Media Decoder: A CBS Deal Bolsters Amazon's Challenge to Netflix

Slowly but confidently, Amazon is building a library of television shows and movies to rival that of Netflix, much to the satisfaction of media companies like Time Warner and CBS, whose executives love to see the competition.

Although Amazon will not unveil its own original television shows until the fall at the earliest, it is spending hundreds of millions of dollars to have the exclusive Web rights to shows it can brag about on its Amazon Prime streaming service, like “Downton Abbey,” from PBS, and “Falling Skies,” from TNT.

The latest example came on Monday, when Amazon announced an unusual arrangement with CBS, the country’s most-watched television network, to carry episodes of “Under the Dome” just days after the series makes its debut on TV in June.

“This deal is yet another sign that the streaming marketplace is becoming more and more robust,” said Scott Koondel, the chief content licensing officer for CBS, a position that was created two months ago. “Advances in user-friendly technology from companies like Amazon and Netflix are a boon for premium content owners.”

Amazon has a long way to go to rival Netflix in terms of TV and movie selection. But in some corners of the media business, it is already perceived to be Pepsi to Netflix’s Coke. And many other companies — among them Google, Sony, Intel and a new joint venture between Redbox and Verizon — are trying to come up with a Red Bull or a Snapple they can call their own.

While Netflix has won attention for unveiling a high quality show, “House of Cards,” on its streaming service, “it is increasingly hard to ignore the progress Amazon has made in a relatively short amount of time,” Richard Greenfield, an analyst at BTIG Research, wrote two weeks ago. He predicted that Amazon would quietly spend more than $500 million on video this year.

Amazon declined to comment on that figure. Its nearly two-year-old streaming service, called Prime Instant Video, is bundled as part of its $79 annual Amazon Prime membership, which also provides two-day free shipping and a monthly Kindle e-book rental. The company says it has millions of Amazon Prime subscribers, but it will not disclose the precise number. Netflix has about 27 million streaming subscribers in the United States.

Instant Video started simply enough about two years ago, with relatively cheap acquisitions of older television shows from networks like CBS and nonexclusive rights to older films from studios like Universal. But Amazon’s recent deals have revealed the company’s ambitions.

When Netflix dropped the rights to some cable series like “Pawn Stars” last fall, Amazon swooped in and started streaming them. When Time Warner wanted to sell streams of some of its cable dramas, Amazon bought the exclusive rights to “The Closer” and “Falling Skies,” while Netflix bought “Dallas.”

“This emerging back end for cable originals is a very promising sign,” Jeffrey L. Bewkes, chief executive of Time Warner, told investors last week, “since it should result in production values for cable originals getting even better over time.”

Perhaps its biggest deal yet came last week, when it clinched the rights to past and future seasons of the PBS hit “Downton Abbey.” By July, “Downton” will be gone from Netflix.

Both streaming services mine the data of their users to determine what kinds of shows to license, and what not to. The first two seasons of “Downton” were the “most-streamed TV show on Prime Instant Video,” said Brad Beale, who oversees video acquisitions for Amazon, so it was a “pretty easy decision” to bid for seasons three and four (and five, if it is produced).

“Data is a great proxy for what our customers love,” Mr. Beale added in a telephone interview. “We’re blessed to have a platform that gives us a lot of insight into what our customers love.”

“Under the Dome” — based on the Stephen King novel and produced by Steven Spielberg’s Amblin Television — will be unique because each episode will go onto Amazon four days after its premiere on TV. CBS stands to make more money this way than it now does by streaming shows on CBS.com and attaching ads.

Analysts expect to see more such deals as broadcasters move away from the free online model made popular by Hulu. Hulu has a subscription component as well, but it has not announced any notable licensing deals the way Netflix and Amazon have done. Its owners are at odds over the future of the service, and its founding chief executive, Jason Kilar, will leave later this winter.

Netflix says it expects to compete with Amazon the way HBO and Showtime compete — with TV dramas and comedies of their own. “When it comes to competition, we not only have a superior content offering due to our larger budget, but we are further along the experience curve,” Netflix told investors last month. In other words, Amazon is cheap, off-brand Cola.

While Netflix has four more original series on tap this year, Amazon is trying out test episodes of six comedies and five children’s series. This year, Amazon will stream them and, after hearing from viewers, decide which ones will become series.

Roy Price, the head of Amazon Studios, said the pilot process will ensure quality, just as it does for traditional television networks, and make viewers and producers pay attention to Amazon’s video projects.

“All that matters is being great,” he said. “There’s no great benefit in being good; people don’t change their habits for good.”

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Advertising: Self Magazine Widens Its Focus for a Younger Audience

WHAT’S the point of having Michelle Obama’s triceps if you can’t show them off in a smart sleeveless sheath?

That seems to be the thinking behind a remake of Self magazine, the Condé Nast publication best known for teaching women how to crunch their abs, tone their thighs and eat the right foods.

Self is broadening its tight focus on exercise and wellness to become a more general lifestyle magazine infused with more beauty and fashion, an effort that will include editorial changes, a new look for the cover and logo and licensing agreements.

“We think there’s a shift in how women think of their bodies and beauty,” said Laura McEwen, the vice president and publisher of Self. “Being fit and fashionable are really one.”

According to Ms. McEwen, the magazine’s typical reader is in her mid-30s with a median household income of $75,000 a year; the rebranded magazine is meant to appeal to the generation of women 18 to 30 who are obsessed with social media. “The magazine is being edited for the women who think in 140 characters,” she said, referring to the character limit of a Twitter post.

That editorial shift can be most felt in the chatty headlines created for subsections in the magazine and its bolder, fashion-focused images. One section, “It’s a Thing,” highlights new trends (in March, the color will be lemon yellow). Others include “You Look Awesome in That,” featuring fashion coverage, and “Just Shoot Me Now,” which doles out advice to readers in embarrassing situations.

Self finds itself between two of its biggest competitors in women’s fitness magazines.

The magazine, which has a total print circulation of 1.5 million readers, had a slight increase in advertising dollars, but not ad pages, last year. Advertisers spent $163.2 million on ads in the magazine in 2012, a 1.8 percent increase from 2011, when they spent $160.2 million.

Total ad pages declined 2.3 percent to 905.4 in 2012 from 926 in 2011, according to data from the Publishers Information Bureau. Online, the magazine has 6.9 million unique visitors a month, executives said, with a fifth of that traffic coming from the social media content sharing site Pinterest.

Shape magazine, which is owned by American Media, claims a similarly strong print circulation of 1.63 million readers, but has had a tough time sustaining advertising dollars. The fitness and lifestyle magazine suffered an 18.4 percent decrease in advertising revenue from 2011, when advertisers spent $206.8 million, to 2012, when they spent $168.8 million on the magazine. The total number of ad pages in the magazine decreased 22.7 percent from 2011 to 2012.

Women’s Health, which is owned by Meredith, showed a 12.3 percent increase in paid advertising from 2011 to 2012, and a 6.8 percent increase in ad pages for the same period. In 2011 the magazine reported a circulation of 1.6 million.

Self magazine, its Web site and its mobile site will be divided into three main sections that focus on body, looks and lifestyle. The new look, which will make its debut this week, includes a larger font for the title and a clean white background. The changes will be consistent across all platforms.

Readers will also be able to download a new mobile application, called Self Plus. When users hover their phones over pages tagged with icons promoting the app, they can watch videos and skim through photo galleries and other content.

Millennial women, said Lucy Schulte Danziger, the editor in chief of Self, have “this sense that you want to be really healthy, but you also want to go drink martinis with your friends.” (To that end, the March issue will include a calorie-counting game on matching cocktails with bar food without blowing your diet.) “It’s trying to have fun. It should be fun; this is not rocket science,” she said.

Self’s last makeover was in 2010, when it overhauled its design, updated its logo and tweaked section headlines.

Beyond the latest editorial changes is a range of marketing efforts to get the word out. Print and digital ads will run in Condé Nast magazines like Allure, Glamour and Lucky and on taxi tops in New York City. Digital ads will also run on DailyCandy.com and Refinery29.com.

The March issue of Self, featuring the dancer Julianne Hough on the cover, will be available in print on Feb 19. Ms. Hough is the lead actress in the new film “Safe Haven.” Self will also be the co-host at a premiere party for the film on Monday in New York City.

The brand has also licensed its name to a new line of fitness gear including yoga mats and kettlebells and is considering extending that to healthy food products. Self is also capitalizing on its annual event, “Self Workout in the Park,” by announcing a college-themed contest, “Self Workout on the Quad,” where college students who participate most heavily with the Facebook “Workout in the Park” social game can win an event at their school.

Sponsors for the event include Garnier, Reebok, Calvin Klein, LaRoche-Posay, LeSportsac, Luna Bar and Club Med. Ads promoting the contest will be shown on HerCampus.com.

