From guterman@mediaunspun.imakenews.net Wed Aug 14 14:38:59 2002 Return-Path: Delivered-To: rrrrrrr@localhost.netnoteinc.com Received: from localhost (localhost [127.0.0.1]) by phobos.labs.netnoteinc.com (Postfix) with ESMTP id 87FA743C34 for ; Wed, 14 Aug 2002 09:38:52 -0400 (EDT) Received: from phobos [127.0.0.1] by localhost with IMAP (fetchmail-5.9.0) for rrrrrrr@localhost (single-drop); Wed, 14 Aug 2002 14:38:52 +0100 (IST) Received: from eng.imakenews.com (mailservice4.imakenews.com [65.214.33.17]) by dogma.slashnull.org (8.11.6/8.11.6) with ESMTP id g7EDZx416820 for ; Wed, 14 Aug 2002 14:35:59 +0100 Received: by eng.imakenews.com (PowerMTA(TM) v1.5); Wed, 14 Aug 2002 09:35:04 -0400 (envelope-from ) Content-Transfer-Encoding: binary Content-Type: multipart/alternative; boundary="----------=_1029331990-31627-4"; charset="iso-8859-1" Date: Wed, 14 Aug 2002 09:33:10 -0400 Errors-To: From: "Media Unspun" MIME-Version: 1.0 Message-Id: <31627$1029331990$mediaunspun$5114587@imakenews.net> Precedence: normal Reply-To: "Media Unspun" Sender: "Media Unspun" Subject: SEC Exposes Big Blue's Pink Slips To: xxxxx@yyyyyy.zzz X-Imn: mediaunspun,178767,5114587,0 This is a multi-part message in MIME format... ------------=_1029331990-31627-4 Content-Type: text/plain; charset="iso-8859-1" Content-Disposition: inline Content-Transfer-Encoding: 7bit To view this newsletter in full-color, visit: http://newsletter.mediaunspun.com/index000018970.cfm M E D I A U N S P U N What the Press is Reporting and Why (www.mediaunspun.com) ----------------------------------------------------------------- August 14, 2002 ----------------------------------------------------------------- IN THIS ISSUE ----------------------------------------------------------------- * SEC EXPOSES BIG BLUE'S PINK SLIPS * SYNERGY AND BETRAYAL AT VIVENDI * OTHER STORIES Media Unspun serves business news and analysis, authoritatively and irreverently, every business day. An annual subscription costs $50, less than a dollar a week. If your four-week free trial is coming to an end soon, please visit http://www.mediaunspun.com/subscribe.html and sign up via credit card or check. ----------------------------------------------------------------- ADVERTISEMENT ----------------------------------------------------------------- Ken Fisher offers his Quarterly Report for high net worth investors FREE of cost & without obligation. Access the same investment research he uses to guide his clients at: http://pcg.fisherinvestments.com/newrespond/letter.asp?site=UNSP&KC=1229EFCAD0000 ----------------------------------------------------------------- SEC EXPOSES BIG BLUE'S PINK SLIPS ----------------------------------------------------------------- Does the Securities and Exchange Commission have a press pass yet? It seems to be bringing us all our news lately. On the day of the deadline for companies to certify their financial statements with the SEC, the business press squirmed and waited for the next Enron or WorldCom. (We might eat these words tomorrow, but we doubt it.) In an unrelated confession, IBM gave the commission its latest layoff numbers. IBM talked about pink slips during its second-quarter earnings report, but with a vagueness worthy of your daily horoscope. ("Capricorn: Career changes may be on their way...") Only after "months of surreptitious layoff notices" did the company admit that it's cutting more than 15,600 jobs, said the AP. That's about 5% of its workforce, and a lot more than pundits expected. An IBM spokesperson told the Wall Street Journal the higher number was due to "rebalancing" and more employees than expected taking voluntary layoffs. Sorry, we're still back on "rebalancing." Did IBM "rightsize" last quarter, too? IBM's news was still trickling out Wednesday