Sunday, May 6, 2012

Murdoch scandal follows classic media baron script

FILE - In this Oct. 14, 2011 file photo, News Corp. CEO Rupert Murdoch delivers a keynote address at the National Summit on Education Reform in San Francisco. If the phone hacking scandal gripping Rupert Murdoch's News Corp. empire has a familiar ring, it might be because you've heard the story before. Scrappy outsider turns modest newspaper business into international media conglomerate. Ambition turns to hubris. Mogul dramatically falls from grace. (AP Photo/Noah Berger, File)

FILE - In this Oct. 14, 2011 file photo, News Corp. CEO Rupert Murdoch delivers a keynote address at the National Summit on Education Reform in San Francisco. If the phone hacking scandal gripping Rupert Murdoch's News Corp. empire has a familiar ring, it might be because you've heard the story before. Scrappy outsider turns modest newspaper business into international media conglomerate. Ambition turns to hubris. Mogul dramatically falls from grace. (AP Photo/Noah Berger, File)

FILE - In this July 23, 2010 file photo, former media mogul Conrad Black arrives at the federal courthouse for a hearing in Chicago.If the phone hacking scandal gripping Rupert Murdoch's News Corp. empire has a familiar ring, it might be because you've heard the story before. Scrappy outsider turns modest newspaper business into international media conglomerate. Ambition turns to hubris. Mogul dramatically falls from grace. Before Murdoch came Robert Maxwell and Conrad Black, both of whose careers at the top of the British media establishment ended in disgrace. (AP Photo/Kiichiro Sato, File)

FILE This Sunday, Jan. 15, 2012, file photo shows Rupert Murdoch and his wife Wendi arrive at the 69th Annual Golden Globe Awards in Los Angeles. If the phone hacking scandal gripping Rupert Murdoch's News Corp. empire has a familiar ring, it might be because you've heard the story before. Scrappy outsider turns modest newspaper business into international media conglomerate. Ambition turns to hubris. Mogul dramatically falls from grace. (AP Photo/Matt Sayles, File)

LONDON (AP) ? If the phone hacking scandal gripping Rupert Murdoch's News Corp. empire has a familiar ring, it might be because you've heard the story before. Scrappy outsider turns modest newspaper business into international media conglomerate. Ambition turns to hubris. Mogul dramatically falls from grace.

From William Randolph Hearst to Rupert Murdoch, many media barons' stories follow a familiar arc.

"He's one of a series," said James Curran, a professor of communications at Goldsmiths University in London. "He seems to me to be in the same press baron tradition."

Before Murdoch came Robert Maxwell and Conrad Black, both of whose careers at the top of the British media establishment ended in disgrace. Before those two came Lord Beaverbrook, the Daily Express owner whose excesses were lampooned by Evelyn Waugh in his 1938 novel "Scoop."

Earlier still was the New York Journal's William Randolph Hearst, who has become linked to the swashbuckling maverick at the center of Orson Wells' 1941 classic "Citizen Kane."

There are huge differences: Unlike Black and Maxwell, Hearst, Murdoch, and Beaverbrook stayed successful. The Hearst Corp. is 125 years old; News Corp. is worth $60 billion; there's still a statue to Beaverbrook in his Canadian hometown of Fredericton.

But there are important parallels, too.

Britain's media tycoons came from abroad ? Australia, Canada, or Eastern Europe ? and rapidly became establishment figures, winning wealth, titles, and friends in high places.

Then, eventually, came the fall.

Beaverbrook's attempt to create his own political party was knocked back in the 1930s, and he found himself cast adrift following the defeat of close ally Winston Churchill in 1945.

Black's and Maxwell's careers were blighted by criminality. Maxwell, having raided his newspaper's pension fund, drowned under murky circumstances in 1991; Black was only released Friday from a U.S. prison following a 2007 conviction for cheating his shareholders.

Once one of the most powerful forces in British politics, courted by Labour and Conservative leaders alike, Murdoch also has seen his clout wither amid the scandal over illegal eavesdropping at his News of the World tabloid.

