Chinese Firm Is Cleared to Buy American DNA Sequencing Company

Ramin Rahimian for The New York Times

DNA sequencing machines at Complete Genomics in California. The firm dismissed concerns about its acquisition.

The federal government has given national security clearance to the controversial purchase of an American DNA sequencing company by a Chinese firm.

The Chinese firm, BGI-Shenzhen, said in a statement this weekend that its acquisition of Complete Genomics, based in Mountain View, Calif., had been cleared by the federal Committee on Foreign Investment in the United States, which reviews the national security implications of foreign takeovers of American companies. The deal still requires antitrust clearance by the Federal Trade Commission.

Some scientists, politicians and industry executives had said the takeover represented a threat to American competitiveness in DNA sequencing, a technology that is becoming crucial for the development of drugs, diagnostics and improved crops.

The fact that the $117.6 million deal was controversial at all reflects a change in the genomics community.

A decade ago, the Human Genome Project, in which scientists from many nations helped unravel the genetic blueprint of mankind, was celebrated for its spirit of international cooperation. One of the participants in the project was BGI, which was then known as the Beijing Genomics Institute.

But with DNA sequencing now becoming a big business and linchpin of the biotechnology industry, international rivalries and nationalism are starting to move front and center in any acquisition.

Much of the alarm about the deal has been raised by Illumina, a San Diego company that is the market leader in sequencing machines. It has potentially the most to lose from the deal because BGI might buy fewer Illumina products and even become a competitor. Weeks after the BGI deal was announced, Illumina made its own belated bid for Complete Genomics, offering 15 cents a share more than BGI’s bid of $3.15. But Complete Genomics rebuffed Illumina, saying such a merger would never clear antitrust review.

Illumina also hired a Washington lobbyist, the Glover Park Group, to stir up opposition to the deal in Congress. Representative Frank R. Wolf, Republican of Virginia, was the only member of Congress known to have publicly expressed concern.

BGI and Complete Genomics point out that Illumina has long sold its sequencing machines — including a record-setting order of 128 high-end machines — to BGI without raising any security concerns. Sequencing machines have not been subject to export controls like aerospace equipment, lasers, sensors and other gear that can have clear military uses.

“Illumina has never previously considered its business with BGI as ‘sensitive’ in the least,” Ye Yin, the chief operating officer of BGI, said in a November letter to Complete Genomics that was made public in a regulatory filing. In the letter, Illumina was accused of “obvious hypocrisy.”

BGI and Complete said that Illumina was trying to derail the agreement and acquire Complete Genomics itself in order to “eliminate its closest competitor, Complete.”

BGI is already one of the most prolific DNA sequencers in the world, but it buys the sequencing machines it uses from others, mainly Illumina.

Illumina, joined by some American scientists, said it worried that if BGI gained access to Complete’s sequencing technology, the Chinese company might use low prices to undercut the American sequencing companies that now dominate the industry.

Some also said that with Complete Genomics providing an American base, BGI would have access to more DNA samples from Americans, helping it compile a huge database of genetic information that could be used to develop drugs and diagnostic tests. Some also worried about protection of the privacy of genetic information.

“What’s to stop them from mining genomic data of American samples to some unknown nefarious end?” Elaine R. Mardis, co-director of the genome sequencing center at Washington University in St. Louis, said in an e-mail.

Dr. Mardis could not specify what kind of nefarious end she imagined. But opponents of the deal cited a November article in The Atlantic saying that in the future, pathogens could be genetically engineered to attack particular individuals, including the president, based on their DNA sequences.

BGI and Complete Genomics dismissed such concerns as preposterous.

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Tribune Co. to emerge from bankruptcy Monday

The last day of 2012 is the first of a new era for Tribune Co.

After spending more than four years embroiled in a contentious Chapter 11 bankruptcy case, the reorganized Chicago-based media company will emerge Monday under new owners and a newly appointed board, freed from its massive debt and facing an uncertain future.

Senior creditors Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase & Co. are set to take control of Tribune Co.’s storied portfolio of publishing and broadcasting assets, including the Chicago Tribune, officials said.

It was an almost anticlimactic end to a long and painful chapter in Tribune Co.’s 165-year history. Late Sunday, the new Tribune Co. named its board of directors, filed notification with the Delaware bankruptcy court where the bulk of legal wrangling took place and declared its existence.

