Right now, Google is showing that none of its products are available in Syria, since a little before 3 pm ET, or about two hours ago as of this writing. Here’s a screen grab of Google’s graphic showing the dropoff.

Akamai has been tracking the outage as well, according to this Tweet from @NMSyria. I’ve reached out to Akamai for a little more color (to the extent that any is available).

Internet seems to have been shut down across all of #Syria. http://t.co/m6hVLroVRF

May 7, 2013 1:28 pm via Tweetbot for iOSReplyRetweetFavorite

@NMSyria

NMSyria

The last time this happened was in November of last year, and that outage, like so much else going on in that country torn apart by civil war, has never been fully explained. The outage lasted about two days.

Last time, the folks at Renesys, a research firm that tracks the health of the Internet’s underlying plumbing, noticed that all five networks bringing Internet traffic into Syria went down more or less at once.

That’s fairly easy to carry out logistically because pretty much all Internet traffic in and out of that country is funneled through one point: The state-run, state-controlled Syrian Telecommunications Establishment, and all Internet providers operate out of a single building. The companies that provide Internet connections going into Syria are PCCW and Turk Telekom as the primary providers, with Telecom Italia and Tata providing additional capacity.

There are four physical cables that bring bandwidth into Syria and three of them land in the coastal city of Tartus. A fourth comes in from Turkey to the north.

Chances are, routers in the telecommunications building were reconfigured to stop announcing themselves in the global routing tables, essentially making them invisible to the rest of the Internet.

The question — as with the last time this happened — is why now?

Update: Umbrella Security Labs CTO has a blog post on what that company says is going on:

Currently both TLD (top-level domain) servers for Syria, ns1.tld.sy and ns2.tld.sy are unreachable. The remaining two nameservers sy.cctld.authdns.ripe.net. and pch.anycast.tld.sy. are reachable since they are not within Syria.

It goes on in more technical detail:

Routing on the Internet relies on the Border Gateway Protocol (BGP). BGP distributes routing information and makes sure all routers on the Internet know how to get to a certain IP address. When an IP range becomes unreachable it will be withdrawn from BGP, this informs routers that the IP range is no longer reachable.

Like I said, the routers in the telecommunications building have been reset and have stopped announcing themselves to the rest of the world, making them essentially nonexistent until they come back on.

Second update: Apparently there are a few people who still have access. Some people have the means to install satellite-based Internet connections that are independent of government-controlled connections, according to a Tweet by Basma Atassi, a journalist with Al-Jazeera.

Only activists who can afford to install SAT internet are online. Family, friends and most of the hardworking activists are offline #Syria

May 7, 2013 2:26 pm via webReplyRetweetFavorite

@Basma_

Basma Atassi | بسمة

Also Renesys has now confirmed the outage.

Renesys confirms loss of Syrian Internet connectivity 18:43 UTC. BGP routes down, inbound traces failing. @geeknik

May 7, 2013 12:30 pm via webReplyRetweetFavorite

@renesys

Renesys Corporation

Here’s a graphic of its monitoring, broken down by inbound service provider.

Third update: Google has just reactivated its Speak To Tweet service for people who still have working phone lines in Syria.

.@speak2tweet available to help people communicate if they have working phone connection. #SyriaBlackout http://t.co/oRg3jCVDQX

May 7, 2013 2:51 pm via webReplyRetweetFavorite

@google

A Googler

This is a service that Google created during the Internet outages in Egypt in 2011 that allows people with working phone lines to leave messages that can be seen and heard by people outside the country via a Twitter account that records the audio.

To use it, you leave a voicemail message on one of four international phone numbers (details here). If word reaches anyone in the affected area, you can listen for messages here.

Fourth update: Syria Digital Reports, a project of Canada’s SecDev Group and which has been following ongoing updates on Syrian infrastructure in real time (power and water and phone service in addition to Internet) and which also provides digital tools to help people in that country maintain digital safety and security, is now reporting that phone service — both wireless and land lines — has been cut off as well.

Confirmed, landlines and cellphones are down in #Syria – #Syriablackout @Syriansmurf

May 7, 2013 3:12 pm via FacebookReplyRetweetFavorite

@DSRSyria

SyriaDigitalReports

Fifth update: Here’s how the outage looked as it happened live on video. Courtesy a software engineer at Storify named Frederic Jacobs.

I don’t have terms of the deal, but my hunch is that it will involve some equity from New York-based MediaMath, which has raised at least $30 million. It is buying Akamai’s Advertising Decisions Solutions unit, which the company created when it got into the ad business in 2008 by buying Acerno for $95 million.

Akamai makes the bulk of its money as a content delivery network, helping move bits around the Internet. At the time of the Acerno deal, the thought was that the infrastructure it had built up would help make it a big player in Web ads.

But the company never made an aggressive push into the new business, and it’s unclear if it will remain in ads following the MediaMath deal. I’ve asked both companies for comment but haven’t heard back.

Update: AdAge has more details — it confirms the equity component, and says 70 Akamai employees will join MediaMath.

Leighton will take over from current CEO Paul Sagan on Jan. 1. Sagan will remain on Akamai’s board of directors. Leighton was one of Akamai’s founders in 1998, and has been responsible for much of its technology strategy.

At this point, it’s worth remembering what it is that Akamai does. I interviewed Leighton in September. He summed up the company’s mission like so:

“Our mission is to make the Internet work the way you’d want it to for business. We want it to be really fast, really reliable, really secure, really scalable and really efficient. And we do that as a service, and the way we do that is with a platform of more than 100,000 of our servers located in more than 1,000 places around the world. But they’re also inside more than 1,100 different networks. And the platform is extended with software that lives on tens of millions of client machines to help with the delivery of software and the playing of video and the fast delivery of business applications.”

It’s also pretty active in the area of Web security, as he described in the same interview:

“We are the largest consumer of bandwidth on the Internet, and in some networks, we’re the majority of their bandwidth. By delivering that bandwidth from the edge, we take a lot of the load off the customers’ core infrastructure, which is what allows the Internet to grow into scale. But we defend a lot of the major Web sites against attacks. In the case of a denial-of-service attack, we’ll provide the customer with the volume needed to defend against the attack. In the case of more nefarious attacks, where people are trying to sneak in and change content or trying to take control of the site somehow, we’ll filter out those attacks before they get anywhere near the data center …”

The folks at Renesys, who were the first to notice that something was amiss with the telecom infrastructure of the war-torn Middle Eastern nation, have been hard at work sifting through their data — and they’ve found something interesting.

At least five networks operating outside Syria, but still operating within Syrian-registered IP address spaces, are still working, and are apparently controlled by India’s Tata Communications.

These same networks, Renesys says, have some servers running on them that were implicated in an attempt to deliver Trojans and other malware to Syrian activists. The payload was a fake “Skype Encryption Tool” — which is, on its face, kind of silly, because Skype itself is already encrypted to some degree — that was actually a spying tool. The Electronic Frontier Foundation covered the attempted cyber attack at the time.

Cloudflare has also been monitoring the situation in Syria and has made a few interesting observations.

First, pretty much all Internet access in the country is funneled through one point: The state-run, state-controlled Syrian Telecommunications Establishment. The companies that provide this capacity running into the country are PCCW and Turk Telekom as the primary providers, with Telecom Italia and Tata providing additional capacity.

There are, Cloudflare notes, four physical cables that bring Internet connectivity into Syria. Three of them are undersea cables that land in the coastal city of Tartus. A fourth comes in from Turkey to the north. Cloudflare’s Matt Prince says it’s unlikely that the cables were physically cut.

Cloudflare put together a video of what it looked like watching the changes in the routing tables happen live. It’s less than two minutes long.

For what it’s worth, Syria’s information minister is being quoted in various reports as blaming the opposition for the shutdown.

So the question is: Why now? Clearly, the Syrian regime is under more pressure than ever before. Previously, it tended to view the country’s Internet as a tool to not only get its own word out to the wider world, but also to try and spy on and monitor the activities of the rebels and activists.

With fighting intensifying in and around the capital and the commercial city of Aleppo, the decision to throw the kill switch might indicate a decision to try to disrupt enemy communications. Or it might mask a seriously aggressive military action that it wants to keep as secret as possible. We don’t know yet.

The research firm Renesys, which keeps track of the status and health of the technical underpinnings of the Internet around the world, just reported that at 10:26 UTC this morning — which, by my watch, would have been 5:26 am ET — effectively all of Syria’s international Internet connectivity shut down.

More technically, what happened was that within the global routing table, all 84 blocks of IP addresses assigned to Syria have gone unreachable. That means that Internet traffic destined for that country is going undelivered, and also that traffic coming from within it cannot get out to the world.

Renesys is still investigating what’s going on, but, as we’ve seen in other countries, cutting off the Internet is usually meant to try and control the flow of information to the world. It’s also a pretty sure sign that the regime of Bashar al-Assad is either getting nervous about how it is being perceived in the world, or that it is planning something unspeakably harsh in the coming days and wants as little information emerging from that country as possible.

