Estimates suggest 400,000 people are employed to build up credits in online games such as World of Warcraft and EverQuest by virtual gold mining or r such ways of building up in-game credits that can be translated into real value.This article titled “How gold farmers reap huge harvest from online gaming” was written by Josh Halliday, for The Guardian on Wednesday 25th May 2011 19.15 UTCTens of millions of people spend hours and pay big money for virtual gains on the most popular multiplayer online games, including World of Warcraft, Eve Online and EverQuest.Behind these games are “gold farmers”, who spend hours within the games each day, gathering virtual credits and selling them to gamers for real world cash.The most recent estimates, from 2009, suggest that 400,000 people are employed as gold farmers across the world, with 85% of those in China and Vietnam, according to Professor Richard Heeks of the University of Manchester.These gold farmers are almost entirely males between 18 and 25, and most are either cash-strapped college students or unemployed rural migrants. They sell in-game advantages – an increased skill level, or a virtual ore – to players eager to boost their online reputation.The multiplayer online games industry has boomed in recent years thanks to increased internet access and the rise of social networks. World of Warcraft, easily the most popular of its kind, had 12 million subscribers last year.According to a report published by the World Bank last month, gold farming was worth about $3bn (£1.85bn) in 2009 – most of which was kept by developing countries. guardian.co.uk © Guardian News & Media Limited 2010Published via the Guardian News Feed plugin for WordPress.Thanks for subscribing to Andy Roberts blogHow gold farmers reap huge harvest from online gamingRelated posts:Farmers collaborate online to face rural uncertaintyOnline advertising in the UKRolling Your Own Online Office
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How gold farmers reap huge harvest from online gaming
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May 29 2011, 9:16am | Comments »
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Goldman Sachs CEO’s pay nearly doubles despite slump in profits
Goldman Sachs‘ chief executive, Lloyd Blankfein, epitomises the unacceptable face of international finance capital. And he takes home $9m more for a year in which the bank‘s profits dropped 38%
This article titled “Goldman Sachs CEO’s pay nearly doubles despite slump in profits” was written by Andrew Clark, for The Observer on Saturday 2nd April 2011 12.12 UTC An era of bonus “restraint” at Goldman Sachs came to a shuddering halt as the Wall Street bank almost doubled the pay package of its chief executive, Lloyd Blankfein, to $18.6m (£11.5m) for 2010 in spite of a slump in profits. Blankfein, 56, who once quipped that his firm does “God’s work”, received share awards of $12.6m on top of a $5.4m performance-related cash bonus, and a salary of $600,000. He also received additional benefits worth $464,000, according to a filing by Goldman at the Securities and Exchange Commission. The postal worker’s son from Brooklyn became a lightning rod for controversy over the banking industry’s excesses during the financial crisis. Goldman was obliged to pay $550m in July to settle fraud charges laid by US prosecutors over the alleged mis-selling of toxic mortgage-related derivatives. Blankfein described being hit by the charges as “one of the worst days in my professional life”. Blankfein’s pay was still far below the record $68m that he received for 2007, before the credit crunch began to bite. But his earnings are almost double last year’s $9.8m – when Goldman declared it was exercising “restraint” in response to public and political pressure over the size of bonuses. “The fact that they would return to a more market-based pay is probably not surprising,” Rose Marie Orens, a senior partner at Compensation Advisory Partners in New York, told Bloomberg News. “They’re not quite back to anything remotely like what they paid in prior years.” It was the first time in three years that Goldman paid a cash bonus to Blankfein. His top lieutenants – including chief financial officer David Viniar and chief operating officer Gary Cohn – got identical $5.4m payouts. This was despite a 38% drop in profits to $7.71bn due to a sharp fall in income from trading and investment banking. Goldman is renowned for being the most hard-driving bank on Wall Street. It has a fiercely competitive ethos but rewards its employees better than any of its rivals. Unlike other top banks, it sensed the imminent implosion in US mortgages in 2007 and heavily hedged its position to protect itself against the credit crunch. Its bonus pool, shared by 35,700 employees worldwide,, including 5,000 in London, amounted to $15.3bn this year – equivalent to nearly $430,000 per person. Blankfein’s remuneration comfortably outstrips the £6.5m bonus paid to Barclays’ chief executive Bob Diamond, who is the highest-paid of Britain’s banking chiefs. In a sign of Goldman’s culture of rewards, even Blankfein’s driver appears to have done well – the bank paid out $185,110 for the CEO’s car and chauffeur, more than double last year’s figure. And Blankfein’s son, also at Goldman, was paid $170,000.
