Amazon price war: Both sides want you to email a CEO

Amazon CEO Jeff Bezos and his Hachette counterpart should prepare for some reader emails.

NEW YORK (CNNMoney)

The war of words between Amazon, publishing house Hachette and an alliance of authors flared up this weekend, as the parties made their cases directly to readers.

There was still no sign the months-long standoff was any closer to a resolution than when it began in the spring.

That's when Amazon (AMZN, Tech30) started listing some Hachette e-books unavailable and physical copies as delayed, sometimes for several weeks. It has also posted prices higher than those available from other booksellers.

At the center of it all is a fight over how much Amazon should pay Hachette for e-books. Amazon says it should pay less because, it argues, e-books are less expensive to produce and have no resale value.

"With an e-book, there's no printing, no over-printing, no need to forecast, no returns, no lost sales due to out of stock, no warehousing costs, no transportation costs, and there is no secondary market -- e-books cannot be resold as used books," Amazon wrote in an online letter. It called the campaign Readers United.

Related: 5 gadgets that changed Amazon

But Hachette has said Amazon is not properly valuing the e-books. The publisher -- home to the Little, Brown and Grand Central Publishing brands -- said it wants a solution that "preserves our ability to survive and thrive as a strong and author-centric publishing company."

And the writers who have banded together said they're caught in the middle.

"This is no way to treat a business partner. Nor is it the right way to treat your friends," read a two-page ad from Authors United in Sunday's New York Times.

Among the signatories are high-profile Hachette authors Malcolm Gladwell and James Patterson. Those Hachette authors absent from the roll include J.K. Rowling, who has remained quiet on the matter, and Stephen Colbert, who rallied his fans against Amazon in a social media campaign this summer.

Both Amazon and the authors are trying to get readers to rally to their side. Amazon offered up an email address for Hachette CEO Michael Pietsch. The authors said they weren't taking sides, but provided an email address for CEO Jeff Bezos and asked supporters to help "change his mind."

Amazon, because of its size, has significant influence over pricing. But it has lost before. It conceded to the publisher Macmillan in 2010 but still insisted the prices it agreed to pay were "needlessly high for e-books."

First Published: August 10, 2014: 3:06 PM ET

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GM loses bid to stop key recall lawsuit

NEW YORK (CNNMoney)

A Georgia state judge on Saturday denied GM's attempt to stop the case brought by Brooke Melton's parents, according to Lance Cooper, the family's attorney.

Brooke Melton, 29, was killed on a rainy evening in 2010 when her 2005 Chevrolet Cobalt hydroplaned, hit an oncoming car and tumbled off the road into a ditch.

Her parents settled with General Motors last fall, months before GM (GM) recalled 2.6 million vehicles with the faulty switch.

Earlier this year, GM admitted that some employees were aware of the problem with the switch 10 years earlier.

The Meltons' effort to overturn the settlement alleges the company lied about not knowing of the flaw. Saturday's ruling allows them to move toward a trial.

The Meltons said their daughter was a cautious driver. Although she was going slightly above the speed limit, they doubted she was to blame for the crash. "I knew in my heart and in my gut there was something wrong with the car, that it wasn't her fault," her father, Ken Melton, told CNNMoney's Poppy Harlow in a May interview.

The Melton case helped push the recall scandal to the surface.

Related: GM's most popular pickup is this year's most recalled vehicle

Cooper's firm hired an engineering expert who discovered that the switch had been redesigned to make it harder to inadvertently turn the vehicle off while driving.

It was the first known time anyone besides General Motors and its supplier were aware of the issue.

General Motors said it was "disappointed in the court's decision." It said it believed the September 2013 settlement had been reached in "good faith" and barred additional legal action.

Related: Two victims; GM counts only one

The company established a victim compensation program led by attorney Ken Feinberg and had received at least 125 claims as of late last week. The Meltons have said they're not interested in that or any other settlement with GM this time.

The decision green-lights the pre-trial legal steps, including witness depositions and the exchange of evidence.

The case is schedule to go to trial in April 2016, but could be heard sooner, the Melton family attorney said.

First Published: August 10, 2014: 7:36 PM ET

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BuzzFeed raises another $50 million to fund expansion

NEW YORK (CNNMoney)

The cash infusion, from the giant venture capital firm Andreessen Horowitz, is BuzzFeed's fifth round of funding. It easily eclipses the four prior rounds, which raised a combined $46.3 million.

"We're presently in the midst of a major technological shift in which, increasingly, news and entertainment are being distributed on social networks and consumed on mobile devices. We believe BuzzFeed will emerge from this period as a preeminent media company," Andreessen Horowitz partner Chris Dixon wrote in a blog post describing the investment.

