after 1st quarter losses
[new york] Cutbacks of up to $100 million are expected by some CBS insiders, and a hiring freeze may be instituted as well. Network parent Westinghouse Electric Corp. lost $151 million in the first quarter, primarily due to poor performance by the CBS network and TV station group. The point man for the cuts is expected to be Bill Korn, exec VP-strategic planning, business development and broadcast operations at CBS. A CBS spokesman said Mr. Korn's mandate is "to look at how the company is organized and running, including its cost structure, as well as ways to generate revenue," but characterized the $100 million figure as a rumor.
Merged ValuJet, AirTran
sets $22 mil review
[atlanta] As ValuJet's merger with AirTran Airways is under way, ValuJet said it will soon conduct an "internal review" for its $22 million account. Hughes Advertising, Atlanta, currently handles ValuJet, and Fry/Hammond/Barr, Orlando, has the $3.7 million AirTran business. An executive close to the airline said ValuJet may select Cramer-Krasselt, Milwaukee. A Cramer spokeswoman said the agency has sought an airline client after its loss of Southwest Airlines, but was unaware of a decision. The ValuJet brand is expected to change to AirTran or another name once the merger is complete by fall.
Columbia TriStar sends
$30 mil more to McCann
[los angeles] McCann-Erickson Worldwide, Los Angeles, has landed about $30 million in additional media buying from client Columbia TriStar Pictures Group. Last year the studio spent $228.7 million through McCann, according to Competitive Media Reporting. Terrence Powers, senior VP-management representative, has relocated from McCann in New York to Los Angeles to manage the retail portion of the studio's account.
Fox likely to bite back at Disney
[los angeles] Insiders at Fox Broadcasting Co. expect the company to retaliate for the decision by Walt Disney Co.'s ABC not to allow Twentieth Century Fox to advertise its upcoming "Anastasia" during "The Wonderful World of Disney." "I would expect Fox not to allow Disney to advertise during Fox's kids programming," said one studio insider, though, officially, Fox said it has not yet barred Disney. In a similar move, the WB network will not allow advertising for Nickelodeon's "Good Burger" movie because it won't allow the Nickelodeon logo to appear.
McNeil gives Motrin IB to Saatchi unit
[fort washington, pa.] McNeil Consumer Products Co., a division of Johnson & Johnson, has awarded its Motrin IB analgesic to Saatchi & Saatchi Advertising's Healthcare Connection, New York. The account was up in the air since the company acquired Motrin IB from Pharmacia & Upjohn last month. Spending is expected to increase from 1996's $20 million to $25 million. The previous agency was W.B. Doner & Co., Southfield, Mich. Ammirati Puris Lintas, New York, will continue to handle McNeil's Children's Motrin.
Ameritech moves $100 mil to Ammirati
[chicago] Ameritech named Ammirati Puris Lintas, New York, to handle its $100 million consumer, business and brand accounts. BBDO Worldwide, New York and Chicago, was the other finalist. The previous agencies were Leo Burnett USA and DDB Needham Worldwide, both Chicago, and Fallon McElligott, Minneapolis.
TBWA readies deal for E. European shop
[vienna] TBWA International will announce a deal this week to buy Hager, an Eastern European agency network, to expand its presence there under the TBWA name. Hager already handles two big TBWA clients,German personal and household products marketer Henkel and Italian confectioner Ferrero.
Power Computing sends $12 mil acc't to GSD&M
[round rock, texas] Power Computing Corp. named GSD&M, Austin, to handle its $12 million account following a pitch against finalist Richards Group, Dallas. Bam!, Austin, formerly handled.
American Lawyer Media to be sold for $70 mil
[new york] Cranberry Partners, a new investment fund managed by Wasserstein Perella & Co., has signed a letter of intent to purchase American Lawyer Media from Time Warner for a reported $70 million. The sale doesn't include Court TV, which Time Warner will retain, but does include flagship The American Lawyer, several regional legal newspapers and an on-line service. American Lawyer founder Steven Brill is launching a new magazine, tentatively titled Content, that will scrutinize the media.
Microsoft buys minority stake in Progressive Networks
[redmond, wash.] Microsoft Corp. is buying a minority stake in Progressive Networks, bolstering Progressive's RealAudio and RealVideo as Internet sound and video standards. Microsoft also will make some of its technology compatible with Progressive's software.
L'Oreal Plenitude FUTUR.e, a new mass-market moisturizer with vitamin E, bows in stores in September. A $20 million TV and print campaign via Publicis/Bloom, New York, is planned for October. . . . Wired Ventures is looking for a new CEO to replace co-founder Lou Rossetto, who will remain as chairman. Mr. Rossetto will continue as editor-publisher of Wired, as well as chief creative officer and director of new-product development. . . . PeopleSoft to Saatchi & Saatchi Advertising, San Francisco, from W.B. Doner & Co., Baltimore, for the $5 million to $6 million software account. . . . Wells Rich Greene BDDP, New York, and parent company, Wells Rich Greene BDDP Communications, are changing their names, effective July 28. As part of a move to new headquarters in New York, the agency will become Wells BDDP and the holding company will be called BDDP North America. . . . Domaine Chandon to DiNoto/Lee, New York, as agency of record for its estimated $3 million account for Brut Cuvee, Blanc de Noir and Reserve wines.