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He's Back: Bob Pittman Named CEO of Clear Channel

Kara Swisher — Sun, 02 Oct 2011 21:00:08 +0000

Longtime media and Internet exec Bob Pittman has been named CEO of radio broadcast and outdoor advertising giant Clear Channel, the company announced today.

Pittman — who has been chairman of Clear Channel’s media and entertainment platforms after making an investment in the company less than a year ago — will join the board of directors of CC Media Holdings, Clear Channel Communications and Clear Channel Outdoor Holdings, as executive chairman.

Clear Channel’s holdings include a huge parcel of radio stations across the U.S., along with a number of digital properties and a big global outdoor advertising business.

Pittman — the former MTV wunderkind who started in radio at 15 years old as an announcer at a station in his native Mississippi — has not been in a top job like this one since he resigned from the then-AOL Time Warner as its COO in the midst of the botched merger mishegas almost a decade ago.

Since then, Pittman has been doing a range of things, including making canny investments in a variety of Internet start-ups such as Zynga and DailyCandy, and even in a high-end tequila company via the Pilot Group, a New York-based private investment firm.

He made his own investment in Clear Channel last year and has since upped his involvement, which resulted in the latest move to CEO.

“I swore I would never work like this again, but when something gets me this stimulated, I knew I wanted to get into it again,” said Pittman, in an interview with me yesterday. “I think this company has everything it needs to be a great media company in the new media landscape.”

That will include a range of new initiatives, including recent partnerships with Facebook and more.

“We want to move like an entrepreneur and have the assets of a big media company,” said Pittman. “I am an addict for this challenge.”

Here’s the official press release from Clear Channel:

BOB PITTMAN NAMED CEO OF CC MEDIA HOLDINGS

Appointment Underscores Clear Channel’s Evolution to a Fully Realized, Integrated Media, Digital and Entertainment Enterprise

Media Pioneer Will Oversee the Company’s Global Media Properties, including Broadcast, Digital and Mobile, Syndication, Media Representation and Outdoor

New York, NY — October 2, 2011 — CC Media Holdings, Inc. (OTCBB: CCMO), a leading global media, digital and entertainment company, announced today that Bob Pittman will become its Chief Executive Officer. Pittman joined Clear Channel in November 2010 as an investor and the company’s Chairman of Media and Entertainment Platforms. Pittman will join the Board of Directors of CC Media Holdings, Inc. and Clear Channel Communications, Inc.; in addition, he will join the Board of Directors of Clear Channel Outdoor Holdings, Inc., as its Executive Chairman. These appointments are effective immediately.

In his new role, Pittman will oversee the company’s businesses, which include:

Clear Channel Radio, which serves 150 cities through 850 owned radio stations and an additional 100 cities and 4,000 stations through its syndicated Premier Radio Networks products. Clear Channel Radio also includes:

* Clear Channel Digital, which develops and operates iHeartRadio, the free, industry-leading digitalradio product that combines access to all of Clear Channel’s live broadcast and digital-only radio stations as well as user-created Custom Stations. Clear Channel Digital also develops the companion digital products for each radio station brand, including strong social components;

* Media Services for the radio, media, digital, mobile and music industries, including Total Traffic Network, a groundbreaking programming and technology service delivering real-time traffic data to vehicles via in-car and portable navigation systems, broadcast media, wireless and Internet-based services; The Katz Media Group, the leading media representation firm in the US for radio and television stations; and RCS, which provides scheduling and broadcast software for radio, internet and television station in addition to research studies that aid the media and music businesses.

Clear Channel Outdoor Holdings, which is one of the world’s largest outdoor advertising companies with close to one million displays in over 40 countries across five continents. Clear Channel Outdoor includes:

* Americas Outdoor Advertising, which owns or operates nearly 190,000 displays across the United States, Canada and Latin America including operations in 49 of the 50 largest markets in the United States. The Americas businessconsist of various types of displays that include billboards; street furniture; transit displays; the Clear Channel Airports division, which is the premier innovator of contemporary display concepts and currently operates more than 260 airport programs across the globe; mall displays; wallscapes; and spectaculars including Spectacolor, a market leader in spectacular sign displays, with displays located in New York’s Times Square. The Company has been a leader in the development and operation of digital displays and networks across many of its U.S. markets.

