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Confirmed: Schultz and Efrusy to Leave Groupon Board; "Accounting Types" Joining

Kara Swisher — Mon, 30 Apr 2012 19:40:37 +0000

Spencer Platt | Getty Images News

According to sources close to the situation, Starbucks Chairman and CEO Howard Schultz and Accel Partners’ Kevin Efrusy will be stepping down from the board of Groupon.

Schultz’s departure will be effective today, but Efrusy — who was critical to the initial funding around the Chicago-based daily deals site — will not be standing for re-election at the company’s annual meeting in June.

The departures are voluntary, but sources said the pair will be replaced by two new directors with significantly more fiscal oversight experience, whom one source characterized as “accounting types.”

(Update: Groupon just posted a press release noting the board departures, with the names of the new board pencil pushers: Daniel Henry, CFO of American Express, and Deloitte Vice Chairman Robert Bass. Henry joins immediately in Schultz’s place. Full press release below.)

It is a move that is critical, given Groupon’s recent series of missteps around its financial reporting that have hurt both its reputation and, more importantly, its stock.

Interestingly, several sources noted that Schultz almost left the board right before Groupon’s public offering last fall, after several ongoing disputes with its management, but stayed on so as not to scuttle its IPO.

The board of the company has not involved itself as prominently in the accounting messes at the company, but it appears as if they will begin to now.

It must, given Groupon shares have been trading at a low of $11. Its stock has dipped to $10.98 today.

As Tricia Duryee wrote recently about the fall:

At that price, it is now worth just over $7 billion, down 57 percent since the company went public last November and well off the more than $10 billion it was valued at as tech’s hottest start-up of 2011.

Ironically, Groupon’s current market valuation is actually not much more than the $6 billion offered for it by search giant Google in late 2010.

The fall of Groupon has been swift, from the honorific of being the fastest-growing company ever to one that cannot keep control of that runaway growth.

That’s perhaps no surprise.

Perhaps most significantly, Groupon went public in just four years, delivering the biggest tech IPO since Google.

The quicksilver move was typical for it. In just two years’ time, the company ballooned from 37 employees to 9,625 and from serving five markets in the U.S. to 175 in North America alone. And that’s leaving out massive expansion abroad. In the past year, Groupon has acquired roughly 17 companies, including many international copycats.

The company also has entered many new segments, expanding from selling lower-priced and simpler deals on restaurants and spas to more complex and pricey arenas, including travel, physical goods and luxury items.

But Groupon is now learning that its original business does not work across just any segment, especially to more discerning customers of its higher-level and more expensive offerings.

In fact, it was those newer and potentially more lucrative markets that forced the company recently to revise the company’s fourth-quarter report after returns skyrocketed on luxury items, such as Lasik eye surgery.

The problems forced Groupon to lower revenue in the period by $14.3 million and net income by $22.6 million. It is now reporting a wider net loss of $64.9 million on revenue of $492 million, pushing it further away from its goal of profitability.

The company also disclosed at the time that independent auditors had noted “material weakness” in its financial controls. In addition, The Wall Street Journal reported that the Securities and Exchange Commission was examining Groupon’s revision.

With many companies, investors might have shrugged off such accounting issues, but the impact on the stock has been greater since they are only the latest in a string of similar mistakes at Groupon.

In its pre-IPO period, for example, Groupon was forced to restate revenues after counting both its portion of the revenue and the revenue that goes to the merchant together. It also had to dump a controversial accounting metric that made the company look more profitable than it was, because it did not include important costs, such as critical online marketing expenses to attract new customers.

Those came after the company retracted a statement by Eric Lefkofsky, Groupon’s co-founder and executive chairman, who told Bloomberg in an interview that Groupon would be “wildly profitable.”

At least the wild part was accurate.

Much of the blame for these missteps by Wall Street is being aimed at CEO and co-founder Andrew Mason, the iconoclastic 31-year-old entrepreneur who is largely responsible for defining the company’s culture, as well as Jason Child and Joe Del Preto, the chief financial and accounting officers, respectively.

Child joined the company in December 2010, coming from Amazon, where he held several roles over a 10-year period — including VP of finance, international, and director of investors relations. Prior to joining Amazon, he worked at Arthur Andersen as a certified public accountant.

Del Preto has been Groupon’s chief accounting officer for the past year and, before that, he was the company’s global controller for three months. Before Groupon, he was controller and VP of finance at Echo Global Logistics and also served as controller at InnerWorkings, the same company where Mason was a computer programmer in his early career.

Mason, of course, is the best known and the person most responsible for establishing the company’s whimsical culture and managing — or mismanaging, depending on how you look at it — Groupon’s hard-charging growth.

It will also be up to him to turn it all around, as the company sinks in both value and investor regard. Since the restatement, Mason has said little about how he intends to do that. In February, when Mason concluded Groupon’s first-ever earnings call, he said: “Thanks, guys, this was a lot of fun, and I look forward to many more of these.”

It’s not clear fun will be on the agenda at his next outing on Groupon’s first-quarter call in mid-May.

Here is the official press release from Groupon on the board changes:

Groupon Appoints Two Directors to Board Daniel Henry, CFO of American Express, and Robert Bass, Vice Chair of Deloitte

CHICAGO — (BUSINESS WIRE) — Groupon, Inc (http://www.groupon.com) (NASDAQ:GRPN) today announced that Daniel Henry, the chief financial officer of American Express Company and Robert Bass, a vice chairman of Deloitte LLP will join its Board of Directors. Both will serve on the Audit Committee with Audit Chair, Ted Leonsis. Daniel Henry was appointed to the Board on April 26, replacing Howard Schultz, who has stepped down from the Board. Robert Bass will stand for election at the annual stockholder meeting to be held on June 19 following his retirement from Deloitte, replacing Kevin Efrusy, who will not stand for reelection at that time. “With their deep financial, accounting and operational experience, Dan and Bob will provide invaluable expertise to the Board going forward,” said Eric Lefkofsky, Groupon Chairman.

Daniel Henry, 62, has been the Chief Financial Officer of American Express Company since October 2007. Henry is responsible for leading American Express Company’s finance organization and representing American Express to investors, lenders and rating agencies. He has also served as Executive Vice President and Chief Financial Officer of U.S. Consumer, Small Business and Merchant Services and joined American Express as Comptroller in 1990. Prior to joining American Express, Henry was a partner with Ernst & Young.

Robert Bass, 62, has been a vice chairman of Deloitte LLP since 2006, and a partner in Deloitte since 1982. He will retire from Deloitte on June 2, 2012. Bass has specialized in e-commerce, mergers and acquisitions and SEC filings. At Deloitte, Bass is responsible for all services provided to Forstmann Little and its portfolio companies and is the advisory partner for Blackstone, DIRECTV, McKesson, IMG and CSC. He has also previously been the advisory partner for priceline.com, RR Donnelley, Automatic Data Processing, Community Health Systems and Avis Budget. He is a member of the American Institute of Certified Public Accountants and the New York and Connecticut State Societies of Certified Public Accountants.

“I’m thrilled to have been a part of Groupon’s development,” said Kevin Efrusy. “The Company is well on its way to becoming the operating system for all local commerce.”

“Howard and Kevin helped guide us on our journey to becoming a public company and I want to thank them and acknowledge their contributions,” said Groupon CEO Andrew Mason.

“During my tenure on the Board, I was impressed by the game-changing opportunities that Groupon has delivered for both merchants and customers on a global scale,” said Howard Schultz. “Groupon has a strong sense of mission and purpose, and as I move on to focus on my other time commitments, I wish them the very best.”

A Countdown to Apple's Cash Conference Call

Arik Hesseldahl — Mon, 19 Mar 2012 11:04:58 +0000

About two hours from now, one of the great business questions that has persisted for a little less than a decade is going to be answered: What will Apple do with all the cash it has accrued on its balance sheet? Apple CFO Peter Oppenheimer will hold a special conference call to announce the company’s intentions.

Update: Apple didn’t wait for the conference call to release its news. It has just announced plans to pay a quarterly dividend of $2.65 a share and buy back $10 billion worth of shares.

The question has lingered for a long time. At last count, when Apple last reported quarterly earnings, the figure was a staggering $97.6 billion. At the close of that period, which happened to coincide with Apple’s all-important holiday season, the company reported that its cash pile grew by $16 billion, in a single quarter.

That is more cash than the $12 billion it had on hand in 2007, which is roughly when the persistent questions about paying a dividend, buying back shares, making large acquisitions, or doing something else with the cash started knocking around in the minds of investors and analysts. At that time, Apple had reached a point where it was growing its cash hoard by a healthy $1 billion per quarter, an amount that seems quaint now.

Apple’s cash-generating power is scarcely imaginable. In the company’s most recent four quarters, analyst Shaw Wu of Sterne Agee estimates that Apple’s free cash flow was $45.3 billion. But as iPhone, iPad and Mac sales grow, it is on track to nearly double that figure in the next four quarters, to somewhere between $75 billion and $80 billion.

The cash — technically the figure most widely used is the sum of Apple’s cash on hand, its short-term investments that can be quickly converted into cash, and its long-term investments — has a lot to do with the reason that Apple’s share price has risen so high so fast. If, hypothetically, Apple were to shut down and liquidate tomorrow, everyone who owns shares would be entitled to about $104 for every share they own, and that would be before accounting for the sale of any assets.

