Have You Heard? There’s a New Economic Freak-out Happening!FINANCE
• William A. Ackman of Pershing Hedge Funds got everyone freaking out about bond insurers by issuing a report yesterday afternoon predicting that MBIA and the Ambac Financial Group might just lose $24 billion on mortgage investments. “Here comes Ackman at the 11th hour upsetting the apple cart,” Douglas M. Peta, chief market strategist at J.& W. Seligman & Company, told the Times. “I don’t think anybody has really thought it all through, but we all understand the implications of real trouble in the bond insurers could be far reaching.” [NYT] Related! MBIA announced a $3.5 billion write-down this morning. [CNN]
• Wharton is still the number-one place in the universe to pick up an MBA.
[FT]
• Following in the steps of other CEOs with giant mortgage-related losses, Merrill won’t give its top brass any bonuses. But they will give them stock options “to promote the continuity of the management team as they continue to navigate through challenging market conditions in 2008.” That’s one way to hang on to staff. [Reuters]
company town
‘Blender’ Gives Britney Spears a New BodyMEDIA
• Britney Spears looks great on the new cover of Blender — too bad it’s not her body. [Radar]
• Stephen Chao, the former News Corp. exec who lost his job after hiring a male stripper for a company party and almost drowning Rupert Murdoch’s dog, announced a new Website for how-to videos. First video: how to get fired in two easy steps. [NYT]
• Now that Judith Regan’s settled her suit with Murdoch, will she give her winnings — likely north of $6.5 million — to charity like she once promised? [Mixed Media/Portfolio]
company town
Rupert Plucks ‘Journal’ From Its Home and Carries It Back to His LairMEDIA
• Like a bird of prey with a juicy morsel in its claws, Rupert Murdoch is moving the Journal back to his midtown News Corp. nest to feast on its carcass. New plans include more entertainment coverage and a sports page! [NYT]
• A mouse was spotted at the Times building! And as all apartment dwellers know, for every mouse you see, there are seven you don’t see. [Gawker]
• The Writers Guild has struck a deal that allows them to write for the Grammys. Good thing, because improvised speaking never really sounds as good as improvised music. [USAT, Vulture]
company town
Being Filthy Rich Means Never Having to Say You’re SorryFINANCE
• Fortune searches Davos for financiers to express contrition over the current credit crisis but comes up empty. The closest anyone has come, the magazine notes, is the chairman and chief executive of Moody’s Corp, who said, “We and others have to retool our processes In hindsight, it’s clear to us that there were fundamental failures in key assumptions supporting our analytical models.” Quoth Fortune: “That’s probably a little too mealy-mouthed and much too late to console people who bought the mortgage-backed commercial paper to which Moody’s and its rival Standard & Poor’s gave a top-notch AAA rating — only to discover it was actually junk.” Snap! [Fortune]
• Just how big a fraud did Jérôme Kerviel, the rogue French trader, pull off? Before the bank caught him, he had taken out positions worth 50 billion euros. But some argue that he was responsible for only 1.5 billion euros in losses, and the bank’s board lost the other 3.4 billion euros unwinding his positions way too fast. Meanwhile, top executive Jean-Pierre Mustier told the Times: “I was speaking to a competitor, this competitor called me and said, ‘You are living what is a banker’s worst nightmare.’” Imagine how dramatic that must have sounded in French. [FT, NYT]
• Bonuses now in the bank, Goldman rewarded bankers for a record-setting year with a special surprise: layoffs! [Deal Journal/WSJ]
company town
William Kristol Has the Gray Lady’s Knickers in a TwistMEDIA
• Both Times public editor Clark Hoyt and former Times conservative standby William Safire have panned Arthur “Pinch” Sulzberger’s decision to foist William Kristol on the editorial page. Among the other conservatives considered and passed over: Charles Krauthammer, Ross Douthat, Max Boot, and a bunch of other Weekly Standard stalwarts. But at least Judith Miller approves: “[I]t’s an appointment that’s a long time coming. The page needed balance.… [But] an unabashed neocon without remorse is unacceptable to Times people.… He’s not kosher in that sense.” [New Republic]
• New York Observer president Robert Sommer nailed his MSNBC interview: “We like to view our readers as some of the smartest, most insensitive — most… Some of the most brightest readers in the country and especially New York.” [NYO]
• David Blum goes through his fifth sex columnist in little more than a year, firing his latest hire at the New York Press after she stole questions from Dan Savage. Some might call that slutty! [NYO]
company town
Mon Dieu! French Fraud Costs Bank $7 BillionFINANCE
• Chase CEO Jamie Dimon has some big plans at Davos this year: “Number one on my list is world peace.” [MarketBeat/WSJ, DealBook/NYT]