“This is clearly a strategy not only to reach young women readers where they’re at right now, but also to be more attractive to advertisers,” said Laura Portwood-Stacer, a visiting assistant professor of media, culture and communication at the Steinhardt School of Culture, Education and Human Development at New York University. “It seems to tap into this trend of fitness lifestyle consumption that you see a lot now.”

One new advertiser is LeSportsac, which in addition to sponsoring the workout events, will advertise in the April issue of Self.

“Seeing where the consumer is going today is very much lifestyle,” said Paula Spadaccini, the marketing director for LeSportsac. “They don’t just aspire to wear Christian Louboutin and be very fashionable. They also aspire to be fit and cook healthy recipes.”

Walter Coyle, the president of Pedone, an independent advertising agency, said that some of his clients like Burt’s Bees, the beauty product line, and Essie, the nail polish brand, will continue to advertise in Self, and that other clients including Clarins and Lacoste were considering it. “Whenever a formidable magazine like Self reimagines its position in the marketplace, it’s something everyone is going to look at,” he said.

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Israeli Says Syria Twisted Comments by Rebel Supporter

BEIRUT, Lebanon — A public relations controversy erupted Saturday after a leading Israeli newspaper published comments from a brief interview with the leader of Syria’s main exile opposition group.

The news media outlets of the Syrian government, and its ally Hezbollah, the Lebanese militant group, reported that the opposition leader had declared that Israel had “nothing to fear” from a rebel-led Syrian government. Moreover, the reports said, the opposition was working with other countries to keep Syria’s chemical weapons away from Hezbollah, which he called a “son of the devil.”

But the opposition leader, Sheik Ahmad Moaz al-Khatib, never said any of that, according to the article in the Israeli newspaper, Yediot Aharonot, and its author, a prominent Israeli defense expert, Ronen Bergman.

Sheik Khatib was quoted in the article reiterating the opposition’s promise to keep Syria’s chemical arsenal out of “the hands of unauthorized elements,” and it was the international community, he said, not Israel, that had “nothing to fear.”

When Sheik Khatib realized that Mr. Bergman was an Israeli — after glancing at his business card — he abruptly ended the conversation, Mr. Bergman said in a Skype interview, repeating what he had written.

The original article was published only in Hebrew — and only in print — so it was the Arabic and English versions put out by the Syrian government and Hezbollah that raced around the Internet on Saturday, provoking outrage from government supporters and opponents at Sheik Khatib, who posted a message on his Facebook page denying that he had given the interview.

Yet the episode appeared to have been more than a simple misunderstanding. Syria’s conflict is not only a shooting war but also a propaganda war. Pro-government media apparently could not resist the chance to bolster their contention that the rebellion had been promoted by Israel and the West to punish Syria and its president, President Bashar al-Assad, for taking uncompromising positions against Israel.

“Unfortunately, the original text was less exciting,” Mr. Bergman said. “I would be happy if he would say something like, ‘Yes, we will make peace with Israel’ — then I would get the front page.” As it was, the article elicited little reaction in Israel.

But misrepresentation of the article suggested that it hit a nerve on one issue. An unnamed opposition member, not Sheik Khatib, called Hezbollah “sons of the devil,” according to Mr. Bergman, and said the rebel coalition was working with other countries to ensure that “not one piece of military equipment, not chemical weapons and not any other item, will pass into their hands.”

Syria is Hezbollah’s main conduit for arms, and Hezbollah has backed Mr. Assad’s bloody crackdown at great cost to its popularity in the wider Arab world.

Although Mr. Bergman said the opposition member was offering his own opinion and not presenting official policy, his comments bolstered the widely held view that a rebel-led government might halt the shipment of Iranian arms through Syria to Hezbollah. Hezbollah, a Shiite group and political party, is also concerned about the rise within the rebel movement of extremist Sunni jihadists who view Shiites as apostates.

The misleading reports appeared to be an attempt to further divide the opposition. Sheik Khatib found himself fending off critics from within the anti-Assad movement who objected to his even speaking with an Israeli reporter, though by all accounts he did not initially realize that Mr. Bergman was an Israeli.

It was the second time in a month that Sheik Khatib found himself on the defensive. He recently proposed talks with members of Mr. Assad’s government, but had not built political support for the proposal.

On Friday, Syria’s information minister, Omran al-Zoubi, gave the first official response to the proposal, saying that the government would negotiate with any opposition members who agreed to lay down their arms.

On Saturday, Mr. Assad named new cabinet ministers for oil, finance, social affairs, labor, housing, public works and agriculture, as Syria faces growing economic problems and shortages of electricity, fuel and bread.

Anne Barnard reported from Beirut, and Isabel Kershner from Jerusalem. Hania Mourtada contributed reporting from Beirut.

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Venezuela Devalues Currency Amid Shortages and Inflation

CARACAS — Venezuela announced Friday that it was devaluing its currency, a step that had long been deemed necessary but could push the spiking inflation even higher.

The devaluation, which lowered the currency’s value against the dollar by nearly 50 percent, was aimed at solidifying government finances and easing a tight market for dollars that has choked back imports and led to shortages of basic goods.

The move had been widely anticipated, but it had been unclear whether officials would make what could be a politically risky decision with President Hugo Chávez still out of the country after undergoing cancer surgery in Cuba on Dec. 11.

If Mr. Chávez were to die or were too ill to continue as president, a special election would have to be called, and many analysts thought that the government might try to postpone a devaluation until after that occurred.

“It is a sign of pragmatism that they carry out a devaluation even though we’re all aware there is some likelihood of a presidential election being held soon,” said Francisco Rodríguez, an economist with Bank of America Merrill Lynch. “This shows that they’re willing to correct basic economic distortions.”

The currency, the bolívar, will be set at 6.3 to the dollar. It had been set at 4.3.

Venezuela’s finance minister, Jorge Giordani, said that Mr. Chávez, who has not been seen or heard in public for more than eight weeks, had approved the measures.

“Here is the president’s signature if you want to recognize it or if you still have doubts,” Mr. Giordani said, holding up a document during a televised news conference.

The devaluation will help the government balance its books by giving it nearly 50 percent more bolívars for the dollars it earns selling oil on the world market. Venezuela’s economy is highly dependent on oil, with petroleum sales making up about 95 percent of total exports. The country is the fourth-largest foreign oil supplier to the United States.

Government spending soared last year during the campaign to re-elect Mr. Chávez, leading to a large deficit, even though, at more than $100 a barrel, the price of oil is very high.

Pressure to devalue had been building for months, as the black market exchange rate rose to more than four times the official rate. The imbalance was evident in the prices of many goods. A Big Mac at McDonald’s costs 70 bolívars, or $16.27, at the official pre-devaluation rate.

But the devaluation will also make imported goods more expensive, which will probably make inflation worse. Inflation for the 12 months ended on Jan. 31 was 22.2 percent, one of the highest rates in Latin America.

Surging inflation could cause political problems for the government. But the exchange rate had reduced the dollars available to importers, leading to shortages of goods like sugar, chicken and toilet paper. Many analysts believe that voters blame the government more for shortages than for inflation.

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DealBook: 4 Years After Crisis, Ireland Strikes Deal to Ease a Huge Debt Load

LONDON — The Irish government, trying to lighten the staggering debt burden of bailing out some of its biggest banks four years ago, reached a deal on Thursday with the European Central Bank to give the country more time to repay some of those loans.

The agreement, which came after 18 months of negotiations with the central bank, will enable Ireland to swap 28 billion euros ($38 billion) of high-interest promissory notes — a form of i.o.u.’s — that were used to bail out Anglo Irish Bank in 2009 for long-term government debt.

Although crucial details of the agreement were not disclosed, it appeared to be another important milestone in Ireland’s slow emergence from a banking and real estate crisis that had cut living standards, caused unemployment to soar and left cities scarred by half-finished building projects.

The deal could also be an important step for the euro zone, showing that it is possible for a member to survive the painful financial adjustments needed to recover from the crisis without leaving the currency union. Besides Ireland, Greece and Portugal have borrowed huge sums from the central bank and other international organizations to bail out their governments, while Spain has done likewise to rescue its banks.

By exchanging the promissory notes for government debt, Enda Kenny, the Irish prime minister, and his governing party, Fine Gael, have secured more time for Ireland to put itself on a firmer financial footing.

They have also won a significant concession from the central bank, which had repeatedly rejected Ireland’s plans to restructure some of its debt. The central bank, based in Frankfurt, has been concerned that a refinancing deal for Ireland would set a precedent that could be followed by other countries that have also bailed out big lenders.

Mario Draghi, the central bank’s president, declined to comment on the Irish deal during a news conference Thursday, suggesting that reporters direct their questions to Irish officials.

