I am here at Yahoo HQ in Sunnyvale, Calif., to check out “Product Runway,” which is the Silicon Valley Internet giant’s attempt to show that it can still innovate.

First and foremost is the launch of Livestand, a personalized news reader that is similar to Flipboard and a variety of other rivals, including — soon — Google.

It’s Yahoo’s attempt to present a business-as-usual feel — amidst a long and agonizing and very public strategic overview that might also include the sale of the company (or not!), in the wake of the recent firing of its last CEO, Carol Bartz.

It has caused a lot of trauma inside Yahoo, which can’t help with innovation.

But we press on!

In other words, despite the three-ring circus going on outside, Yahoo wants you to know it is still hard at work.

We begin:

10:35 am: As the strains of U2 die out, Yahoo Chief Product Officer Blake Irving takes the stage, which is actually set up in the company’s cafeteria. I can smell lunch being made nearby and I am hungry.

Apt — Yahoo certainly needs to show off a lot of cool stuff or its fate will be cooked.

No pressure, Blake!

“Personally, I am more bullish on Yahoo today,” he said. “What is Yahoo? Simple. It’s the premier digital media company. Period. Stop.”

Oh, if it were only that easy.

10:46 am: Irving pulls out his favorite slide, which looks like a chemistry test. It lists the various elements of the product strategy, with things like personalization, mobile, premium.

Now to Livestand, which is available on the Apple iTunes app store right now.

Don’t all rush at once!

Irving notes that Livestand is more than just an app — it is a platform.

In other words, Yahoo wants to help publishers publish online. Kind of a Facebook of content.

If Yahoo can pull it off, that is. (And, of course, unless Facebook decides to do the same.)

10:50 am: Livestand is an HTML5 “personalized living magazine.”

“This is the way Web pages are going to look,” declares Irving. Which is to say, heavy on photos, swoopy navigation, a television screen-like interface.

Irving uses the example of Surfer magazine, which is a good idea since waves always look pretty. Especially in a video-in-frame with Kelly Slater in Hawaii.

But, in essence, for anyone who has used Flipboard for years now, none of this is entirely different.

10:54 am: The look of what would be the Yahoo News page is actually much more interesting, since it is clearly a whole lot better than the Web page.

Irving also shows off a “living ad” — in this case, an unusually snuggly couple on a couch. It is cool, but creepy.

When launched, the ad has tap points. Irving — naughtily declaring about what is an ad, “I’ll tap that” — taps the lady’s butt, which would also have been my move. We learn about the jeans, of course.

10:58 am: Irving then shows off the ability to add feeds.

Next, something called “Cocktails.” First up, a developer tool called Yahoo Mojito and Yahoo Manhattan, which is a hosting service. The company will open-source both the technologies in 2012.

Irving brings up Mike Kerns, VP of Personalization & Social, who came to Yahoo when it bought the innovative sports fan site called Citizen Sports.

“We like to ship sh#t,” he notes. I like Mike Kerns immediately.

Kerns intros C.O.R.E. No, it is not a secret government organization that takes out fussy bloggers, who might be more critical than Yahoo execs would like.

In fact, it stands for “content optimization relevance engine.” Of course it does.

Simply put, C.O.R.E. is trying to link the right content or whatever to the right consumers and who likes what. Ladies like this, dudes like this. Apparently, “men of multiple ages” enjoy stories about golden chicken.

11:11 am: Kerns is moving on to social, especially its integration with Facebook. While much touted, sources tell me it has gone slower than expected in terms of use, but that it is improving.

Kerns talks about the idea of matching content to conversations to interests and, well, you know — the now exhausting world of modern media consumption.

The world in which you can no longer simply read an article and enjoy it — you must comment, share, discuss, parse, tweet.

Does anyone remember when you read something cool and just kept it to yourself?

Forget it, pal! It is a full-information society now and you better get on board and start poking your friends about every little thing.

(Personally, I plan on becoming a hermit in 3 … 2 … 1.)

11:18 am: Now Tim Parsey, who is Yahoo’s design head. He is hands down the most delightful exec the company has had in a while, mostly because he loves to smirk adorkably.