• Looks like Steve Schwarzman is green only with greed — his newest moneymaking scheme hinges on building huge coal plants in pristine locales in the American West. [Fortune]
• Société Générale, the second biggest bank in France, found that one of its “plain vanilla” traders had taken “massive fraudulent directional positions…far beyond his limited authority” that would ultimately end up costing the bank $7 billion. It is, according to the Times, “an exceptional fraud.” Seriously! Quelle balls! [NYT]
company town
Hillary Clinton Is Going to Get So Busted by Anna WintourMEDIA
• Hillary Clinton pulled out of a Vogue shoot this past fall because she was afraid of looking too feminine, and editor Anna Wintour subsequently wrote an editor’s letter about how disappointed she was. Now, Hillary’s in Bazaar’s February issue, wearing a miniskirt and platform heels! (That bears repeating: A miniskirt and platform heels.)* Anna’s going to be pissed. [WWD]
• Sam Zell has ordered that the Tribune’s Internet content filters be removed. “I do not see how a member of the Fourth Estate, dedicated to protecting the First Amendment, can censor what its own employees and partners can see,” he writes. “You are now exposed to the dangers of YouTube and Facebook. Please use your best judgment.” Also, apparently if said judgment compels you to send internal communications to Romenesko, so be it. [Romenesko]
• The WGA took two big demands off the table — unionization for animated movies and reality TV — and negotiations may now finally focus on paying writers for digital content. [LAT]
company town
Thay It Ain’t So! Merrill Chief Loses Part of BonusFINANCE
• The falling market has shaved off a big chunk of Wall Street hottie John Thain’s compensation. Don’t worry, Thainie-boy, we still love you. [DealBook/NYT]
• Wondering what the hell’s happening in the markets? Watch one trader lose his life savings in a single day. (NSFW) [Crossing Wall Street]
• Ex–Goldman banker becomes underwater gravedigger. Say what? [NYT]
company town
Hillary Clinton Dismays Anna WintourMEDIA
• Anna Wintour took Hillary Clinton to task for backing out of her Vogue photo shoot because she feared looking “too feminine.” Wintour: “The notion that a contemporary woman must look mannish in order to be taken seriously as a seeker of power is frankly dismaying.” Ouch. [WWD]
• The Directors Guild showed up the writers in striking, heh, fashion: After just one week of negotiations, the directors struck a deal with the studios that includes the all-important online-video money. The writers are cautious, though, since the last time they followed the directors’ lead they got screwed on the home-video market. [WP]
• Wal-Mart, responsible for 20 percent of all “newsstand” magazine sales, announced it would dump more than 1,000 titles from its shelves. Shocking twist: The New Yorker stays, but Boar Hunter Magazine is out! [NYP]
company town
At Least Sam Zell Is Pragmatic About the Fact That Most Journalists Are Functional AlcoholicsMEDIA
• Sam Zell, the real-estate tycoon turned media mogul, took his brusque, fake-folksy style to his minions at the Tribune with a new employee manual. A few samples: “7.1. If you use or abuse alcohol or drugs and fail to perform the duties required by your job acceptably, you are likely to be terminated. … Coming to work drunk is bad judgment. 7.2. If you do not use or abuse alcohol or drugs and fail to perform the duties required by your job acceptably, you are likely to be terminated.” Also, “You may want to think twice before you enter into an intimate relationship with a co-worker. When you start, it might seem like a good idea. It’s when you stop, or the wrong people find out (and they will) that you could discover that perhaps it wasn’t.” [WP, Tribune]
• Judith Regan on Giuliani: “Is he getting uglier? Is his face looking more twisted? What happened to him?” Don’t feel too bad, Rudy. You know what they say: When someone teases you like this, it means she likes you. [Mixed Media/Portfolio]
• Facebook threatened to revoke Nick Denton’s account after the blog-lord posted pics of Steve Brill’s recent-college-grad daughter Emily. [Gawker, Daily Brief/Portfolio]
company town
Oprah Will Eat Ellen DeGeneres for BreakfastMEDIA
• CNBC’s Dylan Ratigan proposes a toast at the anniversary of his show Fast Money: “Here’s to destroying … well, ‘destroying Fox’ is what I was going to say, to be totally honest about it. And I was going to say something even more profane than that except there’s press in the room.” [Mixed Media/Portfolio]
• Oprah Winfrey won’t stand for Ellen taking her place as America’s favorite TV personality. The Queen of Talk announced plans to start her own network. And what’s it called? OWN: The Oprah Winfrey Network. Which is only appropriate for a woman worth upwards of $2.5 billion. [HuffPo, NYP]
• Will the Academy Awards suffer the same fate as the Golden Globes? WGA president Patric Verrone confirmed the guild has no plans to give the Oscars a pass if the strike hasn’t been settled, and it’s still unclear whether the Screen Actors Guild will cross picket lines to attend the awards. [B&C]
