Messages in this thread | | | Date | Tue, 2 Mar 1999 08:35:14 -0800 | From | frontdesk@thestand ... | Subject | The Industry Standard's Media Grok - March 02, 1999 |
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THE INDUSTRY STANDARD'S M E D I A G R O K A Review of Press Coverage of the Internet Economy GET 8 RISK-FREE ISSUES OF THE INDUSTRY STANDARD MAGAZINE CLICK HERE: http://www.thestandard.com/subscribe/0,1680,8F49-7AP3-40@49.97,00.html
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March 02, 1999
* Journal scoops field on HP break-up plan * Intel's defense includes quotes from government witnesses * Read all about it: Journal sells a 'Daily Edition' of WSJ.com
See http://www.thestandard.com for more coverage on the Internet Economy. For technology news, go to our parent company's site at http://www.idg.net. Media Grok does not review stories from any IDG publication, but includes relevant links to TheStandard.com and IDG.net.
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Journal Scoops Field on HP Break-Up Plan
The Wall Street Journal reported this morning that Hewlett-Packard today will announce a major corporate restructuring that could include splitting the company into two or more separate publicly traded companies. The double bylined story - by Steve Lipin and Don Clark, with addition contributions from Kara Swisher - cites only "people familiar with the matter."
No one else had the scoop, although News.com ran with a quickie Bloomberg story citing the WSJ report.
The WSJ team fleshed out the piece with great background analysis, noting that HP has suffered market share losses on the server side. Market share gains on the PC side have come at the expense of a bloody price war that has reduced profits. The story also noted that HP share prices have lagged behind market averages, and that the stock market has reacted happily when big companies like AT&T spin off pure play companies such as Lucent.
The story quoted "one person close to the company" as saying HP will likely try to stress faster-growing markets, including Internet-related hardware, that could "command a premium on Wall Street." And why not? Look at the Internet market math. HP had $47 billion in revenue last year and has a $70 billion market cap. Contrast that with AtHome, which had only $48 million in 1998 revenue but sports a $14.3 billion market cap.
HP Plans Restructuring That May Split Company Into at Least 2 Public Entities http://interactive.wsj.com/articles/SB920346289474684500.htm
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Intel's Defense Includes Quotes From Government Witnesses
The Intel antitrust case doesn't begin until March 9, but it already has a bush-league feel to it compared to the big-league Microsoft trial.
The leaks haven't been splashed across front pages, and Intel has been so darned courtly - it actually admits to the basic charges. For those who somehow forgot, the FTC charged Intel with cutting off chip info to Intergraph, Compaq and DEC. Intel admits it cut off the advance information, but says it was within its rights to do so. The FTC wants Intel to assure access to key tech information. Many news outlets have reported that the government agency is continuing its investigation and might broaden the charges, a la the Microsoft case.
The San Jose Mercury News, published near Intel's Santa Clara, Calif., headquarters, had the early leak on the strategy filings made under seal (seal, what seal?) last week by both sides. Elliot Zaret followed up today with the now-public details on Intel's intriguing defense strategy: using the testimony of the government's own witnesses. According to Zaret, Intel quotes Compaq and DEC execs saying that Intel's moves had little impact on their ability to introduce products. And even the government's expert economist, Frederic Scherer, says Intergraph only suffered "negligible" damage from Intel's tactics. Still, Zaret said that Scherer was quoted in other briefings saying that Intel did block innovation when it moved into motherboards and chip-set markets, turning PC makers into "largely undifferentiated box assemblers."
The Washington Post's David Segal led with Intel's quotes from Scherer, and said the economist conceded he had no evidence of Intel hampering price competition or new chips. But Segal said experts thought the FTC didn't have to prove past or present harm - only that it has to prevent future damage. As one law professor told Segal: "If the FTC catches someone with a gun, they can intervene before the trigger is pulled." The Post scribe said the government will likely argue that PC prices will go up if Intel remains unchecked. Still, the argument of rising chip costs will be difficult, with dropping PC prices and Intel saying in its brief that it lost market share recently to AMD and Cyrix.