Mr. Kenny was more than happy to trumpet the deal. “The promissory notes represent a highly onerous and unfair legacy of the banking crisis,” Mr. Kenny told the Irish Parliament on Thursday. “The legacy banking debt hoisted on the Irish taxpayer is a heavy burden.”

Analysts said the debt restructuring was an important step in Ireland’s recovery because the government could either repay existing debt faster than previously expected or pump the extra cash directly into the local economy.

“Ireland has been pushing hard for this deal,” said Jonathan Loynes, the chief European economist at Capital Economics in London. “It’s a victory for Ireland over the European Central Bank.”

After stepping in to save many lenders that made too many bad loans during the 2000s, Dublin eventually had to turn to the European Union and the International Monetary Fund in 2010, which provided a 67.5 billion euro rescue package.

One big part of that bailout, the nationalization of the giant bank Anglo Irish, had left Dublin with onerous annual interest payments of 3.1 billion euros. The figure is about the same amount that Irish politicians have said they need to make in additional cuts in yearly government spending to reduce the country’s debt levels. The hefty interest payments caused widespread anger across Ireland, whose population has already endured several years of tax increases and government spending reductions.

The interest rate on the new government debt is expected to average about 3 percent, instead of rates above 8 percent on the promissory notes. The restructuring also will cut the country’s budget deficit by one billion euros a year, according to a statement from the Irish Finance Ministry, though Ireland’s deficit as a percentage of its overall economy will still be one of the highest in the euro zone.

As part of the deal, the Irish government passed emergency legislation on Thursday to liquidate Anglo Irish Bank, which fell into trouble in the buildup to the financial crisis by lending billions of euros to real estate developers. Many of those loans went bad after Ireland’s real estate bubble burst. The bank had been renamed the Irish Bank Resolution Corporation after its failure and bailout.

Under the terms of the liquidation, Anglo Irish’s loans will be transferred to the National Asset Management Agency, the so-called bad bank set up by the local government. Other assets could be sold to outside investors.

Anglo Irish had been at the center of controversy since the beginning of the financial crisis. Three of its former executives, including its former chief executive, Sean FitzPatrick, are facing fraud charges in connection with loans that authorities have said were granted improperly.

The new legislation, which was signed into law after an all-night parliamentary session, had been rushed through because details of the debt-restructuring plan were leaked on Wednesday. Even as lawmakers were debating the Anglo Irish liquidation, the hashtag #promnight — in reference to the promissory notes — started to trend on Twitter as the Irish public eagerly awaited the outcome.

Politicians had hoped to wait to announce the liquidation after agreeing on new terms with the European Central Bank.

“I would have preferred to be introducing this bill in tandem with a finalized agreement with the European Central Bank,” the Irish finance minister, Michael Noonan, said in a statement.

Despite persistent questioning at a Frankfurt news conference on Thursday, Mr. Draghi resolutely declined to offer any information about the central bank’s role, if any, in helping Ireland reduce its interest payments.

He said the bank’s governing council, which concluded its monthly meeting Thursday, merely “took note” of the Irish action. Mr. Draghi may have wanted to avoid any impression that the central bank was giving a financial break to the Irish government because its charter prohibits it from financing euro zone governments.

Ireland’s multibillion-euro lifeline in 2010 came with strings attached. International creditors demanded that Ireland adopt austerity measures that would cut public spending by $20 billion by 2015.

Salaries for many public sector workers, including nurses and teachers, have been reduced about 20 percent. Welfare programs like social protection and child benefits have been cut. And a series of new taxes has been introduced to refill the government’s coffers.

At first, the cuts plunged Ireland’s economy into recession, but the country’s gross domestic product is expected to grow 1.1 percent this year, much better than the mere 0.1 percent growth projected for the entire euro zone.

Despite the gradual recovery and now a reduction in the country’s debt burden, the Irish prime minister cautioned that more work had to be done to revive the country’s economy.

“Let there be no doubt, this is no silver bullet to end all our economic problems,” Mr. Kenny said on Thursday. “There is still a long way to travel in our country’s journey back to prosperity and full employment.”

Jack Ewing contributed reporting from Frankfurt

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Postal Service Plans to End Saturday Delivery

Christopher Gregory/The New York Times

Patrick R. Donahoe, the postmaster general, announcing the planned service change.

WASHINGTON — Faced with billions of dollars in losses, the Postal Service announced on Wednesday that it would seek to stop Saturday delivery of letters, a sweeping change in mail delivery that immediately drew criticism from postal unions, some businesses and lawmakers.

Jim Wilson/The New York Times

Grinje Fernandez, a letter carrier for the Postal Service, delivered mail in San Francisco's Richmond District on Wednesday.

The post office said a five-day mail delivery schedule would begin in August and would shave about $2 billion a year from its losses, which were $15.9 billion last year. The Postal Service would continue to deliver packages six days a week, and post offices would still be open on Saturdays. Reducing Saturday delivery is in line with mail services in several other industrialized countries like Australia, Canada and Sweden, which deliver five days a week.

The move raised immediate legal questions on Capitol Hill, where some lawmakers claimed that the Postal Service could not change its delivery schedules without Congressional approval. The post office has made earlier attempts to change the law, only to meet with objections or delays in Congress. Now, seizing a moment when the post office believes the law no longer applies, it moved on its own to shut down Saturday letter delivery.

Whether it will succeed is difficult to predict. Many lawmakers view the Postal Service as the quintessential government service that touches constituents almost every day, and rigidly oppose any changes. Also, postal worker unions hold sway over some lawmakers who are influential in writing legislation that governs the agency.

Whether the post office is ultimately blocked by an act of Congress or it tries to move ahead with ending letter delivery on Saturdays, the announcement on Wednesday moves postal overhaul legislation — which had stalled for many months — up the Congressional agenda.

“Our financial condition is urgent,” said Patrick R. Donahoe, the postmaster general, at a news conference announcing the change. “This is too big of a cost savings for us to ignore.”

Mr. Donahoe said the move to end Saturday delivery was part of a long-term plan to return the agency to profitability. Since 2010, the agency has continued to close post offices, reduce hours at many small, rural offices and cut staff. It also announced plans to sharply reduce the number of its regional processing plants. Last month, the agency raised the price of a first-class stamp to 46 cents, the latest in a series of generally annual postage increases.

But post office officials say the cuts, rate increases and staff reductions are not enough to make up for the two reasons it is losing money. One is a requirement that it pay nearly $5.5 billion a year for health benefits to future retirees, a mandate imposed on no other government agency. Second, since 2007, first-class mail volume has declined by 37 percent as use of e-mail and online payment services has soared.

The agency said eliminating Saturday mail service represented a substantial cost savings because of fewer staff hours and less equipment needed to maintain the deliveries.  

The Postal Service also said the rise in online retail purchases and other e-commerce was contributing to its increase in that area and was why it would continue to deliver packages on Saturdays.

Since 1981, a Congressional mandate has required the Postal Service to deliver mail six days a week. But on Wednesday the agency argued that since the current stopgap budget measure for the entire government, known as a continuing resolution, did not contain language explicitly mandating six-day delivery, the agency could make the changes without Congressional approval.

But some members of Congress immediately questioned the Postal Service’s claim.

“The passage of the continuing resolution did not suspend that language, as they claim, but in fact extended it,” said Representative José E. Serrano, Democrat of New York and ranking member on the appropriations subcommittee on financial services and general government, which has jurisdiction over the post office. “Rather than use very dubious legal arguments to end Saturday delivery, the U.S.P.S. should work hand in hand with Congress to come up with a successful restructuring and reform package that allows them to become more efficient while maintaining vital services like Saturday delivery.”

This article has been revised to reflect the following correction:

Correction: February 6, 2013

An earlier version of this article misstated the news organization that first reported the Postal Service’s plans to end Saturday service. It was CBS News, not The Associated Press.

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Nanoparticles in Food Raise Concern by Advocacy Group

Nanomaterials, substances broken down by technology into molecule-size particles, are starting to enter the food chain through well-known food products and their packaging, but there is little acknowledgment by the companies using them, according to a new report from a nonprofit group that works to enhance corporate accountability.

Some companies may not even know whether nanomaterials are present in their products, the corporate accountability group As You Sow said.

Only 26 out of 2,500 companies, including PepsiCo, Whole Foods and the corporate parent of Pizza Hut and Taco Bell, responded to a survey from As You Sow about their use of nanomaterials.

“Only 14 said they don’t use nanomaterials, and of those only two had any policies on the use of nanomaterials,” said Andy Behar, chief executive of As You Sow. Various food companies have said they are interested in nanotechnology, which can help make products creamier without additional fat, intensify and improve flavors and brighten colors.

Their small size allows nanoparticles to go places in the body where larger particles cannot and enter cells. They have been found in the blood stream after ingestion and inhalation, and while research on their health effects is limited, studies have shown them to have deleterious effects on mice and cells.

