Groupon board ends meeting; takes no action on CEO Mason's job

Groupon CEO Andrew Mason at the Nasdaq after his company's initial public offering in 2011. (Brendan McDermid/Reuters / November 29, 2012)

By Melissa Harris




Tribune reporter

3:14 p.m. CST, November 29, 2012

Today's meeting of Groupon's board of directors concluded minutes ago with no announced action on chief executive Andrew Mason's job, according to the company's spokesman.

For now, it appears Mason will continue leading the daily deals company as it seeks to turn around its sluggish performance in Europe, expand its offerings and draw in more customers via Google search vs. email blasts.

"The meeting is over and the board and management team are keenly focused on the performance of the company," said company spokesman Paul Taaffe. "And they are all working together with their heads down to achieve Groupon's objectives."

mmharris@tribune.com | Twitter @ChiConfidential

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Powerball jackpot hits $550 million: 'I've got it'

The record Powerball jackpot just keeps rising. It now stands at $550 million after officials say brisk sales keep driving up the payout amount.

The jackpot was boosted to $500 million on Tuesday and raised again Wednesday morning to $550 million. A winner taking the cash option would get $360.2 million before taxes. The numbers are an estimate and could be increased again as the drawing nears.

Powerball officials say they now believe there is a 75 percent chance that the winning combination of numbers will be drawn Wednesday night.

But many of the customers who lined up at a 7-Eleven store at Wacker and Wabash believed they had a 100 percent chance of winning tonight.

"I've got it," Marvin Harvey, 48, told the store clerk. "This is it."

And Harvey has plans. First off, having a private jet fly him and about 40 others to the SoHo neighborhood in New York City to eat and shop.

"Then take it to Paris and then go on a Mediterranean cruise," he said. "Then come back and share it with the world."

He would also give about 10 percent to churches and maybe start an organization to help the homeless. "You have so much money you have to share it," he said.

Martin Ho, 34, said he has given more thought about how to better his chances at winning the jackpot than he has about what he would do with the money.

"My goal is to have 100 different numbers between all the pools," he said. "I think I'm at (about) 90 numbers."

Ho popped into the 7-Eleven store this morning with colleague Whitney McKedy to purchase about 10 tickets jointly.

Ho said he is part of a handful of pools, including one with 50 numbers split between 10 people. He has also bought some tickets for himself.

As for what he would do with the money? "Change my name, hire a lawyer," he joked.  "I don't really think about it. It's more about the energy."

Zafer Aksit, 63, was a long way from home when he threw in $10 for lottery tickets. The radiologist flew into the city last week from Instanbul, Turkey for a medical conference. While he was in his hotel room in the Loop, he saw on the news that the jackpot had gotten up to $500 million and thought it was worth a shot.

"I thought, 'Why not?' "

Aksit insisted he wouldn't spend the money on lavish gifts on himself. "I wouldn't go on a shopping spree," he said.

He thinks the money would be better spent as investments in local businesses and non-profits, like a breast cancer clinic.

Powerball has not had a winner for two months.  Powerball is sold in Illinois and 41 other states, as well as Washington, D.C. and the U.S. Virgin Islands.

The chance of winning the Powerball jackpot are about one in 175 million, compared to about one in 280,000 for being struck by lightning.

Despite the long odds, the record payout has drawn interest from around the world, said Mary Neubauer, a spokeswoman for the Iowa Lottery, where Powerball is based. Lottery officials have received calls and emails from people outside the United States asking if they can buy a ticket from afar. They cannot.

"Sales across the country are just through the roof. It means lots of people are having fun with this, but it makes it difficult to keep up with the (jackpot) estimate."

The previous top Powerball prize of $365 million was won in 2006 by ConAgra slaughterhouse workers in Nebraska.

A $656 million Mega Millions jackpot set a world lottery record in March. That prize was split three ways. One of the winning tickets was held by Merle and Patricia Butler of Red Bud in southern Illinois. The retired couple took home nearly $119 million.

Tribune reporter Naomi Nix, the Associated Press and Reuters contributed

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Wii U Sells 400,000 Units in First Week

Nintendo‘s Wii U sold 400,000 units during its first week of sales, and Nintendo’s president has said the console is “virtually sold out” at retailers.

[More from Mashable: YouTube-Exclusive ‘Halo’ Miniseries Nets 26 Million Views]

The Wii U, Nintendo’s next-generation console that features a touch screen as a controller centerpiece, was released on Nov. 18 across the United States. Despite large crowds at Nintendo’s flagship store in New York, users on Twitter reported there were few lines if they wanted to get their console on launch day.