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Ellen Dethrones Oprah, Finally Has a Real Reason to DanceMEDIA
• Ellen beat Oprah as the nation’s favorite TV personality, dethroning the Queen of Talk who held the top spot for five years. [HR]
• Will Schwalbe quit Hyperion after seven years as editor-in-chief. His decision seems to have come as something of a shock, and the publisher has no immediate successor planned. Schwalbe, co-author of Send, the recent guide to e-mail etiquette, won’t divulge his own plans. [NYO]
• Christopher Hitchens quits smoking! Really, we’re excited and interested! [Radar]
company town
Adriana Lima Has Really Big … EyesFASHION
• Victoria’s Secret is featuring Adriana Lima in its Super Bowl ads because of her “spectacular eyes.” Right, her eyes. [WWD]
• Diane Von Furstenberg has launched her first line of shoes. [FWD]
• John Bartlett is joining Tim Gunn at Liz Claiborne. He’ll be designing a men’s sportswear line. [Investor’s Business Daily]
company town
Steve Schwarzman Takes the Fun Out of BuybacksFINANCE
• Steve Schwarzman found yet another way to stiff his investors, using the GSO deal as an elaborate cover to buyback shares of Blackstone without the typical benefit a buyback program gives to other shareholders. No wonder the Chinese, who have lost $1 billion on Blackstone, hate him. [DealBook/NYT]
• Bank of America bought Countrywide Financial, the huge mortgage company teetering at the edge of bankruptcy, for $4 billion in stock. Some observers worry the deal will take the bank down, but considering Countrywide was worth $30 billion before the mortgage meltdown, it may yet make B of A CEO Ken Lewis a king. [Deal Journal/WSJ]
• Merrill Lynch will likely take a $15 billion write-down next week, far in excess of the $12 billion some already bearish analysts had predicted. John Thain is looking to rescue the bank with still more foreign investment capital, but with the Senate getting anxious, that stream dry up. [NYT, NYP]
company town
Hey, HR! Lauren Conrad Needs a New Magazine ‘Job’FASHION
• Stella McCartney just had baby number three: Beckett Robert Lee Willis. [WWD]
• Mulberry’s new shoe line is set to debut on Valentine’s Day. [British Vogue]
• The Hills girls will no longer “work” at Teen Vogue. [WWD]
company town
Kent Brownridge Still Stealing Silverware From the House of WennerMEDIA
• Kent Brownridge picked a new fight with his old boss Jann Wenner, poaching ten-year Rolling Stone vet Joe Levy for the top spot at Blender. Brownridge already stole Men’s Journal editor James Kaminsky to take over Maxim. [Mixed Media/Portfolio]
• The OK! issue with the Jamie Lynn–pregnancy exclusive sold only 900,000 copies on the newsstand, well short of the roughly 1.5 million the mag had predicted. [WWD]
• Steve Cohn on the Condé shake-up following so fast on Steve Florio’s death: “It sort of reminds me of The Godfather. They go to the funeral and then they blow everything up.” [NYP]
company town
Bush to Economy: ‘Hey, Did You Get a Haircut? Something’s Different.’FINANCE
• Bush acknowledges slower economy, but he stops short of warning about recession. Still, will he go for another round of tax cuts? [NYT, NYT]
• Financial titans Warren Buffett and Maurice Greenberg came under attack in the Gen Re trial. Neither stands as a defendant, but both were accused of being intimately involved in a fraudulent transaction worth $500 million. [NYT]
• Now that Jimmy Cayne’s out of the picture, which hedge fund will step in to buy Bear Stearns? [Deal Journal/WSJ]
company town
The Return of Aleksey VaynerFINANCE
• Aleksey Vayner, everyone’s favorite bizarre self-promoting video maker, is back with a new Website and perhaps a book! Impossible may be nothing after all. [Gawker]
• Goldman Sachs set new records with their $20.2 billion bonus pool, including $67.9 million for Lloyd Blankfein, but rumor has it the bank decided to stiff their back-office employees. [NYP]
• Blankfein’s salary still pales in comparison to hedge-fund kings like John Paulson and Paolo Pellegrini, who raked in more than $1 billion each in 2007 betting against the housing market. [NYT]
company town
CNBC to Roger Ailes: ‘Nanny Nanny Boo Boo’MEDIA
• Despite Roger Ailes’s declaration that Fox Business Channel would start a “revolution” against rival business channel CNBC, this war appears to have petered out after a skirmish: Only about 6,300 people a day, on average, watch the babes of FBN, compared to the 283,000 who tune in to CNBC for that dreamy hunk Charlie Gasparino. [NYT]
• Let the stunts begin! David Letterman plans to shave off his beard on the air next Monday: “Can we get a guy in here Monday to shave me? Now, a good guy, because the last time we did this, I looked like—when he was done, I looked like I’d been in a knife fight.” No word yet on whether Conan O’Brien, who’s writers unlike Letterman’s are still on strike, will lose his whiskers. Meanwhile, Nation editor Katrina Vanden Heuvel turned down Colbert’s invite to appear on his show, showing solidarity with the strikers. [NYDN, NYO]