* International Outdoor Advertising operates across Asia, Australia and Europe with displays across nearly 30 countries. The International business consists of street furniture and transit displays, billboards, mall displays, wallscapes and spectaculars. Clear Channel International’s street furniture division operates over 3,500 municipal advertising contracts worldwide.

Pittman will also remain a member of Pilot Group, LLC, a New York-based private investment firm.

“On behalf of the Board of Directors, I want to express how delighted I am that Bob has accepted this position,” said Mark Mays, Chairman of Clear Channel Media Holdings. “He has been an invaluable contributor to Clear Channel Radio since last November, and he is the perfect person to take Clear Channel to the next level. I look forward to his leadership of our company.”

“Bob Pittman brings a long history as a brilliant innovator and brand builder — from his days as a very successful radio programmer, creator of MTV and CEO of MTV Networks to his work helping to drive the phenomenal growth of AOL and his successful investments in other digital, media and technology companies. He has already generated a renewed sense of confidence and direction not only at Clear Channel, but across the entire radio and media landscape,” said Scott Sperling, Co-President of THL Partners.

“I’m thrilled we were able recruit Bob into the CEO role at Clear Channel. He is the perfect fit to lead this incredibly powerful media platform. He embraces creativity, and has given employees the motivation and freedom to innovate, take risks and succeed,” said John Connaughton, Managing Director of Bain Capital. “He thinks big, is not afraid of change and is intensely focused on driving new businesses, expanding our creative talent and maximizing the full value of Clear Channel’s extraordinary assets, ideas and people.”

Pittman’s appointment comes on the heels of several industry-leading achievements by Clear Channel Radio this past year. In March, the company acquired digital music company Thumbplay for its state-of-the-art technologies as well as its technology and product teams. Last week, Clear Channel hosted the iHeartRadio Music Festival, the largest live concert event in radio history, which marked the official launch of the New iHeartRadio, which combines more than 850 of the nation’s most popular live broadcast and digital-only radio stations from 150 cities with user-created Custom Stations. iHeartRadio was one of the few highlighted new products at Facebook’s f8 conference on September 22nd, where it was recognized for its technology and cutting-edge social integration.

Additionally, Clear Channel has demonstrated its unique national promotional capabilities through significant relationships with record labels and social media leaders, and forging relationships with partners like Microsoft, Facebook, Zynga, Toyota and HP that reach further and deeper than advertising.

“Over the past year, I’ve had the unique opportunity to look at the Clear Channel people and assets up close and have found myself increasingly drawn to the company, to the point where the chance to get even more deeply involved has just become irresistible,” said Pittman. “I know first-hand that we have great people and the assets that allow them to do great things. We are so much more than just transmitters and broadcast towers — we leverage our local brands, personalities, strategic relationships and programming expertise to create unique experiences that forge real connections with consumers across our multiple platforms.”

Pittman continued, “I look forward to continuing to work closely with John Hogan and the Clear Channel Radio team to grow our company as we strengthen relationships with our consumers, advertisers, artists, labels and partners, nationally and locally — and I’m excited by the opportunity to work with Ron Cooper and William Eccleshare to help them make the most of our outdoor advertising potential by tapping into Clear Channel’s assets as a whole. I believe we have the technologies, the physical infrastructure, the content and, most importantly, the people to market to consumers better than any other media company in the world.”

SoftBank Keeps Up Its Game With MocoSpace Funding

Kara Swisher — Thu, 23 Sep 2010 13:00:31 +0000

SoftBank Capital forked over $3.5 million in funding to mobile entertainment destination MocoSpace.

SoftBank recently invested $150 million in online gaming powerhouse Zynga and apparently wanted to make a play in mobile browser-based social gaming.

SoftBank joins previous MocoSpace funders, including General Catalyst Partners, Pilot Group and angel investor Michael Dearing, who put in $3 million in funding in 2007

The Boston-based company, which is apparently profitable, said the funding will be used to expand MocoSpace into gaming platforms.

Here’s the official press release:

MocoSpace Gets $3.5M In Strategic Funding from SoftBank Capital to Expand with Mobile Browser-Based Social Games

Company already profitable, adds strategic capital to build out groundbreaking social games platform

Boston–Sept 23, 2010–MocoSpace, the largest social entertainment destination on the mobile web, today announced a $3.5 million round of strategic funding from SoftBank Capital. MocoSpace will use the funds to expand its mobile browser-based social gaming offerings and management team. Previous investors in MocoSpace include General Catalyst, Pilot Group and prominent angel investor Michael Dearing.

