Stories for May 19, 2014
A Camarillo solar-panel company was among the targets of hacking by Chinese military officers, the U.S. Department of Justice announced on Monday.
Privately held San Diego cancer vaccine maker MabVax Inc. has merged with Palo Alto-based Telik Inc. — a once high-flying drugmaker whose reputation and stock value tumbled after drug failures and an ethics controversy.
Cheesecake Factory Inc. entered into an agreement on Monday to open at least 14 restaurants in Asia over the next 10 years.
Irvine-based Allergan Inc. today fired back at activist investor Bill Ackman in a tersely worded letter prompted by Ackman’s conflict of interest charges against Chairman and Chief Executive David Pyott.
San Diego-based Corky McMillin Cos. is in the process of selling Millenia, the $4 billion mixed-use development underway in Chula Vista, company Chairman Scott McMillin said.
San Diego Opera’s board of directors announced a shortened 2015 season voting to rescind a March vote to dissolve the organization.
EDF Renewable Energy announced that half of its equity interest in the 143-megawatt Catalina Solar project is being acquired by TIAA-CREF, a financial services provider.
San Diego-based Senomyx Inc. said PepsiCo Inc. has exercised its option to extend the companies’ collaborative agreement related to Senomyx’s sweet-taste technology for an additional two years, through August 2016.
Huntington Capital, a San Diego-based private equity fund specializing in the software industry, said it closed a combination of preferred equity and mezzanine debt capital investment in Cubex LLC, a Tempe, Ariz., based software business.
Legoland California Resort in Carlsbad plans a May 24 opening for its new attraction, Lego Legends of Chima Water Park.
Tony Hawk is hawking a four-wheel vehicle much heavier than a skateboard.
St. Malo is a cluster of French Normandy Tudor homes on the north side of the Buena Vista Lagoon between Oceanside and Carlsbad. You can see the slanted roofs, decorative half-timbering, turreted towers and animal wind vanes of this distinctive community from Highway 101 and the beach.
Epsilon Systems Solutions Inc. said it received a $5.7 million contract to overhaul the Arco, a floating dry dock that the U.S. Navy uses to service submarines in San Diego.
Cox is giving the USS Midway Museum a $1.5 million grant to expand its educational program.
San Diego Ad Club is changing its name to SDX, the organization announced.
Newport Beach-based bond investor Pacific Investment Management Co. has pegged May 27 as the official date for moving into its new headquarters building a few blocks away from its current home in Newport Center.
Outdoor design plans for Westfield Group’s $350 million mall expansion in Woodland Hills were unveiled on Monday, with the company adopting a style that pays homage to San Fernando Valley’s agricultural roots.
Warner Bros. Entertainment scored a monster hit over the weekend with “Godzilla” pulling in $93.2 million, the second-highest grossing opening weekend so far this year.
The National Basketball Association on Monday announced it was moving forward with the plan to allow team owners to decide whether Donald Sterling can keep ownership of the Clippers.
The National Basketball Association on Monday announced it was moving forward with the plan to allow team owners to decide whether Donald Sterling can keep ownership of the Clippers.
William Andrew “Bill” Feathers, a pioneer in the marketing of construction and design services, died May 10. He was 90.
The Irvine Company has struck a deal to buy a Chicago skyscraper for $850 million.
Anaheim-based Source Refrigeration & HVAC Inc. has acquired Service Refrigeration Co. in Humble, Texas, on undisclosed terms.
Venice’s Whisper, maker of a mobile app that lets users share content anonymously, raised $36 million in Series C funding from new investors including Tencent, Shasta Ventures and Thrive Capital, who were joined by existing financial backers Sequoia Capital and Lightspeed Venture Partners.
Downtown Los Angeles commercial real estate firm CBRE Group announced Monday that Ray Wirta has been chosen to succeed Richard Blum as chairman.
At the close of the markets Monday, the Dow Jones industrial average rose 21 points to 16,512. The Nasdaq was up 35 points to 4,126. The S&P 500 ticked up 7 points to 1,885. The LABJ Stock Index was up 1 point to 189.
