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Federated Media Buys Lijit Networks

Kara Swisher — Tue, 04 Oct 2011 12:00:16 +0000

San Francisco-based Federated Media Publishing said it has bought Lijit Networks, a smaller online advertising analytics and tools firm.

The price for the Boulder, Colo., start-up — which was founded in 2006 — was undisclosed, but it has received just under $29 million in venture funding from firms such as Foundry Group. Federated said Lijit would continue to operate independently, “but in conjunction.”

In an interview yesterday, Federated CEO Deanna Brown said the buy was to round out offerings for its clients and to better compete in a world where most of the online ads go to the top five players.

“I am excited we can give both publishers and advertisers more tools for engagement and monetization,” she said.

Federated, which lost big social-media news site Mashable earlier this year, also benefits from increased scale and inventory of sites.

Lijit CEO Todd Vernon, who will become EVP of technology at Federated, said that it was ever more important for ad-focused firms on the Web to “deliver the entire stack.”

“Lijit has a core competency in the media business, and combined with FM’s best-in-class sales force, we can offer everything needed to do effective online campaigns,” he said.

Here’s the official press release:

Federated Media Publishing To Acquire Lijit Networks

Combined Entity Will Power More than 77,000 Independent Publishers Across the Web Via Comprehensive Advertising, Analytics and Reader Engagement Tools

SAN FRANCISCO, October 4, 2011 – Federated Media Publishing, which powers the best of the Independent Web, today announced the acquisition of Lijit Networks, Inc. Lijit is a leading provider of advertising services, audience analytics and reader engagement tools for online publishers of all sizes. The combined entity will reach nearly 300 million global unique visitors according to Quantcast.

Lijit, headquartered in Boulder, Colorado, will continue to operate independently but in conjunction with the rest of Federated Media Publishing. Lijit CEO Todd Vernon and COO Walter Knapp will take on corresponding EVP of Technology and SVP of Platform Revenue responsibilities at Federated Media Publishing and will report directly to Federated Media Publishing’s CEO, Deanna Brown. Additionally, Lijit board member Seth Levine from Foundry Group will join the Federated Media Publishing board of directors, effective immediately.

With the addition of Lijit Networks’ existing publisher relationships, Federated Media Publishing will now reach more than 77,000 online publishers and nearly 15,000 expert communities, making it one of the largest companies to power publishing on the Independent Web. The acquisition vastly expands the combined company’s inventory of sites, offering premium advertisers improved scale and reach.

Publishers Will Profit and Flourish

Lijit helps publishers more thoughtfully interact with and better understand their audience by providing analytics and engagement tools that build deeper relationships, lengthen time on site and increase page views. These robust and actionable audience analytics and reader engagement tools leverage intent, behavior and demographics to help publishers of all sizes increase revenue and better engage their readers.

Additionally, the combined advertising services provided by FM and Lijit will give publishers of all sizes a revenue stream that complements existing sales efforts and helps grow and monetize their website businesses, no matter what the size.

Advertisers Can More Easily Analyze and Engage

The combination of Federated Media Publishing’s premium online advertising and conversational marketing programs and Lijit’s proprietary data collection tools will empower advertisers to better understand user intent, contextual relevance and demographic information. And by leveraging the combined entity’s extensive publisher relationships, advertisers will have unprecedented scale on the Independent Web.

Introducing Programmatic Buying to the Independent Web

Programmatic buying is one of the fastest growing trends in digital media and the introduction of Lijit’s robust RTB exchange will equip media buyers with one of the largest platforms available. Over the next few months, Federated Media Publishing and Lijit will develop a series of private exchanges that will highlight leading independent publishers. These exchanges will allow brands to engage active, passionate consumers found in highly conversational online communities and publications, while delivering premium CPM rates via FM’s conversational marketing programs.

Quote

“The Lijit Networks team is just as passionate and committed to powering publishers as we are at Federated Media Publishing and that was a crucial element to this decision,” said Deanna Brown, chief executive officer, Federated Media Publishing. “Our combined relationships, proprietary tools and conversational marketing services will be invaluable to publishers and advertisers alike.”

“Federated Media invented how to leverage authentic voices and engaged conversations that exist in the Independent Web,” said Todd Vernon, founder and CEO of Lijit Networks. “The combination of the two companies is a game changer in the industry that unlocks new opportunities for both companies and our combined publisher network.”

Twitter in Talks to Buy TweetDeck

Amir Efrati — Mon, 18 Apr 2011 20:47:51 +0000

Twitter Inc. is in advanced talks to buy TweetDeck Inc. for around $50 million, people familiar with the matter said.

TweetDeck is one of the add-on programs that help Twitter users view and manage short messages carried by the service, which are known as tweets.

A Twitter spokesman declined to comment. TweetDeck’s chief executive, Iain Dodsworth, didn’t respond to requests for comment.

Read the rest of this post on the original site »

Bill Gross's UberMedia Raises $17.5 Million From Accel, Index and Steve Case

Kara Swisher — Mon, 14 Feb 2011 17:04:37 +0000

UberMedia, which just bought TweetDeck for $30 million in equity last week, has raised $17.5 million, in a round led by Accel Partners.

The valuation for the Pasadena, Calif., start-up founded by well-known entrepreneur Bill Gross (pictured here)–which was actually struck some month ago–is $40 million.

Accel’s Jim Breyer will join the board of UberMedia, maker of social media reading and posting tools, which is currently largely aimed at the Twitter ecosystem.

“We are hoping to work very closely with Twitter, which is certainly our goal, as well as other social media platforms like Facebook,” said Breyer in an interview with BoomTown this morning, answering a question about previous tensions between Twitter and UberMedia. “There will be a lot of efforts to monetize Twitter and there is no silver bullet.”

Index Ventures and Steve Case’s Revolution Ventures also participated in the round.

The company did not reveal the amount raised, nor the valuation for UberMedia.

But many like him are trying to find a way to monetize the huge microblogging platform–including Twitter–and take advantage of its enormous scale.

Gross founded the start-up last spring.

Armed with $3.5 million in venture funding from a group of leading investors, including Index, Revolution, betaworks, First Round Capital and angel investors such as Mahalo’s Jason Calacanis and BuzzMachine’s Jeff Jarvis.

Started in Gross’s Idealab start-up incubator and called TweetUp (and then PostUp), it was initially cast as a keyword-based bidding marketplace akin to Overture/Goto.com, the first paid search system he created a decade ago.

