GoldieBlox ad makes Super Bowl history

Debbie Sterling's toy startup GoldieBlox becomes the first small business ever to air an ad during the Super Bowl.

NEW YORK (CNNMoney)

The startup will make Super Bowl history this Sunday by becoming the first small business to have a commercial air on TV during the most-watched event of the year.

GoldieBlox won a contest run by Intuit (INTU), where the grand prize was the 30-second ad that will debut during the third quarter of the game. Intuit will pick up the $4 million cost.

"We still can't believe that we won. We were all crying when we found out," said Debbie Sterling, founder of GoldieBlox, a line of storybooks and toys aimed at getting young girls excited about science and engineering.

GoldieBlox's ad will appear alongside some of the biggest brands in the world such as Budweiser, Cheerios, and Coca-Cola (KO, Fortune 500). Super Bowl commercials typically are dominated by big brands that can afford the hefty price tag.

Related Story: Sneak peek at the Super bowl spots

But GoldieBlox got its start just 18 months ago and has barely 15 employees. Its toys sell in Toys R Us and Target (TGT, Fortune 500).

The ad, which was produced by a top ad agency RPA, puts GoldieBlox shoulder to shoulder with the big leagues, and Sterling hopes the exposure to over 100 million viewers will enable the brand to take a "giant leap forward for our mission."

A Stanford University engineering graduate, Sterling launched GoldieBlox in 2012 after became obsessed with the idea of "disrupting the pink aisle" with a toy that could potentially inspire the next generation of female engineers.

Related Story: Super Bowl creating traffic jam for private jets

She turned to crowdfunding site Kickstarter with the goal of raising $150,000 to fire up her idea.

"We did that in just 4 days," said Sterling. In total, her Kickstarter campaign raised over $285,000. "So yes, we knew we were on to something," she said.

Intuit's contest kicked off last July and asked U.S.-based business with 50 or fewer employees to submit a compelling story about their company.

An online vote determined the top 20 submissions, and then Intuit's 8,000 employees voted to pick four finalists -- GoldieBlox, dog treats maker Barley Labs, organic egg farm Locally Laid Egg Company and natural compost producer POOP. A separate online vote in December determined the grand-prize winner.

Intuit said millions of votes were cast for the entries but declined to say how many went to GoldieBlox.

"GoldieBlox is an outstanding example of the 29 million small businesses across the United States," said Intuit's CEO Brad Smith. "It's clear voters around the world felt the same way."

GoldieBlox's Intuit win, however, isn't its first brush with fame.

Last year, the company created a parody video that featured the Beastie Boys song "Girls." The video, which featured young girls rejecting the "princess" stereotype as they built a complex maze, became a viral hit. But it also brought on a copyright infringement lawsuit by the Beastie Boys for using their song.

GoldieBlox initially countered with its own lawsuit but ultimately removed the song from the video.

Intuit also confirmed that it will hold a similar contest again next year.

First Published: January 30, 2014: 6:17 PM ET

08.36 | 0 komentar | Read More

Hackers attack Yahoo Mail accounts

NEW YORK (CNNMoney)

Yahoo (YHOO, Fortune 500) said it recently identified a coordinated effort by hackers who tried to log into many email accounts with stolen usernames and passwords. The note by Yahoo products executive Jay Rossiter did not immediately say how many accounts were affected.

The company declined to comment further but said it has teamed up with federal law enforcement to investigate the attack.

The credentials were likely taken from a third-party database, Yahoo said.

Related story: Stolen credentials blamed in Target breach

Yahoo said it reset passwords for users who were impacted. The company sent them text messages Wednesday night warning of "unusual activity on the network."

First Published: January 30, 2014: 6:04 PM ET

08.36 | 0 komentar | Read More

Chipotle shares sizzle following red-hot quarter

Chipotle says it plans to open between 180 and 195 new restaurants in 2014.

NEW YORK (CNNMoney)

The burrito chain's stock surged nearly 13% in after-hours trading Thursday following fourth-quarter results showing the company's strong growth continuing.

Chipotle (CMG) posted $844 million in sales, up 21% versus a year prior, and $80 million in earnings. The company is expanding aggressively, opening 56 new restaurants in the fourth quarter, and now has nearly 1,600 locations.

Related: Which country has the cheapest Big Mac?