MocoSpace is the largest entertainment destination on the mobile Internet, with over 14 million users and three billion page views per month. The company, which is already profitable, plans to use this round of funding for the development of its MocoSpace Games platform. The platform will provide game developers with a robust environment and mobile web reach via smartphone browsers, as well as access to the MocoSpace audience–which already plays one million games on the site per month. MocoSpace will be launching its own browser-based mobile social game, and is currently developing partnerships with mobile web game developers to provide a wide range of game titles on its platform.

Vikrant Gandhi of Frost & Sullivan has followed MocoSpace’s growth over the years, and describes the company’s success: “MocoSpace has demonstrated a rare ability to build a large mobile internet brand and generate profits while appealing to a broad base of consumers. The mobile browser represents the next frontier of social games, and companies like MocoSpace have a great opportunity to lead this nascent market.”

As part of the investment, SoftBank Capital’s managing partner, Ron Fisher, is joining the company’s Board of Directors. As founder of SoftBank Capital, Fisher has over 30 years of experience working with high growth and turnaround technology companies, and serves as a member of the board of directors of SoftBank Corp., Japan, as well as on the boards of several public and private companies, including Desktone, E*Trade Group, GSI Commerce, FooMojo, LiteScape Technologies and Nellymoser, Inc.

“MocoSpace is uniquely positioned for massive growth at the crossroads of powerful trends in mobile, gaming and social, as well as appealing to one of the fastest-growing segments of the U.S. population, the Hispanic market,” said Fisher. “Softbank is excited to be an investor. MocoSpace has done a great job building an industry leading, profitable business, and we’re excited to help the company broaden its entertainment offerings and innovate in the social games space.”

“The chance to work with Ron and the Softbank team was a no-brainer for us. They have a tremendous amount of expertise both here and abroad in all the key parts of our business,” says MocoSpace CEO and co-founder Justin Siegel. “I look forward to working with them in the coming years as we continue to expand our business.”

How to Win at Farmville: Bob Pittman's Pilot Group Sells Zynga Shares

Peter Kafka — Fri, 25 Jun 2010 18:11:58 +0000

Zynga generates most of its revenue selling virtual goods for hit Facebook games like Farmville. And that has turned into real money for at least one of its investors.

Bob Pittman’s Pilot Group, an early backer of Mark Pincus’s company, has sold the majority of its Zynga shares. I don’t have details on the size of Pilot’s stake or the value of the transaction, but it’s going to be a huge return by any measure.

Pittman, guided by his digital deal guy, Andy Russell, got in on Zynga’s $10 million A round in January 2008. Since then, Zynga has raised an astonishing $350 million, all while claiming it doesn’t need the money. Investors love the story and are reportedly valuing the company at $3 billion in secondary market deals.

If Zynga’s future is so bright, why sell now? No comment from Zynga or Pilot. But a person familiar with the transaction tells me Pilot is reinvesting its profits in another deal. And it continues to hold some Zynga shares.

So if this thing keeps going–bankers see Zynga as one of the most likely big-name tech IPO candidates in the next couple years–Pilot will still see more upside.

Betaworks Gets Another $20 Million for Twitter-Friendly Start-Ups. Building a Mountain or Digging a Hole?

Peter Kafka — Fri, 12 Mar 2010 11:00:22 +0000

Want to invest in Twitter but don’t have the money to play in $100 million funding rounds?

Try Betaworks instead. That’s my translation of the holding company’s pitch, which seems to be effective. Yesterday, it announced that it had raised another $20 million in funding led by RRE Ventures and Intel (INTC); other new investors include AOL (AOL) and the New York Times (NYT).

Betaworks previously raised about $8 million from the likes of the Pilot Group, Ron Conway, Huffington Post co-founder Ken Lerer and AOL CEO Tim Armstrong, who bought in when he was still selling ads for Google (GOOG).

Betaworks is essentially a bet on “real time” companies in general and Twitter specifically. The New York-based outfit has invested in or built a couple dozen companies, almost all of which have something to do with social media. And many of them have direct links to Twitter.

The biggest Betaworks hit to date is an investment in Twitter itself: The company helped fund Summize, a real-time search engine Twitter bought in July 2008, back when the microblogging service was valued at a mere $100 million. Betaworks took its payment in Twitter equity, and that decision has worked out very nicely so far.

