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	<title>MediaMemo &#187; Lehman Brothers</title>
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	<link>http://mediamemo.allthingsd.com</link>
	<description>by Peter Kafka</description>
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		<title>Is Media Spending Up? It Better Be.</title>
		<link>http://mediamemo.allthingsd.com/20090908/is-media-spending-up-it-better-be/</link>
		<comments>http://mediamemo.allthingsd.com/20090908/is-media-spending-up-it-better-be/#comments</comments>
		<pubDate>Tue, 08 Sep 2009 18:00:14 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Google]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[MediaMemo]]></category>
		<category><![CDATA[Peter Kafka]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[media]]></category>
		<category><![CDATA[anniversary]]></category>
		<category><![CDATA[BBC]]></category>
		<category><![CDATA[collapse]]></category>
		<category><![CDATA[Lehman Brothers]]></category>
		<category><![CDATA[MediaPost]]></category>
		<category><![CDATA[movie]]></category>
		<category><![CDATA[radio drama]]></category>
		<category><![CDATA[rebound]]></category>
		<category><![CDATA[Round2 Communications]]></category>
		<category><![CDATA[spending]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=10757</guid>
		<description><![CDATA[Another "things are looking up, sort of, maybe" report from medialand:  A survey of advertisers says that many of them intend to increase their spending in the coming months. Except for those who say they're going to decrease spending. Bigger picture: A year ago, things started getting downright terrible, which is going to make it a lot easier to say that things have improved today.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/05/light-tunnel.jpg"><img class="alignright size-medium wp-image-7416" title="light-tunnel" src="http://mediamemo.allthingsd.com/files/2009/05/light-tunnel-250x167.jpg" alt="light-tunnel" width="250" height="167" /></a>Another &#8220;things are looking up, sort of, maybe&#8221; report from medialand: A survey of advertisers says that many of them intend to increase their spending in the coming months. Except for those who say they&#8217;re going to decrease spending.</p>
<p>Helpful, right? Check out this <a href="http://www.mediapost.com/publications/?fa=Articles.showArticle&amp;art_aid=113021">MediaPost</a> piece if you want more on the survey, conducted by media-buying shop Round2 Communications.</p>
<p>The bigger picture: This week, as you&#8217;ll hear over and over again, is the one-year anniversary of the Lehman Brothers collapse. The BBC has both a <a href="http://www.bbc.co.uk/programmes/b00mq34n">radio drama</a> and a <a href="http://www.bbc.co.uk/programmes/b00mq34n">made-for-TV movie</a> commemorating/dramatizing the event.</p>
<p>Which means it&#8217;s the one-year anniversary of the economy&#8217;s collapse from recession to (short-lived) catastrophe. Which means this is the one-year anniversary of the collapse of the advertising business. Which means that any year-over-year results you see now had best show an increase because they&#8217;re going up against positively brutal comparisons from 12 months ago.</p>
<p>Remember: This ad drop was so bad that even <a href="http://mediamemo.allthingsd.com/20090716/google-revenue-in-line-earnings-a-pleasant-surprise/">Google (GOOG) flatlined</a> for a bit.</p>
<p>So if and when you do see <a href="http://mediamemo.allthingsd.com/20090813/another-hint-of-very-cautious-optimism-for-the-ad-market/">signs of a rebound</a>, make sure you&#8217;re looking at them with some perspective: There&#8217;s just about nowhere to go but up. Right?</p>
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		<title>Ghosts of AOL, Lehman Visit Time Warner in $25 Billion Write-Down</title>
		<link>http://mediamemo.allthingsd.com/20090107/ghosts-of-aol-lehman-visit-time-warner-in-25-billion-writedown/</link>
		<comments>http://mediamemo.allthingsd.com/20090107/ghosts-of-aol-lehman-visit-time-warner-in-25-billion-writedown/#comments</comments>
		<pubDate>Wed, 07 Jan 2009 15:28:46 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Peter Kafka]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[accounting]]></category>
		<category><![CDATA[AOL]]></category>
		<category><![CDATA[Lehman Brothers]]></category>
		<category><![CDATA[Time Warner]]></category>
		<category><![CDATA[writedown]]></category>

		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=2859</guid>
		<description><![CDATA[Yes, this economic collapse is different than the dotcom blowup at the beginning of the decade. But there are some similarities. For instance, in 2002, Time Warner had to take a $54 billion write-down connected to its disastrous AOL deal. Today, the company has announced a $25 billion write-down, which is in part connected to... its disastrous AOL deal. Insult to injury: Time Warner is also paying for Lehman's collapse.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/01/aol-deal.jpg"><img class="alignright size-full wp-image-2866" title="aol-deal" src="http://mediamemo.allthingsd.com/files/2009/01/aol-deal.jpg" alt="" width="230" height="300" /></a>Yes, this economic collapse is different than the dotcom blowup. But there are some similarities.</p>
<p>For instance, in 2002, Time Warner had to take a $54 billion write-down connected to its disastrous AOL deal. Today, the company has announced a <a href="http://finance.yahoo.com/news/Time-Warner-Updates-2008-bw-13989272.html">$25 billion write-down</a>, which is in part connected to&#8230; its disastrous AOL deal.</p>
<p>To be fair, most of that charge has nothing to do with AOL, but with problems in its cable business; spin-out company Time Warner Cable (TWC) announced a <a href="http://finance.yahoo.com/news/Time-Warner-Cable-to-book-15B-apf-13989869.html">$15 billion write-down</a> of its own. But while Time Warner doesn&#8217;t elaborate on the charges in its release&#8211;it just says they are &#8220;related to goodwill and identifiable intangible assets at the Cable, Publishing and AOL segments&#8221;&#8211;I&#8217;m told that some of the write-down does indeed relate to the original AOL deal from eight years ago.</p>
<p>Other problems at Time Warner aren&#8217;t of its own making: The company says it will also take a hit of $50 million to $60 million from a &#8220;restructuring of a lease for space in the Time &amp; Life Building,          held by a lessee who recently declared bankruptcy.&#8221; That tenant, I&#8217;m told, was Lehman Brothers.</p>
<p>In any case, as astonishing as these numbers look in print, they don&#8217;t have much to do with Time Warner&#8217;s performance as a company, in the present tense. But Time Warner had worrisome news on that front, too: &#8220;The economic environment has proved somewhat more challenging than the Company previously expected, particularly for the advertising businesses at the AOL and Publishing segments.&#8221; Sigh.</p>
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