Yakult U.S.A. Inc. has begun production of its probiotic drink at its new Fountain Valley manufacturing plant.
Irvine Co. executive Ray Wirta has been named the new chairman of Los Angeles-based brokerage CBRE Group Inc.
AT&T; is acquiring satellite broadcaster DirecTV for nearly $49 billion, the latest in a series of big deals that are transforming the media and telecommunications landscape, the Los Angeles Times reports. The deal puts increased pressure on pay-TV companies that don't have a partner, The Wall Street Journal reports.
As rents continue to rise, apartment construction is surging in Southern California, the Los Angeles Times reports.
California's income will be about $2.5 billion higher than Gov. Jerry Brown predicted in his latest budget, the Los Angeles Times Reports. It's surprise cash that Democratic lawmakers will almost certainly use to challenge the governor's call for continued austerity.
After a failed attempt to purchase the video and picture messaging app Snapchat for $3 billion last year, Mark Zuckerberg is now personally supervising an internal effort to build a competing "ephemeral messaging" app called "Slingshot" internally, the Verge reports.
Google’s YouTube has reached a deal to buy Twitch, a popular videogame-streaming company in the Bay Area for $1 billion, Variety reports.
“Godzilla,” a new take on the 1950s Japanese monster classic, opened at No. 1 in domestic theaters this past weekend, surpassing forecasts with $93.2 million for Thomas Tull’s Legendary Entertainment LLC and partner Warner Bros., Bloomberg reports.
Since last year, Philip Anschutz's family-oriented Walden Media, which produced the "Narnia" movies, has been in the throes of a transformation that finds it courting allies from across a deep cultural divide to get movies made, The New York Times reports.
Disneyland Resort raised its ticket prices on Sunday, with a one-day, one-park ticket for visitors 10 and older going to $96. The $4 boost at Disneyland and Disney California Adventure means that single-day ticket prices have more than doubled since 2003, the Orange County Register reports.
Last year, 584 feature films sought permits to shoot in Los Angeles. Some had budgets as high as $170 million for a Marvel Studios hero flick. But also filming on the streets of the city are super-low-budget films made by students and other Hollywood hopefuls, the Los Angeles Times reports. Some are working without permits despite a city ordinance that makes it a misdemeanor to film without one.
SpaceX's Dragon cargo ship returned to Earth from the International Space Station on Sunday, bringing back nearly two tons of science experiments and old equipment for NASA, the Associated Press reports.
California Chrome's co-owner said Monday that he'd like to see the horse compete for a shot at horse racing's prestigious Triple Crown, despite questions over whether the horse will be allowed to wear a breathing strip on his nose, CNN reports.
In Monday morning trading, the Dow Jones industrial average rose less than a point to 16,492. The Nasdaq was up 28 points to 4,118. The S&P 500 ticked up 3 points to 1,881.
Viacom and CBS executive chairman got nice bump from soaring value of more than 40 million shares in each company.
Restaurants: IHOP, rivals face pitfalls with Mideast expansions.
Restaurants: DineEquity and Cheesecake Factory find new recipes for success in the Middle East.
Presumed gains from broad investment portfolio and improved performance of education company Knowledge Universe.
Brea Property Expected to Command $120 Million
One of Orange County’s largest and best-leased offices has hit the sales market.
Ning Yen sold an industrial building in Garden Grove to Hanna Nguyen for $3.7 million.
SERVICES: Select Staffing’s 7 OC offices combine for top spot
Orange County’s largest employment agencies collectively had $815 million in local revenue last year, a slight dip that broke a three-year streak of gains.
AUTOS: About 3,000 workers at South Bay HQ to be affected
OC automakers stand to benefit from Toyota’s eventual headquarters move to Texas with a wave of worker talent expected to be released into the local market.
