JMR's blog

Myspace Acquired: Email From CEO To Employees

Myspace CEO Mike Jones just sent out this mass internal email and press release confirming the company’s sale to Specific Media earlier this morning. Kara Swisher is reporting that the sale was for $35 million.

From what I’m hearing it’s been a rocky morning at the social network, which was bought by Newscorp in 2005 for $580 million, as job cuts went deeper than expected. The most significant departure? CEO Mike Jones will be leaving the company and is currently on a two month transition plan.

Myspace has steadily lost influence and value as Facebook’s “one graph to rule them all” campaign grew to dominate the space. On a more hopeful note, I’m also hearing that several of the laid off employees have already received calls from recruiters representing a mix of Silicon Valley and Southern California companies.

From: Mike Jones
Sent: Wednesday, June 29, 2011 11:26 AM
To: Myspace All
Subject: IMPORTANT COMPANY NEWS
Importance: High

Myspacers,

Today, we are announcing that Myspace will be acquired by Specific Media, one of the world’s leading online media and advertising platforms. Over the next few days you will be hearing from the team at Specific, including their CEO, Tim Vanderhook, regarding their exciting plans for Myspace and how it fits in with the overall vision of their company.

In conjunction with the deal, we are conducting a series of restructuring initiatives, including a significant reduction in our workforce.  I will assist Specific with the transition over the next two months before departing my role as Myspace CEO.

I wanted to take a minute to thank you all for the incredible experience it has been to lead this company and to work closely with all of you over the past several years. While I regret we won’t be working together at Myspace any longer, I am very proud of the work we have done here and believe we have performed with excellence – even under extremely difficult circumstances.

My time here at Myspace represents the most engaging and challenging time of my professional career. I have found our team to be comprised of the best people I have come across in our industry.

You can read the press release below.  Once again, thank you for all of your hard work and dedication.

Thanks,

-M

SPECIFIC MEDIA ACQUIRES MYSPACE FROM NEWS CORPORATION

Los Angeles, Calif. — June 29, 2011 – Specific Media, a digital media company, today announced it has acquired Myspace from News Corporation. As part of the agreement, News Corporation will take a minority equity stake in Specific Media. Additional terms of the agreement are confidential and will not be disclosed.

“Myspace is a recognized leader that has pioneered the social media space. The company has transformed the ways in which audiences discover, consume and engage with content online,” said Tim Vanderhook, Specific Media CEO. “There are many synergies between our companies as we are both focused on enhancing digital media experiences by fueling connections with relevance and interest. We look forward to combining our platforms to drive the next generation of digital innovation.”

Specific Media is an innovative global interactive media company that enables advertisers to connect with consumers in meaningful, impactful and relevant ways. Founded in 1999 by brothers Tim, Chris and Russell Vanderhook, Specific Media is currently headquartered in Irvine, CA and operates offices around the world.

http://techcrunch.com/2011/06/29/myspace-goes-to-specific-media-for-35m-ceo-is-out-press-release/

The Next Eleven (or N-11)

Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria,Pakistan, the Philippines, South Korea, Turkey, and Vietnam have been identified by Goldman Sachs as having a high potential of becoming the world's largest economies in the 21st century along with the BRICs.

The bank chose these states, all with promising outlooks for investment and future growth, on December 12, 2005.

Developed country

•  South Korea: Advanced economy (both CIA and IMF), High-income economy,^[2] Very High human development, High-income OECD member, Developed market (in FTSEindex)^[3] Full democracy, Development Assistance Committee member, G-20 major economies, Four Asian Tigers, KORUS FTA, Visa Waiver Program participant, APEC founding member, ASEAN Plus Three founding member, EAS founding member, Emerging Markets (MSCI Barra)

Newly industrialized country

•  Mexico: Upper-middle-income economy,^[2] High human development, OECD member, Advanced Emerging market,^[4] Flawed democracy, G-20 major economies, G8+5 member,NAFTA, European Union Association Agreement with FTA provisions, APEC member, Citigroup's World Government Bond Index.

