Tuesday, September 30, 2014

Why Comcast May Soon Launch An Online-Only Subscription Service

Moving its set-top boxes and DVRs to a cloud-based delivery system positions Comcast to eventually offer a streaming video package with a smaller bundle of networks both inside and outside of its markets.



Comcast's X1 trending shows screenshot


Comcast / Via corporate.comcast.com


Here's something to think about: Comcast, the largest cable operator in the U.S. with around 22 million total subscribers, will soon have more broadband subscribers than video subscribers for the first time ever.


It's a tipping point the industry as a whole reached at the end of the second quarter, and one that Comcast has been anticipating for several years. The company over the last two years has been steadily moving its subscribers to an internet-based delivery system for video via its X1 set-top box and improving the functionality of its DVR to allow for the streaming of live TV to any device in the home and access to recorded shows via streaming or download outside of the home.


But while the upgrades are a nice feature for current subscribers, Comcast isn't making them so teenagers don't have to watch TV in the same room as their parents anymore. The end goal in moving its service and subscribers to a cloud-based system, which you won't hear from Comcast executives while its impending $45.2 billion merger with Time Warner Cable is under the regulatory microscope, is to position Comcast to eventually offer a smaller bundle of broadband and video to consumers inside and — here's the important part — outside of its markets under the Xfinity brand banner in the future. The very near future, like next year even.


"Comcast is fully prepared and technologically capable of launching an over-the-top video service," said BTIG analyst Richard Greenfield.



AP Photo/Susan Walsh


Today's news that Comcast is rolling out its live in-home streaming and cloud-based DVR features to subscribers in the Bay Area, the eighth market in its footprint to receive the upgrade, joining Atlanta, Baltimore, Boston, Chicago, Houston, Philadelphia, and Washington, D.C., is an indirect step in that direction.


Comcast demonstrated some of the new features for BuzzFeed News last week, among them super-fast download speeds, a smart programming guide that listed shows in both a linear fashion and by what was trending on social media, a recommendation engine based on past viewing, and the ability to pick up a show where you left off while switching viewing between devices. These features are delivered via the X1 set-top box, an Xfinity TV app for iPhones and Androids, and a dedicated website.


Comcast Senior Vice President for Video Matt Strauss and other executives will tell you the added features help "maximize the value of what our customers pay us for" and that the focus is on creating a better "package and bundle of services within our footprint."


Indeed, the only drawback to the service is that to get it you have to be a Comcast cable subscriber. For now at least.


Comcast is already experimenting with smaller bundles inside of the markets in which it operates. The company currently offers something called "Internet Plus," which combines in-home wireless service with more than 25 channels, including the broadcast networks and HBO, and Streampix movie service. Outside of the home "Internet Plus" subscribers can use the Xfinity TV Go app to access live and on-demand content that is part of their subscription.


Comcast has also made a big push into universities within its markets with a product called "Xfinity on Campus." This package allows students to stream video to devices over the college's internet service or using a wireless network to log into TV networks's individual apps.


"There are customers who would see value in a slimmer bundle, and we want to start building relationships with them, whether they are millennials or customers in other demographics," Strauss said.


The reason why Comcast wants to "build relationships" with these customers is because they are both the least likely to want an actual cable subscription and are the ones increasingly being targeted by streaming video providers like Netflix, Hulu, Amazon, and Google. But it's not just the insurgent newcomers that are going after Comcast subscribers — it is also long-entrenched incumbents. Satellite television distributor Dish Network has inked deals with ESPN, A+E Networks, Food Network, HGTV, and other channels and plans to launch a cheaper, internet-delivered streaming video package by the end of this year. Sony and Verizon also plan to launch streaming video services between now and the middle of next year, and AT&T's impending purchase of DirecTV will allow those companies to experiment with all kinds of streaming offerings to mobile devices.


"If Dish, Sony, and Verizon all launch over-the-top video services, then Comcast will be forced to launch one of its own," said Greenfield, adding that it could happen as soon as next year. "There is no way they let those guys come into their markets and stand idly by while they go after their subscribers."




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Oregon Personal Injury Lawyer, “How long does it take to settle a typical personal injury case?”




http://ift.tt/1fgALiw, Oregon Personal Injury Attorney, Rick Lundblade, a partner at Black Chapman Webber & Stevens answers the question,”How long does…


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16 Women Entrepreneurs Who Are Changing The Way Business Is Done In The Arab World

Arab Women Rising , published in 2014 by the Wharton Business School, profiles female entrepreneurs from around the Middle East and North Africa.


Authors Nafeesa Syeed and Rahilla Zafar roamed the Middle East and North Africa in search of something common but often overlooked: Successful female entrepreneurs. In their 2014 book, Arab Women Rising, published by the Wharton Business School, Syeed and Zafar profile just 35 of the hundreds of innovative women they interviewed. Coming from diverse background and fields, the women shared their candid insight and personal stories about how they've made it in volatile business environments where female faces have often been made to feel unwelcome.


Here are samples of 16 of the stories profiled in Arab Women Rising: 35 Entrepreneurs Making a Difference in the Arab World :


Deena Fadel: “Work is not work for me. It’s a passion. It’s love.”


Deena Fadel: “Work is not work for me. It’s a passion. It’s love.”


Deena Fadel, an Egyptian artist, quit her job at an advertising agency to start her own home accessories line, Joude. She takes inspiration from Cairo's crowded streets, integrating traditional Arab motifs and calligraphy into every usable items, from coasters to pillows.


Arab Women Rising


Asma Mansour: “We have to think of how to solve social problems and to push the economy for growth.”


Asma Mansour: “We have to think of how to solve social problems and to push the economy for growth.”


During the Tunisian Revolution in 2011, Asma Mansour found herself asking: How does one fight for social change in a sustainable way? Mansour researched several models, and subsequently co-founded the Tunisian Center for Social Entrepreneurship, a social innovation incubator that offers fellowships to those with new ideas.


Arab Women Rising


Dana Al Taji: "Why not play around with it?"


Dana Al Taji: "Why not play around with it?"


When Palestinian designer Dana Al Taji started to wear the Abeeya, a full length black cloak, she felt constricted by the options. So Al Taji took to Facebook and started her own line, called LAYAL, and now has her own boutique in Cairo.


Arab Women Rising




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The Weird Genius Of The "Crouching Tiger 2" Netflix Deal

By releasing a major feature film on the streaming service — and in IMAX — the Weinstein Company has crafted the strangest, and perhaps savviest, ploy yet to shut out movie theaters from the movie business.



Michelle Yeoh in 2000's Crouching Tiger, Hidden Dragon


Sony Pictures Classics


Late Monday night, Netflix and The Weinstein Company announced that Crouching Tiger, Hidden Dragon: The Green Legend would be the first major feature film to debut exclusively on the digital streaming service — instead of in a standard theatrical release — on Aug. 28, 2015. Although the announcement also noted that the film would also debut in "select" IMAX theaters worldwide on the same date, it is already clear that the movie won't be appearing on IMAX screens housed in three of the largest movie theater chains in the U.S.: Regal, Cinemark, and Carmike. In a statement to BuzzFeed News, AMC Theaters, which is owned by Chinese conglomerate Wanda Group, did not state unequivocally that they would not exhibit Crouching Tiger 2, but its sharp tone remains perhaps the best encapsulation of how exhibitors feel about this deal in general:



AMC Theatres and Wanda Cinema are the largest operators of IMAX-equipped auditoriums in the world. We license just the technology from IMAX. Only AMC and Wanda decide what programming plays in our respective theatres. No one has approached us to license this made-for-video sequel in the U.S. or China, so one must assume the screens IMAX committed are in science centers and aquariums.



Despite the outcry from theater chains, this announcement could fundamentally reshape the way the movie industry regards the way it does business. More likely, it will serve as simply yet another example of the slow, unstoppable expansion of what it means to watch a movie. Regardless of the outcome, however, it is a showdown that has been a long time coming within the movie business and — let's be clear here — it is kind of weird that it is happening now, with this movie, on this service. And kind of genius.