People on Twitter are starting to notice. And hashtag #SyriaBlackout is showing up:

Can’t call Syria. Scary blackout, as if things can get scarier still. #Syria. #SyriaBlackout

November 29, 2012 7:36 am via UberSocial for BlackBerryReplyRetweetFavorite

@BSyria

BSyria

So I’m not the only one not getting through RT @BSyria: Can’t call Syria. Scary blackout, as if things can get scarier still. #SyriaBlackout

November 29, 2012 7:41 am via Twitter for iPhoneReplyRetweetFavorite

@kyrah404

kyrah

The Associated Press (via the Seattle Times) has a report citing Syrian activists saying that the government has cut off Internet and wireless phone connections in and around several neighborhoods of the capital city of Damascus. There have been some clashes there between government forces and the rebels.

Reuters is reporting that there has been some heavy fighting along a road leading to Damascus International Airport, southeast of the city. The road has been closed, and Dubai-based Emirates Airlines has suspended flights in and out of there for now.

The AP is now reporting in a Beirut-datelined story (via The Washington Post) that Akamai has confirmed Renesys’ findings describing a “complete outage.”

Akamai tweeted this about an hour ago, including an image:

Akamai traffic data supports @renesys observation (http://t.co/uxC2ZhTo) that Syria is effectively off the Internet http://t.co/haNHwb5y

November 29, 2012 7:48 am via TweetDeckReplyRetweetFavorite

@akamai_soti

StateOfTheInternet

Obviously, this will be compared to previous actions by governments in Egypt and Libya where popular uprisings, some more violent than others, toppled authoritarian regimes. In Egypt in particular, world outrage ticked up significantly and people sought different alternative methods to help protesters in Tarhir Square and elsewhere coordinate their efforts. Eventually, the Internet came back on, but it was only a small step in the right direction for that country.

Update: Now Google has confirmed what Renesys and Akamai are seeing. (Click the image to make it bigger.)

If you watch a lot of video, or regularly visit pretty much any popular Web site, chances are good that what you’re getting is coming from Akamai, at least some of the time. The Cambridge, Mass.-based company specializes in helping companies deliver their Web content, whatever it maybe, to consumers without having to spend quite to so much on expensive Internet infrastructure.

Helping large companies deliver all that stuff has, in more recent years, led to a second line of business around protecting sites from the numerous and constantly changing hacker attacks. The result is that Akamai has emerged as something of a silent guardian of the Internet itself. AllThingsD recently talked with Akamai’s chief scientist Tom Leighton about that.

AllThingsD: So I think some people are familiar with some of what Akamai does, but not all of it, so take it from the top, if you would. What do you see as Akamai’s primary mission?

Leighton: Our mission is to make the Internet work the way you’d want it to for business. We want it to be really fast, really reliable, really secure, really scalable and really efficient. And we do that as a service, and the way we do that is with a platform of more than 100,000 of our servers located in more than 1,000 places around the world. But they’re also inside more than 1,100 different networks. And the platform is extended with software that lives on tens of millions of client machines to help with the delivery of software and the playing of video and the fast delivery of business applications.

I realize I have some download-manager software of yours on my own machine. It wouldn’t have occurred to me think much about, but it sounds like, from what you’re saying, that it’s pretty widely used.

Most people have Akamai software on board their own PCs for all kinds of things. If you watch video online, there’s a pretty good chance the player came from us, or at least the tool sets came from us. If you download software online, there’s a pretty good chance that the download manager came from us. If you buy something online, there’s a good chance that you’re using software from us that helps you get your stuff faster and more reliably.

Now, when you say you have machines on other networks, are those enterprise networks at corporations or with service providers?

Today, primarily, our server platform lives in other people’s networks, data centers, points of presence, where they connect into the Internet. We’re in thousands of locations around the world. We don’t operate like an Internet Service Provider in the way that you would normally think about it. But we sit inside 1,100 networks, and we built our own virtual Internet on top of it. So we do our own global routing, our own communication protocols, our own application-layer protocols, to enhance the overall experience that anyone would have in using our customers’ applications. Going forward, I think you’ll see us expand into customers’ hybrid networks and into enterprise networks to deliver the same value proposition there.

Now, as we’ve talked before, one thing that surprised me is that you’re also strong in the security business. Can you tell me more about that, and how you see it evolving?

We do have some additional benefits because of our scale. We are the largest consumer of bandwidth on the Internet, and in some networks, we’re the majority of their bandwidth. By delivering that bandwidth from the edge, we take a lot of the load off the customers’ core infrastructure, which is what allows the Internet to grow into scale. But we defend a lot of the major Web sites against attacks. In the case of a denial-of-service attack, we’ll provide the customer with the volume needed to defend against the attack. In the case of more nefarious attacks, where people are trying to sneak in and change content or trying to take control of the site somehow, we’ll filter out those attacks before they get anywhere near the data center, using our new KONA security solution.

So, then, what’s your largest line of business as a percentage of revenue?

Broadly speaking, the biggest and fastest area of the company is broadly construed as cloud services. This would include things like application acceleration and also our KONA security services. The next biggest chunk is our origional business in content delivery. That’s the delivery of video, software files and static objects on pages.

Your title is chief scientist, and that makes you the guy who’s in charge of looking ahead at what’s shaping the Internet over the next several years. What important trends are you seeing?

There’s several trends we’re looking at. The basic one is that more content is moving online, and I think everyone gets that. What surprises people is that most content is consumed through traditional channels, most commerce is done through traditional channels. That’s all going to change, and everything is going to move to the Internet. Access to the Internet is changing from the desktop to mobile devices. Mobile access is exploding, and in some parts of the world, the first access to the Internet will be through mobile devices like phones. Mobile provides a lot of challenges and opportunities to reach lots of people. I also think we’re seeing a blending of private networks and the public Internet. You see this first through cloud computing, and then ultimately we view it becoming a hybrid network. Branch offices will have a need to run applications on the corporate network behind the firewall, and they’ll need to reach their SAAS applications that are coming through the cloud, and to reach their customers and partners via the public Internet. And these will all become blended.

It occurs to me that given your scale and the types of things you do, you must have to sort through and analyze an awful lot of data. To me, it sounds like a very big example of a big-data kind of problem. How do you handle it?

It’s enormous. It’s bigger by far than the normal things that people mean when they talk about “big data.” We process it in a variety of ways, using a set of in-house tools, and many of them have to be in real time. We direct it to different consumers of the data. We direct information to each of our thousands of customers, and we share data with our network partners. Some of it we publish every quarter in the State of the Internet report. So how we use it runs from one extreme, which is in real time, to another, which is to publish it once a quarter.

“I’m a terrible programmer. I never should have been hired as a programmer, there are so many amazing people out there who don’t have CS degrees who are so much better,” he says.

As software becomes increasingly important to nearly every industry, finding truly skilled software talent becomes a fundamental problem for any company. It’s a problem Desai struggled with as the COO of Sapient, a post he held for 10 years and in which he was in charge of talent acquisition.

Now he’s running a new company called Gild that takes a lot of the uncertainty out of software hiring. Gild has created a service that tracks the code that developers make public on services like GitHub and Google Code. It tracks how that person’s code is accepted for open source projects, and how often other developers borrow from their code or “fork” it.

Gild is a seed stage company just getting rolling, but already it’s won some pretty ringing endorsements; its customers include Facebook, Box, Akamai, RedHat and Constant Contact. It’s backed by a seed-stage investment from Globespan Capital Partners and Mark Kvamme, a partner at Sequoia Capital.

It also just made a key executive hire: Desai confirmed to AllThingsD that Gild has hired Brad Warga, VP of recruiting at Salesforce.com. Warga’s new title will be senior VP of customer experience.

It’s one thing, Desai says, to search through LinkedIn for developers in San Francisco who list experience working with, say, Java. There are probably thousands. Using Gild, he showed me how a search yields 485 Java developers in the San Francisco area who have published code and contributed to various open source projects. And they all have Gild scores. “We know how good they are because we’ve seen their code and reviewed it.”

One in particular — I won’t say his name — stands out with a notably high Gild score of 88. He has started a lot of projects, and many people have forked his code for their own uses. He has also had a lot of code accepted for other open source projects he doesn’t lead. All this information is pulled into Gild from GitHub and Sourceforge and Google Code.

Then there’s other information in his Gild profile. The service connects all the developer’s various social network connections — his LinkedIn profile, his Twitter feed and so on. A little drilling down finds a video of him giving a talk at some conference. “If I’m the hiring manager, and I’m considering this guy, this is very useful information for me,” Desai says.

Hiring at software companies is too often a case of casting a wide net and then sorting through thousands of candidates for the good ones. It’s an inefficient, frustrating process for people doing the hiring. “At lots of software companies, 90 percent of candidates get rejected because they don’t have the necessary skills,” Desai says. “That means they’re batting at about 10 percent and would be excited to raise their average to 15 percent. We think they should be batting closer to 70 percent.”