Includes Video of Drug Developers, Patients
Irvine-based Allergan Inc. launched a year-long public relations campaign to commemorate the 25th anniversary of the first approved uses of its wrinkle remover Botox: to treat misalignment of the eyes and uncontrolled blinking.
Says It Can Maximize Value of Questcor Drugs
Anaheim-based Questcor Pharmaceuticals Inc. will help create a “strong, nicely balanced specialty pharmaceutical platform” for Mallinckrodt PLC, according to the latter’s chief executive.
The supply of available industrial space remained tight as demand continued to grow in the beginning of the year.
Orange County began to see incremental improvements in 2013 after a few years of flat market fundamentals.
Founders Back to Majority Stake, Take on Creative-Campus Project
The purchase of a creative-office campus in its hometown has capped off a period of reinvention for Newport Beach-based Buchanan Street Partners.
But Prices Rose in Many OC Coastal Areas
The Orange County luxury market is its own unique entity.
Huntington Beach-based action sports apparel maker Quiksilver Inc. said Bernd Beetz , chair of Irvine-based knitwear maker St. John Knits Inc. and former head of beauty products maker Coty Inc., has joined its board.
Irvine-based Specific Media LLC has joined Google Inc., Yahoo! Inc., Forbes Media and Microsoft Advertising on the Interactive Advertising Bureau’s list of 29 companies who are certified under its Quality Assurance Guidelines program.
Huntington Beach-based Merchant Service Group LLC has received an “eight-figure investment” from Merchants’ Choice Payment Solutions in Woodlands, Texas.
Scribe Who Was There Compares Hostile Bid for Drug Maker to 1980s Raid on Goodyear
A celebrated company comes under attack from corporate raiders, putting thousands of jobs in jeopardy, threatening a leading corporate citizen, and triggering debate over the peril of financial markets.
Answer Expected in 2nd Half of Year
The stage is set for Broadcom Corp. to show whether it has the stuff to become the clear-cut No. 2 supplier of baseband chips to longtime rival Qualcomm Corp.
Co-founder and chief executive of MGA Entertainment made fortune producing popular Bratz line of dolls to rival Barbie. Little Tikes toy line and Lalaloopsy dolls have also done well.
Definition of low-profile, Chernick has no disclosed holdings outside of El Segundo software firm National Center for Crisis and Continuity Coordination, or NC4.
Chairman of J.F. Shea Co. saw slow growth in homebuilding industry and across 5.5 million-square-foot portfolio of office, industrial and retail properties in California and Colorado.
Majority owner of Century City investment firm Kayne Anderson Capital Advisers, which has seen assets under management grow in recent years to top $25 billion.
Gains driven by increasing value of 10 million DreamWorks Animation shares. Studio chief also took home $13.2 million payday, up from previous year’s $5.2 million.
Guerin joined ranks of L.A.’s super-wealthy last year when homebuilding arm of family’s real estate business, Shapell Industries Inc., sold to Toll Brothers Inc. for $1.6 billion.
Chief executive of Ares Management joined billionaire’s club with private equity and asset management firm’s IPO this month.
Majority owner of discount hardware retailer Harbor Freight Tools, co-founded by parents in 1968. Bought his parents out in 1999 (more on that below).
Net worth unchanged from 2013 as 5 percent rise in Occidental share price more than offset by 9 percent drop in number of unrestricted shares owned.
Mapleton Investments has money spread across real estate, art, stocks and bonds. Falcon Waterfree Technologies saw sales up especially internationally.
Partner of Warren Buffett since they met at dinner party in 1959. Helped steer Berkshire Hathaway toward See’s Candies and other big companies.
Upon their father’s death, Alghanim and brother Kutayba each inherited half of Alghanim Industries, a multibillion-dollar Kuwaiti conglomerate that does everything from selling General Motors cars to manufacture building insulation.
Wealth derived from ownership stake in entertainment studio Relativity Media. Other holdings include real estate development in Pacific Palisades and stakes in companies making everything from dog food to video games.
Head of private equity firm Colony Capital, active in range of industries; most investments saw robust gains.