It is weird that The Weinstein Company, which did not exist when Ang Lee's Oscar-winning film Crouching Tiger, Hidden Dragon became the highest-grossing foreign language film in the U.S. in 2000, is making a sequel 14 years later that does not involve Lee nor any of the first film's creative team, except for fight choreographer Yuen Wo-Ping, who is directing the new film outright. TWC can call the movie a sequel because, for one, John Fusco (The Forbidden Kingdom) is writing the movie based on the same novel series by Wang Dulu that inspired the first Crouching Tiger, and for another, actress Michelle Yeoh is reprising her role as Yu Shu Lien. (Also weird: The film is shooting not in China, but in New Zealand.)


It is weird that TWC would choose the subscription-based Netflix to exhibit this major feature release, rather than the pay-for-play VOD options that have proven successful on a smaller scale with independent film releases through subsidiary RADIUS-TWC, like Bachelorette and Snowpiercer.


And it is weird that IMAX would risk angering its theatrical partners by agreeing to be the exclusive theatrical parter for the Crouching Tiger 2 Netflix release.


But it is also genius that TWC is using this particular film as its weapon, and IMAX as its partner, to slice through the iron-clad resolve of North American movie theaters to maintain their exclusive window for theatrical exhibition.


And the reason, like so many things with Hollywood of late, has to do with China.



Ben Stiller and Eddie Murphy in Tower Heist


Universal Pictures


Let's take a step back for a moment. The "theatrical window" — i.e., the space of time when a feature film is available only at movie theaters, usually lasting roughly three months — is something that major Hollywood studios have been itching to shorten since at least 2011. That's the year Universal floated a plan to offer the Ben Stiller-Eddie Murphy comedy Tower Heist on cable VOD three weeks after its theatrical release — for a whopping $60. It was met with a swift and resolute rejection by American movie theater chains, which refused to show the movie at all if Universal went through with its plan. The studio quickly backed down, because its plan made no sense: The studio still needed that theatrical run, since there was very little chance Tower Heist's target audience was all that keen to spend $60 to watch a movie they would have spent $8 on at the theater. Universal had no leverage, exhibitors knew it, and they called the studio's bluff.


But closing that theatrical window has remained a priority among Hollywood studios, for the simple fact that for over a decade now there has been a seemingly inexorable erosion of audiences away from movie theaters and into their homes. In 2002, according to Box Office Mojo, nearly 1.6 billion tickets were sold in the U.S. Last year, it was just over 1.3 billion — a loss of almost 300 million moviegoers over 11 years. Theaters have been scrambling to entice audiences back, with amenities like assigned seating, fancier chairs, and in-theater food service, while at the same time boosting ticket prices and especially 3D surcharges to make up the difference. But while they've succeeded in propping up box office revenue — $10.9 billion in 2013 versus $9.2 billion in 2002 — that steady drip of audiences away from theaters has been weighing on Hollywood's mind. (This summer's abysmal box office certainly has not helped matters.) Studios want to start making serious money from the other ways people are watching their movies — on their wide-screen TVs, tablets, and (shudder) smartphones — as quickly as possible.




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As Malls Get On Board, Same-Day Delivery Becoming The Norm

More retailers are getting in on same-day delivery this holiday season. The economics of the business finally make sense, experts tell BuzzFeed News.



Ralph D. Freso / Reuters


Five years after Amazon introduced same-day delivery, it's finally catching on with mass retailers.


Macy's said its namesake chain and Bloomingdale's will start piloting same-day delivery in eight major markets this fall, while Neiman Marcus started testing the service in three cities earlier this year. Both department-store companies are using startup Deliv, which has partnered with a laundry list of other retailers and America's biggest mall operators, including General Growth Properties and Simon Property, to make same-day delivery as inexpensive as standard shipping.


Cheap same-day delivery for items like sweaters and Lego sets is the next step in the smartphone-enabled instant gratification trend that's already changing transportation and food delivery. A confluence of factors is hitting at just the right time: retailers finally have the right technology in place after upgrading their systems to accommodate the new norm of "buy online, pick-up in store," labor is cheaper and more connected than ever, and of course, they're motivated by fear of Amazon. Adding to that, mall owners, nervous about their own future, are subsidizing the service.


And it's not just big retailers — just a few weeks ago, apparel startup Everlane started offering one-hour delivery in San Francisco with the help of Postmates. Amazon now offers "Get it Today" in 12 markets, seven days a week, after steadily building up to 70 million square feet of fulfillment center space at the end of last year.


Since Macy's announced its partnership with Deliv this month, the startup has been "flooded with inbound requests," Daphne Carmeli, founder and chief executive of the startup, told BuzzFeed News. "We talk to hundreds of retailers. It's not a question of if I'm going to jump on same-day delivery, it's when and where I start it. I think 2014 is much more aggressive in the volumes we're seeing, and the traction we're seeing is much higher than 2013...it's just growing."


The trend, like many others in the retail industry, can be traced back to Amazon.


"Amazon in the last year has put a tremendous amount of muscle in marketing this notion that you as a shopper can get things whenever you want, you can get it fast and you can get it cheap," Carmeli said. "Whether it's drones, or algorithms, anticipatory shipping, building out warehouses — they're doing so much to get consumers used to the fact that this is going to be fast and cheap and that same-day is going to be the new standard."


Shipping costs, which were once a major barrier for retailers, are much lower than they used to be.


Amazon's same-day delivery costs just $5.99 for Prime members; non-members pay $9.98 for the first item and a 99-cent fee for additional products. Everlane is charging $4.99 for one item; order two or more and the service is free. As for items shipped through Deliv, Carmeli says the delivery fee tends to be between $8 and $10, though it can go as low as $5 as mall operators and retailers offer discounts in hopes of getting customers hooked on the convenience. Foot Locker, which is testing same-day and next-day delivery at five California stores, says the option is only $5 thanks to the partnerships with Deliv and mall operators.


Michael Preysman, founder and CEO of Everlane, says it's not much more expensive to do one-hour delivery with Postmates than it is to ship from the company's warehouse in Denver. He said he sees the rise of cheap same-day delivery as a smartphone-driven phenomenon.


"There's this whole network of couriers that have come about, whether it's Uber, which is doing a bit of delivery stuff, or Postmates, or Instacart, which is starting to bring in more than just groceries," he said. "There's this massive workforce that's completely mobile all the time that didn't exist three years ago."


He noted that same-day delivery is still in its early days, though.


"We don't totally know what the impact is going to be, but there were two ideas," he said. "One is that the convenience is just amazing — you order and literally 40 minutes later, it's at your doorstep. It's this idea of, 'Why would I shop anywhere else?' And as we think about driving activation, we always think of how we lower the barrier to purchase, and a big barrier of purchasing is, 'Well, it'll arrive in four days, so I'll go to my local store.' With this, it's 'Forget it, I'll try Everlane and see if it works."


Still, more consumers are beginning to accept ever-faster shipping as the norm.


"These delivery options, I think it's all part of what the customer is expecting these days," Karen Katz, chief executive officer of Neiman Marcus, told analysts and investors earlier this month. "She just wants optionality."


Greg Greeley, vice president of Amazon Prime, echoed the sentiment.


"More customers have been opting for same-day delivery this year in particular because of the recent improvements we have made to our service," he said in an e-mail to BuzzFeed News. "Prime has made two-day shipping an every day experience rather than an occasional indulgence...and now, Amazon ships more than twice as many items with Prime than with our traditional free shipping. During that same time, we have also dramatically expanded our offering of same-day and one-day shipping alternatives for Prime members – and members are embracing these new delivery options."


Contact the reporter on this story at sapna.m@buzzfeed.com.




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Pebble, A Smartwatch With A Week-Long Battery, Now Tracks Sleep Habits

The company is releasing a major update to its 400,000-plus watches in the wild. It’s also selling its watches with retailers internationally.



Alissa Holland/flickr Editorial / Getty Images


With Apple unveiling a luxury-skewed smart watch, and Android releasing software to many manufacturers making their own smart watches, one startup, Pebble, is betting there's more than enough room for a third major manufacturer.


To that effect, Pebble — known for having a battery that lasts and a screen that's always on — is adding activity and sleep tracking as part of a software update to all of the more than 400,000 smart watches it has shipped. With today's update, Pebble owners will be able to track their activity — even swimming — and sleep using software created by other activity-tracking companies like Jawbone and Misfit. Overnight, what was once a smart watch with a portfolio of apps will also become an activity tracker, CEO Eric Migicovsky said.


