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Being graceful – and creative - with all that money
The world of billionaires grows
Between the fast moving events in Ukraine and the hoo-dee-doo in Facebookistan this past week scant attention was paid to billionaire Carlos Slim raising his stake in the New York Times Company. Sr. Slim is best known as the world’s second richest person, after Bill Gates, and principal owner of telecom Telmex and mobile holding company America Movil, Latin America’s largest.
Back in 2009 Sr Slim graciously loaned US$250 million to the New York Times Company, which was repaid in 2012, and received for his beneficence warrants for shares that expire at the beginning of 2015. Those will be exercised this year, reported Bloomberg (February 20), and Sr. Slim’s common share stake in the New York Times Company will rise from about 8% to about 17%. The Ochs-Sulzberger family owns the controlling Class B shares.
The investment involves the “joint participation” with Proto Organization, the investment house owned by Alejandro Proto, reported Spanish news agency EFE (February 21). “Proto Organization and president Alessandro Proto, a friend of Carlos Slim, agreed to support the purchase of a majority stake in New York Times,” said a company statement, quoted by Spanish news agency EFE (February 21). Proto’s stake in the New York Times Company common stock will be 2%. Proto holds small stakes in RCS MediaGroup and UK pay-TV operator BSkyB.
It goes without saying that congratulations are in order for mobile messaging platform WhatsApp co-founder/developer Jan Koum’s eyeball bleeding US$19 billion deal with Facebook. Cash the check, dude. Koum’s net worth, Forbes estimates, is now US$6.4 billion.
He, co-founder Brian Acton and Sequoia Capital principal Jim Goetz, who provided seed, signed the deal at the now abandoned social welfare office where Koum once stood in line for assistance. In 1993 at age 16 he and his mother immigrated from Ukraine to Mountain View, California, of all places. Mr. Koum is now one of the wealthiest Ukrainians, within shouting distance, so to speak, of Rinat Akhmetov (estimated US$12.8 billion), also of humble beginnings.
News station to claim compensation for regulator damages
“heavy political interference”
Four years battling authorities over licensing has come at considerable cost for Budapest news-talk radio station Klub Radio. Owner/manager András Arató is considering asking for compensation from the Hungarian Media Council (Médiatanács), reported Világgazdaság (February 19). Last week the Klub Radio FM frequency was switched, reducing the station’s coverage.
Klub Radio drew considerable international attention after losing its license in a dodgy renewal process, complicated by the government retroactively changing application rules, followed by a successful court appeal and then a license renewal decision moving the station to an FM frequency with diminished coverage. Mr. Arató claims “heavy political interference” and many international media watchers agreed that the right-wing government of Prime Minister Viktor Orban was stifling dissenting media. (See more on media in Hungary here)
Klub Radio has been allowed to operate for the last year under two month license renewals from the media authority, which, according to Mr. Arató, has diminished advertising revenues. The compensation claim for “material and moral damages” has not been officially filed nor an amount calculated. Mr. Orban’s Fidesz party is favored to maintain its commanding majority in April parliamentary elections, said Reuters (February 16).
Media mission evacuated, media owners urged to act
Murdered reporter leaves widow, young son
Violence returned to Ukraine’s capital Kyiv Thursday morning (February 20) after a brief nighttime respite. Media outlets have turned their full attention to the political and social crisis engulfing the country.
The regional state broadcaster TRK in Lviv replaced entertainment programming with live talk shows, reported Telekritika (February 20). The Lviv regional assembly declared autonomy Wednesday (February 19) from the central government. The Lviv region in northwestern Ukraine borders Poland.
In Russian-speaking Odessa, southern Ukraine, helmeted thugs wearing “antimaidan” armbands beat up a photojournalist for television channel Inter, camera and hand shattered. The “titushki” also attacked other media workers covering a rally in central Odessa.
Billionaire Dmitry Firtash, who acquired national channel Inter a year ago and heads the Ukraine Employer’s Association, called for politicians “to return to Parliament and resolve issues in a civilized manner,” reported Pravda (Ukraine) (February 19). Victor Pinchuk and Rinat Akhmetov, both billionaires and owners of significant media outlets in Ukraine, also called for an end to the violence.
A former business partner of Mr. Pinchuk, publisher Igor Ljashenko, penned an open letter asking big TV owners to devote more airtime to news events in Kyiv. “You once said you are grateful to the country of Ukraine for your success. It’s time to help the country and the Ukrainian people.”
A group representing international media watchers on mission in Kyiv were evacuated Thursday morning to the OSCE offices. The International Partnership Mission, which includes WAN-IFRA, RSF, IFJ and Ukrainian national media associations, issued a statement condemning the murder of Vesti reporter Vyacheslav Veremyi by “titushki” on Wednesday. (See WAN-IFRA statement here) Telekritika reports that Veremyi’s widow and 4 year old child are in dire financial straits.
Reality is taxing
Cow-milking takes skill
Cash winnings from reality TV shows are taxable, said a German tax court. A contestant on the RTL show Die Farm who went on to become the last person standing after the axe-throwing and cow-milking claimed the proceeds were the same as gambling winnings. No so, said the Münster finance office; winning took skill.
In the 2010 7 week series, contestants were dropped off at a “farm in the Norwegian wilderness” and left to fend for themselves, one by one voted off. The winner was named Farmer of the Year and received €50,000. RTL cancelled the show after one season.