•  Turkey: Upper-middle-income economy,^[2] High human development, OECD founding member, Secondary Emerging market,^[4] Hybrid regime, G-20 major economies, EU Customs Union, ECO member, EU associate member, Developing 8 Countries, NATO member, Organisation of the Islamic Conference founding member

•  Philippines: Lower-middle-income economy,^[2] Medium human development, Secondary Emerging market,^[4] Flawed democracy, G20 developing nations, APEC founding member, ASEAN founding member, EAS founding member

Developing country

•  Egypt: Lower-middle-income economy,^[2] Medium human development, Secondary Emerging market,^[4] Authoritarian regime, G20 developing nations, CAEU founding member,COMESA member, ENP member, Developing 8 Countries, CIVETS

•  Indonesia: Lower-middle-income economy,^[2] Medium human development, Secondary Emerging market,^[4] Flawed democracy, G-20 major economies, APEC founding member, OPEC member (has withdrawn from OPEC due to becoming a net oil importer, but has stated its desire to rejoin if it becomes as net exporter again), ASEAN founding member, EAS founding member, Developing 8 Countries, CIVETS

•  Iran: Higher-middle-income transition economy,^[2] High human development, Islamic Republic, OPEC and GECF founding member, Authoritarian regime, ECO member, Group of 15 member, Developing 8 Countries

•  Pakistan: Lower-middle-income economy,^[2] Medium human development, Secondary Emerging market,^[4] Hybrid Regime, G20 developing nations, SAARC founding member,ECO member, Developing 8 Countries

•  Vietnam: Lower-middle-income economy,^[2] Medium human development, Frontier market,^[5] Authoritarian regime, APEC member, ASEAN member, EAS founding member,CIVETS

•  Nigeria: Low - middle income economy,^[2] Medium human development, Frontier market,^[5] Flawed Democracy, AU member, OPEC member, Developing 8 Countries

•  Bangladesh: Low-income economy,^[2] Medium human development, Frontier market,^[5] Flawed Democracy, SAARC founding member, Developing 8 Countries

http://en.wikipedia.org/wiki/Next_Eleven

Emerging Markets Reshaping Private Equity?

Private Equity's Center of Gravity is Shifting Toward Emerging Markets as Returns in these Markets Accelerate.

Key Findings:

• Emerging markets' share of private-equity deals has increased from 5 percent to 30 percent over the last decade, rivaling the proportion of deals in the United States and Europe - and it is expected to increase.
• Returns from emerging markets have more than tripled since the 1990s to more than 17 percent today.
• The most attractive markets combine economic scale and favorable socioeconomic conditions, such as Brazil, Turkey, and Malaysia. Other high-profile markets such as Russia and Argentina appear to offer less potential.
• 'Western' investors will have to rethink their business models to succeed, including accepting minority rather than majority stakes in businesses, and generating value via operational improvements rather than leverage.
• Local private-equity firms in emerging markets could be tomorrow's giants.

Emerging markets are generating increasingly high returns for private-equity investors and could soon account for the lion's share of deals, according to a new study from IESE Business School and The Boston Consulting Group (BCG). However, the most attractive markets are not necessarily the ones that have captured the headlines in the past, and the key success factors for investors differ significantly from those that have worked in developed countries.

The study, which is based on an analysis of the largest data set of its kind, reveals that emerging markets' share of deals has increased steadily from 5 percent in 1998 to 30 percent in 2009, when the United States and Europe accounted for 34 percent and 38 percent of deals, respectively. Over the same period, emerging markets' share of deal volumes more than quadrupled to 21 percent. Moreover, there are strong signs that investors plan to step up their involvement in these markets. Approximately one-fifth of global dry powder, equivalent to about $231 billion or seven times annual deal volume (based on a five-year average), is earmarked for these markets, spanning all investment stages.

Increasingly high returns have been a key driver behind this shift toward emerging markets. During the 1990s, returns averaged just 5.3 percent but since 2000 they have more than tripled to 17.3 percent. Other factors that are pushing and pulling investors toward these markets include the widening gap between emerging- and developed-market GDP growth rates, and more attractive socioeconomic environments in emerging markets.

"The economic scale of a market is obviously critical for private equity but socioeconomic factors such as the market's degree of openness, legal protection for investors, and the liquidity of its local stock exchange is equally important if investors are to realize the market's full potential," says Professor Heinrich Liechtenstein of IESE Business School, one of the leaders of the study. "The most attractive markets for private equity are not necessarily the biggest economies."

