Message-ID: <1021952.1075845222564.JavaMail.evans@thyme> Date: Tue, 5 Jun 2001 07:40:23 -0700 (PDT) From: thestandard@boing.email-publisher.com To: mediagrok@thestandard.email-publisher.com Subject: MEDIA GROK: MyPoints' Finances to Gain Altitude Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "TheStandard.com" @ENRON X-To: Media Grok X-cc: X-bcc: X-Folder: \Lewis, Andrew H.\Lewis, Andrew H.\Deleted Items X-Origin: LEWIS-A X-FileName: Lewis, Andrew H..pst ===================================================================== THE STANDARD'S M E D I A G R O K A Commentary on What the Press Is Reporting and Why ===================================================================== | http://www.thestandard.com | Tuesday, June 5, 2001 TOP GROKS: * MyPoints Returns Finances to an Upright Position * Leaving Las Vegas, Entering the Web * Sleepless in Stockholm MORE NEWS: * Windows of the Soul * EMI Plans Legal Music Downloads * Sega and Sony to Link Consoles Via Internet * Lawsuits Speak Louder Than Words /=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= advertisement =-=-= **The Standard's new COMPANY INDEX** Find information about hundreds of companies in our new COMPANY INDEX. Browse through the alphabetical listings, industries and categories, or perform a search to find the company you're looking for. The Company Dossier hosts articles, a company profile, stock information and financial overviews, key players and contact information. http://click.email-publisher.com/oaaab7qaaP7YrbVAtCeaaaacSb/ =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=/ TOP GROKS ~~~~~~~~~ MyPoints Returns Finances to an Upright Position At first glance, this deal sounds as appealing as airline food: Pending approval, the online subsidiary of United Airlines will buy MyPoints, an "incentive marketing" company that gives redeemable shopping points to users who jump through hoops such as reading targeted e-mail. Seems weird, but InternetNews.com suggested the deal makes some sense. "Like several of its competitors, San Francisco-based MyPoints has found airlines and travel companies to be some of the most receptive to its offerings," said InternetNews.com's Christopher Saunders, noting that MyPoints' clients include Continental and Alaskan Airlines. Forbes.com predicted that "large companies desperate to beef up their Internet activities" buying "promising but beaten-down dot-coms" will become a trend. The New York Times, on the other hand, pointed out that United is building its Net arm at a time when other companies are closing or reabsorbing their Internet units. Forbes added that United opened its online venture a mere seven months ago - well, that's seven months sooner than Wal-Mart launched its ISP. United would pay $2.60 a share for MyPoints stock, a price observers seemed to consider mile-high. "News of the deal sent shares of MyPoints leaping 96 cents, to $2.56," said CBS MarketWatch. "It should have ... the offer comes at a 62.5 percent premium to Friday's closing price and a whopping 420 percent premium to the stock's 52-week low." The New York Times took a good news/bad news approach, saying $2.60 "is well below the $88.50 it sold for in December 1999, but quite a lot better than the 50 cents that MyPoints shares hit in March." Either way, MyPoints is unprofitable, and the online advertising market in general has seen better days. Forbes.com did the best debunking job, under the incredulous headline "United Airlines Buys Tiny Direct Marketing Firm." Reporter Lisa DiCarlo wondered how many of MyPoints' 16 million subscribers are active members, whether the two companies' subscriber lists overlap much, and how MyPoints' proprietary technology is supposed to work for United. Another mystery remains: United told InternetNews.com that it is interested in linking MyPoints' marketing services with UAL's frequent-flier club, while the New York Times reported that United won't merge its frequent-flier program with the MyPoints reward program. "The typical MyPoints user does not fly often enough to make airline miles valuable to them," said the Times. "But United will offer travel discounts as rewards for MyPoints points." Can we apply the points to better airline food instead? - Jen Muehlbauer UAL Corp. Unit to Acquire Mypoints.com (Reuters) http://www.thestandard.com/article/0,1902,26860,00.html MyPoints to be bought by UAL unit http://cbs.marketwatch.com/news/story.asp?guid=%7B4AE9394C%2DA0B2%2D4897%2D8BEB%2D4CE3B8144B79%7D United Airlines Buys Tiny Direct Marketing Firm http://www.forbes.com/2001/06/04/0604united.html United Airlines Subsidiary Makes Pitch For MyPoints.com http://www.newsbytes.com/news/01/166440.html United Airlines to Buy MyPoints.com http://www.internetnews.com/IAR/article/0,,12_777641,00.html United Airlines Buys Online Marketer http://www.nytimes.com/2001/06/05/technology/05ONLI.html (Registration required.) ------------------------------- Leaving Las Vegas, Entering the Web Future Comdex attendees may have the option of staying in their hotel rooms all night and gambling from their laptops. Nevada