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Internet
Edition, July 15, 2009, Page 1 |
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TEXAS
REVIEWS AMERICAS TRAVEL PR
Texas,
which moved to hire a PR firm to lure European travelers
in May, has issued an RFP to review its tourism PR account
for the Americas.
Vollmer
PR is the incumbent for the current contract, which covered
North America, European markets, Mexico and part of Latin
America and Asia.
An
RFP issued in May (currently under review) focused on Europe
while the latest RFP concentrates solely on the Americas.
Tourism,
under the purview of the governors office, is big
business in the Lone Star State, employing more than 500,000
people and generating $56.7B in spending.
A
two-year contract is planned carrying a two-year option.
The
work covers travel PR in North and South America, including
media relations, travel trade relations, consumer promotions,
crisis management and marketing PR, among other tasks.
The
RFP uses a 12-month budget of $1.5M for planning purposes.
Firms
pitching must have a Texas office within 30 days of the
contract award, in addition to representatives in New York,
Mexico City and Toronto.
Proposals
are due July 24. The RFP can be downloaded from the story
on odwyerpr.com.
ROCKEFELLERS
REACH OUT TO ASHCROFT
The
liberal leaning Rockefeller Family Fund has retained former
Attorney Generals John Ashcrofts lobbying venture
to work Congress on its behalf.
The
descendents of John D. Rockefeller are using The Ashcroft
Group for input in debate over the Clear Act (Clear Law
Enforcement for Criminal Alien Removal), which is a favorite
of Republicans.
The
American Climate and Energy Security Act is another matter
for TAG. That global warming bill narrowly passed the House
last month, but faces an uphill climb in the Senate.
The
RFF says its goal is to advocate on behalf of environmental,
womens and government transparency issues.
It
made headlines by challenging management of Rockefeller-founded
ExxonMobil to step up development of alternative energy
sources.
TAG
team members include Juleanna Glover, a former advisor to
Vice President Dick Cheney and New York Mayor Rudy Giuliani
and a Clark & Weinstock alum, and William Gaynor, a
veteran of George W. Bushs Commerce Dept.
HUNTSWORTH
ACQUIRES TONIC
U.K.-based
PR holding company Huntsworth has acquired Tonic Life Communications,
a health PR firm with operations in London, New York and
Dallas.
Huntsworth
said the initial £3.0 million (about $4.8M) acquisition
expands its Dorland PR unit in the U.S. and Huntsworth Health
in the U.K.
Three
key shareholders and executives CEO Scott Clark,
managing director Oliver Parsons, who are co-founders and
former Fleishman-Hillard execs, and director Moira Gitsham
are making the move.
Key
clients of Tonic (£3.3M in 2008 revenues) have included
Riche, Novartis and Pfizer.
The
firms Dallas office picked up the Welchs account
last year to raise awareness of the health benefits of its
products.
Huntsworth,
which could pay a maximum of £12.5 million in deferred
consideration for Tonic through 2013 depending on performance,
said health communications now represent about 27 percent
of its revenues.
OGILVY
WORKS CHINAS HUMMER DEAL
Ogilvy
Government Relations is working Washington on behalf of
the Chinese heavy duty equipment maker that was the surprise
winner of the sweepstakes for General Motors Hummer
unit.
Sichuan
Tengzhong Heavy Industry Machinery Co. emerged on top last
month in the race for the maker of jumbo SUVs with a bid
of less than $500M.
Ogilvys
D.C. office has a six-person team allaying any concerns
that legislators may have over the deal inked by taxpayer
bailed-out GM.
As
Ogilvy works D.C., reports arise that Chinese government
officials are putting the acquisition of Hummer under heavy
scrutiny. Beijing must approve the deal. Brunswick handles
financial PR matters for STHIMC.
PROF
TO PR SOCIETY: OFFER PDF DIRECTORY
PR
Prof. Bill Sledzik of Kent University, who operates the
toughsledding.wordpress.com
blog, has called on PR Society leaders to make available
a PDF version of its members' directory.
Contact
information for the 22,000 members of PRS has been available
only to members since 2006. PRS leaders have argued that
the online directory is more up-to-date and that not publishing
the 1,000-page directory saves money (about $250,000 in
staff and printing costs).
Sledzik's
blog July 6 said that while the online
(Continued
on page 7)
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WEST
VIRGINIA REVIEWS TOURISM ACCOUNT
West
Virginia is accepting proposals for its $3M a year tourism
PR and advertising contract through mid-July.
Charles
Ryan Associates, which has an office in Charleston, is the
incumbent.
The
Mountain States Division of Tourism is a 70-staffer
operation under the Dept. of Commerce, including administration,
advertising and marketing personnel, a film office and other
endeavors.
The
contract also covers its state parks and wildlife recreation
representing $300K of the $3M budget.
The
RFP calls for traditional and online marketing campaigns,
including social media.
A
firm must agree to devote one full-time staffer to the account
and have experience with tourism accounts of more than $1M.
The
RFP can be accessed online via the story on odwyerpr.com.
The
year-long contract carries two option years.
Proposals
are due by July 29.