TweetUp also offered an organic search service to surface the best tweets. This put it at odds on several fronts with Twitter, which began to aggressively move to take over key parts of its business that had largely been left to third-party developers.

That still remains UberMedia’s essential goal, and Breyer hopes that the new investment will show Twitter that UberMedia hopes to work in harmony with it, as other developers have done successfully with Facebook. (Accel and Breyer himself are big investors in the social networking giant, so he should know.)

“Like Twitter, we want to drive the customer experience,” he said, pointing out successes such as the Zynga gaming service. “This is a lot like Facebook several years ago and cooperation worked out well for everyone.”

Here’s the official press release:

Accel Partners Leads Investment Round in UberMedia, Jim Breyer Joins Board of Directors

PASADENA, Calif.–February 14, 2011–UberMedia, the leading independent provider of applications for reading and posting to Twitter and other social media platforms, today announced that it completed a financing round led by Jim Breyer of Accel Ventures. Existing investors Steve Case of Revolution Ventures and Danny Rimer of Index Ventures also participated.

“At UberMedia, our goal is to enhance the Twitter experience with functionality in our clients and to be the best partner with Twitter in growing and enhancing their ecosystem,” said Bill Gross, Founder and CEO. “In particular, the addition of Jim Breyer to our board will really enable us to succeed at this mission. His experience on the boards of Wal-Mart, Facebook, Marvel Entertainment, Dell and so many other high-profile consumer brands will be particularly helpful.”

“We’ve been watching closely Bill’s efforts at UberMedia to build upon the ground-breaking communications platform created by Twitter,” said Jim Breyer of Accel Partners. “We see a tremendous business in the kinds of innovations in user experience being developed at UberMedia. The result of these efforts will be an expansion in the number and variety of people engaged with Twitter as well as a method for advertisers to reach consumers in highly targeted and relevant ways.”

And here are two video interview I did with Gross last April when the company was founded:

[ See post to watch video ]

AOL + Huffington Post Won't Go to 11. But It Does Make Sense.

Peter Kafka — Mon, 07 Feb 2011 11:30:09 +0000

There are lots of Web M&As that don’t make much sense. But after you get past the “OMG!!!!!” novelty of AOL’s $315 million Huffington Post buy, this one has a straightforward logic to it: Old, big, slow company buys new, small fast company, hopes some of the zippy mojo rubs off.

Steve Case is right to point out that AOL CEO Tim Armstrong’s “one plus one equals eleven” logic didn’t pan out during the first boom, when Case was running AOL and engineered the disastrous Time Warner deal.

But here, at least, both companies are trying to do the same thing: Make a lot of Web stuff at a low price, and sell ads against it.

So maybe AOL + HuffPo won’t equal 11. And maybe 10x Huffington Post’s reported 2010 revenue is a very pre-Lehman multiple. But the broad strokes here make sense to me:

AOL is pushing its workers very hard to make more content it can sell. HuffPo is a content-making machine:

Huffington Post still has the reputation as a left-leaning political site written by Arianna Huffington’s celebrity pals. In reality, it is most concerned with attracting eyeballs anyway it can. Sometimes it’s with well-regarded investigative journalism, and much more often it’s via very aggressive, very clever aggregation. And sometimes it’s by simply paying very, very close attention to what Google wants, which leads to stories like “What Time Does The Super Bowl Start?“

However they’ve done it, it’s worked–much more efficiently than AOL, which is headed in that direction as well. AOL reaches about 112 million people in the U.S. every month with a staff of 5,000. The Huffington Post, which employed about 200 people prior to the deal, gets to about 26 million.*

AOL can start selling this stuff immediately:

HuffPo reportedly generated around $30 million in revenue last year, but that was done using a relatively small staff that sales chief Greg Coleman had just started building. AOL’s much bigger sales group, which has just about finished its lengthy reorg, should be able to boost that performance immediately.

AOL can afford it:

Tim Armstrong’s company ended 2010 with $725 million in cash, much of which it generated by selling off old assets. This seems like a relatively easy check to write and one that shouldn’t involve a lot of overlapping staff–AOL figures it will save $20 million annually in cost overlaps, but that it will spend about $20 million this year on restructuring charges. HuffPo is about four percent of AOL’s size, and several of its top executives are already stepping aside. (This is the second time in two years that sales boss Greg Coleman has been moved out of a job by Tim Armstrong.) The biggest risk here will be in the way that Huffington, who is now editor in chief for all of AOL’s edit staff, gets along with her new employees. On the other hand, morale is low enough at many AOL sites that it will be hard to make things worse.

AOL Gets a Really Big Brand:

There’s some downside risk to attaching Arianna Huffington’s name to a big, mainstream media brand, as her politics and/or persona might scare off some readers and/or advertisers. But two years after Armstrong arrived from Google, AOL still doesn’t have a definable identity, other than “the Web site your parents might still pay for even though there’s no reason to do so.” Being known as “the guys who own Huffington Post” is infinitely better than that.

HuffPo’s “pro” list is much shorter, but only because there’s not much to think about for them: Huffington, co-founder Kenneth Lerer and their backers get a nice return on the five years and $37 million they put into the company. And those who stay on get to leverage the benefits of a much larger acquirer–access to more eyballs and more advertisers. Easy enough to understand.

Spinal-tap-ampli
Uploaded by TZA. – Click for more funny videos.

*(Something about these numbers, culled from AOL’s and Huffington Post’s own releases, doesn’t add up, as AOL now says the combined company will have 117 million uniques. But it’s close enough for now.)

Dell: Merrill Ups to Buy

Eric Savitz — Wed, 10 Feb 2010 15:40:22 +0000

Bank of America/Merrill Lynch (BAC) analyst Scott Craig this morning lifted his rating on Dell to Buy from Neutral, setting an $18 price target on the stock, which yesterday closed at $13.55.

Craig writes in a research note that he still thinks “long-term challenges remain” for Dell (DELL) and its business model.” But he notes that the stock is down 12% since November on skepticism around gross margin. “Low investor sentiment, high short interest, compressed valuation, possible enterprise refresh and likely positive EPS revisions position the shares for better performance in 2010,” he writes.

