Big news earlier this week when Canwest Global Communications Corp announced initiatives to reduce their annualized operating costs by approximately $61 Million. The move translated into 560 layoffs - about five per cent of the company's workforce through voluntary buyouts, attrition and reductions. Canwest management pointed to the current economic environment as well as the structural challenges in the conventional television model as the reasons why.
Interestingly, CEO Leonard Asper stresses in the announcement that Canwest is still eager to transform into a multi-platform media company and build its audience using digital media.
"Having completed an assessment of our Canadian operations and, after careful consideration, we are implementing a number of initiatives that will provide savings that will allow us to better compete in the current economic environment, without compromising our core products and services,” said Leonard Asper, President and CEO, Canwest. “It will not impact our strategy to invest in growth media like digital online, mobile and specialty channels.”
I'm not sure why Asper felt the need to assure shareholders and employees that the operating cost reduction wouldn't impact their digital media strategy... until yesterday.
Word on Vancouver streets is that NowPublic is about to be acquired by Canwest. While a NowPublic acquisition may not seem like a significant transaction, keep in mind that Canwest's current market capitalization is a paltry $80 Million - down from $700 Million only one year ago. NowPublic raised $10 Million in venture capital in July of 2007.
This rumour may have legs. NowPublic Co-founder Len Brody has advised Canwest in the past.
Canwest is Canada's leading international media company. Representing a portfolio of world-class brands, the Company creates and distributes some... [more]
NowPublic is a participatory news network which mobilizes an army of reporters to cover the events that define our world. In twelve short months,... [more]
Aren't Len and Len related?
BTW, I really dont get where you are trying to go with the valuation comparisons between NP can Canwest; you can't compare today's market to anything in our lifetime
Seems like a natural fit - it's high time traditional media companies started moving forward with the times. Congrats to Len and crew if this is true!
This "word on the street" reporting seems completely phony, as if it were planted by someone trying to puff up the value and credibility of a company that needs to be unloaded fast before anyone realizes that it's worthless.
Perhaps sit back a moment and see if you can spot how ridiculous this story is.
Where is the revenue stream of NowPublic?
In fact, does the enterprise even have assests of any value?
Why would anyone invest in such an obvious dead end?
Canwest doesn't need anything that NowPublic has.
The staff? The computers? The office space?
Vancouverites may get stoned the odd time, but they're not stupid.
In other words, Rob, you've accepted these exaggerated claims without question.
How much is NowPublic worth today?
I suggest zero dollars.
You imply that CanWest is sinking while NP is attracting investors, but look at how you've obscured the time frame.
A year ago CanWest had $700 million and they now have $80 million.
A year and a half ago, NP "had" $10 million and they now have ... what?
Makes me wonder who you're working for.
@Allan - Don't shoot the messenger, I'm just reporting what I heard from two different sources.
Unfortunately I can't answer your questions. Revenue numbers? Valuation? How much money they have left?
Can you shed any light on these questions?
That's a great response, Rob. Thank
Some people think I'm trying to start a fight when I question things, but I'm not.
I just noticed that this post is way back in November, and yet you responded so quickly. Sign of a pro.
What got me started was getting an email from NP alerting me to a new user agreement.
That led me to one of the NP forums on their site which had a virtual re-posting of your story, dropped into an unrelated discussion for no apparent reason. And that led me to your post.
NP has been around for at least two years and still has no revenue stream.
They are only now about to find out if they can make any money from sharing content offered up by the public.
Why would anyone invest in a company that has yet to prove to itself or anyone that it can ever hope to sustain itself, let alone give a return on an investment.
In a day when every news outlet in North America and the world invite their audiences to submit content (to the point where police at crime scenes are starting to get irritated) why would anyone choose NowPublic?
The only assest the company has so far as I can see is someone on staff who knows how to code a page. Everything else is just an irrelevant social forum with a few self-made journalists working toward getting a real job. From home.
Only NP has the numbers tracking their readers and any fluctuations.
Only NP can explain how to stay in business without selling a product or service.
I suggest that NP itself has some pretty big questions to answer
You guys may be on to something. I received this today:
Hi, Michael Tippett here, co‐founder of NowPublic.
I am emailing you because we're changing the way some parts of the site work and wanted to help you understand what it means for you as a reader and contributor.
Since we started down this road three years ago, much has happened in the world of user‐generated news. As the recent news in Mumbai demonstrated, the field has evolved into one of central importance to both new and traditional media.
As the market has changed over time we've always tried to listen to your suggestions and improve the way stories are published and organized and the way we handle photos and videos. Over the coming weeks you will see a lot of our new thinking put into action.
One of the things we want to do is to offer you the opportunity to join us in monetizing your contributions in the future; to do this you'll need to make some choices about how you want your content used and how you want to work with us. We've made some changes to our terms and conditions so please take a look when you have a chance.
This is just the beginning of user‐generated news but the potential has never looked more promising. We're really excited about our new direction and we're glad to have you with us.
Best,
Michael
