On the game’s first day, it achieved $500 million in sales, setting a new record for the Santa Monica, Calif.-based game publisher.

Last year, it took 16 days for Call of Duty: Modern Warfare 3 to hit $1 billion. Both games achieved those stratospheric numbers faster than the movie “Avatar,” which took 17 days to hit $1 billion at the box office.

The other big shooter released this season, Halo 4, which is only available on the Xbox, sold $220 million in its first day on sale.

The sales figures are according to internal company estimates and Chart-Track, which keeps tabs on retail customer sell-through information. The game, while rated “M” for “mature” because of the intense violence and strong language, reaches an enormously broad audience for a first-person videogame that takes hours to master.

In a release, Activision Blizzard’s CEO Bobby Kotick said, “Since Call of Duty was launched, cumulative franchise revenues from players around the world are greater than current worldwide box office receipts to date for the top-10 grossing films of 2012 combined. Life-to-date sales for the Call of Duty franchise have exceeded worldwide theatrical box office receipts for ‘Harry Potter’ and ‘Star Wars,’ the two most successful movie franchises of all time.”

Many say the comparisons to movies are not fair, since a trip to the theater costs roughly $10 apiece, while Call of Duty costs $60 to own. However, a movie takes about two hours to watch, whereas the game can be enjoyed for weeks. For example, since the game’s launch, more than 150 million hours have been logged online playing Call of Duty: Black Ops 2 through Xbox Live and the PlayStation Network.

Activision just confirmed that its big first-person shooter of the year has racked up $500 million in sales on opening day, setting a new record for the Santa Monica, Calif.-based game publisher.

That easily outguns first-day sales of Halo 4, which Microsoft said on Monday totaled $220 million. Activision’s war-themed title also easily beats last year’s blockbuster release, Call of Duty: Modern Warfare 3, which achieved $400 million in sales within 24 hours, and about $1 billion after 16 days.

These big videogame titles are often compared to more general entertainment releases, like first-day sales at the box office, given their size and scope. The criticism of using that metric is that one game costs $60 versus the $11-or-so that it costs to go see the new “Twilight” flick. However, the counterargument is that a $60 game is much more of a commitment, and will take even the most savvy players weeks to finish, whereas a movie is snack-sized at only two hours.

Here’s Activision Blizzard’s CEO Bobby Kotick drawing the obvious Hollywood comparison:

“With first day sales of over half a billion dollars worldwide, we believe Call of Duty is the biggest entertainment launch of the year for the fourth year in a row,” Kotick said. “Life-to-date sales for the Call of Duty franchise have exceeded worldwide theatrical box office receipts for “Harry Potter” and “Star Wars,” the two most successful movie franchises of all time.”

On Monday, Microsoft claimed that Halo 4 beat box office releases like “Harry Potter and the Deathly Hallows: Part 2” and the “The Avengers” — based on day-one sales in the U.S. Halo 4 is sold exclusively on Microsoft’s Xbox, whereas Activision’s Call of Duty sells across the Xbox, PlayStation 3 and, two days from now, Nintendo’s Wii U.

Metacritic, which aggregates videogame reviews from various game publications, gave Microsoft’s Halo 4 an impressively high score of 91, based on 37 reviews, compared to Call of Duty: Black Ops II, which received an 84, based on 48 scores.

The results easily beat the Santa Monica company’s outlook, which was hoping to achieve six cents a share on revenue of $740 million. The results also beat analyst expectations, which are better to compare against the company’s non-GAAP earnings. Based on those calculations, which exclude some results, Activision reported 15 cents per share in profit on revenue of $751 million. That literally blows away analyst expectations, which were projecting eight cents per share in profit on revenue of $708 million.

The company’s forecasts are typically conservative, but in the release, CEO Bobby Kotick attributed the strong results to subscription sales of Blizzard’s World of Warcraft: Mists of Pandaria, Diablo II; Skylanders Spryro’s Adventure; and sales for its Call of Duty franchise.

Thanks to today’s strong performance, the company is raising its full-year guidance for the third time in 2012. The new revision calls for GAAP earnings of 88 cents a share on revenue of $4.57 billion. Previously, it was expecting a profit of 69 cents a share on revenue of $4.3 billion.

Kotick still cautioned investors about next year, warning that it continues to be a challenging global economy and that it will be extremely hard to beat this year’s performance given record-shattering sales of Diablo III. “We expect that over the long-term, we will maintain our leadership position as the world’s leading interactive entertainment company and continue to provide strong returns to our shareholders by delivering great games to audiences around the world,” he said.

But he said Skylanders: Spyro’s Adventure, which attempts to bring physical toys to life through videogames, has been worth it.

“It was scary,” he said. “But if you truly have a breakthrough idea, then you have to have the confidence to treat it as one because they don’t come around very often.”

To be sure, the game was a major deviation from the company’s war-based roots.

It melds physical toys with videogames by using a “portal,” which is plugged into the game console. Once a Skylanders toy is placed on the portal, the character transports into the game and comes to life on the screen.

In 2011, the game was the tenth-best seller after launching in October, and was the only title to make the list that wasn’t a sequel. Additionally, it was the only kids game.

Hirshberg appeared this morning as the keynote speaker at DICE, an annual videogame summit held in Las Vegas.

His speech, titled “The Eric Hirshberg Experiment,” addressed how he has a nontraditional background as a CEO, but that Activision Blizzard’s CEO Bobby Kotick saw the usefulness of his creative background. Rather than being a trained operations or finance manager, Hirshberg is a marketing type who is more likely found drawing and bringing a sketch pad to meetings.

“There are other creative CEOs, but they generally founded the companies, like Bill Gates or Steve Jobs,” he said. “But if creativity is at the core of your business, maybe it should be at the core of how they make decisions.”

Skylanders is just one case in point.

To make it the best experience possible, Hirshberg said they delayed the game’s launch by a year and spent the time getting the toys right, so they could compete side by side with characters developed by Pixar or Disney.

They also spent time making sure the game could work across platforms, so kids could play it at any of their friends’ houses regardless if they had a PC, Xbox, Sony PlayStation or Nintendo Wii.

As a result, every decision resulted in taking on more risk and spending more money.

Last night, Skylanders was voted as the most outstanding innovation in gaming as part of the 15th Annual Interactive Achievement Awards, which are decided on by members of the Academy of Interactive Arts & Sciences.

“We knew a lot of things had to go right — the core to that was bringing the toys to life. We knew that was magical, and if we got it right, it would have huge potential,” Hirshberg said. “We had the whole package. We had a great game and a great story and then pushed with all of our might with a big marketing plan.”

Yesterday, Activision reported fourth-quarter results, reporting well above its internal guidance and Wall Street analyst expectations, driven by extremely strong sales of Call of Duty, but also strong sales of Skylanders as well as, plus stable subscriber figures of its online game, World of Warcraft.