The investment comes a few months after talks fell apart between BuzzFeed and a potential buyer, The Walt Disney Company (DIS). BuzzFeed was "said to have sought upwards of $1 billion," a price tag that Disney was unwilling to consider, according to Fortune, which was the first to report on the talks in April.

Other news accounts at the time said BuzzFeed valued itself at "nearly $1 billion."

The $50 million from Andreessen Horowitz values BuzzFeed at "about $850 million," according to The New York Times, which was the first to report on the new funding round. (Amazon (AMZN, Tech30) founder Jeff Bezos bought The Washington Post last year for $250 million.)

Related: BuzzFeed fires viral politics editor for plagiarizing

BuzzFeed has become an emblem for the good and the bad of the digital age -- where first-hand news accounts from foreign lands live side by side with listicles sponsored by advertisers.

The company's financial results are closely held, but Dixon said in his blog post that it is "consistently profitable, and will generate triple digit millions in revenues this year."

With the new round of funding, the company will expand its news coverage and what it calls BuzzFeed Life, which includes lifestyle sections like food, parenting and style. Ben Smith, BuzzFeed's editor in chief, said on Twitter that "we're going to be looking to double our incredible foreign desk."

The headcount of the lifestyle team will roughly triple.

BuzzFeed will also expand its video unit, henceforth known as BuzzFeed Motion Pictures. The unit recently moved onto a 45,000-square-foot lot in Hollywood -- not bad for a site sometimes stereotyped as a home for cat videos.

First Published: August 10, 2014: 10:52 PM ET

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63 death claims filed so far by GM victims & families

NEW YORK (CNNMoney)

That's about five times more than the 13 deaths General Motors (GM) has officially admitted to.

The fund is being administered by victim compensation specialist Ken Feinberg, and has received 125 claims so far.

But Feinberg's assistant cautioned that just because a claim is submitted doesn't mean that it's eligible to be paid.

"Many claims will be received that cannot even get beyond the first test of eligibility," said Camille Biros.

The fund began accepting claims on August 1st, and will continue to do so through the end of the year.

Feinberg's office said it expects to respond to claims within three to four months of their submission.

Related: GM offers victims more than $1 million

General Motors set up the fund to pay victims and their families after it was revealed that the automaker knew of the problem 10 years before it recalled 2.6 million affected cars.

GM hired Feinberg, who handled victim compensation for disasters such as the 9/11 terrorist attacks and the BP oil spill in the Gulf of Mexico, to come up with a formula for compensating victims of the flawed ignition switch.

Feinberg's plan offers the families of those killed a base payout of $1 million each. Those families will get additional payments for lost wages, medical expenses and other losses, which could significantly increase the final totals. The family of a 25-year old with two children earning $46,400 a year would be owed about $4 million under the formula.

General Motors said it expects to pay out a total of between $400 million to $600 million to victims.

The ignition switch flaw can cause the car to shut off while driving, disabling safety features such as air bags, anti-lock brakes and power steering.

Related: Some victims get nothing from GM's compensation plan

Meanwhile, GM announced five more recalls Friday, some of which are for faulty ignitions.

The company is recalling more than 202,000 model year 2002-2004 Saturn VUE's because the ignition key can fall out when the vehicle is running.

It's also recalling 48,000 2013 Cadillac ATS four-door sedans and 2013 Buick Encores for defective seat belts.

The automaker recalled 15,000 2014-2015 Chevrolet Impala sedans for faulty dashboard latches 1,900 model year 2009-2010 Chevrolet Aveo and 2009 Pontiac G3's for brake fluid problems and 1,900 model year 2014 Chevrolet Sparks for potentially loose bolts on lower control arms. Control arms are part of the assembly that holds the wheel to the car.

First Published: August 8, 2014: 5:33 PM ET

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Oil companies remove staff from Iraq

Genel Energy said its oil drilling facility in northern Iraq is secure, but still withdrew some employees from the area.

NEW YORK (CNNMoney)

U.S. jet fighters on Friday launched air strikes against Islamic extremists in the Kurdistan region of Iraq, prompting Genel Energy (GEGYF), the largest independent oil producer in the region, to withdraw non-essential personnel from the area. Other oil production companies, including Afren (AFRNF) and Oryx Petroleum, were also withdrawing employees as well as temporarily suspending drilling at some sites.

Related: U.S. jet fighters strike ISIS in Iraq

While the escalated American military involvement may be heightening security concerns, the affected region contributes just about 15% of Iraq's oil production.

Crude oil prices barely budged on the move -- rising 0.3% to $97.62 a barrel on Friday.

