Review & Preview
News Loss: News Corp., parent of the Fox TV network, reported a fourth-quarter net loss of $1.74 billion, after writing down its stake in Gemstar-TV Guide International Inc. by another $1.9 billion. Fourth-quarter revenue climbed 11 percent, to $3.83 billion, as advertising sales rose at the company’s U.S. television stations and cable networks. Excluding Gemstar and other costs, News Corp. said it would have reported a fourth-quarter profit. Net income at the company’s separately traded Fox Entertainment Group, which includes the Fox movie studios and Fox Broadcasting, fell to $40 million from $174 million for the like period a year ago.
Gemstar Woes: Gemstar-TV Guide International Inc. said it would restate financial statements for last year amid reports of a showdown between the company’s chief executive, Henry Yuen, and News Corp. Chairman Rupert Murdoch. News Corp. holds a 43 percent stake in Pasadena-based Gemstar. The restatement involves reducing revenue from the company’s TV Guide subsidiary by about $20 million.
Technicolor Settles: Technicolor Videocassettes Inc. has agreed to settle a sexual harassment lawsuit filed by 18 women for $875,000. Under a consent decree filed in U.S. District Court, Technicolor agreed to have the Equal Employment Opportunity Commission monitor working conditions at the Camarillo-based division of Thomson Multimedia. The women involved in the complaint said they endured a hostile workplace environment in which lewd remarks and sexually explicit pictures were common. The Business Journal first reported on the complaints last year.
Merrill Back: The Orange County Board of Supervisors unanimously approved a policy in which business would resume with Merrill Lynch, which has been accused of contributing to the county’s 1994 bankruptcy. Under the new policy, any Merrill Lynch-related business must be made public and approved in advance by supervisors. In 1998, Merrill agreed to pay $420 million to settle a civil lawsuit alleging that it had encouraged Orange County officials to make unconventional investments.
Register Deal: The Hoiles family, which owns Freedom Communications Inc., parent of the Orange County Register, agreed to transfer ownership of the media company to the fourth generation of family members. The generational transfer, which could take up to 18 months to complete, could involve selling shares to the public and tapping private equity markets in order to raise cash.
Global Sale: Global Crossing Ltd., the scandal-plagued telecommunications company, accepted a $250 million bid from Hutchison Whampoa Ltd., controlled by Hong Kong billionaire Li Ka-shing. The purchase price is a huge discount from the $750 million Hutchison offered in late May and reflects the depressed value of telecom properties. Holders of Global stock, once worth more than $62 a share, will get nothing.
Jobless Decline: L.A. County’s unemployment rate fell to a seasonably adjusted 6.7 percent in July, from a revised 7.3 percent the previous month. Statewide, the jobless rate was 6.3 percent, down from 6.5 percent in June. Economists noted that L.A.’s sharp drop might be due to seasonal fluctuations that aren’t necessarily reflective of an improved job climate.
Staying Put: The Los Angeles Unified School district voted to stay at downtown’s KPMG Tower for its short-term space requirement, agreeing to a 39-month lease worth $21.6 million. The LAUSD, which has 300,000 square feet of offices in the building, needed 225,000 square feet due to Bank of America’s staggered move-out of the Beaudry Building, which the district bought last year.
PREVIEW
Hot Time: Earnings season cools down, as only Hot Topic, the teen oriented mall retailer, is set to report second quarter earnings this week. Earnings are projected to be 13 cents per share, the same as the year-earlier quarter.
Breaking Up: Another discussion on proposed Valley secession, but this time it’s from a business perspective. Jack Kyser, chief economist of the Los Angeles County Economic Development Corp., and Rusty Hammer, president of the L.A. Area Chamber of Commerce, are among the speakers at a gathering of businesspeople, legislators and analysts from 4 p.m. to 6:30 p.m. on Thursday (22nd) at the Sportsmen’s Lodge, 12825 Ventura Blvd., Studio City. Admission is $35 at the door. Information: (818) 379-7000.
Sports Beat: The Dodgers are in town for a three-game series against the Florida Marlins (20th, 21st, 22nd) and then the Atlanta Braves for the weekend (23rd, 24th, 25th). With the Arizona Diamondbacks coming to town next week, this could be a make-or-break point in the Dodger season.
Asia Talk: C. Lawrence Greenwood, the senior U.S. official to the Asia Pacific Economic Cooperation Forum, speaks on Thursday night (22nd) before a dinner meeting of the Los Angeles World Affairs Council and the U.S.-Mexico Chamber of Commerce. At the Wilshire Grand Hotel in downtown. For information: 213-628-2333.
CalFed Hearing: Several community groups have scheduled a public meeting on Wednesday (21st) about Citigroup Inc.’s proposed takeover of California Federal Bank. The hearing will be held from 10 a.m. to 3 p.m. at the Ronald Reagan State Building, 300 S. Spring St. The community groups, led by the Greenlining Institute, were unable to convince the Federal Reserve Board to hold a public hearing to discuss, among other things, Citigroup’s history of lending to those with poor or no credit history.
Commission Mission: The L.A. County Beach Commission meets Wednesday (21st). The city has canceled Public Safety, Planning and Land Use, Transportation and Budget and Finance committee meetings.
Life Style: Chabad of California hosts its annual “L’Chaim To Life!” Telethon on Sunday (25th). L.A. radio personality Dennis Prager will host the event, which will be televised on KCAL-TV (Channel 9). Scheduled celebrity guests include Elliott Gould, Regis Philbin and Jon Voight.
