non-cash impairment charge of about $25 billion before taxes in the fourth quarter. The impairment stems from a reassessment of cable, publishing and AOL assets, the world's biggest media company says. Time Warner's Parsons: Commerce Secretary? Broadcasting & Cable Richard Parsons, former chairman of Time Warner, may be in line for U.S. Commerce Secretary in the Obama administration. Parsons is a member of the Obama Economic Advisory Board, which is helping the president-elect develop ideas to get the economy moving. CNN's Gupta Approached for Surgeon General CNN The Obama administration has approached Dr. Sanjay Gupta, CNN's chief medical correspondent, about becoming U.S. surgeon general, according to sources inside the transition team and at the Time Warner news network. Gupta, based in Atlanta, has been with CNN since 2001. Tribune: Cuban Wants More Time for Cubs Bid Bloomberg Billionaire Mark Cuban, who is being sued by the U.S. Securities and Exchange Commission for insider trading, says he has sought an extension from Tribune for his bid for the Chicago Cubs. "If they got the money they wanted, well my bid was not going to be high enough anyway." Hearst Loses Popeye; Disney's Mickey Next? Times of London At the start of 2009, Hearst's Popeye the Sailor comic character fell into the public domain in Europe under a European Union law that restricts the rights of authors to 70 years after their death. Disney's Mickey Mouse will soon follow. Popeye is protected in the United States until 2024. McGraw-Hill Cuts 70 Jobs in Media Division Bloomberg McGraw-Hill, the owner of BusinessWeek magazine, says that it cut 375 more jobs in the fourth quarter as the market slowdown and U.S. recession eroded revenue. McGraw-Hill cut a total of 1,045 positions last year, including 70 positions in information and media. Bertelsmann's Gruner + Jahr Names New CEO Dow Jones German publisher Gruner + Jahr, in which media giant Bertelsmann has a 74.9% stake, is naming Bernd Buchholz as its new CEO. Buchholz will replace former CEO Bernd Kundrun. Hamburg-based Gruner + Jahr publishes various magazines and Financial Times Deutschland. Tribune to Announce Winning Bid for Cubs Chicago Tribune Tribune, owner of the Chicago Cubs, is said to be close to selecting a winning bid for the team from three finalists: Chicago real-estate investor Hersch Klaff, the Ricketts family, and a group led by New York private-equity investor Marc Utay. A decision could come within days. Media Predictions 2009: What Won't Happen BusinessWeek Yahoo won't be sold in 2009, predicts BusinessWeek columnist Ron Grover. Activist investor Carl Icahn will want a new CEO "to make serious changes before pushing for a sale." Also, television networks "won't disappear." YouTube is unlikely to be "the online video winner." 2008 Media Prediction Contest: Few Winners USA Today For the first time in seven years, a Wall Street expert — Pali Research's Richard Greenfield — beat readers in predicting how 2008 would unfold in the media, in USA Today's 12th annual Media Prognostication Contest. For 2009, Greenfield says he sees "a lot of cautious signs." Media's Biggest 2008 'Losers' Include Murdoch Business Sheet Media moguls from Bob Iger to Martha Stewart haven't been spared from the financial meltdown. Rupert Murdoch reportedly lost $3.95 billion in 2008. Sumner Redstone saw his fortune drop by nearly $4 billion. In fact, Redstone may no longer be a billionaire. 2008: A Bad Year for Media Industry Stocks Hollywood Reporter The worst year for media stocks in a long time came to an end last week, and few expect a quick turnaround in 2009. Conglomerate stocks hit new 52-week and — in many cases — historic lows. Still, some on Wall Street are recommending Time Warner and Comcast for 2009. Media Deals at Lowest Level in Eight Years Mediaweek Media deal-making has slowed to its lowest level in at least eight years, with more deals falling through than getting done. A scant $2 billion worth of reported transactions took place in 2008, down from $9.6 billion in 2007, according to investment bank DeSilva + Phillips. Time Warner No Longer No. 1 Media Company Advertising Age Advertising Age has ranked Time Warner as the largest U.S. media company every year since 1995. The media giant will drop to No. 2 with the early 2009 spinoff of Time Warner Cable. With Time Warner's spinoff, cable operator Comcast is set to become the nation's No. 1 media firm. Viacom Apologizes for Time Warner Cable Ad UPI Viacom issued a statement regarding its renewal deal with Time Warner Cable for carriage of MTV Networks, in the wake of U.S. newspaper ads Friday suggesting the contrary. Due to the timing of the deal and the New Year's holiday, Viacom was "unable to pull the ads." News Corp's 'Marley' Not a Dog at Box Office Bloomberg "Marley & Me," News Corp.'s tale of a mischievous dog, led box-office sales for a second week, as Hollywood studios refrained from releasing new movies over the post-New Year's weekend. Disney's "Bedtime Stories" held on to second place; Viacom's "Benjamin Button" remained in third. Disney Revitalized by Iger, Eyes Acquisitions Fortune Disney is seeing a creative and financial revival since Bob Iger became CEO roughly three years ago, observers say. Iger hopes to use Disney's position of relative strength to make new acquisitions like videogame publishers and Club Penguin, the kids' social network it purchased last year. Malone Quietly Dumps Shares of Diller's IAC Wall Street Journal Why has John Malone been dumping his shares of IAC/InterActiveCorp? Malone in recent weeks has sold roughly $17.5 million worth of IAC stock. The sales raise questions about whether Malone is losing confidence in his investment in the Internet conglomerate run by Barry Diller. Burkle May Seek Talks With Barnes & Noble Bloomberg Ron Burkle and his Yucaipa Cos. private-equity firm have reported an 8.3% stake in Barnes & Noble. Burkle, who acquired Primedia's Motor Trend and other enthusiast magazines in 2007, may discuss "strategic opportunities" with the top bookseller. Barnes & Noble lost 56% of its value in 2008. Study: U.S. Media Need New Biz Models Nieman Journalism Lab Harvard University is releasing a study exploring the emerging digital media environment. Citizen media is "not doing everything we have counted on journalism institutions to do." Meanwhile, journalism institutions "are in serious trouble." It is time to "look at models from other countries." Google, Murdoch Defy Their '08 Promise Fortune Some of the most-watched, most-hyped media stories of 2008 didn't exactly go as expected, according to Fortune editor-at-large Richard Siklos. Google was unable to find much success in branching into traditional media; Rupert Murdoch "didn't ruin" the Wall Street Journal. Media Prediction: CBS to Disappear in '09 MediaPost The media industry will find 2009 to be a very difficult economic year, according Diane Mermigas, editor-at-large at MediaPost. Some television and newspaper properties "will shut down." Broadcaster CBS is "most likely to collapse or convert into a general entertainment cable network." Media Moguls Set for 'Imminent Shakeout' TheDeal A new media order is coming -- one that takes power away from the conglomerate and puts the consumer in command, warn industry observers. Dennis Miller of Spark Capital believes that a mere handful of traditional-media giants will "effectively morph" into Web 2.5 enterprises. Redstone, Daughter Clash on Debt Payoff Wall Street Journal Sumner Redstone's tensions with his daughter Shari over a possible sale of their movie theaters are coming to a head as the family moves closer to a deal to help pay down their $1.6 billion debt. Shari is opposed to selling the theaters. The two Redstones now only communicate via fax. Hollywood Sees More Tough Times in '09 Reuters The economic crisis and the threat of another labor strike are creating a "perfect storm" for Hollywood, as major studios to brace for further layoffs early next year, according to both studio execs and analysts. Insiders expect to see belt-tightening at the ABC network and other outlets. Time Warner: No Media Buys Despite Cash Dow Jones Time Warner will soon spin off its cable division in return for a cash windfall of over $9 billion. But with its stock at six-year lows and its disastrous AOL marriage a not-too-distant memory, the media giant said it will forego big acquisitions to focus on shareholder returns. Sumner Redstone Gets Time to Sell Assets BusinessWeek Banks appear to be indefinitely extending Viacom/CBS boss Sumner Redstone's Dec. 19 debt repayment deadline to afford the media mogul time to sell off assets. Despite his protests to the contrary, Redstone may be forced to sell some of his shares of Viacom and CBS. Macrovision to Sell TV Guide, Web Site Silicon Valley Business Macrovision Solutions has agreed to sell the TV Guide Network to Allen Shapiro and One Equity Partners for about $255 million. The deal includes TVGuide.com but not TV Guide magazine, which Macrovision said in October it would sell to OpenGate Capital. Disney Sued Over Profit-Sharing Contract Los Angeles Times Disney's main film financing partner, Kingdom Films, has filed a lawsuit against the studio, accusing it of breaching a 2005 contract guaranteeing it a share of profits from the recent hit "High School Musical 3: Senior Year" and next year's release of " Hannah Montana: The Movie." Time Warner Names Bewkes as Chairman Bloomberg Time Warner has named CEO Jeff Bewkes to the additional role of chairman, in line with a succession plan outlined by current chairman Dick Parsons earlier this year. Parsons, who will step down Dec. 31, also serves as an economic adviser to U.S. president-elect Barack Obama. CBS, Time Warner Discuss Olympics Bid Associated Press CBS and Time Warner execs have discussed joining forces to bid on rights to televise the Olympics in 2014 and 2016. Such an alliance would increase the competition for Olympic television rights. NBC, Fox and the ABC-ESPN team are already expected to bid on the U.S. rights. News Corp Switches to Nasdaq in Ad Deal New York Times News Corp. has announced that it would move its stock listing from the New York Stock Exchange to the Nasdaq stock market, effective on Dec. 29. In response, NYSE has claimed that Nasdaq "bought the listing with a significant advertising commitment to News Corp." GE: NBC Profit Flat to Down Slightly in '09 Reuters General Electric expects profit at its NBC Universal media business to be flat to down slightly, CEO Jeff Immelt has told investors. NBC recently announced plans to move late-night host Jay Leno to the 10 p.m. time slot. The move is expected to cut programming costs. Marvel May Flatten Disney, Time Warner TheStreet Marvel Entertainment, which released the movies "Iron Man" and "The Incredible Hulk," is said to be poised to outperform much larger rivals Time Warner, News Corp. and Disney. Marvel "has a lock on the lucrative superhero genre." Its 5,000 comic characters are "a goldmine." Disney: 'H.S. Musical' Heading to Moscow New York Times Disney in 2009 will launch a free-to-air Disney Channel in Russia, a mega-market that Western media companies have been trying for decades to crack with little success. Disney will be the lone U.S. media company with a full-time branded TV channel in the country. Traditional Media Still Matter, Survey Says Ad Age So-called "digital influencers" actually get their information from old media, according to a survey by MS&L. Some 84% of digital influencers go online to find out more about something only after first learning about it from magazines, newspapers, television or radio. Hollywood Stars Oppose Union Strike Vote Reuters More than 130 Hollywood A-list performers have joined to oppose a strike authorization vote by the Screen Actors Guild. The move marked a sign of division within the union over tactics to squeeze a better contract offer from major studios, especially for pay from work on the Internet. Hollywood P.I. Pellicano Sentenced to 15 Years Los Angeles Times Ex-Hollywood private eye Anthony Pellicano has been given 15 years in prison for illegal wiretapping. Pellicano's troubles began in 2002, when reporter Anita Busch was threatened by one of his associates after she wrote damaging articles about former agent Michael Ovitz. National Lampoon CEO Charged with Fraud Dow Jones National Lampoon CEO Daniel Laikin and six others have been charged with conspiracy and securities fraud related to alleged schemes to artificially inflate the prices of publicly traded stocks. National Lampoon owns interests in the "Animal House" and "Vacation" films. Tribune Names Wilson Chief Revenue Officer Chicago Tribune Ed Wilson, who has been in charge of television and radio for Tribune as president of its broadcasting division since February, has added the title of chief revenue officer. Wilson will be charged with growing revenue for Tribunes publishing, broadcasting and interactive operations. Murdoch Bio May Spark Judith Regan Lawsuit New York Daily News Judith Regan has vowed to file a lawsuit against Michael Wolff over his new biography of Rupert Murdoch. In "The Man Who Owns the News," the former News Corp. book publisher is described as "a nut" and "unemployable." Wolff is "grossly irresponsible," said Regan. Time Warner Ups Stake in Game Firm Eidos Reuters Time Warner Entertainment has bought 10 million shares in Eidos, increasing its stake to nearly 20% in the entertainment software developer. Eidos, the holding company of Eidos Interactive, has developed interactive video and computer games series such as "Tomb Raider." Disney Eyeing Takeover of Electronic Arts? Wall Street Journal Is Disney preparing a bid for Electronic Arts? Disney CFO Tom Staggs appeared to leave the door open when asked last week about Disney's focus on developing games. A "strategic and attractive" opportunity would be "a possibility," he said. EA's top sellers include "Madden NFL 08." Viacom: 'Rock Band' a Long-Term Franchise Softpedia Activision's "Guitar Hero" is selling more than rival music game "Rock Band," from Harmonix for Viacom. Still, actual bands prefer to bring their songs to the latter game, said Viacom CEO Philippe Dauman. "Our networks are ideal vehicles to promote the game. You'll see more of that." News Corp Hit by Acquisition of Dow Jones Crain's New York Since Rupert Murdoch closed his hard-fought deal for Dow Jones & Co. last December, News Corp.'s share price has plunged more than 60% -- the second-worst performance among major media stocks, after CBS. Paying $5.6 billion for Dow Jones "didn't help," according to analysts. Liberty Media Sets Split Off DirecTV Unit Reuters John Malone's Liberty Media has unveiled plans to split off most of its Liberty Entertainment unit, which owns the majority stake in U.S. satellite-TV operator DirecTV. The widely-expected move will create a new publicly traded subsidiary named Liberty Entertainment. Disney-ABC: 'Wolverine' to Host Oscarcast Bloomberg Actor Hugh Jackman, known for portraying Wolverine in the "X-Men" films, will host the 2009 Academy Awards on Feb. 22, the first non-comedian to be chosen in more than two decades. This year's ceremony on ABC, hosted by Jon Stewart, drew the fewest television homes since 1969. Media Habits Found to Differ in East, West Hollywood Reporter Western countries tend to be heavy users of such media hardware as DVD players, while next-generation devices like video-enabled handsets are more popular in Asia, according to online survey from Nielsen. The Philippines topped rankings tracking use of digital media. Viacom-CBS Boss Redstone to Sell Theaters Associated Press Laden with debt, Sumner Redstone's theater chain company, National Amusements, is said to be looking to sell around 600 movie screens in the United States. Redstone has been personally calling potential buyers in hopes of raising up to $280 million from the properties. Time Warner May Keep AOL Content Sites AllThingsD Time Warner is said to be considering selling off pieces of AOL after growing weary of its inability to complete a deal to sell the troubled Internet unit to Yahoo. The media giant may hold on to AOL's content properties, some of which are among the most trafficked on the Web. Hearst Corp Calls Off Search for New CEO New York Post A search for a CEO to lead Hearst has been called off as interim chief Frank Bennack Jr. appears to have no intention of relinquishing the role. Also, some Hearst board members are said to have soured on magazine boss Cathie Black amid concerns about the division's struggling titles. NBC Universal Aims to Keep Exec Silverman New York Post NBC Universal is discussing the extension of its chief programmer Ben Silverman's contract for at least another year. Silverman, who was brought in by CEO Jeff Zucker to strengthen the schedule and now helps set the prime-time line-up, has been the target of many critics. Viacom-MGM Movie Channel is Named 'Epix' MediaPost Epix has been selected as the name for the premium cable channel set to launch next year by a Viacom, MGM and Lionsgate joint venture. The channel will compete with Time Warner's HBO, as well as Showtime, the pay-TV channel operated by former Viacom sibling CBS. Media Chiefs Vow No More Bad Acquisitions Financial Times Paying back shareholders will take priority over acquisitions in 2009, according to top execs speaking at this week's UBS media conference, as the economic crisis puts the brakes on making deals. Acquisitions have caused the "most value destruction of media companies." Viacom in Arbitration to Seek Jackass.com Domain Name Wire MTV owner Viacom has filed for arbitration to take control of the Web domain name Jackass.com. "Jackass" was a onetime MTV show that spawned two feature films. "Jackass," however, is a generic term and the domain has been registered by someone else. Disney May Make Minimal Job Cuts, CFO Says Variety Disney is feeling the financial squeeze, but its cutbacks during the downturn likely will be less dramatic than those at other media conglomerates, according to CFO Tom Staggs. "You'll see us taking some of those steps in the ensuing weeks and months." Time Warner Invests in New Google Rival Telegraph Kosmix, a new Internet search site by Indian entrepreneurs that aims to compete with Google, has won $20 million in funding led by Time Warner. Kosmix's "innovations around the traditional online publishing model could represent a paradigm shift," said TW exec Rachel Lam. U.S. Media Seen in Deep Financial Crisis Times of India Faced with declining advertising revenue and mounting debt, the media in America have plunged into a deep financial crisis, according a report by the Times of India. Most U.S. media outlets "are now struggling to survive," with their "massive" cost cutting and layoffs. Media-Company LBOs May See 'Distress' Bloomberg Tribune's bankruptcy is a bad omen for the almost $90 billion in buyouts of U.S. media companies from 2005 to 2007 that relied heavily on borrowed money, according to financial analysts. Clear Channel and Univision are among those seeing "signs of concern." News Corp Staffers Skip Murdoch Book Bash New York Observer Michael Wolff invited 50 people from News Corp. to his book party celebrating his new biography of Rupert Murdoch, "The Man Who Owns the News" -- but none of them showed. Col Allan, the editor of Murdoch's New York Post, reportedly told Wolff to lose his email address. Time Warner, Cablevision See Slowdown Crain's New York Time Warner Cable has reported a slowdown in subscriber growth for its video, Internet and phone services. "Consumers just sort of closed their pocket books." Likewise, Cablevision has experienced a pullback in sales of its services. "There are no new opportunities." Viacom: No New Acquisitions Coming Soon Variety Viacom, which announced a hefty round of layoffs last week, won't be making any major acquisitions in the near future, said CEO Philippe Dauman. Also, the name of the new movie channel Viacom is creating with Lionsgate and MGM, set to launch next Oct. 1, will be announced soon. Sony to Eliminate 8,000 Jobs Amid Downturn CNN Sony will cut 8,000 jobs and shutter about 10% of its manufacturing capacity in response to "sudden and rapid changes in the global economic environment." The cuts are expected to save Sony more than $1 billion by March 2010. Sony's television sales have been hit hard. Hollywood Actors May Strike for Digital Pay Bloomberg The Screen Actors Guild has asked its members to authorize a strike, saying there is no other way to force film and television studios to restart contract talks over Internet pay. A strike by SAG's 120,000 members would have a "bigger impact" than the recent writers' strike, some believe. Tribune Files for Bankruptcy in 'Perfect Storm' Chicago Tribune Tribune has filed for bankruptcy protection in a move to restructure debt. Tribune's Chicago Cubs, which is on the auction block, is not part of the filing. "Factors beyond our control have created a perfect storm," said chief Sam Zell (who was not elected Media Person of the Year). Playboy CEO Christie Hefner to Step Down Chicago Tribune Christie Hefner, the daughter of Playboy founder Hugh Hefner, plans to end her 20-year tenure as company CEO, and will pursue work in public-service and non-profit ventures. Playboy has suffered in the economic downturn. "More content will be delivered online," she predicted. Media Biz Headed for Shake-Up, Execs Say Reuters When the advertising recovery finally begins, the media industry may not look anything like it does today, according to top execs. The solution to industry ills may lie in acquisitions. "There needs to be further consolidation in the media business," said Sirius XM CEO Mel Karmazin. Media Giants Can Be Had for Bargain Prices Ad Age Several major media companies are trading at historic lows -- and could be ripe to be acquired. Stock in CBS has fallen below $5 in recent weeks; the New York Times has broken the $5 barrier in an all-time low. A few well-known media names won't "make it out alive." Media Industry Sheds 30,000 Jobs in '08 Ad Age Media industries have cut more than 30,000 jobs in 2008, according to an analysis of U.S. Department of Labor statistics and news reports. Big media is "getting a whole lot smaller." Newspaper and magazine publishing "looks destined for permanent shrinkage." Murdoch in German Pay-TV Takeover Talk Reuters News Corp. may ask to be exempted from making a compulsory takeover offer for German pay-TV broadcaster Premiere should it pass the 30% shareholding threshold. The media giant, which currently holds 25.01% in Premiere, is mulling a possible capital increase. Rupe's New Role: Booster for New York NYP / SMH Rupert Murdoch has been elected co-chair of the Partnership for New York City, a network of business leaders working to enhance the city's economy. He succeeds former Hearst CEO Vic Ganzi. Also: According to Murdoch, "Rich societies are at risk of becoming complacent." News Corp's Chernin Eyed for Yahoo CEO AllThingsD Yahoo is said to have approached News Corp. president and COO Peter Chernin to replace former CEO Jerry Yang, but the well-known media exec declined to be interviewed. Chernin, currently in contract renewal talks at News Corp., has said he is not interested in the Yahoo job. Media Layoffs to Mount in Industry Transition Dow Jones Job losses in the media are piling higher with Viacom and NBC Universal this week announcing plans to cut some 1,350 positions, as the industry wrestles with the recession and the rise of the Internet. Observers expect more layoffs over time as the industry evolves away from "old" media. Media Predictions for '09: A 'Shadow Industry' BusinessWeek A "shadow media industry" is set to emerge, predicts Jon Fine of BusinessWeek -- properties created and staffed by those pink-slipped in '08 and '09. "This sets the stage for epic clashes with existing players." Another prediction: "It gets much worse before it gets better." Fitch: U.S. Media Outlook Negative in 2009 Editor & Publisher Newspaper groups are likely to default on their debt and go out of business next year -- leaving "several cities" with no daily newspaper at all, said Fitch Ratings in a new report on media. Fitch has a negative outlook on nearly all sectors, including television, radio and magazines. Twitter Tracks Reports on How 'Media Is Dying' BusinessWeek For fast, up-to-the-minute company death watches, some are turning to Twitter. The microblogging service has a feed called The Media Is Dying, which is populated by quick, insider-y tips about casualties in the media business. The Media Is Dying feed has more than 1,000 followers. News Corp 'Tension' Over Murdoch Successor Bloomberg News Corp. chief Rupert Murdoch intends for his No. 2 son James to take over the media giant at "some time in the future," according to biographer Michael Wolff. Murdoch doesn't want top company execs Peter Chernin or Roger Ailes to succeed him. "You can feel the tension," said Wolff. Redstone Agrees to Sell Off 1,500 Theaters Financial Times Media mogul Sumner Redstone has reached agreement with his daughter, Shari, to put some of National Amusement's 1,500 cinemas on the block rather than the entire division, as part of debt-restructuring discussions to avoid selling more shares of Viacom and CBS. Viacom, MTV Said to Prep Hundreds of Layoffs DHD Layoffs at Viacom are rumored to