Chipotle was spun off from McDonald's (MCD, Fortune 500) in 2006, and shares have been on a tear ever since, rising over 60% in the past year alone.

McDonald's meanwhile may be losing its luster. Its stock has been in the doldrums as it's struggled to match new menu offerings from competitors like Burger King (BKW) and Wendy's (WEN).

Related: Burger King tests Chicken and Waffle sandwich

There are still some Chipotle skeptics out there -- hedge fund moguls David Einhorn and Jeffrey Gundlach have made cases against the stock in the past year and a half.

First Published: January 30, 2014: 6:50 PM ET

08.36 | 0 komentar | Read More

What Obama said about women

How much gender affects pay in these five most common jobs occupied by women - or any other job for that matter - is very hard to tease out since so many factors play a role.

NEW YORK (CNNMoney)

And so it was when President Obama on Tuesday touched on issues of concern to working women, with an occasional nod to men: wage discrimination, paid leave to care for family members and low-wage jobs.

Here's what he said and a brief look behind the assertions he made:

Pay: "[Women] still make 77 cents for every dollar a man earns. That is wrong, and in 2014, it's an embarrassment. A woman deserves equal pay for equal work."

Hard to argue with that, but the 77-cents statistic does not convey the point.

All it tells us is how the median annual earnings of full-time, year-round female workers compare with that of full-time, year-round male workers.

It doesn't speak to any of the factors that determine one's pay, such as the type of job chosen, education, experience, tenure, or hours worked. Nor does it reflect the host of less tangible factors that play a role, such as job performance.

Controlling for those factors would shrink the pay gap considerably in many jobs and in some cases all but erase it.

Does that mean there's no gender discrimination in pay? No. But teasing out just how much exists is very hard. Assessments will differ depending on what methodologies are used and what specifically is being compared. The Institute for Women's Policy Research, for instance, estimates that somewhere between a quarter to a third of the 77-cents pay gap may be attributable to discrimination.

Related: Best countries for working moms (and dads)

Child care: "She deserves to have a baby without sacrificing her job. A mother deserves a day off to care for a sick child or sick parent without running into hardship ... ."

Here the president seems to have touched on a few issues: difficulties pregnant working women may face when trying to get or keep a job, along with a lack of paid maternity leave and paid sick leave.

Employers are not allowed to discriminate against pregnant women when it comes to deciding who to hire, fire or promote.

That doesn't mean they never do, though.

Quantifying how widespread the problem may be is difficult, said IWPR study director Ariane Hegewisch. But, she added, pregnancy discrimination is among the fastest growing category of complaints received by the U.S. Equal Employment Opportunity Commission.

Paid maternity leave, meanwhile, is not mandatory in the United States, which is one of only four countries worldwide that don't require it, IWPR notes.

About two-thirds of employees don't have access to paid maternity leave, 80% don't have paid paternity leave and 88% don't have any paid leave to care for any family member, young or old.

As for paid sick days, about 39% of private-sector workers don't have access, nor do 11% of government workers, according to the Bureau of Labor Statistics.

The IWPR uses a slightly different methodology than the BLS, but estimates that among women alone, about 43% don't have access to paid sick leave.

Jobs: "[W]omen hold a majority of lower-wage jobs ..."

Nursing aides, psychiatric aides and home health aides have relatively low pay, and 88% of them are women, Hegewisch said.

Among full-time workers, women make up the majority of those in the bottom 20% of the income distribution.

What's more, she said, among workers who earn the minimum wage or less per hour, women make up the majority.

First Published: January 29, 2014: 5:05 PM ET

08.37 | 0 komentar | Read More

Google to sell Motorola Mobility unit to Lenovo

China-based Lenovo is the world's largest PC maker.

NEW YORK (CNNMoney)

The search giant announced Wednesday that it will sell its Motorola Mobility smartphone unit to Chinese PC maker Lenovo for $2.9 billion, giving up on a business it purchased for $12.5 billion in May 2012.

The deal was Google's largest-ever acquisition, giving it the ability to produce hardware to go along with its Android mobile operating system. But Motorola has been a perpetual money-loser, raising the ire of shareholders and Wall Street analysts.

Google (GOOG, Fortune 500) said it will maintain ownership of the "vast majority" of the Motorola Mobility patent portfolio after the sale.

