Additionally, it said it is partnering with four software providers to gain access to 50,000 small- to medium-sized merchants.

Meanwhile, tomorrow will be exactly a year since Google launched its mobile wallet.

So, you ask, which large technology company is winning the race to gain the hearts and wallets of consumers and retailers?

Pretty clearly, it’s neither.

Google may have gotten off the blocks first, but ever since, it has been plagued by execution issues and management departures. In contrast, PayPal has a lot of institutional advantages, but it still has a long way to go before it is synonymous with Visa or MasterCard.

Here’s just a snapshot of the two companies’ advantages and disadvantages:

Google:

Pros: It has relationships with 25 national retailers, totaling 140,000 locations.

Cons: It bet too early on using near field communication technology. Sprint, the third-largest U.S. wireless carrier, is the only provider so far that is backing it and it’s deployed on only six Android devices.

PayPal:

Pros: There are 110 million people using PayPal worldwide, who are on track to spend a record $7 billion in mobile payments this year using PayPal on the phone.

Cons: The company is expecting to deploy with 20 retailers by year’s end, but based on the 16 retailers announced yesterday, I calculated that it has access to about 16,000 U.S. locations (far fewer than Google Wallet). That does not include the thousands of locations that those 50,000 small- to medium-sized retailers would contribute if they signed up for it.

Clearly, it is still early days.

And when you look at the broader market opportunity, the race is not just between Google and PayPal. All of the incumbents, including American Express, MasterCard and Visa, have announced digital wallet strategies. And then there are the start-ups, such as Square, which is seeking a $4 billion valuation in its next funding round.

There are two points to be made on the debate between PayPal vs. Google Wallet that can’t be stressed enough: PayPal has the user base, and it has the technology with the lowest barriers to entry.

In theory, if a consumer has signed up for the service from their PayPal account, they will be able to conduct a transaction using their mobile phone number and PIN – without changing carriers or phones. Likewise, merchants won’t have to upgrade their point-of-sale hardware.

In an interview, PayPal President David Marcus acknowledged there’s a chicken and egg problem: Without a lot of locations, there won’t be a lot of consumers using it. But this year is about learning and testing, he said, and next year, “it will be about iterating and full-on execution.”

If you asked the folks at Google, I’m sure they would agree. A Google spokesperson declined to comment for this story, but already, there are signs that Google has learned a lot and has started to pivot.

Rick Oglesby, a senior analyst with Aite Group, believes that Google is distancing itself from NFC and from being the merchant of record.

“I think they will follow the path of least resistance, because for them, it’s not about payments — it’s about advertising,” he said. “It’s about pay-for-performance marketing. Just like how they get paid for a click-through on the Web, they want to get paid when you walk through the door — but no one is monitoring that.”

Last month, Google purchased TxVia, a little-known payments technology company, another sign that it’s changing directions.

Tony Felice, a senior strategist for Red Door Interactive who has worked with TxVia in the past, said TxVia and Google Wallet together can be very powerful. He said TxVia has all the banking relationships, which will help enable payments, gift cards and other services, and also has the ability to produce analytics about what consumers are doing and spending money on.

“Together, they will be able to get a 360-degree picture from the moment of truth to purchase,” he said. “In order to do that, you have to pull in disparate sources and synthesize it in a single place. The transactional data from TxVia is just one piece of a puzzle.”

Oglesby said despite Google’s hiccups, it’s not yet out of the race.

“It’s been a slow-growing situation, and there’s been big turnover on the executive team, but they are reassessing the situation and have made an acquisition,” he said. “I wouldn’t say they’ve screwed up because no one has run way ahead of them. They were leading the market, and tried an approach, and now there’s other approaches for them to try.”

On Thursday Dish sued the four major broadcast networks in federal court asking for a “declaratory judgment” that a controversial ad-skipping feature on its new digital video recorder doesn’t infringe copyright.

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Keep in touch via Facebook, this is critical to your future success. And we’re public now, so can you click on an ad or two when you’re there?

– Facebook COO Sheryl Sandberg, speaking at Harvard Business School’s “Class Day” event Wednesday

The bad news, if you’re an Apple fan: Just like Apple’s other recent Siri ads, these don’t make Siri seem very cool.

In the first one, there’s at least the suggestion that Siri will help Malkovich find a restaurant where he can get some sausage. So that’s something, at least.

But the second one, where Malkovich is sitting around by himself, just killing time with his iPhone, without any discernible purpose?

That’s pretty realistic, actually. But it’s not fun to watch:

But, like I said, Malkovich really is cool. There are a gazillion furniture-chewing scenes I could pick to illustrate this, but for some reason I’ve always been partial to his preposterous Russian poker heavy, from “Rounders”:

As long as they keep paying for TV.

But even if consumers go for that deal, the TV guys need to make sure that advertisers buy in, too.

And that won’t happen until the TV guys can get some basic stuff right. Like counting eyeballs, no matter where they watch a show.

That could still take a while. Witness Comcast’s announcement yesterday, made at the cable industry’s annual convention in Boston, that it has been working with Nielsen on a plan to count viewers when they watched video on an iPad*, using Comcast’s Xfinity app.

For various technical reasons, this is much harder than you’d think, and the two companies have already been beavering away at this for 18 months. Now they’re launching a trial, and Comcast executive Matt Strauss is optimistic that they can work the kinks out by 2013, and advertisers could have true “multiplatform measurement.”

But that only works if all of the big pay-TV providers sign on to the new technology. And the media-measurement business is full of different tests and initiatives, all shooting off in different directions.

Last week, for instance, Spanish-language powerhouse Univision announced a “video neutral” deal with media-buying agency Starcom, which is supposed to mean Univision gets credit for its stuff no matter where anyone watches it. But the announcement describing the deal doesn’t explain how Univision or Starcom will track those eyeballs.

Meanwhile, Nielsen’s rival eyeball-counter comScore recently announced that it had its own technology in place to measure mobile devices like phones and tablets. And earlier this year it announced its own “multiscreen research initiative,” where it paired up with AT&T.