be "just around the corner," with 300 staffers at MTV to be let go. One online commenter claimed that the layoffs were supposed to have happened earlier, but CEO Phillipe Dauman said the proposed cuts "weren't substantial enough." NBC Universal Cuts Jobs in Sales Across U.S. Ad Age NBC Universal has begun cutting staff amid a faltering economy. So far, about 30 staffers in advertising sales are losing their jobs. The cuts impact workers located in NBC Universal's New York headquarters, as well as staffers in Los Angeles, Chicago and Detroit. Hearst Hires Former NBC Exec Scott Sassa Broadcasting & Cable Hearst has named former NBC exec Scott Sassa to run its entertainment and syndication arm, overseeing both television and newspaper syndication and the company's stakes in ESPN, Lifetime, A&E and History Channel. Sassa replaces Bruce Paisner, who is retiring. Murdoch Unleashes Media Attack on Berlusconi Bloomberg Rupert Murdoch's Sky Italia, Italy's biggest pay-television broadcaster, is mounting an on-air attack against prime minister Silvio Berlusconi's plan to double the tax on TV subscriptions. Sky Italia is airing commercials urging viewers to complain to the government that their bills will rise. Media Jobless a Hot Bet for 'Person of Year' New York Post With media giants cutting jobs, slashing budgets and shuttering publications, "The Laid-Off Journalist" might just be the leading candidate to be named Media Person of the Year in I Want Media's seventh annual poll. Other contenders for 2008: Eric Schmidt, Rupert Murdoch, Sam Zell. Media Giants May Eye Buys in Brutal 2009 Reuters The U.S. media industry, fresh off a bruising 2008, is preparing for an even more brutal 2009 as the slump in advertising and financial crisis show no signs of easing. Experts say some media companies could take advantage of the drop in valuations to hunt for acquisitions. Martha Stewart CFO Exits to Join Ancestry.com Associated Press Howard Hochhauser, the CFO of Martha Stewart Living Omnimedia since May 2000, will resign at the end of the year to take the same position at the Generations Network, parent company of Ancestry.com. Martha Stewart's company will search for a new CFO. Cox Reorganizes Media Assets for 'Efficiencies' Atlanta Journal-Constitution Cox Enterprises is placing its newspaper, television and digital-media properties together under one unit called Cox Media Group. The move will "creates efficiencies," said president Jimmy Hayes, and "lead to enhanced online and mobile experiences for all our audiences." Vivendi Won't Seek Sale of NBC Universal Stake Hollywood Reporter Vivendi has decided not to seek a sale of its 20% stake in NBC Universal this year ahead of a deadline Friday, according to sources. One source familiar with the situation cited market conditions, such as contracted multiples for media companies. "It is not the right time to sell." Former NBC Manager Gets 21 Months for Theft New York Post Former NBC Universal treasury manager James Walsh has been sentenced to 21 months in prison for helping his boss, Victor Jung, steal more than $1 million from the media giant. Walsh is said to have repeatedly raided the petty cash safe at New York's 30 Rockefeller Plaza. Houghton Mifflin Publisher Quits Amid Sale Talk Associated Press Becky Saletan, the senior VP and publisher of adult trade books at Houghton Mifflin Harcourt, has quit, effective Dec. 10. The company has been in the news for an alleged hold-down on new books. Any halt on acquisitions is believed to be in anticipation of a possible sale. Viacom's Paramount Sued Over Financing Deal Dow Jones A group of financial companies have sued Viacom's Paramount Pictures, saying they stand to lose their $40.1 million investment because the studio misrepresented and failed to disclose changes made in risk-mitigation techniques related to its films, including "Mean Girls." Media, Tech Mogul Ted Rogers Dies at 75 InformationWeek Ted Rogers, a communications entrepreneur who has been described as Canada's Ted Turner, died Tuesday of heart failure in his Toronto home. Rogers was founder and CEO of Rogers Communications, which operates cable TV, Internet and mobile calling services across Canada. Berlusconi, Murdoch: We're No Longer Pals Globe and Mail Rupert Murdoch, the News Corp. boss, and Silvio Berlusconi, the Italian prime minister and media tycoon, are at odds now that Berlusconi's government has doubled a tax on Murdoch's Italian pay-TV operations. Berlusconi has been accused of abusing his power to penalize a rival. Media Predictions for 2009: More Mega-Shifts CNBC Consumers will increasingly come to treat the Internet "like another TV set," according to CNBC media reporter Julia Boorstin. Also, social networks will start "translating their members into advertising dollars." Plus, newspaper and magazine publishers will continue to "shift more online." Mass Media Harmful to Children, Report Says USA Today The average child spends 45 hours a week with media -- almost three times the amount of time they spend with their parents, says a study from the non-partisan group Commonsense Media. Policymakers "need to take action," since heavy media use "increases attention problems," among other ills. Redstone Begins Asset Sale to Protect Empire Times of London Sumner Redstone's offloading of his controlling stake in Midway Games may be the first step in a restructuring of the media mogul's operations, as he grapples with $1.6 billion in debt. Investors could try to force Redstone to consider sales of other assets, such as CBS. Time Warner Seeks OK of Reverse-Stock Split Associated Press Time Warner is asking its shareholders to approve a reverse-stock split that could double or triple the share price. The company believes the move will improve liquidity following the spinoff next year of Time Warner Cable, which could cause Time Warner's shares to fall. Time Warner Cable to Offer WiMax Service Reuters Time Warner Cable plans to offer limited wireless services in late 2009 or early 2010 using the WiMax high-speed wireless network that is being built by Clearwire Corp. Time Warner has invested $550 million in the $14.5 billion Clearwire venture, with partners including Sprint and Comcast. Analyst: Media to Cut Thousands of More Jobs Reuters British media companies could cut tens of thousands more jobs in the coming years as the economic downturn hits an industry already ravaged by the Internet revolution. About half of all U.K. media jobs will be gone by 2013 under current economic conditions, according to Enders Analysis. U.S. Media Thrive Worldwide - Not U.S. Image New York Times American pop culture is booming around the globe. A Russian remake of the television show "Married With Children" is so popular that new scripts are now being produced. Nonetheless, various polls around the world continue to show a decline in "American attractiveness." Techies Will Lead Media World, Wolff Says MarketWatch The next wave of media leaders is going to be technology people and professional managers, "for better or worse," muses Newser founder Michael Wolff, while promoting his new Rupert Murdoch biography. "We're going to have a much smaller, more streamlined media world." News Corp Faces Potential Voting 'Deadlock' Financial Times News Corp. faces a potential "deadlock" once Rupert Murdoch's heirs take over, according to Michael Wolff's new biography of the 77-year-old media owner. A rights agreement in the Murdoch family's stake in the company is said to contain no provision for breaking tied votes. Comcast, Time Warner to Hike Web Charges SmartMoney U.S. cable and telecommunications companies are forging ahead with plans to radically change their familiar flat-rate monthly Internet plans, even as new options for watching movies and television online proliferate. "Usage caps" will penalize those who send and receive too much data. Redstone Sells Midway Games to Ease Debt Wall Street Journal In an effort to help resolve his debt problems, Sumner Redstone is expected to announce that he has sold its 87% stake in videogame company Midway Games to private investor Mark Thomas, a move that secures a hefty tax benefit as the media mogul negotiates other asset sales. Disney 'Bad for the Soul,' Churchman Says Mirror Disney promotes greed and offers false happiness, a top churchman has claimed. British Catholic cleric Christopher Jamison said children are encouraged to think true joy can be found from Disney merchandise and DVDs and through taking "pilgrimages" to theme parks. Murdoch: News Corp Is Ready for Media Deals Australian News Corp. is "cashed up" and ready to exploit opportunities from the great deleveraging now under way, said chief Rupert Murdoch. "In America we have a boom in cable television. Cable channels get revenue from cable companies and they get revenue from advertising ..." Media Stocks Hit New Lows in Market Meltdown Hollywood Reporter Wednesday's Dow slide pushed the shares of News Corp., Viacom, CBS and Sony to 52-week lows, and Disney and Time Warner closed near their lows for the year. With just over a month of trading to go in 2008, media biggies have lost tens of billions of dollars in market value. Murdoch Eyes Subscription-Based Acquisitions Australian Rupert Murdoch believes the global financial crisis will wipe out at least half of the world's hedge funds. "I would welcome their disappearance," he said. He added that his News Corp. will continue to look for acquisitions "that are not so dependent on advertising and are more based on subscription." Big Media Targeted by Writers Over Digital Pay DHD The Writers Guild of America, West has claimed that media conglomerates have failed to comply with the contract negotiated to end the 100-day strike by not paying residuals for writers' work that is reused in new media. The WGA has filed for arbitration over alleged nonpayment. Vivendi Not a Long-Term NBC Universal Owner Bloomberg Vivendi CEO Jean-Bernard Levy said the French company's 20% holding in NBC Universal isn't a long-term investment, declining to say when the stake might be sold. "We will have to make the decision in the next two to three weeks, so you will hear about it shortly." NBC Parent Embraces Blogs for Investor Info Reuters NBC Universal parent company General Electric has quietly changed the way it communicates with Wall Street, using a company blog, GEReports.com, to share news with investors. Not all corporate governance experts applaud the change: "What's the agenda behind it?" Time Warner CEO is Optimistic About Change Dow Jones Time Warner CEO Jeff Bewkes said he is hopeful that the global financial crisis will lead to genuine change. "There's optimism because the worldwide crisis enables significant changes often talked about, but not implemented," he said at the Wall Street Journal CEO Council conference. News Corp Shelves Media Campus in London Guardian News Corp. is delaying indefinitely the planned redevelopment of its east London offices due to the economic downturn. The home of the company's London newspapers was set to become the new British base for other assets, including Dow Jones, MySpace and 20th Century Fox. Media Shares Fall As Ad Concerns Grow Dow Jones / AP Viacom, Disney, News Corp. and other media companies traded lower Monday as concerns increase about a rapidly deteriorating advertising market. Also: While media stocks may look cheap, investors should be cautious since 2009 is "still unclear," according to analysts. News Corp: Downturn Will Be 'Very Ugly' Press Gazette The outgoing head of News Corp.'s European business, Marty Pompadur, has warned that the economic downturn will have a "very, very ugly" effect on the media -- and could force some companies to put themselves up for sale: "If a company has a lot of debt they're in trouble." Redstone's CBS, Viacom See Value Drop MarketWatch Wunderlich Securities has downgraded shares of CBS and Viacom to neutral from buy, citing a "rapidly weakening" advertising market. CBS shares have fallen more than 60% since the beginning of September, while Viacom's value has been nearly cut in half. Media Must Adapt or Perish, Murdoch Warns CNET / Herald Sun Newspapers won't die off as long as journalists embrace new technologies like RSS feeds and don't act like "demigods," according to News Corp. chief Rupert Murdoch, in a radio address in his native Australia. "The newspaper, or a very close electronic cousin, will always be around." Hollywood Studios Hit by Cutbacks, Layoffs Variety / NYP CBS is quietly laying off staffers at its television and radio stations. Studio execs are dropping subscriptions to newspapers and magazines -- and even cutting back on expenses like bottled water. Also: Broadcast networks are cutting development costs, resulting in fewer TV pilots. Media 'Out of Touch' With American Morals Hollywood Reporter A majority of Americans say Hollywood doesn't share their moral values, according to a poll from the Anti-Defamation League. Some 59% of those surveyed agree that "the people who run TV networks" do not share "the religious and moral values of most Americans." GE Chief Signals Appetite for Media Assets Financial Times CEO Jeff Immelt has declared his interest in buying media assets -- a sign that a slumping economy has not shaken General Electric’s confidence in its NBC Universal division. There are "opportunities in media consolidation," Immelt said. "And my hope is that we can play." Media Shares: Have They Hit Rock Bottom? Reuters Media shares, already battered by months of shrinking consumer confidence, are at multi-year lows and prime for an investor buying spree. The bottom looks imminent, according to one analyst. Media stocks "are very, very cheap. These are very significant buying opportunities." Media's Future Discussed at Monaco Forum BusinessWeek The Monaco Media Forum, an annual event organized by Publicis that attracts top media figures, is wrapping up in Monte Carlo. Attendees such as Norm Pearlstine and Tina Brown, however, are yet to reach a consensus on a business model "that will allow good journalism to thrive." Murdoch Jr Hints of Possible Big Acquisitions Financial Times James Murdoch, the head of News Corp.'s European and Asian businesses, hinted at the possibility of large, if not imminent acquisitions in his remarks at the Monaco Media Forum. The group is focusing on how to double the size of its European and Asian holdings within five years, he said. News Corp European Chief Pompadur to Exit Bloomberg News Corp. said Marty Pompadur, an executive VP and chairman of its European operation, plans to step down. Pompadur, 73, will remain an adviser. The transition of his responsibilities began in May, when News Corp. named Tom Mockridge CEO of European TV. Peter Chernin Ponders Leaving News Corp Los Angeles Times News Corp president/COO Peter Chernin has helped his boss, CEO Rupert Murdoch, reshape the global media empire for the last 12 years. But at 57, he is not sure whether to extend his contract for an additional two or three years, or leave to "start something new." Viacom, CBS Stabilize After Redstone Remarks Reuters Sumner Redstone managed to halt, at least temporarily, major drops in shares of CBS and Viacom by repeating his promise not to sell any more stock in either media company. Pali Research analyst Rich Greenfield earlier this week suggested that Redstone should sell off Viacom. Redstone Daughter May Seek to 'Divorce' Dad BusinessWeek Shari Redstone, president of National Amusements, may try to use the family crisis to break free of her sometimes overbearing father, Sumner, who is chairman, according to sources. "The debt issue may give Shari her opening to get a divorce" from dad, said a former Redstone exec. Time Warner Cable Makes $2B Debt Offering Associated Press Time Warner Cable has announced a $2 billion public debt offering to help finance a special dividend to be paid just before the company separates from its parent, Time Warner. If the separation is not completed, the company will use the proceeds for "general corporate purposes." Time Warner's Goodwill Seen as 'Worthless' Bloomberg At $8.61 a share, Time Warner has a stock-market value of $30.9 billion. Yet, according to the media giant's balance sheet, just one of its assets, goodwill, by itself is worth $42.5 billion. "Those asset values can't be right," said one observer. "Time Warner execs just won't admit it." News Corp Delays New Social Site for Books New Media Age News Corp.'s HarperCollins has delayed the launch of its major online social media play, Book Army, until next year. The site "remains in testing." The book recommendation site will list every book with an ISBN and aims to drive sales and build a community of readers. Redstone: I Won't Sell More CBS or Viacom Bloomberg Sumner Redstone said he has no plans to sell more stock in Viacom or CBS, and talks to restructure the debt of his National Amusements holding firm "are proceeding." Redstone's statement comes after shares of both Viacom or CBS hit new lows Wednesday. Quadrangle to Shut Down Media-Focused Fund Wall Street Journal Quadrangle Equity Investors is planning to wind down amid weak performance and investor redemptions, in a setback for Steven Rattner's private investment firm. The fund is operated by Quadrangle Group, the New York-based firm run by former New York Times reporter Rattner. Media, Tech Moguls in Off-the-Record Talks AllThingsD Quadrangle Group is holding its annual Foursquare conference of media and tech bigwigs in New York this week. No news media is allowed at the private equity firm's gathering, which is expected to draw the likes of Steve Ballmer, Peter Chernin, Philippe Dauman, Barry Diller and Sam Zell. Disney to Target Cellphones of Park Visitors Los Angeles Times Disney has struck a deal with Verizon that will allow it to remain in wireless contact with its theme-park visitors -- even after they step outside the turnstiles. A new "virtual tour guide" mobile-phone app could extend beyond Disney theme parks, with follow-up marketing messages. Disney Eyes Palin for 'Desperate Housewives' New York Post ABC "Desperate Housewives" series creator Marc Cherry is said to be "very hot to trot" to have Sarah Palin appear on the season-five finale of the series. "The idea has gone over surprisingly well with execs at Disney." But an ABC rep insisted: "There's no truth to it." Time Warner to Curb Distribution of DVDs Wall Street Journal Time Warner film studio Warner Bros. is getting out of the business of distributing DVDs in South Korea because of Internet piracy, marking the latest Hollywood withdrawal in the leading wired country. In April, Disney switched to licensing for releasing DVD and Blu-ray discs. Redstone's Midway Games Sees Shares Drop New York Post Shares in struggling Midway Games, Sumner Redstone's gamble on the video game business, sank to an all-time low Tuesday amid investor concerns about sale prospects. The recent exit of chief Shari Redstone has been viewed as a sign that Midway might be ripe for disposal. Virgin Media to Cut More Than 2,000 Jobs BBC U.K. cable group Virgin Media said it plans to cut some 2,200 jobs by 2012, about 15% of its workforce, as part of a group-wide overhaul. Virgin Media said the changes are "critical" to ensuring it is positioned to compete effectively. The group will not start cutting jobs until late next year. Disney to Seek Growth in Middle East Foray Financial Times Disney is making its first foray into Arabic filmmaking to tap into growing demand in the Middle East for family entertainment. Disney sees its new films playing in markets such as Morocco, Kuwait and Qatar. The region is "ripe for Disney content," said company exec Jason Reed. Viacom to Keep Headquarters in Times Square New York Post Viacom won't be leaving the bright lights of Times Square after all. The Sumner Redstone-controlled company has inked a deal to renew its lease for over 1 million square feet at 1515 Broadway, the tower famously fronted by the MTV studio, through at least mid-2015. Viacom Pays $300M to 'Rock Band' Creators Bloomberg Viacom will pay the creators of the "Rock Band" video game bonuses exceeding $300 million as part of the 2006 acquisition of their company. "We may not have anticipated the payment would be that high," said a Viacom spokeswoman. "But it's based on what they have achieved." GE Now Seen Likely to Keep NBC Universal Reuters The notion that General Electric would like to sell NBC Universal has circulated for years. But the credit crisis has suddenly changed prospects of selling the unit. Analysts now don't see the point in dumping NBC at a time when other GE businesses are struggling. Media Giants to Sell Off TV, Radio Stations? Wall Street Journal Mounting debt and a sharp drop in advertising at many U.S. radio broadcasters have led to a slashing of their valuations to fire-sale levels. Also: If television network owners could get enough cash payments from cable operators, "they could afford to jettison their TV stations entirely." Big Media Eye Acquisitions Even in Bad Times Fortune Time Warner, News Corp. and Disney hint in their latest earnings reports they may go shopping for new acquisitions, despite the bleak economic outlook. Size continues to confer "advantages in rough environments." The media rivals may be eyeing the properties of the struggling Viacom. Redstone Daughter Resigns from Midway Games Bloomberg Shari Redstone has resigned as chairman of Midway Games, the money-losing video-game firm controlled by her father, Sumner Redstone, to focus on refinancing the family's National Amusements. The move is said to raise the likelihood of "sizable asset divestitures." Redstone's Nephew Wins OK to Revive Lawsuit Associated Press A Massachusetts court has revived a claim by Michael Redstone, a nephew of Viacom chief Sumner Redstone, that the media mogul and his brother cheated him out of shares of National Amusements in a 1972 transaction. He claims the shares belonged to him and his sister. Murdoch, Turner to Battle Again in New Books Atlanta Journal-Constitution Rupert Murdoch and Ted Turner used to exchange barbs about their rival Fox News and CNN cable networks. The two will soon duke it out again in dueling biographies. Turner's "Call Me Ted" will be published this week; "The Man Who Owns the News," about Murdoch, is due out next month. News Corp Accused of 'Tax Avoidance Scheme' Canberra Times The Australian Capital Territory has launched a bold legal assault against Rupert Murdoch, claiming it is owed some $84 million in unpaid taxes and penalties. The territory is suing News Corp. over a so-called "tax avoidance scheme" stemming from a 2004 restructuring of the media giant. Obama's FCC Chair May Be African American BusinessWeek Barack Obama is considering appointing the first African-American woman as chairman of the U.S. Federal Communications Commission. The short list is said to include Video Access Alliance head Julia Johnson and Public Service Commission of South Carolina member Mignon Clyburn. Big Media: Growth Depends On Serious Change MediaPost Big media execs this week conceded that the advertising bottom is falling out of their Teflon earnings proclamations. Many execs failed to admit that digital continues to alter their economic reality. "Old media" with unchanged legacy costs will likely struggle even after the recession abates. Disney: Lower TV Ratings, 'Sobering Outlook' Los Angeles Times Disney said Thursday that earnings skidded 13% for its fiscal fourth quarter, and execs gave what they called a "sobering outlook" due in part to slowing television advertising sales. CEO Bob Iger warned that ABC, like most other major broadcasters, was seeing lower prime-time ratings. Google, Time Warner Bosses to Advise Obama Telegraph U.S. president-elect Barack Obama has appointed a team of advisers, including Google CEO Eric Schmidt and Time Warner chairman Dick Parsons, to help guide his thoughts ahead of taking office. Other members of the advisory team include billionaire investor Warren Buffett. Tribune May Retain Half of Chicago Cubs Wall Street Journal Sam Zell's Tribune may end up holding 50% or more of its Chicago Cubs baseball franchise as the credit crunch stalled sales talks. In recent weeks, an early plan to sell a 95% stake has fallen to about half as suitors' ability to buy the team and its stadium on Chicago's North Side waned. Murdoch Warns of Job Cuts Across News Corp The Age Rupert Murdoch's News Corp. admits the economic downturn is eating into the global media empire's earnings. "You will see even leaner operations," Murdoch says. "I'm not prepared to say how many people -- I know but I don't want the headlines -- but expect across-the-board cuts." Time Warner Report Hits Entire Media Sector Associated Press Shares of media companies traded mostly lower on Wednesday as softness at Time Warner's magazine unit and a lowered outlook by the company weighed on investors' minds. Analysts blame the deteriorating economic environment for much of the revenue "disappointment." U.S. Media to Feel Loss of Political Ad Dollars Reuters The billions of dollars spent during the 2008 election cycle gave media companies a sorely needed boost. But the world financial crisis that exploded this autumn will keep rattling them well into 2009, analysts say. "The worst case is nothing happens until 2010." Obama to Fight Media Mergers, Boost Google Bloomberg U.S. president-elect