After AMC Acquisition, Chinese Mogul Sees $10 Billion in New U.S. Investment

September 4, 2012, 3:33 pm

By MICHAEL CIEPLY

LOS ANGELES - For China's Dalian Wanda Group, the $2.6 billion acquisition of AMC Entertainment - now complete - is just the beginning.

That was the message from Wang Jianlin, the chairman and president of Wanda, who spoke at a morning news conference intended both to announce and celebrate the closing of the AMC deal.

Speaking through an interpreter, Mr. Wang said Wanda had earmarked at least $10 billion for investment in the United States in coming years. He did not give much in the way of detail, but made clear that hotels, retail stores and possibly more theaters were on Wanda's list of prospects, as well as a possible foray into film production.

On the last score, Mr. Wang - who was joi ned at the press conference by AMC's chief executive, Gerardo I. Lopez, and the Imax chief executive, Richard Gelfond - said he expected to hold conversations with a number of major Hollywood companies during his current visit about a possible film production fund or joint ventures involving Wanda.

The news conference was introduced with a video that pointed to Wanda's vast and growing importance as an owner and operator of hotels, resorts and cultural businesses in China. These last include 51 karaoke centers, offering what the video's narrator described as “refined and healthy entertainment.”

Asked why he was attracted to the American theater business, when China's has a much higher growth rate, Mr. Wang, still speaking through the translator, cited what he said was an old Chinese saying: “We can't put all the eggs in one basket.”

My Thoughts on E-Book Pricing? Let Me Draw You a Picture

September 4, 2012, 3:15 pm

By JULIE BOSMAN

The Department of Justice's proposed settlement with three book publishers over accusations of e-book price fixing has prompted hundreds of court filings, responses and public comments in advance of the settlement's final approval before a federal judge.

Until now, none has arrived in graphic novel format.

On Tuesday afternoon, Bob Kohn, the chairman and chief executive of RoyaltyShare and one of the more outspoken critics of the settlement, filed a friend-of-the-court brief that laid out his case in five pages of black-and-white comic strips. In an e-mail, Mr. Kohn said he had been spurred to do so when Judge Denise L. Cote of Federal District Court in Manhattan, who is presiding over the case, req uired him to keep his brief to five pages.

Finding it difficult to whittle his 93-page argument into five pages, Mr. Kohn, an authority on licensing, rights and antitrust matters, tried a different approach.

“I thought of the idea of using pictures which, as we know, paint a thousand words,” Mr. Kohn said in an e-mail.

He called his daughter, Katie, who is studying for her Ph.D in film studies at Harvard, who connected him with a fellow student, Julia Alekseyeva. After conferring with Ms. Alekseyeva, Mr. Kohn wrote the script and she drew the illustrations. (Judge Cote and Mr. Kohn play a role in the fictional narrative.)

Mr. Kohn filed the brief on Tuesday afternoon.

Digital Notes: Justin Bieber\'s Manager Signs Korean Web Star Psy

September 4, 2012, 2:17 pm

By BEN SISARIO

Can Scooter Braun turn another online phenomenon into a bona fide star?

Mr. Braun has become the music industry's biggest and most successful proponent of social media. He became Justin Bieber's manager after finding him on YouTube, and recently helped make Carly Rae Jepsen a household name through viral videos of her hit “Call Me Maybe.” (You can read about some of his exploits in a recent New Yorker profile.)

On Monday, Mr. Braun, 31, announced - on YouTube, appropriately enough - that he had made a deal with Psy, a South Korean rapper whose comic video “Gangnam Style” has become an online sensation this summer. Sitting with Psy, and apparently sealing the deal with a bottle of stiff Korean liquor, Mr. Braun said they had “come to an agreement to make some history together.”

He did not elaborate, but according to reports in Billboard and The Korea Times, Psy has signed a contract with Mr. Braun's record company, Schoolboy, which is associated with Universal's Interscope label.

So far, “Gangnam Style” - a send-up of the good life in Seoul, with Psy and a bevy of backup girls doing a horse-trot dance - has been watched 100 million times on YouTube, and held at No. 1 on Billboard's K-Pop chart for five weeks. But only about 57,000 copies of the song have been downloaded in the United States, according to Nielsen SoundScan.

New Nokia Music Service: Nokia is making another play for mobile music consumers.

The company's Comes With Music service, introduced to fanfare in 2008, bundled unlimited song downloads into the cost of a Nokia phone, but the plan proved unpopular and was withdrawn in most markets.