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April 2 2011, 2:56pm | Comments »
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London 2012 tickets, Japan appeal and census targeted by scammers
Warnings issued over phoney doorstop callers, fake emails asking for money and too-good-to-be-true London 2012 Olympic tickets
This article titled “London 2012 tickets, Japan appeal and census targeted by scammers” was written by Jill Insley, for The Observer on Sunday 27th March 2011 00.05 UTC Bogus doorstep callers have been posing as census collectors to try to get into people’s homes – and householders are being warned to be on their guard for fraudsters after today’s deadline for filling in the form. Following an attempt by a fraudster purporting to be a census official from the county council to get into an elderly man’s home in Leicestershire, the Local Government Association has urged people to be vigilant. Paul Bettison, the chairman of local government regulation, said: “Fraudsters are known to take advantage of any situation. If they can make money from it, then they will give it a go. “People visiting a household for official business should be able to provide photographic identification and unless that is the case, nobody should allow anyone access to their property.” Official census collectors will, from 6 April, visit a small number of households that have failed to complete the census – which can be returned in a pre-paid envelope or filled in online – but they will provide identification. Anyone who thinks they have been targeted by a bogus caller should call the census helpline on 0300 0201 101. Fraudsters have also been trying to scam money out of people wanting to donate cash to the Japan Tsunami Appeal. A spokesman for the Red Cross said: “There are some fraudulent emails circulating claiming to be raising money for the Japan Tsunami Appeal. These may request that you donate through companies like Western Union or Money Bookers, which we would never do. If you suspect an email is fraudulent, do not open attachments or click on links. “In addition to this we have also received reports of people requesting money over the phone, or cash on the doorstep. Although the British Red Cross does undertake both street and telephone fundraising, our calls are for regular commitment by direct debit and not for donations by cash or credit card.” An email forwarded to the Observer includes a donation form requesting details that including the donor’s credit card details, their mother’s maiden name, driver’s licence or passport details, and Verified by Visa password. Mark South, a spokesman for the Red Cross, confirmed the email was fake and added that people wanting to donate money to Japan should ensure they never divulge their personal details to an unknown source. Donors should only give through trusted channels, such as the Red Cross website or via the British Red Cross hotline on 08450 53 53 53. All British Red Cross marketing email addresses end @mail.redcross.org.uk, and the charity does not use general email providers such as BT Internet or Gmail to solicit donations. Anyone suspicious of an email they have received should contact the British Red Cross supporter care team on 0844 87 100 87 or at supportercare@redcross.org.uk. The 2012 Olympics have also proved a temptation for fraudsters who have set up websites to act as fake or unauthorised ticket outlets for the games. The official Olympic website – http://www.london2012.com – includes a tool that will check if a website is a genuine outlet, plus a list of known unauthorised websites claiming to offer London 2012 tickets. These include genuine-sounding names like http://www.london-olympics-tickets.org.uk and http://www.london-2012-games.com/2012-olympics-tickets – two sites that are defunct or look like they have been abandoned. However, other fake or unauthorised sites are still live, including http://www.londonolympicstickets.com and http://www.2010olympictickets.net. Real tickets will carry the name of the purchaser, and it is illegal to sell them on through auction sites such as eBay or to ticket resale sites. Those who buy legitimate tickets but can’t go to the event will be able to resell through an official resale exchange: this will launch early in 2012 before tickets are sent out, and will set prices at the tickets’ face value. But, a spokesman for London 2012 admitted, many people will have had tickets bought on their behalf and while spot checks may be carried out, only those with cancelled or fake tickets are likely to be turned away from events. He said it would be impossible to check whether all tickets are being used by the original purchasers and their friends and families as 8.8m tickets will be issued for events at 34 venues over 16 days. “We’re more interested in protecting people from losing their money through the purchase of fake tickets,” he added. Michael Norton, the managing director of PayPoint.net, said: “We expect fraud levels to increase dramatically following the passing of the ticket application deadline on 26 April. Opportunistic fraudsters will be looking to take advantage of those unlucky consumers not able to get tickets for some of the most oversubscribed events.” Tickets may only be bought using a Visa debit, credit or pre-paid card, which enable consumers to claim all their money back if they do fall into the trap of buying fake tickets. Norton said ticketholders should check the London 2012 site for a list of the official sales channels, research the true cost of tickets and not be lulled into a false sense of security by a well-designed site – some of the fake ones look very legitimate. He added that they should print out or take a copy of all sellers’ details, including the terms of the ticket purchase, full contact information for the ticket seller, and any published criteria about ticket location and likely delivery date. This will let them pursue any issue with the order even if the seller website changes and will support any future credit card chargeback.