Barack Obama will try to use his office to hinder media concentration, say industry observers. In contrast to the Bush administration, an Obama presidency will view media mergers "very skeptically." Also: Obama supports new Internet rules backed by Google. Media Stocks: Big Winners on Election Day MediaPost Election Day was a bonanza for many media stocks, boosted in part by a broad rally overall. The biggest gainers included Viacom and Time Warner. Still, analysts worry that a steep hit may be coming, due to lower advertising revenue that will affect virtually all media companies. Time Warner Center Hosts CNN Election Bash Variety A crowd of journalists, celebrities and execs made the scene at CNN's election-night bash at Time Warner Center in New York. The news network rechristened its cafeteria the CNN Grill. Meanwhile, CNN.com is said to have logged "unprecedented traffic." New York City Aims to Bolster Media Industry New York Observer The Bloomberg administration is launching an initiative to boost traditional media in New York, as the city's Economic Development Corporation searches for a consultant to craft a report offering recommendations on growth. The focus: media's transition "into the electronic age." News Corp: A 'Dramatic Reduction' in Ads Associated Press Oppenheimer & Co. is cutting its profit estimates for News Corp., owner of the Wall Street Journal, ahead of its quarterly earnings report, citing a rapid decline in advertising revenue. The company's networks, TV stations and newspapers are expected to report losses. Time Warner: Print Faces 'Serious Headwinds' Bloomberg Time Warner says full-year profit will rise less than it had forecast because of costs to restructure the Time Inc. magazine unit and "the challenging economic environment." Time Inc. faces "serious headwinds," analysts say. But a new focus on Internet publishing should "pay off." Media Moguls Lose Billions in Financial Crisis Vanity Fair With the stock market in an unsteady downward spiral, several media bigwigs are seeing their net worth vaporize. Rupert Murdoch has lost $4.2 billion; Google's Sergey Brin, Larry Page and Eric Schmidt are down $14.7 billion; Steve Jobs's shares in Apple and Disney shrank by $2.2 billion. Media Congloms Eyed for 2009 Ad Outlook MarketWatch Time Warner, News Corp. and Disney are slated to report quarterly results this week. Wall Street is expected to be anxious to see what impact the economic meltdown will have on early 2009, with U.S. advertising forecasts calling for "levels approaching the worst periods" in history. Disney Expected to Lose Broadcasting Income Bloomberg Disney shares fell 3.4% in New York trading after Merrill Lynch said the slowing economy would reduce its theme park and broadcasting income. "We still do not see our current estimates as a worst-case scenario." Disney is scheduled to report quarterly earnings Thursday. Viacom: We're Working on Problems at MTV MarketWatch Viacom CEO Philippe Dauman says the company is working to resolve ratings problems at MTV, one of its core cable channels. MTV plans to increase the amount of original programming and introduce "interactive applications" to engage its target 12- to 24-year-old viewers. Redstone Might Sell Theaters to Raise Cash Los Angeles Times Sumner Redstone says his privately held National Amusements, which operates 1,500 theaters, owns "valuable real estate." The company must come up with an $800-million debt payment next month. Redstone calls Viacom "the love of my life," the theater circuit not so much. Liberty Media to Use Cash to Reduce Debt Reuters John Malone's Liberty Media says it will use its cash reserves to reduce its debt load and to lower the risk of triggering debt covenants due to turbulent financial markets. The change in attribution of the debt and cash is seen a necessary step in any potential split-off of Liberty Entertainment. Murdoch Speaks on Google, WSJ, Succession Herald Sun Google is "unbelievably, unbelievably competitive," says Rupert Murdoch, in a series of wide-ranging interviews published in his Melbourne Herald Sun newspaper. Also: Media acquisitions "will be cheaper next year," he predicts. Plus: Content on mobiles is a "huge, unchartered" opportunity. Time Warner Will Acquire CBS, Pundit Predicts CNBC What's next for CBS? The company's stock is said to be "falling like a rock." "Somebody is gonna buy CBS," says Michael Wolff, Vanity Fair media columnist, in an appearance on CNBC. "Is it going to be News Corp.? My bet would probably be Time Warner." Viacom's MTV Set to Make 'A Lot' of Layoffs DHD Viacom's MTV Networks is said to be planning "a lot" of layoffs. An announcement is rumored to be coming Tuesday, in the hopes that the news may be overshadowed by Election Day. Employees are "running scared," says one online commenter, "especially at VH1 and Nick." Sony Memo: 'Most Severe' Cutbacks Coming Waxword Sony chief Howard Stringer is said to have sent out an e-mail warning that major cutbacks are in the works, sending a shudder through the company. No specifics of any cuts are available so far. But the sense of the memo is that the cuts will be "most severe." Murdoch: Obama Could Worsen World Crisis Australian Rupert Murdoch warns that Barack Obama could worsen the world financial crisis if he is elected U.S. president next week. Obama's protectionist policies could result in "a real setback for globalization." The News Corp. chief also describes Obama's tax policies as "crazy." Media Must Embrace Change, Murdoch Jr Says Rapid TV News James Murdoch, the son of Rupert Murdoch and News Corp. heir apparent, is calling on the media industry not to obstruct changes in the digital world. Companies that want long-term success must accept changing audience demands, he says. "It is dangerous to remain complacent." Redstone May Be Forced to Sell More Stock New York Post Sumner Redstone insists that the recent sale of CBS and Viacom stock by his holding company was an "extraordinary circumstance" that won't be repeated. Analysts, however, say that Redstone "may not have a choice going forward if debt renegotiations do not pan out in time." Liberty Media May Rethink DirecTV Spinoff Dow Jones John Malone's Liberty Media, feeling the effects of the slowing economy, plans to restructure the debt at its tracking stocks to shore up the credit position at Liberty Interactive. The company is also reassessing the spinoff of DirecTV parent Liberty Entertainment, "given market conditions." Disney Execs Prepare for Possible Layoffs Los Angeles Times Disney execs are meeting to prepare belt-tightening measures that could include job cuts. Staff reductions are being contemplated companywide. Last week, ABC News head David Westin asked his staff to be more "frugal." Disney says that no layoff decisions have been made. Diller: China to Become Top Media Market Hollywood Reporter China will take the place of the United States as the world's biggest media market, predicts InterActiveCorp chief Barry Diller. "The priority is China, Japan, Korea and probably India." Diller adds that he will vote for Barack Obama as U.S. president, because change will be "for the better." Redstone to Seek Sale of CBS, Insider Says Daily Beast Rupert Murdoch is likely to "run a story every day" in his New York Post on the many business problems of rival media mogul Sumner Redstone, says a former Redstone colleague. One longtime Viacom insider believes that Redstone, despite his denials, may be looking into selling off CBS. Media Giants vs Google on White-Spaces Plan Bloomberg News Corp., Disney, CBS and other media companies are urging U.S. regulators to delay a vote on a Google-backed plan to free up unused television airwaves for Internet access. Allowing "poorly conceived" mobile devices to use the "white spaces" might thwart TV signals, they say. Media May No Longer Be Recession-Proof Los Angeles Times For decades, entertainment execs have boasted that no matter how dire the economy, consumers will be willing to spend on entertainment to escape. Now, however, consumers have a vast array of free entertainment options on the Internet. Media companies are bracing for the fallout. Viacom Responds to Google's Book Settlement CNET Google's $125 million copyright settlement with book publishers and authors is moving Viacom -- which has its own $1 billion suit against the search giant -- to issue a statement: "We hope that Google comes more quickly to respect movies and television programming." Media Recession Could Linger for Years Adweek The media marketplace could be mired in a recessionary climate for several years, according to WPP GroupM exec Rino Scanzoni, speaking on a panel held by the International Radio and Television Society. Panelists say it is important to experiment with new media. Mobile is a "sleeping giant." Big Media Coming Apart at the Seams MediaPost Media conglomerates are facing an "uphill battle," analysts say, amid economic stress, lower earnings, massive layoffs and challenged business models. Advertising spending at prior levels "is not coming back." Plus, media companies are unlikely to receive a federally funded bail out. Time Warner to Cut 600 Jobs in Magazines New York Times Time Inc., the world's largest magazine company, is planning a reorganization that will result in job cuts of 6%. The changes will lead to more sharing of writers between magazines. The revamp is intended partly to allow Time Inc.'s big brands to focus on platforms other than print. Big Media Stocks Suffer a Dismal Month Hollywood Reporter October could turn out to be one of the worst months for stocks in U.S. history. Big media stocks have crashed further than the S&P 500: Disney has lost 22.1%, followed by Time Warner (-23%), News Corp. (-23.8%), Viacom (-27.7%), Sony (-28.8%) and CBS (-39.4%). Martha Invests in Pingg for Online Invitations CNET Martha Stewart Living Omnimedia is acquiring an undisclosed stake in Pingg, a New York-based online invitation creation and event management service. The investment aims to improve the "digital presence" of Martha's company. Pingg's tools will be worked into Martha Stewart's Web site. Viacom 'Copyright Cop' Targeted by Google MarketWatch Google is seeking internal documents from BayTSP, a firm hired by Viacom in its $1 billion copyright infringement lawsuit against the search giant. Google claims that the documents will prove that Viacom uploads its own content to YouTube while asking BayTSP to avoid flagging it. Redstone to Face Trouble with Refinancing New York Post National Amusements, the movie-theater chain that controls Sumner Redstone's interests in Viacom and CBS, is said to be facing the difficult task of getting some 50 lending institutions to unanimously agree on revised terms to refinance $800 million of the company's debt. Murdoch Eyes Acquisitions in French Media Bloomberg Rupert Murdoch is seeking investment opportunities in France, according to a report by French financial newspaper La Tribune. Murdoch's son James has asked a French investment bank to study the market and visited Paris three times in the past year to meet with potential partners. Murdoch Raises Eyebrows by Hosting Politician Independent British politician David Cameron accepted free flights to hold private talks with News Corp. chief Rupert Murdoch on his luxury yacht off a Greek island this summer, according to a new disclosure. The Conservative Party leader is declining to reveal details about the trip. Disney: A 'Home-Run Trade' Thanks to 'HSM' CNBC James Altucher, founder of Stockpicker.com, says that Disney will be a "home-run trade" thanks to its new "High School Musical 3" movie. The teen film is "going to be a huge release for Disney. ... The one thing people will not cut back on during a recession is their children's happiness." Viacom, CBS Shareholders Share Redstone Woes Fortune Sumner Redstone's personal debts are causing Viacom and CBS shareholders a lot of pain. Over the past year, CBS share prices fell 72% and Viacom's have dropped 54%. Media wags are still handicapping whether one or both of the companies he controls might end up in play. Disney to Take On Murdoch with German ESPN Bloomberg Disney plans to bid for the live pay-TV broadcast rights to Germany's top soccer games and will start a local German-language ESPN sports channel to broadcast the matches. A bid for the German games would pit ESPN against Germany's Premiere, in which News Corp. owns 25%. Time Warner: World's Largest Blog Publisher AOL Time Warner's AOL, on the third anniversary of its acquisition of Engadget publisher Weblogs Inc., says it is now the largest global publisher of blogs. Its titles range from TMZ to BloggingStocks. AOL plans to launch of number of new blog brands and expand its blog titles internationally. Disney to 'Regenerate' Lucrative 'HSM' Wall Street Journal As "High School Musical 3" hits movie theaters Friday, Disney is grappling with how to ensure that its lucrative franchise continues as cast members "mature." A new, younger group of singing and dancing students will be introduced. "We're calling it regeneration," says Disney chief Bob Iger. Weinstein Studio Loses Longtime Execs New York Post Several top execs are leaving the Weinstein Co., which is still struggling to produce a big hit and quell rumors of financial trouble after three years in business. Execs Michelle Krumm and Maeva Gatineau are exiting after more than 11 years with Harvey and Bob Weinstein. Redstone Rejects Sale of Viacom, CBS Wall Street Journal Sumner Redstone says there is "not a chance" he would sell Viacom or CBS to resolve the debt issues facing his family holding company, National Amusements. Viacom and CBS are "two great companies." He adds: "We have no intention to sell any more stock and I'm decisive about that." Murdoch Takes Issue With New Biography New York Times Rupert Murdoch is raising objections with writer Michael Wolff and publisher Doubleday about the forthcoming biography "The Man Who Owns the News," which suggests that he is embarrassed by his Fox News Channel. The book contains "damaging misstatements," Murdoch says. Karmazin: Sirius XM Radio Faces Big Debt BusinessWeek Sirius, which completed a merger with XM Satellite Radio in July, is facing a serious cash squeeze. It has more than $1 billion in debt coming due next year, and it doesn't have the money, at least not yet. Sirius insists it can continue to fund operations and avoid filing for bankruptcy. Martha In Feud With New Co-CEO Millard New York Post A rift is said to be developing between Martha Stewart and new co-CEO Wenda Harris Millard. The pair "isn't seeing eye-to-eye" on a number of operational issues. Companies in the online world from which Millard hails are hoping things get bad enough that they can steal her away. Media Bosses Lose Cachet on Wall Street Dow Jones The global financial crisis is threatening some of the media's elite controlling shareholders amid a chaotic industry transition to the digital age. Media moguls who rose to prominence while keeping a tight grip on control of their empires are "losing some cachet" on Wall Street. U.S. Media Cast Wall Streeters as 'Villains' Bloomberg Film and television studios are rushing to tap America's fixation with the financial crisis and anger at Wall Street execs. News Corp. is making a sequel to the movie "Wall Street"; Time Warner is developing a film called "Confessions of a Wall Street Shoeshine Boy." Viacom Chief Redstone Files for Divorce Reuters Viacom/CBS chief Sumner Redstone is filing for divorce from his second wife, Paula Fortunato, after five years of marriage, citing "irreconcilable differences." The couple's "marital settlement agreement" reportedly will have no impact on Redstone's business interests. Comcast Cuts 300 Jobs in Consolidation Philadelphia Business Comcast plans to eliminate 300 positions in its Eastern Division as a result of a consolidation of the division's six regions into four. The U.S. cable, Internet, phone and media company says that most of the jobs being eliminated are at the division and regional management levels. News Corp Vows Fight for 'Tasteless' TV B&C The U.S. government needs to get out of the business of regulating "indecent" broadcast speech, says News Corp. president Peter Chernin, speaking at The Media Institute's annual awards dinner. News Corp.'s Fox Broadcasting will "fight" to put "even tasteless content on the air." NBC Universal Eyes Sale of a Film Unit New York Times NBC Universal's Universal Studios is in advanced talks to sell Rogue Pictures, one of its two specialty film labels, to Relativity Media, a private production and financing company. The sale would include about 25 library titles and more than 30 projects in development. Carl Icahn Doubles Stake in Lions Gate Los Angeles Times Carl Icahn is more than doubling his stake in Lions Gate Entertainment, Hollywood's largest independent movie and television studio. The activist shareholder has led campaigns in the past to shake up Time Warner and Yahoo. Lions Gate execs say: "We value Carl's input." Disney Seeks Probe of Lehman Officials Los Angeles Times Disney is joining with other Lehman Bros. creditors to demand an investigation into the actions of the bank's officers and directors in the days before its collapse. Disney says it was owed $92 million from a currency exchange on the day the holding company filed for Chapter 11. Viacom, VH1 Sued by Crash Victim's Parents Chicago Tribune A wrongful-death lawsuit is being filed against Viacom and VH1 by the parents of a Chicago woman who was killed when a driver who was hauling sound equipment for the reality show "Rock of Love With Bret Michaels" fell asleep, crossed the median and slammed into her vehicle. Redstone May Be Forced to Sell Viacom, CBS New York Post Media mogul Sumner Redstone, caught in a credit crunch, may be forced to sell off Viacom or CBS. Even the sale of assets such as CBS radio stations or publisher Simon & Schuster might not be enough to cure the cash shortfall. Also: Redstone is said to be ending his five-year marriage. Murdoch Hints at $5 Billion Acquisition Spree Financial Times News Corp. has a $5 billion "war chest," says chief Rupert Murdoch. "We are as well positioned as we can be to face what may well turn into a prolonged economic downturn." He adds that he would consider buying Viacom or CBS assets "if they were at a very reasonable price." Time Warner Ups Stake in 'Lara Croft' Maker Financial Times Time Warner is increasing its stake in SCi Entertainment, leading to speculation that the media giant could be looking to bid for the U.K. computer games maker. Two of SCi's games, "Lara Croft: Tomb Raider" and "Hitman," have already been made into major motion pictures. Media Titans Least 'Generous,' Conde Nast Says Portfolio Conde Nast Portfolio's list of the 50 most generous U.S. billionaires ranks Rupert Murdoch in last place, for declining to disclose his donations. Sumner Redstone, who also refuses to reveal his donations, comes in at No. 47. Conde Nast's own Donald and S.I. Newhouse place at Nos. 36 and 37. PwC: Traditional Media Have Five Years Left Press Gazette Traditional media isn't dead yet "and won't be for the next five years," according to PriceWaterhouseCoopers exec Marcel Fenez. "The over-50s are helping to sustain traditional media, and also in many of the emerging markets there is still plenty of room for traditional media." Murdoch: 'Unprecedented Challenges' Ahead Courier Mail News Corp. chief Rupert Murdoch, in his address to shareholders in New York, says the media giant will "most certainly be tested" by "what may well turn into a prolonged economic downturn." Fiscal 2009 will be "a year of many, in some cases unprecedented, challenges." Redstone May Have to Sell More Viacom, CBS TV Week Sumner Redstone's National Amusements says it is in talks with its bankers about the company's debt as a result of the sharp drop in the value of CBS and Viacom stock. The company may be forced to sell "all of its nonvoting shares and even begin to sell some of its voting shares." Malone Eyes 'Cheap' Media Buys Like Viacom Financial Times Liberty Media chief John Malone is eyeing the "wild" yields offered by other media companies' debt, echoing the tactics through which he built his cable empire. Liberty is "probably not the right buyer" for AOL's dial-up business. But many content companies, such as Viacom, "look cheap." Hollywood Execs Expect to See Major Cuts Fortune Hollywood's big players are scrambling to determine how the economic meltdown will impact their businesses. While the film industry is seen as relatively protected for at least a year or two, television costs will be under pressure as advertising weakens. One TV exec predicts "major cuts." Media Industry Seen on 'Brink of Carnage' Journalism.co.uk Traditional media are set for an "apocalypse," predicts U.K. Guardian digital chief Emily Bell. Mainstream media are failing to produce differentiated content online amid a "hurricane" of user-generated material. The surviving media brands "will undergo a long period of unprofitable existence." Future ROI: Digital Beats Traditional Media MediaPost Economic shifts and new technologies are pushing advertisers to digital platforms and away from traditional media, according to top ad execs. Advertisers are becoming "more restless" about results. More of them will "invest in content that will play on the Web, on mobile devices." Chernin: Actors Are Foolhardy to Mull Strike TV Week News Corp. president Peter Chernin says that labor talks with the Screen Actors Guild are going "horribly," adding that a possible strike would be "devastating." Given the state of the economy, "it's genuinely foolhardy to think this is an appropriate time for actors to go out on strike." Big Media Could Be Helped by Recession Forbes A recession could boost traditional media's control over the digital media ecosystem by giving it an opportunity to buy smaller upstarts or watch them get crushed. Advertisers are shying away from "experimental" platforms, which could hurt the likes of Facebook but maybe not "old" media. Viacom's Dauman: Be Prepared to Adapt Mediaweek Viacom CEO Philippe Dauman remains confident that his company is better situated than most to weather the economic downturn. "You have to be prepared to adapt to changing circumstances." He adds: "I'm very pleased we didn't use a lot of our capital to make one big splashy acquisition." Murdoch's MySpace Seen as Smart Buy TechCrunch Three years ago, Rupert Murdoch bought MySpace for $580 million -- which appears to be money well spent. The social network is estimated to be worth between $3 billion and $20 billion. MySpace parent Fox Interactive Media is projected to pocket $1 billion in revenues next year. YouTube: Media Must Embrace Change Screen Daily YouTube CEO Chad Hurley, seeking partnerships with content owners, claims the difference between old and new media is merely "semantics." Perhaps alluding to Viacom's copyright lawsuit, Hurley says: "Do you circle the wagons and push back change, or do you embrace it?" Viacom, CBS Warn of Deteriorating Ad Sales Bloomberg Sumner Redstone is selling about one-fifth of his controlling stake in Viacom and CBS to pay down debt. The sale plan is announced as both Viacom and CBS warn that deteriorating advertising sales will slash their profits, prompting their shares to drop and bring down other media stocks. Time Warner: Twilight of the Media Idols New York Observer Big media, like the financial world, sees dark days ahead, say panelists speaking at the Time Warner Summit: Politics 2008. The breakneck speed of the Internet is a big part of the media's problems. Blogging is "just not what we do well," admits Vanity Fair editor Graydon Carter. Big Media, Bad Idea: Synergy Isn't Working Portfolio Synergies between the divisions of media giants like Time Warner and Viacom aren't blossoming as expected, observers say. Conglomerates don't work "from a financial point of view," says Porter Gibb of Mediatech Capital, "because they totally depend on having good management." Sirius XM Radio to Lay Off 80 Staffers Orbitcast Sirius XM Radio is reported to be laying off about 80 employees, mostly at the satellite radio company's music channels. CEO Mel Karmazin is "concentrating on the talk formats, which are the ones where he can sell ads." Another round of job cuts may come in early November. Playboy Cuts 80 Jobs as Economy Tanks Crain's Chicago Playboy is eliminating 80 jobs and warns of a third-quarter loss, as a worsening economy forces the company to make cuts. Some 55 employees will lose their jobs, and 25 open positions won't be filled. Other cuts include exiting the DVD business and outsourcing newsstand sales. Viacom Workers Brace for Imminent Layoffs Portfolio Layoffs are said to be imminent at Viacom. "That's the word on the street," says one source. "It's been under-the-radar, people just talking behind closed doors." The media giant's stock is down about 50% since last fall; MTV and other key divisions continue to underperform. HBO Top Exec Exits as Company Retrenches Los Angeles Times Longtime HBO Films president Colin Callender is leaving the company to launch his own entertainment firm. "This was solely my decision to leave," he says. HBO, like other parts of Time Warner, is retrenching; Callender's duties will be assumed by two of his subordinates. Media, Ad Biz Outlook Is 'Really