It has always been used as a strategic hedge. Apple has the strongest supply-chain planning in the computer and electronics industry because it can show up, cash in hand, and buy up a fixed percentage of a supplier’s capacity. In 2005, this proved strategically invaluable when it launched the iPod nano. By buying up a large percentage of manufacturing capacity of flash-chip manufacturers, it guaranteed its supply of a critical component known for regular shortages, and forced its competitors to wait in line when the shortages inevitably arrived. Soon, Apple was the only music-player maker worth talking about, as most others faded into market obscurity or ceased to exist. Yet, as of Dec. 31, only $2.7 billion was committed to these “long-term supply agreements” that Apple concludes with companies that supply it with certain strategically important parts.

The consensus appears to be that Apple will pay some sort of dividend. Analysts seem to want a dividend of about 2.5 percent. At that rate, says ISI analyst Brian Marshall in a note to clients issued Sunday, Apple would pay a higher dividend yield than Hewlett-Packard, at 2 percent; Cisco Systems, at 1.6 percent; and even IBM, at 1.5 percent.

At current prices, a 2.5 percent annual dividend would put $14.65 per share in the pockets of Apple shareholders. It would also cost Apple between $12 billion and $14 billion a year, but given its expected free cash flow for the coming year, it can easily afford it.

A dividend would also spur a new round of buying of the stock, and probably have the effect of driving the share price higher, as mutual funds and exchange-traded funds (ETFs) pile in to add to their Apple positions, thus spurring other investors to keep buying as well. One wonders where — if it happens — this all leads. Apple is the largest company in the world, and every day brings some new, uncharted territory.

Already, shareholders are anticipating good news. Apple shares are up by nearly $22 to $606.87 a share in premarket trading this morning, in anticipation of a dividend. The $600 threshold, barely cracked last week with a few trades at $600.01, will in all likelihood be smashed to bits today, once the markets open for regular trading.

A return to paying a dividend would also close the loop on an important thread in the now decades-long epic that has made the Apple story one of the greatest narratives in the history of business. In November of 1995, during its crisis years, when cash was so short that Apple struggled to keep its doors open, it payed its last dividend of 3 cents a share at a time when on a split-adjusted basis, the shares were trading at less than $10.

The story of what has happened since then is well-known. And it’s not over yet.

Here's a Facebook App That's Basically a Bank

Tricia Duryee — Tue, 20 Sep 2011 13:30:29 +0000

Online banking is used by those who have checking and saving accounts, but what about the millions of teens who rely on prepaid cards for all of their transactions?

Seattle-based Bobber Interactive believes it has come up with a solution: A Facebook application that allows prepaid users to track their spending, make savings goals and ultimately earn cash rewards.

While a number of Facebook applications exist to collect debts from friends, pool money for shared bills or track household expenses, this may be the first application that allows people to actually manage real money, like a bank.

The application, called Goal Card, is being unveiled this week at the Finovate event in New York, where the company is providing a demonstration and announcing that it has raised $1.4 million in a round of capital.

As you might expect, the Goal Card application is nothing like your mother’s bank. Instead of black-and-white spreadsheets, the GoalCard apps uses animated pictures, videogames to increase loyalty, and even viral mechanisms, like posting to a friend’s Facebook page.

The concept for the company, led by CEO Eric Eastman and COO Scott Dodson, started to gel last year, and won the “Best in Show” award at the Finovate event in the spring.

Today, the five-person team works out of luxurious headquarters in downtown Seattle. The space is hundreds of thousands of square feet too big, but it’s a bargain, and there’s always parking available in the garage. It’s also appropriate because it’s on Wall Street. Eastman jokes that while a lot of people have lost their trust for financial institutions on Wall Street, “hopefully they’ll trust this one.”

The company’s investors include Peak6 Investments and Dove Capital.

The application allows prepaid cardholders to do a number of regular banking activities such as check balances and track recent purchases. But it also allows users to set goals, like saving up for a new mountain bike or designer purse. Every day, users will see a progress bar detailing how close they are to making that purchase.

Users will also be able to play games, like a version of Bejeweled in which users line up credits and debits or answer questions such as “Who would you rather loan $50 to?” using their Facebook friends.

The games encourage engagement and enable users to earn cash rewards, Dodson explains. Users will also be able to receive up to five percent cash back once they meet their goal and purchase the item they’ve been saving up for.

Bobber makes money by sending referrals to e-commerce sites, which can pay up to 15 percent, depending on the item. But the majority of its revenues are expected to be made from interchange rates, which merchants pay the card’s processors each time a purchase is made. Those rates have remained high for prepaid cards — around 1.25 percent — despite recent legislation that lowered rates for other transactions.

So far, Bobber has only integrated with Amazon, but it expects to add more retailers soon.

Additionally, it expects to lower the cost of acquiring customers compared to other banks and card issuers, which spend big dollars on circulars and flashy ads. Instead, it believes current customers will spread the word about the site through Facebook’s viral channels.

Mac Alternatives to Quicken

Walt Mossberg — Thu, 14 Jul 2011 00:58:28 +0000

I have just been notified that Quicken 2007 for the Mac won’t run on Apple’s new Lion operating system. I don’t wish to use the new Quicken Essentials for Mac program, which has fewer features. What are the alternatives?

There are other full-featured finance programs for the Mac, whose makers say they will work with Lion and can import your data from Quicken. Two better-known ones are iBank and Moneydance. I haven’t reviewed either yet, so I can’t say how they measure up. Another option is to install Windows on your Mac, or buy a cheap Windows PC, and run Quicken for Windows. Intuit, the maker of Quicken, says on its support site that, while the Windows version can import most data from the Mac versions, it cannot import investment history. Intuit says: “You will need to either re-download your investment transactions or manually enter them.”

How do I put my computer to sleep?

If it’s a Windows 7 PC, click on the “Start” button at the far left of the task bar. In the menu that pops up, click on the arrow icon to the right of the search box (it may be next to a button labeled “Shut Down.”) Select “Sleep” from the list that pops up.

If it’s a Mac, click on the Apple icon at the far left of the top menu bar and select “Sleep.”

How can I utilize my Slingbox for watching TV on an iPad?

There’s an app for that, but it costs $30 and only works with two Slingbox models, the Slingbox SOLO and Slingbox PRO-HD. The company has a discounted upgrade program for people with older models. Information is at slingbox.com/go/iPad.

Email mossberg@wsj.com.

Tales From the Front Lines

Rebecca Blumenstein, Laura Landro, Julia Angwin and Alessandra Galloni — Mon, 11 Apr 2011 12:00:53 +0000

The challenges women face often cut across industries. But some are also unique to specific sectors. Women who have risen high in four industries–finance, health, technology and media–sought to illuminate these issues by recounting their own experiences and assessing how women generally have fared in their fields.

Mellody Hobson, president of Ariel Investments in Chicago, spoke with The Wall Street Journal’s Rebecca Blumenstein. Julie Louise Gerberding, president of Merck & Co.’s Merck Vaccines unit, sat down with the Journal’s Laura Landro. Marissa Mayer, Google Inc.’s vice president, consumer products, talked with the Journal’s Julia Angwin. And Debra L. Lee, chairman and chief executive of BET Networks, a unit of Viacom Inc., spoke with the Journal’s Alessandra Galloni.

Read the rest of this post on the original site

Yahoo's Got a Digital Newsstand

John Paczkowski — Thu, 10 Feb 2011 17:23:57 +0000

Chief Product Officer Blake Irving defines Yahoo as “the premier digital media company in content and context.” That’s a far shorter answer than the one he provided for the “what is Yahoo” question last year. A bit more cogent too. And it sets the stage for the company’s latest push into mobile content, Livestand, which it announced moments ago.

Designed to offer consumers content based on their interests, Livestand is a sort of personalized digital newsstand for tablets. It will feature content from Yahoo! Sports, Yahoo! News, Flickr and celebrity gossip site OMG, and it will customize that content according to user preference as well as time of day. “Tablets are great for a laid-back experience, but most magazine content remains trapped online,” Irving said this morning . “But consumers don’t want a digitized magazine. They want rich media, they want connections beyond just commenting.”

Which is what Yahoo is trying to give them in Livestand. The platform will be integrated with Yahoo! Finance as well as Yahoo! Mail, and it will support content sharing and commenting. “We see this as the next generation of Yahoo and we’re putting the full force of Yahoo behind it,” Irving said.

The hope here, of course, is that this will play well with advertisers dissapointed by shallow digital experiences. “You don’t exactly curl up with your PC, the way you do with a magazine,” said Irving. “With Livestand, brands can finally match the intimacy that magazines once brought to their audiences.” That means offering them ads that adapt and respond to user interaction and the tools to create “a TV-like ad experience.”

Yahoo Livestand will debut on iOS and Android in the first half of 2011. No word yet on subscription pricing.

Spotify Isn't in the U.S., but It's Hiring Here

Peter Kafka — Wed, 02 Feb 2011 14:12:59 +0000

Spotify has one U.S. label deal and at least one more–with Citigroup’s EMI–that’s very, very close. That doesn’t mean the music service is guaranteed to land in the States, but it’s hiring as if it will: It has just picked up former LimeWire engineer John Pavley, and will put him to work at Spotify’s New York office. It’s also looking for a finance pro.

Talking Schmidt: Google's CEO in His Own Words

John Paczkowski — Thu, 20 Jan 2011 20:30:04 +0000

Eric Schmidt once said Google’s “policy is to get right up to the creepy line and not cross it.” But during his soon-to-end tenure as CEO he happily high-stepped across that line like the grand marshal of the Tone-Deaf Technocrat Parade, as I once joked. Below, a collection of some of his more remarkable pronouncements.