"Apple is taking one smart watch strategy which revolves around the luxury angle, creating a really high-end quality product with good materials. I think they've made a very Apple-y stab at the problem," Migicovsky told BuzzFeed News. "I'm the first to admit it's a great-looking product, it's beautiful, I could see someone swapping out their Rolex. [Google's approach is] a little like strapping an Android phone to your wrist, they're still figuring out the use cases. We've been working on it for several years and we know what people do with smart watches, which is tell the time. We're the smart watch that's affordable that does the right things, it's not an overly complicated smart phone on your wrist, and it gets better over time."


Many wearable device creators are placing increased importance on sleep-tracking, as previously detailed by BuzzFeed News. Whole companies, like San Francisco-based startup Hello, are springing up with devices centered around sleep-tracking, and the addition to Pebble comes at a time when smart watches like the Apple Watch and Android Wear devices have batteries that need to be recharged every night. That makes them unreliable for sleep tracking, while the Pebble smart watch will only see a marginal reduction in battery — about a half day of its typical week-long battery, Migicovsky said.


Migicovsky said the addition of sleep tracking was partly inspired by his own odd sleeping hours, and tracking his sleep helped get him in the right mindset. Others have agreed: "Every day, it seems, there's a new study speaking to the irrefutable benefits of sleep on our health, our productivity, our creativity, and our decision-making ability," Huffington Post founder Arianna Huffington told BuzzFeed News in an earlier interview.


Activity-tracking, too, has become a core part of most smart devices, including smartphones. Apple's latest operating system, iOS 8, includes a swath of software tools called HealthKit that help iPhone owners track their overall health and activity. Still, sleep-tracking is not something that appears included, and seems to otherwise be limited by the Apple Watch's requirement to be charged often. Pebble is opening up some of the watch to activity-tracker developers in order to run apps in the background, but anyone is actually able to develop apps for the watch — which has more than 4,000 apps available.


The company also said it would drop the price of its smart watch to $99 for the standard edition, and $199 for the higher-quality production Pebble Steel smart watch. That puts it at roughly one fourth of the cost of the Apple Watch at its lowest estimated price point, and cheaper than many Android Wear devices, while being compatible with most major smartphones instead of being dependent on a single operating system like iOS and Android.


Pebble also said it was rolling out to retailers internationally today as well. The company has shipped its smart watches to customers in more than 150 countries, and Migicovsky said adding the device to retailers is the best way to help it spread with word of mouth marketing from existing customers.


Historically, there has been room for a cheap option in the smartphone market, with cheaper Android phones helping Google capture a dominating share of the number of smartphones shipping with its operating system. Apple has traditionally been seen as a higher-priced, higher-end device — and that has continued with the Apple Watch, with luxury editions estimated to be priced in the thousands of dollars.




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Men's Fashion Socks Drive Billions In Sock Sales

Socks are “making a move from commodity to fashion piece,” says market research group NPD Group. The foot garments now represent a $5.6 billion industry.



Via aceandeverett.com


The big boom in men's fashion is happening in socks, according to market research firm NPD Group.


Sock sales grew by 2% into a $5.6 billion industry in the 12 months ending August 2014, outpacing growth in the $206.7 billion global apparel market, the firm said in a statement today. Men drove the trend, as "over the past year years, socks have become yet another outlet for expressing the extra splash of pattern and color they seek," said chief industry analyst Marshal Cohen.


Socks have become a way for men to express themselves in recent years though they might not yet be the "new 'necktie,'" as NPD suggested. The trend has given rise to multiple sock subscription services such as Foot Cardigan and Sock Panda, and Nordstrom sells socks that cost as much as $80 a pair. (That's for Alexander McQueen creations.) Retailers like J. Crew sell many of its men's socks for $14.50 to $35 a pair.


About 73% of men wear socks almost every day, versus 41% of women, NPD says. Men also tend to spend more on socks.


This represents a missed opportunity for the retail industry, Cohen says.


"Retailers and manufacturers should find ways to reinvigorate this category for women by setting a new fashion statement, one that treats socks as an accessory, something special, and not a basic commodity," he said. "If women will wear shorts with tights in colder weather and boots during warmer seasons, they will find more room for socks in their wardrobes."



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How Madewell Bought And Sold My Family's History

I stopped dead on Broadway, in the middle of the sidewalk, and stared, not up at the beautiful wrought-iron SoHo buildings, as would befit someone who’d moved to New York in the past month, but at an ordinary sign advertising a small clothing shop. The logo, a casual cursive scrawl with both E's capitalized, jumped out at me like a beacon from a lighthouse somewhere deep in the back of my brain. That was the logo emblazoned on my baby clothes, the logo my great-grandfather created. It was, I thought, forgotten family history, the factories having shut down shortly after I was born in the '80s. After a moment I took out my phone and called my mom and asked her what the hell was going on.



The author sporting Madewell baby denim.


Courtesy of the Nosowitz Family.


She’d heard something about this. Madewell was back, somehow, but she wasn’t sure exactly how or why. I wandered inside the store. It was all women’s clothing — expensive women’s clothing. I found a clerk and said, in some jumbled, excited, confused way, that this was my shop, that Madewell was my family’s business. I think she thought I was angling for a discount. After politely and professionally feigning interest while I struggled to explain a history I didn’t even really know, the clerk stopped me. “We don’t sell men’s clothes,” she said.


Over the next four years, I saw Madewell everywhere. Today there are three stores in Manhattan alone, and 77 throughout the country. On bags on the subway, on tags of clothes worn by friends, I am constantly bombarded with totems of my family history.


Asking my family yielded the basics: Madewell as it stands today began in 2004. That's when Millard "Mickey" Drexler, now the CEO of J.Crew, acquired the logo and the trademark of the company my great-grandfather founded in 1937. Dhani Mau, a senior editor at Fashionista, said, “J.Crew considers it their younger sister brand,” though she said it’s not necessarily for younger sisters. Pressed to pick out a celebrity who might typify the Madewell girl, Mau chose Kate Bosworth and Rachel Bilson. This does not entirely jibe with my mental picture of my tough immigrant great-grandfather selling stiff denim overalls to New England dockworkers.


Still, Madewell will not let you forget the date 1937. The store could originally be found online at madewell1937.com, and the year is prominent on the site and on some of the clothing. The company's Instagram and Twitter handles are both still @Madewell1937, and its LinkedIn page says, "Madewell was started in 1937 as a workwear company, and we're always looking to the brand's roots for inspiration."


This is, to put it mildly, baloney. Madewell as it stands today has almost nothing at all to do with the company founded by my great-grandfather almost 80 years ago. How many vintage labels out there have similar stories? How many corporations are out there rifling through the defunct brands of America’s past like a bin of used records, looking for something, anything, that will give them that soft Edison-bulb glow of authenticity?


Madewell’s story — my story — leading up to that moment in SoHo began over a century ago, half a world away. It traces the evolution of how Americans shop, and how Americans shop heavily informs how Americans see themselves; we, as a country, are what we buy. Mickey Drexler, in creating J.Crew’s new womenswear stores, shrewdly read the market and realized that stocking nice clothes wouldn’t be enough: He’d have to tell a story along with them. Drexler didn’t have any stories, so he bought ours.



A view from the Madewell store in NYC's Soho.


Flickr: Ludovic Bertron / Creative Commons (CC BY 2-0) / Via Flickr: 23912576@N05


Julius Kivowitz was born in Russia in 1889 or thereabouts. His name was not Julius Kivowitz at the time — it was Beham.


At the turn of the century, the Russian Empire required that all males, starting at age 20, serve in the army, and Julius seemed to be not very taken with this prospect. The Beham family was fairly well-off and managed to secure a sponsor for Julius in the U.S., in a prosperous Massachusetts port city near Providence called New Bedford. There was only one problem: Any attempt by Julius to leave under his own name would have exposed him as a draft dodger. (Some in my family, including his youngest daughter, referred to him as a "conscientious objector." Whether he objected to war or merely his own participation in the war isn't clear.) My cousin Judy told me that Julius invented his new last name by going to a cemetery and picking out the name of someone who, had he lived, would have been about the same age.