Negative' Mediaweek A "long and deep" consumer recession is coming, says Merrill Lynch media analyst Jessica Reif-Cohen, speaking at the Media and Money conference organized by Dow Jones and Nielsen. The media and advertising industries are likely to be hit hard, resulting a "really negative" outlook. Eisner: I Still Have Faith In (Most) Media Screen Daily Michael Eisner, the former Disney CEO and founder of new-media company Tornante, says he continues to "have faith" in all media. The shifting media landscape, he adds, is a good thing for content producers -- but not necessarily for companies with "old media" distribution platforms. Redstone Daughter: Don't Blame Me for Sale Wall Street Journal In a sign of renewed tension in media mogul Sumner Redstone's family, his daughter Shari is issuing a statement insisting that the movie theater business she runs isn't to blame for the forced sale of a chunk of the family's holdings in Viacom and CBS: "The implication ... is not accurate." Media In a Muddle from Heavy Debt Loads New York Post Fallout from the credit crisis could mean tough times ahead for media companies carrying heavy debt loads. Companies that loaded up on debt in the leveraged buyout boom -- Tribune, Univision and Clear Channel -- are drawing concern. Some could have "significant problems." Murdoch-JC Decaux Ad Deal Falls Through Guardian Talks between News Corp. and Paris-based JC Decaux over a $1 billion deal to create the world's biggest outdoor advertising company are ending because the credit crisis is making financing a deal too difficult. The deal would have created the world's largest outdoor ad group. News Corp Moves on Sequel to 'Wall Street' Hollywood Reporter With the financial world in turmoil, News Corp.'s Fox movie studio is ready to revisit if greed is indeed good by developing a sequel to the 1987 Oliver Stone film "Wall Street." One wonders: Will the Wall Street Journal and Fox Business Network -- new company siblings -- get cameo roles? Universal to Distribute DreamWorks Films Los Angeles Times In a move that brings Steven Spielberg closer to reestablishing his independence, NBC Universal's Universal Pictures will distribute the movies produced by the filmmaker's new DreamWorks studio. However, Spielberg's plan to fund his venture is being slowed by the credit crisis. Viacom CEO Urges Industry 'Optimism' Hollywood Reporter Viacom president Philippe Dauman says he remains confident about the outlook for media performers, despite the shock sell-off of $233 million in CBS and Viacom stock by chief Sumner Redstone. The stock sales will deliver "investment opportunities," he says. Time Warner Panels Talk Politics, Blogs Variety Notables from media, politics and popular culture are gathering at the two-day Time Warner Summit: Politics 2008, held at the media giant's headquarters. One theme throughout many of the sessions is the atomization of news coverage due to blogging and niche cable news. Disney Enters Content Deal with MSN Video New Media Age Disney-ABC-ESPN Television is entering its first Europe-wide distribution deal for Stage 9 Digital Media, the Disney-ABC new-media studio, with MSN Video. Two short-form comedy series, "Squeegees" and "Voicemail," will be made available to MSN Video viewers across Europe. Abu Dhabi to Open World-Class 'Media Zone' National Will Abu Dhabi replace New York City as the world's media capital? The oil-rich United Arab Emirates is launching a "media zone" to nurture content creation backed by Western media including Time Warner's CNN. The hub is named twofour54, after Abu Dhabi's geographic co-ordinates. New York's Media Prepare for Tough Times Crain's New York Every business sector in New York City stands to be affected by ongoing economic uncertainty. Media outlets are staring down reduced advertising revenues. "This crisis affects everyone," says NBC exec Frank Comerford. "Local media will be hit particularly hard." Natl Geographic Ties Up with Abu Dhabi Media Washington Post National Geographic is entering a $100 million partnership with Abu Dhabi Media, a media company owned by a Middle Eastern government, aiming to double its theatrical film output. The deal could produce half a billion dollars' worth of films over the next five years. Time Warner Hits New Low With Ad Concerns Blogging Stocks Time Warner shares hit a new 52-week low on Friday. Until recently, the company performed better than most of the media giants. But it now faces questions over the fate of AOL, in addition to advertising weakness at its magazines. Analysts continue to say the magazine unit should be sold. NBCU Gets Boost from Cable, Not Broadcast MarketWatch NBC Universal's third-quarter profit is up 10%, lifted by strong results at company cable networks Bravo, USA, CNBC and MSNBC. At the NBC broadcasting network, however, profit is down about 5%, as owned-and-operated television stations see weakness in advertising sales. Martha Hires Magazine Veteran for Digital Post Associated Press Martha Stewart Living Omnimedia is naming Gail Horwood to the newly created position of senior VP for digital programming and strategy. She joins the company from InStyle.com, where she served as executive director. Horwood is a founding editor of Epicurious.com. Natl Geographic Ties Up with Abu Dhabi Media Washington Post National Geographic is entering a $100 million partnership with Abu Dhabi Media, a media company owned by a Middle Eastern government, aiming to double its theatrical film output. The deal could produce half a billion dollars' worth of films over the next five years. Time Warner Hosts Political Media Confab New York Post The media fur will be flying at "Politics 2008," a series of high-powered roundtables to be held at Time Warner headquarters in New York on Monday and Tuesday. Diametrically opposed liberals and conservatives will duke it out on topics like the impact of the political blogosphere. Digital Startups Seek Old Media's Help Financial Times Some digital-media startups are seeking refuge from the souring economy in the traditional media companies they once sought to usurp. Execs at News Corp., Viacom and Disney say they are fielding increasing numbers of pleas from entrepreneurs seeking funding or outright purchases. Big Media Shares Plummet to New Lows MarketWatch Every major diversified-entertainment stock fell to its lowest point in at least a year on Thursday, with some falling to their weakest levels in five years as ongoing credit fears rock the U.S. stock market. Shares of advertising-dependent CBS hovered at their worst level in a decade. Media, Entertainment Outlook Uncertain Associated Press Deutsche Bank is forecasting a recession in 2009 in both the United States and Europe -- two regions that generate most of the media and entertainment sector's revenue. Deutsche has a "buy" rating on Time Warner and Disney and "hold" ratings on Viacom and CBS, among others. Disney Shares Drop on Analyst Downgrade Los Angeles Times Disney shares tumbled nearly 6% Wednesday after Merrill Lynch downgraded the company's stock because of concerns about the souring economy: "We think there is significant risk to the stock. People who don't have jobs simply do not go to Disney World." News Corp Stock Takes Hits from Analysts Bloomberg News Corp. is having its stock-price projection cut to $15 from $20 by Merrill Lynch because of deteriorating advertising markets. Also, Deutsche Bank is lowering its recommendation on the media giant's stock, citing economic pressures. Media stocks are "increasingly difficult" to value. NBC Universal Shutting Down Weather Plus B&C NBC Universal is pulling the plug on Weather Plus, the 4-year old digital venture between NBC and local affiliates that provides 24-hour local weather service on digital tiers. NBCU acquired a minority stake in The Weather Channel in July, rendering Weather Plus all but redundant. Disney: Blu-Ray to Overtake DVDs by 2010 Bloomberg Disney forecasts sales of high-definition Blu-ray discs in the United States will overtake DVDs within two years. Consumers will adopt the new technology "much sooner than we think," says Disney VP David Jessen. "It's right on the verge of becoming really big." News Corp Buys Ringtone Company Jamba AFP Internet infrastructure company VeriSign is selling its minority share in mobile entertainment joint venture Jamba to Rupert Murdoch's News Corp. for $200 million. Jamba is a creator of mobile content such as ringtones. The News Corp.-VeriSign joint venture was created in 2007. Comcast Acquires Radiance Technologies Denver Business Comcast Media Center is buying Santa Clara, Calif.-based Radiance Technologies for $5 million. Radiance provides systems to move and manage large digital assets for advertising and other services. Comcast Media Center is a unit of U.S. cable systems giant Comcast. Viacom Targets Investors Behind YouTube MarketWatch As part of its effort to prove that the business model behind Google's YouTube depends on copyright infringement, Viacom is filing discovery requests against Sequoia Capital and other early investors who seeded the video site and cashed in when they sold it two years ago. Time Warner In Online Move to Stop Piracy Financial Times Warner Brothers Entertainment is starting to release its films online in South Korea before they are released in the country on DVD, shaking up an established distribution model. The studio, which is targeting South Korea due to its high broadband penetration, may target other countries. Viacom: MTV 'Rock Band' the New iTunes? Fortune MTV's "Rock Band" video game is one of the few breakout growth stories in the repertoire of parent company Viacom. The cable network's execs argue that it could become "the new iTunes," because a central part of the game's business model is to offer song downloads for players. Time Warner's CNN iReport Goes 'Awry' Bloomberg The U.S. Securities and Exchange Commission is investigating whether a bogus report on CNN's citizen-journalist site iReport.com intended to push down Apple's stock price. The computer maker's shares dropped 5.4% after a post claimed that CEO Steve Jobs had suffered a heart attack. No Immunity Seen for the Media Business Wall Street Journal Shrinking ad budgets and a weakened economic outlook will take a dramatic toll on all sectors of the media industry in 2008 and 2009 -- including the fast-growing digital sector, according to newly revised forecasts. The Internet isn't expected to be immune from the economic downturn. Disney's $$$ 'High School' Eyed by Rivals Variety Columbia, MGM and Paramount are among the film studios developing teen-dance musicals. While YouTube videos are believed to be making the genre more accessible, Disney's lucrative "High School Musical" franchise is selling millions of CDs, books and video games. Time Warner Cable Sends Viewers to Web New York Times In the midst of a contract dispute with LIN TV, which owns 15 television stations, Time Warner Cable is telling its customers to hook up a computer to their television and watch their favorite shows using the Internet. The cable operator made a video showing how to watch programs online. NBCU Eyes Synergy at 'Access,' iVillage Hollywood Reporter NBC Universal is synergizing the syndicated television show "Access Hollywood" with its female-targeted hub iVillage.com. The iVillage entertainment section will sport an "Access"-branded module feeding news links to AccessHollywood.com and will host video from the site. Murdoch's Pay-TV Operation Faces Loss Sydney Morning Herald Rupert Murdoch is facing turbulence in News Corp.'s European pay television expansion, with his $625 million German investment, Premiere, warning it will post a multimillion-euro loss after overstating subscriber numbers. The admission is moving Premiere's CFO to resign. Media Deal Flow Slows In Credit Crisis BtoB The credit crisis is starting to hurt mergers and acquisitions activity in the media and information sector, according to media investment bank Jordan, Edmiston Group's "Third Quarter 2008 M&A Overview" report. "Billion-dollar-plus leveraged transactions have largely gone on hold." Big Media: Limited Impact by SAG Strike HuffPost A possible strike by the Screen Actors Guild would have a limited impact on the credit profile of most major U.S. media companies in the short term, says Fitch Ratings. However, a prolonged strike "would be incremental to the negative effect of the weakening advertising market." Viacom Advised to Sell Off Paramount New York Post Viacom should sell Paramount Pictures to give a boost to its wilting stock price, says Pali Capital analyst Richard Greenfield. Time Warner could be an interested buyer because it "will have significant cash at year-end and has stated its desire to expand its content business." Time Warner Spat Darkens TV Stations Multichannel News LIN TV stations carried on Time Warner Cable systems are going dark as the television station operator fails to reach a new retransmission-consent deal. LIN and Time Warner are at odds over the compensation LIN is seeking for carriage. The standoff involves 15 U.S. stations. News Corp Urges Ease of Merger Rules Multichannel News News Corp. wants the U.S. Federal Communications Commission to release it early from merger conditions imposed on its takeover of DirecTV. The conditions allowed pay-TV distributors to take News Corp. to arbitration to settle disputes over access to its television stations. Media Deals In Trouble at Time Warner, CBS Wall Street Journal Dealmaking prospects for a media industry in transition are dwindling as the outlook darkens for the U.S. economy, analysts say. Among the deals possibly in limbo are those related to Time Warner's AOL, CBS's radio stations and Cablevision's cable networks. AOL is "a toxic asset now." Buffet to Invest $3 Billion In NBCU Parent CNBC General Electric plans to sell $3 billion of shares to Warren Buffet's Berkshire Hathaway and offer another $12 billion in shares to the public. The sales will improve GE's liquidity and give it the option of more acquisitions at a time of market turmoil, says the parent of NBC Universal. Disney, Studios to Invest In Digital Cinema Los Angeles Times Disney, NBC Universal and Lionsgate are joining News Corp. and Viacom in pledging to support a $1-billion plan to convert 35-mm film projectors to digital technology in thousands of movie theaters across North America. The move is expected to hasten the deployment of 3-D in theaters. U.S. Media Industry Has 'Healthy' Liquidity Bloomberg Disney, News Corp., Time Warner and Viacom are well positioned to weather current market conditions, according to a report from Fitch Ratings. "The potential to deconsolidate media portfolios to pay down debt could further support creditors in a downturn." Media-Stock Gains Lag Broader Rebound B&C The U.S. stock market is bouncing back, reclaiming a big chunk of Monday's jarring decline -- though media stocks are lagging. Heightened recession fears are making investors worry about advertising. On Tuesday, Disney rose 3.23%, CBS rose 1.96%, Time Warner advanced 1.63%. Disney Outperforms; CBS Most Vulnerable Associated Press Disney's share price is outperforming its media peers, as investors value consumer loyalty to its brands including ESPN. The worst-performing stock in the sector is CBS, largely because the company's radio and television stations are seen as vulnerable to "softer advertising trends." Hollywood to Block DVD-Copying Software Los Angeles Times Hollywood's major movie studios are suing RealNetworks to prevent it from distributing DVD copying software that they said will allow consumers to "rent, rip and return" movies or even copy friends' DVD collections. The suit alleges the program illegally bypasses copyright protections. AT&T to Offer Products Across Devices Bloomberg AT&T, seeking to fight off competition from cable companies selling phone service, is making management-team changes to speed up product introductions across its wireless, Internet and television businesses. The changes align units that target businesses and consumers. Media Stocks Dive on Bailout Rejection MarketWatch / Reuters Media companies are seeing their stocks fall hard after the U.S. House of Representatives rejected the $700 billion Wall Street bailout plan. News Corp. and Viacom are hitting their lowest levels in four years. Also: Tech stocks like Apple, Google and Yahoo are taking a tumble. Weinstein Battles 'Insane' Blog Story New York Post Weinstein Co. boss Harvey Weinstein claims he is being unfairly portrayed as a heartless ghoul who will stop at nothing to get a movie finished in time for Oscar consideration. Blogger Nikki Finke is posting an email that purports to document Weinstein's heavy-handed tactics. News Corp Decline Hits Murdoch In Wallet Forbes News Corp. chief Rupert Murdoch lost $2 billion of his personal fortune over the past year due to a 34% decline in his company's stock price, according to a calculation by Forbes. Murdoch lost $1,000 every 15.78 seconds, or $63.38 per second -- about $1.5 million an hour. 'Few Chances' for Media Company Deals Reuters Few opportunities exist to buy media companies right now, according to Liberty Media boss John Malone. "Certainly, a lot of stocks are cheap," says the well-known dealmaker. But companies in the media space "aren't necessarily for sale, based on their stock prices." Liberty Chief In Talks Over AOL Division Financial Times Liberty Media chief John Malone is beginning talks about swapping his stake in Time Warner for the Internet access operation of the media giant's AOL. "There have been limited discussions," Malone says. Resolving the future of AOL is said to be Time Warner's main goal. Google Moves Up on Media Company List Ad Age Time Warner is poised to cede its No. 1 position on Ad Age's list of the 100 Leading Media Companies to Comcast with the pending spinoff of Time Warner Cable. Google is cutting past former giants "like a hot knife through butter" to land at No. 12. "This is a changing of the guard." GE Is Committed to NBCU, Zucker Says Hollywood Reporter NBC Universal CEO Jeff Zucker is reiterating the strength of parent General Electric's commitment to the media company, calling it "profound" despite the recent financial turmoil. "NBC's significance only increases if there is less coming from the financial divisions," he says. Media: Forced to Move Into Digital In '09 MediaPost The U.S. financial implosion will hit Madison Avenue by 2009 with such an impact that media companies will be forced to find ways to generate new revenues from digital, writes Diane Mermigas. "It will be media's first painful step toward securing its future." 2009 will be "survival of the fittest." CBS: 'Everybody Wants to Buy New Media' Hollywood Reporter CNET might not have the sex appeal of YouTube, MySpace or Facebook, but CBS chief Les Moonves is working hard to make a return on his recent $1.8 billion acquisition. The CNET sites are attracting hundreds of millions of advertising dollars -- an achievement that so far is eluding YouTube. Viacom Sees Rocky Path for Pay-TV Venture Fortune Cable and satellite rivals are wondering whether the proposed, still-unnamed Viacom-led movie channel with MGM and Lionsgate, announced in April, will ever be launched. One cable exec says: "If you don't have a single distribution deal within six months of announcing, you're dead." NBC Should Be Sold Off, Wall Streeters Say Dow Jones As General Electric struggles in amid the U.S. financial crisis, the debate on Wall Street over whether it should sell off NBC Universal is heating up. "NBC is not a strategic asset for GE," analysts say. But CEO Jeff Immelt insists that the media unit is "very well-positioned in the cycle." Gabelli Warns Cablevision, Media General Wall Street Journal Investor Gamco CEO Mario Gabelli is firing a warning shot at cable operator Cablevision and newspaper publisher Media General, saying that he may seek to nominate new board members and hold talks with management on issues such as corporate governance. Murdoch: U.S. Is In for a 'Hard Time' ABC / Politico News Corp. chief Rupert Murdoch says the United States has no option but to spend $700 billion to salvage the battered U.S. financial system: "I think we'll be O.K. But we're in for a hard time." Also: Murdoch is said to appear "quite chummy" with Republican VP contender Sarah Palin. Media, Tech Firms to Form Arts+Labs InternetNews Viacom, NBC Universal and the Songwriters Guild of America are teaming with Microsoft, AT&T and Cisco to form a new advocacy group called Arts+Labs. The members hope their collective heft can tackle obstacles in the way of legal downloads -- namely rampant online piracy. All Media Are Struggling for Ad Dollars Miami Herald All categories of media are battling difficulties due to shifts to the Internet and a dismal economy, according to industry observers. The big problem now is over-supply, says former Merrill Lynch analyst Lauren Rich Fine. "Taken one step further, it means not all media will survive." Yahoo, Time Warner May Revive AOL Talks Financial Times Yahoo's new board of directors is said to have approved a new round of discussions with Time Warner over the future of its AOL unit, potentially reigniting negotiations for a combination of the two Internet businesses. Active deal negotiations are not underway at this stage. Media: Product Placement Is Vital for Us B&C Product placement is integral to the survival of free media that is supported by advertising, says a group of big media companies, in an appeal to the U.S. Federal Communications Commission. The group is seeking to prevent the agency from adopting any new regulations. Viacom Spars with Realty Firm Over HQ New York Post Viacom and SL Green, the owner of its Times Square headquarters, are at odds over the possible rent increases. Viacom execs are complaining about ongoing construction, the design of the building's new renovation -- and a sudden infestation of cockroaches. Media: Little Hope for Quick Turnaround MarketWatch Despite a rally on Friday, analysts aren't optimistic about the near-term prospects of media and entertainment stocks. Even after the economy recovers, industry stocks will still be out of favor, they say, because changing consumer habits make the media biz a "difficult proposition." News Corp's Murdoch: 'I'm Very Worried' Fox News The U.S. local television station market is "performing very badly," says News Corp. chief Rupert Murdoch, during an interview on Fox Business Network. The newspaper industry "is in real crisis." He adds that he isn't interested in buying NBC: "We like startups." News Corp 'Near Bottom' as Shares Drop Bloomberg News Corp. is attracting value investors and quant fund managers after the company's shares dropped to their lowest level in five years this week. "I hope they're right," says chief Rupert Murdoch of investors' view that News Corp. is near a bottom. Shares will rise "when buyers wake up." CBS Kicks Off Auction of Radio Stations New York Post The U.S. radio market's vibrancy will be tested with the kickoff of the auction for 50 stations owned by CBS. First-rounds bids are due today. "We don't know what the marketplace is," admits CEO Les Moonves. "If we don't get the right pricing for it, we're not going to sell." Viacom to Lose Spielberg, DreamWorks Wall Street Journal Film director Steven Spielberg is raising $1.2 billion from Indian entertainment conglomerate Reliance to reestablish DreamWorks as an independent film studio and break away from Viacom's Paramount Pictures. The new deal comes in the wake of a financial drought in Hollywood. Media Giants Eye Consumer Spending Associated Press Media companies such as Time Warner, Disney, and Viacom are watching the financial system turmoil with a close eye on consumer spending. The big question, according to Moody's Investors Service, is the impact on the economy. Deal financing has "dried up in recent months." NBC Universal Says No to Spielberg Los Angeles Times Squeezed by rising costs, NBC Universal's Universal Pictures is declining to finance Steven Spielberg and Peter Jackson's $130-million animated movie "Tintin," based on the Belgian comic strip. When Spielberg can't get financing, "you know something is up." Time Warner: Five Years After Dropping 'AOL' SAI / Financial Times Five years ago, AOL Time Warner announced plans to drop the "AOL" from its corporate name. Time Warner closed at $13.95 Thursday, down 15% from its $16.45 close on Sept. 18, 2003. Also: Time Warner says it will decide on the future of its floundering AOL unit "fairly soon." Sirius XM Shares Drop on Growth Prospects BusinessWeek Shares of Sirius XM satellite radio have plummeted some 30% in recent days, closing at 88 cents on Sept. 16, a five-year low. Analysts say subscriber growth prospects aren't likely to improve. Satellite radio "appeals very much to a very small group of people." Cablevision Not for Sale, CEO Dolan Says HR / AP Cablevision is not for sale, says CEO James Dolan. That "probably was different a month ago," when deals were easier to finance. Also: Cablevision plans to roll out a system to let viewers record shows without a DVR, only a digital set-top box. Shows will be stored on Cablevision servers. Media Moguls Maintain Sky Isn't Falling Hollywood Reporter Media bigwigs speaking at this week's Goldman Sachs Communacopia conference in New York insist that their companies