ON THE CREEPY LINE
“There is what I call the creepy line.The Google policy on a lot of things is to get right up to the creepy line and not cross it.”
–October 2010

ON BRAIN IMPLANTS, WHICH WOULD CROSS THE CREEPY LINE
“I would argue that implanting something in your brain is beyond the creepy line–at least for the moment, until the technology gets better. As far as I know, we do not have a medical lab working on implants … As far as I know.”
–October 2010

ON PRIVACY:
“Streetview, we drive exactly once. So you can just move, right?”
–October 2010

ON CARS:
“It’s a bug that cars were invented before computers.”
–September 2010

ON THE BORG:
“What we’re really doing is building an augmented version of humanity, building computers to help humans do the things they don’t do well better.”
–September 2010

ON EXTENDING GOOGLE’S MISSION TO YOUR BRAIN:
“With your permission, you give us more information about you, about your friends, and we can improve the quality of our searches. We don’t need you to type at all. We know where you are. We know where you’ve been. We can more or less know what you’re thinking about.”
–September 2010

ON YOUR FACEBOOK PHOTOS
“Show us 14 photos of yourself and we can identify who you are. You think you don’t have 14 photos of yourself on the internet? You’ve got Facebook photos!”
–August 2010

ON FINANCE:
“One day we had a conversation where we figured we could just try to predict the stock market. And then we decided it was illegal. So we stopped doing that.”
–March 2010

ON YOUR NEEDS:
“I actually think most people don’t want Google to answer their questions. They want Google to tell them what they should be doing next.”
–August 2010

ON PRIVACY:
“If you have something that you don’t want anyone to know, maybe you shouldn’t be doing it in the first place.”
–December 2009

ON M&A AND “ADULT SUPERVISION”:
“One day Larry and Sergey bought Android, and I didn’t even notice. Think about the strategic opportunities that has created. Sergey found Google Earth one day while he was surfing on the Web. And then he walked into my office and told me he bought them. “And I said, ‘for how much, Sergey?’ And it turned out to be a few million.”
–October 2009

ON ‘DON’T BE EVIL’
“‘Don’t be evil’ is misunderstood. We don’t have an ‘Evilmeter’ we can sort of apply–you know–what is good and what is evil….The rule allows for conversation. I thought when I joined the company this was crap…it must be a joke. I was sitting in a room in [the] first six months…talking about some advertising…and someone said that it is evil. It stopped the product. It’s a cultural rule, a way of forcing the conversation especially in areas that are ambiguous.”
–June 2008

ON THE ‘EVILMETER’:
“We actually did an evil scale and decided not to serve [China] at all was worse evil.”
– Jan. 2006

ON EVIL:
“Evil is what Sergey says is evil.”
–-December 2002

ON IDIOTS:
“People are surprised to find out that an awful lot of people think that they’re idiots.”
–Date Unknown

ON RUNNING GOOGLE:
“Day-to-day adult supervision no longer needed!”
–-January 2011

Don't Want to Sign In to Yahoo? That's Okay, Use Your Facebook or Google ID.

Liz Gannes — Tue, 18 Jan 2011 19:12:52 +0000

Yahoo this week will begin allowing users to participate on its properties without signing in to a Yahoo account. It’s a significant move for the company, which had for a long time incessantly popped up login screens (as pictured) whenever visitors tried to do seemingly anything on the site.

Now, users will be able to share articles, leave comments and play fantasy sports on Yahoo by signing in to accounts they’ve created on Facebook and Google. They won’t have to create a Yahoo profile or associate their Facebook or Google ID with an existing Yahoo one (though a Yahoo account is being created in the background that’s associated with the other site’s credentials).

Other properties included in the new login regime (or lack of a regime) are Yahoo! Finance, as well as pages for users to rate movies, music and restaurants. (Obviously for some properties, like Yahoo! Mail, users will still need to plug in Yahoo-specific credentials to create a full-fledged Yahoo ID.)

The beleaguered company is playing this as a move toward openness. And there is some precedent for the move. Yahoo had previously allowed users to log in to Flickr using OpenID logins from Google, and had partnered with Facebook to give users an option, through Facebook Connect, to integrate their accounts on the two sites and send information back and forth between them.

But this latest announcement is different from Facebook Connect; what Yahoo is now offering is a wholesale substitution of another site’s account system. Yahoo for a long time had the coveted advantage as a Web portal of having a large percentage of its visitors logged in at all times to a consistent account across all its properties; that doesn’t seem to be a top priority for the company anymore.

Early Adopter: Pothole-Reporting App SeeClickFix Raises $1.5 Million to Help You Be a Squeakier Wheel

Drake Martinet — Fri, 14 Jan 2011 19:00:34 +0000

It started with some simple graffiti that Ben Berkowitz wanted to get removed from a wall near his office in New Haven, Conn.

“And not the nice kind of graffiti,” he added.

Instead of knocking on the door of City Hall to get the unsightly spray paint dealt with, Berkowitz and his fellow co-founders developed SeeClickFix.

The Web and mobile app, from the company of the same name, has been aiming to help users document and report civic annoyances since its alpha launch in 2008.

Now SeeClickFix has just completed a $1.5 million Series A round of funding led by Bryce Roberts at O’Reilly AlphaTech Ventures. EBay founder Pierre Omidyar’s Omidyar Network also invested.

The round closed very shortly after a major upgrade of its Apple iPhone app and formalization of partnerships with San Francisco’s 311 issue reporting system, as well as Washington, D.C.’s similar service.

So issues submitted in those cities via the SeeCickFix apps will actually create a work order in the cities’ official system, rather than just being directed to the appropriate agency’s email “tip line.”

Berkowitz said the infusion of cash will allow the addition of a sales and business development staff, as well as the hiring of two developers to focus on its apps and Web presence.

The concept behind SeeClickFix is simple, if not entirely original. In fact, Berkowitz admitted, it began as an outright copy of FixMyStreet, a pothole-reporting Web app from the U.K.

“We looked at the FixMyStreet code when building SeeClickFix, and quickly realized that it was built specifically not to scale outside of the U.K.,” Berkowitz said. ”We had to rebuild the concept from scratch so it would be useful here in the U.S. and so it could scale.”

SeeClickFix took the pothole concept and added the ability to report graffiti, speeding school buses, broken infrastructure and just about any kind of civic breakdown one might imagine.

People have even used it to request beautification, other than blight removal, such as asking for a tree in their neighborhood.

Berkowitz claimed the resolution rate for issues filed with SeeClickFix is approximately 45 percent nationally, although he wouldn’t elaborate on given municipalities.

He did say that he hoped the new formal partnerships would close the loop and allow SeeClickFix to more accurately list the issues that had been fixed through municipal reporting, rather than waiting for citizens to document the fixes.

I asked about the somewhat unusual funding situation SeeClickFix is now in, having a venture investor best known for supporting micro-finance and political engagement campaigns in the developing world.

But to Berkowitz, it seemed like a pretty natural partnership.

“Citizens are our users. That’s who we serve,” he said. “Governments just benefit from it.”

Berkowitz actually had quite a bit to say about the larger motivations behind SeeClickFix, and you can watch the video interview below to hear it all from him:

[ See post to watch video ]

(Early Adopter is a new column on early-stage start-ups and ideas that will be written weekly by Drake Martinet.)

Former Northrop Grumman CEO Joins Apple Board

John Paczkowski — Wed, 17 Nov 2010 15:10:11 +0000

Here’s a worthy addition to Apple’s board of directors: Ronald Sugar, former chairman and CEO of Northrop Grumman. “Ron is an engineer at heart, who then became a very successful business leader,” Apple CEO Steve Jobs said of Sugar, who will also serve as chairman of the company’s audit and finance committee. “In addition to having been the CEO of a high-tech Fortune 100 company, Ron has a Ph.D. in engineering and has been involved in the development of some very sophisticated technology.”

Sugar’s appointment grows Apple’s board back to seven members, following the death of Jerome York earlier this year.

Exclusive: Former Yahoo and Microsoft Exec Dossett to Demand Media

Kara Swisher — Sat, 16 Oct 2010 08:23:06 +0000

According to sources, Jeff Dossett has taken a job at Demand Media as its SVP of Content Partnership Development.

That means Dossett, who has held top online jobs at both Yahoo and Microsoft, will be focused on content distribution partnerships for the online content company’s Demand Media Studio platform.

The Santa Monica, Calif.-based Demand, which sources said is now prepping its road show for its upcoming IPO, has been picking up big company execs to add to its roster.

In March, it hired Yahoo U.S. advertising sales head Joanne Bradford, who worked with Dossett at Microsoft.

When BoomTown last checked in with Dossett in mid-2009, he was leaving Yahoo for an adventure-focused start-up.

As its SVP for North American Audience, Dossett had been in charge of all of Yahoo’s media assets, including its powerful News, Sports and Finance content sites.

Dossett had joined Yahoo in late 2008, coming to the company from Microsoft, where he was MSN executive producer and general manager.

In his job at MSN, Dossett was the lead for audience, content and programming strategy and execution in the U.S.

He had worked at the company since 1991, in a variety of sales and marketing jobs in Canada, and later worked on strategy and business development for MSN.

Dossett was also CEO of Carpoint, now MSN Autos, and was GM of its real-estate arm.

