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Breaking up Is Hard to Do

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Breaking up Is Hard to Do BRONX BOMBERS producers want to lure more men to Broadway shows CRAIN’S® NEW YORK BUSINESS PAGE 21 VOL. XXX, NO. 3 WWW.CRAINSNEWYORK.COM JANUARY 20-26, 2014 PRICE: $3.00 GREAT DIVIDE: The Lincoln Tunnel nets $167 million byrne ’ annually, but many other Port Authority assets lose money. stephen o See WORD TK on Page xx Sick-days Breaking up is hard to do expansion Why the Port Authority endures Port up,” said Carol Kellermann, president of the Citizens Budget Commission. despite political interference, A breakup might sound like fair comeuppance for the Port blindsides scandal and lots of red ink Authority, a massive government body that’s now seen as a jobs bank for Gov. Chris Christie’s friends. Carving up the In Manhattan alone, BY AARON ELSTEIN agency into its New York and New Jersey parts would cer- tainly simplify the chain of command in an unwieldy organ- 28,000 firms would It didn’t take long after the George Washington Bridge traf- ization that effectively has two chief executives and a board be newly hit by law fic caper erupted for people to start demanding dramatic that reports to two governors,who each have veto power over taking effect in April change at the Port Authority of New York and New Jersey.By decisions. Even a consulting firm hired by the authority de- a unanimous vote, the New Jersey state Senate urged Con- scribed management two years ago as “dysfunctional.” BY ADRIANNE PASQUARELLI gress to examine the “organizational structure” of the agency, “It could be simpler and cleaner if you separated the dif- AND ANDREW J. HAWKINS which runs the region’s bridges, tunnels, airports and much ferent parts of the Port into individual agencies,”said Stephen The clock is ticking for tens of thou- else. Others called for more drastic measures. Berger, a former Port Authority executive director.“It would sands of small business owners who “I’ve started hearing people say that it’s time to break the See BREAKING UP on Page 18 must prepare for an expansion of the city’s paid-sick-days law. Business executives were shocked 03 REPORT SMALL BUSINESS 5 last week that Mayor Bill de Blasio and Obamacare changes force owners to shop City Council Speaker Melissa Mark- Viverito would unveil, without any carefully for health coverage Page 11 public discussion, a new law that elim- inates hard-fought exemptions meant THE LIST Largest SBA lenders Page 13 to protect vulnerable enterprises. NEWSPAPER See SICK LEAVE on Page 19 71486 01068 0 20140120-NEWS--0002-NAT-CCI-CN_-- 1/17/2014 5:38 PM Page 1 REPORTER’S NOTE Waiting for BdB FYICRAINSNEWYORK.COM I was sitting in the office of a buttoned-down businessman last Charter blows a fuse week, listening to him moan about the new regime at City Hall. It as TWC plays hard-to-get wasn’t about Mayor Bill de Blasio’s fter months of wooing Time Warner Cable plan to tax the rich or his fondness with the M&A equivalent of chocolates for progressive policies that tend to and flowers, Charter Communications has hit businesses square in the wallet. Andrew J. Hawkins A lost patience. “I just don’t know who to talk to,” Last week, after Charter’s latest offer was the executive grumbled. As a rejected, it dispensed insults instead of treats. In bloomberg news reporter, I feel his pain. Uncertainty swirls around the hopes of getting Time Warner shareholders to jump at the $132.50-a-share (or $38 billion) offer brand-new administration. How will the mayor that company management had turned down, Charter called the object of its affections a persuade Gov. Andrew Cuomo to raise taxes? Whom “turnaround project” with the lowest customer satisfaction in the industry and a “failed operating will he appoint next? And how late will the day’s strategy.” Manhattan-based Time Warner’s shortcomings go back half a decade, the spurned suitor press conference start? Thirty minutes? Forty? Mr. de said—way before it lost thousands of subscribers in its programming battle last year with CBS. Blasio’s record is 55. Our complaints elicit indifferent Time Warner held fast to its demand for a $160-a-share offer, however, while others noted that shrugs or snarky remarks from City Hall staffers Charter has the industry’s second-lowest customer-satisfaction ranking.Time Warner also won about the importance of the mayor’s time compared backing from some analysts, like BTIG’s Richard Greenfield, who believes the company will turn with the media’s. Look no further than Twitter to get around this year even without being acquired, and urged it to hold out for its asking price. a sense of how the press corps feels about the shift Whatever the outcome, consolidation appears to be the wave of the future for cable. Charter from the PowerPointing Michael Bloomberg