“It took a long time to get here,” said Ken Liang, a managing director at Oaktree and a new member of the board. “It was a tough restructuring. We’re pretty excited about the exit.”

The new board also will include Tribune Co. CEO Eddy Hartenstein; Ross Levinsohn, who recently left as interim chief executive of Yahoo Inc.; Craig Jacobson, a well-known entertainment lawyer; Peter Murphy, a former strategy executive at Walt Disney Co. and Ceasars Entertainment; Bruce Karsh, Oaktree president; and Peter Liguori, a former top television executive at Fox and Discovery.

Liguori is expected to be named chief executive of Tribune Co. going forward.

Hartenstein, who is publisher of the Los Angeles Times, has been CEO of Tribune Co. since May 2011. He will remain in the role until the board convenes its first meeting in the next several weeks, where it will name the company’s executive officers, according to a company statement.

“Tribune will emerge from the bankruptcy process as a multi-media company with a great mix of profitable assets, strong brands in major markets and a much-improved capital structure,” Hartenstein said in the statement.

Tribune Co. owns 23 television stations, including WGN-Ch. 9, WGN America, eight daily newspapers and other media assets, all of which the reorganization plan valued at $4.5 billion after cash distributions and new financing. Eventually, all the assets are expected to be sold, according to the new owners.

They take the reins of a company that saw its worth essentially cut in half since 2007, when Chicago billionaire Sam Zell took it private in an $8.2 billion leveraged buyout. The rapid decline was mostly due to falling newspaper valuations in the face of digital competition. The anticipated hiring of Liguori suggests that broadcasting will be the operational focus going forward, according to several media analysts.

Los Angeles-based Oaktree, the largest shareholder, with about 23 percent of the equity, appointed two of seven board members. Both Angelo Gordon and JPMorgan have roughly a 9 percent stake and appointed one seat each. The three jointly appointed two more board members, with the final seat occupied by the chief executive.

Among the outgoing board members is Zell, whose deal was seen at the time as an alternative to the squabbles within Tribune Co. that threatened to break apart the then-publicly traded company. But the Great Recession and plummeting advertising revenues across all media, especially the struggling newspaper industry, made the company’s resulting $13 billion debt load untenable.

Tribune Co. filed for Chapter 11 bankruptcy protection in December 2008. Zell blamed a “perfect storm” of industry and economic forces. But the bankruptcy case turned on charges leveled by junior creditors that saddling the company with such a debt burden left it insolvent from the outset.

Led by an aggressive distressed debt fund called Aurelius Capital Management, the junior creditors pressed litigation that stretched out the case for three and a half years in a Delaware court before U.S. Bankruptcy Judge Kevin Carey confirmed the reorganization plan in July. An emergency appeal to stay that decision was dismissed by the 3rd U.S. Circuit Court of Appeals in September. In November, the Federal Communications Commission signed off on waivers needed to transfer Tribune Co.’s broadcast properties to the new ownership, clearing the last hurdle to its emergence from Chapter 11.

“Usually, bankruptcy cases like this take much less time and cost less money,” said Douglas Baird, a bankruptcy expert and law professor at the University of Chicago.

Baird said legal fees for most large corporate bankruptcies run 3 to 4 percent of the company’s total worth. The Tribune Co. case, which will likely cost the company more than $500 million in legal and other professional fees, was more than twice that percentage, due to both the extended litigation and the company’s declining valuation.

Before cash distributions and new financing, a 2012 analysis by financial adviser Lazard valued the broadcasting assets, including the TV stations, WGN-AM 720, CLTV and national cable channel WGN America, at $2.85 billion. Other strategic assets, such as online job site CareerBuilder and cable channel Food Network, are worth $2.26 billion.

Tribune Co.’s newspaper holdings, including the Tribune, Los Angeles Times and six other daily publications, have withered to $623 million in total value, according to Lazard. In 2006, entertainment mogul David Geffen made a $2 billion cash offer for the Los Angeles Times.

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Congressional leaders scramble to find 'fiscal cliff' compromise

WASHINGTON — The momentary optimism that Washington could resolve the stalemate over New Year's Day tax hikes turned quickly Saturday to the backroom number crunching needed to broker what remained a difficult deal.

Top congressional leaders and their aides holed up inside the Capitol, swapping potential scenarios that might yield enough votes to pass legislation to prevent a tax increase on all but the wealthiest Americans.

