Dave Rogers, ex-Klipsch, joins Harman’s Consumer Division as vice president and general manager, Americas … Former Disney finance executive Ann Mathers joins Netflix board … Changes at AVC Group, formerly Linear AV Control Group: Bob Farinelli named chief technology officer, succeeded as Elan Home Systems president by Paul Starkey; Mike Detmer promoted to president of the Niles Audio brand; Richard Schnell, ex-SpeakerCraft, joins as vice president of finance; Vipul Doshi, ex-Vizio, joins as vice president of operations ….John Butler, ex-Blockbuster, named Rent-a-Center vice president of inventory management
RealD shares jumped nearly 22 percent Friday, their first day of trading on the New York Stock Exchange, closing at $19.51 from their IPO price Thursday of $16. They began the day at $19.55 and swung from a low of $18.87 to a high of $21. RealD plans to use the $82.6 million in net proceeds from the offering to repay $25.1 million in loan debt and the rest for general corporate purposes, including “investments in technology,” the company said Thursday just after the SEC declared the IPO effective. RealD “may also use a portion of the net proceeds to acquire complementary businesses and technologies,” the company said. Despite “tremendous demand” for the RealD IPO “that has now spilled over into the aftermarket,” RealD shares are overvalued, BTIG analyst Richard Greenfield said in a research note Friday. “While we sense quite a bit of investor excitement around the RealD IPO, we worry that investors do not appreciate the longer-term risks to RealD’s business model,” Greenfield said. He cited the high cost to theater owners of licensing the RealD system. “RealD will need to lower license fees or its exhibition partners will go elsewhere over time,” Greenfield said. And RealD’s 3D box office forecasts are “too aggressive,” he said. “While we believe 3D movie-making is here to stay and will increase notably over the coming year, we believe 3D attendance per screen is highly skewed by the novelty of 3D and the limited screens available today. We expect RealD’s gross license fees per screen per year to decrease consistently going forward, as there will not be enough ‘good’ 3D movies to maintain recent attendance per screen levels. Also, remember, if 3D proves to be more of a ‘fad’ than investors currently expect, RealD is taking the revenue risk as it is not selling systems; RealD’s entire business is built on a licensing model that requires continued strength in 3D attendance."
Private meetings on net neutrality continued this week at the FCC (CD June 23 p1) , with ex parte filings reporting two attended by Chief of Staff Ed Lazarus. Prohibitions on blocking legal content or interfering with attaching devices that aren’t harmful, as well as legislative language for a nondiscrimination principle, were among topics discussed by NCTA President Kyle McSlarrow, AT&T Senior Executive Vice President James Cicconi and Verizon Executive Vice President Tom Tauke. Treatment of specialized services, enforcement, applying some nondiscrimination principles to wireless and “transparency of broadband Internet service performance and network management practices” also came up, said a filing Wednesday, http://xrl.us/bhsw8f. Another filing, http://xrl.us/bhsw8q, said possible net neutrality legislation was also discussed at the FCC by Google’s Richard Whitt, Skype’s Christopher Libertelli and Open Internet Coalition Executive Director Markham Erickson. The discussion involved many of the subjects at the meeting with NCTA and telco executives. Bruce Gottlieb, the outgoing chief counsel to Chairman Julius Genachowski, and Office of Strategic Planning Deputy Chief Zachary Katz were at both meetings.
Private meetings on net neutrality continued this week at the FCC (WID June 23 p1), with ex parte filings reporting two attended by Chief of Staff Ed Lazarus. Prohibitions on blocking legal content or interfering with attaching devices that aren’t harmful, as well as legislative language for a nondiscrimination principle, were among topics discussed by NCTA President Kyle McSlarrow, AT&T Senior Executive Vice President James Cicconi and Verizon Executive Vice President Tom Tauke. Treatment of specialized services, enforcement, applying some nondiscrimination principles to wireless and “transparency of broadband Internet service performance and network management practices” also came up, said a filing Wednesday, http://xrl.us/bhsw8f. Another filing, http://xrl.us/bhsw8q, said possible net neutrality legislation was also discussed at the FCC by Google’s Richard Whitt, Skype’s Christopher Libertelli and Open Internet Coalition Executive Director Markham Erickson. The discussion involved many of the subjects at the meeting with NCTA and telco executives. Bruce Gottlieb, the outgoing chief counsel to Chairman Julius Genachowski, and Office of Strategic Planning Deputy Chief Zachary Katz were at both meetings.
Factors including cost, lack of digital literacy and access are preventing older Americans from getting online, panelists said at a conference by Project GOAL (Get Older Adults online) Thursday. The FCC is actively working on implementation of the National Broadband Plan, said John Horrigan, the agency’s consumer research director.
Factors including cost, lack of digital literacy and access are preventing older Americans from getting online, panelists said at a conference by Project GOAL (Get Older Adults online) Thursday. The FCC is actively working on implementation of the National Broadband Plan, said John Horrigan, the agency’s consumer research director.
U.S. telecom companies’ internal disaster and emergency response operations, preparedness and timely response are critical in recovery efforts in Haiti, companies said on a roundtable at the Department of State Friday. The Haiti earthquake, a major test for emergency response capabilities, underlined the need for better coordination, they said.
The Department of Justice announces that an Italian citizen and former executive of Control Components Inc. (CCI), Flavio Ricotti, has been extradited to the U.S. from Germany to face alleged bribery charges.
Health Net and its affiliates agreed to settle a lawsuit by Connecticut alleging failure to protect medical records of more than 500,000 customers there, the attorney general’s Office said. The state investigated last year after the company lost a computer disk containing health information on 1.5 million consumers nationally (WID Nov 23 p4). The disk held names, addresses, Social Security numbers and financial and protected health information, the office said. Health Net delayed notifying consumers, the state found, and a company investigation concluded that the disk probably had been stolen. Health Net will pay statutory damages of $250,000 to the state under the settlement and, if someone uses the information illegally, an additional $500,000, said Attorney General Richard Blumenthal, a Democrat running for Senate. The company also promised to protect patient data by improving employee training and system controls, management and oversight.
Midwest Communications Inc. bought four FM stations in Lansing, Mich., from Rubber City Group. The purchase of WJXQ, WJZL, WTXQ and WVIC was completed Thursday. Broker Richard Foreman Associates, which disclosed the deal, didn’t publicize the purchase price. Rubber City has no plans to sell its Akron, Ohio, stations, the broker said.