Friday, April 13, 2012

Lion King Makes History

Broadway: Lion King leaves a Phantom in the Dark
It’s early April and the height of the Broadway theatre season. Very quietly, a lion has run down a phantom – at the theatrical box office, that is. According to newly released figures, The Lion King had officially become the highest grossing show on Broadway, nosing ahead of The Phantom of the Opera. But these shows are starting to resemble fast-food production lines. By J BROOKS SPECTOR.
According to the numbers, the Lion was now $723,215 ahead in cumulative revenues from the dates when the two shows first opened on Broadway. The Lion King’s total take now stands at $853,846,062, whereas The Phantom has only made a meagre $853,122,847. And in the week ending with Easter Sunday, the Lion took in around $2 million, pulling ahead of a Phantom that could only claim a $1.2 million take. What makes it more interesting is that the Lion came to Broadway nine years after the other show started its run.

Popular music historian Cary Ginell, in analyzing the reasons behind the longevity of shows like The Lion King, said it’s very much akin to a Disneyland ride. “It's a spectacle that satisfies on many different sensory elements: audio, visually, emotionally. It's also good for all ages, just like Disneyland is. For the kids, it's the visual elements: the colors, the costumes and the puppetry. For the adults, it's Hamlet basically. And the music is not geared to one age or gender or race. It's as universal a show as one can get.”
Well, maybe if Hamlet had stampeding wildebeest, Elton John music, and the circle of life. But the Disney experience is precisely what appeals.
Broadway has changed over the years. It is now inextricably tied up with broader entertainment trends. New York’s regular show-going audience has morphed substantially into an industry where out-of-towners and visitors rather than locals routinely fill the seats in the big shows.
Along the way, Broadway entertainment has become increasingly commoditised and integrated across the spectrum of other media and products, and the big shows become integral elements of international franchising and part of long-term marketing plans.
There was a time when the Broadway musical frequently had a significant literary pedigree and generally was a standalone venture that got its try-out in Philadelphia and New Haven. There it was tweaked and adjusted, and then finally put on to a Broadway stage. My Fair Lady began its life as a bit of Greek mythology that had been converted into a highly literate play, Pygmalion, by George Bernard Shaw, and then transformed by Lerner and Loewe into the musical, a show that held the record for decades for the longest continuous run on Broadway. There was Leonard Bernstein, Arthur Laurents and Stephen Sondheim’s West Side Story, a work that reaches back to Romeo and Juliet. For decades, musical theatre drew on such literary and cultural antecedents, which brought the complicated textures of a powerful story to the resulting show.
But consider the new and former Broadway champion: The Lion King and The Phantom of the Opera. The former’s lineage traces back to a popular Disney feature-length cartoon, with a slight detour along the way to the popular South African song, The Lion Sleeps Tonight, as well as New Age philosophy about the circle of life and Mother Earth. While the latter does actually reach back to a once-popular 1911 novel by Gaston Leroux, in its current form it really owes much more to one of those Mills & Boone romantic, semi-chaste bodice rippers: beast-meets-beauty-loses-beauty story.

