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The folly of WBBR

While the station has always been a blip on the screen, many talented people, including Mitch Lebe and Jerry Barmash, were let go as Bloomberg radio downsized in the face of tough economic times.

If there is ever a company that was (and still is) living the lavish lifestyle, it was Bloomberg.

Years of living with the income of the entire Bloomberg empire allowed WBBR to be the radio equivalent of a tree falling in the forest without a witness. Then came "Plan B".... a restructuring of the Bloomberg empire that became a case of "survival of the fittest". Plan B was kicked off with a multi-million dollar concert in the plaza outside Bloomberg. Nothing like telling divisions about money saving plans by spending on this while a memo and booklet would have done the same thing.

It turned out, radio was not fit. Despite this, management continued to allow such luxuries as car service for employees off-hours, a fully stocked snack bar, lavish and expensive lighting and carpets that were changed every few months.... bathrooms remodeled almost annually, fish tanks loaded with thousand dollar specimens... grand scale for the grand ego of Mike himself.

Instead of being conservative (and proper money management), the company spent like a man who was told he was dying in 30 days. Then suddenly there was no money. And more than 60 people are gone.

This is the company run by the man who is guiding NYC thru these tough economic times... the same city where $126,000 per year is the monetary equivalent to $52,000 in Houston and $26,000 in Atlanta. Not only has Bloomberg ruined the quality of life in NYC, he has sucked any success out of Bloomberg radio, by his culture and the managers he has place in charge to run the show.

At WBBR the emperor had no clothes and he finally stepped in front of the mirror.
 
Thank you! It boggles the mind how this guy continues to enjoy such a strong reputation, as a politician and a businessman.

We've seen similar things with his "leadership" of the city through the "financial crisis," which has included spending $60 million on the "waterfalls."

And before anyone here comes and says that Bloomberg has no control over what's going on at his company...I say BS. How do you explain former city government folks like Dan Doctoroff getting nice, cushy jobs in the company after leaving city government, with Bloomberg still mayor?

The guy is a fraud, plain and simple.
 
wgliradio said:
It turned out, radio was not fit. Despite this, management continued to allow such luxuries as car service for employees off-hours, a fully stocked snack bar, lavish and expensive lighting and carpets that were changed every few months.... bathrooms remodeled almost annually, fish tanks loaded with thousand dollar specimens... grand scale for the grand ego of Mike himself.

One thing to remember is that the company and its subsidiaries are private property. And like all the other owners of private property, Mr. Bloomberg's world changed with the mortgage crisis and the ensuing recession... none of which was his fault.

Another thing to remember is that all that carpeting and all those snacks and such created, of themselves, jobs. The carpet millers, the carpet installers, the bakers of the free bagels, all depend on someone buying their products and services. Every dollar spent goes, in a good part, to labor. Every one of those luxuries and perks has a ripple effect in the economy.
 
DavidEduardo said:
One thing to remember is that the company and its subsidiaries are private property. And like all the other owners of private property, Mr. Bloomberg's world changed with the mortgage crisis and the ensuing recession... none of which was his fault.

Private property it may be. However, you can't deny that the man's personal fortune has increased during the time he's been in power. That's not a bad thing by itself. But couple that with his position as the ruler of a recession-bitten municipality -- it portrays him and his friends (who run the company) as extremely out of touch with what's happening all over town.

By virtue of his underlings' actions, Mike Bloomberg is directly responsible for contributing to the rising unemployment of this city -- don't forget, he is still majority owner of Bloomberg LP and WBBR.

There are ways to cut costs in a business without necessarily killing off the very thing that your business is based on -- and in this case, it's financial information.

I've said way too much already.
 
StephanieNYC said:
There are ways to cut costs in a business without necessarily killing off the very thing that your business is based on -- and in this case, it's financial information.

If however you perceive a change in the marketplace (and it has), and you make a few changes that will help you adapt to the changing marketplace, what's wrong with that?

Clearly the means by which companies obtain and report financial information is changing. Those who use financial information are in a lot of trouble and can't pay for subscriptions the way they used to. So the house of cards, built on subscriptions, begins to teeter. The smart play is to cut costs until your core business returns.
 
One thing to remember is that the company and its subsidiaries are private property. And like all the other owners of private property, Mr. Bloomberg's world changed with the mortgage crisis and the ensuing recession... none of which was his fault.

Private property it may be. However, you can't deny that the man's personal fortune has increased during the time he's been in power. That's not a bad thing by itself. But couple that with his position as the ruler of a recession-bitten municipality -- it portrays him and his friends (who run the company) as extremely out of touch with what's happening all over town.