• The Writers Guild is facing its own little labor problem: The East Coast branch’s internal staff claims that the contract they signed back in October was later changed without their permission. Let’s see, what’s that word … something writers always love. Oh, right, irony. [NYP]
company town
Richard Arens Is Having His MomentFINANCE
• Trader Richard Arens, who runs a brokerage named ABS, made a vanity trade in order to push oil past the $100/barrel milestone. We’re sure the girls at the bar will be real impressed. [MarketBeat/WSJ]
• Citigroup will likely start laying off between 5 and 10 percent of its workforce next week, cutting as many as 32,000 jobs. Merrill Lynch plans to cut around 1,600. [CNBC]
• Former E*Trade CEO Mitch Caplan, who helped load the company with the subprime loans, made off with a $11 million golden parachute. Compare that with former H&R Block chief Mark Ernst, responsible for his own big subprime losses, who took home a paltry $2.5 million. [Deal Journal/WSJ, DealBook/NYT]
company town
The ‘Times’ Touches Upon Checkbook Journalism — With Two Fingers, Of CourseMEDIA
• “OK!, the celebrity magazine, could not possibly have purchased all the attention it enjoyed in late December after it got the scoop that Jamie Lynn Spears, the younger and until then less sensational sister of the troubled pop queen Britney Spears, was three months pregnant. Or could it?” [NYT]
• Josh Stein isn’t actually leaving Gawker; Emily Gould will write for Jezebel; Choire Sicha will continue contributing columns; and recently departed Wonkette editor Ken Layne returned after just a few months off the job. Can anyone escape the tentacles of Nick Denton? [HuffPo]
• The Writers Guild plans to picket Jay Leno, Jimmy Kimmel, and Conan O’Brien as the three late-night hosts return to the air. Letterman gets off easy since he struck a deal with the writers and may get a big boost since big stars (like Robin Williams, natch) won’t have to cross the pickets to go on his show. [NYO, NYT]
company town
Condoleezza Rice and Martin Scorsese Go Way Back, Didn’t You Know?FINANCE
• Stephen Schwarzman, Lloyd Blankfein, and David Rubenstein got down with Bush, Condi, and friends (including Martin Scorsese?!) at this year’s Kennedy Center Honors. [NYP]
• Barron Hilton decided to donate almost his entire $2.3 billion fortune to the family foundation, including the proceeds from the recent sale of Hilton Hotels and Harrah’s casinos. Does this mean we’ll have to stop calling Paris an heiress? [NYT]
• If private equity is the smart money on Wall Street, then why have Blackstone’s shareholders lost so big? The Times gives the easy answer: “What Wall Street is about is smart guys thinking about ways to make money from dumb ones.” Good work, Steve Schwarzman! [NYT]
company town
Imus Sucker Punches BrokawMEDIA
• Don Imus on Tom Brokaw: “He is not the most courageous person I’ve ever met in my life. He’s not the guy I’d want to be in a foxhole with.” You see, Brokaw didn’t defend Imus when he was down-and-out because of the whole “nappy-headed-hos” incident. Resentment, now that takes courage! [NYP]
• Shocker: CNBC is actually scared shitless of Fox Business News. They’re now asking guests to choose sides, threatening to drop them if they dare to appear on Murdoch’s new down-home network. [Silicon Alley Insider]
• Veteran literary agent Lynn Nesbit wants a new publishing madman: “Even [former Simon & Schuster CEO] Dick Synder is a lot more colorful than [newly departed Simon & Schuster CEO] Jack Romanos, who is now gone. I mean, they had passion, they cared about literature. Even Dick, who’s not an intellectual. He cared. He was a madman … . Who is a madman now in publishing? … It was just different then.” Hi, Lynn, allow us to introduce you to our favorite publishing madwoman, Judith Regan. [Media Mob/NYO]
company town
Let the Bear Blame Game BeginFINANCE
• Bear Stearns followed up yesterday’s Morgan Stanley announcement with its own $850 million loss, again the first quarterly deficit in the bank’s history. [DealBook/NYT]
• Is former Bear Stearns exec Ralph Cioffi, the guy behind the two Bear funds that imploded this summer, the main culprit in the subprime crisis? New reporting suggests his team set off the plague of dirty debt that cost Citi and other top banks billions. Oh, and Cioffi’s under investigation for pulling out a couple mil before anyone else got the chance. [Business Week]
• What a mensch: David Rubenstein, the former lawyer turned Citadel private-equity master, decided to keep his new copy of the Magna Carta on display at the National Archives. Rubenstein paid $21.3 million — chump change for a guy worth around $2.5 billion. [Law Blog/WSJ]
company town
Morgy Says, ‘I’m Too Old to Retire!’LAW
• Robert Morgenthau called a press conference in response to a “Page Six” item about him stepping down after 33 years: “I’m too old to retire.” The man is 88! [NYT]