Photo: The Phantom of the Opera is based on a once-popular 1911 novel by Gaston Leroux.
Or as longtime New York Times drama critic Frank Rich wrote in his original review, it would be a “severe disappointment to let the hype kindle the hope that Phantom is a credible heir to the Rodgers and Hammerstein musicals that haunt both Andrew Lloyd Webber's creative aspirations and the Majestic Theater as persistently as the evening's title character does.
What one finds instead is a characteristic Lloyd Webber project, long on pop professionalism and melody, impoverished of artistic personality and passion. "The Phantom of the Opera is as much a victory of dynamic stagecraft over musical kitsch as it is a triumph of merchandising uber alles.” Careful, calculated merchandising, that is.
Both shows are still going strong on Broadway, on the West End, as well as appearing in a clutch of other cities around the world, including Cape Town and Johannesburg.
But the thing about these shows is that they are not independent, individual productions. Rather, they are cloned replicas – not a hair is different from one to the next. Once the original production’s team sets the next version in motion, local producers have to follow specifications and instructions hundreds of pages in length to make certain one production doesn’t vary by so much as a millimetre from the next one.
The audience expects to get the original show that has, somehow, been magically transported half way around the globe, lest they feel cheated. The highest praise comes when audiences can say, “it’s just like the West End version!”
In fact, if there is one thing that productions like these come the closest to paralleling, it is the fast food restaurant chain outlet. Go into a McDonald’s in Tokyo or Johannesburg or Des Moines, Iowa, and the hamburger will be – and it had better be – exactly the same thing, right down to the texture of the bun, the tang of the pickle and just the right squizz of mustard and ketchup. There is a huge manual for this too and secret inspectors check to make sure it is followed.
In fact, to watch The Phantom in Japan – or anywhere else with one of these franchise musicals – and the sole difference will be that the characters somehow have managed to learn to speak in fluid, colloquial Japanese while in the depths of the Paris Opera instead of speaking in their more natural English.
Productions like these are part of an intricate web of products and sales pitches that include DVDs and CDs, character dolls, children’s costumes for Halloween, authentic costume jewellery, children’s games, mugs, lunch boxes, toys, and other miscellaneous souvenirs. This draws impetus from the model pioneered by Walt Disney from the 1950s onward and refined further by the Star Wars empire of films, tie-in sales and a near-constant stream of products bearing the Star Wars imprimatur.
Central to the efflorescence of this kind of Broadway show from cartoon and comic book to live stage has been the sometimes-enigmatic presence of Julie Taymor. Taymor gets major credit for dragging the Disney cartoon tale of a lion cub forced to confront his inner and outer demons into being transformed into an engaging live theatre experience.
Taymor is something of an entertainment polymath, having directed opera and Shakespearean dramas as well as award-winning films. The “secret” engine of Taymor’s success actually lies in her experiments with the dance, drama and puppetry of Southeast Asia that combine high and low art simultaneously in these productions.
Taymor attended the Jacques LeCoq School of Mime in France and then apprenticed herself to the “guerrilla street-theatre-styled Bread and Puppet Theatre” of Chicago, which  aimed at audiences well beyond traditional theatre ones with its avowedly political message in the 1960s and 70s. Then, having won one of those MacArthur Foundation “genius” grants worth about R5.5million, she spent years studying and performing in Indonesia, absorbing a Southeast Asian theatrical vocabulary that became the bedrock of her theatrical world.
Ironically perhaps, Taymor became the logical – perhaps essential – choice to transform a children’s cartoon into a multilayered, mystical theatre piece – on behalf of Disney. After this astonishing success, Taymor embraced the even greater challenge of turning the dark universe of Spiderman into another show, Spiderman – Turn Off the Dark.
The result broke Broadway records for the cost of the production, the number of previews before it finally opened, and probably the number of rewrites needed as well as the number of leads injured before the play even opened. Taymor ended up being released from the project before it had yet another re-conception, but the die has been cast. In the future, a safe prediction is that more and more shows will come out of the universe of the comic book and the cartoon for a very simple reason – audiences around the world both love this material and know and embrace its legends and leitmotifs.
As The Lion King neared its monetary milestone, Thomas Schumacher, president of Disney Theatrical Productions, said of Taymor that “her vision, continued commitment to the show and uncommon artistry account for this extraordinary success.” He added that the show keeps finding and attracting new audiences “millions of whom are experiencing their first Broadway show at The Lion King. Surely, introducing so many to the splendor of live theater is our show's greatest legacy.”
In other words, people who never thought they would ever fork over a week’s wages to take their family to see a Broadway show continue to beat a path to the door of this one, and now they are going to line up to see Spidey as well.

RIM's Balsillie had radical plan to save company, report says

The former co-CEO and co-chairman apparently wanted to offer his company's network to carriers in the U.S. and elsewhere to boost the BlackBerry maker's financials.
 