Additionally, the NPD Group said yesterday that the Skylanders toys were a top-selling accessory in January. It said that the toys were the highest-ranking item last month, and that collectively, Skylanders accessories represented 22 percent of all accessory sales.

For sure, Hirshberg has early successes to point to, but the experiment is ongoing.

The gory first-person shooter has managed to outsell all movies, books and videogames during its initial debut.

It even surpassed last year’s release of Call of Duty: Black Ops, which grossed $650 million, and Call of Duty: Modern Warfare 2, which sold $550 million.

In an interview, Activision Blizzard’s CEO Bobby Kotick told AllThingsD that the game’s entertainment value compares well against other more accessible media options.

“I don’t think we have empirical evidence to support this, but the cost per hour is a lot lower than any form of entertainment,” he said. “In this difficult economy, you are getting a great value.”

The latest installment, called Modern Warfare 3, retails for about $60 and is available on the Nintendo Wii, PlayStation 3, Xbox 360 and for the PC.

He said for that price, you get a social experience because of the multiplayer capabilities; a cinematic experience with good imagery and a story line; and an interactive experience. “It touches on all of the compelling areas of entertainment,” he said.

Activision is claiming that the Call of Duty franchise is one of the most valuable entertainment properties worldwide, having exceeded $6 billion in revenue over its lifetime. At that level, Kotick says, it is up there with “Star Wars,” the Harry Potter franchise, and maybe “Lord of the Rings.”

In its first day on the market, Activision sold more than 6.5 million units in North America and the United Kingdom at an estimated sell-through rate of more than $400 million.

It’s competing against a number of blockbuster first-person shooters that are being released this winter, like Electronic Arts’ Battlefield 3, which came out late last month. That title sold five million units during its first week of sales.

Not only is Call of Duty a big revenue hit, but it’s also likely sucking away time spent on other media.

According to Microsoft, more than 3.3 million unique gamers logged seven million multiplayer hours with the game by the end of Nov. 8, the first day it was available. At one point, more than 3.3 million concurrent users played the game on Xbox Live.

A companion social network for the game, called Call of Duty Elite, is being sold separately for $50 for premium access.

Kotick said Activision will release more information about sales on that soon, but “the response has been much higher than we anticipated.”

Closing another chapter on one of the Internet’s most iconic properties, Myspace has been sold to to Specific Media, an advertising network, for $35 million.

Sources close to the situation said the deal is being completed today, although it has not been officially signed. Myspace’s owner, News Corp., will hold on to a very small stake of less than five percent.

[UPDATE: It's official; see the press release and memo to Myspace employees from outgoing CEO Mike Jones below.]

AllThingsD broke news of Specific’s interest in Myspace yesterday.

The price is well below the $100 million that News Corp. had been hoping for, and a chasm away from Myspace’s one-time billion valuation.

The deal includes a halving of Myspace’s staff of 400, as well as other cost cuts. It’s likely Jones and other top staff will remain only for an interim period.

News Corp. bought Myspace for $580 million in 2005, and made that back via a lucrative advertising deal with Google when the social networking site was flying high.

But that was another time — the media giant has been trying to sell the site before the end of its fiscal year, which falls on Thursday, in order to get it off the books.

There were several other bidders in the process, including separate efforts by the two co-founders of Myspace, Chris DeWolfe and Tom Anderson.

More recently, the preferred acquirer was a group that included Activision CEO Bobby Kotick, but it fell apart over a number of issues.

This week, it came down to Specific and also a private equity firm, Golden Gate Capital.

According to a report yesterday in The Wall Street Journal:

Founded in 1999 by Tim Vanderhook and his brothers Chris and Russell, Specific Media helps marketers buy digital ads across the Web, online video, mobile and even the TV. The Irvine, Calif., company got its start brokering ad space for websites and quickly moved into the fast-growing business of collecting and using Web browsing, demographic, geographic and other profile information about consumers to target ads. The company now ranks among the largest online advertising networks in the country, reaching 170.9 million unique U.S. visitors in May, or about 79% of the U.S. Internet users, according to comScore Inc.

A Myspace deal would give the company access to data about Myspace users to be used for ad targeting. It also would transform the firm into a media company with its own ad space to sell instead of simply an online ad technology firm that brokers ad space on behalf of other websites.

Specific Media’s executive team includes knowledge of the inner-workings at Myspace, with two executives who previously worked at Fox Audience Network, News Corp.’s online advertising unit that sold ads for Myspace.

Specific Media has raised more than $110 million in funding, closing a $100 million round of financing from private-equity firm Francisco Partners in 2007. Since then, the company has acquired a couple of digital advertising companies, including online video company Broadband Enterprises and an Amsterdam ad technology company.

Here is the official press release and the memo to Myspace staff from Jones:

From: Mike Jones
Sent: Wednesday, June 29, 2011 11:26 AM
To: Myspace All
Subject: IMPORTANT COMPANY NEWS
Importance: High

Myspacers,

Today, we are announcing that Myspace will be acquired by Specific Media, one of the world’s leading online media and advertising platforms. Over the next few days you will be hearing from the team at Specific, including their CEO, Tim Vanderhook, regarding their exciting plans for Myspace and how it fits in with the overall vision of their company.

In conjunction with the deal, we are conducting a series of restructuring initiatives, including a significant reduction in our workforce. I will assist Specific with the transition over the next two months before departing my role as Myspace CEO.

I wanted to take a minute to thank you all for the incredible experience it has been to lead this company and to work closely with all of you over the past several years. While I regret we won’t be working together at Myspace any longer, I am very proud of the work we have done here and believe we have performed with excellence — even under extremely difficult circumstances.

My time here at Myspace represents the most engaging and challenging time of my professional career. I have found our team to be comprised of the best people I have come across in our industry.

You can read the press release below. Once again, thank you for all of your hard work and dedication.

Thanks,

-M

SPECIFIC MEDIA ACQUIRES MYSPACE FROM NEWS CORPORATION

Los Angeles, Calif. — June 29, 2011 — Specific Media, a digital media company, today announced it has acquired Myspace from News Corporation. As part of the agreement, News Corporation will take a minority equity stake in Specific Media. Additional terms of the agreement are confidential and will not be disclosed.

“Myspace is a recognized leader that has pioneered the social media space. The company has transformed the ways in which audiences discover, consume and engage with content online,” said Tim Vanderhook, Specific Media CEO. “There are many synergies between our companies as we are both focused on enhancing digital media experiences by fueling connections with relevance and interest. We look forward to combining our platforms to drive the next generation of digital innovation.”

