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Vivendi Universal Games Announces Reorganization, 350 Layoffs

Authored by Mark Hefflinger on June 21, 2004 - 8:34am.
Los Angeles -- Vivendi Universal Games, the video game publishing unit of the Franco-American media conglomerate, announced on Monday that it will lay off 350 employees as part of a reorganization and cost reduction plan. The company said that the layoffs would not affect its Blizzard Entertainment studio, which develops the "Diablo," "Warcraft" and "Starcraft" online games. "Restructuring the organization and reducing our cost base are necessary to improve our operating effectiveness and profitability," said VU Games CEO Bruce Hack. "This constitutes another important step in our turnaround plan aimed to better position the company for growth." Vivendi Universal Games plans to release several major titles in the second half of 2004, including Blizzard's "World of Warcraft."
tags: Vivendi Universal Games | Reorganization |

Senate "Family Movie Act" Would OK Parental Content-Filtering Technology

Authored by Mark Hefflinger on June 21, 2004 - 8:30am.
Washington -- A new bill introduced in the U.S. Senate, opposed by the Motion Picture Association of America (MPAA), would legitimize technology that can be used by parents to filter language and content from DVD movies. Sponsored by Rep. Lamar Smith (R-Tex.), H.R. 4586 (the "Family Movie Act") would enable companies like Clearplay, which offers DVD player software that can filter movies the company has screened itself, to sell its products without fear of lawsuits from movie producers. The MPAA has sued Clearplay and other companies marketing similar products, arguing that they amount to copyright infringement and alter the creative visions of filmmakers. "The technology my legislation allows does not alter any movie's violence, sex and profanity," said Rep. Smith. "But it does allow parents to skip over the movie's violence, sex and profanity. If they choose to designate a technology company to help them accomplish this, more power to them." MPAA CEO Jack Valenti testified that no legislation is necessary because studios are currently actively negotiating with movie filtering companies and directors to create "airplane-like" edited versions of popular films, similar to those shown as in-flight entertainment.
tags: Senate Family Movie Act | Parental Content-Filtering Technology |

French Police Arrest Former Vivendi Chairman Messier

Authored by Mark Hefflinger on June 21, 2004 - 8:29am.
Paris -- News media on Monday reported that former Vivendi Universal chairman Jean-Marie Messier has been arrested for alleged violations of securities law. French authorities, who are investigating a massive share buyback in which the company allegedly spent more than $1.2 billion to prop up its own share price, said that Messier could remain in custody for up to 48 hours. The French financial crimes brigade said they opened their investigation of Messier after a number of shareholders claimed in 2001 that the media and entertainment conglomerate published false and misleading statements. Messier was ousted as chairman the following year after billions of euro worth of secret stock repurchases brought the company to the brink of bankruptcy.
tags: Arrest | French Police | Former Vivendi Chairman Messier |

Atari Parent Co. Infogrames Raises $28.2 Million in Share Sale

Authored by Mark Hefflinger on June 21, 2004 - 8:27am.
New York -- French video games firm Infogrames, the majority shareholder of game publisher Atari, announced that it has closed a $28.2 million financing. The company said it sold 10.6 million shares of Atari through its wholly-owned subsidiary, California US Holdings, to Nexgen Capital and received $28.2 million. Infogrames had controlled 67% of Atari before the transaction and said after the deal its stake will be 58% during the one-year transaction period.
tags: VC | Infogrames | Atari Parent Co | Share Sale |

Investor Group Acquires Loews Cineplex Theater Chain for $1.47 Billion

Authored by Mark Hefflinger on June 21, 2004 - 8:24am.
Toronto -- Onex Corporation, which owns Loews Cineplex, the third-largest movie theater chain in the world with 200 theaters and 2,200 screens, announced on Monday that it has agreed to sell the business to a corporation formed by Bain Capital, The Carlyle Group and Spectrum Equity Investors for $1.47 billion. Onex and partner Oaktree Capital Management will retain the Loews interest in Cineplex Galaxy, which operates the Loews theaters in Canada. "Loews Cineplex has been an excellent investment for Onex Corporation," said Onex managing director Anthony Munk. "Since acquiring it [out of bankruptcy] we have built it into a leading exhibitor." Toronto-based Onex said its share of the proceeds from the sale would be around $568 million. "Thanks in part to an existing theater portfolio that has been recently upgraded, Loews is well-positioned to capitalize on the industry's steady growth prospects," said Bain Capital managing director John Connaughton. "The investor group will work closely with the talented management team to grow the business."
tags: Acquires | Investor Group | Loews Cineplex Theater Chain |

Yahoo Launches Search Engine in China

Authored by Mark Hefflinger on June 21, 2004 - 8:23am.
Sunnyvale, Calif. -- Yahoo on Monday launched a new search engine destination for Chinese Internet users, Yisou, which translates as "No. 1 search" in English. The launch comes a week after rival Google made its first foray into China with the purchase of a minority stake in Chinese search engine Baidu.com. "The introduction of Yisou will help extend our reach into the rapidly growing search market in China," said Yahoo North Asia vice president David Lu. Recent state data shows that China has the second-largest Internet population, after the U.S., with 80 million residents online.
tags: Launches | Yahoo | China | Search Engine |

Report: Streaming Media Ad Revenue to Reach $864 Million in 2005

Authored by Mark Hefflinger on June 21, 2004 - 8:21am.
Monterey, Calif. -- The streaming media advertising market is expected to take in revenues of $625 million this year and grow to $864 million in 2005, according to a report from Monterey, Calif.-based AccuStream iMedia Research. The report concludes that audio and video streaming media ads will account for 37% of total streaming media revenue in 2004, up from 28% in 2003. The firm cited increased broadband penetration, as well as the incorporation by media sites of a variety of traditional and new multimedia ad formats, such as pre-roll ads, ads running inside subscription streams, Java video ads that are not tied directly to a requested stream and between-the-page ad units. "What's happened over the past two years, is that agencies, rep firms, solutions providers and content sites have recognized that as streaming media has grown in reach, it can in fact be supported by advertising. And, broadcast media budgets are the target everyone is shooting for," said AccuStream research director Paul A. Palumbo.
tags: Report | Revenue | Streaming Media Ad |

Citing User Complaints, Universal to Halt CD Copy-Protection in Germany

Authored by Mark Hefflinger on June 21, 2004 - 8:13am.
London -- Major record label Universal Music Group has decided to phase out the sale of copy-protected CDs in Germany, "to address ongoing concerns that copy-protected CDs do not play in some hi-fi devices," Reuters reported. The company added that it may reintroduce the technology, which prevents album tracks from being uploaded to the Internet, after it is further fine-tuned. Some consumers have complained to retailers that copy-protected CDs won't play in some devices that are designed to play CDs, such as car stereos, PCs or DVD players. The revelation from Universal comes following the announcement last week that a copy-protected CD released by BMG was the top-selling CD in the U.S. for the week, and that fellow major label EMI would conduct its own trials of CD copy-protection.
tags: Germany | Universal | CD Copy-Protection | Halt |