Last week, the U.S. Department of Defense approved RIM’s BlackBerry 7 devices for agencywide use. And now the device has won similar approvals in the United Kingdom, Australia and New Zealand.

CESG, the National Technical Authority for Information Assurance in the U.K., on Thursday certified BlackBerry 7 as fit for government and law enforcement use. And the Defense Signals Directorate of the Australian Government did the same for Australia and New Zealand. The reason: Those industry-leading security features RIM is so fond of talking up. Consumers may not pay them much mind, but in government they clearly matter a great deal.

Which is great for RIM’s business, but not quite central to its long-term success. While government sales will certainly help keep RIM afloat, it’s the enterprise and consumer markets where the company really needs some wins. RIM insists that BlackBerry 10 will deliver them, but it won’t launch until later this year.

Six years ago this month, I revealed in Businessweek that Apple had incorporated in Nevada where the corporate tax rate is zero. So I found the Times’ account — written by Charles Duhigg and David Kocieniewski, about the many financial tricks that Apple employs to minimize its tax exposure — to contain a lot of old news, but also some new, fascinating details. Who couldn’t love a phrase like “Double Irish With a Dutch Sandwich” to describe arcane accounting and legal tricks?

But the implication the story leaves a reader with — that Apple is somehow doing society a disservice by not paying its fair share of corporate taxes — is simply wrong on many levels. The most dubious of the lines that the Times attempts to draw is between Apple and the budget crisis at De Anza College, a Cupertino community college where Apple co-founder Steve Wozniak was once a student. The college is facing a “death spiral” because of a decline in funding from the state. This funding, the reader is led to conclude, would be more plentiful if corporations like Apple were to step up and pay, and not escape the tax bill by setting up an office in neighboring Nevada.

What the Times fails to make clear is how community colleges are funded in California. The picture is much more complicated. California community colleges draw the majority of their funding from the state’s general fund — which is drawn directly from the state’s personal and corporate income taxes — and from local property taxes collected by counties. As of the 2009-2010 budget cycle, these two buckets made up about 88 percent of the system’s funding. State lottery funds, federal funds and student fees made up the remainder.

Tax policy wonks — which I’m not — will remember that California was the birthplace of the property tax revolt movement in the 1970s. In 1978, California voters overwhelmingly approved a measure that limits the amount by which property taxes can increase each year. Since then, at least one estimate pegs the amount that the state’s taxpayers have avoided paying at north of half a trillion dollars as of 2009. In February, the property tax shortfall facing the state community-college system was $41 million. Conclusion: If there is to be blame for the shortage of taxpayer funding at De Anza College, a healthy portion of it should be laid at the door of California’s own voters and taxpayers, who in 1978 thought that property-tax limitations were a good idea.

I had a few other problems with the story. Take sales taxes. When you buy a Mac in New York, you pay a sales tax of 8.875 percent. For a base-level iMac, priced at $1,199, that works out to more than $106 in taxes. While some states charge no sales tax — Alaska, Delaware, Montana, New Hampshire and Oregon — the average sales tax in the U.S. works out to 9.6 percent.

Putting aside the fact that the average sales tax in Canada is higher, let’s assume that Apple’s North American sales of $38.3 billion in its fiscal 2011 were taxed at that rate, and do the math: We get $3.7 billion in sales taxes paid into the coffers of states and municipalities, except in those five states that have no such tax. That amounts to more than 1.5 times the $2.4 billion the Times says Apple would have owed the federal government. Factor in VAT and other similar taxes in the U.K. and throughout Europe, and you get the idea that Apple is generating tax revenue aplenty on the sale of its goods. Yes, those taxes are passed on to customers. But isn’t that the case with every tax a corporation making consumer products pays?

Finally, you may remember that earlier this year Apple released an extensive report on the number of jobs it had created and supported both through direct employment and in the orbit of the products it creates. It seemed an odd thing for Apple to release at the time, and now we know why: It reads almost like it was prepared by Apple in advance, knowing this story was in the pipeline at the Times. The final number, by its reckoning: 514,000 U.S. jobs are created by the Apple universe, including 47,000 employees; 210,000 jobs were created as part of the app economy, which didn’t even exist until 2008.

Assuming that each of those jobs pays a salary north of $35,350 a year, taxes collected on that income could range anywhere from 25 percent to 35 percent, depending on the income bracket. And that’s before accounting for any stock-based compensation.

At this point, the discussion turns to a deeper question: Is it better for society to have a company pay more in taxes, or to create more jobs? You can argue that had Apple not taken advantage of the various strategies it employed to pay less taxes, it might not have flourished as well as it has, and thus created fewer jobs. But people smarter than I will likely hash out the finer points of this argument in the coming days.

(Image is a screen grab from this silly Beatles cartoon built around the group’s song “Taxman.”)

One of the things the company signaled it was going to do with that money was make acquisitions. Today it announced its first: OneDrum, a British start-up that specializes in making Microsoft Office a lot more collaborative.

Financial terms aren’t being disclosed, and OneDrum is a pretty early-stage company with 10 employees and combined $2 million in capital raised, mainly from angels and Amadeus Capital Partners, a British VC firm. But, the deal is invariably going to be compared to a similar one announced last year by Yammer rival Jive for OfficSync.

I talked to Yammer CEO David Sacks about the deal earlier today and I asked him about the comparison. He said that one thing OneDrum does that OfficSync does not is a level of desktop synchronization that’s comparable in some ways with what you find with something like DropBox. And, it does so without the need for a plugin that might, he argues, mess up how Office runs and which can be difficult to deploy across an enterprise.

Basically, Yammer customers will be able to share and see the contents of the folders they share with other people via Yammer. Also, people can collaborate on Office documents live. Changes are tracked within the Yammer news feed and revisions are stored. Once you drag a document into your Yammer folders, the contents are instantly text searchable from within Yammer.

What OneDrum lacked, Sacks told me, was “a good front end to express the OneDrum technology,” which Yammer will readily provide.

AllThingsD.com

Yet now that the attacks have subsided, it’s time to see them for what they are: Nothing more than a blunt instrument that accomplishes nothing constructive.

As of today, only one of the Web sites attacked by the hacker troupe Anonymous is still apparently affected, and that belongs to the Universal Music Group recording label. It currently displays only a message saying “The Site is under maintenance. Please expect it to be back shortly.” Others that had been attacked yesterday, including the sites of the U.S. Department of Justice, the Recording Industry Association of America and the Motion Picture Association of America all seemed to be operating normally.