The work being done off the Senate floor, in the offices of Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) involves such tricky math that even if the political will exists to craft a compromise, partisanship may still prevent one. How to deal with income and estate taxes, as well as extended long-term unemployment benefits, remain among the stickiest issues.

"We've been in discussions all day, and they continue. And we'll let you know as soon as we have some news to make," McConnell said Saturday night as he left the Capitol. "We've been trading paper all day and talks continue into the evening."

House Speaker John A. Boehner (R-Ohio) stopped by the negotiations in the morning as a light snow dusted the city, but by midday tourists milling about the Capitol were snapping photos of the empty corridor outside his office. The Democratic leaders, Reid and House Minority Leader Nancy Pelosi (D-San Francisco), did not come to the Capitol but remained involved in the talks.

President Obama, who received updates at the White House, used his weekly address to put pressure on congressional leaders. "We just can't afford a politically self-inflicted wound to our economy," he said. "The economy is growing, but keeping it that way means that the folks you sent to Washington have to do their jobs."

Congress will convene for a rare Sunday afternoon session, with the Senate opening at 1 p.m. and the House at 2 p.m. Votes could come as soon as Sunday but most likely would be pushed to Monday as talks continue. Both parties will meet behind closed doors Sunday afternoon to consider their options.

If no agreement is reached, Obama reminded Republicans, he'll call for a vote on a proposal that would block the tax hike on income of less than $250,000 and would extend the unemployment insurance that expired Saturday for 2 million out-of-work people.

Obama's threat capitalizes on a key advantage in the tax-and-spend battle: Without a compromise, taxes will go up on everyone Tuesday, when the George W. Bush-era tax cuts expire. Republicans who oppose his bare-bones bill would be in the awkward position of protecting the wealthiest at the expense of the middle class.

"I believe such a proposal could pass both houses with bipartisan majorities — as long as these leaders allow it to come to a vote," Obama said. "If they still want to vote no, and let this tax hike hit the middle class, that's their prerogative — but they should let everyone vote. That's the way this is supposed to work."

Republicans face the prospect of voting for a tax increase for the first time in two decades, a potential milestone that has deeply divided the party. Still, they suggested Saturday that they could stomach raising income tax rates if the income threshold was higher than Obama has proposed — $500,000 might be acceptable, according to a source who asked to remain anonymous to discuss internal negotiations.

The GOP also wants to preserve the current estate tax rate, which is 35% on estates valued at more than $5 million. Most Democrats want the estate taxes set at 45% on those above $3.5 million; if no action is taken, the rate will revert to 55% on estates valued at more than $1 million.

The combination of income and estate tax rates may lead to a deal that could win Republican support, but it could also prove to be a deal killer for Democrats.

With Republicans divided, particularly in the House, Boehner is expected to bring at most barely half of his majority to any deal. Pelosi's support will be vital to pass the measure; she may have to muster about 100 votes.

A White House official stressed that whatever deal the Senate leaders broker will have to win approval from the House Democratic leader, who has shown her ability to deliver — or withhold — Democratic votes.

The deal may also draw support if it contains other must-pass year-end provisions, including a tweak to prevent middle-class households from being hit with the alternative minimum tax and an adjustment to ensure doctors treating Medicare patients do not take a pay cut.

The scene playing out on Saturday was a repeat of the cycle of brinkmanship and crisis that has characterized divided Washington for the last two years.

The optimism expressed by political leaders after Friday's White House meeting of Obama and congressional leaders appeared to be less about a major breakthrough or newfound comity than the hard reality that time was running short.

Congress has proved time and again that it works best — and perhaps only — under deadline pressure. With tax rates set to expire Dec. 31, just hours remained to approve a deal.

Despite the tight timeline, many senators left town, even if just for the day. Sen. John McCain (R-Ariz.) posted a photo on his Twitter account of himself with the Oreo mascot at a college football bowl game in San Francisco.

Others stayed behind. Sen. Scott Brown (R-Mass.) tweeted that he was touring the Smithsonian National Air and Space Museum with Sen. John Thune (R-S.D.). "Back at it tomorrow," he added.

Yet even with political momentum, the deep divisions within parties were still evident, particularly as Republicans confronted a debate over their party's bedrock principles.

Influential anti-tax activist Grover Norquist encouraged Republicans to move on to the next battles, as Congress will be asked within months to raise the nation's debt limit. Republicans see that as the next point of leverage in their fights with Obama to reduce federal spending, including on Social Security and Medicare.