Revelations of widespread illegality there have led to the arrests of dozens of journalists and media executives, the resignations of high-flying political operatives and police leaders, and hundreds of millions of dollars in legal costs.

The narrative of the hacking scandal may echo earlier stories of overreach, but Murdoch's story has little to do with those of Black or Maxwell, said Tom Bower, who has written biographies of the latter.

"There is a sharp difference," said Bower, explaining that Murdoch built "a huge and successful business" based on hard work and sharp elbows, while his competitors failed because they had created "flimsy businesses based on fraud."

Murdoch's story bears a stronger resemblance to Beaverbrook, a turn-of-the-century entrepreneur who would help revolutionize London's Fleet Street newspapers, according to Jacques Poitras, the author of "Beaverbrook: A Shattered Legacy."

Born William Aitken in the small maritime province of New Brunswick, Beaverbrook had a modest start selling insurance and magazines door to door before moving on to bond promotion and striking it rich.

He moved to England, where he was knighted, invested in the populist Daily Express, and ? with the help of innovations such as crossword puzzles, gossip columns and society pages ? turned it into the biggest-selling paper in the English-speaking world. That title was later claimed by Murdoch's News of the World.

"Both men published fabulously successful newspapers, and they were good at it," Poitras said. "They knew what people wanted (and) they delivered it."

Beaverbrook became fantastically influential, serving as a powerful Cabinet minister and Churchill adviser.

"His power in the 30s and 40s in London was unmatched," said Poitras. "I don't know if you could have someone of that clout now. ... Murdoch is the only one who seems to have made waves in the same way."

Compared to Beaverbrook and Murdoch, Maxwell and Black are a "second division of press baron," said Curran, the professor of communications.

Black, a member of the Canadian elite, eventually came to own The Daily Telegraph, the Jerusalem Post, and a string of U.S. and Canadian newspapers before his embezzlement plunged his empire into crisis.

Maxwell's rags-to-riches-to-ruin story is in some respects more compelling.

Born into an Orthodox Jewish family in the destitute Carpathian mountain region of what was then known as Czechoslovakia, Maxwell narrowly escaped a Nazi concentration camp to move to London. He set up a successful publishing company and moved into politics, throwing his support behind the left-wing Labour Party.

As early as 1969, there were signs of trouble. Britain's trade department investigated Maxwell in the wake of a botched takeover deal, branding him unfit "to exercise proper stewardship of a publicly quoted company" ? nearly the same language used by Labour lawmakers to condemn Murdoch in a critical report on phone hacking published last week.

Maxwell survived the trade investigation, spending the next two decades expanding his empire and racking up an enormous pile of debt. By the time his body was recovered from the waters off the Canary Islands ? no one knows precisely how he died ? his company was more than 2 billion pounds in the red.

Murdoch, who outmaneuvered Maxwell and Black to stay at the top of the British newspaper scene, has so far avoided falling into the same abyss that swallowed his competitors. Even his most strident critics don't accuse him of anything worse than "willful blindness." He remains at the head of a fabulously successful media company, responsible for record-smashing films like "Avatar" or TV hits such as "The Simpsons," and News Corp.'s share price is riding high.

His influence in Britain, however, has undeniably suffered. Politicians who once scrambled to kiss his hand are now lining up to boast about how independent they were. Prime Minister David Cameron, who in 2008 flew out to the tycoon's yacht to seek his blessing, acknowledged last week that "we all did too much cozying up to Rupert Murdoch."

In that respect, Murdoch's isolation ? in Britain at least ? seems redolent of the last scene of Citizen Kane: Successful, wealthy, but unloved.

Associated Press

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Internet group: Quality over speed in new domains

NEW YORK (AP) ? The organization in charge of expanding the number of Internet address suffixes ? the ".com" part of domain names ? is apologizing for delays but says it's favoring "quality, not speed."

Three weeks ago, the Internet Corporation for Assigned Names and Numbers abruptly shut down a system for letting companies and organizations propose new suffixes, after it discovered a software glitch that exposed some private data. At the time, ICANN planned to reopen the system within four business days. The system remains suspended indefinitely.