The Wii U’s sales on made up only of a portion of Nintendo’s sales last week. Nintendo sold 300,000 Wii units last week; the console was released in 2006, but many retailers had Black Friday deals that dropped it under the $ 100 price point. Nintendo’s 3DS and DS handheld consoles also sold well, with 275,000 and 250,000 units respectively.

[More from Mashable: Double Fine Opens Top Secret Game Brainstorm to Fans]

For context, the Wii sold 475,000 units during its first eight days in the U.S. marketplace in 2006.

CNET reports that Nintendo of America President Reggie Fils-Amie said significant Black Friday discounts lead to the 8-year-old Nintendo DS to outsell the newer model. According to VGChartz, the 3DS has sold about 6 million units in America since being released last year.

BONUS: First Look at the Wii U

GamePad

The Wii U GamePad has a 6.2-inch touchscreen.

Click here to view this gallery.

This story originally published on Mashable here.

Gaming News Headlines – Yahoo! News

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Former boxing champ Mike Tyson to take one-man show on the road

LOS ANGELES (Reuters) – Former heavyweight boxing champion Mike Tyson plans to take his one-man theater show on the road across the United States early next year.

Tyson, 45, made the announcement on ABC’s late-night show “Jimmy Kimmel Live!” on Tuesday.

“Mike Tyson: Undisputed Truth” is an autobiographical monologue performed by Tyson in which he reflects upon his tough childhood in Brooklyn, the absence of his father and his self-described “reckless and destructive” behavior. It premiered in Las Vegas in April and had a run on Broadway.

Tyson, whose reputation was boosted by a cameo in the 2009 hit comedy “The Hangover,” told Kimmel that his inspiration for the show came from a one-man performance of “A Bronx Tale” in Las Vegas.

The 23-date tour, which features the Broadway show directed by Spike Lee, is scheduled to begin on February 12 in Indianapolis, Indiana, the city where Tyson was convicted in 1992 of raping then 18-year-old beauty queen Desiree Washington.

Tyson, who at the age of 20 became the youngest world heavyweight champion, served three years in prison before restarting his boxing career in 1995.

He later became better known for his erratic behavior than for his prowess in the ring. Tyson notoriously bit off portions of opponent Evander Holyfield’s ears in a 1997 bout and publicly said he wanted to eat British champion Lennox Lewis’ children.

Tyson retired from boxing in 2006.

(Reporting By Eric Kelsey; Editing by Patrica Reaney)

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Well: Weight Loss Surgery May Not Combat Diabetes Long-Term

Weight loss surgery, which in recent years has been seen as an increasingly attractive option for treating Type 2 diabetes, may not be as effective against the disease as it was initially thought to be, according to a new report. The study found that many obese Type 2 diabetics who undergo gastric bypass surgery do not experience a remission of their disease, and of those that do, about a third redevelop diabetes within five years of their operation.

The findings contrast with the growing perception that surgery is essentially a cure for Type II diabetes. Earlier this year, two widely publicized studies reported that surgery worked better than drugs, diet and exercise in causing a remission of Type 2 diabetes in overweight people whose blood sugar was out of control, leading some experts to call for greater use of surgery in treating the disease. But the studies were small and relatively short, lasting under two years.

The latest study, published in the journal Obesity Surgery, tracked thousands of diabetics who had gastric bypass surgery for more than a decade. It found that many people whose diabetes at first went away were likely to have it return. While weight regain is a common problem among those who undergo bariatric surgery, regaining lost weight did not appear to be the cause of diabetes relapse. Instead, the study found that people whose diabetes was most severe or in its later stages when they had surgery were more likely to have a relapse, regardless of whether they regained weight.

“Some people are under the impression that you have surgery and you’re cured,” said Dr. Vivian Fonseca, the president for medicine and science for the American Diabetes Association, who was not involved in the study. “There have been a lot of claims about how wonderful surgery is for diabetes, and I think this offers a more realistic picture.”

The findings suggest that weight loss surgery may be most effective for treating diabetes in those whose disease is not very advanced. “What we’re learning is that not all diabetic patients do as well as others,” said Dr. David E. Arterburn, the lead author of the study and an associate investigator at the Group Health Research Institute in Seattle. “Those who are early in diabetes seem to do the best, which makes a case for potentially earlier intervention.”

One of the strengths of the new study was that it involved thousands of patients enrolled in three large health plans in California and Minnesota, allowing detailed tracking over many years. All told, 4,434 adult diabetics were followed between 1995 and 2008. All were obese, and all underwent Roux-en-Y operations, the most popular type of gastric bypass procedure.