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New Way to Flit from Store to Store

Katherine Boehret — Wed, 03 Feb 2010 02:16:00 +0000

Imagine going to the mall in search of a new pair of black leather gloves. But this time, rather than starting the search by going straight to your favorite stores, which look familiar and carry recognizable merchandise at expected prices, you must walk to the center of the mall and sort through a giant bucket of gloves with few identifying marks other than price.

Wacky as this scenario sounds, it’s the way many people shop online every day. They look for specific items by searching Web sites like Amazon.com (AMZN) and eBay.com (EBAY), where results are displayed in big lists without much association to stores. That means all the details a customer knows about a store—its ambiance, prices, style, quality and variety—aren’t put to use.

[ See post to watch video ]

This week, I shopped online with Flit.com, a free Web site owned by San Francisco-area company enterONCE LLC that encourages people to shop using the same method they use at the mall: Start inside familiar stores, not in a giant bucket of products. It’s designed so people will enter a search item once and receive multiple suggestions of places where the item might be sold. As shoppers “flit” off to those stores, Flit.com serves as a home base, remembering the original search so shoppers can flit back, choose different stores and shop from there again and again.

I used Flit.com to shop online for black high heels, a digital camera, the iPad (not yet available), a robe, running sneakers and black leather gloves. I found that using it saved me from having to manually enter multiple URLs, and I liked how it helped me shop from store to store, since I already associate certain styles with each.

Select from the list of stores carrying black dresses. The store’s Web site opens to reveal all the black dresses carried there.

A male colleague of mine explained that he doesn’t naturally shop according to stores, so it’s worth noting that Flit.com may appeal to women more than men. I wish Flit.com had a way of combining its store shopping with side-by-side comparisons of the same product; the company plans to add this in March.

The Flit.com shopping process works as follows: Type in a search item, such as “red dress,” then choose to search in Value or Premium stores and press the Enter key. This returns a list of stores from a pool of more than 300 that carry red dresses; store categories can be selected to return more accurate results. Select one store, and its Web site opens to reveal all the red dresses carried there. Search results include stores like Target, Best Buy (BBY), Bloomingdales, Sam’s Club and J. Crew, as well as popular shopping sites like Amazon, NexTag, Buy.com and eBay.

The value behind Flit.com’s method of flitting you out to individual store sites is twofold. First, you still get to shop on a store’s own Web page, many of which were designed to uniquely reflect the store’s spirit and style. Lots of shoppers have saved shipping and credit card information with a store Web site, or they have coupon codes or gift certificates to use there. Shopping on each store’s page rather than on a general shopping site lets them tap into that data.

Type in an item such as ‘black dress’ (above), choosing to search in Value or Premium stores.

Second, after you flit off to a store Web site, an orange button remains in a Flit.com toolbar at the top of the page; click there to return back to home base before flitting off to yet another shopping site. Flit.com will keep a breadcrumb trail of where you have gone in your shopping session, using store icons to represent each site that was visited. You can place a check mark beside sites to remember them.

Flit.com’s search results are only as good as each individual store’s search engine, so if a store doesn’t do a good job of querying its own inventory, you’re out of luck.

The Flit.com home page would benefit from offering more ways to sort stores, such as by price range rather than just by using Value, Premium or alphabetical order—especially because “value” and “premium” mean different things to different people. The company’s CEO says Flit.com will likely add sorting by price and other categories by this spring.

In a hunt for a robe using Flit.com, I was surprised to see that of the 12 top stores that appeared at the top of the list, seven of them didn’t carry robes, according to what the store sites told me when I linked out to them. I asked Flit.com’s CEO about this and he said that search returns don’t filter out some stores that may have limited or no selections, and that this is valuable because it shows shoppers that a certain store doesn’t carry an item—just like physical shopping. I had hoped that one advantage to Flit.com would be less virtual wandering in stores that don’t carry what I am looking for.

Banana Republic, Gap and Old Navy Web sites, all owned by the same company, didn’t display the orange toolbar button that returns shoppers to Flit.com because they use their own toolbar at the top of their pages.

It’s too bad that Flit.com’s breadcrumb trail, which tracks where a user has shopped, doesn’t hold specific items. For example, I found the same pair of running sneakers in my size after digging into Web sites for Road Runner Sports and Zappos, but I couldn’t save the shoes anywhere. Flit.com’s CEO says capturing individual products and merging them into the search trail will be offered in March.

Snipi.com, a free shopping site I reviewed last spring, uses a toolbar for holding items that are dragged and dropped into it so they can be remembered and revisited for buying at a later time. Flit searches can be saved or shared with others with the “save your shopping session” button. It prompts the user to enter an email address for sending a Web link of the saved session.

Flit.com is currently funding its operating costs from an original private investment and doesn’t have any formal relationships with the stores where it sends users. The site’s CEO says the company hopes to negotiate a system where it gets paid by the stores, or by third parties, for any business it generates.

After doing a lot of flitting, I noticed a screen between the Flit.com search results page and the store page that asked if I wanted to share Flit with friends, and offered to let me do so through email or a social-networking site like Twitter or Facebook. This screen pops up roughly every 25 flits, according to the company, but it includes a step to skip this and continue to the store’s Web page.

The people working at Flit.com seem to know what the site needs to improve, thus preventing it from being just another fleeting online shopping site. Its shopping trail needs a little help, as do its result categorizations, but the way it lets users shop online starting with familiar stores makes Web shopping comfortable and easy, much like visiting physical stores.

Edited by Walter S. Mossberg.

Write to Katherine Boehret at mossbergsolution@wsj.com

Philip "Pud" Kaplan Talks About Blippy–the Twitter of $$

Kara Swisher — Wed, 23 Dec 2009 16:59:37 +0000

To start, let’s just dispense with huffing and puffing angst over whether or not people should broadcast their credit card transactions online.

Because that’s what you can do on a new site, with the unlikely name of Blippy, headed by longtime Silicon Valley entrepreneur Philip “Pud” Kaplan.

Blippy has already gotten a lot of oh-dear attention for its premise, which is yet another step in the continuing socialization of everything a person does–the inevitable trend toward radical transparency online.

Now in invitation-only private beta, the new service sends out messages about the type and amount of the transaction, every time you use your credit card–at least the one you designate your “Blippy” card–for others to see and comment on.

In other words, a kind of Twitter for spending.

The twist of Blippy–whose motto is: “What are your friends buying?”–is that it is more passive than the more active tweeting or texting.