Specific Media is an innovative global interactive media company that enables advertisers to connect with consumers in meaningful, impactful and relevant ways. Founded in 1999 by brothers Tim, Chris and Russell Vanderhook, Specific Media is currently headquartered in Irvine, CA and operates offices around the world.

(Full disclosure: News Corp. owns Dow Jones, which owns this site.)

It was just supposed to be a three-hour tour, um, quick sale process!

But, like a storm-tossed ship looking for any safe harbor, the Myspace sale is still chugging along, with a deal that continues to be tossed around amongst low-paying and new lesser known buyers who are now in the $20 million to $30 million range, said sources close to the situation.

The price, said others, could go as high as $35 million, but it’s far cry from the $100 million that News Corp. had been aiming for.

As part of the deal, sources said the News Corp. unit will be making significant cuts in staff and costs — up to 50 percent or more — all contingent on the purchaser. The staff cuts are, obviously, directly related to the transaction and the winning bidder.

The media giant might also retain a small minority stake.

The two names — Specific Media and Golden Gate Capital — that are now in the forefront for an acquisition deal that News Corp. hopes to complete by Thursday, its fiscal year end, have not been among the acquirers mentioned previously in the myriad of reports about the deal.

Specific Media — a large, if lesser known, advertising network — seems to be in the lead, said sources. It has been around for a half-decade and has been funded by Francisco Partners.

Golden Gate Capital is a private equity firm with $9 billion under management, which has mostly specialized in turning around companies. It has never invested in a consumer Internet company.

Both companies, sources said, will focus Myspace on music, although it is not clear which rights the site has with music labels will transfer to a new owner.

Until last week, the preferred deal for Myspace centered on an investor group that included Activision CEO Bobby Kotick and in which News Corp. (which also owns this Web site) would retain a large minority ownership stake.

But sources said there were some transactional and legal complexities that made it less attractive and News Corp. opened up the deal talks with others again last week.

Golden Capital and Specific Media emerged most aggressively, although there still remain other interested parties, sources close to the situation said, among them another investor group that includes Myspace co-founder Tom Anderson, one its other co-founder Chris DeWolfe is part of and also interest from the Criterion Capital Partners, which bought AOL’s Bebo social networking site on the cheap a year ago.

But it’s now come down to time constraints and an agreement that can be reached before the end of this month, which is also the end of the media giant’s fiscal year.

In other words, let’s get Myspace off the books for 2012!

How it came to this will likely be the focus of many a business school case. After a spectacular start, Myspace has fallen on hard times both in terms of traffic and advertising revenues.

That’s why the music-focused social networking site has not sat exactly in the catbird’s seat in terms of negotiating leverage.

While there were some rumors last week that News Corp. would close Myspace down, the sale to a small player and the layoffs are the likely outcome.

While that’s cold comfort to its employees, it’s about the best Myspace can hope for right now.

(Full disclosure: News Corp. owns Dow Jones, which owns this site.)

In a surprise cameo, Activision CEO Bobby Kotick has gone Hollywood, appearing in a new trailer for the movie “Moneyball.”

Based on the excellent Michael Lewis book about the Oakland Athletics baseball team and its quirky general manager Billy Beane, who is played by Brad Pitt, Kotick is apparently playing its owner.

Kotick seems to do a pretty good job as a sports mogul, which is not much different than his one as a gaming mogul. And, if it works out as it seems it will, a social networking mogul as a possible new owner of Myspace.

Here’s the video of the trailer for the film, which comes out in September, with Kotick:

When the selling of Myspace winds down in the next week or so, it’ll probably attract a spate of comments about what a failure the whole social networking enterprise turned out to be.

And — especially when you recall what a Web phenom the social networking site was before it got blown out of the water by Facebook — it was.

That is, unless you think of the mob of former execs who have worked at the company over time, many of whom have moved on to some more golden opportunities after leaving the News Corp.-owned property.

That includes, most recently and notably, former sales head Michael Barrett, who is about to score big as CEO of AdMeld, which is reportedly in the process of selling to Google for $400 million.

Also a big winner: Former Myspace CEO Owen Van Natta, who was fired from that job in one of its many putsches and who quickly rebounded to a top job at online gaming powerhouse Zynga.

So, while it is one of the more overused memes of Silicon Valley, the “mafia” analogy — which has been applied to fertile entrepreneurial breeding grounds such as PayPal, before its acquisition by eBay — is useful when thinking about Myspace.

It is also a good thing to keep in mind about any tech company that goes off the rails: There might still be a silver lining, even if the start-up never sees the light of day again.

As proof, herein is a list I created after pinging a bunch of former Myspace folks:

Jason Oberfest: Former SVP of business development. Now, VP Ngmoco, which was sold to Japanese gaming giant DeNA for $400 million last year.

Dmitry Shapiro: Former CTO, Myspace Music. Now, at Facebook competitor Altly.

Adam Bain: While at Fox Interactive Media, he ran the ad platform for Myspace. Now, head of sales at Twitter.

Jeff Berman: Former president of sales and marketing. Now, GM of the NFL’s digital media unit.

Jason Hirschhorn: Former co-president and chief product officer. Now, on MGM board, angel investor, and there are rumors of him working on a curation start-up.

Amit Kapur: Former COO. Now, CEO, Gravity, an information filtering service start-up.

Chris DeWolfe: Co-founder and former CEO. Now, CEO, MindJolt, an online gaming roll-up.

Ross Levinsohn: Former president of FIM, he was integral to buying Myspace. Now, EVP of Americas unit, Yahoo.

Mike Lang: Former News Corp. strategy exec also involved in Myspace purchase. Now, CEO, Miramax.

Aber Whitcomb: Former CTO. Now CTO, MindJolt.

Jim Heckman: Former chief strategy officer of FIM. Now, CEO of 5to1, recently sold to Yahoo for $25 million.

Dani Dudeck: Former communications head. Now, PR head at Zynga.

Travis Katz: SVP of international. Now, CEO of Gogobot, a social travel start-up.

Richard Rosenblatt: Former CEO of Intermix Media and Chairman of Myspace, he sold it to News Corp. Now, CEO of Demand Media.

Angela Courtin: Former SVP of marketing. Now, EVP at Aegis Media.

These folks should be on the call list of whoever ends up buying Myspace. Last week, I wrote that an investor group, including Activision head Bobby Kotick, is now in the lead for the deal.

As an update, according to sources, Kotick has gotten clearance from Activision’s major shareholder Vivendi to do the Myspace transaction as a passive personal investment.

According to sources close to the situation, News Corp. is down to one possible investing group in its quest to make lemonade out of the lemon that its Myspace social entertainment hub has become.

In the lastest of many scenarios considered, several sources said its owner, News Corp., will continue to own about 20 percent of Myspace. The main bidder is a dark horse bidding group, which includes Activision Chairman and CEO Bobby Kotick as one of the potential investors.

