Fast-Food Workers in New York City Rally for Higher Wages


Michael Nagle for The New York Times


A rally at a McDonald’s near Times Square on Thursday. Organizers said 200 fast-food workers went on strike in New York City.







The biggest wave of job actions in the history of America’s fast-food industry began at 6:30 a.m. on Thursday at a McDonald’s at Madison Avenue and 40th Street, with several dozen protesters chanting: “Hey, hey, what do you say? We demand fair pay.”




That demonstration kicked off a day of walkouts and rallies at dozens of Burger King, Taco Bell, Wendy’s, McDonald’s and other fast-food restaurants in New York City, organizers said. They said 14 of the 17 employees scheduled to work the morning shift at the McDonald’s on Madison Avenue did not — part of what they said were 200 fast-food workers who went on strike in the city.


Raymond Lopez, 21, an aspiring actor who has worked at the McDonald’s for two and a half years, showed up at the daybreak protest on his day off. “In this job, having a union would really be a dream come true,” said Mr. Lopez, who said his pay of $8.75 an hour left him feeling undercompensated. “It really is living in poverty.”


Workplace experts said it was by far the largest series of job actions at fast-food restaurants ever — part of an ambitious plan that seeks to unionize workers and increase wages at fast-food restaurants across the city.


The unionization drive, called Fast Food Forward, is sponsored by community and civil rights groups — including New York Communities for Change, United NY.org and the Black Institute — as well as the Service Employees International Union. The campaign has deployed 40 organizers since January to rally fast-food workers behind unionization, saying the goal is to raise wages to $15 an hour.


Rick Cisneros, the franchisee who operates the McDonald’s at 40th and Madison, said: “I value my employees. I welcome an open dialogue while always encouraging them to express any concerns or to provide feedback so I can continue to be an even better employer.”


Several mayoral candidates — including Christine C. Quinn, the City Council speaker; Bill de Blasio, the public advocate; John C. Liu, the comptroller; and William C. Thompson Jr., a former comptroller — were quick to voice support for the workers. As those candidates vie for the Democratic nomination, they are furiously jockeying for union support.


Mary Kay Henry, the service employees’ president, said the fast-food companies could easily afford to pay their employees more. “People who work for the richest corporations in America should be able to afford at least the basic necessities to support their families,” she said.


Labor leaders say they see an uptick in activism among low-wage workers — including last week’s Walmart protests — as workers grow increasingly frustrated about pay stagnating at $8 or $9 an hour, translating into $16,000 or $18,000 a year for a full-time worker.


Pamela Waldron, who has worked at the KFC in Pennsylvania Station for eight years, complained that she earned just $7.75 an hour and was assigned just 20 hours a week, meaning income of about $8,000 a year. She was picketing outside a Burger King on 34th Street, as several dozen workers and their supporters chanted, “How can we survive on seven twenty-five” — $7.25 an hour is the federal and New York State minimum wage.


“I’m protesting for better pay,” Ms. Waldron, 26, said. “I have two kids under 6, and I don’t earn enough to buy food for them.”


Miguel Piedra, a Burger King spokesman, said its restaurants provide entry-level jobs for millions of Americans, train and invest in workers, and “offer compensation and benefits that are consistent with the quick-service restaurant industry.”


Fast Food Forward said it had filed six complaints with the National Labor Relations Board, asserting that various restaurant managers had threatened to fire workers for striking or supporting a union or had improperly interrogated workers about backing the effort.


The protest on Thursday culminated in a rally with hundreds of fast-food workers and their supporters outside the McDonald’s on 42nd Street west of Times Square. They chanted, “Hey, hey, ho, ho, seven-twenty-five has got to go.”


Inside the McDonald’s on Madison Avenue on Thursday morning, a few workers made funny faces as their friends demonstrated outside. A few patrons, quaffing coffee and gobbling sausage McMuffins, eyeballed the protesters with concern through the restaurant windows.


Jocelyn Horner, 35, a graduate student, said she supported the protesters. “If anybody deserves to unionize, it’s fast-food workers,” she said.


A cashier whose name tag read “Milady” said she chose not to participate in the demonstration.


“At least I have a job,” she said.


Randy Leonard and Nate Schweber contributed reporting.



Read More..

Powerball's $580-million jackpot inspires wishes, dreamers









Don't bother telling Wednesday night's Powerball winners  that a lottery is just a tax on those who flunked math. With a winning ticket in hand, or even just the dream of one, who cares if the odds against them exceeded 175 million to 1? 