Any deal being crafted this weekend is not expected to resolve those issues or alter the automatic federal spending cuts coming on Jan. 2, all but ensuring that 2013 will see a return of divisive tax and spending arguments.

lisa.mascaro@latimes.com

kathleen.hennessey@latimes.com

michael.memoli@latimes.com

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Top Comments: The Problems with Facebook, Windows and Apple

The Problem with Windows 8

In the op-ed “The Problem with Windows 8″ Mashable editor Pete Pachal elaborated on the problems he has with Windows 8. Reader Xuanlong pointed out that Windows 8 had a tough act to follow in Windows 7, and that Windows 8 represents a necessary risk for Microsoft.

Click here to view this gallery.

[More from Mashable: Apple Spares Samsung Galaxy S III Mini From Patent Infringement Case]

As the holiday season and the year itself drew to a close this week, Mashable readers were reflective about the innovations and complications we’ve seen in the tech world in 2012. The top comments this week showcase the excitement and frustration that surround top products and services like Microsoft, Apple and Facebook.

The most commented upon story this week was was the op-ed “The Problem with Windows 8,” in which Mashable editor Pete Pachal elaborated on the problems he has with the new OS. Our readers largely agreed with Pachal’s assessment of Windows 8′s shortcomings, though several readers provided well-reasoned rebuttals of some of his points. The second-hottest story was about the rumored “smartphone watch” that Apple may be developing. Our community was split over whether or not this watch was something they wanted, or that anyone needed.

[More from Mashable: 3 Apple Computer Designs That You’ve Never Seen]

Readers also flocked to stories this week that looked at the intersection of human interaction and technology. Mark Zuckerberg’s sister Randi was outraged when a picture she posted on Facebook was reposted to Twitter, inciting a global online conversation about Facebook‘s privacy settings. Our commenters sounded off on everything from Randi Zuckerberg‘s reaction to Facebook’s settings themselves.

What was the topic on Mashable that you were most excited about this week? Don’t forget to let your voice be heard in the comment sections and next week you could be featured in the top comments.

It’s been a wonderful year for the Mashable community, and we want to thank all of our readers for making it fantastic. See you in 2013!

Image courtesy of Flickr, Nandor Fejer

This story originally published on Mashable here.

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Praying Hitler in ex-Warsaw ghetto sparks emotion

WARSAW, Poland (AP) — A statue of Adolf Hitler praying on his knees is on display in the former Warsaw Ghetto, the place where so many Jews were killed or sent to their deaths by Hitler’s regime, and it is provoking mixed reactions.

The work, “HIM” by Italian artist Maurizio Cattelan, has drawn many visitors since it was installed last month. It is visible only from a distance, and the artist doesn’t make explicit what Hitler is praying for, but the broader point, organizers say, is to make people reflect on the nature of evil.

In any case, some are angered by the statue’s presence in such a sensitive site.

One Jewish advocacy group, the Simon Wiesenthal Center, this week called the statue’s placement “a senseless provocation which insults the memory of the Nazis’ Jewish victims.”

“As far as the Jews were concerned, Hitler’s only ‘prayer’ was that they be wiped off the face of the earth,” the group’s Israel director, Efraim Zuroff, said in a statement.

However, many others are praising the artwork, saying it has a strong emotional impact. And organizers defend putting it on display in the former ghetto.

Fabio Cavallucci, director of the Center for Contemporary Art, which oversaw the installation, said, “There is no intention from the side of the artist or the center to insult Jewish memory.”

“It’s an artwork that tries to speak about the situation of hidden evil everywhere,” he said.

The Warsaw ghetto was an area of the city which the Nazis sealed off after they invaded Poland. They forced Jews to live in cramped, inhuman conditions there as they awaited deportation to death camps. Many died from hunger or disease or were shot by the Germans before they could be transported to the camps.

The Hitler installation is just one object in a retrospective of Cattelan’s work titled “Amen,” a show that explores life, death, good and evil. The other works are on display at the center itself, which is housed in the Ujazdowski Castle.

The Hitler representation is visible from a hole in a wooden gate across town on Prozna Street. Viewers only see the back of the small figure praying in a courtyard. Because of its small size, it appears to be a harmless schoolboy.

“Every criminal was once a tender, innocent and defenseless child,” the center said in a commentary on the work.

