Business Wars

At the dawn of the dotcom era, a Silicon Valley tech geek on a personal vendetta rolls out the world’s first e-commerce site. Vintage lunchboxes? Second-hand guitars? B-list celebrity autographs? It all finds a home on AuctionWeb, and before long the site’s growth is skyrocketing.

But founder Pierre Omidyar isn’t prepared for the infrastructure challenges that come with turning his pet project into a real company. Brownouts and site outages soon follow, raising the ire of customers. And without a way to close transactions online, AuctionWeb might be doomed before it takes off.

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Joining us today is Gabriel Kahn, a professor of journalism at the University of Southern California. He’s a former Los Angeles bureau chief for the Wall Street Journal and a frequent commentator on monetization and the media.

He’s also taught courses on the history of journalism. He recently wrote an open letter to the new owner of the Los Angeles Times, Patrick Soon Shiong, and now he's here to talk about Hearst vs Pulitzer!

Join us next week as we visit a new business war: Ford vs Chevrolet.

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By 1900, the days of yellow journalism were already fading, and both William Hearst and Joseph Pulitzer were searching for a new direction even as their newspapers diverged.

Hearst tries for a political career, but finds himself defeated and dragging back to a lagging paper by the end of the decade.

Pulitzer doubled down on news, and in 1909 caught the biggest scoop of his career. While the paper is going as strong as ever, Pulitzer’s health is suffering.

Both men created legacies and changed the face of American journalism forever.

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A close up look at a crisis of their own making. One that nearly cost Hearst and Pulitzer their grip on the country’s first media empires. Instead of pitting them against each other, the crisis would see the two media moguls finding rare common ground.

At the turn of the century, newspapers flew off the presses in 8 or 10 separate editions a day. Newsies grabbed them off stacks in the alleys and took to the streets, their little hands stained with ink. But when the Newsies go on strike, no papes get sold. No papes, no profit - which leaves both Hearst and Pulitzer with a BIG problem.

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What happens when there’s no news? You have to MAKE the news.

When Hearst heard from his top reporter that the Spanish-Cuban tension wasn’t looking like anything would happen, Hearst wasn’t just going to wait around for an explosion.

He already bought and assembled a collection of powder kegs. It was just a matter of lighting the fuse.

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In 1883, 15 years before the Headless Torso Murder, New York City's population was rapidly growing and the newspaper scene was pretty sleepy. The city's nearly 50 daily papers, even the small New York Times, was a pretty sedate bunch, informing citizens about zoning board decisions and weather trends. They rarely draw any blood, stir up society, get the city talking.

But that’s changing, thanks to Joseph Pulitzer.

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In 1897, America looked very different. Carriages rolled through the streets of New York. Mass media was just growing up, and Hearst was convinced that carrier pigeons - hunted to extinction by 1914 - were what would give his paper the edge during the early days of the Headless Torso case.

This case belonged to the whole city. Everyone - barkeeps in Brooklyn and bankers on the Upper East Side alike are invested in the mystery… and what happened to his head.

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This is the beginning of a mystery, a great business rivalry, and a look into American history. To tell the story of Hearst vs Pulitzer, we called our friend Lindsay Graham over at American History Tellers for help.

The Headless Torso mystery is about a jilted husband, a German midwife, a muscleman and more colorful characters. The city’s been mesmerized for months, and in Gilded Age New York, most people just couldn’t resist pressing their pennies into a newsboy’s ink-stained hand to find out the latest.

You can listen to more episodes of American History Tellers wherever you listen to Business Wars.

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Host David Brown interviews Steven Johnson, the host of the new podcast American Innovations.

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After all that IBM has been through over the decades, it would have never in a million years guessed that their undoing would be at the hands of a scrawny and unknown computer nerd named Bill Gates. Gates sees the future, but can IBM catch up? Will they still be on top 50 years from now? Only time will tell.

We hope you enjoyed this series on the first computer wars, and I want to give a special shout out to our fans, The Elfenbein family!

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