(Presumably someday, your body will tweet from the gym, or while you are sleeping.)

While most of the transactions don’t contain a lot of information–for example, “cat spent $3.55 at In-N-Out Burger”–Blippy is obviously going for deeper information and already has it for sites like Apple (AAPL) iTunes and Amazon (AMZN).

Retailers and restaurants and any vendor might also benefit from the flow of information, finally knowing who their best customers really are and perhaps rewarding them.

And, of course, the key part is that your friends see what you are buying and you can all jabber online about what you bought, how much you paid and what you thought.

How it is all going to make money is being pondered, of course, but you might imagine a dedicated Blippy credit card or some kind of analysis of the data or sale offers to users.

And integration with Facebook and Twitter seems inevitable, eventually widening the circle of nosy friends, as does the emergence of reviews, mobile apps, search and more.

Kaplan came to All Things Digital Worldwide HQ–also known as the cottage behind my house–to chat about all this and more.

He is, of course, best known for a site he created during the Web 1.0 bubble, called FuckedCompany, which chronicled the ongoing start-up implosion as it happened.

Kaplan later started online advertising service AdBrite and was an Entreprenuer-in-Residence at Charles River Ventures for a short time after he left AdBrite.

It was there that he met Blippy co-founders Ashvin Kumar and Chris Estreich. Funding for the trio is forthcoming, said Kaplan.

Here’s Kaplan holding forth in a longish video interview, where we curse and discuss my porn-and-Cheetos spending habits (don’t judge!):

[ See post to watch video ]

And, in the spirit of full transparency, here is Kaplan in two videos on YouTube–in one he is sweetly singing “Easy” with his wife and in the other, he is drumming like a heavy metal lunatic:

The ABCs of Wii, Xbox and PlayStation 3

Katherine Boehret — Wed, 09 Dec 2009 00:47:12 +0000

With holiday shopping comes anxiety about getting the right gifts. Does Dad already own a copy of “Frank Sinatra’s Greatest Hits”? Was Mom expecting a new pepper mill, or was that Aunt Carol? It’s even worse for people shopping for the video gamers in their lives: Understanding the technical specifications of each console can seem as difficult as getting to the highest level in a game of Halo.

This week, I’ve done the dirty work for you: I’ve amassed a collection of vital details about the three most popular systems—Microsoft’s (MSFT) Xbox 360, Sony’s (SNE) PlayStation 3 and Nintendo’s Wii—so that you can get a handle on what each offers and what it will cost you.

Nintendo Wii

Nintendo recently dropped the Wii’s price, for the first time, to $200 from $250. The Wii Console comes with a controller, an additional controller called a Nunchuk, and the Wii Sports game, which includes baseball, tennis, golf, bowling and boxing. It holds 512 megabytes of flash memory, but you can increase this by inserting SecureDigital memory cards. It also accepts high-capacity SD cards, or SDHCs, of up to 32 gigabytes.

The couch-potato world of videogamers was shaken up when the Wii, with its motion-sensitive remote control, was introduced about three years ago. Users can play Wii Golf, for instance, by swinging the remote like a golf club. In September, Nintendo added to its lineup a $20 remote-control accessory called Wii MotionPlus that was designed to add more precision to game motions. I tested this snap-on piece and found that it did make the Wii’s motions feel more realistic. But it works only with Wii MotionPlus games—and there are only six of them; 10 more are planned for 2010.

Wii encourages users to move around in more ways than just waving a remote: Its Wii Balance Board, which comes with the Wii Fit Plus game in a $100 bundle, works like a digital exercise step. It records the body’s weight shifts and movements for activities from yoga to wake-boarding.

The Wii accesses the Internet and lets users compete online against others. About 655 packaged games are available for between $30 and $50. Also, you can use pre-purchased Nintendo Points to buy and download about 150 WiiWare games and over 325 titles from the older Virtual Console library. Each game costs between 300 and 1,500 points, or between about $3 and $15.

WiiConnect24 can send messages from one Wii to another over the Internet, as long the two users exchange “Wii numbers.” Users can also surf the Web with Wii’s Opera browser. But beyond this, no other Web features—like downloadable movies, social-networking applications or streaming music—will work on this system.

Parental controls can be set on the Wii to restrict kids from using the Web browser, playing games that have a certain rating or communicating online.

Microsoft Xbox 360

Microsoft recently stepped up its game by adding features to its $200 Xbox 360 that make it well-rounded rather than strictly geared toward serious gamers. People who buy the Xbox LIVE Gold membership, for $50 a year, get applications for Facebook, Twitter, the Last.fm music-streaming service, online multiplayer game play, video chat, Netflix (Netflix subscription required), photo sharing via the Xbox, and movie or photo “parties” that allow users to watch a movie simultaneously with seven other friends.

Xbox LIVE Silver membership is free and includes basic features like voice and text chat, as well as access to the Zune video library’s 20,000 TV shows and movies to buy or rent. The Xbox also allows media-streaming over a home network. To wirelessly connect to the Internet on your Xbox, you’ll need to buy a $100 Wi-Fi adapter. By contrast, the Wii and PlayStation 3 have built-in Wi-Fi.

Anyone who owns a Microsoft Zune media player can buy a TV show or movie and download it to an Xbox or PC as well as the Zune. Zunes can be plugged into the Xbox to play music, as can Apple (AAPL) iPods.

The base Xbox comes with a wireless controller and 512 megabytes of memory. For $100 more, the Elite Holiday Bundle includes a 120-gigabyte hard drive, headset, wireless controller, and two games: “LEGO Batman: The Videogame” and “Pure.” More than 1,200 games are available for the Xbox, mostly costing between $29 and $60. About 350 of the games can be downloaded from the Xbox LIVE Arcade (costing 400 to 1,600 points, or $5 to $20) or the Games on Demand library.

Microsoft confirmed plans to introduce Project Natal, a system that lets people operate games with gestures and body movements rather than remote controls. Natal will work with all Xbox 360 consoles. Microsoft won’t confirm a date.

Family settings let parents control whether their kids play games online and with whom they play, as well as the ratings of the games. A Family Timer regulates how long kids play.

Sony PlayStation 3

Sony’s PlayStation, like the Xbox 360, is designed with serious gamers in mind. Its base version costs $300 and includes a 120-gigabyte hard drive and a DualShock 3 wireless controller; $50 more buys a version with a 250-gigabyte hard drive. Both systems can be upgraded with any standard 2.5-inch hard drive. The PlayStation is also a Blu-ray disc player.