Weather Channel Cos., owned jointly by private-equity firms Blackstone Group LP, Bain Capital and Comcast Corp’s NBCUniversal, appointed David Kenny as chairman and chief executive. Most recently president of digital-technology company Akamai Technologies Inc., Mr. Kenny, 50 years old, previously had a long career in the ad business.

Read the rest of this post on the original site »

This time the target is Cotendo, a company that uses a network of 30 data centers distributed around the world to put video content physically closer to consumers, and thus speed up delivery, especially to mobile devices. The acquirer is Internet concern Akamai, which says it will pay $268 million, plus the assumption of unvested options.

Cotendo had been reported to be the subject of a bidding war between Akamai and rival Juniper Networks. Breathless reports at the time, sourced to enthusiastic Israeli newspapers, valued Cotendo as high as $350 million. The deal will close during the first half of 2012.

Even at the lower price, the deal marks a nice exit for several U.S.-based venture capital funds. Cotendo raised $7 million from Sequoia Capital and Benchmark Capital in 2009, and then another $12 million in a round joined by Tenaya Capital last year. In June, it took a $17 million strategic investment from Juniper and Citrix Systems.

Cotendo had grown into an Akamai competitor, with a reputation for being faster at some things than Akamai, and also cheaper to boot. That made it an obvious Akamai target, given its history of acquiring rivals — usually after suing them. In 2005, it took out Speedera Networks for $130 million, after a contentious patent lawsuit between them. Akamai had sued Cotendo last November. So the next time Akamai sues someone, set your stopwatch, because the defendant may be the next one to be acquired.

Akamai’s statement on the deal is below:

Akamai to Acquire Cotendo

Combined technology and teams expected to help accelerate pace of innovation in cloud and mobile optimization

CAMBRIDGE, MA and SUNNYVALE, CA – December 22, 2011 – Akamai Technologies, Inc. and Cotendo announced today that the two companies have signed a definitive agreement for Akamai to acquire Cotendo.

Helping to mitigate the challenges of operating in a hyperconnected world, Akamai provides a secure platform over which businesses can engage users across the Web, mobile, cloud, or a mix of public and private network environments. Cotendo offers an integrated suite of Web and mobile acceleration services. The combination of the two companies’ technologies and teams is expected to increase the pace of innovation in the areas of cloud and mobile optimization.

“As we look to accelerate growth across the dynamic landscapes of cloud and mobile optimization, we are excited to be joining forces with Cotendo,” said Paul Sagan, president and CEO of Akamai. “Cotendo’s technology, partnerships and people are a strong complement to Akamai. Together, we believe there is tremendous opportunity for our combined technologies as enterprises embrace the move to the cloud and seek solutions for an increasingly mobile world.”

“The Cotendo team is very proud of our accomplishments in delivering proven and effective solutions for accelerating Web and mobile assets. By combining our innovative technology and employees with Akamai, we expect our customers and partners will gain access to a comprehensive, global platform and wider portfolio of leading-edge services supported by some of the most experienced providers in the industry,” said Ronni Zehavi, CEO and co-founder of Cotendo. “We look forward to working with Akamai in an effort to create the strongest offering in the industry.”

Founded in 2008, Cotendo is headquartered in Sunnyvale, CA, with a technology center in Israel. Cotendo currently has approximately 100 employees, with over 50 based in Israel.

Under terms of the agreement, Akamai will acquire all of the outstanding equity of Cotendo in exchange for a net cash payment of approximately $268 million, after expected purchase price adjustments, plus the assumption of outstanding unvested options to purchase Cotendo common stock. The closing of the transaction, which is subject to customary closing conditions, including regulatory approvals, is expected to occur in the first half of 2012.

“Let’s go. Yes, let’s go.” [They do not move.]

– Samuel Beckett, “Waiting for Godot”

In Internet terms, the removal of Yahoo CEO Carol Bartz happened a dog’s age ago.

In fact, it was September 6.

Since then, it has felt like a slow slog, especially contrasting the situation with that of another troubled Silicon Valley giant, Hewlett-Packard, which fired its CEO Léo Apotheker and appointed a new one, Meg Whitman on September 22.

Since then, in comparison, the former eBay CEO has been like the Energizer Bunny, making a series of major and often difficult decisions, including: Holding onto its PC unit; reaffirming its controversial deal to buy Autonomy; promising a decision on the fate of its webOS unit within the next two weeks; appointing new execs; and even buying a company.

To be fair, Yahoo did acquire advertising start-up Interclick.

Otherwise, still no sale or investment deal. No new CEO. No Asia resolution. And, perhaps most importantly, no clearly articulated strategy going forward.

It’s not that Yahoo’s leadership isn’t working at it.

Some fervently insist to me that there is a “plan,” as if there is some clever game of Internet Stratego going on that I cannot possibly grok.

Mebbe — but of this I have no doubt: The Yahoo board has indeed been huffing and puffing away, weighing and measuring, considering and debating.

A lot.

Maybe I’m just too impatient. I am (ask my kids).

Or maybe Yahoo’s beleaguered employees are, one of whom just wrote me plaintively, “unreal how they can drag this out,” in what has become a common refrain up and down the ranks.

Or maybe it’s the Asian partners, Alibaba Group and SoftBank, who are antsy and have considered a variety of nuclear options in order to get back stakes Yahoo holds in them. Said one: “The strategy seems to be to frustrate and exhaust us into submission.”

Or, finally, maybe it’s the newly frustrated recent bidders for a partial stake in Yahoo, Silver Lake and TPG Capital. Declared one to me after I warned that Yahoo might, in fact, drag the proceedings out longer than you might expect: “I thought you were kidding.”

Nope, welcome to the Yahoo waiting game, PE guys!

So, to help us all get through it, here’s a quick update primer on what’s what on the various fronts:

Who’s in Charge Here?

Technically, it is the Yahoo board, which is aided by interim CEO Tim Morse.

First, a word about Morse: By all accounts, he is doing a very good job as temporary head honcho — calming the troubled company, making swift decisions about daily operating issues and being a generally nice dude to deal with.

“He’s Yahoo’s no-drama Obama, in comparison to what was happening before,” said one exec, in reference to the more volatile regime under Bartz.

Still, despite his very pleasant all-hands meetings, such as one earlier this week, Morse had previously been Yahoo’s CFO and not an Internet-savvy visionary to give the company inspiration. No insult intended, but he’s the accountant guy.

To be fair, he is not meant to be the visionary, but many at the company are yearning for exactly that.

A role that is now being taken up again by co-founder, former CEO and director Jerry Yang, who dozens of employees tell me is unusually involved in operational details these days for a board member.

I get reports of sightings of him all the livelong day: Jerry in demand-side advertising confab! Jerry chitchatting with entrepreneurs from a possible start-up acquisition! Jerry weighing in on a variety of products. Look, over in the cubicle, it’s Jerry!

This is seen by Yahoo employees as a good thing and also a bad thing, since it’s hard to be running your little divisional show at Yahoo with the dude who invented it all looking over your shoulder, even if he means well. People naturally defer to Yang, the 800-pound Web icon in the room.

But, given the overwhelming state of stasis at Yahoo now — “No one can do anything until we find out how the story ends,” said one staffer — and employees eying the exits, no power at Yahoo really matters but the board.

You know, the board that has gotten the company to this moment of crisis and profound ennui, which is its own particularly ironic irony.

To better understand the power dynamics on the board, above is a little chart for you to peruse to give you an idea of which independent board member is running what key committee.

The only truly important one is the Transactions and Strategic Planning committee, which is headed by Intuit President and CEO Brad Smith and includes former Akamai President (and former Yahoo CEO candidate) David Kenny, top HP exec Vyomesh Joshi and other guy Gary Wilson.

And, in completely visible shadow form, Yang. Multiple sources close to the situation said he has been a key force in the strategery around a possible sale or investment.

This has caused not more than a little tension among board members, but everyone seems to like the much described nicest-man-in-the-room, Smith, and hopes his cool head will prevail.

Another important part of the board is the Nominating and Corporate Governance committee run by Patti Hart, who is energetically and simultaneously — if pointlessly — in search of a capable new Yahoo CEO.

Or, as I like to call this mythical person: The Unicorn.

The Deal

As I and many others have previously reported, there are bids on the table for partial investments in Yahoo by two very powerful private equity firms, Silver Lake and TPG Capital.

It’s a PE rumble, with a side of Microsoft financial backing! (I think Silver Lake’s Egon Durban makes a very nice Riff, while Microsoft’s Steve Ballmer is the perfect Officer Krupke.)

My fervent wishes for some figurative and dance-accompanied knife-play aside, the bids are essentially the same in general and different in particular. Silver Lake is offering about $16.50 a share, while TPG is dangling a tiny bit more. Silver Lake has power entrepreneur and VC Marc Andreessen on its side, while TPG is trying to get Silicon Valley fave investor and start-up whisperer Reid Hoffman of Greylock Partners and LinkedIn on its team. Both have ideas on CEOs, strategy and what to do about the Asian assets.

