Brilliant...or Not: Edition IV
IBM initiating a major stock buyback. Citing robust growth in Europe and a greater diversification of their business, IBM is showing their viability even in times of economic hardship ... HA! Take that, US Recession! (Too soon?)
Ever since selling off their personal computer division to Lenovo, IBM has been a model in rebranding as they've gone on to redefine their brand as an expert in enterprise-wide information technology and (apparently) they're doing pretty well. Feeling good enough about themselves to buy back a lot of stock and push their earnings up.
Getty Images bought by private equity firm.
The proliferation of user-generated content combined with a changing media environment, sent media stalwart Getty Images seeking out new opportunities for strategic growth, so they put themselves on the block ... The result? A $2.1 billion offer from private equity firm Hellman & Friedman.
Getty was already exploring other areas for business growth (and quite successfully), but as a private company they have greater latitude and more opportunities.
Pfizer pulls Jarvik-clad Lipitor ads ...
Because the advertisements featuring endorsements from Jarvik, the inventor of the artificial heart (who incidentally cannot practice as a doctor and wasn't trained as a cardiologist ... minor details folks, just details), was perhaps ... okay probably ... okay most certainly misleading advertising for Lipitor.
This latest happening is just another twist and turn when it comes to direct-to-consumer pharmaceutical advertising, where brands seem to be taking a lot of hits lately either from lawsuits or government inquiries.
Visa largest IPO ... like ever!
After watching MasterCard go public and their stock perform outstandingly well, Visa was like "Woohoo! I'm gonna do that, too! Thanks, MC!" ... and so Visa raised $17.9 billion!
In moving from a not-for-profit membership-owned company to a publicly owned company with a lot of cash, Visa gains strategic maneuverability, which should help the brand easily weather an economic downturn while also helping member banks gain some short-term liquidity.
Dell + WPP = DaVinci.
Dell and WPP announced they were teaming up to create a dedicated marketing and advertising agency named DaVinci, because it's where art meets science (yawn).
Quite a presumptuous name for an agency - Leonardo is turning over in his grave - alas, like Mona Lisa we will keep our emotions and thoughts on this to ourselves... and while Dell has seen its brand steadily improving back under its namesake, we have yet to see some creative work.
Apple ... third-party apps on the iPhone ...
One could almost sense how much it hurt for Steve Jobs to allow third-party applications on the iPhone, even though it is a brilliant idea, since: a) they can only be sold through iTunes, b) only one can be running at a time, c) no media/music players will be accepted, and d) Apple makes 30% off the sale!
Giving people even more reasons to use the iPhone (and iTouch) can only be a good thing and might just push me over the top ... Can I have one now, please? ... How 'bout now?
Starbucks takes away breakfast sandwiches ...
Citing that they had somehow lost the trademark scent of burnt coffee in their stores, Starbucks has begun a major overhaul to recapture the essence of their brand in the face of increasing competition ...
Starbucks had definitely lost sight of their brand (i.e., like selling mainstream music instead of independent up-and-comers), and sure, maybe that means discontinuing their unbelievably remarkably tasty and aromatic breakfast sandwiches. But after the 'bucks's much-lauded "retraining," the introduction of "skinny" lattes, and the launch of a quasi-social networking site, we are a bit nonplussed yet optimistic.
Hey, here's $2, go buy me some Bear Stearns.
... and while you're at it, find out how much they're asking for WaMu, too. Ah ha! You didn't think we'd make it through a "Brilliant ... or Not" without mentioning JPM acquiring Bear Stearns for $2/share with the help of the Fed, did you (Ed note: as of 3/24, word is they're renegotiating for closer to $10/share)?!? Come on ...
It was extremely surprising that Bear went down so quickly ... although the brand was slowing down and had recently been taking huge hits, one would think they'd have built more goodwill to at least see other options; then again, who knows? It is a great move for JPMorgan, and an even better move for its CEO Jamie Dimon, who needed that one big acquisition to put his stamp on the company.
Um, yeah and Visa's stock is heading south right now. Why? Of all the reasons, my favorite is the dark horse: it's the interchange lawsuits, stupid. This IPO sets up Visa like a shelter, giving them plausible deniability from what's happening with interchange fees. See here: http://www.creditslips.org/creditslips/2008/03/the-visa-ipo.html
I work with a merchant group that focuses on this very issue, and I know this issue does not get a lot of press, but it's very much in people's minds in the industry. Can't rule it out.
Gavin, thanks for the heads up on this. while we obviously do not know of any of Visa's intentions on this, you may be right in saying that they're not exactly forthcoming (perhaps timing is a bit suspect).
Transparency in business is extremely important today, something that we've written about often, because consumers have access to more and more information and they have greater business savvy, which makes us wonder (as you pointed out) why it is not getting a lot of press?