The deal, cautioned sources, is not final and could easily fall apart.

Interestingly, if such a deal is struck, he would apparently be involved as an individual and not for the giant gaming company, and would play no management role in the company.

Kotick would presumably need permission from Activision for such a high-profile investment, even if he played a smaller role.

Kotick’s possible involvement has not been mentioned in previous reports.

Sources said the other possible bidders — including music video service Vevo, a group including Myspace founder and former CEO Chris DeWolfe, an internal effort by current CEO Mike Jones, several private equity firms and even myYearbook — mentioned in past reports have not worked out for various reasons.

Vevo had seemed the likeliest winner, but its bid appears to have foundered for now, due to the complex nature of its music label ownership.

It is not clear what the price will be for Myspace, which was once the leading social networking site before the world dis-Liked it for Facebook.

One thing is certain: It is nowhere near the $100 million that News Corp. reportedly sought.

The site — even after an overhaul to focus on entertainment — has recently been losing money and traffic, although it is still a large destination on the Web.

News Corp. declined comment, as did Kotick.

The milestone means “Call of Duty: Black Ops” crossed the $1 billion threshold nearly a month earlier than the last version of the game, “Call of Duty: Modern Warfare 2, “which came out in early November 2009. In a news release, Activision CEO Bobby Kotick said only “Call of Duty” and the movie “Avatar” have passed $1 billion in revenue so quickly.

In an interview, Kotick attributed the improved performance of “Black Ops” to the quality of the game, including the manner in which it allows even novice gamers to easily start playing the combat game.

Read the rest of this post on the original site

Although videogame sales are in a slump, expectations for “Starcraft II” are high. Blizzard’s parent company, Activision Blizzard (ATVI), has spent more than $100 million developing the computer-based game.

Analysts expect it will sell several million units globally this year, giving a profit boost to Activision’s bottom line.

“There is no shortage of consumers for ‘Starcraft’,” Activision Chief Executive Bobby Kotick said in an interview last month. “For a game that is more than 10 years old, there’s millions of people still playing it.”

Read the rest of this post on the original site

BoomTown is wearing all-black today, in profound mourning for the prospect of no Paula Abdul judging on “American Idol” next season.

“With sadness in my heart, I’ve decided not to return,” tweeted Abdul yesterday, bidding goodbye, natch, on Twitter.

Of course, her departure was over money–the boy talent, co-judge Simon Cowell and MC Ryan Seacrest, got a ton of it and Abdul got much less (although $2 million a year is a lot, it paled in comparison).

She is worth the scratch, though–especially considering how much the television singing juggernaut makes on Coke advertising placement alone–whether she was falling asleep in Carrie Underwood’s first audition or sleeping with contestants (allegedly!) or just doing that goofy seal clap and blathering out incomprehensible compliments to contestants.

Memo to News Corp. (NWS) TV unit Fox, which produces the TV show in the U.S.: Hand over more dough and pronto!

Sigh, as it is probably not to be–even though her bio is still on the “Idol” Web site.

So, here is a very funny video mashup done about her odd relationship with the acerbic Cowell.

Plus, here is a video from when Adbul also actually appeared–stranger than fiction–at the sixth D: All Things Digital conference.

She was there to help Activision Blizzard (ATVI) CEO Bobby Kotick publicly demo “Guitar Hero IV” for the first time, with the help of skateboarding star Tony Hawk.

I’ll be honest–I was sure she’d do something crazy, like goose Bill Gates of Microsoft (MSFT) or maybe fall off the stage–but she turned out to be a pro and forever my girl (oh, I had to).

Check it out, since I am off draping crepe at the All Things Digital HQ:

Paula & Simon:

Paula at D6:

]]> http://allthingsd.com/20090805/the-agony-and-ecstasy-of-paula-simon-plus-when-abdul-did-d6/feed/ 0 http://allthingsd.com/20090619/activision-says-it-might-stop-supporting-sony-playstation/ http://allthingsd.com/20090619/activision-says-it-might-stop-supporting-sony-playstation/#comments Fri, 19 Jun 2009 21:40:31 +0000 Eric Savitz http://voices.allthingsd.com/?p=12830 Activision Blizzard (ATVI) CEO Bobby Kotick the London-based Times that the video game company might stop making games for the Sony (SNE) Playstation.

“I’m getting concerned about Sony; the PlayStation 3 is losing a bit of momentum and they don’t make it easy for me to support the platform,” he told the Times. “It’s expensive to develop for the console, and the Wii and the Xbox are just selling better. Games generate a better return on invested capital on the Xbox than on the PlayStation.”

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]]> http://allthingsd.com/20090619/activision-says-it-might-stop-supporting-sony-playstation/feed/ 0 http://allthingsd.com/20090504/welcome-to-lucky-d7-still-gambling-on-the-digital-future/ http://allthingsd.com/20090504/welcome-to-lucky-d7-still-gambling-on-the-digital-future/#comments Mon, 04 May 2009 07:26:10 +0000 Kara Swisher http://d7.allthingsd.com/?p=126

Incredibly, this is the seventh year of the D: All Things Digital conference.

We feel very lucky to get here, especially in the midst of what our own site’s Digital Daily scribe, John Paczkowski, has so perfectly dubbed the “econalypse.”

Ironically, Walt Mossberg and I planned to launch the very first conference in the middle of the last major downturn for tech, in 2001. But, in the carnage of the Web 1.0 meltdown, we actually held off for two years, with our first D gathering taking place in 2003.

It’s been a real winning streak since then for D, due in large part to our great speakers–such as Microsoft (MSFT) icon Bill Gates and Apple (AAPL) legend Steve Jobs.

Both have been onstage many times over the years, including a historic interview the pair of tech titans did together in 2007 at D5.

Other amazing speakers have included: Howard Stringer of Sony (SNE), Barry Diller of InterActiveCorp (IACI), legendary director George Lucas, Time Warner (TWX) CEO Jeff Bewkes, Jeff Bezos of Amazon (AMZN), former eBay (EBAY) CEO Meg Whitman, News Corp. (NWS) head Rupert Murdoch, Microsoft head Steve Ballmer, Walt Disney (DIS) honcho Bob Iger, Bobby Kotick of Activision Blizzard (ATVI), CBS (CBS) CEO Les Moonves, Democratic and Republican pols like former Vice President Al Gore and Sen. John McCain, all the leadership of Google (GOOG) and many, many more.

We have had a lot of great moments onstage with all these tech and media players over the years, to be sure, with interviews ranging from the funny to the sublime to the truly disastrous.

But, like the digital industry and the innovation our conference focuses on, we also like to lean forward to try to figure out what the Next Big Thing is around the corner, whether it comes from Silicon Valley or not.

