Finance Matters

Archive for April, 2010

Here’s the latest in the Gizmodo iPhone debacle.

Yahoo! News’ Michael Calderone is reporting that the attorney for Gizmodo’s parent company, Gawker Media, is hashing out a strategy that would essentially turn back the clock on the search warrant that allowed Silicon Valley police to enter the home of Gizmodo editor Jason Chen last Friday and seize computers and documents as part of a probe into a stolen iPhone prototype he had obtained.

The attorney, Thomas Burke, told Yahoo! News he’s trying to sell the D.A. on a process by which “the search warrant is treated more like a subpoena,” which police should have opted for in the first place.

Calderone writes:

In a subpoena situation, Gizmodo may be asked for information from the seized computers that falls within specific parameters. Then, Gizmodo could either turn over that information or object, bringing the debate to court. So whether Gizmodo complies would depend on what’s being asked for, and whether that information would reveal confidential information.  ”It’s impossible to assert whether they’re going to get anything,” Burke said. 

“In the meantime, they don’t get to see it,” Burke said of information on the seized computers. “They don’t get to touch it. They don’t get to manipulate it-as if they hadn’t taken it.”

Read more at Yahoo! News >>

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(This guest post previously appeared at the author’s Facebook)

We’ve all been shocked and saddened by the tragic events in the Gulf of Mexico. My heart breaks for coastal residents who are facing fears of the unknown impacts of the oil spill.

As an Alaskan, I can speak from the heart about the tragedy of an oil spill. For as long as I live, I will never forget the day the Exxon-Valdez ran aground on Bligh Reef and millions of gallons of North Slope crude poured into the waters of our beautiful Prince William Sound. The spill was devastating to so many Alaskans who, like my own family, make their living on the water from our commercial fishing industry. “Heartbreaking” was the word my husband Todd, an Alaska Native and trained oil spill responder, used to describe the scene as we watched it unfold on land and water that we feel is sacred.

Alaskans understand the tragedy of an oil spill, and we’ve taken steps to do all we can to prevent another Exxon tragedy, but we are still pro-development. We still believe in responsible development, which includes drilling to extract energy sources, because we know that there is an inherent link between energy and security, energy and prosperity, and energy and freedom. Production of our own resources means security for America and opportunities for American workers. We need oil, and if we don’t drill for it here, we have to purchase it from countries that not only do not like America and can use energy purchases as a weapon against us, but also do not have the oversight that America has.

In the coming days, there will be hearings to discover the cause of the explosion and the subsequent leak. Actions will be taken to increase oversight to prevent future accidents. Government can and must play an appropriate role here. If a company was lax in its prevention practices, it must be held accountable. It is inexcusable for any oil company to not invest in preventative measures. They must be held accountable or the public will forever distrust the industry.

This was the position I took as an oil and gas regulator and as Governor of Alaska when my administration ramped up oversight of the oil industry and created a petroleum-systems-integrity office to monitor our oil and gas infrastructure for potential environmental risks. I took a lot of heat for the stand I took “against the oil industry” (which is how political adversaries labeled my actions). But we took tough action because there was proof of some improper maintenance of oil infrastructure which I believed was unacceptable. We instituted new oversight and held British Petroleum (BP) financially accountable for poor maintenance practices. We also filed a Friend-of-the-Court brief against Exxon’s interests for its decades-old responsibility to compensate Alaskans affected by the Valdez spill, and I took other actions “against” the industry which ultimately helped hold it accountable.

All responsible energy development must be accompanied by strict oversight, but even with the strictest oversight in the world, accidents still happen. No human endeavor is ever without risk – whether it’s sending a man to the moon or extracting the necessary resources to fuel our civilization. I repeat the slogan “drill here, drill now” not out of naiveté or disregard for the tragic consequences of oil spills – my family and my state and I know firsthand those consequences. How could I still believe in drilling America’s domestic supply of energy after having seen the devastation of the Exxon-Valdez spill? I continue to believe in it because increased domestic oil production will make us a more secure, prosperous, and peaceful nation.

Our hearts go out to all Americans along the coast affected by this recent tragedy, especially those who lost family members in the rig explosion, and our prayers go up for a successful recovery. May spill responders be safe.

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Today is a really sad day for fans of Lala like ourselves.

The online music service that sold access to full albums for just a dollar announced it is shutting down on May 31.

Apple bought Lala in December for its technology and talent, not its money-losing business. So it makes sense that Apple is shuttering the service.

Any hope that Apple would launch a comparable service at the same time Apple announces its new iPhone has been dashed by Peter Kafka at All Things D.

Peter is well sourced in the music industry, and he hears Apple is not ready to launch a web-based version of iTunes to replace the shuttered Lala. At least not by June, when Apple holds its big Worldwide Developers Conference.

Another potential date, we’d add: Sometime in early- to mid-September, when Apple typically updates its iTunes software and iPod lineup.

According to Kafka, Apple has only begun preliminary talks with music labels about creating a web-based service that could stream music from one site to multiple devices — like your iPhone, iPad, and desktop, presumably. The labels are weary because they think people should pay separately for each device. (Which is unfair and crazy. We bought the music. Let us listen to it however we want. But it’s not like anyone would ever accuse the music industry of being web savvy.)

Apple could just override them and make its streaming service without their participation, but Apple doesn’t want to irritate content companies too much, Kafka says. It’s trying to get TV shows for cheaper, and access to more movies.

One big footing move with the music industry and it could jeopardize all that.

See Also: Apple vs Google: The Next 10 Battles To Watch

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See Also:

• Apple Employees Tweet!
• Google Buys Stealth Startup Founded By Ex-Apple Employees
• Apple vs Google: The Next 10 Battles To Watch

All signs say that ‘Iron Man 2′ is going to obliterate the box office when it opens the weekend of May 7.

The Marvel Studios flick was the No.1 movie in six markets when it opened internationally yesterday, bringing in a total of $2.2 million from 960 venues, according to the Hollywood Reporter.

(Its distributor, Paramount, rushed its opening abroad to give it an extra week of breathing room before the June 11 World Cup kickoff in South America.)

Nikke Finke over at Deadline.com is going bananas:

It doesn’t matter if this sequel is any good. (Some early reviews are saying it disappoints although it has a 70+% positive on Rotten Tomatoes.) It doesn’t matter that it’s not in 3D. (Some fanboys are griping that it’s only in 2D but ticket prices will be cheaper.) Because this Marvel comic book caper distributed by Paramount is still gonna make a mint even without lifting an armored finger. Maybe $135 million domestic its first 3-day weekend, or so rival studios predict. The original IM made $98.6M. Only some expect IM2 to break The Dark Knight‘s 3-day record of 158.4M.

To put it in perspective, the original ‘Iron Man’ grossed at $318.4 domestically.

Watch the trailer for the sequel below:

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See Also:

• G.I. Joe Star Channing Tatum Headed To Roman Empire For Next Movie
• No Recession In Hollywood: Movie Business On Track For Record $10B Year
• Can ‘Star Trek’ Finish Brad Grey’s Paramount Mission

The Deepwater Horizon explosion has been a nightmare for regulators, energy companies, and cleanup crews this week. As the situation continues to decline, oil service companies are taking a beating.

Our chart below shows companies involved or affected by the Deep Water incident and the amount of market cap that they’ve lost since April 22nd, when the incident was first reported in the media. Altogether the combined amount of market cap lost totals a whopping $33.2 billion.

Bonus: Everything you need to know about the Deepwater oil spill >

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