After surgery, about 68 percent of patients experienced a complete remission of their diabetes. But within five years, 35 percent of those patients had it return. Taken together, that means that most of the subjects in the study, about 56 percent — a figure that includes those whose disease never remitted — had no long-lasting remission of diabetes after surgery.

The researchers found that three factors were particularly good predictors of who was likely to have a relapse of diabetes. If patients, before surgery, had a relatively long duration of diabetes, had poor control of their blood sugar, or were taking insulin, then they were least likely to benefit from gastric bypass. A patient’s weight, either before or after surgery, was not correlated with their likelihood of remission or relapse.

In Type 2 diabetes, the beta cells that produce insulin in the pancreas tend to wear out as the disease progresses, which may explain why some people benefit less from surgery. “If someone is too far advanced in their diabetes, where their pancreas is frankly toward the latter stages of being able to produce insulin, then even after losing a bunch of weight their body may not be able to produce enough insulin to control their blood sugar,” Dr. Arterburn said.

Nonetheless, he said it might be the case that obese diabetics, even those whose disease is advanced, can still benefit from gastric surgery, at least as far as their quality of life and their risk factors for heart disease and other complications are concerned.

“It’s not a surefire cure for everyone,” he said. “But almost universally, patients lose weight after weight loss surgery, and that in and of itself may have so many health benefits.”

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Groupon CEO Mason offers to step down

Groupon Inc Chief Executive Andrew Mason, under fire for a plunging share price and tapering growth, declared on Wednesday he would fire himself if he ever thought he was the wrong man for the job.

Mason, whose performance at the helm will come under scrutiny from his board of directors during a regular board meeting Thursday, said it would be "weird" if they did not. But he said he believed the board was comfortable with his strategy.

Shares in the company, once touted as innovating local business advertising t hrough the marketing of Internet discounts on everything from spa treatments to dining, surged 8 percent to $4.25 i n the afternoon.

"It would be more noteworthy if the board wasn't discussing whether I'm the right guy for the job," Mason said in an interview from a Business Insider conference in New York. "If I ever thought I wasn't the right guy for the job, I'd be the first person to fire myself."

"As the founder and creator of Groupon, as a large shareholder ... I care far more about the success of the business than I do about my role as CEO," he said.

Groupon has shed four-fifths of its value since its public trading debut as an investor favorite during last year's consumer dotcom IPO boom, and Mason himself has presided over a string of high-profile executive departures.

Wall Street has grown uneasy about the viability of its business as fever for daily deals has cooled among consumers and merchants, hurting its growth rate.

In the interview broadcast from the conference, the outspoken and sometimes-zany co-founder argued his company was going through a period of volatility but believed it was on the right path. Groupon's efforts to reduce its reliance on plain vanilla deals include bumping up its "Goods" retail business, increasing the selection of "persistent" or long-running deals, and allowing users to search for such deals on demand.

Shares in Groupon spiked after the interview and were up 8 p ercent at $4.2 6, still way below its $20 market debut price.

Groupon and rivals in the daily deals business, like Amazon.com-backed LivingSocial, were supposed to change the very nature of small-business advertising. Instead, they were forced to revamp their business models as evidence mounts that their strategy was flawed.

This month, Groupon reported another quarter of disappointing earnings, and its stock went as low as $2.60 on Nov. 12.

Europe has been a particular problem for Groupon, partly because the sovereign debt crisis has sapped demand for higher-priced deals. Groupon was also offering steeper discounts, turning off some European merchants.

International revenue, which includes Europe, grew just 3 percent to $277 million in the third quarter, while North American revenue surged 80 percent to $292 million.

Adding to its difficulties, the U.S. Securities and Exchange Commission is looking into Groupon's accounting and disclosures, areas that raised questions among some analysts during its IPO.

But Mason shrugged off speculation that the company might run into a cash crunch and go bankrupt. The company has said it had $1.2 billion in cash and equivalents with no long-term debt.

"There was a period when those stories started that I'd go to my CFO and say: 'How would that happen, walk me through what would be required for us to actually go bankrupt'," Mason said. "And it's like an end of days, apocalyptic scenario. The business would have to go into severe negative growth for something like this. The scenario is so absurd there's no evidence for it."

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Evanston mural mistaken for graffiti, painted over

Theodore Boggs was upset to learn the mural he helped paint 10 years ago on an Evanston wall was apparently mistaken for graffiti and illicitly removed.