Thursday’s attacks, which have been described as the biggest action yet organized by Anonymous, were launched in apparent revenge for the FBI’s arrest of several people associated with the file-sharing site Megaupload.com over suspicions of online piracy. Taking place against the backdrop of a wider, more civil protest against anti-piracy legislation currently before the U.S. Congress, the atmosphere around the attacks has been politically charged.

As Molly Wood of CNET put it, the #OpMegaUpload attacks — coming as they did on the heels of Wednesday’s peaceful anti-SOPA protest — seem like an “unsettling wave of car-burning hooligans that sweep in and incite the riot portion of the play,” spurring equally unsettling reactions from the powers that be.

Many outlets have portrayed the attacks as “hacks,” implying that someone had picked a lock in order to commit some kind of sabotage. But the tactic used — a distributed denial-of-service (DDoS) attack — is more aptly compared to a blunt instrument, requiring neither skill nor knowledge, only large numbers of willing participants who team up to swarm a site with more requests than it can accommodate and thus overwhelm its ability to function normally.

The adjective “willing” is debatable, and perhaps inaccurate. Anonymous was able to generate such impressive numbers with the operation — it claimed more than 5,000 participants — by spamming a link in chat rooms and via Twitter that, when clicked, triggered a tool used to launch the attack. People tricked into following the link are given no context or information, and so may or may not have any idea that they’re participating in the execution of a crime.

For the record, it is illegal in the U.S., the U.K., Sweden and other countries to launch and participate in a DDoS attack like the one Anonymous organized. As anyone who has observed the evolution of Anonymous (and its various affiliates using the names LulzSec and AntiSec) should know, the FBI arrested 16 people last July, many of them charged with participating in a DDoS attack against PayPal in protest of its shutting down an account used by WikiLeaks.

In 2009, a New Jersey man was sentenced to a year and a day in prison for launching a DDoS attack against the Church of Scientology. And in 2010, a 23-year-old Ohio man was sentenced to 30 months in prison for launching DDoS attacks against several prominent U.S. conservatives, including the author Ann Coulter, former New York City mayor Rudolph Giuliani and Fox News commentator Bill O’Reilly.

Records like that suggest to me that DDoS attacks never accomplish anything that the people who organize and carry them out attempt to do. At most, they inconvenience the people who visit and operate the targeted sites for a few hours, until the attention spans of the attackers shift elsewhere. They also generate headlines that are forgotten by nearly everyone except the targets, and sometimes law enforcement.

And so it will be this time. Mark your calendars, because the Megaupload revenge attacks will spur a series of arrests later this year. Some of those arrested will be people who didn’t know they were committing a crime. And that certainly won’t help Anonymous’ image. Nor will it further a single bit of what passes for the Anonymous agenda.

Its his second honor from the Queen, who named him Commander of the British Empire, or CBE, in 2006. The new title will be conferred by the touch of a sword held by the Queen.

Interestingly, Ive is only one of two people being given this particular title this year, from the extensive list of other honors published in the London Gazette. (Ive’s name appears on page 24 of the announcement; there’s a PDF of that page here.) The other KBE recipient is the art historian John Patrick Richardson, who wrote a well regarded biography of Pablo Picasso.

The best profile of Ive that I know of is this 2006 BusinessWeek story by my former colleague Peter Burrows. It’s more than five years old, and so may be a bit dated, but it’s terrific.

The full announcement from the British Embassy is below.

Her Majesty the Queen honours Apple designer with knighthood

31 December 2011

Jonathan (Jony) Ive has been appointed by Her Majesty Queen Elizabeth II a Knight Commander of the Most Excellent Order of the British Empire (KBE).

The honour, for the lead designer at Apple Inc. of products like the iPod and iPad, was part of the New Year 2012 Honours List and was in recognition of Jonathan Ive’s services to design and enterprise.

“I am keenly aware that I benefit from a wonderful tradition in the UK of designing and making,” said Jony Ive. “To be recognized with this honour is absolutely thrilling and I am both humbled and sincerely grateful.”

“I discovered at an early age that all I’ve ever wanted to do is design,” Ive added. ” I feel enormously fortunate that I continue to be able to design and make products with a truly remarkable group of people here at Apple.”

The British Consul General in San Francisco, Priya Guha, said she was “delighted that Jony Ive has been granted this exceptional honour by Her Majesty The Queen. Through his design of the iMac, iPod, iPhone and iPad, his work has transformed the lives of a generation of people, revolutionising the way people interact with technology. He epitomizes the strengths of British design and innovation.”

British Honours are bestowed on merit for exceptional achievement or service to British interests. This is the second royal honour for Ive, who was awarded a CBE (Commander of the British Empire) in 2006 for his achievements in British design and innovation. The current Knighthood recognises his work on raising design standards generally in consumer, industrial and professional goods and for his championing of British design.

Jonathan Ive becomes Sir Jonathan Ive, and the knighthood will be conferred by the touch of a sword by Her Majesty The Queen.

London-born designer Ive is the Senior Vice President of Industrial Design at Apple, reporting directly to the CEO. Since 1996, he has been responsible for leading a design team widely regarded as one of the world’s best.

Ive has demonstrated a life-long commitment to design. He has been recognized with numerous design awards including being named Designer of the Year by the Design Museum London and awarded the title Royal Designer for Industry by The Royal Society of Arts.

Ive holds honorary doctorates from The Royal College of Art, The University of Arts London, the Rhode Island School of Design (RISD) and Northumbria University (Newcastle Polytechnic) where he also received his Bachelor of Arts degree. He holds 596 design and utility patents in his name.

After graduating in 1989, he co-founded the London design agency Tangerine, where he designed everything from washbasins to televisions. In 1992, he moved to Apple and, after the return of Steve Jobs in 1997, became Senior Vice President of Industrial Design, designing the first iMac in 1998, its progressively sleeker successors, and then the iPod, iPhone and iPad.

The Queen chooses the recipients of Honours on the advice of the Prime Minister and other relevant ministers, to whom recommendations are made by their departments or members of the public. Private nominations–those made by individuals or by representatives of organisations to the Prime Minister’s Office–can also be made and account for about a quarter of all recommendations.

(Image is a screen grab from this Apple video on the MacBook Air.)

Rather than become an HP executive, Autonomy CEO Mike Lynch, who’s been described as Britain’s first software billionaire, will remain head of Autonomy, which HP will operate as a wholly owned subsidiary, though he will report to Whitman.