FENTON REPS ECUADOR
Fenton Communications
has a $30K a-month contract to represent Ecuador and its
leftist President Rafael Correa, an ally of Venezuelas
Hugo Chavez.
The firm provided media
relations support for Correa, who was the only world leader
to attend the United Nations World Financial
and Economic Crisis and its Impact on Development
summit in New York last month.
Correa outlined Ecuadors
differences with the U.S. during an interview with Democracy
Now host Amy Goodman.
They include Ecuadors
decision to not renew the lease on the U.S. Marta military
base when it expires at the end of the year.
He told Goodman he would
reconsider if the U.S. allowed Ecuador to establish a military
base in New York City.
Ecuador also expelled
a U.S. diplomat alleging that he meddled in the countrys
internal affairs.
We are no ones
colony, Correa told Goodman.
Correa easily won re-election
in June, making him the countrys first President in
30 years to be elected without a run-off.
Fentons job is to
assist the Ecuadorian embassy in shaping American public
opinion of the South American nation via distributing press
materials, fact sheets and arranging interviews.
The contract is up Sept.
22.
HUBERMAN DIES AT 66
Arnie Huberman, who founded
PR executive search firm Arnold Huberman & Assocs. in
1988, died July 5 at his weekend home in Lenox, Mass. He
was 66.
The firm has been shut.
Huberman spent more than
20 years in the entertainment business before moving into
the executive search field.
He was a co-founder of
The Entertainment Channel, a precursor to the Arts &
Entertainment Channel, and directed film programming at
HBO, NBC and ABC.
PR MUST MAKE CASE VS. MARKETING
Bob Feldman, formerly
CEO of GCI Group, and Jeff Hunt, a 17-year veteran of Burson-Marsteller,
who are now in their own firm, said PR pros must take notice
of advice in The McKinsey Quarterly that chief marketing
officers might be the ones to lead in refurbishing the tarnished
reputations of the financial and business worlds.
Feldman and Hunt, now
partners in Pulse Point Group, Los Angeles and Austin, say
McKinseys advice is a warning to communications
and PR heads that they must present the case for PR
to their managements or risk being marginalized.
The partners feel that
PR makes the better case because it is involved not only
in marketing but can handle regular and social media, investor
relations, public affairs, and corporate social responsibility
programs.
The goal of PR and communications
people is to become the chief reputation officers
of their companies, they added.
Pulse Points blog
carries the full position of Feldman and Hunt at www.pulsepointgroup.com/POV.
Their blog uses the title
chief communications officer to refer to PR
heads, but only eight of the 100 corporate communications/PR
heads at PR Seminar May 20-23 use CCO. Feldman was among
about 20 counselors attending the meeting.
RECENT GRAD DESCRIBES GUANXI
IN CHINA
Joseph Burke, a 2009 graduate
of the University of Northern Iowa who is traveling and
studying in China, says that guanxi or relationship-building
is pervasive in the business community and may lead to corruptive
practices.
He spent three weeks studying
at Dalian Nationalities University as part of a UNI course
in global business and is still touring Southeast Asia including
Thailand, Laos, Vietnam, Malaysia and Hong Kong. He will
return to the U.S. July 20 and will look for a PR post in
travel in Boston in August. His website is www.burkeswork.com.
Writes Burke: Business
in China mostly operates under the traditional system of
guanxi, which is essentially doing business within a large
network of personal contacts, reciprocal favors and accumulated
relationship capital.
For instance, if
a contractor wants to land a large government job, he may
have to secure the favor of a government official who is
the gatekeeper of the contract. However, if they do not
have a previous relationship, the contractor may need to
use a mutual contact who is willing to introduce him to
the official and vouch for his integrity.
Even after the introduction,
a large amount of time and effort is typically spent on
banquets, gifts and outings to establish the strong amount
of trust and familiarity needed to finally land the contract.
The contractor not
only owes favors and patronage to the government official,
but also to the middleman who introduced them. These reciprocal
relationships can sometimes supercede variables such as
business competence or quality of product, highlighting
the importance of guanxi in Chinese business culture, which
can be corruptive.
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MEDIA
NEWS |
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WAPO
PUB SAYS SORRY
Washington
Post publisher Katharine Weymouth apologized July 5
for a program that looked like the paper was selling lobbyists
access to its editors/reporters.
In
a letter to our readers, Weymouth noted that
the flier promoting an upcoming salon scheduled
for her home was not the only problem.
Our
mistake was to suggest that we would hold and participate
in off-the-record dinners with journalists and power brokers
paid by a sponsor. We will not organize such events,
she said.
Weymouth
is sorry for letting readers down: As publisher it
is my job to ensure that we adhere to standards that are
consistent with our integrity as a news organization.
The
Post remains committed, now and always, to the highest
standards of journalistic integrity.
Weymouths
paper, like other media companies, holds many conferences
that bring together thought leaders to discuss topic events.
The
idea, she noted, is to make news and inform audiences.
Management wanted smaller settings. If the dinners were
sponsored, Weymouth wrote that everything would be
at arms lengthsponsors would have no control
over the content of the discussions and no special access
to our journalists.
