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Alliance for Royal Philips and AOL Time Warner

AOL Time Warner and Royal Philips Electronics July 12 announced a three-year $100 million global alliance to develop interactive shopping destinations for Philips' consumer electronics and personal care products. The cross-platform media pact is one of several high-profile media arrangements that AOL Time Warner has pulled off in recent weeks as it moves to lock in lucrative assets. The Philips deal has been in the works since late last fall. The deal is not considered part of Philips' recent $600 million global media consolidation under Aegis Group's Carat, though executives indicated that as it evolves, the media agency will oversee planning functions related to it. The formal affiliation with AOL Time Warner will enable Philips to promote its products and services within a rich-media environment, something consumer electronics marketers have been struggling to do on their own and with partners for some time.

UPS shifts $30 million account to Martin Agency

United Parcel Service of America shifted its estimated $20 million to $30 million direct-marketing account to Interpublic Group of Cos.' Martin Agency, Richmond, Va., which already handled general advertising creative, from Omincom Group's Rapp Collins Worldwide, Chicago. The account move represents an Interpublic consolidation for UPS, with creative at Martin Agency, media at Lowe Lintas & Partners, New York, and international work through McCann-Erickson Worldwide, London. The UPS account shift coincided with Rapp Collins' downsizing of its Chicago office, resulting in the transfer of the office's accounts to its larger Dallas and New York operations. Last week, Rapp Collins lost direct-response reviews for Brink's Home Security and Cingular Wireless, which were awarded to Interpublic's DraftWorldwide, Chicago, and Omincom's Targetbase, Irving, Texas, respectively.

Isaacson to CNN, Huey replaces him at Time Inc.

Wasting little time after losing Editorial Director Walter Isaacson to the chairmanship of CNN on Monday, Time Inc. July 10 named John Huey as his replacement. Mr. Isaacson, 49, is charged with turning around AOL Time Warner's flagging network news pioneer CNN as chairman-CEO of its CNN News Group. He takes over from Tom Johnson, who retired abruptly last month.

Mr. Huey's move, announced by Time Inc.'s Editor in Chief Norman Pearlstine, comes with some shuffling of top editorial responsibilities for the company. Mr. Huey, Mr. Pearlstine wrote, will be editorial director "in name and fact" for Time Inc.'s portfolio. Mr. Huey, 53, was most recently editor of Fortune, with broad responsibilities for Time Inc.'s four other business titles.

Bcom3 posts increase in first-quarter revenue

Bcom3 Group posted a 17.4% increase in revenue in the first quarter to $447.2 million from $380.8 million in the same period in 2000, according to a report filed with the Securities and Exchange Commission. The company also posted net income of $2.6 million for the quarter, compared to a $64.8 million loss in 2000 due to a $71.9 million charge related to the merger of Leo Group and the MacManus Group. The holding company began filing regular reports with the SEC this year, after it met the agency's requirement of 500 or more shareholders

Muse Creative plans to launch IPO this year

Muse Creative Holdings announced July 11 it plans to go public later this year. The company said it filed papers with the Securities and Exchange Commission for an initial public offering of stock. The multicultural marketing company's properties include ad agency Muse Cordero Chen & Partners, the Esperanto Group, a consulting firm, and Rainbow Research, a multicultural research company.

McDonald to replace Berndt at P&G division

Procter & Gamble Co. announced July 12 that Wolfgang Berndt, 58, president-global fabric and home care, will retire Sept. 1. His successor, Robert A. McDonald, 48, has been elected to assume the post immediately. The move, widely anticipated since Mr. McDonald was promoted to president-global fabric care last year, is the latest stop in his rapid rise during the past two years. Long seen by company observers and insiders as a key protege of P&G President-CEO A.G. Lafley, Mr. McDonald will now head P&G 's largest global business and becomes a front-runner to ultimately succeed Mr. Lafley as CEO.


Avon Products announced it is scrapping the launch of its "beComing" line of cosmetics in 125 Sears, Roebuck & Co. stores this fall, citing a strategy shift by Sears, which is de-emphasizing cosmetics. ... Horizon Media has acquired the client list of Catalyst Media, which will be closing its doors as a media agency. The deal, announced July 9, was estimated to be worth $70 million in additional billings for Horizon, an independent shop that already claims some $750 million in billings. ... Deutsche Telekom is moving international advertising for its cellular phone division T-Mobile to Publicis Groupe's Saatchi & Saatchi, Frankfurt. Last year, Deutsche Telekom spent $150 million to launch T-Mobile.

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