A young Julius Kivowitz seated in the center.


Courtesy of Ellen Horvitz


It was a good time for a Jew to leave Europe. By 1906, pogroms — huge, brutal, bloodthirsty, anti-Jewish riots — were commonplace in the Russian Empire. Mobs of Russians burned and sacked entire Jewish towns, murdering men, women, and children, with the implicit permission or even participation of police. Many Jews fled, the newly renamed Julius Kivowitz and his fiancée, Fannie, among them. (It was somewhat scandalous and also a bit romantic that the two fled together before they were married.) He landed at Ellis Island at age 19, stayed in New York for a few years, moved north to Connecticut, and then went further eastward up the Atlantic coast to New Bedford.



Fannie Kivowitz


Courtesy of Ellen Horvitz


When my great-grandfather arrived there some 90 years ago, New Bedford was just beginning the decline from its status as one of the country’s most bustling, wealthiest port cities. New Bedford had been the whaling capital of the world, one of the settings in Herman Melville's Moby-Dick. Hundreds of huge, magnificent schooners and clipper ships were built and launched from its port. By 1850, thanks mostly to profits from whale oil, New Bedford was the wealthiest city per capita in the country. But the whale oil industry collapsed, and by the time the wave of immigrants that included my great-grandfather and his young family settled there in the 1920s, the town had pretty much abandoned whaling and turned to fishing and manufacturing.


Julius, like so many of his generation of immigrant Eastern European Jews, was an entrepreneur with no particular passion besides financial success. First he opened a grocery store, earning enough money to, along with a partner from New York, move into textiles. It was a natural move for Julius, as it was for many other Jews, who brought a centuries-long tradition of textile manufacturing with them from Europe. Beginning around the 16th century in Eastern Europe, Russian and Polish Jews began working with wool. By the 1860s, heavily Jewish cities like Lodz and Bialystok were textile-manufacturing centers; more than half of the textile industry in Bialystock was Jewish-owned. This was pretty much stamped out by the 1930s, thanks to decades of violent anti-Semitism perpetrated by independent Poland. But Julius had already fled Eastern Europe and made his home in New Bedford.


In 1936, Julius filed for the Madewell trademark, and in 1937 he opened his first factory. No one seems to know why he picked — or if he himself even did pick — that name. But I don’t think his English was ever all that good, and there’s something very clean and utilitarian about it.



The Kivowitz kids: (from Left) Barbara, Lillian, Beatrice and Haskell.


Courtesy of Ellen Horvitz


There is nobody alive who remembers the earliest chapters of Madewell. The only one of Julius' children still living is my great-aunt Barbara, the youngest of the Kivowitz brood by nine years. Her husband, Aaron, ran the shipping department of Madewell, but didn't come on until 1951. Nobody knows much about that mysterious New York partner who oversaw the factory floor but vanished from the company within a few decades. Nobody knows how many workers — "stitchers," they were called — were employed at first. Nobody, to be frank, seems to know much about Julius. The documents I could find from that era give the date of the company’s founding but not much else; whatever records Madewell kept from its early years are gone. After questioning damn near everybody still alive who ever met him, here are the facts I gathered about my great-grandfather:


1. He spoke mostly a mix of Yiddish, Russian, and English, with a thick accent.


2. He was rarely seen without a cigar.


3. He loved the card game pinochle, and played every week.


4. He didn’t talk much, and I can find exactly no one who can recall him saying a single word about his childhood in Russia.


5. He liked nice things. He built a big house and filled it with expensive appliances and Oriental rugs, which seems to have annoyed his wife Fannie, who did not care much for extravagance.


That's it.


His employees at the time likely included the dominant immigrant groups of New Bedford: Portuguese speakers largely from the Azores and Cape Verde, French Canadians, and possibly some Jews. The company at the onset was designed smartly and specifically to cater to the substantial working class of the community: It made jeans, dungarees (which differ from jeans in that the threads are pre-dyed before weaving), and bib overalls. These were hardy work clothes, intended for use inside the factories and fisheries of New England.



Courtesy of the Nosowitz Family


Madewell was a family operation. Julius' son Haskell and his sons-in-law Aaron and Jerry ran departments (sales, shipping, and manufacturing, respectively) within the company. Various cousins and nephews and nieces and grandchildren worked there during summer vacations from school. Gradually, as Haskell took a larger role in the company, Madewell branched out into other clothes.


By the early 1960s, Haskell's strategy to diversify Madewell’s offerings (and to sell to larger department and discount stores) had kicked into high gear, as it began to make children's and women's clothes. It’s sort of hard to get a sense of what Madewell really was at the time — my great-grandfather had to be cajoled and sometimes tricked into allowing his company to change, but the company seemed built to adapt pragmatically to each era.



Keeping Up With the Kivowitzes


Courtesy of the Nosowitz Family


The company didn't have any particular aesthetic. Most of the clothes were contracted, made by any of several other factories and stamped with the Madewell name. Madewell had lots of partners at other factories — one in Georgia, one in Kentucky, among others — that would take care of the design and manufacturing. If Haskell or Jerry or Julius went to a local department store and saw that corduroy-lined denim jackets were selling well, they'd come back to the factory and tell one of the stitchers to make one. If the stitcher wasn't sure how, they'd buy one of those jackets, tear it apart, and make a pattern out of it, then re-create it. Or if that seemed like too much trouble, they'd call one of their contacts at another factory, say, "Make us a corduroy-lined jacket," stamp their logo on it, and sell that. Madewell’s logo didn’t necessarily indicate who physically created the garment, but simply who was selling it.


"We didn't do too much of that designing bullshit," my great-uncle Aaron told me. Aaron is a warm, tough, stocky man whose crushing handshake hasn’t lessened in strength even as he ages into his eighties. As we talked at his kitchen table, looking out on wild turkeys strutting through his backyard in Dartmouth, Massachusetts, he would occasionally sing what I think is a line from “Memory,” from the musical Cats. "The only stuff we did in-house was the rough stuff,” he said. “Denim, brown duck pants, carpenter stuff." During Aaron's tenure, there were only ever around 25 stitchers at Madewell who actually made clothes. I asked Aaron who designed that stuff. "You copy somebody else's!" he laughed. "Come on, 'design.' It was not a fancy place, Dan. No such thing as 'designing.'"


Aaron bristled when I asked if the Madewell clothes were high quality — "Oh, yes, they were very well made," he said — but these weren't exactly pioneering designers crafting original clothing out of a deep passion. They weren't inventors or artists. They looked at what was selling and made some of that to sell. It was a business, and Madewell did what made sense from a business perspective. J.Crew’s Madewell is grasping to emulate some sepia-hued commitment to quality in the original company, some moral or ethical standard from better, more authentic times. But that’s not what motivated my great-grandfather at all — his motivation was profit, and quality was a means to an end.



Dan Nosowitz / BuzzFeed


New Bedford is one of the last towns you pass through as you drive eastward out to Cape Cod, which hooks out from the East Coast like a flexed arm. It’s located on the coast of Buzzards Bay, which carves a messy notch into the underside of Massachusetts. It would be uncharitable, but not inaccurate, to say that New Bedford is the armpit of Massachusetts.


Despite a cute, gentrified waterfront area and a few museums, the city is today one of the poorest and most dangerous in the state. Big brick factories, either barely used or totally vacant, are everywhere; the unemployment rate hovers above 10%. In the 1990s, the city attempted to rename the area the “South Coast,” because merely the name of New Bedford signifies decay, depression, and loss.


And still, New Bedford looks like a port city in the way that only New England towns can. Trim three- and four-story houses, mostly in sea-weathered gray, line the streets. Every turn seemingly leads to the water, the smell of which is everywhere. Huge stone levees, looking like the organized results of avalanches, do their best to protect the city from the Atlantic's wrath, and roads that cut through these levees are equipped with alarmingly heavy-duty iron gates, up to 20 feet high, that can close if water approaches.