Weymouth
has cancelled the planned dinner, though she still believes
there is a legitimate way to hold such events.
Any
future plans will be vetted by the Posts top editors
and be conducted on the record.
She
wrote: We all make mistakes and hope to be forgiven
for them. I apologize to our readers for the mistakes I
made in this case.
GANNETT
DROPS 1,400 MORE PEOPLE
Gannett
Co, which slashed 4,600 staffers from its payroll in 2008,
is dropping another 1,400 people to deal with the advertising
depression, according to a memo from Bob Dickey, chief of
its U.S. community publishing unit.
He
wrote that various cost savings initiatives are making
a difference, but there is a pressing need to align
our resources with the revenue realities we have.
The
vast majority of the job cuts took place by July 9. He sees
no need for furloughs.
The
cuts represent three percent of Gannetts workforce.
Dickey
sees some promising signs of a recovery, but the reality
is that the improvements are not broad-based and the economy
continues to be fragile.
Gannett
is in a stronger financial position than competitors. We
are healthy and capable of moving forward wrote Dickey,
and in place to capitalize on a stronger tomorrow.
Gracia
Martore, CFO, currently helms Gannett. CEO Craig Dubow went
on medical leave last month to recover from back surgery.
He is expected to be gone for several months.
Gannett
suffered a 60 percent drop in first-quarter net to $77M
on an 18 percent decline in revenues to $1.4B. Its stock
sells for $3.50 a-share.
Pence
Tapped for PR
Robin
Pence, who handled PR for $16B global power company AES
Corp., has shifted to Gannett Corp as VP-communications.
She
replaces Tara Connell, who now will focus on ContentOne,
the venture that Gannett says will improve the way it gathers
and delivers the news and information customers want.
Prior
to working at the Arlington, Va.,-headquartered AES, Pence
handled communications duties at Sprint and the Federal
Communications Commission. She also worked on Capitol Hill.
Martore
calls Pence the consummate communications profession,
citing her work in both the private and public sectors.
NBCU
ELEVATES GOLLUST
NBC
Universal has elevated Allison Gollust to fill the executive
VP/corporate communications post vacated by Cory Shields,
who was named to a broader role focused on intellectual
property last month.
Gollust,
who has worked with NBCU chief Jeff Zucker since his days
at Today, has been senior VP of NBC News
communications since 2005.
She
has overseen that divisions communications strategy
since 2002, a preiod which includedthe death of Meet
the Press moderator and D.C. bureau chief Tim Russert,
the exit of Katie Couric from Today for the
CBS anchor slot, and the transition from longtime anchor
Tom Brokaw to Brian Williams at NBC Nightly News.
She
was previously a senior publicist for Today,
when current NBCU president and CEO Zucker was executive
producer of that show. Gollust is on the board of New York
Women in Communications Inc.
Shields
headed communications for NBCU since 2006.
He
was named EVP, global policy strategies and alliances, last
month to guide the media companys anti-piracy and
IP efforts.
NY TIMES CO.S WARREN
HEADS NYWICI
Denise Warren, chief
advertising officer at the New York Times Media Group and
general manager of the nytimes.com,
has been elected president of New York Women in Communications
Inc.
She takes over for
Nancy Rabstejnek Nichols, senior VP/external affairs at
Weber Shandwick, who continues board service as immediate
past president.
Warren is in charge
of ad sales at the New York Times, nytimes.com,
International Herald Tribune and radio station WQXR.
Other PR pros in
key NYWIC spots are Joan Cear, managing director at G.S.
Schwartz & Co., Dorothy Crenshaw, CEO of Crenshaw Communications,
and Kendra Bracken, director of digital media corporate
communications at Polo Ralph Lauren.
Cear heads the NYWIC
Foundation, Crenshaw handles NYWIC branding and Bracken
does PR for the group.
(Media
news continued on next page)
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MEDIA
NEWS/CONTINUED
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FIRST
WHITE HOUSE COMMS. DIRECTOR DIES
Herbert
Klein, a Nixon press secretary who was the first White House
director of communications, died on July 3 after suffering
cardiac arrest at his California home. He was 91.
Klein
was a longtime correspondent and editor for Copley Newspapers
and covered Nixon's 1946 House campaign early in his career.
He wrote for Copley papers in San Diego eventually rising
to editor for the San Diego Union in 1959. He joined
Nixon as press secretary in his 1960 presidential bid against
John F. Kennedy and also handled the press for Nixon's California's
governorship run and his second (and successful) bid for
the presidency in 1968. He was then named communications
director for the White House.
Klein
penned a book on Nixon and the media in 1980, Making
It Perfectly Clear, an Inside Account of Nixon's Love-Hate
Relationship with the Media (Doubleday). He said in
Stanley Kutlers The Wars of Watergate
that there was no organized conspiracy in the White
House, but mistrust of the press was strong and ever present.
Klein
left Nixon in 1973, more than a year before Watergate, for
the VP/corporate relations slot at broadcaster Metromedia,
and he eventually returned to Copley as editor in chief
in 1980. He later retired in 2003.