Former Wall Street financier benefited from financial rebound of closely held education company Knowledge Universe and presumed gains in large investment portfolio.
Second-largest shareholder in self-storage giant Public Storage Co. behind sister Tamara Gustavson. Hughes has seen net worth balloon as father, B. Wayne Hughes, has transferred shares.
Founder of property and casualty insurer Mercury General saw net worth rise as value of shares rose 3 percent over past year. More significantly, padded by hefty dividend income.
Bulk of wealth tied up in millions of shares of San Diego telecom giant Qualcomm Inc., where he was an early board member.
President and co-founder of downtown L.A. private equity firm Oaktree Capital Group saw value of company stock stay relatively flat.
Big payday for retired spinal surgeon and inventor came in 2005 with $1.35 billion settlement from medical device giant Medtronic over device and patent licenses.
Investor and philanthropist manages family fortune through Berggruen Holdings Inc. Company has interests in diverse industries such as car rental services, for-profit education, hotels, publishing and retail.
Hankey’s eight companies, all under Hankey Group umbrella, had big year, especially subprime auto finance company Westlake Financial Services, which saw revenue climb by 20 percent thanks in part to an expansion of its business with new-car dealerships.
Sales at Panda Restaurant Group – including restaurant chains Panda Express, Panda Inn and Hibachi San – last year topped $2 billion for first time.
Net worth has been on rise thanks to shares in Disney.
Developer of Grove and Americana at Brand saw robust growth of ultra-Class A retail portfolio.
After 2011 death of John Anderson, the Business Journal is keeping his wife, Marion, on list based on previous years’ valuations and confirmation that the wealth remains in the family.
Completed acquisition of Dole Food Co. Inc., taking company private in deal valued at $1.6 billion.
Great year for private equity boosted Gores’ fortune through eponymous firm, which is moving from Westwood to Beverly Hills this month.
SEC Says He Didn’t Share ‘Critical’ Information
Former sTec Inc. Chief Executive and Chairman Manouch Moshayedi is set to go to trial this week as he faces insider trading charges levied by the Securities and Exchange Commission.
THE MONEY: Canadian native still retains billions from stock grants and options as first eBay employee.
One of 11 heirs to Hyatt hotel fortune, runs family-funded private equity and venture capital firm Pritzker Group with brother J.B. Wealth continued to grow after sale of remaining shares in industrial conglomerate Marmon to Berkshire Hathaway and continuing expansion of Pritzker Group.
Chairman-chief executive of Majestic Realty Co. benefitted from slow but steady growth in industrial real estate market. Minority owner of Los Angeles Lakers, Los Angeles Kings and Staples Center made modest gains in sports holdings.
Former Univision owner rose due to uptick in broader markets. Manages money through Century City family firm Chartwell Partners.
HEALTHCARE: Aims to play up strength of individual brands
Irvine-based St. Joseph Health and Hoag Memorial Hospital Presbyterian are mixing the old with the new when it comes to their year-old affiliation to create an integrated regional health network.
Largest stakeholder in self-storage giant Public Storage Co., with 11 percent of shares; benefited slightly as shares rose 4 percent.
Value of 5.1 million shares in DreamWorks Animation hit $127 million as stock value rose by 46 percent over course of last year.
Blue-chip stocks, in which Hilton keeps bulk of his money, performed very well last year, helping to boost his fortune.
ains driven by increasing value of Spanish-language broadcast network Univision Communications, in which Saban a major shareholder.
CLEAN TECH: Grants from state, Toyota for network of 19
A Newport Beach-based company nabbed more than half of the grant money awarded by the California Energy Commission to build hydrogen refueling stations.
Treating parking enforcement as a source of revenue punishes drivers and businesses. It’s time for reform.
Op-Ed: L.A.’s chaotic parking policies.
Personal wealth gained almost 60 percent in last two years as Air Lease Corp.’s revenue jumped.
Expansive portfolio of more than 160 apartment buildings continued to appreciate, though property acquisitions have all but stopped.
