| Tue, Nov 11, 2008 |
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CBS Cuts Six Staffers For Unlaunched Music Site; When Are More Coming?
CBS Interactive (NYSE: CBS), the digital arm of CBS which incorporates *CNET* now, is laying off about six editorial employees for a planned music site called Juke, which never launched (news was first reported by Idolator). The site was in works since before CBS bought CNET (NSDQ: CNET) Networks, and as the integration happened, CBS decided to focus efforts on building its Last.fm service, which has seen its own share of integration missteps. Among the editorial employees let go were former Blender editor Craig Marks. Meanwhile, does anyone remember that CNET/CBS also owns MP3.com, which it bought in 2003.
Speaking of these side projects, what’s happening with the initial idea of disposing off more non-core products within CNET’s portfolio? Before it got acquired and in the middle of its board proxy fight with Jana Partners, CNET sold off its Webshots photo sharing site to *American Greetings* and promised to sell more. At that time I speculated MySimon and Search.com and others.
Also, CBS is probably also thinking of doing some more layoffs, I would imagine, and wouldn’t be surprised if a major portion of come from the editorial side of things, including News.com, CNET’s tech reviews, TechRepublic and others. Again, no inside knowledge yet, but just joining the dots based on the market realities, post-integration . For the Q308 earnings, CBS Interactive (which includes CNET) revs ballooned to $140.7 million from $35.9 million for the same quarter last year...and yes, even though it is a bright spot for the company, the relative reality is a lot more grim…
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| Mon, Nov 03, 2008 |
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@ FOBM: Economy Will Impact Billion-Dollar Deals; Old Media Should Buy New Media
When it comes to the shaky economy, the big question is how are deals getting done? A panel at FOBM offered some optimism, saying that companies with cash are looking for well-priced deals, and that old media companies will be looking to Silicon Valley for their next stage of evolution, but they also cautioned there’s no more mega-billion dollar acquisitions. Along with discussion, Newser Founder Michael Wolff, who is writing a book about News Corp (NYSE: NWS) Chairman and CEO Rupert Murdoch, provided a number of colorful insights about Murdoch’s purchase of Dow Jones, one of the biggest media deals of last year.
-- On how the market changed from a deals perspective in the last four weeks: Scott Peters, managing director of the Jordan Edmiston Group: “The deal market is fantastic. During the first half of this year, it [M&A] was really active and it’s still active, but the type of transactions have shifted. The mega-billion dollar market is gone. The middle of the market is still active with strategic deals—non-private equity deals—and the next flood will be full of challenging situations.” Wolff: “We are going to see a ramp up really quickly. I think you are going to see a vast reconfiguration. It’s going to be about—who has the money, and if you have the money right now, this is a great period. It is the best thing in the whole world that has happened to you. If you are a private equity firm, who closed on financing recently,...this is a fantastic time for you.”
More on CBS-*CNET*and News Corp.-Dow Jones after the jump…
-- On CBS’s purchase of CNET, and a potential Reed Business sale: Wolff: *CBS* won’t see the value of CNET (NSDQ: CNET). “I think that got sold at the top of the market to a dumb buyer, so it’s a perfect combination. Will that come along next year or the year after, it will eventually.” On Reed Business getting done, Jim Casella, CEO of Case Interactive Media: “The price expectation has to come down. I think you’ll have to see people doing a combination of debt and equity if they want to close a deal of significant size.”
-- On News Corp.’s acquisition of Dow Jones: Wolff: “One of the issues that is certainly on everyone’s mind at News Corp. is that the share price has sunk dramatically. Paying for a newspaper on the cusp of most significant downturn of our time is, relatively speaking, an error. On the other hand, they have a lot of cash, and he’s 77 years old, and that’s the price of having Rupert Murdoch as your CEO. He gets what he wants. From Dow Jones standpoint, I don’t know what shape they would be in if they were a standalone company. They have News’s resources, and Rupert’s full faith and commitment. They are in one of the strongest positions of any media company, and certainly any newspaper company in the country.” Does he get the enterprise side of the business?: “He had no idea there was an enterprise side of the business. I believe I was the one who explained Factiva to him...He wanted the newspaper, and the fact that afterwards he found himself with businesses that were rather more successful than the newspaper business, was surprising.” Is there a battle between the WSJ and the Financial Times?: “Rupert’s battle is with the New York Times (NYSE: NYT). I think they’ve done a bang up job. That’s a battle that will play out is until there’s no more New York Times. That’s a deal that will happen this year.”
-- On evolving old media: Wolff: “If you are a going concern in the old media business, you are going to be looking at new media companies.” Casella: “There’s a lot of companies in Silicon Valley that are going to be attractive to old media companies on the East coast. Those are worth going out and looking at and buying.”
