Wednesday, May 23, 2007

PricewaterhouseCoopers Reports on Record Internet Advertising Revenues

PricewaterhouseCoopers LLP (PwC) and The Interactive Advertising Bureau (IAB) just released the Internet Advertising Revenue Report demonstrating the strong growth in US internet advertising. For the fourth quarter of 2006, US internet advertising revenues was $4.8 billion, a quarterly record and 35% over the same quarter in 2005. For the full year 2006, revenues were a record $16.9 billion again up 35% over 2005...

Saturday, May 12, 2007

Canada's Number 5 and 6 Accounting Firms Call Off Merger Talks

We had blogged earlier that the number 5 and number 6 accounting firms in Canada, namely BDO Dunwoody LLP and Grant Thornton LLP had started talks to merge their practices to become one of the largest accounting firms in the country and a clear alternative to the Big Four firms. Culture clash and amicable settlement of monies/rights between partners were two potential risks which we thought could put a spanner in the works.

Now the Big Four firms can rest with some ease.

Yesterday we see news reports that these firms’ Boards announced plans to end their merger discussions. There was no specific reasons stated which led to cessation of discussions. While the advantages of merger were clear, so it appeared did the challenges of coming together.

The press release says,” The due diligence process had proceeded amicably and with the cooperation of both firms, but despite best efforts the two firms were unable to overcome the challenges, and therefore were unable to complete the process to the satisfaction of all

Somehow we believe that the parties could not fully put their heads together on how power, organization and profits were going to be shared. We look to our readers to see if they have any insights on why this merger did not go through as planned.

Saturday, May 05, 2007

PCAOB Moves Up Calendar: Issues E&Y Inspection Report

The Public Company Accounting Oversight Board following its mandate required by the Sarbanes Oxley Act recently issued its 2006 inspection report for Ernst & Young. This appears to be a major shift in timing and the release is much ahead of its normal timetable of August. More so, the inspection was done between May and November of 2006. Ernst and Young is the only report issued for 2006, the other Big Four firms' reports have yet to be issued...