Like the Xbox, the PlayStation 3, or PS3, now offers extra features, but these features are all included in the PlayStation Network, which is free (not $50 yearly like Xbox LIVE Gold). These PlayStation Network extras include Netflix (NFLX) instant streaming, a Web browser, photo slide shows, the ability to stream media over a home network to the PS3, a Facebook application that shares game information with friends and the PlayStation Network video-delivery service, where users can purchase 2,400 high- and standard-definition movies and 15,000 TV episodes.

The PS3 and the PlayStation Portable, Sony’s portable gaming device, are married in many ways. A new feature called Blu-ray Portable Copy lets users make a free standard-definition copy of some Blu-ray movies for transfer to a PlayStation Portable. Remote Play lets people stream media files from the PS3 to the PlayStation Portable in Wi-Fi hot spots or remotely turn the PS3 on or off using the PlayStation Portable. Movies and TV shows from the PlayStation Network can be transferred to either system, so you can start a movie on a big-screen TV and finish it on the PlayStation Portable; the same can be done for games.

About 400 games are available on Blu-ray for the PS3; these cost between $30 and $60. More than 150 titles, costing between $3 and $40, can be downloaded directly to the PS3. Sony confirmed that it will release a motion-sensing controller, but it hasn’t set a date.

Parental restrictions for the PS3 include the ability to restrict games, DVDs and Blu-ray discs with certain ratings. Parents can also limit monthly spending or Web browsing.

Games: A Cheat Sheet

Here are some of the key differences among three popular videogame systems.

	NINTENDO WII	XBOX 360	PLAYSTATION 3
Price	$200	200 or $300*	$300, $350
Includes	Wireless controller, Nunchuk, Wii Sports	Wireless controller/ Wireless controller, headset, 2 games	DualShock 3 wireless controller
Additional remotes	$40 wireless; Nunchuk is $20	$50 wireless, $40 wired, $20 headset	$55 DualShock 3 wireless controller, $50 Bluetooth headset, $40 PlayStation Eye, $25 Blu-ray disc remote control, $50 wireless keypad
Memory	512 MB, can be increased with SD cards	512 MB, $300 Xbox comes with 120 GB	120 GB or 250 GB
Built-in Wi-Fi?	Yes	No. $100 Wireless adapter sold separately	Yes
Games	1,100	1,200	550
Cost of Games	30-$50; $3-$15 for downloads	Most are $29-$60; $5-$20 for downloads	$30-$60; $3-$40 for downloads
Other features	Web browser, ability to message other Wii consoles	Netflix, Last.fm, movie parties, MSN Messenger, Facebook, Twitter, photo sharing, online multiplayer gaming	Netflix, Facebook integration, photo slide shows, PlayStation Network videos, online multiplayer gaming
Extras	$100 Wii Balance Board and Wii FitPlus, $20 Wii MotionPlus	Xbox LIVE Silver is free, Xbox LIVE Gold is $50/year	Blu-ray disc playing, multiple tie-ins with Playstation Portable
Family Settings	Restrict online browsing, communication, game ratings	Restrict online play, with whom users can play, game ratings, time spent playing	Restrict online play, games or movies with certain ratings, monthly expenses, Web browsing
Relationship w/portable device	Wireless, free demo downloads from Wii Channel onto DS or DSi	Play videos bought anywhere on Zune, PC or Xbox 360	Blu-ray Portable Copy gives free copy of some movies for transferring to PlayStation Portable
Media streamed to console over home network?	No	Yes	Yes
* for Elite Holiday Bundle

Email: mossbergsolution@wsj.com

Write to Katherine Boehret at mossbergsolution@wsj.com

Corrections & Amplifications

Xbox LIVE Gold costs $50 a year. A previous version of this story incorrectly stated in the second reference to the price that it costs $50 monthly. Also, the Xbox 360 can be connected to the Internet via an ethernet cable for free, as well as via Wi-Fi. A previous version of this story incorrectly stated that connecting your Xbox to the Internet would require the purchase of a Wi-Fi adapter.

Sprint Undervalued by as Much as 50 Percent? Keep Dreaming…

John Paczkowski — Tue, 08 Dec 2009 17:05:38 +0000

If Sprint, as Barron’s recently claimed, deserves more respect on Wall Street, it’s not going to find it at Pali Research, which clearly does not see the same 50 percent upside potential in the company’s shares.

In a note to investors this morning, Pali analyst Walter Piecyk says he’s not buying predictions about Sprint (S) returning to growth in 2010. Sure, the company is improving post-paid subscriber losses, says Piecyk, but not as quickly as it needs to. And its prepaid business, which already faces a fair bit of competition, will be confronted with even more competition next year.

“Over the past six months our concerns have been rising over the slow pace of change at Sprint and what we view as lost opportunities for growth, but we maintained our Buy rating due to the low valuation on the stock and the depressed expectations of investors,” Piecyk writes.

“Those concerns increased in recent months as the pre-paid business, which Sprint has been accessing for growth, became more competitive and Verizon began executing on a more open device strategy,” the analyst adds. “In the past few weeks, investors have become more optimistic about positive post-paid signs early in Q4 and Sprint’s prospects of even stronger pre-paid results in 2010, in the face of increasing competition.”

In contrast, Piecyk notes that “We are less confident about those trends and as we model out a more competitive market in 2010 for all our companies it becomes evident to us that Sprint will be challenged to stabilize EBITDA. Faced with negative catalysts in the months ahead and the challenge of appropriately valuing a company whose EBITDA is in perpetual decline, we believe now is the right time to downgrade the stock to Neutral.”

Wall Street, then, isn’t underestimating Sprint’s prospects for 2010. It’s overestimating them–or at least it certainly was yesterday.

“For 2010, we expect post-paid losses to be pared by 35% to 2.3 million subs lost compared to our prior estimate of less than 2 million subs lost in that year,” Piecyk concludes. “While pre-paid net adds might offset the losses or even top post-paid losses in Q4 we expect the total customer base to decline by 700,000 in 2010.”

Wall Street Punishes Netflix for Making Wall Street Happy

Peter Kafka — Fri, 04 Dec 2009 18:11:27 +0000

Shares in Netflix, which have have more than doubled in the last year, are a bit down today, sagging some three percent. What gives?