On Tuesday, the company i ntroduced Nokia Music, which offers free music streams from “over 150 exclusive playlists” for users of two of the company's models, the Lumia 900 and 710, in the United States. The service has no advertising and does not require its users to register or subscribe, Nokia said in an announcement.

And what about those playlists? Nokia promises they will feature “a wide spectrum of musical genres from underground Detroit house tracks to New York Philharmonic favorites,” and will be programmed by “an expert team of U.S.-based musicologists” as well as stars like Lady Gaga, Rihanna and Lana Del Rey.

Ben Sisario writes about the music industry. Follow @sisario on Twitter.

Filling Regis\'s Shoes ... Michael Strahan

September 4, 2012, 1:24 pm

By THE EDITORS

Kelly Ripa and Michael Strahan  hosted the first “Live With Kelly and Michael” on Tuesday. After the departure of Regis Philbin, a number of co-hosts joined Ms. Ripa, with word leaking out in August that Mr. Strahan would be chosen.

Dick Clark Productions Sold to Guggenheim Partners

Dick Clark Productions, the company that produces the Golden Globe Awards show and the New Year's Eve broadcast hosted for nearly 40 years by its late founder, was sold to Guggenheim Partners and a group of investors on Tuesday.

Guggenheim, a private Wall Street firm, teamed up with a pair of multimedia investors to buy the production company for an undisclosed sum. A person briefed on the matter said the deal was worth about $370 million, more than double it sale price in 2007.

That year, RedZone Capital Management bought Dick Clark Productions from another investment group for $175 million. RedZone is a private equity firm run by the Washington Redskins owner, Daniel M. Snyder.

Mr. Clark, the legendary broadcaster who died in April at the age of 82, had no ownership role in the company.

“We're thrilled about the transaction with Guggenheim Partners,” Mark Shapiro, chief executive of Dick Clark Productions, said in a statement, adding that “ Dick Clark and his legacy will surely be in good hands.”

The deal also involved Mandalay Entertainment and Mosaic Media Investment Partners, a collection of investment partners that has ties to Dick Clark Productions. Mosaic is led by Allen Shapiro, former chief executive of Dick Clark Productions and current chairman of TV Guide Network and TVGuide.com. The chief executive of Mandalay, Peter Guber, was the largest shareholder in Dick Clark Productions before its 2007 sale to RedZone Capital Management.

The latest deal was in the works for months. Dick Clark Productions, a 55-year-old company that also produces several other TV shows including “So You Think You Can Dance” and the American Music Awards, put itself on the market in June.

In response to an expression of interest from a Chinese media company, it hired the Raine Group, a boutique investment bank, to run the sales process. At the time, likely bidders also included several private equity fir ms. Ryan Seacrest, who co-hosted recent “New Year's Rockin' Eve” shows with Mr. Clark, was among the private-equity backed bidders.

But after weeks of negotiation, Guggenheim Partners emerged as the likely winner. It was the second major deal for the firm this year, after it become majority owner of the Los Angeles Dodgers in March.

“We look forward to continuing D.C.P.'s production of branded entertainment that has become a part of the American lexicon,” Todd Boehly, president of Guggenheim Partners, said in a statement.

The deal comes after a significant court victory, in which a federal judge ruled the company could keep the Golden Globes show airing on NBC through 2018. The company had clashed with the sponsor of the awards, the Hollywood Foreign Press Association, which claimed that Dick Clark Productions should have consulted with it before reaching the NBC deal.

In the statement, Mr. Boehly promised to “work closely with the Hollywood Foreign Press Association, the Academy of Country Music and all of the network partners and sponsors to ensure” the company's “long-term growth and success.”

The deal, which the new owners expect to complete “expeditiously,” must still receive regulatory approval.

Guggenheim Securities was the sole financial adviser to the investors, while legal counsel was provided by Weil, Gotshal & Manges.

New Editor at Cosmopolitan: Joanna Coles Replaces Kate White

September 4, 2012, 11:56 am

By DAVID CARR and CHRISTINE HAUGHNEY

In January, Kate White the editor of Cosmopolitan magazine, went to David Carey, the president of Hearst Magazines, and told him she was thinking about retiring after 14 years on the job. Given the importance of the franchise to the company, Mr. Carey immediately set about looking for a successor both inside and outside of Hearst.

He found the answer just two floors away: Joanna Coles, the editor of Hearst's Marie Claire Magazine.

In six years guiding Marie Claire, the British-born Ms. Coles has improved the visibility of the magazine â€" once viewed as an also-ran - by taking it upscale and into some rarefied fashion realms. Her profile has risen along with the magazine's, with a growing reputation at fashion shows and a regular position as one of the judges on “Project Runway All Stars.”