That’s why we’re kicking off our conference on May 26 with two of the founders of Twitter–Biz Stone and Evan Williams–who are riding high on tech’s latest hot thing, which might turn out to be either a rocket ship or a shooting star.

They’ll be followed up over the next two days by a plethora of interesting players, from the leaders of several major mobile companies to content execs hit hard by fast-moving digital forces to a new Internet leader like Yahoo (YHOO) CEO Carol Bartz, who is trying to turn around one of the Web’s great icons from its more recent lackluster path.

And, as we always do, we will be featuring a spate of demos too, trying to see if we can unearth that next next thing.

In the past, the D stage has seen the debut of start-up products like Sling Media’s Slingbox, Aliph’s Jawbone and Pure Digital’s Flip, all of which have gone onto glory. And also some, like Palm’s Foleo, which did not.

While not everyone can attend D, our crack staff is committed to bringing all the action from this year’s conference to readers of the All Things Digital site via up-to-the-minute blogs, photos, videos, tweets, digs and more. We’ll also, as soon as we can, post the videos of each of the onstage sessions, in their entirety.

Until it all kicks off, here is the list of speakers, below, in alphabetical order, who will be appearing at 2009′s D7 conference:

Irving Azoff | CEO of Ticketmaster Entertainment (TKTM)

Mitchell Baker | Chairman of Mozilla

Steve Ballmer | CEO of Microsoft

Carol Bartz | CEO of Yahoo

Mark Cuban | Chairman of HDNet and Owner of the Dallas Mavericks, Landmark Theaters and Magnolia Pictures

Eve Ensler | Playwright and Founder of V-Day

Arianna Huffington | Editor-in-Chief of the Huffington Post

Olli-Pekka Kallasvuo | CEO of Nokia (NOK)

Mike Lazaridis | Co-CEO of Research In Motion (RIMM)

John Lilly | CEO of Mozilla

John Malone | Chairman of Liberty Media Corporation (LCAPA)

Roger McNamee | Partner, Elevation Partners

Jon Miller | Chief Digital Officer of News Corp.

Jon Rubinstein | Executive Chairman, Palm (PALM)

Randall Stephenson | CEO of AT&T (T)

Biz Stone | Co-founder of Twitter

Owen Van Natta | CEO of MySpace

Katharine Weymouth | Publisher of the Washington Post (WPO)

Evan Williams | Co-founder and CEO of Twitter

Jeff Zucker | CEO of NBC Universal (GE)

]]> http://allthingsd.com/20090504/welcome-to-lucky-d7-still-gambling-on-the-digital-future/feed/ 0 http://allthingsd.com/20090504/welcome-to-lucky-d7-gambling-on-the-future-of-tech/ http://allthingsd.com/20090504/welcome-to-lucky-d7-gambling-on-the-future-of-tech/#comments Mon, 04 May 2009 07:15:55 +0000 Kara Swisher http://kara.allthingsd.com/?p=13080

Incredibly, this is the seventh year of the D: All Things Digital conference.

We feel very lucky to get here, especially in the midst of what our own site’s Digital Daily scribe, John Paczkowski, has so perfectly dubbed the “econalypse.”

Ironically, Walt Mossberg and I planned to launch the very first conference in the middle of the last major downturn for tech, in 2001. But, in the carnage of the Web 1.0 meltdown, we actually held off for two years, with our first D gathering taking place in 2003.

It’s been a real winning streak since then for D, due in large part to our great speakers–such as Microsoft (MSFT) icon Bill Gates and Apple (AAPL) legend Steve Jobs.

Both have been onstage many times over the years, including a historic interview the pair of tech titans did together in 2007 at D5.

Other amazing speakers have included: Howard Stringer of Sony (SNE), Barry Diller of InterActiveCorp (IACI), legendary director George Lucas, Time Warner (TWX) CEO Jeff Bewkes, Jeff Bezos of Amazon (AMZN), former eBay (EBAY) CEO Meg Whitman, News Corp. (NWS) head Rupert Murdoch, Microsoft head Steve Ballmer, Walt Disney (DIS) honcho Bob Iger, Bobby Kotick of Activision Blizzard (ATVI), CBS (CBS) CEO Les Moonves, Democratic and Republican pols like former Vice President Al Gore and Sen. John McCain, all the leadership of Google (GOOG) and many, many more.

We have had a lot of great moments onstage with all these tech and media players over the years, to be sure, with interviews ranging from the funny to the sublime to the truly disastrous.

But, like the digital industry and the innovation our conference focuses on, we also like to lean forward to try to figure out what the Next Big Thing is around the corner, whether it comes from Silicon Valley or not.

That’s why we’re kicking off our conference on May 26 with two of the founders of Twitter–Biz Stone and Evan Williams–who are riding high on tech’s latest hot thing, which might turn out to be either a rocket ship or a shooting star.

They’ll be followed up over the next two days by a plethora of interesting players, from the leaders of several major mobile companies to content execs hit hard by fast-moving digital forces to a new Internet leader like Yahoo (YHOO) CEO Carol Bartz, who is trying to turn around one of the Web’s great icons from its more recent lackluster path.

And, as we always do, we will be featuring a spate of demos too, trying to see if we can unearth that next next thing.

In the past, the D stage has seen the debut of start-up products like Sling Media’s Slingbox, Aliph’s Jawbone and Pure Digital’s Flip, all of which have gone onto glory. And also some, like Palm’s Foleo, which did not.

While not everyone can attend D, our crack staff is committed to bringing all the action from this year’s conference to readers of the All Things Digital site via up-to-the-minute blogs, photos, videos, tweets, digs and more. We’ll also, as soon as we can, post the videos of each of the onstage sessions, in their entirety.

Until it all kicks off, here is the list of speakers, below, in alphabetical order, who will be appearing at 2009′s D7 conference:

Irving Azoff | CEO of Ticketmaster Entertainment (TKTM)

Mitchell Baker | Chairman of Mozilla

Steve Ballmer | CEO of Microsoft

Carol Bartz | CEO of Yahoo

Mark Cuban | Chairman of HDNet and Owner of the Dallas Mavericks, Landmark Theaters and Magnolia Pictures

Eve Ensler | Playwright and Founder of V-Day

Arianna Huffington | Editor-in-Chief of the Huffington Post

Olli-Pekka Kallasvuo | CEO of Nokia (NOK)

Mike Lazaridis | Co-CEO of Research In Motion (RIMM)

John Lilly | CEO of Mozilla

John Malone | Chairman of Liberty Media Corporation (LCAPA)

Roger McNamee | Partner, Elevation Partners

Jon Miller | Chief Digital Officer of News Corp.