Other prominent Betaworks projects are Twitter plays as well. Twitter uses Bit.ly, the URL shortener Betaworks built and then spun off. And Betaworks funded TweetDeck, the most popular Twitter client, which also uses Bit.ly as its default URL shortener.

The risk, of course, is that there isn’t enough there there to support all these companies, which are very much in the Web 2.0 “users first, revenue later” model. As CEO John Borthwick puts it: “We’re either building a mountain or digging a hole.”

But Borthwick has an excellent pitch–the accent helps–which I got to hear when I dropped by his office yesterday. Co-founder Andy Weissman, alas, was AWOL. But if you want to hear his take, he maintains an excellent Tumblr (another Betaworks investment).

[ See post to watch video ]

DailyCandy Gets a New Editor: New York Magazine's Janet Ozzard

Peter Kafka — Tue, 23 Feb 2010 18:49:53 +0000

DailyCandy, the original and most successful lifestyle newsletter business, has a new editor in chief: Janet Ozzard, the woman who runs New York Magazine’s influential Strategist shopping/fashion guide.

Eve Epstein, an eight-year veteran at the site who has run the edit side for the past three years, is moving from New York to Los Angeles. She’ll stay with DailyCandy, though, as creative director of Swirl, an online sample-sale site that wants to take on the likes of Gilt Groupe.

The move is one of several high-profile changes at DailyCandy within the last few years. The biggest, of course, was when Bob Pittman’s Pilot Group sold the company to Comcast (CMCSA) for $125 million in the summer of 2008.

CEO Pete Sheinbaum moved on last May, and his role was eventually filled by Hearst Digital’s Beth Ellard in August. In December, the company began paring back some of its local editions and laid off some staff in the process. And assuming the deal with GE (GE) and NBC Universal goes through, DailyCandy will end up as part of that combined company (unlike other Comcast digital assets, which will stay with the mother ship).

Here’s a release from DailyCandy that the company was kind enough to provide to me when I called up to confirm the hire. Take note, fellow publicists! This is excellent service!

DailyCandy, the free lifestyle daily e-mail newsletter and website, is hiring Janet Ozzard, editor of New York Magazine’s The Strategist, to be the company’s new Editor-in-Chief. Janet is replacing Eve Epstein, who left DailyCandy to become the Creative Director of Swirl.com, DailyCandy’s new sample sale site which launched in beta late last year.

“New York Magazine’s Strategist section is widely regarded as some of the best content in publishing today,” said Beth Ellard, GM for DailyCandy. “Janet brings significant editorial experience, strong leadership skills, and a fresh, innovative perspective to DailyCandy, and she will be fantastic in her new role as Editor-in-Chief.”

Janet will be starting with the company in early March.

A Father and Son Team That Founds Web Start-Ups Wants to Finance Them, Too: Ken and Ben Lerer Get Their Own Fund

Peter Kafka — Tue, 02 Feb 2010 11:30:25 +0000

Are you cobbling together a start-up in New York City and looking for cash? Good news: A lot of wealthy and wired people want to write you a check.

Meet the newest batch: Lerer Media Ventures, a new fund run by Huffington Post co-founder Ken Lerer and his son, Thrillist co-founder Ben Lerer.

The two men say they’re closing the fund’s first round in the next few days. When they’re done, they will have around $7 million to put into angel/early-stage investments–primarily in New York tech/media companies, though they intend to play on the West Coast too.

If you want a sense of what the Lerers are looking for, check out deals they’ve already done, like Hot Potato, Paperless Post, and GDGT.

Their investors include a number of bold-faced names, at least by tech/media standards. Among them: Pilot Group’s Bob Pittman, ZelnickMedia’s Strauss Zelnick, SoftBank Capital partner Mike Perlis, Hunch co-founder (and prolific blogger) Chris Dixon, uber-angel investor Ron Conway and Lerer’s Huffington Post co-founder, Arianna Huffington.

The Lerers join the ranks of other investors interested in New York start-ups, including early-stage venture capital shops Union Square Ventures, Spark Capital and First Round Capital, and a set of smaller funds like IA Capital Partners, Betaworks and Founder Collective.

The fact that the last two funds are directly connected to the Lerers–Ken is an investor in Betaworks (and shares office space with it), and Chris Dixon is an investor in Founder Collective–shows just how interlinked the New York start-up scene is. The same players seem to invest in the same deals, and now they’re investing in one another.

For instance: Check out the investor list for Brooklyn-based Hot Potato, which looks a lot like the Lerers’ group.

