Articles of the Day


Liberty Media To Split Off Majority Of Liberty Entertainment; Assets Include DirecTV, Sports Nets — In typical Liberty Media (NSDQ: LINTA) fashion, the company founded by John Malone has just filed a complicated business plan with the SEC on a Friday night. It’s also a relatively rare move—a split-off that will give holders of the Liberty Entertainment group tracking stock shares in a new subsidiary that will hold the majority of the group’s businesses, assets and liabilities in exchange for some of their tracking stock shares. The announcement follows CEO Greg Maffei’s assurance this week at the UBS Global Media and Communications conference that the company is looking for a structure that benefits shareholders better than the current tracking stocks. If it gets the usual regulatory and IRS approval—as is generally the case with Liberty, the goal is a tax-fr*ee transaction—holders of the tracking stock will have stock in two investments. Release. The details: The new Liberty Entertainment will be a publicly traded company—not a tracking stock—called Liberty Entertainment, Inc. That company would include roughly 52 percent of The DirecTV Group (NYSE: DTV), Inc., 50 percent of GSN, LLC, 100 percent of FUN Technologies and 100 percent of Liberty Sports Holdings, LLC (three regional sports nets.) It also will be responsible for $2 billion in debt incurred when Liberty acquired its majority interest in DirecTV last spring.

New NYT.com GM Denise Warren: Tip-toeing Into Aggregation With Guarded Optimism — As if heading advertising for the New York Times (NYSE: NYT) Media Group wasn’t tough enough in this climate, Denise Warren is taking on the role of GM of NYTimes.com as the site fends off increased challenges from competitors and the economy. Warren has been chief advertising officer of the NYT Media Group for three years and has been with The New York Times Company for 20 years. As she settles into the GM job vacated by Vivian Schiller, who exited after being named CEO of NPR, Warren tells paidContent that she has been able to maintain her optimism. For example, despite the temptation to suspend new initiatives and wait until a more supportive ad market returns, Warren has faith the NYTimes.com’s new experiments with aggregation will deliver. In particular, she’ll be taking a close look at recently unveiled Times Extra feature and the current beta test of Times Widgets, which lets readers create custom apps for RSS feeds from various news sections. While the NYTCo has a lot more plans along those lines, Warren concedes that the economy will likely force the company to scale other experiments back a bit. “One of the unfortunate things about this downturn is that you can’t do all the things you’d like to, whether it’s your personal life or your professional life,” Warren says. “You have to watch that budget. You can only do the things that are really important. But in a way, these constraints that we’re operating under can help focus you.

Google Quietly Tries Brokering Deals With ISPs To Get Priority Access — Congress has failed to pass legislation regarding so-called “Net Neutrality,” and now the issue is again top of mind as Internet providers seeking preferential treatment; network operators considering a tiered approach, and once-staunch defenders beginning to soften their stance on the matter. This time, it appears Google (NSDQ: GOOG), which has been traditional a huge advocate of network equality and openness, is working behind the scenes with major cable and phone companies to get its Internet traffic prioritized, according to documents reviewed by The Wall Street Journal.

CBS Relaunching TV.com; Hoping Finally To Become A Video Player; Aiming Beyond Hulu, Not At It — CBS Interactive is relaunching TV.com, hoping to transform the well-named site known for its TV-related community and user-generated content into a serious video destination, paidContent has learned. The full-scale relaunch with new content partners is slated for January but the cosmetic changes will start this week with a new look and logo, according to sources familiar with the plans. TV.com is among the assets CBS (NYSE: CBS) picked up with its $1.8 billion acquisition of CNET last summer. (The other notable non-brand domains: News.com, MP3. com and Radio.com). Despite having the ultimate url and folding in some video through agreements first with CBS and then with Hulu, CNET missed multiple opportunities to grab early advantage. Now it’s playing catchup with a number of competitors, including Hulu and newest challenger Sling.com.

Lycos Europe Opts For Liquidation, $66 Million Paid Back To Shareholders — Lycos Europe shareholders voted to liquidate the business at an extraordinary general meeting at a hotel in Amsterdam this morning. They also nodded through management’s strategy to sell its domain registration business, shopping portal and Danish website as going concerns. Shareholders will get €50 million ($66.72 million) returned to them on December 19 – not a bad Christmas present, but the price per share of €0.1605 ($0.21) is vastly less than its opening high of about €24 (now $32) in 2000.

Facebook Opens Paris Sales Office As Part of European Expansion — What does Facebook want for Christmas? A greater foothold on the European ad market by the looks of things: the social network is set to open a sales office in Paris as part of plans to grow across Europe, according to Mad.co.uk. The site’s commercial director for EMEA Blake Chandlee has unveiled the office’s first employee Damien Vincent who has defected from MySpace France where he was head of sales. Facebook claims to have 6.1 million users in France and to have just reached the one million mark in Switzerland, adding to its 130 million users worldwide. Facebook translated the site into French in April and saw an immediate traffic boost, but it still trails in France to the Skyrock social net, which has more than 12 million users. In August Chandlee was behind moves to double the site’s UK sales and marketing staff to about 40. There are more than eight million UK users but according to Nielsen Online suffered a slight dip at the start of 2007 from a peak of 8.5 million.

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