But comScore isn’t tracking any traffic on connected devices, like Google TVs, Apple TVs or Microsoft Xboxes. So if any of that really is taking off, that’s yet another headache.

Shouldn’t this stuff be easier? After all, we’ve figured out how to get the video all of these places — why can’t we count it, too?

On the other hand, recall that the iPhone is still a mere five years old, and the iPad is only two. That’s a blink of an eye for the measurement guys, who move deliberately because there’s billions of ad dollars at stake, no matter what they do. But they may still have to speed things up.

*Or, theoretically, on another tablet.

(Image courtesy of Shutterstock/Liewluck)

In a letter to Google chairman Eric Schmidt, European competition commissioner Joaquín Almunia outlined four specific antitrust concerns identified during the EC investigation.

The first: Google may be unfairly exploiting its market position by giving preferential treatment to its own services in its search results. The second: The company may have copied material from rivals’ Web sites. The third and fourth relate to search advertising and allegations that Google requires sites “to obtain all or most of their requirements of search advertisements from Google, thus shutting out competing providers of search advertising intermediation services.”

These are just preliminary conclusions, but because Google has been pushing for a settlement, Almunia is offering the company a chance to resolve them before the EC pushes ahead with what would inevitably be a protracted and unpleasant probe.

“I offer Google the possibility to come up in a matter of weeks with remedies,” Almunia said. “If Google comes up with an outline of remedies which are capable of addressing our concerns, I will instruct my staff to initiate the discussions in order to finalize a remedies package.”

Reached for comment, a Google spokesperson said the company has “only just started to look through the commission’s arguments.”

“We disagree with the conclusions, but we’re happy to discuss any concerns they might have,” the spokesperson said. “Competition on the Web has increased dramatically in the last two years since the commission started looking at this, and the competitive pressures Google faces are tremendous. Innovation online has never been greater.”

As The Wall Street Journal points out, this isn’t the first time the carmaker has taken a pass on the game — it also bowed out in 2009.

But the news adds some context to the earlier Facebook news. GM is overhauling all of its ad spending plans, so if you’re a Facebook bull you might find the carmaker’s high-profile sub easier to stomach.

It’s here.

Facebook, the 900-million-strong social network that knows more about us than even our closest friends, will become a publicly traded company within the next hour.

Private equity dealmakers will celebrate alongside cadres of newly minted millionaire engineers in Menlo Park, Calif., while retail investors the world around will clamor amongst themselves, tooth and claw, for the chance to share in a mere fraction of the riches.

And yet, after a year of watching tech IPOs — Zynga, Groupon, LinkedIn, Yelp — let’s all admit that it kind of borders on anticlimactic.

We know we’ll most likely see a nice pop in the share price after Mark Zuckerberg rings in the Nasdaq bell remotely from Facebook’s spanking-new HQ in Silicon Valley.

From there, like a floating jump ball up for grabs, the social networking giant’s closing stock price is anyone’s guess — and by the looks of my Twitter feed, everyone’s guess. There’s already a site dedicated to tracking what price Facebook’s stock will settle at when the markets close, a page peppered with numbers posited by the digital elite.

Today is about the money. And yet it is also more than just sitting and watching the ticker tape roll by. For the first time, Zuckerberg’s vision of making the world a more open place will finally apply to his own company.

We got our first taste of it when the company filed its S-1. It’s where we saw that more than half of Facebook’s 900 million monthly visitors are visiting the site via mobile devices, a channel in which the company has yet to figure out a coherent or viable monetization strategy.

We saw that Zuckerberg retains a tight grip on the company’s future — tighter than most CEOs, akin to the likes of Google’s co-founders — holding voting rights on 57.1 percent of Facebook’s mighty class-B shares. He is so tied to his company that he is cited as a risk factor in Facebook’s S-1, of course.

And now we’re witnessing the first defectors from Facebook’s nacent advertising strategy, as with General Motors pulling its $10 million dollars in advertising on Facebook earlier this week, citing it as an ineffective use of the company’s massive marketing budget.

What we’ll soon see is Facebook’s less-pretty public profile, so to speak, with Zuckerberg holding court over earnings calls every quarter, taking heat from investors who expect returns. We’ll be given insight into how the company plans to monetize its different products, and how they actually fare.

Just as Facebook knows so very much about each of us, we, too, will begin to learn a lot more about Facebook.

And yet, through all of this, no matter what grim forecast Wall Street projects, no matter what executive decisions or company road maps the media decries, Zuckerberg’s message is clear — so much so that he made it the poster for the pre-IPO all-night hackathon:

“Stay focused and keep hacking.”

Good luck with that.

(Images: (top) Morin Uwole/Facebook; (bottom) Victor Luu/Facebook)

Yahoo is in the final stages of selling a large chunk of its stake in the Alibaba Group back to the company — in a complex deal that is set to include a multibillion-dollar share buyback to investors of the Silicon Valley Internet giant and an eventual IPO of the Chinese company — according to multiple sources close to the situation.

The deal has yet to be officially approved by the boards of both companies, but sources said it is likely to be, and could be announced as early as Monday.

This all could change, of course, since negotiations between Alibaba and Yahoo have taken place in a variety of ways in recent years, without success and with much acrimony. Talks over a tax-free deal — also involving Yahoo’s Japanese partner, SoftBank — collapsed in February, for example.

But the 324th time is apparently the charm — so here are the details of what looks to be a nearly complete agreement that I have ferreted out thus far from lots of relieved sources familiar with the situation:

Yahoo will sell half of its roughly 40 percent stake in Alibaba, in a taxable deal. The transaction is likely to value that portion of Yahoo’s holdings at about $7 billion — or 20 percent of Alibaba’s $35 billion enterprise valuation. Alibaba is in the midst of raising capital to fund the sale.

After taxes of upward of 35 percent are paid on the long-term gains — remember that Yahoo bought the now-lucrative Alibaba stake for a fraction of that, many years ago — the company will likely use the funds to buy back its own shares. That stock has been caught in the mid-teens doldrums for quite a while.

