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Ziff Davis Teeters

Longtime Reader writes: "It is a short article with links all over the place, but Linux and Main is running a story that says Ziff Davis might file for bankruptcy this week. The company plans to stay in business by expanding its focus on computer games, the story says." To get you started, reader idiotnot contributes this link to coverage in the NYT.

31 of 307 comments (clear)

  1. I remember the days... by qurob · · Score: 4, Funny


    When ZD published PC Magazine, you could read Machrone and Dvoraks ramblings, read a round up of 50-60 PC's on the market, and there was a real tech section.

    Computer Shopper, the 'Hard Edge' with Bill and Alice, PAGES UPON PAGES OF ADS....

    The Internet has ruined magazines.

    1. Re:I remember the days... by Surak · · Score: 3, Interesting

      Yeah...Pricewatch is what Computer Shopper used to be, only a hell of a lot more convenient and my postal carrier is a lot less disgruntled now. :) The Hard Edge was the BEST! Alice Hill still works for C|Net I think... I've seen a few commentary articles from her anyway.

  2. Forget it by dnoyeb · · Score: 4, Interesting

    Nobody will accept Ziff Davis doing games. At least nobody will be willing to accept that they are impartial. Considering how many of "our own" seem to be bought, Ziff Davis would give the impression that they are pre-bought and just waiting to close the deals.

    Personally, though they seem an amazing resource, I only use their website when I encounter software thats not popularly reviewed such as obscure mp3 creation or audio ripping programs, and scanner programs, and web site creation software that I have never heard of. Best they stick to what they do but focus their attention at serving their customer base and not catering to the OEMs. Cultivate a relationship with groups like slashdot, anandtech, HardOCP, etc...

    1. Re:Forget it by kawika · · Score: 3, Insightful

      >> Nobody will accept Ziff Davis doing games.

      Huh? They have owned Computer Gaming World for quite a while.

      >> Best they stick to what they do but focus their attention at serving their customer base and not catering to the OEMs.

      News flash: Their customer base is the OEMs, not the readers. Your paltry few bucks per issue barely covers the cost of postage or distribution. The advertisers pay most of the costs.

    2. Re:Forget it by Zathrus · · Score: 4, Insightful

      Nobody will accept Ziff Davis doing games.

      Except for the few million people that already do through subscriptions or rack purchases of "Official US Playstation Magazine", "Xbox Nation", "Electronic Gaming Monthly", "GameNow", or "Computer Gaming World".

      At least nobody will be willing to accept that they are impartial.

      Anyone that accepts that any game rag is impartial is fooling themself.

  3. Good riddance! by nbvb · · Score: 3, Interesting

    I hope Ziff Davis folds up completely and collapses.

    Their magazines don't offer any straight journalism; they're just pure advertising, page-for-page. All their product reviews and reports read just like the ads that follow on the next page!

    Maybe if they fold and these awful rags go away, the CIO-types of the world will actually get some literate, technical information instead of marketing BS! ... Nah, I'm dreaming too much.

    Goodbye, ZD. And good riddance.

    --NBVB

    1. Re:Good riddance! by Anonymous Coward · · Score: 4, Interesting


      they're just pure advertising, page-for-page Isn't that how a magazine makes money?

      People will also buy magazines which contain *useful information*.

      Unfortunately, most of those magazines were
      long ago "Ziffed" - bought out, and the useful
      content replaced with vendor-supported 'product
      reviews'. All of which have the same theme:
      "they gave us this stuff, and bought a full
      page ad, and maybe threw in some cash on the side, so we'll say it's great stuff."

      Irv

    2. Re:Good riddance! by f00zbll · · Score: 3, Interesting
      One might believe that is the case, but if you go back in recent history, one can find examples that prove otherwise. This is semi-OT, but it is relevant. My wife was reading a recent article in MS magazine by Gloria Steinem that addressed this issue. When MS magazine was driven by advertising, they were pressured to drop articles that was critical of the clothing and makeup industry. Now that MS has changed their revenue model, they are back to publishing articles driven by honest reporting. Here's a recent editor's note. I honestly believe consumers are willing to pay more for a magazine if it is well written with solid content. If I had to choose between paying 3.00 for a magazine full of adds and PR junk or 12.00 for objective reporting, I'll pay 12.00.

      This whole pattern of corporate america dictating was is news worthy needs to swing back towards objective reporting. I think many people are sick and tired of the drivel on the news stands today.