“We’re not taking a no nano position,” Mr. Behar said. “We’re saying just show it’s safe before you put these things into food or food packaging.”

He noted that the European Union requires labeling of foods containing nanomaterials and that the European Food Safety Authority has published guidance for assessing nanomaterials in food and animal feed.

Last April, the Food and Drug Administration issued an unusually emphatic statement on nanomaterials, saying it did not have enough data to determine the safety of nanomaterials in food.

The Environmental Protection Agency is evaluating various nanoparticles used in consumer products, like sunscreens.

As You Sow tested 10 varieties of powdered doughnuts for the presence of nanoparticles. With the help of an independent lab, it found that Hostess Donettes and Dunkin’ Donuts Powdered Cake Donuts tested positive for the presence of titanium dioxide materials of less than 10 nanometers. Titanium dioxide is used to brighten white substances. The nano variety is under investigation by the E.P.A.

Michelle King, a spokeswoman for Dunkin’ Donuts, said the company was working with its supplier to validate As You Sow’s findings. Hostess Brands went out of business during the test and closed its factories.

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DealBook: Dell Nears a Buyout Deal of More Than $23 Billion

Dell Inc. neared an agreement on Monday to sell itself to a group led by its founder and the investment firm Silver Lake for more than $23 billion, people briefed on the matter said, in what would be the biggest buyout since the financial crisis.

If completed, a takeover would be the most radical attempt yet by Michael S. Dell to revive the company that bears his name. Such is the size of the potential deal that Mr.
Dell has called upon Microsoft, one of his most important business partners, to shore up the proposal with additional financial muscle. The question will now turn to whether taking the personal computer maker private will accomplish what years of previous turnaround efforts have not.

The final details were being hammered out on Monday evening, and a deal could be announced as soon as Tuesday. Still, last-minute snags could cause the negotiations to collapse, the people briefed on the matter cautioned.

The consortium is expected to pay between $13.50 and $13.75 a share, these people said. Mr. Dell is expected to contribute his nearly 16 percent stake to the deal, worth about $3.8 billion under the current set of terms. He is also expected to contribute hundreds of millions of dollars in fresh capital from his own fortune.

Silver Lake would likely contribute roughly $1 billion, these people added. Microsoft is expected to put in about $2 billion, though that would likely come in the form of preferred shares or debt.

Dell is also expected to bring home some of the cash that is currently held in offshore accounts to help with the financing.

A spokesman for Dell declined to comment.

For decades, Dell benefited from its status as a pioneer in the market for personal computers. Founded in 1984 in a dormitory room at the University of Texas, the company grew into one of the biggest computer makers in the world, built on the simple premise that customers would flock to customize their machines.

By the late 1990s, its fast-rising stock created a company worth $100 billion and minted a class of “Dellionaires” whose holdings made for big fortunes, at least on paper. Mr. Dell himself amassed a fortune worth an estimated $16 billion and formed a quietly powerful investment firm to manage those riches.

But since then, growing competition has sapped Dell’s strength. Rivals like Lenovo and Samsung have made the PC-making business less profitable. Last month, the market research firm Gartner reported that Dell sold 37.6 million PCs worldwide in 2012, a 12.3 percent drop from the previous year’s shipments. Perhaps more significant is the emergence of the smartphone and the tablet, two classes of devices that have eaten away at sales of traditional computers.

Mr. Dell has sought to move the company into the more lucrative and stable business of providing corporations with software services, spending billions of dollars on acquisitions to lead that transformation. The aim is to refashion Dell into something more like I.B.M. or Oracle. Even so, manufacturing PCs still makes up half of the company’s business.

The company’s stock had fallen in 59 percent in the 10 years ended Jan. 13, the last business day before word of the buyout talks emerged. That has actually made Dell more tempting as a takeover target for its founder and Silver Lake, which see it as undervalued.

A Dell deal would be a watershed moment for the leveraged buyout industry: It would be the largest takeover since the Blackstone Group paid $25 billion for Hilton Hotels in the summer of 2007. No leveraged buyout since the financial crisis has surpassed the $7.2 billion that Kohlberg Kravis Roberts and others paid for the Samson Investment company, an oil and gas driller, in the fall of 2011.

Private equity executives have hungered for the chance to strike a deal worth more than $10 billion, an accomplishment believed difficult because of the sheer size of financing required. Dell will take on more than $15 billion in debt, an enormous amount arranged by no fewer than four banks.

Leading the charge for Dell is Silver Lake, known as one of the biggest investors in technology companies.

But the debt markets have been soaring over the past two years, as the cost of junk bonds has stayed low. Persistent low interest rates has prompted debt buyers to seek investments that carry higher yields

Dell was unusually well-placed to make a deal with private equity. The company carries $4.9 billion in long-term debt, which some analysts have regarded as a manageable amount. And its management has signaled a willingness to bring back at least some of the company’s cash horde that is held overseas, despite potentially ringing up a hefty tax bill.

And then there is the matter of Mr. Dell’s stake. Advisers to Dell have taken pains to structure the transaction to avoid the potential conflicts of interest involved in a chief executive taking his company private, the people briefed on the matter said.

A special committee of Dell’s board has hired an independent investment bank, Evercore Partners, as an adviser who will seek out alternative takeover bids.
It is unclear whether the company’s biggest investors will accept a deal at the levels that the buyer consortium is advocating. Shares of Dell fell 2.6 percent, to $13.27, on Monday after reports of the proposed price range emerged.

Still, an analyst with Sanford C. Bernstein, A. M. Sacconaghi, wrote in a research note last month that he believed Mr. Dell was likely to succeed in at least taking the company private.

“Net net, we believe that if a deal goes to a shareholder vote it will likely be approved,” he wrote — cautioning that victory is dependent on activist investors not clamoring for a significantly higher price.

But going private may not solve all of the company’s problems. Mr. Sacconaghi said that a leveraged buyout makes sense so long as Dell is able to stanch bleeding in its PC business and bring back some of its overseas cash over time.

The bigger question is whether Mr. Dell will undertake more drastic changes at the company once it is away from the glare of the public markets. Analysts at Barclays wrote last month that shedding unattractive businesses, like its consumer PC arm, would make a take-private more attractive.

Absent big moves, the strain of the additional debt could starve Dell of the cash it needs to tackle additional acquisitions to complete its transformation into an enterprise software company.

Biggest Private Equity-Backed Leveraged Buyouts

DEAL, IN BILLIONS	TARGET	BUYER	ANNOUNCED
Source: Thomson Reuters *At time of deal, including assumption of debt, not adjusted for inflation.
$44.3	TXU	Morgan Stanley, Citigroup, Lehman Brothers Holdings, Kohlberg Kravis Roberts, Texas Pacific Group and Goldman Sachs	February 2007
37.7	Equity Office Properties Trust	Blackstone Group	November 2006
32.1	HCA	Bain Capital, Kohlberg Kravis Roberts and Merrill Lynch Global Private	July 2006
30.2	RJR Nabisco	Kohlberg Kravis Roberts	October 1988
30.1	BAA	Grupo Ferrovial SA, Caisse de Depot et Placement and GIC Special Invest	March 2006
27.6	Harrah’s Entertainment	Texas Pacific Group and Apollo Management	October 2006
27.4	Kinder Morgan	GS Capital Partners, The Carlyle Group and Riverstone Holdings	May 2006
27.2	Alltel	TPG Capital and GS Capital Partners	May 2007
27.0	First Data	Kohlberg Kravis Roberts	April 2007
26.7	Hilton Hotels	Blackstone Group	July 2007

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Teen Vogue, a Survivor at 10 Years

Robert Caplin for The New York Times

Amy Astley, the editor in chief of Teen Vogue, said her readers are sophisticated young women interested in the fashion world.

After a long day of classes, homework and college preparation, Susannah Davies, a 17-year-old high school junior, takes a break by flipping through her print copy of Teen Vogue, the fashion magazine she has subscribed to since the sixth grade.

According to fourth-quarter data from the Publisher’s Information Bureau, Teen Vogue’s advertising pages rose by 8.3 percent compared with the same period the year before.

She reads articles on topics like how to handle “crazy, poofy” hair, how to pair denim vests with leggings and leather boots, and the stress of applying to college. She enters contests to win clothes and rips out photos of models to make collages to hang in her room and post on Instagram.

“Teen Vogue really hits the spot of what teenagers are concerned about,” Ms. Davies said. “I look to be inspired.”

As Teen Vogue releases its 10th anniversary March issue just in time for Fashion Week, it is celebrating not just a milestone, but readers like Ms. Davies, who have remained loyal during a decade when other, often well-financed teenage magazines largely disappeared.

The few magazines left are trying to draw from a pool of teenage readers who grew up devouring media digitally and whose appetite for celebrity news has shifted their attention away from conventional teenage titles.