morning, but some details were available. About 1,400 workers got cut from IBM's microelectronics unit, and most of the rest were from IT services and consulting. (That ought to make IBM's new employees from PricewaterhouseCoopers feel all warm and fuzzy inside.) Look for news updates from cities that will see the cuts, such as Austin and Raleigh. OK, none of this is good. Two years into the tech slump, we're still tired of seeing people get sacked. But was it really so bad that IBM only revealed it because of new accounting regulations? Nah, Big Blue was always known for "stealth layoffs," as CNN put it, but current corporate scrutiny forced it to 'fess up for once. Until now, IBM would acknowledge the latest layoffs if reporters called and asked, but wouldn't give specifics. Yeesh. - Jen Muehlbauer IBM Cut 5% of Staff in Period, Double the Expected Number http://online.wsj.com/article/0,,SB1029282408667791835,00.html (Paid subscription required.) IBM to Cut Over 15,000 Employees (AP) http://tinyurl.com/10kz IBM confirms 15,600 job cuts (Reuters) http://www.msnbc.com/news/793777.asp IBM cutting 15,000 jobs http://news.com.com/2100-1001-949677.html IBM job cuts exceed 15,600 http://money.cnn.com/2002/08/13/technology/ibm/index.htm IBM puts job cuts at 15,600, with fewer than 50 in this state http://seattlepi.nwsource.com/business/82508_ibm14.shtml ----------------------------------------------------------------- ADVERTISEMENT ----------------------------------------------------------------- You've heard about identity management, but do you know about the opportunities and business models that will emerge as a result? Download a free executive summary of Esther Dyson's coverage of identity management in Release 1.0. Learn more about the expanding market for these services and applications. http://release1.edventure.com/executivesummary.cfm?MCode=Unspun ----------------------------------------------------------------- SYNERGY AND BETRAYAL AT VIVENDI ----------------------------------------------------------------- Synergy always was a fuzzy concept. Now Vivendi Universal's top man has slammed the lid on it. The French company announced today that it's ready to peddle $9.8 billion in assets to rustle up some cash. First up on the block? Synergy-less U.S. book publisher Houghton Mifflin. It's unclear whether new chairman Jean-Rene Fourtou has genuine turnaround muscle, or whether he and Vivendi's board are simply following the winds of post-merger fashion. But when you owe $18.7 billion, you get real practical, real fast. The Guardian reported that Vivendi's share price sank 5% on Tuesday when investors got the willies about the company's impending announcement on its financial health. But the company had positive news to report: It's making money. Revenue in the first half was up 13%, higher than analysts' estimates of a 7.7% boost. Details are scant on the breadth of Fourtou's restructuring efforts, with more information expected at the next board meeting on September 25, according to reporters. Houghton Mifflin, acquired a year ago for $1.7 billion, and a vague explanation that included the "Curious George" character, were the only properties named for sale so far. The Guardian speculated that Vivendi will also sell its U.S. video games business and possibly its stake in the French mobile phone company SFR, a debatable sale because of the cash it generates, according to the newspaper. Meanwhile, Fourtou's predecessor, Jean-Marie Messier, continues to advocate empire-building. The New York Post said its sources say Messier hopes his former employer will feel generous enough to let him continue to reside in his $17 million Manhattan abode. And Bloomberg reported earlier this week that an unrepentant Messier is penning a memoir as he