  4. about time... by f00zbll · · Score: 5, Insightful

    I hate to see people loose their jobs, but zdnet and pcmag have been useless for over 5 years now. PCMag in particular stop reporting back in 95 and only rehashed PR junk. It is time for new crop of magazines to take the place of all the dead weight in the tech reporting industry. Zd used to have solid in depth articles that were fairly objective. But soon after win95 came out, that all changed. Of course these are my own biased opinions, but I know other techies share similar perspectives.

    1. Re:about time... by Erik+Fish · · Score: 3, Interesting

      You're absolutely correct. I remember well the days when OS/2 could have been a contender and how shockingly little was ever written about it in PC Magazine.

      Ever since then PC Mag (along with every other ZD publication) has transitioned from serious tech journalism to serious whoring.

      These days I read Maximum PC for a similar level of info to what I used to get in PC Mag, but as good as it is it's still a magazine aimed at hobbyists. Hopefully the fall of ZD will give someone else a chance to launch some magazines for the markets ZD currently dominates that contain useful content rather than whoring.

    2. Re:about time... by simetra · · Score: 3, Funny

      Agreed. ZD is Microsoft's bitch.
      PC Magazine has been, since 95ish, Microsoft's perpetual-upgrade propaganda rag.

      --

      "Would it kill you to put down the toilet seat?" -- Maya Angelou
  5. In other news by af_robot · · Score: 5, Funny

    Microsoft suddenly decided to cut their advertising budget by 70%.

  6. Older Magazines were good by ThogScully · · Score: 3, Interesting
    I remember liking PC Computing, but that went downhill it's last few years and then became Smart Business Computing or some such non-technical nonsense. Of all the non-journal magazines, they were one of the better ones I found.

    Did they do Computer Shopper too? That was great way back when, before they shrunk it to normal size and all. You could find some damned good deals in there (and I think there were some good articles at times too, but that wasn't what I bought it for...).

    I hope they come back to a technical crowd at least. There's too much crap about the business of the internet and computers - I want more technical information available to the masses.

    -N

    --
    I've nothing to say here...
  7. Good riddance! by hlh_nospam · · Score: 5, Interesting

    I clearly remember ZD as one of the pioneers of misleading mail-order campaigns. They sent a renewal notice that was designed to look like an IRS notice. That was over 10 years ago, and I immediately cancelled the remainder of my PC Magazine subscription, and have avoided dealing with them ever since. As they took over other magazines that I subscribed to, I let those subscriptions lapse. That was partially because I disliked ZD's behavior, and partially because the computer magazines were gradually becoming a waste of time anyway.

    I try to avoid dealing with companies that use unethical advertising. Latest example that comes to mind is VeriSign.

  8. Interesting Numbers by Thomas+M+Hughes · · Score: 5, Interesting

    Sorting through the NY Times Article here were some interesting tid-bits I picked up.

    * Willis Stein & Partners paid $780 million for the company during the bull market.

    * The company's earnings before interest, taxes, depreciation and amortization are projected to be $6.5 million in 2002

    Translation: At the current rate of profit, it will take over a hundred years to make up the initial investment. Ouch.

    * (Earnings) are expected to rise to $34.4 million in 2003 if the restructuring goes as planned.

    * Savings will be gained from the closing of money-losing magazines and the layoff of 700 of the company's 1,150 employees the last year.

    Translation: We plan on making close to six times as much money as we were before, primarily by firing over 70% of our workforce, cutting our costs drastically.

    Now, here's what bothers me to some extent, and by no means do you have to agree with me on this issue. But according to those numbers, this company is profitable. Granted, its not profitable enough to justify the high price it was bought back in April of 2000, but its in the positive, and appears to be staying there for awhile. However, it seems that being profitable isn't good enough these days. Not only does a company have to be profitable, but it doesn't appear to have any room to do anything that is 'extra-profitable', that is, things that are not done solely for profit.

    For example, the article makes mention that the company in question had discontinued its Yahoo! Internet Life Magazina, which had a distribution of over a million. So clearly, some people liked the product. However, it wasn't discontinued due to declining interest, but rather because the number of ad pages had decreased by 50% over the past 2 years. My translation: "If you aren't in a good demographic, you don't get anything published for you."

    That's not to say that ZD is under any obligation to operate at a loss for the benefit of the masses. My issue is that ZD is not operating at a loss, but they still plan on putting 700 people out of work, and discontinuing publications that have readership. If there ever was a place where the mythical 'invisible hand' of the market were giving lots of people the finger to enrich the few, this were it. After all, the only people who have to gain from this restructuring are the share holders, while hundreds of workers go unemployed and millions of readers lose their reading material.

