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...Curse of the Mogul, Jonathan Knee, Bruce Greenwald and Ava Seave say the biggest problem with media companies is the moguls, who have been seduced into believing that content is king, bigger is always better and talent - especially their own - is irreplaceable. So blinded are they, they have mismanaged their companies and shareholders have suffered. Co-author Knee, director of the media program at Columbia University and an investment banker with Evercore Partners, weighs in on the next big media deal, the treachery of the Internet and why the movie business sucks. (See the top 10 financial collapses...

Author: /time Magazine | Title: Sizing Up Murdoch, Redstone and Other Moguls | 11/3/2009 | See Source »

...spread over a big cable company. However, it is, at a minimum, intriguing that the CEOs of the two leading cable companies in the United States [Comcast and Time Warner Cable] have taken diametrically opposite views on whether it is wise or strategic to invest capital into content businesses. [While Comcast considers merging with a content company,] Glenn Britt, CEO of Time Warner Cable, has said he will not under any circumstances invest any of the company's quite significant free cash flow into any content businesses. It seems highly unlikely they could both be right...

Author: /time Magazine | Title: Sizing Up Murdoch, Redstone and Other Moguls | 11/3/2009 | See Source »

...Recently Bob Iger, CEO of Disney, said the whole movie industry needed to radically rethink the way it was operating. What needs to be done? The movie business has for a long time been a troubled business. Content has never been king. The reality is that, wonderful as it is, the value of it doesn't go to the shareholders. Movie moguls need to be smart about how to manage talent. The reason [longtime Universal Studios owner] Lew Wasserman was able to make more money than anyone was that he set the culture of the industry. In his day there...

Author: /time Magazine | Title: Sizing Up Murdoch, Redstone and Other Moguls | 11/3/2009 | See Source »

...business it was to start with. The worst kind of business is the hit-driven business. One celebrity can hold up your entire enterprise. People are forever tricked into believing that somebody has the magic sauce and must be paid whatever they ask. Businesses such as newspapers, where the content is continuous and you're relying on the value of a franchise rather than a star reporter, are better businesses. Newspapers had 30% or more margins for years. There's no question that the Internet has made the newspaper business tougher than it was before. But newspapers used...

Author: /time Magazine | Title: Sizing Up Murdoch, Redstone and Other Moguls | 11/3/2009 | See Source »

...Soares points out that Suzlon has built a factory in Tianjin with more than 900 employees to satisfy Chinese requirements for 70% local parts content in turbines. "They want to promote local industry. But then the question is, What is local?" says Soares. "More than 95% of my employees are Chinese. I'm an investor here, a producer here and pay taxes here. So why is there this difference?" Adding insult to injury, Chinese firms are proving to be tough competitors in markets outside China's borders. In Germany, where government subsidies helped stimulate global solar-panel production, an industry...

Author: /time Magazine | Title: Tower of Power | 11/2/2009 | See Source »

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