vacations in the Mediterranean. The working title? "How I Was Betrayed." - Deborah Asbrand Vivendi to Sell Publisher Houghton Mifflin (Reuters) http://www.washingtonpost.com/wp-dyn/articles/A15954-2002Aug14.html Vivendi investors expect the worst http://www.guardian.co.uk/business/story/0,3604,774190,00.html Vivendi to Sell $9.8 Billion In Assets, Including Houghton http://online.wsj.com/article/0,,SB102931297119161715,00.html (Paid subscription required.) Ousted Messier Aims To Score $17m Vivendi Pad http://www.nypost.com/business/54701.htm Ex-Chief of Vivendi Plans Tell-All Book (Bloomberg) http://www.nytimes.com/2002/08/12/business/media/12VIVE.html ----------------------------------------------------------------- OTHER STORIES ----------------------------------------------------------------- A Top AOL Manager Has Left Company http://www.nytimes.com/2002/08/14/technology/14AOL.html Fed Holds Steady on Interest Rates http://www.washingtonpost.com/wp-dyn/articles/A14636-2002Aug13.html Amtrak halts all high-speed service after finding cracks http://www.sunspot.net/bal-te.train14aug14.story AOL lets resigning exec keep stock options http://www.usatoday.com/money/industries/technology/2002-08-13-aol-pittman_x.htm Lucent licensing deal with Winstar focus of probe (AP) http://www.bayarea.com/mld/mercurynews/business/3861117.htm Study Says Net Could Benefit Music Firms http://www.latimes.com/business/la-fi-music14aug14.story Eisner Crimping His Own Style http://www.latimes.com/business/la-fi-disney14aug14.story Severance claims by Enron former execs anger ex-workers http://www.chron.com/cs/CDA/story.hts/business/1533657 Princeton removes dean after Yale Web site flap (AP) http://www.siliconvalley.com/mld/siliconvalley/3857890.htm Frisbee golf creator dies, may land on someone's roof (SF Chronicle) http://seattlepi.nwsource.com/national/82560_frisbee14.shtml Will Kinsley's Slate Get Wiped? http://www.ojr.org/ojr/kramer/1029281360.php Hollywood, Russian Bicker Over Bass http://www.cnn.com/2002/SHOWBIZ/News/08/13/bassspace.hollywood.ap/ ----------------------------------------------------------------- Do you want to reach the Net's savviest audience? Advertise in Media Unspun. Contact Erik Vanderkolk for details at erikvanderkolk@yahoo.com today. ----------------------------------------------------------------- STAFF ----------------------------------------------------------------- Written by Deborah Asbrand (dasbrand@world.std.com), Keith Dawson (dawson@world.std.com), Jen Muehlbauer (jen@englishmajor.com), and Lori Patel (loripatel@hotmail.com). Copyedited by Jim Duffy (jimduffy86@yahoo.com). Marketing: Cowpoke Productions (cowpokeproductions.com). Advertising: Erik Vanderkolk (erikvanderkolk@yahoo.com). Editor and publisher: Jimmy Guterman (guterman@vineyard.com). Media Unspun is produced by The Vineyard Group Inc. Copyright 2002 Media Unspun, Inc., and The Vineyard Group, Inc. Subscribe already, willya? http://www.mediaunspun.com Redistribution by email is permitted as long as a link to http://newsletter.mediaunspun.com is included. -|________________ POWERED BY: http://www.imakenews.com To be removed from this list, use this link: http://www.imakenews.com/eletra/remove.cfm?x=mediaunspun%2Cxxxxx@yyyyyy.zzz To receive future messages in HTML format, use this link: http://www.imakenews.com/eletra/change.cfm?x=mediaunspun%2Cxxxxx@yyyyyy.zzz%2Chtm To change your subscriber information, use this link: http://www.imakenews.com/eletra/update.cfm?x=mediaunspun%2Cxxxxx@yyyyyy.zzz ------------=_1029331990-31627-4 Content-Type: text/html; charset="iso-8859-1" Content-Disposition: inline Content-Transfer-Encoding: 7bit M E D I A U N S P U N
M E D I A U N S P U N
 What the Press is Reporting and Why (www.mediaunspun.com)
Wednesday, August 14, 2002