The
Union Tribune reported that Klein accompanied then-Vice
President Nixon to Moscow in 1959 to meet with Nikita Khruschev.
He also negotiated for Nixon the terms of the first presidential
TV debate.
He
was predeceased by his wife of 66 years, Marjorie, in February
2008 at 87, as well as a daughter, Joanne Mayne, on July
2 at age 62.
NYT
GIVES BIG PLAY TO SOCIAL MEDIA
Brew
Media Relations headed by Brooke Hammerling, Spark PR, co-founded
by Donna Burke and Alan Soucy, and Outcast Communications
(Margit Wennemachers, Caryn Marooney), were given big play
in a front page feature in the business section of the July
6 New York Times.
The
article, by Claire Miller, positions social media such as
Twitter and Facebook as new ways of reaching prospects,
often bypassing traditional media (which are said to feed
off social media mentions).
The
article was widely panned in the PR field for portraying
a narrow view of social media and PR. Richard Edelman blogged
that the piece reinforces every stereotype about our
industry and undermines our ability to make the case for
our role as a serious advisor on both policy and communications.
Nearly
half of the article consists of Millers description
of how Hammerling goes about her business. She is described
as knowing many of the principal players in the world of
social media including Evan Williams and Biz Stone, founders
of Twitter; media figures such as Arianna Huffington, and
executives of Amazon.com and other major internet companies.
Hammerling
was at the Zeno Group unit of Edelman until 2005 when she
opened her own firm.
Writes
Miller: Gone are the days when snaring attention for
start-ups in (Silicon) Valley meant mentions in print and
on TV, or even spotlights on technology websites and blogs.
Now PR gurus court influential voices on the social web
to endorse new companies, websites or gadgetsa transformation
that analysts and practitioners say is likely to permanently
change the role of PR in the business world, particularly
in Silicon Valley.
STUDY:
250 BIZ REPORTERS CUT IN 09
Heavy
cuts at Bloomberg and the closing of Conde Nast Portfolio
contributed to more than 250 business journalists losing
their jobs in the first six months of 2009, according to
a study by the Univ. of North Carolina at Chapel Hill and
its affiliated Carolina Business News Initiative.
The
analysis only includes layoffs that have been confirmed
by media outlets and the study suggests that the 250 number
is actually higher.
Chris
Roush, a veteran reporter and founding director of the CBNI,
estimates there are about 8,000 working business journalists
in the U.S., so the cuts this year represent about six percent
of that group.
Jim
Horton, principal at Robert Marston & Associates, said
on his blog that business journalism is going back
to the future in pointing out that there was a time
when business news was confined to a page after the sports
section and usually consisted of wire service reports and
stock tables. He said the growth trend started in the 1980s
and appears to be ebbing.
One
hundred reporters and editors in TV and radio were axed
from Bloomberg in the first half of the year, and an estimated
80 journalists were cut in the closing of Portfolio. Business
desks were also eliminated at the Seattle Post-Intelligencer,
Rocky Mountain News and Tucson Citizen when
those papers stopped printing.
The
Chicago Tribune lost four business reporters in May
and the San Antonio Express-News laid off another
four, while two took a buyout, according to the study. The
Houston Chronicle also cut four business scribes.
A
rare exception was the Detroit Free Press, where
a recent layoff of 22 positions spared the business desk.
VETERAN
NEWSPAPERMAN TO PS
Richard
Oppel, a veteran newspaper editor and D.C. bureau chief,
has joined Austin-based Public Strategies as a senior advisor.
Oppel
was editor of the Austin American-Statesman from
1995-08, after leading Knight Ridders Washington bureau
for two years. His longest tenure was as editor of the Charlotte
Observer from 1978-93, after leading the Tallahassee
Democrat for a year.
Dan
Bartlett, the former George W. Bush advisor who heads PS,
said Oppel has overseen major changes in the newspaper industry
in the digital era and said hed be a huge asset
to the firms clients.
Oppel
led the American Society of Newspaper Editors from 2000-01
and served on the Pulitzer Board for nine years. His son,
who uses the byline Richard A. Oppel, Jr., is a foreign
reporter for the New York Times, and daughter, Shelby
Oppel Wood, is an education reporter at the Oregonian.
PS is part of WPP.
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NEWS
OF PR FIRMS |
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EXEC:
TREND TOWARD SMALLER AGENCIES
Paul
McDade, a top big agency healthcare exec, has moved to specialty
firm Corinth Marketing and PR in New York as a partner.
McDade
sees a trend in PR moving away from large firms. The
pendulum of the large versus small agency has finally moved
and will continue to move toward smaller, more focused
agencies, he said.
McDade
joins the 10-year-old firm as its second partner from Hill
& Knowlton, where he was director of its global healthcare
practice.
He
was previously a director for Ruder Finn Healthcare and
senior VP in Edelmans health unit.
McDade
said he gained valuable experience at large agencies, but
sees the industry presently with different needs and
demands.
CMPR
also has a Los Angeles office.
HONG
KONG RENEWS OGILVY
Hong
Kong has renewed a $750K two-year contract with Ogilvy PR
Worldwide to promote the line that the city remains a separate
part of China a dozen years after its handover by the United
Kingdom.