The study used a novel framework to assess the relative attractiveness of markets, taking into account both GDP and a country's socioeconomic environment, based on IESE's Global Venture Capital and Private Equity Country Attractiveness Index. Some of the most promising markets according to this analysis were Brazil, India, Malaysia, Poland, South Africa, and Turkey, while certain countries such as Russia and Argentina appear to offer less potential due to their weaker socioeconomic environments. Although China's socioeconomic environment is not especially strong, its sheer size is likely to make it a major destination for private-equity investors.

To succeed in emerging markets, however, private-equity firms will have to apply different business models than those that have worked so successfully in the past in developed markets. For example, the research by IESE and BCG found that minority stakes in businesses not only account for 86 percent of all transactions in emerging markets but also produce three times the returns of majority stakes, which are the norm in developed markets. Investments in businesses that are focused on domestic markets also produce 18 percent higher returns than investments in internationally oriented companies do.

In addition, the winners in private equity in emerging markets create value through operational improvements, rather than leverage, and have a strong local presence. On average, the returns of domestic and international funds with local offices are more than five times higher than international funds without local offices.

"The overriding conclusion of the study is that emerging markets have come of age for private-equity investors," says Heino Meerkatt, a senior partner and managing director at BCG, and one of the leaders of the study. "Our findings also signal a new age for private equity, with a new center of gravity and different rules, plus potentially very different players in the future, including the possibility of local firms in emerging markets emerging as tomorrow's giants. Given the important role that private equity has played in developed-world stock markets in recent years, its shift to emerging markets has potentially much wider implications."

The primary data for our analyses came from International Finance Corporation (IFC) and covered 176 private-equity funds in emerging markets. We analyzed 942 data points from deals by these funds, spanning 75 emerging markets. Since 2000, IFC has committed nearly $3 billion to about 160 private-equity funds.

The Boston Consulting Group

The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. Founded in 1963, BCG is a private company with 70 offices in 41 countries.

Peugeot mise sur la 408 pour séduire la Chine

Présentation de la Peugeot 408 à Pékin. Le constructeur français lance ce modèle créé pour le marché chinois.

La marque au lion compte lancer un nouveau modèle chaque année en Chine. Une offensive qui appuie l'ambition du groupe PSA de conquérir 8% de ce marché à l'horizon 2015-2016.

Le groupe PSA ai­merait bien que l'année du Tigre qui vient de commencer soit aussi un peu celle du Lion. En présentant ce lundi la 408 à Pékin, Peugeot entend repartir à l'assaut d'un marché automobile chinois devenu le premier de la planète. «Nous repassons à l'offensive, déclare son directeur général, Jean-Marc Gales, sur un marché chinois qui est plus que jamais en tête de nos priorités.»

Peugeot lancera la vente de la 408 le 8 avril prochain, et ambitionne d'en vendre 100.000 exemplaires par an à partir de 2011. Et de faire progresser d'au moins 30% ses ventes totales en 2010 en passant de 110.000 à 150.000 voitures écoulées. Pour l'heure, la marque ne détient ici que 1,3% de part de marché. Le lancement s'est fait en première mondiale pour la Chine.

Fabriqué à Wuhan (province du Hubei), le modèle, même s'il devrait être commercialisé ultérieurement en Amérique latine et en Russie - et peut-être un jour en Europe -, a d'ailleurs été conçu pour les Chinois et aussi, en partie, par des Chinois. PSA s'est en effet doté depuis un an d'un centre de design à Shanghaï, employant environ 200 personnes, qui a travaillé sur le modèle extrapolé de la 308.

Véhicules «tricorps»

À l'inverse de l'Europe où les consommateurs font le choix de voitures à hayons, le marché chinois est caractérisé par une demande de véhicules «tricorps», avec coffre, réclamés par 75% des clients, ainsi que par une très forte exigence d'habitabilité accrue à l'arrière. La 408 se classe dans le segment supérieur de la gamme moyenne, qui dans son ensemble constitue 48% du marché chinois. Jusqu'à présent, Peugeot n'alignait que deux modèles, la 207 et la 307.

