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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

More to come, obviously.

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

RELATED POSTS:

• Yahoo’s Parting With Thompson Will Be for “Cause” (a.k.a. CSLie)
• Ross Levinsohn’s Yahoo Plan: Back to the Future
• Here’s New Yahoo CEO’s First Note to Troops! (The Leaking-Internal-Memos-to-ATD Policy Remains in Effect As Usual)
• Yahoo Officially Confirms ATD Report on CEO Changes and Proxy Settlement
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• Will Thompson’s Ouster Mean a Yahoo-Facebook Patent Settlement Too?
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• Heidrick & Struggles Slaps Back at Thompson’s Yahoo in Blame Game Over ResuMess
• Is He In or Is He Out? Crunchtime for Scott Thompson at Yahoo.
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• Buffett Comments on Trust Issue in Yahoo CEO BioGate: “You’ve Got a Problem”
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• As Yahoo CEO Reaches Out to Top Staff, Board Meets to Weigh “Options” (I.E., Deciding Who Gets to Take the Borked Bio Blame)
• Yahoo Should Expect Incoming Lawsuit Lobbed by Loeb Tomorrow on CEO Hiring
• They Shoot Yahoo CEOs, Don’t They? But Not Without a Really Smoking Gun and a Much Stronger Board.
• Yahoo’s Thompson Asks Employees to “Stay Focused” — Except Not on Him
• In 2009 Interview, Yahoo CEO Does Not Deny He Has a CS Degree, and Calls Himself an “Engineer” (Audio)
• Yahoo’s Board Will “Review” Resume Discrepancy of CEO
• How Did a Phantom CS Degree Get on CEO’s Bio in SEC Filings? Yahoo’s Not Saying.
• Yahoo’s Response on CEO’s Computer Science ResumeGate: “Inadvertent Error”
• Dan Loeb Alleges “Discrepancies” on Yahoo CEO Scott Thompson’s Resume Related to Computer Science Degree

According to sources close to the situation, Flipboard co-founder and CEO Mike McCue has approached Twitter CEO Dick Costolo and co-founder Jack Dorsey about moving off the board of Twitter.

It is not clear when McCue — who became a director of the San Francisco social communications company in late 2010 — will step down, but it could come soon.

The reason, sources said, is McCue’s growing feeling that the companies are on a product collision course, with a possible troubled or perhaps more attractive result.

In other words, Flipboard will either face increasing rivalry from Twitter or will end up as a possible acquisition target for it or other companies.

“How users consume and use Twitter is a key part of its future, and that is what Flipboard does well already,” said one person with knowledge of the situation. “There is going to be an inevitable crossroads for the two companies.”

Indeed, Twitter has bought several companies that help users read and discover, such as Summify.

The goal has been to better make sense of the massive amount of data that the service produces daily; to that end, Twitter has pushed to improve its user interface design on a number of devices.

And Twitter is a big part of Flipboard’s app, which is very dependent on the tweet feed and accounts for 70 percent of its links, sources said.

Flipboard is also more of a “mobile first” company, which is where Twitter is also headed even more aggressively.

Already popular on the Apple iPad, Flipboard launched its iPhone app late last year and it is prepping a version for Google Android soon.

That’s why, in addition to being a rival, it is also an obvious acquisition target for Twitter, as well as others such as Yahoo and Microsoft.

In fact, Google already tried to buy it last year, before Flipboard did a massive $50 million fundraising round that valued it at $200 million.

Its investors include Insight Venture Partners, Comcast’s venture arm, Kleiner Perkins Caufield & Byers, Index Ventures and a spate of well known angels, such as Dorsey, Facebook co-founder and Asana dude Dustin Moskovitz, Ron Conway, actor Ashton Kutcher and the investment company of former News Corp. exec Peter Chernin.

Co-founded by longtime entrepreneur McCue (Netscape, Tellme) and former Apple iPhone engineer Evan Doll, Flipboard launched to much attention in mid 2010.

Its innovative social magazine concept is attempting to make the social networking universe more accessible, consumable and, perhaps most importantly, visually arresting via its rich app.

Essentially, Flipboard pulls information from media RSS feeds and sites such as Twitter and Facebook data streams and then reassembles it in an easy-to-navigate personalized format.

Google has mounted a competitor, called Currents, as has Yahoo with its Livestand offering, neither of which have gotten much traction. In fact, sources said, Yahoo is likely to shut Livestand down completely.

There have also been a spate of other similar readers, such as Pulse and Zite.

Spokespersons for both Flipboard and Twitter politely declined comment.

Even as Yahoo’s board was kibitzing all weekend about how to handle the continuing resume-padding controversy around its recently hired CEO Scott Thompson — including hiring its own outside crisis communications firm to represent it — he was working the phones to keep top staff apprised of the evolving situation.

While Thompson told those he spoke to that he was limited in what he could say and blamed a “personal vendetta” by an activist shareholder for his troubles, being proactive in this regard is probably a good idea.

That’s because multiple sources said he said exactly nothing in various strategy meetings with top employees last week about allegations leveled by Dan Loeb of Third Point, which proved correct, that Thompson had not gotten a computer science degree in college, as his longtime bio had claimed.

“It was the gorilla in the room and it was awkward in the extreme,” said one exec present at the meetings. “He never brought it up, which was even worse.”

At this point, it seems unlikely that Thompson can regain the confidence of many at Yahoo — even though a company spokeswoman said he received a lot of incoming support too, both externally and internally — until he can render some cogent explanation about how the borked bio got into both Yahoo’s public site and also its more critical regulatory filings.

Even more mysteriously, how the error was never present in filings with the Securities and Exchange Commission made by eBay, where Thompson led its PayPal payments unit, although his public eBay bio has also been wrong for close to a decade.

And, most of all, how was it that Thompson never caught the mistake himself — even when directly asked about it — despite the likelihood of reviewing it multiple times over those many years and ultimately certifying it for Yahoo’s own SEC filings.

Calling Encyclopedia Brown to solve the Case of the Computer Science Degree That Wasn’t!

Thompson has given no explanation about the debacle to the bulk of the Yahoo staff at all levels, save for an information-free and terse note to employees on Friday afternoon that essentially asked them to focus on their work instead of his bizarre crisis.

Unfortunately for him, many Yahoos are focusing a lot on Thompson, with message boards at the Silicon Valley Internet chastising their CEO and giving him support that is tepid at best. From interviews I have had with two dozen employees this weekend, to say morale is at an all-time low is perhaps understating the situation.

Here is a short selection of comments that were read to me, for example:

“Resume padding is one thing, but lying about something that is so easy to check is puzzling.”

“There is no reason to let it slide by … This isn’t some guy who’s trying to impress a date … It’s sad that we just accept this kind of stuff from corporate heads and politicians.”

“Having some document to prove you can do a job is not all that important, lying about it is.”

What appears to trouble employees the most in the threads I was read was the nonchalance of the initial Yahoo statement about the issue, which called the addition of a fake degree on Thompson’s bio an “inadvertent error.”

“From a pure employee perspective, it feels like it is a violation of their principles,” said one person, reflecting a dozen or more conversations I had this weekend up and down the organization. “And anyone else would probably be immediately fired for this, even with an explanation.”

Said another: “He clearly knew and lied for years; and his handling since exposed has been unacceptable.”

As I noted above, a company spokeswoman said there was also much support for Thompson (pictured here) within the company, but declined to provide any quotes or details.

Presumably, some answers will be coming from a board investigation aimed at getting to the bottom of the situation, including trying to grok who put the error in the bio in the first place.

My bet: They’ll try to pin it on a lower-level minion, although that will not fly with a lot of people.

Including me, because whoever typed in the faux degree, its presence there has been too long for Thompson not to be responsible for it.