Vintage Madewell jeans at Circa Vintage


Dan Nosowitz / BuzzFeed


Circa Vintage Wear on 73 Cove St. is airy and industrial, still chilly in the Massachusetts spring. The medium-size, mostly unmarked brick factory, just beside the ocean, smelled of old fabric and dust and wood shavings, a pleasant perfume that changes subtly as you move through the decades upon decades of vintage clothing and accessories. In one corner, a wall of nothing but circular hatboxes reached to the high ceiling. A twentysomething who would later buy a pair of shiny gold dress shoes examined an entire case of bow ties. Semi-broken old mannequins wearing everything from frilly white gowns to what looked like old high school marching band uniforms stood sentry in aisles of clothes from wildly disparate eras. In the racks, jammed up against what must have been dozens of other stories just as rich and as weird as mine, were a few pieces of original Madewell.


There were heavy-duty jumpsuits, which must have dated from the 1940s or 1950s. There was a denim jacket with a striped, sweater-like lining and a corduroy collar. There was a pair of Dickies-like blue chino work pants. There was a pair of bell-bottoms from the 1970s that could have been made by Levi's or Wrangler or lots of other big international brands — but the bell-bottoms, the jumpsuits, the jacket, and the work pants all boasted that label, that great logo, that stopped me dead in my tracks in New York years before.


Chris Duval opened Circa in 1986 and has been pretty much its sole employee ever since. Wearing a pale denim jacket and tough denim work pants, Duval is short and slender and speaks with a thick South Coast accent, which is somewhere between Boston and cartoon pirate, and all of his statements sound like they should end with an exclamation point. He told me that he likes to sit down with the people from whom he buys his wares and learn about the history of each piece.


"When this whole thing came about with J.Crew, I was devastated," he said, in the same tone that a fan of an indie band might have bemoaned signing to a major label in 1995. "When that happened, workwear was just coming back. So I thought, Oh, cool, they're gonna do a workwear line inspired by Madewell. But it has nothing to do with that! It's Chinese crap!"


Duval found the way J.Crew touted its connection to the original Madewell especially galling. "You go to the flagship store in New York and there's a big thing about New Bedford and its heritage, and I'm like, Oh, god, this is so sad!" Duval told me that he liked to put pictures of his original Madewell goods on Instagram and taunt J.Crew about its "Madewell in name only" clothes. "They're using the original brand to push something that has nothing to do with the original brand," he said.


I looked more closely at the flannel-lined denim jacket. It was cool, and vintage, and, being that my great-grandfather’s company made it, I’d have a great story behind it. I tried it on and immediately took it off. I looked like I was wearing a costume. I hadn’t realized how reliant my taste in clothes is on modern shapes; I didn’t at all care for the boxy, un-tailored fit of the jacket, the baggy sleeves, or the too-smooth washed denim. The jacket may have been my birthright, but it wasn’t my style.



Dan Nosowitz / BuzzFeed




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eBay And PayPal To Split Up

eBay will spin off PayPal into a separate company in 2015.


eBay has announced plans to separate itself into two distinct companies, eBay Inc. and PayPal.


eBay has announced plans to separate itself into two distinct companies, eBay Inc. and PayPal.


AFP / Getty Images JOSEP LAGO


After eBay convinced billionaire activist investor Carl Icahn to end his pursuit of a spinoff of PayPal in April, the company announced early Tuesday morning that it would make PayPal an independent company in 2015.


The split comes up as PayPal has made up a higher and higher portion of the combined company's revenues and transaction volume since being acquired in 2002. PayPal accounts for 42% of its about $17 billion in revenue in the last year, growing much faster than revenue from the core eBay marketplace business. In 2010, PayPal only accounted for a bit over a quarter of the combined company's total revenue.


The new company is likely to be a magnet for investors wanting a fast-growing stock based purely on payments. The company said in a presentation that the spinoff "Provides investors direct exposure to pure play commerce and payments businesses" and that it reached the decision to split the company following "On-going dialogue with broad group of investors," a likely reference to Icahn, who ended his activist assault on eBay with only the rights to appoint one board member, former AT&T CEO Dave Dorman, and to to talk with eBay in the future.


At the time, Icahn said, "Our record shows that our involvement with boards and management has greatly enhanced long-term value for all shareholders, and we hope and believe this will continue with eBay." Icahn owns about 2.5% of eBay's shares.


PayPal also has a collection of payment companies that have little to do with the main eBay business, run under Braintree, the payment processing company it bought in 2012 that is still run independently. Braintree owns Venmo, the popular peer-to-peer payment company. eBay said in a presentation that an independent PayPal would be a "payments leader with unmatched payments platform, global scale and risk management."


Investors cheered the announcement, with eBay stock up 9%, or $4.75, to $57.40 in pre-market trading.


The President and CEO John Donahoe, who in the fight with Icahn was very much the main spokesman for keeping the company together, said in a statement: "A thorough strategic review with our board shows that keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively. The industry landscape is changing, and each business faces different competitive opportunities and challenges."


The New York Times reported that Donahoe will step down after the spinoff.


He added: "eBay and PayPal will be sharper and stronger, and more focused and competitive as leading, standalone companies in their respective markets."




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Monday, September 29, 2014

Two Former Wells Fargo Employees Charged With Insider Trading

The SEC says the two, an analyst and a trader, worked together in an insider trading scheme. Both left Wells Fargo and still work in the financial industry.



Mike Blake / Reuters / Reuters


Two former Wells Fargo employees, an analyst and a trader, were charged by the Securities and Exchange Commission Monday with insider trading. The Commission said the two had a scheme to trade ahead of ratings changes by Gregory Bolan, the analyst. The SEC says they worked with a third person, referred to in the complaint as "Trader A," who died in 2013.


The SEC says that Bolan would tip off the Wells Fargo trader, Joe Ruggieri, about ratings changes he would make in the health care stocks he covered, generating some $117,000 in profits in Ruggieri's trading account from trades on six stocks that Bolan either changed his rating or initiated coverage on.


Brokers employ analysts who rate stocks as a service to their clients, and stocks tend to be rated either to outperform the market, perform with the market, or underperform the market. The third person, "Trader A" made over $10,000, the SEC says, by trading ahead of tips from Bolan.


The stocks were all health care stocks, like Athenahealth, the medical software company. The SEC alleges that on February 4, 2011, Bolan got approval to upgrade Athena's stock to "outperform" and "less than two hours later" called Ruggieri. The next trading day, February 7, Ruggieri purchased 13,500 shares, the SEC says. Athenahealth opened up over 5% after the report came out. When Ruggieri sold his position, he had profits of just over $40,000. Ruggieri worked in New York with Wells Fargo's trading operation, while Bolan worked in Nashville.


The SEC says that of the eight times Bolan changed his ratings or initiated coverage on a new company saying it would either outperform or underperform, Ruggieri "traded profitably ahead of six of these reports in a manner that did not fit in his typical trading pattern."


"The repeated nature of these violations demonstrates an utter disregard for our insider trading laws," the senior associate director of the SEC's New York office Sanjay Wadwha said in a statement.


Both Ruggieri and Bolan left Wells Fargo in 2011. Bolan left after "being questioned by Wells Fargo compliance personnel about communications he had with customers concerning his nonpublic research," the SEC says, while Ruggieri left after getting similarly examined, the SEC said. Both men are still employed in the financial industry doing similar jobs to the ones they were doing at Wells Fargo.


Bolan is a senior analyst and managing director at Sterne Agee, the privately-owned brokerage based in Birmingham. Ruggieri is a senior managing director and equities trader at ISI, the boutique research and brokerage firm based in New York. Ruggieri did not respond to a message left with an assistant.


Todd Decker, the chief marketing officer for Stern Agee said in a statement that "Mr. Bolan vigorously disputes the allegations made against him. In the American tradition, we believe Mr. Nolan to be innocent until proven otherwise."


There is a public record of both men being removed from their Wells Fargo jobs.


In a regulatory document, Ruggieri says he was terminated from Wells Fargo in April following a "loss of confidence due to failure to escalate issues regarding the inappropriate disseminiation of information." Ruggieri says that a "research analyst" would email the results of his research on companies and Ruggieri would forward the email to traders. He says that a client "questioned the timing" of these emails and that his supervisors "felt I should have elevated the issue."