RIM's former co-CEO Jim Balsillie.
RIM's former co-CEO Jim Balsillie.
(Credit: Stephen Shankland/CNET)
Research In Motion has decided to double down on its devices and the upcoming BlackBerry 10. But according to a new report, its former co-CEO and co-chairman had other ideas before he left the company in January.
According to Reuters, citing sources, Jim Balsillie held talks with North American and European carriers prior to his departure from RIM, offering them access to his company's proprietary network. If they had inked a deal, the carriers would have been allowed to route traffic from non-RIM smartphones through the BlackBerry maker's network for a fee. The move, Balsillie reportedly believed, would help RIM generate far more revenue, and benefit carriers that are looking to reduce some of the load smartphones are putting on their networks.
If RIM and Balsillie had been able to come to a deal, it might have been music to investors' ears. For months now, major investors have been calling on RIM to focus its efforts on its services and network and consider ditching its hardware business. They ostensibly believe that RIM can't keep up with Apple, Samsung, and countless other smartphone vendors in the hardware market, but could make a mark in services.
According to Reuters, however, those who hold the power at RIM, including current CEO Thorsten Heins, don't agree. And while Balsillie was in discussions with AT&T and Verizon in the U.S. and several carriers in Europe, Heins and former co-CEO Mike Lazaridis nixed his idea, deciding instead to focus on BlackBerry 10 devices, according to the news services' sources.
Although Balsillie reportedly wanted to offer access to RIM's network, he wasn't willing to hand over full access. Smartphone owners would have been able to place calls, send text messages, and use data services, but they would have only been able to access a few services, like Facebook and Twitter; much of the rest of the Web would have not been accessible.
RIM's network has been used exclusively for BlackBerry services since its inception, and for the most part, it has delivered an experience that customers are after. However, last year, RIM suffered an embarrassing multiday network outage that left e-mail services and BlackBerry Messenger offline. Whether that outage played a role in any of the negotiations Balsillie was engaging in is unknown.
Still, it's clear that Balsillie, like others who follow RIM, knew that something drastic needs to be done to fix the company. RIM announced last month that during the fiscal fourth quarter, it lost $125 million, down from the $934 million profit it generated in the prior year. Most troubling, RIM said that BlackBerry shipments fell to 11.1 million units during the period, dropping 80 percent year-over-year.
Looking ahead, Heins says that his company needs to make a "substantial change." Evidently, that change will not come byway of leveraging the BlackBerry network.
RIM did not immediately respond to CNET's request for comment on the Reuters report.

Business news: Google stock wrinkle, Goldman Sachs settles charges, Best Buy hints of scandal

Published: Friday April 13, 2012/Business News Central   
google.pnga Google homepage honors Alexander Calder, a Stevens Institute of Technology alum from 1919
Google Proposes Changing Stock Structure to Maintain Its Control
Google Inc., the world’s largest Internet-search company, plans a new stock structure that gives the company more leeway in issuing shares, while letting management keep control over the direction of the business.
The stock change would create a new class of nonvoting shares that will be distributed to existing shareholders in what is effective a 2-for-1 stock split.Google announced the move as part of Google’s first-quarter financial results, which met or beat most analysts’ estimates, boosted by online-ad spending.
Google aims to prevent employee stock compensation and stock-based acquisitions from diluting the voting power of its founders. The Mountain View, California-based company wants the flexibility to be able to make long-term investments, using its shares, without the risk of losing control.
“Day-to-day dilution from routine equity-based employee compensation and other possible dilution, such as stock-based acquisitions, will likely undermine this dual-class structure and our aspirations for Google over the very long term,” Chief Executive Officer Larry Page and co-founder Sergey Brin said today in a statement posted online. “We have put our hearts into Google and hope to do so for many more years to come. So we want to ensure that our corporate structure can sustain these efforts and our desire to improve the world.”
First-quarter profit, excluding certain costs, was $10.08 a share, the company said on its website. Analysts had projected $9.64 on average, according to data compiled by Bloomberg. Excluding revenue passed on to partner sites, sales rose to $8.14 billion, matching estimates.
Page, who became CEO a year ago, has pushed Google deeper into display advertising and mobile services. This year the company will account for 16.5 percent of the U.S. market for display ads, which include banners and videos, according to EMarketer Inc. By next year, Google is projected to grab almost 20 percent, unseating Facebook Inc. as the market leader.
“The viability of Google is still very, very strong,” said Ron Josey, an analyst at ThinkEquity LLC in New York. He recommends buying the stock, which he doesn’t own himself. “There’s still a lot of room for growth across its multiple businesses.”
Google’s shares were little changed in late trading after the announcement. They had risen 2.4 percent to $651.01 at the close in New York.
While the stock proposal will be subject to a vote at Google’s annual meeting on June 21, Page, Brin and Chairman Eric Schmidt control the majority of voting power.
“We expect it to pass,” David Drummond, Google’s chief legal officer, said in the statement.
Google still gets most of its revenue from Internet search ads -- the text links that appear in query results. The average cost per click declined 12 percent in the first quarter after falling 8 percent in the fourth quarter. The number of paid clicks rose about 39 percent.
“The cost per click is worse than expected, but that looks like it was made up for by very strong paid click,” said Clay Moran, an analyst at Benchmark Co. in Delray Beach, Florida. He has a hold rating on the stock, which he doesn’t own. “There was good growth in revenue.”
The company posted first-quarter net income of $2.89 billion, or $8.75 a share, compared with $1.8 billion, or $5.51 a share, a year earlier.
Mobile search ads have become a bigger piece of Google’s business. Companies will probably commit 23 percent of their search-based ad spending to mobile devices by the end of this year, according to Marin Software, which helps manage about $3.5 billion annually in online ads. That’s up from 8.7 percent at the end of last year.

