Law And More

Mergers = Big Business for Law Firms, But Most Fail: Will Disney + 21st Century Fox Become "Iger's Folly"

Mergers create redundancies. That's why employees fear them. The new entity doesn't need two legal departments or two investor relations units.

However, mergers provide high-margin transactional assignments for law firms. And more businesses are engaging in them to scale - or simply survive in a hyper competitive marketplace.

According to Deadline Hollywood, the deal that brings together Disney and 21st Century Fox, though, could result in 4,000 layoffs. 

As yet, the brass at both companies have not meet with employees to explain where and when the manpower cuts will occur. So, although the deal's architect Bob Iger is doing all kinds of positive spin, employees are likely to be mighty anxious.

Actually, Iger himself should be quaking inside.

Depending on who's doing the counting, 50% to 85% of mergers fail. Not often is new value created and along the way the old value can be destroyed. Recall when Compaq merged with HP. Disaster. Things didn't turn out too hot either for the Time Warner and AOL merger. 

It is rare that the planned synergy (1+1 = 3) pans out. Usually it's simply too hard to fuse distinct cultures, political power systems, and even technologies. Meanwhile, the employees in both companies are on the brink of hysteria. This is usually captured in their anonymous comments on Glassdoor.

Given the high cost of the Disney and 21st Century Fox merger, this one will be closely watched by constituencies ranging from management consulting firms to the media. If it doesn't get off the ground it could become known as "Iger's Folly."

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Fox and Jones Day - The Trump Association

Today Disney closes the deal. It is purchasing, for $71.3 billion, 21st Century Fox assets.

And, according to Gabriel Sherman's analysis in Vanity Fair, that means the Lachlan Murdoch era hicks off at Fox News.

Here is the bombshell in Sherman's take: Lachlan, as CEO of Fox, could see his role as getting that television network ready for sale. It could be too small a business entity to operate as a stand-alone. 

Sherman is highly credible. For years he had been the go-to journalist for information and insight on both the founder of Fox News - Roger Ailes - and Fox itself. He had developed a deep pipeline of sources within Fox. Not everyone was a loyal Ailes soldier.

In 2014, Sherman published that negative best-selling Ailes biography "The Loudest Voice in the Room."

That seemed so threatening to those in the Ailes allies loop, that Ailes' personal public relations representative Bob Dilenschneider plowed $15k in publicity, on a supposed stealth basis, for a vanity biography.

Intended as a distraction, the Machiavellian move backfired. When the Dilenschneider caper was outed by the media, both Sherman and his book received even more attention. It was the must-read. However, it contained only a hint of possible sexual misconduct by Ailes. That was to be a whole other story which precipitated the end of Ailes.

Sherman still has unique sources within Fox. What they tell him is that Lachlan might have been waiting until the close of the Disney deal to start reshaping Fox. To do so when the deal was still in play could have attracted the retaliation of Donald Trump. And, according to Sherman, Lachlan, as well as other Murdochs, is not a devoted Trump supporter. 

The reshaping would be in the direction of a reduction of alt-right aka pro-Trump rhetoric from Jeanine Pirro, Sean Hannity, and Lou Dobbs. The Fox brand would become more middle-ground - and appeal to a larger group of potential buyers. 

Meanwhile, though, Lachlan knows the network has to make scale revenues and profits. Advertisers, Sherman tells us, have been complaining about the seemingly too-close Trump association. Money talks. And that advertiser unhappiness could have become the new loudest voice in the room. The voices at Fox supporting Trumpism could become muted.

There is speculation that the shift from hard right to middle will motivate Hannity to leave. Conservative media is big. He is also big. He could find a high-paying home elsewhere. But others such as Pirro and Dobbs could wind up as symbols of a time long passed. Will they be forced out and be unable to land comparable work? They are also aging on air personalities. Age bias is very real in glam professions such as media. 

The Murdochs are very smart. They might be anticipating the end of the Trump Administration and want to duck being crushed by it.

On the other hand, the collapse of Trump Everything could hurt the Jones Day law firm brand. It has become the go-go counsel for so many legal matters involving Trumpism.

Former White House head lawyer Don McGhan, who had been a Jones Day partner, has returned to Jones Day. About a dozen former Jones Day lawyers hold jobs in federal government. That might be labeled "The Jones Daying of U.S. government."

Takeaway: What happens at Fox could be a microcosm about what could shift in the U.S. brand of conservatism. 