After Bolan left Wells Fargo in April, 2011, he moved to Madison Williams, a boutique investment bank. According to his public broker registration documents, he left Wells Fargo following an "internal review regarding the selective dissemination of information and failure to preserve confidential information."


In the section where he can respond to the allegations, he says that he denies "engaging in any conduct involving fraud, the wrongful taking of property, or violating any investment related statutes, regulations, rules or industry standards of conduct." He started at Stern Agee in October, according to his registration with FINRA, the financial industry self-regulating organization. The trade magazine Institutional Investor named him a "Best Up & Comer" analyst in 2010.


The SEC said it "appreciates the assistance" of FINRA in its statement announcing the charges.


Todd Decker, the chief marketing officer of Stern Agee said in a statement that "Mr Bolan vigorously disputes the allegations made against him. In the American tradition, we believe Mr. Bolan to be innocent until proven otherwise."




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Bagel Buyout Nets Einhorn's Greenlight Capital Some Serious Dough

But the hedge fund titan, who had been an investor in Einstein Noah Restaurant Group since the bagel maker’s IPO in 2007 had been in a money-losing stock and had sold out of a total of 4 million shares over the years.



Azurita/Azurita


It was a long road to turning bagels into big bucks for hedge fund titan David Einhorn, but with Monday's announcement that a German firm would orchestrate a buyout of The Einstein Noah Restaurant Group, in which Einhorn's fund Greenlight Capital is a major investor, it looks as though Einhorn is finally going to make some serious dough.


According to Securities and Exchange filings for Greenlight, the fund owns around 6.7 million shares of Einstein Noah, which it has held from the company's beginnings on the public market, when it IPO'ed in June 2007 at $18 per share. That means that on the shares Greenlight currently holds alone, the fund made more than $15 million since the IPO, as the German holding company JAB announced its proposed $347 million acquisition of the bagel maker at the price of $20.25 per share.


The news made shares of Einstein Noah, which had been trading around the $13 mark, jump 50% at market opening on Monday to $20.11 each on the news. In a statement, Einhorn called the buyout deal "a win-win for all parties" and said that Greenlight had been working with the struggling company for more than a decade on an improvement strategy.


Indeed, Einstein Noah's stock had struggled to stay above its $18 per share pricing in the more than seven years since its IPO, only cracking that number twice since early 2008, and hovering around the $15-per-share mark for years. Einhorn's fund even sold out of a total of 4 million shares, ditching 1.5 million and 2.5 million of them in the third and fourth quarters of last year, respectively, according to filings.




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By Tracking "Exposure" Over Pageviews, One Startup Could Change How Ads Are Sold Online

Chartbeat today said the Media Ratings Council has accredited the company as a measure for tracking audiences. It includes two new metrics: “active exposure time” and “lifetime exposure.”



Chartbeat


Chartbeat, a startup best known for live readings of how many people are visiting something on the web, said today it had been accredited by the Media Ratings Council.


Chartbeat joins other audience-tracking services like Nielsen and Google in being accredited by the MRC, an independent body that sets standards for audience measurement. The company has also been accredited for two measures not often cited: "active exposure" and "lifetime exposure." While much of the web settles on other measures of engagement, Chartbeat is essentially tracking how long someone is actually reading the site.


The idea is that instead of relying on traditional advertising models — such as selling ads in batches based on the cost per impression (how many people visit the site) or cost per click (how many people click on the ad) — advertisers can begin buying blocks of time where visitors are actively looking at a site. Targeting and tracking data has improved dramatically over time, which has led advertisers to become stricter about the metrics they focus on in terms of delivering advertising performance, and this may represent another new vector to explore.


"What is ultimately true is there is a clear relationship with attention and recall and general advertising performance," Chartbeat CEO Tony Haile said. "That's been shown by Google, to Microsoft, to Chartbeat. If you're an ad agency who is ignoring this kind of attention data, you are misallocating your client's capital. You're spending money on ads that don't work on ads that do work, now you can tell the difference."


Companies like Facebook have already begun selling advertisements based on "objective," where the company tries to rank ads in order to maximize the chance that objective is met without dramatically impacting a user's experience. Sharing, commenting, and liking are all used as metrics for determining engagement, and being able to track someone viewing an ad in real time could prove to be a more effective measurement.


Much of the publishing industry is still searching for life after the pageview, the resilient standard for audience measurement for the past several decades. In a hypothetical future where Chartbeat's metrics are standard, advertisements would be priced according to how engaged users are on a site, leading to more accurate ad pricing and better targeting.




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American Apparel Picks New Interim CEO Amid Charney Investigation

The company said its other interim CEO will resign without explaining why. It also announced a new CFO.



Jonathan Alcorn / Reuters


American Apparel has selected a new interim chief executive officer and a new chief financial officer as its investigation of ousted founder Dov Charney continues.


The company said in a statement today that John Luttrell, its CFO who was temporarily serving as interim CEO, is resigning. American Apparel didn't say why he's leaving the company. The company also announced new presidents for its retail and wholesale divisions.


American Apparel's new interim CEO will be Scott Brubaker, a managing director at consultancy Alvarez & Marsal. That company's website says Brubaker, 43, "specializes in business diagnostics, plan development and financial strategies for corporate turnarounds, acquisitions and restructurings." He has worked at companies including Eddie Bauer, Woodside Homes and Sunshine Biscuits.


The company's new CFO Hassan Natha, 55, has worked at Fisher Communications and Jones Soda Co.


American Apparel fired founder and CEO Dov Charney in June on a long list of allegations, including sexual harassment and misuse of corporate assets, according to his termination letter, which was obtained by BuzzFeed News.


Charney has been serving as a consultant at the company while a board committee looks into allegations against him to figure out what, if any, his future role at American Apparel will be.


He has been largely removed from the public eye after a couple of initial interviews in which he proclaimed his innocence and called the board's accusations baseless.


Contact the reporter on this story at sapna.m@buzzfeed.com.




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Sunday, September 28, 2014

Your Favorite Old And New Music Videos Are About To Get A Brand Makeover

Universal Music Group, the world’s largest record label, advertising agency Havas, and ad tech company Mirriad have teamed up to weave advertising campaigns directly into streaming music videos, including ones from years ago.


This is a still image from Avicii's 2013 video for "You Make Me."


This is a still image from Avicii's 2013 video for "You Make Me."


Universal Music Group


This is the same image from the same video. Notice any difference?


This is the same image from the same video. Notice any difference?


Universal Music Group




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Facebook Opens Up Some Targeting Data To Its Other Ad Platform, Atlas

The company acquired Atlas in 2013 from Microsoft. Now, that service will be able to deliver more targeted ads using Facebook’s data.



Facebook


Facebook said Sunday it was relaunching its advertising platform Atlas, and extending anonymized data it has on its users to Atlas in order to serve better ads off of Facebook.


Basically, it means Facebook's targeting data will be available to advertisers that aren't advertising just on Facebook, but are also using its advertising platform Atlas that it acquired in 2013 for Microsoft. Historically, advertisers off Facebook have had to rely on "cookies," or digital markers left by websites on a device. Cookies are increasingly unreliable as more users begin to use mobile devices like smartphones and tablets, leading to many major advertising providers — like Facebook and Google — searching for alternatives. Omnicom will be one of the first advertising providers working with the new data on Atlas.


"It solves a huge issue for us, which is mobile, it's not really cookie-based," Omincom Digital CEO Jonathan Nelson told BuzzFeed News. "But when you log into Facebook they know who you are, they get at the mobile issue, which is a particular pain point. We've gone more and more blind as to who they are, but the advertising on mobile is generally not as focused as it would be on the desktop. They start to get a long way to solving those problems."


When a user logs into Facebook on a device, the company is able to tie a device identifier to a specific Facebook account, creating a "real identity" for that device. Then, when an advertiser using Atlas sets up a campaign targeting users that meet a specific criteria — such as age or gender — Atlas serves ads targeted to those users in apps and on sites off of Facebook.


In this sense, Atlas serves as a mediation platform. Facebook tells Atlas what data it has on a specific user, and then when an Atlas advertiser asks for a specific demographic that has more advanced targeting built in, Facebook will deliver the advertiser a batch of anonymized users that are targeted to that. Facebook does not, the company said, hand any identifying user data over to Atlas advertisers.


