Review
ABC Shakeup: As expected, ABC fired its two top executives, Lloyd Braun and Susan Lynne. They will be replaced by Stephen McPherson, head of parent Walt Disney Co.’s Touchstone television studio, who will now run the network’s programming arm, and Lynne Sweeney, head of Disney’s entertainment-cable unit, who will have oversight over ABC’s television operations. ABC, the lowest-rated television network, has only a month before deciding on a lineup for next fall’s television season.
MGM Sale: Sony Corp. and a group of private equity firms are in talks with billionaire investor Kirk Kerkorian to acquire Metro-Goldwyn Mayer Inc. The Wall Street Journal reported that MGM was said to be seeking as much as $5 billion. Several news accounts indicated that Sony would shutter the MGM studio and keep its valuable library.
Fox Debut: News Corp.’s Fox television will introduce six programs in June, including a sequel to Paris Hilton’s “The Simple Life” as the network moves to a year-round schedule. Fox also will debut programs in July, September and January. The network is trying to attract viewers to its new comedies, dramas and reality shows without the interruption of the baseball playoffs that air in September and October.
FTC Approval: The Federal Trade Commission approved NBC’s planned purchase of Vivendi Universal SA’s U.S. entertainment assets, removing the last regulatory hurdle to completing the merger, a transaction valued at $14 billion. The companies expect to complete the purchase within the next few weeks. NBC Universal will become the world’s seventh-biggest media and entertainment company. Separately, Vivendi and Barry Diller resolved differences that threatened to delay the merger.
Gas Update: Local pump prices dipped again but Los Angeles still has the priciest gas of the major cities surveyed by the Energy Information Administration. For the week ended April 19, an average gallon of regular was $2.195, down from $2.210 the week before. Statewide, an average gallon was $2.148, down from $2.157.
New IPOs: Thomas Properties Group, founded by downtown real estate executive Jim Thomas, will sell as much as $250 million in stock as part of an initial public offering. In a filing with the Securities and Exchange Commission, Thomas Properties said the proceeds would be used to purchase additional real estate, including a bigger stake in Arco Plaza. The offering will not be a real estate investment trust as was done last year by Thomas’ former partner, Robert Maguire. Also registering last week was L.A.-based Ares Management, a private investment firm. It is seeking to raise $450 million for a publicly traded investment business to be called Ares Capital Corp.
Earnings Wrap-up: Countrywide Financial Corp. reported first-quarter net income of $691 million, compared with $326.3 million for the like period a year ago. The Calabasas-based mortgage lender also raised its profit forecast for the year.
Disney Vote: Walt Disney Co. Chief Executive Michael Eisner failed to get 73 percent of the votes for his re-election to the board cast by participants in the Burbank-based company’s retirement plans, according to former Disney director Roy Disney. Together with another former director, Stanley Gold, Roy Disney has been waging a campaign to oust Eisner. A Disney spokesman said that of the 36,000 participants in Disney’s employee savings plans, fewer than 6,000 active employees cast or withheld votes.
Preview
Sports Beat: The Dodgers are home for a three-game series against the New York Mets Tuesday through Thursday (27th-29th) and then a three-game weekend series against Montreal (30th-2nd). The Angels are away all week. The Avengers are home on Saturday (1st) against Arizona. Also on Saturday is the Kentucky Derby. On Sunday (2nd), it’s the Auto Club 500, part of Nascar’s Nextel Cup Series at the California Speedway in Fontana. Fox will televise the race.
Economic Reports: Monday (26th): March new home sales. Tuesday (27th): March existing home sales, April consumer confidence data from the Conference Board. Thursday (29th): First-quarter gross domestic product (advanced). Friday (30th): March personal income and personal spending, University of Michigan consumer sentiment data.
Dave Barry: The humor columnist for the Miami Herald participates in the Distinguished Speaker Series on Wednesday (28th) at Pasadena Civic Auditorium. Barry’s column appears in more than 500 newspapers in the United States and abroad and he has written 25 books. Program begins at 8 p.m. For information: (310) 546-6222.
Milken Meeting: The Milken Institute’s annual Global Conference gets started on Monday (26th) and runs through Thursday (28th) at the Beverly Hilton Hotel. Among the scheduled participants are Edgar Bronfman Jr., Steve Forbes, Paul Gigot, Mel Karmazin and Rupert Murdoch. For information: milkeninstitute.org.
Jazz Concert: In a prelude to the Playboy Jazz Festival at the Hollywood Bowl in June, a free community concert that features singer Lavay Smith will be Sunday (2nd) at the Beverly Hills Civic Center Plaza from 3-5 p.m. For information: (310) 449-4070.
Russian Talk: The director of the Russian News Agency ITAR-TASS, Vitaly Ignatenko, will be the featured speaker on Friday (30th) during a luncheon meeting of the Los Angeles World Affairs Council at the downtown Marriott Hotel. Ignatenko worked both under the USSR and the post-Soviet governments of Boris Yeltsin and Vladimir Putin. For information: (213) 628-2333.
Airport Report: Against a backdrop of local and federal probes into airport contracting practices, Los Angeles World Airports officials and L.A. Mayor James Hahn are set to release a revised environmental impact report for the proposed overhaul of Los Angeles International Airport on Wednesday (28th). Many expect components of the $9 billion plan to be scaled back as weeks of tough negotiations lie ahead before the plan reaches its first major hearings this summer.