Poland’s chief rabbi, Michael Schudrich, said he was consulted on the installation’s placement ahead of time and did not oppose it because he saw value in the artist’s attempt to try to raise moral questions by provoking viewers.

He said he was reassured by curators who told him there was no intention of rehabilitating Hitler but rather of showing that evil can present itself in the guise of a “sweet praying child.”

“I felt there could be educational value to it,” said Schudrich, who also wrote an introduction to the exhibition’s catalogue in which he says art can “force us to face the evil of the world.”

On Friday, a stream of people walked by to view the work, and many praised it.

“It had a big emotional impact on me. It’s provocative, but it’s not offensive,” said Zofia Jablonska, a 30-year-old lawyer. “Having him pray in the place where he would kill people — this was the best place to put it.”

Cattelan caused controversy in Warsaw in 2000 when another gallery showed his work “La Nona Ora” — or “The Ninth Hour” — which depicts the late Pope John Paul II being crushed by a meteorite. That offended many in Poland, which is both deeply Catholic and was John Paul’s homeland.

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Elwood V. Jensen, Pioneer in Breast Cancer Treatment, Dies at 92

Tony Jones/Cincinnati Enquirer, via Associated Press

Elwood V. Jensen in 2004.

Elwood V. Jensen, a medical researcher whose studies of steroid hormones led to new treatments for breast cancer that have been credited with saving or extending hundreds of thousands of lives, died on Dec. 16 in Cincinnati. He was 92.

The cause was complications of pneumonia, his son, Thomas Jensen, said.

In 2004 Dr. Jensen received the Albert Lasker Basic Medical Research Award, one of the most respected science prizes in the world.

When Dr. Jensen started his research at the University of Chicago in the 1950s, steroid hormones, which alter the functioning of cells, were thought to interact with cells through a series of chemical reactions involving enzymes.

However, Dr. Jensen used radioactive tracers to show that steroid hormones actually affect cells by binding to a specific receptor protein inside them. He first focused on the steroid hormone estrogen.

By 1968, Dr. Jensen had developed a test for the presence of estrogen receptors in breast cancer cells. He later concluded that such receptors were present in about a third of those cells.

Breast cancers that are estrogen positive, meaning they have receptors for the hormone, can be treated with medications like Tamoxifen or with other methods of inhibiting estrogen in a patient’s system, like removal of the ovaries. Women with receptor-rich breast cancers often go into remission when estrogen is blocked or removed.

By the mid-1980s, a test developed by Dr. Jensen and a colleague at the University of Chicago, Dr. Geoffrey Greene, could be used to determine the extent of estrogen receptors in breast and other cancers. That test became a standard part of care for breast cancer patients.

Scientists like Dr. Pierre Chambon and Dr. Ronald M. Evans, who shared the 2004 Lasker prize with Dr. Jensen, went on to show that many types of receptors exist. The receptors are crucial components of the cell’s control system and transmit signals in an array of vital functions, from the development of organs in the womb to the control of fat cells and the regulation of cholesterol.

Dr. Jensen’s work also led to the development of drugs that can enhance or inhibit the effects of hormones. Such drugs are used to treat prostate and other cancers.

Elwood Vernon Jensen was born in Fargo, N.D., on Jan. 13, 1920, to Eli and Vera Morris Jensen. He majored in chemistry at what was then Wittenberg College in Springfield, Ohio, and had begun graduate training in organic chemistry at the University of Chicago when World War II began.

Dr. Jensen wanted to join the Army Air Forces, but his poor vision kept him from becoming a pilot. During the war he synthesized poison gases at the University of Chicago, exposure to which twice put him in the hospital. His work on toxic chemicals, he said, inspired him to pursue biology and medicine.

Dr. Jensen studied steroid hormone chemistry at the Swiss Federal Institute of Technology on a Guggenheim Fellowship after the war. While there, he climbed the Matterhorn, one of the highest peaks in the Alps, even though he had no mountaineering experience. He often equated his successful research to the novel approach taken by Edward Whymper, the first mountaineer to reach the Matterhorn’s summit. Mr. Whymper went against conventional wisdom and scaled the mountain’s Swiss face, after twice failing to reach the summit on the Italian side.

Dr. Jensen joined the University of Chicago as an assistant professor of surgery in 1947, working closely with the Nobel laureate Charles Huggins. He became an original member of the research team at the Ben May Laboratory for Cancer Research (now the Ben May Department for Cancer Research) in 1951, and became the director after Dr. Huggins stepped down.

