Archive for May, 2008

Sunday, May 25th, 2008

The Days of Our (Young) Lives

The New York Times ran a fascinating article (like usual) about twentysomethings that are scraping by in Manhattan. It illustrated a lifestyle that is all too familiar with me, chronicling the meager paychecks, high rents, and superficial sacrifices that those of us make in our twenties as we pursue our dreams. Despite the geographical difference, I could relate very well to their plights. Moving to a metropolitan area with not much more than a few quarters in your pocket is not an easy task. Despite being a missed paycheck away from poverty (real government acknowledged poverty) I never regret my decision to move to Los Angeles. In fact, I relish the fact that I had (and still have) the courage to make the move across country with no job or contacts and succeed.

My affinity towards this article may stem from the strong emotional attachment I have to the subjects. I can relate to making a decision like, “Do I go to this movie? Or do I eat tomorrow?” Yes, this is an entirely true remark. Like Laura Werkheiser, if I want a new wardrobe, I don’t go shopping. I call up the warehouse, i.e. my parents home, and kindly ask/beg/persuade/bribe them for a shipment of clothing I’ve left behind. I thought I was poor in college and when I graduated things would be better. I had no idea I was living an “affluent” lifestyle back in college. How the times have changed.

I am fortunate enough to live with my cousin and her husband, who allow me to eat some of their groceries. Otherwise I’m sure I’d be eating a lot more $.99 Clif Bars than I do (I already eat them for lunch, and that’s it). If I want to be social and eat/drink with some friends and co-workers, I order the soup or the salad. That’s OR, not soup AND salad. Oh no, that would be a privileged life of the bourgeoisie to afford both soup and salad. In a month’s time, when I move out to my own place, I can only imagine what I’ll start to live off of. Actually I know it will be Ramen Noodles. Maybe if I get tired of Ramen (which I will) I’ll eat the $.69 Cuban black beans from Trader Joes for dinner. The things I get to look forward to.

Finding my own apartment was a journey in itself. I primarily used Craigslist (a lot of whackos on there) to find a cheap apartment. My only criterion was that it be dirt cheap. So, I have agreed to move in with three complete strange men. Will it be a Chandler and Joey experience (that’s a reference from the TV show Friends)? Probably not, but hopefully it won’t be a debacle that ends in my death.

One thing that New Yawkers don’t have to worry about that Los Angeleans do is a car. We have them, they don’t. It’s an added expense and looming burden. Yes, paying for gas is a great strain. I often times have to choose fuel for the car or fuel for myself. However, it’s the fear of my car breaking/dying during my commute that paralyzes me. Busted Johnson rod that will cost me $400? Do I have any choice but to Visa it up? Nope, otherwise I can’t get to work. I’m not a religious man, but every time I get in my car and drive to work I say a little prayer.

Why do we do it? Why do we put ourselves through this sufferage? Not every twentysomething goes through this (many will argue they do, but not being able to afford the new iPhone is not the same). Why do we leave our homes, our families and friends, our comfort zone for this life? It’s simple, the dream. The dream of a prosperous life, not just the comfortable life. The dream of attaining your most far fetched goals. It’s what drives us twentysomethings, to endure this life of destitution. It’s what pushes us harder, allows us to tolerate our wages and living conditions. The idea that one day, our hard work will pay off, and we will have accomplished everything we dreamed of.

Cara Buckley sums everything up quite nicely at the end of her story:

Many young people wonder just how long they will be willing or able to pay their dues to stay in New York until that new job, that big break or that coveted raise comes along. Mr. [Noah] Driscoll tries to constantly remind himself that he “won’t be eating scraps” forever.

Mr. [Peter] Naddeo, who has his own band, Archipelago, and plays in several others, said, “The whole plan is that something good will come along eventually, like something will just come my way.” One of the bands recently earned $180 at a gig — not a bad haul, except that 13 musicians were playing.

“I mean, New York’s just the place for that type of thing to happen. And I’m hoping it will soon,” Mr. Naddeo said. “I’ll be rich and famous and this is going to be hilarious.”

I agree, I hope one day I will be able to look back at my life and chuckle. To reminisce about this period of transition and growth, knowing it all paid off. But today’s reality is I’m not eating breakfast or lunch because I went to a movie the other day.