He also took two years off from Microsoft in 2002 to climb the highest mountains on each of the seven continents, finally reaching the summit of Mount Everest in May of 2004.

Dossett reached the summit of Everest for a second time in 2008.

Yahoo Upgrades Search Experience With "Accordion"–As It Ports Over Tech to Microsoft

Kara Swisher — Thu, 07 Oct 2010 04:00:42 +0000

Tonight, Yahoo is introducing a new set of search upgrades, moving to focus on boosting its experience for consumers as it ports responsibility for underlying search technology over to Microsoft under its new partnership.

The new features include an innovative, if odd, vertical “accordion” tab.

“We have been actively working on the algorithmic transition of search, which was completed in August, and we are already releasing new features to the search experience,” said Shashi Seth, SVP of Yahoo Search and Marketplaces, in an interview with BoomTown today. “Since we are not actively spending a lot of energy on back-end stuff, we can focus our efforts on new things.”

Among the new enhancements to Yahoo (YHOO) search: A vertical “accordion” paradigm with shortcuts on search results that allow for new kinds of information presentation; “quick apps,” beginning with one for Netflix (NFLX) that lets its members add movies to their queue directly from the search results page; slideshows within search from the “Trending Now” lists on Yahoo; more immersive and theater-style photo and video search, as well as “the ability for people to view personally meaningful public Facebook albums from friends,” when they sign in to Facebook; and a new mobile search experience for Apple (AAPL) iPhone and Google Android smartphones, as well as feature phones, that uses HTML5 technology.

“We wanted users to see that things had changed dramatically,” said Seth. “Consumer needs for search engines have changed.”

He said that in testing so far, engagement–an increasingly important measure for advertisers–had spiked with the new features, especially in “taking search from an information need to action at an end.”

Seth promised a “huge pipeline of stuff” to come in search, where the Silicon Valley Internet giant holds the No. 2 position in market share, well behind Google (GOOG) and ahead of the Microsoft (MSFT) Bing service.

Both Google and Microsoft have been adding a series of search upgrades over the last year, such as Google Instant, while Yahoo has not.

Yahoo has a blog post up about it here.

And here are some screenshots, as well as the official press release and an overview by Yahoo of the new search features (click on the images to make them bigger):

Yahoo! Makes Searching More Relevant, Productive and Fun

New features help people explore their interests and do more

SUNNYVALE, Calif., October 7, 2010–Yahoo! (NASDAQ: YHOO) today introduced new Search enhancements that will help millions of people be entertained, productive, and informed anywhere they are across Yahoo!. Leveraging Yahoo!’s rich content and robust technology platforms, these new Yahoo! Search features will help people get to the entertainment and news content they care about on all connected devices–and do more with the things they find.

“Our goal is to understand what people care about and to make it fun for them to explore the most personally relevant, interesting, and informative content so that they can get things done faster and stay in the know,” said Shashi Seth, senior vice president, Yahoo! Search and Marketplaces. “Yahoo!’s new immersive Search is a cornerstone of the overall Yahoo! experience, creating more ways to connect people with whatever and whoever interests them.”

To start using the new enhancements, go to Yahoo.com and search for topics such as “Lady Gaga” or “Wall Street: Money Never Sleeps.” The features include 3D multifaceted results and tools that let people:

• Cut to the chase–Intelligent shortcuts for movies, musical artists, celebrities and news topics conveniently organize the most important details such as images, articles, videos, tweets, event listings, and ratings. They also provide quick and easy ways to purchase movie or concert tickets while searching.

• Find favorite flicks–The first in a series of unique “quick apps” from Yahoo! Search, a new Web app for Netflix provides an easy way for Netflix members to add movies to their Queue right from the Search results page. In the coming months, Yahoo! plans to launch additional apps that change the search paradigm from finding to doing.

• Watch what’s happening now–Continuing to bring Search to more people in more places across Yahoo!, the company is helping people feed their curiosity by displaying image slideshows right above the standard results for interesting topics from Yahoo!’s Trending Now lists on Yahoo.com and elsewhere.

• Lean back and browse more pictures–An immersive new Yahoo! Image Search delivers engaging slideshows with public photos from Flickr and Yahoo!’s leading content sites, as well as the ability for people to view personally meaningful public Facebook albums from friends when they sign-in and connect their Yahoo! accounts to Facebook.

• Search on the go–Android and iPhone users can now get faster, more sophisticated Search results, thanks to the latest HTML5 technology. Rich content on entertainment, finance, and local topics is surfaced in more unique and compelling ways for high-end mobile devices.

Working toward its vision to be the center of people’s online lives, Yahoo! is dedicated to re-imagining Search by creating new ways to bring people closer to what they need and want on the Web. Today’s visually stunning new Search experiences throughout the Yahoo! network, along with innovative technology enhancements and quality improvements for rich local and shopping searches, all supplement organic algorithmic Search listings from the recently transitioned Microsoft search platform. Yahoo! expects current and future innovations to redefine Yahoo! Search and drive greater consumer engagement and loyalty.

New features began rolling out to Search users across the U.S. today, and Yahoo! expects to launch them for additional global markets in 2011.

Search Launch Overview Oct 2010

Yahoo Troops Skittish With No Word From Top on Exec Departures (So's Microsoft)

Kara Swisher — Thu, 30 Sep 2010 16:49:01 +0000

“We are wandering around and people are asking us questions and we don’t know what’s going on ourselves,” said one very nervous Yahoo ad salesperson this morning, in New York for Advertising Week, the most important gathering of the year for online sales. “There’s a lot of uncertainty from an employee perspective.”

You can say that again.

Today, as news BoomTown broke about the departure of Yahoo’s U.S. head Hilary Schneider and two other key execs at the Internet giant spread, I have been on the receiving end of a spate of emails and calls and text messages from staffers at the Silicon Valley icon searching for information about what’s up at their own company.

That’s because neither the top management of Yahoo (YHOO) nor its typically ineffectual board has communicated to its thousands of employees about exactly what is going on, nor about plans to replace bosses in charge of giant swaths of the business.

Now, for example, Yahoo’s ad sales execs say they don’t know who to report to, since Schneider is headed out and no one person replaced U.S. ad sales leader Joanne Bradford in Yahoo’s key moneymaking market after she left in March.

And media workers, such as GMs of powerful Yahoo news, sports, finance and mobile efforts, all under departing Audience head David Ko and VP of Media Jimmy Pitaro, are also wondering who is now in charge.

Here’s my promise: I will have all internal memos here, as soon as they are released and I can get my mitts on them.

It’s not clear when that will be. Sources said Yahoo might make a statement about the situation this afternoon, before the planned announcement tomorrow afternoon about the exec departures, but it has not been determined yet.

But sources said Yahoo might have an exec to announce to replace at least Schneider by today, given how important sales are to the company.

Since Chief Product Officer Blake Irving is from Microsoft and he has brought in several execs from there to Yahoo, rumors are swirling around yet another one coming in.

Some outside partners are also nervous, including those staying at Microsoft.

In an interview just this morning with the new head of global ad sales for Microsoft (MSFT) Carolyn Everson, for example, she pointed out that Yahoo is slated to take over premium online ad sales for the software giant under the terms of their search and technology partnership in just two weeks.

“I’ll be honest,” she said. “We are a little worried.” But she added that Yahoo remains an important strategic partner and the success of the alliance is a key focus.

Worried? Get in line, it seems.

Exclusive: Yahoo Exec Churn Continues, With Media Head Pitaro Ready to Bolt

Kara Swisher — Tue, 28 Sep 2010 17:00:33 +0000

Last week at a Goldman Sachs (GS) investment conference, voluble Yahoo CEO Carol Bartz tried to minimize the impact of the recent spate of significant executive departures at the Internet giant.

But, she noted: “There are a few more we’re going to lose.”

And Bartz is right–according to several sources with knowledge of the situation, Yahoo’s well-liked VP of Media, Jimmy Pitaro (pictured here), is expected to be leaving the company soon.

Rumors around Pitaro’s departure have been swirling inside and outside Yahoo, especially this week. Bartz and other execs are still trying hard to keep Pitaro, but sources said his departure would likely be to another company.

If he goes, it will certainly be a loss for Yahoo (YHOO). Pitaro is a longtime veteran and experienced digital-media exec, and he has run a number of its key media properties, such as Sports.

He now presides over all its other powerful media properties, such as News and Finance. Pitaro reports to David Ko, Yahoo’s U.S. Audience head.

Pitaro follows a number of key Yahoo execs out the door recently, either via changes in structure or because of increasing dissatisfaction with management and the company’s moribund stock price.

Adding Pitaro to the pile will only increase pressure on Bartz, as well as U.S. SVP Hilary Schneider, to show investors that the Silicon Valley icon has a clear and innovative plan amidst the executive turmoil.

Yahoo declined to comment.

Here is a recent video interview BoomTown did with Pitaro at Yahoo’s Santa Monica, Calif., offices, about a blog called The Upshot, an effort to delve deeper into the new push to determine content selections based on search:

[ See post to watch video ]

Dow Jones COO/CFO Daintith to Depart–Halpin Becomes CFO

Kara Swisher — Mon, 27 Sep 2010 20:15:50 +0000

The exec shifts at Dow Jones, a unit of News Corp., continue with the just-announced departure of Stephen Daintith as the media company’s COO and CFO.

He will be replaced by Kevin Halpin, a longtime News Corp. (NWS) finance exec who will become CFO and EVP, effective October 15.