Like many magazines, Teen Vogue, published by Condé Nast, has weathered shrinking newsstand sales, which are half what they were when the magazine began. It also remains behind Seventeen, which has double the circulation, and according to the youth research firm TRU, is the most read magazine and most visited Web site for teenagers.

But Teen Vogue has established a following among fashion-conscious teenagers eager to study what brands the Obama daughters are wearing and to collect the magazine’s covers, which feature the likes of the boy band One Direction. These readers are providing the magazine solid profits in an otherwise declining magazine market.

According to fourth-quarter data from the Publisher’s Information Bureau, Teen Vogue’s advertising pages rose by 8.3 percent compared with the same period the year before. Its pages are filled with fashion advertisers as economically diverse as Louis Vuitton and Aeropostale. During the same time, Vogue’s advertising pages rose by only 0.3 percent and magazines over all saw advertising pages decline by 7.2 percent.

Over the last decade, Teen Vogue has outlasted YM, Elle Girl, Teen People, Cosmo Girl! and Teen, which all folded. While Teen Vogue’s total circulation remains down from its peak of 1.5 million in 2005, according to Alliance for Audited Media, it has hovered at slightly over one million for the last five years. Magazine industry experts say that’s notable because its editors are catering to a readership with a narrow age range that outgrows the magazine every few years.

“It’s always been such a volatile market because your audience morphs so rapidly,” said John Harrington, an industry consultant.

Teen Vogue was introduced when many magazine publishers were trying to appeal to the children of baby boomers entering their teen years.

Anna Wintour, the editor in chief of Vogue, had been inspired by her own teenage daughter’s take on fashion and asked Amy Astley, the magazine’s beauty director at the time, to design some test issues of a teenage version of Vogue.

Ms. Astley, the mother of daughters ages 10 and 13, became the editor in chief of the new magazine, and learned early on that Teen Vogue attracted what she described as “an audience of sophisticated young women who wanted to see fashion presented in a way not seen in other magazines.”

Ms. Astley said she was quickly flooded with questions on what she described as “evergreen issues” — like trying to be perfect, sibling rivalries and critical mothers. She also realized how much her readers wanted to connect with the brand and how much information they wanted about how to break into the fashion industry.

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Americans Closest to Retirement Were Hardest Hit by Recession

David Maxwell for The New York Times

Susan Zimmerman, 62, has three part-time jobs.

Michael Stravato for The New York Times

Arynita Armstrong, 60, at her home in Willis, Tex. She last worked five years ago. “When you’re older, they just see gray hair and they write you off,” she says.

In the current listless economy, every generation has a claim to having been most injured. But the Labor Department’s latest jobs snapshot and other recent data reports present a strong case for crowning baby boomers as the greatest victims of the recession and its grim aftermath.

These Americans in their 50s and early 60s — those near retirement age who do not yet have access to Medicare and Social Security — have lost the most earnings power of any age group, with their household incomes 10 percent below what they made when the recovery began three years ago, according to Sentier Research, a data analysis company.

Their retirement savings and home values fell sharply at the worst possible time: just before they needed to cash out. They are supporting both aged parents and unemployed young-adult children, earning them the inauspicious nickname “Generation Squeeze.”

New research suggests that they may die sooner, because their health, income security and mental well-being were battered by recession at a crucial time in their lives. A recent study by economists at Wellesley College found that people who lost their jobs in the few years before becoming eligible for Social Security lost up to three years from their life expectancy, largely because they no longer had access to affordable health care.

“If I break my wrist, I lose my house,” said Susan Zimmerman, 62, a freelance writer in Cleveland, of the distress that a medical emergency would wreak upon her finances and her quality of life. None of the three part-time jobs she has cobbled together pay benefits, and she says she is counting the days until she becomes eligible for Medicare.

In the meantime, Ms. Zimmerman has fashioned her own regimen of home remedies — including eating blue cheese instead of taking penicillin and consuming plenty of orange juice, red wine, coffee and whatever else the latest longevity studies recommend — to maintain her health, which she must do if she wants to continue paying the bills.

“I will probably be working until I’m 100,” she said.

As common as that sentiment is, the job market has been especially unkind to older workers.

Unemployment rates for Americans nearing retirement are far lower than those for young people, who are recently out of school, with fewer skills and a shorter work history. But once out of a job, older workers have a much harder time finding another one. Over the last year, the average duration of unemployment for older people was 53 weeks, compared with 19 weeks for teenagers, according to the Labor Department’s jobs report released on Friday.

The lengthy process is partly because older workers are more likely to have been laid off from industries that are downsizing, like manufacturing. Compared with the rest of the population, older people are also more likely to own their own homes and be less mobile than renters, who can move to new job markets.

Older workers are more likely to have a disability of some sort, perhaps limiting the range of jobs that offer realistic choices. They may also be less inclined, at least initially, to take jobs that pay far less than their old positions.

Displaced boomers also believe they are victims of age discrimination, because employers can easily find a young, energetic worker who will accept lower pay and who can potentially stick around for decades rather than a few years.

“When you’re older, they just see gray hair and they write you off,” said Arynita Armstrong, 60, of Willis, Tex. She has been looking for work for five years since losing her job at a mortgage company. “They’re afraid to hire you, because they think you’re a health risk. You know, you might make their premiums go up. They think it’ll cost more money to invest in training you than it’s worth it because you might retire in five years.

“Not that they say any of this to your face,” she added.

When older workers do find re-employment, the compensation is usually not up to the level of their previous jobs, according to data from the Heldrich Center for Workforce Development at Rutgers University.

In a survey by the center of older workers who were laid off during the recession, just one in six had found another job, and half of that group had accepted pay cuts. Fourteen percent of the re-employed said the pay in their new job was less than half what they earned in their previous job.

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Washington Posts Joins List of Media Hacked by the Chinese

SAN FRANCISCO — The question is no longer who has been hacked. It’s who hasn’t?

The Washington Post can be added to the growing list of American news organizations whose computers have been penetrated by Chinese hackers.

After The New York Times reported on Wednesday that its computers as well as those of Bloomberg News had been attacked by Chinese hackers, The Wall Street Journal said on Thursday that it too had been a victim of Chinese cyberattacks.

According to people with knowledge of an investigation at The Washington Post, its computer systems were also attacked by Chinese hackers in 2012. A former Post employee said there had been hacking attempts at the Washington Post for at least four years, but none targeted the company’s newsroom. Then, last year, newsroom computers were found to be communicating with Web servers that were traced back to China, according to people with knowledge of the Post investigation who declined to speak on the record.

Jennifer Lee, a spokeswoman for the Post Company, said that the “company did not have anything to share at this time.”

Security experts said that starting in 2008, Chinese hackers began targeting American news organizations as part of an effort to monitor coverage of Chinese issues.

In a report for clients in December, Mandiant, a computer security company, said that over the course of several investigations it found evidence that Chinese hackers had stolen e-mails, contacts and files from more than 30 journalists and executives at Western news organizations, and had maintained a “short list” of journalists for repeated attacks.

Among those targeted were journalists who had written about Chinese leaders, political and legal issues in China and the Chinese telecom giants Huawei and ZTE.

The Times reported on Wednesday that Bloomberg L.P. was also attacked by Chinese hackers after its Bloomberg News unit published an article last June about the wealth accumulated by relatives of Xi Jinping, China’s vice president at the time. Mr. Xi became general secretary of the Communist Party in November and is expected to become president in March.

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DealBook: Justice Dept. Seeks to Block $20 Billion Merger of Brewers

8:57 p.m. | Updated

For more than a decade, the world’s biggest brewers have been swallowing competitor after competitor as they grapple with slowing growth in many markets. Now, the Obama administration wants to cut them off.

The Justice Department on Thursday sued to block Anheuser-Busch InBev’s $20.1 billion deal to buy Grupo Modelo, the Mexican maker of Corona beer, saying that the merger would cement Anheuser-Busch InBev’s control of the market and enable it to continue to raise beer prices. Grupo Modelo is the third-biggest beer company in the United States.

“This is the sort of product that matters to consumers,” William J. Baer, head of the Justice Department’s antitrust division, said in a conference call with reporters. “If you have a very slight price increase that happens because of this deal, it could mean that consumers will pay billions of dollars more.”

The lawsuit is the first major roadblock in a decade of consolidation by brewers around the world, which has reduced the industry to only a few major players, primarily multinationals that own a majority of big brands.

At the top worldwide is Anheuser-Busch InBev, itself the product of a 2008 merger between a St. Louis-based icon and a Belgian-Brazilian brewing juggernaut. To compensate for slow growth in developed economies like the United States, the company has been seeking significant footholds in emerging markets like Mexico.

Since the middle of 2008, the brewer has announced more than 15 takeovers, according to Capital IQ.