Saturday, January 28, 2012

Facebook IPO

Facebook Said to Plan Its IPO Filing for as Early as Next Week

 Jan. 28 (Bloomberg) -- Facebook Inc., the world’s largest social-networking service, is aiming to file for its initial public offering as early as next week, two people with knowledge of the matter said.

The company is discussing a valuation of $75 billion to $100 billion, said two people, who asked not to be identified because the plans haven’t been made public. Timing for the filing is still being discussed and may change, they said.
The IPO would provide funds to help Facebook maintain its expansion and fend off competition from Internet rivals such as Google Inc. and Twitter Inc. The company has discussed raising $10 billion in the offering, a person familiar with the matter said in November. Facebook may set its price at the low end of the valuation range to entice investors and ensure the stock rises after the IPO, said Anupam Palit, an analyst at GreenCrest Capital Management LLC in New York.
“They might discount it a little bit in order to make sure the first couple days of trading are very strong,” he said.
Facebook is close to hiring Morgan Stanley to handle the deal, and Goldman Sachs Group Inc. will probably play a “major role” in the IPO, the Wall Street Journal said yesterday. The newspaper was first to report that Facebook may file its paperwork as early as next week.
Larry Yu, a spokesman for Menlo Park, California-based Facebook, declined to comment, as did representatives of Goldman Sachs and Morgan Stanley, both based in New York.
Trading Suspension
Shareholders of Facebook faced a three-day suspension of trading on secondary markets that lasted through yesterday, people with knowledge of the matter said this week. While buy and sell orders could be made, transactions wouldn’t be processed by Facebook’s attorneys at Fenwick & West LLC, the people said.
Halting the trading, which had allowed employees and early stakeholders to buy and sell shares, didn’t mean the filing is imminent, the people said. Still, some companies suspend trading ahead of a filing to make sure that investors can’t exchange shares until all of the information is public, said Sam Hamadeh, chief executive officer of New York-based PrivCo.
A trading halt also may represent an effort by private companies to ascertain how many shareholders they have.
Co-founded by Mark Zuckerberg in 2004 in a Harvard University dorm room, Facebook has amassed more than 800 million users with an easy-to-use website that lets anyone with an Internet connection construct profile pages, post video and photos and interact with friends. The company has nudged aside competitors such as MySpace Inc. and generates sales from advertisers as varied as AT&T Inc., Best Buy Co. and Sony Corp.
IPO Surge
Facebook would follow a flurry of social-media companies holding IPOs in 2011, the biggest year for U.S. Internet offerings in more than a decade, according to data compiled by Bloomberg. Nineteen companies raised $6.6 billion in 2011 -- the most since 2000, when 101 businesses raised $11 billion. Professional-networking site LinkedIn Corp., music-streaming service Pandora Media Inc., daily-deal site Groupon Inc. and social-gaming company Zynga Inc. all sold shares last year.
Facebook expects to be required by U.S. regulators to disclose financial results by April 30, if it doesn’t go public by then, the company said last year when it announced an investment from Goldman Sachs and other backers. The $1.5 billion investment valued the company at $50 billion.
Facebook decided to wait until 2012 for its IPO to give Zuckerberg more time to gain users and boost sales, people familiar with the matter said in 2010.

