Conservablogger Power Quote

"...But when a long train of abuses and usurpations, pursuing invariably the same object evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security..." The Declaration of Independence


Sunday, August 5, 2012

Carbonite Drops ads from Limbaugh (giving in to Media Matters) Pays Heavy Price

This story is food for thought to companies considering  pulling advertising form conservative talk show hosts like Rush Limbaugh.

We all know Media Mattrers is a liberal-left-wing organization that is at least partially funded by George Soros.  Media Matters is the 'wharehouse' (if you will) of the liberal media.  They come up with the acceptable story or spin, and mainstream runs with it.

In the following story, the CEO of Carbonite reports to have experienced a 15%  drop in stock value in the first day after pulling its ad from Rush Limbaugh's radio program.

Here's part of the story and a link to the full text:

When Media Matters helped organize the Stop Rush boycott pressuring corporations to pull advertisements from Rush Limbaugh’s show, the online file storage company Carbonite was one of the first big names to give in.

Now, as William Jacobson of the “Legal Insurrection” blog noted, Carbonite’s CEO David Friend conceded on a conference call that dropping Limbaugh deeply hurt the company’s earnings.

“It turned out to be a bigger hole in our revenue than we had thought when we initially did this,” Friend said on a conference call on August 1.

In fact, as Jacobson wrote, Carbonite’s 2nd Quarter 2012 results shocked analysts, causing the company’s stock price to plummet by 15% in one day.

Jacobson transcribed the relevant portions of the conference call where Friend said four factors contributed to the company’s slow growth, and the first factor was that Carbonite “stopped working with one of our top producing radio endorsers,” which was Rush Limbaugh.


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