Tuesday, May 20th, 2008

Updates

Micosoft/Yahoo Update May 20, 2008

The deadline to nominate alternate directors for the Yahoo board has recently passed. Microsoft has not pursued the proxy fight path. Rather they are looking at a less aggressive option, to collaborate with Yahoo on internet advertising. However, uber capitalist Carl C. Icahn, has made it public that he will induce a proxy fight in an effort to revive the merger. Just after the news of the failed first attempt, Icahn bought approximately 50 million shares of Yahoo. Microsoft has yet to publicly comment if they will engage in talks with Yahoo if Mr. Icahn’s proxy fight is successful. Icahn nominated a full slate of impressive alternate directors by the May 15th deadline. They are as follows: Lucian A. Bebchuk, a law professor at Harvard; Frank J. Biondi Jr., a former chief executive of Viacom and Universal Studios; Mark Cuban, the owner of the Dallas Mavericks basketball team and a founder of Broadcast.com; Keith A. Meister, an executive at Icahn Enterprises; Brian S. Posner, the chief executive of the equity firm ClearBridge Advisors; and Robert K. Shaye, co-chairman and co-chief executive at New Line Cinema. Carl Icahn won’t let the idea of a Microsoft/Yahoo die in the near future. I will anxiously be awaiting news as it becomes available.

I definitely did not see a third party coming into play. I thought that Microsoft was going to do the proxy fight solo. Maybe Steven Ballmer is the puppeteer behind the scenes but the Carl Icahn twist had made this soap opera even more fantastic. I mentioned that I wanted to see a proxy fight, but this is much better than I could have expected. Hold on to your stocks ladies and gentlemen, it’s going to be a wild and crazy ride.

Personal Update

I will be working part time as an intern at Sideways Media, learning the ropes of web marketing for up and coming bands. My schedule is loaded to the max, but I wouldn’t have it any other way. Lastly, I’m planning on moving into an apartment other than my cousin’s soon. I will then officially be THAT friend that lives in California that you can visit.

Tuesday, May 13th, 2008

On a lighter note…

This clip made me laugh out loud while I was alone.

Clive Owen on “Extras”

Monday, May 12th, 2008

Two disasters, two countries, two relief efforts

First Myanmar was struck by a deadly cyclone. Before the sad images of neglected Burmese left our memory (which is a very short window for Americans) China was hit with a horrific earthquake. These two tragedies have combined for over 40,000 deaths, with thousands more expected. As I sit here, thousands of miles away, reading media reports about the disasters, it’s difficult not to notice the stark difference in each government’s response to their country’s plight.

It’s been well documented about the problems the Burmese people have endured of late. The military junta has been stifling and abusing the Burmese citizens for far too long. Their actions in the wake of the May 3rd cyclone have been absolutely appalling. The junta continues to prevent proper amounts of aid from foreign sources. UN Secretary General Ban Kai-moon was quoted in the New York Times stating, “This is not about politics; it is about saving people’s lives. There is absolutely no more time to lose.” The Associated Press reported that while foreign media feed images of the carnage and wreckage of the cyclone, the Myanmar junta broadcasts video of how well the survivors are being treated. This is just inhumane treatment and a travesty at all levels. I hope, even pray, that the good people of Myanmar get the help they so desperately need and deserve. [Side note: President Bush said that the slow flow of aid suggested that the generals in charge were either “isolated or callous.” He must have forgotten Hurricane Katrina]

On the flip side, China’s government has been openly asking for foreign aid. Top officials from the Sichuan province have gone on the record asking for food, supplies, satellite communication, and medical assistance. Reports indicate a sense of urgency (as there should be) in getting the Chinese citizens the help they need. The BBC’s Quentin Somerville says this is one of the most open and speedy responses to an emergency he has ever seen from Chinese state media. Say what you will about the Chinese government in general, but their actions have been more than commendable in this time of crisis.

While I haven’t traveled to either China or Myanmar, I have traveled to regions of Southeast Asia that have striking similarities to the areas that have been hit by these natural disasters. The people of these regions lead such simple lives. There is no cable TV, or savings accounts. They only possess the necessities to get them by from day to day. I’m sure that even now, many of them have no idea what happened to them. CNN reports on the children that are left to survive, clueless as to why their parents are gone. I can’t possibly articulate my empathy for both the survivors and victims of these two disasters.

Having just moved to a region in the US where an earthquake is a real possibility, I can’t help but have images of a disaster ridden LA. I wonder what the response would be if LA is devastated by an earthquake and how the people will react. First of all, will I even be alive? What will be the response time be for aid? Will martial law prevail? All very chilling thoughts, let’s hope that I won’t have to answer these questions.

Click here to assist in the Burmese disaster relief.

Click here to donate to the Red Cross for both the Burmese and Chinese relief efforts.

(The New York Times and the BBC contributed to this entry)

Monday, May 5th, 2008

My Soap Opera

If you have just returned from Mars, let me update you. Microsoft withdrew their offer of $33 per share ($47.5 Billion) for Yahoo. Ever since rumors of this deal first surfaced, I’ve been enamored with any news related to the topic. Even after the news of Microsoft’s withdrawn offer, I still believe there is much more drama to ensue. Who needs Days of Our Lives when I can open up the business section of any periodical?