A shareholder dividend is also being considered. It’s not clear if some of the cash will be held back for acquisitions by Yahoo, sources added, but it is unlikely.

As part of the deal, sources said, incentives have been put in place for Alibaba to move forward with a public offering, which sources stressed is without the contractual obligation or a time frame. Alibaba execs have already been publicly indicating such a direction recently, but this will put them more firmly on that path.

In return, Yahoo has agreed to sell the remaining quarter of its current holdings when that IPO does occur. It would then have an only 10 percent stake of Alibaba, which it could sell at any time after the IPO.

If finally struck, the transaction will finally bring to an end one of the more protracted and disputed relationships in the Internet world.

Once close, the pair have been wrangling over the large Yahoo ownership, which Alibaba CEO Jack Ma has been trying to dislodge in a variety of nice and not-so-nice ways. It has resulted in a number of very public disagreements.

That included a nasty back-and-forth over its Alipay unit with now-fired CEO Carol Bartz, threats of takeover of Yahoo with private equity firms and, more recently, making friendly with its just-ousted CEO, Scott Thompson.

Those talks with him in recent weeks, which included a visit to China by Thompson, led to the new deal, which was negotiated primarily between Yahoo’s CFO Tim Morse and legal head Mike Callahan and Ma and Alibaba’s Joe Tsai.

The talks continued even as Thompson was suddenly engulfed in a controversy over a fake computer science degree on his resume that quickly led to his departure from Yahoo on Sunday.

Ironically, the error was first discovered by activist shareholder Daniel Loeb, who will now vote on the deal as a newly named director of Yahoo, after successfully helping to oust Thompson.

He owns almost 6 percent of Yahoo, and is expected to approve the transaction.

But the final decision to approve the deal will be in the hands of a very new board of Yahoo, which has been drastically reshaped in recent weeks. It is meeting tomorrow and perhaps over the weekend to vote on it.

While the deal with Alibaba looks to be nearing an end, Yahoo’s talks to sell its 33 percent stake in Yahoo Japan is not part of this agreement. That’s due to what Thompson had called a “valuation gap,” which sources said is still an outstanding issue.

New interim CEO Ross Levinsohn has not been involved in the Alibaba deal in any significant way. But he certainly will benefit from its halo effect, if approved, especially given that it will likely boost Yahoo shares.

Next up for Levinsohn, who has just rejiggered Yahoo management again, other sources said, is an effort to settle the patent-infringement lawsuit with Facebook, and also to renegotiate its search deal with Microsoft.

And, oh yes, fix Yahoo’s rocky core-advertising business, which is still in distress and needs a major overhaul to push it back to growth.

But that, as they say, is yet another episode of Yahoo’s ongoing reality show.

But now, both Mr. Karp, a 25-year-old New Yorker, and his company are heading into a risky new phase: Making the site profitable. For the first time, he is making plans to sell advertising and sponsorships to Tumblr’s network of bloggers and their followers.

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Amid mounting anger about the capability, at least two are resisting. Fox and NBC both said Wednesday they won’t accept ads promoting the satellite-TV operator’s new digital video recorder that contains the ad-skipping capability.

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While Facebook is slowly working out the kinks to bring more games to mobile, there’s a small company in Menlo Park, Calif., that has beat them to it.

ISwifter is announcing a new iPad app today called theWorx for Facebook, which gives users the full Facebook experience — social games and all.

That means users can check their crops, maintain their cities and feed their fish without having to boot up their computer.

A small company of 20 employees, iSwifter is almost entirely bootstrapped, having generated $10 million in revenue last year.

As my colleague Ina Fried wrote, the previous iPad app allowed users to access any Flash-based content on the Web by running a browsing session on its servers and streaming the results to the iPad. What iSwifter quickly realized was that “one of the major use cases is Facebook games,” said the company’s co-founder Rohan Relan.

TheWorx will work similarly to the old app, except that it is tailored specifically for Facebook. ISwifter will host the content on its servers and then stream the games to the user on the iPad, with little latency. By taking this approach, users will have access to all games on Facebook without developers having to lift a finger.

Additionally, all of the original ways to monetize the applications will be in place, including advertising and Facebook Credits. TheWorx will be free for a short trial period, and then users will pay for additional access. The app will come out later this month or in early June. At that time, Relan said, the company will figure out how much it will charge. The iSwifter app currently costs $5.

“Our plan is if we do everything that the Facebook app does, then we can charge for that functionality,” Relan said.

The biggest threat to iSwifter is if Facebook starts bringing more content to mobile. “That would be pretty devastating to us,” Relan admits. However, he said there’s not an easy way for all developers to bring their content to mobile. Currently, some of the largest game developers, like Zynga, have created content specifically for Facebook’s app, but it has been a slow process.

“Some of the big apps have made native versions, but it will take time for the Long Tail to migrate over,” he said.

Here’s how the app works:

But there’s one thing that even the most ardent Facebook fan can’t argue with: Facebook advertising is very much a work in progress.

Don’t take my word for it. Listen to Facebook itself: “We believe that most advertisers are still learning and experimenting with the best ways to leverage Facebook to create more social and valuable ads,” the company says in its IPO filing.

If you’re a Facebook bull, those words sound reassuring. Facebook sold $3 billion worth of ads last year, and it’s just getting started. Imagine what happens when things really kick in.

But if you’re a skeptic, and there are lots of them, that uncertainity is a real problem. When Google went public in 2004, it had already built AdWords, the search ad engine that still generates the majority of its revenue today. Facebook doesn’t have an AdWords, so it doesn’t have a tried-and-true plan it can present to advertisers: Put dollars in here, see results over there.

Instead, Facebook marketers try different things over time. A few years back, they were all building Facebook apps. Then they started concentrating on amassing fans/followers. Now, digital marketing people tell me with confidence that all of that thinking is outmoded, and that the real Facebook pros are the ones who create “engaging content” on the site, then buy ads to “amplify” that message.