Or consider the fact that Pittman once worked with Ken Lerer at AOL (AOL) and now funds Ben Lerer’s newsletter company. Or the fact that Perlis, via SoftBank, is a Huffington Post investor and that former SoftBank partner and current Huffpo CEO Eric Hippeau will be an adviser to the new fund. Etc.

If you’re a cynic, you might call such familiarity overly cozy. And you might worry about the chances for a start-up that doesn’t find favor with the collective. If you’re an optimist, you’d say there’s nothing wrong with like-minded investors who like to collaborate.

No surprise what side Ken Lerer is on. And what about the growing number of people who want to invest in Web start-ups again? Not a problem, either.

“In angel investing, you don’t really have competitors. You go ahead and do your thing,” Lerer insists. “I don’t look at Internet or Internet investing as competitive, generally.”

Fair enough. If anyone feels otherwise, sound off in the comments below.

And in the spirit of full disclosure, I’ll note that even I have the faintest of links to this group, though it’s mainly aspirational. Ken Lerer was an early backer of my former employer, Silicon Alley Insider, and I have the tiniest of investments in that company, too.

[Image credit: Tony the Misfit]

Zynga's Mark Pincus Talks About Big Funding, "Offer Ad" Controversies and More!

Kara Swisher — Fri, 18 Dec 2009 11:32:42 +0000

Just days after selling $180 million in private stock to a group of investors, including Facebook funder Digital Sky Technologies of Russia, Zynga’s Mark Pincus came to visit the BoomTown Worldwide HQ for a video interview.

The San Franisco-based Zynga creates and distributes online games, including Mafia Wars and FarmVille, which are played on social networking sites like Facebook. It claims 60 million active daily users.

While playing, users can also buy virtual goods with real dollars.

Zynga took the pile of money, Pincus explained to me, so it would not have to do what everyone thought it was set to do soon: Go public.

But with 700 employees and a reported annual revenue “run rate” of $300 million, the fast-growing start-up needed more options, he added.

Thus, rather than selling out or going public, Pincus went for megafunding, a path similar to the one Facebook took.

Along with DST, which accounted for the majority of the funding, investors include Andreessen Horowitz, Tiger Global and Institutional Ventures Partners.

Previous investors in Zynga are Union Square Ventures, Clarium Capital, Foundry Group, Avalon Ventures, Pilot Group, Kleiner Perkins, along with personal investments from Silicon Valley players such as Reid Hoffman.

Pincus will need all that cash given that the arena is heating up and consolidating fast.

Playfish, a competitor, was recently snapped up by Electronic Arts (ERTS) for $275 million in cash and $125 million more in stock and earn-outs, for example.

This is not a fate Pincus says he wants for Zynga, instead insisting he would rather create a powerful and innovative standalone gaming company of the future.

Obviously, Zynga is the big shot at that prize for the longtime entrepreneur, whom I met way back when I was a reporter in Washington, D.C., in the early 1990s, when Pincus co-founded another start-up, called Freeloader.

In our interview, Pincus talks about the new infusion of cash, controversies around questionable “offer” advertisements that appeared on Zynga’s site and more.

Here’s the longish video:

[ See post to watch video ]

And here is a video interview I did with Pincus, back in May of last year:

[ See post to watch video ]

Disney's "Green" Ideal Bite Site Set to Go Dark

Peter Kafka — Fri, 04 Dec 2009 01:45:21 +0000

When last we checked in on Ideal Bite, Disney’s green newsletter, there was a debate about whether the unit was folding, as its employees seemed to think, or in “transition” and “under review,” as Disney preferred to describe it.

This should clear things up: The site and its email editions are going on “indefinite hiatus,” according to an email the company plans to distribute next week.

Ideal Bite is supposed to eventually resurface in some form via the “Go Green” section of Disney’s Family.com site, but that won’t do much for the company’s employees, who I’m told will be out of work as of Dec. 9.

A person familiar with the company says the only two exceptions are co-founders Heather Stephenson and Jennifer Boulden, who will remain employed until March. I’ve asked Disney for comment, but haven’t heard back yet.

Ideal Bite is one of the many newsletters backed by Bob Pittman’s Pilot Group, which sold the company to Disney (DIS) for a reported $20 million in 2008. Pittman’s biggest success to date has been DailyCandy, which Pilot sold to Comcast (CMCSA) for $125 million a year and a half ago.

