Morgan Stanley to pull ads from 'negative' newspapers

[Bozita]

alternate title: How ad revenues influence the "news"

http://news.independent.co.uk/business/news/story.jsp?story=639748

Morgan Stanley to pull ads from 'negative' newspapers

By Katherine Griffiths in New York

20 May 2005


Morgan Stanley, facing an unprecedented barrage of criticism, has told newspapers that its advertising decisions could be affected by overly negative coverage on their pages.

The beleaguered investment bank has added a new clause to its advertising contract that asks publications notify its advertising agency of any planned "objectionable editorial coverage", so that ads can be removed or placed in a different part of the newspaper or magazine.

The move comes as Morgan Stanley's chief executive, Philip Purcell, is under pressure from a group of former senior executives to resign. The bank has also been ordered to pay $1.45bn (£790m) to Ron Perelman, an American billionaire investor who accused the bank of defrauding him over a business deal.

-snip-

Morgan Stanley, which has been used to positive coverage as one of Wall Street's most successful investment banks, may have not seen the need for such protection until now. It emphasised it was not planning to boycott publications altogether, but only to move an advert from appearing next to a negative article, or to delay it by a few days.

-snip-

more...

[KlatooBNikto]

1. The floggings will continue until morale improves.

[KlatooBNikto]

2. Or, Grab Them By Their Balls and Their Hearts and Minds will Follow.

[dArKeR]

3. I was ripped off my Dean Witter, which became MS. In the 80s they pushed

"Limited Partnership" investments. I got in CENCOM Cable a few years before the media industry took off. Then is took off for years. It was time to liquidate the partnership and I lost money. My brokers told me I lost only 20% over 7 years compared to "everyone else" who bought the MS LP's who lost mostly everything.

It was a scam between MS and American Whore Corporations.

[Bozita]

4. Even after Sarbanes/Oxley, I still don't trust 'em

[dArKeR]

6. I forgot one point: I bought into CENCOM Cable at its lowest and it

liquidated at one of the highest points of the media frenzy when EVERY holding was up hundreds to thousands of percent. Then oops, lost 20% in some kind of scam! I guess we should blame it on the Liberal Press!

When the SEC does make some kind of case and settlement how come we, investors, never see a dime? It's only the corrupt Fed. Gov. who pulls in a little fine and keeps it.

[UpInArms]

5. LOL!

I guess if they hadn't given bad advice regarding Chainsaw Al and his lovely hatchet job to Perelman, they wouldn't be getting such bad press.

Wasn't the last company to pull advertising because they didn't like the editorials GM from the LAT?

Hmmm.... and just after that wasn't GM declared "junk"?

Wonder what the MS stock will be declared?

:rofl:

[Voltaire99]

7. Hee hee, too true

Usually, this kind of extortion isn't conducted so blatantly. But they're getting pretty desperate at MS.

[Bozita]

8. Perelman offered to settle before the trial for $20 Million

MS refused.

Remember: these decision makers for MS "earn" bonuses for their masterful work.

[ausiedownunderground]

9. Anything "Chainsaw Al Dunlap" touches turns to...........SHIT!

Chainsaw Al is still wanted in OZ for some serious questioning over deals he set up here for our second media mogul Kerry Packer's organization Consolidated Press. I remember when he did his runner to Sunbeam in the late 80's after the stock market crash, everybody was commentating on how quickly "Fucked" Sunbeam would become!!!

[Bozita]

10. and newspaper circulation is shrinking -- ad revenue is critical to ....

... survival.

"Write it my way or write your epitaph."