Daintith, a six-year News Corp. veteran, is leaving for an unspecified new job opportunity.

Other exec departures at Dow Jones announced earlier this month: Gordon McLeod, president of The Wall Street Journal Digital Network; and Ann Sarnoff, president of Dow Jones Ventures and SVP for strategy.

Here is the official Dow Jones press release on the Daintith/Halpin switcheroo:

Dow Jones Press Release September 27 2010

And here is the internal memo from Dow Jones CEO Les Hinton on the move:

Dear all,

Today we are announcing a transition in our Finance and associated groups. Kevin P. Halpin is joining as executive vice president and chief financial officer. Stephen Daintith departs to pursue a new opportunity outside News Corp.

Kevin knows Dow Jones already. And we know Kevin’s eminent qualifications. For the past two years he has served as senior vice president finance at News Corp. and before that as vice president finance for eight years. His News Corp. duties brought him in close touch with our business and others like it in the News Corp. family.

Stephen’s new opportunity will be disclosed soon by his new company. Suffice it to say that this is good for him and we are grateful for his significant contributions to our success. Stephen and I have worked alongside one another nearly six years, half of those at Dow Jones. He brought vision and leadership to the company’s operations, helping us modernize our processes and achieve excellence and profits. We have enjoyed his humor, energy and his unwavering focus on smart investment, expense management and revenue growth. He has been an outstanding executive and friend, and I wish him all success in his new position.

Kevin will play a key role in helping to set and support our strategic priorities, as well as managing our growth and profitability. He will lead all finance functions and will be responsible for business unit finance, procurement, tax, audit, administrative services and facilities.

His appointment is effective October 15, 2010, and he will report to me. The Global Business Technology Services team led by Dean DelVecchio going forward will report to Todd Larsen. Our business units and technology must work hand in glove to be successful, and this will help align their priorities.

At News Corp., Kevin was responsible for evaluating merger, acquisition and divestiture opportunities. He has been involved with a number of significant transactions, including the purchase of Dow Jones in 2007 and the proposed BSkyB transaction. He received his undergraduate degree from Georgetown University, a master’s in business administration from Villanova University and is a CPA.

Please join me in welcoming Kevin to our already outstanding management team. This is a time of great opportunity at Dow Jones as we continue to pioneer new products and new thinking in digital content.

Best,
Les

(Full disclosure: Dow Jones owns this site; also, we like Stephen, we’ll miss him and we really think he’s an awfully good sport for all the ribbing we have given him.)

Okay, It's Not Just Buh-Bye at Yahoo–Here Are Two Hires!

Kara Swisher — Wed, 15 Sep 2010 10:00:10 +0000

While it seems BoomTown is all about the who’s-leaving-Yahoo-now posts, it’s not so!

Case in point: Here are two folks the Silicon Valley Internet giant has just hired.

First, as announced in its Yodel Anecdotal blog yesterday, David Rice will join Yahoo (YHOO) as VP of Product for Media.

That means he will be managing the “strategy and execution for our News, Sports, Finance, Entertainment, Lifestyles, and Games product teams.”

Rice is from online video company Metacafe, where he was COO. He is also an ex-Yahoo, who worked as part of its international product team from 2005 to 2007.

Next is James Wildman, who will become managing director and VP of sales for Yahoo’s U.K. and Ireland unit.

He’ll start in January, after departing his job as managing director of Virgin Media’s ids advertising and media company.

Goalkeeping Gets Easier at Mint.com

Katherine Boehret — Tue, 29 Jun 2010 20:47:27 +0000

When most people hear the word “budget,” they groan about all the numbers and spreadsheets involved in setting financial goals. Instead they procrastinate and continue spending without any specific savings goals. Case in point: I recently postponed a meeting with my financial planner because I didn’t have the energy after a long business trip to work through my finances.

[ See post to watch video ]

Now Mint.com, a website that already offers user-friendly options for studying how one’s money is spent, has introduced an easy way to set budget objectives, link them to accounts and learn specific steps on how to reach those goals. The goals can even be personalized with digital photos, like an image of the car you’re saving up to buy. And this service, which launched Tuesday, doesn’t cost a cent.

I’ve been testing Intuit Inc.’s free, updated Mint.com service, specifically focusing on its new Mint Goals feature. The idea of adding goals that tie into real accounts has been a long time coming for the finance-management website. Mint previously offered a Planning section on its site, but it required too much manual input, including setting up personal budget categories, and guesswork about how much one should spend.

The Goals feature uses pop-up windows where users can quickly input data, like annual salary, to get estimates on how much they can afford to spend on things like a vacation, as well as how much they need to save for that vacation. Monthly savings estimates can be set to aggressive savings plans or conservative ones with just a mouse click.

Finances in One Place

Mint.com has been around for almost three years and is already used by millions of people. Its proprietary algorithms encrypt data so people will feel confident enough to input their usernames and passwords for their online financial accounts, allowing them to see all of their financial activity in one place. These accounts include those tied to credit cards, banks, retirement savings and others. Mint is known for displaying colorful visuals like pie charts and graphs, so it’s easy for people to see where they’re spending their money or how it’s being invested.

Mint.com’s new Goals tab (top right) offers users a choice of eight popular goals and one to customize. Colorful thermometers (top left) show how much progress was made toward a goal. Details of a particular goal (above) and a “Next Steps” checklist of tasks to complete.

Mint Goals is a new tab on the Mint.com site, and clicking on it directs users to a group of eight popular goals and one that can be customized (more will be added over time). The preset list includes goals to get out of debt, buy a home, buy a car, save for college, take a trip or save for retirement. A digital checklist in each goal called “Next Steps” gives people serious, doable tasks to complete, so they can actually make progress toward a goal in ways other than just putting money aside. This instant gratification saved me from doing a lot of calculating.

The Best Account

When you set up a goal for the first time, Mint suggests what type of account would work best for saving toward it. Examples include a 529 savings plan for people who are saving to put their kids through college or a Roth IRA for retirement savings. Mint will also tell you the provider with the best interest rate.

Unlike some other websites that encourage saving, like SmartyPig.com, Mint isn’t a bank, so you’ll have to leave the Mint site to create accounts and manage money transfers rather than starting them right on the site. Aaron Patzer, the company’s founder and CEO, expects the site will enable setting up savings accounts and money transfers by the end of this year.

Each goal includes the overall amount of money intended to be saved, today’s balance, planned and projected dates for reaching the goal and how much has been saved this month (like $200 of $750). I liked looking at Mint’s colorful thermometers, which quickly showed me how I was progressing in a particular goal.

For example, the Buy a Home goal checklist includes steps like finding a Realtor, getting homeowner’s insurance and getting prequalified for a loan. A panel beside each of these items also offers an educational explanation of what these steps really mean. Many explanations include links to a blog called MintLife, where blog posts from Mint employees and some freelancers offer deep explanations about financial questions.

Ads With Context

The Goals feature comes with contextual ads, which help it remain free. One checklist item suggests opening a high-yield savings account and also offers links to the Discover and American Express websites, which offer the accounts. If you’ve started a Mint Goal to save for a trip to Iceland, travel insurance is suggested, along with Web links to sites that sell trip insurance.

While these links might allow people to get started right away on a particular task, they also beg the question of whether these are the best options for users—or just the biggest advertisers on Mint. Mr. Patzer explained that companies for these ads are chosen according to what’s best for the user and are selected from a list of savings options ranked by the site’s editors.

Goals can be linked to several of your accounts on Mint so they’re updated with real-time data. A long-term retirement goal can link to a 401(k), brokerage account and retirement account. If the stock market takes a dive and money is lost in an account, that loss is automatically reflected in the overall goal’s balance. If you tie a savings account to a goal to save for a house, every dollar added to that account (on the bank’s end) is automatically reflected in the goal.

Mint already gave people a visually engaging way to know more about what their money is doing, but Mint Goals give people a real reason to come back to the site more often.

Edited by Walter S. Mossberg

Write to Katherine Boehret at mossbergsolution@wsj.com

Yahoo Is Trying to Connect to the Social Boom Without Stepping in It Like Google Buzz

Kara Swisher — Wed, 24 Feb 2010 17:00:50 +0000

Is there more than one way to skin a social graph?

Yesterday, Yahoo (YHOO) took another step in its efforts to play fast catch-up in the social networking arena, by dramatically expanding its relationship with Twitter and integrating the microblogging service broadly throughout its Web site.

In much the same way it did recently with Facebook, Yahoo’s move is part of a massive integration of more innovative and popular third-party social networking sites across the giant Internet portal, which is code-named internally “Project Rushmore.”

Some think outsourcing the job to more capable companies is yet another monument to Yahoo’s failure at its own much touted plans to socialize itself.

And while this is true to a large extent, BoomTown is not so sure it’s a bad idea, especially compared with the flailing experienced by Google (GOOG) recently from its own attempts to compete with Facebook and Twitter via the rollout of Google Buzz.

That has certainly turned out to be a confusing mishmash so far and most definitely a privacy quagmire for the search giant, which–let’s be honest–might not be able to grok social even if it got poked in the head relentlessly.

And while Google execs have loudly claimed that they are not aiming at the social networking’s twin phenoms, the air of aggressive desperation–or maybe desperate aggression–is palpable.

That’s why what the Silicon Valley icon is doing might be the best solution for it at this point–if you can’t innovate, aggregate!

“We want to integrate across all social networks to give consumers a better experience,” said Cody Simms, senior director of product management for Yahoo’s open strategy, in an interview yesterday. “Yahoo then becomes a network of social networks, making it easier for users.”