Facebook's strength as a home for advertisements is the data it has on its users. In that sense, Facebook is able to maximize the value for its advertisers by targeting campaigns at a much more specific level — say, users that specifically like tennis shoes and have installed the Nike app — than any previous advertising platform. Facebook's advertising ranking in News Feed is dependent on not only the value for the advertiser, but also the impact on its engagement for users, as BuzzFeed News has previously detailed.


Thus, opening up that data — particularly for an ad serving service owned by Facebook, which would be a natural step — means a wider swath of advertisers can get access to that targeting data across more devices. Better-targeted ads are then worth more because the users that engage with those ads — either by buying something or watching a video, or the like — are higher-quality and tend to drive more value for advertisers. And Atlas users won't confuse different people on different devices, which might lead to poorly targeted ads.


"It makes a lot of sense, they're getting us a lot closer to individuals, and at Omnicom we've talked about putting the right message in front of the right person at the right time on the right platform is what matters," Nelson said. "Facebook is going to allow us to do exactly that, right person, right time, right message on right platform with known consumers."




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Saturday, September 27, 2014

Massachusetts Lemon Law – Free Attorney Help




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Friday, September 26, 2014

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Goldman Bans Employee Stock Trading Following "This American Life" Broadcast

Investment bankers will no longer be able to trade individual stock and bonds.



Lucas Jackson / Reuters


Following a blockbuster report by ProPublica and This American Life alleging that the New York branch of the Federal Reserve, which supervises many of the largest banks, was meek, lackadaisical, and captured by the banks it was supposed to supervise, one of those banks, Goldman Sachs, has changed its policy on employees owning stocks and bonds.


Goldman employees' ownership of other companies' shares has lead to accusations from critics and shareholders of companies working with Goldman Sachs of conflicts of interest.


Investment bankers at Goldman will no longer be able to trade individual stocks or bonds or invest in so-called "event" driven hedge funds — hedge funds that buy up shares of a company speculating that the price will change because of an imminent corporate action like a merger, bankruptcy, or stock sale — or "activist" funds, hedge funds that buy up large stakes of a company and then try to overhaul their operations in order to drive up the stock price. Companies in disputes with activist investors often hire investment banks like Goldman to help advise them.


Before today's policy chnage, the firm's investment bankers needed company approval before owning individual securities. Bloomberg first reported the changes. A source with knowledge of the policy said bankers would not be forced to sell any existing stocks and bonds and that the policy change had been in discussion for months. The source said the change was intended to address potential conflicts of interest.


The move is part of a series of public and private efforts to improve the bank's reputation with clients and the public following the financial crisis. At a conference last year, the bank's chairman and chief executive officer Lloyd Blankfein said that the firm had decided a few years ago that "we would make our firm better, and put energy into a examination of every behavior we have" and that "there has been a substantial change, some part of it out of the goodness of people's hearts, some of it out of awareness" of the public's perception of the bank.



Lloyd Blankfein, chairman and CEO of Goldman Sachs.


Lucas Jackson / Reuters


The ProPublica report and This American Life broadcast, both released this morning, focused on the short career of Carmen Segarra, a former Wall Street lawyer who joined the New York Fed in 2011 and became an in-house examiner of Goldman Sachs. Its based on 46 hours of recordings Segarra surreptitiously made of her interactions with colleagues and bankers. Michael Lewis, the bestselling author of The Big Short and Flash Boys, described the story as the "Ray Rice video of the financial sector."


She almost immediately started clashing with her colleagues and her superiors, finding the Fed lackadaisical, meek, and not willing to aggressively confront the banks it supervised even when they thought they were doing something wrong. She was fired seven months later after a disagreement over whether or not to say in a report that Goldman Sachs did not have a conflict of interest policy, which was a guideline for institutions supervised by the New York Fed.


A Goldman executive told Segarra that the bank did not have a definition of what a conflict of interest was. But her supervisors disagreed over whether Goldman had a conflict of interests policy at all, pointing to a section of their code of conduct that discussed conflicts more generally. Two weeks later, she was fired. The New York Fed said in a statement that Segarra's termination "was based entirely on performance grounds, not because she raised concerns as a member of an examination team about any institution."


Segarra sued the New York Fed and several of its employees last year alleging she had been terminated for revealing a violation of the law and that she was eligible for whistleblower protection. A federal judge threw out the case in April saying that whether or not Goldman had a conflict of interest policy did "not carry with it the force of law." Segarra is appealing the ruling.


In a response to ProPublica, Goldman said it had "long had a comprehensive approach for addressing potential conflicts" and pointed to its Code of Conduct and its Business Standards Report, both of which, the spokesman said, were accessible through "a quick Google search."


Goldman has been particularly bedeviled by accusations of having conflicts of interests and profiting at the expense of its clients.


Carmen Segarra in her time at the New York Fed raised the question about whether or not Goldman had a conflict of interest policy when she was examining the bank following its advisory work for energy company El Paso, which was bought out by the pipeline behemoth Kinder Morgan for $2.1 billion in 2011. Disgruntled El Paso shareholders then sued, arguing they had been shortchanged by Goldman and that the bank could have pushed Kinder Morgan to pay more. Goldman had a substantial stake in El Paso and a Goldman banker who worked on the deal had a $340,000 stake in Kinder Morgan, meaning the firm's private equity arm and one of its bankers would benefit from Kinder Morgan getting a lower price.


In December 2012, a Delaware judge approved a settlement where Kinder Morgan forked over another $110 million to El Paso shareholders. Kinder Morgan is paid the $110 million to El Paso shareholders and Goldman gave up its $20 million fee. The judge, Leo Strine, said that the deal "should not have gone down how it did."


Goldman also reached one of the largest settlements in the history of the Securities and Exchange Commission over allegations that it had helped arrange a complex security based on bonds constructed out of mortgages. Goldman paid $550 million in the settlement and one of the bankers in the deal, Fabrice Tourre, was held civilly liable for fraud after a trial where Goldman paid his legal bills.




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Do You Know How Big Yahoo's Business Really Is?

Yahoo is currently worth around $40.5 billion. But its core advertising business is worth less than $7 billion, according to Wall Street.



Denis Balibouse / Reuters


Yahoo, like Facebook and Google, makes money off online advertising.


But unlike those companies and others, Yahoo's online advertising business has been stagnant for years. That's led many of Yahoo's investors to remain in the company not for the sake of its business, but for the sake of its stake in Chinese e-commerce giant Alibaba.


Yahoo still has a roughly 15% stake in Alibaba, which is worth around $34.8 billion. The company also has a stake in Yahoo Japan worth $8.2 billion, according to data compiled by Bloomberg. In addition, Yahoo sold 140 million shares (including additional shares as part of the IPO's "greenshoe") in Alibaba's IPO at $68, netting the company about $9.5 billion.


As the Wall Street Journal points out, if these were all taxed based on the 38% capital gains rate, the contribution of its Asian assets and the Alibaba windfall to Yahoo's worth would be around $33.1 billion. Yahoo also had around $1.1 billion in cash and cash equivalents at the end of June, according to its most recent earnings release. That would leave Yahoo's core advertising business worth around $6.3 billion — far less than its current market capitalization of $40.5 billion.


This makes Yahoo not a very big online advertising business at all, compared to giants like Facebook and Google. That's partially why some activist investors are now suggesting that Yahoo buy AOL, another company that makes money off online advertising, to beef up its business. Shares of Yahoo are actually up about 5% in trading today.


So, with that in mind, can you guess if the $6.5 billion value of Yahoo's core business is worth more or less than:




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8 Times Since 2008 That Yahoo And AOL Were Rumored To Be Doing A Deal

Again and again and again, all the way back to 2008.



Robert Galbraith / Reuters



Andrew Kelly / Reuters


"The past is never dead. It's not even past," wrote William Faulkner, who could have been talking about yet another round of people calling for a merger between Yahoo and AOL.


AOL shares are spiking after activist hedge fund Starbaord Value, famous for its crusade against the management of Olive Garden owner Darden Restaurants, wrote a letter to the board of Yahoo saying it should consider a combination with AOL.


