divide and conquer
Posted by Barry Silverstein on August 16, 2012 11:09 AM
Look at the current M&A (Mergers & Acquisitions) scene in U.S. business and you'll see signals, especially in the food industry, that big conglomerates are falling out of favor:
- In June, Sara Lee jettisoned its famous name, splitting the company into two units: Hillshire Brands, focusing on mostly meat products, and D.E. Master Blenders 1753, a European maker of coffees and teas.
- Last week, the country's largest dairy company, Dean Foods, said its Whitewave unit, which accounts for about 40 percent of Dean's operating income, would split from the company and file an IPO. Whitewave produces Horizon Organic milk and the Silk brand, which includes soy and almond milk, products that have been growing faster than Dean's regional milk brands.
- In October, the giant Kraft Foods will split the company in two, separating its U.S. business (Kraft Foods Group) from its international snack foods business (Mondelez International).
Corporate breakups are on the rise, according to Bloomberg Businessweek, which reports that there were 19 U.S. corporate public company spinoffs in 2011 vs. 16 in 2010. Eleven spinoffs have already been finalized in 2012 and thirteen more have been announced. Continue reading...
Posted by Dale Buss on September 19, 2011 09:01 AM
Disney sees Lion King 3-D dominate weekend box office.
Netflix separates movie-streaming and DVD-delivery services, renames DVD biz Qwikster; CEO says he "messed up."
AT&T and Coca-Cola set out to reinvent web audience measurement as Coke varies its bottle sizes.
Alfa Romeo delays U.S. return, spooking Fiat dealers who are counting on selling the brand.
Airbus raises forecast for aircraft demand.
AP launches mobile version of Sunday newspaper FSIs.
Blackstone teams up with Prestige Brands on GlaxoSmithKline unit bid.Continue reading...
you never give me your money
Posted by Sheila Shayon on August 31, 2011 04:02 PM
One-quarter of the 100 highest-paid US CEOs' compensation last year surpassed the federal income tax paid by their companies.
Given America's staggering national debt, that statistic — from a new report by the Institute for Policy Studies — has touched off a firestorm led by Democratic Representative Elijah Cummings, ranking member of the Committee on Oversight and Government Reform, who called for hearings on executive compensation.
The IPS report on executive pay found the 2010 average compensation for those 25 execs was $16.7 million. Brands topping the list include:
* eBay, whose CEO John Donahoe made $12.4 million, but which reported a $131 million refund on its 2010 current U.S. taxes.
* Boeing, which paid CEO Jim McNerney $13.8 million, sent in $13 million in federal income taxes, and spent $20.8 million on lobbying and campaign spending.
* GE, where CEO Jeff Immelt earned $15.2 million in 2010, while the company got a $3.3 billion federal refund and invested $41.8 million in its own lobbying and political campaigns.
According to Reuters, Cummings has asked the committee "to examine the extent to which the problems in CEO compensation [have] led to the economic crisis,” and "why CEO pay and corporate profits are skyrocketing while worker pay stagnates and unemployment remains unacceptably high."Continue reading...
Posted by Shirley Brady on May 18, 2011 06:00 PM
Angry Birds maker Rovio aims for IPO within 2-3 years.
Arnold Schwarzenegger scandal seen as affecting his political, not entertainment, brand.
Apple and Google askeded to FCC location tracking forum.
Clearwire taps Ericsson to take over network management.
General Mills to buy controlling stake in Yoplait.
Hershey CEO switches to Del Monte.
LinkedIn sets IPO at $45/share for $350 million.Continue reading...
Posted by Dale Buss on April 13, 2011 09:00 AM
AT&T introduces first prepaid smartphone with LG.
BP readies to argue about financial assessment of Gulf spill damage, and scrambles to save deal with Rosneft.
Cisco cheered on Wall Street for killing the Flip video camera.
JPMorgan quarterly profit surges.
Kroger fuels up gas-reward program.
Levi Strauss plans to bring Denizen jeans brand to U.S. after Asian success.
Method launches new green campaign.Continue reading...
Posted by Dale Buss on April 11, 2011 09:00 AM
Airbus says Mideast unrest could wipe out up to 40% of orders.
Alfa Romeo delays planned return to US.
BlackBerry-maker Research in Motion plots a rebound.
BP flounders in Russia.
CBS prepares to part ways with Katie Couric, as Couric and Matt Lauer explore reteaming for a daytime syndicated talk show.
Charlie Sheen gets two standing ovations in NYC Sunday after bombing Friday.
Christian Louboutin sues Yves Saint Laurent for allegedly violating trademark red sole.Continue reading...
that's all, folks
Posted by Barry Silverstein on May 5, 2010 10:05 AM
Enron will be remembered as one of the most colossal brand failures in American business.
The high-flying energy company built on a house of cards was scandalized and collapsed in 2001. It set off a chain reaction that led to the revelation of corporate malfeasance in the same time period involving such substantial companies as Arthur Andersen, Dynegy, Halliburton, Tyco, and Worldcom.
Now Enron has collapsed again, this time on Broadway. The much-publicized play, based on Enron's rise and fall, opened in London (above) to mixed reviews and was unable to sustain any kind of traction when it opened in New York last week. It will end its run this Sunday.
Ironically, Enron had just garnered four Tony nominations, but not for Best Play. By the time it closes, the extravagant production will have run just twelve days.Continue reading...