And that effort to make Yahoo the one place to gather it all is just what it seems to be trying to do. In December, Yahoo announced it would integrate Facebook Connect with its many properties–from its powerful media sites to its Flickr photo service to its email.

That has now been followed by the weaving of Twitter’s real-time feed throughout the service in a variety of ways. Under terms of the deal, users can access the data stream of tweets while on Yahoo, make status updates and share Yahoo content.

In addition, Yahoo said that search and media properties “like News, Finance, Entertainment, and Sports will include real-time public Twitter updates across a variety of topics.”

Yahoo sources said the company would be striking similar deals with other social networking sites, and MySpace and LinkedIn are likely candidates for the next two spots on Yahoo’s social monument.

This kind of search and presentation improvement is key, of course, as Yahoo must present a more innovative palette of tools to consumers as Microsoft (MSFT) takes over its search technology and others offer users an increasing number of features.

Without naming Google Buzz, Jim Stoneham, Yahoo’s VP of Communities, said he thinks it is the best course at this point in the game, in which Facebook and Twitter have run far ahead with the social ball and do not show any signs of slowing down quite yet.

“I don’t think yet another social network, no matter how you try to force it on consumers, is what people want,” said Stoneham, in a not-so-veiled slap at Google Buzz. “So, Yahoo will obviously not be doing another social network.”

That’s the best news I have heard in a long time from Yahoo. Now, let’s see if it can turn not making something into, well, something.

Yahoo Dramatically Expands Twitter Relationship in Next Stage of "Project Rushmore" (Complete With Cutesy Bird Puns)

Kara Swisher — Wed, 24 Feb 2010 01:42:50 +0000

Yahoo announced tonight that it is dramatically expanding its relationship with Twitter, integrating it broadly through its Web site, much in the same way it did recently with Facebook.

In December, Yahoo (YHOO) announced that it would integrate Facebook Connect with its many properties–from its powerful media sites to its Flickr photo service to its email.

While the Internet giant once had grand plans to socialize itself, it seems that task is being outsourced to more successful and innovative companies in the social networking space, part of a massive integration of them across the giant Internet portal, in an effort dubbed internally as “Project Rushmore.”

So, as it previously indicated, Yahoo is now moving beyond Facebook, weaving Twitter’s real-time feed throughout the service in a variety of ways.

Under terms of the deal, users can access the microblogging service’s data stream while on Yahoo, make status updates and share Yahoo content.

In addition, Yahoo said that search and media properties “like News, Finance, Entertainment, and Sports will include real-time public Twitter updates across a variety of topics.”

Yahoo once again declined to comment on whether and when the service would be striking similar deals with other social networking sites.

But sources told me that MySpace and LinkedIn are likely candidates for the next two spots on Yahoo’s social monument.

That would, of course, account for the four presidential stone faces on Mount Rushmore–George Washington, Teddy Roosevelt, Thomas Jefferson and Abraham Lincoln.

No money was exchanged in the five-year deal with Facebook; nor was there any other financial or advertising element. Yahoo declined to give such details about the Twitter deal, but some sort of payment seems likely.

Whatever the case, other big Internet companies are getting into the social act.

Separately, both software behemoth Microsoft (MSFT) and search giant Google (GOOG) recently struck a data-mining deal with Twitter, and Microsoft did so with Facebook.

Yahoo’s deals are broader, because such an overall move by the company is an important and necessary one.

It is also very late in coming, since Yahoo nearly completely missed the social networking train and needs to figure out how to be part of it in a way that is useful to users, as well as open.

Here is the full press release from Yahoo, with more bird puns than BoomTown can stand (Sheila, I give):

@yahoo + @twitter Sitting in a Tree…T.W.E.E.T.I.N.G.

Yahoo! gives ‘em something to tweet about, partnering with Twitter to integrate content and social experiences from across the Web

SUNNYVALE, Calif., Feb. 23, 2010–As part of its ongoing commitment to be the center of people’s online lives, Yahoo Inc. (NASDAQ:YHOO) today announced a global partnership with Twitter to integrate Twitter’s real-time social experiences with more than 600 million people in Yahoo!’s global network. The integration is part of Yahoo!’s commitment to provide personally relevant information to people, from sources across the Web.

A little bird told me: @yahoo is the place to tweet and be tweeted

This partnership includes three primary elements:

1) People will be able to access their personal Twitter feeds across Yahoo!’s many products and properties, including the homepage, Yahoo! Mail, Yahoo! Sports, and others, letting them check in more easily on what’s happening with the people and things they care about while on Yahoo!.

2) People will be able to update their Twitter status and share content from Yahoo! in their Twitter stream, so they can easily share their Yahoo! experiences with their friends and followers on Twitter.

3) Yahoo! Search and Yahoo! media properties like News, Finance, Entertainment, and Sports will include real-time public Twitter updates across a variety of topics. Yahoo! Search users will immediately see real-time Twitter results today; go to Yahoo! and try it out.

Tweet and shout: @yahoo pumps up the social volume

Today’s Twitter partnership, along with Yahoo!’s recently announced Facebook relationship, will transform Yahoo! into a highly customizable social experience that lets people bring together and unify their activity from their many social experiences across the Web. Because of these connections, anyone with a Yahoo! ID can update multiple social networks simultaneously and stay in touch with the people and information that matter most at every moment of the day.

“Let me try to capture the enormity of this integration in 140 characters or less: We’re turning the key to the online social universe–you will find the most personally relevant experiences through Yahoo!,” said Bryan Lamkin, senior vice president, consumer products group, Yahoo!. “We’re also simplifying people’s lives by bringing their social worlds–and the world–together for easy access.”

Add an exclamation point to your tweets

The Twitter integration also provides full access to the complete Twitter public data stream, which Yahoo! will use to improve the relevance and freshness of content across Yahoo! properties. This will drive deeper user engagement, and create new and compelling opportunities for developers, advertisers, and publishers.

“The information in one single tweet can travel light-years farther with this Yahoo! integration,” said Twitter cofounder Biz Stone. “Tweets in more places brings relevance where and when you need it most.”

The real-time Search integration is available immediately. Other parts of the integration are expected to launch later this year.

News Corp.: Conan's Not Coming to Fox Just Yet; Amazon's Ready to Bend on E-Book Pricing

Peter Kafka — Tue, 02 Feb 2010 22:41:33 +0000

Two interesting nuggets from a wide-ranging earnings call today:

News Corp. CEO Rupert Murdoch tried to lower expectations that his Fox broadcast network would hire Conan O’Brien.
Murdoch hinted that his book publishing unit is in line to get a new deal on e-books from Amazon, just as Macmillan has demanded (as will other publishers).

On the second point, here’s my on-the-fly transcription and paraphrasing of Murdoch’s comments about Amazon (AMZN), Apple (AAPL) and e-book pricing. It’s one of the most candid descriptions you’ll hear from a top executive about Big Media’s reluctance to embrace digital distribution at the expense of its existing system and revenue:

“We don’t like the Amazon model of $9.99….We think it really devalues books and hurts all the retailers of hardcover books. We’re not against electronic books; on the contrary, we like them very much” because they cost us less to distribute, “but we want some room to maneuver.” The Apple deal…“does allow some flexibility and higher prices” though e-books will still be lower than print versions. And now Amazon is willing to sit down with us again and renegotiate.

UPDATE: Here’s a more complete transcript from Seeking Alpha:

We don’t like the Amazon model of selling everything at $9.99. They don’t pay us that. They pay us the full wholesale price of $14 or whatever we charge. We think it really devalues books and it hurts all the retailers of the hard cover books. We are not against [inaudible] books. On the contrary we like them very much indeed. It is low cost to us and so on. But we want some room to maneuver in it. Amazon, sorry Apple in its agreement with us which has not been disclosed in detail does allow for a variety of slightly higher prices.

There will be prices very much less than the printed copies of books but still will not be fixed in a way that Amazon has been doing it. It appears that Amazon is now ready to sit down with us again and renegotiate pricing.

Again, it’s impossible to stress how scarring the music labels’ experience has been for Big Media. And they’re determined not to repeat the experience. Their takeaway, though, seems to be that they can stave off digital distribution by keeping prices high and inventory relatively scarce. Hard to believe consumers are going to go for that.

Earlier

A first glimpse at News Corp.’s fourth-quarter earnings (which, due to the company’s weird fiscal calendar, is technically the company’s Q2 for 2010): Pretty good. And much better than a year ago (thankfully). After factoring out one-time charges, the company posted earnings of 25 cents on revenue of $8.7 billion.

The Street was looking for earnings of 20 cents on revenue of $8.23 billion, and analysts were also hoping the company would boost its earnings forecast, due in part to a bump from the ginormous success of “Avatar.” No word on guidance in the earnings release, though.

I’ll pick through the release for other worthwhile nuggets for the next few minutes. And then the real show begins at 4:30 Eastern, when the company’s earnings call–easily the most entertaining one in its peer group due to the censor-free presence of CEO Rupert Murdoch–begins. We’ll be looking for commentary on his battle/negotiation with Google (GOOG), upcoming content deals with Apple and the iPad, his thoughts on paid content in general, a dash of political commentary or two, and an update on the turnaround effort at MySpace.

From the release: A pretty nice quarter at most of the conglomerate’s divisions, including the previously battered broadcast TV and newspaper groups. News Corp. says print revenue at The Wall Street Journal was up five percent and ads on the Journal’s digital network were up 17 percent.

