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HP inquiry: California Attorney General Bill Lockyer has launched a criminal investigation into the boradroom leaks at Hewlett-Packard Co., with subpoenas already out. The SEC is also investigating. This is shaping up to be a major story, what with claims from high-profile venture capitalist Thomas Perkins that the company improperly recorded phone calls and e-mails. HP says it didn't eavesdrop, but engaged in "pretexting," which involves calling a phone company pretending to be a customer and requesting phone records. Backgrounder: Amazing as it may sound, the protection of phone records falls into a gray legal area, reports the NYT.
Freston speaks: The LAT manages to snare a little time with the ousted Viacom CEO, who doesn't say much other than he wants to get back in the game. "I'm open to anything," he told the Times. Says he wants to take a trip to Asia "to clear my head." With a severance package of $60 million - at least that's the rumble - he can efford to wait a while before making his next move. Vanity embarrassment: Tom Freston's firing was especially untimely over at Vanity Fair, which ranked him just ahead of CBS boss Les Moonves in its annual "New Establishment" list that just hit newsstands.
About that list: VF goes beyond the usual media and technology types in this year's widely followed ranking of movers and shakers to include the financial sector folks, most of whom are based in NY. To make room, the magazine has doubled the size of its list to 100 from 50.
KB falls: Shares of the L.A.-based homebuilder were down 2.5 percent in early trading this morning after the company lowered its earnings outlook for the year to $8.00-$8.50 per share from a previously reduced forecast of $10. Based on preliminary numbers, third-quarter sales fell 43 percent, and cancellations shot up.
Pascal promotion: This wasn't such a bad week for at least one Hollywood executive. Amy Pascal becomes co-chairman of Sony Pictures Entertainment, and her contract has been extended to 2011. Pascal, previously chairman of the movie group, will share the co-chair title with Michael Lynton, who remains chief executive of Sony Pictures Entertainment. She is credited with lifting Sony into first place in ticket sales, thanks to "The DaVinci Code."
Anschutz sued: The owner of the Forum claims in a federal lawsuit that Anschutz Entertainment Group breached its contract to book shows at the Inglewood arena and diverted business to the Anschutz-owned Staples Center. The Forum is owned by the Faithful Center Bible Church, which purchased the arena from AEG. AEG denies the allegations.
Katie's old folks: The ratings shot up for the CBS Evening News, but Katie Couric's arrival hasn't done much for advertisers, who still view the network news as a bastion for older viewers. While Warner Bros. and Microsoft bought spots for the opening broadcast, most of the advertisers were aimed at a graying demographic. Who else watches the news at 6:30?
San Pedro revision: The controversial waterfront development will be streamlined in order to get past community opposition. Port of L.A. officials are dropping future hotel and retail sites. Instead, the 36-year plan will focus on completing the promenade, creating more waterfront access, improving roadways, reconstructing Ports O' Call, building a new cruise ship terminal in the outer harbor, extending the Red Car into downtown and developing parking garages. Sounds like a full list.
Pilot project: The Port of Long Beach will develop a diesel hybrid engine for use in tractors and test it during a six-month period, probably beginning next year. they want to determine whether clean-burning hybrid motors are a viable alternative to the current generation of dirty diesel engines.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.