Flunky error or not, there are important questions about whether Thompson himself provided a bio that contained the inaccuracy to the board when he put himself forth for the job via direct emails to Yahoo director and Intuit CEO Brad Smith.

That line of thought basically boils down to: Can Thompson not read?

More problematic is the fact that the placement did not come via Yahoo’s headhunter on the CEO search, Heidrick & Struggles, which apparently was not charged with doing a background check on Thompson.

Instead, the director in charge of the search, Patti Hart, sources said, hired another forensic firm, which appears to have missed Thompson’s erroneous academic record.

The only thing completely clear amidst all the confusion: Hart screwed up by botching an extremely simple part of a vetting she was charged with. That makes her vulnerable, of course, along with other Yahoo board members or staffers closely involved in the talent search.

While Hart (pictured here) is in a much dicier position, Thompson still appears to have initial board backing — at least for today — as it’d be a very tough call to fire yet another CEO so quickly in the middle of several key deals for Yahoo, as well as a proxy fight.

Said one person close to the situation, the board is still considering its “options,” in an effort that is being led by independent board member Fred Amoroso.

So, it will be instructive to see how the board will proceed tomorrow — especially since it is likely that Loeb will lob a lawsuit to try to get more information on the Thompson hiring process.

But it’s started by hiring its own outside communications firm, Sard Verbinnen, which has handled other crises for Yahoo in the past.

Sard’s Charles Sipkins — welcome back, Charlie! — had no comment about the board’s next move, except to reiterate its statement from last week that it is looking into the Thompson bio mess and will make appropriate disclosures at some point.

We can’t hardly wait.

RELATED POSTS:

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

Yahoo beat Wall Street estimates in its first-quarter earnings report today, with revenue of $1.08 billion and earnings of 23 cents. That’s a gain of 28 percent from a year ago in net earnings and 38 percent per diluted share.

Analysts had been expecting Yahoo to report revenue of $1.06 billion and earnings of 17 cents a share. But, as I reported earlier today, sources had indicated that the results would be on the upside.

Still, revenue was only up year over year by 1 percent — not exactly a great achievement, given exploding growth across the Internet industry. The real drag was the Europe, Middle East and Africa regions, whose revenue was down 9 percent — which Yahoo attributed to the weak economy there — with its “contribution” down 27 percent. That region has been run by Rich Riley, who is now Yahoo’s sales lead in the U.S.

One interesting note: While display revenue was down, search revenue was up. And unique visitors to Yahoo were up 7 percent, which was lower growth than in previous quarters. The reason was declines in search and communications, with media up strongly.

Now, investors are hoping to get more clarity from new CEO Scott Thompson in a call at 2 pm PT about the overall strategy for the troubled Silicon Valley Internet giant, which just restructured its management again and also had layoffs of 2,000 employees.

Thompson has yet to articulate a specific plan beyond the broad strokes of media, commerce and data/platforms as Yahoo’s aim.

But there is a lot more to deal with and in detail, including figuring out its troubled advertising search partnership with Microsoft, the talks around selling off parts of the company’s lucrative Asian assets, Yahoo’s patent lawsuit against Facebook, how Yahoo is going to deal with activist shareholder Third Point’s possible proxy challenge and whether more layoffs beyond recent firings will be needed.

“In the first quarter, Yahoo!’s results came in at the high end of our guidance range and beat consensus on revenue and profits,” Thompson said in a statement. “We also made changes to resize the organization and establish a new leadership structure to quickly deliver the best user and advertiser experiences at scale.”

Until Thompson gives more deets on the earnings call, which I will be liveblogging, here’s Yahoo’s official press release and cool charts on the subject:

YHOO News 2012-4-17 General

YHOO_Q112EarningsPresentation

In a move that AllThingsD had previously reported was coming, Yahoo said it had laid off 2,000 employees, or 14 percent of the workforce.

“Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require,” said Yahoo CEO Scott Thompson in a statement. “Unfortunately, reaching that goal requires the tough decision to eliminate positions.”

While Yahoo has had periodic layoffs over the years, this one is its most significant in its history, and will also result in another large-scale restructuring of the management organization. More cuts are also likely to follow in the months ahead, due to the reshaping of Yahoo.

The latest employee action is being pushed by Thompson, who joined the Silicon Valley Internet giant in January from eBay’s PayPal unit.

“Change is never easy,” he wrote in an internal email to Yahoo employees (it is below in its entirety), in a well-worn cliché I am dead certain few appreciated hearing today from the top leader.

At an internal meeting with top staff last night, Thompson — who has gotten what seems to be a well-deserved reputation for chewing folks out at Yahoo — was more direct with the execs gathered, berating them extensively for not delivering and getting the company to this sorry point.

Ouch, Scott! It’s Easter, so it might be time for some forgiveness. (And no more ranting about my reporting to those inside Yahoo, since I have been 100 percent accurate so far. FYI, will aim for 110 percent next week!)

Yahoo said it will save about $375 million with the cuts, incurring a $125 to $145 million pretax cash charge for employee severance in its second quarter. Before the cuts, Yahoo had 14,000 staffers and has many thousands more hired as contractors.

The layoffs touch all units of the company, but the hardest hit is the product division, which is headed by Blake Irving, as well as its marketing, research and international units. Yahoo gave no details on the layoffs other than the number.

But the fate of two key parts of the soon-to-be-blown-apart unit — Yahoo’s advertising technology businesses, Right Media and APT, and its search business — is still being contemplated, as I have previously reported. Possible scenarios include a sale or a joint venture transaction for both, which employ thousands of Yahoo staffers.

The layoffs tomorrow are not the end of the road in cutting costs. Along with the likely shedding of its ad tech and search businesses, Yahoo leadership is also looking at future cuts as it evaluates current businesses, which could lop even more employees off its roster.

That said, Yahoo will be doubling down in some older and new arenas, so there would also be simultaneous hiring in the months ahead.

As wrenching as they will be today at Yahoo, the layoffs come as no surprise. Thompson had told employees in memos and also in recent meetings that “real change” was coming to the company.

Along with the trauma of the layoffs, Yahoo is also facing two other tense face-offs externally. In one, activist shareholder Third Point is waging a proxy fight for board seats and stepped up the public pressure this week; and Facebook struck back hard at Yahoo’s patent lawsuit with a counterclaim of its own.

After the layoffs tomorrow, sources say Yahoo will be announcing a new organization by next week. Thompson, along with outside consultants he has hired from the Boston Consulting Group, are making what appear to be profound changes.

Sources said that Yahoo will most likely be comprised of a global media division, one that encompasses Yahoo’s consumer products businesses and one focused on global and regional sales. There could also be a small organization of about 50 employees aimed at future innovation.

Americas head Ross Levinsohn is pegged to run the media arm, which will also include its leads/commerce businesses, such as autos; Shashi Seth — who now heads search and marketplaces — is likely to run consumer products, which will include Yahoo’s communications and search businesses.

Yahoo has already been conducting a search for a new worldwide sales head, who will also be boss of the U.S., Asia and Europe, Middle East and Africa sales regions. Rich Riley, who was recently running EMEA, is reportedly the pick for U.S. sales; Rose Tsou, who is running Asia, would presumably stay put; Yahoo is looking for an EMEA sales lead.

Some current operational execs — such as service engineering and ops head David Dibble, CFO Tim Morse, and top lawyer Mike Callahan — are likely to continue to operate as before.

One big question mark is how Chief Product Officer Irving fits in the possible new org, in which the new units get control of their product development. Irving has reportedly had several incoming job offers, although it is not clear if he has responded to that interest.