Last-minute ticket-buying pushed the jackpot to nearly $580 million, which is how much a single winner would get if he or she took the money in annual payments over 30 years.  


The winning numbers: 5-16-22-23-29, and the Powerball:  06. 





Hours after the 8 p.m. drawing, officials said winning tickets had been sold in Arizona and Missouri.


No one had won since Oct. 6, causing the jackpot to roll over 16 times. It  grows at least $10 million every time no one wins, lottery officials said. 


To play Powerball, one must pick five unique numbers from 1 through 59, and a Powerball number from 1 through 35. The odds of winning are 1 in 175,223,510. 


Powerball tickets aren't sold in California, but some feverish residents reportedly drove or flew to one of 42 participating states  to buy a chance at a fortune. The District of Columbia and the U.S. Virgin Islands also participate. 


Maybe the next time the jackpot soars, out-of-state travel won't be necessary. On Thursday, the California State Lottery Commission is expected to adopt regulations to join the Powerball lottery. If so, California retailers could start selling the $2 tickets in April.


[Updated, 10:45 p.m., Nov. 28: An earlier version of this post said the jackpot would exceed $550 million.  Late Wednesday, the Associated Press reported, Powerball officials said it would be nearly $580 million. And early Thursday EST, lottery officials said winning tickets had been sold in Arizona and Missouri.]


 ALSO:


Zig Ziglar dies at 86; motivational speaker inspired millions


Nanny, in hospital, pleads not guilty to murder of 2 children


Texas moves to seize polygamist Warren Jeffs' ranch compound 







Read More..

A Google-a-Day Puzzle for Nov. 29











Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.


SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!


Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.


And now, without further ado, we give you…


TODAY’S PUZZLE:



Note: Ad-blocking software may prevent display of the puzzle widget.




Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @wiredgeekdad on Twitter.



Read More..

Cate Blanchett in negotiations for evil stepmother in Disney’s Cinderella film












LOS ANGELES (TheWrap.com) – Cate Blanchett is in negotiations to play the evil stepmother in Disney‘s re-imagining of the classic fairytale Cinderella, the “Untitled Cinderella Story,” an individual with knowledge of the situation told TheWrap.


Blanchett would be the first to be cast in the live-action film. It is being directed by Mark Romanek for the studio based on a script by Chris Weitz.












The film is being produced by Simon Kinberg, who is best-known for the “X-Men” series.


The feature was first set up at Disney in May 2010 based on a pitch by Aline Brosh McKenna (“Devil Wear Prada.”), who wrote the initial draft.


Disney set the project up in the wake of its success with “Alice in Wonderland,” an adaptation of the Lewis C. Carroll book that starred Johnny Depp.


Disney representatives could not be reached for comment.


Blanchett can next be seen on screen in “The Hobbit: An Unexpected Journey” on December 14. She was recently confirmed for George Clooney’s upcoming film “The Monuments Men.” She will also be seen in “The Hobbit: The Desolation of Smaug” and “The Hobbit: There and Back Again.”


Cinderella has been adapted for the big screen dozens of times. In Andy Tennant’s 1998 version “Ever After: A Cinderella Story,” Angelica Houston played the evil stepmother. In the TV movie “Cinderella” in 1997, the role was played by Bernadette Peters. Sigourney Weaver voiced the character in “Happily N’Ever After” in 2006. Disney‘s 1950 version featured Eleanor Audley in the voice role of Lady Tremaine, the wicked stepmother.


Movies News Headlines – Yahoo! News


Read More..

Cost of Brand-Name Prescription Medicines Soaring





The price of brand-name prescription medicines is rising far faster than the inflation rate, while the price of generic drugs has plummeted, creating the largest gap so far between the two, according to a report published Wednesday by the pharmacy benefits manager Express Scripts.




The report tracked an index of commonly used drugs and found that the price of brand-name medicines increased more than 13 percent from September 2011 to this September, which it said was more than six times the overall price inflation of consumer goods. Generic drug prices dipped by nearly 22 percent.


The drop in the price of generics “represents low-hanging fruit for the country to save money on health care,” said Dr. Steve Miller, the chief medical officer of Express Scripts, which manages the drug benefits for employers and insurers and also runs a mail-order pharmacy.


The report was based on a random sample of six million Express Scripts members with prescription drug coverage.