• Big-time Mayer Brown partner Joseph Collins, who maintains offices in both New York and Chicago, has been indicted for fraud in the Refco case. [Above the Law]
• Which court is the worst “judicial hellhole” in the country? [Law Blog/WSJ]
company town
Hedi and LVMH: Together at Last!FASHION
• Hedi Slimane is back in talks with LVMH to launch his own fashion house. Everyone, commence jumping up and down. [WWD]
• IMG is behind Bravo’s new model show but won’t be giving the winner a contract. [Fashionista]
• Not even Cavalli can rev up H&M’s sales. [NYP]
company town
Cravath’s Good Ol’ Boys Miss the Good Ol’ DaysLAW
• One old lawyer reminisces about his time at Cravath in the fifties and speculates on why big law used to be — used to be? — such a man’s world: “Obviously, male bigotry played a major role. But I think something else was involved — an attempt to protect certain values that mattered greatly to the practitioners of that time. They wanted a workplace free of the messiness of male-female relations. They liked to say, ‘Yes, sir,’ and ‘No, sir,’ and be done with it. Women might bring distractions: flirtations, gossip, dating. No more male bonding.” Aw ! [American Lawyer]
• Everyone’s talking about Robert Morgenthau stepping down after 33 years as Manhattan D.A.— except Robert Morgenthau. [NYT]
• NYU Law School listserv smackdown! First e-mail: “I decided to compile a list of the easiest professors at NYU Law for those of us who: 1. Want an easy A, and 2. Don’t care about the grade and just want a B without doing a thing.” Second e-mail: “Does your mom still teach here? Because I heard that she’s REALLY easy.” Third e-mail: “If you came to NYU Law school thinking to take shortcuts to get easy As as opposed to taking classes that you would find challenging and helpful to your understanding of law practices, here’s my nugget of advice: save the money and go to a state law school.” Fourth e-mail: “We come to NYU to take made-up classes like ‘Jesus & the Constitution,’ ‘Inter-Animal Contracts,’ and ‘International Law.’ Coming to NYU for anything other than intellectual masturbation or an easy job is a waste of money.” [Above the Law]
company town
Some Lawyers Are SadLAW
• Know a troubled lawyer? If you work in the law, you probably do — some estimates put the ratio of depressed attorneys at 20 percent — and a few new Websites are trying help them out. [Law Blog/WSJ, WSJ]
• How not to get out of your marijuana arrest: When the judge lets you off easy, pull out a driver’s license covered in pot. [New York Law Journal]
• So just how lame was Cadwalader’s Wild Wild West holiday party last night? Wildly. [Above the Law]
company town
Howard Stern Is Quietly Gay-LovingMEDIA
• Howard Stern, good for the gays? A longtime lesbian listener calls Stern “one of the most pro-gay media personalities in the country.” [Gay.com]
• Murdoch finally gets his giant puffy hands on the Journal today at 10 a.m. The only question is just how much of the Bancroft family will try to show their noble intentions, however laughably inept, by registering a protest vote against the deal. [WSJ]
• A great new/old debate: Should Democrats go on Fox News? [Mixed Media/Portfolio, NYO]
company town
Rupert’s Fingers Already Closing Around the Heart of the ‘Journal’MEDIA
• Rupert Murdoch won’t officially take over the Journal until tomorrow, but he’s already dipped his tentacles deep into the paper. Rumor has it the Journal will dismiss two or three dozen people, to be replaced with Rupe’s cronies, and then go on a hiring spree. Oh, and apparently Murdoch briefly considered dropping “Wall Street” from the title. Tells you something about where the paper’s headed. [NYT]
• Sadly, Jane Pratt won’t actually be starring in a reality-TV show titled American Ugly, as we reported yesterday. C’mon Jane, don’t you love us? [Mixed Media/Portfolio]
• New York Post “Metro” editor Dan Colarusso, whom Col Allan praised as “a quintessential New Yorker,” walked out of the newsroom and quit yesterday. No word on why, but seems pretty quintessential to us. [Runnin’ Scared/VV]
company town
Pandit and Willumstad to Share the Ultimate Power?FINANCE
• The newest Citigroup rumors suggest a “tag team at the top”: Financial whiz Vikram Pandit will take over as CEO, while the more socially astute Robert Willumstad handles chairman duties. We’re just not sure “tag team” means the same thing for us as it does the Times? [DealBook/NYT]
• Morgan Stanley issued a full recession alert for the U.S. economy today in the oh-so-subtly titled “Recession Coming.” Meanwhile, a recent Journal poll of top economists puts the risk of recession at 38 percent. [Telegraph, WSJ]
• Thirtysomething Blackstone real-estate guru Jonathan Gray is getting rather comfortable in the top tier of the young establishment. [DealBook/NYT]
company town
Bill Keller: UnleashedMEDIA
• Bill Keller on Rupert Murdoch: “I don’t know Rupert Murdoch, he is a combative 76-year-old newspaper guy with a tabloid soul and more money than God. With those resources at this stage it looks like he will do whatever the hell he wants to do. I don’t think he is going to be constrained by some strategic planning consultant telling him what he can do. That makes him very hard to predict.” [Media Mob/NYO]