That's because even if all production was suspended in the area, that amounts to a loss of only about 450,000 barrels a day, according to David McColl, an energy analyst at Morningstar.

However, what worries traders long term is the threat that the violence could impact exports from the south -- the heart of the country's oil industry.

"The big issue, and it always has been, is if ISIS continues its march toward Baghdad and further south towards the bigger oil fields," said McColl.

Oil prices spiked in June on fears that Iraq exports could eventually be affected. However prices have since retreated, and are down 6% in the past month.

First Published: August 8, 2014: 5:10 PM ET

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The 'Disney economy' is back

Singer Ariana Grande celebrates her 21st birthday at Disney World in June 2014.

NEW YORK (CNNMoney)

There are a lot of ways to answer that question, but one simple gauge is to look at how much Americans are spending on their vacations.

And lately, they have been spending a lot.

Related: Middle-class jobs are finally coming back

Visits to Disney World and Las Vegas are up, according to the latest company reports, and people are eating and drinking more and purchasing more trinkets when they are at the resorts.

Disney (DIS) theme park revenue was up 8% during the second quarter. The company credits "increased guest spending and higher attendance" for its good fortunes, especially at its American parks.

It's notable that Disneyland Paris is struggling, but in the U.S., it's like economic magic. People are back -- even after Disney World raised prices in May. A day pass to Disney World in Florida now costs $96 for those over age 10.

It's a similar story in Las Vegas. MGM (MGM), which runs Bellagio, MGM Grand and Mandalay Bay, among others, reported a surge in earnings this week that exceeded Wall Street expectations.

Only a year ago the company was struggling, but now its hotels are almost full, and visitors are spending more. In short, the MGM house is winning big time -- casino revenue at its U.S. resorts is up 6% from the same period in 2013.

To put it another way, the average daily rate for a night at the Bellagio was $259 on June 30, a nice jump from $247 a year before.

Related: MGM is winning big in Las Vegas, not Macau

Wynn (WYNN), which runs the Wynn Las Vegas and Encore resorts, saw its U.S. revenues jump 12.5%. Bookings are up, and Wynn has also benefited from more people losing money at its table games.

The company isn't even seeing the usual summer slump.

"We're pushing $50 million this month in Las Vegas," said Stephen Alan Wynn, CEO of Wynn Resorts when he was asked about corporate and conference activity during a late July call with investors. "I've never had a $50 million July in my business career in 40-odd years in gaming."

Related: No vacancy: Hotels are making a killing

The executives of each of these companies tried to play up the gains as great management and business strategy, but the economy is certainly helping.

"That's the seventh quarter in a row that [margins] have been increasing year-over-year," said MGM Resorts International CEO James Murren.

As CNNMoney has documented, plenty of Americans are still struggling, and the uptick in spending isn't being felt by all businesses. Six Flags (SIX), for example, saw a decline in attendance in 2014.

Still, when America's popular playgrounds are doing well, it's a good indication that the middle class is feeling better.

First Published: August 9, 2014: 8:41 AM ET

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Oil companies remove staff from Iraq

Genel Energy said its oil drilling facility in northern Iraq is secure, but still withdrew some employees from the area.

NEW YORK (CNNMoney)

U.S. jet fighters on Friday launched air strikes against Islamic extremists in the Kurdistan region of Iraq, prompting Genel Energy (GEGYF), the largest independent oil producer in the region, to withdraw non-essential personnel from the area. Other oil production companies, including Afren (AFRNF) and Oryx Petroleum, were also withdrawing employees as well as temporarily suspending drilling at some sites.

Related: U.S. jet fighters strike ISIS in Iraq

While the escalated American military involvement may be heightening security concerns, the affected region contributes just about 15% of Iraq's oil production.

Crude oil prices barely budged on the move -- rising 0.3% to $97.62 a barrel on Friday.

That's because even if all production was suspended in the area, that amounts to a loss of only about 450,000 barrels a day, according to David McColl, an energy analyst at Morningstar.

However, what worries traders long term is the threat that the violence could impact exports from the south -- the heart of the country's oil industry.

"The big issue, and it always has been, is if ISIS continues its march toward Baghdad and further south towards the bigger oil fields," said McColl.

Oil prices spiked in June on fears that Iraq exports could eventually be affected. However prices have since retreated, and are down 6% in the past month.

First Published: August 8, 2014: 5:10 PM ET

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22 year old's non-profit helps NYC kids in the summer

NEW YORK (CNNMoney)

That's why 22-year-old Karim Abouelnaga launched Practice Makes Perfect -- a non-profit enrichment program aimed at helping New York City school kids keep their skills up during summer vacation.