The appointment, announced Tuesday, installs new leadership at an iconic publication that has evolved from a general interest and literary magazine to an aspirational companion for young women, covering fashion, relationships and, more recently, careers â€" all with a heavy dose of sexual candor. It was largely transformed in the 1960s when Helen Gurley Brown, who died last month, remade it by latching on to feminism and the sexual revolution.

Since then, it has remained a stalwart of the Hearst brand, managing to gain in circulation in recent years at a time of extreme financial challenges for the magazine business.

Given the youthful audience of Cosmopolitan and the ubiquity of fashion and relationship guidance on the Web, making sure that Cosmo excels in digital realms is a high priority at Hearst.

Ms. Coles said sh e welcomes that challenge. Sitting in the 42nd floor offices on Tuesday morning, dressed in purple geometric Prada pants, a black preen English top and black Givenchy heels, said she can't wait to get her hands on Cosmo.

“I'm incredibly excited about the global footprint,” said Ms. Coles. “It's big because it talks about things that are really important to women. It's such an iconic logo.”

There are probably more prestigious magazine franchises to edit, but few have the traction and heft of Cosmo, which advocates a “fun, fearless” approach for young women as if it were the secret to all of life's important questions. Ms. White has worked to modernize Cosmo to fit the times and account for the progress women have made in the business world.

“Cosmo readers are very eager for anything about careers, in part because it is so competitive out there,” said Ms. White, an author of eight mystery and thriller novels who is finishing up her fourth non- fiction book, “I Shouldn't Be Telling You This,” an advice book. “Young women have a lot more choices now than they used to and they are anxious about making the right ones.”

Ms. White, 61, will remain at Hearst until the end of the year working on some projects with Mr. Carey, but said that she has been itching to spend more time on her books â€" “I'm looking forward to working just 55 hours a week” she said â€" and also create a bigger presence on social media in support of her literary work.

The baton Ms. White is handing off is in pretty good shape. Even in a struggling magazine industry where most titles are losing subscribers in droves, Cosmo's circulation has risen steadily over the past four years and peaked in the first half of 2012 with 3,017,834 subscribers, according the Audit Bureau of Circulation. Glamour, a competitor owned by Conde Nast, has a circulation of 2.374 million.

Cosmo appeal transcends Am erican borders: there are 64 international editions, including Slovenia, Ecuador, and China. The magazine also has kept up with its subscribers as they have moved over to digital media. While digital subscriptions often make up one to two percent of total magazine readership, Cosmo now has 137,000 paid digital subscribers. It said it attracts 8.5 million unique visitors to its Web site a month. Its 349,156 followers on Twitter and 1.8 million “likes” on Facebook get a steady flow of shopping discounts mixed in with advice like how the right music can make you eat less and 10 tips on surmounting a break up.

Cosmo is built on mixing the practical with the fatuous. An article by the comedian Andy Samberg in the September issue includes “7 Signs He Isn't Relationship-Ready,” which advises readers to stay away from men who live with their mothers, are married or are strip clubs â€" unless the reader is a stripper.

Ms. Coles is a former reporter, who are not us ually prized for their fashion sense, and has worked for both the Guardian and Times of London. She first worked at New York magazine when she came to the United States and then became editor of More, a magazine aimed at women over 40, and now finds herself editing a magazine for women who think middle age is some ancient, distant planet they may travel to one day.

Given the fact that she is 50 years old with two children and a mid-Atlantic accent, Ms. Coles was asked whether she was ready to edit a magazine that is consumed by young, and single, middle Americans.

“I have seen more parts of this country than many people as a reporter for the Guardian here,” she said, and adding: “I am not doing this on my own. I will be working with many talented young editors and writers.

Ms. Coles said she wants the often-puzzling journey through one's 20s and 30s to be as fun for readers as it was for her. She said she bought her first apartment at 23 as she began working her way up in the male dominated world of newspapers.

She pointed to the frank talk about sex and careers on shows like HBO's “Girls” and “Two Broke Girls” as an indication that the rest of the culture shares the concerns of Cosmo readers. “The 20s and 30s are incredibly exciting and full of potential, but also a little overwhelming,” said Ms. Coles. “The things that keep women awake now are the same things that kept women awake 30 years ago.”