will weather just about any economic storm. News Corp. may gain market share from weaker rivals, says Rupert Murdoch. "Hard times are good for big companies." Time Warner Promises AOL Decision 'Soon' Financial Times Time Warner will decide the future of its floundering AOL online division "fairly soon," promises CEO Jeff Bewkes. "All of the players, including us, are exploring what kind of scale combination would improve the operating and strategic positioning of AOL and other Internet players." Murdoch Eyes Subscriptions, New Media Dow Jones News Corp. will increase subscription revenue from the Wall Street Journal's Web site by $300 million annually over the next several years, predicts chief Rupert Murdoch. Also, ads on MySpace's home page go for $500,000 per day. "We're moving to subscription models and new media." Diller: Video Ads Will Increase on the Web Hollywood Reporter Advertising models based on traditional television will play an increasing role on the Internet, predicts InterActiveCorp CEO Barry Diller. Video ads, including pre- and post-rolls, will become more prevalent online, he says. Also, social networks are merely the "flavor of the month." CBS to Begin Talks to Sell Radio Stations Bloomberg CBS boss Les Moonves says talks to sell as many as 50 radio stations will begin by the end of the month. The broadcaster sent out proposals to about 40 prospective buyers and has heard from several. "If we don't get the right price, we can always pull back." Viacom Expected to Stay In Times Square New York Observer Viacom is likely to renew its leases at its headquarters building in Times Square, says Greg Hughes, an exec with landlord SL Green. Most of Viacom's leases at 1515 Broadway expire in 2010. "We've have ongoing negotiations with Viacom for what seems like five years." Media Stocks May Feel 'Repercussions' Variety The Dow rebounded on Tuesday, bringing more than a few media stocks up with it. But for the media business, Wall Streeters say the repercussions from Monday's meltdown will be significant: Caution will be the watchword in planning as the financing markets tighten up. Big Media Deals In Trouble, Chieftains Say Portfolio The Wall Street implosion won't be good for getting any big media deals done anytime soon, according to Jeff Zucker, Mel Karmazin and Steven Rattner, speaking at a panel discussion hosted by Conde Nast Portfolio. Big deals "are simply not going to happen." Disney Parks Go Free for Birthday Visitors Orlando Sentinel Next year, everyone will be able to visit a Walt Disney World theme park on his or her birthday and get in free. A free birthday ticket amounts to a $75 discount. Disney officials say the promotion is designed to cash in on a growing trend in "celebration vacations." Viacom Set to Export MTV to Czech Republic Variety A local version of Viacom's MTV is to debut in the Czech Republic next year, following a licensing deal with Central European Media Enterprises. MTV Czech will feature locally produced content alongside subtitled Czech adaptations of MTV staples like "Pimp My Ride." Time Warner CEO May Eye NBC Universal Portfolio CEO Jeff Bewkes is talking up Time Warner, aiming to turn around the media giant's battered stock price. The company may consider buying NBC Universal should it become available, he says. Also, Bebo is "more powerful" than Facebook or MySpace. AOL is still "a mixed bag." NBC Would Take 'Hard Look' at DreamWorks Bloomberg NBC Universal CEO Jeff Zucker says he would take a "hard look" at Steven Spielberg's DreamWorks film studio if it were available. But after its recent acquisitions of Oxygen Media and the Weather Channel, NBC plans to spend the next few months "getting our house in order." Discovery Eyes Acquisitions, Overseas Ads Bloomberg Discovery Channel parent Discovery Communications plans to seek acquisitions after it goes public on Thursday, says CEO David Zaslav. Also, Discovery doesn't plan to make its video content available for free on the Web because non-fiction programming has a longer TV life. Media Shares Drop as Market Is Crushed MarketWatch CBS, Time Warner, Disney and other media stocks are feeling the impact of the Lehman Brothers bankruptcy-protection news. Most media stocks are dependent on advertising revenues. In an economic downturn, many industries -- including financial services -- cut back on ads. Media Confabs Casualties of Bank Woes Hollywood Reporter With the sale of Merrill Lynch to Bank of America and Lehman Brothers filing for bankruptcy protection, a decline in the lineup of media investor conferences is expected. Industry bigwigs often use the confabs to float new strategies or possible deals. Lyne Bypasses Media for Luxe Web Post New York Post Susan Lyne, the former top ABC exec who recently resigned as CEO of Martha Stewart Living Omnimedia, is resurfacing as the new CEO of e-commerce startup Gilt Groupe. "It's an incredibly exciting opportunity," she says. Lyne had been rumored to be headed to Time Inc. Time Warner: We're Now 'Content Co' Financial Times Time Warner insiders refer to the company's new area of emphasis -- its content businesses -- as "Content Co." Key parts of Time Warner's cable networks, film studios and publishing units are said to be performing well. AOL, however, is still seen as a "wart on the company's nose." Tisch Launches Media Ventures Outfit New York Times Jonathan Tisch, co-chairman of the Loews Corporation, is getting into the media business. Tisch is joining Jeffrey Stewart, another Loews exec, to form Walnut Hill Media. The company plans to invest in the production and distribution of films, television shows and online media. Murdoch: I'm Now Less of a Risk Taker Esquire Per the request of I Want Media, Esquire magazine has advanced the online posting of its October 75th-anniversary issue interview with Rupert Murdoch. "I wish I had had more quality time with my children," divulges the media mogul, 77. "I don't know the future. ... I'm just not ready to stop, to die." Google Might Not Take Over Old Media Fortune Google's new joint venture to sell television ads with NBC Universal is said to be laden with caveats. The deal could turn out to be another Google media experiment -- like "Googlizing" the magazine, newspaper and radio industries -- that "we will not hear of again for a long while." Media Group to Create Digital 'Ecosystem' Reuters A group of Hollywood studios and information technology companies, called the Digital Entertainment Content Ecosystem, is working to create a "uniform digital media experience" for consumers. Its proposed new digital framework could turn Apple's "closed" iTunes model "on its head." Media Bigwigs Have Their Spit Examined Fortune Barry Diller's IAC headquarters in Manhattan hosted a "Spit Party" for 23andMe, a consumer DNA testing company, attracting the likes of Rupert Murdoch and Sergey Brin. Guest Tina Brown divulged that her news aggregation Web site will launch Oct. 1. Hollywood Studios 'Don't Get' the Internet VentureBeat Hollywood studios don't "get" the Web, says writer-director Joss Whedon, creator of the online hit "Dr. Horrible's Sing-A-Long Blog," speaking at the TechCrunch50 conference. "They're trying to recreate the model of a successful television show; a very ossified point of view." Time Warner Unlikely to Buy NBC Universal Multichannel News Time Warner is unlikely to acquire NBC Universal after the media giant spins off its cable unit, according to CFO John Martin. Time Warner will maintain a certain "level of discipline" to acquisitions, he says, appearing to dismiss speculation that the company is eyeing NBC. News Corp Makes Moves In Germany, Russia Bloomberg Premiere, Germany's leading pay-television company, is naming News Corp. exec Mark Williams as its new CEO, increasing speculation about a takeover by Rupert Murdoch. Also: News Corp. is negotiating the sale of its Russian billboard unit News Outdoor to JCDecaux of France. Disney Exports 'HS Musical' to China, Russia Times of London Disney is planning Chinese and Russian productions of "High School Musical," as it aims to expand the successful franchise. Disney Channels Worldwide exec Rich Ross adds that the company is eager to launch the Disney Channel in China, Russia and parts of Eastern Europe. Media Moguls to Eye Web, Broadband Buys BusinessWeek Some of the world's top media companies are shedding noncore businesses to give themselves leeway to nab new assets in growing areas, such as the Web and digital television, consultants say. The ability to deliver content via broadband will set off "a new scramble for assets." Traditional Media Forecast to See Ugly '09 Reuters U.S. media companies may be in for a rough 2009, analysts predict. Without the advertising bonanza from this year's Beijing Olympics and the November election season, slowdowns could "whack the hell" out of television, newspapers and magazines. "It's going to be ugly." News Corp on Hunt for Bargain Acquisitions Reuters News Corp., the owner of MySpace, is interested in expanding its digital portfolio of businesses, says COO Peter Chernin. MySpace's ad business is "above budget." However, the company is not looking at any big buys. "Most of the things we're seeing seem a little pricey." Comcast, Time Warner Hope for Digital Gains Associated Press U.S. cable giants Comcast and Time Warner Cable see an opportunity to sign up millions of customers as the nation switches to digital-only broadcasting. Comcast president Steve Burke says the potential digital TV market for his company is about 2 to 3 million people. Disney Calls for Ban on Illegal Downloaders MediaGuardian Disney CEO Bob Iger is calling on Internet service providers to ban people who illegally download content. "We are simply asking for people who are downloading illegal files to get a warning initially then to get their service cut off." We won't "show up with law enforcement." Time Warner May Lose $500M in TBS Lawsuit Bloomberg Time Warner's Turner Broadcasting System unit may lose $500 million after reneging on an oral agreement to sell Atlanta's professional basketball and hockey teams to former Dallas Mavericks part-owner David McDavid, according to a complaint that goes to trial next month. Murdoch Combines U.K. Offices Into 'Campus' Brand Republic News Corp. is reversing its decision to move its British newspapers out of its Wapping headquarters and plans to move the U.K. offices for MySpace, Dow Jones, Fox and HarperCollins in to sit alongside the Sun and the Times. News Corp.'s BSkyB will not be included in the move. Big Media Stocks Rally After Fed Decision Reuters Shares of major U.S. media companies rallied on Monday, some up more than 4%, in the "afterglow" of the Federal Reserve's decision to bail out Fannie Mae and Freddie Mac. The Fed's move "potentially removes some of the extreme downside scenarios," analysts say. Viacom, NBC Hit With Lawsuit Over 'Disturbia' Dow Jones A trust that owns the rights to Alfred Hitchcock's 1954 movie "Rear Window" is filing a lawsuit against Viacom, NBC Universal and director Steven Spielberg over the 2007 film "Disturbia." The suit claims "Disturbia" was conceived to "remake 'Rear Window' for a younger audience." Media Moguls Turn to Breakups to Boost Biz B&C Jeff Bewkes, Sumner Redstone and John Malone are among the media titans embracing the strategy of breaking up their conglomerates in an effort to bolster stock prices. The move to become "more nimble" is seen as a 180-degree reversal of the media merger mania of the 1990s. Murdoch Attracts Praise From U.S. Magazines MinOnline Rupert Murdoch is "foundational to the creation of the new century," according to the new issue of Esquire magazine. Murdoch, who ranks No. 2 on Vanity Fair's latest New Establishment list, is also among the 25 "seniors" in business who are "kicking Gen Y butt," says BusinessWeek. Martha, Emeril Enter Book Deal With Rupert Crain's New York Martha Stewart Living Omnimedia, which owns the Emeril Lagasse franchise, is announcing a 10-book deal between celebrity chef Lagasse and News Corp.'s HarperCollins. Lagasse's cooking titles will released by the new, experimental HarperStudio imprint, which splits profits with authors. Comcast to Appeal FCC Decision on Web Traffic Washington Post Comcast is asking a U.S. federal appeals court to overturn a Federal Communications Commission ruling that the company is improperly managing customers' online traffic. "The commission's action was legally inappropriate and its findings were not justified," Comcast says. Analyst: Time Warner Not Attractively Valued Forbes Michael Nathanson, an analyst with Sanford C. Bernstein & Co., is downgrading Time Warner, lowering his rating to "market perform" from "outperform." Even after the media giant breaks away from its cable arm, "the remaining stub does not look that attractively valued." Murdoch Asianet Takeover Has 'Secret Agenda' news.SmasHits.com Kerala's ruling Communist Party of India-Marxist says media mogul Rupert Murdoch has a secret agenda behind his reported plans to take over the Asianet television channel: "This should not be seen as a routine takeover. They have a clear-cut agenda. They want to change our society." Murdoch Brings Hindi Channels to Virginia Associated Press Rupert Murdoch's Indian television unit Star is entering its first U.S. cable distribution deal with Cox Communications, bringing three Hindi-language channels to Northern Virginia, one of America's largest South Asian enclaves. The company plans to bring the channels to other regions. Abu Dhabi Takes Fortunes to Media World Financial Times Abu Dhabi plans to become one of the world's largest motion picture producers, with $1 billion to invest in productions to be made in Hollywood, Bollywood and beyond. The government-backed funding aims to allow Abu Dhabi to usurp Dubai as the Arab region's leading media hub. Liberty Media to Spin Off Entertainment Dow Jones Liberty Media will spin off Liberty Entertainment into a separate entity that will hold $2 billion in debt incurred in the company's April investment in DirecTV, freeing the parent company to focus on other objectives. Liberty owns 50% of DirecTV, among interests in other outfits. Viacom Unit Acquires Game Maker ScreenLife CNET Viacom's Paramount Pictures is acquiring ScreenLife, the maker of "Scene It," a DVD trivia-game that requires players to identify film clips. The move is designed to boost the studio's profile in DVD, online and mobile gaming. The deal is said to be valued at less than $100 million. Vivendi to Review Stake In NBC Universal Financial Times General Electric has no intention of selling its majority stake in NBC Universal, according to France's Vivendi, which is a fellow shareholder in the U.S. broadcaster. However, Vivendi will review its 20% stake in NBC later this year, says CEO Jean-Bernard Levy. Murdoch Eyes Acquisition of New York Times Vanity Fair Since buying the Wall Street Journal, Rupert Murdoch now wants to own the New York Times, according to Vanity Fair columnist Michael Wolff, who is writing a biography of the media titan. "I've watched him go through the numbers, plot out a merger with the Journal's backroom operations ..." Spielberg Nears Deal with India's Reliance BusinessWeek Steven Spielberg is expected to announce a deal with India's Reliance Communications to restart the DreamWorks studio that he is relocating from Viacom's Paramount Pictures in an acrimonious split. Reliance could become a 50% owner of the Hollywood director's new studio. Hollywood: Fewer Movies, Bigger Bucks New York Times Fewer people went to the movies this summer than last, confirming Hollywood's fears that this year's slate of pictures would not match the crowd pleasers of 2007. But higher ticket prices and a "Batman' sequel delivered near-record revenue to the major studios. Viacom, MTV Headquarters to Get Facelift New York Post SL Green doesn't know yet whether Viacom will stay at 1515 Broadway, but the commercial real estate giant isn't waiting to put a gleaming new face on its Times Square tower. Viacom, which occupies 95% of the tower's office space, has a lease that expires in 2010. Murdoch Bio Fast-Tracked to December New York Post The publication of "The Man Who Owns the News," the new book about News Corp. chief Rupert Murdoch by Vanity Fair columnist Michael Wolff, is being moved up to early December from its original date in February. Vanity Fair will publish an excerpt in its December issue. Sony Unveils Improved PlayStation Portable AP / IHT A revamped PlayStation Portable, with an improved liquid crystal display and a built-in microphone, will go on sale Oct. 16 in Japan. The machine, called PSP-3000, is also being promised for the United States and Europe. Also: Sony is "back in the digital game" under chief Howard Stringer. Comcast to Place a Cap on Internet Downloads New York Times Comcast, one of the largest U.S. Internet providers, says it will begin putting a 250 gigabyte-a-month cap on residential users. Some commentators characterize the decision as having a chilling effect. GigaOm's Om Malik calls the cap "the end of the Internet as we know it." Diller to Launch Preteen Virtual World New York Post IAC/InterActiveCorp boss Barry Diller plans to take on Disney's Club Penguin in the kids virtual world arena with the Sept. 16 launch of ZwinkyCuties.com. The subscription-based service will charge users $5.95 per month for their avatars to use as virtual currency. Viacom: Redstone Family Feud Near Settlement Barron's Viacom chief Sumner Redstone is said to be close to a negotiated settlement with his daughter Shari over the offspring's stake in the media giant's controlling company, National Amusements. Terms being discussed suggest Shari will trade her succession rights. News Corp, Sony Seen as Suitors for MGM BusinessWeek Metro-Goldwyn-Mayer, the fabled-yet-struggling film studio owned by a consortium including Comcast, is said to be asking Goldman Sachs to find potential buyers. The asking price is reportedly $5.2 billion. Sony and News Corp.'s Fox are seen as likely suitors. NBC a 'Keeper' for GE After Olympics Success FT / CNET Record ratings for NBC's coverage of the Olympic Games should silence speculation about General Electric's commitment to the U.S. broadcaster, says chief Jeff Zucker. "Obviously we'll make a profit here." However: Video ad spending on NBCOlympics.com drew a mere $5.75 million. Media Conglomerates Wary of Global Cooling Hollywood Reporter A growing sense that the global economic decline will be worse overseas than in the United States could be bad news for media giants with foreign holdings. Wall Streeters will be eyeing News Corp. -- the most globally diversified media firm -- in coming months for signs of weakness. Disney May Lose Copyright to Mickey Mouse Los Angeles Times Film credits from the 1920s reveal imprecision in copyright claims that experts say could invalidate Disney's long-held copyright to Mickey Mouse. The cartoon character is said to be worth more than $3 billion to Disney. A Disney lawyer dismisses the idea as "frivolous." Viacom's Dora to Explore Older, Racier Market Financial Times Dora the Explorer, the cartoon character adored by children around the world, is facing a makeover amid competition from more mature, racier rivals. Viacom's Nickelodeon is mulling a redesign of some Dora-themed merchandise to make the character "more feminine." Time Warner to Make Fewer, Bigger Movies Wall Street Journal Emboldened by the success of "The Dark Knight," Time Warner's movie studio is setting a new strategy. Warner Bros., like some other Hollywood studios, plans to release fewer films into the crowded marketplace. Some will be centered on properties from corporate sibling DC Comics. CBS to Publish Book by Olympian Phelps Associated Press Olympic superstar Michael Phelps will write a book telling the story behind his historic eight gold medal swims just in time for the holiday season. "Built to Succeed," to be published by Free Press, an imprint of CBS's Simon & Schuster, will be released in December. Cablevision Investor Harbinger Ups Stake Bloomberg Cablevision investor Harbinger Capital Partners says it is looking at all options after raising its stake in the cable-television company to 8.1%. Harbinger, which is also the largest investor in New York Times Co., hopes to meet with Cablevision management "in the very near future." Diller's IAC Breakup Strategy May Pay Off New York Post Barry Diller's IAC/InterActiveCorp empire split into five separate companies Thursday. Based on their initial day of trading, Diller's bet might be paying off, with shares of HSN, Ticketmaster and other operations closing up. Diller now has $1.3 billion in cash for acquisitions. Google, Murdoch Hit By Economic Downturn Property Week News Corp. and Google are responding to souring economic conditions by shelving plans for their respective office expansions in London. News Corp.'s London move is "hampered by the credit crunch," while Google's search for office space is in "abeyance" because of the downturn. Content Is King ... But Not From Old Media CNBC / Fool As user-generated sites like YouTube and Facebook move toward offering more professionally produced content, the old media companies are "not going to be as influential as these new-media distributors," observers warn. Also: Google stands to profit from media's new "ecosystem." GE Sell NBC? That's 'Kooky Silliness' New York Times General Electric boss Jeff Immelt aims to put an end to the talk that the conglomerate will put NBC on the auction block. "I've never considered selling it," he says. The guessing game about GE and NBC amounts to "kooky silliness." He adds: "We're not done doing cable deals.” Viacom Unveils Opulent HQ Cafeteria Contract Construction is complete on a remodeled and enlarged Viacom cafeteria and Paramount Pictures screening room, both located at the media giant's Times Square headquarters. MTV Networks channels air on a giant monitor; screening-room chairs are upholstered in mohair. News Corp Gives Murdoch a Cut In Pay Bloomberg News Corp., whose stock fell 29% in fiscal 2008, is reporting compensation of $27.5 million for chief Rupert Murdoch -- 14% lower than in 2007. News Corp. shares fell the most since 2003 on Aug. 6 after analysts cut profit estimates, citing weak advertising sales. Diller's IAC Prepares Low-Key Breakup CNET Barry Diller's IAC/InterActiveCorp splits into five separate companies Thursday, but the firm isn't planning any fanfare. Diller's renaissance may be coming at an awkward time, as the outlook for online advertising -- the foundation of the new IAC -- appears uncertain. Tribune Tower May Go All Residential Chicago Sun-Times Tribune chief Sam Zell, who in June put the company's iconic Chicago tower on the market, reportedly wants to turn over the building to a residential developer. Such a move would mean relocating the Chicago Tribune staff or squishing a downsized Tribune into the lowest floors. Viacom Roll Outs 'iCarly' Electronics Line World Screen Viacom Consumer Products and Nickelodeon are teaming up with Imation to release a line of tween-themed electronics inspired by the hit series "iCarly" under Nickelodeon's Npower brand. The line includes web cams, camcorders, digital cameras and other electronics. Time Warner Chief: I'm Not Running for Mayor New York Time Warner chairman Richard Parsons says he is absolutely, positively not running for mayor of New York City. "I have said that before -- it's just that nobody's ever listened. Whatever I do next -- and it very well could be in public service -- I want to be passionate about it." Viacom's 'Thunder' Rumbles Over Time Warner Bloomberg Viacom's "Tropic Thunder" was the No. 1 movie at U.S. theaters this weekend, while Time Warner's "The Dark Knight" became the second-highest grossing domestic film of all time after "Titanic." The race between Viacom and Time Warner for first place in 2008 sales is tightening. Time Warner Mulls Making New Acquisition BusinessWeek Time Warner may use the $9 billion cash windfall from the spinoff of Time Warner Cable to make a strategic buy. Scripps Networks Interactive is seen as one possible target. But CEO Jeff Bewkes, gun-shy from the disputed acquisition of Bebo, may look overseas for a smaller deal. Disney's Tinker Bell Gets Online Community Seattle Times Tinker Bell, one of Disney's most popular classic characters, never spoke a word in the studio's 1953 "Peter Pan" movie. But that will soon change. Tinker Bell is being recast in the hope of launching a new billion-dollar franchise aimed at young girls, with her own online community. Murdoch to Ramp Up College News Network Forbes News Corp.'s Fox News this fall plans to ramp up its minority stake in Palestra.net, the Web video-based college news network featuring student journalists. Inexpensively produced student reports will start running on Fox News Channel and possibly on Fox's local affiliates. Old Media Profit From Pirated YouTube Clips New York Times Some major media companies are having a change of heart regarding pirated video on YouTube. CBS, Universal Music, Lionsgate and Electronic Arts have stopped prodding YouTube to remove their unauthorized clips and started selling advertising against them. Big Media Exiles Searching for Online Stars Fortune Velocity Interactive's Jon Miller and Ross Levinsohn, formerly of Time Warner and News Corp., aim to help big media