The government’s lawsuit details how in California, a price war among the biggest brewers had led Anheuser to complain in internal documents that Modelo’s strategy was “eating [Budweiser’s] lunch.” According to the suit, a sales executive said that “California is a burning platform” for Anheuser.

With the lawsuit, the Justice Department is again flexing its aggressive antitrust muscle. It is the biggest deal to be opposed since 2011, when the government sued to stop AT&T’s proposed $39 billion takeover of T-Mobile USA. (Those companies abandoned the deal.)

The antitrust action is in an industry that previous administrations had allowed waves of consolidation. Anheuser-Busch InBev; the acquisitive SABMiller, which is one of MillerCoors’s parents; and Grupo Modelo have 72 percent of the $80 billion American beer market, giving them enormous power over pricing.

Despite the explosion of smaller breweries in recent years, industry analysts say that the craft beer market makes up just 6 percent of beer sales.

The biggest in the market, Anheuser — brewer of Budweiser and Stella Artois — has raised its prices with regularity every year, with MillerCoors following suit, the Justice Department said.

“Even small price increases could lead to significant harm,” Mr. Baer said.

Like AT&T, which ferociously battled the government’s case for months, Anheuser-Busch InBev has promised a fight. In a statement, the company said, “We remain confident in our position, and we intend to vigorously contest the D.O.J.’s action in federal court.”

Yet behind the scenes, the two sides will continue to try to reach a settlement.

Analysts were divided over how significant a hurdle the lawsuit posed. In a research note on Thursday, analysts at UBS wrote that the case wasn’t a “deal breaker,” expecting Anheuser to give up what they called “reasonable” concessions.

Anheuser has long pursued the benefits of consolidation, including opportunities to cut costs. Last summer, the company agreed to buy the 50 percent that it did not already own in Modelo, a deal that would give it full control of Corona, the United States’ top imported beer brand.

“In this case, there are pretty significant synergies,” said Harry Schuhmacher, the editor of Beer Business Daily. “Anheuser can afford to overpay for Modelo and is eager to.”

He added that he believed the Modelo deal was the end of beer deals for a long time, especially among the beer giants. Some consolidation could still be in store among smaller companies.

The Justice Department’s lawsuit is the first prominent antitrust action on the watch of Mr. Baer, who took over as President Obama’s top antitrust lawyer at the beginning of the year. Mr. Baer, who previously worked at the Federal Trade Commission and in private practice at the law firm Arnold & Porter, is the first permanent antitrust chief since August 2011, when Christine A. Varney stepped down.

Ms. Varney left the government to join Cravath, Swaine & Moore, where she is now leading Modelo’s antitrust defense.

The Justice Department contends that taking over full control of Modelo would give Anheuser overwhelming control both nationally and in markets like California, Texas and New York.

Mindful of potential antitrust issues, Anheuser has proposed selling Modelo’s 50 percent stake in Crown Imports, the main importer of Corona in the United States, to Constellation Brands for nearly $1.9 billion. Anheuser has said that Crown is what dictates the prices of Modelo products, and that selling the stake removes any say that it would have in the matter.

But the Justice Department called that offer a “facade,” arguing that Crown’s dependence on Modelo products makes it effectively subject to Anheuser’s wishes. The government’s lawsuit highlighted an internal e-mail from Crown’s chief executive, Bill Hackett, to employees that read, “Our #1 competitor will now be our supplier.”

Since the Modelo deal’s announcement last June, consumer advocacy groups have called for government intervention.

“Obviously, beer is different from most other goods and services because there are significant public health issues relating to alcohol,” said Sandeep Vaheesan, special counsel at the American Antitrust Institute, a nonprofit group that supports stronger enforcement of the antitrust laws. “But an antitrust analysis looks strictly at promoting competitive prices, product innovation and consumer choice, and this deal thwarts those objectives.”

Thursday’s lawsuit is the most prominent setback in the deal-making career of Carlos Brito, Anheuser’s chief executive. Mr. Brito helped lead the growth of AmBev, a regional Brazilian brewer, into a global giant through a successive series of takeovers.

“I’m not sure if this is the end, but Brito’s a guy who’s used to getting what he wants,” said Lew Bryson, a writer who follows the beer industry. “InBev isn’t a company that’s growing much organically. It’s grown by acquisition.”

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Facebook Beats Forecasts on Earnings and Revenue

SAN FRANCISCO — Facebook made a lot of money in the last quarter. It also spent a lot. And that made investors once again cautious about the company.

After an eight-month roller coaster ride on the public markets, Facebook did well in the fourth quarter of 2012 by aggressively ramping up advertisements aimed at its users, including on mobile phones. In its financial report on Wednesday, it beat expectations, increasing revenue by a handsome 40 percent from the same period a year ago.

But its expenses also climbed rapidly as the company hired engineers and built data centers, causing profit to dip from the last quarter in 2011. With that, Wall Street lost some enthusiasm.

Facebook shares, which had closed at $31.24 on Wednesday, fell more than 3 percent in after-hours trading after the results were released.

In recent weeks, the stock had recovered much of the ground it lost in the eight months since its introduction last year.

“The quarter was a little like a cold shower after you’ve been out all night — it’s something that makes you sober up very quickly,” said Jordan Rohan, an analyst at Stifel Nicolaus, adding that the numbers made it clear that Facebook intended to spend more “to go after the opportunities before them.”

In the conference call with analysts after the earnings report, Mark Zuckerberg, chief executive of Facebook, cautioned Wall Street that profit might not grow as fast as investors would like. That, he said, was because Facebook would continue to spend money hiring people and building products for the future, like the new search tool it introduced earlier this month. “It’s important to start planting seeds,” he said.

The most closely watched part of the earnings report was how much money the company brought in from its mobile users; most people log in to the site using their cellphones. Facebook said advertising on the mobile newsfeed accounted for 23 percent of its advertising revenue, up from 14 percent in the third quarter but slightly lower than some analysts had forecast.

Mr. Zuckerberg predicted that the company would eventually make more money on every minute spent on the Facebook mobile app than on the desktop computer.

Facebook reported fourth-quarter revenue of $1.59 billion, compared with $1.52 billion predicted by analysts surveyed by Bloomberg. The company earned $64 million in net income, or 3 cents a share. Excluding certain items, Facebook said it had a net income of $426 million in the fourth quarter, or 17 cents a share, beating analysts’ expectations by 2 cents.

Facebook’s biggest, long-term challenge remains how to profit from the enormous piles of personal data of its one billion users without alienating them or inviting the wrath of government regulators in the United States and abroad. The company reported on Wednesday that it had 1.06 billion active users — those who log in at least once a month.

Secondarily, it must figure out a way to profit abroad. Most of its revenue still comes from North America and to a lesser extent Europe.

Despite the stock’s decline after the earnings report, it is still much recovered since last year’s slump. It opened at $38 a share last May, but shortly after that, the stock plummeted as Wall Street soured on its ability to increase profit as fast as investors wanted. Shares sank to half the public offering price last September.

But the company focused on its advertising business and released a series of new products aimed at taking on some of its biggest rivals, including Google and Apple. Mr. Zuckerberg took the initiative to reassure investors it had their interests at heart. The improvement in the share price in recent weeks suggests that the company’s charm offensive is paying off.

In the last few months, Facebook has floated several trial balloons aimed at pleasing Wall Street and, in particular, convincing investors that it can thrive in the mobile era.

It offered marketers more refined targeting options, including Facebook Exchange, which allows companies to track users as they are browsing and shopping for products around the Web and lets companies show advertisements for those products when the users log back on to Facebook.

Before Christmas last year, in a bid to step into territory dominated by Amazon, it introduced the Gifts application, which lets users buy goods and services for their Facebook friends, and in turn, share with the company an extremely valuable piece of data: their credit card numbers. The company made clear in the conference call on Wednesday that this would not be an immediate moneymaker.

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European Cloud Over Ford

DETROIT — Last year, Ford Motor broke ranks with other auto companies when it announced major cuts in its troubled European operations, including the closing of three factories, to address a sharp downturn in sales on the continent and an oversupply of vehicles.

On Tuesday, Ford, the second-biggest American automaker, behind General Motors, startled the industry again by predicting that Europe, a critical market, would get worse before it begins improving later this year.

Ford said European auto sales, including commercial vehicles, could fall as low as 13 million this year, and its own annual losses in the region could reach $2 billion. Europe is Ford’s second-largest market, after North America.

“The industry did 14 million last year, and that was the worst in 20 years,” Bob Shanks, Ford’s chief financial officer, said in an interview. “But the industry is continuing to decline, and we think 13 million is the trough.”

The dire predictions for Europe overshadowed what were otherwise positive fourth-quarter results, which Ford reported on Tuesday.