On Wednesday, Ms. Cole will travel to the Democratic convention in Charlotte to participate on a panel for EMILY'S List with the actress Ashley Judd and others, continuing in a very public role that has served her well at Marie Claire. Last December, she and the magazine hosted a private event for the premier of “In the Land of Blood and Honey” that included a Q & A with Angelina Jolie, who directed the film, and the cast.

Ms. Jolie was on the cover of Marie Claire in January, a big selle r, and Ms. Coles convinced Mr. Carey and her peers in the company to stream a live chat with Ms. Jolie across multiple Hearst sites, including Marie Claire, Harper's Bazaar, Esquire, ELLE, Oprah and Redbook. It was a trifecta of live event, magazine and digital efforts that made a splash and caught Mr. Carey's attention.

Ms. Coles said that when she arrived at Marie Claire she was surprised at how negative many women's magazines were. She said it underscored to her how important it is that Cosmopolitan makes women feel better about themselves.

“For me what's important is to be on the side of women when it comes to sex,” she said, and then added, “It's very important to have a sense of humor when you edit a magazine - at Cosmo, it is much raunchier. I have a lot of learning to do. There are 365 sex positions of the day here and one of them is called the linguine.”

Striving to Lead More of an Heirloom Life

September 4, 2012, 1:15 am

By CARL RICHARDS

Carl Richards is a certified financial planner in Park City, Utah, and is the director of investor education at BAM Advisor Services. His book, “The Behavior Gap,” was published this year. His sketches are archived on the Bucks blog.

Inventor Saul Griffith gave his new baby son a Rolex and a Montblanc pen. Odd gifts, right? But for Mr. Griffith, it was about buying the only watch and pen his son would ever need.

Over the past few years, Griffith has argued that we need to design more things to last, what he calls heirloom design in an interview with Good:

[it's] something that will not only last through your lifetime and into the next generation, but that you also desire to k eep that long because it's beautiful, functional, and timeless.

It reminded me of the case I made earlier this summer that we might actually save money by spending more on a high-quality item when we plan to keep it. I know this isn't a new or revolutionary concept, but when I read the comments, I was surprised to learn how many cool sayings there are from around the world that capture this advice.

“We're too poor to buy cheap things.”

“Owning just a bit less, and buying good quality stuff that lasts longer ends up making a huge difference over a lifetime.”

“I don't buy much, but I make sure it is something I really want.”

“Buy cheap, buy twice!”

“There is an Italian peasant saying that sums it up nicely: We're too poor to pay less. (Siamo troppo poveri per pagare meno).”

“Or, as the Scottish say: buy less, pay more.”

“Buy the best and buy it once†

These comments and the idea of heirloom design got me thinking about passing things on, of living an heirloom life.

What if instead of buying things to replace, we bought things that last? What if we bought with intention, choosing items with timeless design? And in line with the idea of spending a little more, what if we embrace buying fewer items of a higher quality?

Obviously not every buying decision falls into this category. But asking two questions can help separate what makes sense and what doesn't:

1. Do I hope to pass this on to my kids or grandkids?
2. If I break down my purchase as cost per use, does it benefit me over the long term to spend a little more for something to last longer?

Much of what we buy won't be something we pass on to our kids. But that doesn't mean we shouldn't buy to last.

For instance, the idea of heirloom shoes sounds a bit silly. But then I think about the shoes I wear the most during summer. My favorite pair is my Chaco Flips. In fact, if they ever wore out, I wouldn't hesitate to get a new pair. However, they do cost $60 a pair.

I know that price seems like a lot for flip flops. However, I've had my current pair for five years. Realistically, given how much I wear these shoes, I could easily go through 10 pairs of $12 drugstore flip flops in the same time. So if I look at it from a price per use basis, spending more money for the higher quality shoes has saved me money, time and aggravation.

Depending on where you're at in life, you may feel like an heirloom life isn't an option. And I know we're bombarded with the message that everything is replaceable. Between these two competing forces, it can be tempting to buy cheap and cross our fingers. But it's hard to ignore that there's something special about receiving a treasured family item from your parents or grandparents.

In many ways, spending more is only part of an heirloom l ife. The other part requires spending wisely. Your goal with an heirloom life isn't to buy for the sake of buying, but to buy because you want something to last.

 

Do You Have a Hurricane Deductible?

September 4, 2012, 10:30 am

By ANN CARRNS

Many homeowners in Louisiana who were affected by Hurricane Isaac are probably getting familiar with an aspect of their insurance policies known as a hurricane deductible.

Deductibles are the portion of damage the homeowner pays out of pocket before insurance kicks in. For most “perils,” as the industry calls them, the standard deductible is a flat amount - say, $500 or $1,000. But coastal states from Maine to Texas have special rules for hurricanes, put in place to limit insurance losses after catastrophic storms.

