AABA Altaba Inc

By Mike Shields 

FOX NEWS UNDER REVIEW: Did 21st Century Fox fail to tell its investors how much it was paying out in sexual-harassment claims? That's what federal prosecutors want to know. If true, the media conglomerate may have violated federal securities laws, The Wall Street Journal reports. This stems from an internal report conducted by Fox News in November following a string of allegations against former Fox News Chairman and Chief Executive Roger Ailes, who stepped down in July in the wake of a sexual-harassment scandal. The Manhattan U.S. attorney's office ended up reviewing that report, which may indicate Fox News had indeed set aside money for such claims under another name. While former Fox News anchor Gretchen Carlson sued Mr. Ailes for sexual harassment in July, the settlements the government is interested are believed to have occurred before that very public case. As of Wednesday, the network has acknowledged talking to the feds but hasn't said what that conversation is about. (21st Century Fox and Wall Street Journal-owner News Corp were part of the same company until mid-2013.)

HYPER TARGETING: Advertisers love digital media for its precision targeting capabilities -- and the ability to track a return on their investments. Gizmodo Media Group is betting online ads can be so laser focused they can reach people who can spill the beans on President Trump -- and the return in this case could be to severely damage his presidency. Specifically, the Univision Communications-owned publisher, which runs sites such as Fusion Gizmodo, is running ads on Facebook aimed specifically at people employed by federal agencies , CMO Today reports. The ads urge potential leakers to share their Trump dirt via a secure website, TellOnTrump.com. Gizmodo also plans to buy bus-shelter ads near certain government buildings. Is this a publicity stunt? A futile effort? The 2017 version of dumpster diving? It's worth noting parent company Univision clashed with Mr. Trump during his campaign, though the president met with executives from the media firm last month.

DISCOUNT DOUBLE CHECK: Remember when Verizon agreed to buy Yahoo? The transaction seems as if it was five years and a dozen data mishaps ago. The much-delayed merger finally may be closer to reality, as Verizon's lawyers have negotiated a deal that knocks close to $300 million off the original price, WSJ reports. The idea is to make up for whatever value Yahoo has lost since it disclosed a pair of massive data breaches some worried would threaten the acquisition. In addition to taking a few bucks off the price tag, Yahoo and Verizon are working on an agreement to share in any future liabilities that might result from the breaches. If things work out, the transaction could close in April, which from Verizon's perspective can't come soon enough The thrust behind combining Verizon's mobile audience and data with that of both AOL (which it acquired in 2015) and Yahoo was to form a powerful competitor to Google and Facebook. The longer this all takes, the harder that will be to accomplish.

BREATHING ROOM: In November, WSJ broke the news that MDC Partners potentially was on the block and undergoing a strategic review. That news came on the heels of weak third-quarter earnings, missed analysts' expectations, and a Securities and Exchange Commission probe of the company's accounting and expenses. There is no sale just yet, but the ad agency holding company, which owns firms such as 72 and Sunny and Crispin Porter + Bogusky, just got a $95 million shot in the arm in the form of a 15% stake taken by Goldman Sachs. That valued MDC's shares at $10, a 48% premium, WSJ reports. The money will be used to help MDC pay down debt and keep its lights on. More important, it gives management more time to figure out its next move.

Elsewhere

A group of NBA players, along with the league's union, are set to discuss a plan that would allow for individual stars to market their own images and profit from associated merchandise, separate from the professional sports organization's overall marketing deals. [ WSJ]

Instead of the five splashy upfront sales events it held last year for its various networks, Viacom is planning to host a half a dozen or more intimate gatherings between its ad sales team and ad buyers as well as new CEO Bob Bakish. [ Adweek]

"The Daily Show" is no longer available on Hulu, as Comedy Central is urging fans to watch the show on its site, part of parent company Viacom's broader push to protect the traditional cable model. [ Variety]

Twitter is taking steps to limit the reach of tweets from users it deems abusive, rather than kick them off the service. [BuzzFeed]

The Venezuelan government yanked CNN En Español off the air after the network aired a report on the country's top officials allegedly selling bogus passports. [ WSJ]

CBS reported a fourth-quarter advertising revenue decline driven by airing fewer NFL games in prime time and lower NFL ratings overall. CBS Chief Executive Les Moonves said the network met with the league several times to discuss ways to speed up its games. [ WSJ]

CBS is close to renewing its hit sitcom "The Big Bang Theory," for two more seasons. The show is in the midst of its 10th season, and many of the top actors' contracts were up for renewal at the end of this season. [ Variety]

Ad buyers expect any partnerships with social-media influencers will warrant serious scrutiny following the backlash over YouTube star PewDiePie featuring anti-Semitic messages in several recent videos. [ CMO Today]

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Write to Mike Shields at mike.shields@wsj.com

(END) Dow Jones Newswires

February 16, 2017 07:56 ET (12:56 GMT)

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