This type of deal could happen suddenly and you’ll hear about it quick, since the losing side will immediately trash it to the media.

As you might expect, each director has their favorite PE firm, with some not liking Andreessen, some thinking the TPG bid is a little light, some for a whole-company deal and some wanting Yahoo to hire its own CEO and run the place itself.

Of course, the last one shows a disturbing level of denial and should be a nonstarter, given the board’s abysmal record on CEO choice and its riding of Yahoo to this sad point in its storied history.

Here’s what to expect on the PE front: A lot of wrangling behind the scenes with frequent leaks to the media about what each side wants and will not yield on.

CEO choice or no CEO choice, that is the question!

Also a big factor are Yahoo’s major shareholders, few of whom like the partial investment deal, which is known as a PIPE (Private Investment in Public Equity), because of the insiderness of it all and because they prefer a whole-company sale at a higher price.

There is also pressure from activist shareholders like Daniel Loeb of Third Point, who has attacked Yang and others on the board and is ready to pounce with a proxy fight if Yahoo tries to override shareholders too egregiously. And, of course, the inevitable lawsuits over any arrangement that seems to block a whole-company bid.

That said, such a mega-deal seems unlikely, since it is too pricey and despite a lot of noise that Yahoo’s Asian partners were ready to strike with a takeover in order to get back Yahoo’s big stakes in their companies.

That’s kind of like buying a store to get back the cool pair of shoes you sold, but bankers love to scheme up this stuff. While it certainly could happen, it would be a bear of a deal.

Perhaps more like Yogi Bear, hopelessly angling for a tasty pic-a-nik basket — but grrrr anyway.

But perhaps the biggest factor in all of this mishegas is time. There is none on a lot of levels, most especially the increasing level of brain drain and drift at Yahoo. After the New Year dawns, this is going to spin right out of control and amount to the biggest internal challenge Yahoo faces.

An Asian Solution

As I and others have reported, Yahoo is entertaining yet another proposal to sell all or part of its Asian assets back to the companies, which make up a bulk of its market valuation.

The relationship between Yahoo and its Asian partners has long been fraught, and today the difficulty of reaching an agreement remains a vexing issue. That’s because it is hard and complex and because no one wants to do what the other side wants.

I am no tax attorney, but it seems as if Yahoo will ultimately come to some deal with China’s Alibaba and Japan’s SoftBank, which could include big investors like Russia’s DST Global.

And, as I reported last week, the Asian partners want to strike a deal with the current board rather than lose leverage with a much cannier new owner.

It’s a tough decision in all aspects to strike, but would remove the focus on the fact that Yahoo’s most valuable asset is something it is not running and simply holds due to a good stock trade in years past.

Years past should be the operative thought here, since the Asian assets have nothing to do with what Yahoo needs to do with its core U.S. and global brand.

You know, the thing that allowed them to buy those lucrative Asian assets in the first place?

Strategery

And that’s the crux of all this, isn’t it? Yahoo needs a new strategy and fast.

Or it needs to clarify and hone its current strategies around advertising and media and define itself once and for all. While it often touts itself as a premier digital media company, it’s still not clear exactly what Yahoo is saying by that.

In fact, incredibly, sources told me that the board was still wrangling over the tired issue of what Yahoo is at its most recent meeting — essentially, is it a products company or a media company?

If I had to listen to that who-am-I-anyway debate again, I think I would scream, given how many important Web trends that Yahoo has whiffed in recent years, many of which were right in its own wheelhouse.

How much damage this has caused to Yahoo’s core business is a critical one to determine, with many feeling the situation is too far gone to revive it and others confident that this is simply an issue of poor execution.

I am in the middle on this one, but all the indicators of Yahoo’s business have long been heading in the wrong direction, and results in the next quarter are expected to underline this even more.

Thus, the board’s navel-gazing at this point is untoward, considering that it is presiding over the possibility of a sale that should not have had to happen in the first place. While it is not quite a fire sale, it’s no cause for celebration at all the attention, either.

In fact, it’s also pointless, since — if this all resolves as it should — the current Yahoo board will not be the one determining the company’s future any longer. Remember that: This group should and will be gone for the most part.

Yahoo shareholders and employees can hope, at least.

Then, it will be up to the next group of leaders to make the very hard choices — including what are likely to be massive layoffs and radical surgery on its offerings — for what’s to come next.

In the end, that is all that will matter. Until then, as usual, you’ll have to sit tight.

It wouldn’t be a bad exit for a bunch of U.S.-based venture capital funds, either. Cotendo raised $7 million from Sequoia Capital and Benchmark Capital in 2009, and then another $12 million in a round joined by Tenaya Capital last year. In June, it took a $17 million strategic investment from Juniper and Citrix Systems.

Cotendo is an Akamai competitor. Its content delivery system uses a network of distributed servers around the world to put content physically close to consumers, and it specializes in speeding up delivery to mobile phones and tablets, which is a lot like the business Akamai is known for. The thing about Cotendo is that it has a reputation for being faster at some things than Akamai, and also cheaper.

Akamai has been known to buy competitors. In 2005, it took out Speedera Networks for $130 million, after a contentious patent lawsuit between them. Part of the story driving the Akamai takeover chatter is the fact that Akamai sued Cotendo last November. Akamai CFO J.D. Sherman will be speaking at a Credit Suisse conference in Phoenix on Wednesday. Maybe he’ll shed a little light on the situation.

Meanwhile, analyst Brian Marshall of ISI likes the idea of Juniper acquiring Cotendo in a joint deal with AT&T. Since AT&T is a big Juniper customer, accounting for about 8 percent of sales, and AT&T is also a big Cotendo customer, it would mean good things for Juniper’s relationship with AT&T. If the numbers being reported are correct, it would amount to about 10 percent of Juniper’s cash on hand, which was about $3.4 billion as of the quarter ended Sept. 30. It would be a much bigger deal for Akamai, which had $688 million in combined cash and short-term investments as of the same date.

Kalanick named names and numbers and shared an astounding number of low points in his speech, which he dubbed his submission for “non-luckiest entrepreneur of the year.” You have to admire the guy for being so levelheaded and funny through it all, at least in the retelling.

Here’s a sliver of a synopsis, though you should just watch the video if you’ve got half an hour:

At Red Swoosh and its predecessor Scour.net, Kalanick was sued by his own potential investor, Michael Ovitz; was sued by media companies for $250 billion and then sold at auction; “started a revenge business” to turn those litigants into customers; kicked out his co-founder; ran out of money; ran into trouble with the IRS; ran through crappy funding deals and crappier acquisition offers from Microsoft and others; and saw his only remaining engineer recruited to Google. And when that news got on FuckedCompany.com, he lost an AOL deal; got Mark Cuban to invest, but had to go back to coding himself; and talked his way into a VC firm, buying out Cuban’s share so he could sign an EchoStar deal.

Then, in 2007, Akamai acquired Red Swoosh for $23 million. And now Kalanick’s new company — the fancy car-service dispatcher Uber — is a tech industry darling. So you can’t feel too bad for him.

Here’s the video:

Akamai president David Kenny has stepped down after a year on the job — and in the midst of Yahoo’s CEO search, where his name has come up as a possible replacement for fired CEO Carol Bartz.

Kenny is also a Yahoo board member — joining early last year — and had quickly become one of the major forces in pushing for change at the company in the wake of the troubled Bartz regime.

In a statement distributed along with Akamai’s Q3 earnings, Kenny said he wants to “to return to my first passion of pursuing emerging opportunities on the consumer Internet.”

You can decide for yourself whether Yahoo represents an “emerging” opportunity or something else.

Sources said the departure from the networking company was mutual, although there has been an increasing amount of tension over Kenny’s involvement on the Yahoo board, which has been working on a massive strategic review.

Kenny, who was the initial leader of the effort, stepped down from that board task and also recused himself from any involvement in the simultaneous search for a new CEO.

Whether he will get the job is not a done deal by any means. He is among several candidates Yahoo has been contemplating pursuing, after only recently hiring Heidrick & Struggles for its executive search.

In fact, it’s not entirely clear Kenny wants to be CEO of Yahoo or if he would want to return to his roots at a consumer advertising agency. Another issue: He currently lives in Boston.

Before coming to Akamai, he was managing partner of VivaKi, the media and digital arm of marketing giant, Publicis Groupe. He came to the French concern after it bought relationship marketing services firm Digitas, which Kenny ran.

All that advertising experience is one of the reasons he is being looked at by Yahoo, which is contemplating doubling down in online advertising platforms and products if it does not sell.

Many assumed that Kenny’s move to the Web platform company meant that it would become more actively involved in Web media itself. But Akamai didn’t make any major moves or acquisitions during his tenure.

Meanwhile, back at Akamai, Kenny’s title will be assumed by CEO Paul Sagan, who had previously served as president as well.