The company reported a 54 percent gain in adjusted fourth-quarter profit as strong earnings in North America compensated for heavy losses in Europe. Ford said it earned $1.6 billion in the fourth quarter of 2012 compared to $1.03 billion a year earlier, excluding the impact of tax-valuation allowances in 2011. Those allowances inflated last year’s fourth-quarter net income to $13.6 billion.

For the full year, Ford said it earned $5.67 billion, a 5 percent drop from $5.97 billion in 2011, not including the tax-valuation changes, which increased the 2011 earnings to $20.2 billion.

The auto market in Western Europe remains abysmal, but some analysts agree with Ford’s assessment that sales may be close to their low point and could start to recover late this year as the euro zone crisis subsides.

Analysts at Goldman Sachs forecast that European auto sales would fall an additional 2.2 percent in 2013, to 12.9 million vehicles. But they will rise 3.9 percent in 2014, Goldman predicted, as car buyers start to feel more secure about their economic prospects.

In the meantime, though, companies like General Motors’ Opel unit and PSA Peugeot Citröen are trying to make broad reductions in jobs and production capacity.

The recovery, if it comes, could be too late for many workers and even some of the manufacturers.

The companies that have suffered the most are those that depend on the mass market and on southern Europe, including Fiat, Peugeot and Renault. Steady declines in sales since 2007 have left two-thirds of European auto plants operating at a loss, Goldman Sachs analysts estimated.

North American sales have been a bright spot for the world’s automakers, and Ford is no exception. Ford’s overall revenue in the fourth quarter was $36.5 billion, a 5 percent increase from $34.6 billion in the same period a year earlier. For all of 2012, revenue was $134.3 billion, 1 percent less than $136.3 billion in 2011.

Healthy sales of new vehicles in North America resulted in good profit margins, particularly in the United States, where the overall industry grew 13 percent last year.

Ford said it had $1.87 billion in pretax earnings in North America during the quarter, a 110 percent increase from $889 million in the fourth quarter of 2011. For all of 2012, Ford had pretax profit of $8.34 billion in North America, compared to $6.19 billion in 2011.

But the company’s European operations continued to struggle as overall demand plunged, particularly in southern Europe.Ford reported a $732 million pretax loss in Europe for the fourth quarter, compared with a $190 million loss in the same period in 2011.

For all of 2012, Ford said it had a pretax loss of $1.75 billion in the region. By comparison, the company reported a loss of $27 million in Europe for all of 2011.

Investors, apparently shaken by the scale of the losses and Ford’s dismal forecast for 2013, sent the automaker’s shares down nearly 5 percent to $13.14 in Tuesday’s trading.

Jack Ewing contributed reporting from Frankfurt.

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Media Decoder: Tsujihara to Succeed Meyer as Head of Warner Brothers

LOS ANGELES — Kevin Tsujihara will succeed Barry M. Meyer as chief executive of Warner Brothers, the studio announced on Monday, ending a disruptive and lingering competition for one of the biggest jobs in Hollywood. But, with two senior Warner executives publicly passed over, disorder at the studio could continue.

Home to Batman, Bugs Bunny, “Two and a Half Men” and TMZ.com, Warner is Hollywood’s largest movie and television studio. It has also been the industry’s most stable. Mr. Meyer, who is retiring, has led Warner since 1999; a single management team oversaw the studio for the previous 18 years.

A two-year succession contest, however, has brought escalating internal tension, a slowing of routine business and low morale, according to Warner employees and people who have had business dealings with the company. Jeffrey L. Bewkes, chief executive of Time Warner, moved on Monday to end that distraction by promoting Mr. Tsujihara, 48. Scheduled to take over on March 1, Mr. Tsujihara most recently ran Warner’s home entertainment unit, which includes video games and the online distribution of movies and television shows.

“Kevin’s experience is very balanced and has touched all parts of Warner,” Mr. Bewkes said in a telephone interview. “He also has the right temperament to be an effective unifier and leader.”

Mr. Tsujihara immediately faces the challenge of retaining the two executives he beat out for the job. They are Bruce Rosenblum, president of Warner Television, and Jeffrey Robinov, president of Warner’s movie division. Mr. Bewkes said he wanted to “keep everybody on the field,” adding that Mr. Rosenblum and Mr. Robinov both have “very big, full jobs.”

Even so, Mr. Rosenblum, who runs Warner’s most profitable division and had been seen by many in Hollywood as the leading candidate to succeed Mr. Meyer, did not hide his displeasure at losing. “Obviously, I’m disappointed; who wouldn’t be?” he said in a statement. He added that Warner “will be in good hands with Kevin.”

Mr. Robinov was more effusive about his new boss. “I am truly happy and proud of Kevin,” he said in a separate statement. “We are both good friends and colleagues, and I think he’s an excellent choice for the job.”

Will Mr. Rosenblum and Mr. Robinov ultimately leave? “We both hope they will stay and support Kevin,” Mr. Meyer, 69, said in a telephone interview. He added, however, “This is news to everybody, and I think they’re thinking it over.”

In some ways, Mr. Tsujihara’s ascendance can be seen as a clear statement of what Time Warner thinks its studio most needs to face the challenges ahead.

While he is respected in Hollywood’s creative community of producers, writers, directors and agents, Mr. Tsujihara does not come from the trenches. Instead, he has been grappling with the Web as a disrupter of distribution and business models. He has also been Warner’s point person on piracy.

Mr. Meyer said Mr. Tsujihara’s qualifications went well beyond that. Calling Mr. Tsujihara “deliberate and thoughtful,” he underscored his successor’s creative skill. In recent years, for instance, Mr. Tsujihara has played a role in deciding what movies Warner puts into production, even routinely reading scripts, Mr. Meyer said. Mr. Tsujihara was also the executive that Warner dispatched to New Zealand in 2010 to solve a labor dispute that threatened “The Hobbit: An Unexpected Journey” and two sequels.

Speaking by telephone, Mr. Tsujihara said his immediate plans are “to do a lot of listening” and to work with his former rivals to “create the right transition and the right organizational structure moving forward.”

“I’m coming in at a great time, not a time when we have to make massive changes because we’re not successful,” he said.

Warner, which was founded in 1923, produces more than 50 television programs for various networks, including “The Ellen DeGeneres Show,” “The Middle” and “The Mentalist.” Last year Warner movies took in about $4.3 billion at the global box office, with hits that included “The Dark Knight Rises” and “Magic Mike.”

Still, the studio faces significant competition in television production from 20th Century Fox and has struggled to bring its stable of DC Comics superheroes — Wonder Woman, Green Lantern, the Flash — to movie audiences as Disney’s Marvel Studios has introduced one superhero hit after another.

Mr. Tsujihara joined Warner in 1994 to help with its interest in the Six Flags theme parks. Before taking over home entertainment in 2005, he worked in the studio’s business development and strategy department.

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Stanley Karnow, Historian and Journalist, Is Dead at 87

Stanley Karnow, a Pulitzer Prize-winning historian and journalist who produced acclaimed books and television documentaries about Vietnam and the Philippines in the throes of war and upheaval, died on Sunday at his home in Potomac, Md. He was 87.

The cause was congestive heart failure, said Mr. Karnow’s son, Michael.

For more than three decades Mr. Karnow was a correspondent in Southeast Asia, working for Time, Life, The Saturday Evening Post, The Washington Post, NBC News, The New Republic, King Features Syndicate and the Public Broadcasting Service. But he was best known for his books and documentaries.

He was in Vietnam in 1959, when the first American advisers were killed, and lingered long after the guns fell silent, talking to fighters, villagers, refugees, North and South Vietnamese political and military leaders, the French and the Americans, researching a people and a war that had been little understood.

The result was the 750-page book “Vietnam: A History,” published in 1983, and its companion, a 13-hour PBS documentary, “Vietnam: A Television History.” Unlike many books and films on Vietnam in the 1960s and ’70s and the nightly newscasts that focused primarily on America’s role and its consequences at home and abroad, Mr. Karnow addressed all sides of the conflict and traced Vietnam’s culture and history.

“Vietnam: A History” was widely praised and a best seller. The documentary, with Mr. Karnow as chief correspondent, was at the time the most successful ever produced by public television, viewed by an average of nearly 10 million people a night through 13 episodes. It won six Emmy Awards, as well as Peabody, Polk and duPont-Columbia awards.

Six years later, Mr. Karnow delivered his second comprehensive book and television examination of a Southeast Asian nation. The book, “In Our Image: America’s Empire in the Philippines” (1989), was a panorama of centuries of Filipino life under Spanish and American colonial rule, followed by independence under sometimes corrupt American-backed leaders. It won the 1990 Pulitzer Prize for history.