Jon Rubinstein | Executive Chairman, Palm (PALM)

Randall Stephenson | CEO of AT&T (T)

Biz Stone | Co-founder of Twitter

Owen Van Natta | CEO of MySpace

Katharine Weymouth | Publisher of the Washington Post (WPO)

Evan Williams | Co-founder and CEO of Twitter

Jeff Zucker | CEO of NBC Universal (GE)

]]> http://allthingsd.com/20090504/welcome-to-lucky-d7-gambling-on-the-future-of-tech/feed/ 1 http://allthingsd.com/20090324/new-guitar-hero-rosensweig-and-activision-ceo-kotick-speak/ http://allthingsd.com/20090324/new-guitar-hero-rosensweig-and-activision-ceo-kotick-speak/#comments Tue, 24 Mar 2009 13:21:09 +0000 Kara Swisher http://kara.allthingsd.com/?p=11158 As reported Sunday night by BoomTown, former Yahoo exec and Quadrangle Group partner Dan Rosensweig will become CEO and president of the Guitar Hero division of gaming giant Activision Blizzard.

I chatted with both Rosensweig and Activision (ATVI) president and CEO Bobby Kotick yesterday about the move and where the gaming company is going in the year ahead.

“I love music and I love big brands,” said Rosensweig (pictured here), whose enthusiasm for music, especially for Bruce Springsteen, is well known in Silicon Valley. “I wanted to do something different, something fun and something that was going to be the next big space online.”

And, indeed, the online music gaming space is stronger than most other Internet businesses these days, with a lot of potential, having just started to tap into social networking, mobile and other interactive possibilities.

So far, as a retail and home phenom, Guitar Hero has been a huge success since its release in 2005, followed by several new versions. And the company will be releasing a hip-hop-themed DJ Hero–complete with a turntable–soon, for example.

But, to keep up the pace, it will now be Rosensweig’s job to feed the consumer beast as never before.

Kotick said he had spent a lot of time looking for the right exec to turbocharge the company’s online Guitar Hero network. Already, for example, he pointed out that 200,000 original, user-generated songs had been uploaded to its Web site, with many millions downloaded back.

He noted that the concept of the “release your inner rock star” fantasy that Guitar Hero taps into at home had still not gone online as much as it could, and added that the brand would be moving into more and more music genres.

“We already have a big online business, but we have not even reached into five percent of the installed base of gamers,” said Kotick (pictured here). “I wanted someone who could focus on this with a passion and who gets how to leverage what we have already built.”

Kotick said he initially had asked Rosensweig for suggestions about who would be good for the job, having gotten to know him when Rosensweig was COO of Yahoo (YHOO) and Kotick was on its board.

“It was funny, but as I started talking to him, I thought he was the perfect person for it,” he said.

And it was perfect timing too, with all the turbulence on Wall Street and in the private equity business. Rosensweig had already been thinking about getting back into operations, after his post-Yahoo stint at Quadrangle.

“There is a lot of uncertainty in the market, but what I really wanted to do was be part of developing a whole new space for an already hugely successful brand,” he said. “The growth opportunity and the ability to scale here is enormous.”

Rosensweig, who will start April 20, does have his work cut out for him, overseeing Guitar Hero’s game development, marketing and distribution.

(The division’s former head and the co-creator of Guitar Hero, Kai Huang, will report to him, while Rosensweig will report to Activision President Mike Griffith.)

Besides dealing with the weak economy, which the company signaled in its most recent quarter could bring trouble, the Guitar Hero behemoth must keep innovating.

Rosensweig is also facing competition when competitor Rock Band releases a Beatles-focused music offering in September. It is likely to be very popular, even though Guitar Hero has typically outsold Rock Band.

More significantly, some think the entire online music gaming trend has played out, with sales down year over year.

Not Rosensweig. “It is just the beginning of what it could be online in this business,” he said.

And, for those interested, here is the full press release:

Activision Publishing Names Media Veteran and Former Yahoo! COO Dan Rosensweig President and CEO of Guitar Hero(R) Business Unit

–Appointment Further Strengthens Company’s Senior Management Team

SANTA MONICA, Calif., March 23, 2009 /PRNewswire-FirstCall via COMTEX News Network/–Further strengthening its senior management team, Activision Publishing, Inc. (Nasdaq: ATVI) announced today that Dan Rosensweig has been named President and Chief Executive Officer of RedOctane, the business unit which develops the blockbuster Guitar Hero(R) franchise and soon to be released DJ Hero(TM).

Mr. Rosensweig will oversee Guitar Hero’s global operations including game development, hardware manufacturing, supply chain, logistics and marketing. He will report directly to Mike Griffith, President and CEO of Activision Publishing. Kai Huang, former President and CEO of RedOctane, who along with his brother Charles Huang created Guitar Hero, will continue working at RedOctane reporting to Mr. Rosensweig.

Mr. Rosensweig brings significant experience to Activision having served as Chief Operating Officer of Yahoo! from 2002 through 2006, where he oversaw the company’s worldwide operations including its product development, marketing, and advertising sales and the development and introduction of inventive new Internet advertising formats.

Additionally, he spent 18 years at Ziff Davis, most recently serving as President where he was responsible for the global operations of the company and the successful merger of ZDNet and CNET. He held several senior positions during his tenure at Ziff-Davis, including President and Chief Executive Officer of ZDNet, which he built from a standalone Ziff-Davis company to a publicly traded, highly trafficked Internet network, President of Ziff-Davis Internet Publishing Group and Vice-President and Publisher of PC Magazine.

Prior to joining Activision, from 2007-2009, Mr. Rosensweig served as an operating principal at Quadrangle Group, a private investment firm, where he focused on the firm’s media and communications private equity business.

“Under the leadership of Kai and Charles, Guitar Hero established the music gaming genre and became a global phenomenon,” said Mike Griffith. “With the addition of Dan’s proven operational expertise and leadership, we will continue expanding the franchise’s global footprint in new and innovative ways. Dan’s deep understanding of how consumers can be entertained online will be invaluable as we continue to build Guitar Hero’s complementary growth channels, further establish the franchise as an innovative music platform and develop relationships with new business partners.”

Robert Kotick, Chief Executive Officer of Activision Blizzard noted, “I had the great pleasure of working with Dan during his tenure at Yahoo!. Dan has a rare combination of deep business expertise, entrepreneurial instincts and an incredible passion for music. We are looking forward to leveraging his proven online experience to build upon the billions of hours of entertainment we deliver each year in the Guitar Hero network.”

“I am extremely excited for this opportunity to work with the talented Guitar Hero team, which has transformed the interactive entertainment landscape,” said Mr. Rosensweig. “With a platform and content that universally engages a wide range of audiences, Guitar Hero has incredible growth potential. I look forward to continuing to develop Guitar Hero into an even more successful enterprise.”

