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Newspapers' Free Ride CNYB 12-24-07 A 1 12/21/2007 5:47 PM Page 1 TOP STORIES HAPPY NEW YEAR What mattered FROM in 2007 CRAIN’S Credit crisis, an Regular publication icon revives, a ® resumes on Jan. 7 hospital closes YEAR IN REVIEW, PAGES 3-13 New York was VOL. XXIII, NO. 52 WWW.CRAINSNEWYORK.COM DECEMBER 24-30, 2007 PRICE: $3.00 at the center of national events TERRY JIMENEZ says amNew York Time PAGE 3 benefits from synergies with How well do you sister publication Warner remember the Newsday. year of irony? calls out CRAIN’S QUIZ, PAGE 3 Verizon Next week Annual issue of Cable unit targets Crain’s top telecom’s business business lists phone customers BY AMANDA FUNG DANIEL MAGNUS the war between Verizon Com- says Metro will post munications Inc. and Time War- revenue gains above 20% this year. ner Cable is about to heat up again. While Verizon attempts to enter buck ennis catheriine gibbons catheriine the cable TV market in New York HOT OFF THE PRESSES City,Time Warner has set its sights on Verizon’s business telephone customers. At a trade show last month, the cable giant unveiled a business version of its digital phone Newspapers’ free ride service that has been available to residential users. “Time Warner has a very good Jan. 7: Post’s inability to raise its news- even if their daily circulation of chance of gaining market share,” amNewYork, Metro stand price above a quarter,this has around 300,000 copies each is only says Patrick Monaghan,a senior an- Economic outlook defy industry trends been a difficult year for the city’s about half that of tabloids the Post alyst at the Yankee Group. “There dailies. and the Daily News. is huge brand recognition. People for 2008; plus, top by making gains in That is,for the paid dailies.The “[These papers] hit the nail on already have Time Warner servic- stock picks revenue, readers humble free newspapers amNew the head,” says Gary Mathew, di- es in their home. It is an easy sell.” York and Metro—which boast that rector of print services at ad agency Time Warner has been rolling they take only 20 minutes to JL Media Inc. “No average reader out business phone service across BY MATTHEW FLAMM read—have defied the trends.Four can get through 100 pages of news- its national footprint since March. AT DEADLINE years after hawkers started shoving paper on a daily basis.” While it is initially targeting small- whether it has been layoffs at copies into commuters’ hands, the amNew York,the stronger of the er businesses with an average of 20 MARSH & MCLENNAN COS. The New York Times,turmoil at The freebies have found a niche among two papers and the first to launch, employees that need up to 12 WOULD BE WORTH $33 Wall Street Journal as Rupert Mur- time-starved younger readers. has been profitable since mid- phone lines, it hopes to sign up a share if it were broken up— doch takes over, or the New York Advertisers like the papers, too, See FREE on Page 18 See CABLE on Page 19 about 25% above its current market value, according to shareholder K.J. Harrison & Partners. Last week, Marsh said it was ousting Chief Accountants expand globe-trotting staff Executive Michael Cherkasky and exploring a breakup of the firm, which is involved in ness and culture work in the rest of insurance brokerage and Big Four add overseas postings to foster the world. Like McKinsey & Co. GLOBAL ROTATIONS consulting.The stock has auditors’ knowledge, meet clients’ needs and other professional services fallen nearly 50% over the past firms, accounting firms KPMG, ON THE RISE five years as its brokerage But the experience with interna- Deloitte & Touche USA, Ernst & The Big Four firms are sending more business struggled to recover BY SAMANTHA MARSHALL tional business practices that Mr. Young and Pricewaterhouse- staffers overseas. from a bid-rigging scandal. Tierno gained during his 21- Coopers are now making the push DELOITTE & TOUCHE USA when kpmg audit manager Danny month global rotation in London as they try to meet the needs of ma- ACTORS AND OTHER Tierno first went to the pub with was well worth the challenge to his jor corporate clients like Citigroup 70 in 2007 PRODUCTION PERSONNEL ARE colleagues at the London office,the constitution. Now that he’s back in and American International Group. 200 by 2012 flooding temporary agencies as English tradition of imbibing all New York,he finds it much easier to About 70% of large companies ERNST & YOUNG See AT DEADLINE on Page 2 night on an empty stomach came as coordinate with the London team sent American workers overseas in something of a culture shock. when he’s serving global clients. 