But today, the focus is on the layoffs and letting go all those employees, many of whom have worked at Yahoo for years. Even if it will result in a stronger Yahoo, as Thompson promises, it is still a very sad day in Sunnyvale.

Here is a video on the topic that I did with the WSJ.com “Digits” show today, after the cuts were announced early this morning:

Here’s the entire terse statement from Yahoo:

Yahoo! Statement

SUNNYVALE, Calif. — (BUSINESS WIRE) — Yahoo! today confirmed that it is taking important next steps to reshape the company for the future.

“Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require. We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose — putting our users and advertisers first — and we are moving aggressively to achieve that goal,” said Scott Thompson, CEO of Yahoo!. “Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo!.”

Yahoo! has a solid foundation — nearly 700 million users and thousands of advertisers that engage with Yahoo! properties regularly and trust the company with their data and their business. Through its restructuring efforts, Yahoo! intends to grow by responding more quickly to customer needs and competing more effectively in areas where it can win. Yahoo! has identified key parts of the business — a select group of core businesses, the platforms that support those core businesses, and the data that drives deep personalization for users and ROI for advertisers — where the company will intensify efforts and redeploy resources globally, all focused on increasing shareholder value. With a clear focus on profitability and growth, the company will be disciplined in its investments and radically simplify how it builds, launches and maintains many of its properties and products.

Today, the company will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or phased transition.

Yahoo! expects to realize approximately $375 million of annualized savings upon completion of all employee transitions. The company currently expects to recognize the majority of an estimated $125 to $145 million pretax cash charge relating to employee severance in its second quarter financial results. The company may incur additional charges in connection with this action. More information will be provided about Yahoo!’s future direction in conjunction with the release of its first quarter financial results on April 17, 2012.

And here is Thompson’s memo to employees, stating the obvious and with nothing new from previous statements and internal memos:

Yahoos –-

Today we are restructuring Yahoo! to give ourselves the opportunity to compete and win in our core business. The changes we’re announcing today will put our customers first, allow us to move fast, and to get stuff done. The outcome of these changes will be a smaller, nimbler, more profitable Yahoo! better equipped to innovate as fast as our customers and our industry require.

Over the last 60 days, we’ve fundamentally re-thought every part of our business and we will continue to actively consider all options that allow Yahoo! to put maximum effort where we can succeed. As part of this process, I believe we have to focus to win in a select group of core businesses globally:

Core Media and Communications: Our content, media, and communications experiences must be best in class. That includes getting today’s core properties right and innovating on a next generation of great product experiences across all screens.∙

Platforms: We must make our core platforms and systems a genuine strength for Yahoo! — platforms that we can really leverage to support our massive scale, drive the deepest personalization, and boost speed to market.∙

Data: Our massive data sets must become a genuine competitive advantage for Yahoo!. We have to unlock the value in our data to allow us to really understand our 700 million users, encourage and win their engagement and trust, leverage everything they do with us to more fully personalize their experiences, and to give our advertisers the immediate insights they are rightfully demanding.

We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose — putting our users and advertisers first -– and we are moving aggressively to achieve that goal.

Unfortunately, reaching that goal requires the tough decision to eliminate jobs, which means losing colleagues and parting with friends. Today, we will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or a phased transition. We value our people and for those who will be leaving, we thank you for all you have contributed to Yahoo!. We will treat all of our people with dignity and respect, providing resources to help manage through their transition.

Change is never easy. But the time has come to move Yahoo! forward aggressively with increased focus and accountability. Our values have always been about treating all Yahoos with dignity and respect, and today is a day to embrace those values. This is an amazing company with exceptionally talented people and I know we will all do our best to encourage each other through this difficult period of transition.

Scott

According to sources close to the situation, Yahoo’s massive round of layoffs — which is likely to impact up to 2,000 employees — is just the tip of the proverbial iceberg that will hit the storied Silicon Valley Internet giant in the months to come.

Sources said Yahoo is currently planning to announce the cuts in staff in the early morning, just as the markets open. That could change, of course, but the cuts will definitely occur within the next two days.

The layoffs, which will touch all units of the company, are expected to hit hardest in the product division, which is headed by Blake Irving.

But the fate of two key parts of the soon-to-be-blown-apart unit — Yahoo’s advertising technology businesses, Right Media and APT, and its search business — is still being contemplated, as I have previously reported. Possible scenarios include a sale or a joint venture transaction for both, which employ thousands of Yahoo staffers.

Also set to be hard hit are Yahoo’s local businesses, as well as its marketing and research divisions. While still sustaining losses, its media units will not be as badly impacted. And it’s not clear how many employee terminations will be aimed at the company’s general and administrative staff.

The layoffs tomorrow are not the end of the road in cutting costs. Along with the likely shedding of its ad tech and search businesses, Yahoo leadership is also looking at future cuts as it evaluates current businesses, which could lop even more employees off its roster.

That said, Yahoo will be “doubling down” in some older and new arenas, so there would also be simultaneous hiring in the months ahead.

But not tomorrow, which will be one of the tougher days in Yahoo’s long history of periodic layoffs. Newly installed CEO Scott Thompson had told employees in memos and also in recent meetings that “real change” was coming to the company.

That is indeed the case, which is causing massive strain throughout the company, which now employs over 14,000 and has many thousands more hired as contractors.

Along with the trauma of the layoffs, Yahoo is also facing two other tense face-offs externally. In one, activist shareholder Third Point is waging a proxy fight for board seats and stepped up the public pressure this week; and Facebook struck back hard at Yahoo’s patent lawsuit with a counter-claim of its own.

After the layoffs tomorrow, sources say Yahoo will be announcing a new organization by next week, which will create several major, soup-to-nuts units at the company. Thompson, along with consultants he has hired from the Boston Consulting Group, are making what appear to be profound changes.

Sources said Yahoo will most likely be comprised of a global media division, one that encompasses Yahoo’s consumer products businesses and one focused on global and regional sales. There could also be a small organization of about 50 employees aimed at future innovation.

Americas head Ross Levinsohn is pegged to run the media arm, which will also include its leads/commerce businesses, such as autos; Shashi Seth — who now heads search and marketplaces — is likely to run consumer products, which will include Yahoo’s communications and search businesses.

Yahoo has already been conducting a search for a new worldwide sales head, who will also be boss of the U.S., Asia and Europe, Middle East and Africa sales regions. Rich Riley, who was recently running EMEA, is reportedly the pick for U.S. sales; Rose Tsou, who is running Asia, would presumably stay put; Yahoo is looking for an EMEA sales lead.

Some current operational execs — such as service engineering and ops head David Dibble, CFO Tim Morse, and top lawyer Mike Callahan — are likely to continue to operate as before.

One big question mark is how Chief Product Officer Irving fits in the possible new org, in which the new units get control of their product development. Irving has reportedly had several incoming job offers, although it is not clear if he has responded to that interest.

Let’s hope that Yahoos who will be let go tomorrow find themselves with many new employment choices after the ax falls.

Yahoo is preparing to begin layoffs of what could be thousands of employees starting next week, according to multiple sources, and is then expected to announce a new restructuring of the company the week after.

The swirl at the Silicon Valley Internet giant has grown more intense this week, as new CEO Scott Thompson has brought in top management for a series of meetings both Tuesday and Wednesday to outline the plans.

What has emerged — although sources noted that Thompson and others communicating the pending changes said nothing was yet set in stone — is the picture of a drastically slimmed-down organization with a focus on media, advertising and new but unclear “future” initiatives.

First the layoffs: Sources said the cuts will be deep and mostly aimed at the product, research and marketing units of Yahoo, which are likely to take place Wednesday. The ultimate goal, said multiple sources, is to cut many thousands from Yahoo’s staff of close to 14,000 employees, which is actually much larger, due to contract workers not officially in its roster.