When Google bought Motorola, the company said it planned to use those patents to ward off lawsuits from Apple (AAPL, Fortune 500) and Microsoft (MSFT, Fortune 500) that threaten Android. Lenovo will be able to license those patents from Google.

In a blog post announcing the deal, Google CEO Larry Page acknowledged that it doesn't make sense for his company to continue manufacturing phones itself.

"[T]he smartphone market is super competitive, and to thrive it helps to be all-in when it comes to making mobile devices," Page wrote. "This move will enable Google to devote our energy to driving innovation across the Android ecosystem."

Google shares rose 2% in after-hours trading.

Related: Can Lenovo do it?

Lenovo chief Yang Yuanqing said the deal "will immediately make Lenovo a strong global competitor in smartphones."

In addition to being the world's largest PC maker, the company is already the No. 4 global smartphone maker after Samsung, Apple (AAPL, Fortune 500) and Huawei. In a conference call with reporters Wednesday afternoon, Lenovo executives said the company will soon be able to sell more than 100 million smartphones annually, challenging Apple and Samsung.

While its phones are already well-known in China and other international markets, Lenovo will continue to use the Motorola brand in the U.S. and Latin America.

"We are confident that we can bring together the best of both companies to deliver products customers will love and a strong, growing business," Yang said.

Lenovo announced another big transaction with an American company last week, agreeing to pay $2.3 billion for IBM's (IBM, Fortune 500) low-end x86 server business.

Page, for his part, said Google's sale "does not signal a larger shift for our other hardware efforts."

Earlier this month, Google announced that it was buying connnected home-appliance maker Nest for $3.2 billion.

"The dynamics and maturity of the wearable and home markets, for example, are very different from that of the mobile industry," Page said. "We're excited by the opportunities to build amazing new products for users within these emerging ecosystems."

First Published: January 29, 2014: 5:31 PM ET

08.37 | 0 komentar | Read More

Stolen credentials blamed in Target breach

NEW YORK (CNNMoney)

Since discovering the breach, "we have taken extra precautions such as limiting or updating access to some of our platforms while the investigation continues," Target spokeswoman Molly Snyder said.

The news adds details about the cause of the Target (TGT, Fortune 500) hack, which remains under investigation. It could be the largest breach in U.S. retail history.

The holiday shopping season breach affected up to 110 million customers, including 40 million credit and debit cards and up to 70 million customers' personal information.

The discount retailer discovered the breach in mid-December, notified customers several days later, and launched an investigation with the help of a private security firm and law enforcement.

Related: Target hack: Tips for all customers

Attorney General Eric Holder spoke about the federal investigation at a Senate hearing on Wednesday.

"The Department of Justice takes very seriously reports of any data breach, particularly those involving personally identifiable or financial information, and looks into allegations that are brought to its attention," he said. "And we are committed to working to find not only the perpetrators of these sorts of data breaches, but also any individuals and groups who exploit that data via credit card fraud."

Since Target's disclosure, high-end retailer Neiman Marcus announced over 1 million customer cards were compromised in a breach last summer. Over the weekend, crafts retailer Michaels said its systems may have been breached.

It isn't immediately clear if these possible attacks were related. Security experts have warned it is likely other companies were targeted by the hackers who hit Target.

First Published: January 29, 2014: 7:53 PM ET

08.37 | 0 komentar | Read More

5 airline fees we hate the most

Baggage fees top the list of most hated airlines fees.

NEW YORK (CNNMoney)

U.S.-based airlines were raking in baggage and reservation change fees at an annualized rate of roughly $6 billion last year, according to the Department of Transportation.

And the fees keep getting worse. United Airlines (USBOX) charges an oversized baggage fee of $200 now and increased its fee for a third checked bag to $125 from $100 in December.

A United spokesman said the hike better enables the airline to recover costs associated with transporting checked bags, especially overweight ones.

Even the cost of taking your Jack Russell Terrier is getting jacked up. Southwest Airlines (LUV, Fortune 500) just raised its pet transport fee to $95 from $75.

"Adjusting the price will allow us to remain competitive in pricing, yet still lower than our competitors," said a spokeswoman for Southwest.

Related: Most complained about credit cards

So which of these fees do we hate most? A recent poll of 6,100 fliers by Airfarewatchdog found these fees to be the most egregious.