California agri-barons continue to sit atop vast farming empire, running strong pistachio and almond businesses that make up huge chunk of Roll Global fortune.
Memory-disk makers had banner year in 2013 and Tu’s Kingston Technology shared in growth.
Gores’ Beverly Hills private equity firm Platinum Equity started raising its third fund in 2012 and spent much of the last year deploying the cash.
Retired mogul once again presumed to have gained from large investment holdings.
Revenue at Changs’ Forever 21 retail chain estimated at more than $4 billion.
Market Watch Summary
After hitting record highs, stocks later fell back in the two-week period ended May 14.
Still has strong grip on MGM Resorts International shares, which have rocketed more than 80 percent in value over last year.
Here’s one perspective on Allergan as it attempts to fend off a hostile $47 billion bid by Valeant Pharmaceuticals: The drug maker could be lost to its hometown despite a laundry list of things that both have done right when it comes to fostering the company’s growth since it moved from L.A. to Irvine in the early 1970s.
News and notes from around the greater San Fernando Valley
Private aircraft charter and management firm Jet Edge International has partnered with Hollywood trade publication Variety to make its fleet available to attendees of the Cannes International Film Festival.
Share of publicly traded companies took off faster than one of his SpaceX rockets in 2013, sending net worth into stratosphere.
South Africa-born pharmaceutical billionaire has big exposure to stock market, which had solid returns over past year.
Savvy entrepreneur, philanthropist and arts patron made fortune building and selling two Fortune 500 companies.
Real Estate: RY Properties finally starts on Palmdale site featuring Starbucks.
After sitting on the land for some 25 years, a developer has begun construction on a 5-acre shopping center in Palmdale.
Sanjay Sabnani spent $5 million to add social gaming to the thousands of forums run by his tiny CrowdGather Inc. Was that a bet worth making?
Q&A: Sanjay Sabnani hopes investors like his plan to combine forums and social games.
Real Estate: Marcus & Millichap has thrived since IPO as it eyes office market.
Real Estate: Marcus & Millichap’s stock has skyrocketed since its October IPO.
L.A.’s wealthiest share in the good fortune of rebounding stock markets.
Manufacturing: Capstone raises $30 million but investors are turned off.
Manufacturing: A dilutive offering turns investors away from Capstone Turbine.
Big stakes in a single business can offer more control but also heightened risk.
Technology: Investors seem to shrug off Nasdaq threat but Ixia seeks hearing.
Technology: Ixia must restate earnings or face Nasdaq delisting.
Investments: The Valley’s penny stocks have big ambitions, but low investor interest.
Investments: Small cap companies learn to use their stock as currency in the struggle to grow.
In normal times, a double-digit annual gain for a stock index would be a banner year. But these are not normal times.
Finance: Some of largest area firms are most profitable.
Finance: Some of the most profitable local companies are also among the biggest.
In the 20 years since the Business Journal began ranking the richest Angelenos, L.A.’s wealth has migrated from oil and show business to biotech, electric cars and private equity.
Twenty years after the Business Journal’s first list, wealth from tech and private equity are on the rise while show business and real estate have faded.
Hate ruffled sheets? Burbank firm says its linen promises zzz’s.
Innovation: If the sheets don’t fit the bed, it’s time to buy Smarty-BandZz.
Lancaster mayor gives $2 million for training in values, ethics.
Law: R. Rex Parris bankrolls a law school program on professionalism.
State’s proposed labels for beverages means sticker shock for small businesses, warns Jimmy Ferguson.
‘Marketplace’ opening in Moorpark after thumbs down in T.O.
Development: Swapmeet entrepreneur finds a city to host his market.
Continued smooth sailing at ports may hinge on truck drivers getting fair share of revenue they produce.
Janice Hahn sees fair treatment of truckers as an issue for the ports.
Do you think the NBA’s punishment of Donald Sterling was fair?