The
PR focuses on themes such as one country, two systems,
a high degree of autonomy and Hong Kong
people ruling Hong Kong, according to the engagement
agreement.
The
overall goal is to create confidence "in the economic
and political future of Hong Kong.
The
list of Ogilvys PR objectives include positioning
Hong Kong as Asias world citythe New York
and London of Asia. The city is to be touted as the
gateway to Mainland China. Investment opportunities in the
sight-seeing, wine, financial, logistics and communications
sectors are to be pitched.
Ogilvy
coordinates communications action with Hong Kong Economic
and Trade Offices in Washington, New York and San Francisco.
The
WPP unit has assembled a 26-member Team Hong Kong that includes
senior VPs Rory Davenport, program manager/strategist; Steve
Marino, digital/online strategy; and Greg Johnson, creative
leader.
They
are bolstered by Rob Mathias, managing director/D.C., Tamara
Boorstein, New York leader, and Michael Law, San Francisco
leader.
BRIEFS:
WPP transferred ownership of Indian PR firm IPAN
from JWT to Hill
& Knowlton
on July 1. The Delhi-based firm has more than 140 staffers
and five offices in the country and will be fully
integrated within H&K. Under the new structure,
known as IPAN Hill & Knowlton, president Radhika Shapoorjee
reports to H&Ks Asia Pacific president and COO
Vivian Lines. ...Blicksilver
PR, New York,
is working with client Colony Capital on communications
for the planned initial public offering of Colony Financial,
a real estate finance company of CC. ...Capstrat,
Raleigh, took home 10 Telly Awards (six silver, four bronze)
in the annual competition. The firm won for work on behalf
of Deloitte, GlaxoSmithKline, the Raleigh Convention Center,
UNC Health Care, SciQuest and NC Health and Wellness.
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NEW
ACCOUNTS |
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New York
Area
Feintuch
Communications, New York/Bluenog, enterprise software
and solutions, as AOR. The company said it wanted a firm
that knew the nuances of the open-source community
as well as its recently launched Bluenog ICE software. FC
president Henry Feintuch and senior VP Steph Johnson head
the account.
Gotham
PR, New York/The Bicycle Thief (Corinth
Films), for New York and eventual national re-released of
the film on its 60th anniversary; Giraldi restauarant holdings
for PR for a new bread pudding franchise, All in the Pudding,
and Choice Productions, for continued PR following the launch
of VitalJuice.com.
LVM
Group, New York/Sherwood Equities, for PR for 370
Lexington Ave., a commercial office tower, and MLBKaye International
Realty, the oldest independent residential real estate company
in Manhattan.
Leach
Communications, New York/Focus Right Marketing, for
development and launch of a new corporate website for the
company, which uses digital music download services for
promotions.
Investor
Relations Group, New York/eDoorways Corp., for PR.
East
Widmeyer
Communications, Washington, D.C./Arizona Board of
Regents, collaborative, statewide grant-funded effort with
community colleges to investigate ways to expand and enhance
the states higher education system, for strategic
counsel, and the National Inventors Hall of Fame Foundation,
for research and branding, Connecticut College, for admissions
research.
Quinn
Gillespie & Associates, Washington, D.C./Genomatica,
sustainable chemical company, for strategy development and
government relations.
Arketi
Group, Atlanta/Premier Logic, business application
development and consulting for healthcare and financial
sectors, as AOR for work including PR, web redesign and
collateral development.
Midwest
FoodMinds,
Oakbrook Terrace, Ill./Dole Food Company, Frito-Lay North
America, National Confectioners Association, and Welchs,
for nutrition comms. projects. The firm also picked up HealthSpan
Solutions to promote its BeneVia products through consumer
media relations and health professional outreach.
Airfoil
PR, Detroit/CarBuddy, web portal for connecting drivers
and passengers for carpooling, for launch including media
relations, advertising, and B2B and university relations
in metro Detroit, and Classic Computer Recovery, asset recovery
and electronics recycling, for PR via the firms clean
tech practice.
International
Edelman,
Hamburg/International Paralympic Committee, a renewal of
its pro bono global relationship as official media and communications
agency of the Bonn-based organization. Edelman has staffers
across the U.K., U.S., Canada, Germany and China on the
account.
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NEWS
OF SERVICES |
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MEDIALINK NOTE HOLDERS MAY
BLOCK DEAL
The NewsMarket, a New
York-based online video services company, has entered into
a deal to acquire Medialink Worldwide, the financially strapped
broadcast PR provider.
The NewsMarket, which
will be the surviving brand in the merger, said it will
acquire all of the outstanding shares of Medialinks
common stock at a price of $0.20 per share in cash, pending
approval of Medialink's shareholders and regulators.
With an estimated 6.4M
shares outstanding, that places the value of the deal at
about $1.3M.
Jim Lonergan, president
and CEO of The NewsMarket, said the combination creates
a "very compelling offering" for clients with
"increasingly sophisticated" demands in the video
sector.
