Said Google’s Dan Loeb, “We are looking forward to working with Labpixies to develop great web apps and leverage their knowledge and expertise to help developers and improve the ecosystem overall.”

Terms of the deal weren’t disclosed, though Israeli financial news site TheMarker pegs LabPixies’ purchase price at about $25 million.

Here’s the Flixster/MySpace deal Kara Swisher sussed out on Christmas Eve: News Corp. is handing over its Rotten Tomatoes movie review site, previously owned by its IGN unit, to the movie-centric social network and will get an equity stake in the combined company.

MySpace COO Michael Jones approves, which is good, since the Flixster/Rotten Tomatoes combo is supposed to link directly into MySpace.

This is part of News Corp.’s (NWS) turnaround/shape-up strategy for MySpace and the rest of its digital portfolio, which looked very valuable just a few years ago and is now in need of an overhaul. The media company is shedding noncore assets while trying to turn MySpace into a hub for entertainment that you share with your pals. Expect to see more announcements and product rollouts in the coming weeks.

From Swisher’s 12/24 story:

Several sources noted that this deal being contemplated is typical of the overall strategy at News Corp., which has been targeting digital units that are not an obvious fit inside the company any longer for sale or other disposition.

In fact, the deal is not unlike one News Corp. did recently, flipping photo-sharing Photobucket into mobile photo service Ontela, with the media giant holding a large equity position in the the new entity.

The possibility of linking MySpace and the combined social movie site is interesting and yet another signal of one of the new strategies of MySpace: “Playing on other platforms,” as one source described it.

For example, MySpace recently announced it was adding its data stream to real-time search results on Google (GOOG).

And, it seems dead obvious that MySpace is likely to adopt Facebook Connect sooner than later, perhaps beginning with a smaller implementation early next year.

Disclosure: News Corp. owns this Web site.

Here’s the official press release:

Flixster Inc. Acquires Rotten Tomatoes
From IGN Entertainment

Combination of Top Brands Creates a Leader in the? Online Movie Space, Reaching 30 Million Monthly Moviegoers; IGN to Receive Equity Stake in Flixster

SAN FRANCISCO (January 4, 2010)–Flixster Inc., producer of the world’s largest online movie community at www.Flixster.com, today announced that it has acquired Rotten Tomatoes from IGN Entertainment. IGN, a division of News Corporation, will receive a minority equity stake in Flixster as part of the acquisition. Financial terms of the transaction were not disclosed.

The combination of Flixster and Rotten Tomatoes reaches a huge global movie audience of an estimated 30 million monthly visitors worldwide across multiple platforms: on the Internet, through web-based social networks, and via mobile apps for the iPhone, Blackberry and Android devices.

Both Flixster and Rotten Tomatoes will continue to be available to movie fans as individual properties. Together, Flixster and Rotten Tomatoes give movie audiences an unprecedented total picture of movie trends and opinions, combining half a million reviews from leading critics with 2.3 billion user ratings and reviews.

“To use movie terminology, we think this is a blockbuster double-bill,” said Joe Greenstein, co-founder and CEO of Flixster. “It’s a huge step forward in our goal of connecting users to their own personalized world of movies on any platform they choose. We can’t think of a better pairing for movie fans and our technology partners.”

Flixster’s president and COO Steve Polsky added, “Rotten Tomatoes has built a fantastically well-known brand that moviegoers trust when making their decisions. Combined with Flixster’s social networking and word-of-mouth, we’re creating the leading movie destination on the Internet.”

“Joining Rotten Tomatoes with Flixster creates a company that can dominate the online movie category,” said Roy Bahat, president of IGN Entertainment, who will join Flixster’s board of directors as an observer. “This also enables IGN to focus on serving the male 18-to-34 audience–especially videogamers–and the advertisers looking to reach them.”

