Rumors about the possible acquisition of Facebook, usually with Yahoo as buyer, have been around for most of this year. Not that Yahoo or Facebook have asked for this attention, but the media is getting antsy. Robert Young put it best last week when he asked – Yahoo & Facebook: Deal or No Deal?. That is certainly the question of the fiscal quarter.
We know that Facebook has been pursued almost since the beginning of its existence. They narrowly avoided a $10 million acquisition by Friendster in mid 2004, just months before they took their first round of financing from Accel Partners. Former Friendster execs say that the deal was close to closing, but last minute negoations over control ultimately disrupted the deal. Since then, Facebook has certainly been approached by every major Internet company.
Category: Business
Wal-Mart Culture/Marketing Clash
Two interesting articles on the identity conflict underway (perhaps being resolved?) at Wal-Mart:
- Michael Barbaro & Stuart Elliott:
Yesterday, in a surprising rebuke, Wal-Mart overturned Ms. Roehm’s choice to replace the company’s longtime advertising agencies — a decision that puts $580 million worth of marketing up for grabs again, two months after the original search process ended.
Her departure has roiled Madison Avenue and sent several major agencies scrambling to dust off their marketing plans for the nation’s largest retailer.
At the heart of the controversy, everyone agreed, is a culture clash. Ms. Roehm, a 35-year-old rising star who won acclaim in advertising circles for her work in the automobile industry, was never at home within the painstakingly modest by-the-books culture of Wal-Mart.
- Michael Barbaro & Stuart Elliott:
t was the kind of bold advertising campaign that Wal-Mart executives agreed was needed to attract style-hungry consumers: a series of commercials featuring two sisters — one a regular Wal-Mart shopper, the other not — trying to redecorate their homes.
In commercials set to run throughout this holiday season, the sisters were to discover that Wal-Mart offers a lot more than low prices.
But in July, as gasoline prices spiked, senior executives abruptly scrapped plans for the so-called sisters campaign, sending a marketing team led by Julie Roehm scrambling to create a replacement, according to people involved in the process. The reason was that the ads did not focus enough on low prices.
Web Investment Bubble: 61 Video Hosting Companies
I’m pleased to offer this latest revision of the Web Video Cheat Sheet, a quick and dirty guide to sharing videos online. I’m in the process of compiling another report that examines a specific facet of the video sharing experience (more on that later). Meanwhile, I couldn’t wait to get this 61-site overview out there so folks can figure out the best place to host their most memorable (drunken) holiday moments.
A New Goofy Short: “How to Install Your Home Theater”
It is not surprising that Mr. Lasseter is using short films to train and test the artists: he and his fellow Pixar animators spent almost 10 years making shorts, learning how to use computer graphics effectively before they made “Toy Story” and the string of hits that followed. Pixar continues to produce a cartoon short every year, and has won Oscars for the shorts “Tin Toy,” “Geri’s Game” and “For the Birds.”
Four new shorts are in development at Disney: “The Ballad of Nessie,” a stylized account of the origin of the Loch Ness monster; “Golgo’s Guest,” about a meeting between a Russian frontier guard and an extraterrestrial; “Prep and Landing,” in which two inept elves ready a house for Santa’s visit; and “How to Install Your Home Theater,” the return of Goofy’s popular “How to” shorts of the ’40s and ’50s, in which a deadpan narrator explains how to play a sport or execute a task, while Goofy attempts to demonstrate — with disastrous results. The new Goofy short is slated to go into production early next year.
I’ve long enjoyed short films. Clusty has more.
The Top 100 Red Wines of 2006
Books and the Future of Publishing
Michael Maiello and Michael Noer:
Are books in danger?
The conventional wisdom would say yes. After all, more and more media–the Internet, cable television, satellite radio, videogames–compete for our time. And the Web in particular, with its emphasis on textual snippets, skimming and collaborative creation, seems ill-suited to nurture the sustained, authoritative transmission of complex ideas that has been the historical purview of the printed page.
But surprise–the conventional wisdom is wrong. Our special report on books and the future of publishing is brim-full of reasons to be optimistic. People are reading more, not less. The Internet is fueling literacy. Giving books away online increases off-line readership. New forms of expression–wikis, networked books–are blossoming in a digital hothouse.
Air Travel Liberalization
Earlier this year an important study came out, taking a look at the economic impact of liberalization. And I’ve been meaning to share it with you and talk a bit about what it means for our business.