    So much for the market automatically doing what's best for everyone, eh?

    1. Re:Interesting Numbers by kawika · · Score: 4, Insightful

      The NYT article said that ZD lost $30 million on Yahoo Internet Life since its launch. I think that's a pretty good reason to close it.

    2. Re:Interesting Numbers by Gryphon · · Score: 5, Interesting

      > Would that happen today? Naw, that'd mean
      > looking beyond the next quarter! Even if a
      > company wanted too, their managment would be
      > crusified by the Wall St. analysts & their
      > investors.

      I just worked as a consultant (via a 3rd party company) for a client that has a hiring freeze on programming & technical staff. This is so that, to Wall Street's eyes, the client is keeping its core expenses (employee salaries) lower in relation to revenue.

      Of course, there are still project deadlines to meet, so they hire consultants to fill those technical roles.

      Sole benefit: payment for consultants can apparently be written off as "one-time" expenses.

      Two problems:

      1) Consultants cost more per hour than employees. 2) There is high turnover with consultants (for example, I don't work for that client any more) and the client has problems meeting targets for key projects, etc.

      Duh! How is this good for the company long term? They avoid hiring permanent employees to have a nicer-looking balance sheet, but sacrifice the benefit of stable, productive, long-term employees?

      Ridiculous, if you ask me. Hooray for market forces!

    3. Re:Interesting Numbers by sphealey · · Score: 3, Interesting
      'd just like to point out that it doesn't really work like that. When you buy a company, you don't sit around waiting for the checks to come in so you can get your money back. Well, not just that, anyway.
      The key to making your money back is in market capitalization. If I spent $100 million to buy a publicly traded company, then I'm going to hope that the market capitalization (the total value of all outstanding shares of the company's stock, more or less) is equal to or greater than $100 million.
      Except that market capitalization doesn't come from nowhere. Or isn't supposed to come from nowhere anyway, although the period 1998-2001 changed that thinking a bit ;-)

      If the efficient market hypothesis is correct, the market valuation should be based on the present value of all future earnings of the firm. Over the long term these earnings can only be profit, plus some allowance for the possibility of R&D coming up with a breakthrough development.

      If the market cap is higher than the simple PV of current profits, then the market expects that the company will change or grow in some way to increase profits from their current level. However, see Yahoo, Nortel, and Worldcom for examples of what happens when these expectations turn out to be wrong.

      sPh

      PS Yes, I am familiar with the technical terms such as EBITDA, "free cash flow", "operating earnings", etc. To simplify this discussion I used the word "profit", which over the long term means essentially what you think it means.

    4. Re:Interesting Numbers by Reality+Master+101 · · Score: 3, Insightful

      My issue is that ZD is not operating at a loss, but they still plan on putting 700 people out of work, and discontinuing publications that have readership.

      To be honest, I'm somewhat astounded at your post. You start off with a set of facts, and then go off the deep end with your conclusion contradicting your facts!

      Their not cutting profitable parts of their company, they're cutting the unprofitable parts. Do you really think that they should continue paying 700 employees that are losing money for them?

      Now, if you want to make the argument that somehow they should give these losing parts of the company more time to become profitable, that's a different argument, and I (or probably you) don't have enough facts to render a judgment on that.

      Once again I have to say: Employees are not 'owed' employment.

      --
      Sometimes it's best to just let stupid people be stupid.
  9. Focus on gaming? My wish list by Dark+Paladin · · Score: 4, Interesting
    For the most part, I've become rather jaded - not with the computer/video gaming industry, but about the reporting. It's all pretty much the same - vapid, chauvenistic, and annoying.