Of course, the deal didn’t get done without some drama — what does get done at HP without drama these days? First there was the shock at the price paid, which represented a 64 percent premium over Autonomy’s share price. It was just one of the things that led to a shareholder lawsuit against HP.

There were certainly enough questions about the deal to cause some speculation around the notion that HP might try to back out of it. Those ideas gained some currency when HP’s board of directors fired former CEO Léo Apotheker, but not before giving him a pricey exit package.

Then there was the Oracle shopping scandal. Asked about Oracle’s position in the unstructured data market two weeks ago, CEO Larry Ellison said that his company had passed on a chance to acquire Autonomy because the price was too high. Lynch, apparently falling into a PR trap laid by Oracle, took issue with Ellison, saying Autonomy had never been shopped to Oracle, prompting Oracle to publicly call Lynch a liar, then produce a set of PowerPoint slides as evidence. Lynch then went on to blame his eager banker, Frank Quattrone. Of course, it was widely known that Autonomy had been quietly shopped around for months.

So that little kerfuffle is over, now that HP is in control and its corporate communications team, led by Lynn Anderson, is in charge.

Meanwhile, there’s the larger mission to worry about: HP has to prove that Autonomy was worth all that money, and there’s an awful lot at stake. HP shares are still trading near their lowest levels in six years, and closed today at $22.20, down 25 cents. According to the disputed slides prepared by Qatalyst partners that were shared at one time or another with Oracle, Autonomy is expected to bring in $1.1 billion in revenue next year, which would amount to less than 1 percent of HP’s forward revenue projection for 2012 of $127 billion. It’s going to be tough to make it pay. But like it or not, HP is stuck with it now.

As we reported Wednesday, Oracle decided to slap Lynch silly with a public rebuke concerning his comments to The Wall Street Journal that his company had never been shopped to Oracle.

Always eager to clear up the record — just, well, you know, because — Oracle went on to publish the PowerPoint slides sent by investment banker Frank Quattrone of Qatalyst Partners to Mark Hurd in January. The slides may or may not have had anything to do with a meeting held by Lynch, Quattrone, Oracle President Mark Hurd and its head of M&A, Douglas Kehring, in April. Or not! You see, the stories vary.

(Oracle, by the way, has since taken down the slides, but you can still read them here. Update: And we’re now told the slides are back up. Interesting!)

But what about the email those slides arrived with originally? Well, a kindly source has sent it to us. Dated Jan. 26 — you can read it below — it was sent to Hurd by Quattrone (whose address I’ve deleted as a courtesy). Judge for yourself, but to me it sure reads like the windup to a sales pitch.

From: Frank Quattrone
Date: January 26, 2011 7:48:37 AM PST
To: “‘mark.hurd@oracle.com’”
Subject: Fw: Autonomy slides

Hi Mark,
It was great to catch up earlier this month. I wanted to follow up by sending the slides I promised on Autonomy. Given its strong position in managing unstructured data (such as video, voice and photos), “meaning based” contextual enterprise search, data protection, compliance, archiving and content/web management, I beleive it’s a very strategic asset that could alter the balance of power in the industry for whoever might acquire it. And despite its strong track record of growth and very high profitability (50 pct margins), it trades at less than 20x earnings and around 11x Ebitda, huge discounts to the other strategic software assets of scale. Please let me know if you would like me to follow up with you, Doug K or otherwise.
Thanks
Frank

And it was! At least the email part. Quattrone weighed in on the whole kerfuffle via an email to Lynch, which Lynch then shared with the Financial Times Alphaville blog:

“The slides Oracle posted publicly were sent by me to Mark Hurd in January, were prepared by Qatalyst and were for the purpose of our independently pitching Autonomy as an idea to Oracle. These slides were not used in our April meeting with Mark and Doug.”

So what of the meeting in April? Well, apparently it wasn’t a sales pitch at all. No, really. As Autonomy said in a statement also sent to the FT:

“In April 2011, there was a meeting for approximately thirty or forty minutes between Autonomy and Mark Hurd, which was set up by Frank Quattrone as an introduction to Mark Hurd. Oracle is an Autonomy customer. It was made clear that Autonomy was not for sale and no sale process was under way. Mr. Quattrone’s company was not engaged by Autonomy at that time. There has been no other contact with Oracle since then. …

“Qatalyst have informed us that the slides Oracle has recently posted on its website were prepared and sent independently by Qatalyst to Oracle on 26 January (the content is clearly from January). This is the first time we have seen them. Autonomy was not involved in this nor was Qatalyst engaged by Autonomy until mid-year. Autonomy did not present these slides in the meeting.

“Oracle seems a little confused about the sequence of events and origins of the data it has received, something that would suggests it needs better management of and insight into the unstructured data on its internal systems. We would be delighted to help.”

Oh, snap! At least Lynch is learning the art of the snarky retort. So the slides were the work of eager bankers trying to get a deal cooking. And the meeting was just a friendly call by Autonomy’s CEO on a customer? With an investment banker and another company’s head of M&A — two people who have collectively done more Silicon Valley deals than any other people in the world — joining in just for kicks? Okay then.

While this tit-for-tat seems like a mildly entertaining tempest in a teapot, it’s a $12 billion teapot! One about which HP shareholders still seem to have a lot of questions, especially in light of the management change that has gone on there since the deal was announced. Time, however, is short: HP is said to be about ready to close on the deal Monday.

Why is it so important to Lynch that the world believe that Autonomy was not shopping itself, and not engaging in any discussions about selling itself? Because laws in the U.K. about corporate acquisitions are very strict, for one thing. And companies engaging in discussions about being acquired without disclosing that fact to shareholders quickly find themselves in hot water with regulators! That means CEOs in the U.K. get ticklish on this subject very easily.

Of course, the first official public disclosure about Autonomy being in discussions to sell itself to anyone crossed the wires at 1:32 pm New York time on Aug. 18, which, by my watch, is about two minutes after markets had closed in London. The disclosure, however, came about an hour and change after Bloomberg News reported that a deal was near. About 90 minutes after Autonomy’s disclosure in London — and with 52 minutes left before the close of markets in New York — came HP’s confirming statement that it was “in discussions.” Then, just after markets closed in New York, the deal was done. That leaves plenty of room for people on both sides of the Atlantic to ask all kinds of fun questions. Anyway.

And as we all know, Oracle — whether in January or April — passed on the opportunity to bid on Autonomy, primarily because the price was, as CEO Larry Ellison put it on a conference call last week, “shockingly high” at about $6 billion. And four months later — or eight, depending on when you start counting — on Aug. 18, Hewlett-Packard announced its plans to acquire Autonomy at nearly twice that price.