The Facts (in a tiny nutshell)

- Microsoft made their initial offer for Yahoo in January 31st (public Feb. 1) at $31 a share. Yahoo was selling for $19.18 at the time (62% premium)
- Yahoo rejected the bid saying Microsoft undervalued Yahoo
- Microsoft increased their bid to $33 ($2.3 billion price increase)
- Yahoo rejected offer again, demanding no less than $37 a share
- Microsoft withdrew offer

Why Microsoft wanted Yahoo
Microsoft has long dominated the personal computer era with their cutting edge technology, which has translated into a powerful business for founder, Mr. Bill Gates. However, Microsoft has fallen behind (drastically) to competitor Google as the computer market moves from desk top products to internet software. In its efforts to increase its market share of internet searches and increase their online presence, Microsoft attempted to buy out the one competitor who could help them close the gap in one fell swoop. By buying Yahoo, Microsoft’s market share would be a lucrative 31% but still a far cry from Google’s 58% strangle hold on the market. The buyout would also invigorate a corporate giant that was beginning to plateau and resemble another computer giant that tumbled from the top…IBM.

Why Yahoo resisted Microsoft
Yahoo was never looking to sell. In order for Microsoft to make the deal without a proxy fight they had to wow Yahoo’s board of directors with “an offer they couldn’t refuse.” Yahoo rebuffed Microsoft’s initial offer stating it was being undervalued. After (alleged) negotiations Microsoft increased their bid to $33 a share for a grand total of $47.5 billion. Yahoo again stated that this was too low a price and that their stockholders would not agree to anything less than $37 a share (this has been refuted by some reports, which claim some shareholders would have sold at $34-35). Yahoo has claimed they were open to a sale and are pursuing other options but the bottom line was their own company valuation was much higher than Microsoft’s. [According to the NY Times, Yahoo was also weary of federal regulators blocking the deal and wanted a higher offer to “hedge against that risk.”]

Microsoft’s options
Microsoft had the option and (conceivably) still does have the option of a hostile proxy fight. As Marc Andreessen outlines, unlike many public companies, Yahoo does not have a staggered board of directors election. Therefore, in a single year all the seats on their board can turnover. If Microsoft chose to do so, they could nominate their own qualified directors (which they allegedly have been in talks with former CEOs, COOs, and CFOs about the posts). If Yahoo stockholders favor Microsoft’s deal, they would be inclined to vote in these alternate directors and approve the deal. It seems as though Steven A. Ballmer has for the time being declined this option due to the repercussions it may have (i.e. Yahoo making undesirable business decisions like partnering with Google).

The Aftermath and Future
The Monday after Microsoft’s withdrawn offer was sure to affect Yahoo’s stock; it was not a question of “if” but rather how much? At the end of the day, the answer was 15%, as Yahoo closed at $24.37. Now the question is how much farther will the Yahoo slide? How will Jerry Yang restore stockholder confidence and back up his valuation of company? Will he buy back the stock like some investors are calling for? Is that even feasible since there is no way Yahoo can afford to buy back shares at the $37 a share they have valued themselves at? Does Yahoo partner with Google in a limited online advertising partnership or will a Yahoo/AOL merger heat up? Lastly, does Yahoo’s stock drop so low that Microsoft comes back into play (some think they’re not really out of it, using the withdrawn offer as a negotiating ploy) and buy up Yahoo at less than the initial $31 a share? What will come of Yahoo’s newly announced May 15th deadline for director nominations for the July 3rd shareholder meeting? So many questions and so few answers! It’s like a sitcom’s season ending cliffhanger.

My Two Cents
As aforementioned, I am absolutely intrigued by this situation with these corporate tech giants. It’s hard for me to pin point my reasons since I have no financial ties to either company; perhaps it’s just the consumer in me who uses Microsoft/Google/Yahoo software and applications? As recent history indicates, large mergers are not always successful (see TimeWarner/AOL). Regardless of Yahoo’s current stock price, they are a major player in the online game and any merger involving them will have a massive impact in the business sector and our individual lives. I am giddy with excitement to see what Yahoo does, whether it’s a merger, partnership, or proxy fight. However, I personally feel that ultimately Steven A. Ballmer will have the last say and at some point Microsoft will obtain Yahoo (for the record, I’d like to see a proxy fight). But what do I know? I’m just a lonely soul typing on Microsoft Word, looking up articles on Google, and listening to music on Yahoo.

Maybe the real reason why this merger didn’t go through was because Jerry Yang couldn’t stand the sight of this guy running his baby:

*The New York Times, Los Angeles Times, Wall Street Journal, Marc Andreessen’s blog and assorted AP articles contributed to this entry (I know this isn’t Chicago style or APA citing, but it’s a blog and I’m lazy)

Friday, May 2nd, 2008

For my Dad

This is for my basic cableless father and his admiration for James Howard Kunstler.