Top Spins...
SEC Exposes Big Blue's Pink Slips
Synergy and Betrayal at Vivendi
Other Stories


Media Unspun serves business news and analysis, authoritatively and irreverently, every business day. An annual subscription costs $50, less than a dollar a week. If your four-week free trial is coming to an end soon, please visit http://www.mediaunspun.com/subscribe.html and sign up via credit card or check.
Sponsor

Ken Fisher offers his Quarterly Report for high net worth investors FREE of cost & without obligation. Access the same investment research he uses to guide his clients at:
http://pcg.fisherinvestments.com/newrespond/letter.asp?site=UNSP&KC=1229EFCAD0000


SEC Exposes Big Blue's Pink Slips

Does the Securities and Exchange Commission have a press pass yet? It seems to be bringing us all our news lately. On the day of the deadline for companies to certify their financial statements with the SEC, the business press squirmed and waited for the next Enron or WorldCom. (We might eat these words tomorrow, but we doubt it.) In an unrelated confession, IBM gave the commission its latest layoff numbers.

IBM talked about pink slips during its second-quarter earnings report, but with a vagueness worthy of your daily horoscope. ("Capricorn: Career changes may be on their way...") Only after "months of surreptitious layoff notices" did the company admit that it's cutting more than 15,600 jobs, said the AP. That's about 5% of its workforce, and a lot more than pundits expected. An IBM spokesperson told the Wall Street Journal the higher number was due to "rebalancing" and more employees than expected taking voluntary layoffs.

Sorry, we're still back on "rebalancing." Did IBM "rightsize" last quarter, too?

IBM's news was still trickling out Wednesday morning, but some details were available. About 1,400 workers got cut from IBM's microelectronics unit, and most of the rest were from IT services and consulting. (That ought to make IBM's new employees from PricewaterhouseCoopers feel all warm and fuzzy inside.) Look for news updates from cities that will see the cuts, such as Austin and Raleigh.

OK, none of this is good. Two years into the tech slump, we're still tired of seeing people get sacked. But was it really so bad that IBM only revealed it because of new accounting regulations? Nah, Big Blue was always known for "stealth layoffs," as CNN put it, but current corporate scrutiny forced it to 'fess up for once. Until now, IBM would acknowledge the latest layoffs if reporters called and asked, but wouldn't give specifics. Yeesh. - Jen Muehlbauer

IBM Cut 5% of Staff in Period, Double the Expected Number
http://online.wsj.com/article/0,,SB1029282408667791835,00.html
(Paid subscription required.)

IBM to Cut Over 15,000 Employees (AP)
http://tinyurl.com/10kz

IBM confirms 15,600 job cuts (Reuters)
http://www.msnbc.com/news/793777.asp

IBM cutting 15,000 jobs
http://news.com.com/2100-1001-949677.html

IBM job cuts exceed 15,600
http://money.cnn.com/2002/08/13/technology/ibm/index.htm

IBM puts job cuts at 15,600, with fewer than 50 in this state
http://seattlepi.nwsource.com/business/82508_ibm14.shtml


Sponsor
You've heard about identity management, but do you know about the opportunities and business models that will emerge as a result? Download a free executive summary of Esther Dyson's coverage of identity management in Release 1.0. Learn more about the expanding market for these services and applications.
Synergy and Betrayal at Vivendi

Synergy always was a fuzzy concept. Now Vivendi Universal's top man has slammed the lid on it. The French company announced today that it's ready to peddle $9.8 billion in assets to rustle up some cash. First up on the block? Synergy-less U.S. book publisher Houghton Mifflin.

It's unclear whether new chairman Jean-Rene Fourtou has genuine turnaround muscle, or whether he and Vivendi's board are simply following the winds of post-merger fashion. But when you owe $18.7 billion, you get real practical, real fast. The Guardian reported that Vivendi's share price sank 5% on Tuesday when investors got the willies about the company's impending announcement on its financial health. But the company had positive news to report: It's making money. Revenue in the first half was up 13%, higher than analysts' estimates of a 7.7% boost.