According to sources close to the situation, Yahoo has hired Heidrick & Struggles for its CEO search.

It will be a dicey job, since the effort is on a separate track than the Silicon Valley Internet giant’s wide-ranging strategic review, which is looking at a range of options including the sale of the company.

That’s why many see the move as window-dressing for Yahoo’s board, rather than any real interest in hiring a new leader.

Sources said that will make the search a difficult one for Yahoo, since any CEO candidate would be coming into a very volatile situation. In addition, Yahoo has been struggling — Struggles, struggling, get it? — to recharge its advertising and search business and also its product innovation cycle.

That’s the reason — among several others — that the board of Yahoo suddenly fired its former CEO Carol Bartz last month.

Heidrick has worked for Yahoo previously, in the now ill-conceived placement of Bartz by partner John Thompson. A different partner will be handling this assignment, sources said.

The pool of possible CEOs to lead Yahoo is not a large one, but could includes execs such as Juniper Networks CEO Kevin Johnson, Chegg CEO Dan Rosensweig, Skype CEO Tony Bates, John Pleasants of Disney’s Playdom, Hulu CEO Jason Kilar, Facebook COO Sheryl Sandberg and any number of top Google execs, as well as Yahoo board member and Akamai President David Kenny.

(I am, of course, waiting by the phone for the call.)

A Yahoo spokeswoman declined to comment.

The firing of Yahoo CEO Carol Bartz leaves open one of the bigger and more difficult jobs in tech — one that has taken its toll on many.

Nonetheless, rapper Snoop Dogg stepped right up to the Twitter plate yesterday, as soon as news broke of the ouster.

Tweeted Snoop Dogg:

“Im takn over as tha CEO of Yahoo. Need sum of tha Snoop Dogg content ya digg. Nuff Said.”

Not nearly nuff!

Thus, while the Yahoo board has yet to begin a search, I have already been hard at work on selecting the next CEO.

(Last time, the company took none of my suggestions, but after the most recent result, the directors might want to pay mind!)

Sources said Yahoo is looking for an experienced Internet type, either from inside or outside the company.

“Yahoo has put its flag in the ground as a digital media company with a technology base,” said one source. “The job requires big buckets of expertise and needs someone who will grow the company.”

Here I go with the outsiders:

Peter Chernin: The former News Corp. exec has been eyeing Yahoo for a possible takeover with other investors. Both Yahoo and I had picked him when co-founder Jerry Yang stepped down as CEO almost three years ago, and he had declined the offer. This time, perhaps a big chunk of the company and total autonomy would work, even if making a hit like “Rise of the Planet of the Apes” is more fun.

Sheryl Sandberg: The COO of Facebook is sort of the anti-Bartz, with a smooth and efficient persona, and she is an experienced tech exec. But the former Google exec is at a place of growth at the social networking site, and is unlikely to want to leave the big show, especially since a blockbuster IPO is looming.

Jason Kilar: The Hulu CEO is in the midst of the process of selling the premium video service, with Yahoo as a bidder. While he has some tense relations with the studios, Kilar is top notch in his dedication to consumer products, and has a lot of experience from his stint at Amazon, too.

Dan Rosensweig: Currently CEO of IPO-headed Chegg textbook rental service, the former Yahoo exec never got a chance to run the company as its top leader. Well-connected and still well-liked by the troops at Yahoo, it still would be pretty hard for him to go home again.

Dave Goldberg: Sure, he’s married to Sandberg (see above), but the savvy CEO of polling phenom SurveyMonkey is one of the sharpest thinkers in Silicon Valley. He sold his music company to Yahoo many years ago and has a strong background in consumer online services.

Jon Miller: The chief digital exec at News Corp. almost got the CEO spot years ago when Carl Icahn was agitating for change at Yahoo, before Time Warner blocked him via a noncompete. With the mishegas at the media giant, and dwindling digital businesses there, it might be a good escape hatch for Miller.

Susan Wojcicki: The accomplished Google exec, who runs all its ad products, has the kind of calm, cool, collected persona that Yahoo could use right about now. The search giant was founded in her garage, and she has been a key part of its success since then. Wojcicki is also an understated class act in hey-look-at-me Silicon Valley.

Todd Bradley: The Hewlett-Packard exec just got blindsided when the company kicked webOS to the curb. While he is in line to run a possible spinoff of the device business, Bradley might also want to jump out of the frying pan into the fire.

Mike McCue: The CEO of Flipboard would certainly energize Yahoo with his intense focus on quality and consumer delight. The news app start-up could be a good addition to Yahoo, and McCue, the former Netscape and Microsoft exec who is well-liked in the Internet scene, would be, too.

Joanne Bradford: The former Yahoo advertising head bolted Bartz’s regime early on to run revenue for Demand Media. Well-liked in the ad business, she also knows where all the bodies are buried at Yahoo. Since ads and media are key at the company, she’d make an interesting choice.

Yusuf Mehdi: The Microsoft online exec would also be a left-field candidate to run Yahoo, given his even-keeled personality and longtime experience in the sector. And, though pricey, Mehdi’s impact on Bing search has been important. But he’s also been involved in the software giant’s lackluster ad and search partnership and still has not turned around the situation at MSN.

Kevin Johnson: The former Microsoft exec and current CEO of Juniper was once slated to be the CEO of Yahoo, had Microsoft managed to win the company in its hostile takeover attempt. In fact, Johnson was the architect of the idea of Yahoo running the media and Microsoft running the tech.

Tim Armstrong: Well, he might have been a good candidate before the downward slide of AOL and a recent series of questionable judgments. If Armstrong can’t keep a loud tech blogger in line, it’s not clear he can wrangle the Yahoo beast.

And here’s the insider scoop:

Ross Levinsohn: The former News Corp. exec is running the Americas for Yahoo, which puts him in charge of the company’s key businesses. But he’s still struggling to turn the ad business around, and how well he does that could be a major determinant of his success. But fantastic hair!

Blake Irving: The former Microsoft exec has an amiable nature and is well-liked at Yahoo, but he still needs to show that the company can ship some innovative products, and quickly. Like Livestand, the news reader, which is muchly late.

David Kenny: The Yahoo board member is now president of Akamai, which might preclude him from the job. But the well-regarded exec — he’s a snazzy dresser, too — ran one of the Internet’s top digital ad agencies and now has tech chops from the content delivery network.

Memo to Yahoo board: I have a million more ideas, from former Viacom exec Tom Freston to former Yahoo board member Eric Hippeau. Or why not bring back a passel of former Yahoos to advise, such as former CEO Terry Semel or former president Sue Decker?

Or Oprah! I hear Winfrey will be in Silicon Valley later this week, and she has a lot more free time now.

Like Snoop Dogg, she would fo shizzle be the bomb to cover.

Related posts

• As Yahoo Continues to Wobble, Investors (And Board) Eye Options
• Exclusive: Carol Bartz Out at Yahoo; CFO Tim Morse Named Interim CEO
• Carol Bartz’s Last F%*& You — Now Aimed at Yahoo Board
• Yahoo’s Statement on Bartz Ouster
• Wall Street Likes Bartz’s Firing — Yahoo Stock Spikes on News
• My Picks for Yahoo’s Next CEO — Maybe Snoop Dogg, Ya Digg?

Yahoo is preparing to hire investment bankers and other strategic advisory firms, said sources close to the Silicon Valley Internet giant, as it seeks to figure out what to do next at the company.

The board of Yahoo, which ousted its CEO Carol Bartz today in a unanimous decision, is exploring a range of possible strategies to turn around its moribund growth, including possible acquisitions, shedding units, bringing in new investment partners and even taking the company private or selling it.

A sale is the least likely of options, said sources close to the situation, but — given today’s news — Yahoo might attract a lot of attention from investors seeking to take advantage of the company’s powerful but troubled assets.

“It is all on the table,” said one source close to the company.

Independent board member David Kenny, president of Akamai, is heading the strategic options committee in charge of managing the process, sources said.

No adviser has been selected yet, but sources said Yahoo is likely to hire Allen & Co., which advises many tech and media firms. It is currently advising AOL, for example.

Other candidates would likely be the typical panoply of choices, including big investment banks like JPMorgan Chase, Goldman Sachs and Morgan Stanley, and smaller boutique firms such as Qatalyst Group and Code Advisors.

Sources said whoever is hired will be charged first with doing an extensive review of the company that is more intensive than has been done before.

“There is a potential for enormous growth that the company has not been capitalizing on and should,” said another source. “The board needs to get this company on a trajectory for growth.”

Indeed, it does, as it has not under the leadership of Bartz. Revenue growth has stalled and product innovation has lagged.

The company will also be conducting a search for a CEO, which will be difficult because any new top exec will want to be part of such a companywide review.

Yahoo’s choice of an executive search firm has also not been determined, but is likely to be one of the big companies that specialize in the arena.