That unit, which is now slated to become part of the Comcast-NBC Universal joint venture, is now paring back some of its local editions, the result of what it said today was “a very challenging year.”

Here’s the draft text of the email Ideal Bite plans to send out next Monday:

Dear Biters:

For the past 5 years, Ideal Bite has helped make “light green” a way of life, leading to many meaningful changes. Together we’ve made the switch to organic food, CFL light bulbs, reusable water bottles, and paraben-free shampoos, and have inspired others to follow our lead.

Those small changes really have added up and have helped push green to the mainstream. As you’ve probably noticed, lately, our Ideal Bite guides, tips, and other content have become more family and home focused. And now, as part of the Walt Disney family of companies, it makes sense for us to join the Disney website Family.com, which focuses on women and moms, and is expanding the Go Green section of its site.

What does that mean for you? Starting next week, all Ideal Bite email editions and the website will go on indefinite hiatus as Family.com readies new ways to serve you Biters – through email, website, mobile, and video content. In the meantime, keep checking Family.com’s Go Green section for content and updates.

Thanks for Biting with us over these past years. We’ve had a blast sharing our tips with you all, and we look forward to downing a virtual glass of biodynamic wine with you in the future.

Until then, as always, Happy Biting.

The Ideal Bite Team

Netted, a Web-Centric Tipsheet, Tries Squeezing Into Your Inbox

Peter Kafka — Wed, 04 Nov 2009 11:00:43 +0000

Everyone loves to complain about email. Except for the growing batch of entrepreneurs using it to launch newsletter businesses. Latest example: Netted, a Web-centric tipsheet from the guys who bring you the Webby Awards.

The pitch is straightforward: The newsletter will bring you one cool and/or useful online site, service, app, etc., per day. The alpha versions I’ve seen suggest that subscribers try out the likes of Gazelle, Zeni Optical, and Hazelmail.

If the concept sounds familiar, it should. There are several popular Web sites, like Gawker Media’s Lifehacker, that tread similar thematic ground.

And there are many variants in newsletter industry. Very Short List, the newsletter started by IAC (IACI) and now owned by the Observer Media Group, offers up a cool book, movie, video, etc., per day; DailyCandy, now owned by Comcast (CMCSA), tells its subscribers about cool sample sales and boutiques; Thrillist*, the DailyCandy for dudes, informs dudes about cool restaurants, bars, etc.

One other commonality: This newsletter business, like many others, is getting a boost from Bob Pittman’s Pilot Group. The investment fund, which has invested in newsletters, including Daily Candy and Thrillist, owns a piece of Recognition Media, the New York company that produces the annual Webby awards, among other silly/serious events.

*Your story is coming, Ben. Patience!

[Image credit: polmuadi]

It's Another Tequila Start-Up: Bob Pittman's New Venture

Kara Swisher — Fri, 16 Oct 2009 09:14:45 +0000

Earlier this week, while in New York, BoomTown paid a visit to well-known media and Web exec Bob Pittman to hear about his newest venture.

And, as it turned out, it tasted pretty good.

That’s because the former MTV wunderkind, AOL top exec and currently, investor in a wide range of media and Web companies, is making tequila instead of Internet sites.

Thank God it’s Friday!

That might be the liquor talking, since accurate reporting is a requirement at All Things Digital–but this was one of the more enjoyable interviews I have had with Pittman over many, many years.

After leaving the job of COO at then-troubled AOL Time Warner (TWX) in 2002, Pittman has been investing via the Pilot Group in Web start-ups like Thrillist, iLike, Zynga, Next New Networks, as well as radio and television properties.

Pilot sold DailyCandy to Comcast (CMCSA) in 2008 for a reported $125 million.

Tequila-making is yet another unusual tack for Pittman, who is now busy trying to turn “Casa Dragones”–which is made from the blue agave plant in Mexico–into the next big thing in the high-end liquor business.

Aiming directly at the top-shelf brands like Gran Patrón, Pittman is trying for a “sipping” tequila, in contrast to most versions, which typically deliver a sharp kick.

Using a series of tasting parties and marketing efforts to make the $275-a-bottle tequila a must-have at key bars and clubs, it will be interesting to see if Pittman can turn spirits into profits.