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March 27 2011, 10:00am | Comments »
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Punch Taverns plots another way out of £3bn debt and a pub empire in crisis
An eighth of the UKs pubs are owned bu Punch Taverns, and every time they spend money on re-branding interiors to meet different market segments rather than delivering good quality beer and cider and in a congenial atmosphere, they are slowly failing.
This article titled “Punch Taverns plots another way out of £3bn debt and a pub empire in crisis” was written by Andrew Clark, for The Observer on Sunday 27th March 2011 00.05 UTC There’s no logo above the door of its pubs. No branding, no advertising, not the slightest sign of corporate identity. But an eighth of Britain’s licensed houses are quietly owned by Punch Taverns, a sprawling, anonymous empire of neighbourhood drinking establishments disintegrating under a mountain of £3bn in debt. Punch owns 6,770 of Britain’s 52,000 pubs, an estate built over a decade of frenetic multibillion-pound purchases, sales, mergers and demergers at the height of Britain’s leveraged buyout boom. Its empire stretches from the Quayside Inn in Falmouth, Cornwall, to the Chieftain, in Inverness. But after slashing the balance sheet value of hundreds of struggling pubs, it slid to a £159m loss last year and had to make interest payments on its debts of £260m. Shares have slumped by 95% over four years amid mounting alarm that Punch could default on its debts. Top executives blame external factors – they say drinkers have been lured out of pubs by cheap lager on supermarket shelves and by the Labour government’s 2007 decision to outlaw smoking in pubs. “The dynamics in the market changed and that really started with the smoking ban,” says Roger Whiteside, managing director of Punch’s tenanted pubs division. “There’s been a long-term decline for decades in volume sales of beer. What used to be copeable with – a 2% or 3% drop a year – became 7% or 8%.” Whiteside says ultra-cheap lager in Asda, Sainsbury’s or Tesco has not helped, but blames the smoking ban, swiftly followed by a recession, for an unprecedented cash crunch: “Consumers are drinking more at home. That’s been driven by an ever-widening gap between beer prices in supermarkets and in pubs, exacerbated by the social aspects of banning smoking.” Punch, which narrowly trails Enterprise Inns as Britain’s second-biggest pub owner, briefed the City last week on its strategy for stopping the rot. It plans a demerger to separate Punch Partnerships, its vast rump of quasi-independent tenanted pubs, from its snazzier high-street managed division, known as Spirit, which is doing better because its outlets sell more food. Followers of the industry could be excused a weary sense of deja vu. The history of Punch Taverns reads like a corporate finance catalogue. It has kept lawyers, investment bankers and brokers in clover to a staggering degree since its creation in 1997 by former Pizza Express boss Hugh Osmond. In transactions worth billions, backed by massive bond issues, Punch bought pub estates from Bass, Allied Domecq, Pubmaster, Innspired and Inn Business. It has sold off pubs in dribs and drabs and unsuccessfully attempted a huge merger with Mitchells & Butlers in 2008. It has merged, demerged, remerged – and is demerging again – with Spirit. Along the way, some have made a fortune; former chief executive Giles Thorley, who ran Punch from 2001 until 2010, took home nearly £30m over five years. Investors objected, voting down the company’s remuneration policy in 2009. New boss Ian Dyson’s latest wheeze to split the group in two will cost £30m in advisory fees, prompting derision from certain bondholders, one of whom told the Guardian: “There’s a £30m corporate finance party on the top deck of the Titanic when attention should be focused on urgent engine room repairs.” Many have tired of constant financial engineering and ask why the City has added such spectacular complications to an ostensibly simple business – street-corner boozers. Jonathan Mail, head of policy at the Campaign for Real Ale, says: “Because of the financial engineering and debt companies have taken on, lessees haven’t been able to make sufficient profit to invest so that pubs can evolve and change with the times.” Critics of