One thing is certain, said multiple sources: Yahoo will continue to focus itself as what it has previously called a “premier digital media company.”

What that means now, of course, will be determined in the months ahead.

Related posts

• As Yahoo Continues to Wobble, Investors (And Board) Eye Options
• Exclusive: Carol Bartz Out at Yahoo; CFO Tim Morse Named Interim CEO
• Carol Bartz’s Last F%*& You — Now Aimed at Yahoo Board
• Yahoo’s Statement on Bartz Ouster
• Wall Street Likes Bartz’s Firing — Yahoo Stock Spikes on News
• My Picks for Yahoo’s Next CEO — Maybe Snoop Dogg, Ya Digg?

But now the carrier is apparently getting serious. Ma Bell is announcing an initiative on Wednesday to greatly expand the services it offers in this area.

AT&T is hoping to take on folks like Akamai and Limelight Networks by offering what it claims will be a combination of faster speeds and lower prices.

“Our CDN (Content Delivery Network) technology not only delivers videos and other attention grabbers at lightning speed, but it delivers them efficiently and at low cost,” AT&T Assistant Vice President Sam Farraj said in a statement. AT&T said the new and improved CDN service should be available for customers by the third quarter of this year.

It’s part of a broader effort by the company to get into all those “cloud services” we hear about these days.

For now, the company is driving the service from its 38 Internet data centers around the world, though it plans to push content even closer to the customer in the coming years — potentially locating the files in smaller facilities, such as the central offices used to feed data and telephone traffic to homes.

AT&T has an incentive to do this beyond just making money from the CDN business. Bringing content closer to customers could also cut down on the amount of traffic being carried on its networks.

Except on the Web, where all of our tweeting and reading and live-streaming about it isn’t generating nearly as much traffic as other big events of the last decade.

Here’s a look at the last day of Akamai’s “Net Usage Index For News,” which is pretty much what it sounds like: It tracks interest via page views. Note the spike last night:

Akamai says traffic peaked around midnight, at 4.1 million page views per minute, which sounds like a lot. But it’s not that much–it’s not enough to crack Akamai’s top 10 list, or even its top 14 (the Internet infrastructure company has been tracking this stuff since 2005).

If you want to really make waves on the Internet, it turns out, your best bet is to involve soccer, as four of the top five biggest Web news events did. Sports in general is a good bet–it accounts for seven of the top 14:

The obvious asterisk here is that the bin Laden news broke late on a Sunday night, when a good chunk of the U.S. was headed to bed and most Europeans were presumably fast asleep.

Had this popped on a weekeday, during daylight hours, it’s reasonable to think this would have been much, much bigger. Maybe not soccer big, though.

One of the results of Yahoo’s weak earnings report earlier this week has been the renewal of chatter about possible changes in its leadership and even ownership.

And continued investor discomfort with its troubled stock price–Yahoo shares are down 7.25 percent year over year and an astonishing 49 percent on a five-year basis–and the level of renewed grumbling by major institutional shareholders is causing some key players to go back to their PowerPoints to reevaluate various options.

(By way of contrast, Google is down about 4.5 percent year over year–largely due to last week’s earnings release with higher than expected expenses–but still up more than 20 percent for the five years.)

As many might recall, last year Yahoo was under scrutiny by a number of interested parties–from big media companies to other digital players to private equity firms–considering a number of takeover scenarios.

Most of them were just talk and no action resulted, but that did not mean that interest went away.

The truth is, they are still out there and ruminating–this time with what sources describe as a much more amenable Yahoo board, with several of its key members willing to entertain any legitimate offers or ideas to improve the Silicon Valley search giant’s prospects.

In the last go-round, by contrast, Yahoo’s top execs–including CEO Carol Bartz–denied any interest in the swirl of rumors related to a variety of ideas.

That’s definitely changed–at least at the board level–so here are three very credible scenarios of what could happen:

Peetie, Peetie, Yahoo-Sweetie

Late last year, BoomTown wrote a post about the interest that former News Corp. COO and President Peter Chernin–who now owns his own entertainment production company–had in the situation at Yahoo.

As I wrote in November:

But multiple sources from a variety of sides said that Chernin, a well-liked and deeply experienced media and entertainment exec, has been contacted by a number of private equity firms and other investors about his interest in becoming involved should any of the various and sundry scenarios around the Internet giant pan out.

And Chernin, many sources said, has expressed a definite interest in the situation, perhaps because he was deeply involved in a previous deal when running News Corp.

At the time, it involved combining the media giant’s Myspace social networking site with Yahoo and also Microsoft’s portal MSN and creating a new company, code-named “TrafficCo.”

Indeed, that interest remains for Chernin, who has also been an increasingly active investor, including in the digital sector. He is an angel funder of the hot social media app start-up Flipboard, and also just joined the board of the popular Pandora music service.

The most likely possible scenarios have him joining with deep-pocketed partners, including Providence Equity Partners and, yes, Microsoft, as well as investment banks or advisory firms, such as Morgan Stanley and Code Advisors.

The approach being considered–which would only be done in a friendly way, with the cooperation of Yahoo’s board–would center on making a large enough investment in its shares, allowing the group to take control of the management and the board, putting Chernin in as chairman and maybe CEO (or with a new CEO–see next section).

If Microsoft were involved–and Chernin has strong ties there–such a scenario might include folding all its online properties into Yahoo and renegotiating its rocky search partnership, too.

This is an idea that intrigues a lot of people–including current Yahoo board chairman Roy Bostock, co-founder Jerry Yang and other board members–who have indicated recently to several investors and dealmakers a willingness to listen to credible player such as Chernin.

But, in this scenario, it would be up to Chernin and his partners to make a prosposal, said sources, and he might decide that the complexity of getting the power to make big changes at Yahoo is too big to tackle.

In addition, Chernin remains a successful Hollywood player, with several major television and movie projects in the works, as well as big investment possibilities in Asia.

“Does he want the headache of Yahoo at this point in his career?” asked one person, among many Chernin has talked to recently about becoming involved in the company. “Would you?”

Maybe so, if it would provide a big financial windfall. Many think an exec with a reputation like Chernin’s could easily begin to move Yahoo’s moribund stock upward quickly.

ABC (Anybody But Carol)

Here’s one truth: Yahoo CEO Carol Bartz does not get proper credit for a number of moves she has made since coming to the company two years ago, including cleaning up the messy corporate structure, de-complexifying garbled systems, cutting costs and bringing its far-flung operations into line.

Yahoo’s stock is certainly doing better than when she arrived in early January of 2009, when it was in the $12 range compared to its current $16 price point.

But here’s another: That stock price now includes more than $10 in solid assets–cash and Yahoo’s much more valuable stakes in China’s Alibaba Group and Yahoo! Japan–leaving very little true share appreciation.

And here are more truths: Bartz’s inability to get revenues growing, innovations flowing, promising start-ups acquired and–most importantly–to stop the continual exodus of talent out the door of Yahoo has made her tenure shakier than ever.

Add to that making its relationships with Asian partners more tense, almost no traction in key mobile, video and social arenas, a record of loud public declarations that have fallen flat and serious troubles in Yahoo’s search and online partnership with Microsoft–a deal Bartz struck and is charged with managing–recently highlighted in Yahoo’s earnings earlier this week.

As shareholder activist Eric Jackson, who has long agitated for change at Yahoo, wrote this week in a post:

“The truth is that investors are fed up with Bartz. Their enmity towards Bartz is palpable when you talk to them. Bartz talked a big game coming into the job and she hasn’t delivered. It’s that simple.”

Well, not that simple and maybe not fair, but it’s also clear that no one thinks Bartz will be re-upped when her contract is up in 18 months.

Thus, it’s no surprise that ideas of other possible leaders of Yahoo are being contemplated now.

Here’s the short list I have made of my choices: Akamai President and Yahoo board member David Kenny; former Microsoft exec and current Juniper Networks CEO Kevin Johnson; former AOL CEO and current News Corp. digital head Jon Miller; and Nikesh Arora, current Chief Business Officer and sales head at Google.

There are plenty more to pick from, of course, and any could be installed in conjunction with an effort such as Chernin’s.

AOL Under the Hoop

No good Yahoo scenario plotting can be contemplated without including AOL and its flashy CEO Tim Armstrong.

Armstrong has made no secret of wanting to get ahold of Yahoo properties to apply the strategy he has been trying at AOL to get it moving again.

Which is: To become the premiere digital media company.

Which is actually Yahoo’s new motto–although arguably, in word and deed, Armstrong has been much more active in pushing the concept and narrative.

That includes his incessant acquisitions of all kinds of online media properties, including the big fish–the $315 million purchase of the Huffington Post and the coronation of its even-flashier co-founder Arianna Huffington as content chief.

Armstrong has certainly not been averse to the idea of a Yahoo-AOL hookup with him at the top, and has been actively talking to anyone interested in such a deal.

And things could get a lot more interesting if AOL linked with a bigger strategic partner, such as News Corp. or Disney or even Google, Armstrong’s former stomping grounds.