The Pharmaceutical Research and Manufacturers of America, the trade group representing brand-name manufacturers, criticized the report, saying it was skewed by a handful of high-priced specialty drugs that are used by a small number of patients and overlooked the crucial role of major drug makers.


“Without the development of new medicines by innovator companies, there would be neither the new treatments essential to progress against diseases nor generic copies,” Josephine Martin, executive vice president of the group, said in a statement.


The report cited the growth of specialty drugs, which treat diseases like cancer and multiple sclerosis, as a major reason for the increase in spending on branded drugs. Spending on specialty medicines increased nearly 23 percent during the first three quarters of 2012, compared with the same period in 2011. All but one of the new medicines approved in the third quarter of this year were specialty drugs, the report found, and many of them were approved to treat advanced cancers only when other drugs had failed.


Stephen W. Schondelmeyer, a professor of pharmaceutical economics at the University of Minnesota, said the potential benefits of many new drugs did not always match the lofty price tags. “Increasingly it’s going to be difficult for drug-benefit programs to make decisions about coverage and payment and which drugs to include,” said Mr. Schondelmeyer, who conducts a similar price report for AARP. He also helps manage the drug benefit program for the University of Minnesota.


“We’re going to be faced with the issue that any drug at any price will not be sustainable.”


Spending on traditional medicines — which treat common ailments like high cholesterol and blood pressure — actually declined by 0.6 percent during the period, the report found. That decline was mainly because of the patent expiration of several blockbuster drugs, like Lipitor and Plavix, which opened the market for generic competitors. But even as the entry of generic alternatives pushed down spending, drug companies continued to raise prices on their branded products, in part to squeeze as much revenue as possible out of an ever-shrinking portfolio, Dr. Miller said.


Drug makers are also being pushed by from companies like Express Scripts and health insurers, which are increasingly looking for ways to cut costs, said C. Anthony Butler, a pharmaceuticals analyst at Barclays. “I think they’re pricing where they can but what they keep telling me is they’re under significant pressure” to keep prices low, he said.


Express Scripts earns higher profits from greater use of generic medicines than brand name drugs sold through their mail-order pharmacy, Mr. Butler said. “There’s no question that they would love for everybody to be on a generic,” he said.


Dr. Miller acknowledged that was true but said that ultimately, everyone wins. “When we save people money, that’s when we make money,” he said. “We don’t shy away from that.”


Read More..

Regents OK raise for new UC Berkeley chief









Despite strong opposition from Gov. Jerry Brown, the UC Board of Regents on Tuesday gave the incoming chancellor of UC Berkeley a $50,000 — or 11.4% — pay raise over the current campus head. The extra money will come from private donations, not state funds, the regents said.


Nicholas B. Dirks will be paid $486,000, which officials said is $14,000 less than his current salary as a high-ranking administrator at Columbia University.


Brown, who is a regent, described Dirks as an excellent choice but said he would not vote for the salary given the austerities that the state and the 10-campus UC system still face. The university must look for more efficient ways to teach and operate and "the leaders have to demonstrate that they are also sacrificing," Brown said.





The $50,000 increase, even though it won't come from public coffers, "does not fit within the spirit of servant leadership that I think will be required over the next few years," the governor said.


Brown also cited voters' recent approval of his Proposition 30 tax increase, which spared UC from deep budget cuts. During the campaign for the measure, the governor said, he promised voters that he would "use their funds judiciously and with prudence."


Brown, who rarely attended regents meetings before the election, has since become a dramatic presence and voice against UC status quo. Since last summer, he has criticized raises for Cal State executives and suggested that all public colleges promote less expensive insiders instead of shopping for high-priced "hired guns" from across the country.


Besides noting that Dirks will take a pay cut from being Columbia's executive vice president and dean of its arts and sciences faculty, UC leaders said his UC Berkeley salary will be much lower than that of leaders at many other prestigious public and private universities.


"I try to get the very best person I can in this job to navigate the university through some very complicated times," UC system President Mark G. Yudof said.


Yudof said he and Brown do not see "exactly eye to eye" on Dirks' pay, but Yudof said he and the governor agree on nearly all other issues, including efforts to keep tuition from rising.


The regents first debated the issue privately Tuesday in a telephone conference call linking those in Oakland, Sacramento and Los Angeles. After the call went public, three regents voted against the pay increase — Brown, Lt. Gov. Gavin Newsom and Charlene Zettel — and 11 others voted for it. All 14 voted to appoint Dirks.