1. Baggage fees: Spirit Airlines (SAVE) rang in the new year by hiking many of its baggage fees by up to $6 per bag. The standard fees it charges depend on when you pay. The first checked bag is $21 to $30 if paid at booking, $31 to $40 if paid while checking in online, $45 at the airport, and a whopping $100 at the gate. Overall, the carrier has 24 different baggage fees.

Many of the other major carriers, including American Airlines (AAL), Virgin America and Alaska Airlines (ALK), charge $25 for the first checked bag.

Related: Getaways that give back

There are a few holdouts that don't charge, however. Southwest allows you to check two bags for free and JetBlue (JBLU, Fortune 500) allows you one. Frequent flier participants can also escape the fee.

Another way to avoid them, is to get credit cards affiliated with the airlines that include free checked bags, advises George Hobica, founder of Airfarewatchdog.

2. Change/cancellation fees: Have a last-minute emergency and need to change your flight? It will cost you anywhere from $30 to $200.

"[Passengers] can feel gouged when they get charged. It's not pleasant," said Douglas Kidd, executive director of the National Association of Airline Passengers, an advocate for passengers' rights.

Related: 5 dream trips of a lifetime

Even more infuriating: "With flights so full, the chances are that the airline will collect the $200 fee and turn around and almost immediately sell the seat, perhaps for an even higher fare," said Hobica.

He believes the airlines are charging such high fees because they are trying to get passengers to buy more expensive refundable fares.

3. Advance seat selection: The days when an airline let you sit with your family for free are becoming increasingly rare. Allegiant Air (ALGT), the low-cost carrier, now charges up to $80 for this service, AirTran charges $6 to $20, and Spirit $1 to $50.

An Allegiant spokeswoman said the airline seeks to offer the lowest fares and one way they do that is by offering a menu of services, allowing passengers to customize their travel to their needs and budget.

"For passengers who don't have strong feelings about where they sit, they can travel for a little less," she said.

4. Phone reservation fees: If you have to book your reservation on the phone, most U.S. carriers (Southwest is an exception) charge $10 to $25.

Travelers can easily avoid these fees by booking online for free, explained Hobica.

5. Fees for last-minute frequent flier award tickets: A few airlines charge their loyal customers a fee of $75 to book flights with their frequent flier miles within 21 days of less of their departure date.

Hobica says the airlines will waive the fee for higher status frequent fliers. So those who have been dinged in the past may be motivated to build up more miles in order to avoid the fee in the future.

Kidd sees it much differently. "It's a good way to lose passenger loyalty," he said.

First Published: January 28, 2014: 5:43 PM ET

08.37 | 0 komentar | Read More

U.K. lawmakers tell Queen to cut expenses

Silly hat expenditures remain robust.

NEW YORK (CNNMoney)

U.K. lawmakers issued a report Tuesday criticizing the management of the British monarch's finances, calling for the Royal Household to cut expenses and improve its budget management.

"The Queen has not been served well by the Household and by the Treasury, which is responsible for effective scrutiny of the Household's financial planning and management," House of Commons MP Margaret Hodge said.

The rebuke comes as average Britons contend with harsh austerity measures aimed at shrinking the country's debt.

The British government announced a new round of spending cuts earlier this month, with the goal of slashing spending by about $100 billion over the next four years. Around half of the cuts will hit welfare programs, putting more strain on some of the country's most vulnerable residents.

Related: JPMorgan's Dimon gets pay hike despite legal woes

Tuesday's report noted that the Royal Household spent over $55 million in the 2012-13 budget period, exceeding its funding allocation by $3.8 million and forcing it to dip into reserves.

The lawmakers called on the palace to find cost efficiencies and do a better job of maintaining its historic properties.

"Back in March 2012, 39% of the Royal estate was assessed as below what the Household deemed to be an acceptable condition," Hodge said. "Now it is likely to be worse, with some properties in a dangerous or deteriorating condition."

First Published: January 28, 2014: 5:21 PM ET

08.37 | 0 komentar | Read More

Turkey's central bank hikes rates to combat sell-off

Turkey's central bank heads into a crisis meeting on raising rates to defend the lira, despite government claims that the economy is solid.

NEW YORK (CNNMoney)

The announcement came following an emergency meeting convened in response to the crisis. The bank increased its key overnight lending right well beyond what analysts were expecting to 12% from 7.75%.

