Date: 05/14/2012
Dept: Financel Department
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WASHINGTON (AP) ? A technical problem affecting the Visa network! barred
some people around the United States from using their credit and debit cards for
about 45 minutes on Sunday, the company said.
The outage was caused by a recent update Visa has mad! e to its system, said
Visa Inc. spokeswoman Sandra Chu. She said Visa had trouble processing some
transact! ions as a result, but the! system is operating normally now.
Chu said the problem Sunday was unrelated to the security breach potentially
affecting Visa and MasterCard customers that was reported Friday by credit card
processor Global Payments Inc.
The outage occurred from around 2:40 p.m. to 3:20 p.m. EDT, a person from a
major bank said. The person spoke on condition of anonymity because bank
employees were not authorized to speak publicly. Visa had notified the banks that
are members of its network of the problem.
Consumers and merchants reported having Visa cards rejected on Sunday.
At the Shoot Smart gun range in Fort Worth, Texas, manager Jared Sloane said
credit and debit transactions stopped working early in the after! noon.
Sloane said a few customers walked out when told they could only pay with cash
or check, but otherwise the problem wasn't yet much of a disruption.
Shoot Smart said problems with transactions were persisting at about 6:40 EDT.
Chu said Visa's system was fully up and operational.
PHILADELPHIA (AP) ? A group of powerful business leaders announced Monday
they have closed a deal to purchasePhiladelphia's two largest newspapers from
hedge funds for approximately $55 million, a fraction of what investors paid for
them in 2006.
It is the fifth time in six years the newspapers are being sold.
The buyers, who include cable TV mogul H.F. "Gerry" Lenfest, powerful New
Jersey Democrat George N! orcro! ss III and formerNew Jersey Nets owner Lewis
Katz, said they plan to keep the newspapers' tradition of strong journalism alive in
the digital age.
They had an exclusive option to bid for Philadelphia Media Network, which also
operates the! Phil! ly.com website and a weekly sports publication.
The purchase price ? which includes up to $10 million from investors to fund
operations ? is less than 15 percent of the $515 million paid by a group of investors
in 2006, and far less than the $139 million creditors paid at a 2010 bankruptcy
auction.
"These newspapers have an historic tradition of outstanding journalism in our city
and we want to preserve that tradition and marry it to the exciting digital
opportunities that are revolution the news business," Katz said in a statement
released before the scheduled news conference Monday morning.
The buyers established a new company, Interstate General Media LLC, to operate
Philadelphia Media Network.
The sale comes as Philadelphia Media Network has announced plans to cut 45
positions this month, including 40 in the newsroom. Last year, the newsrooms lost
20 jobs.
Company officials have cited both finances and the consolidation of newsroom
functions in discussing the cuts. Some staff work now appears in both
newspapers, a trend that will grow as beat reporters and photographers handle
assignments for both the broadsheet Inquirer and tabloid Daily News.
According to a recent letter of intent obtained by the Daily News, the sale would
include $200,000 to fund severance pay for an additional 35 people, and $500,000
to pay for the departure of senior managers. Some key officers would remain, the
memo said. It's unclear if they include publisher Greg Osberg, who was criticized
by newsroom employees for allegedly censoring stories about th! e sale.
Philadelphia business magnate Raymond Perelman, who bid against the creditors
until the end the last time around, was denied the chance to mount a rival bid this
year against the Lenfest group, and briefly joined them. But he withdrew when he
learned he wouldn't be the majority owner.
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