Chicago is My Home

13
Jun

Tribune Co. Releases Financial Books to Nine Potential Billionaire Buyers

Author: Adam Fendelman, Category: Business

CHICAGO – The Tribune Company in Chicago sent out financial books on Wrigley Field this week to nine potential, pre-approved buyers.

While the Tribune Co. is trying to keep details of the process confidential, the company did reveal that two books went out. One contains information on the Chicago Cubs, Wrigley Field and Comcast SportsNet while the other concerns only Wrigley, which the Tribune Co. is hoping to sell separately.

According to sports economists, the interest of several billionaires including John Canning (the chairman of private equity firm Madison Dearborn Partner), Dallas Mavericks owner Mark Cuban and the family of TD Ameritrade founder Joe Ricketts will possibly cause the sale to exceed the $660 million record-setting sale of the Boston Red Sox in 2002.

In addition to Wrigley, the package for the Cubs includes the Tribune’s 25 percent stake in the Comcast sports channel. This is creating buzz that the total sale could reach $1 billion. Bids from buyers are expected by next month.

By Jenna Zizzo

12
Jun

Motorola in Schaumburg, Ill. Not Smart Enough For Today’s Smart Phones

Author: Adam Fendelman, Category: Technology

SCHAUMBURG, Ill. – Motorola in Schaumburg, Ill. is struggling to keep up in the world of smart phones. With Apple’s latest iPhone 3G hitting the market in July 2008, it seems as if Motorola manufacturers have been left in the dust.

The only smart phone Motorola produces – the Q – was introduced in 2006. It’s sorely outdated when it comes to today’s global technology competitors.

In March 2008, Motorola announced the launch of a lime-green version of the Q to be sold at U.S. Cellular and Alltel stores in hopes of appealing to younger customers and women. However, Motorola’s competitors feature more sophisticated smart phones with touchscreens and slide-out keyboard designs.

Motorola’s smart phone plans somewhat imitate what its competitors have already successfully accomplished.

Motorola was successful, though, in launching its Q phone before Apple’s iPhone. While the software of the Windows Mobile-based Q phone and its interface have been improved since its launch, the basic shape and style is old and is reminiscent of the BlackBerry Curve.

By Jenna Zizzo

12
Jun

Chicago City Council OKs Grant Park as New Home For Children’s Museum

Author: Adam Fendelman, Category: Business

CHICAGO – In a decisive 33-to-16 vote on Wednesday, the Chicago City Council approved the proposal by the Chicago Children’s Museum to relocate to a new facility to be constructed underneath Grant Park.

The $100 million proposal, which is backed by Chicago mayor Richard Daley, has garnered citywide attention and drawn hundreds to public meetings. Opponents of the Grant Park site argue the new museum would damage the area’s natural beauty as well as violate ordinances prohibiting construction in the lakefront park.

Museum and city officials who back the proposal say Grant Park is the perfect location for the family oriented museum and the subground structure will have little impact on the appeal of the park. Efforts to raise money have already generated $40 million, according to Chicago Children’s Museum CEO Jennifer Farrington, and the museum intends to raise another $60 million.

Despite the strong support from city council members, Wednesday’s vote does not promise an end to the drama. Museum and city officials anticipate that opponents will file lawsuits in order to continue to fight the project.

By Megan O’Neil

12
Jun

United Follows American’s Example of Charging $15 For First Checked Bag

Author: Adam Fendelman, Category: Travel

CHICAGO – Are you looking forward to booking a summer getaway? Plan on packing light.
UAL’s United said on Wednesday the airline will begin charging customers $15 each way for the first checked bag and $25 each way for the second checked bag. The new policy is effective for tickets purchased on or after June 13, 2008.

United’s announcement follows a similar move by competitor American Airlines, which announced in May 2008 that it will implement the same $15 baggage fee.

Struggling with record-high fuel prices, many airlines are installing a variety of strategies to increase revenue and cut operational costs. Other such measures have included grounding inefficient planes and reducing staff. In addition, the airline industry (and particularly United) has been abuzz with speculation of possible cost-saving alliances or mergers.

“With record-breaking fuel prices, we must pursue new revenue opportunities while continuing to offer competitive fares by tailoring our products and services around what our customers value most and are willing to pay for,” said United COO John Tague in a Wednesday statement.

By Megan O’Neil

12
Jun

Motorola Plans to Restructure Company’s Research, Development Teams

Author: Adam Fendelman, Category: Technology

SCHAUMBURG, Ill. – Motorola, which has struggled with executive turnover and operational organization, said on Wednesday it will restructure its research and development groups to better align engineers with designated businesses.

Starting on July 1, 2008, approximately 180 research and development employees will be reassigned to the home and networks mobility, government and public safety and mobile devices businesses and will report directly to their respective executives, Motorola spokesperson Maya Komadina said in an interview with MidwestBusiness.com.

A team of 300 employees will remain with the central Applied Research & Technology Center and focus on long-term technology development. Komadina says the restructuring will include eliminating certain projects and laying off roughly 150 Motorola employees worldwide.

“As we make this transition, we have the opportunity to realize efficiencies by streamlining the number of projects and prioritizing those that deliver the most value to our individual businesses and to Motorola overall,” Komadina said.

Komadina says eligible employees may be given the opportunity to apply for other positions within Motorola.