Après de noires années, faute de modèles nouveaux et adaptés aux goûts de la clientèle chinoise, PSA est donc en phase de reconquête. Son autre marque, Citroën, a lancé fin 2009 la C5 chinoise. Les débuts seraient prometteurs puisque plus de 10.000 commandes ont déjà été passées, et la C4 Tricorps lancée l'été dernier marche bien. Le groupe PSA, pourtant deuxième constructeur européen dans l'empire du Milieu derrière l'allemand Volkswagen, ne détient pour l'heure que 3,4% de part du marché chinois mais espère passer rapidement à 5%, puis à 8% en 2015-2016.

Grâce à de fortes incitations gouvernementales, le marché chinois a connu une folle croissance de plus de 50%, en 2009, avec plus de 13 millions de véhicules vendus. Et PSA a progressé au même rythme (52%) alors que ses ventes baissaient au niveau mondial.

Un SUV en préparation

«Même si cela va freiner, nous estimons qu'il va encore croître entre 10 et 20% en 2010, commente le patron de PSA pour la Chine, Claude Vajsman, et notre ambition est d'être au double du marché, soit 30% de croissance à comparer à une prévision moyenne de 15%.» Les sorties de nouveaux modèles devraient donc se poursuivre à un rythme soutenu. «Une nouvelle Peugeot sera lancée chaque année en Chine», assure ainsi Jean-Marc Gales. On parle d'une 508 chinoise pour 2011 et PSA travaille sur un 4×4 (SUV), type de voiture de plus en plus en vogue en Chine.

LIRE AUSSI » Automobiles : la Chine confirme sa suprématie
» Citroën repart à l'assaut du marché chinois

Le Figaro - Sociétés : Peugeot mise sur la 408 pour séduire la Chine

Largest Mergers and Acquisitions in History

A new pecking order

The Economist: There has been a change in Europe’s balance of economic power

FOR years leaders in continental Europe have been told by the Americans, the British and even this newspaper that their economies are sclerotic, overregulated and too state-dominated, and that to prosper in true Anglo-Saxon style they need a dose of free-market reform. But the global economic meltdown has given them the satisfying triple whammy of exposing the risks in deregulation, giving the state a more important role and (best of all) laying low les Anglo-Saxons.

At the G20 summit, France’s Nicolas Sarkozy and Germany’s Angela Merkel stood shoulder-to-shoulder to insist pointedly that this recession was not of their making. Ms Merkel has never been a particular fan of Wall Street. But the rhetorical lead has been grabbed by Mr Sarkozy who declares laissez-faire a broken system. Jean-Baptiste Colbert once again reigns in Paris. Rather than challenge dirigisme, the British and Americans are busy following it: Gordon Brown is ushering in new financial rules and higher taxes, and Barack Obama is suggesting that America could copy some things from France, to the consternation of his more conservative countrymen. Indeed, a new European pecking order has emerged, with statist France on top, corporatist Germany in the middle and poor old liberal Britain floored.

Behind this sits a big debate not only about the direction of the European Union, the world’s biggest economic unit, but also about what sort of economy works best in the modern world. Thirty years after Thatcherism began its cruel magic in Britain, continental Europe still tends to favour a larger state, higher taxes, heavier regulation of product and labour markets and a more generous social safety-net than freer-market sorts like the Iron Lady would tolerate. So what is the evidence for the continental model being better?

Mr Obama is right to admit that continental Europe has coped well. Tough job-protection laws have slowed the rise in unemployment. Generous welfare states have protected those who are always the first to suffer in a downturn from an immediate sharp drop in their incomes and acted as part of the “automatic stabilisers” that expand budget deficits when consumer spending shrinks. In Britain, and to an even greater extent in America, people have felt more exposed.

The downturn has also confirmed that the continental model has some strengths. France has a comparatively efficient public sector, thanks in part to years of investment in better roads, more high-speed trains, nuclear energy. Nor is it just a matter of pumping in ever more taxpayers’ cash. By any measure France’s health system delivers better value for money than America’s costlier one. By design as well as luck, much of continental Europe avoided the debt-fuelled housing bubbles that popped spectacularly in Britain and America though Spain did not.

Individual countries have specific failings of their own. Even if it did everything else right, Germany’s overreliance on exports at the expense of consumer spending has proved a grave weakness in a downturn; its banks also look weak. Italy and Spain have seen sharp rises in unit labour costs and their labour-productivity growth has stalled or gone into reverse.