So what was the purpose of the April meeting in Oracle’s board room in Redwood Shores? Was it really a “lively discussion about databases,” as Lynch has previously claimed? Or an innocent customer call during which two masters of tech M&A just happened to be in the room? We don’t know exactly.

But we do know one thing: Having first characterized Ellison’s description of the matter as “just inaccurate,” then copping to a previously undisclosed meeting of some kind, Lynch does know how to change his story.

Scotland Yard says it has nabbed two more people that it says are members of the group; one of them is said to be connected to crimes committed under cover of the online identity “Kayla.”

In a statement, police did not release the names of the two men arrested. They are aged 20 and 24, and one comes from the town of Mexborough, while the other comes from Warminster. The arrests were conducted in cooperation with local police and the FBI. In one case, a home was searched and computer equipment taken.

It was the second pair of arrests in as many days. On Thursday, police arrested two others as part of the growing worldwide investigation into the activities of LulzSec and Anonymous.

And yet the hacker crimes continue, seemingly unabated. Anonymous has dubbed today “Texas Takedown Thursday” or #TTT on Twitter. The target: Law enforcement agencies in the state of Texas, in apparent retaliation for the arrests earlier this summer of 16 people said to be associated with Anonymous.

The group says it has leaked about three gigabytes worth of email and other data from private email accounts it says belong to certain police officials in Texas. It also claimed credit for defacing a Web site belonging to the Texas Police Chiefs Association.

It’s the second such targeting of police officers in a particular state. In June, the group went after the Arizona State Police, posting home addresses of officers.

LulzSec and Anonymous, in their various contortions, have had a busy summer. The group and its sympathizers started out making Sony’s existence miserable, on the heels of an attack on the PlayStation network; the attack brought the network down for several weeks.

In a speech to Parliament today, Cameron appeared to endorse the idea that posts on Facebook and Twitter, and communication via BlackBerry Messenger, helped fuel the violence that crippled his country for several days. And he floated the notion of a government-sanctioned crackdown.

From his prepared remarks:

Mr Speaker, everyone watching these horrific actions will be stuck by how they were organised via social media.

Free flow of information can be used for good. But it can also be used for ill.

And when people are using social media for violence we need to stop them. So we are working with the Police, the intelligence services and industry to look at whether it would be right to stop people communicating via these websites and services when we know they are plotting violence, disorder and criminality.

And here, wags will point out that British cops are also using social media, because they posted photos of looters on a Flickr page – here’s one the cops say was taken from a looter’s own Twitter post – and isn’t that a double standard, blah blah blah. Don’t waste your energy debating that one.

If a crackdown moves forward, though, it will put services like Facebook and Twitter in a tricky position: The services’ standard line is that they’ll comply with requests from cops and courts in whatever country they operate in when it comes to subpoenas and the like. But actually censoring communication is a different matter. BlackBerry maker Research in Motion has already said it would work with cops trying to trace text messages sent using its service.

Also worth bearing in mind: Freedom of speech is already much more limited in the U.K. than in the U.S.; recall the farcical but somewhat effective effort to prevent U.K. newspapers and Web sites from printing soccer star Ryan Giggs’ name this spring.

UPDATE: Here’s a response from Twitter spokeswoman Rachel Bremer: “Our only comment is that if the government would like to talk about this we’d be happy to listen.”

The photo, which appeared on the U.K.-based tech site shinyshiny.tv, is of Jake Davis, an 18-year-old resident of Britain’s Shetland Islands, specifically the island of Yell. The original photo appeared in the Instagram account of a user known as timbr. Update: Timbr turns out to be Tim Bradshaw of the Financial Times.

After reports surfaced suggesting that police may have been tricked into arresting the wrong person, police say they’re certain they have their man.

Davis appeared in a City of Westminster court this morning and was granted bail; he is next scheduled to appear in court on Aug. 30. He faces five charges related to distributed denial-of-service attacks against several sites, including, notably, the U.K.’s Serious Organized Crimes Agency in June.

Using the online handle “Topiary,” Davis had functioned as the group’s spokesman and gave interviews to the media about its activities. The group attracted a great deal of media attention for its numerous attacks against, among others, Sony, PBS, Nintendo, Britain’s National Health Service, the U.S. Senate, the U.S. Central Intelligence Agency, private affiliates of the FBI, and the Arizona Department of Public Safety.

The arrest in the U.K. followed a string of arrests in the United States, in which 16 people have been accused of being involved with the distributed denial-of-service attack against PayPal, the payment unit of eBay. LulzSec had in recent days been organizing a protest against PayPal, encouraging people to kill their accounts with the service.

LulzSec’s Twitter account has been quiet since July 27, the day the arrest was announced. And the Twitter account belonging to Topiary has been wiped of all messages, save for one saying “You cannot arrest an idea.” The Twitter account belonging to AnonymousIRC, the group under whose banner LulzSec briefly operated, included a message of support.

http://bit.ly/obmiaW | Stay strong, @atopiary. We will continue this, as your last tweet is truth. We, the people, silent no more. #AntiSec

August 1, 2011 4:56 am via TweetDeckReplyRetweetFavorite

@AnonymousIRC

AnonymousIRC

The idea, they say, is to use cloud computing to monitor and analyze power use at British homes and businesses, as part of an overall plan to reduce the country’s energy use and therefore its carbon footprint.

Several existing wireless players have tossed their hats in the ring to build smart meter systems, including BT, Telefonica and Vodafone. They all want a piece of a big UK government contract that could be worth as much as $14 billion to install smart meters in every home by 2020 as part of a wider plan to reduce its carbon emissions by 80 percent by the year 2050.

IBM and C&W say their plan, which they call the UK Smart Energy Cloud, will gather data many times a day from smart meters around the country and store it in a cloud hosted in the UK. The data would then go to power utilities for analysis, to make sure customers are billed according to their usage.

IBM is also involved in a nationwide smart grid project in Malta and has a hand in a pilot project in Denmark. C&W has more than 1,000 network sites, and many, it says, are located at electrical substations. IBM and C&W would essentially become a middle man, saving UK power retailers from having to make huge investments in computing and communications infrastructure.

The five range in age from 15 to 26 and were arrested in early-morning raids on their homes. They’re accused of being involved in distributed denial-of-service attacks, where groups of users flood a Web site with more traffic than it can handle, thus slowing its performance to a crawl.

