Sunday, September 24, 2006

Is the media overreacting on H-P?

Marek Fuchs makes that point in, and he may be right. He says the media, after first downplaying all that spying stuff, is now piling on: “Hell hath no fury like a business media that was wrong — they’ll ride the story both ways, overreacting as much as they originally underreacted.”

The media frenzy on Hewlett-Packard reminds me a little of how the financial press piled on Dick Grasso during his 2003 pay controversy.

I think that the "piñata principle" applies here. That is, once the criticism of a company or executive reaches a tipping point, he is officially a "piñata" and will remain such until an effective counter-spin campaign commences.

During his pay controversy, Grasso was tranformed from "capitalist icon" into "grasping and overpaid bald man" and roughly the same thing has happened to the H-P dustup, which moved quickly from "big nothing" into a chairperson-displacing earthquake.

I did enjoy the spectre of a CEO apologizing to journalists, by the way. Now that is a man-bites-dog story.

© 2006 Gary Weiss. All rights reserved.


Wall Street Versus America was published by Penguin USA on April 6.
Click here for its listing and here for more information on the book, from my web site.

Labels: ,

Enter your email address:

Delivered by FeedBurner