For the liberals, even if the cycle swings back in their direction, the financial crisis and the recession have shown up defects in the way they implemented their model. Getting regulation right matters as much as freeing up markets; an efficient public sector may count as much as an efficient private one; public investment in transport, schools and health care, done well, can pay dividends.

G20 summit snapshot

BBC: The G20 group of 19 of the world's largest national economies, plus the EU comprise 85%^[3] of global gross national product, 80% of world trade (including EU intra-trade) and two-thirds of the world population.

Membership does not reflect exactly the top 19 national economies of the world in any given year. The organization states:^[1] “ In a forum such as the G-20, it is particularly important for the number of countries involved to be restricted and fixed to ensure the effectiveness and continuity of its activity. There are no formal criteria for G-20 membership and the composition of the group has remained unchanged since it was established. In view of the objectives of the G-20, it was considered important that countries and regions of systemic significance for the international financial system be included. Aspects such as geographical balance and population representation also played a major part.”

All 19 member nations are amongst the top 31 economies as measured in GDP at nominal prices in a list published by the International Monetary Fund (IMF) for 2008.^[4] Excluding Taiwan, the countries of Switzerland (21), Norway (24), Iran (27) and Venezuela (30) are excluded from the G-20, while ranking higher than some of the members. Spain (9), Netherlands (16), Poland (18), Belgium (20), Sweden (22), Austria (25), Greece (26) and Denmark (28) are included only as part of the EU and not independently. When the countries' GDP is measured at purchasing power parity (PPP) rates, all 19 members are among the top 24 in the world in 2008, according to the IMF.^[5] Excluding Taiwan, the countries of Iran (17) and Thailand (23) are not G-20 members, while Spain (12), Netherlands (19) and Poland (20) are only included in the EU slot. However, in a list of average GDP, calculated for the years since the group's creation (1999-2008) at both nominal and PPP rates, only Spain, Netherlands and Poland appear above any G-20 member in both lists simultaneously.

 

The G20 leaders met in London to discuss the economic crisis. Click to find out about the challenges they face.

Argentina
Australia
Brazil
Canada
China
France
Germany
India
Indonesia
Italy
Japan
Mexico
Russia
Saudi Arabia
South Africa
South Korea
Turkey
United Kingdom
United States
European Union

Coca-Cola to invest $2bn in China

FT: Coke will invest $2bn in China over 3 years and expects to maintain double-digit growth in that market.

News of fresh spending by Coke in China - which has recently become the drinks maker's third largest market, behind the US and Mexico - comes as debate grows over whether Beijing is spending enough to stimulate domestic consumption and ward off a precipitous slowdown in the Chinese economy.

Coke's $2bn investment will exceed the company's total investment in China since 1979, which amounts to $1.6bn.

The announcement comes at a time when Coke is vwaiting for a decision from the Chinese authorities on whether it can proceed with a proposed $2.4bn takeover of China Huiyuan Juice group, a Hong Kong-listed company that boasts a 42% share of China's pure fruit juice market and is one of China's best known drinks brands.

The deal, which would be the largest foreign takeover of a Chinese company, has come under nationalist inspired criticism on the internet and in the press and will pose the biggest test so far of China's new antimonopoly law that took effect last August.

Coke remains in close contact with the regulatory authorities, but refused further comment.Investors are watching the decision closely for signs of hostility toward foreign takeovers of well-known brands.

Coke opened its new $90m headquarters complex in Shanghai, which includes its largest R&Dcentre in Asia.Coke has so far "only scratched the surface" of the Chinese market.

Coca-Cola volume sales in China grew 29% in the 4th quarter of last year. China's per capita consumption of ready-to-drink beverages remains only about a third of the global average.

With 300m-350m Chinese expected to join the ranks of the middle class by 2020 - and with China expected to account for a large chunk of world urbanisation of 1bn by 2020 - Coke's China growth will remain strong in spite of "some slowing down of the economic pace".

Coke expects China to take over as its largest market in about a decade as the company had recently brought that date forward to around 2018, from 2020-2025 previously.

World's largest firms by share value

Chinese oil firm PetroChina has trumped US rival Exxon Mobil to become the world's biggest firm by market value on its first day of trading in Shanghai.