Details are scant on the breadth of Fourtou's restructuring efforts, with more information expected at the next board meeting on September 25, according to reporters. Houghton Mifflin, acquired a year ago for $1.7 billion, and a vague explanation that included the "Curious George" character, were the only properties named for sale so far. The Guardian speculated that Vivendi will also sell its U.S. video games business and possibly its stake in the French mobile phone company SFR, a debatable sale because of the cash it generates, according to the newspaper.

Meanwhile, Fourtou's predecessor, Jean-Marie Messier, continues to advocate empire-building. The New York Post said its sources say Messier hopes his former employer will feel generous enough to let him continue to reside in his $17 million Manhattan abode. And Bloomberg reported earlier this week that an unrepentant Messier is penning a memoir as he vacations in the Mediterranean. The working title? "How I Was Betrayed." - Deborah Asbrand

Vivendi to Sell Publisher Houghton Mifflin (Reuters)
http://www.washingtonpost.com/wp-dyn/articles/A15954-2002Aug14.html

Vivendi investors expect the worst
http://www.guardian.co.uk/business/story/0,3604,774190,00.html

Vivendi to Sell $9.8 Billion In Assets, Including Houghton
http://online.wsj.com/article/0,,SB102931297119161715,00.html
(Paid subscription required.)

Ousted Messier Aims To Score $17m Vivendi Pad
http://www.nypost.com/business/54701.htm

Ex-Chief of Vivendi Plans Tell-All Book (Bloomberg)
http://www.nytimes.com/2002/08/12/business/media/12VIVE.html


Other Stories

A Top AOL Manager Has Left Company
http://www.nytimes.com/2002/08/14/technology/14AOL.html

Fed Holds Steady on Interest Rates
http://www.washingtonpost.com/wp-dyn/articles/A14636-2002Aug13.html

Amtrak halts all high-speed service after finding cracks
http://www.sunspot.net/bal-te.train14aug14.story

AOL lets resigning exec keep stock options
http://www.usatoday.com/money/industries/technology/2002-08-13-aol-pittman_x.htm

Lucent licensing deal with Winstar focus of probe (AP)
http://www.bayarea.com/mld/mercurynews/business/3861117.htm

Study Says Net Could Benefit Music Firms
http://www.latimes.com/business/la-fi-music14aug14.story

Eisner Crimping His Own Style
http://www.latimes.com/business/la-fi-disney14aug14.story

Severance claims by Enron former execs anger ex-workers
http://www.chron.com/cs/CDA/story.hts/business/1533657

Princeton removes dean after Yale Web site flap (AP)
http://www.siliconvalley.com/mld/siliconvalley/3857890.htm

Frisbee golf creator dies, may land on someone's roof (SF Chronicle)
http://seattlepi.nwsource.com/national/82560_frisbee14.shtml

Will Kinsley's Slate Get Wiped?
http://www.ojr.org/ojr/kramer/1029281360.php

Hollywood, Russian Bicker Over Bass
http://www.cnn.com/2002/SHOWBIZ/News/08/13/bassspace.hollywood.ap/


Sponsor
Do you want to reach the Net's savviest audience?
Advertise in Media Unspun.
Contact Erik Vanderkolk for details at erikvanderkolk@yahoo.com today.
Staff
Written by Deborah Asbrand (dasbrand@world.std.com), Keith Dawson (dawson@world.std.com), Jen Muehlbauer (jen@englishmajor.com), and Lori Patel (loripatel@hotmail.com).

Copyedited by Jim Duffy (jimduffy86@yahoo.com).

Marketing: Cowpoke Productions (cowpokeproductions.com).

Advertising: Erik Vanderkolk (erikvanderkolk@yahoo.com).

Editor and publisher: Jimmy Guterman (guterman@vineyard.com).

Media Unspun is produced by The Vineyard Group Inc.
Copyright 2002 Media Unspun, Inc., and The Vineyard Group, Inc.
Subscribe already, willya? http://www.mediaunspun.com

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