Still, wishing does not make it so, especially with a much smaller and weaker set of assets than Yahoo and a still poor record on goosing its advertising sales.

AOL’s stock is down 30 percent year over year, as investors still worry about Armstrong’s ability to turn the company around, which kind of puts him in the same situation as Bartz.

“AOL is waiting under the hoop for whatever happens, which is a good place to be,” said one person close to the situation. “Why not?”

Why not, indeed–so, let the games begin.

Today and tomorrow, Yahoo’s directors are gathering here in Silicon Valley for one of their regular meetings that take place over the course of the year.

While board meetings in general are usually pretty dull affairs–and Yahoo’s, in particular, are typically glacial ones–there is a lot on the plates of those with purview over the machinations of the long-struggling Silicon Valley Internet giant.

Here’s a primer of what might (and might not) be happening, according to sources, of course, as Yahoo continues on its quest to reinvigorate itself–a journey that is beginning to make Siddhartha’s transformation into Buddha enlightenment look speedy.

A Yahoo spokeswoman declined to comment on anything below, although I did run it all by them.

The U-Shaped Turnaround

At Yahoo’s recent sales meeting in San Antonio, CEO Carol Bartz went all Sesame Street on the troops, using the letter “U” as an illustration to indicate where in the cycle the company was in its turnaround.

Apparently, just on the other side of the very bottom of the letter, heading inevitably upward.

Her argument was that the company has finally cleaned up its platform mess and its confusing corporate structure, and that its display and search advertising business is now recovering nicely.

All true, except there are some other key issues, such as the slowness of the search and online advertising partnership with Microsoft to make some serious hay.

In fact, although its display business will show a definite strong recovery in Yahoo’s quarterly results next week, its search business–both in market share and revenue per search (RPS)–has, as one person close to the situation put it succintly, “fallen off the cliff.”

That’s due, in part, to getting the new system with Microsoft delivering better results, which is not happening yet (if ever!).

In this quarter, Microsoft has honored its contractual guarantees and will make up the difference–which will result in masking the magnitude of the RPS loss. It’s a worrisome trend to watch.

The Asia Situation

Yahoo and its Asian partners are still mulling over various options regarding the company’s large ownership stakes there.

What is happening with its share in China’s Alibaba Group, according to sources, is precisely nothing right now, as has been made clear in recent comments by its CEO and co-founder Jack Ma.

“If you cannot make the business cool, you have no right to be angry with me,” said Ma in an article in Forbes published this week, referring to Yahoo. “I just don’t trust them…I’ve been working with them for years, and I’m disappointed.”

Relations between Ma and Bartz, sources said, remain as bad as ever, and even the normally close one between Ma and Yahoo co-founder Jerry Yang is strained.

Plus, Ma told Forbes, as he has said before, Alibaba is not taking its auction site, Taobao, public–leaving Yahoo in possession of an appreciating but decidedly private asset.

Japan is a different story, with the disposition of Yahoo’s stake in Yahoo! Japan the subject of long and continuing negotiations for a while now.

While the earthquake and tsunami crisis there did slow discussions down, there is still active recent movement about a variety of cashing-out scenarios, all of which have massive tax and regulatory issues.

Without boring you with the specifics, one option is to create a tracking stock, another a spin-off of the asset and still another some sort of stock trade.

But no matter what happens, Yahoo will have to pay some sort of taxes on its 35 percent stake in Yahoo! Japan, now worth $8 billion.

But if its CFO Tim Morse–the key figure working on the deal–can pull it off, what will Yahoo do with all that money?

Acquisition Guns Blazing? Or Sputtering?

In a recent forum in Silicon Valley, one of its M&A minions said Yahoo had its “guns blazing” with regard to acquisition activity in 2011, as deliciously reported in The Wall Street Journal, despite the company’s lackluster acquisition record.

Sources said the exec had his ears soundly boxed by his managers for the dopey remarks, since Yahoo has had such a lackluster record in the arena–especially compared to others.

And, oh yes, Yahoo’s M&A head just decamped to gaming phenom Zynga.

That aside, Yahoo should be deep in the market for hot start-ups to help revive its innovative spirit, but it remains hindered by a continued reluctance by new start-ups to join it and by its reputation for being a place where entrepreneurs go to die.

That certainly could change at any time with the right execs in place, but Yahoo is competing with a plethora of more exciting companies and also a seemingly endless venture capital gusher of cash of late.

While it is the board’s job to approve acquisitions and not source them, perhaps it is its job to pressure Bartz and other execs to get off the stick and hit at least one of the targets Yahoo aims at.

Targets are plentiful in advertising, content and even social, with many start-ups playing right into a lot of arenas Yahoo needs some help.

And help it does need as talent keeps walking out the door daily, mostly to hotter prospects such as Zynga and social buying sites Groupon and LivingSocial.

There is no question it is hard for any large company to hold onto top staff when there are so many enticing bonbons out there as options, but it can be done.

One good thing: Its newish head of product Blake Irving and head of U.S. media and advertising Ross Levinsohn seem to be playing well together and are setting a tone of stability that is much needed.

Enter the Kenny

That said, there remains endless swirl, especially with key investors, about the performance of its CEO.

While she started off as a publicly in-your-face exec, Bartz has definitely stepped out of the limelight of late, as her pugnacious manner started to irritate Wall Street and others.

It was a good idea, since it has taken the focus off the lack of stock and revenue progress she had loudly promised.

Still, Yahoo shares have continued to stay locked in the mid-teens, as investors wait for some sign that Bartz’s turnaround has worked.

The entrance of its spanking new director, Akamai President David Kenny, has further increased speculation about management and board changes at Yahoo.

This is Kenny’s first board meeting, but this well-connected newbie is someone who is clearly going to rise quickly to the top of decision-making at Yahoo.

That’s because the smooth and well-liked Kenny, who also has deep advertising experience as founder of the Digitas agency, has a long relationship with Yahoo and also with Yang.

He also now has much more tech cred as a leader of one of the Internet’s most important infrastructure companies, with a ton of regular contacts with media giants, ad networks and video providers that are Akamai’s clients.

In other words, Kenny (pictured here) is the full package of ad and tech experience that would make him an obvious Yahoo CEO candidate when Bartz’s contract is up in early 2013, if not before.

He’s also the person most likely to take over for longtime BoomTown punching bag Roy Bostock as chairman of the board at some point.

None of this is happening soon, but it is clearly an interesting development.

There are other machinations, of course, from continued interest from private equity players in Yahoo, as well as a variety of takeover scenarios, each more complex than the next.

While often derided as yesterday’s news by the elite of Silicon Valley as on an inevitable downward path, those plots are there because Yahoo remains a stellar brand with consumers worldwide and an Internet property with huge traffic and a big ad business.

In other words, it’s a U that someday maybe could be a V.

There’s so much going on at Salesforce it’s hard to keep track of it all. We talked a bit about Chatter.com and the result of the company’s efforts to promote it during the Super Bowl, and also about the state of mobile devices and where its priorities are. But I started with a question about Japan.

NewEnterprise: Everyone is talking about what’s been happening in Japan. You have a data center under construction there. Has there been any effect on your plans?

Harris: No. The data center is in Tokyo so it’s outside of the area directly impacted by the earthquake. We chose the location not only for the earthquake-proof nature of the building, but also for access to diesel generators, which have proven pretty important given the power situation. There’s been no interruption at all in what we’re doing.

So what are your pain points, what are you dealing with this year? Judging by your growth I’m guessing the list is long.

The big one is around trust, reliability, availability and scalability as we grow. I would say it’s not the biggest pain point that we have because we’ve been focused on it for so long. We did have a period several years ago when we had a lot of issues. I think a lot of major services go through that: eBay, Google and Twitter are all examples. I think that’s because none of them are the same. They all grow organically as the customers and technology grow. Chatter is a big focus now.

Speaking of Chatter, how did the Super Bowl ad for Chatter.com work out?

The Super Bowl was an interesting challenge because we had to make sure we could handle the load of Super Bowl traffic. We have an interesting relationship with Will.I.Am. He’s a friend of Marc’s. They started in this odd place where he wants to get into technology and wants to expand his brand. And Marc started talking to him about collaboration. And it was kind of a crazy idea. It was kind of a consumer play with the Super Bowl. Chatter.com is kind of a pro-sumer product where we want individuals to use it. We didn’t really think people sitting on the couch drinking beer would use it right away. But we knew it would attract some attention, but the after effect of discussion around the ad, the YouTube video of the making of the ad, and all the talk around it had a good effect. It got me ready to make sure I had a Web site that could handle a lot of traffic. We partnered with Akamai to cache a lot of the static content. We did a lot of testing of the sign-up process during spikes and peak loads.

Did you the see the spike you hoped for?