Best to be wary of anyone who tells you why a stock moves on a given day, but a good bet here would be: Shares in Netflix have more than doubled in the last year.

That go-go growth prompted Citigroup (C) analyst Mark Mahaney to downgrade the stock from “Buy” to “Hold” late yesterday. It’s the kind of perverse punishment that Wall Street occasionally doles out to companies it loves, sort of akin to Yogi Berra’s “It’s too crowded, nobody goes there anymore” malapropism.

In any case, Mahaney makes it clear that while he’s dinging Netflix (NFLX) the stock, he loves Netflix the company. Still, if you wanted to find reasons to worry about the company, you don’t have to look very hard: For many years, it owned the market for a la carte entertainment delivered straight to your home. But that’s finally changing.

Cable companies like Comcast (CMCSA) have finally started to figure out how to promote video on demand, and a bevy of digital types, from Apple (AAPL) to Amazon (AMZN) to Google (GOOG) will be beefing up their home entertainment offerings in the next year.

Then again, prognosticators have been predicting that Netflix would get overtaken by heavyweights since it launched. No one has caught it yet.

Ignore the Twitter Buyout Rumors: Here Are the Facts in Five Beyoncé-Madonna-Approved Steps

Kara Swisher — Tue, 05 May 2009 11:00:25 +0000

Was it more than a month ago that Google was rumored to be in “late-stage negotiations to acquire Twitter”?

Not so much late-stage, I guess, with a gestation period that seems interminable (and BoomTown has been there, so can speak from experience about interminable pregnancies).

In fact, I’m still waiting for the Google (GOOG) takeover news floated inaccurately back then to cross our desk at All Things Digital HQ, although it’s more likely Godot will show up first.

So I guess it should come as no surprise that it was time to fob yet another rumor that yet another moneybags of a company–this time, Apple (AAPL)–is in “late-stage negotiations to buy Twitter.”

You could set your broken-but-right-twice-a-day clock by it, in fact.

But despite very serious interest in Twitter by every company that can afford considering such a thing, getting across that late-stage line would require major investors in the microblogging service to be involved, and they are not as yet.

In fact, both Twitter co-founders, Evan Williams and Biz Stone, are in New York today to attend the 2009 “Time 100″ dinner, which fetes this year’s influential people honorees selected by the magazine. Which they are.

So, if they are in serious talks with Apple, they better grab that award and head on home tout de suite.

In point of fact, talks with Facebook last year were actually the only truly deep sale discussions that Twitter has been involved in, and those went south.

Oh, the very notion of Apple and Twitter is a Techmeme dream-ticket, sure to be chewed over for days on end. (I once considered doing a post that just said “AppleTwitterAppleTwitterAppleTwitter…” for 1,000 words to see how much idiotic traffic I would get.)

But given that it is too good to be true for now, rather than be on the edge of your seat about all these endless, alleged late-stage high jinks, here is a five-step list to cut out and keep when the rumors of “late-stage negotiations” with Microsoft (MSFT), News Corp. (NWS), Verizon (VZ), Yahoo (YHOO), Time Warner (TWX) online unit AOL, Comcast (CMCSA), Cisco (CSCO) and more inevitably show up.

1.) Belle of the Geek Ball

Everyone is indeed actually interested in buying Twitter and each has expressed a proper level of interest to the company’s execs–especially to over-contacted CEO Williams–about said interest.

And, because this is America, a bid for Twitter could come at any time and in any amount.

That’s why Apple has indeed said hello. Why Microsoft’s business development team has been busy formulating a valuation. Why Google’s M&A guy, David Lawee, has called into Twitter’s HQ many times with kind expressions of desire. And why News Corp. execs, including Rupert Murdoch himself, have murmured tweet nothings to the Twitter team.

Please note: This is not the same thing as “late-stage negotiations.” Not at all; so don’t believe such things, as you will see this one coming down the pike for miles (see Step #4 below).

If there ever were an Apple deal to be done, it would not be living in some tidy vacuum.

For example, does one imagine Google CEO Eric Schmidt–who is on the Apple board, much to the FTC’s chagrin, it seems–would decline to enter the fray? Oh, he’d be up to his conflicted eyebrows in it at this point.

(Full disclosure: ATD is also considering making a bid for Twitter, but only if I get to name who is called Chief Twit.)

2.) We Feel Pretty, Oh So Pretty

Twitter’s Williams, as well as Stone, do not really want to sell just yet, given the huge traffic over the last year, goosed even further by the whole Oprah-Ashton Kutcher axis of Tweetvil.

Twitter is growing and growing and growing. Does that mean it has peaked or is just crossing over into the mainstream?

I would say the latter and so would its investors and execs.

I have done a lot of reporting and have found that most of them would like a chance to ride this rocket ship and see if they can prevent it from being a shooting star by figuring out some viable, innovative and lucrative business plan.

“Twitter really could make a lot of money,” said one investor. “And we are not just making that up either.”

Well, phew, because I have been a little worried about that.

3.) We’re Living in a Material World, and I Am a Material Girl

That said, as Madonna sings, a pile of cash is a pile of cash and if one of the suitors makes a big move with $600 million or more in cash, it would be hard for Twitter to completely ignore such an offering.

But, in any case, there will be no late-stage negotiations with one player.

Instead, an epic free-for-all wrestling match to the death would break out among all of them, especially Google and Microsoft.

This will be great for me and all the other tech writers as it will be ugly, competitive and tailor-made for breathless reporting.

Google is the likely winner here, although Microsoft is quite intent on the possibilities of integrating Twitter technology with its business offerings.

Someone will, I can predict with certainty, lose an eye.

4.) All the Single Ladies…Cuz if You Liked It, Then You Should Have Put a Ring on It

And, even with that kind of offer–which I would take in a New York minute, as would some Twitter investors–there is a sense when you talk to Twitter’s founders and investors that they truly believe they are onto some very important interactive communications paradigm shift in the Internet arena with their start-up.

I would have to agree given that the real-time and status-update concepts that Twitter has perfectly touched on are a very important one.

Thus, Twitter would prefer to remain independent for now.

Whether Twitter will prevail or not is never assured, but it would be really a shame if it gave up before the story was over.

5.) And They Lived Happily Ever After

Let’s be honest: There is no real downside here for Twitter.