Abouelnaga first learned about the so-called "summer slide" phenomenon when he was researching the performance gap between African American and Hispanic students and their white peers. What he discovered is that some of that gap can be attributed to the lack of stimulating summer programs for non-white kids.

"The problem became personal for me because I had gone through the public school system," Abouelnaga said. "I saw that there was a critical need for summer education for our students."

So he went on to start Practice Makes Perfect. Schools pay for the program, but it's free for kids. With the support childhood mentors and friends at college, Abouelnaga has raised over $1 million dollars in grants and donations. The program is its fourth year and serves more than 10,000 students across the city.

Related: Facebook launched my startup

"Most of our kids most aren't coming from academic households," said Brandon Espinosa, the COO for Practice Makes Perfect. "For us the summer was a space where we could create a program that was all comprehensive."

Abouelnaga says that little emphasis was put on education at his home growing up. When his parents migrated from Egypt, his father's arts and crafts store brought in steady income, even though he didn't graduate from high school. Abouelnaga had planned to take over the store, but eventually the 13-year-old and his brothers began spending most evenings on street corners selling candy to help pay the rent.

"After my father died, our family business crumbled. Overnight we went from lower-middle class to poor." Abouelnaga said. "That's when I started taking my education more seriously."

First Published: August 8, 2014: 3:52 PM ET

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63 death claims filed so far by GM victims & families

NEW YORK (CNNMoney)

That's about five times more than the 13 deaths General Motors (GM) has officially admitted to.

The fund is being administered by victim compensation specialist Ken Feinberg, and has received 125 claims so far.

But Feinberg's assistant cautioned that just because a claim is submitted doesn't mean that it's eligible to be paid.

"Many claims will be received that cannot even get beyond the first test of eligibility," said Camille Biros.

The fund began accepting claims on August 1st, and will continue to do so through the end of the year.

Feinberg's office said it expects to respond to claims within three to four months of their submission.

Related: GM offers victims more than $1 million

General Motors set up the fund to pay victims and their families after it was revealed that the automaker knew of the problem 10 years before it recalled 2.6 million affected cars.

GM hired Feinberg, who handled victim compensation for disasters such as the 9/11 terrorist attacks and the BP oil spill in the Gulf of Mexico, to come up with a formula for compensating victims of the flawed ignition switch.

Feinberg's plan offers the families of those killed a base payout of $1 million each. Those families will get additional payments for lost wages, medical expenses and other losses, which could significantly increase the final totals. The family of a 25-year old with two children earning $46,400 a year would be owed about $4 million under the formula.

General Motors said it expects to pay out a total of between $400 million to $600 million to victims.

The ignition switch flaw can cause the car to shut off while driving, disabling safety features such as air bags, anti-lock brakes and power steering.

Related: Some victims get nothing from GM's compensation plan

Meanwhile, GM announced five more recalls Friday, some of which are for faulty ignitions.

The company is recalling more than 202,000 model year 2002-2004 Saturn VUE's because the ignition key can fall out when the vehicle is running.

It's also recalling 48,000 2013 Cadillac ATS four-door sedans and 2013 Buick Encores for defective seat belts.

The automaker recalled 15,000 2014-2015 Chevrolet Impala sedans for faulty dashboard latches 1,900 model year 2009-2010 Chevrolet Aveo and 2009 Pontiac G3's for brake fluid problems and 1,900 model year 2014 Chevrolet Sparks for potentially loose bolts on lower control arms. Control arms are part of the assembly that holds the wheel to the car.

First Published: August 8, 2014: 5:33 PM ET

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Hyundai fined $17 million for delaying recall

Hyundai recalled 43,500 Genesis sedans in 2013 -- but not quick enough for federal regulators.

NEW YORK (CNNMoney)

The company knew about problems with the vehicles' brakes in 2012, but only issued a recall in October 2013 after the government opened an investigation into the matter, federal safety regulators announced Thursday.

Hyundai told dealers to change the brake fluid in affected cars in March 2013. But the company didn't explain why, nor did it tell vehicle owners there was a problem for seven more months.

Related: Hot wheels and good deals

This particular problem affected 43,500 Genesis sedans from model years 2009-2012. The brake fluid did not sufficiently prevent corrosion, which increased the risk of a crash.

No fatalities or serious injuries were related to the defect, but the car maker did receive reports of six collisions and two minor injuries.

Hyundai is improving its processes to avoid a similar situation in the future, CEO David Zuchowski said in a statement Thursday.

The news comes a few months after General Motors (GM) was fined $35 million for delaying the recall of cars with a faulty ignition switch. That is the maximum amount the National Highway Traffic Safety Administration can fine automakers for a single violation.

First Published: August 7, 2014: 7:38 PM ET

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