• Meanwhile, the Times gave Sam Tanenhaus still more power, expanding his purview beyond the Book Review to the halcyon halls of “Week in Review.” It’s hard to tell if this is Keller’s endorsement of Tanenhaus’s talents or just an absurd overselling of some serious cost savings. [Radar]
• Jon Stewart shows he’s a real mensch and begins paying his staff just like all the other late-night hosts (Even though Stewart is paid far less himself.) Daily Show staffers never even missed a check. [Mixed Media/Portfolio]
company town
Gucci Would Prefer a More Flattering CutFASHION
• The Gucci family is up in arms over Ridley Scott’s biopic. They fear he’ll focus on the family scandals. You know, instead of making a movie about all the boring stuff. [British Vogue]
• Helmut Lang is opening a pop-up shop in the meatpacking district. Just what we need, another fabulous place to spend our money while we are drunk. [Fashion Informer]
• Kaiser Karl rocked the U.K. with a Chanel fashion show. [WWD]
company town
Karl Rove to Finally Profit From Professional Secret-KeepingMEDIA
• Here come the NBC News pay cuts: Jeff Zucker plans to slash anywhere between $20 and $40 million, including an entire level of MSNBC management. And thanks to the writers’ strike and fears of recession, future cuts may only get worse. [NYP]
• Karl Rove may be offered $3 million for a memoir, in which we may find out how much he got in exchange for his soul. [NYP]
• At least one person thinks the press did a heckuva job in reporting the lead-up to the Iraq war — former top White House communications adviser Dan Bartlett. [NYO]
company town
For Viacom Freelancers, Neither Happiness Nor Health for ChristmasMEDIA
• Viacom screws over its army of freelancers by rolling back benefit programs drastically. Merry Christmas! [MixedMedia/Portfolio]
• The Washington Post is sending veteran reporter and inveterate partier Keith Richburg to town to take over the paper’s New York bureau. He’s well known for throwing parties with, get this, as many as 30 people! Will Manhattan will be able to handle it? [NYO]
• No holiday party at Time Inc. or the New York Times. Suckas! [Radar]
company town
Lies and the Lying Arabs Who Tell ThemMEDIA
• The New Republic pulled back on its long-embattled “Baghdad Diarist” series, admitting they could no longer stand behind the author, an army private serving in Iraq. Meanwhile, The National Review suffered its own Middle Eastern credibility scandal and struck back in a novel way: “As one of our sources put it: ‘The Arab tendency to lie and exaggerate about enemies is alive and well among pro-American Lebanese Christians as much as it is with the likes of Hamas.’” Yikes. [NYT Mixed Media/Portfolio]
• Big layoffs ahead at NBC News? “There are going to be firings very soon — everybody is terrified,” according to a “former network insider,” who claims tens of millions in cuts will happen in the next two weeks. [Jossip]
• New NBC programming honcho Ben Silverman is looking to clear up a conflict of interest and cash in on his old production company, which Elisabeth Murdoch, daughter to Rupe, is buying for around $200 million. Not bad for a guy who built his career on stealing foreign shows like The Office and Ugly Betty and then repackaging them for the U.S.[NYP]
company town
Jon Stewart Suddenly Not Looking Like the Nice GuyMEDIA
• Is Jon Stewart really the only late-night host not currently covering the salaries of his laid-off, non-striking employees? [Mixed Media/Portfolio]
• The key lines from the n+1 essay that helped convinced Choire Sicha and Emily Gould to quit: “The purpose of Gawker Media was always to improve on the print publishing business model. It was never, as the content of Gawker sometimes seemed to suggest, to produce critiques of the waste that model created. The content at Gawker, like most Condé Nast titles, is a service to the advertisers. … You could say that as Gawker Media grew, from Gawker’s success, Gawker outlived the conditions for its existence.” Joshua David Stein announced his own departure, due mostly to personal loyalty, on Saturday. [n+1, Media Mob/NYO]
• Meanwhile, Portfolio’s Jeff Bercovici proves that Condé and Gawker really are at the same level: “By the way, those who feel wronged by Gawker over the years can take some satisfaction in the uniquely terrible timing of the walkout for Denton, who is pumped full of painkillers after a recent back injury. Last week, the pain became so intense he needed an ambulance to get to the hospital. As he was being loaded into the ambulance, he says, his greatest fear was that he would be spotted by someone from Gawker, which is headquartered just down the block from his home.” [Mixed Media/Portfolio]
company town
John Mack Gives Zoe Cruz the Heave-hoFINANCE