Other emerging market currencies, including Argentina's peso and India's rupee, have also been hit by expectations that the Federal Reserve and the Bank of England will pull back on their stimulus measures, which have driven inflows to developing economies in recent years.

Related: Emerging markets rattled as anxiety rises

Over the past month, the Turkish lira has sunk to record lows against the dollar, and weakened sharply against the euro. It stabilized Tuesday on expectations that the country's central bank would act, and extended gains following the announcement.

Turkish stocks have also struggled of late as a wide-ranging probe into public sector corruption continues to spook investors.

Police have so far detained scores of high-profile suspects, including the sons of three ministers, a mayor and the chief executive of a major state bank. The investigation has undermined the government of Prime Minister Recep Tayyip Erdogan ahead of national elections in August.

First Published: January 28, 2014: 5:55 PM ET

08.37 | 0 komentar | Read More

Should I take my pension's lump sum offer?

Start researching your options at least a year before your desired retirement date to figure out what the best fit is for you.

NEW YORK (CNNMoney)

Choosing between monthly pension payments for life or one, large lump sum payment can affect your income and lifestyle for decades to come, so it's a decision that shouldn't be taken lightly.

"People need to think very carefully about whether a lump sum is their best option," said Nancy Hwa, a spokesperson for the Pension Rights Center.

Related: Couple with pension plans play too safe to win

Susan Fulton, founder of FBB Capital Partners in Bethesda, Md., recommends you start researching options at least a year before your retirement date. Here are some key factors to consider:

Your retirement savings: Beyond your pension, do you have any other retirement savings?

If not, consider this: Taking the lump sum means you will need to make sure the money lasts for decades. For most people, that means investing the money through an IRA. While your nest egg could grow larger, it also means you risk losing some or all of that cash if the market takes a dive or if you make a bad investment.

So, if you have little-to-no extra savings cushion, the security of receiving a monthly check may allow you to sleep better at night.

If you have enough savings to cover your essential retirement expenses and can afford to invest the lump sum, then your money will have the chance to grow. Since most private pension plans don't provide cost of living increases, investing the money will give you the chance to at least try to keep up with inflation.

Related: Pensions ask retirees to pay back tens of thousands

Your health: Did your parents live into their 90s? Are you nearing retirement and still feeling younger than ever? Lump sum payments are calculated based on average life expectancies. So if you choose the lump sum but live longer than those calculations figured, you could run out of funds.

If you're in poor health and worry that you won't live long enough to receive many pension checks, you will likely get more out of a lump sum.

Calculator: Will you have enough for retirement?

Monthly pension payments typically stop arriving when you die, unless you opt for a survivor option that will allow your spouse to continue receiving payments for his or her lifetime. Any leftover proceeds from a lump sum, however, can be left to your heirs.

Your pension plan's financial health: To make sure your pension plan isn't on the brink of running out of money, and your benefits aren't at risk, do some research.

Request a copy of your plan's annual report, called a form 5500. Look for the funding ratio, or the amount of money that the plan has set aside to pay its future obligations. Typically, a healthy pension fund will have a ratio of at least 80%.

Even if your plan becomes insolvent, the Pension Benefit Guaranty Corp., which insures private pension plans, will take over and pay your benefits. But there is an annual limit to what it will pay (in 2014, nearly $60,000 for single-employer plans).

If you're in a significantly underfunded plan and your promised pension is larger than that limit, a lump sum could be a safer option.

What you would do with the money: Opt for the lump sum? Don't go booking that around-the-world cruise yet. The only way to avoid a major tax bill is to roll over the lump sum payment directly into an Individual Retirement Account.

If you don't have investing experience, you may want to hire a financial adviser to help you invest those funds. Just remember, that means paying investment management fees, which can eat away at your savings.

Related: Where's the Yelp for financial advisers?

Before taking a lump sum, Fulton recommends meeting with a few financial advisers to learn their investment strategy and fee structure. Be skeptical of anyone promising soaring returns, especially since retirees should typically invest in more conservative assets.

"A great deal is at risk," Fulton said. "The most important thing is that you really, really need to take your time doing it."

First Published: January 27, 2014: 6:10 PM ET

08.37 | 0 komentar | Read More