Thursday, October 22, 2009
The New (New) Mediaconomy
It’s a clash of civilizations: the paywalls are rising again, Rupert’s on a rampage against the Internetz, and the subtext is none too subtle.
It’s a clash of civilizations: the paywalls are rising again, Rupert’s on a rampage against the Internetz, and the subtext is none too subtle.
We’ve already covered how Rupert Murdoch has flip flopped his position on free online news, but his recent foray into blaming search engines and aggregators is really reaching the height of hypocrisy.
Five months ago, a group of media executives including Steven Brill seemed to have the field to itself when it said it was building a system for newspapers to charge readers for access online.
On the web, lurid, sensationalistic news is priced at $0 (for now, at least). Maybe it’s worth exactly that.
Rupert, you didn’t ask my opinion on this, but since when has that ever stopped me.
Drippy Manhattan evenings aren’t usually a draw for an outdoor cocktail party but the FoundersClub NYC Internet Week soiree had something that overcomes a little rain: power.
As Mark Gimein noted last week in The Big Money, the media giants have put the Web’s journalistic “parasites”–blogs, aggregators, Google–on notice that they will no longer allow them to pinch their copy without reimbursement.
We’ve finally reached the point at which some of the finest minds doing the biggest thinking about the battered news business believe the best eraser for red ink is… charity. Financial pros David Swensen, the chief investment officer at Yale, and his colleague Michael Schmidt posit that the best way to save journalism is to go the nonprofit route, funded by endowments. But is it?
Today at the D6:Conference, the corporate doyens and business leaders were out in full force, both on and off stage. Those who were grilled on stage showed were true to their form–Amazon’s Jeff Bezos charmed everyone with optimism for Kindle, Yahoo’s Jerry Yang was all emotion and patience, and Mark Zuckerberg of Facebook showed that he is still a young fella brimming with big dreams.
Does News Corp. really want a piece of Yahoo? Word leaked out Wednesday that Rupert Murdoch’s News Corp. (owner of this site–Ed.) is looking at taking a stake of 20% or more in Yahoo in exchange for MySpace, some cash and other online properties. An infusion from News Corp., the reasoning goes, could boost Yahoo’s stock price high enough to outstrip Microsoft’s hostile takeover attempt. This is probably as close as Yahoo will get to a white-knight scenario where someone saves the company from the clutches of Microsoft. But a News Corp. deal probably won’t happen. Why?
After years of rumors, it finally happened. On Friday, Microsoft made its buyout offer for Yahoo. But while that was expected to happen, as both companies have had trouble catching online advertising juggernaut Google, what wasn’t so expected was that Microsoft CEO Steve Ballmer would go all Murdoch on Yahoo with a hostile bid at a 62% premium over Yahoo’s stock price. But unlike Rupert Murdoch’s hostile bid for Dow Jones, Ballmer doesn’t have to contend with family ownership or strange stock structures.
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