Flixster already operates the leading embedded movie applications on Facebook, MySpace, Bebo, iGoogle, and for the iPhone, Android devices, Blackberry and Palm Pre. Together, Flixster and Rotten Tomatoes will be the most comprehensive, one-stop movie-information provider for both end users and technology partners, including: a database of more than 250,000 movies; 2.3 billion user reviews; 500,000 critic reviews; more than 20,000 trailers and videos; the well-known Tomatometer™ and Flixster Scores; unique movie news and editorial content; category-leading social-networking features; localized movie showtime information; theater maps; and online ticketing.

Prior to the acquisition, Flixster and Rotten Tomatoes partnered in several areas, including a recent deal that syndicates critic reviews from Rotten Tomatoes to Flixster’s online movie community, both on the Web and via Flixster’s mobile apps.

Since its inception in early 2006, Flixster has rapidly become the Web’s largest community for movie fans, with more than 20 million monthly users.

As the web’s leading aggregator of reviews from top movie critics, Rotten Tomatoes offers the most comprehensive guide to movies, and its Tomatometer™ rating-based on the published opinions of hundreds of film critics–is a trusted measurement of movie quality for millions of moviegoers. The site has also seen tremendous year-over year growth, with its monthly unique user base rising on average nearly 40 percent in each of the past five months compared to the same months in 2008.

The deal follows a series of moves by IGN Entertainment to refocus its efforts on building out its suite of game-related and men’s-lifestyle offerings. The company recently launched Game On, a videogames-dedicated portal on MSN, and its network of sites currently reaches the most concentrated audience of males 18 to 34 and technology influencers on the Web today.

Google CEO Eric Schmidt did one of his patented throat-clearers in an opinion piece in The Wall Street Journal today and it pretty much begs for translation.

Well, BoomTown shall not tarry from the task of decoding the extra-long rumination from the head of Google (GOOG), who was responding to the recent spate of aggressive attacks by traditional media publishers.

They have blamed the search giant for everything from their current business woes to the destruction of journalism to Tiger Woods’s dicey marital troubles.

Okay, not that! But the rest for sure.

First and foremost among the attackers has been Rupert Murdoch, CEO and ruler-of-all-he-surveys at News Corp. (NWS), which owns The Wall Street Journal and this Web site.

How ironic, yet still typically cozy from a corporate bigwig point of view! I call you a cur in public, but please use my newspaper so that I can get some decent traffic from this wrestling match.

But all is not what it seems in the Schmidt piece, of course, so here’s the translation:

What Schmidt wrote: How Google Can Help Newspapers

By ERIC SCHMIDT

Translation: We come in peace, always. You know, like the freakily calm lady from “V,” who is really a lizard under all that pretty and is actually secretly trying to decide between grilling and broiling all you whiny news people.

Also, you can address me in the future as Emperor Palpatine.

What Schmidt wrote: It’s the year 2015. The compact device in my hand delivers me the world, one news story at a time. I flip through my favorite papers and magazines, the images as crisp as in print, without a maddening wait for each page to load.

Some of these stories are part of a monthly subscription package. Some, where the free preview sucks me in, cost a few pennies billed to my account. Others are available at no charge, paid for by advertising. But these ads are not static pitches for products I’d never use. Like the news I am reading, the ads are tailored just for me. Advertisers are willing to shell out a lot of money for this targeting.

Translation: It’s the year 2015 in the United States of Google, where the new country colors are a festive green, blue, red and yellow.

As per the new Declaration of Googlependence, besides the tracking chip in your thighs, every citizen will be outfitted with a tablet running Chrome and looking suspiciously like a large iPhone, except that Apple (AAPL) was outlawed in the Fanboy Purge of 2010.

Every day, citizens will receive news specially aimed at them, such as “The Health Benefits of Sergey Worship.” Ads will also be tailored to citizens’ likes and dislikes, such as a pitch for Googley deodorant with the motto: “Search me, because I smell nice!”

Costs will be billed to your accounts at the National Bank of Google.

What Schmidt wrote: This is a long way from where we are today. The current technology–in this case the distinguished newspaper you are now reading–may be relatively old, but it is a model of simplicity and speed compared with the online news experience today. I can flip through pages much faster in the physical edition of the Journal than I can on the Web. And every time I return to a site, I am treated as a stranger.