]]> http://allthingsd.com/20090324/new-guitar-hero-rosensweig-and-activision-ceo-kotick-speak/feed/ 1 http://allthingsd.com/20090322/exclusive-dan-rosensweig-steps-up-to-takes-his-licks-as-guitar-hero-frontman/ http://allthingsd.com/20090322/exclusive-dan-rosensweig-steps-up-to-takes-his-licks-as-guitar-hero-frontman/#comments Mon, 23 Mar 2009 01:54:05 +0000 Kara Swisher http://kara.allthingsd.com/?p=11112

Former Yahoo COO and current Quadrangle Group partner Dan Rosensweig (pictured here) will take over as CEO and president of Activision Blizzard’s powerful Guitar Hero franchise, according to sources close to the situation.

Rosensweig will run the hot gaming company’s division, which is located in Silicon Valley, the result of its purchase of RedOctane in 2006, source said.

He is well known to Activision (ATVI) Chairman and CEO Bobby Kotick, who served on the Yahoo board for many years when Rosensweig was a key exec there. Both Rosensweig and Kotick have since left Yahoo.

It’s an interesting move for Rosensweig, who has been working in private equity since his departure from Yahoo (YHOO) in late 2006.

His name has been bandied about for several high-profile Web positions of late, and many thought he might take a political job, given that he was one of many digital execs involved in helping elect President Barack Obama.

But the weak market for investments and Rosensweig’s longtime experience and interest in eventually returning to operations–along with his well-known passion for music–are the likeliest motivators for the move to Guitar Hero.

Sources said Rosensweig will start his new job at Guitar Hero–which Activision could announce as early as tomorrow–in several weeks.

Running a major consumer brand like Guitar Hero seems tailor-made for Rosensweig, who worked at CNET Networks and Ziff-Davis before Yahoo. In addition, the jovial exec is well-respected in Silicon Valley, giving Activision a much more prominent presence here.

And the energetic Kotick (pictured below with me and, yes, Paula Abdul of “American Idol”–don’t ask) has long talked about turbocharging the largely retail Guitar Hero business online, as a way to further grow the music phenom.

User-generated music, as well as a plethora of online transactions and social networking, have been promising new revenue opportunities, Kotick has said.

(See video highlights of my interview with Kotick below on that topic and more at last year’s D: All Things Digital conference.)

Overall, despite the weak economy and a cautious forecast going forward, the Santa Monica, Calif.-based Activision is growing, with revenues up in the last quarter, due in large part to the popularity of its Guitar Hero and Call of Duty videogames.

Its fast pace, in contrast to rival Electronic Arts (ERTS), has been helped by its merger with Vivendi SA’s Blizzard Entertainment last summer. Blizzard’s World of Warcraft online game is also one of the most popular multiplayer games in the world.

Here’s a highlights video from my interview with Kotick at D6:

]]> http://allthingsd.com/20090322/exclusive-dan-rosensweig-steps-up-to-takes-his-licks-as-guitar-hero-frontman/feed/ 0 http://allthingsd.com/20090313/activision-shrs-slide-after-ceo-kotick-sells-shares/ http://allthingsd.com/20090313/activision-shrs-slide-after-ceo-kotick-sells-shares/#comments Fri, 13 Mar 2009 18:18:50 +0000 Eric Savitz http://voices.allthingsd.com/?p=9446 Activision Blizzard (ATVI) shares are down sharply for the second straight day after CEO Bobby Kotick disclosed the sale of a large block of shares.

Kotick personally sold one million shares at an average price of $10.1834 a share; he received the shares after exercising 260,558 options with a strike price of 51.04 cents, and another 739,442 options with a strike of $1.0315. He also sold another 242,425 shares held by a trust he controls.

Two analysts bullish on the videogame publisher weighed in today to defend the stock.

Cowen’s Doug Creutz said he doesn’t believe the sales are a signal that management is concerned about near-term operating results. “On the contrary, we continue to believe current management EPS guidance is conservative,” he writes. Creutz notes that appears to be “lingering investor concern” about insider selling due to a 2002 sale of shares by Kotick prior to a downturn in ATVI’s stock price.

Read the rest of this post

]]> http://allthingsd.com/20090313/activision-shrs-slide-after-ceo-kotick-sells-shares/feed/ 0 http://allthingsd.com/20081001/qotd-42/ http://allthingsd.com/20081001/qotd-42/#comments Wed, 01 Oct 2008 21:54:30 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=6070

We compensate artists and publishers extremely well. There are millions and millions of dollars that are being made and paid. There’s a misunderstanding of the value we bring to the catalog. What happens to your catalog in digital downloads? What happens to your merchandise? What happens to your ticket sales? When you look at the impact it can have on an Aerosmith, Van Halen or Metallica, it’s really significant, so much so that you sort of question whether or not, in the case of those kinds of products, you should be paying any money at all and whether it should be the reverse.”

– Activision Blizzard CEO Bobby Kotick says the recording industry shouldn’t look a Guitar Hero gift horse in the mouth

]]> http://allthingsd.com/20081001/qotd-42/feed/ 0 http://allthingsd.com/20080917/the-entire-d6-interview-with-activisions-bobby-kotick-3-of-3/ http://allthingsd.com/20080917/the-entire-d6-interview-with-activisions-bobby-kotick-3-of-3/#comments Wed, 17 Sep 2008 07:36:02 +0000 Kara Swisher http://kara.allthingsd.com/?p=3868 We’re posting all the interviews from the sixth D: All Things Digital conference that took place in late May.

Unfortunately, due to issues too complicated to go into, we have to post all the D6 interviews in several 15-minute parts (I know, I know).

But–as many readers have requested–they will all be available in their entirety in this column.

Here’s an interview I did with Activision Chairman and CEO Bobby Kotick about the state of the gaming business.

The video of the interview is in three parts.

It’s a good week to focus on the gaming industry since Electronic Arts (ERTS) abandoned its hostile acquisition bid for Take-Two Interactive (TTWO) over the weekend.

EA’s effort was motivated, in part, by Activision’s recent merger with Vivendi Games, which includes Blizzard Entertainment’s “World of Warcraft,” one the most popular multi-player games.

The merger has made Activision (ATVI), with its own well-known franchises–especially the hugely popular “Guitar Hero,” which debuted version IV at D6–one of the gaming industry’s largest companies.

In this third video, Kotick publicly demos “Guitar Hero IV” for the first time, with the help of special guest stars Paula Abdul of “American Idol” and skateboarding star Tony Hawk.