has taken the first step towards legalizing online gambling. Like past legislation intended to ban Internet betting in the U.S. and Australia - and, if you're feeling cynical, like any legislation anywhere - it has come with political finagling and special-interest lobbying. The federal government considers Net betting illegal, and this bill wouldn't change that. But Nevada's pending legislation would authorize regulators to license brick-and-mortar casinos to go online as soon as they can prevent bets from minors or anyone whose home jurisdiction disallows gambling. (MSNBC gave a good rundown of what that might involve and how long it might take - think 2003.) Nevada casinos wishing to legally offer online bets would have to front a $500,000 licensing fee every two years. Some say the fee would ensure that only reputable companies take bets online; others say it would unfairly lock out small operators. "That would have been like saying five years ago, 'only bricks-and-mortar bookstores can sell books over the Internet,'" a Nevada state Senator Terry Care told the New York Times. He has a point, but then again, there isn't much of a market in offshore, rip-off paperbacks. The Las Vegas Review-Journal explained the local saga behind gambling legislation. An original online gambling bill died in the Senate amid nebulous political goings-on. It was revived as an add-on to a different bill about work cards for casino employees. If the online bit is an amendment, a notoriously anti-gambling state senator wouldn't be able to pull the usual maneuver - amending any gambling bill with a substantial tax increase - because the bill would already have an amendment. The Vegas papers, as an aside, consistently refer to the "gaming," not "gambling," industry. Several outlets noticed that Las Vegas casinos have reversed their stance on Internet betting. "But as they've watched online casinos rake in cash from people who never need to leave their computers to make a bet, several companies have changed their minds and are pushing for a regulated way to get in on the action," said ZDNet. Sounds like politics as usual to us. - Jen Muehlbauer Nevada lawmakers OK Net betting http://www.msnbc.com/news/578499.asp Nevada Approves Online Gambling http://www.nytimes.com/2001/06/05/technology/05GAMB.html (Registration required.) Nevada Casinos Eye Their Piece Of The Net Pie http://www.zdnet.com/intweek/stories/news/0,4164,5092022,00.html Virtual Gambling Gets Real Approval (AP) http://abcnews.go.com/sections/us/DailyNews/net_gambling010604.html New life breathed into Internet gaming proposal http://www.lasvegassun.com/sunbin/stories/xgr/2001/jun/04/511907548.html BILL REVIVED: Internet gaming advances http://www.lvrj.com/lvrj_home/2001/Jun-04-Mon-2001/news/16242105.html ------------------------------- Sleepless in Stockholm Gather 'round, boys and girls, for your quarterly heaping helping of ICANN abuse. Four times a year, the quango (quasi non-governmental organization) that nearly everybody loves to hate holds a public meeting in some usually far-flung locale. The just-concluded meeting in Stockholm stimulated a full measure of controversy and coverage. For a good overview of the gnarly issues on ICANN's agenda, turn to Jim Wagner's report in InternetNews. Wagner touched on ICANN's budget (it's increasing - surprised?), the search for a new home for the .org domain, alternate roots and the polite international revolt against ICANN's legitimacy. A sound bite from an Australian delegate summed up this last beef: "ICANN is basically an American intranet" holding the ..com, .net, .org and country code top-level domains. ZDNet's Interactive Week ran two stories on the issue of alternate roots, one from Reuters and one by staffer Juliana Gruenwald. The Reuters piece took the point of view of the renegade name providers who will happily sell you names ending in .xxx, .biz, or hundreds of other unsanctioned choices. Gruenwald concentrated on ICANN's hard-line stand against the legitimacy of such alternate roots. Pretty much everybody who touched on alternate roots quoted Karl Auerbach, one of the newly seated board-members-at-large. Unlike most on the ICANN board, Auerbach has long professional experience in network architecture. "Competing roots are no threat," Reuters quoted Auerbach. "ICANN uses the threat of Internet destability to scare people away. ... But in practice it is not in the interest of competing root companies to ... guide people to the wrong places on the Web." Wired carried another Reuters story, a look askance at the dense thicket of jargon that has grown up around ICANN in the few brief years of its existence. The piece quoted ICANN board member Amadeu Abril I Abril grumbling, "We speak ICANNese, not English." - Keith Dawson ICANN Wraps Up Stockholm Meetings http://www.internetnews.com/isp-news/article/0,,8_777441,00.html New Domain Firms Sweet-Talk Web Naming Body (Reuters) http://www.zdnet.com/intweek/stories/news/0,4164,2768413,00.html Alternate Roots, Naming Systems Coming Under Fire