    So if ZDNet is focusing on their gaming coverage, here's my own little wish list:
    • For the love of god, hire some more women. How many women are on the gamespot.com staff? I'm looking at today's Gamespotting, and it's all XY chromosomed folks. No wonder games like DOA Vollyball are coming out - there isn't someone to stop that jiggle fest from going out of control. (Not that I don't like good looking girls running round, but if they made it fair and featured guys in speedos, I wouldn't feel like it's being marketed only to 14 year old masturbating teenagers who don't have a like).
    • Stop it with the positive previews. I have yet to see a preview of a game that says "You know, we're working with an early build of a game - and it sucks. I mean, you thought Daikatana was bad - this game takes the cake." I don't even read reviews anymore - I just check out the synopsys of a game, download the demo, and that's it, because I know I can't rely on what game journalists say about the game before its released. I know it's hard, especially when a game in beta might be better in final version. But if you only have something nice to say (when it isn't deserved), don't say anything at all.
    • Ziff Davis also owns gamers.com, Official US Playstation Magazine, etc, etc, etc. I almost hope they go under, mainly because a good chunk of the paper gaming magazines are owned by one company, and you can tell. They're all pretty much the same (much like there's no reason to go to zdnet.com if you've already scanned the headlines for cnet.net). Anyone remember the Gamefan magazine? Great rag, and I was hoping GameGo would take off, but with a near monopoly on gaming magazines, Ziff-Davis has made sure everything is covered in a macho bullshit shell.
    • No booth babe pictures. Ever. Again. Look, maybe it's because I get laid on a regular basis, but I don't feel the need for computer gaming news to feature silicon injected flesh peddlers. I want to know about the game. Is it fun. Is it entertaining. I was annoyed after visiting E3 to see the high level of insults to women depicted there, and even more so after checking out a gaming magazine to see they focused the first section to pictures of the girls. Stop it. Please.
    That's my little wish list, and I'm sure I'm forgetting other things.
  10. Accounting by clearcache · · Score: 4, Funny

    Hey...at least they're being honest about their cash flow!!!

  11. Re:Focus on gaming? My wish list by yatest5 · · Score: 5, Funny

    For the love of god, hire some more women. How many women are on the gamespot.com staff? I'm looking at today's Gamespotting [gamespot.com], and it's all XY chromosomed folks. No wonder games like DOA Vollyball [gamespot.com] are coming out - there isn't someone to stop that jiggle fest from going out of control. (Not that I don't like good looking girls running round, but if they made it fair and featured guys in speedos, I wouldn't feel like it's being marketed only to 14 year old masturbating teenagers who don't have a like).

    No booth babe pictures. Ever. Again. Look, maybe it's because I get laid on a regular basis, but I don't feel the need for computer gaming news to feature silicon injected flesh peddlers.

    This guy's chick is *so* watching him post over his shoulder...

    --
    • Mod parent up! [a] by Anonymous Coward (Score:5) Thurs, June 31, @13:37
  12. Re:Server-Workstation Expert is dead by sphealey · · Score: 3, Interesting
    According to their website, Server-Workstation Expert has ceased publication.
    At least for the moment they have their article and column archives available for download in PDF format. I grabbed all the "Storage Expert" columns; the best discussion of high-end storage systems I have ever found.

    sPh

  13. One quick thing by Dark+Paladin · · Score: 3, Informative

    For the folks telling me "99% of all gamers are men, so we don't want girls in our club", according to the IDSA, 40% of all console game sales were to women.

    Guys, take down the "Girls not allowed" signs off the treehouse and lower the rope ladder, for pete's sake.

  14. The World Won't Miss You, ZD by Sloppy · · Score: 5, Interesting
    I guess this is mostly just another "me too."

    In the late 80s I actually read PC Magazine. I thought it was a half-decent way to keep abreast of things happening one particular platform -- "IBM PC Compatable" type machines. Of course, if you relied on it, you would end up with a very narrow and distorted view of Personal Computers.

    In the early 90s, it seemed to get progressively worse. It kept its focus on only one hardware platform (which is almost, though not quite, justifiable today, but ten years ago, no way), but also focused almost exclusively on a single OS vendor -- you can guess who.

    The last straw came in 1995 when they gave their "technical excellence" award for OSes, to Windows 95. Compared to some of the other things around at the time, such as OS/2 Warp, this was a complete joke. You can talk about market realities or whatever, but when it comes to pure technique, Windows 95 is to Warp, as a Model T is to a modern car.

    Up to then, I knew I was getting distorted information from them, but just how distorted it was, I guess I just hadn't fully realized it. I took a look around at some other ZD publications then, just to make sure I wasn't jumping to any unjustified conclusions, and then safely concluded: ZD was just Microsoft's PR arm. They were not journalists.

    I stopped reading anything published by Ziff-Davis. The words "Ziff-Davis" actually became a negative-value trademark, a badge for unusually poor quality. Worse than random noise. This is a company who can put goodwill on the liabilities side of their balance sheet.

    They could even have reformed in the last few years, and I wouldn't know. They established a such horrible reputation and it would take a miracle to bring them back. I can't imagine that anyone reads them anymore.