Details vary from state to state, and from insurer to insurer. But generally, when a hurricane (or, in some cases, a named storm) is declared by the National Weather Service, special h urricane deductibles apply for resulting damage. Such deductibles are generally a percentage of the home's insured value, and usually run from 1 to 5 percent. So, for instance, if a home is valued at $300,000, the deductible could be as high as $15,000.

In some areas, homeowners can buy extra coverage - that is, lower their deductible - in exchange for paying higher premiums; some high-risk areas don't offer this option, however, according to the Insurance Information Institute, an industry group.

The institute lists details of hurricane deductibles by state on its Web site.

Hurricane coverage in standard insurance policies generally covers wind damage - both to the home, and to personal belongings - #8212;since many items become projectiles during hurricanes. “If its wind, it's covered - but if it meets hurricane criteria, it's a different deductible,” says Jeanne Salvatore, a spokeswoman for the institute.

Flood damage, however, is covered only if you purchase special flood insurance - generally, from the National Flood Insurance Program, or from some private companies.

Blythe Lamonica, spokeswoman for the Gulf State Insurance Information Center in Baton Rouge, La., said hurricane deductibles apply for damage from Hurricane Isaac in Louisiana. The nonprofit organization, which provides consumers information about insurance in Louisiana, has urged homeowners to review their policies before hurricane season to make sure they know their coverage, she said. Generally, insurers in the state must make the section on hurricane deductibles prominent in written policies, she said, such as by using large type or bold print.

While such deductibles apply, they can be enforced only once a given year. So if a second hurricane were to hit, standard deductibles would apply, she said.

Have you had to pay for a hurricane deductible? How much did it cost you?

The Breakfast Meeting: Boom-Bust Summer of Movies, and Hugo Awards Cut Short

September 4, 2012, 10:21 am

By NOAM COHEN

As summer vacations were ending, the movie industry took stock of the season just past and found reasons for concern, Brooks Barnes writes. Ticket sales at North American cinemas in the summer declined an estimated 3 percent, to $4.28 billion, the first decline in seven years; total attendance was the lowest since at least 1993, when independent records first were kept. There were specific reasons that could, perhaps, explain the decline - the Olympics; the shootings in Aurora, Colo. - but still the results were sobering.

• There were signs that social media was creating extreme swings in fortune â€" with some pictures like “The Avengers” (about $620 million in North America; over $1.5 billion world wide) having tremendous results, and others, like “The Oogieloves in the Big Balloon Adventure” ($448,000 from 2,160 screens), having catastrophic results. It is harder, Mr. Barnes writes, “for studio marketers to put lipstick on pigs.”

The Advertising Club of New York will begin an initiative to promote diversity within advertising and marketing - fields that are notable for their underrepresentation of blacks, Latinos and Asians, Tanzina Vega writes. For example, an N.A.A.C.P. report using 2008 data found that blacks represented 5.3 percent of managers and professionals at advertising agencies and were paid 80 cents for each dollar earned by white employees. The Advertising Club program, I'mpart, will spend $700,000 to support training programs in high school, college and afterward.

A live video stream of the Hugo Awards, the top prize in science fiction, was abruptly cut off while thousands were watching because an automated “bot” detected co pyrighted material and stopped the stream, the Web site i09 reported. The author Neil Gaiman was in the middle of his acceptance speech (he won for a “Doctor Who” script) at the event in Chicago when uStream stopped streaming. What triggered the action was the streaming of clips from nominated TV scripts shortly beforehand, including Mr. Gaiman's; uStream later apologized and said it would stop using a third-party “automated infringement system” that it apparently couldn't override.

The Associated Press reported that one of the founders of the popular file-sharing Web site Pirate Bay was arrested in Cambodia. The local authorities said they were acting on a request from Sweden, where the co-founder, Gottfrid Svartholm Warg, faces a one-year prison term for violating copyright laws. The Pirate Bay Web site has led to a corresponding social movement, with Pirate political parties forming across the globe, including Sweden, on a platform of changing laws concernin g the Internet and copyright. Though there is no extradition treaty between Cambodia and Sweden, Cambodian officials said they would act as quickly as possible.

Tuesday Reading: Study Questions Advantages of Organic Food

September 4, 2012, 8:34 am

By ANN CARRNS

A variety of consumer-focused articles appears daily in The New York Times and on our blogs. Each weekday morning, we gather them together here so you can quickly scan the news that could hit you in your wallet.