The entire cut will not take place at once, said sources, since Thompson and others are still trying to figure out how to dispense with its ad technology org and, potentially, its search business. He has been in discussions with both Microsoft and Google about this, although there are other possibilities, too.

Both these parts of Yahoo together have about 2,500 staffers, whose fate is not yet sorted out.

Also still baking is the new structure, although sources said it is most likely to be comprised of a global media division, one that encompasses Yahoo’s communications and search businesses, and ones focused on global and also regional sales. There could also be a small organization of about 50 aimed at future innovation.

Americas head Ross Levinsohn is the likeliest exec to run the media arm, while Shashi Seth — who now heads search and marketplaces — would be the obvious candidate for the the communications/search one.

Thompson has already been conducting a search for a new worldwide sales head, although one possible internal exec for the job could be Rich Riley, who was recently running Yahoo’s Europe, Africa and Middle East region.

It is not clear how Chief Product Officer Blake Irving fits in the possible new org, since much of the development could now move to the decentralized units.

Some current operational execs — such as service engineering and ops head David Dibble, CFO Tim Morse, and top lawyer Mike Callahan — are likely to continue to operate as before.

Thompson, along with consultants he has hired from the Boston Consulting Group, presented the possible plan in front of Yahoo’s senior execs on Tuesday. That was followed by more meetings with a wider range of top management yesterday, although Thompson was not as highly specific in these meetings.

In fact, according to a half-dozen sources, Thompson apparently grew somewhat testy in one of the gatherings, when asked if there was a strategy he was going to announce in more detail to the group.

(Dear Scott, these are very talented employees who love the company and who have been through the wringer and it’s not their fault that leadership has failed them, so it might be a good idea to treat them with as much respect as possible right now.)

More to come, obviously.

Rao (pictured right) will be joining the online communications network as VP of international revenue, and will be starting in April in San Francisco. In that job, he’ll be in charge of setting up direct sales operations in countries and in regions where Twitter is ready to monetize.

At Google, Rao was most recently head of Google’s display ads business for Asia.

McIntyre (pictured left) has joined Twitter as a director of online sales and operations, which is its self-serve product that will debut to small businesses in March. He will be based in Dublin, Ireland. He was most recently working on Google’s international self-serve ads team in Ireland.

Both will report to Twitter sales head Adam Bain, who heads a staff of 120 employees in the U.S., the U.K., Japan and Ireland.

The pair were not the only Google hires of late at Twitter. The company recently hired U.K. YouTube sales head Bruce Daisley to run its entire sales team there.

It’s a graphic visualization that our social media editor Drake Martinet did for his beloved, Stacy Green, who is the VP of marketing and communications over at Mashable.

Drake asked Stacy to marry him last night and, because they are both such geeks, did this paean to their relationship that is just adorkable.

And we post it here, because ATD is not just about news — it’s about love, sweet love. Compared to our Apple coverage, it’s the only thing that there’s just too little of.

No, not just for some, but for everyone — Happy Valentine’s Day to all our readers.

(By the way, Stacy said yes.)

Enjoy:

For someone who is still mulling things over about what to do about his more than five percent investment in Yahoo, hedge fund investor and activist shareholder Daniel Loeb has been very busy lately getting his arsenal ready.

While deciding whether to mount a proxy fight — a potentially nasty public fight with the Silicon Valley Internet giant that sources said could start much earlier than the expected February 24 filing date to make a board challenge — he’s also had at least one phone meeting with new Yahoo CEO Scott Thompson in the last week to talk about the company’s future.

Sources said the talk was cordial, although the pair were not yet discussing any kind of rapprochement, which presumably could lead to board seats for Loeb.

But how far Loeb will go and how far Yahoo will give are the big open questions that are about to be answered.

The earliest nominations for directors by outsiders like Loeb can be submitted is February 24. He then has a month after that to propose a competing slate.

Starting last fall when he started accumulating Yahoo shares, Loeb had aggressively called for the ouster of Yahoo’s Chairman Roy Bostock and director and co-founder Jerry Yang. Yang stepped away from Yahoo earlier this month and Bostock just announced his upcoming departure this week.

Despite the renewed communication with Yahoo, Loeb is still acting like he might opt to fight — or at least freak out Yahoo enough to cooperate.

Among his recent activities, according to many sources:

* Attempting to assemble an alternate slate of directors — including trying to persuade high-profile entrepreneurs such as David Goldberg and Max Levchin to join his board. Loeb has been to Silicon Valley several times to stir that pot.

* Meeting with a spate of powerful tech execs, here and elsewhere, in order to gain support for his battle and search for his own preferred leaders for Yahoo. A favorite is Hulu CEO Jason Kilar.

* Working on hiring a top outside crisis communications firm to handle the expected onslaught of media mudslinging that is sure to take place.

* Buttonholing large Yahoo investors to join him and getting, sources said, more support than expected from bigger ones. That’s no surprise: Capital Research Global Investors and Capital World Investors, Yahoo’s biggest institutional shareholders, voted against the company’s board in its last proxy battle and has been much disgruntled with the latest Yahoo stumbles.

* Recently reaching out to top Yahoo execs, including both Yahoo’s Chief Product Officer Blake Irving and Americas head Ross Levinsohn. Irving was so spooked by Loeb’s hello-there, several sources said, that he sent an email to Yahoo’s top staff about the contact attempt, noting he did not return the call (teacher’s pet alert!).

These are, of course, classic activist tactics by Loeb, aimed at getting the changes he wants made at Yahoo by applying real and perceived pressure.

Loeb had previously criticized the company’s talks with private equity investors, saying the prices being discussed were too low, which helped scuttle those talks.

Yahoo has also tried to gird itself and to assuage other shareholders and the media, as it can hardly stand what a proxy fight will do to its already battered image.

Some recent moves to look like it is on the move include: Loudly negotiating with its Asian partners for a big payday; making significant board changes; and hiring Thompson. Next up, as I previously reported, a large-scale restructuring and the inevitable cost-saving layoffs.

Who wins — and who blinks — in this Loeb versus Yahoo face-off, though, is still to be determined.

“I didn’t want the password to live in an email somewhere. I started thinking, what if there was something that would allow me to destroy the email?” Robbins said in an interview.

The thought stayed with him, and by summer, Robbins had dropped the other project to turn his full attention to building a service for hyper-secure email exchanges. He named the service Burn Note.

Burn Note, which opens up to the public today, allows the sender of an email to set a time frame in which the receiver can read an email before the email disappears.

At that point, the email no longer exists — anywhere.

Burn Note’s Web site says the service uses no binary logging, which means there are no standby servers, or backup copies of emails. The company uses a storage engine that has no journaling capabilities, and an underlying file system that logs metadata but not the content of the notes themselves.

While grabbing an image of the email might seem like a simple workaround, Robbins said he has introduced two methods to the service that make it extremely difficult for recipients to quickly copy the text of an email for posterity. Burn Notes can include Web links, but can’t send attached files, though Robbins has said attachments are in the works.

“I think there are a lot of legitimate uses for why people would want an off-the-record conversation,” Robbins said. “The message goes away, but it’s still been communicated to the recipient, which is the point.”

Robbins most recently served as the head of software development for Facebook-acquired Drop.io; he said the Burn Note service was partly inspired by that cloud-storage service. “There was a feature that we considered, but ultimately didn’t turn on, where a file could have a certain number of views before it self-destructed,” Robbins said.

While there currently aren’t any mobile apps for Burn Note, Robbins said that it’s a mobile-optimized Web site, so it can be accessed from a phone with a Web browser.