companies identify and fund the hit startups of the future. Says Miller: "In a way, we provide outsourced R&D for the media industry." Viacom For Sale? Investors Consider Options BusinessWeek Big investors in Viacom are said to be mulling a potential sale of the media conglomerate. Chief Sumner Redstone, now 85, has always insisted he would not sell the company. But should Viacom decide to sell, "there would a long line of potential bidders," analysts say. Disney May Sell ABC Stations, Analyst Says Bloomberg Disney may sell its 10 ABC television stations, fetching some $4.8 billion, says Caris & Co. analyst David Miller. By selling the stations, Disney would become the only large, public U.S. media company to be completely focused on content. Disney dismisses the report as "speculative." Democrats Talk U.S. Media Ownership Rules TV Week A final draft of the 2008 Democratic Party Platform signals that its candidates will follow Barack Obama's push for diversity in the ownership of broadcast media, as well as more educational content on television. The plank also calls for the appointment of a "chief technology officer." Media See Mini M&A Frenzy Across Europe Wall Street Journal Many media assets are on the block in Europe, despite the hostile deal-making environment. Initial bids are due this week for the U.K.'s Reed Elsevier's business-publishing division; News Corp. is considering selling its TV network in Bulgaria, which serves a population of 7.3 million. News Corp, Permira to Take NDS Private Reuters News Corp. and private equity firm Permira Advisers are completing their deal to take NDS Group, the set-top box technology maker, private. News Corp. will own 49% of the company after the transaction closes. The previous ownership structure imposed "certain limitations." Malone Son Joins Board of Liberty Media Denver Business Liberty Media is expanding its board to add a ninth member: Evan Malone, the son of company founder John Malone. The younger Malone, who is in his mid-30s, holds a Ph.D. from Cornell University and is the co-creator of three-dimensional printing outfit Fab@Home. Disney: Jonas Bros a Billion-Dollar Brand Portfolio The Jonas Brothers are tearing up the tween scene and are poised to become a nine-figure franchise for Disney. The boy band could become "the next billion-dollar brand," say industry marketers. The Jonsas are the subject of Disney movies, albums, books and TV shows. Cablevision Stake Scooped Up by Harbinger Newsday Harbinger Capital, the investment group that threatened a proxy fight at the New York Times, is acquiring 11.5 million shares of Cablevision. Pali Research analyst Rich Greenfield suggests the stake may be the reason for Cablevision's "newfound friendliness" with investors. Media Left Reeling as Crunch Takes a Bite Financial Times Media dealmaking activity is "tumbling into funding minefields," as investors sour on the sector. Every media company will be affected by the economic downturn, says Stephen Grabiner, global media head of the private-equity firm Apax. "Some are structurally doomed, to be blunt." Murdoch Mulls Divesting Businesses In India Business Standard Rupert Murdoch says he may look at divesting some of his businesses in India. News Corp. holds investments across Indian media properties including news broadcasting ventures, direct-to-home business, and cable and television production companies. Ad-Based Media Giants' Outlook Grows Dark TheStreet.com Falling estimates for 2008 and 2009 suggest that the worst may be ahead for the major advertising-based media companies. Time Warner is set for a "restructuring"; Viacom will likely see "poor growth"; CBS faces "significant downside"; News Corp.'s outlook is "unusually dour." Media Giants Jostle Over Digital Release Dates New York Post A rift is developing among the major media companies over releasing movies through video-on-demand on the same day DVDs go on sale. Time Warner and Sony support such a move; Viacom and News Corp. oppose it. Some say the switch would be "a grave mistake." Disney, Carnegie Mellon to Open R&D Lab Pittsburgh Business Disney is teaming with Carnegie Mellon University to form a research and development lab for the media conglomerate's theme parks, television networks and animation studios. Disney plans a similar lab setup at the Swiss Federal Institute of Technology in Zurich. Liberty Media Chief Eyes AOL Dial-Up Deal Reuters John Malone says he is open to discussing a deal to swap Liberty Media's stake in Time Warner for the media conglomerate's AOL dial-up Internet business. "Clearly an exit from the Time Warner equity state into a cash-generating asset would be attractive." Time Warner Signals Possible Sale of AOL, Mags Forbes / NYT Shares of Time Warner are up, suggesting that "something is afoot acquisition-wise," according to analysts. Also: Insiders say Time Warner is likely to sell off or find a partner for AOL, as well as shrink the Time Inc. magazine publishing unit to just a handful of the most profitable titles. Universal Accused of 'Digital Exploitation' Reuters Members of the Allman Brothers Band, the U.S. Southern rock group, are filing a lawsuit against UMG Recordings for more than $10 million on over royalties from compact discs sales and digital downloads services such as Apple's iTunes. UMG is part of Vivendi's Universal Music Group. Lagardere Eyes 10% Online Sales by 2010 Financial Times French media giant Lagardere plans to roll out new magazines and Web sites in China and Russia to counter the effects of a sharp decline in advertising in the West. Lagardere, the parent of the publisher of Elle, aims achieve 10% of its sales from online by 2010. Tribune's Cubs Lure Cuban Pitch to Execs Crain's Chicago Mark Cuban, the Web entrepreneur and owner of the Dallas Mavericks, is wooing deep-pocketed Chicago execs to help bolster his lead $1.3-billion bid to buy Tribune's Chicago Cubs. Having Chicagoans as partners would strengthen his standing with Major League Baseball. Wolff's Murdoch Biography Due In Feb '09 Random House "The Man Who Owns the News," a new biography of Rupert Murdoch by Vanity Fair columnist Michael Wolff, is due out from Random House in February 2009. The book promises "unprecedented access" to the media titan. Earlier: Murdoch is "an extraordinarily happy man," Wolff says. News Corp's Chernin Rumored to Eye Exit Fortune One rumor making the rounds within various News Corp. outposts is that president and COO Peter Chernin might leave if private equity money were to buy a big media concern and he is offered a piece of the action to run it. Chernin is declining to comment. Viacom Set to Lose Spielberg, DreamWorks Bloomberg Steven Spielberg's DreamWorks SKG is nearing an agreement for a $550 million investment from Indian billionaire Anil Ambani, allowing the film studio to split from Viacom's Paramount. A deal may be reached as soon as next week; Spielberg may leave Viacom by November. Merrill Media Banker Costa to Leave Firm Reuters Merrill Lynch media banker Michael Costa is said to be leaving the company and has not made a decision on his next move. Costa repped the Bancroft family in its sale of Dow Jones to News Corp. and Tribune in its sale to Sam Zell. Merrill, facing financial woes, is seeing many execs depart. Bewkes: Time Warner Is All About The Content CNET In an investor call Wednesday, Time Warner CEO Jeff Bewkes focused on "old media," confirming the split of the company's AOL Internet-access and media units next year: "Our goal is to create, package and distribute high-quality, branded content across multiple platforms." Viacom Starts Blog to Rival Time Warner's TMZ Multichannel News Viacom's VH1 is launching a celebrity and pop-culture blog, Scandalist.com, featuring entertainment and celebrity news, gossip, photos and videos. Says VH1 president Tom Calderone: "We decided to look at ways we could go deeper with our blog coverage." NBC Universal Sale Unlikely, GE Investors Say Reuters Investors in General Electric say that a sale of the NBC Universal unit after the broadcast of the Beijing Olympics seems unlikely, despite more than a year of Wall Street chatter. With the conglomerate focused on its restructuring, a sale of NBC would be an "unnecessary distraction." Cablevision: 'Make Love' With Time Warner Cable Bloomberg Major Cablevision investor Mario Gabelli is calling on the company to sell or spin off all of its assets and return cash to shareholders. Cablevision should explore a sale of its cable-television division to Time Warner, he says. Gabelli wants Cablevision to be "making love with Time Warner Cable." Disney Targets Boys With Rebranded Channel Los Angeles Times Disney plans to relaunch Toon Disney as Disney XD, a cable channel that will target "young dudes," ages 6 to 14. Disney XD will offer original action-adventure and comedy series, movies, animation and sports-themed shows developed with Disney-owned ESPN. News Corp to Expand WSJ Across Company BusinessWeek Rupert Murdoch says the Wall Street Journal will be a big winner on the Internet, as his new acquisition takes on the New York Times. He plans to use the Journal's content on News Corp.'s Star and Sky news services in Asia and Europe, as well as on the social network MySpace. Murdoch Offspring to Take Over News Corp Charlie Rose Rupert Murdoch eventually will turn News Corp. over to one of his children, says president Peter Chernin, likely James, Lachlan or Elisabeth. "I will continue to work at the company for as long as I find it interesting," he says. Chernin admits: "This is a time of enormous change in the media biz." Cablevision May Spin Off Cable Nets, Teams Associated Press Cablevision says it is considering spinning off some of its holdings in an effort to boost its stock price. The cable systems operator runs the cable television networks AMC, IFC and WE, as well as sports teams including the New York Knicks and the New York Rangers. News Corp Warns of Less Robust '09 Growth Reuters News Corp. is reporting a 27% increase in its fourth-quarter income, but says it faces a "more difficult economic environment" that will continue to hurt local television advertising. Revenue at MySpace parent Fox Interactive Media is expected to rise by 30% in 2009. Time Warner Held Back by AOL, Time Inc Bloomberg Time Warner says second-quarter profit dropped 26%, with the AOL Internet unit and declining revenue at Time Inc. holding back growth. Time Warner Cable and the television networks division that operates TBS and CNN increased sales faster than the overall company. Comcast Acquires E-Newsletter DailyCandy CNET Comcast is acquiring women's e-newsletter DailyCandy for $125 million. The price is said to have been driven up because Viacom wanted to make a play for the start-up. But a Viacom spokesman says that the media giant had never made a bid and ended its takeover talks in June. Gabelli Fund Eyes Media, Tech Acquisitions New York Post Media investor Mario Gabelli is filing to raise $200 million through a so-called blank-check company and will use the proceeds to buy a media or telecom company. The new entity, Gabelli Entertainment, has up to 30 months to find and purchase a business or else the fund has to liquidate. GE: Still No Plans to Sell NBC Universal Reuters General Electric has no plans to sell NBC Universal, says chief marketing officer Beth Comstock. Some investors would like GE to consider selling NBC after the Olympics, due to the division's slow growth. CEO Jeff Immelt continues to see NBC "as a part of GE's future." Time Warner May See Benefits From 'Sex' Bloomberg Time Warner, which is scheduled to report earnings Wednesday, may say second-quarter sales increased on box-office gains from "Sex and the City," new phone customers and higher advertising sales at its cable-television networks. AOL is said to be still "facing pressure." Murdoch Set to Acquire Stake In Asianet Economic Times Rupert Murdoch's recent visit to India may soon lead to a slew of changes within his company's STAR television service in Asia. The News Corp. chief is believed to have cleared the way to acquire a majority stake in the entertainment channels of Asianet Entertainment. Sony Buys Out Bertelsmann In Sony BMG Reuters Sony is to purchase its 50% sake in Sony BMG music from joint venture partner Bertelsmann. The deal is said to have a transaction value of $1.5 billion. The music company, which will now be called Sony Music Entertainment, will become a wholly owned subsidiary of Sony. Disney Buys Parenting Advice Web Site NMA.co.uk Disney Interactive Media is acquiring the parenting advice site Raisingkids.co.uk. The site will be added to the Disney Online portfolio, which also includes the recently launched UKfamily.co.uk. Rasingkids claims more than 100,000 registered users. Cuban: 'Lead Guy' to Buy Tribune's Cubs Chicago Tribune Mark Cuban, the Internet entrepreneur and owner of the Dallas Mavericks, is "the lead guy" in the bidding to buy Tribune's Chicago Cubs. Many Cubs players are said to be in Cuban's corner -- Mavericks players' lockers are equipped with miniaturized home-theater systems. Study: Internet to Become No. 1 Ad Medium USA Today / HR Consumers will begin to foot more of the bill for traditional media as advertisers shift away their spending, according to Veronis Suhler Stevenson's new Communications Industry Forecast. Also: Within three years, the Internet will become the leading generator of ad revenue. Media Hit by Woes of Biggest Ad Buyers Financial Times The collapse of the U.S. motor industry is rattling media companies as they brace for further pull-backs from their biggest advertising clients. Vehicle makers could reduce their advertising spending by as much as $3 billion this year, says Sanford Bernstein. Murdoch to Launch Six TV Channels in India Dow Jones News Corp. plans to invest $100 million to launch six television channels in India, says chief Rupert Murdoch, underscoring his commitment to the fast-growing media market. He adds that the Internet will make investment restrictions in newspapers redundant: "Technology will be central." News Corp 'Punished' for Buying Dow Jones Variety News Corp.'s purchase of Wall Street Journal parent Dow Jones & Co. is a drag on the company's stock, according to analysts. Investors are said to be penalizing Rupert Murdoch for his "overpaid" acquisition amid doubts about the long-term prospects for print media. Reed Elsevier: We're Not Really a Media Company Financial Times Reed Elsevier, the global publisher and information provider, is seeing its share price held back because it is identified as a media company, complains CEO Crispin Davis. "It's wrong, frankly, to link us with newspaper companies." Reed is in the process of selling off its trade magazines. Time Warner Blocks Ex-AOL CEO From Yahoo New York Post A non-compete clause in former AOL CEO Jon Miller's contract prevents him from joining Yahoo's board until March 2009, according to AOL owner Time Warner. Miller's name is circulating as not only a potential Yahoo director, but also as a possible candidate to replace CEO Jerry Yang. Media Deals Involve More Partners, Problems BusinessWeek Today's media mergers and acquisitions are no longer simple, say industry bankers. Debt market troubles, the prospect of continued consumer-driven slowdown, and uncertainty over the degree to which digital upstarts will digest Old Media's prospects are forcing more complex dealmaking. Murdoch Meets Indian Leaders Over Media Biz Indiantelevision.com Rupert Murdoch is meeting this week with Manmohan Singh, the prime minister of India. The News Corp. chief is believed to be making appeals to increase foreign investments in India's print industry. Murdoch is meeting with other officials about the growth of Indian print and electronic media. Miller Seen as 'One of the Smartest Guys In Media' Los Angeles Times Jonathan Miller, the former head of AOL, has navigated some of the media world's most difficult challenges, earning him praise from industry leaders and a spot on the short list for high-profile job openings. Miller is expected to be joining the board of Yahoo. But sources say that he might not. U.S. Advertising Slowdown Looms Over Media Associated Press Earnings reports from three major media companies -- CBS, Disney and Viacom -- this week show the malaise in local advertising markets beginning to spread to national television networks. Analysts believe CBS, with two-thirds of its revenues from ads, will be hit first and hardest. CBS's Outlook For Growth Scares Wall Street CNBC CBS's disappointing quarterly results are rattling Wall Street, revealing the advertising downturn to be worse than previously thought. CBS's Internet division is a top priority -- next quarter the company will report a separate interactive segment, hoping to boost growth. Avenue A/Razorfish Reaches Out to Old Media Reuters Avenue A/Razorfish, Microsoft's digital advertising agency, is launching a media and entertainment consulting practice, eyeing business from traditional media companies that are trying to boost their Web revenues. VP Domenic Venuto will head up the new practice. Tribune Expands TV Operations, As Papers Cut WSJ / BW Many of Tribune's 23 local broadcast stations are expanding or launching news operations at the same time that the company is slashing costs at its newspapers. Earlier: Tribune will become more of a broadcasting company with fewer newspapers, says CEO Sam Zell. Viacom Seen as 'Screwed' by American Youth Wired The fundamental problem facing MTV parent Viacom could be that the youth demo that the company has hotly chased for the last few decades "is a bust," writes Betsy Schiffman. Younger audiences are now "technologically promiscuous" and "can't be cornered in front of any single device." Murdoch Stirs Speculation on Trip to India Indiantelevision.com Rupert Murdoch is on his sixth visit to India to step up his push into one of Asia's fastest growing economies. After a two-day stay in Delhi, Murdoch will visit Mumbai on Friday. While the News Corp. chief is expected to be in business meetings, his India agenda "is not clear." CBS Moonves Pressured to Buy Back Stock Bloomberg CBS chief Les Moonves's decision to buy Cnet Networks triggered a 31% drop in the stock since May. It may take a buyback to convince investors the shares are now a bargain. The company should sell its books division and spend $1.5 billion on its own stock, analysts say. Tribune's Future Is In TV, Online, Zell Says BusinessWeek Tribune will become more of a broadcasting company with fewer newspapers, says CEO Sam Zell. Also, "the Internet will be a bigger part of our future." He adds: "I can't imagine us ever selling the Chicago Tribune." However, "people [are] interested in the L.A. Times." Disney Sees Gains From ESPN, Disney Channel Los Angeles Times Disney is reporting net income of nearly $1.3 billion for the fiscal third quarter, up 9% from a year earlier, buoyed by the strong performance of ESPN. The broadcasting group's income fell 11%, dragged down by lower advertising sales at the local television stations. Time Warner's AOL Eyed For EarthLink Deal Wall Street Journal EarthLink says it wants to facilitate consolidation in the Internet dial-up access market, fueling speculation that it may be eyeing a deal with Time Warner's AOL. "It simply makes good economic sense to consolidate," says EarthLink CEO Rolla Huff. "It's worth aggressively pursuing." Viacom Says Outlook Is 'Difficult to Predict' Reuters MTV parent Viacom is reporting lower-than-expected advertising sales at its cable television networks, and says the short-term economic outlook is "difficult to predict." CEO Philippe Dauman adds: "Low ratings at a few of our networks also contributed," citing BET. Murdoch Mulls $4B Deal For German Soccer Sydney Morning Herald Rupert Murdoch is tipped to step up his push into Europe's biggest economy, with his News Corp. looking to bid up to $4.4 billion for the six-year broadcast rights to Germany's top soccer league, the Bundesliga. The deal could help News Corp. expand into German free-to-air TV. Lauder's Media Firm Buys Bulgarian Channels Associated Press Central European Media Enterprises, a European broadcaster founded by Ronald Lauder, son of the founders of Estee Lauder, is taking an 80% stake in two Bulgarian television services, national channel TV2 and sport cable channel Ring TV. The deal is valued at some $172 million. Disney Shanghai Park Could Involve Media Deal Reuters Plans for a Disneyland park in Shanghai could include a major media agreement between Disney and the government that could give the company unrivaled access to the market. A deal could include a Disney-branded magazine, as well as local Disney films and television shows. Martha Stewart Living Eyes Global Expansion SpringFair Martha Stewart Living is setting its sights on international expansion after revealing an impressive revenue jump of 57% year on year in its second quarter results. The brand is said to be finding success with its Martha Stewart home, lifestyle, wedding and crafting merchandise. Media Companies Feel Weight of Ad Slowdown Financial Times U.S. advertising weakness is spreading from newspaper and radio groups to the rest of the media industry, analysts warn. So far, revenues from digital initiatives are insufficient to offset losses in traditional media businesses. Ad-dependent CBS is seen as particularly vulnerable. NBC Universal to Remain Unchanged in GE Reorg Associated Press General Electric's new reorganization, announced on Friday, aims to help simplify operations. GE's NBC Universal division, headed by Jeff Zucker, will remain unchanged, says vice chairman John Rice. "I don't foresee another wholesale reorganization," he adds. Time Warner Fights Web Copies of 'Dark Knight' CNET Warner Bros. is going after the Web sites that posted pirated copies of the hit new Batman film "The Dark Knight." A spokesman for the Time Warner studio says it is taking action: "We actively search for these sites and services and have them taken down." News Corp, NBC File Lawsuit Against Redlasso New York Observer NBC Universal, Fox News Network and Fox Television Stations are filing a lawsuit against Redlasso, alleging the Web site is improperly making available video clips of their copyrighted programming. Redlasso allows users to create embeddable clips of video and audio footage. Comcast Said to Eye Acquisition of DailyCandy Gawker Daily Candy, the email newsletter for lady shopaholics, is rumored to be preparing for a sale to Comcast, the U.S. cable systems giant. The price is said to be $75 million, a bit below the $100 million+ controlling shareholder and former AOL second-in-command Bob Pittman is seeking. Tribune Strikes Out Bidder for Chicago Cubs Tribune / Courant Tribune is eliminating a preliminary bid for the Chicago Cubs from the group led by Madison Dearborn chief John Canning. The cut is seen as a message that "money matters." Also: Tribune has no plans to sell off other newspapers in 2008 after selling Newsday, says CEO Sam Zell. News Corp Prez Eyes Online Video, Mobile Fortune News Corp. president Peter Chernin, speaking at Fortune magazine's Brainstorm Tech conference, sees big money-making opportunities online in video and mobile. "The place that is most promising is probably in video," he says. Mobile "is by far the most penetrated device on earth." Viacom CEO: 'Great' Content Is King Online CNET Viacom CEO Philippe Dauman says that the Internet and mobile media are expanding his company's reach worldwide. Also: Google didn't do anything to stop piracy on YouTube because it helped build a massive audience, Dauman claims. Google must learn the value of "making friends." Disney Registers Interesting Internet Domains Jim Hill Disney is registering a batch of new Internet domain names. They include: DisneyProposals.com, DisneyThink.org, MyDisneyReservations.com, DisneyPartyGame.org, and DisneyFamilyMoons.com. Also: TheDisneyMovieClubSucks.com. Viacom, CBS Chief Redstone to 'Fight Death' CNBC At 85, Sumner Redstone is still overseeing the media empire he built over the past 20 years, and he says he has no plans to step down. "I love what I'm doing," he says. "I love Viacom. I love CBS. And so I don't want to die. I have a will to live. I'm gonna fight death as long as I can." Time Warner Shares Drop Despite 'Dark Knight' Crain's / WWD The record $155.3 million opening weekend of "The Dark Knight" will boost Time Warner's chances of meeting its full-year forecast, analysts say. However: Time Warner's stock price fell more than 2% on Monday. "It doesn't help that the company is having trouble selling AOL." FCC Panel Probes Future of Digital Media Pittsburgh Post-Gazette The U.S. Federal Communications Commission met in Pittsburgh on Monday for two sessions, "The Future of Digital Media" and "The Broadband of Tomorrow." One panelist, Web pro Mark Cuban, suggests the greatest opportunities in digital media will lie beyond the Internet. Time Warner's AOL 'Nightmare' May Get Worse Bloomberg Time Warner's struggle to sell AOL is putting more pressure on the media company's stock price as the advertising slowdown spreads to the Internet and the pool of potential buyers shrinks. According to one investor, AOL has "become yesterday's story in the Internet world." Web No Threat to Old Media, Expert Says Financial Times Broadcasters and national newspapers shouldn't to be fooled by "hype" about the Internet, says Patrick Barwise, a media academic at the London Business School. Human behavior guarantees a safe future for television, he argues. The so-called digital revolution is simply "Bollocks 2.0." Warner to Release 'Motion Comics' Online Wall Street Journal Warner Bros. is releasing an online Batman series to tie-in with the film "The Dark Knight," a hybrid of comic books and animation that the studio calls "motion comics." The Web shorts will be distributed via Microsoft's Xbox 360 game consoles and Verizon's V Cast mobile phones. GE Hears More Calls to Sell Off NBC Universal BusinessWeek NBC Universal is a persistent source of irritation for some General Electric investors, with one calling it "a corporate spleen": good for now, but something GE could live without. Analysts are ramping up the sale chatter, though chief Jeff Immelt insists that a sale isn't on the table. AOL Sale Unlikely In Near-Term, Analyst Says Pali Research A sale of AOL in the near future is highly unlikely, due in part to the "near-toxic brand" of the Time Warner Internet company, says Pali Research. Analyst Rich Greenfield forecasts AOL advertising revenues to grow in the "low single digits" in the next few quarters. News Corp-NBC's Hulu Users Aren't Numerous TV Week Only 15% of online Americans have heard of Hulu.com, the News Corp.