Archive for April 23rd, 2008

Bancroft family members not surprised by Brauchli’s departure


2008
04.23

Jeff Bercovici of Conde Nast Portfolio got in touch with Jane Cox MacElree, a Bancroft family member who controlled 15 percent of the Dow Jones & Co. stock and opposed the sale of The Wall Street Journal parent to Rupert Murdoch, and asked her about the departure of Journal ME Marcus Brauchli.

Wall Street JournalBercovici writes, “‘How long did it last? A couple of months?’ asks MacElree.

“Asked whether other members of her family now regret their decision to sell, she demurs. ‘I’m not going to go there. I shouldn’t even talk to you.’

“‘It’s over and done with, and there’s no point in going on about it, in my opinion,’ she adds. ‘I just feel bad for Marcus.’”

Read more here. Robert MacMillan of Reuters, who worked briefly at The Journal, got a similar response when he talked to Bancroft family member Chris Bancroft. Read here.

Former NY Post, LA Herald Examiner biz editor dies at 80


2008
04.23

Jack Searles, the former business editor of the New York Post and the Los Angeles Herald Examiner, has died at the age of 80, according to a post on an LA Times blog.

His son, Michael Searles, writes, “When the Mirror folded, Jack went to work for the L.A. Times as a general assignment reporter. Always somewhat restless, he left The Times and spent a year working for the San Diego Union. He then returned to The Times for several years.
 
“In 1963, he picked up and moved to New York to accept a position as business editor of the New York Post. Soon, he was drawn back to L.A. taking over as business editor for the Los Angeles Herald Examiner from 1964 until sometime in the early 1980s. He stayed with the paper during the turbulent strike years.

“When he left the Herald he very briefly dipped his toes in public relations, accepting a personal services contract with Armand Hammer, head of L.A.-based Occidental Petroleum. Hammer and Jack quickly realized that he was not built to be a PR man, so Hammer allowed Jack to finish off his contract by completing a Master of Arts in Journalism at UCLA during the brief period when UCLA offered such a degree.”

Read more here.

LA Times biz editor promoted to ME


2008
04.23

Davan Maharaj, the business editor of the Los Angeles Times, has been promoted to managing editor of the paper, according to a story by Times staff writer Thomas Mulligan.

The current editor of the Times is Russ Stanton, also a former business editor at the paper.

Davan MaharajMulligan writes, “Maharaj, 45, has worked as a reporter for The Times in Orange County, Los Angeles and East Africa. His six-part series ‘Living on Pennies,’ in collaboration with Times photographer Francine Orr, won the 2005 Ernie Pyle Award for Human Interest Writing and inspired readers to send tens of thousands of dollars to aid people and agencies working in Africa.

“Another Maharaj story, an investigative report about a Leisure World attorney who inherited millions of dollars in stock, land and other ‘gifts’ from his clients, led to changes in California probate law.

“Maharaj has been an assistant foreign editor and, in Business, served as a deputy editor before assuming leadership of the department last year.

“Under Maharaj’s tenure, Business revamped its coverage to give greater emphasis to consumer issues. It also redesigned its Sunday section, devoting it to stories that can help readers with their personal finances.”

Read more here.

Judging Fortune by its stock picks


2008
04.23

Jossip takes a look back at the stock picks made by Fortune in its December 2007 issue and compares their performance to the overall market.

FortuneJossip wrote, “Throw digits on the cover and travelers rushing through the airport and moms browsing through Barnes & Noble are more likely to pick up your rag. Which explains why, in December, Fortune gave you a list of 10 stocks they thought were sure bets to increase the value of your portfolio in 2008.

“Sure, we’re only four months in, by how is Andy Serwer’s team measuring up so far?

“The S&P 500 Index is down 5.46%, the Nasdaq is down 9.21%, and the Dow Jones Industrials Average is down 3.32%.

“Annaly Capital Management (NLY). ‘It buys mortgage-backed securities issued by government-sponsored enterprises like Fannie Mae and Freddie Mac…’ Down 5.5%.

“Berkshire Hathaway (BRK.B). ‘Warren Buffett knows how to exploit panics.’ Down 9.73%.

“Dick’s Sporting Goods (DKS). ‘Dick’s emphasizes a store-within-a-store sales approach. Each department has its own look and staff, which appeals to the enthusiast who purchases a lot of sporting goods.’ Down 4.43%.

“Electronic Arts (ERTS). ‘Still, if there’s one tech niche that should be immune to a slowdown, it’s videogames… It’s now the No. 2 developer of Wii games, behind only Nintendo.’ Down 10.87%.

“Genentech (DNA). ‘Even with the FDA setback, Genentech is still expected to grow earnings 18% next year.’ Up 7.22%.

Read more here. Two stock picks — Petrobas and St. Joe — are up for the year.

A personal finance columnist who made it personal


2008
04.23

Michael Burnham writes on WalletPop that the writer who replaces Wall Street Journal personal finance columnist Jonathan Clements has big shoes to fill.

Jonathan ClementsBurnham writes, “I’m happy Clements is pursuing something new, different — hopefully, stimulating and lucrative, too. I’m sad because he was the rare personal finance writer who indeed understood the personal, going beyond raw dollar signs to keep financial planning in perspective.

“Clements made his last column unabashedly about the personal, lifting the editorial curtain to expose his feelings about the endgame for all this financial engineering. ‘What is the real reason for all this saving and investing?’ he asked. ‘The short answer is, you save now so you can spend later. But what will you spend your money on? People dream of endless leisure and bountiful possessions. Unfortunately, after a few months, endless leisure often seems like endless tedium.’