to the argues that bigger scale will allow for greater investment in new technology, better service and more blasé Mr. de Blasio. It’s become a game of one- products, as well as new opportunities for marketers. With any luck, New York will end up with upmanship to post the wittiest comment about the some new combined cable-provider entity that is ranked higher for customer satisfaction than latest delay, even spawning the short-lived Twitter either company. —matthew flamm feed “HowLateWasBdB.”The transition seems to be matching the mayor’s pace. With dozens of key MIXED BAG ON WALL STREET. Four ma- of Nebraska, a role he has held since positions unfilled, politicos inside and outside city jor banks reported mixed earnings re- 2004, he will lead a system of 250,000 HOORAY! sults last week. It was good news for students starting in June. He will earn government are starting to fret about things like the THE Bank of America, where net income $670,000 a year, plus use of a car and NEWSSTAND chain of command.That befuddled business jumped nearly fivefold,to $3.4 billion, free housing. … AOL UNLOADS PATCH. on Astor Place, executive is not alone. Mr. de Blasio has said he is and Goldman Sachs, whose earnings AOL reached a deal to sell most of its featured in rose 8%, to $8.04 billion. Meanwhile, money-losing, hyperlocal Patch news such movies “very comfortable” with his tardiness. After all, he is as Sex and the at Citigroup, net income missed ana- websites to investment firm Hale City, will only three weeks into the job—often called the lysts’ expectations, and JPMorgan Global for an undisclosed amount. reopen Chase’s earnings dropped 7.2%, to The deal is expected to close some Tuesday after second hardest in America. Building a staff takes being time. Last Wednesday, the mayor surprised reporters $5.28 billion,thanks in part to the $2.5 time this quarter. Hale specializes in shuttered last billion settlement related to Bernard turning around underperforming month. gathered in Queens for an announcement about Madoff ’s Ponzi scheme. … FORBES businesses. A year ago, AOL said traffic safety by starting on schedule. Alas, our DITCHES NY FOR NJ. After nearly a cen- about 10% of the Patch sites were OY VEY! euphoria was fleeting:The next day’s presser to unveil tury in New York City,with half of that profitable. AOL will remain a minor- A GROUP OF SENIOR CITIZENS was new commissioners took 43 minutes to get going. time in Greenwich Village, Forbes ity investor. … FLASH DEAL FOR booted from a McDonald’s in Flushing, Media announced it IDEELI. Groupon Queens, for sitting for hours over coffee. Bill was overdue again. will be moving to the ‘We will be bought Manhattan- Garden State. The based e-retailer ideeli firm received $27.1 just as for $43 million, and THIS WEEK IN CRAIN’S million in tax incen- plans to keep it run- tives to relocate 350 aggressive in ning as a separate IN THE BOROUGHS-------------------------- 3 jobs to Jersey City. preventing a website. The pur- IN THE MARKETS----------------------------------4 The move was far chase was a loss for from shocking, deadly crash shareholders, consid- THE INSIDER -----------------------------------------------6 though: Four years on our streets ering that ideeli re- OPINION-------------------------------------------------------------8 ago, Forbes sold its ceived $107 million startup Branch for $15 million to help headquarters at 90 as we are in in venture-capital it build a tool that allows people to GREG DAVID ------------------------------------------------ 9 Fifth Ave. to New preventing a funding between connect with others with similar inter- REAL ESTATE DEALS-------------------10 York University for 2007 and 2013. Ideeli ests. Branch will join Facebook at the NEW REPORT: $65 million. … deadly earned $115 million latter’s new HQ at 770 Broadway. … CUNY CHANCELLOR. in revenue in its fiscal OSCAR NODS FOR NYC. Four made-in- SMALL BUSINESS---------------------11 James Milliken, 56, shooting’ year ended February New York films, including The Wolf of will be the new chan- —Police Commissioner Bill 2013,according to fil- Wall Street, received Oscar nomina- FOR THE RECORD--------------------------- 15 cellor of the City Uni- Bratton, on Mayor Bill de ings. ... FACEBOOK tions, compared with three last year. GOTHAM GIGS CLASSIFIEDS -----------------------------------------16 versity of New York. Blasio’s plan to lower BRANCHES OUT. The Leonardo DiCaprio flick led the Producer Mynette Louie Currently the presi- pedestrian fatalities Facebook acquired local pack with nods in five categories. NEW YORK, NEW YORK ----------21 only finances films by dent of the University local social-media —emily laermer female directors. P. 7 SOURCE LUNCH--------------------------------22 CORRECTIONS (SEE PAGE 19) STORIES TO WATCH THIS WEEK vol.
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