Accomodation and food expenses could, however, be claimed as business expenses, said the tax court ruling. Two years ago the German Federal Tax Office claimed a Big Brother winner owed tax on €1 million in earnings. (JMH)
Black Tuesday in Kyiv
Photojournalists still targeted
Violence prevailed in central Kyiv as security services moved on demonstrators resulting in as many as seven deaths, reported major international news services (February 18). Cable/satellite all-news channel 112 TV began live coverage under the banner “Black Tuesday”. Major Ukrainian media outlets, many criticized for limited and selective coverage of the EuroMaidan protests, broke with scheduled programming.
Ukrainian media monitor web portal Telekritika reported 18 media workers injured before the 18h00 local time deadline issued by President Viktor Yanukovych for demonstrators to clear out or else. Most of the injured, seemingly targeted, were photojournalists and television camera operators. Some were beaten by the official Berkut riot police, others by the unofficial “titushki,” young guys in tracksuits roaming the streets looking for people to beat up. A few were hit by rubber bullets and at least one a grenade. Fortunately, a flak jacket prevented serious injury.
“I had on a helmet with the word ‘press’ on it, a big red badge with the word ‘press’ and my (reporters) identity card,” said newspaper Vesti photojournalist Vladimir Borodin. “The Berket came and told me to give them my camera. Explaining didn’t help. I tried giving them the memory card; not enough. They hit me on the hands and feet until I gave up my camera. They also took my documents, smartphone and camera bag.”
Broadcaster receives more state aid, a new director
“not a business decision”
The shareholders council of leading Russian independent news-talk radio channel Ekho Moskvy dismissed general director Yuri Fedutinov with immediate effect and without comment, reports lenta.ru (February 18). Mr. Fedutinov had been with Ekho Moskvy for 22 years and is replaced by Ekaterina Pavlova, vice president for broadcasting at Radio Voice of Russia. Ekho Moskvy is majority owned by Gazprom Media (66%) with employees holding a minority stake (34%).
Gazprom Media is a subsidiary of Gazprombank, itself a subsidiary of State-owned energy company Gazprom. Last year Gazprom Media, already Russia’s largest media holding company, acquired the radio assets of ProfMedia and named Mikhail Lesin, once head of Russia’s Media Ministry. Media watchers inside and outside Russia viewed expansion at Gazprom Media and the rise of Mr. Lesin, credited for designing State-owned international TV channel Russia Today, as evidence of further government control over the media sector. (See more on media in Russia here)
”We see this as unfair and dishonest,” said Ekho Moskvy editor-in-chief Alexei Venediktov, quoted by RAI Novosti (February 18). “(Fedutinov) ensured prosperity for 22 years as general manager. We paid dividends. We were profitable. This is not a business decision but a political one.”
Mr. Venediktov, a founder of Ekho Moskvy; has long clashed with Russia’s rich and powerful and, notably, remains standing. “I’m not going to resign even with this unfair and unjust decision. As long as I sit in this chair the editorial policy will remain unchanged.”
Another photo to bring tears to your eyes, literally
“I flew and fell down”
Last week, several days before the World Press Photo awards were announced, reporter Hüsna Sari, working for Ulusal TV, was covering demonstrations in Ankara, Turkey as she was hit by a blast from a police water cannon. A photographer caught the moment as she, microphone in hand, was sent flying. Several reports suggested the red color of the water indicated a caustic substance had been added.
 “At that moment, I was recording in front of my cameraman,” Ms Sari recalled to Hürriyet Daily News (February 14). “I was caught in the crossfire. By showing my microphone, I tried to explain to the police that I was a journalist. The water hit my back severely. I remember how I flew and fell down. I tried to stand up, but I was targeted by the water cannon again for a few more times. I felt intense pain in my ribs. My friends took me to a hospital. I believe the police intentionally target members of the press.”
In the same incident, Halk TV cameraman Ozbey Ozay suffered eye injuries from rubber bullets fired by police. Media regulator RTüK fined Halk TV for live coverage of the Taksim Gezi Square protests in May 2013. The photo of Ms Sari totally soaked social media in Turkey and flew around the world via international media, including the New York Times. (See video from Hürriyet TV here) Unfortunately, a credit to the photojournalist cannot be found.
Publisher blames pressure for digital quandary
“so excited”
Publishers are, it seems, running fast and furious into digital products and away from the printed page. Many, said big German publisher Hubert Burda Media owner and CEO Hubert Burda to Handelsblatt (February 17), would choose “to go out of the business quickly. They were too slow earlier and reacted wrong to the internet. Today they act too hasty, so excited, simply because they no longer believe in their traditional business.” (See more on media in Germany here)
Herr Burda pointed a finger at competitor Axel Springer, which has sold print titles, invested in digital media and even opened an outpost in Silicon Valley. “I can imagine very well that Springer has to operate under pressure from the stock market and individual investors. Among them are investors who are simply no longer interested in printed goods.”
The recent decision by European Commission (EC) Competition Commissioner Joaquin Almunia to accept concessions by search engine giant Google in the three year anti-trust dispute has not pleased Herr Burda, who also serves as president of the German Magazine Publishers Association (VDZ). “If the US corporation gets away with it, it will bring on even more difficult times for us and all competitors.” (JMH)
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