If we believe those magazines that estimate wealth, Mr. Bloomberg's "empire" is among the harder hit and the valuation is off nearly 50%. The prime users of his services is the financial sector, which needs fewer terminals, etc., than at any time in the last decade.

There are scant few who are not affected by the rougly 40% decline in the equity markets... or the similar declines in the housing and real estate markets... meaning just about everyone has lost, from the smallest pension or 401k to warren Buffet.

By virtue of his underlings' actions, Mike Bloomberg is directly responsible for contributing to the rising unemployment of this city -- don't forget, he is still majority owner of Bloomberg LP and WBBR.

And business is way off, particularly in that sector. He is not unique in cutting staff to save the enterprise.

There are ways to cut costs in a business without necessarily killing off the very thing that your business is based on -- and in this case, it's financial information.

When both revenues and underlying values are off, there is not much in the way of alternatives.
 
David

This is a company that BLEEDS money on perks and extras. In the lobby is a $1 million chandelier that flahes, in morse code, WBBR New York 24/7/365. Artwork costing tens of thousands of dollars that is changed out every few months. Carpeting that is changed every 6 months or so... and not the cheap stuff. Dot matrix displays on the size you would see in major arenas... car service for every full time employee from 7pm-6am 7 days week. Multi-million dollar presentations for staff meetings.

There was a story in the old place about a hallway built to connect two parts of the operation. Not just a simple hallway, the hallway cost almost 2 million to construct with special lights, TV screens, music, fishtanks. The project was almost complete when Mike himself didn't like how his final vision was going and ripped it out to start over.

I understand laying off people when a company has made legitimate business mistakes... but everyone at WBBR was wondering when the balloon was going to pop. The big problem is that WBBR continues to offer car service, change the carpets and lights even AFTER these layoffs. The money taken for this could have been put back into the operation to employ people to at least try and create radio, instead of Bloomberg TV 16 hours a day.
 
wgliradio said:
I understand laying off people when a company has made legitimate business mistakes... but everyone at WBBR was wondering when the balloon was going to pop. The big problem is that WBBR continues to offer car service, change the carpets and lights even AFTER these layoffs. The money taken for this could have been put back into the operation to employ people to at least try and create radio, instead of Bloomberg TV 16 hours a day.

Hmmm...and the conventional wisdom is that Citadel and CC are the bad guys because only the top executives get perks. This sounds like a more democratic place where employees got to share in the fruits. And that approach isn't good either.
 
TheBigA said:
wgliradio said:
I understand laying off people when a company has made legitimate business mistakes... but everyone at WBBR was wondering when the balloon was going to pop. The big problem is that WBBR continues to offer car service, change the carpets and lights even AFTER these layoffs. The money taken for this could have been put back into the operation to employ people to at least try and create radio, instead of Bloomberg TV 16 hours a day.

Hmmm...and the conventional wisdom is that Citadel and CC are the bad guys because only the top executives get perks. This sounds like a more democratic place where employees got to share in the fruits. And that approach isn't good either.

They certainly don't get to "share in the fruits" if they've been fired. Why don't you ask them what they would prefer: a place to work, or a former place of employment that continues to install expensive carpeting for the remaining workforce every six months?
 
neo11 said:
TheBigA said:
wgliradio said:
I understand laying off people when a company has made legitimate business mistakes... but everyone at WBBR was wondering when the balloon was going to pop. The big problem is that WBBR continues to offer car service, change the carpets and lights even AFTER these layoffs. The money taken for this could have been put back into the operation to employ people to at least try and create radio, instead of Bloomberg TV 16 hours a day.

Hmmm...and the conventional wisdom is that Citadel and CC are the bad guys because only the top executives get perks. This sounds like a more democratic place where employees got to share in the fruits. And that approach isn't good either.

They certainly don't get to "share in the fruits" if they've been fired. Why don't you ask them what they would prefer: a place to work, or a former place of employment that continues to install expensive carpeting for the remaining workforce every six months?

They don't make that choice. My point is it's in the eye of the beholder. Over at CC, they worked in a dump, worked long hours, got paid bad, and still got fired. At least it was fun for a while, no?
 
TheBigA said:
Hmmm...and the conventional wisdom is that Citadel and CC are the bad guys because only the top executives get perks. This sounds like a more democratic place where employees got to share in the fruits. And that approach isn't good either.

Instead of firing people, they should do away with the perks first and adjust based on those savings. They have more fat than Jabba the Hutt.
 
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