!n 2010 the group claimed responsibility for attacks on several Web sites, in apparent sympathy with WikiLeaks–the secret-exposing site that last year unleashed a barrage of previously confidential U.S. diplomatic cables. Targets of Anonymous included the Web sites of PayPal, Mastercard and Visa Europe after those companies stopped financial contributions from going to accounts belonging to the WikiLeaks organization. The action was dubbed “Operation Payback.” The police declined to say which attacks the five arrested are alleged to have taken part in.

Amazon was thought at one point to have been a target when its service went down briefly in December at a moment that coincided with chatter that Anonymous wanted to attack it. The company later said it had suffered a brief hardware problem.

Calling Anonymous a group is a bit misleading. Most of the people who chose to participate in one of its attacks did so by downloading software to their computers called the Low Orbit Ion Canon. Attacks were organized on the channels of Internet Relay Chat, and coordinated orders for all participants to “fire” their weapons were issued on Twitter. The software running on each desktop would then simulate legitimate Web requests to the target site, inundating it with so many requests that it would be overwhelmed and effectively rendered useless.

Earlier this month the group had trained its sights on Web sites belonging to the government of Tunisia, following civil unrest there, and just yesterday it was said to be attacking sites in Egypt.

This is the second round of arrests related to the attacks. Two teenagers in the Netherlands have also been arrested–one said to be connected to the attacks on Visa and Mastercard, the other allegedly involved in an attack on the Web site belonging to a Swedish prosecutor investigating sexual assault charges against WikiLeaks founder Julian Assange.

And speaking of Assange, CBS just announced that he’ll be interviewed by Steve Kroft of “60 Minutes” this Sunday. Here’s hoping that prompts a new Assange sketch from “Saturday Night Live,” like the one below from December.

Mobile messaging is also big, though in most parts of the world young women are far more likely than young men to send text and picture messages. There were some exceptions, such as India, where men were twice as likely as women to send texts and four times more likely to send pictures.

The Nielsen research was conducted in 19 countries, though the report broke out results only for the U.S., UK, India, Italy, Brazil, China, Spain, Russia and Germany. In most countries Nielsen surveyed 5,000 young people, though in the U.S. it surveyed 75,000 youths. In some countries the research was done face-to-face and in others the survey was done online.

In most countries across the globe, young men are more likely than women to have smartphones, though the U.S. is an exception with young women making up 55 percent of smartphone owners between 15 and 24. The adoption of smartphones versus feature phones also varies widely. In India, for example, feature phones outnumber smartphones 9 to 1 among young people, while in Italy smartphone adoption is nearing 50 percent among the younger set.

Advanced data usage was highest in the U.S and China, where about 17 in 20 young people did more than just make calls and send text and picture messages. That type of data use was least common in India, where only 13 percent did so, However, another 51 percent of Indian youths used their phones for text and/or picture messages.

The Nielsen study also looked at other patterns including use of more than one SIM card and whether phones are prepaid or postpaid, although those trends seemed to have more to do with how the country’s cell phone industry is set up as opposed to indicative of trends among youth.

However, when it first happened, many assumed that Anonymous–the loose affiliation of digital troublemakers who last week overwhelmed the Web sites of Mastercard and Visa–was making trouble again. Not so. In a statement to Bloomberg News, Amazon officially blamed the outage on the failure of some of its hardware at a facility in Dublin. Web monitoring service Netcraft has confirmed this by its own independent observations.

Amazon had last week come into the crosshairs of WikiLeaks supporters for its removal of files related to the organization’s leaks of previously secret U.S. diplomatic cables.

And indeed Anonymous had planned to attack Amazon but realized the target was too big and switched to PayPal instead.

Who: David Maher Roberts

What: CEO

Why: David came to The Filter from the publishing world. The Filter used to be a music-selection engine (pre-Apple Genius). Today, after a major overhaul, David says it’s trying to be a recommendation engine that brings “the world of entertainment, filtered for me.” Now The Filter offers that service to businesses that want a recommendation engine on top of their own content services. NBC is the company’s latest major client.

Where: thefilter.com (Web site); @davidpmr (Twitter); Bath, United Kingdom (analog place)

Who Else: Apple’s (AAPL) Genius is trying to supply the service on top of its own content engine in iTunes. Pandora is in the mix too.

Five Stats You Won’t Find in His Facebook Profile:

Man of the World: I don’t know where my accent is from. I’m half French and half English and was raised in international schools in Brussels. I’m a true European.

Started Life: I went into journalism as a photographer. When I was 24, I started a couple of magazines, which didn’t go well, but I got picked up by a U.K.-based publisher (Future Publishing) and moved up their ranks.

Biggest Influence: Chris Anderson, founder of Future Media (David’s former employer) and now of TED.

Real Passion: I was trained as a jazz drummer from the age of 10 and always played in bands and things.

On His Playlist: All based around French Electro Pop. Right now, I’ve fallen in love with Owl City. It represents exactly the sort of music I grew up with in France. It just makes me smile. My staple diet is much more British. Stuff like the Twang. My favorite band of all time is Belle and Sebastian.

Bio in 140 Characters

Lives in Bath, U.K., but began life a citizen of Europe. David commutes globally so his family doesn’t have to.

The Five Questions

Break this down for me. What does The Filter do now, and why is Peter Gabriel involved?

Yeah, so Peter Gabriel was one of our founders and is an investor now. He and our CTO, Martin Hopkins, had the idea about 10 years ago that we would need some kind of tool to help us navigate the world of content when we had too much choice. Our model has changed since then, but we still do basically the same thing. Today, we are basically in the SaaS, software-as-a-service, business. Our technology gets laid on top of other businesses’ content to deliver more relevant recommendations.

A good example is Nokia (NOK). They use us to combine information about your content preferences and your geolocation to give you recommendations about events nearby.

Let’s say I’m listening to music online. How much information about me does my music service need to give you in order for this to work?

Well, what we offer to most of our customers is an anonymous service. We do a lot of personalized services too, though. We can do a good job not knowing anything about the person and just about the session they are in right now. We take input like the piece of music, how many times you’ve listened, whether or not you’ve shared it or saved it to a play list, and then recommend statistically similar content. At its core, our product is a Bayesian inference engine, so it assigns mathematical probabilities to whether or not you will like something and then computes the best fit. We blend the metadata connections with the behavioral connections, and then we filter the output.

