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Ticketmaster buys stake: The West Hollywood-based ticket service has picked up a 25 percent stake in iLike.com, where users exchange opinions and recommendations on artists. Purchase price is $13.3 million. The idea is for Ticketmaster customers to find out more about new music and iLike users to find out about upcoming concerts. Ticketmaster is part of IAC/Interactive Corp., Barry Diller's conglomeration of Web businesses. AP
More Vitesse misdeeds: You might recall this is the Camarillo-based chipmaker that fired its CEO, CFO and an executive vice president in connection with the manipulation of the company's option grants. Now Vitesse says that an internal review shows evidence of false sales invoices and improper accounts related to inventory and revenue recognition. Vitesse's stock was delisted from Nasdaq because the company was unable to file its quarterly report on time. The company said no current executives or directors were involved in the backdating or other financial improprieties. LAT
So sue me: That's what Fred Goldman is doing: filing suit against O.J. Simpson for fraud. Goldman is the father of the murder victim Ronald L. Goldman, and he claims that Simpson used a shell corporation to receive a $1 million advance for that infamous book and television interview. The shell corporation supposedly avoids creditors. Goldman won a civil judgment against Simpson but has been unable to collect his portion of a $33.5 million jury award. NYT
Price war: So what happens when you offer severe discounts on flat-screen TVs? Well, your profit margins fall - badly. Circuit City's third-quarter tumble is just one example of retailers who have taken hits by using the flat-screens as a way of getting shoppers in the door. Best Buy, Wal-Mart and Circuit City are all duking it out. Of course, it's good news for consumers: the flat-screens are expected to account for nearly a quarter of the nation's holiday-gift spending this year. WSJ
Valley doughnuts: Chains like Winchells and Krispy Kreme are having a tough time making inroads in the San Fernando Valley, where independent stores pretty much dominate (Dunkin' Donuts isn't even in the Valley). To stay in business, the indies stick to bare-bones operations, working double shifts so they don't have to hire extra help. And forget about time off for the holidays. From the DN:
For Kim Thean, owner of K's Donuts at Ventura Boulevard and Fallbrook Avenue, staying in business comes down to simple economics. When a relative works the register, it's free. "We are family so we don't really care about hours," said Thean, 39, who runs the shop with the help of one employee - his wife, Sokha. "When you have to hire someone and pay them, it's expensive." Thean makes 420 dozen doughnuts a week, a fraction of the 1.2 million doughnuts gobbled down in the Valley every week. Like many emigres from Cambodia, Thean followed other Cambodians into the doughnut business. Cambodians created a niche business out of doughnuts beginning with a La Habra store in 1977, according to James Allen and Eugene Turner in "The Ethnic Quilt." "The business was successful, relatives trained with the owner and opened their own shops, and word of these opportunities spread widely within the community," the authors write.
Super Bowl advertisers: It's a tougher sell this year, with several big names - among them Motorola, Gillette, Aleve and Taco Bell - taking a pass. Ford is still deciding. With many more media options to choose from, advertisers, as expected, are taking a hard line on prices. Among the returning players: Anheuser-Busch, Pepsi, Careerbuilder.com, FedEx, Go- Daddy.com, General Motors and Frito-Lay. Also, the movie studios. NY Post
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.