-NBC online video venture. But those who have used the site like it a lot, suggests a study from Solutions Research Group. The average age of a Hulu user is 32, 10 years younger than the average online American. Actors: Studios Offer Too Little In New Media Bloomberg The Screen Actors Guild says it can't accept studios' proposed labor contract because it doesn't ensure union jurisdiction over new media, signaling an impasse between the two groups. The guild argues that the digital media landscape "has dramatically shifted." Bertelsmann to Sell Clubs, Focus on Web Deutsche Welle Germany's Bertelsmann, Europe's biggest media company, will sell most of its book, CD and DVD clubs, where revenue has been declining, to focus on television and the Internet. The business model of Bertelsmann's Direct Group has suffered with the advent of Internet downloads. General Motors' Cuts to Hit Media Industry Wall Street Journal General Motors, one of the largest U.S. advertising spenders, says it is cutting its sales and marketing budget, a move expected to create pains for the media business. GM's ad spending on newspapers and television is down 32% and 11%, respectively, in 2007 from 2006. Yahoo Entertainment Exec Heads to Comcast TechCrunch Karin Gilford, Yahoo's VP and general manager of entertainment, is said to be resigning from the company to take up a new position with Comcast. Gilford oversees Yahoo music, video, television, movies and other entertainment activities. There is no word yet on her successor. Viacom Studio Financing Deal Falls Through Los Angeles Times Paramount Pictures is ditching efforts to raise up to $450 million in financing with Deutsche Bank to help bankroll its movies. Deutsche sought terms that Paramount found too steep. Investors are said to be less enamored with risking their money on the volatile movie business. Google, Viacom Reach Deal Over YouTube Data CNET YouTube will be allowed to mask important user data from records it must turn over to Viacom, Google says in a statement. "Viacom and the other litigants have backed off their demand for YouTube user viewing histories. We have reached agreement to anonymize the data." Napster Partners With Disney for Web Radio Associated Press Online music retailer Napster is partnering with Walt Disney Records to launch a commercial-free "Best of Disney" radio station for the Web. The collection of songs, aimed at kids and young teens, will come from Disney movies and popular Disney stars such as Hannah Montana. Media Moguls Give Thumbs Up to Obama Reuters / Bloomberg Barack Obama appears to be the favorite White House contender among media moguls, according to an informal vote at the Allen & Co. media confab in Sun Valley, Idaho. Rupert Murdoch says he has been "seduced" by Obama. Also: An Obama presidency "would bode well" for Google. 'Old Media' Execs Advised to Sell Assets New York Times Non-digital media businesses are going to be toast, predicts Internet pioneer Marc Andreessen. "If you have old media, you should sell. If you own newspapers, sell. If you own TV stations, sell." Also: Sony boss Howard Stringer says: "Those of us in the old media are less significant." Time Warner's Parsons Bullish on Media Biz Bloomberg Richard Parsons, chairman of Time Warner, says he is "much more bullish" on the media industry than investors. "People will continue to consume more and more of what entertainment companies produce," he insists. Parsons adds that companies can't create value by merely breaking them up. NBC Universal Joins Microsoft's Xbox Plans Variety Microsoft is unveiling partnerships with NBC Universal, Netflix and Endemol at the E3 videogame confab in Los Angeles. NBC is the latest media company to sign onto Microsoft's Xbox Live Video Marketplace, which lets gamers download movies and TV shows onto the Xbox 360 console. News Corp Sells Fox TV Stations for $1.1B Associated Press News Corp. is selling eight Fox affiliate television stations to private-equity firm Oak Hill Capital for $1.1 billion. The stations are in markets including Cleveland, Denver and St. Louis. After the sale, News Corp. will continue to own 27 U.S. TV stations. Murdoch Bypassed by Son In Power Ranking Guardian James Murdoch is overtaking his father, Rupert, for the first time in the annual MediaGuardian 100 list. James is leapfrogging the News Corp. chief after taking over as CEO of the company's European and Asian operations. Google guys Larry Page and Sergey Brin come in at No. 1. Disney Reorganizes Execs In New Media Hollywood Reporter Disney is reorganizing its gaming and Internet executive ranks following the merger last month of the two divisions. Graham Hopper will continue on as head of the gaming side, while Paul Yanover will expand his oversight of Disney Online to a global basis. Viacom Sued Over Alleged Patent Violations Bloomberg Konami Corp., the Japanese creator of the "Dance Dance Revolution" music-video game, is suing Viacom's Harmonix studio, claiming its "Rock Band" game violates patents. The Konami patents relate to simulated musical instruments and a "musical-rhythm matching game." Google, Viacom Spar Over YouTube Data CNET Viacom wants to know which videos YouTube employees have watched and uploaded to the site, and Google is refusing to provide that information. The dispute is said to be the reason the two companies have failed to reach a final deal on anonymizing the personal data of YouTube users. Comcast Faces Fines for Blocking Downloads Philadelphia Inquirer Kevin Martin, head of the U.S. Federal Communications Commission, says he will seek "enforcement action" against Comcast for slowing down heavy Internet users who are downloading movies and other large data files. The cable giant used "too blunt an instrument," says Martin. Amazon Kindles Fans Among Media Bigwigs Bloomberg Martha Stewart and Donald Graham say they are among the fans of the Kindle digital book reader from Amazon.com. "I'm totally hooked," says Stewart, who adds that she peruses the Wall Street Journal on her Kindle and takes the so-called "iPod of books" on vacation with her. Big Media Launch Apps For New iPhone Adweek A slew of major media companies -- New York Times, IGN, Bravo, and AOL -- are launching new applications for Apple's latest iPhone. The Times is offering a free application that enables users to read a digital version of the newspaper, whether or not they are connected to the Web. Sony to Distribute Summer Film Online to TV New York Times In an industry first, Sony Pictures' summer motion picture "Hancock" will be available after its theater run over the Internet, directly to Sony television sets -- before release on DVD. The move is significant in what it means for the future of movie watching, and for the future of Sony. Viacom Attacked In Videos on YouTube Information Week Viacom says it wants YouTube viewer log data to prove its copyright case against Google. But the YouTube community isn't getting the message. Rather, the video-sharing site's users are launching an expletive-laden counterattack, calling for a boycott of the media giant. Lehman: Media Giants to Face Dark Days CNBC Lehman Brothers analyst Anthony DiClemente is issuing a negative outlook on the media giants, downgrading the entire sector to negative. DiClemente is concerned that digital distribution changes will "disrupt the core economic models of the majority of film and TV content." Big Media Stocks Hit 52-Week Lows Hollywood Reporter It was a tough first half for big media and entertainment stocks as economic sluggishness, company-specific concerns and broader market declines dragged down shares of all sector giants. Nearly all of the media conglomerates hit 52-week lows during the first quarter. Murdoch Sees Another Year of Trouble Associated Press News Corp. chief Rupert Murdoch expects the capital markets to lurch through the next 12 months as Wall Street banks sift through mountains of bad debt related to the mortgage crisis. "I'm a bit of a bear," he says. "There's more [bad news] to come and it'll take a year to shake out." Redstone Says No to Anointing Daughter CNBC Sumner Redstone, the chairman and controlling shareholder of Viacom and CBS, says he loves his daughter Shari, but he doesn't want her to succeed him in his role. "She isn't qualified," says the elder Redstone, 85. "I'm not worried about it 'cause it's gonna be another 20, 30 years." NBC Universal to Buy The Weather Channel AP / MediaPost NBC Universal and two partners are entering a $3.5 billion deal to buy The Weather Channel from Landmark Communications. NBC is joined in the deal by private-equity firms Blackstone Group and Bain Capital. Also: Weather.com is seen as a "secret weapon" in the acquisition. Media Deals at Risk as Banks Grow Nervous Times of London Banks are becoming nervous about financing deals in the media sector as they seek to avoid businesses that are dependent on advertising. A consumer slowdown may mean a decrease in ad spending. The ad-funded model is "becoming less appealing" to media groups. News Corp's Murdoch Jr. to Expand Duties Wall Street Journal In a move that would expand the duties of James Murdoch, the youngest son of chief Rupert Murdoch, News Corp. is mulling bids for two European pay-television outfits, Germany's Premiere AG and Spain's Digital+. James heads up News Corp.'s European and Asian operations. Old Media Kept Alive by Consumers Age 50+ MediaPost While younger audiences drive growth in digital and mobile media, consumers over the age of 50 continue to devote "significant attention" to the more traditional formats, says a report by PricewaterhouseCoopers. The growing 50+ population will "help sustain" traditional media. New York, Media Capital, Leads In Tech Jobs Reuters / NYT New York City is more than just the U.S. media capital. The metro area has the largest tech workforce in the nation, besting even Silicon Valley, says a report by industry trade group AeA. Also: Google is opening new 50,000-square-foot offices in Manhattan for sales and marketing staff. AT&T to Boost Online Content Distribution Reuters AT&T aims to expand its services to help companies deliver digital media to consumers' computers and mobile phones, moving into competition with outfits like Akamai. AT&T, which already has customers like Forbes.com, will spend $70 million to bolster its network infrastructure. Disney Overhauls Web Site for Movies, Games New York Times Disney is moving once again to overhaul Disney.com, introducing more free video to the site, including full-length movies like "Finding Nemo," as well as more games and activities for visitors to do with their mobile phones. Its video search pages will look similar to those of YouTube. Viacom Drops to Lowest Since CBS Split Bloomberg Viacom shares on Monday fell to the lowest since the company's 2006 split with CBS, after its film "The Love Guru" missed weekend box-office estimates. Chief Sumner Redstone's decision to split Viacom and CBS was "in error," according to Sanford Bernstein analyst Michael Nathanson. Time Warner Cable Said to Eye Asset Sale DSLreports.com Time Warner Cable is rumored to be looking to sell off its New York City networks to help raise funds to pay $9 billion to Time Warner as part of their recently announced split into separate companies. However, a Time Warner Cable spokesman insists: "It's not happening." Murdoch Eyes Pay TV to Buoy His Business Australian News Corp. is counting on its pay-television businesses to offset any advertising downturn that could affect its other TV and print operations. Cable programming will be "a great profit driver," says chief Rupert Murdoch, and could help fund "later purchases." Malone: Free Online TV Is Doomed to Fail Financial Times Efforts by television networks to make their programs available for free on the Internet are "absurd," says Liberty Media boss John Malone. NBC's online coverage of the Beijing Olympics will be a "flop." Expensive events won't "have adequate underwriting through advertising." Disney Isn't a Media Company, Execs Say Reuters Disney execs including CEO Bob Iger are touting "the Disney Difference" to convince investors that the company's products and brand make it less of a cyclical media business and more like a consumer goods company, similar to Nike or Coca-Cola. So far, the campaign is proving "a hard sell." Viacom May Gain From DreamWorks Split Bloomberg Viacom's Paramount Pictures may benefit from a split with Steven Spielberg's DreamWorks film studio, says JPMorgan Chase. Paramount may improve profit by making lower-budget films under the Nickelodeon and MTV labels, the strategy of Viacom CEO Philippe Dauman. Comcast to Acquire Disney's Movies.com Variety Disney is selling Movies.com to Comcast's Fandango.com, the online ticketing service. Disney once envisioned Movies.com as a video-on-demand platform, but the joint venture with Fox never got off the ground, and the site remained an entertainment news repository. Murdoch Sees 'A Lot of Wild Stuff' on Blogs Guardian Rupert Murdoch is expressing reservations about blogs. There is "a lot of wild stuff out there," he says. Speaking at the Cannes International Advertising Festival, the News Corp. chief also says he plans to increase digital revenue from his Dow Jones & Co. Hearst CEO Search Expected to Take Months NYP / Fortune In the wake of the sudden departure of Hearst CEO Vic Ganzi, some observers expect interim chief Frank Bennack Jr. to hold the reins for a long stretch of time, possibly into 2009. Also: Bennack may groom a younger Hearst exec, such as SmartMoney founding editor Steve Swartz. Martha Stewart Refused Entry Into Britain Telegraph Martha Stewart is being refused a visa to Britain because of her criminal convictions for obstructing justice. The lifestyle guru had plans to speak at the Royal Academy. A Stewart spokesperson says: "Martha loves England and hopes this can be resolved." Sony: Efforts to Be Innovative Still 'Under Way' Bloomberg Sony chief Howard Stringer says the company's top management priority is "to restore profitability in our television and game businesses," both of which lost money last year. Stringer is telling shareholders that the company's efforts to be innovative are still "under way." News Corp's Chernin Gives Thanks to Facebook NMA.co.uk The rise of Facebook did MySpace a favor by galvanizing the social network, says News Corp. president and COO Peter Chernin. Facebook spurred MySpace into change, culminating in a major redesign this week. "We owe a great debt to Facebook. It knocked us on the head." Veronis Suhler Taps Ex-AOL Exec as Adviser New York Times Veronis Suhler Stevenson, a media-focused private equity firm, is hiring Michael J. Kelly, the former president of AOL Media Networks, as a senior adviser on a non-exclusive basis. Kelly's appointment is part of VSS's effort to seek out more acquisitions in digital media. Google Leads Media Companies on the Web SAI Google, Microsoft and Yahoo surpass Time Warner and News Corp. in accessing audiences on the Internet, according to a compilation based on Nielsen figures. Should NBC Universal acquire Weather.com, the move would push the New York Times out of the Top 10. Viacom, DreamWorks Head for Ugly Divorce Los Angeles Times With a divorce looming between DreamWorks SKG and Viacom's Paramount Pictures, one big issue is who will get "custody" of their movie projects, talent and producers. Untangling the rights to various assets and people, including Ben Stiller and Eddie Murphy, could be tricky. Hearst CEO Ganzi Resigns Over 'Differences' BusinessWeek Vic Ganzi is resigning as CEO of Hearst due to "irreconcilable differences" with the board, which is said to be frustrated with his strategy of taking minority interests in tech companies. On the internal short list to replace him: Cathie Black, James Asher and David Barrett. Traditional Media Isn't Dying, Report Says Reuters Global media and entertainment revenue will hit $2.2 trillion by 2012, boosted in part by advertising-supported digital and mobile media, according to the new annual forecast by PricewaterhouseCoopers. Still, revenue from traditional media will continue to dominate global market share. Viacom Should Go Private, Analyst Argues Barron's Pali Research analyst Richard Greenfield says Viacom chief Sumner Redstone ought to consider taking the company private, given the "increasingly broad investor distaste for Viacom's management team." Redstone must act to "create value for public shareholders." News Corp, Disney Chiefs Eye Actor Talks Variety With Screen Actors Guild contract talks going nowhere fast, speculation is rising that News Corp.'s Peter Chernin and Disney's Bob Iger will resume their diplomatic mission with the union. Informal SAG powwows with the studio heads may help break the logjam. Music Sales Fall to Lowest Level In 20 Years Times of London Worldwide music sales are dropping to their lowest level since 1985, according to new figures from the International Federation of the Phonographic Industry. Online piracy is seen as a key culprit. The group wants Internet providers to help to stop illegal copying. U.S. Media Ownership Rule May Face Block Dow Jones A House subcommittee aims to block the Federal Communications Commission's rule allowing cross-media ownership in the 20 top U.S. media markets. The move could affect companies that own local newspapers and broadcast stations, such as News Corp. Obama: I'm Unlikely to Be Big Media's Friend B&C Barack Obama, the presumptive Democratic presidential candidate, says U.S. regulators need to take media merger reviews much more seriously. "The media market is dominated by a handful of firms. ... I strongly favor protection against the excessive concentration of power." News Corp Shares See Jump on Analyst's Nod Associated Press News Corp. shares are getting a boost from their 52-week lows following a positive report by Lehman Brothers analyst Anthony DiClemente. The media giant is a good buy at the current price, DiClemente says, noting that MySpace continues to show strong revenue growth. Murdoch Closes UK Magazine Publishing Unit Mad.co.uk News Corp.'s News International is shutting down its three-year-old News Magazines division, publisher of titles including BSkyB's SkyMag. The decision to close is thought to have been taken by News Corp. exec James Murdoch following a review of News International’s businesses. Disney Partners Pay to Enter 'Dream Home' Atlanta Journal-Constitution Disney is opening its new Innoventions Dream Home at Disneyland in Anaheim, Calif. The "house of the future" showcases new technologies like partner Microsoft's "Surface" table computer. Each partner company paid Disney at least $1 million to participate in the home for five years. General Electric Investors Seek Sale of NBC Reuters Investors say General Electric could help its languishing shares -- now near 4 1/2-year lows -- by selling off businesses. But the company is resisting calls that it should sell its 80% stake in NBC Universal. GE says it is committed to a diversified business model. Murdoch: The 'Hot Ticket' at Cannes Ad Fest Australian The 55th annual Cannes International Advertising Festival is attracting thousands of top ad-industry execs from around the world to the south of France. The week's "hot ticket" will be an appearance by News Corp. chief Rupert Murdoch, who is expected to address the future of media. AOL's Dial-Up Sale Is Next for Time Warner New York Post Time Warner hopes to move swiftly to find a buyer for AOL's dial-up business after the company completes its separation from the Platform A advertising division in the next month. The media giant is said to have held talks with rival dial-up provider EarthLink about a combination. Playboy CEO Sees Growth In Online, Mobile Multichannel News Some 70% of the next generation sees the mobile phone as an entertainment device, says Playboy CEO Christie Hefner. "I don't know what it means exactly yet," she admits, adding that Playboy plans to invest more in technology and content to drive growth in online and mobile. NBC In Exclusive Talks to Buy Weather Channel Associated Press NBC Universal is entering exclusive negotiations to buy the Weather Channel from Landmark Communications after Time Warner dropped out of the bidding on Friday. NBC is working on the bid together with the private equity investment firms the Blackstone Group and Bain Capital. XM-Sirius Merger Wins Support of FCC Chair Washington Post Kevin Martin, the head of the U.S. Federal Communications Commission, says he will support a merger between satellite-radio rivals XM and Sirius. The two companies last week agreed to commitments to prevent the monopoly from raising prices and stifling competition. Time Warner, CBS Take Losses Buying Stock Bloomberg Time Warner, Dell and CBS made combined purchases of $13 billion in their own shares last year, and all have losses to show for it. Time Warner has fallen 27%; CBS is down 37%. While a share buyback often pays off over time, "it doesn't mean you're increasing the value of the company." Viacom, Paramount May Face Hindu Boycott NewsBlaze Hindus are mulling a worldwide boycott of products from Viacom and its Paramount film studio to express resentment over the "anti-Hindu stance" of the new movie "The Love Guru." Hindus are said to be upset by the apparent lampooning of the "one-billion-strong Hindu community." Martha Stewart Downgraded on Lyne's Exit Associated Press JPMorgan analyst Michael Meltz is downgrading shares of Martha Stewart Living Omnimedia, citing a difficult advertising environment and the recent departure of CEO Susan Lyne. The exit of Lyne is "disappointing," says Meltz. "Lyne has helped turn around the company." Thomson Reuters to Sell Dialog to ProQuest Associated Press Thomson Reuters plans to sell its Dialog research database business to the ProQuest unit of privately held Cambridge Information. Dialog's databases include Derwent World Patents Index. Dialog will continue to be a distribution channel for Thomson Reuters content after the deal. Bloomberg LP Stake May Be Up for Grabs Reuters Merrill Lynch says it would consider selling its 20% stake in Bloomberg LP. Media rivals including News Corp. and Pearson could see the news and information company as an alluring asset. But some say the most likely buyer would be founder and billionaire Michael Bloomberg. News Corp Launches Social Media Weather Site Mashable Why buy the Weather Channel? News Corp.'s Fox Interactive Media is launching Fox Weather, at weather.fox.com, a Web site with social tools intended to help build a network of amateur weather watchers. Users can register profiles and write blogs and post photos and videos. Disney Sees Business Exploding -- In Retail CNBC Sales of licensed Disney merchandise is expected to break records and top $30 billion in global retail, up from $27 billion last year. The company's new "tween" businesses -- "High School Musical" and "Hannah Montana" -- are expected to rake in some $2.7 billion this year. Bertelsmann Seeks $1.5B for Sony-BMG Stake Financial Times Germany's Bertelsmann is seeking $1.2 billion to $1.5 billion for its half share in Sony BMG after opening talks that could result in Sony gaining full control of the world's second-largest music company within weeks. The companies hope to strike a deal over the summer. Martha Stewart CEO Susan Lyne to Step Down Associated Press Susan Lyne is stepping down for undisclosed reasons after four years as CEO of Martha Stewart Living Omnimedia and the job is being split between two company execs. Wenda Harris Millard and Robin Marino are to become co-CEOs. Lyne will remain a director during a transition period. Google CEO: 'Moral Imperative' to Help Media Biz CNET Google should be seen by media companies as an ally that is trying to make advertising work on the Internet, says CEO Eric Schmidt. "It's a huge moral imperative to help here." Google's goal "isn't to monetize everything. The goal is to change the world. ... We don't have an evil meter." Time Warner Mulls Sale of AOL Units, Magazines TheDeal