“I think it’s a crime what the guy did,” Boggs said.

As an Evanston Township High School senior in 2002, Boggs and several classmates painted “A Loose History of Evanston” on the Metra-owned retention wall on Green Bay Road, near Emerson Street. The 110-foot mural, a class project, depicted famous and historically significant residents as part of a timeline.

Recently, and without seeking permission, the owner of an adjacent building paid to have the mural covered, according to Jeff Cory, the city’s cultural arts/arts council director.

“He just wanted to have what he considered to be a clean, fresh wall for the new tenant,” Cory said. A Hertz car rental business recently moved to the site at 1901 Green Bay Road.

Boggs, now a preparator at a Columbia College art and design gallery in Chicago, said he expected the mural to last at least 10 years.

“It was a nice wall,” he said. “It was good paint. We prepared it really well.” 

Cory and Hertz employees were to unable to provide information about the landlord, who could not be reached for comment.

“It’s certainly a loss, and I think the community is quite disappointed that the mural was painted over, particularly because it spoke to the history of Evanston,” Cory said. “There were a lot of people in the community who appreciated the content of that mural.”

One of those is Hecky Powell, owner of Hecky’s Barbecue, across the street from the mural site. He remembers feeding the high school students while they worked, and was particularly proud of the portion of the mural that highlighted Evanston’s work to desegregate its schools.

“That’s what Evanston stands for,” Powell said. “That’s why we moved to this community. That’s what it’s about.”

He doesn’t buy the argument that the building owner mistook the mural, or portions of it, for graffiti.

“You know what graffiti looks like,” Powell said. “Graffiti does not say desegregation of schools. These kids did a beautiful job over there.”

The mural did include some artistic components that are similar to “tagging,” Cory said.

“The property owner may have misunderstood or mistook that for graffiti tags,” he said.

While Boggs said the mural can’t be restored, he said he’s energized about the prospects of creating new public art in Evanston.  He’s even been in touch with some of his fellow painters.

“Everyone’s on board for a push to do a bunch of murals,” Boggs said. “We’ll make something new and better.”

Boggs and his group will present a concept and tentative budget to the city’s Public Art Committee, Cory said, and would likely require approval from the Arts Council, Human Services Committee and possibly the City Council. The group also would need consent from Metra, which owns the retention wall.

There are six sites in Evanston that are ready for new murals, either in the spring or summer, Cory said. The landlord has said “that he would be willing to make a financial contribution toward that as well,” he said.

Powell took it even further.

“He should be responsible for paying to have this redone, and also pay the kids to do it. And also pay me to feed them,” Powell said.

jhuston@tribune.com

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The Wii U sells out in its first week: Evidence of a Nintendo comeback?

The latest console from the videogame pioneer is flying off the shelves. But are the kids really still into Mario and Zelda?

Earlier this year, Nintendo posted its first annual loss in three decades, a grim omen for the pathbreaking videogame maker that introduced the world to classic characters like Mario, Donkey Kong, and Link. The Japanese company has struggled amidst an industry-wide decline in the sales of consoles and games, a trend partly attributed to the ever-growing popularity of tablets and smartphones. Nintendo’s last breakout success was the Wii, released in 2006, and there have been serious doubts that its successor, the Wii U, could sell as many units. However, since the Wii U went on sale in North America on Nov. 18, Nintendo has completely sold out of all 400,000 consoles shipped to retailers. “As soon as the Wii U hits the shelf, it’s selling out,” said Reggie Fils-Aime, the head of Nintendo’s U.S. operations.

The Wii U’s early success is a surprising indication of “strong demand for the company’s next generation of videogame devices,” says Ian Sherr at The Wall Street Journal. And during the week of Nov. 18, Nintendo also sold 300,000 units of the original Wii, as well as more than 500,000 units of its portable DS and 3DS systems, which could reflect a rebound in consumer demand as the economy continues its long slog of a recovery from the Great Recession. Nintendo says it expects to sell 5.5 million Wii U systems by the end of March 2013, the end of its fiscal year.

However, it’s important to remember that “Nintendo has a very dedicated audience that craves almost anything new the company has to offer, not unlike Apple’s fans,” says Nick Wingfield at The New York Times. “The real test of the Wii U’s durability will come when the product is in better supply and more casual gamers, who don’t dream about Mario and Zelda in their sleep, can more easily buy it.” In addition, rivals Sony and Microsoft are expected to unveil their new consoles sometime in 2013, putting extra pressure on Nintendo. 