So when I think about the current crisis in the print industry, this is where I begin–a traditional technology struggling to adapt to a new, disruptive world. It is a familiar story: It was the arrival of radio and television that started the decline of newspaper circulation. Afternoon newspapers were the first casualties. Then the advent of 24-hour news transformed what was in the morning papers literally into old news.

Translation: [Rachel: Please insert usual pap boilerplate here damning the newspaper business with faint praise. History of how change hurts, but is inevitable...blah, blah, blah. Please make sure to deliver a few digs too, like how--unlike Google--newspapers have no idea what their readers did last summer. Like we do. Cue evil Mwahahahaha laugh here.]

What Schmidt wrote: Now the Internet has broken down the entire news package with articles read individually, reached from a blog or search engine, and abandoned if there is no good reason to hang around once the story is finished. It’s what we have come to call internally the atomic unit of consumption.

Translation: “Atomic unit of consumption” is one of those terms we don’t expect you small-brained people to even begin to understand. Although you use only eight percent of your mental capacity, we here at Google use an average of 71 percent, tracking on our search share.

What Schmidt wrote: Painful as this is to newspapers and magazines, the pressures on their ad revenue from the Internet is causing even greater damage. The choice facing advertisers targeting consumers in San Francisco was once between an ad in the Chronicle or Examiner. Then came Craigslist, making it possible to get local classifieds for free, followed by Ebay and specialist Web sites. Now search engines like Google connect advertisers directly with consumers looking for what they sell.

Translation: I also don’t expect you Luddites will get this, but all your base are belong to us.

For those who need an older cultural reference, it is like the end of “Butch Cassidy and the Sundance Kid.” Um, as much as you Hollywood types like a happy ending, Butch and the Kid did not make it.

What Schmidt wrote: With dwindling revenue and diminished resources, frustrated newspaper executives are looking for someone to blame. Much of their anger is currently directed at Google, whom many executives view as getting all the benefit from the business relationship without giving much in return. The facts, I believe, suggest otherwise.

Google is a great source of promotion. We send online news publishers a billion clicks a month from Google News and more than three billion extra visits from our other services, such as Web Search and iGoogle. That is 100,000 opportunities a minute to win loyal readers and generate revenue–for free. In terms of copyright, another bone of contention, we only show a headline and a couple of lines from each story. If readers want to read on they have to click through to the newspaper’s Web site. (The exception are stories we host through a licensing agreement with news services.) And if they wish, publishers can remove their content from our search index, or from Google News.

Translation: Shut your overstuffed pie holes, you grumbling antiques. You were dying by the cell long before our superior technology arrived to save the day and help you out of your sorry mess.

Plus, we toss you all that traffic and you still manage to fumble our perfect pass like the pikers you are. (In truth, you are Charlie Brown and we are Lucy.)

Also, have you ever heard of “fair use”? It’s the law now and we can hire more lobbyists in Washington, D.C., than you with the bazillions and gamillions of dollars we make from all those tiny little blue links.

You do realize I have a key to the the White House and visit more times than Joe Biden?

What Eric wrote: The claim that we’re making big profits on the back of newspapers also misrepresents the reality. In search, we make our money primarily from advertisements for products. Someone types in digital camera and gets ads for digital cameras. A typical news search–for Afghanistan, say–may generate few if any ads. The revenue generated from the ads shown alongside news search queries is a tiny fraction of our search revenue.

Translation: Here’s an easy formula for you to grok: Michael Jackson+the pretty boy from “Twilight”+digital cameras=Big bucks for Google! Some thumbsucker you did on Afghanistan, however worthy and important for our nation’s future=14 cent CPM, but only if a drunken Lindsay Lohan story is in close proximity.

What Schmidt wrote: It’s understandable to look to find someone else to blame. But as Rupert Murdoch has said, it is complacency caused by past monopolies, not technology, that has been the real threat to the news industry.

Translation: [Rachel: Please insert Rupe quote that actually hangs him here.]