Over the past 25 years, three main forces have radically changed the airline industry: the regulatory environment, airplane/aerospace capabilities, and airline strategies/business models.
First, changes to government regulations have been critical in shaping the airline industry. Since the deregulation of the U.S. market in 1978, we’ve seen a dramatic shift in domestic and international markets. And we’ve also seen increased liberalization – even “open skies” – in international markets. This freer market access has had the effect of intensifying airline competition and causing airlines to focus more on what passengers want.
The End of Risk Pooling
Another sign that we are increasingly on our own. The insurance industry is rapidly (and inexorably) eliminating the idea of risk pooling:
As insurers use the new techniques to get ever-more-refined estimates of what individual policyholders are likely to cost in the future, they may be tempted to charge people closer and closer to full freight for treating an illness or rebuilding a fire-damaged home. Then even those who benefited from the end of cross-subsidies could see their rates go up as they effectively are asked to pay their own way, rather than share the cost by pooling with others.
The Economist has more.
Tyson’s Renewable Energy
“Tyson Foods, the world’s largest chicken producer and meat processing company, blamed high corn prices last week for its third consecutive quarterly loss. It said that the recent excitement over corn-based ethanol fuel sent the price of that grain soaring, raising feed costs and compounding the effect of a meat glut that depressed prices. “This is either corn for feed for corn for fuel,” Rich L. Bond, president and chief executive, lamented in a statement.
Well, if fuels are where the money is, Tyson will be there too. As Mr. Bond was releasing the disappointing results, Jeff Webster of the corporate strategy department was announcing a brand new venture: Tyson Renewable Energy. Its first task? Turning some of what the company described as its “vast supply of animal fat” – 2.3 billion pounds a year, Mr. Webster reckons – into a diesel-like biofuel.”
Funny
Extraordinary Service in an Era of Low Expectations
My cell phone rang, displaying an unknown number while driving home from a Thanksgiving trip via the airport. Shannon from Milwaukee’s fine airline – Midwest – called to say that one of her coworkers found homework in the seatback of the plane we just vacated. She thought it important and wanted to know if we had a FedEx number so she could send us the missing homework via an overnight package.
Let’s just ponder this customer service outlier, or “black swan [more]” for a moment. We live in an era of low expectations:
- Politics: Meet the New Boss, Same as the Old Boss:
But Ms. Pelosi’s damage to herself was already done. The well-known shortcomings of Mr. Murtha were broadcast for all to see — from his quid-pro-quo addiction to moneyed lobbyists to the grainy government tape of his involvement in the Abscam scandal a generation ago. The resurrected tape — feasted upon by Pelosi enemies — shows how Mr. Murtha narrowly survived as an unindicted co-conspirator, admittedly tempted but finally rebuffing a bribe offer: “I’m not interested — at this point.
- Black Friday retail tactics:
In Lewis Center, Ohio, near Columbus, Cindy Milsap, 43, and her daughter, Ashley, 20, woke up before dawn to drive to the nearby Wal-Mart Supercenter, which advertised a 52-inch high-definition television for $474. “We don’t really need a new TV, Ms. Milsap said. “But at that price? C’mon.”
But the bargain eluded them. The “limited quantity” in the ad, she said, was three TVs — all sold by the time the pair arrived.
Those customers left in peace.
- The oxymoron that is “airline service“:
With overcrowded airplanes, little civility in dress or demeanor of passengers, few meals, fewer amenities, industrywide salary cuts of epic proportions, and (the worst sin of all) airlines canceling pension plans because they’ve robbed the fund of hundreds of millions, far too many of America’s airline employees are shell shocked, depressed, disillusioned and resentful. In effect, we’re now an industry full of employees going through post-traumatic stress and wondering why we ever thought it was fun.
And that, in a nutshell, equates to bad and inattentive service with a “who cares” attitude. Morale, in other words, is the key, and it’s in precious short supply today.
- 2006 Airline Quality Rating website.
I remain astonished that a Midwest employee cleaning the plane found said homework, took the time to give it to someone who could find the owner, lookup their contact information, make a call, obtain the shipping information, place the papers in a FedEx package and send it our way. Everyone involved must actually care about the customer. What a concept. I hope that these words, in some small way encourage others to fly Midwest. There is indeed, no better care in the air.