2007,up from 48% in 2006,accord- 18% growth in 2007 “Getting the opportunity to see ing to a survey by the Society for KPMG how things are done outside the Human Resource Management. 52 2,500 in 2007 5 U.S. has been a huge help to me,” These corporations expect the same Mr. Tierno says. worldliness from their auditors. 5,000 by 2010 As commerce increasingly goes “Big international companies PRICEWATERHOUSECOOPERS global, New York’s Big Four ac- pay us an awful lot of money to be ELECTRONIC EDITION counting firms are sending more of able to rotate people in and out of 3,000 in 2007 their employees abroad to enhance key regions,so from a client-reten- 5,000 by 2010 NEWSPAPER their understanding of how busi- See BIG FOUR on Page 19 71486 01068 0 CNYB 12-24-07 A 2 12/21/2007 6:17 PM Page 1 WEEK IN REVIEW AT DEADLINE Continued from Page 1 Haim Binstock have started a the Writers Guild of America fund, B+B Investments, to GROUNDED: owner of ad agencies, plans to strike approaches its third invest $300 million in real Secretary of spend $1.25 million over five month. The Employment Line, estate over the next three Transportation Mary years to improve its record for which specializes in finding years. They plan to concentrate Peters announces minority hiring. The company office jobs for actors, says that on luxury hotels, residential flight caps. created the Omnicom Diversity more than 300 actors and other buildings, commercial proper- Development Advisory Commit- film workers have contacted it ties and mixed-use projects in tee, made up of businesses and since Thanksgiving, a 20% New York City. The fund has community leaders, to attract monthly increase. Meanwhile, already raised $120 million. minority talent and create out- officials at Motion Picture Stu- reach programs. dio Mechanics Union Local 52 LABRANCHE & CO., THE say more than 1,000 members LARGEST SPECIALIST Hedge fund woes have lost their jobs in the past trading firm at the New York few weeks as shows have run Stock Exchange, said Friday the manager of Bear Stearns out of scripts and shut down. that it would “focus on current Cos.’ hedge funds that invested in business activities” after trying subprime mortgages, Ralph STATEN ISLAND HAD THE to sell itself for the past five Cioffi, left the firm amid an HIGHEST PERCENTAGE months. LaBranche’s earnings investigation into whether he of foreclosures of any county in and stock price have shriveled improperly withdrew $2 million the state in November—one as the NYSE shrinks its trad- from the funds shortly before household out of 570, according ing floor and completes more they collapsed. … Barclays sued to data released by RealtyTrac. transactions via computers. It JFK faces flight caps Bear Stearns, accusing the firm Queens was the second-worst says it will cut costs and reduce THE DEPARTMENT OF TRANSPORTATION will impose a cap of hiding negative financial county, with one household in debt where possible. information about a collapsed 622 in foreclosure. of 82 to 83 flights per hour at congested John F. Kennedy hedge fund in which Barclays says GOLDMAN SACHS AND International Airport during peak travel times for two years, it was the “sole participating THE CHIEF EXECUTIVE OF BLOOMBERG LP HAVE starting in March. A similar system is being eyed for shareholder.” QUIGO, THE MANHATTAN joined The Climate Group, an online ad firm that AOL international coalition of cor- Newark to prevent flights from being shifted there. Airlines Newsday circ fines bought last month, has porations, government agen- and the PORT AUTHORITY OF NEW YORK AND NEW JERSEY stepped down. Michael Yavon- cies and nonprofits dedicated oppose the move, saying that it would limit the number of tribune co.’s Newsday and Span- ditte will spend the next six to lowering carbon emissions ish-language newspaper Hoy months in an advisory role. and advancing climate change passengers coming through the Big Apple and the carriers agreed to pay a $15 million fine Quigo Chief Technology Offi- solutions. Goldman Sachs has would lose valuable flight slots. Separately, a judge upheld and $83 million in restitution to cer Michael Fisher will take already invested more than $2 New York’s Passenger Bill of Rights law, rejecting an effort resolve charges that they inflated the helm as president. AOL billion in renewable energy. circulation numbers between 2000 did not elaborate on the man- Bloomberg buys renewable by airlines to overturn it. and 2004. agement changes. products and says it is commit- bloomberg news ted to reducing its consump- and James Cayne were in trouble. Magna Carta sold HIGH-END SPA CHAIN GEOR- tion of both products and ser- Late-night shows … Bond insurer MBIA Inc.
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