• John Mack decided to can Zoe Cruz just three weeks after naming her as a strong potential successor at Morgan Stanley. Two execs, Walid Chammah and James Gorman, will take Cruz’s place as overseeing the firm’s trading and risk operations. [NYT]
• Eddie Lampert has lost quite a bit of his luster: The star investor sometimes mentioned as the heir to Warren Buffett lost millions on a big investment in Citigroup, and the earnings debacle at Sears is only making things worse. [Deal Journal/WSJ]
• A small local council in Scotland managed to trump the Donald’s $2 billion plan to build “the world’s greatest golf course.” It was just never clear on where Trump’s hair would fit in the course. [NYP]
company town
Did ‘The New Yorker’ Rip One of Its Cartoons Off ‘The Far Side’?MEDIA
• OMG, plagiarism in The New Yorker’s cartoon issue? [Gelf]
• Washington Post chief Don Graham has 300 Facebook friends. Poke away! [Washingtonian]
• Fox 9’s license is up for renewal, and a bunch of incensed New Jerseyans are fighting the station for failing to live up to its Jersey-side obligations. After all, the channel is based out of Secaucus but bills itself as “My9 New York.” [NYT]
company town
Howard Stern Thinks Imus Will Make You HurlMEDIA
• Carson Daly is going scab! Good thing he doesn’t have any viewers, and unlike Ellen isn’t actually a member of the Writers Guild. [NYT]
• Howard Stern gets all collegiate about Don Imus’s return: “At this point, I don’t think he’s very relevant. People will tune out within a week. I defy you to listen. See how long you can keep listening. Time it. You’ll throw up. You’ll get sick. You’ll die.” [AP via Mixed Media/Portfolio]
• Knicks reporters — even bigger whiners than regular reporters. Daily News vet Frank Isola: “It used to be fun here. Now, there are some nights when you’re trying to talk your boss out of sending you here and maybe lie and tell him you’re sick or something.” [NYO]
company town
Ben Bradlee Believes in Rupert MurdochMEDIA
• Legendary Washington Post editor Ben Bradlee on Rupe’s play for the Journal: “I think Murdoch is a better journalist than the rest of you do. Well, I think because he’s smart, and he’s not going to fill it up with pussy stories. And he’s going to get good reporters. I think he does not want to fail on this.” [Radar]
• Ted Kennedy sold his memoir to Grand Central Publishing for $8 million, but the deal first has to be cleared by the Senate Ethics Committee. Something tells us the chapter on Chappaquiddick won’t be too long. [NYT]
• The Times bagged their first refugee from the Journal, though it’s not a very big catch: John Harwood, the veteran CNBC Washington correspondent and occasional contributor to the Journal, will now take his part-time work to the Gray Lady. [NYO]
company town
Hillary Tries to Have It Both Ways With RupertMEDIA
• Today’s negotiations between the Hollywood writers and producers, who some say have already struck a deal, reportedly will be held in an “undisclosed location.” We always knew Cheney would come to the rescue! [HR]
• German Vanity Fair is being sued for an interview with an infamous neo-Nazi who denied the Holocaust. [Jerusalem Post via HuffPo]
• Rift in the house of Murdoch? Rupe complains that his son James can’t dumb down the news to his father’s tough standards. Meanwhile, a savvy voter in Iowa pressed Clinton on her Murdoch connections, and the senator, no surprise, tried to have it both ways. [FT via Mixed Media/Portfolio, The Caucus/NYT]
company town
Judith Regan: At What Price, America?MEDIA
• Jeff Bercovici wants to know: “What’s Regan’s price for selling out her country?” After all, if Regan’s info on Giuliani is that damaging, shouldn’t she divulge it in any case, no matter how much Uncle Murdoch is willing to offer? [Mixed Media/Portfolio]
• Dan Rather’s lawyers are getting fed up with CBS nondisclosure agreements. “Who do these guys think they are? The National Security Agency?” [NYO]
• Intrepid Observer reporter spends 45 minutes staring through a window just to see who showed up to a lame Times party. Now that’s journalism! [Media Mob/NYO]
company town
Kanye West and His ‘Bazaar’ Angel MuralMEDIA
• Kanye West says Harper’s Bazaar “pissed me off” when they reported the rap star’s L.A. home features a giant mural of himself with angels. “That made me so mad. Because who would want to hang out with a guy with an 8-foot picture of an angel of himself?” Too bad Harper’s got almost every detail right, and Kanye is indeed featured in the painting. [WWD]
• CBS News writers voted to authorize their own strike. Watch out, Katie Couric! [NYT]
• Did Star really pull on an online poll because Ron Burkle, the billionaire investor the mag flattered with a recent photo spread, wasn’t doing well enough? Star claims they’re just planning to publish the results in the next issue — plenty of time to stuff the ballot box. [Mixed Media/Portfolio]
company town
Stan O’Neal Disinvited to the Literal and Figurative PartyFINANCE
• Stan O’Neal wasn’t invited to a big Merrill Lynch reunion party thrown by Evelyn Juan, the son of a Merrill founder. Guess Stan will just have to drink himself to sleep in his board-provided office. [DealBreaker]