"We've very focused on the quality of what we do," ICANN CEO Rod Beckstrom said. "We take this very seriously. That's why we're moving very methodologically and professionally."

In an interview with The Associated Press this week, Beckstrom added, "We apologize for the delay, but we're committed to getting this right."

ICANN has said it needed time to figure out why the software failed and how to fix it. That was completed last week, Beckstrom said, but ICANN still must undergo extensive testing on the fixes and inform companies and organizations whose data had been exposed. He declined to offer a timetable; ICANN said Friday that it planned to provide an update after Tuesday.

Up to 1,000 domain name suffixes could be added each year in the most sweeping change to the domain name system since its creation in the 1980s.

The idea is to let Las Vegas hotels, casinos and other attractions congregate around ".Vegas," or a company such as Canon Inc. draw customers to "cameras.Canon" or "printers.Canon." The new system will also make Chinese, Japanese and Swahili versions of ".com" possible.

After several years of deliberations, ICANN began accepting applications in mid-January. The application window was to have closed on April 12 ? the same day ICANN had to shut down the system, just hours before the deadline.

The glitch did not affect general availability of the Internet's domain name system ? the databases that let Internet-connected computers know where to send email and locate websites. It also did not affect the ability to register new names under existing suffixes.

Rather, the glitch was with the software ICANN had set up to take applications for new suffixes.

The proposals were supposed to be confidential until the application period closed. The software glitch allowed some applicants to view data about others, including potential competitors. The data were limited to file names and usernames, not the contents of the files.

But those names in some cases offered clues about which companies were proposing what suffixes, Beckstrom said. Knowing that could allow an applicant to change a proposal and gain an advantage.

ICANN believes that 105 applicants might have had data viewed by others, while 50 applicants might have seen information on others ? inadvertently, ICANN believes. That's out of 1,268 registered applicants, each of which can submit as many as 50 suffix proposals.

Beckstrom said that once the system reopens, ICANN will monitor applicants to determine whether they make adjustments based on what they might have seen. Applicants will also have at least a week to make sure their data didn't get lost or corrupted.

The delay shouldn't have a major effect on the availability of new suffixes, as the new names won't appear in general use until at least next spring ? in many cases, much later.

Late Friday, ICANN said it had received 2,091 suffix proposals ? fully completed or in progress ? and another 214 for which it was still awaiting or processing application fees. That means applications will be divided into at least four batches of about 500 each, potentially stretching the review process over a few years.

The bigger damage could be in the long-term confidence in ICANN. Even before the glitch was discovered, opponents of the domain-name expansion questioned ICANN's ability to roll out new suffixes smoothly.

Beckstrom said all organizations encounter technical problems, and he said ICANN hopes to retain people's confidence by resolving the problems and communicating well.

ICANN did not say what suffixes were proposed. It plans to release a list a few weeks after the application window closes, after which it will accept challenges for trademark and other issues.

ICANN said Friday that it had received $350 million in applications fees so far. Each application costs $185,000, and winners will have to pay $25,000 a year. The money will pay for ICANN's costs setting up the system, reviewing applications and making sure parties do what they have promised once the suffix is operational. Some of the money will be set aside for potential lawsuits from unsuccessful applicants and others. Companies can make money by selling names under approved suffixes.

___

Online:

ICANN's domain-expansion site: http://newgtlds.icann.org/en

Associated Press

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Saturday, May 5, 2012

Video: Matthews: Don't let a 'few knuckleheads' ruin Secret Service's reputation

How to see the supermoon ? and meteors, too

??If the full moon looks a bit bigger and brighter in Saturday night's sky, you're not seeing things: It's just the "supermoon" ? the biggest moon of 2012. And there's a meteor shower from Halley's Comet that's peaking as well, adding to the sky show.

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Do It Yourself Tasks: Blinds and Security Doors ? NewsX Blogs

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You ought to understand the distinction between the various kinds of drapes and blinds that are available to you before you go out and buying blinds and drapes. Allowing you to customize the appear and feel of the space tend to be vertical blinds, for example, which consist of panels of material, plastic, or some other material which drops from the top track using a weight at the end. With vertical blinds, you can even effortlessly alter simply how much sunshine you need to enter in the space having a merely twist of a knob.