The NewsMarket was founded
as an online hosting platform for PR video in 2003 and counts
scores of blue-chip clients. The deal is expected to close
this summer.
Medialink CEO Laurence
Moskowitz said the deal will give Medialink clients continuity
of service along with TNM's online services.
Threat to
Block Deal
Ahead of the merger announcement,
Medialink said it entered into settlement agreements with
the holders of its convertible debt by paying nearly $1.6M
to satisfy debt with a face value of $2.65M.
Kenneth Torosian, chief
financial officer at Medialink, said the debenture holders
were willing to take a substantial discount to retire the
debt because of the "rough economic environment and
financial condition of the company."
Holders of Medialink debt
have given the company written notice that they intend to
file a complaint to block the acquisition, according to
an SEC filing.
Medialink said in making
the $1.6M in June that it was released from all future obligations.
Debt holders continue
to hold warrants to purchase shares of the company in the
event that its stock hits the unlikely share prices of $0.50
and $3.99 (its currently trading below $0.20). Those
warrants expire on Nov. 9.
The debt holders who received
the $1.59M payout include Iroquois Capital ($731K), Smithfield
Fiduciary ($311K), Rockmore Capital ($174) and Portside
Growth ($375K) and Opportunity Fund.
TNM said last week that
it would acquire all outstanding shares of Medialink in
a deal valued in the $1.5M range. There is a $275K termination
fee if the deal falls apart payable by either party.
Top Execs
Out
Medialink has inked separation
agreements effective upon the marger with its three top
executives Moskowitz, Larry Thomas, COO since 2005,
and Torosian.
Moskowitz must vote his
shares in favor of the merger and he would get a lump sum
$440K payout if the companys cash balance stays intact
through the completion of the deal.
A non-compete clause would
also be activated for nine months.
Torosian is due a $620K
payout with similar terms, and Thomas would get a $150K
severance payment.
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PEOPLE |
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Joined
Jon
Pritchett, CEO, General Sports Venue, sports marketer
of brands like AstroTurf, to French/West/Vaughan, Raleigh,
as vice chairman and agency principal. He heads business
development and reports to CEO Rick French. He was president/COO
of minor league sports franchise owner ScheerSports, Inc.,
and was a client of FWV for four years.
Pete
Sanders, head of the New York office of Howard Bragmans
15 Minutes, to JS2 Communications, New York, as a VP. He
brings an entertainment client roster including actresses
Lynda Carter and Cheyenne Jackson, the Shaw Festival in
Canada and author and TV personality Julie Edelman., among
others. Sanders previously headed his own shop from 1993-07.
Elizabeth
Jones, VP of communications for Quicken Loans and
its parent company, has moved to NSF International, the
non-profit, non-governmental consumer safety organization,
as VP of marketing, overseeing corporate marketing, branding,
communications and regulatory affairs, as well as strategic
leadership. NSF, formerly known as the National Sanitation
Foundation and based in Grand Rapids, Mich., certifies and
consults on safety and health standards for food, water
and consumer goods. She was with Quicken Loans and parent
organization, Rock Ventures, for the past nine years. Previously,
she was at Aquinas College (Grand Rapids, Mich.), and senior
PR administrator for Alticor.
Melissa
Dolan, who directed campaigns at Fusion PR, to Steinreich
Communications, Hackensack, N.J., as an account manager.
Alison
Walsh, previously with Ogilvy PR Worldwide and Evins
Communications, to PR Flex, Baltimore, as a PR specialist.
Walsh was Ogilvy CEO Marcia Silvermans executive assistant
before moving through the ranks there and later served as
a senior A/E at Evins.
Ken
Chitester, independent consultant and former White
House comms. aide, to The Appraisal Institute, Chicago,
as director of communications. Chitester is a former VP
for Hill & Knowlton handling Midwestern public affairs.
Promoted
Ron
Culp, a partner and managing director for Ketchum
Midwest, has been given the reins of the firms North
American corporate practice while handling the MD role for
the Midwest. Tina-Marie
Adams, former Midwest GM for MWW Group, has joined
the firm as a director for the region (Chicago and Pittsburgh)
under Culp. She is a former journalist for Gannett and the
Chicago Tribune. North American corporate practice
director and partner John Wekenmann has been named to a
new global senior counselor post following the Omnicom units
merger with Pleon in Europe.
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Internet
Edition, July 15, 2009, Page 7 |
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PROF
ASKS FOR PDF DIRECTOR
(Contd
from pg. 1)
directory
is "searchable and easy to update, the printed
directory "helped PR professionals and students as
well.
He
said he often loaned his print version to students seeking
internships and jobs around the country, and before he went
into teaching in 1992 he loaned it to co-workers seeking
contacts in other cities.
With
the directory now under digital lock and key, students and
colleagues must visit my office and I must log
them onto my account to give them a peek, he said.
Sledzik fears this might be a violation of the terms
of service of the online directory.
He
adds: While I appreciate the Societys desire
to safeguard the list, Im a little shocked it doesn't
trust me, a 27-year member, with a PDF copy of the membership
roster.