MySpace and the company’s other digital properties, shuffled into the “other” category, don’t get much of a mention, but don’t seem to have done much, not surprisingly.

But News Corp does mention that digital media earnings were down $32 million compared with a year ago, “principally due to lower search and advertising revenue.” And the company lost $29 million on “digital media dispositions”–i.e., the fire sale/giveaways of properties like Rotten Tomatoes and Photobucket.

Here’s the breakdown by segment (click table to enlarge):

Liveblog

CFO Dave DeVoe: “Extremely pleased” with the quarter.

Movies: Revenue up due to decent DVD sales (no MGM problem here). Also high costs due to “Avatar,” but big profits from the movie will be coming in during the next couple quarters.

Broadcast TV: Local ads are improving; the telecom, fast food, finance categories are all improving.

Cable: Revenue is up 18 percent. Affiliate revenue is up 21 percent (more money for Fox News subs), and there was a “single-digit” boost in ad dollars.

Newspapers: Journal dollars are up, operating costs down. Ad revenue got better as the quarter progressed.

Books: Revenue up, expenses down.

“Other”/MySpace: Digital media revenue down, but cost-cutting helped trim losses.

News Corp. is boosting its dividend by 25 percent.

Guidance: The company’s operating income growth rate is expected to grow from single digits to the high teens. Better than anticipated: Film group, TV and cable. But revenue goals for digital media, including MySpace, will take longer than anticipated.

Murdoch sings the praises of content. [I will not argue with him, for now]. “Avatar” is awesome, he says, a “harbinger of fundamental change in the industry.” Also really good: “Alvin and the Chipmunks.” Fun to hear Rupe say “Alvin and the Chipmunks.”

WSJ is the No.1 paper in U.S. in terms of circulation, influence, quality. WSJ.com is a “digital model for newspapers around the world.”

Fox News Channel’s audience is both “loyal and lucrative.” Roger Ailes is doing an “admirable job” [translation: Bite me, Michael Wolff--the author of a recent Murdoch biography].

Last year, Murdoch says, News Corp.’s pay-to-play ideas sounded nutty, but now “the content clan has gathered around our ideas.” Consumers must pay and will pay “to be entertained and informed.” All those awesome new gadgets being made in China and sold at the Consumer Electronics Show need content or they’re worthless. Content, content, content. Get it? Content, content, content.

Murdoch says he’ll be wringing more dollars from cable operators. And “when it comes to online news, we’ll be changing that model too,” adding that News Corp. is in “substantive conversations with device makers on developing subscription models” to deliver content. And don’t forget about 3-D!

Not performing well but “long-term growth drivers”: Sky Italia satellite service. Also Sky Deutschland. And MySpace is “not yet where we want it.” In the last quarter, however, MySpace “started to see signs of traffic stabilization.”

Shout-outs for Chase Carey and other managers (but not by name).

Q&A

Question: How big a deal is retransmission consent in coming years? $40 million a month? $100 million a month?

Chase Carey: No numbers, but it’s going to be a “transforming event.” We have two of top 10 distributors done, more coming. It’s a three- or four-year process to knock these deals out.

Q: Does this fix the broadcast model?

Carey: “Yes, I guess you could say simplistically, it fixes it.”

Q: What’s the timing on an “Avatar” DVD, and what about a sequel? Also, how do TV ads look this year?

Murdoch: For “Avatar,” we think about 60 percent of profits will be in the next six months. Which means the DVD will be coming “as soon as possible,” but the movie will stay in cinemas for a while because we’re doing huge dollars in theaters still. Sequel? “Very early talks about it. Jim has ideas for one. We haven’t come to any agreement with him….Being Jim Cameron, I wouldn’t hold your breath for an early one.” Asked about the economics of a future release (“Will you keep the same revenue split?”), Rupe sort of rumbles and growls and sort of doesn’t have much to say. “Ask anybody; it is very easy to drop a $100 million in a hurry on a film, and we’d like to lay off some of the risk.”

Carey: TV trends for this year are “positive.”

Murdoch: TV stations will be up 18 or 19 percent, but last year was terrible. We’re still down compared with two years ago. Hard to see more than a quarter in advance. In newspapers, it’s hard to see more than a few weeks.

[Missed a question on Sky Italia here.]

Q: What are growth prospects for cable networks? They’ve been driven a lot recently by new subscriber fees. How much longer can you get those boosts?

Murdoch: Overall, “we think we have great potential for growth. Quite a long way to go yet.” Look at how NBCU’s USA is growing.

Carey: In the U.S., we’re moving to “quality over quantity”–we can wring more out of foreign exchange, etc. Fox News is only getting more powerful; it has “great upside.”

Q: Regarding newspapers, what growth came from organic increase versus currency fluctuations?

The majority is from foreign exchange.

Q: Does your guidance assume that the “Avatar” DVD is coming in the next two quarters?

Murdoch: “Yes, but it won’t be 3-D” [which I don't think the analyst was asking about].

Q: Back to retransmission consent: You’ve been getting more and more money from cable guys. Why can’t you get $4 or $5 per subscription for Fox broadcast subs?

Murdoch: “We’re modest people.”

Carey: Hyuk, hyuk. Real answer: It takes time. “We try to approach this constructively. We’ve built businesses with [cable guys], we’ve built valuable cable channels” [translation: patience!]. We want to extract more without killing the cable guys.

Murdoch: That said, we’re asking for the same thing [for broadcast channels] that the cable networks are getting, which “certainly won’t kill the cable companies.”

Q: Please talk about value of film libraries (i.e., MGM). They’re generating big operating profits for cable now. How long will this last?

Murdoch: Regarding the MGM auction, “you can count us out of that one altogether” because others will pay more than we’re willing. And we’re not pursuing the Miramax catalog at all.

Carey: A film library by itself, without new stuff coming through, is a “depreciating asset.”

Q: On guidance: You say the ad market getting better, etc., but it sounds like you’re saying Ebidta growth is slowing.

Murdoch: “We honestly do not have any visibility about the last quarter.”

Q: On books/e-books/Apple, what’s going on with that?

Murdoch: We don’t like the Amazon model of $9.99….We think it really devalues books and hurts all the retailers of hardcover books. We’re not against electronic books; on the contrary, we like them very much, lower costs to us, but we want some room to maneuver. The Apple deal does allow “some flexibility and higher prices” though e-books will still be lower than print. And now Amazon is willing to sit down with us again.

Press Q&A

Q: What’s up with plans to charge for newspapers on the Web?

Murdoch: “Not ready to announce yet [long pause]. We won’t be ready yet to make an announcement.” A “lot of talks with a lot of people.” There will be more to say within the next two months, Murdoch adds.

Q: Are you still going to fall $100 million short on the Google deal?

Murdoch: Yes. People using social networks don’t use search a great deal. Facebook has seen this, too. It’s “really too early to make confident predictions…but from going down, we’re beginning to go up.”

Q: Can we get some details about Time Warner Cable (TWC) deal?

Nope.

What about Conan O’Brien on late night?

Murdoch: If the programming people can show us we can do it and make a profit on it, we’ll do it in a flash. I’m sure there have been conversations with Conan, but “if you mean real negotiations, no.”

[Missed two questions here.]

Q: Another late-night question: If you do go into negotiations with Conan, how do you placate your affiliates?

Murdoch: It’s a different deal than NBC. They screwed up 10 pm, which reduced the lead-in to local news. Our affiliates run syndicated programming at 11:30, though, so it will take time to adjust there.

Call ended. This one seemed short to me.

More or less redundant disclosure: News Corp. (NWS) owns this Web site.

Yahoo Mobile Head David Ko Takes Over Audience Job Too (But Mobile Product Development Moves Under Balogh)

Kara Swisher — Mon, 30 Nov 2009 08:13:41 +0000

David Ko (pictured here), head of Yahoo’s mobile division, has added the Internet giant’s vast media properties in the U.S. to his portfolio, according to several sources.

BoomTown recently reported that Ko was the likely person to take over as North American Audience head at Yahoo (YHOO), reporting to U.S. EVP Hilary Schneider.

With purview over programming and more for the main Yahoo media properties, such as News and Finance, he fills a slot left by the departure of Jeff Dossett in May.

Since then, the key Yahoo content division has been run jointly by Jimmy Pitaro, who heads Vertical Audience Experiences for Yahoo, and Tim Mayer, who is in charge of Search & Social Applications, as well as the powerful homepage of Yahoo. Both now report to Ko, who joined Yahoo in 2000, sources said.

But, in a related move, product development for mobile has moved from under Ko to CTO and EVP of Products Ari Balogh.

A similar move of Yahoo’s media properties took place earlier this year, shifting key tech development responsibility to a global product organization at Yahoo’s HQ in Sunnyvale, Calif.

Previously, as had been the case in mobile, such development had been mostly carried out by individual media properties.

The argument for the shift posits that centralizing product development of Yahoo offerings drives efficiencies, saves money, eliminates redundancies and accelerates growth around the world.

Those who do not like the idea think it is wrong to separate the development of a product from programming because the two are intricately dependent and need to be tweaked delicately.

But, said one source, mobile has been deemed by CEO Carol Bartz as “part of the core” at Yahoo instead of more an experimental offering as it has been viewed internally.

Thus, mobile apparently needs to be closely aligned to all product development going forward.