He came to work at the University of Cincinnati in 2002, and continued to do research there until last year.

His first wife, the former Mary Collette, died in 1982. In addition to his son, Dr. Jensen is survived by his second wife, the former Hiltrud Herborg; a daughter, Karen C. Jensen; a sister, Margaret Brennan; two grandchildren; and three great-grandchildren.

Dr. Jensen’s wife was found to have breast cancer in 2005. She had the tumor removed, he said in an interview, but tested positive for the estrogen receptor and was successfully treated with a medication that prevents estrogen synthesis.

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Airlines' plans for 2013 up in the air

Airfares will be on the rise in 2013, and those niggling airline fees will metamorphose into optional bundles of services.

Meanwhile, onboard amenities, such as Internet access, entertainment options and refreshed interiors, will abound among U.S. carriers, but tight seating in coach probably won't improve.

And 2013 might be the year you'll finally be able to keep your smartphone, iPad or Kindle turned on during takeoffs and landings.

Those are some of the predictions airline industry experts foresee in the new year. Here's the lowdown on fares, fees and flight experience for 2013.

Higher fares forecast

Airlines pushed through six fare increases in 2012. Expect a similar number in the new year, said Rick Seaney, co-founder of FareCompare.com.

"I wouldn't be surprised to see airfares rise like they did this year, between 3 and 6 percent domestically," Seaney said. That's because airlines will succeed in properly balancing supply and demand by trimming the number of seats they offer to match "decent, but bordering on tepid, demand."

Fares are typically driven by four main factors: competition, most of all, then supply, demand and oil prices. "If you look at those drivers, they are, for the most part, on the airlines' side, which gives them pricing power," Seaney said.

That doesn't mean there won't be good airfare deals on some flights on some routes. And consumers will still see lower prices during off-peak days, such as Tuesday, Wednesday and Saturday departures and off-peak seasons, such as late January and early February. Like this year, summertime fares probably will stay relatively high, he said.

Airline mergers can also affect fares, and a huge one could take place early in 2013. American Airlines and US Airways are in talks about combining.

The general consensus among consumer advocates is that airline mergers aren't good for passengers.

"Any time you have two big airlines merging, that means consumers have less choice and competition is reduced, which only translates to higher prices," said Charlie Leocha, director of the Consumer Travel Alliance.

However, a bit of new evidence bucks that conventional wisdom. Despite four mega-mergers in the U.S. airline industry during the past seven years, fares have not increased significantly, just 1.8 percent per year, according to a December report from professional services firm PwC. In fact, average domestic fares decreased 1 percent from 2004 to 2011 when inflation is factored in, the report found.

Fliers know full well, however, that the fare isn't all that counts nowadays. There are those fees.

Fees get a makeover

The most noticeable trend in recent years with airline fees is that there are more of them: fees for checked bags, aisle seats, onboard meals, among many others. 

"What we hear is that people pay their fare and get to the airport and feel they're constantly being nickeled-and-dimed to death for things that used to be included," said Kate Hanni, founder of FlyersRights.org. 

The top five U.S. carriers alone generated more than $12 billion in fees in 2011, with even more expected through 2012, according to the PwC report.

What consumers call fees, airlines call "unbundling" — making a la carte choices from services that used to be included in the fare.

A likely trend for 2013 might be called "rebundling," airlines packaging a few now-optional services and charging for a tier of service.

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Chicago marks 500 homicides

Chicago police investigate the scene of a fatal shooting in the 1000 block of North Lavergne on Chicago's West Side. (Chris Sweda/ Chicago Tribune)

On the surface, Nathaniel Jackson fit the profile of the vast majority of Chicago's homicide victims in 2012 — he had a lengthy arrest record and alleged gang ties.

But when Jackson was shot and killed Thursday night, just months after getting out of prison, he also earned the unfortunate distinction of being the 500th homicide victim in Chicago this year, a grim milestone the city reached for the first time in four years.

While Chicago had almost twice as many slayings 20 years ago as it did this year, the number 500 is a largely symbolic threshold, a reminder of the year's escalated violence and a numerical bar the city had not reached since 513 were killed in 2008.

By mid-November the city already had tallied the most homicides in four years. As of Friday, Chicago had an estimated 17 percent increase in homicides over 2011, and an 11 percent increase in shootings, according to police.