PRS
Website Is Lacking
The
PR professor said PRS has a 1990s website with
look, content and navigation that are vintage
Web 1.0. Instead, he says, the largest organization
of PR pros in the world should be on the leading edge
with its web presence.
He
feels the Society has never established an interactive
online network and it's probably too late to do so now.
The blogs it did establish came far too late to impact
the conversation, he added.
DAngelo,
Phair Oppose Past Chair on Nomcom
PRS
2007 treasurer Anthony DAngelo and 2005 president
Judith Phair have opposed the nominating committee being
chaired by the immediate past chair of PRS, who is still
on the board. The proposal has been made by the bylaws committee.
D'Angelo,
48, left the Carrier unit of UTC in early 2008 after 15
years to join Magna Powertrain, a unit of automotive supplier
Magna International in Syracuse.
Because
of the economic downturn, the Syracuse unit was scheduled
for closing and D'Angelo joined St. Joseph's Hospital Health
Center Foundation in Syracuse as director of operations.
D'Angelo
said that having a sitting board member as chair of the
group that is the main influencer in selection of
the Society's next leaders is a fundamentally flawed formula.
PRS
CANDIDATES REFUSE QUESTIONS
Only
one of 19 PRS candidates answered O'Dwyer questions this
year, a sharp contrast to last year when seven of 23 candidates
answered questions.
Although
PRS is facing important bylaw changes, including proposals
to relieve the Assembly of its power to elect board members
and officers,18 of this year's 19 candidates refuse to say
where they stand on the issues.
The
only one who answered questions is California counselor
Gerard Corbett, who is running for treasurer.
Refusing
to answer questions are the two candidates for chair-elect,
associate ad/PR professor Rosanna Fiske and solo practitioner
Leslie Backus. Both are from Florida, about 20 miles from
each other.
PRS
has announced that electronic voting by members is legal,
opening the way for the board to call an Assembly meeting
that could remove APR from throughout the bylaws (as recommended
ten years ago by the first Strategic Planning Committee).
All
members (instead of just the 20% who are accredited) could
compete for offices by stating their views on numerous issues.
PRS
SETS FOUR-DAY, $585 APR BOOT CAMP
PRS,
in a move to spur flagging interest in its accreditation
program, has scheduled a four-day, $585 APR boot camp
Aug. 26-29 in New York. New APRs averaged 259 in the six-year
1996-2001 period but only 110 in the past six years of the
new computer-administered, multiple-choice test.
PRS,
with New York and New Jersey chapters assisting, has set
up a four-day boot camp in New York that takes
candidates from the Readiness Review to the actual exam
three days later.
PRS
and the Universal Accreditation Board, of which PRS is a
member, have been concerned that many who register to take
the exam do not follow through by passing the Readiness
Review and taking the exam. Candidates must register by
Friday, July 24 for the pioneering program, paying a total
of $585 for the full schedule. The exam by itself is $385.
Felicia
Blow, director of PA, Cox Communications, Chesapeake, Va.,
is chair of the UAB, and vice-chairs are Jay Rayburn, associate
professor, Dept. of Communications, Florida State University,
and Anne Dubois, Dubois Betourne & Assocs., Palm Coast,
Fla.
Candidates
may choose to attend the first day of instructions for $75
or may take the second two days and pay $125. The tutorial
sessions will last from 8:30 a.m. to 5 p.m. on Wednesday,
Aug. 26; from 8:30 a.m. to 4:30 p.m. on Aug. 27, and from
8:30 a.m. to 5 p.m. on Aug. 28. On Saturday, Aug. 29, candidates
will take the 3.5-hour test starting at 8 a.m. at the Prometric
Testing Center, 1 Penn Plaza.
Michele
Hujber of PRS/NJ will run the Aug. 26 program, reviewing
16 knowledge, skills and abilities (KSAs) needed by APRs.
Readiness Reviews will also be conducted.
Bob
Saline, APR chair, Central Pennsylvania, and CEO, PRWorks,
will conduct classes for 44 remaining KSAs on Aug. 27. Jason
Kirsch, APR co-chair, Central Pennsylvania, will continue
teaching the 44 KSAs Aug. 28 and also conduct Readiness
Reviews.
The
first six years of the new exam, completed June 30, has
created only about 660 new Society APRs or about 110 yearly.
The previous all-day exam, which involved an afternoon of
writing, had created an average of 259 new APRs in the six
years from 1996-2001. A record number of 352 Society members
became APR in 1996. In the years from 1986 to1992, more
than 300 APRs were created in each year with 346 being created
in 1992. The exam was costly to administer since an outside
service was required to grade the written part.
The
loss reported by the Society on APR for 1986 through 2001
was $2,926,080. In 2000, the subsidy for a member becoming
APR was $1,794 as the total cost of $591,541 that year exceeded
income by $441,467. Created that year were 246 new Society
APRs.
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Internet
Edition, July 15, 2009,
Page 8
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PR OPINION/ITEMS
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The
practice of guanxi (relationship-building)
in China, as described by recent grad Joseph Burke on page
two, sounds exactly how PR was practiced in the 1960s and
1970s.