Need affordable help strategically planning and putting together content? That ranges from blog posts and e-books to planning/scripting podcasts and creating traditional speeches. Complimentary consultation on how to generate influence and sell without paying high rates, janegenova374@gmail.com. 

Like Ted Bundy, Brenton Tarrant Chooses to Represent Himself

Suspect in the massacre of 50 people in New Zealand - Brenton Tarrant - has decided to represent himself. He fired his lawyer Richard Peters. Here is the media coverage.

So far, Tarrant has been accused of one count of murder. But many more could be added.

Another notorious murderer - Ted Bundy - also opted to represent himself. Yes, he had been a former law student. However, my hunch is that he went the pro se route in order to turn the courtroom into his show. He was in full theatrical ontrol. He exploited that by proposing marriage to a witness who accepted that offer.

Like Bundy, Tarrant can leverage the trial for his own purposes. At the top of the list could be to showcase his extremist views. It will be up to the judge how much of that will go on.

Need affordable help strategically planning and putting together content? That ranges from blog posts and e-books to planning/scripting podcasts and creating traditional speeches. Complimentary consultation on how to generate influence and sell without paying high rates, janegenova374@gmail.com. 

 

When First Daugthers Are No Longer in Protected Category

First, Bill Clinton rubbed a lot of people the wrong way. The return of Monica Lewinsky to the media resurrected memories of The Intern, The Starr Report, and The Impeachment.

Hillary Clinton has never been a masterful politico. During her two unsuccessful runs for president she made a lot of the wrong moves.

Both are fading from the spotlight.

But they leave behind their daughter Chelsea Clinton as scapegoat. Like her mother, she has no presence. She isn't skilled as a charmer.

So, she is quite the convenient target.

Last night the members of the media gleefully piled on.

It was at the NYU grieving event for the New Zealand victims of what appears to be a hate massacre. Student who is a senior Leen Dweik was the loudest voice in room (and on streaming video).

She accused Chelsea of stirring the cauldron of hate. Specifically, it was Chelsea's accusations that U.S. House Representative Ilham Omar's remarks were anti-Semitic. Here, in the New York Post, is an example of the coverage.

The target, lacking her father's pull force with people, was unable to push back. She offered the kind of apology that intensified the attack.

Of course, there has been an outbreak of tweets. Some were supportive of Chelsea. Others recommended that she get the hell off the national stage. She simply doesn't have what the role demands.

The next few months experts in politics and public relations will be closely following and interpreting Chelsea's moves.

Probably not since the First Daughters in the Lyndon Johnson Administration has one been so unpopular. Meanwhile Jenna Bush is thriving in network television. 

Need affordable help strategically planning and putting together content? That ranges from blog posts and e-books to planning/scripting podcasts and creating traditional speeches. Complimentary consultation on how to generate influence and sell without paying high rates, janegenova374@gmail.com. 

It's Come to This: Jennifer Kay Toy Files $500 Billion Lawsuit Against Parents, et al. in Alleged Admissions Scam

A sign of these rage-filled times, a San Francisco Bay area parent - Jennifer Kay Toy - has filed a lawsuit in San Francisco Superior Court.

It is against the 33 parents allegedly involved in the elite college admissions scam.

The defendant list also includes the athletic officials at the universities who allegedly participated and Harvard graduate genius Mark Riddell who allegedly took tests for the students.

The lawsuit, in which Toy's son Joshua also is listed as a plaintiff, is for $500 billion. Here are more details from ABC.

That's the latest in the court of law. Previously, students who had been denied admission to universities such as Yale filed a class action lawsuit. In it they also contended the value of their current degree at Stanford could have lost value because of the alleged scam. 

In the court of public opinion the national mood is turning ugly against the 1%. One wonders if that could affect juries who will sit in judgment of some of these cases. Members of juries are human. They might lack compassion for the myopia of the wealthy in the choices they made.

In addition, there could be theatre in the streets, similar to how the counterculture in the late 1960s took on the establishment. When someone from the 1% enters public space they can be caricatured. There are no limits to the imagination of an enraged 99%.

Need affordable help strategically planning and putting together content? That ranges from blog posts and e-books to planning/scripting podcasts and creating traditional speeches. Complimentary consultation on how to generate influence and sell without paying high rates, janegenova374@gmail.com. 

"EliteAdmissionsGate" - Next Shoes to Drop (the theatre is over)

The theatre is over in what could be labeled "EliteAdmissionsGate."

Yeah, there was that arrest at dawn with guns drawn.

A prominent lawyer has been put on leave.

The mastermind took a guilty plea.

