createpositivechange

Tag: Bear Stearns

  • Google, Facebook battle for friends

    Despite losing to Microsoft in its bid for a piece of Facebook, Google isn’t giving up on social networks.

    The behemoth of search is partnering with other tech companies and social networks to develop a competing approach called OpenSocial. The open-source technology will enable developers to write applications that can be used on many sites, including partners in the project, such as LinkedIn and Friendster.

    This is a markedly different approach from that of Facebook, which does not share its technology with others.

    With 50 million users, a $240 million investment by Microsoft and a valuation of $15 billion, Facebook has a big head start. But the open-source approach has been proved over and over on the web. And then, of course, there’s the seemingly unlimited force of Google.

    A number of major players have been in both camps. PayPal co-founder Peter Thiel invested in both Facebook and LinkedIn. Napster co-founder Sean Parker was both the founding president of Facebook and a co-founder of Plaxo, which is a partner in OpenSocial.

    Thiel and Parker are not the only web kingpins in this fray. Netscape co-founder Marc Andreessen is involved in two OpenSocial partners – LinkedIn and Ning.

    With such a stellar cast, it’s going to be quite the show: Facebook and Microsoft and the millions of uncounted developers and publishers who will embrace open source.

    We’re in for a real spectacle.

  • Mays and McCombs, the original Radioheads

    The radio business has been very good to Lowry Mays and Billie Joe “Red” McCombs.

    In 1972, they formed the San Antonio Broadcasting Company to buy an FM station for $125,000.

    Thirty-five years later, that company is called Clear Channel Communications and it owns more than 1,000 stations. Its shareholders recently approved a $19.5 billion private equity buyout that values Mays’ stock at more than $1.1 billion and McCombs’ shares at about $190 million. The deal is expected to close before the end of the year.

    In early 2000, when Clear Channel shares hit $95, the founders’ stock would have been valued at more than twice as much as now.

    Still, not a bad rate of return, especially when the founders’ families hold a significant stake in Live Nation, spun off from Clear Channel in 2005. Live Nation is trying to perform the same consolidation magic in the entertainment industry that Clear Channel did in radio.

    Another affiliate, Clear Channel Outdoor, trades publicly, but most of its stock is held by Clear Channel.

    In addition to making money, Clear Channel has made important connections.

    Along with Mays, his two sons, Mark and Randall, and McCombs, current board members include former Oklahoma congressman J.C. Watts and Ted Strauss, a former senior managing director of Bear, Stearns & Co. Strauss’ brother, Robert, was a long-time adviser to presidents, Republican and Democrat. Ted Strauss’ late wife, Annette, was mayor of Dallas.

    Former directors include Dallas billionaire Tom Hicks and Vernon Jordan, a presidential adviser to Bill Clinton.

    Live Nation’s directors include movie producer Harvey Weinstein and Henry Cisneros, the former U.S. secretary of housing and urban development, and a former mayor of San Antonio.

    In San Antonio, McCombs may be best known as a car dealer, but his business dealings range widely. He is a past owner of the Minnesota Vikings of the NFL and the San Antonio Spurs and Denver Nuggets of the NBA.

    Both McCombs and Mays have top-ranked business schools named after them, the McCombs School of Business at the University of Texas at Austin and the Mays Business School at Texas A&M.

    Clear Channel has been criticized for homogenizing radio across the country. Some of its controversies have involved Rush Limbaugh, Howard Stern, the Dixie Chicks and Madonna.

    Critics link Lowry Mays’ conservative politics to company decisions, such as when some Clear Channel stations stopped playing Dixie Chicks songs after they criticized President Bush because of the Iraq war.

    Clear Channel disputes that. “The radio company that banned the Dixie Chicks was Cumulus Media, not Clear Channel,” the company says in a “Know the Facts” section of its Web site. Some Clear Channel stations, in fact, increased their airplay of the Chicks, the company says.

    Live Nation’s recent $120 million deal with Madonna certainly belies any notion of retribution against the Material Girl and her politics.

    For Mays and McCombs, the original Radioheads, business seems to trump partisanship.

  • Veco Corruption Trial Begins

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  • Uc Irvine Rehires Liberal Dean

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  • Judge Says Par Ridder Must Step Down

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  • At Brinker, directors eat free

    Brinker International, the Dallas restaurant company with $4.3 billion in annual revenue, pays members of its board of directors well, more than $200,000 a year in cash and stock, according to the company’s proxy statement.

    And it gives them a complimentary dining card for use in company restaurants, which currently number about 1,800 in 49 states, Washington, D.C., and two dozen foreign countries. Brinker’s outlets include Chili’s, Romano’s Macaroni Grill, On the Border and Maggiano’s Little Italy.

    The dining card is a great perk for motivating directors to learn first hand about the company’s business and its products. Wonder how many of Countrywide Financial’s directors and their families hold some of the exotic mortgages that are now causing chaos in the credit markets? Or, how many Mattel directors and their families have toys with lead paint in their homes?

    A few of Brinker’s directors did not make use of their dining card, as first reported by footnoted.org. Among them was Robert Gates, who left the board late last year when he became Secretary of Defense.

    George Mrkonic, the retired president of Borders Group, and John Mims, co-founder of Cypress Ridge Partners, also did not use their cards.

    The remaining outside directors did make use of their cards, some of them, apparently, liberally. In its proxy, the company listed only the tax gross up amount paid to each director, related to use of the dining card. That amount would be much less than the value of the meals received.

    Ron Kirk, former mayor of Dallas and a partner in the law firm of Vinson & Elkins, received a gross up of $1,022. Rosendo Parra, a retired Dell executive, received $528. Erle Nye, chairman emeritus of TXU, the giant utility company being acquired by private equity firms, received $415. And James Oesterreicher, the retired chairman of J.C. Penney, received $250.

    Keep in mind that the average meal (food and drinks) at Chili’s, Romano’s and On the Border generates less than $15.50 in revenue, according to Brinker’s 10-K. The average meal revenue at Maggianos is $25.80.

  • Bush Nominates Former Judge As Ag

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  • Ellison in court over America’s Cup

    The battle for the America’s Cup is being fought not on the high seas but in New York State Supreme…

    Oracle CEO Larry Ellison, whose team lost the race this year, has accused winner Ernesto Bertarelli of manipulating the rules governing the next cup.

    The court case, filed by the Golden Gate Yacht Club, charges that Bertarelli’s team has accepted a challenge from a team with no standing, and has refused to disclose design specifications for boats sailing in the race. Bertarelli’s group, Societe Nautique de Geneve, has turned the competition into a “Defender’s Cup,” the suit charges.

    Justice Herman Kahn has scheduled a hearing for Oct. 22.

    Ellison is known not only for his love of sailing, but for his fierce competitiveness. He owns the world’s second-largest private yacht, the 454-foot Rising Sun, which was designed to be longer than Microsoft billionaire Paul Allen’s yacht, Octopus.

    However, as Robert Frank has noted in the Wall Street Journal Wealth Report, Ellison is building a new boat. The Rising Sun, it turns out, is too big to park at most of the world’s marinas.

    On the web
    New York Supreme Court sets October hearing date on America’s Cup lawsuit – International Herald Tribune
    Billionaire Boat Battle – Forbes
    Ellison’s New Yacht – Wall Street Journal

  • A Change of Course for Indymac

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  • Murdoch Gets Taste of His Own Medicine

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