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Yahoo CEO faces calls for ouster after inaccuracy

In this Nov. 24, 2010 photo, then PayPal president Scott Thompson, who in January 2012 was named CEO of Yahoo Inc., poses for photos at PayPal's offices in San Jose, Calif. Yahoo shareholder and New York hedge fund manager Daniel Loeb questioned Thompson's qualifications and integrity after exposing a misrepresentation about the executive?s education. The fabrication confirmed by Yahoo Inc. on Thursday, May 3, 2012 gives Loeb more artillery as he tries to topple a board of directors favored by Thompson. (AP Photo/Noah Berger)

In this Nov. 24, 2010 photo, then PayPal president Scott Thompson, who in January 2012 was named CEO of Yahoo Inc., poses for photos at PayPal's offices in San Jose, Calif. Yahoo shareholder and New York hedge fund manager Daniel Loeb questioned Thompson's qualifications and integrity after exposing a misrepresentation about the executive?s education. The fabrication confirmed by Yahoo Inc. on Thursday, May 3, 2012 gives Loeb more artillery as he tries to topple a board of directors favored by Thompson. (AP Photo/Noah Berger)

In this Nov. 24, 2010 photo, then PayPal president Scott Thompson, who in January 2012 was named CEO of Yahoo Inc., poses for photos at PayPal's offices in San Jose, Calif. Yahoo shareholder and New York hedge fund manager Daniel Loeb questioned Thompson's qualifications and integrity after exposing a misrepresentation about the executive?s education. The fabrication confirmed by Yahoo Inc. on Thursday, May 3, 2012 gives Loeb more artillery as he tries to topple a board of directors favored by Thompson. (AP Photo/Noah Berger)

FILE - In this Nov. 15, 2010 file photo, then PayPal president Scott Thompson, who in January 2012 was named CEO of Yahoo Inc., speaks at the Web 2.0 Summit in San Francisco. Yahoo shareholder and New York hedge fund manager Daniel Loeb questioned Thompson's qualifications and integrity after exposing a misrepresentation about the executive?s education. The fabrication confirmed by Yahoo Inc. on Thursday, May 3, 2012 gives Loeb more artillery as he tries to topple a board of directors favored by Thompson. (AP Photo/Paul Sakuma, File)

(AP) ? Scott Thompson's reign as Yahoo's CEO is in jeopardy after just four months on the job because he allowed an inaccuracy about his academic credentials to recur for years.

A major Yahoo shareholder who exposed the fabrication is now leading the charge to oust Thompson for unethical conduct. In a letter Friday, activist hedge fund manager Daniel Loeb demanded that the board of the struggling Internet company fire Thompson by noon EDT Monday or face possible legal action.

"CEO's have been terminated for less at other companies," wrote Loeb, who controls a 5.8 percent stake in Yahoo through his hedge fund, Third Point LLC.

Yahoo reiterated Friday that "the board is reviewing this matter and, upon completion of its review, will make an appropriate disclosure to shareholders."

Thompson's troubles revolve around an exaggeration about his education at Stonehill College, a small Catholic school near Boston where he was graduated in 1979.

Since announcing Thompson's hiring in January, Yahoo had included two bachelor's degrees ? one for accounting and the other for computer science ? on the executive's biography. The dual degrees appeared on Yahoo's own website and in an April 27 legal document filed with the Securities and Exchange Commission.

After being confronted Thursday by Loeb, Yahoo confirmed that Thompson received only an accounting degree from Stonehill. Yahoo has since removed all references to Thompson's education from his bio on its website. The company hadn't amended its SEC filing with the inaccuracy as of late Friday.

It's unclear whether the inaccuracy about the computer science originated with Thompson or someone else at Yahoo.

But Thompson's bio with dual degrees periodically cropped up before he joined Yahoo. He was listed with a computer degree on a website touting his appearance at the Web 2.0 technology conference in 2010 while he was running eBay Inc.'s PayPal payment service. The computer science degree also has appeared in Thompson's bio in connection with his 2008 appointment to a Silicon Valley startup, Zuora.