US Tax Deal

Swiss urge U.S. tax deal to shield other banks

Swiss President and Finance Minister Eveline Widmer-Schlumpf gestures during a news conference on the weekly meeting of the Federal Council in Bern, January 27, 2012. REUTERS/Michael Buholzer
DAVOS, Switzerland | Sat Jan 28, 2012 10:15am EST
(Reuters) - The break-up of Switzerland's oldest bank Wegelin on Friday shows the need to settle a dispute with U.S. authorities over tax cheats hiding cash in secret Swiss accounts, the finance minister said on Saturday.
"It is very regrettable," Eveline Widmer-Schlumpf told journalists at the World Economic Forum of the decision by Wegelin to break itself up in the face of possible indictment on charges the bank helped wealthy Americans to evade taxes.
"This development shows how important it is that we come to solutions in the discussions, negotiations with the United States which hopefully prevent other banks getting into a similar situation," she said.
The U.S. Department of Justice is probing 11 Swiss banks, including Credit Suisse (CSGN.VX), Julius Baer (BAER.VX) and Basler Kantonalbank (BSKP.S).
"I don't know whether other banks are in a similar or same situation...but what I know is that various banks are being threatened by the United States with prosecution and we will try to do everything...to come to a solution," Widmer-Schlumpf said.
Switzerland has been lobbying for a year to get the investigations dropped in return for the payment of a hefty fine and the transfer of names of thousands of U.S. bank clients suspected of dodging taxes.
UBS (UBSN.VX) paid $780 million to settle U.S. criminal charges in 2009 and also turned over the names of 4,500 clients.
Widmer-Schlumpf, who held talks in Davos this week with U.S. Treasury Secretary Timothy Geithner, said she hoped to reach a deal in the coming months, but declined to comment on the size of the fines under discussion for Swiss banks.
"It is up to the financial institutions to say how much they are prepared to pay. It is not up to the state," she said.
Switzerland struck deals last year with Britain and Germany that would allow their citizens to pay tax on secret accounts without revealing their identities, although these are being challenged by the European Commission which wants to force Switzerland to accept an automatic exchange of bank information.
Widmer-Schlumpf, who also holds the rotating Swiss presidency, said the European Unon had signaled to Switzerland it wanted to discuss a general accord with the bloc.
FRANC CAP ACCEPTED, RESPECTED
Separately, Widmer-Schlumpf reiterated the determination of the Swiss National Bank to defend the 1.20 per euro cap on the franc it imposed last year even after the resignation of former bank chief Philipp Hildebrand over a currency trading scandal.
"They have said they will do everything to pursue this policy so the signal is clear," she said.
"We see today that 1.20 is accepted, is respected. Whether the national bank decides sometime to move it, it will have to examine itself and whether it can be defended. That is not up to politicians, that is up to the national bank."
Thomas Jordan, SNB vice chairman who took over as interim head after Hildebrand stepped down, has vowed to defend the cap and said the SNB would take further steps should the economic outlook and deflationary risks make them necessary.
"Mr Jordan is doing an excellent job," Widmer-Schlumpf said, adding she hoped the SNB's supervisory council would make a proposal as quickly as possible over who should replace Hildebrand permanently.

Exxon Tonen

Exxon to sell part of Tonen stake for $3.9 billion: sources

TOKYO | Sat Jan 28, 2012 11:16am EST
(Reuters) - Exxon Mobil (XOM.N) plans to sell a large part of its 50 percent stake in TonenGeneral Sekiyu KK (5012.T) back to its Japanese refining partner in a deal that could be worth about 300 billion yen ($3.9 billion), and will make an announcement as early as Monday, four sources with direct knowledge of the matter said.
Exxon Mobil will retain about a 20 percent stake in TonenGeneral but the deal will mark a de facto retreat from the world's third-largest economy by the U.S. oil giant, which is focusing its resources on emerging markets and development of natural resources.
The move could also spark realignment among Japan's oil refiners, which have been cutting capacity to cope with falling demand caused by a weak economy and a shift to more efficient and environmentally friendly forms of energy, analysts have said.
Reuters reported earlier this month that Exxon was in talks to sell part of the stake back to TonenGeneral.
TonenGeneral, which imports and distributes Exxon oil in Japan, ranks as the country's No. 2 refiner behind JX Holdings (5020.T). Smaller rivals include Idemitsu Kosan Co (5019.T), Cosmo Oil (5007.T) and Showa Shell (5002.T).
Exxon and TonenGeneral aim to complete the deal around summer, the sources told Reuters on condition of anonymity.
TonenGeneral will seek funds from Sumitomo Mitsui Banking Corp, Sumitomo Trust Banking, Bank of Tokyo Mitsubishi UFJ and Mitsubishi Trust Bank to buy back the stake, the sources said.