Guanxi
involves efforts to build personal relationships with potential
business partners before any business is discussed. The
goal is to establish a strong amount of trust and
familiarity, as noted by Burke.
This
is how we experienced PR people in the 60s and 70s when
we were working as a reporter and ad columnist for the former
New York Journal-American (six years) and the Chicago
Tribune (four years to 1972). This continued to the
late 1970s when we were establishing our NL.
PR
people saw themselves as salespeople and did what all salespeople
try to dosell themselves first.
Many
efforts were made to establish close personal relationships.
This involved not only numerous lunches, dinners, nights
on the town (almost always with spouses present), outings
such as golf, fishing trips and other sporting activities
but visits to the PR pros home where spouses and children
were brought into play. We visited at least 30 homes of
PR pros, sometimes spending weekends and going on family
picnics with them.
Blue
chip companies such as ITT threw numerous events. The annual
ITT picnic for journalists and their families in Nutley,
N.J., was attended by hundreds. A feature was a softball
game pitting PR pros against journalists.
Auto
companies lent cars to reporters for weekends and even longer.
Some reporters kept the cars for months at a time. Hundreds
of bottles of wine and liquor showered influential reporters
at year-end.
PR
pros helped us in many personal ways such as recommending
dentists and doctors when we had none upon arriving in New
York. Were still with the doctors or successors many
decades later.
PR
pros, in contacting writers, kept pitches of any type to
a minimum. Nine times out of ten when they called it was
offering a news tip, an analysis of something, or providing
some type of personal service. Only on the tenth call might
they go commercial.
Current
PR practice is the opposite of that.
A query about a spouse or family background could result
in charges of harassment and threats of a lawsuit.
Not only are in-person meetings a rarity, but even phone
conversations. Guarded e-mails may be exchanged. Corporations
and institutions have almost no trust in their PR people.
Almost all of them track any telephone or e-mail contacts
with reporters. Services including dna13 have elaborate
computer programs that keep on top of issues worldwide this
way.
Were
not in favor of previous practices coming back but we do
think the pendulum has swung too far in the opposite direction.
All
that personal interaction was expensive, time-consuming
and even corruptive. How much it influenced news coverage
was also open to question. When business scandals erupted
in the 1970s, including the outing of illegal corporate
bribery in foreign countries, the business press was unstinting
in its coverage. Reporters also rebelled against taking
any gifts of more than nominal value. Both the business
and editorial communities withdrew from the U.S. version
of guanxi.
Having
not been too successful with the press
(including Forbes, Fortune and BusinessWeek),
the business/financial community turned its efforts to congress
and the regulatory agencies. What mattered more than what
people thought was what congress and regulators did.
The
philosophy that government was the problem rather than the
solution took hold and by the 2000s many regulatory
agencies had been abolished or dismantled or turned into
paper tigers (the SEC). Glass-Steagall, which separated
regular and investment banking, was overturned in 1999 at
a cost estimated at $300M by economist Joseph Stiglitz.
The SEC allowed investment banks to borrow more than 30X
their capital. Sarbanes-Oxley proved to be a dud. Rating
agencies Fitch, S&P and Moodys tanked. Unfettered
bankers went hog wild lending to anyone with a pulse, dumping
the risks to Freddie Mac, Fannie Mae and others.
The
biz community decided it would be its own regulator, like
a baseball team deciding its players would do the umpiring
at home games. This Were in charge no matter
what attitude of organizations is evident at the PR
Society where sound advice of members and others is ignored.
Evidence
of this boneheadedness is the refusal to implement the recommendation
of the 1999 Strategic Planning Committee that national offices
be open to all members; refusal to implement the 2000 nomcom
reform committees recommendation that board members
have no influence in the nomcom (current proposal is to
make a sitting board member head of the nomcom); refusal
to book dues as earned during the course of the year rather
than as immediate cash, and refusal to name an African-American
to the 2009 all-white board. Only one African-American is
among the 19 candidates for office this year. Ofield Dukes
faces opposition from four other candidates for at-large
director.
Currently
indefensible is the Societys
refusal to provide a PDF of its members directory
to any member who wants this. No printing or postage would
be involved and the member would have an up-to-date list,
which was supposedly the fatal flaw in a printed directory.
Prof.
Bill Sledzik of Kent State has noted on his blog how helpful
the printed directory was to student jobseekers and others.
He now fears he may be breaking the law by using his codes
to access the online directory and show the names to students.
For
more than 55 years PRS member names were available to the
press and others through the printed members directory
(just as reporters contact information is available
to PR pros). In 2004, the Society distributed 150 directories
free to the press to help reporters.
It
refuses to discuss why it wont make the online directory
available in PDF form. Partly to show PRS how easy it is
to do a PDF (Portable Document Format), the 400-page 2009
ODwyers Directory of PR Firms has been converted
into two PDFsone for the listings and another for
the indexes. There was no cost for this and it took less
than ten minutes (almost all of this for converting the
numerous indexes).
Among
many other questions the Society wont answer is why
is electronic voting by members deemed to be legal when
for many years PRS had insisted that electronic voting by
Assembly delegates would be illegal?
--Jack
O'Dwyer
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