    --
    As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
  15. Re:about time..The Day Z-D Journalism Died by drpatt · · Score: 5, Interesting

    I stopped buying PC Rag after their ridiculous "comparison" of OS/2 and Win95. It was only two pages, with 80% covered by a single graphic, correctly stating the differences in how each OS protected its running apps. After showing clearly how OS/2 was superior in crash protection, they chose their winner: "Verdict: Windows95 by a mile." After the barrage of hate mail in the next issue's ed page, they responded that they chose Win95 because they knew it would win the bulk of the market share. Technical merit had nothing to do with it. They went with MS, against the facts they presented, because they knew MS would win anyway. That was the last straw for me. They deserve what they are getting now.

  16. Re:Focus on gaming? My wish list by gethane · · Score: 3, Insightful

    Cheer! Here's one woman gamer cheering your comments.

    I quit EQ when they redesigned the boobs to be lethal weapons. I'm 33 years old, married, the mother of three kids, and buy WAY more games a year than your average 14 year old gamer. Why? Cause I have a job, and cash to buy them. I buy pretty much whatever catches my fancy. I don't have to save my paper route money, nor do I have to beg my parents for the money.

    Attracting new customers should be the goal of every new game. Instead of all those companies catering to the same, tired, cliched gamer, perhaps they should start looking at the gamers everyone forgets.. women. Oh, damn, you know, I forgot, someone already did that... The Sims. And wouldn't you know, its the best selling PC game... EVER.

    Catch a clue guys. We're here. We just don't talk to you all cause you are so damn RUDE. You treat us as if we aren't anything more than a pair of breasts and a pussy and that we're on this planet only to provide you with masturabatory material.

    Disclaimer: I do not mean all of you. I mean some of you who also replied to this thread. Shouldn't take much brainpower to figure out to whom I am referring.

  17. Dadgummest subscription process I've ever seen by T1girl · · Score: 3, Interesting

    Back in the last century, I used to love reading Interactive Week when I was working for a big networking company that was making tons of money, and so was Z-D. It was full of news, gossip and ads that were useful to my niche. I read and quoted from the online edition in my work several times a week, and my boss agreed to pay for a print subscription for me. But there was no apparent way to order and pay for a print subscription online. They wouln't sell you a subscription, but they would send it free - if only you filled out a lengthy survey of how much budget you controlled in a long list of categories. If you left out one, when you hit "submit," it erased everything, you got an error message and had to start all over again. You really had to want that magazine pretty badly to go through all that. My boss told me to just check off $50,000 for every category. I eventually started getting my magazines, but by then the tech bubble had burst, the magazine was barely thick enough to swat a fly with, and I had moved on to another sector, where my magazines nonetheless continued to follow me. So I don't see how they were making money on subscriptions, although they were probably told advertisers that they had a lot of powerful executives with big budgets reading their mag.

    You must be present to win.

  18. I'll be celebrating... by jejones · · Score: 4, Funny

    I remember back when Ziff-Davis bought up many fine computer magazines (e.g. Creative Computing, Color Computer Magazine) only to destroy them, leaving a scorched earth landscape with essentially nothing but Ziff-Davis magazines and no coverage of anything save PClones. Computer Shopper was bought and then all the columnists writing on non-Intel systems told to go away...so as far as I'm concerned, die, Ziff-Davis, home of Intel and MS shills. I'll dance on your grave.

  19. Re:about time..The Day Z-D Journalism Died by yog · · Score: 3, Interesting

    Yes, and their treatment of WinCE/PocketPC versus Palm has been similar. Back when WinCE handhelds were new, PC Mag touted their "familiar" Windows-like interface as this great advantage, despite being double the price and half the productivity power of a Palm. They simply bet with the projected winner instead of publishing an objective and truthful comparison. Feh!

    --
    it's = "it is"; its = possessive. E.g., it's flapping its wings.
  20. ZD-Day by Mulletproof · · Score: 3, Interesting

    Speaking of ZD and gaming, I used to have this favorite gaming publication called "Gamefan". Two favorite gaming mags, actually; NextGen for in-depth coverage of the industry and Gamefan for the big picture. Life was good until ZD started doing something that would annoy most of us... Stopped paying the Gamefan Editors... They weren't fired or layed off. ZD just wasn't coming through with the money. About half the staff quit and formed Gamers Republic, which was short lived. The remaining staff was forced to shut down the site and the great mag eventially disappeared into oblivion. Given this and other incidents, you can see why I am oh so hopeful that ZD succeeds in their new gaming venture. Or not.

    --
    You need a FREE iPod Nano