Facebook’s challenge gets even tougher because instead of search ads, whose success and failure are easy for advertisers to evaluate — Did someone click on my search ad? If they did, did they buy something or fill out a form once they got to my site? — Facebook aspires to the big branding dollars that advertisers spend on TV. And those are much harder to score. So convincing GM or anyone else to move big money from traditional ads, which marketers are at least comfortable with, to the wild world of social, requires a lot of work.

The good news for Facebook is that it’s so big that it might succeed even if it never cracks the social ad code. Any Web site with 900 million users and counting, who spend a ton of time there, is going to pull in a lot of ad dollars through sheer force of gravity. If Facebook can keep its users happy, it may get away with muddling through on the ad part.

But being a big, lumbering giant that attracts ad dollars without knowing what it’s doing isn’t the message Facebook wants to sell to advertisers. Or to investors.

OK, on to the “this isn’t that big of a deal” arguments. I’ve heard a bunch, all of which come from (different) people who don’t want to be quoted.

• Obviously there’s a backstory here. If GM didn’t want to keep advertising on Facebook, it didn’t have to announce that three days before an IPO.
• Big Fuel, GM’s social media ad agency, didn’t do a good job. That’s why GM fired them in December. For the record, here’s a quote from a Big Fuel rep: “GM never seemed persuaded of the value of social media in general and Facebook likes in particular. In a sales-driven culture, it is very hard to wrap your head around putting money in places where you don’t see immediate results in an uptick in sales.”
• Starcom, GM’s media buying agency, didn’t do a good job. That’s why GM fired them in January.
• How the heck did GM spend $3 on Facebook “content management” for every $1 it spent on Facebook ads, as the WSJ reports? That’s a sure sign that someone was doing something wrong.
• Ford loves Facebook.
• GM is pulling $10 million out of Facebook. Facebook did more than $3 billion in ads last year.

Again, all of those may be valid points.* But if Facebook really wants to allay outsiders’ fears, it needs to be able to prove conclusively that its ads work, in a scalable way, for a wide variety of advertisers. It can’t do that yet.

*I’m totally amazed by the $3-to-$1 ratio, and am wondering if it’s not to late to pivot myself into a “Facebook content creation consultant.” Those numbers also remind me very much of the late 90s, when companies like Organic went public based on the fact that they knew how to build Web sites and their clients didn’t, and they could charge accordingly. That didn’t last long.

The largest U.S. auto maker will continue to expand its use of marketing through Facebook’s pages, in which companies can display content at no cost, these people said.

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That can’t be right, can it?

Not exactly. That scenario is what Gawker’s Scott Kidder encountered when he read a story on Adweek’s site today, but that’s not what’s supposed to happen.

Instead, Kidder should have had a choice of filling out a one- or two-question survey or sharing the story on Twitter, Facebook or Google+.

Bug, not a feature, says a Google spokesrep, via email:

Generally, Google Consumer Surveys are designed to show a market research question along with an alternate, publisher defined action, such as signing in or sharing a piece of content. Along with the surveys, we also offer a number of controls to prevent abuse of the system. Unfortunately, in rare cases, as a result of these controls, a prompt runs without a survey question included. This is not the intended behavior and we are currently working on a fix.

[UPDATE: This is now fixed, a Google rep says.]

Okay, fair enough. As far as the survey that AdWeek users are supposed to see, which acts as an ersatz pay wall by generating a small fee for AdWeek and Google every time someone fills it out: Annoying and a little clumsy, but not terrible.

I’ve read about the tool, and I’ve used it several times, but each time I encounter it I think something’s broken on the site. Then I remember what’s happening, make a couple of clicks without giving it a lick of thought — today’s survey was about professional medical supplies, I think, but I really have no idea — and move on.

Hard to see how this is useful for the survey sponsor, but I’ve always found online sponsor polls to be baffling. So perhaps it’s a less-bad option.

In any case, it’s a couple of clicks, so I’d prefer that to having Adweek crap up their site with slideshows, or forcing me to make lots of clicks to read a one-page story, which happens all over the Web these days. I also prefer it to Facebook’s “frictionless sharing” via “social readers,” which end up automatically belching up my friends’ reading habits into my feed, whether or not either of us wanted that to happen.

And in the big picture, unless the site you like is using the “borrow money from investors, pay back by selling to Facebook” plan, you’re always going to end up paying something to use it.

Either you pull out your credit card, or you lend them your eyeballs so they can rent them out to advertisers. And if you don’t like those options, you’re going to end up with a much emptier Web.

At today’s all-hands meeting for Yahoo employees — in the wake of the dramatic ouster of its former CEO Scott Thompson — what pop culture icon did new interim CEO Ross Levinson use to loosen up the crowd?

Why, a little Al Pacino from the movie classic “The Godfather,” of course — the go-to guy solution menu for all troubles in the world.

Comparing the battered Silicon Valley Internet giant to Don Corleone after a gun ambush, Levinsohn said to the crowd gathered at URL’s Cafe on the Sunnyvale, Calif., HQ campus: “This weekend was like that scene from ‘The Godfather’ — ‘They hit ’im with five shots, and he’s still alive!’”

And also, trying to make Yahoos feel as if there were forward momentum: “There are things being negotiated now that are gonna solve all your problems and answer all your questions.”

Well, let’s hope so, and that it does not end for Yahoo — and Levinsohn — like it did for Luca Brasi (who sleeps with the fishes, in case you didn’t know).

So far, in his first impress-the-employees outing, the reviews for Levinsohn were largely positive on its internal message boards and from numerous sources I talked to.

What they liked: Acknowledgement of the tough past week, but not dwelling on the past, either; a theme of revival and spirit; no PowerPoint slides; and zero direct mention of Thompson.

What they really liked: The whole pile of compliments that Levinsohn doled out to the troops.

No tough-love dude he — unlike Thompson and his predecessor Carol Bartz, who liked to verbally smack around the troops a little more in a mobster kind of way.

Instead, said one person in attendance, “he was appealing to Yahoo pride, which is pretty much in the doldrums.”