By Megan O’Neil

10
Jun

Motorola Named in New Lawsuit Alleging Fraud, Theft of Intellectual Property

Author: Adam Fendelman, Category: Technology

SCHAUMBURG, Ill. – Wireless broadband company Memorylink filed a lawsuit on Monday against former business partner Motorola.

The lawsuit accused Schaumburg, Ill.-based Motorola of profiting from stolen video technology. Memorylink first connected with Motorola in 1997 and worked with the company to develop wireless video technology until 2003.

The lawsuit alleges that Motorola, which is named in the patent for the contested technology, has profited from Memorylink’s inventions but has not paid the Neenah, Wis.-based company any royalties.

“We tried our best to settle this matter amicably with Motorola to the best interests of both companies, but to no avail,” said Memorylink CEO Jon Hard in a Monday statement. “This left Memorylink with no choice but to file the claim against Motorola since we have a fiduciary obligation to our shareholders to get value from what we invented.”

Memorylink is seeking to regain absolute patent rights for the invention and to be paid for the profits Motorola has reaped over the years from the widely used technology. A Motorola spokesperson said on Monday the company has acted in good faith with Memorylink and has remained in compliance with the written agreements between the two companies.

By Megan O’Neil

09
Jun

Bank of America to Raise ATM Fees For Non-Customers to $3 on June 23, 2008

Author: Adam Fendelman, Category: Business

CHICAGO – In need of an ATM? Take note: Bank of America will begin charging non-customers a $3 fee starting on June 23, 2008 for the use of its automatic teller machines in the Chicago area.

Bank of America raised its fee from $2 to $3 nationally in Aug. 2007. It held the charge at $2 in the Chicago area, however, as it finalized its buyout of Chicago-based LaSalle Bank, according to a recent report by Crain’s Chicago Business. Stickers will be placed on ATMs to notify consumers of the increased charge.

Bank of America completed the rebranding of its newly acquired locations in May 2007. The company took down LaSalle’s green and yellow logos and replaced them with its own red and blue.

JP Morgan Chase & Co. also recently raised its non-customer ATM fee to $3. This means Chicago-area consumers will now face higher charges from the region’s two largest retail banks.

By Megan O’Neil

09
Jun

New Publication BusinessWeek Chicago Scrapped Due to Poor Ad Revenue

Author: Adam Fendelman, Category: Business

CHICAGO – BusinessWeek Chicago, which was BusinessWeek’s guinea pig for a city-focused supplemental magazine, has published its seventh and final edition.

The magazine will be discontinued following its June 2008 issue due to poor ad sales, according to recent reports by the Chicago Tribune and Crain’s Chicago Business.

BusinessWeek Chicago was launched in Nov. 2007 as a locally focused business publication. The magazine was intended as a supplement to the flagship BusinessWeek publication. It was to serve as a model for similar publications to be introduced in various metropolitan areas across the U.S.

One editorial staff member and one salesperson were fired in connection to the elimination of the publication. BusinessWeek will continue to operate its Chicago bureau.

By Megan O’Neil

09
Jun

Tribune Co. Newspapers, Newsroom Will Be Reduced to Cut Operating Costs

Author: Adam Fendelman, Category: Business

CHICAGO – Journalists and editors at various Tribune Co. publications are once again bracing themselves for cuts that will purge already depleted newspaper staffs.

During a recent conference call with bondholders, Tribune Co. Chairman Sam Zell and COO Randy Michaels said the company’s newspapers (including its flagship Chicago Tribune) will reduce the number of pages printed and cut staff in an effort to save money.

Michaels specifically addressed the issue of productivity and said the average journalist at Tribune Co.’s largest publication (the Los Angeles Times) produces substantially less content than journalists at other Tribune Co. publications.

Michaels said the company can eliminate less-productive employees without losing much content. In March 2008, the Tribune Co. laid off 400 editorial staff members at its 11 daily papers. The pending round of layoffs will be handled newspaper by newspaper, according to Michaels.

Michaels’ comments stirred concern in newsrooms across the country as staffers are worried about job security and editorial quality. The news was particularly grim for the Los Angeles Times, which is a newspaper that has seen a turbulent march of editors come and go since it was bought by the Tribune Co. in 2000.

Michaels said the reduction of pages will begin with the Orlando Sentinel on June 22, 2008. By Sept. 2008, Tribune Co. newspapers will have shrunk by 12.5 percent. Michaels said the company will strive for a 50-50 ratio between editorial content and advertising.

By Megan O’Neil

05
Jun

NAVTEQ Acquisition Still on Course as Deal Raises No Regulator Objection

Author: Adam Fendelman, Category: Business

CHICAGO – Chicago digital map pioneer and navigation equipment supplier NAVTEQ is still on track to be acquired by Finish cell-phone company Nokia, according to a Wednesday report by Reuters. The deal, which was announced in Oct. 2007, requires the approval of multiple regulatory bodies.

It already has the green light from the United States and also appears to have to approval of the European Union. To oppose the deal, the European Union must issue a formal statement of objection. The window of time for the statement has already closed.

Nokia has been making strategic moves to expand the company’s Internet services. The $8.1 billion acquisition of Chicago-based NAVTEQ would give Nokia a leg up in the navigation business.

By Megan O’Neil