Intel Fires Back at FTC http://www.mercurycenter.com/business/top/040088.htm
Intel, U.S. Set Strategies for Antitrust Trial http://www.washingtonpost.com/wp-srv/WPcap/1999-03/02/033r-030299-idx.html
U.S. to Argue Intel Used Power in Market to Bully Customers (Reuters) http://www.nytimes.com/library/tech/99/03/biztech/articles/02intel.html
Intel Cut - 'Growth Not as Robust,' DLJ Says http://cbs.marketwatch.com/news/current/intc.htx
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Read All About It: Journal Sells a 'Daily Edition' of WSJ.com
When it comes to getting Web surfers to pay for content, the only winners so far are porn and portfolio advice. So we have to pay attention when the Wall Street Journal decides to try a new model, charging $1.95 for a daily edition (access to its site for 24 hours).
The Washington Post filed a story on the experiment on page E12, with reporter Leslie Walker saying the Journal was "a guinea pig for a new transaction network" called Qpass. She sniffed at the "wacky Internet economics at work," since the daily print Journal is only 75 cents and an annual online sub is only $59. But Journal execs countered that the offer includes access to a 30-day archive and other extras. (A quick look at the "Daily Edition" offer on WSJ.com shows that you get more - and less - for your money. For the months of March, April and May, there's a special offer of two days for the price of one. However, there is a note about Daily users not getting some features like the customizable Personal Journal or mailing lists.)
Walker buried the details on Qpass, a startup that's trying to develop cost-effective micropayments, and has signed up Morningstar to sell research reports for mutual funds and The Industry Standard to sell "data on the Internet economy." She added that development costs of the payment system are spread out among participating sites and that users only have to give credit card info once to pay at all member sites.
Wall Street Journal Sets Daily Price on the Web http://www.washingtonpost.com/wp-srv/WPcap/1999-03/02/003r-030299-idx.html
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NEW AT WWW.THESTANDARD.COM ~~~~~~~~~~~~~~~~~~~~~~~~~~ How to Make Money Disappear Sometimes one sees a company that is such a disaster it's impossible to ignore. It's the same phenomenon that makes people slow down for car accidents. Digital Courier Technologies is such a company. http://www.thestandard.com/articles/display/0,1449,3676,00.html?02
CBS SportsLine: Still Running Behind? Despite a powerful marketing alliance with CBS, CEO Michael Levy is finding it hard to match ESPN's reach. http://www.thestandard.com/articles/display/0,1449,3622,00.html?02
ABCNews.com Goes to Work http://www.thestandard.com/articles/display/0,1449,3674,00.html?02
Intel Claims FTC Found No Evidence of Harm http://www.thestandard.com/articles/display/0,1449,3673,00.html?02
Interactive Advertising Practices Its Straight Face http://www.thestandard.com/articles/display/0,1449,3668,00.html?02
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MORE LINKS ~~~~~~~~~~ Is Open Source a Libertarian Fantasy or Revival of Sixties Radicalism? http://www.feedmag.com/essay/es178_master.html
Clicking for Contraband http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/1999/03/01/MN63709.DTL&type=tech_article
Alcatel Set to Acquire Xylan for More Than $1.7 Billion http://www.nytimes.com/library/tech/99/03/biztech/articles/02switch.html
CMGI to Acquire Internet Profiles (Bloomberg) http://www.nytimes.com/library/tech/99/03/biztech/articles/02cmgi.html
Microsoft Won't Block E-cards http://www.wired.com/news/news/business/story/18195.html
AtHome to Test $10/Month Service http://www.msnbc.com/news/245598.asp
Schwab Net Trading on the Blink Again http://cbs.marketwatch.com/news/current/sch.htx
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