EBay listed only Thompson's accounting degree in its SEC filings while he was working at PayPal.

Even if Thompson didn't personally write his biography, he almost certainly reviewed the information at some point and should be held accountable for the distortion, said Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware.

Elson believes Yahoo's board needs to dump Thompson or "it will face questions about its own effectiveness."

Yahoo blamed an "inadvertent error." After that excuse was ridiculed on the Internet, Yahoo issued another statement late Thursday about the board's intent to look into what happened. The company, which is based in Sunnyvale, Calif., didn't give a deadline.

The uproar over Thompson's qualifications and integrity is the latest tempest at beleaguered Yahoo, which has been reeling since it turned down an opportunity to sell itself to Microsoft Corp. for $33 per share four years ago.

The company has been losing ground to rivals Google Inc. and Facebook Inc. ever since, causing its revenue to steadily fall and leaving its stock price below $20 since September 2008, a few months after Microsoft's final offer. Yahoo's shares fell 25 cents to close at $15.15 Friday.

Thompson, Yahoo's fourth full-time CEO in the past five years, had just started to revamp the company, but he probably won't be around much longer, predicted Kirk Hanson, executive director for the Markkula Center for Applied Ethics at Santa Clara University in Silicon Valley.

"The board really is boxed into a corner," Hanson said. "If this individual is prone to exaggeration or excessive claims, they have to be worried it might happen again down the road.

"They also have to ask themselves, 'Can this leader serve as a moral example or moral leader for our company?' Behavior rolls downhill. If the CEO exaggerates a little, then others in the organization will exaggerate a lot."

Although he was well-respected at PayPal, Thompson isn't getting much support in Silicon Valley.

Thompson alienated much of the technology industry in March when he decided to sue Facebook for alleged infringement on some of Yahoo's Internet patents. The lawsuit has been skewered in Silicon Valley as a cheap shot at Facebook Inc. as it prepared to complete an initial public offering of stock that is aiming to raise as much as $13.6 billion for the company and its current shareholders. Yahoo critics also viewed the lawsuit as the desperate act of a company that has run out of good ideas.

In his Friday letter, Loeb argued that Thompson has to be dumped to avoid "irreparable damage to Yahoo's culture." He argued that Yahoo's own code of ethics justifies firing Thompson "for cause," a move that probably would prevent him for qualifying for a severance package. Yahoo's code states that information filed with the SEC "must be full, fair, accurate, timely and understandable."

If Yahoo fires Thompson, it will be the company's second ouster of a CEO in less than a year. The company fired Thompson's predecessor, Carol Bartz in September after concluding her turnaround strategy wasn't working.

Thompson so far has been focused on cutting costs. Just last month, Thompson laid off 2,000 Yahoo employees, or 14 percent of the workforce, in the company's biggest payroll purge in history. He has also promised to close or sell about 50 Yahoo services that haven't been attracting enough online traffic or generating enough revenue.

Loeb is trying to oust Thompson as he seeks four seats on Yahoo's board of directors ? one for himself and three for his allies. Yahoo instead added three other directors in late March. Thompson told Loeb he wasn't qualified to be on the company's board.

The search for new directors was overseen by Patti Hart, whom Loeb is also attacking as an ethics liability. Loeb is upset that Hart's bio claimed she held a bachelor's degree in marketing and economics from Illinois State University. On Thursday, Yahoo clarified that Hart graduated from the college with a bachelor's degree in business administration with specialties in marketing and economics.

Loeb ended his letter by pressing Yahoo to appoint him and his three preferred candidates to avoid a showdown at the company's annual meeting later this year. Yahoo hasn't scheduled the meeting yet.

"The company can ill afford to continue this misguided fight with its largest outside shareholder while it has so many other fires to put out," Loeb wrote. "There has been enough damage already."