The idea is not a new one. Or an original one. The proposed pairing seems to pop nearly ever year, with advisors, company executives, or private equity investors pushing for a deal. The shares of both companies are notoriously sensitive to any rumors or speculation on a merger and have been driven up by just analyst notes saying a deal is a possibility, even if they cite no real news.


Helping fuel the speculation this time are Yahoo's formidable cash reserves — bolstered by their large holdings of Chinese e-commerce giant Alibaba — as well as the fact that the companies two chiefs, Marissa Mayer at Yahoo and Tim Armstrong, are both veterans of Google. The two companies also are in the same flagging business — general interest web properties with huge traffic numbers supported by display ads.


Here's a complete history of the rumors, which stretch back to at least 2008.




View Entire List ›




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Yahoo Should Consider A Deal With AOL, Says Hedge Fund

The activist hedge fund grabbing headlines recently for its engagement with Olive Garden took a “significant” stake in Yahoo and sent a letter to CEO Marissa Mayer encouraging her to consider a possible merger with AOL.



Ruben Sprich / Reuters


Here we go again.


Another large investor is calling for the possible merger of Yahoo and AOL, and has taken a "significant stake" in the former to pressure management into a deal. Starboard Value, most recently grabbing headlines for waging an increasingly aggressive campaign to unseat the entire board of Olive Garden parent Darden Restaurants, announced Friday that it had taken the stake in Yahoo and sent a letter to CEO Marissa Mayer offering its thoughts on why a merger with AOL would be in shareholders' best interest.


This isn't the first time the Yahoo-AOL merger idea has been recommended. Last week AOL shares spiked on speculation over whether the company was an attractive acquisition target for Yahoo, based on an analyst note.


The two companies, at their core, produce online content across a variety of verticals. Most recently, Yahoo has hired high-profile personalities like the New York Times' David Pogue, as well as Katie Couric, as part of its new strategy around "digital magazines."


Starboard's letter asserts a deal with AOL could create cost saving synergies of up to $1 billion. The hedge fund also wants to slow what it calls Yahoo's "aggressive" acquisition strategy that has seen $1.3 billion in deals since the second quarter of 2012.


This also isn't Yahoo's first bout with an aggressive activist hedge fund. Dan Loeb of Third Point Partners successfully agitated for a seat on the company's board in 2012, and ultimately spearheaded a campaign to replace then-CEO Scott Thompson with Mayer.


Shortly after Mayer began her new role, Yahoo closed a $7.6 billion buyback deal with Alibaba, which it bought for $1 billion in 2005.


And after Alibaba went public last week, Yahoo received a huge infusion of cash as part of its stake in the company, half of which it has pledged to return to shareholders. However, now that the Chinese e-commerce giant has gone public, eyes are once again on Mayer and her turnaround of Yahoo. For the past several years, the company's online advertising business has stagnated, and while Mayer has been able to sate shareholders by returning value from the company's Alibaba stake, she still has to find a future for Yahoo after Alibaba.




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This CEO Quit His Job After His Daughter Gave Him A List Of All The Moments In Her Life He Had Missed

“As much as I could rationalise it – as I had rationalised it – my work-life balance had gotten way out of whack, and the imbalance was hurting my very special relationship with my daughter.”


When Mohamed El-Erian quit his job as chief executive of the investment fund Pimco, one of the biggest in the world, it was thought to have been due to an internal dispute.


When Mohamed El-Erian quit his job as chief executive of the investment fund Pimco, one of the biggest in the world, it was thought to have been due to an internal dispute.


However, he has now revealed the real reason – his 10-year-old daughter.


Shannon Stapleton / Reuters


About a year ago, I asked my daughter several times to do something – brush her teeth I think it was – with no success. I reminded her that it was not so long ago that she would have immediately responded, and I wouldn't have had to ask her multiple times; she would have known from my tone of voice that I was serious.


She asked me to wait a minute, went to her room and came back with a piece of paper. It was a list that she had compiled of her important events and activities that I had missed due to work commitments. Talk about a wake-up call.


He added: "The list contained 22 items, from her first day at school and first soccer match of the season to a parent-teacher meeting at a Halloween parade. And the school year wasn’t over."


He added: "The list contained 22 items, from her first day at school and first soccer match of the season to a parent-teacher meeting at a Halloween parade. And the school year wasn’t over."


"I felt awful and got defensive: I had a good excuse for each missed event! Travel, important meetings, an urgent phone call, sudden to-dos… But it dawned on me that I was missing an infinitely more important point.


"As much as I could rationalise it – as I had rationalised it – my work-life balance had gotten way out of whack, and the imbalance was hurting my very special relationship with my daughter. I was not making nearly enough time for her."


Phil Mccarten / Reuters


Thanks to giving up his job at Pimco, the Oxford- and Cambridge-educated investor said, he was now travelling less and had considerably more flexibility, which he hoped would allow him to experience more moments with his daughter.


"I now alternate with my wife in waking up our daughter every morning, preparing her breakfast and driving her to school. I'm also around much more often to pick her up after school and take her to activities. She and I are doing a lot of wonderful talking and sharing. We've even planned a holiday together, just the two of us."




View Entire List ›




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Billionaire "Bond King" Bill Gross Leaves PIMCO For Janus

This comes after months of internal turmoil and an SEC investigation into how a fund Gross managed priced its assets.



Jim Young / Reuters


The bond king has been dethroned.


After more than 40 years years leading PIMCO, the Newport Beach-based asset management arm of the German insurer Allianz which he founded in 1971, Bill Gross is now leaving under a cloud of poor performance, one very high level defection, and a Securities and Exchange Commission investigation into how a fund he managed was pricing its assets.


He will be going to Janus Capital Group, a far smaller investment company based in Denver, although he will be opening a Newport Beach office for the firm, the company said in a statement. Janus, in total, manages $177.7 billion worth of assets. Bill Gross's Total Return Fund, just one fund among many at PIMCO, manages $222 billion worth of assets while PIMCO in total manages about $2 trillion worth of assets. Gross himself has a net worth of $2 billion, according to Forbes.


PIMCO confirmed yesterday, following a report in the Wall Street Journal , that it was cooperating with an SEC investigation of the company. The Journal reported that the investigation was into how an exchange-traded fund run by Gross, the Pimco Total Return Exchange-Traded, valued its assets. According to the Journal, the SEC was examining how PIMCO would buy assets like mortgage-backed securities in small or "odd" lots and then immediately mark the assets values higher and book an instant positive return so as to report immediate positive investment performance. The fund is worth some $3.6 billion, far smaller than PIMCO's flagship Total Return Fund.


Gross has also been dealing with poor performance relative to bond benchmarks and even other PIMCO funds and was rocked by the abrupt departure of his number-two Mohamed El-Erian, widely assumed to be the 70-year-old Gross's successor. Since El-Erian's departure Gross appointed six deputy chief investment officers to help run the firm's investments while El-Erian took a role as an advisor to Allianz, PIMCO's parent company.


Janus said in a statement that Gross will start working there Monday and managing his new fund, the Janus Global Unconstrained Bond Fund, in early October.


"Bill Gross has an exemplary track record with decades of success and he will offer an exceptional approach to navigating today's increasingly risky markets with a focus on macro, unconstrained strategies," Janus CEO Richard Weil said in a statement. "His involvement provides Janus a unique opportunity to offer strategies and products that are highly complementary to those already managed by our credit-based fixed income team."


Shares of Allianz's, listed in Germany, were down 2.56% while shares in Janus on the New York Stock Exchange are up 36%, or $4, in pre-market trading.




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1 person dead after Oregon State Police SWAT Team raids Yachats-area home related to assault case




One person was shot and killed after Oregon State Police searched a Yachats-area home in June 2012. The SWAT Team searched the home in relation to an assault…


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Thursday, September 25, 2014

Premises Liability Attorney Medford Township, NJ | 866-401-4954 | Injury Lawsuit




Premises Liability Attorney Medford Township, NJ | 866-401-4954 | Injury Lawsuit Premises liability simply means it’s an accident that occurs on property own…

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When you are in need of a social security disability attorney in Medford ma in Medford or surrounding Oregon areas call Brandon Rennie and Rennie Law, LLC.

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