What Schmidt wrote: We recognize, however, that a crisis for news-gathering is not just a crisis for the newspaper industry. The flow of accurate information, diverse views and proper analysis is critical for a functioning democracy. We also acknowledge that it has been difficult for newspapers to make money from their online content. But just as there is no single cause of the industry’s current problems, there is no single solution. We want to work with publishers to help them build bigger audiences, better engage readers, and make more money.

Meeting that challenge will mean using technology to develop new ways to reach readers and keep them engaged for longer, as well as new ways to raise revenue combining free and paid access. I believe it also requires a change of tone in the debate, a recognition that we all have to work together to fulfill the promise of journalism in the digital age.

Translation: Really–we’re from Google and we’re here to help! Mwahahahahaha.

Seriously, you guys, please go back to demonizing Microsoft (MSFT) or those banker salaries or the health care bill.

While my gabillions of dollars are more than protecting me from the blows you are trying to land, I am not liking the hairy eyeballs I got at the Allen & Co. conference at Sun Valley last summer. I think Washington Post head Don Graham even short-sheeted my 600-thread count Frette bedding there.

What Schmidt wrote: Google is serious about playing its part. We are already testing, with more than three dozen major partners from the news industry, a service called Google Fast Flip. The theory–which seems to work in practice–is that if we make it easier to read articles, people will read more of them. Our news partners will receive the majority of the revenue generated by the display ads shown beside stories.

Translation: [Rachel: Please insert some kooky-named Google 20 percent project we have no intention of really going large on here, so they think we really are working on something to save them. Those media folks like Hail Mary tech solutions, even if they don't even know how to turn them on.]

What Schmidt wrote: Nor is there a choice, as some newspapers seem to think, between charging for access to their online content or keeping links to their articles in Google News and Google Search. They can do both.

Translation: You de-indexin’ me? You de-indexin’ me? You de-indexin’ me? Then who the hell else are you de-indexin’? You de-indexin’ me? Well I’m the only one here. Who the %*#! do you think you’re de-indexin’?”

What Schmidt wrote: This is a start. But together we can go much further toward that fantasy news gadget I outlined at the start. The acceleration in mobile phone sophistication and ownership offers tremendous potential. As more of these phones become connected to the Internet, they are becoming reading devices, delivering stories, business reviews and ads. These phones know where you are and can provide geographically relevant information. There will be more news, more comment, more opportunities for debate in the future, not less.

The best newspapers have always held up a mirror to their communities. Now they can offer a digital place for their readers to congregate and talk. And just as we have seen different models of payment for TV as choice has increased and new providers have become involved, I believe we will see the same with news. We could easily see free access for mass-market content funded from advertising alongside the equivalent of subscription and pay-for-view for material with a niche readership.

Translation: Smartphones are the answer! Sure! Your aging demo loves reading teeny-weeny writing on a device they want to throw against a wall.

Or maybe you can be like HBO! Except you’ll need more borderline porn and Mafia guys.

What Schmidt wrote: I certainly don’t believe that the Internet will mean the death of news. Through innovation and technology, it can endure with newfound profitability and vitality. Video didn’t kill the radio star. It created a whole new additional industry.

Translation: A census taker once tried to test me. I ate his liver with some fava beans and a nice chianti.

Google (GOOG) announced that “to kick off the summer season,” it has launched a new collection of nature themes for iGoogle, its personalized home page service.

“Google has collaborated with today’s leading nature-related organizations and some of the best nature photographers in the field who have all captured the essence of nature, through photography and artwork,” the company said in a blog post, “Today, we are sharing those stunning visuals of nature, animals and scenic landscapes with tens of millions of iGoogle users.”

Hmmm…a search engine with pretty pictures…hmmmm…where have I seen that before…hmmm…

Read the rest of this post on the original site

Late last night, Yahoo’s Tapan Bhat (pictured here) posted an update on the ongoing redesign of the Internet giant’s homepage, a massive undertaking given that 300 million people visit it each month.