State Sen. Leland Yee (D-San Francisco), a frequent UC critic, issued a statement suggesting that Dirks follow the example of Timothy P. White, who recently asked for a 10% pay cut from the salary paid his Cal State predecessor. Yee said he would reintroduce legislation to limit executive pay raises in public higher education.


When he starts at the 36,000-student UC Berkeley on June 1, Dirks will receive free campus housing, along with $121,700 in relocation fees paid out in installments over four years and other benefits.


An anthropologist and historian who is an expert on India and its British colonial era, he will succeed Robert J. Birgeneau, who has been Berkeley chancellor for eight years. Dirks' wife, Columbia history professor Janaki Bakhle, is expected to receive a faculty job at UC Berkeley, but officials said her hiring and any possible salary must be reviewed by faculty panels.


After his confirmation, Dirks, who is the son of a former UC Santa Cruz administrator, said he was grateful to lead "one of the greatest universities in the world" and said he would work to boost student financial aid and encourage interdisciplinary research and studies.


He thanked Brown and California voters for passing Proposition 30, which raises the state sales tax a quarter-cent over four years and the income tax on high earners over seven years. Dirks, 61, promised that he would carefully "steward the tax dollars that are being paid by the citizens of this great state."


The regents unanimously approved an annual $245,600 salary and housing for Jane Close Conoley, who will become acting chancellor at UC Riverside next month until a permanent one is hired. That salary is below the $325,000 pay of the current Riverside campus chief, White, who is leaving to become chancellor of the Cal State system. Conoley is now dean of UC Santa Barbara's Gervitz Graduate School of Education.


larry.gordon@latimes.com





Read More..

A Google-a-Day Puzzle for Nov. 28











Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.


SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!


Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.


And now, without further ado, we give you…


TODAY’S PUZZLE:



Note: Ad-blocking software may prevent display of the puzzle widget.




Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @wiredgeekdad on Twitter.



Read More..

Robbie Williams aims to seal solo legacy with tour












LONDON (Reuters) – Still famous as the in-again/out-again member of chart-topping boyband Take That, British singer Robbie Williams says it is time to get serious as a solo artist and prove his place at the top of the pop pile.


Williams told reporters on Monday he planned a 15-date European stadium tour kicking off in Manchester on June 19, 2013 and concluding in Tallinn, Estonia on August 20.












“I’m buzzing. I’m ready to go. I haven’t done a tour of this size since 2006,” he said in London.


“I think it’s legacy time, because I’m venturing into getting my handicap down at golf and all that business.


“I’m nearly 40, that’s what I’m trying to say. I want to go and seal my place in pop history and go off and deliver a tour of great magnitude while I still can.”


The 38-year-old in fact enjoyed major success after leaving Take That in 1995, producing a string of hit albums and singles including “Angels” and “Millennium” and signing a contract with EMI in 2002 reportedly worth tens of millions.


But by the time his 2006 album “Rudebox” came out followed by “Reality Killed the Video Star” in 2009, he was seen as a dwindling force in British pop who had failed to break the key U.S. market.


Williams rejoined Take That in 2010 and they recorded the hit album “Progress” before touring together in 2011, and the singer said the experience had helped give him confidence to tour large venues again as a solo artist.


“I just ran out of ideas and ran out of a bit of creativity and ran out of energy and did the textbook ‘burnt out’,” he said of the late 2000s.


“But I’ve been working really hard and I needed to do something else, and fortunately it came in the shape of my old band. A lot of demons were vanquished from the past. A lot of wrongs were put to rights.


“That tour last summer was just absolutely incredible. It kick-started my professional career.”


Earlier this month, Williams returned to the top of the album charts with “Take the Crown”.


Asked whether he would consider rejoining Take That again, he replied: “I haven’t officially left … What I do know is that … if we all remain healthy then I will definitely be a part of Take That at some point. It’s joyful being around them.”


Williams conceded it may be too early to talk about his legacy at 38, but added he wanted to “put my stamp down.


“The fact that 40 is looming plays on my mind more than it does on anybody else’s mind. Pop stars cease to be pop stars at 40 and start being old people singing, don’t they?


“There is a forum for a male solo star to get up there in stadiums and own the place and I want that to be me, so I’ve kind of been lethargic for the last couple of albums.”


Williams recently became a father, and said his daughter would accompany him on tour. Olly Murs, who rose to fame on “The X Factor” reality TV show, will support Williams on his tour.


(Reporting by Mike Collett-White, editing by Paul Casciato)


Music News Headlines – Yahoo! News


Read More..