Here’s Pittman talking about his tequila adventure in a video interview (and, below it, Joe Nichols singing one of my favorite country songs, “Tequila Makes Her Clothes Fall Off”):

[ See post to watch video ]

Joe Nichols – Tequila Makes Her Clothes Fall Off

Disney "Transitioning" Ideal Bite, Its $20 Million "Green" Lifestyle Newsletter

Peter Kafka — Tue, 13 Oct 2009 01:27:32 +0000

Ideal Bite, the green-flavored lifestyle newsletter Disney bought in June 2008, faces an uncertain fate: Its parent company is shuttling the unit from one corporate silo to another and says it’s not sure what will become of it once that happens.

For the record: Disney (DIS) says it always intended to move the company, which offers “bite-sized ideas for green living” via email and a Web site, from its corporate strategy group to its interactive division, which will happen later this year. At that point, “it will still continue in some form,” says spokesman Michelle Bergman.

That doesn’t sound good. Disney says it plans to conduct a review of the unit, so it’s not ready to answer some basic questions about the email newsletter company. Like: Are co-founders Heather Stephenson (who lives and works in San Francisco) and Jennifer Boulden (who until this summer lived and worked in Bozeman, Mont.; she’s now in Los Angeles, I’m told) staying on? Will Disney have to take a write-down on the property? Will there be layoffs? “It’s too early to say. I can’t tell you,” Bergman says.

Okay. But If I had to bet, I’d say at least some of the dozen-plus employees will be hitting the job market.

Disney paid a reported $20 million for the property a year and a half ago, and the plan was to create a big green-centered business around it, but that hasn’t panned out, sources said. The company, founded in 2005, is one of the many lifestyle newsletter businesses backed by Bob Pittman’s Pilot Group.

Comcast (CMCSA) bought DailyCandy, the best known of Pittman’s stable, for $125 million a little more than a year ago. That was surely one of the last “pre-Lehman” Web 2.0 M&A deals, but grunts and murmurs out of Philadelphia and Pilot indicate the business has held up during the recession. And Thrillist, a “DailyCandy for dudes” effort that has yet to sell, seems to be booming.

Peggy Noonan, Lesley Stahl and Friends Raise More Money: Wowowow.com Gets Another $1.5 Million

Peter Kafka — Mon, 08 Dec 2008 00:40:07 +0000

The purse strings haven’t completely closed for start-ups looking to raise money–even niche Web sites that hope to stay afloat by selling advertising.

Wowowow.com, a site launched earlier this year, which targets women over 40, has raised a $1.5 million round led by Bob Pittman’s Pilot Group and the Rhime Group.

No word on valuation, but I’d guesstimate Wowowow.com’s investors peg its value in the high seven-figure range. The company has now raised $3.1 million in less than a year.

The five founders–former publisher Joni Evans, “60 Minutes” reporter Lesley Stahl; New York Post gossip columnist Liz Smith; ad exec Mary Wells; and Wall Street Journal political columnist Peggy Noonan–contributed $200,000 each in an initial round. Some of the company’s high-profile pals, like Whoopi Goldberg and Candice Bergen, later kicked in another $600,000.

Is that money well spent? We’ll see. Publishing is a tough business, even for lean Web operations, and advertisers generally steer clear of small sites. The company launched with a series of high profile sponsors; from what I can tell, at least some of them–like Citigroup (C) and Sony (SNE)–are still there.

And Pittman, the former MTV and AOL executive, has garnered new respect as a Web investor (Full disclosure: Pittman’s company invested in Silicon Alley Media, my former employer), so presumably he sees something there.

One plus: Wowowow.com is boasting rapid growth. The site, which launched in March, says it attracted 600,000 unique visitors last month. That number is much higher than outside estimates from outfits like Compete and Quantcast, but that kind of discrepancy is par for the course for any Web publisher.

In any case, if Wowowow.com wants to make a go of it, it’s going to need to attract at least one million uniques a month, a goal the company says it will achieve “early next year.”

BoomTown’s Kara Swisher dropped by the company’s New York offices earlier this year; here’s a video that documents her visit.

Games People Play: Zynga's Mark Pincus Speaks!

Kara Swisher — Tue, 13 May 2008 19:15:39 +0000

Since I posted an interview with Social Gaming Network’s Shervin Pishevar today on the announcement of his $15 million funding, it seems only sporting to post this lively video interview I also did with his main competitor, Mark Pincus of Zynga, recently too.

Zynga, named after Pincus’s dog, is one of the two main social-gaming networks that are competing for audience by offering highly interactive games of all kinds. Its aim is to be more engaging and create a series of addictive games that users will return to again and again.