After tapes of racist comments made by Los Angeles Clippers owner Donald Sterling were made public, the National Basketball Association banned him for life and fined him, and is pushing him to sell the team. So the Business Journal asks: Do you think the NBA’s punishment of Donald Sterling was fair?
L.A. is a magnet for magnates, and that is one of the city’s greatest assets, says Charles Crumpley.
EXPANSION: FirstKey opens L.A. office to target sector in California, Western states.
FirstKey Lending, a New York firm specializing in loans to owners of single-family rental homes, has opened an L.A. office with plans to build business in California and other Western states.
Local studios square off in China, on YouTube
Entertainment: Rivals Disney and DreamWorks expand overseas and online.
REAL ESTATE: Landlord says parties, late rent are grounds for eviction.
Landlord looks to break with workspace operator that has become synonymous with Silicon Beach.
ENTERTAINMENT: AXS to challenge Live Nation by moving beyond AEG sites.
AEG’s AXS looks to improve its position but market leader Ticketmaster poses a huge hurdle.
Health Care: Health Net wins with ObamaCare cost strategy.
Health Care: Based on ObamaCare’s first year, Health Net’s fortunes are looking up.
Last week’s major news from labusinessjournal.com and other sources
The National Basketball Association has named prominent African-American businessman Dick Parsons as interim chief executive of the Los Angeles Clippers.
PASADENA: Raymond letting go of formal lineup in milestone menu change.
Pasadena’s historic Raymond Restaurant has changed up its menu, the first major realignment in nearly 36 years.
BIOTECH: Shares tumble after Response Genetics’ poor earnings, revenue.
Response Genetics draws a negative reaction on Wall Street after missing earnings expectations.
DINING: Four franchises fold after Counter redesigns menus, restaurants in bid to compete in gourmet burger space.
Counter clashes with franchisees as the gourmet burger chain serves up expensive improvements.
SHIPPING: Facility clears hurdle to prepare terminal for influx of bigger vessels.
Landlord looks to break link with workspace operator that has become synonymous with Silicon Beach.
Last month’s Walk to End Genocide at Pan Pacific Park drew more than 3,000 people, the largest iteration yet of what has become the biggest annual anti-genocide demonstration in the country.
Chamber sky high on drive-in movie event at Greystone Mansion.
Beverly Hills Chamber of Commerce rolls into Greystone Mansion with a drive-in movie benefit.
Co-publishers picture thick, ad-free Wolf as outlet for creativity.
Wolf Magazine frames itself as a creative outlet for photography.
Property manager gets down to business with clean-energy fleet.
Property manager Concord Real Estate Services hopes to fuel business by touting its new fleet of electric cars.
News and notes from communities across Los Angeles County
LG Chem, a Seoul, South Korea, chemical company, has completed its $200 million acquisition of NanoH2O, an El Segundo maker of seawater desalinization membranes.
Is your company women-owned? Then the Business Journal wants to hear from you.
REAL ESTATE: Prudential snaps up three-building campus
The most prominent office complex in Huntington Beach has become the latest large property snapped up by a national real estate investor eager to invest in Orange County’s rebounding office market.
REAL ESTATE: Grand Avenue parcels surround newspaper’s office
The owners of the Orange County Register have reached a deal to sell the bulk of the land they own around their Santa Ana headquarters to William Lyon Homes.
Renewal: Anchor tenant signs for another 10 years in tallest building in the West.
The name atop the tallest skyscraper west of Chicago will remain in place for the next decade.
GOVERNMENT: Mayor pairs two permits to speed process.
City of L.A.’s small steps on permits could yield big time savings for commercial buildings and restaurants.
TECHNOLOGY: Silicon Valley dives into local investment boom.
Silicon Beach is on the rise as companies raise bigger sums and even draw dollars from Silicon Valley.
Internet network rips royal rates at telecom hub
Network operator U.S. Colo fears rent hikes at an already extremely expensive telecommunications hub will pull the plug on its business.
As with online video, China is attractive to Disney, DreamWorks and other entertainment companies based on the sheer numbers, in this case the population.