The city's rising homicide tally has been a thorny issue for Mayor Rahm Emanuel and police Superintendent Garry McCarthy for much of the year.

"It was a milestone on those days when we had zero murders and zero shootings. Those are milestones. This is a negative one, something that we never wanted," McCarthy told the Tribune Thursday afternoon, hours before Jackson, 40, was killed. "But in perspective, there's no such thing as an acceptable murder number. Even if we cut it down to 300 next year, it's still … unacceptable."

The department went back and forth Friday over whether Jackson was the 500th homicide victim so far this year, at first confirming it and then denying it, saying a homicide last week had been reclassified as a death investigation, therefore making Jackson the 499th homicide. But by late afternoon, the department once again confirmed there had been 500 homicides.

"The city has seen its 500th homicide for 2012, a tragic number that is reflective of the gang violence and proliferation of illegal guns that have plagued some of our neighborhoods," McCarthy said in a statement. "Every homicide in Chicago is unacceptable to me and the hardworking men and women of the Chicago Police Department, who, this year, achieved a record drop in overall crime throughout our city."

Chicago's homicide rate also remains a major issue for Emanuel heading into the new year. Beyond the very real human cost, there's a perception problem for the city.

The homicide rate in Chicago far exceeds the rates in New York City and Los Angeles. While the homicide rate in LA has remained relatively flat and New York's has gone down — homicides there have fallen by more than 20 percent this year — Emanuel, known for carefully trying to craft the narrative of his tenure as mayor, has seen Chicago's violence attract national attention.

The mayor was on vacation Friday with his family but issued a statement to the Tribune:

"Chicago has reached an unfortunate and tragic milestone, which not only marks a needless loss of life but serves as a reminder of the damage that illegal guns and conflicts between gangs cause in our neighborhoods," Emanuel said, adding that his efforts to lengthen the public school day and provide before- and after-school programs for youths were part of the eventual solution.

Emanuel last week also noted that overall crime in Chicago was down about 8.5 percent for the year.

This previous winter was particularly violent. In the first three months of 2012, when the city experienced unseasonable warmth, homicides ran about 60 percent ahead of the 2011 rate. As the year went on, the increase in killings leveled out but still remained higher than in previous years.

In his statement Friday, McCarthy lauded the overall drop in crime in the city and said department efforts resulted in less violence in the latter part of 2012.

"CPD has put the right people in the right places to accomplish our long-term goal of reducing crime and ensuring that our streets and our neighborhoods belong to the residents of this city," McCarthy said in his statement. "Since the gang violence reduction strategy was adopted, we have seen drastic reductions in shootings and homicides that spiked early in the year."

Some within the department feel the disbanding of two specialized units that swooped into "hot spots" to reduce violent crime had a negative impact on this year's rate. After McCarthy was installed last year as the city's top cop, he eliminated those strike forces to move those officers to beat patrols, in the hope they would have more meaningful and positive interactions with the community. The department now uses cops who work all over the city to fulfill the same function as the strike forces, but these "area teams" comprise fewer officers.

McCarthy has blamed the proliferation of guns on Chicago's streets and the splintering of large street gangs into small factions as reasons for the homicide spike.

In October, the Tribune reported that 1 in 4 homicide victims this year were affiliated with the Gangster Disciples, the city's largest street gang, and one also riddled with internal conflict.

Jackson, who authorities described as being affiliated with the Four Corner Hustlers street gang, falls into a category shared by more than 80 percent of Chicago's 2012 homicide victims: those with criminal histories.

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Android-powered Ouya console now shipping to 1,200 developers [video]

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Fans to introduce Beyonce at Super Bowl halftime

NEW YORK (AP) — All the single ladies — and fellas — will have a chance to join Beyonce on the field at the Super Bowl.

Pepsi announced Friday that fans will introduce the Grammy-winning diva when she takes the stage Feb. 3 at New Orleans’ Mercedes-Benz Superdome. A contest that kicks off Saturday will allow fans to submit photos of themselves in various poses, including head bopping, feet tapping and hip shaking. Those pictures will be used in a TV ad to air ahead of Beyonce’s halftime performance, and 50 of those who submit photos — along with a friend — will be selected to introduce the singer.

Photo contest details are at www.pepsi.com/halftime . The contest ends Jan. 19, but Jan. 11 is the cutoff date for those interested in introducing Beyonce.

Entertainment News Headlines – Yahoo! News

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