• Goldman’s unbelievable success is forcing all the other top banks to dig deep into the honey pot and pay out a record-setting $38 billion in bonuses, despite losing $74 billion in market value. Goldman, of course, accounts for almost half of the bonus pool. Let’s just say it’s good to be Goldman. [Deal Journal/WSJ, Bloomberg]
• Steve Schwarzman spared no expense for his son’s wedding and the tab ran to $150,000, including a $20,000 BBQ supper, $7,000 for drinks, and $50,000 to rent an entire hotel and keep the riffraff out. Still pales in comparison to Schwarzman’s $3 million birthday bash. [NYP]
company town
Rove, Regan and Rather: Crazy? Or Crazy Like Foxes?MEDIA
• How did Judith Regan’s high-level lawyers let her bat-shit-crazy legal complaint get through? Oh that’s right, she’s Judith Regan. [Legal Pad/Fortune]
• CBS finally got around to filing their motion to dismiss Dan Rather’s suit. The network claims they are “mystified” by Rather’s “bizarre allegations,” and that the lawsuit amounts to a “regrettable attempt by plaintiff Dan Rather to remain in the public eye, and to settle old scores and perceived slights, based on an array of far-fetched allegations.” [NYO]
• Karl Rove signed on to become a regular contributor to Newsweek. Maybe they should consider changing their slogan to “fair and balanced”? [Mixed Media/Portfolio]
company town
The Union Club Is Like an Adult Frat, But Not in a Fun, ‘Old-School’ WayMEDIA
• Yesterday at the Union Club, reporters specifically invited by the Manhattan Institute to hear Mayor Bloomberg and Jeb Bush speak were instructed to leave the room before the speeches began. “The police are right outside,” one club worker told them. “If you don’t leave, we’re going to call them in.” You have to wonder if this was merely an administrative fumble, or the old-guy version of that frat-party game where dudes invite fat chicks to parties so they can make fun of them. [NYS, NYO]
• However! The Manhattan Institute has since apologized to the press for the Union Club’s behavior, and they put Bush’s remarks online. It’s only audio, though, we wonder why? We can only assume it’s because at the Union Club, all speeches are done naked. [Manhattan Institute via NYO]
• Janice Min: “It’s off-putting when a junior employee tells you they want to be editor in chief.” Instead, just try to make yourself indispensable: “I was the easy solution. Make yourself the easy solution.” Or just make yourself easy. [WWD]
company town
Bloomberg’s Baby Problems: They Just Keep Popping OutFINANCE
• Another woman joined the federal discrimination lawsuit against Bloomberg LP. After her first child in 2005, her pay fell and her colleagues turned into sharks. One supervisor even asked, “What is this, your third baby?” [NYT]
• More of the same on the Street: Bank of America wrote down $3 billion, Bear Stearns $1.2 billion, and British bank HSBC took the cake with $3.4 billion, largely due to U.S. mortgage weaknesses. Meanwhile, Goldman CEO Lloyd Blankfein laughed in everyone’s face, predicting no more write-downs (not that they lost much in the first place) at the Teflon bank. [NYP, NYT, NYT, DealBreaker]
• Is the credit crunch just like Enron all over again? So says Bethany McLean, the reporter who first broke Ken Lay’s fraud wide open. [Fortune]
company town
Prince Alwaleed Indulges in a Little Retail TherapyFINANCE
• Citigroup’s biggest shareholder, Prince Alwaleed bin Talal, unwound from the loss of $4.6 billion and the firing of Chuck Prince by adding an A380, the largest passenger airplane in the world, to his collection of private jets. The plane, which seats 525, and includes and several bedrooms, ballrooms, and a private theater, cost upwards of $319 million. We bet he feels better now. [NYP, NYT]
• Steve Schwarzman married off his son Edward, a corporate lawyer at Skadden, to Ellen Zajac, a corporate lawyer at Thacher Proffitt. Maybe together they can save Blackstone from going down the tubes — the firm is down 25 percent since going public back in June. [NYT, NYP]
• Worried about a run on the bank? Here’s how to know which accounts are insured, and how much you’ll get back. [MarketBeat/WSJ]
company town
Al Gore: Cashing In on His Big YearFINANCE
• Al Gore, venture capitalist? The Nobel laureate and Apple board member is taking a hands-on role at Kleiner Perkins, the leading Silicon Valley venture firm. His goal: Save the world. And annoy GE’s Jeff Immelt as much as possible. [Fortune]
• Harvard picked Robert S. Kaplan, a former Goldman Sachs vice-chairman, as the new steward for the $35 billion endowment. Something tells us his kids won’t have any trouble getting in. [Reuters via NYT]
• A few management consultants with nothing better to do gave the Times its newest buzzword: CEO version 3.0. With the departures of Stan O’Neal, Chuck Prince, and Richard Parsons, it’s now time for leaders “who can assemble a team that functions as smoothly as a jazz sextet.” Because, as James Cayne showed, the old CEOs were way too bebop. [NYT]