Amid Hurricane Sandy, a Race to Get a Liver Transplant





It was the best possible news, at the worst possible time.




The phone call from the hospital brought the message that Dolores and Vin Dreeland had long hoped for, ever since their daughter Natalia, 4, had been put on the waiting list for a liver transplant. The time had come.


They bundled her into the car for the 50-mile trip from their home in Long Valley, N.J., to NewYork-Presbyterian Morgan Stanley Children’s Hospital in Manhattan. But it soon seemed that this chance to save Natalia’s life might be just out of reach.


The date was Sunday, Oct. 28, and Hurricane Sandy, the worst storm to hit the East Coast in decades, was bearing down on New York. Airports and bridges would soon close, but the donated organ was in Nevada, five hours away. The time window in which a plane carrying the liver would be able to land in the region was rapidly closing.


In a hospital room, Natalia watched cartoons. Her parents watched the clock, and the weather. “Our anxiety was through the roof,” Mrs. Dreeland said. “It just made your stomach into knots.”


The Dreelands, who are in their 60s, became Natalia’s foster parents in 2008 when she was 7 months old, and adopted her just before she turned 2. They have another adopted daughter, Dorothy Jane, who is 17.


Natalia is a “smart little cookie” who loves school and dressing up Alice, her favorite doll, her mother said. At age 3, Natalia used the word “discombobulated” correctly, Mr. Dreeland said.


Natalia’s health problems date back several years. Her gallbladder was taken out in 2010, and about half her liver was removed in 2011. The underlying problem was a rare disease, Langerhans cell histiocytosis. It causes a tremendous overgrowth of a type of cell in the immune system and can damage organs. Drugs can sometimes keep it in check, but they did not work for Natalia.


In her case, the disease struck the bile ducts, which led to progressive liver damage. “She would have eventually gone into liver failure,” said Dr. Nadia Ovchinsky, a pediatric liver transplant specialist at NewYork-Presbyterian. “And she demonstrated some signs of early liver failure.”


The only hope was a transplant.


Dr. Tomoaki Kato, Natalia’s surgeon, knew that the liver in Nevada was a perfect match for Natalia in the two criteria that matter most: blood type and size. The deceased donor was 2 years old, and though Natalia is nearly 5, she is small for her age. Scar tissue from her previous operations would have made it very difficult to fit a larger organ into her abdomen.


Though Dr. Kato had considered transplanting part of an adult liver into Natalia, a complete organ from a child would be far better for her. But healthy organs from small children do not often become available, Dr. Kato said. This was a rare opportunity, and he was determined to seize it.


But as the day wore on, the odds for Natalia grew slimmer. The operation in Nevada to remove the liver was delayed several times.


At many hospitals, surgery to remove donor organs is done at the end of the day, after all regularly scheduled operations. The Nevada hospital had a busy surgical schedule that day, made worse by a trauma case that took priority.


At the hospital in New York, Tod Brown, an organ procurement coordinator, had alerted a charter air carrier that a flight from Nevada might be needed. That company in turn contacted West Coast carriers to pick up the donated liver and fly it to New York.


Initially, two carriers agreed, but then backed out. Several other charter companies also declined.


Mr. Brown told Dr. Kato that they might have to decline the organ. Dr. Kato, soft-spoken but relentless, said, “Find somebody who can fly.”


Dr. Kato used to work in Miami, where pilots found ways to bypass hurricanes to deliver organs. Even during Hurricane Katrina, his hospital performed transplants.


“I asked the transplant coordinators to just keep pushing,” he said.


Mr. Brown said, “Dr. Kato knew he was going to get that organ, one way or another.”


As the trajectory of the storm became clearer, one of the West Coast charter companies agreed to attempt the flight. The plan was to land at the airport in Teterboro, N.J. The backup was Newark airport, and the second backup was Albany, from where an ambulance would finish the trip.


The timing was critical: organs deteriorate outside the body, and ideally a liver should be transplanted within 12 hours of being removed.


Early Monday, as the storm whirled offshore, the plane landed at Teterboro. Soon a nurse rushed to tell the Dreelands that she had just seen an ambulance with lights and sirens screech up to the hospital. Someone had jumped out carrying a container.


At about 5 a.m., the couple kissed Natalia and saw her wheeled off to the operating room.


Three weeks later, she is back home, on the mend. The complicated regimen of drugs that transplant patients need is tough on a child, but she is getting through it, her father said.