If the service turns out to be be a flash in the pan and it is not sold for big bucks, Twitter still has heralded a very important new era in the digital industry.

And, if it grows like crazy even more, better still.

Also, Stone got to go on “The Colbert Report” and Williams on “Oprah.”

Best of all, in a shameless plug, they will both be captive on stage with Walt Mossberg and me at the seventh D: All Things Digital conference exactly three weeks from today, where we can ask them about all this and more.

So, I am thrilled too.

Who says there are no happy endings?

Until that D7 interview, here is my recent video with Williams and Stone at Twitter’s funky San Francisco HQ:

[ See post to watch video ]

Buying and Selling Among Friends

Katherine Boehret — Wed, 04 Mar 2009 00:28:03 +0000

Gone are the days when giving away your old stuff involved getting in the car and hauling bags to the local Salvation Army. Now, with a little Web know-how, you can find a number of ways to turn your trash into someone else’s treasure — from companies that send you prepaid shipping materials to people who will pick up the items from your house.

But even though you can use these services without leaving home, many of them still require you to go to a specific Web site — one you wouldn’t necessarily visit regularly. Sites like Gazelle.com and Venjuvo.com that pay cash for old electronics (or just recycle them) aren’t exactly online destinations.

Now one of those ways to unload your stuff involves a Web site you might visit many times a day. A site that has considerable sway in the social-networking world, where over 175 million active users go to share personal stories, photos and videos with hundreds of “friends.”

That’s right, I’m talking about Facebook. Tuesday, the social-networking giant announced its new Facebook Marketplace, Facebook.com/Marketplace, an integrated application powered by Oodle, known for its work with online classified ads. Marketplace uses colorful icons to represent four actions you can take in its app: Sell It; Sell for a Cause; Give it Away; and Ask for It.

Facebook Marketplace users can pick from 12 categories of listings, as well as buy or sell items for a favorite cause.

Oodle granted me early access to the Marketplace app before it became available Tuesday. A friend of mine and I were both set up with test accounts so that we could see one another’s fake Marketplace items and interact with one another within Marketplace; hundreds of Oodle employees also were testing this. (It was fun to see what people offer for sale when they’re just pretending, like one person who offered to sell everything on a colleague’s desk when he was out.)

Facebook’s original iteration of Marketplace started back in 2007, but was geared toward services like housing and jobs. The Oodle-powered Marketplace is merchandise-centric and includes more detailed organization, deeper integration with Facebook, and ways to buy or sell things to raise money for 1.7 million causes.

It still lacks a built-in electronic payment system, such as PayPal or Discover card, for exchanges between users or donations to causes. Instead, Marketplace encourages its users to exchange money however they choose, like traditional classified ads. And that could cause some obvious problems. For instance, if an item were sold for a cause, the seller could later donate the amount via credit card after closing a listing. But there’s no guarantee that the seller will actually do this. Oodle says it will listen to feedback from the Facebook audience and will try to integrate e-payments, if preferred.

Every posted item can include a location, description, category, photo and an explanation of why it’s in the Marketplace. Each item is reviewed by Oodle’s fraud-detection program, which looks for inappropriate content and suspicious activity, and a post could take up to 30 minutes to appear online after you submit it. My posts displayed almost instantly in the Marketplace newsfeed. Users also can opt to publish their posts to their Facebook profiles.

One example of Marketplace’s newly detailed organization comes in its browsing options. The old version of Marketplace had options to browse through jobs and housing, but not specific categories of items for sale. Now, users can browse through 12 categories of specific items including “Home & Garden,” “Baby & Kid Stuff,” “Tickets” and “Musical Instruments.” Items that don’t fit into these 12 categories are put into an “Everything Else” category.

Each item in Marketplace integrates with Facebook’s familiar format, like having its own online “wall” where questions and comments appear. If you’re looking for something in Marketplace by using the “Ask for It” option, you can recruit people to help you find the item by selecting from your list of friends, which works the same way people can suggest Facebook people to friends who might know them. Glancing at an item shows the seller’s profile photo, a link to all of the person’s listings and a brief history of his or her overall Marketplace activity, such as “3 listings in the last month.”

The integration of charitable causes into Marketplace gives supporters new ways to raise money for a favorite group like the World Wildlife Fund or Habitat for Humanity International. On the Marketplace home page, causes are displayed in a right-hand panel with a daily featured cause. This Featured Cause shows who else supports it and how many items you can buy or sell to support it.

Privacy is a natural concern in online marketplaces. By default, your posted listings are visible to any Facebook member in Marketplace. Users can opt to remain anonymous — they’re listed as “Facebook user is selling a bike,” for example. In that case, the only way someone can contact that person is by posting a comment and waiting for the seller to respond.

People who aren’t members of Facebook can see your listings by browsing and searching Marketplace, but they can’t post, comment or contact users. Unlike online marketplaces or services that can be used by anyone, Marketplace requires that users be members of the site to interact with sellers, which can be a downside. Plenty of people who aren’t on Facebook might not want to join the social-networking phenomenon just to offload the old couch gathering dust in the garage.

All user notifications — messages indicated in red at the bottom right of a Facebook page — will reflect friends’ activities in the Marketplace, unless you reset the notifications of the Facebook Marketplace app to not notify you. I suggest doing this, unless you really want to know about all your friends’ activities in Marketplace.

Four color-coded icons represent activities in Marketplace and are useful when reading lists of items at a glance: A green dollar sign represents Sell It and a red heart represents Sell for a Cause, for example. And details about each cause are integrated within Marketplace.

The Oodle-powered Facebook Marketplace is straightforward and well organized, and if you’re a Facebook user, its format will be familiar. If you’re not, and you’re looking for a way to sell or give items away for a charity or otherwise, Marketplace might encourage you to join the giant social network. But its payment program could be made a lot easier with electronic options.

Edited By Walter S. Mossberg

Email us at mossbergsolution@wsj.com. Find this and other columns and videos online free at the All Things Digital Web site: http://solution.allthingsd.com

A Go-To Web Site for Home Buyers

Katherine Boehret — Wed, 18 Feb 2009 01:20:03 +0000

Dipping a toe into the real-estate market these days can feel a lot like taking your car to the mechanic: If you don’t know what you’re doing and don’t trust the professional you hired, you may feel like someone is taking advantage of you. Thankfully, the Web’s ability to demystify intimidating topics has brought what was once considered insider real-estate knowledge to the masses.