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Earnings: CBS Swings To Loss On 12.5 Billion Write-Down; Q3 Revs Rise 3 Percent
True to its warnings about lower earnings earlier this month, CBS (NYSE: CBS) Q3 net earnings from continuing operations came in with a loss of $12.46 billion, or a loss of $18.58 per diluted share, versus earnings of $340.2 million, or $.48
per diluted share, for the same prior-year period. The earnings report also highlighted a $56.4 million write-down on items associated with “other-than-temporary declines in the market value” CBS’ investments. Revenues, meanwhile, were up 3 percent to $3.38 billion in Q3, which were driven by the addition of CNET and domestic cable sales of CSI: New York, though offset by lower ad sales. As Les Moonves, president and CEO of CBS Corp., said during the earnings call, “any increase in revenue is welcome in this difficult environment.”
-- Interactive: Interactive revs ballooned to $140.7 million from $35.9 million for the same quarter last year, thanks to CNET (NSDQ: CNET). On a comparable basis, including CNET in prior year results, revenues gained 6 percent driven by 12 percent growth in display advertising. Interactive OIBDA was $2.5 million compared to a loss of $11.2 million in Q307. Things were not all roses on the interactive side however, as the segment posted an operating loss of $15.2 million in Q3 versus an operating loss of $13.3 million related to increased expenses associated the acquisition of CNET. Interactive results included stock-based compensation expense of $1.9 million and $.6 million for Q307 and this year’s Q3, respectively. During the call, Moonves noted: CBS ranked 110 uniques two years ago, number 7 today, as a result of CNET. More to come
Release | Webcast (8:30 AM EDT)
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Earnings Call: Redstone Explains Sale Of CBS, Viacom Shares; Moonves: CNET Propels Interactive
Beginning CBS (NYSE: CBS) Corp.’s Q3 earnings call, Sumner Redstone, the company’s executive chairman, noted that CBS is operating in one of the worst economic periods in recent memory, but said it continues to be in a strong position. He then turned to the recent sale of $233 million worth of non-voting share of Viacom (NYSE: VIA) and CBS by Redstone’s National Amusements Inc. theater company, through which he controls the stock of both entities. Redstone: “I want to discuss another topic on your mind. National Amusements, a company I control, has been in the news lately. Let me give you the facts. Debt issues forced the sale of these stock. The conditions led to the sale of $233 million of CBS and Viacom shares. This is not something that NAI wanted to do and it has no intention of selling a single share of Viacom or CBS stock. This is a difficult economic period. We are actively talking with our lenders. It should be obvious that the current stock prices of these two companies do not reflect their current value.”
-- All thanks to CNET: In his opening remarks, Les Moonves, CBS president and CEO, discussed the pain afflicting all media companies. He did single out interactive growth as one particular bright point. The segment’s revenue reached $140.7 million, compared to $35.9 million in Q307, thanks mostly to CNET (NSDQ: CNET). He noted that while the interactive category saw 12 percent growth in display ads, CNET itself saw display revenues rise 14 percent. Looking at the audience numbers, Moonves pointed out that two years ago, CBS ranked 110 in monthly average unique visitors. Today, with the addition of CNET, CBS ranks number seven.
Release | Webcast (8:30 AM EDT)
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| Thu, Oct 30, 2008 |
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Earnings Call: Redstone Explains Sale Of CBS, Viacom Shares; Moonves: CNET Propels Interactive
Beginning CBS (NYSE: CBS) Corp.’s Q3 earnings call, Sumner Redstone, the company’s executive chairman, noted that CBS is operating in one of the worst economic periods in recent memory, but said it continues to be in a strong position. He then turned to the recent sale of $233 million worth of non-voting share of Viacom (NYSE: VIA) and CBS by Redstone’s National Amusements Inc. theater company, through which he controls the stock of both entities. Redstone: “I want to discuss another topic on your mind. National Amusements, a company I control, has been in the news lately. Let me give you the facts. Debt issues forced the sale of these stock. The conditions led to the sale of $233 million of CBS and Viacom shares. This is not something that NAI wanted to do and it has no intention of selling a single share of Viacom or CBS stock. This is a difficult economic period. We are actively talking with our lenders. It should be obvious that the current stock prices of these two companies do not reflect their current value.”
-- All thanks to CNET: In his opening remarks, Les Moonves, CBS president and CEO, discussed the pain afflicting all media companies. He did single out interactive growth as one particular bright point. The segment’s revenue reached $140.7 million, compared to $35.9 million in Q307, thanks mostly to CNET (NSDQ: CNET). He noted that while the interactive category saw 12 percent growth in display ads, CNET itself saw display revenues rise 14 percent. Looking at the audience numbers, Moonves pointed out that two years ago, CBS ranked 110 in monthly average unique visitors. Today, with the addition of CNET, CBS ranks number seven.
Release | Webcast (8:30 AM EDT)
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