“He went on to cite three key things wealth can – should — do for us, noting their relevance to the fat of wallet and modest savers alike: (1) If you have money, you no longer should worry about it; (2) Money can give you the freedom to pursue your passions; (3) Money can buy you time with friends and family.”

Read more here. 

BusinessWeek’s Brady promoted to senior editor


2008
04.23

BusinessWeek senior writer Diane Brady has been named senior editor and content chief, according to an announcement Wednesdat. 

Diane BradyIn her new role, Brady will be responsible for print and online content focusing on corporations, management and strategy coverage. She will assume her new responsibilities on June 1, when she returns from a book leave.  Her book, “Holy Cross Fraternity,” is due out from Spiegel & Grau in Spring 2009.

“Diane’s superb journalistic instincts, combined with her relentless energy, make her the ideal choice for this important post,� said editor in chief Stephen Adler in an announcement.

Since joining BusinessWeek in 1999, Brady has received numerous awards for stories she has written.  This year alone, three of her stories have racked up awards and citations: “The Pet Economy,�  “The Holy Cross Fraternity,� and “Pepsi: Repairing a Poisoned Reputation in India.�

She is a past winner of awards in the Deadline Club, Front Page Awards, National Magazine Awards of Canada, and McGraw-Hill Corporate Achievement Awards competitions, among others.

Prior to joining BusinessWeek, Brady was with the Asian Wall Street Journal, where she was a staff reporter in Hong Kong and other parts of the region for four years. Before that, she was an associate editor at Maclean’s Magazine in Toronto. She was also a speechwriter for the UN Environment Programme in Nairobi, Kenya.

The long-range effects of the WSJ metamorphosis


2008
04.23

Louis Hau of Forbes writes Wednesday about the effects of the changes designed to make The Wall Street Journal more of a competitor with the New York Times, including the departure of managing editor Marcus Brauchli.

Wall Street JournalHau writes, “Although Brauchli lasted only 11 months in his post, his predecessor, Paul Steiger, had served as managing editor for 16 years. That could prompt some reporters to bolt, but don’t count on seeing a mass exodus. In this difficult media environment, where are they going to go?

“Transforming the Journal into a more general national daily that can compete better with The New York Times doesn’t come without risks. The Journal has long differentiated itself from the competition as the go-to source for authoritative business-news reporting.

“It’s a strategy that has made it the second-largest daily paper in the U.S., with average daily circulation of 2.01 million during the six months ended Sept. 30, according to the Audit Bureau of Circulations. That was nearly twice as large as the Times, which had average daily circulation of 1.04 million during the same period.

“Expanding that lead by reaching out to a more mainstream readership could pay rich dividends. But as the Journal branches out into more political and general-news reporting, it must do so without short-shrifting its core franchise — top-flight coverage of business news. Taking its eye off the latter could alienate its traditional readership base, which has more options than ever for business and financial news.”

Read more here.

Thomson Reuters journalists fear layoffs


2008
04.23

Patrick Smith of the Press Gazette in London writes that the 2,800 journalists at the newly combined Thomson Reuters operation are fearing layoffs.

Thomson reutersSmith writes, “Tom Glocer, CEO of the merged company, has said that news and journalism would be an ‘integral’ part of the company’s future.

“A spokesperson for Thomson Reuters said: ‘There will be some redundancies but that does not particularly relate to the newsroom or any specific division across the whole group of 50,000 employees.

“‘Thomson Reuters is looking to make cost savings within three years of $500m but much of that will be taken out of things like building costs.’

“She said that both Tom Glocer, CEO of Thomson Reuters, and David Schlesinger, editor-in-chief, had both committed publically to the importance of news and journalism and said it was a ‘growth area’.

Was Brauchli still having fun?


2008
04.23

John Koblin of the New York Observer recounts a meeting that Wall Street Journal managing editor Marcus Brauchli had recently with the paper’s San Francisco bureau that spoke volumes about his mood, which led to his resignation on Tuesday.

Wall Street JournalKoblin writes, “On a trip to the San Francisco bureau on April 16, the low-key but normally charismatic Mr. Brauchli looked dour, his face drawn. The questions thrown at him were tense: What’s going to happen to the ‘A-hed,’ those offbeat Page One stories about things like aging pets and farming neighbors? Was the paper to be front-loaded with general stories about San Francisco politics, or did they still want to hear every mouse click coming out of Cupertino? Does Rupert Murdoch care about Pulitzers?

“Finally, as a way to ease the tension, Robert Guth, the paper’s Microsoft reporter, tried to change tack.

“‘Are you having fun?’ Mr. Guth asked, according to people present.

“Mr. Brauchli appeared distracted—he was looking around the room, scrolling through his BlackBerry, and the question seemed to stop him cold.”

Read more here.

How Wired wants to blow readers’ minds


2008
04.23

Marketwatch media columnist Jon Friedman writes Wednesday about Wired magazine and editor Chris Anderson’s penchant for producing tech stories that are unexpected.

Wired magazineFriedman writes, “Wired sees technology as encompassing every subject, which enables the monthly magazine to come up with original ideas in every issue. Even when it covers widely discussed topics, like autism for example, Wired manages to find something fresh to say.

“I especially like the way Wired always stresses originality and creativity, two increasingly hard-to-find qualities in publishing circles these days.

“Many editors watch the competition closely and work in a defensive posture. Their primary motivation appears to be NOT missing a story. I wish they’d focus instead on consistently producing quality stuff — on any subject — and zigging when others are zagging. It’s all about serving the readers, and Anderson apparently feels the same way.”

Read more here.