Still, one questioner worried about the future and whether the company was going to still be stuck in a leadership vacuum, especially since Levinsohn was not named as the permanent CEO.

Fred Amoroso — who was just named Yahoo’s new chairman and was the only person who appeared with Levinsohn on the stage — tried to assuage that concern by saying he wanted Levinsohn to eventually become the head of the family for good.

While there will likely be a search for other CEO candidates, it is as close to a ring-kiss as Levinsohn is going to get for now.

That is, unless he does not produce some quick results on a variety of Yahoo’s thorniest issues, such as an Asian asset sale and a settlement of the patent lawsuit fight with social networking giant Facebook.

But the over/under on him and Amoroso together was good.

One person said it was important when Amoroso talked about coding and technology and products, which is not advertising- and media-focused Levinsohn’s expertise.

“It was nice to see a board member who cared about products and innovation,” said one person. “Or at least said he did.”

We’ll see how this pair works out together, but always remember this, Yahoos:

Just when you thought you were out, they pull you back in.

Until we know how the movie ends, here is a scary video of me talking about the last week’s events at Yahoo on a local ABC television news station — I look a fright since I’m so tired from covering it all:

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That will happen in the middle of 2014, says Barclays analyst Kannan Venkateshwar, when circulation growth at the paper will start offsetting the decline in the Times’ ad sales. Here’s what that looks like in chart form:

True, one reason that circ growth will lap ad losses is that the losses will be slowing after much steeper declines. Still, the best-case scenario for most old-line media businesses is that digital sales increase faster than physical sales drop, and that’s essentially what Venkateshwar says is happening here. A year after the Times introduced its pay wall, it now has 450,000 digital subscribers — a number that impresses lots of industry skeptics.

Earlier this spring, when the Times said it was making it harder to read the paper online without paying for it, by dropping its free article limit from 20 per month to 10 per month, I wondered if the Times had made the move out of necessity — because it needed to boost its digital sales — or optimism — because it was confident it could boost its sales with a taller pay wall.

But after some thought, and bouncing the idea off a few industry folks, I’ve come to the conclusion that it’s both. The Times would sure like to accelerate Venkateshwar’s timeline, and that’s probably not going to happen by fixing its ad problem. Meanwhile, the paper seems relatively confident that raising the pay wall equals marketing the pay wall. And the nice thing about the system the paper has built is that if it doesn’t work, it can fiddle with the controls some more.

Assuming Yahoo gives its interim CEO real power — either by making him its actual CEO, or at least letting him behave as if he has the job — then he’ll finally have full control of a giant media company. That’s something he’s been working toward for a long time, despite his rep as a guy who enjoys buying companies more than running them.

Just like his predecessors, Levinsohn will have to untie Yahoo’s knotty Asian problem. He’ll also have to spend time repairing relationships with Facebook and figuring out what to do with a Microsoft search deal that hasn’t been a huge success.

But if Levinsohn gets to run Yahoo the way he wants to run Yahoo, he’ll focus on getting the most out of its media business, because that’s his strength.

Bear in mind that this is still a huge business — the portal attracts some 700 million visitors a month, which helped it generate nearly $1 billion in ad sales last quarter. But that business is listing and under attack from Google, Facebook, and a swarm of nimble start-ups pulling eyeballs and dollars away.

If you want to get a sense of what Levinsohn may try to do next, it’s good to review what he did last year, when he had control of the company’s U.S. operations — and what he tried to do but couldn’t get done.

• Ads: Yahoo used to have one of the Web’s best sales operations, but those days are long gone. Levisonsohn spent much of 2011 trying to fix that. Part of that involved restaffing his team, and part of it was a strategy that was supposed to cut out some of the ad tech middlemen and allow the company to increase its yield on the ads it sold. Those moves, which included a would-be alliance between Yahoo, AOL and Microsoft, all went into a holding pattern when Scott Thompson took over in January. Levinsohn will try restarting that again now.
• M&A: Levinsohn has a reputation as a dealmaker because he’s made some pretty big deals. Most notably, he brought Myspace to News Corp. in 2005, then helped the company secure a $900 million ad deal with Google (News Corp. also owns this Web site). Last year, he tried to land another big fish, when he pushed to pursue Hulu. But Levinsohn couldn’t get buy-in from then-CEO Carol Bartz, and Hulu’s owners decided not to sell after all. I think Levinsohn would still be interested in the site under certain conditions, but he’d need more cash than he has on hand to do it. Selling off his Asian assets might make that possible. If he can’t land Hulu, I don’t see him chasing after Instagram-like companies with big price tags and no near-term revenue plans. I do see him making some plays on cheaper start-ups, as well as some technology plays, to shore up/replace the company’s very old infrastructure/platforms.

Over the many years I have covered Yahoo’s expected new interim CEO Ross Levinsohn, I have done several video interviews with him.

And, for my own amusement, I also have nicknamed him “The Hair,” due to his very impressive mane.

We’ll see how impressive the longtime digital media exec will be now that Levinsohn has become the latest head of the Silicon Valley Internet giant.

His job is only interim for now, but in selecting him, the Yahoo board is opting for a more media-centric approach.

Among his claims to fame: He was president of News Corp.’s Fox Interactive Media, where he bought the then-soaring Myspace social networking site. Levinsohn managed to get Google to fork over more than double its price in advertising guarantees and luckily left the company before it went off the rails.

He was also an exec at AltaVista, an early search pioneer, and was head of content and development at CBS Sportsline. Levinsohn also dabbled in investing at Fuse Capital, with current News Corp. digital head Jon Miller focused on digital media and communications companies.

When he was at Fuse, ironically, Levinsohn and Miller were also raised as possible board members by Carl Icahn, who has conducting a different proxy fight against Yahoo.

In the latest fighting, at least, Levinsohn appears the victor.

To assess him, here are two videos I did with him — one in 2007 when he was at Fuse and one from last year at our D: All Things Digital conference (I ask about his hair-care product at the very end).