I’m a little hazy on how you connect consumers to their data and then make recommendations. You said you do use individual-level data sometimes. Do you guys use data collected from one company to inform the algorithm that recommends content at another?

Well, there are two things we are being careful about, as you’d imagine. Generally, we use data from within an organization to inform the decisions made there. We do anonymize and aggregate all of the data and use that for all of our customers. The individual-level data we try to keep anonymous.

What does a paper publishing guy have to offer a digital recommendation engine?

I came in originally as a consultant to help them with their “come to market” strategy. I was running all of Future Publishing’s Web operations for Europe and stumbled upon Eden Ventures, who are the VCs behind The Filter. I came in, and there was already a CEO. I didn’t realize they were trying to replace him, but we worked on what they should be doing and at the end of it they offered me the job. I would say that I come in from the content and publishing world, and I know how media companies make the kinds of decisions like using a service like The Filter.

What is the eventuality you guys hope for here? Is success in ubiquity or in being bought up?

I think my goal with The Filter is to grow it to be so large that it is the glue that connects people to their content. Once that happens, I think we’d hope for a large business to be so connected to our technology that they want to own it.

The In Living Color Interview

]]> http://allthingsd.com/20100416/almost-famous-david-maher-roberts-of-the-filter/feed/ 0 http://allthingsd.com/20100407/bebo-not-worth-a-pail-of-spit-to-aol-this-comes-as-a-shock-to-exactly-hmm-no-one/ http://allthingsd.com/20100407/bebo-not-worth-a-pail-of-spit-to-aol-this-comes-as-a-shock-to-exactly-hmm-no-one/#comments Wed, 07 Apr 2010 12:20:34 +0000 Kara Swisher http://kara.allthingsd.com/?p=26259

Almost from the minute former AOL head Randy Falco handed over a giant bag of cash to Joanna Shields, the awfully clever chief money charmer of once darling social networking site Bebo, it was clear it was not going to end well.

Essentially, AOL (AOL)–then a unit of Time Warner (TWX)–had forked over $850 million to corner the market on teen girls in the United Kingdom.

Of course, all those girls are now using Facebook.

It was, sorry to say, the peak of the social networking lunacy of early Web 2.0, which is now being bookended by another series of wackadoodle fundings for start-ups by venture capitalists insecurely prompted not to miss the next big thing.

Not much changes. As I wrote about the Bebo deal two years ago in a post titled, “Bebo: By the (Not So Big) Numbers”:

What’s AOL getting for its $850 million in cash to purchase social-networking site, Bebo?

A very attractive social-networking service and a very experienced exec who has been running it.

But, perhaps more importantly for those who focus on pesky numbers, not a whole lot of revenue and negligible profits, judging financial information I got a gander at, courtesy of sources at several companies that looked at funding or buying Bebo.

And the rest of the overall outlook for Bebo? A small but growing business, with nice user engagement with strong page views and minutes spent per session, but little traction beyond Britain and Ireland, and too small a presence in the critical U.S. market.

That was the best AOL got from the deal, as it turned out, as the asset declined and Shields was shuffled out of AOL by new CEO Tim Armstrong (ironically, she’s now running a big chunk of international sales for winner-took-all Facebook).

Now comes the final shoe dropping, with AOL admitting in a filing the glaringly obvious–that it was evaluating strategic alternatives with respect to Bebo, which could include a sale or shutdown of Bebo in 2010.

In a message shared with employees today, the company noted:

The strategy we set in May 2009 leverages our core strengths and scale in quality content, premium advertising and consumer applications, positioning us for the next phase of growth of the Internet. As we evaluate our portfolio of brands against our strategy, it is clear that social networking is a space with heavy competition, and where scale defines success. Bebo, unfortunately, is a business that has been declining and, as a result, would require significant investment in order to compete in the competitive social networking space. AOL is not in a position at this time to further fund and support Bebo in pursuing a turnaround in social networking.

AOL is committed to working quickly to determine if there are any interested parties for Bebo and the company’s current expectation is to complete our strategic evaluation by the end of May 2010.

Quicker translation: Bebo is a dog and it bites.

But the experience is one that will soon be forgotten with the next careless gorging of VC funding.

Not be lost on anyone should be the sudden departure of Jay Adelson as CEO of Digg this past week from the social news site, yet another example of hot going cold in the eyes of Silicon Valley.

At one time Digg and Bebo could do no wrong. Now, no right.

In actuality, neither characterization is correct, but it matters little. In the warped tech perception game, Bebo is apparently dead and it’s time to bury the corpse and move on.

]]> http://allthingsd.com/20100407/bebo-not-worth-a-pail-of-spit-to-aol-this-comes-as-a-shock-to-exactly-hmm-no-one/feed/ 1 http://allthingsd.com/20091116/googlebooks/ http://allthingsd.com/20091116/googlebooks/#comments Mon, 16 Nov 2009 20:40:47 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=29129 Google, the Authors Guild and the Association of American Publishers have submitted a new version of their digital book settlement, and while it makes concessions to the Department of Justice and others who have raised concerns about how it may violate antitrust laws, the proposal doesn’t seem to have appeased all of its opponents. Among the settlement’s changes:

• Orphan works–books whose copyright holders are unknown–will be overseen by an independent trustee who will administer their licensing, not by Google.
• Books published outside the United States, United Kingdom, Canada and Australia will be excluded from the settlement.

Those are substantive alterations, but they clearly haven’t placated critics who accuse Google (GOOG) of attempting an “end-run around copyright law as we know it.”

The Open Book Alliance–a coalition whose members include the Internet Archive, Amazon (AMZN), Microsoft (MSFT) and Yahoo (YHOO)–has blasted the revision twice already, decrying it as “a sleight of hand” intended to distract people from Google’s continued efforts to establish a monopoly over digital content access and distribution.

“The proposed changes fail to address this deal’s fundamental flaws,” Open Book Alliance Co-Chair Gary Reback said in a vitriolic statement. “Despite Google’s effort to spin this deal, it does nothing to promote competition nor does it reform Google’s exclusive access and monopoly hold on this digital database of books. Their proposed ‘unclaimed works fiduciary’ will have zero authority to promote competition or expand access. It is a cynical diversion away from the parties’ continued reliance on the discredited argument that competitors can obtain access through the very means Google did–getting sued for copyright infringement and abusing the class action process. This deal remains rife with anti-trust, class action and copyright violations.”