We saw a huge spike in traffic to the Web site and traffic to the sign-up page through the following week. A lot of it was from phones, from people sitting on the couch. This is part of our transformation to what we call Cloud 2.0 that we’ve been talking about so much. Historically our Web sites didn’t work on mobile devices that well. Our app didn’t work that well. Chatter.com was a case where we did the mobile version first.

What are you working on right now?

With Chatter it’s about adoption, and how do we get people outside your company collaborating with you. We kind of do that now, but there’s stuff we need to do in the product to make it more usable. That would be a big next step for Chatter. In the Service Cloud we want to reinvent the low end. We’re taking Chatter as an influence, and we look at cool little companies like Zendesk, which does a nice job at the low end of the market. We want to reinvent the portal experience with a Chatter influence on the Service Cloud. On the Sales Cloud we want to focus a lot on the sales rep’s experience, and I think mobile is a big factor there. Phones are a big deal, but tablets are an even bigger deal. So we’re doing a lot of design work and experimentation around the tablet experience. And how much do we re-think our experience on the tablet.

I’ve heard some people say that if you want to invest in the future of the iPad and think Apple stock is too expensive, then Salesforce is a good bet because you’re doing so much on that device. Do you think that’s fair?

We’re paying a lot of attention to the iPad. But we’re expanding that to a tablet focus. We definitely think Google’s Android will get a lot of adoption. It’s a fragmented market still but they’ll get there. I think the iPad is still winning in the enterprise. We don’t want to underestimate Android.

What do you think of HP’s WebOS? Léo Apotheker had a lot to say about that yesterday. Do you have any interest there?

We’re not keeping an eye on that right now. We’re looking at Research In Motion’s Playbook and seeing where that goes mainly because we have a ton of people who use the Blackberry in our customer base. It’s still the best email device. I gave mine up for an iPhone, but for cranking through email it’s still better. And because of our close relationship with RIM we’re going to see if there is something we can do with the Playbook. The mobile space is a hard place to make bets. So we’re working hard on our HTML5 strategy so that we can have something that will work that’s cloud based with other devices.

Eric Hippeau (pictured here), longtime Yahoo board member and one of its earliest investors, will be stepping down as a director, according to sources close to the situation.

In a related move, sources said Akamai President David Kenny will be joining the board of the Internet giant.

The changes become official at Yahoo’s regular board meeting on Tuesday, although Hippeau will not step down until the summer.

Rather than quit immediately, as previous board members have, he will not stand for election at its annual shareholder meeting in June.

The departure of Hippeau and the arrival of Kenny comes at a critical time for Yahoo, which has been under great pressure from investors to revive its growth and re-ignite innovation in the face of more nimble competitors.

Under CEO Carol Bartz, the company is still in the midst of a turnaround, and Wall Street has been losing patience with her and also its somewhat ineffectual board.

Hippeau has been on that board since 1996, which is approximately 132 years in Internet time.

The longtime Web investor and publisher–at Softbank and Ziff-Davis–has a lot of online experience.

Sources said Hippeau felt he had been on the board long enough and it was time to go. It has certainly been a wild ride, from insane Web 1.0 hypergrowth to a bruising takeover fight with Microsoft.

The addition of Kenny to the board is a welcome one. As BoomTown has previously reported, Yahoo had tried to bring him on before and he declined.

With both tech and advertising experience, Kenny is also a natural possibility for a board leader, as well as a potential top exec if Yahoo keeps going sideways.

According to his bio at Akamai, which he joined last fall, he is “responsible for leading Akamai’s business operations, including the company’s product groups; global sales, services, and marketing; engineering; and networks and operations.”

Before Akamai, he ran VivaKi and was a member of the management board of its parent, Publicis Groupe, the huge ad and marketing company.

Kenny ran Publicis’s overall digital and interactive strategy. He came to Publicis after it bought Digitas, where he was chairman and CEO.

Before that, the Harvard Business School graduate worked at consulting firm Bain & Company and also in marketing and strategy at General Motors.

A Yahoo spokeswoman declined to comment and Hippeau did not respond to an email query. And an email to my new bestest friend Kenny also got no response.

Which means it could all be from the Island of Pretendistan, which supplies a good portion of the stuff you see every year at CES.

But! It’s possible that “UltraViolet,” the super-ambitious/probably-way-too-unwieldy coalition of just about every big media and tech company except Apple, may actually work. If Steve Jobs will let it.

The big idea behind UltraViolet is that it will let consumers purchase media that can work on multiple devices, using a cloud-based “rights locker.” So someone who bought, say, a “Harry Potter” DVD can watch it on their Blu-ray player, but also on their iPad, or their friend’s Google TV, or whatever.

It’s supposed to start rolling out this spring, and it’s a good idea. In theory.

In practice, even if the group putting this together–everyone from Akamai to Sony to Microsoft to Time Warner–can get the technology to work on every platform, the fact that Apple isn’t playing along is a huge problem. The music industry used to have a “works on most devices except for Apple” standard, and it was called Windows Media Audio. Remember? No?

But today Akamai, which is powering the back end for UltraViolet, will demo a version of the service on four devices: A Windows-based PC, a Mac, an iPad and an iPhone.

The UltraViolet people still don’t have Apple’s buy-in on the project, but the demo is meant to prove that the coalition can still work with Apple’s products, even if Apple doesn’t formally sign up. They’re accomplishing that by playing the Mac stuff on a Web browser, and on the iPhone and iPad via an iOS app that Akamai hasn’t submitted to Apple yet.

But the Akamai people say they don’t see why Apple will have a problem with the app, and stress they’ve been working closely with Apple to make sure that their tech synchs with the iOS platform.

They could be right, too. Apple lets plenty of other companies sell products that compete with Apple’s own media offerings via the App Store: Amazon’s Kindle, Pandora, Hulu, Spotify (sort of), etc.

If so, then UltraViolet really could pan out, if the coalition doesn’t screw it up with byzantine restrictions and pricing tiers–$X amount for a DVD, $X+Y for a DVD with iPhone privileges, etc. (It’ll probably do just that, actually.)

Still, Steve Jobs has been very successful at tending a walled garden. And if UltraViolet really works, it means he’d be letting someone else manage Apple customers’ media, and letting all that work he’s put into nurturing the Mac/iTunes/iOS ecosystem go to waste.

Theoretically possible. But so is a lot of the stuff we see at CES that never shows up anywhere else.

AKAMAI DEMONSTRATES DELIVERY OF ULTRAVIOLET ENTERTAINMENT

· Prototype unveiled at CES for delivering content that meets the UltraViolet specifications
· UltraViolet is a new industry standard that makes it easier for consumers to purchase, access and watch digital entertainment from a variety of locations and devices

2011 International Consumer Electronics Show, Las Vegas – January 6, 2011 – Akamai Technologies, Inc. (NASDAQ: AKAM), the leading provider of cloud optimization services, today announced its involvement with the Digital Entertainment Content Ecosystem (DECE) LLC, and demonstrated a prototype for delivering digital home entertainment content according to DECE’s recently announced UltraViolet specifications. UltraViolet represents a new way for consumers to enjoy greater choice and flexibility in how, when and where they collect and watch digital movies and TV shows.

While not yet commercialized, the prototype Akamai unveils at the Consumer Electronics Show (CES) will detail how its video delivery platform will allow consumers to experience UltraViolet movies and TV content they have purchased. It is also designed to enable retailers to more easily bring UltraViolet services to market. When consumers buy UltraViolet entertainment, the access rights to that content can be stored in their UltraViolet account and digital locker, which is accessible across multipleplatforms and devices. In addition to easy access, UltraViolet is designed to increase the value of digital entertainment by enabling streaming as well as download and burn to physical media functionality.

“One key facet of UltraViolet’s open-specs design is the ability for world-class infrastructure and B2B service providers like Akamai to accelerate retailers’ deployments, with premium-quality enablement and delivery on a cost-efficient basis,” said Mark Teitell, general manager of DECE. “As a member of DECE, Akamai’s prototyping of this UltraViolet experience is a great example of how individual companies’ initiative and market development will combine with our industry-standard technical specs to bring UltraViolet to consumers this year.”

The integrated Akamai video delivery platform and the UltraViolet digital locker are designed to enable leading retailers to quickly bring premium, turn-keyUltraViolet-compliant services to market. Beginning with the sale of physical media like Blu-ray discs that come with UltraViolet, retailers will be able to extend their relationship with consumers to include UltraViolet-compliant services to stream high definition content to connected devices such as Internet TVs and Blu-ray players, and mobile apps for smartphones and tablets.

“Over the last decade, Akamai has had the privilege of working with the top retailers, consumer electronic manufacturers and media and entertainment companies to accelerate their websites and enable high-quality digital media experiences,” said Steven Chester, Akamai Vice President of Film. “Akamai believes that our distributed global network is uniquely able to provide the scale, security and quality required for the industry’s next phase of business model innovation. Akamai’s goal is to enable retailers and content providers to take advantage of the incredible opportunity presented by UltraViolet, and be a part of bringing the next generation of premium home entertainment services to the market.”.