Ironically, one of Yahoo’s more high-profile mobile efforts, its Yahoo Go mobile software application and portal, which was launched to much fanfare at the Consumer Electronics Show in Las Vegas almost four years ago, will be shuttered Jan. 12, 2010.

Now, under Ko, Yahoo’s mobile efforts have been centered around building apps for smartphones, although that market has become increasingly dominated by players such as Apple (AAPL) with its iPhone, Google (GOOG) and its Android effort and many others.

Google also just bought an innovative mobile advertising company, AdMob, which gives it a headstart in this nascent arena.

Without its own device and a dominating strategy, Yahoo must use its Web heft to push its content into the mobile space.

Presumably, that is the thinking behind giving Yahoo’s mobile and media properties the same boss.

Ko, who has worked in a variety of areas at Yahoo, took over as SVP of Yahoo Mobile after Marco Boerries left in late February as EVP of the Connected Device Division, which now does not exist under that name.

He had run Yahoo’s mobile business in the Asia Pacific region.

According to Ko’s Yahoo bio, he previously worked at Salomon Smith Barney as a senior associate and analyst. He is a graduate of New York University’s Stern School of Business.

Ko, who lives in San Francisco with his family, the bio notes, inexplicably “enjoys reading tech blogs.”

Well, then, Dave, we hope you have enjoyed this post!

Microsoft CFO Liddell Departs (Kiwi-Lovers Mourn); Klein Becomes New Numbers Dude

Kara Swisher — Tue, 24 Nov 2009 22:15:40 +0000

Microsoft CFO Chris Liddell (pictured here) is leaving the software giant at the end of the year and will be replaced by longtime Microsoft finance exec Peter Klein.

A Microsoft (MSFT) spokesman said Liddell wants to pursue jobs beyond his finance role outside the company.

Liddell, 51, arrived at Microsoft in 2005 and many of his years at the company have been tough ones financially due to the weak economy. It was up to Liddell to deliver the bad news at quarterly earnings calls.

Still, BoomTown always enjoyed his adorkable New Zealand accent, even when he was talking econalypse 24/7, as well as about layoffs and cost cutting.

One post from last spring, for example, was titled: “Glum Chris at the Recessiondome.”

Klein (pictured here), 47, has been at Microsoft since early 2002 and currently serves as CFO of its Business Division, which is one of the company’s largest units.

Here is the official press release:

For Release 2 p.m. PST

Nov. 24, 2009

Microsoft Announces Chief Financial Officer Transition

Chris Liddell to leave Microsoft Dec. 31; Peter Klein assuming CFO role.

REDMOND, Wash.–Nov. 24, 2009–Microsoft Corp. today announced that Chris Liddell will be leaving the company at the end of 2009, and named Peter Klein as the company’s new chief financial officer.

“Chris and his finance team have accomplished a great deal over the past four and a half years. The team is deep and strong, and has an excellent record of building value for our shareholders,” said Steve Ballmer, Microsoft chief executive officer. “Peter brings great finance and operations expertise and a deep understanding of the company, and I am looking forward to a smooth transition that continues our commitment to cost containment and finance excellence.”

In the past fiscal year, Microsoft reduced costs by $3 billion compared with its original plan, and returned $14 billion to shareholders through dividends and stock buy-back.

Klein, 47, joined Microsoft in February 2002 and currently serves as CFO of Microsoft’s Business Division, overseeing all financial strategy, management and reporting for the $18.9 billion business with 7,800 full-time employees. Previously, Klein served three years as CFO of Microsoft’s Server and Tools Business.

“My time at Microsoft has been an outstanding experience, and I am delighted to be leaving the company in such great shape,” Liddell said. “We have built a world-class finance team and established strong internal accountability. Microsoft is coming out of the economic downturn with not only great product momentum but also strong discipline around costs and a focus on driving shareholder value.”

Liddell, 51, joined Microsoft in May 2005 after serving as CFO at International Paper Co., and chief executive officer of Carter Holt Harvey Ltd., then New Zealand’s second-largest listed company. He said he is looking at a number of opportunities that will expand his career beyond being a CFO.

Liddell will continue at Microsoft working closely with Klein through Dec. 31, to ensure a smooth transition.

Before joining Microsoft, Klein spent 13 years in corporate finance, primarily in the communications and technology sectors: McCaw Cellular Communications; Orca Bay Capital, a private equity firm; and several startups, including HomeGrocer.com, where as vice president and treasurer he helped lead an IPO and subsequent acquisition by Webvan.

“I’m honored to take on the role of Microsoft CFO. I’ve learned a lot working with Chris, and I’m excited about the opportunities ahead for Microsoft,” said Klein. “We have an incredible pipeline of products, we have strong financial and operational accountability, and we are well-positioned for growth as the economy recovers.”

Klein holds a bachelor’s degree from Yale University and an MBA from the University of Washington. Outside of work, he is an avid sports fan and serves on the board of NPower Seattle, a nonprofit organization dedicated to enhancing the effectiveness of nonprofit service providers through technology. He and his wife have two sons.

Using Online Tools to Save Time During the Search

Jon Gray — Fri, 06 Nov 2009 18:07:41 +0000

Jon Gray was manager of planning and analysis at Xsigo Systems, a San Jose-based technology start-up. He was laid off in November 2008, after almost two years with the company. Previously, Mr. Gray, 34, spent seven years in various finance roles at Symantec Corp. (SYMC), a security software maker. He lives in Los Gatos, Calif.

My productivity lapses don’t come from Facebook. My problem is a combination of world news sites and Twitter. Using RescueTime, an online time management tool, I’ve named two productivity goals for myself. One goal sets my unproductive time at less than 90 minutes per day. The other sets my highly productive time at greater than five hours per day. After setting up these goals, I’ve been able to monitor what applications I use, what internet sites I visit, and the exact duration of both. It quickly becomes painfully clear how easily I can become distracted and miss these goals. As I only report to myself, this tool is obviously self-policing, but it has been extremely useful to see when I’m not being as focused as I need to be. For example, I’ve adjusted my morning time with a cup of coffee and reading the news from 45 minutes down to about 15.

Read the rest of this post on the original site

Exclusive: Microsoft's MSN Is in Early Talks With MySpace About Music Tie-Up

Kara Swisher — Tue, 27 Oct 2009 10:34:47 +0000

Microsoft’s MSN is in preliminary talks with MySpace about using the social networking site’s music service, MySpace Music, to help power music offerings on the giant portal.

While sources at both companies cautioned that the talks are still early, Microsoft (MSFT)–which has its own music site that it programs with original and partnered content–execs are interested in goosing it.

That’s because MSN Music consistently ranks substantially lower than other big online music properties in terms of traffic, while MySpace Music is always near the top.

Sources said Microsoft execs don’t think they can do as good a job as MySpace is doing and don’t see the point in striking needed but complex deals with music labels, which the News Corp. (NWS) property already has.

In an April report by comScore (SCOR), for example, MySpace Music was No. 2, just behind AOL Music, with 27.4 million unique monthly visitors. MSN Music was No. 6 with just 7.4 million.

Nonetheless, music is an area MSN cannot lag so badly in, given that entertainment is one of the key categories it is focusing on as it preps for a major renovation of the portal.

As BoomTown wrote in mid-July about a wide variety of changes coming to MSN:

MSN, Microsoft’s online portal, is also preparing a major redo of what U.S. and, possibly, international consumers will see, as it doubles down on five key content verticals, while cutting back on others.

In a new focus that will start to be apparent in the next month, MSN will heavily add to its News, Sports, Finance, Lifestyle and Entertainment offerings, weaving more data from [its search service] Bing into the mix.

“It’s a decision to make it so MSN does less better,” said one source close to the situation. “So there will be a focus of attention on a smaller number of categories in which we can be either #1 or #2 in, rather than #4 or #5.”

It is not clear exactly what the financial terms would be in any tie-up between MSN and MySpace, which could include licensing of content and other services related to music.

But such a deal is not unusual–MSN’s sports site is powered by Fox Sports, which is another News Corp. property.

And such a partnership would also key into concepts that MySpace CEO Owen Van Natta outlined in a recent interview onstage at the Web 2.0 conference.

Key among them was boosting music and entertainment overall and making them the prime focus in the site’s efforts at reinvigorating itself, as well as expanding distribution of MySpace.

In fact, MySpace recently bought social music service iLike to expand its distribution all over the Web, for example–including on Facebook, the longtime social networking rival from which MySpace is now trying mightily to differentiate itself.

In his appearance, Van Natta also unveiled a music video hub, the ability by users to buy music using Apple (AAPL) iTunes, and a set of better analytical tools–called MySpace Music Artist Dashboard–to help artists figure out how to best work with fans.

But MySpace needs more than these, and a link with Microsoft would provide it with a traffic gusher, since MSN’s main page remains one of the most trafficked sites on the Web.

If such a distribution partnership were struck, it would also raise the question of what will happen regarding MySpace’s negotiations with Google (GOOG) over renewal of their search deal, which expires next summer.

Dissatisfaction over the pricey three-year deal has been expressed by both sides; their mutual grumbling is one of the biggest open secrets in Silicon Valley.

Doing a search deal with Bing is the obvious and only alternative, although few expect any agreement to be as rich as the one MySpace did with Google in 2006 for $900 million.

Interestingly, it was recently reported that both Google and Facebook were bolstering music search and sales offerings, and Google’s apparently includes the use of the iLike player.

In other words: This could get really complicated.

Execs at both MySpace and Microsoft I reached out to declined to comment.

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