MySpace Cowboys, by Patricia Sellers, page 66
With 100 million members, MySpace is nothing short of a cultural phenomenon. FORTUNE offers the first in-depth profile of co-founders Tom Anderson and Chris DeWolfe, who sold MySpace to Rupert Murdoch’s News Corp for $590 million but still run what is now the fastest-growing website on the planet. On a typical day, it signs up 230,000 users—roughly the population of Scottsdale. It is a website with an anti-authority vibe, but its corporate owners want to use it to conquer the world. “We think we can extend MySpace around the world and it can be a major force globally,” says Rupert Murdoch, whose Internet ambitions have helped drive News Corp.’s stock up 18% this year. Anderson and DeWolfe were reluctant to make the deal—can they cash in without selling out? “We’ve gotten a dose of reality,” says DeWolfe. “We don’t own the site anymore.” Adds Anderson: “Before, I could do whatever I wanted. Now it takes more time to get people to agree on things. All the budget reviews and processes. That can be a pain. But it’s not stopping us.”

Don’t Touch That Dial, by Oliver Ryan, page 76
Meet the stars of YouTube, the undisputed king of online video sharing. By one count, YouTube serves up 57% of all videos watched online in the U.S. So potent is YouTube’s traffic that MySpace has even tried to block it, and once-wary media companies are talking partnership. “They’ve proven,” says NBC Universal chief Jeff Zucker, “to be trustworthy partners.” But YouTube isn’t yet a profitable business. It produces revenues—Chen and Hurley won’t say how much—from advertising. However, it’s hosting costs, which they also won’t disclose, are huge, and the $11.5 million anted up by venture firm Sequoia Capital will only go so far. Hurley and Chen talk of “opportunities” to grow their top line, but some skeptics, notably their web rivals, say costs and copyright issues will eventually do them in. “Your ad model means nothing if you don’t have the audience,” says Hurley.

The Battle Over Your Aching Back, by Matthew Boyle, page 101
The ever-growing ranks of back pain patients have more alternatives to surgery than ever before. That’s a good thing, since more than 70% of adults—including hordes of desk-bound business executives—will have back pain at some point in their lives; it’s the second most common reason for doctor visits in the U.S., according to the National Ambulatory Medical Care Survey. And, there’s still no proven consistent way to treat chronic lumbar pain, although there is a growing consensus against invasive, expensive surgery—and it’s one shared even by some surgeons. FORTUNE’s Matthew Boyle serves up a field guide to the kinds of professionals patients are likely to meet in their quest for relief.

Wine Shouldn’t Be Work, by Kate Bonamici and Eugenia Levenson, page 114
Why is it that wine has a singular ability to reduce otherwise worldly men and women to insecure, stuttering naifs—or worse, swaggering poseurs? It’s mystifying, frankly. But as chef Mario Batali puts it, “Wine doesn’t have to come out all dusty and musty from some corkdork’s cellar to be good.” From his shopping list to our five-step tasting primer, we’ve scoured the wine world for everything you need to know, whether you’re buying, ordering, or, best of all, simply sipping.

The Green Sailor, by Christopher Redman, page 82
Bill Joy was once called “the Edison of the Internet.” Now he’s building his $50 million dream boat—an eco-friendly, 190-foot superyacht named Ethereal.

Ferrari Fraternity, by Roger Parloff, page 92
Got a need for speed? Three days of idyllic driving in a Ferrari rally will cost you $5,925. Plus a quarter-million for the car.

Risky Business, by John Simons, page 130
With $58 billion in claims to pay for last year alone, U.S. insurers are jacking rates, canceling policies, and learning to cope with climate change. The insurance business is in the midst of a sea change. Unpredictable weather, American migratory patterns, and soaring real estate values are increasing risks for insurers and putting pressure on their financial prospects. In response, companies are changing the rules of engagement with their customers. Allstate is severely limiting its risks in Florida, in part because the state is one in which “we do not get adequate rates in that regulated system,” says Allstate CEO Edward Liddy. “If you talk to someone from FL, they say, ‘Boy, in the last five years, my home has gone up 80% in value,’” says Liddy. “But if you ask them, ‘Well, are you paying 80% more for your insurance?’ they would say, ‘Oh, no! I only want to pay 8% more.’ There’s a disconnect.” That is true enough, but don’t get out the violins just yet. Insurance is the world’s biggest industry ($3.4 trillion in annual revenues, compared with a mere $1.6 trillion for Big Oil.)

Texas Instruments’ Lunatic Fringe, by Peter Lewis, page 120
One tech industry pioneer has staged a surprising comeback by nurturing a culture of ideas. The revolution started with a small group of crazies. Gene Frantz has a big, impressive title: Texas Instruments principal fellow and business development manager, digital signal processing. Which tells you nothing about how he spends much of his time: searching for and encouraging all manner of lunatics and visionaries. “What I look for in these companies is the wild-eyed optimist who’s going to tackle the market,” Frantz says. “About 95% of the people in TI are total order, and I thank God for them every day, because they create the products that allow me to spend money. I’m down here in total chaos, that total chaos of innovation. As a company we recognize the difference between those two and encourage both to occur.”

Departments
FIRST What Pipeline Problem? Despite Prudhoe Bay, the system is getting better, and oil supplies are growing. Leading Indicators…The Productivity Watch The nirvana of high growth and low inflation may be over Honda vs. Chrysler: Driving in Different Directions DISPATCHES Chew on This Cadbury Schweppes sticks it Redefining Fraud The Nigerian barge case COLUMNISTS Media Bubble The click count Brainstorm Terrorism as a business problem INVESTING Buying Into Crisis The perils for investors seeking to cash in on calamities The 100 Fastest-Growing Companies Update LifeCell’s growth The Categories Are Killed Tom Stemberg on retail

 

For further information please contact:
Susan Brown Williams
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susan_williams@timeinc.com

 

 

 

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