]]> http://allthingsd.com/20080917/the-entire-d6-interview-with-activisions-bobby-kotick-3-of-3/feed/ 0 http://allthingsd.com/20080916/the-entire-d6-interview-with-activisions-bobby-kotick-2-of-3/ http://allthingsd.com/20080916/the-entire-d6-interview-with-activisions-bobby-kotick-2-of-3/#comments Tue, 16 Sep 2008 07:01:52 +0000 Kara Swisher http://kara.allthingsd.com/?p=3848 We’re posting all the interviews from the sixth D: All Things Digital conference that took place in late May.

Unfortunately, due to issues too complicated to go into, we have to post all the D6 interviews in several 15-minute parts (I know, I know).

But–as many readers have requested–they will all be available in their entirety in this column.

Here’s an interview I did with Activision Chairman and CEO Bobby Kotick about the state of the gaming business.

The video of the interview is in three parts.

It’s a good week to focus on the gaming industry since Electronic Arts (ERTS) abandoned its hostile acquisition bid for Take-Two Interactive (TTWO) over the weekend.

EA’s effort was motivated, in part, by Activision’s recent merger with Vivendi Games, which includes Blizzard Entertainment’s “World of Warcraft,” one the most popular multi-player games.

The merger has made Activision (AVTI), with its own well-known franchises–especially the hugely popular “Guitar Hero,” which debuted version IV at D6–one of the gaming industry’s largest companies.

In this second video, Kotick talks about virtual goods and in-game advertising, the international market, set-top boxes, violence and “Grand Theft Auto,” the competitiveness of the gaming business, the situation at Yahoo (he was, until recently, a board member), and takes a question from the audience about social gaming.

]]> http://allthingsd.com/20080916/the-entire-d6-interview-with-activisions-bobby-kotick-2-of-3/feed/ 0 http://allthingsd.com/20080915/the-entire-d6-interview-with-activisions-bobby-kotick/ http://allthingsd.com/20080915/the-entire-d6-interview-with-activisions-bobby-kotick/#comments Mon, 15 Sep 2008 08:56:17 +0000 Kara Swisher http://kara.allthingsd.com/?p=3763 We’re posting all the interviews from the sixth D: All Things Digital conference that took place in late May.

Unfortunately, due to issues too complicated to go into, we have to post all the D6 interviews in several 15-minute parts (I know, I know).

But–as many readers have requested–they will all be available in their entirety in this column.

Here’s an interview I did with Activision Chairman and CEO Bobby Kotick about the state of the gaming business.

The video of the interview is in three parts.

It’s a good week to focus on the gaming industry since Electronic Arts (ERTS) abandoned its hostile acquisition bid for Take-Two Interactive (TTWO) over the weekend.

EA’s effort was motivated, in part, by Activision’s recent merger with Vivendi Games, which includes Blizzard Entertainment’s “World of Warcraft,” one the most popular multi-player games.

The merger has made Activision (AVTI), with its own well-known franchises–especially the hugely popular “Guitar Hero,” which debuted version IV at D6–one of the gaming industry’s largest companies.

In this first video, Kotick talks about the merger with Vivendi–which aims to inject social gaming DNA into Activision–the popularity of Nintendo’s Wii and Microsoft’s Xbox; better graphical, storytelling and character development in games; gaming on social networks; business models in the industry; and the EA attempt to acquire Take-Two.

]]> http://allthingsd.com/20080915/the-entire-d6-interview-with-activisions-bobby-kotick/feed/ 0 http://allthingsd.com/20080721/yahoo-icahn-shareholders-lose-again-or-microsoft-ad-deal/ http://allthingsd.com/20080721/yahoo-icahn-shareholders-lose-again-or-microsoft-ad-deal/#comments Mon, 21 Jul 2008 19:39:06 +0000 Kara Swisher http://kara.allthingsd.com/?p=2387

Okay, a show of hands of those who don’t want to hear another word about how incompetent the other side is in the now-settled proxy fight between activist investor Carl Icahn and Yahoo.

Icahn, whom Yahoo insisted last week was unfit to even turn on a computer, now appears to be perfectly capable of leading the troubled Internet company as a board member, along with two cronies of his choosing (with Yahoo’s consent).

What’s not clear–except for removing uncertainty and noise–is exactly what this means for shareholders or how it gets Yahoo (YHOO) back on track or even how a possible deal with Microsoft is now struck.

BoomTown honestly does not know what to think of this development, given that Yang seemed to have the upper hand in the fight after Icahn started looking too greedy in a power grab with Microsoft (MSFT) for Yahoo assets in recent weeks.

Why then give in to Icahn now? I guess to stop the annual meeting on Aug. 1 from being a three-ring circus and to take the focus off of the battle right before Yahoo announces its second-quarter earnings tomorrow against a strong economic headwind that already knocked over both Google (GOOG) and Microsoft.

(And, by the way, Yahoo’s proxyfacts.yahoo.com attack on Icahn is now miraculously gone!)

From a let’s-be-safe perspective, it’s the right move, shutting up Icahn a little bit. He’s still going on about doing some sort of Microsoft deal, of course, in order to recoup his losses on the shares he bought in Yahoo.

But unless the newly constituted board is now jetting up to Redmond en masse with a magic potion that will convince Microsoft to fork over $33 a share (remember, the old board members will get sued if they accept less), Icahn might have to cool his heels a while before Yahoo excels again.

In fact, with the old board in place–minus Activision (ACTI) CEO Bobby Kotick, who has got to be breathing a deep sigh of relief, since he does a lot of business with Microsoft–and the Icahn trio, it feels more than a little unwieldy, block-prone and probably deeply confusing.

Kind of like the United Nations, but not as well organized.

So, you get the picture of how an 11-member board works, right? The lugubrious quicksand of Yahoo prevails!

One hopes Yahoo CEO Jerry Yang–who kind of played BoomTown and the rest of us with his genuinely fake emotional expressions of horror about Icahn and distaste for Microsoft for joining with him–is now prepping another Oscar-winning performance to convince Microsoft CEO Steve Ballmer that he likes him, he really likes him.

Still, it’s nice to see former AOL head Jon Miller added to the list of possible choices for the Icahn seats.

At least the definitely competent Miller is someone who knows a thing or two about reviving an iconic Web brand in turmoil, from his stint taking over the Time Warner (TWX) unit just after the merger with AOL failed and everyone at AOL bugged out carrying sacks of money.

Speaking of sacks of money, Icahn does not get one here and neither does any other shareholder in this scenario. It seems that now the real work will begin for Yahoo.

My prediction, given the amount of bile Yang has been throwing at Microsoft: A delegation is already knocking at the door of Microsoft HQ talking about a new search deal it is willing to entertain now that Icahn taking over Yahoo is not the sticking point.

Because, for better or worse, Icahn has been bought and paid for by Yahoo.

Now, perhaps it is Yahoo’s turn to get the same treatment from Microsoft. Unless, of course, Yang has another big idea for turning Yahoo around.

In that case, Jerry, we’re all ears.

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