Feds Investigating Homestore.com
The Justice Department has formally opened an investigation into possible anti-competitive business practices by the Internet’s largest real estate Web site, Homestore.com.
Antitrust lawyers have asked the Thousand Oaks-based firm to provide details about its business strategy. Homestore has secured 95 percent of the nation’s home listings, about 1.3 million entries, largely through its relationship with the industry’s largest trade group, the National Association of Realtors.
The probe strikes at the longstanding real estate-industry practice that keeps agents in tight control of residential sales listings. Homestore officials denied that the firm has engaged in anti-competitive practices.
NetZero Partners With Qualcomm
Qualcomm Inc., the wireless technology giant best known for its digital phone network, entered the Internet service provider business, purchasing a 10 percent stake in NetZero for $144 million.
The deal positions Westlake Village-based NetZero to be the first Internet service provider to test and deploy Qualcomm’s wireless High Data Rate, or HDR, technology. When it becomes available within the next two years, HDR could allow mobile Web surfers to access the Internet everywhere that mobile phones work, and at speeds faster than those currently offered by cable modems and digital subscriber line hookups.
In the meantime, San Diego-based Qualcomm plans to market NetZero’s free Internet service to the 19 million users of its Eudora electronic mail management software as a way to help NetZero gain on rivals America Online and EarthLink Network.
Gun Makers Return Legal Fire
Seven major gun makers filed a lawsuit in federal court seeking to stop a growing movement by government officials to force changes in the design and sale of firearms.
The suit accuses U.S. Housing and Urban Development Secretary Andrew Cuomo and officials with 16 state and local governments, including Inglewood, of a conspiracy to strict trade with the firearm industry. Los Angeles, though not named as a defendant, is considering using economic pressure to force gun companies to change.
The suit seeks to block officials from giving preference in their purchases of police firearms to gun makers that adopt a groundbreaking code of conduct patterned after one signed last month by Smith & Wesson, which agreed to develop trigger locks and “smart guns” that can only be fired by owners.
Times Gets New Leaders
John Puerner officially took over as publisher of the Los Angeles Times. John Carroll became editor, and both pledged to maintain editorial integrity and local decision-making in the paper’s news operation.
Tribune Co. of Chicago announced the personnel changes as part of its $6.38 billion takeover of the Times and its parent company, Times Mirror Co. The deal is expected to be completed in late June.
Puerner, 48, publisher of the Tribune-owned Orlando Sentinel since 1993, replaces Kathryn Downing as both publisher and president of the Times. Carroll, former editor of the Baltimore Sun, replaces Michael Parks.
At the same time, John W. Madigan, chairman, president and chief executive of Tribune Co., took over as chairman of Times Mirror, replacing Mark Willes, who surrendered his titles of chairman, president and CEO.
Starting Teachers Get Raise
The Los Angeles school district and the teachers union announced an agreement that would raise beginning teachers’ salaries to $37,000.
The increase would make first-year, fully credentialed Los Angeles teachers with bachelor’s degrees the highest-paid first-year teachers in L.A. County. Under the agreement, the minimum salary for eligible teachers would increase from $32,569 to $37,000 for the 1999-2000 school year.
The move is not part of the broader contract negotiations between the district and United Teachers-Los Angeles, which are expected to begin sometime next month.
Media Firm Plans IPO
Entravision Communications Corp., a rapidly growing Spanish-language media company, plans to raise as much as $615 million in an initial public offering, according to federal filings.
The Santa Monica-based company has expanded its Spanish-language radio, television and print media holdings dramatically in recent months through a string of acquisitions.
Univision Communications Inc., which runs the largest Spanish-language broadcasting network in the country, is a substantial backer of Entravision, having invested $120 million. Once pending deals are completed, Entravision will own 31 TV stations, with Univision affiliates in 17 of the largest U.S. Hispanic markets.
MGM Does Deal With Showtime
Metro-Goldwyn-Mayer Inc. agreed to provide more movies to Viacom Inc.’s Showtime Networks through 2008 and will co-produce three new television series with the company.
MGM will receive about $1.4 billion under the contract, a person familiar with negotiations said. Showtime will have exclusive pay-TV rights to all MGM movies released through 2008 and will license rights to as many as 1,200 films from MGM’s library.
Santa Monica-based MGM’s TV production arm and Showtime also will create three original series to premiere in 2003, 2005 and 2007.
Tobacco Sales Permits Approved
The L.A. City Council gave initial approval to an ordinance that would require retailers to obtain permits to sell tobacco.
Under City Attorney James K. Hahn’s proposed tobacco enforcement program, retailers each year would obtain a free tobacco sales permit from the city. If retailers are caught selling tobacco to a minor, they could lose their permit for up to a year.
The ordinance also bans the use of self-service tobacco displays. Hahn said that to monitor compliance, two teams of investigators and underage “sting” operatives would attempt to buy cigarettes at stores in about 1,000 spot checks annually.