Highly encrypted or “vanishing” email services aren’t new. In 1999, Canada-based Hush Communications launched Hushmail, a free Web-based email system for individuals and businesses that sent PGP — Pretty Good Privacy — encrypted emails. As Wired reported, it was originally stated that “uniquely-coded” Hushmails were so encrypted that not even Hush employees with access to servers could read the emails.

But in 2007, Hush turned over a dozen CDs of emails, following a court order obtained through a mutual assistance treaty between the U.S. and Canada. The evidence was requested as part of a U.S. federal prosecution of alleged steroid dealers. The company subsequently acknowledged that Hushmails could, in some instances, be decrypted.

In 2009, the New York Times wrote about a group of scientists at the University of Washington who developed software that would make email messages disappear after a period of time. The software, called Vanish, would rely on a key-based encryption system that differed from the usual key cryptography used in digital communications, by making the “keys” erode over time.

A couple of months after that, “Freedom to Tinker,” which is hosted by Princeton’s Center for Information Technology Policy, released a paper detailing a series of experimental attacks against the Vanish prototype. The paper stated that Vanish should be considered too risky to rely on.

On a Web site for Vanish, the group acknowledged that the implementation on which Vanish was based was not adequately protected against attacks, and says it’s “investigating new directions and architectures for self-destructing data.”

Burn Note’s Robbins says Hushmail’s service and the Vanish project are different from Burn Note because those products rely on encryption keys, while Burn Note is effectively reengineering the default settings of computer systems and server systems so that nothing at all is saved.

When asked what Burn Note’s protocol would be for handling requests from law-enforcement officials for email exchanges, Robbins replied, “Burn Notes aren’t emails.”

He went on to say that the exchange of Burn Notes is more comparable to phone calls in that, unless they’re recorded, the exchange itself can’t be retrieved.

But Burn Note — unlike phone companies — doesn’t keep a log of who is communicating with whom. Robbins said the company plans to compile and study anonymous usage data, but will keep two separate logs — incoming messages and outgoing messages — rather than a log of messages exchanged between users. According to the company’s explanation of its technical procedures, even the time stamp on the message is anonymized: Burn Note rounds the times to the nearest hour so that timing cannot be used as a unique identifier.

“A lot of services launch to acclaim that they’re going make digital communications disappear,” said Paul Ohm, an associate professor of law focused on information privacy at the University of Colorado Law School. “But they sometimes become that place where bad people go to exchange information, or a haven for criminals. In order for this work, you have to stay on the side of legitimacy.”

“It’s never a complete dead end,” Ohm added. “There has to be data living somewhere, and there’s always a way to engineer around these systems.”

While Burn Note will at first be marketed to the average email user, Robbins said he hopes to attract attention from the enterprise market. “I think there’s a really interesting set of use cases around banks, especially if it can be made to plug in to existing systems,” he said.

When asked how Burn Note might comply with the record-keeping obligations of U.S. financial institutions have, Robbins said it would require a case-by-case evaluation.

“I don’t have a good answer for that, because it will require review by a legal professional before we can fully work through that type of situation,” Robbins said. He pointed to the company’s privacy policy, which plainly states:

“If you have a legal obligation to preserve data, do not use Burn Note.”

Yahoo co-founders David Filo and Jerry Yang

Yes, he jumped, even though being pushed was surely looming on the horizon ahead.

But the decision of Yahoo co-founder, former CEO and director Jerry Yang to leave Yahoo was indeed sudden, with the board meeting just this morning about the issue.

It was so sudden, in fact, that Yahoo’s key execs — including its communications arm — had only a few minutes heads-up to what is arguably one of the more momentous events in the history of the Silicon Valley Internet giant.

In fact, newly installed CEO Scott Thompson was in Los Angeles in a previously planned visit to meet his new staffers, said multiple sources, forcing him to participate in the board meeting from there.

As it turns out, according to numerous sources, Yang had had enough, and had finally realized that perhaps the many players in the ongoing Yahoo drama inside and outside the company had also had enough of him.

As I wrote last week about the possibility of Yang stepping down from the board, such a move of a founder from its board is unusual, although it was possible in this case:

“While Internet company founders usually stick on boards, it’s not a given, especially with all the turmoil at Yahoo, some of which is related to Yang.”

In fact, as the pressure has mounted on Yahoo to right its ever-listing ship, a lot of the rancor was being piled atop Yang, whether deserved or — in some cases — undeserved.

That’s because, even after the rough time he had as CEO of Yahoo, Yang had remained unusually active in its affairs, joining internal meetings and being part of discussions about its strategic alternatives.

And while he might protest that he was doing what was asked of him by the board, his status as the company founder made it hard to minimize his clout.

“It’s hard to ignore Jerry Yang,” said one exec. “He has an impact on everything, even if he thinks he does not.”

The recent negotiations with Yahoo’s Asian partners is a case in point. While board member Brad Smith and others have been a key part of the talks to sell off parts of its stakes there — which are critical to Yahoo to complete — execs at both China’s Alibaba Group and Japan’s SoftBank both pointed to a too-strong influence of Yang in the deal as a possible stumbling block.

Yang served on both the boards of Alibaba and SoftBank’s Yahoo Japan, so his interest would have been obvious. But sources involved in the talks would often blame him for their rocky nature and difficulty.

“Jerry just does not want to sell,” one said to me last week.

Maybe he didn’t or maybe he did, but one thing was clear: Yang had become a lightning rod for a lot of the trouble Yahoo has gotten into over the years.

That was true with major investors, who have been more loudly saying of late to its board that his continued presence was a problem. The most vocal, of course, was Yahoo’s activist shareholder Daniel Loeb, who has called for Yang’s ouster, and has been contemplating a proxy fight to make it so.

Loeb was out in Silicon Valley last week, talking to possible alternate board members, many of whom have been longtime colleagues and even friends of Yang, and took the meeting anyway.

Worse, perhaps, was the prospect that Yang has also been losing his most ardent fan base: Yahoo employees.

With all the mishegas over recent years, they had also begun to question his role as a leader in the company, many voting with their feet by leaving in droves.

With a new CEO in place, and the possible chance that its Asian problems were moving in the right direction, it had to have sunk in for Yang that it had finally become time to make peace with the present by abandoning his future at Yahoo.

Thus, he wanted to leave on his own terms, even if — in the end — the man who is most definitely one of the Internet’s most important pioneers did not have much of a choice.

Through many years of working together, first at eBay and then during the failed California governor’s race, Meg Whitman has relied heavily on Henry Gomez for communications advice.

Their close working relationship even earned them the mash-up nickname among those at eBay and elsewhere: Menry.

So when she got the CEO job at Hewlett-Packard, it was a bit of a surprise that Gomez — who has recently been living on the East Coast (see baseball cap above) — helped out a lot, but was not named to the top PR slot at the tech giant.

No longer, it seems, with Gomez being named EVP and Chief Communications Officer at HP today.

It’s a big job, given the hard work that Whitman faces reviving the iconic tech company, which has been beset by strategic and business challenges of all kinds, shapes and sizes in recent years.

While it might be seen as an adjunct to the business, the forward-facing parts of HP are in need of a powerful public relations initiative, which is presumably why Whitman wanted one of her most trusted and longtime staffers in the post.

According to HP, Gomez will become a member of the company’s executive council and report directly to Whitman.

Said HP in its press release, which you can also read below: “Gomez will be responsible for HP’s media and industry analyst relations, executive communications, employee communications, government affairs and global social innovation.”

As in, the voice of Menry is back!

Here’s the release:

HP Names Henry Gomez Executive Vice President and Chief Communications Officer

PALO ALTO, CA, Jan 10, 2012 – HP today announced that Henry Gomez will join the company as executive vice president and chief communications officer.

Gomez also will become a member of HP’s executive council, reporting to Meg Whitman, HP president and chief executive officer.