Associated Press

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Friday, May 4, 2012

Strassel: The 'Crucify Them' Presidency (WSJ)

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Justin Bieber Goes 'More Mature' With 'Boyfriend' Video

Pop star brings new clip to MTV News and answers all his fans' questions during Thursday's 'MTV First: Justin Bieber.'
By Jocelyn Vena, with reporting by Sway Calloway

<P>From the back of a Shelby Mustang right to a showroom filled with classic cars, <a href="http://www.mtv.com/music/artist/bieber_justin/artist.jhtml">Justin Bieber</a> premiered his highly anticipated <a href="/news/articles/1684446/justin-bieber-boyfriend-video.jhtml">"Boyfriend" video</a> on Thursday (May 3) during "MTV First: Justin Bieber." The sexy, sunny, <a href="/news/articles/1684418/justin-bieber-boyfriend-video-cars-girls.jhtml">Director X-directed</a> clip certainly had fans in the room cheering.</P><P>The video comes to life with shots of Bieber driving a muscle car, snuggling with his beautiful co-star and getting his dance on alongside his pals, all while they chill out at a rooftop party somewhere in Los Angeles. It's a more mature look at the growing pop star, who in only a few short years has gone from strumming his guitar on the streets of his Canadian hometown to full-fledged international pop-star status, where he fills arenas all over the world.</P><P></p><div class="player-placeholder right" title="Justin Bieber Wanted 'Boyfriend' Video To Be 'Mature'" id="vid:765691.id:1684329" width="415" height="255"></div><p></P><P>"I kind of switched it up from all the teasers," Bieber told MTV News' Sway Calloway about what fans saw of the video before its premiere. "I switched up the whole video on them, and really, I think it's super cool. I wanted to do something a little bit more mature."</P><P>The video is full of swaggy images, ranging from his varsity jacket to his cool car, but what left one fan in the "MTV First" audience most intrigued were the gold sneakers he sports in the video. "I did pick out those swaggy gold shoes," he laughed. "They spray-painted them gold. That's what I'm going to do: I'm gonna start wearing gold shoes all the time."</P><P>With the video's focus on cars and friends, the 18-year-old chatted about his own personal car collection. "I have a Range Rover and a Fisker. And I have a Smart Car. It just helps me get from point A to point B. I call it my little 'swag car,' " he said.</P><P>While Bieber made it clear that his off-time doesn't look a lot like the party in the video, he did share what he does on the weekends: "I work. ... If I'm with my friends, we like to do regular stuff," he said, before opening up about what he does to unsuspecting pals in an elevator. "We have this game where basically we hit each other in the balls."</P><P>In addition to opening up about the video and his unusual take on riding in an elevator, he also talked about working with pals Drake, Kanye West, Usher and Taylor Swift for his brand-new album, <a href="/news/articles/1684292/justin-bieber-boyfriend-mike-posner-sessions.jhtml"><I>Believe,</I></a> out June 19. "Boyfriend" is the lead single from the highly anticipated release.</P><P>But with the music world conquered, he also teased his forthcoming work in Hollywood. He gave an update on his in-the-works <a href="/news/articles/1676492/mark-wahlberg-justin-bieber-basketball-movie.jhtml">basketball movie with Mark Wahlberg</a>, as well as his blink-and-you'll-miss-it cameo in "Men In Black 3." He noted, however, "Right now I'm focused on my album and <I>Believe.</I>"</P><P><i>What did you think of the "Boyfriend" video? Share your reviews in the comments!</i></P><P><b>Stick with MTV News as we roll out more from our exclusive "MTV First" interview with Justin Bieber!</b></P><P><center><object width="460" height="260" type="application/x-shockwave-flash" id="embeddedPlayer" data="http://videoplayer.vevo.com/embed/embedded" style="visibility: visible;"><param name="bgcolor" value="#000000"><param name="allowFullScreen" value="true"><param name="allowScriptAccess" value="always"><param name="wmode" value="transparent"><param name="flashvars" value="playerType=embedded&videoId=USUV71200411&playlist=false&enableDomScan=true&siteSection=MTV_mtv.com&playerId=62FF0A5C-0D9E-4AC1-AF04-1D9E97EE3961&autoplay=0&endScreen=play&cc=US&cultureName=en-US&cultureIsRTL=False&sbId=14A00605-7DB5-4492-B67B-CB2093BD89DD"></object></center></p>

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