This week, I tested Trulia.com, a real-estate site that’s geared toward helping people who are ready to buy. Trulia combines a simple approach to real estate that anyone can grasp, with enough market stats to excite number-crunching types. It also offers a community where regular users can ask 200,000 real-estate professionals questions without fear of being hounded by agents because their emails are hidden.

An iPhone app from Trulia.com uses GPS to find nearby open houses.

Trulia has been around since 2005, but started out as a site that only posted local real-estate listings in California and New York. After expanding to the national market in 2006, it added other features like pricing heat maps (color-coded to indicate prices in an area), comparable listings, an online community and automatically generated newsfeeds about specific properties and areas. Last summer, Trulia went mobile with a free iPhone app that uses GPS to find nearby open houses.

Starting Wednesday, Trulia will offer CompareIt, a tool that lets users choose five properties for sale to directly compare with one another. Before now, Trulia just generated a list of comparable properties that sold or are for sale at the bottom of a listing.

I only used Trulia for a week, and I’m not a typical buyer since I was just looking — for now. But I got a lot out of the site, especially by browsing maps of neighborhoods that I know well (I’m picky about my preferred location) and asking questions of the Trulia community. Its iPhone app listed nearby open houses according to my search criteria and also worked on my iPod touch as long as I was in a Wi-Fi zone.

Another big plus to Trulia is Newsfeed, a list that shows up on the home page with content that’s automatically generated and personalized according to your past search locations. It is updated every day and spits out stats like the number of price reductions, open houses and new listings in an area. It shows an area’s average listing price, median sales price, number of foreclosures and average price per square foot, among other things. These data are a boon for people who don’t have the time or inclination to look this stuff up, and it aggregates the data into one intelligible, quick snapshot.

I found some flaws in Trulia, like the way it accidentally listed a property that was sold five months earlier. Trulia said it relies on partners for accurate listings, and those partners get their data from Multiple Listing Services or local brokers and agents, therefore Trulia’s data are only as good as its partners’. (At least one other real-estate site also accidentally listed the already-sold condo for sale.) Another problem occurred when I tried to use the CompareIt chart on Washington, D.C., properties; Trulia said the tool doesn’t work for D.C. due to a bug that it hopes to fix. Finally, properties saved on the iPhone app won’t transfer to your Trulia Web site account. The company says it hopes to fix the iPhone issue.

Trulia’s CompareIt lets users compare five properties with one another.

One of Trulia’s competitors is Zillow.com, which displays its own price estimates for all houses in the U.S. (for sale or not) to give people an idea of the real-estate value in an area. The two sites are similar in some ways: Both show heat maps, display data about nearby schools, have mortgage calculators and use online communities to answer questions. But Zillow doesn’t offer a stat-packed Newsfeed or an iPhone app like Trulia.

After browsing through Trulia, I found a variety of properties that suited my target price range and location preferences. One place had lots of big windows and a renovated kitchen, according to the photos and information listed on its detailed Trulia Web page. A shortcut on the page made it easy for me to share this place with three friends to see what they thought. I even posed a question to the Trulia community about the property: Does this unit have a private entrance, or does it share an entrance with the five other units in the building?

Ironically, this was the property that was already sold, as I found out when a real-estate agent responded to my question. It took him just 15 minutes (Trulia says this is within five minutes of the average response time) to post a response saying that he was familiar with the listing and that the place sold five months earlier. Trulia has since updated this property’s status.

Other questions that I asked of the community were answered within 20 minutes. In one instance, I asked a general question about the best time of year to buy in Washington, D.C., and three real-estate agents responded almost immediately; two were from my area and offered their advice — and their services — but one from Florida chimed in simply to offer some encouragement. Each responder was clearly identified with a name, classification (i.e. real-estate pro) and photo. Within a couple hours, four more people responded.

These questions and answers are shared with everyone on Trulia, and I clicked on a thumbs-up icon to vote for the answer I found most helpful.

Email alerts can be set up through Trulia so you’re notified if a property you like dips below a certain price, or if there are new blog posts about certain categories like financing, crime or environmentally friendly properties.

The CompareIt tool worked to see how properties (excluding those in D.C.) stacked up against one another, up to five at a time. These charts arm people with more statistics and (likely) more negotiating power.

The real-estate world can be intimidating, now more than ever. Though sites like Trulia won’t solve this problem completely, they could make the weighty decision of buying a house a little bit easier.

Edited By Walter S. Mossberg

Email us at mossbergsolution@wsj.com. Find this and other columns and videos online free at the All Things Digital Web site: http://walt.allthingsd.com

Oh, One More Thing…Goldman Sachs, You're DEAD to Me

John Paczkowski — Mon, 15 Dec 2008 23:44:24 +0000

Apple may not have yet succumbed to the economic malaise that hangs heavy over consumer tech, but it will soon. According to Goldman Sachs, anyway. This morning Goldman Sachs analyst David Bailey downgraded Apple’s stock to neutral from a buy, claiming the company will suffer when consumers continue to rein in spending next year. “Although our checks in Asia for the December quarter were better for Apple than for the other PC and smartphone vendors, some nicks have started to emerge,” Bailey wrote. “Specifically, shipments of MacBooks, iPod nanos, and iPhone were all slightly lower than what was expected going into the quarter and Apple should face a tougher environment in the March and June quarters as consumer demand takes another leg down.”

A disheartening prediction. And to make matters worse, Bailey speculates that Apple (AAPL) won’t unveil any new product categories at MacWorld come January, and because of that won’t see the sort of near-term pop it typically experiences after the introduction of a compelling new product. Said Bailey, “[The] nearer-term outlook is less positive, as it now looks unlikely that Apple will launch a new product category at MacWorld in early January, taking away a potential catalyst for the shares and causing Apple to try to generate demand in a tough environment without the benefit of a new offering in the first part of 2009.”

Apple shares closed at $94.75, down 3.58 percent for the day on the news.

Oh, One More Thing…Goldman Sachs, You're DEAD to Me

John Paczkowski — Mon, 15 Dec 2008 23:44:24 +0000

Apple shares closed at $94.75, down 3.58 percent for the day on the news.

Just Another Cyber Monday …

John Paczkowski — Mon, 01 Dec 2008 19:01:08 +0000

[ See post to watch video ]