Pincus, who also founded the Tribe social-networking site, is a longtime entrepreneur. I met him way back when as a reporter at the Washington Post when he and Sunil Paul launched one of the few start-ups–Freeloader–in the D.C. area.

And I can report that Pincus is as jumpy and energetic today as he was 15 years ago.

He has certainly been busy lining up a spate of fancy investors, garnering $10 million in funding in January, including from: Union Square Ventures, Foundry Group, Avalon Ventures, Pilot Group, along with personal investments from Silicon Valley players Reid Hoffman and Peter Thiel.

Zynga, which is larger than rival SGN, claims 2.3 million total daily active users across Facebook, with its Texas Hold’em game being the largest it offers. Other games include Sea Wars, Blackjack, Attack! and Scramble.

As I said in my SGN post, while BoomTown often makes fun of viral apps, most of which are faddish and juvenile, the better-made gaming apps actually are likely to be a real business over time, as long they remain engaging and fun to play as the classic real-life games are.

Zynga plans on making money through ads, including creating its own ad network for other gamers, as well as via the sale of virtual goods and premium offerings.

Here’s a chat with Pincus at Zynga’s offices (Pincus owns the building, by the way, which also houses a bunch of other Web 2.0 start-ups) in San Francisco:

[ See post to watch video ]

Bob Pittman Smacks Online Video

Kara Swisher — Fri, 25 Jan 2008 08:02:27 +0000

Bob Pittman, the longtime media exec who led AOL at its peak (and left the company after its merger with Time Warner turned sour), recently gave an interesting interview in which he takes a very counter view to the current craze around online video.

Of the explosion in the sector–every report and poll shows a giant leap in online video watching by consumers–Pittman (pictured here) is not so sanguine in a Q&A he did with VideoNuze that was published yesterday in advance of the National Association of Television Program Executives conference in Las Vegas next week.

(FYI, I will be there to appear at a panel on Wednesday with execs like former Disney head Michael Eisner, along with others, aptly called “Possibilities and Perils of Internet TV.”)

Of online video, Pittman focuses on those perils and notes that short-form Web fare is not really a big deal, however temporarily popular some of it can become.

“So we have to be careful not to talk about fringe uses as if they’re going to be major uses,” said Pittman. “But I don’t think broadband is competitive with TV, putting TV shows on the Internet is nice, but you’re talking about small audiences.”

Currently heading a New York-based investment firm called the Pilot Group, Pittman (who also co-founded and ran MTV Networks) is more disposed toward broadcast networks. Pilot has been buying broadcast, of course, in smaller markets.

Said Pittman (whose salesguy smoothness–his nickname was “Bob Pitchman”–I realized I really missed by reading the interview):

“Broadcast stations are greatly unappreciated. TV is America’s hobby. Look at any category, the biggest is always the most important. So we want to invest in a place where most people are. It is a fantastic advertising medium. There’s no substitute for TV advertising. It works like nothing else. It’s still wildly cheap–for the most part it’s a $7 to $8 CPM–compared with newspapers and magazines, which are $25 to $30, and it outperforms by every measurement–reach, time spent, effectiveness. It’s still wildly underpriced.”

I am not so sure I agree with Pittman, whom I got to know well when covering AOL and also writing two books on the company.

But he does have a point about how hard it is to watch quality online video and the need to get Web content to the television.

Said Pittman: “I think it’s going to be pretty hard to get something in the home that’s easier to use than pushing a button on my TV set that I already know how to do and I’m set up to do. To start connecting a box and moving stuff around, then my rule of thumb is about 10% of the population will adopt new technology because it’s cool and neat, but it will be hard to get past that threshold.”

More strongly than any TV exec I have talked to of late, who are mostly in a serious state of depression over declining viewership, Pittman insists that the Web is not hurting television.

“People keep talking about Internet as if it’s competing with TV. But what the Internet has really done is replace print–things like yellow pages, newspapers and traditional research books. It’s also replaced communications–phone calls, voice mail,” Pittman said. “So when you hear these stories about the Internet replacing TV, I think they’ve got it all wrong.”

Well, he’s got it all wrong, of course–it isn’t replacing it apples for apples. But it is replacing it in terms of time and attention of consumers, especially young people, which is exactly the same thing.

Nonetheless, it’s good to hear from the always pugnacious Pitchman.