Time Warner is considering a possible sale of AOL businesses and certain Time Inc. magazines, says CEO Jeff Bewkes. Celebrity and lifestyle magazines are outperforming news and business titles "by a significant margin." Also: Time Warner has "no agenda" to buy NBC Universal. Viacom: Era of Making Big Acquisitions Is Over MarketWatch Viacom CEO Philippe Dauman says that the company is unlikely to make a major large-cap acquisition, but will focus on smaller deals in the short term. He adds that the era in which big deals bring "value creation" is "largely over." The company is likely to focus on smaller "tuck-in" deals. Liberty May Merge DirecTV Stake, Content Unit Multichannel News Liberty Media may seek to "streamline" its holdings by spinning out its entertainment group and merging it with DirecTV, says the satellite provider's CFO, Pat Doyle. Liberty guys John Malone and Greg Maffei have "got a desire to try to streamline that structure," he says. Time Warner's HBO Buys Stake in FunnyorDie Variety HBO is getting into bed with Will Ferrell's FunnyorDie.com Internet video venture. The pay-cable network is buying a small equity stake in the 2-year-old comedy Web site and is commissioning 10 half-hours of programming from FunnyorDie as part of the deal. Landmark Eyes Possible Sale of Publishing Arm Financial Times Landmark Communications is mulling the possible sale of its other media holdings now that its attempt to sell The Weather Channel is nearing the final stages. Landmark is distributing data to potential bidders on Dominion Enterprises, its portfolio of advertising Web sites and publications. IAC's Barry Diller Sees Drop In Compensation New York Post IAC/InteractiveCorp CEO Barry Diller exercised stock options worth $183 million in 2007, while his salary was unchanged, the company says. His compensation fell to $15.4 million from $17 million in 2006. His salary was unchanged at $500,000 and he received no bonus. Disney to Stream Free Full-Length Movies Online BusinessWire Disney.com is announcing that for the first time ever the site will stream full-length movies. The family films will first air on ABC as part of the network's "Wonderful World of Disney" presentation on Saturdays, then will be available for free streaming the following week. Murdoch Shells Out Max to GOP Senate Runners MediaPost With some speculation that Rupert Murdoch had begun to sour on the GOP, the News Corp. CEO recently gave $28,500 to the National Republican Senatorial Committee. Meanwhile, COO Peter Chernin recently gave $12,500 to the committee to elect Democrats to Congress. United Business, Informa In Early Merger Talks Telegraph United Business Media and Informa, two of Britain's biggest media companies, are in the early stages of talks to merge to create a £3 billion information empire. The combined business-to-business media assets would include PR Newswire, TechWeb and Adam Smith Conferences. WPP Mulls Higher Offer, Hostile Bid for Researcher Bloomberg WPP, the world's second-largest advertising company, is considering raising its unsolicited offer or making a hostile bid for Taylor Nelson, the U.K. market researcher. WPP may also walk away "or stay as we are" with its latest offer for Taylor Nelson, says WPP CEO Martin Sorrell. Disney to Launch Family-Focused Social Network Mediaweek Disney Family.com plans to roll out a new parent-oriented social networking platform that will provide users with the ability to create profiles for their entire family. The new community will be different from typical social networks, which emphasize individual profiles. NBC Fund to Acquire German Games Web Site RTTNews NBC Universal's venture capital fund, Peacock Equity Fund, is entering an agreement for the majority buyout of Bigpoint.com, a German-based computer games Web site, for €70 million. Bigpoint has 23 million registered users and its portfolio includes 20 free multiplayer games. Media Bigs Eye Techie Tykes as Dollars Dwindle Variety Disney, Viacom and Time Warner and other media companies are devoting more than $1 billion on developing casual games and "virtual worlds" for youngsters. But children's advocacy groups are concerned about media projects aimed at kids that are "interactive and very personal." Media, Tech Bigwigs: No Clear Vision of Future BusinessWeek Jeff Bewkes, Barry Diller, Jerry Yang and other big players in media and technology don't appear to possess a clear crystal ball on the future of the media world, writes Jon Fine. Rupert Murdoch withdrew his bid for Tribune's Newsday because, he says, "I got scared." More: "The Future of Media." Media Journos See Cloudy Media Future HuffPo / Reuters Media journalists participating in I Want Media's "Future of Media" forum see uncertainty ahead for the industry. Says Vanity Fair's Michael Wolff: "The New York Times. It's very likely something really dramatic and potentially terrible and certainly historic is going to happen." Microsoft CEO Addresses Future of Media Washington Post What is Microsoft CEO Steve Ballmer's outlook for the future of media? "In the next 10 years, the whole world of media [is] going to be turned upside down. There will be no newspapers, no magazines that are delivered in paper form. There are going to be far more producers of content." Disney to Combine Digital Media, Gaming Units AllThingsD Disney plans to merge its digital media group with its video gaming division to create a new unit called Disney Interactive Media Group. The media giant is making the move "as console and handheld games become more connected to the Internet, says CEO Bob Iger, in a memo. News Corp Sells Stake In Tech Firm Macrovision Silicon Valley Business News Corp. is selling off all its shares of Macrovision Solutions, the Santa Clara, Calif.-based video technology provider. Macrovision's stock has lost almost 42% of its value since the announcement in December that it would purchase Gemstar-TV Guide for $2.3 billion. Murdoch Jr Said to Eye Media Stakes In India Howrah News After Lachlan Murdoch's investment in the Rajasthan Royals cricket team earned him a multimillion-dollar windfall, Rupert's eldest son is said to be eyeing stakes in the fast-growing Indian media. The investment in the Royals is described as the "first step in Indian media" for Murdoch. Zagat Owners End Sale, Aim to Expand on Web Bloomberg Zagat Survey is deciding against selling the restaurant-guide company and now aims to tap growth in its Internet business. Tim and Nina Zagat, who in January hired Goldman Sachs to find a possible buyer, say they have "decided to continue to grow business organically." Time Warner May Sell Certain Magazines MarketWatch / Wired Time Warner expects its Time Inc. publishing unit to be a "growth business," says CFO John Martin. He does not, however, rule out the sale of certain magazine titles. Also: A group led by Time Warner is said to be investing $40 million in "Lord of the Rings Online" creator Turbine. Viacom Combines Film Units to Cut Costs Bloomberg Viacom is combining some operations of Paramount Vantage, maker of the films "Babel" and "There Will Be Blood," with those of the larger Paramount Pictures to lower costs. Time Warner in April merged its New Line Cinema into the larger Warner Bros. unit. News Corp Book Boss Friedman Steps Down New York Post In a sudden move, Jane Friedman is out as president and CEO of News Corp.'s HarperCollins, the fourth-largest consumer book publisher in the world. In the first nine months of the current fiscal year, operating profit for HarperCollins dropped by some $6 million. Disney Gains on Higher Ad Rates at ABC Bloomberg Shares of Disney rose the most in almost three months on speculation its ABC unit is commanding advance advertising rates above analysts' estimates. ABC may boost rates 8% to 10% from a year earlier, which is "much stronger than even the most ardent bulls anticipated." NBC, Time Warner Eye Weather Channel Atlanta Journal-Constitution Time Warner and NBC Universal are the leading contenders to acquire the Weather Channel, sources say. Landmark Communications put the cable network up for sale last year. Final bids were due two weeks ago. It is unclear when Landmark will announce the buyer. Discovery, Advance In Cable Channel Deal Washington Post Liberty Media's Discovery and Advance/Newhouse plan to combine their stakes in Discovery Communications, resulting in a new public company that will consist of the Discovery and Animal Planet cable channels. Discovery says its channels reach a worldwide audience of 1.5 billion. Scripps Eyes Trib Stake In Food Network Bloomberg E.W. Scripps CEO Kenneth Lowe says discussions are intensifying on buying the 31% stake in the Food Network held by Sam Zell's Tribune, but no deal is imminent. He adds that the newly formed Scripps Networks Interactive is "not for sale and won't be for the foreseeable future." Media Moguls Struggle to Survive Bipolar World TheDeal In today's changing environment, media moguls are said to struggling to understand whether they should buy or sell assets. "Old-media guys are trying to transform into new-media 'it' girls," says one observer, "while upstarts are thinking, 'Hey, maybe I can take down a dinosaur.' " Disney Exec Leads in Hollywood 'Digital Power' Hollywood Reporter Disney Internet head Steve Wadsworth, who "seems to be making all the right moves," comes in at No. 1 on The Hollywood Reporter's list of the 50 online innovators in Hollywood. The trade title admits: "With the way the industry is evolving, next year's [list] might look totally different." Time Warner Sees Growth for Content Business Reuters Analyst views of Time Warner's growth prospects once the media giant separates from its cable operating business are too low, says CEO Jeff Bewkes. Some analysts have estimated growth in the mid-single digit percentages. "We're going to do considerably higher than that." Liberty Media May Bid for AOL Internet Access Bloomberg Liberty Media may emerge as a buyer for Time Warner's AOL Internet-access business, says Citigroup analyst Jason Bazinet, who put the chances of a deal at 40%. "While this declining business anchors Time Warner stock, it would bring a cash-generating business to Liberty." GE, Time Warner Asset Merger Rumors Heat Up Newsweek / HR Time Warner and General Electric are said to be starting "preliminary efforts to explore a commingling of their entertainment assets," including GE's NBC Universal. However, CEO Jeff Bewkes says: "We don't need to own anything [else]," in a clear reference to NBCU. NBCU Group Leads Bids for Weather Channel New York Times An investor group led by NBC Universal and two private equity firms appear to be leading the bidding for the Weather Channel. Final offers were due Friday. NBC, the Blackstone Group and Bain Capital are offering about $3.5 billion. Other bidders for the channel include Time Warner. NBC's Universal Studios Lot Ravaged in Fire Los Angeles Times A huge fire broke out early Sunday on the backlot of Universal Studios in Los Angeles, destroying several buildings, sound stages and film sets. Several firefighters suffered minor injuries fighting the blaze. The cause of the fire, which broke out on a "New York Street" set, is under investigation. News Corp Buys More European Media Assets Crain's New York Rupert Murdoch's global media giant is purchasing European properties at a steady clip. In January, News Corp. bought a 14.6% stake in German Pay-TV operator Premiere, which it increased to 20% in February. Now, News Corp. is taking control of Latvian broadcaster TV Riga. Indian Publisher in Record Western Media Buy Times of India Bennett Coleman, the publisher of the Times of India, is buying the U.K.'s Virgin Radio for $105.3 million, a deal believed to be the largest Asian media acquisition in the West. "If Murdoch can do Hindi in India," says one observer, "why can't an Indian media house do English in England?" Bronfman: Music Will See Multiple Biz Models Financial Times Warner Music chief Edgar Bronfman: "The record industry is a purchase model. That model is going to continue, but there will also be subscription models. There will be advertising revenues. There will be access models. And there will be what I call a network licensing model." Mass-Media Extinction Prediction 'On Target' Slate In 1993, novelist Michael Crichton wrote a Wired magazine essay titled "Mediasaurus," in which he prophesied the death of mass media. "I doubt I'm wrong; it's just too early," Crichton says. "It may be that 'media' was never as important as we who work in it imagine it was." Murdoch Predicts Landslide Win for Obama Yahoo Tech Ticker Rupert Murdoch says he expects Barack Obama to win the U.S. presidential election in a landslide. He also admits to influencing his New York Post to back Obama in the New York primary. Murdoch -- a new U.S. citizen -- says he is leaning toward voting for Obama in November. Viacom Hits 52-Week Low on Ad Concerns Associated Press Viacom's stock hit a 52-week low Thursday -- adding to the previous day's slide -- after CEO Philippe Dauman said second-quarter advertising growth will be slower than originally expected. Says one analyst: "This is the tip of the iceberg. Viacom is just seeing it first." CBS's Moonves Anticipates Slower Ad Sales Bloomberg CBS may sign fewer advance advertising agreements for the 2008-2009 television season than last year, reports CEO Les Moonves. The network expects the number of deals to be lower this year and prices to be higher. "Advertisers don't even know what to make of everything yet." Liberty Boss Malone Pay Package Under Fire New York Post Liberty Media chief John Malone is being taken to task for his "outrageous" compensation package, which includes a five-year employment agreement that renews daily. Shareholder firm Proxy Governance is advising Liberty shareholders to vote against the re-election of two directors in protest. Time Warner's 'Sex' Expected to Open at No. 2 Los Angeles Times Warner Bros.' "Sex and the City," this weekend's major motion-picture release, is expected to open at No. 2 to "Indiana Jones and the Kingdom of the Crystal Skull" from Viacom's Paramount Pictures. The R-rated "Sex" is tracking strongly among females over 25. Comcast Web Portal Taken Over by Hackers Associated Press Hackers took over and defaced Comcast's Web portal for several hours Wednesday night, leaving a cryptic message on the site that the company's 14.1 million subscribers use to access e-mail, news and technical support. Hackers posted that they had "RoXed" Comcast. Murdoch: U.S. Economy Faces 'Very Hard Time' Bloomberg News Corp. chief Rupert Murdoch predicts the U.S. economy will be dismal in the coming months. "People are suffering terribly," he says. Newspapers are going to "deteriorate tremendously." Also, Google is "the greatest company in America." Barack Obama is "like a rock star." Viacom Chief Dauman Sees Ad Growth Slowing Reuters Viacom expects a slower rate of U.S. advertising growth in the second quarter than in the first quarter, according to CEO Philippe Dauman. The company's second-quarter domestic ad revenue is expected to grow 3% to 4%. "Right now, we're in an economically uncertain environment." Time Warner CEO Bewkes Open to 'Unload' AOL Dow Jones Time Warner CEO Jeff Bewkes says the media giant doesn't want to "unload" its AOL online division -- but he is open to a deal if it increases the value of the Internet property. "If someone gave [AOL] more scale, and more resources, of course we'd be open to that." Disney's Iger: Hollywood Makes Too Many Movies Bloomberg Disney boss Bob Iger says Hollywood studios should reduce the number of films produced. "Too many movies are being released into the market. They can't all be good enough or marketed well enough to drive good returns." ROI in the film industry "isn't impressive." Murdoch to Lecture on Changing Media World Australian Rupert Murdoch will present a series of lectures on Australia's ABC Radio starting in November. The Boyer Lecture series is a showcase for prominent figures to comment on various issues. Murdoch is in a "rare position" to address the "changing media landscape," says ABC Radio. Hollywood Studios In Digital Deal With Actors Los Angeles Times The American Federation of Television and Radio Artists is reaching a tentative deal with Hollywood studios on a three-year contract. The deal establishes fees for content downloaded online and preserves actors' rights on the use of their voices and images in online clips. Disney Forms Division to Publish Graphic Novels Variety Disney is entering a deal with Ahmet Zappa, former Twentieth Television head Harris Katleman and writer Christian Beranek to oversee the new Kingdom Comics, which will develop graphic novels for film adaptation and turn past live-action films into comic books. Media to Feel Pinch of Sluggish U.S. Economy Hollywood Reporter Media and entertainment companies are likely to feel a pinch from a sluggish U.S. economy all year long, based on the results of the just-ended quarterly earnings season. News Corp. chief Rupert Murdoch puts it most bluntly: "There's no doubt the consumer economy is stressed." News Corp, CBS Most at Risk to Ad Weakness Hollywood Reporter News Corp. and CBS are more at risk than their peers to advertising weakness because of their higher exposure to auto and financial ads amid a sluggish economy, says a new UBS analysis. Viacom is "best positioned," due to its mix of "more economically resilient advertising." News Corp Raises Stake In German Pay-TV Dow Jones German pay-TV station Premiere is said to be naming two investment banks to represent all shareholders should News Corp. raise its stake in the company and makes a tender offer to minority shareholders. News Corp. last week raised its stake in Premiere to 25.01%. Murdoch's Mother Beats Australian Tax Bill Sydney Morning Herald News Corp. boss Rupert Murdoch's 99-year-old mother is triumphing over Australian tax authorities in court over a tax bill on an $81 million payment. Dame Elisabeth Murdoch had appealed an order to pay tax on the sum following a 1994 reorganization of family trusts. Will Time Warner Cable Acquire Rival Charter? The Deal Time Warner Cable may target Charter Communications after it splits from Time Warner, says Pali Research analyst Richard Greenfield. Troubled Charter, which is majority owned by Microsoft co-founder Paul Allen, is a "logical target," with its shares facing "a questionable future." Media Companies 'Endangered' by Old Models JackMyers Media companies are in danger of following the railroad industry model and becoming "Industrial Age mass distribution vehicles," warns media economist Jack Myers. "New models must be quickly developed before the economics of the media business collapse." Sorrell: Traditional Media Are Under Pressure Reuters Traditional media are under pressure in developed markets but still growing in newer markets like India, according to Martin Sorrell, CEO of advertising giant WPP Group. Also: Google plans to grow its business in television, radio and print, "and I am sure they will do that." Time Warner Hoping 'Sex' Sells This Friday New York Post Time Warner film studio Warner Bros. suddenly has a lot riding on the box office performance of "Sex and the City" after the disappointing numbers posted by "Speed Racer" -- which cost $100 million to make but has only grossed $32 million domestically. "Sex and the City" opens Friday. Viacom's 'Indiana' Digs Up Box-Office Gold Los Angeles Times "Indiana Jones and the Kingdom of the Crystal Skull," from Viacom's Paramount Pictures, rang up $151 million over five days in North America, making it the second-best Memorial Day weekend opener -- just $2 million shy of last year's "Pirates of the Caribbean: At World's End." Time Warner, NBC Journos Talk Up Merger Hollywood Reporter Speculation of a possible Time Warner-NBC Universal combination is being talked up by journalists at both companies. "Time Warner is considered the front-runner to merge with NBCU," reports CNBC's Julia Boorstin. Fortune's Richard Siklos describes such a deal as an "enticing prospect." NBC, Time Warner Vie for Weather Channel Wall Street Journal Time Warner and a partnership between NBC Universal and Blackstone Group are said to be the leading contenders to win an auction for the Weather Channel, ahead of Friday's deadline for a second round of bids. Time Warner is seen as a "more aggressive contender." Time Warner to Focus on AOL, Magazine Biz WSJ / Fortune Time Warner CEO Jeff Bewkes is pleasing shareholders by spinning off the cable business. What's next? An update on AOL's dialup business is reportedly coming. Also, the struggling Time Inc. is said to need to shut down unprofitable magazines and cut its workforce. Time Warner: The Sex (And The City) Economy Forbes Time Warner's feature-film version of HBO's "Sex and the City," set for release May 30, aims to be "the Super Bowl for women." The media giant's New Line Cinema has tie-in deals with marketers like Mercedes Benz and Skyy vodka. HBO says it is raking in "hundreds of millions of dollars." News Corp's 'Idol'-Fueled Fox Ranks No. 1 Bloomberg News Corp.'s Fox, the U.S. television network with the top-rated "American Idol," says it finished the season with the largest prime-time audience for the first time, surpassing five-year champion CBS. Fox's "Idol" finale Thursday night won 31.7 million viewers, up 2.9% from a year ago. Redstone: CBS, Viacom Won't Be Reunited Hollywood Reporter CBS chairman Sumner Redstone says that the company never will be reunited with sibling Viacom, which he also controls. A renewed combination will "absolutely not happen" despite a recent report suggesting that Viacom CEO Philippe Dauman is pushing for it sometime in the future. Viacom in Lawsuit by 'Funny Face' Director Bloomberg "Funny Face" director Stanley Donen is filing a lawsuit against Viacom's Paramount Pictures and retailer the Gap, saying they didn't get his permission to use an Audrey Hepburn dance scene from the movie in television commercials for women's pants. Donen wants $5 million. Disney Faces Product Recall Over Lead Paint Forbes Disney is recalling thousands of Tinker Bell magic wands and "Pirates of the Caribbean" sleeping bags contaminated by excessive levels of lead paint, say U.S. federal inspectors. No injuries have been reported. The problems were discovered during random tests. Clear Channel Sues Tribune Over Exec Hire Crain's Chicago Clear Channel is filing a lawsuit against Tribune, accusing the Chicago company of misappropriating trade secrets when it lured away Andrew Friedman to be a VP of interactive media. Clear Channel says it will not "tolerate Tribune's interference with valuable business contracts." Disney, Studios Paid to Drop Online Lawsuit Bloomberg Disney, News Corp. and Viacom are settling a copyright lawsuit against the movie-sharing Web site ShowStash.com after owner Timur Azaev agreed to stop infringing films and pay damages of $2.77 million. The lawsuit's aim was to stop "blatant and illegal activity." Senator in Push Against More Media Mergers The Deal Sen. Byron Dorgan (D-N.D.) is asking the U.S. Government Accountability Office to launch an inquiry into the impact of media consolidation. He wants the study to include an examination of to what extent consumers go to traditional media companies' sites on the Internet. Time Warner to Merge With NBC Universal? Bloomberg / CNBC Time Warner may use the $9.25 billion payout from its cable unit spinoff to pursue acquisitions of assets like the Weather Channel or Discovery Networks. Also: Time Warner is considered the front runner to merge with NBC Universal. Execs at both companies "are thinking about it." News Corp Rumored to Eye Video Game Site Pulse 2.0 News Corp. is said to be interested in acquiring Newsgrounds.com, an online video game company, through its IGN division. The Glenside, Penn.-based Newgrounds, founded in 1995, receives 500,000 unique visitors per day and describes itself as "the largest Flash portal on the Web." Barnes & Noble Mulls Acquisition of Borders BusinessWeek Barnes & Noble, the giant bookseller built through acquisition, may be on the verge of its biggest deal yet as it weighs bidding for top competitor Borders Group. Analysts say the deal could bolster Barnes & Nobles' bottom line at a price tag of well over $1 billion. Cramer: Media Biz Hurt by Apple, Google Hollywood Reporter Jim Cramer, the Web entrepreneur, influential stock-picker and host of CNBC's "Mad Money," says: "I hate media stocks." The reason? "Apple is taking away the profitability of TV, and Google is taking it away in print." Google is "a parasite. It doesn't create content, it steals it." Time Warner Gets $9 Billion on Cable Split MarketWatch Time Warner Cable will pay Time Warner a $9.25 billion dividend as the companies separate. With this deal, says CEO Jeff Bewkes, Time Warner will focus its businesses "on creating and distributing our branded content across traditional and digital platforms worldwide." Obama Vows to Target Big Media Mergers The Deal Sen. Barack Obama, in new public remarks, says he will make Big Media a target of his administration's antitrust enforcers if he is elected president. Much of the Democratic Party base blames media consolidation for uncritical coverage of the Bush administration's lead up to the war. Bertelsmann Names Chief for Random House IHT Bertelsmann is