Punch, and its similarly vast competitor Enterprise Inns, argue that, far from being companies with a passion for pubs, they are property businesses largely concerned with milking tenants for rent. Greg Mulholland, the Liberal Democrat MP who chairs parliament’s all-party “Save the pub” group, says: “The big so-called pub companies are really property companies, and very largely property speculators. Some are playing Monopoly with pubs that mean an awful lot to communities they serve.” As 20 pubs a week close in Britain, Mulholland argues that Punch and its fellow megaliths are follies born on the drawing board of City dealmakers during an era of reckless exuberance prior to the financial crisis: “Apart from the fact their size is unwieldy, it’s bad for both tenants and consumers to have so many pubs in the hands of a couple of big companies. The folly of the business model and some of the bad decisions made by Punch are coming home to roost.” Under the tenanted model favoured by Punch, most of its pubs are franchised out to licensees who pay rent at a level fixed over periods of five years. They are obliged to buy their beer from Punch, which, because of its vast scale, can negotiate steep discounts with brewers. However, disaffected tenants complain that Punch has hiked the price of beer in recent years as it struggles to meet debt repayments. Simply servicing the group’s debt costs each of Punch’s pubs an average of £39,000 last year, a hefty chunk of typical annual takings of £200,000-£250,000. For landlords, profit margins are often wafer-thin; a 2009 report by the Commons business and enterprise committee found that 78% of lessees were dissatisfied with their “tie” to big pub companies. Two-thirds earned less than £15,000 a year. The churn as landlords quit has caused concern; Punch says 13% of its outlets are under temporary management. “The model doesn’t work,” says Steve Corbett, founder of the Fair Pint Campaign. “It’s financial engineering in the extreme, whereby they’ve managed to extract the maximum profit to the detriment of tenants and consumers.” The City has little patience for sentiment about pubs. Nigel Parsons, an analyst at Evolution Securities, says licensed houses ought to be treated as dispassionately as any business: “Pubs don’t deserve a special place in society – they’re only there because they work. The ones that go to the wall deserve to because they don’t offer anything special.” He believes that the tenanted model in not inherently flawed, but that players such as Punch have simply over-reached: “The application of the model works, but they’ve pushed it too aggressively.” Punch plans to halve in size from 6,700 pubs to about 3,000. In addition to spinning off its Spirit estate, it intends to sell 2,200 poorly performing pubs. It reckons two-thirds are likely to stay open as pubs, while a third will go to developers for transformation into shops, care homes or residential developments. The company insists its deal-making has raised the standard of pub life. “The choice of beer has absolutely exploded, we sell more than 700 ales,” says Whiteside. “We’ve been instrumental in investing in pubs, putting food into pubs and creating a more pleasant environment.” The Fair Pint Campaign demurs. Corbett says: “Walk down any street in Britain and you can spot a tied pub a mile off. It’s the one falling apart… and may have had four or five tenants over 10 years.” Timeline 1997 Hugh Osmond establishes Punch Taverns by buying 1,400 pubs from Bass 1999 Buys 688 pubs from Inn Business; 3,000 from Allied Domecq 2002 Spirit Group, its managed estate, demerged; 4,200-strong tenanted estate floats as Punch Taverns 2003 Buys rival Pubmaster for £1.2bn, adding a further 3,115 pubs 2004 Purchases Innspired Group for £335m, gaining 1,064 more pubs 2006 Buys back Spirit for £2.7bn 2007 CEO Giles Thorley is the highest paid in the FTSE 100, earning £11.3m 2008 Merger bid for Mitchells & Butlers is rebuffed; trading begins to falter 2009 Emergency cash call raises £375m; executive pay policy voted down 2010 Recession squeezes pub takings; Thorley quits as chief executive 2011 Shares plunge on fear of default; another demerger of Spirit proposed
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March 27 2011, 5:00am | Comments »
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