 China is the world's second largest oil consumer

PetroChina saw its shares nearly triple from 16.7 yuan to end at 43.96 yuan, giving PetroChina a market value of about $1 trillion. This is more than twice the $488bn value of oil producer Exxon Mobil.

But some analysts said the PetroChina's Shanghai share price stemmed from speculation and was too high. State-owned PetroChina already has shares traded in Hong Kong and its flotation on China's mainland stock exchange in the country's largest domestic share sale represented just 2% of the total number of shares it has listed.

The opening price is really too high as far as PetroChina's corporate fundamentals are concerned Wang Jing, an analyst at Orient Securities

The fervent interest in the company underscores investor confidence in China's booming economy.

The Chinese stock market soared past the UK as the world's third largest by value after PetroChina's $9bn Shanghai listing. The market has gained 110% already this year.

Market bubble?

In terms of profit though, Asia's top oil and gas producer does not even make it into the world's top 50 companies, which some analysts say should sound alarm bells about the firm's valuation.

Its current share price is 60 times the amount it currently earns per share. This is far above the global average forecast by oil producers, which is 18 times current earnings. Many expected the stock to open at about 35 yuan.

World's largest firms by share value:

PetroChina: $966.05bn

Exxon Mobil: $488bn

General Electric: $407.5bn

China Mobile: $392.33bn

Industrial & Commercial Bank of China: $352.85bn
 

"The opening price is really too high as far as PetroChina's corporate fundamentals are concerned," said Wang Jing, an industry analyst at Orient Securities in Shanghai.

This view that at 60 times its earnings per share PetroChina is too pricy was reinforced by international investors taking profit in the firm's Hong Kong shares, which fell 8.2% to 18 Hong Kong dollars.

Oil price

Other analysts observed that surging world oil prices, which touched the $96 level in New York on Friday, had been beneficial for the firm's debut, particularly with China raising fuel prices by 10% last week.

But petrol prices are controlled from Beijing, which has historically used its power to shield consumers from inflation and prevent any resultant social unrest.

Dong Yong at Haitong Securities warned that in the future, high crude prices could actually become negative for the oil and gas producer if it finds it is not being compensated for the high costs to its large refinery operations.

PetroChina, owned by China National Petroleum, said it will use the money to fund expansion of its Chinese oil fields.

BBC NEWS | Business | PetroChina is world's top company

Ranking of the biggest economies

The 60 biggest economies by GDP (PPP) ranked by the IMF.

Rank	Country	GDP (PPP) $M
—	World	64,903,314
—	European Union	14,712,369
1	United States	13,843,825
2	People's Republic of China	7,034,8381
3	Japan	4,292,198
4	India	2,996,588
5	Germany	2,812,255
6	United Kingdom	2,167,837
7	Russia	2,089,607
8	France	2,067,707
9	Brazil	1,837,149
10	Italy	1,787,897
11	Mexico	1,486,302
12	Spain	1,351,521
13	Canada	1,269,688
14	South Korea	1,201,866
15	Turkey	885,905
16	Indonesia	838,479
17	Australia	762,887
18	Iran	757,488
19	Republic of China	695,388
20	Netherlands	647,966
21	Poland	621,984
22	Saudi Arabia	555,055
23	Argentina	524,140
24	Thailand	519,786
25	South Africa	467,381
26	Pakistan	459,958
27	Egypt	403,961
28	Colombia	378.624
29	Belgium	375,993
30	Malaysia	357,391
31	Sweden	334,641
32	Venezuela	334,575
33	Greece	324,616
34	Ukraine	320,126
35	Austria	317,807
36	Switzerland	300,186
37	Philippines	299,626
—	Hong Kong	292,771
38	Nigeria	292,682
39	Czech Republic	248,902
40	Norway	247,416
41	Romania	245,540
42	Chile	231,061
43	Portugal	230,549
44	Singapore	228,116
45	Algeria	224,748
46	Vietnam	221,397
47	Peru	219,015
48	Bangladesh	206,658
49	Denmark	203,677
50	Hungary	191,324
51	Ireland	186,166
52	Israel	185,888
53	Finland	185,485
54	Kazakhstan	167,622
55	United Arab Emirates	167,296
56	Kuwait	130,113
57	Morocco	125,250
58	New Zealand	111,721
59	Slovakia	109,587
60	Belarus	105,246