]]> http://allthingsd.com/20091116/googlebooks/feed/ 0 http://allthingsd.com/20091111/europe-approves-new-cookie-law/ http://allthingsd.com/20091111/europe-approves-new-cookie-law/#comments Wed, 11 Nov 2009 19:27:14 +0000 Marisa Taylor http://voices.allthingsd.com/?p=17733 The Council of the European Union has approved new legislation that would require Web users to consent to Internet cookies.

Cookies, small programs that can be used to track Web movements, have come under fire as consumer groups, including the Federal Trade Commission, have sought to regulate companies that engage in targeted behavioral advertising.

While the current EU telecom law states that cookies are allowed if Internet users are notified of them and have an opt-out option, in practice, the law has been interpreted more loosely. In the United Kingdom, for example, the information commissioner’s office issued a directive emphasizing that sites should clearly direct users to a page where they can opt out.

Read the rest of this post on the original site

]]> http://allthingsd.com/20091111/europe-approves-new-cookie-law/feed/ 0 http://allthingsd.com/20090915/former-intel-general-counsel-now-apple-general-counsel/ http://allthingsd.com/20090915/former-intel-general-counsel-now-apple-general-counsel/#comments Tue, 15 Sep 2009 13:02:26 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=24767 Longtime Intel general counsel Bruce Sewell, who left the company without explanation yesterday, evidently had good reason for doing so: He has taken a new job at Apple. That would certainly explain the “surprise” Intel expressed over his departure. And also why the company was so quick to remove his corporate bio from its Web site.

Sewell joined Intel (INTC) in 1995 as a senior attorney and was named general counsel in 2004. In that capacity, he managed Intel’s antitrust battles in Japan, Korea, the United States and now, the European Union as well. At Apple (AAPL), he succeeds Daniel Cooperman, who will retire at month’s end.

“We are thrilled to have Bruce join our executive team, and wish Dan a very happy retirement,” Apple CEO Steve Jobs said in a statement. “With Bruce’s extensive experience in litigation, securities and intellectual property, we expect this to be a seamless transition.”

It would seem, then, that Sewell’s decision to leave Intel for Apple is more train-hopping than anything else. And while it certainly comes at a lousy time for Intel, it’s not likely indicative of some upset within the company’s legal department.

As Insight 64 analyst Nathan Brookwood told me this morning, “Some personnel changes result from the circumstances of the individuals involved, rather than high level machinations within the organizations to which they belong. Cooperman’s retirement created the opening at Apple, a position Sewell is well qualified to fill. My bottom line: Bruce’s move has more to do with Apple’s need for a top notch lawyer than with Intel’s current legal situation.”

The official announcement, below.

Bruce Sewell to Join Apple as General Counsel & SVP

Daniel Cooperman to Retire

CUPERTINO, Calif., Sept. 15 /PRNewswire-FirstCall/ — Apple today announced that Bruce Sewell, formerly senior vice president and general counsel of Intel Corporation (INTC), will join Apple as the company’s General Counsel and senior vice president, Legal and Government Affairs, reporting to Apple CEO Steve Jobs. Daniel Cooperman, who has served in these roles at Apple for the past two years, will be retiring at the end of September.

“We are thrilled to have Bruce join our executive team, and wish Dan a very happy retirement,” said Steve Jobs, Apple’s CEO. “With Bruce’s extensive experience in litigation, securities and intellectual property, we expect this to be a seamless transition.”

At Intel, Sewell has been responsible for leading all of Intel’s legal, corporate affairs and corporate social responsibility programs, managing attorneys and policy professionals located in over 30 countries around the world. He joined Intel in 1995 as a senior attorney assigned to counsel various business groups in areas such as antitrust compliance, licensing and intellectual property. In 2001, Sewell was promoted to vice president and deputy general counsel, managing Intel’s litigation portfolio, and handled corporate transactions including M&A activities.

Prior to joining Intel, he was a partner in the litigation firm of Brown and Bain PC. Sewell was admitted to the California Bar in 1986 and to the Washington D.C. Bar in 1987. He received his J.D. from George Washington University in 1986, and a Bachelor of Science degree from the University of Lancaster, in the United Kingdom, in 1979.

]]> http://allthingsd.com/20090915/former-intel-general-counsel-now-apple-general-counsel/feed/ 1 http://allthingsd.com/20081127/european-head-toby-coppel-departs-yahoo/ http://allthingsd.com/20081127/european-head-toby-coppel-departs-yahoo/#comments Thu, 27 Nov 2008 16:01:38 +0000 Kara Swisher http://kara.allthingsd.com/?p=7005

Yahoo is losing yet another top executive–Toby Coppel, its EVP and managing director of Europe and Canada, is set to announce today that he is stepping down.

The departure, which has been in the works for months, is not related to the recent news that Yahoo CEO Jerry Yang is also relinquishing his job as soon as the company completes its search for another CEO.

Coppel’s job covers the major Western European markets (United Kingdom, France, Germany, Italy, Spain, Scandinavia), as well as Canada, for Yahoo (YHOO).

His successor will be Rich Riley, who is currently SVP of Europe’s Advertiser & Publisher Group, which put him in charge of all revenues for the division. Riley, who came to Yahoo a decade ago, was previously the head of Yahoo’s Small & Medium Business Group in the U.S.

Coppel, who came to Yahoo with former Yahoo CEO Terry Semel in 2001, has run European operations for Yahoo for 18 months. And most of his time has been spent restructuring and making massive cuts.

The unit will have about one-third of the people as when Coppel arrived by the first quarter, after the current round of layoffs. And, if you include Yahoo’s sale of the comparison-shopping site Kelkoo last week, the cuts total 45 percent of its former size.

Coppel also shepherded the move of Yahoo’s European HQ to Switzerland from higher-priced London. Most of its top managers are now located there, although London remains an important Yahoo outpost, since it is the largest online ad market in Europe.

Coppel will remain with Yahoo until the end of the first quarter to ensure a smooth transition. He told BoomTown in an interview that his future plans are undetermined, except to welcome his third child into the world very soon.

“I have been transitioning our European business, restructuring it and making it stronger, as Yahoo is moving to product development on a global platform,” said Coppel. “While there is more work, there is now a strong team in place, focused on going forward and it needs to spread its wings.”

Coppel noted, although a lot of his tenure was occupied by restructuring the European unit, that “we have taken display advertising market share from MSN, AOL and other competitors in almost every one of our European markets in 2008 and we grew our Canadian business over 50 percent this year.”

And, indeed, Yahoo’s online display advertising business is stronger in Europe, although subject to the same vicious economic downturn that has hit the U.S. market.