RBS Updated


RBS chairman waives $2.2 million bonus after Hester row

Royal Bank of Scotland (RBS) Chairman Sir Philip Hampton rides an escalator before the start of the the company's annual general meeting in Edinburgh, Scotland April 28, 2010.     REUTERS/David Moir
LONDON | Sat Jan 28, 2012 11:12am EST
(Reuters) - Royal Bank of Scotland's (RBS.L) Chairman Philip Hampton will not pick up a 1.4 million pound ($2.2 million) stock bonus, the bailed-out bank said, following public anger and political squabbling over a 1 million pound bonus for its chief executive.
Anger over bankers' earnings has shown few signs of abating, with many still set for million pound salaries while elsewhere thousands lose their jobs as the global economy stutters in the face of Europe's debt crisis.
In Britain, the salaries of top staff at RBS and Lloyds (LLOY.L) are particularly controversial because both banks were bailed out to the tune of 66 billion pounds during the credit crisis, with Britain ending up with an 83 percent stake in RBS along with a 40 percent holding in Lloyds.
"Sir Philip Hampton will not receive the 5.17 million shares he was awarded in 2009 when he joined RBS," said a spokesman for the bank.
Based on RBS's closing share price of 27.74 pence Friday, Hampton's share-based award would have been worth 1.4 million pounds. In 2010, Hampton received a basic salary of 750,000 pounds, with no extra performance bonus or benefits.
The decision not to proceed with Hampton's stock award comes after politicians from across the spectrum criticised the company's decision to give its chief executive Stephen Hester a stock bonus worth roughly 1 million pounds.
Earlier this week, RBS halved CEO Hester's stock bonus for 2011 to just under 1 million pounds from 2 million pounds in 2010, but resisted calls to axe the bonus altogether. Hester has a basic salary of 1.2 million pounds.
The decision by Lloyds chief executive Antonio Horta-Osorio to waive his bonus after he spent time off work on sick leave, had put further pressure on Hester to make a similar gesture.
CAMERON SEEKS TO DEFLECT CRITICISM OVER RBS PAY
RBS shares fell sharply over the course of 2011, losing approximately half their value, and the stock remains well below the average price of 49.90 pence at which the British taxpayer acquired its stake in the bank.
Hester has also had to cut more than 30,000 jobs since taking up his post in 2008, as part of a large-scale restructuring to sell off assets and businesses.
Britain's Conservative-led coalition government has also been criticised for not doing more to curb Hester's pay, facing attacks from not only the opposition Labor party but also from its own members.
Saturday, Prime Minister David Cameron sought to deflect criticism over his handling of the issue, arguing it would be worse for the taxpayer if RBS had to find a new management team.
"Let me get the facts straight, the fact is Stephen Hester was brought in by the last government, a contract signed by the last government, to turn round RBS, a bank that had got itself into a complete mess," Cameron told television reporters.
"The government has made its views known, and that is why his bonus was cut in half compared to last year. But we do have to bear in mind that the alternatives to what is happening now could be even more expensive if you had a whole new team coming into RBS," he added.
Hester joined RBS in October 2008 from property company British Land (BLND.L) as RBS was reeling from its disastrous acquisition of Dutch bank ABN AMRO.
Britain used some 45 billion pounds of taxpayers' money to rescue RBS, leading to the eventual resignation of former head Sir Fred Goodwin, who was replaced by Hester.
Hester, who had previously worked at rival banks Abbey National and Credit Suisse (CSGN.VX), was given a brief to restructure RBS and return it to health, and RBS said he deserved his stock bonus for making the bank "safer."
Britain aims to eventually sell its state holdings in RBS and Lloyds back to the private sector, although volatile financial markets have meant the timing of any disposal is uncertain.