And perhaps most importantly, Nintendo has to sell games. The Wii U — which retails for $ 299.99, and $ 349.99 for a more powerful model — is being sold at a loss. Nintendo hopes that users will continue to buy games in the years to come, particularly those that aren’t sold on other systems, such as the latest installments in the “Super Mario Bros.” and “Legend of Zelda” franchises. That’s among the keys to Nintendo’s future profitability.

Sources: The Los Angeles Times, The New York Times, USA Today, The Wall Street Journal

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Turkish PM fumes over steamy Ottoman soap opera

ISTANBUL (Reuters) – A hit TV show about the Ottoman Empire‘s longest-reigning Sultan has raised a political storm in Turkey, with Prime Minister Tayyip Erdogan urging legal action over historical inaccuracies and the opposition accusing him of artistic tyranny.

Erdogan tore into the weekly soap opera “Magnificent Century”, which attracts an audience of up to 150 million people in Turkey as well as parts of the Balkans and Middle East, in response to criticism of his government’s foreign policy.

The lavish television production, which grips audiences with tales of power struggles and palace intrigue, is set during the 16th century reign of Suleiman the Magnificent, when Ottoman rulers held sway over an empire straddling three continents.

Bristling at suggestions that Turkey was meddling too much in its neighbors’ affairs, Erdogan recalled Turkey’s heritage, and said Suleiman had been a proud conqueror rather than the indulgent harem-lover portrayed in the show.

“(Critics) ask why are we dealing with the affairs of Iraq, Syria and Gaza,” Erdogan said at the opening of an airport in western Turkey on Sunday.

“They know our fathers and ancestors through ‘Magnificent Century’, but we don’t know such a Suleiman. He spent 30 years on horseback, not in the palace, not what you see in that series.”

Scenes that showed Suleiman with women in the harem have prompted calls from viewers in the mostly Muslim and largely conservative country for the broadcasting regulator (RTUK) to ban the series. But it tops the viewing charts each week.

Erdogan said the director of the series, which has been on air since January 2011, and the owner of the channel that broadcasts it had been warned, but also said he expected the judiciary to act, without elaborating.

Erdogan’s opponents accused him of authoritarianism.

“The prime minister must be jealous of the series’ popularity. He thinks there’s no need for another sultan when he’s in power,” said Muharrem Ince, the deputy chairman of the main opposition Republican People’s Party (CHP).

“Erdogan wants to be the only sultan.”

Elected a decade ago with the strongest majority seen in years, Erdogan has overseen a period of unprecedented prosperity in Turkey. But concerns are growing about his increasingly authoritarian rule.

Hundreds of politicians, academics and journalists are in jail on charges of plotting against the government, while more than 300 army officers were given prison terms in September for conspiring to topple him not long after he swept to power.

Turkey has been increasingly assertive in regional politics, most notably over the crisis in neighboring Syria, where it has led calls for international action and scrambled war planes in a warning to Damascus not to violate its territory.

“I think the prime minister’s aim here is to change the agenda. I can’t think of any other reason to discuss an imaginary television series when there are so many problems in a country,” Nebahat Cehre, who played Suleiman’s mother during the first two seasons, told Turkey’s Birgun newspaper.

(Editing by Nick Tattersall and Jon Hemming)

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Global Update: Investing in Eyeglasses for Poor Would Boost International Economy

BSIP/UIG Via Getty Images

Eliminating the worldwide shortage of eyeglasses could cost up to $28 billion, but would add more than $200 billion to the global economy, according to a study published last month in the Bulletin of the World Health Organization.

The $28 billion would cover the cost of training 65,000 optometrists and equipping clinics where they could prescribe eyeglasses, which can now be mass-produced for as little as $2 a pair. The study was done by scientists from Australia and the Johns Hopkins Bloomberg School of Public Health.

The authors assumed that 703 million people worldwide have uncorrected nearsightedness or farsightedness severe enough to impair their work, and that 80 percent of them could be helped with off-the-rack glasses, which would need to be replaced every five years.

The biggest productivity savings from better vision would not be in very poor regions like Africa but in moderately poor countries where more people have factory jobs or trades like driving or running a sewing machine.

Without the equivalent of reading glasses, “lots of skilled crafts become very difficult after age 40 or 45,” said Kevin Frick, a Johns Hopkins health policy economist and study co-author. “You don’t want to be swinging a hammer if you can’t see the nail.”

If millions of schoolchildren who need glasses got them, the return on investment could be even greater, he said, but that would be in the future and was not calculated in this study.

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