In addition, Yahoo–and everyone else–lags well behind Google (GOOG) in the more lucrative search business in Europe, even more so than in the U.S., forcing competitors like Yahoo to streamline to compete.

That has meant layoffs, but also re-architecting Yahoo’s product development toward a global model to cut costs and also getting rid of some noncore assets like Kelkoo.

It was revealed last week that Kelkoo was sold to a U.K.-based private equity firm called Jamplant, at a reported discount from what Yahoo paid for it–$576 million–in 2004.

Now that all these kinds of major changes were made, Coppel said, it seemed a good time for him to go too.

“My value add-was not what it was going forward,” said Coppel, who noted that several layers of management in Europe had been collapsed in his tenure. “If we are streamlining and we mean it, it has to also start at the top.”

]]> http://allthingsd.com/20081127/european-head-toby-coppel-departs-yahoo/feed/ 4 http://allthingsd.com/20081127/the-entire-internal-yahoo-memo-on-european-head-toby-coppels-depature/ http://allthingsd.com/20081127/the-entire-internal-yahoo-memo-on-european-head-toby-coppels-depature/#comments Thu, 27 Nov 2008 16:00:57 +0000 Kara Swisher http://kara.allthingsd.com/?p=7100

Here’s the internal Yahoo memo from President Sue Decker about the stepping down of Yahoo European head Toby Coppel, which BoomTown wrote about here.

The departure, which has been in the works for months, is not related to the recent news that Yahoo CEO Jerry Yang is also relinquishing his job as soon as the company completes its search for another CEO.

Coppel’s job covers the major Western European markets (United Kingdom, France, Germany, Italy, Spain, Scandinavia), as well as Canada, for Yahoo (YHOO).

His successor will be Rich Riley, who is currently SVP of Europe’s Advertiser & Publisher Group.

Here’s the memo:

From: Sue Decker
To: XXXX
Sent: Thu Nov 27 09:02:28 2008
Subject: Yahoo! Europe & Canada update

Yahoos,

I want to update you on our Get Fit initiatives in Europe and Canada and to announce a leadership change for Yahoo! Europe and Canada.

Over the past 18 months, under Toby’s leadership, the Agenda2010 strategy has resulted in greater discipline, focus and stronger operating performance in Europe and Canada. There have been a number of important accomplishments and milestones in this time specifically:

• Market share gains in our display business in all markets over the past 12 months
• Growth in the Canadian display business of over 50% in 2008
• Shift towards a global development approach for Front Page, Search and Mail
• Elimination or divestiture of underperforming or non-core businesses such as Kelkoo which was sold last week
• Increased efficiency and higher margins, including reductions in headcount, travel & entertainment and marketing costs
• Establishment of new Switzerland HQ for greater business efficiency
• Higher performing sales organization including a Superstar Inside Sales Team
• Reduction in the number of layers and increase in spans of control

Now that much of this foundation has been built, Toby and I agree it’s a logical time to transition to a more focused management team in Europe. Today I am announcing that Toby will be stepping down as MD Yahoo! Europe & Canada.

I am very pleased to tell you that effective immediately, Rich Riley will assume the position of SVP, Yahoo! Europe & Canada. Toby will work closely with Rich to ensure a smooth transition and will remain with Yahoo! until the end of Q1 2009.

Rich has been with Yahoo! for almost ten years, during which he has held a wide range of roles and ever increasing responsibilities. He joined Yahoo! when we acquired the startup he co-founded which ultimately invented the Yahoo! Toolbar. From there he played important roles in corporate and business development, building and leading our U.S. small and medium business division and most recently leading our Advertiser & Publisher Group in Europe. He has worked closely with Toby and the European and U.S. leadership teams to shape the strategy and has delivered powerful results to our European business. I’m confident that Rich will be a strong and successful leader for Yahoo! Europe and Canada.

Under Rich’s leadership, Europe will continue on the path it has been on for the last year. This transition is a continuation of the Agenda2010 work that is underway.

Please join me in welcoming Rich to this new role and thanking Toby for his leadership, passion and tireless contributions to Yahoo! over the past 7 years.

Sue

]]> http://allthingsd.com/20081127/the-entire-internal-yahoo-memo-on-european-head-toby-coppels-depature/feed/ 2 http://allthingsd.com/20081027/how-not-to-run-a-big-music-company-a-tutorial-brought-to-you-by-a-big-music-company/ http://allthingsd.com/20081027/how-not-to-run-a-big-music-company-a-tutorial-brought-to-you-by-a-big-music-company/#comments Mon, 27 Oct 2008 17:25:08 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=70

Even people who don’t know anything about the music business know what’s wrong with music business: No one wants to buy music anymore.

Right?

Well, sort of.

While people are buying a lot less music than they used to, they’re still spending a couple billion dollars a year on iTunes from Apple (AAPL) and the like, and many billions more on actual, hold-in-your-hand compact discs.

So in theory, at least, a well-run company should be able to do something with a market that big.

That company, at least for the last several years, has not been EMI Music Group. That’s not just in MediaMemo’s judgment, by the way. That’s the judgment of EMI Music’s owners: The United Kingdom’s Terra Firma private equity group, which bought the company for some $5 billion in the summer of 2007.

Terra Firma’s assessment of the company, delivered via a 101-page annual report, makes for amazing reading. We’ve embedded it below (you’ll need to click on “Full Screen” to make it legible).

But in case you’re time-pressed here’s the executive summary:

• EMI has a relatively valuable publishing company, which administers the copyrights to the underlying compositions to songs. That unit makes money.
• EMI also owns a valuable catalog of song recordings. That unit could make money, but it’s all being eaten up by the group that burns money by signing and recording artists who make new recordings that no one wants to buy.
• Terra Firma knew EMI was badly run when it bought it, but it didn’t really know how badly run it was until it owned it. It figured, for instance, that there was a lot of waste at the company. But it had no idea the U.K. division was spending $1.1 million a year on a London taxi service. And it had literally no idea how much money some of EMI’s executives were making, because EMI wouldn’t disclose that during due diligence.

This last part is crucial for EMI’s future because the people who funded the deal last year–Terra Firma’s investors, as well as Citigroup (C), which provided the debt financing–need to be convinced that the people who didn’t understand what they’d bought last year are the people who should be trusted to turn it around.

But that’s a question for later. For now, if you want to see how a music company managed to lose $1.17 billion in 12 months, this is the document for you:

EMI report – Get more Business Documents

[Image Credit: Lorelei]

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