Members of the media now are focusing on three things within the universities affected:

What is their legal exposure. What did they know, what should they have known. Expect resignations. The General Counsel will be busy.

Possible civil suits filed against them, including by students who had been rejected for admission. Any clever plaintiff lawyer could troll for members of a class action lawsuit.

How what is and ongoing fallout will be positioned and packaged by the best public relations experts. Currently, the institutions of higher education are making lame claims that the allegations do not reflect their values. Meanwhile, members of the media have been hammering questions about how Jared Kushner got into Harvard. Did his father's donation give him an unethical edge? So much for values. (Harvard was not involved in the sting.)

In addition, already, brandname universities have been feeling the legal and public relations heat from lawsuits for alleged sexual harassment. 

For example, a high-profile one for $70 million has been filed against Dartmouth for alleged systemic sexual harassment. Plaintiffs contend Dartmouth was aware of the misconduct and did not take appropriate action. Plaintiffs are represented by powerhouse Sanford Heisler Sharp. 

An even more threating situation, though, is the national decline in confidence for "investing" in college degrees. Part of that, documents Boston Magazine, is that rising tuition has been a tipping point in getting parents to re-think how to launch their children into marketable lines of work. Trade schools have loomed as alternates. 

Of course, the elite schools involved in this scandal won't be shutting down, at least not any time soon. But across America, other institutions of higher learning are. Education Dive is maintaining a body count

The bottom line: More parents and their offspring can conclude the academic game is rigged by the rich and powerful. Therefore, they should use their common sense and seek career credentials elsewhere and that are less expensive. Moreover, a lack of high school loan debt would catapult the economy into another boom. The iGen can buy houses and put several SUVs in the garage. 

Blue collar career paths could be the new cool. 

As Fortune explains, for example, there is a shortage of truck drivers.

Training for that line of work in Northeast Ohio requires about eight weeks. The tuition is about $7,000. Loans are available. According to ZipRecruiter, the median pay for long-haul drivers is $70,727.

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Willkie Farr Puts Co-Chair Gordon Caplan On Leave

The next shoe falls for Willkie Farr co-chairman Gordon Caplan, who has been ensnared in what could be called "EliteAdmissionGate."

The law firm announced that Caplan has been put on leave. He also has been relieved of his management responsibilities. In addition, Willkie Farr indicated that matter was a personal one for Caplan and did not relate to the firm.  Here are more details from Kathryn Rubino at Abovethelaw.com.

For Caplan and those who care about him, this could constitute a Shakespearean like tragedy. A man of power has fallen (at least for now) from a high perch. Arrogance, myopia, and wealth all seemed to figure in.

If he is convicted or if he takes a plea, his career as a lawyer could be over. In his family he could be experienced as a source of shame. In social circles, folks could smirk when they spot him.

But in this gilded age, for others watching this potential reversal of fortune unfold, there could be downright glee.

Yesterday, when the FBI disclosed the accusations against the big-time players the little people might have felt life was worth living, even if a recession might be coming.

The euphoria could be analogous to what the Munchkins in "The Wizard of Oz" experienced when they found out the Wicked Witch of the West was dead.

Need affordable help strategically planning and putting together content? That ranges from blog posts and e-books to planning/scripting podcasts and creating traditional speeches. Complimentary consultation on how to generate influence and sell without paying high rates, janegenova374@gmail.com. 

Manhattan Real Estate - The World Watches the Game

Manhattan real estate is a wild game.

When property is sold, renters fill with terror. How much will the rent go up? Will they be forced out?

Law firms understand totally the importance of maintaining a prestige address, at just about any price, in order to reinforce the brandname. Cravath lawyers can't be operating out of WeWork space on a nowhere avenue. 

Real estate is voodoo. The right address casts spells.

Professional services are still locked in that branding game. And, all the investments that requires.

Meanwhile, as NYU marketing professor Scott Galloway hammered in his book "The Four," branding in consumer products could be killed off by search engines and Alexa. Here it can be ordered from Amazon.

As MarketWatch reports, the Chrysler Building has sold for relative peanuts - $150 million.

At first glance that should reduce renters' angst. Among them are probably lots of lawyers.

But the article goes on to explain that the property beneath the building is owned by Cooper Union. The rent paid to Cooper Union by the current owners is steep. In 2018, it was $32.5 million, up from the previous $7.7 million. By 2028, the new owners will have to pony up $41 million per year.

So, some of us in another kind of professional service - public relations - wonder how much The Dilenschneider Group's rent could go up. That bunch used to be housed in the MetLife building over Grand Central. Then they packed up their conference room and moved across the street. Lawyers probably ride the elevators with those influencrs.