Bhat, who is SVP of Yahoo’s Front Doors, Communities and Network Services, said the company was completing the first phase of its “bucket testing” and collecting feedback, but that, “Bottom line is we’re getting closer to the final design, but we’re not quite there yet.”

Indeed not, according to several sources at Yahoo (YHOO), who said that the massive underhaul of the homepage has been a much more complex, much dicier effort and was taking a lot longer than expected to launch.

(You can see examples of the redesign and also Bhat’s post last night on Yahoo’s corporate blog, Yodel Anecdotal, below.)

When the redesign–which is called “Metro” internally–was announced last September, Bhat said the changes would initially impact less than one percent of worldwide users in the United States, the United Kingdom, France and India.

But he also said they would then be rolled out to a wider and wider circle over the next six months. That has not happened, obviously.

Why? One key reason: Some results in limited testing showing actual declines in traffic, both from pointing outward more and also having people stay on the homepage with beefed-up “one-click” features.

The biggest issue is openness, which is aggressive in the new design, especially for Yahoo.

But it is a move pushed strongly by former CEO Jerry Yang. The idea is that Yahoo was a “starting point” for consumers was one of his key strategies.

That includes adding in lots of widget-like applications, or apps, onto the homepage from outside partners, and many more links to sites all over the Web.

“We’re pointing people off Yahoo and they are going,” said one exec about Yahoo’s first massive redesign since 2006. “While being open is a good thing, it also means less traffic inside Yahoo.”

Said another: “A lot of us want it to point more to great Yahoo services we offer instead of giving everyone else the benefit of our size.”

And the results so far, several sources said, have definitely caught the attention of new Yahoo CEO Carol Bartz, who some say might be considering slowing the wider rollout of the new homepage that insiders said was expected to be well on its way by spring.

Delay is, of course, common in massive projects like this, especially in this case, since the Yahoo homepage is a powerful “firehose” all over Yahoo and the Web.

When I contacted Bhat earlier this week to ask about the status of the homepage redesign, he would not comment about when it would roll out widely or about results of the testing, or give me access to the redesigned pages.

But he did kindly offer to walk me through the progress so far, next week at Yahoo HQ in Sunnyvale.

Then an update from Bhat suddenly appeared last night, in which he outlined that positive and negative feedback from that small number of Yahoo customers who have been using the new homepage.

Apparently, testers love the streamlined look and feel and the apps, and prefer the new page over the current one.

They also want even more apps, though, and think Yahoo should nix the darker color, as well as give easier access to mail and other services.

One assumes that is just a tiny bit of the feedback, especially given how dramatic the changes are.

In a post last fall when the redesign was announced by Bhat, I wrote that Yahoo was “employing a design that more significantly allows users to customize the starting page in a way that essentially amounts to a kind of My Yahoo-lite for everyone.”

That meant the ability to get to information and services more quickly, with links to outside email providers, initially from Google (GOOG) and Time Warner (TWX) online unit AOL.

The test design also includes a prominent left-hand vertical bar, with applications from both Yahoo properties and third-party services like eBay (EBAY), which are easy to add and remove.

Eventually, Bhat said at the time, there would be thousands of apps, from Yahoo and also from outside developers.

“People want broadcast and narrowcast at the same time,” said Bhat then. “They want choices, but they also don’t want to do the work involved [in programming their own homepage].”

Noting that it was not the dashboard approach of My Yahoo or iGoogle, Bhat added at the time: “People are time-starved…so it is important to the user to get to their relevant daily information as quickly as possible without having to click around.”

But, said several sources at Yahoo who have seen the Metro results so far, by giving them more options, especially outside ones, clicking around is precisely what users do.

More next week when I visit with Bhat…

Until then, here is a screenshot Bhat posted of the latest look for Metro last night, and below it are several screenshots of the initial Yahoo redesign, as well as Yahoo’s current homepage (click on the images to make them larger).

In addition, Bhat’s whole post last night about Metro’s progress is at the very bottom.

