Finance Matters

Archive for February 8th, 2010

Word broke today that Google will announce something of a Twitter-killer tomorrow. But unless the thing plays well with Facebook and Twitter, we don’t give it much of a chance.

Truth is, Google hasn’t ever been very good at launching new consumer products. Gmail is big, but it’s no Yahoo Mail. They love Orkut in Brazil, but Orkut’s user base is dwarfed by Facebook’s 400 million monthly active users. Google Wave? Hah!

But here’s the thing: Google does have a backup plan for this.

Back in 2006, Google couldn’t get consumers to adopt Google Video, so it went out and bought YouTube instead. We think Google should do the same thing now to buy Twitter.  It might take more than $2 billion, but Google can afford it. (They almost paid $550 million for Yelp! to solve a similar we-don’t-have-a-good-brand-in-local-just-dull-Google-pages problem.)

Here are our highlights from this developing story:

Enough, Google — Just Buy Twitter Already

Google Launching Twitter-Killer For Gmail!

Google And Twitter Sign Search Deal

10 Things Twitter’s Stolen Docs Taught Us

Why Google Wants Twitter

Photo: feverblue

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See Also:

• HGTV Brings On Blogging Mom Heather Armstrong of Dooce.com
• Twitter Isn’t Afraid Of You, China And Iran
• Enough, Google — Just Buy Twitter Already

It looks like the manufacturing problems at Toyota are set to whack the company’s flagship and forward-thinking line, the Prius.

According to CNN, the company will recall the entire 2010 line. Though problems have been known for some time, the company had not yet decided what, exactly, it intended to do.

If you’re unsure how Toyota got to this situation, see our complete guide to Toyota’s self-destruction >

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See Also:

• A Quick Guide To Destroying $21 Billion Of Shareholder Value, And Decades Of Reputation
• Apple Founder Woz: My Toyota Prius Accelerates To 97 MPH On Its Own, Scares The Hell Out Of Me
• Toyota Stays With Nickel For The Prius

Local police turned away a seven man team from the US Chemical Safety Board at the scene of the Kleen Energy Power Plant explosion today.

“[The police chief] said it was a crime scene,” someone from the Chemical Board told Platts.

The tragic explosion of Middletown, CT’s Kleen Energy plant killed five and injured seven yesterday.

At first it sounded like the case might close on the explosion’s being caused by a tragic accident during a pipe purging procedure, but the latest reports hint that there might be something murky going on.

“Federal law is pretty clear on the point that the board has access to the site…setting aside legalities, the public has a basic right to know what happened there,” the Chemical Board spokesman told Platts.

Whatever it is, we feel pretty confident that it doesn’t have anything to do with Goldman Sachs, which  underwrote “The Deal Of The Year” in 2008 when Energy Investors Funds purchased 80% of the Kleen Energy plant for $985 million.

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See Also:

• Goldman Sachs’ "Deal Of The Year" Power Plant Explosion Kills 5, Injures 12
• LDK Solar Signs Up For $150 Million Power Plant In China
• This Just In: Goldman Sachs Killed AIG

Apple’s new iPhone could be 1/4-inch taller, according to supposed photos of the new phone’s parts. If that’s the case, we imagine Apple would also make it thinner, so it feels sleeker in the hand.

According to iResQ, the company that took the photo of these parts, there is also a “interesting reflective, mirror-like surface directly above the speaker.”

Perhaps that’s for one of the iPhone’s sensors, like the proximity sensor that measures how far away from the screen your face is. Or perhaps it’s for a front-facing camera?

It’s also possible, of course, that this has nothing to do with the new iPhone, and that it’s either a prototype part or just red herring.

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See Also:

• Is This Apple’s New iPhone?
• This Week’s Best iPhone Apps
• How To Turn Your iPhone Into A Home Theater

Cravath is being sued for breach of fiduciary duty by its former client, Airgas, Inc., stemming from the firm’s representation of Air Products in that companies unsolicited takeover bid of Airgas.

A hearing is scheduled for next week in Philadelphia state court, and Alison Frankel of the Am Law Litigation Daily has a full report.

Leading up to next week’s main event, Cozen O’Connor partner Stephen Cozen, who is representing Airgas, provided a little preview of his take on the case to the Daily.

You can’t decide when it suits your pleasure to drop one client like a hot potato,” he said.

That is of course true. Cravath (also, of course) has said the case has no merit. So we’ll have to watch and see where this one turns out.

But it’s not often you see one big firm accusing another one of a faulty conflicts policy with such descriptive language. And that is why it’s our quote of the day.

As a reminder, we are finalizing our list of Cravath’s most powerful partners, and would still love to hear from you.

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See Also:

• Cravath To Choose Some Associates Start Dates By Lottery System
• Help Us Name Cravath’s Most Powerful Partners
• Cravath Partner Speaks "Texan"