In this newly expanded role, Gomez will be responsible for HP’s media and industry analyst relations, executive communications, employee communications, government affairs and global social innovation.

Gomez, 48, comes to HP with 26 years of communications experience. He spent most of the last decade working at eBay, where he served in a variety of roles including senior vice president for Corporate Communications and president of Skype. Gomez played a crucial role in building eBay’s brand during the critical years following the company’s initial public offering.

Prior to joining eBay, Gomez was vice president of Corporate Affairs at HBO in New York. He started his communications career at Hill and Knowlton and has worked on a wide array of public relations and marketing communications challenges in numerous industries.

Most recently, Gomez ran his own consulting business, providing communications counsel to clients such as H&R Block. He was on the leadership team of Whitman’s 2010 campaign for governor of California and has been involved in government and political affairs throughout his career. In 2011, Gomez was appointed to the board of BJ’s Restaurants, Inc. He is a graduate of Boston College.

“Henry is an excellent manager and communications executive,” said Whitman. “People around the world care deeply about HP, and I believe we have an important obligation to clearly explain where we’re headed and why. Henry will work closely with the entire leadership team to make certain customers, partners, employees, and shareholders fully understand our vision and strategy.”

About HP HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems. More information about HP is available at http://www.hp.com .

It’s 2012 and it’s time for a brand news obsession for me besides the mishegas of Yahoo — and the winner is: Facebook’s upcoming IPO.

Thus, I shall endeavor to scoop all deets great and small about the social networking site’s moving on up to a deluxe public company in the Wall Street sky, which is expected in the spring of this year.

From bankers battling for purchase to who’s selling what to the delightful back and forth with regulators to Google’s lobbing the inevitable screaming meanies at its rival during Facebook’s quiet period, this is going to be a good one.

And CEO and Co-founder Mark Zuckerberg — and his hoodie — are back in the brightest of spotlights!

Speaking of the need for PR, one of the unsung but critical parts of any company’s public offering process is the hiring of an outside communications firm to handle the deluge of media, rumors and other breathless attention Facebook is sure to get.

It’s a highly specific job, given the reporters a company will be dealing with — in this case, sharp-elbowed Wall Street reporters — are usually different than the ones the Silicon Valley start-up has mostly dealt with (the geeks!).

And the expected winner of that thankless job is likely to go to the Brunswick Group, which describes itself as an “international corporate communications partnership that helps businesses and other organizations address critical communications challenges.”

In other words: Will be putting out the endless wildfires sure to rage around tech’s hottest IPO since Google.

Brunswick is among a small group of high-powered strategic communications firms that compete for such high-profile IPO jobs, as well as mergers and acquisitions and other corporate battling.

Others include Sard Verbinnen & Co. (it has worked for Groupon board and Alibaba Group); Joele Frank, Wilkinson Brimmer Katcher (it has toiled for Hewlett-Packard) and Kekst and Company (now cat-wrangling the Yahoo drama).

It’s probably not a surprise that Brunswick won the deal, since it has worked with Facebook in the past, including on its controversial private offering with Goldman Sachs a year ago.

No surprise, everyone declined comment.

Thus, let the Hunger, oops, PR games begin!

The move to beef up communications expertise at the prominent Silicon Valley venture firm continues: Sequoia Capital has hired Andrew Kovacs, a well-regarded senior manager from Google, for a new job to help its portfolio companies with public relations and other related issues, sources said.

Google’s top flack Rachel Whetstone told staff about the move this past week, sources said, which will take place in mid-January.

Kovacs (pictured here, looking very GQ), who has been at the search giant for five years, has most recently headed PR for its apps unit.

His appointment comes after competing firms, including Andreessen Horowitz and Kleiner Perkins, bolstered talent to the comms areas of their firms, in order to better service the companies they invest in.

This is especially important to early-stage start-ups and their often young entrepreneurs, who usually have little experience with the media or with marketing. But such expertise is increasingly important in the crowded and ever-noisier tech sector, as companies try to rise above the fray.

Sequoia already has a longtime marketing partner, Mark Dempster, to whom Kovacs will be reporting, serving the firm’s companies in the U.S. and Israel. Kovacs will not be working on PR for Sequoia itself.

Some of Sequoia’s better-known start-ups include Dropbox, Tumblr and Eventbrite.

South Korean consumer electronics giant Samsung Electronics has hired former AOL and Google exec David Eun to lead a new push to create more media offerings, the company said.

In a press release, the maker of a wide range of devices — from televisions to tablets to smartphones and more — said Eun would serve as executive vice president of its media-related units.

About Eun’s role, Samsung said: “He will play a key role in developing a global media strategy and driving new business opportunities to take advantage of Samsung’s growing number of digital televisions and displays, mobile phones, tablets and other connected devices.”

It’s not clear what that means, but presumably it could spell more investments and acquisitions in digital media, and even in the social space.

The move is part of a larger reorganization at Samsung Electronics, which it also announced has divided into two parts, digital media and communications and device solutions.

Samsung’s deepening of its media efforts — it has previously launched various smaller content initiatives — is an interesting one, especially in light of the fast-changing market it now competes in, in which partners like Apple and Google have also become intense rivals.

Google bought Motorola recently and has been increasing its media offerings, as has Apple. Samsung and Apple are also engaged in a series of global legal battles over devices.

In turn, companies like Amazon — which recently released the Kindle Fire tablet — have upped their efforts in the consumer electronics area.

In addition, Japan’s Sony — which already owns a major Hollywood studio — now owns all its handset business and has recently added tablets to its lineup.

Eun is an interesting choice, having been part of Google’s earliest efforts to move beyond its core search business into media, such as its acquisition of YouTube.

He left his most recent job at AOL, where he had headed its content unit, earlier this year. Eun has also previously worked at both Time Warner and NBC.

Here’s the official press release about his hiring:

Samsung Electronics Appoints David Eun as Executive Vice President

Eun to Enhance Samsung’s Global Media and Content Efforts

SEOUL, Korea — December 14, 2011 –Samsung Electronics Co., the technology leader and innovator in consumer electronics and telecommunications, proudly announces the appointment of David Eun as Executive Vice President.

Eun joins Samsung after an accomplished career in media and content. He was most recently President of AOL Media and Studios, where he oversaw AOL’s efforts to become a leading provider of premium content, spanning over 100 different websites and production studios in NY and LA. Before that, he formed a global Content Partnerships group at Google with oversight for media strategy, partnerships and strategic alliances spanning over 30 different Google products including Google Books, Maps and YouTube. He also has a deep knowledge of traditional media businesses from working at Time Warner and NBC.

He will play a key role in developing a global media strategy and driving new business opportunities to take advantage of Samsung’s growing number of digital televisions and displays, mobile phones, tablets and other connected devices.

“Samsung Electronics has an unparalleled footprint across multiple devices and platforms that provides a unique experience to consumers around the world. The competition for prominence in the living room has already begun, and Samsung Electronics is ideally situated to extend beyond that to connect the entire home and the lives of consumers,” stated Eun. “I’m looking forward to joining the impressive leadership already in place and to building a new presence in media for Samsung Electronics.”

Eun received a J.D. from Harvard Law School, where he was a Teaching Fellow for the Harvard Negotiation Project, and an A.B., magna cum laude in Government, from Harvard College. He was selected “Digital Power Player of the Year” by the Hollywood Reporter in 2010, is an Advisory Board Member for the Harvard School of Engineering and Applied Sciences, and sits on the Board of the Television Academy of the Arts and Sciences Foundation.

Kleiner Perkins has nabbed former Twitter engineering head Mike Abbott, who left the social communications company less than two months ago to be an entrepreneur in residence at Benchmark Capital.