Founded by former personal public relations representative for Roger Ailes - Bob Dilenschneider - the agency tends to represent old-line establishment kinds of accounts. Those are usually deep pockets which can pay Manhattan-like fees.

But, still, Dilenschneider and his long-time administrative assistant Joan Avagliano might be reviewing the client list and checking it twice to speculate who will be nice enough to continue with the revenue stream and who could bolt if there is any uptick in fee structure. Also, despite what Fed Chairman Jerome Powell said on "60 Minutes," a recession could be coming. There has been an increase in assignments I do for career transition enterprises. Whole industries, such as law, could be decimated. 

Meanwhile, the rank and file in public relations such as myself wonder how secure the jobs are of junior level employees at The Dilenschneider Group. The way that particular public relations agency tilts is toward hiring and retaining older talent. Here is the list. You bet, youth can be vulnerable. 

On Glassdoor, the employee rating for The Dilenschneider Group is "1" out of "5." Here are the employee evaluations.

Why is this story of interest to communications players?

Dilenschneider has been around forever. At some point in that saga, many of us worked for him at his previous job at Hill & Knowlton or the firm he founded. He's an interesting presence to watch. So is his seeming number-two Avagliano.

Not only in the public relations industry and not only in America, we have hardened into a worldwide phenomenon of steely-eyed watchers. Increasingly that is being conducted onscreen.

As more opt into a FIRE (financial independence, retire early) this has become a source of extreme pleasure. The resentments developed over a career that played out in dog years blossom into euphoria at bad news.

Also, though, there is heart-attack-producing envy. The law firm which forced out Partner X relocates to a more prestigious address. Days, weeks, months could be spent in an emotional cauldron of Hate Remembered.

Need affordable help strategically planning and putting together content? That ranges from blog posts and e-books to planning/scripting podcasts and creating traditional speeches. Complimentary consultation on how to generate influence and sell without paying high rates, janegenova374@gmail.com. 

First WaPo, Now Probably CNN - Nick Sandmann, His Lawyer L. Lin Wood Busy Folks

The latest development in the push-back saga of Catholic school kid Nick Sandmann is a probable lawsuit against CNN. That's what The Hill is reporting.

The lawsuit could be for $250 million. Mostly it contends CNN misrepresented Sandmann as a source of verbal misdeeds against Black Hebrew Israelites. 

Meanwhile, whatever happens, he and his lawyer L. Lin Wood are already alt-right pop stars. Earlier there was the lawsuit against The Washington Post. Soon after that, the newspaper issued an Editor's note admitting it had not told the whole story. Sandmann 1, media 0. 

This kid and his legal representative have a good thing going for them. The challenge is to maintain the attention. If the DOW crashes or the March jobs report isn't better than the February one, then this story can move to nowhereville in the media. 

Meanwhile, Sandmann and Wood will continue to be busy folks. Both the courts of public opinion and of law keep you hopping. 

Need affordable help strategically planning and putting together content? That ranges from blog posts and e-books to planning/scripting podcasts and creating traditional speeches. Complimentary consultation on how to generate influence and sell without paying high rates, janegenova374@gmail.com. 

 

Move Over, AOC - Boston's Shannon Liss-Rordan Can One-Up-You in the U.S. Senate

There is name recognition. At least in legal and labor-relations circles.

So, it makes sense that the employment plaintiff lawyer - Shannon Liss-Riordan - is considering taking on U.S. Senator Edward J. Markey in the coming primary. He wants to run for a second term. Here are more details from the Boston Globe. 

She is a Democrat, based now in Brookline, Massachusetts. She had graduated from Harvard undergraduate and Harvard Law School. Her brandname has been developed fighting for gig workers such as at Uber. Their objective had been to be classified as employees. That would bring both protections and benefits. 

In this time of enormous threats to traditional types of employment and with a recession which could be headed our way, Liss-Riordan can position herself as a superhero for everyone who needs to earn income from work. 

If she decides to take on Markey, she could suck off the media spotlight from AOC. And if she wins the U.S. Senate seat she would have a kind of one-upmanship on AOC. After all, it the U.S. Senate which votes whether to impeach or not. 

This is a decision which could continue to reshape politics in America.

Need affordable help strategically planning and putting together content? That ranges from blog posts and e-books to planning/scripting podcasts and creating traditional speeches. Complimentary consultation on how to generate influence and sell without paying high rates, janegenova374@gmail.com.