Fred Harteis Business News – Disney finalizes deal with Comcast

Fred Harteis Business News - Walt Disney Co. and Comcast Corp said Tuesday they have reached a long-term, comprehensive distribution agreement that places Disney programming and services on Comcast's cable TV menu.

As part of the pact, Comcast acquired Disney's 39.5 percent ownership stake in E! Networks for $1.23 billion. Disney agreed to add free ABC prime time programs to Comcast's On Demand service.

Comcast was expected to announce a deal Tuesday, which would make ABC shows such as "Lost," "Desperate Housewives" and "Nightline" among those that would be available for free on the service, which would also include two new 2007 fall programs from the television network.

The deal is part of a wider $1 billion agreement that grants Comcast access to Disney entertainment properties including the ABC network and cable channels such as ESPN, Toon Disney and SoapNet, according to a person familiar with the talks

The video-on-demand service will also get films from Disney's major studios, including Walt Disney Pictures, Miramax Films and Touchstone Pictures. Comcast will charge $3.99 for new Disney movies and $2.99 for older titles.

Some films will be available as soon as 15 days after the DVDs are released for sale at retail stores.

The agreement, which after comes nearly three years of negotiations, will also give Comcast the right to use Disney promotional video on its Comcast.net Web site. The cable operator plans to expand the site in coming months.

In addition, Payless ShoeSource Inc. said on Tuesday it formed a multiyear deal with Walt Disney Co. to create a line of footwear featuring Disney and Disney Pixar characters.

Through the direct-to-retail licensing agreement, Payless will source, market and sell the line through its almost 4,600 store chain and on Payless.com.

Payless has sold Disney-themed footwear and accessories for several years, but this agreement means the companies will work more closely on shoe design, creative direction and retail marketing.

Source: Cnn.com

About Fred Harteis:  Fred Harteis leads Harteis International.   Fred Harteis has a background in agriculture and has created many successful business ventures.

Fred Harteis  Business News - Yahoo exec calls for company-wide 'shake-up'

Fred Harteis Business News - Yahoo Inc. needs a dramatic organizational shake-up and cuts in its work force of up to 20 percent, according to an internal memo written last month by Senior Vice President Brad Garlinghouse.

Garlinghouse, a second-tier Yahoo executive who has taken increasing powerful roles in the company since joining 3 1/2 years ago, argues that Yahoo suffers from a lack of consistent leadership, business focus and a "single cohesive strategy."

"We lack a focused, cohesive vision for our company," Garlinghouse writes. "We want to do everything and be everything -- to everyone."

The document was published in the Saturday edition of the Wall Street Journal. A Yahoo spokesman confirmed the authenticity of the memo, but declined to comment directly on details contained in the memo or in the newspaper story.

The Journal story also describes rumors that Chief Operating Officer Dan Rosensweig and Chief Financial Officer Sue Decker could be elevated to become co-presidents, in preparation for the retirement of Chairman and Chief Executive Terry Semel, age 64, who joined Yahoo five years ago.

The call for restructuring follows a series of embarrassments that have caused Yahoo shares to lose 31.5 percent of their value so far this year. It is struggling with a slowdown in parts of its advertising business while racing to keep pace with far-faster growing rival Google Inc.

The memo -- known as "The Peanut Butter Manifesto" because it argues that Yahoo's investment strategy is like spreading peanut butter too thinly on bread -- argues for a "radical reorganization" of the 12-year-old Internet media giant.

"I hate peanut butter," Garlinghouse writes.

The Yahoo executive said the company should cut its work force by 15 percent to 20 percent as part of a plan to reshape the current business unit structure and eliminate the bureaucratic duplication of functions that exist across Yahoo.

Source: Cnn.com

About Fred Harteis:  Fred Harteis leads Harteis International.  Fred Harteis has a background in agriculture and has created many successful business ventures.