Recently, Mr. Dreeland said, he found himself weeping uncontrollably during a church service for the family of the child who had died. “Their child gave my child life,” he said.


Though only time will tell, because the histiocytosis appeared limited to Natalia’s bile ducts and had not affected other organs, her doctors say there is a good chance that the transplant has cured her.


This article has been revised to reflect the following correction:

Correction: November 28, 2012

Because of an editing error, a picture caption with an article on Tuesday about a girl who received a liver transplant during Hurricane Sandy misspelled the surname of the girl’s family. As the article correctly noted, it is Dreeland, not Vreeland.



Read More..

Facebook Gift Store Urges Users to Shop While They Share





SAN FRANCISCO — Facebook is already privy to its users’ e-mail addresses, wedding pictures and political beliefs. Now the company is nudging them to share a bit more: credit card numbers and offline addresses.







James Best Jr./The New York Times

Facebook Gifts is a service that prompts users to buy things for friends on the social network.






Sharing Even More




What do you think about Facebook’s plan to have users buy gifts for their friends through the site using their credit cards?







A screenshot of Facebook Gifts.






The nudge comes from a new Facebook service called Gifts. It allows Facebook users — only in the United States for now — to buy presents for their friends on the social network. On offer are items as varied as spices from Dean & DeLuca, pajamas from BabyGap and subscriptions to Hulu Plus, the video service. This week Facebook added iTunes gift cards.


The gift service is part of an aggressive moneymaking push aimed at pleasing Facebook’s investors after the company’s dismal stock market debut. Facebook has stepped up mobile advertising and is starting to customize the marketing messages it shows to users based on their Web browsing outside Facebook.


Those efforts seem to have brought some relief to Wall Street. Analysts issued more bullish projections for the company in recent days, and the stock was up 49 percent from its lowest point, closing Tuesday at $26.15, although that is still well below the initial offering price of $38. The share price has been buoyed in part by the fact that a wave of insider lockup periods expired without a flood of shares hitting the market.


To power the Gifts service, Facebook rented a warehouse in South Dakota and created its own software to track inventory and shipping. It will not say how much it earns from each purchase made through Gifts, though merchants that have a similar arrangement with Amazon.com give it a roughly 15 percent cut of sales.


If it catches on, the service would give Facebook a toehold in the more than $200 billion e-commerce market. Much more important, it would let the company accumulate a new stream of valuable personal data and use it to refine targeted advertisements, its bread and butter. The company said it did not now use data collected through Gifts for advertising purposes, but could not rule it out in the future.


“The hard part for Facebook was aggregating a billion users. Now it’s more about how to monetize those users without scaring them away,” said Colin Sebastian, an analyst with Robert W. Baird.


He added: “Gifts should also contribute more to Facebook’s treasure trove of user data, which has the benefit of a virtuous cycle, driving more personalization of the site, leading to better and more targeted ads, which improves overall monetization.”


Facebook already collects credit card information from users who play social games on its site. But they are a limited constituency, and a wider audience may be persuaded to buy a gift when Facebook reminds them that a friend is expecting a baby or a cousin is approaching her 40th birthday.


The Gifts service, which grew out of Facebook’s acquisition of a mobile application called Karma, was introduced in September and expanded earlier this month on the eve of the holiday shopping season.


Magnolia Bakery, based in New York, was among Facebook’s early partners for Gifts. Its vice president for public relations, Sara Gramling, said the company had sold roughly 200 packages of treats since then. She counted it as a marketing success. The bakery, which gained fame thanks to “Sex and the City,” had only recently begun shipping its goods. “It was a great opportunity to expand our network,” she said.


Magnolia Bakery isn’t exactly catering to the masses. A half-dozen cupcakes cost $35, plus about $12 for shipping. Facebook, Ms. Gramling said, takes care of the billing. The bakery is eyeing Facebook’s global reach, too, as it opens outlets internationally, especially in the Middle East.


One of the appeals of Facebook Gifts is the ease of making a purchase. Facebook users are nudged to buy a gift (a gift-box icon pops up) for Facebook friends on their birthdays. They are offered a vast menu to choose from: beer glasses, cake pops, quilts, marshmallows, magazine subscriptions and donations to charity. They are asked to choose a greeting card. Then they are asked for credit card details. Facebook says it stores that credit card information, unless users remove it after making a purchase.


Facebook has declined to say how many users have bought gifts, only that among those who have, the average purchase is $25.


David Streitfeld contributed reporting.



Read More..