This is the latest iteration of the homepage redesign:

This is the homepage that was rolled out in September 2007:

This is a homepage rolled out in September 2007 that includes more outside apps:

This is the homepage rolled out in September 2007 that shows how email from Yahoo and Google and AOL would look:

This is a screenshot of Yahoo’s current home page:

And here is the full text of the Bhat post from last night, below.

Update on our new homepage testing

Tapan Bhat
Senior Vice President, Yahoo! Front Doors, Communities and Network Services

Yahoo will begin testing out versions of its new main homepage to a minuscule number of users starting tomorrow, employing a design that more significantly allows users to customize the starting page in a way that essentially amounts to a kind of My Yahoo-lite for everyone.

The redesign is a huge and complex endeavor. According to comScore’s July stats, Yahoo (YHOO) has about 82 million daily U.S. visitors to its homepages.

Most of those visitors use the Yahoo main homepage, which is fully programmed by the company.

Making such a shift will also be a big perceptual deal for Yahoo, which needs to prove it has remained current and open, especially compared to faster-growing rivals like Facebook.

Yahoo has been trying to reinvigorate itself of late, after a disastrous takeover battle with Microsoft (MSFT) and a weakening of its business and its stock price.

Because of all this, the Yahoo brand has also doubtlessly been tarnished.

Thus, making a success of its new design is critical, and Yahoo’s CEO Jerry Yang has been touting the idea that Yahoo must be the “starting point” to the Web for users.

To respond to users who want to access information and services more quickly, the new streamlined homepage will be much shorter, be made up of more “snippets” and have links to outside email providers (initially, Google and AOL).

Most importantly, the new homepage will prominently feature a left-hand vertical bar, which has applications from both Yahoo properties and third-party services like eBay.

These apps can be added and subtracted easily. Eventually, there will be thousands of apps, from Yahoo and, after vetting, from outside developers.

(See screenshots below comparing the old Yahoo with three of the new ones.)

The changes will initially impact less than one percent of worldwide users in the United States, the United Kingdom, France and India. But they will be rolled out to a wider and wider circle over the next six months.

“People want broadcast and narrowcast at the same time,” said Tapan Bhat (pictured here), Yahoo’s SVP of Front Doors, Communities and Network Services, in an interview with BoomTown. “They want choices, but they also don’t want to do the work involved [in programming their own homepage].”

Thus, Yahoo apparently is going to give users both in its first major redesign since 2006, which it has been working on for two years.

The major components of the page will still remain close to the old one, but jazzed up and shifted around.

For example. the apps will be moved into the position where Yahoo services links used to be, and vice versa.

As before, there will be a main information module at the center of the homepage, “pulse” and news area on the bottom-right and -left, and search and navigation at the very top.

Bhat said the changes were made after a lot of research of user behavior and also after paying attention to key trends such as the widgetization of applications and the trend toward openness.

The new look is not aimed at the hardcore user, who might want to endlessly tweak the Yahoo homepage, although those options will remain for those who prefer them.

But, Bhat said, more people wanted quick access to things like email without having to launch apps. Instead, users will be able to see it all on the main page.

“It is not a dashboard approach of My Yahoo or iGoogle,” he said. “People are time-starved … so it is important to the user to get to their relevant daily information as quickly as possible without having to click around.”

Bhat said the rollout tomorrow will not be final and that Yahoo will keep making changes, depending on reaction.

“We don’t want 300 million people opposed to change,” said Bhat, who wrote a blog post on the changes here. “So, we are going to be listening hard.”

Here are screenshots (click on images to make them larger):

This is the home page that will be rolled out tomorrow

This is a home page that includes more outside apps

This is the home page that shows how email from Yahoo and Google and AOL would look

This is Yahoo’s current home page, as of tonight

Starting Thursday, however, there will be a new online service that aims to change all that. The service, called SnagFilms, allows anyone with a blog, a Web site, or even a page on a social-networking site, to open a virtual movie theater and show these documentaries, free. The virtual theater is a small widget that contains the film, and that can be embedded easily and quickly in a wide variety of popular social-networking services and blog platforms. No technical knowledge is needed.