I also added a recent mockumentary video that Levinsohn for Yahoo’s recent Newfront media presentations in New York, which is pretty funny (and, in Carol Bartz channeling, Levinson curses at the end!):

RELATED POSTS:

• Yahoo’s Parting With Thompson Will Be for “Cause” (a.k.a. CSLie)
• Ross Levinsohn’s Yahoo Plan: Back to the Future
• Here’s New Yahoo CEO’s First Note to Troops! (The Leaking-Internal-Memos-to-ATD Policy Remains in Effect As Usual)
• Yahoo Officially Confirms ATD Report on CEO Changes and Proxy Settlement
• Meet the Man I Call “The Hair”: The Video Stylings of Yahoo’s Newest CEO Ross Levinsohn
• Will Thompson’s Ouster Mean a Yahoo-Facebook Patent Settlement Too?
• Exclusive: Yahoo’s Thompson Out; Levinsohn In; Board Settlement With Loeb Nears Completion
• Heidrick & Struggles Slaps Back at Thompson’s Yahoo in Blame Game Over ResuMess
• Is He In or Is He Out? Crunchtime for Scott Thompson at Yahoo.
• Not So Scott Free? Yahoo’s Other Big Shareholder — Cap Re — Leaning Toward Supporting Loeb Over Thompson ResuMess.
• Tech Nation’s Gunn Says She and Yahoo CEO Discussed Their CS Degrees Before 2009 Show (Video and Audio)
• Loeb Calls Again for Thompson Firing From Yahoo, as Former eBay Boss Supports Him
• Place Your Bets: Will Loeb Drop Another Bomb on Yahoo at Vegas Confab Later Today?
• Exclusive: Yahoo Director in Charge of Botched CEO Vetting to Step Down From Board
• CEO Says Sorry to Yahoos for Borked Bio “Distraction” — But Will Mea Culpa Work Without an Apology for Error? (Memo)
• Buffett Comments on Trust Issue in Yahoo CEO BioGate: “You’ve Got a Problem”
• Loeb Lobs Lawsuit, as Expected, at Yahoo’s Borked Bio Mess
• As Yahoo CEO Reaches Out to Top Staff, Board Meets to Weigh “Options” (I.E., Deciding Who Gets to Take the Borked Bio Blame)
• Yahoo Should Expect Incoming Lawsuit Lobbed by Loeb Tomorrow on CEO Hiring
• They Shoot Yahoo CEOs, Don’t They? But Not Without a Really Smoking Gun and a Much Stronger Board.
• Yahoo’s Thompson Asks Employees to “Stay Focused” — Except Not on Him
• In 2009 Interview, Yahoo CEO Does Not Deny He Has a CS Degree, and Calls Himself an “Engineer” (Audio)
• Yahoo’s Board Will “Review” Resume Discrepancy of CEO
• How Did a Phantom CS Degree Get on CEO’s Bio in SEC Filings? Yahoo’s Not Saying.
• Yahoo’s Response on CEO’s Computer Science ResumeGate: “Inadvertent Error”
• Dan Loeb Alleges “Discrepancies” on Yahoo CEO Scott Thompson’s Resume Related to Computer Science Degree

]]> http://allthingsd.com/20120513/meet-the-man-i-call-the-hair-the-video-stylings-of-yahoos-newest-ceo-ross-levinsohn/feed/ 0 http://allthingsd.com/20120513/exclusive-yahoos-thompson-out-levinsohn-in-board-settlement-with-loeb-nears-completion/ http://allthingsd.com/20120513/exclusive-yahoos-thompson-out-levinsohn-in-board-settlement-with-loeb-nears-completion/#comments Sun, 13 May 2012 15:59:24 +0000 Kara Swisher http://allthingsd.com/?p=207290

Yahoo’s embattled CEO Scott Thompson (pictured here) is set to step down from his job at the Silicon Valley Internet giant, in what will be dramatic end to a controversy over a fake computer science degree that he had on his bio, according to multiple sources close to the situation.

The pair will apparently say he is departing for “personal reasons.” Sources said that Thompson will be claiming to be leaving due to a serious illness that he recently discovered he had.

But the evolving crisis — which is just over a week old — centered on his botched resume and how he handled the thorny issue is the key reason for the abrupt end to his tenure as a CEO.

Thompson’s likely replacement on an interim basis will be Yahoo’s global media head Ross Levinsohn, who most recently also ran its Americas unit, including its advertising sales.

In addition to the management upheaval, Yahoo’s board is closing in on a settlement with the man who discovered Thompson’s misstep, activist shareholder Daniel Loeb of Third Point, said sources.

The situation could change, since Yahoo’s full board still has to meet this morning to officially approve the sweeping changes at the long-troubled company.

But, if it is, this development goes a long way toward fixing some of what has been ailing Yahoo recently.

And it’ll also be a stunning victory for Loeb (pictured here), since the pugnacious hedge fund investor is set to get three board seats from a slate proposed by him as part of a proxy fight aimed at Yahoo. The new Yahoo directors will be media exec Michael Wolf and turnaround specialist Harry Wilson. Loeb’s fourth selection — former NBC head Jeff Zucker — will withdraw.

The five current Yahoo directors — who were to step down at the company’s annual meeting this summer — will leave the board effective immediately, sources said, to make way for the Third Point selections.

Finally, Yahoo’s recently added director Fred Amoroso will be named chairman of the board.

Amoroso is the director who has been conducting the investigation into the issues raised by Loeb about how the fake academic credentials got in Thompson’s public bios, as well as in Yahoo’s regulatory filings, and also the hurried circumstances around his hiring in January.

Those mysteries — read, screw-ups — might never be solved now, although Thompson made a convoluted attempt to explain it all in two awkward employee meetings at the end of last week. In those gatherings, according to numerous sources, he blamed a headhunting firm for introducing the mistake when he was being hired for a job at eBay in the mid-2000 timeframe.