(Well, that didn’t last long, Mike, but maybe the food was better at 2750 Sand Hill Road than at 2480 Sand Hill Road.)

In an interview this morning, Abbott said that he hopes to stay a VC for 20 years (yipes!), since it allows him to work closely with a wide range of entrepreneurs and also get a broad view across a spectrum of businesses.

“I am really energized about what’s been happening in a lot of places like software,” he said. “From my experience, I think I bring a lot of differentiation for the companies Kleiner is invested in.”

And tech cred too. “We think engineers will be thrilled to have access to Mike and he’s a magnet for talent,” said Kleiner partner Ted Schlein, who compared him to all the comic-book heroes, The Avengers, in one person. “Mike is multi-faceted.”

Abbott was indeed a high-profile hire for Twitter a little over a year ago from Palm, where he served as head of its software and services, in charge of its webOS mobile platform.

He was brought in to provide a level of discipline and reliability to the Twitter communications platform and service, which had been plagued by persistent outages that made the Fail Whale infamous.

Abbott will focus on social, mobile and cloud investments at the well-known Silicon Valley venture firm while working on a team that includes high-profile players Mary Meeker and Bing Gordon.

Here’s the official press release:

Michael Abbott Joins Kleiner Perkins Caufield & Byers as Partner

Engineering Leader to Help Social, Mobile and Cloud Entrepreneurs Build Teams and Ventures

MENLO PARK, Calif., December 1, 2011 – Kleiner Perkins Caufield & Byers (KPCB) today announced that Mike Abbott, former vice president of engineering at Twitter, has joined the firm as a partner on its digital team. Abbott led the building of innovative, high-performance applications and services at Twitter, Palm and Microsoft. With a deep background in social and mobile applications and infrastructure, Mike is also an expert in enterprise infrastructure and cloud computing and “big data” businesses, having founded Composite Software, and advised Cloudera and Jawbone.

“I’m excited to join KPCB’s partners to build new ventures faster,” said Abbott. “The partner mix of founders, operators and investors is ideal for entrepreneurs racing to scale at this disruptive time.”

“Mike is an exceptional and well-respected leader with an outstanding track record shipping great products,” said Ted Schlein, partner, KPCB. “Mike’s deep expertise from Palm and Twitter will help social, mobile and cloud entrepreneurs win.”

Dick Costolo, CEO of Twitter, said, “Mike is a huge engineering talent and will be a terrific asset to Kleiner’s technology companies. He was instrumental in helping us scale Twitter’s architecture to support incredible growth ̶ from 100 million daily Tweets in January 2011 to about 250 million daily tweets today.”

In less than a year and a half, Abbott grew the Twitter engineering team from 80 to more than 350 engineers in an intensely competitive recruiting market. Abbott’s team rebuilt and solidified Twitter’s infrastructure. Prior to joining Twitter in 2010, Abbott led the software development team at Palm that created HP/Palm’s next-generation webOS platform. Abbott was previously the general manager at Microsoft for .NET online services, which became Azure. Prior to that, he co-founded Passenger Inc. and founded Composite Software. Abbott has advised and invested in numerous software companies such as Cloudera, Hearsay Labs, Saynow and Jawbone.

Mike Abbott is just the third senior KPCB partner added in three years, joining Bing Gordon and Mary Meeker, each with exceptional records serving mobile, social and cloud entrepreneurs. KPCB’s digital team also bolstered its infrastructure expertise with the recent addition of Ray Bradford from Amazon Web Services, where he helped grow the company’s cloud database business.

Cantaloupe Systems, a Bay Area-based start-up that provides tech services for vending machine operators, has been working to deploy near field communication-enabled payment terminals at vending machines in San Francisco, Chicago and the mid-Atlantic region.

But not for hungry Apple iPhone users, since the NFC technology that is being installed only works with Google’s one-tap payments app for Android-based smartphones, called Google Wallet.

Cantaloupe co-founder Anant Agrawal said that Google Wallet-equipped vending machines will feature prominent stickers so consumers know which machines work with the app, and that eventually operators and even Google could send coupons and rewards to users as they purchase snacks.

For vending operators in the U.S. — there have long been such technologies in places like Japan — one-tap mobile phone payment could be a much-needed boost. From 2008 to 2010, vending machine sales fell 18 percent to $19.25 billion, according to an industry report from Automatic Merchandiser.

This is attributed mainly to a high U.S. unemployment rate — fewer people working means fewer people in offices, and office purchases account for 80 percent of all vending machine spending. Consumers are apparently not buying snacks at theme parks and airports, either.

Still, using a smartphone to pay at vending machines is a long way from becoming office protocol. Google Wallet is currently only available on one smartphone, the Sprint Nexus S 4G phone.

And while Cantaloupe said it has installed 6,000 NFC bezels so far, that’s a small percentage of the 80,000 machines in Cantaloupe’s network, and an even smaller fraction of the six million vending machines across the country.

In addition, while industry reports show vending operators are investing in new technology, many still don’t even accept credit card payments, because the benefits of easier payments don’t outweigh the transaction fees on low-margin items such as snacks.

Nonetheless, some think the ability to offer more coupons and rewards in the future is worth the investment in the tech now.

Mark Stein — whose company, Mark Vend, operates 2,000 vending machines in businesses, hospitals and universities in the Chicago area — plans to install NFC-enabled bezels on half of his machines by early 2012.

“It takes a long time to get the infrastructure out there,” he said. “But as more and more people do mobile banking, I think they’ll want to do more purchasing with their mobile phones.”

High-tech vending machines might have another benefit, too. With the introduction of compatible mobile apps, consumers could potentially request that certain items be included in the next round of snacks, and send immediate complaints when a machine is malfunctioning.

In other words, no more snacks stuck in vending machine purgatory.

As bidders ready their offers for all or parts of Yahoo this week, a lot of the eyes for one of the more aggressive ones will likely be on well-known Silicon Valley entrepreneur and powerful VC Marc Andreessen.

That’s because he’s deciding whether or not to play a significant role — as a key board member and even possibly as chairman — in an effort by private equity firm Silver Lake to buy part of the troubled Internet giant and attempt a dramatic reversal of its waning fortunes.

Andreessen, who now runs the Andreessen Horowitz venture firm with Ben Horowitz, has visited Yahoo execs, as I reported last week, part of a weighing of whether to deeply enmesh himself in turning around the iconic Web property.

He has been, as was also reported several months ago, allied with Silver Lake on a Yahoo effort since September and worked with the firm on its purchase and then sale of Internet communications service Skype.

For Andreessen — who serves on the board of Hewlett-Packard and has a lot on his plate running a major venture firm with investments at key companies throughout the tech sector — the decision to join with Silver Lake is a tough one, given that the possibility of failure is not unheard of.

“The question is whether Yahoo can be a growth company again,” said one person close to the situation. “And that is still unclear.”

In meetings with Yahoo execs, several sources noted that Andreessen was unusually blunt about the problems Yahoo faces and its mistakes in the past. They noted as well his reticence over the amount of work required to make a difference.

“He seemed very negative on the idea of whether anyone had what it took to turn it around,” said one exec.

Another factor: Possible friction with Yahoo co-founder and Andreessen friend Jerry Yang. The pair have discussed the issue on friendly terms. “Marc would not do this without Jerry being okay with it,” said one source.

That’s because observers expect the entrance of the Netscape co-founder — who has enormous clout with engineering talent across Silicon Valley, which Yahoo dearly needs — to overshadow and even minimize Yang’s involvement.

One thing is clear: Major shareholders, who are wary of any deal that would keep the current regime in place at Yahoo, told me in multiple interviews last week that the only way they would accept a partial investment by a private equity firm — called a PIPE — would be if there was new leadership in any deal.