http://www.zdnet.com/intweek/stories/news/0,4164,2768503,00.html ICANN, Meet Gobbledygook.org (Reuters) http://www.wired.com/news/politics/0,1283,44269,00.html ICANN Seeks Domain Delay (AP) http://www.nyt.com/aponline/business/AP-Internet-Names.html (Registration required.) ICANN Struggles With Internet Names (AP) http://www.washtech.com/news/regulation/10214-1.html Dot-Complaining Because ICANN (Motley Fool) http://biz.yahoo.com/mf/010604/plate_010604.html --------------------------------------------------------------------- /=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= advertisement =-=-= **Standard U -- Executive Education for Today's Leaders** Lead by the faculty of Stanford Graduate School of Business and top industry leaders, Standard U is designed to equip Sr. managers with the skills they need to prosper. To get more information and apply: Call 800-945-0880 or visit http://click.email-publisher.com/oaaacjpaaP8GlbVAtCeaaaacTb/ Mention special tuition code, TISCCC and get 25% off tuition. =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=/ /=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= advertisement =-=-= GET 4 FREE ISSUES OF THE INDUSTRY STANDARD The Industry Standard is the only weekly newsmagazine devoted to covering the New Economy--and you're invited to sample 4 issues--absolutely risk-free! Click on the url below to order today. http://click.email-publisher.com/oaaab7saaP7YtbVAtCeaaaacUb/ =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=/ MORE NEWS AT THESTANDARD.COM ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Windows of the Soul By Dominic Gates Microsoft and AOL's Windows XP talks are deadlocked because Redmond wants immunity from legal action - a demand that reeks of both confidence and nervousness. http://www.thestandard.com/article/0,1902,26885,00.html?nl=mg EMI Plans Legal Music Downloads By Dow Jones The British label is developing software with a Californian company to let consumers "burn" their own music CDs both easily and legally. http://www.thestandard.com/article/0,1902,26888,00.html?nl=mg Sega and Sony to Link Consoles Via Internet By Reuters Sega's Dreamcast console will be able to connect with Sony's PlayStation 2 as collaboration between the former gaming rivals takes shape. http://www.thestandard.com/article/0,1902,26890,00.html?nl=mg Lawsuits Speak Louder Than Words By James Niccolai - IDG AT&T slaps Microsoft with a suit, accusing the software king of using AT&T-patented digital speech technology in some of its products. http://www.thestandard.com/article/0,1902,26883,00.html?nl=mg --------------------------------------------------------------------- MORE LINKS ~~~~~~~~~~ EMI deal opens door to legitimate music downloads http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3JIHFNKNC Napster Near Accord on Music Sales http://www.nytimes.com/2001/06/05/technology/05MUSI.html (Registration required.) Secure mobile phone offers public military-grade protection http://www.siliconvalley.com/docs/news/svfront/054988.htm E-Books Out of Print Already? http://www.wired.com/news/culture/0,1284,44277,00.html AT&T sues Microsoft over speech tech http://cbs.marketwatch.com/news/story.asp?guid=%7B3959002A%2DE3CC%2D44CA%2DA108%2D99F17F44F847%7D H-P Will Pay Pitney $400 Million To Settle Printer-Technology Suit http://interactive.wsj.com/articles/SB991658211352436219.htm (Paid subscription required.) Microsoft Takes Aim at AIM http://www.washingtonpost.com/wp-dyn/articles/A20585-2001Jun4.html Making the most of the mouse http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3ABIKGKNC High-tech with all the trimmings http://www.austin360.com/statesman/editions/today/business_1.html Scots launch chess doctorate to boost supercomputing http://www.zdnet.com/zdnn/stories/news/0,4586,5092112,00.html STAFF ~~~~~ Written by Deborah Asbrand (dasbrand@world.std.com), Michaela Cavallaro (mcavalla@maine.rr.com),Keith Dawson (dawson@world.std.com), Jen Muehlbauer (jen@englishmajor.com) and David Sims (davesims@sonic.net). Edited by Jimmy Guterman (guterman@vineyard.com). Copyedited by Jim Duffy (jduffy@thestandard.com). GET THE MAGAZINE ~~~~~~~~~~~~~~~~ 4 RISK-FREE issues at this URL: http://click.email-publisher.com/maaacmJaaP8QYbVAtCeb/ GET MORE NEWSLETTERS ~~~~~~~~~~~~~~~~~~~~ The Standard newsletters cover the media, stock market, e-commerce, music, law and more. To SUBSCRIBE to other newsletters, click here: http://click.email-publisher.com/maaacmJaaP8QZbVAtCeb/ To unsubscribe, click here: http://thestandard.email-publisher.com/u/?bUrKAM.bVAtCe ADVERTISING INFORMATION ~~~~~~~~~~~~~~~~~~~~~~~ For more information on advertising in The Standard Newsletters, contact: Erik VanderKolk (evanderkolk@thestandard.com) FEEDBACK AND PROBLEMS ~~~~~~~~~~~~~~~~~~~~~ Send letters to the editor to letters@thestandard.com. Please contact us with any problems that arise: http://www.thestandard.com/service customerservice@thestandard.com You can also contact us via phone or mail: Standard Media International, Customer Service 866-776-9890 (phone) Copyright 2001 Standard Media International