That company, Heidrick and Struggles, slapped back last week with an internal memo, noting that Thompson’s claim was “verifiably not true.” Sources said that Heidrick told Yahoo’s board that it was in possession of a resume that Thompson had apparently submitted showing the inaccurate CS degree on it.

That memo, impugning Thompson’s credibility, was one of many that piled on to create an impossible situation for the Yahoo board, related to his leadership ability going forward.

Thompson had also previously issued a Yahoo statement, in which he apologized for the “distraction” caused by the problematic resume, but not for the mistake itself.

And, initially, Yahoo — under his direction — had called the borked resume an “inadvertent error.”

Such fumbling to fix the situation was among the many other issues that the board has been considering relating the ability of Thompson to remain in his job. Also of importance was the sinking morale of Yahoo employees, who had largely rejected Thompson’s excuses in the ResuMess scandal.

Internal message boards at Yahoo lit up all last week, with staffers largely rejecting his explanations. In addition, a number of top execs and engineers approached the board calling for Thompson’s firing.

While that’s not precisely what happened here, it’s close enough to describe Thompson’s departure as inevitable.

All this change comes in the wake of a massive restructuring he was in the midst of at Yahoo, after 2,000 employee layoffs.

Thompson was pushing forward a vision of adding a much more significant data and commerce element to Yahoo’s largely ad-based business.

That is likely to be less stressed under media-focused Levinsohn, who will be essentially trying out to be the permanent CEO.

Well known in the media and advertising communities, he has worked at a number of big online efforts over many years.

According to his bio at Yahoo, where he arrived in 2010:

He previously served as the President of News Corporation’s Fox Interactive Media, where he was responsible for the day-to-day operations, strategy and acquisitions that helped transformed the company into a leader in digital media. He also held senior management positions with AltaVista, an early pioneer and leader in search, CBS Sportsline where he oversaw all content and development for the top rated sports site, and HBO where he launched and oversaw a unit developing new programming and revenue streams. Levinsohn also was the co-founder and managing director of Fuse Capital, an investment and strategic equity management firm focused on investing in and building digital media and communications companies.

Levinsohn sits on the board of Freedom Communications and the Bogart Pediatric Cancer Research Program. He holds a Bachelor of Arts in Communications from The American University.

So far in my checking, Levinsohn’s resume is accurate.

More to come, obviously.

I have emails and texts and calls into everyone for comment, but apparently they are all out at a Mother’s Day brunch (except me).

RELATED POSTS:

• Yahoo’s Parting With Thompson Will Be for “Cause” (a.k.a. CSLie)
• Ross Levinsohn’s Yahoo Plan: Back to the Future
• Here’s New Yahoo CEO’s First Note to Troops! (The Leaking-Internal-Memos-to-ATD Policy Remains in Effect As Usual)
• Yahoo Officially Confirms ATD Report on CEO Changes and Proxy Settlement
• Meet the Man I Call “The Hair”: The Video Stylings of Yahoo’s Newest CEO Ross Levinsohn
• Will Thompson’s Ouster Mean a Yahoo-Facebook Patent Settlement Too?
• Exclusive: Yahoo’s Thompson Out; Levinsohn In; Board Settlement With Loeb Nears Completion
• Heidrick & Struggles Slaps Back at Thompson’s Yahoo in Blame Game Over ResuMess
• Is He In or Is He Out? Crunchtime for Scott Thompson at Yahoo.
• Not So Scott Free? Yahoo’s Other Big Shareholder — Cap Re — Leaning Toward Supporting Loeb Over Thompson ResuMess.
• Tech Nation’s Gunn Says She and Yahoo CEO Discussed Their CS Degrees Before 2009 Show (Video and Audio)
• Loeb Calls Again for Thompson Firing From Yahoo, as Former eBay Boss Supports Him
• Place Your Bets: Will Loeb Drop Another Bomb on Yahoo at Vegas Confab Later Today?
• Exclusive: Yahoo Director in Charge of Botched CEO Vetting to Step Down From Board
• CEO Says Sorry to Yahoos for Borked Bio “Distraction” — But Will Mea Culpa Work Without an Apology for Error? (Memo)
• Buffett Comments on Trust Issue in Yahoo CEO BioGate: “You’ve Got a Problem”
• Loeb Lobs Lawsuit, as Expected, at Yahoo’s Borked Bio Mess
• As Yahoo CEO Reaches Out to Top Staff, Board Meets to Weigh “Options” (I.E., Deciding Who Gets to Take the Borked Bio Blame)
• Yahoo Should Expect Incoming Lawsuit Lobbed by Loeb Tomorrow on CEO Hiring
• They Shoot Yahoo CEOs, Don’t They? But Not Without a Really Smoking Gun and a Much Stronger Board.
• Yahoo’s Thompson Asks Employees to “Stay Focused” — Except Not on Him
• In 2009 Interview, Yahoo CEO Does Not Deny He Has a CS Degree, and Calls Himself an “Engineer” (Audio)
• Yahoo’s Board Will “Review” Resume Discrepancy of CEO
• How Did a Phantom CS Degree Get on CEO’s Bio in SEC Filings? Yahoo’s Not Saying.
• Yahoo’s Response on CEO’s Computer Science ResumeGate: “Inadvertent Error”
• Dan Loeb Alleges “Discrepancies” on Yahoo CEO Scott Thompson’s Resume Related to Computer Science Degree

]]> http://allthingsd.com/20120513/exclusive-yahoos-thompson-out-levinsohn-in-board-settlement-with-loeb-nears-completion/feed/ 0 http://allthingsd.com/20120511/is-youtubes-ad-pitch-working/ http://allthingsd.com/20120511/is-youtubes-ad-pitch-working/#comments Fri, 11 May 2012 14:19:25 +0000 Peter Kafka http://allthingsd.com/?p=206926 Last week, YouTube threw a glitzy party designed to get advertisers to move their money from TV to the giant video site. Is it working?

Capstone analyst Rory Maher thinks so. He’s been polling ad buyers and thinks they may collectively be spending 40 percent more on YouTube than they did a year ago.