And the first name mentioned by almost every Yahoo investor as a key get? Marc Andreessen.

Andreessen declined to comment on any of the 53 emails I sent him asking to.

One area of literacy that’s changing is the order in which things are presented — it isn’t linear, it’s organised spatially, and often some meaning is carried in the design, layout, images, sounds, movement, subtle changes in colour in a game — it’s all part of what literacy is in today’s world. These are fundamental changes to operational literacy, the biggest since the printing press.

– Dr. Rosie Flewitt of the Educational Dialogue Research Unit at the Open University, in conversation with Stewart Mitchell of PCPro about how keeping computers from children at an early age may deprive them of modern communication skills

We are now posting the full videos from the recent AsiaD conference, which took place in Hong Kong in October.

We’re following the schedule of the actual event. Up now: John Roese, head of Huawei’s North American R&D team.

While not as well known as others, the Chinese company is the world’s second-largest maker of telecommunications and networking gear. You might hear more about it soon, though, since Huawei aims to increase its annual revenue to more than $100 billion per year within the next decade, by expanding its business beyond communications service providers.

Roese is one of the execs charged with making it so by expanding in the U.S. and focusing on research.

Here’s his onstage interview with Ina Fried:

]]> http://allthingsd.com/20111121/huaweis-john-roese-on-the-telecom-giant-that-wants-to-roar-the-full-asiad-interview-video/feed/ 0 http://allthingsd.com/20111111/ex-yahoos-getting-downloaded-by-pe-firms-and-others-on-possible-deals/ http://allthingsd.com/20111111/ex-yahoos-getting-downloaded-by-pe-firms-and-others-on-possible-deals/#comments Fri, 11 Nov 2011 22:53:54 +0000 Kara Swisher http://allthingsd.com/?p=143361

One of Yahoo’s biggest problems — brain drain — has turned out to be an asset for private equity firms and other players interested in figuring out their best moves related to the Silicon Valley Internet giant.

A plethora of ex-Yahoos, including many former top execs, are getting buttonholed by those who want to know more about the inner workings of the company that might not be obvious from its copious financial data available publicly.

That includes former Americas head Hilary Schneider, who has a longer-term consulting gig with TPG Capital, one of the several PE firms that has recently signed a non-disclosure agreement with Yahoo; former COO and President Sue Decker, who has had a longtime informal relationship with Blackstone, which has not signed the NDA and has been in talks with Yahoo’s Asian partners, China’s Alibaba Group and Japan’s SoftBank; and even former CEO Carol Bartz, who sources say has also been contacted to get her insights.

She is one of many in that regard, in a large pool of former Yahoos, such as: LinkedIn CEO Jeff Weiner, who had run Yahoo’s media efforts; Chegg CEO Dan Rosensweig, former Yahoo COO; SurveyMonkey CEO Dave Goldberg, who ran swathes of Yahoo’s entertainment properties; Criteo CEO Greg Coleman, former Yahoo sales head; former CEO Terry Semel, who is now an investor; former communications exec Brad Garlinghouse, who is now at AOL; and Demand Media Chief Revenue Officer Joanne Bradford, who also was a top Yahoo advertising exec.

Not all are cooperating with the requests for a chitchat about Yahoo, but there is much incoming interest in ex-Yahoos and what they might know.

There’s lots more where that came from, from all parts and all levels of Yahoo, given the breadth of the exes now doing very well — thank you very much — throughout the tech and media industries.

Thus, calls from PE firms, from Silver Lake to Bain Capital to Providence Equity Partners, as well as interest from major and majorly irritated shareholders, such as activist hedge fund investor Dan Loeb.

It’s a smart idea to tap this rich vein of information, as all contemplate possible multi-billion-dollar investments.

While some of these execs have not worked at Yahoo in many years, all have significant knowledge about the challenges and also the culture that cannot be gleaned from spreadsheets.

They also know a lot about the internal politics and personalities of the existing inside players, too. More importantly, several were involved in similar previous major business decisions at Yahoo.

Decker, for example, was a key exec in the Yahoo takeover attempt by Microsoft several years ago; Schneider and Bartz were deeply involved in striking the advertising and search partnership with Microsoft.

“Between everyone, it’s a good way to figure out where all the bodies are buried,” said one person close to the situation. “And there are a lot of bodies.”

]]> http://allthingsd.com/20111111/ex-yahoos-getting-downloaded-by-pe-firms-and-others-on-possible-deals/feed/ 0 http://allthingsd.com/20111107/twitter-and-square-guru-jack-dorsey-on-steve-jobs-china-and-more-the-full-asiad-interview-video/ http://allthingsd.com/20111107/twitter-and-square-guru-jack-dorsey-on-steve-jobs-china-and-more-the-full-asiad-interview-video/#comments Mon, 07 Nov 2011 21:39:09 +0000 Kara Swisher http://allthingsd.com/?p=141156

We are now posting the full videos from the recent AsiaD conference, which took place in Hong Kong in October.

Over the next week or so, we’re going to follow the schedule of the actual event. Up now: Twitter and Square inventor Jack Dorsey.

The busy entrepreneur has a lot going on, working both to change the online payments space and also to make money from his social communications service.

One of Dorsey’s major inspirations was the late Steve Jobs of Apple, especially in his knack for simplifying products to an essential minimalism.

He talked about this in an onstage interview with Walt Mossberg, as well as the challenges Twitter faces in China and more:

]]> http://allthingsd.com/20111107/twitter-and-square-guru-jack-dorsey-on-steve-jobs-china-and-more-the-full-asiad-interview-video/feed/ 0 http://allthingsd.com/20111013/exclusive-vp-engineering-mike-abbott-departs/ http://allthingsd.com/20111013/exclusive-vp-engineering-mike-abbott-departs/#comments Fri, 14 Oct 2011 00:49:32 +0000 Kara Swisher http://allthingsd.com/?p=132237

According to sources close to the situation, Twitter VP of Engineering Mike Abbott has left the company.

He is apparently interested in doing more investing.

[UPDATE: Twitter confirmed the departure in a statement, noting that Abbott was joining Benchmark Capital as an entrepreneur in residence. Benchmark’s Peter Fenton is on the Twitter board.

“We can confirm that Mike Abbott is no longer with Twitter. Mike will be available to assist the company in his new role as an Entrepreneur in Residence at Benchmark Capital. We thank Mike for his leadership in growing an outstanding team of engineers from 100 to 400 that have successfully taken on the unique challenge of making Twitter reliable and stable. While Mike led the engineering team, Twitter grew from handling 55 million tweets a day to 230 million. Twitter is focused on aggressively moving forward to fulfill the profound opportunities that are in front of us.”

Said Fenton:

“What Mike Abbott accomplished at Twitter is nothing short of heroic, when Benchmark introduced him to the company we felt he had the courage and entrepreneurial drive to build a strong engineering foundation. Today we applaud him for that extraordinary accomplishment. As we continue to work closely with the team at Twitter, we’re delighted to welcome Mike to Benchmark as an entrepreneur in residence. Mike will not only continue to lend his considerable talents to supporting the team at Twitter, but as a true entrepreneur at heart, will undoubtedly be an incredible asset to our entrepreneurs and our portfolio overall.”]

The move feels sudden, but sources said it has been brewing for a while and happened several days ago.

Abbott was a high-profile hire for Twitter a little over a year ago from Palm, where he served as head of its software and services, in charge of its webOS platform.

He was brought in to bring a level of discipline and reliability to the Twitter communications platform and service, which was plagued by persistent outages that made the Fail Whale infamous.

In large part, Abbott has done that, as Twitter has grown significantly. It now has 230 million tweets per day, he said in a recent interview.

Twitter does not have a replacement as yet, sources said.

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