Narrated by Mr. Karnow, the three-part PBS documentary “The U.S. and the Philippines: In Our Image” traced America’s paternalistic colonial rule in the Philippines, the shared suffering of Filipinos and Americans under a cruel Japanese occupation in World War II, and Manila’s postwar independence under regimes nominally democratic but repressive, corrupt or indifferent to the miseries of its people.

Mr. Karnow also wrote “Mao and China: From Revolution to Revolution” (1972) and was a co-author of or contributor to books based on his years in Asia, including “Asian-Americans in Transition” (1992), “Passage to Vietnam” (1994), “Mekong” (1995) and “Historical Atlas of the Vietnam War” (1995).

Early in his career he lived in Paris for a decade, and in 1997 he published a memoir, “Paris in the Fifties.” A nostalgic reporter’s notebook of life among the cafe philosophers, berated musicians and pseudo-revolutionary artistes, it danced with digressions about taxes, restaurants, the guillotine, Hemingway, Charles de Gaulle and the Devil’s Island penal colony.

In its range, learning and appetite for fun, Bernard Kalb, the former CBS reporter and Mr. Karnow’s friend since Vietnam, told The Associated Press in 2009, the memoir was vintage Karnow. “Stanley has a great line about how being a journalist is like being an adolescent all your life,” he said.

Stanley Karnow was born in Brooklyn on Feb. 4, 1925, the son of Harry and Henriette Koeppel Karnow. He grew up in a city with more than a dozen daily newspapers and decided early that he wanted to become a reporter. He served in the Army Air Forces in World War II. After graduating from Harvard with a bachelor’s degree in 1947, he sailed for France, intending to spend the summer. He stayed for a decade.

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7 Die in Fire At Factory In Bangladesh

A.M. Ahad/Associated Press

Firefighters and volunteers worked to extinguish the fire at a small garment factory in Bangladesh’s capital on Saturday.

DHAKA, Bangladesh — In the latest blow to Bangladesh’s garment industry, seven workers died Saturday after a fire swept through a factory here not long after seamstresses had returned from a lunch break. Workers said supervisors had locked one of the factory exits, forcing some people to jump out of windows to save their lives.

Abir Abdullah/European Pressphoto Agency

Relatives mourned beside the bodies of workers killed in the fire at a hospital in Dhaka.

Reuters

People sifted through the wreckage at the Smart Fashions factory.

The fatal fire comes roughly two months after the blaze at the Tazreen Fashions factory left 112 workers dead and focused global attention on unsafe conditions in Bangladesh’s garment industry. Tazreen Fashions, located just outside Dhaka, the capital, had been making clothing for some of the world’s biggest brands and retailers, including Walmart.

In the aftermath of the Tazreen Fashions fire, political and industrial leaders in Bangladesh pledged to quickly improve fire safety and even conducted high-profile, nationwide inspections of many of the country’s 5,000 clothing factories. And global brands promised they would not buy clothes from unsafe factories.

But Saturday’s fire in a densely populated section of Dhaka is a grim reminder that the problems remain. The blaze erupted about 2 p.m. at Smart Garment Export, a small factory that employed about 300 people, most of them young women who were making sweaters and jackets. All seven of the dead workers were women.

Masudur Rahman Akand, a supervisor in the fire department, said the factory’s workers were returning from lunch when the blaze erupted in a storage area. The factory was located on the second floor of a building, above a bakery, and it lacked proper exits and fire prevention equipment, Mr. Akand said.

“We did not find fire extinguishers,” he said. “We did not find any safety measures.”

With smoke filling the factory floor, workers apparently panicked. Mr. Akand said the seven workers who died either suffocated or were trampled by people trying to escape.

Eight other workers were hospitalized with injuries. Some of them told rescuers that many people could not quickly escape because one of the exits was blocked by a locked steel gate. Witnesses said people began jumping out of windows before the gate was unlocked.

Azizul Hoque, a police supervisor, said the investigation was continuing. “We do not know the reason or the source or the origin of the fire,” he said.

It was unclear whether the Smart Garment factory was making clothing for international brands or retailers. Dhaka’s industrial areas are filled with factories, large and small, that produce clothing for much of the Western world.

Julfikar Ali Manik reported from Dhaka, and Jim Yardley from New Delhi.

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Pictures from the Week in Business

The port of Tokyo. Following the lead of their counterparts in the United States, Japan’s central bankers announced on Tuesday what they called a groundbreaking effort to reinvigorate the country’s long-moribund economy and defeat deflation. With no room left to cut interest rates and previous steps unsuccessful, the Bank of Japan is taking a page from the Federal Reserve’s playbook and will pump trillions more yen into the economy by directly buying government bonds and other assets.

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Starbucks Earnings Increased 13% in Latest Quarter

The company’s results were helped by a 6 percent increase in global sales at cafes open at least a year.

The performance reflects the turnaround Starbucks has made since its struggles during the recession. After bringing back its founder, Howard Schultz, as chief executive in 2008, the company embarked on a reorganization that included closing underperforming stores in the United States.

Mr. Schultz has said that the company has the ability to keep growing even through a turbulent economy because most people see Starbucks as an “affordable luxury.”

Starbucks said it earned $432.2 million, or 57 cents a share, in the quarter, up from $382.1 million, or 50 cents a share, a year earlier. Revenue in the period ending Dec. 30, the first quarter of Starbucks’s fiscal year, rose 11 percent, to $3.8 billion. Analysts had expected a profit of 57 cents a share and revenue of $3.85 billion, according to FactSet.

Shares rose 11 cents on Thursday, to $54.57 a share.

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Edging From Europe, Britain Adds to Continent’s Unease

Oli Scarff/Getty Images

Prime Minister David Cameron of Britain speaking in London on Wednesday.

BRUSSELS — The French are engaged in a lonely military adventure in Africa. The Germans are preoccupied with domestic elections rather than regional affairs. Unemployment in some countries is at historic highs and economies across Europe are still mired in recession.

Now Prime Minister David Cameron of Britain has added to Europe’s malaise, vowing to reduce British entanglement with the European Union — or allow his people to vote in a referendum to leave the bloc altogether.

The pledge from the British prompted swift retorts from France and Germany, which said no member has the option of “cherry picking” whatever European rules it wants to enforce. But it reflected a growing sense of unease, not only in Britain but across the Continent, that while the acute phase of the financial crisis has passed, the challenge to Europe’s mission and even its membership has not.

Even the United States has injected itself into the matter, with an unusually public insistence that Britain, a close ally, stay in the union, fearing that its departure would heighten centrifugal forces that would weaken Europe as a diplomatic, military and financial partner.

With the threat of a sudden breakup of the euro zone appearing to recede in recent months, Europe has seen a resurgence of narrow national interests that risks swamping always-elusive common goals. The bickering is undercutting hopes in some circles that the struggle to save the euro had laid the groundwork for “more Europe.”

“As pressure from the financial markets recedes and a sense of urgency lifts, the appetite for serious reform is melting away like butter in the sun,” said Thomas Klau, head of the Paris office of the European Council on Foreign Relations. “Now that markets no longer hold a knife under leaders’ throats, they are slipping back into their normal mode, which is to manage their own immediate reality.”

For Mr. Cameron, with elections coming in 2015, that means heading off a challenge from the hard-right, anti-Europe U.K. Independence Party, known as UKIP, while shoring up support for his government, which recently admitted that its unpopular austerity program would have to be extended to 2018, analysts said. He is also anxious to avoid the sort of ruinous intraparty split over Europe that bedeviled the prime ministerships of two of his Conservative predecessors, Margaret Thatcher and John Major.

That comes against a backdrop of declining public support for British membership in Europe — only 45 percent last year, down from 51 percent in 2011, in polls conducted by the Pew Research Global Attitudes Project.

Mr. Cameron’s speech Wednesday in London calling for a referendum had been in the works for some time but, Mr. Klau noted, it was delivered at a moment when the European Union had begun to declare victory over doomsayers who predicted the common currency and even the whole union could crumble. This mood of calm, Mr. Klau said, has given leaders “the political space” to turn their eyes from Europe toward more pressing and, for politicians seeking re-election, far more important domestic concerns.

The decision by President François Hollande of France to send troops to Mali to halt an advance by rebels with ties to Islamist extremists reprises a long tradition of French interventions in its former African colonies — and has bolstered the Socialist president’s previously flagging popularity.

The French move has been supported by the European Union, whose member states share French fears about the spread of radicalism across the Mediterranean. But it has superseded the bloc’s own ambitions to become a serious player in global affairs and still left the French to fight mostly on their own. The union is sending some military trainers.

Europe’s economic troubles, meanwhile, are far from over, with much of the Continent expected to be in recession this year. Even Germany seems to be losing momentum — its economy contracted by 0.5 percent in the final months of last year. Elsewhere, unemployment is soaring to levels that could threaten grave social unrest, with more than a quarter of working-age people in Greece and Spain without jobs.

Alan Cowell contributed reporting from London.

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