He also thinks YouTube’s strategy of grouping its new channels into “genres” — like “women,” “pop culture,” etc. — and selling those as megapackages is attractive to advertisers, and that they’ve at least placed tentative commitments on all 18 packages YouTube is selling.

But those dollars aren’t going to come from TV, Maher thinks. Instead, advertisers will take money they would have spent on other Web ads and move them over to YouTube. That’s still a win for Google, but it’s not the win it really wants.

Last week’s event didn’t win everyone over. Several folks I’ve talked to — including people who are making stuff for YouTube’s channels — say they’re underwhelmed with the actual content they saw onstage at the Beacon Theater.

“It looked like Web video,” one Web video maker told me. That is, it didn’t look like the stuff the TV guys show off at their advertiser events.

Some of the stuff may get close to TV.

YouTube is brimming with pride over WIGS, a series of soapy dramas featuring actresses you’ve heard of, like Jennifer Beals and Julia Stiles (News Corp., which owns this site, had a hand in putting the series together). The teaser trailer they’ve put out looks like a reasonable facsimile of Lifetime, at least to my eyes. And Machinima is planning a series based on Halo, the hit Xbox game, and the few seconds of that they showed looked pretty slick.

It’s more likely that most of the Web video YouTube produces with its channels this year really will end up looking like Web video. But if that doesn’t bother the people who watch it — and there are some 800 million people watching this stuff every month — then it shouldn’t be a problem for the ad guys, either.

]]> http://allthingsd.com/20120511/is-youtubes-ad-pitch-working/feed/ 0 http://allthingsd.com/20120510/dish-network-offers-dvr-that-removes-ads/ http://allthingsd.com/20120510/dish-network-offers-dvr-that-removes-ads/#comments Thu, 10 May 2012 21:16:19 +0000 Shalini Ramachandran http://allthingsd.com/?p=206783 Dish Network Corp. released a feature on its digital video recorder Thursday that automatically removes commercials from shows aired by major broadcast networks, threatening to seriously undercut billions of dollars in broadcast television advertising.

The feature, dubbed “Auto Hop,” is an advance on existing ad-skipping features on digital video recorders, which have been widely available for several years from cable and satellite operators. For existing DVRs, consumers have to manually press a fast forward button to speed through the commercial breaks. Timing the fast forward can be difficult and viewers can still see scenes from ads.

Read the rest of this post on the original site »

]]> http://allthingsd.com/20120510/dish-network-offers-dvr-that-removes-ads/feed/ 0 http://allthingsd.com/20120510/cross-device-ad-tracker-drawbridge-rounds-up-6-5-million-from-sequoia-kleiner-perkins/ http://allthingsd.com/20120510/cross-device-ad-tracker-drawbridge-rounds-up-6-5-million-from-sequoia-kleiner-perkins/#comments Thu, 10 May 2012 16:30:18 +0000 Peter Kafka http://allthingsd.com/?p=206447 Drawbridge, an ad tech start-up founded by AdMob engineer Kamakshi Sivaramakrishnan, has raised $6.5 million from Sequoia Capital and Kleiner Perkins Caufield & Byer. Drawbridge says it can help marketers target potential customers by tracking them as they move around from device to device — like from a laptop to an iPhone. Sivaramakrishnan put in six months at Google after it acquired AdMob, before starting her own company.

]]> http://allthingsd.com/20120510/cross-device-ad-tracker-drawbridge-rounds-up-6-5-million-from-sequoia-kleiner-perkins/feed/ 0 http://allthingsd.com/20120510/washington-post-finishes-digg-deal/ http://allthingsd.com/20120510/washington-post-finishes-digg-deal/#comments Thu, 10 May 2012 11:00:20 +0000 Peter Kafka http://allthingsd.com/?p=206432 The Washington Post has closed its deal to acquire some of Digg’s technology staff, who will go to work for SocialCode, a Washington Post subsdiary that helps marketers buy ads on Facebook and Twitter. AllThingsD had previously reported that the Digg hires would work alongside the team that built the paper’s Social Reader; that team works for WaPo Labs, a different subsidiary.

]]> http://allthingsd.com/20120510/washington-post-finishes-digg-deal/feed/ 0 http://allthingsd.com/20120509/adaptly-tries-to-ride-facebooks-ad-rise-with-a-10-5-million-round/ http://allthingsd.com/20120509/adaptly-tries-to-ride-facebooks-ad-rise-with-a-10-5-million-round/#comments Wed, 09 May 2012 13:00:47 +0000 Peter Kafka http://allthingsd.com/?p=205813 An underlying premise behind Facebook’s IPO pitch: We’ve got a $3 billion advertising business, and we’ve just gotten started.

That pitch is also fueling a whole lot of start-ups, who want to piggyback on Facebook’s ascent by helping advertisers shovel money into the site.

Today’s example: Adaptly, which manages Facebook ad campaigns and also helps marketers buy ads on other social platforms, like Twitter and StumbleUpon.

The NYC-based company has raised a $10.5 million B round, led by Valhalla Partners; the company also brought in Time Warner Investments and Vivi Nevo as new investors. Adaptly had previously raised $2.7 million.

The company is run by freakishly young cofounders — Nikhil Sethi, 23, and Garrett Ullom, 22, both fresh out of Northwestern (Ullom didn’t stick around to graduate). Sethi (pictured above) says his company booked $10 million in gross revenue in 2011, and will “greatly exceed that” this year. (Update: That’s actually $10 million in gross bookings, not revenue, Sethi says. Thanks to Steven Kane for the nudge.)

Adaptly has around 50 employees, a bunch of whom have migrated there via Invite Media, the ad tech start-up Google bought in 2010. The two companies share a few other ties: Both have been backed by Philly’s First Round Capital, and Invite CEO Nat Turner has invested in Adaptly as well. Small world.

(An earlier version of this story incorrectly reported that Invite Media was a product of the Dreamit Ventures program.)

]]> http://allthingsd.com/20120509/adaptly-tries-to-ride-facebooks-ad-rise-with-a-10-5-million-round/feed/ 0