He shows off Yahoo’s first original design, which was a dull list. And then another really bad logo. But Parsey loves it! It’s kitschy!

Smirk attack!

Parsey moves into what has to happen now, which is to deliver a much more emotional experience and a much better designed one. He uses words like “humanism.”

Say what? He is right — Yahoo has for too long completely ignored design as an important part of the experience.

That’s why Flipboard was so quickly touted — it was pretty and fun. And it is why everyone is simply forced to love Apple products.

11:22 am: Parsey even has a code for it, called REM — for rational, emotional and meaningful.

He shows off a weather app. People take photos and they can be used in the app. Then Yahoo Mail for the iPad, whic is also handsome with photos and video. Livestand, also pretty.

“Great way to differentiate,” says Parsey. He calls it “one Yahoo!” Indeed.

11:35 am: I’ll admit it. After Parsey-fest, I zoned out for a sec when IntoNow dude, Adam Cahan, comes up.

Donut emergency!

Back to IntoNow, it’s the television indexing service that Yahoo bought in April.

Essentially, more ways to watch the media — in this case, video — and do 53 other things at the very same time. Memo to humanity: We will all be paying continuous partial attention for the rest of eternity.

Like I said: Hermitage!

11:41 am: Product dude Irving is back, making a point that, despite all the public mishegas, Yahoo has been busy at innovating.

A redo of email, better search, social “Facebar” with Facebook, Flickr for Google Android.

Irving is correct — Yahoo’s engineers have been hard at work and deserve kudos for doing so, even with attrition issues, stock declines and questions about the company’s very future being debated daily.

The problem is that too many of these improvements are mostly incremental and essentially table stakes for tech companies, most of whom have introed many more significant innovations in the same time frame as Yahoo has.

Google did Android, Google+ (as well as some notable failures). Microsoft did Kinect, Windows Phone, Windows 8. Amazon did Kindle Fire. Facebook did a range of major updates, as it has grown like a weed.

And there’s Apple. You might have heard of the iPhone and the iPad.

You get my point. Yahoo’s Product Runway today is well done, but what it really needs to be is just the beginning of a take-off.

11:48 am: Now Q&A time.

The first question is what took so long to get Livestand out, the second is why should people use Livestand since Flipboard and others have already been around for a dog’s age.

I ask about design — mostly because I want Parsey to use the word “delicious” a lot — and also about all the turmoil around the company and its impact on product creation. (I decide not to mention that Yahoo blew its acquisition of the bookmarking site, Delicious, and then sold it.)

Parsey delivers on the delicious scale, noting that Yahoo must have one design experience and yet has a lot of different interfaces. In other words, it cannot be Apple, but it can feel a lot more cohesive.

Irving talks a little bit around the obvious elephant in the room — the future of Yahoo — noting that the product staff was trying to focus and forget the storm going on outside.

“We have dreams about what this company can be,” says Irving.

You and me both, brother.

12:04 pm: More questions that are too detailed for my tastes, since they have delivered lunch and I can see it and I am ravenous.

As Parsey might say: It looks deliiiiiccccious.

Now, let’s hope Yahoo can do even more tasty stuff.

Federated Media, the San Francisco-based advertising and publishing network, has acquired BigTent, a platform hosting more than 15,000 communities, mostly made up of parenting groups, especially moms.

Financial terms of the deal with BigTent, also located in San Francisco, were not disclosed.

BigTent has raised $5 million in venture funding from Menlo Ventures and Mohr Davidow Ventures.

In an interview earlier today, FM CEO John Battelle said the move was to further strengthen its tools for both the advertisers and publishers it serves, especially to create better “content conversations.”

Along with leveraging BigTent’s members by linking top brands with the parenting community, the platform could be used by publishers to reach their bases.

This is the second acquisition for FM within several months. In August, it acquired semantic search start-up TextDigger, a platform that allows content owners to include semantic indexing in search.

Battelle said that the additions to FM’s offerings are moving it toward helping content makers and advertisers create more relevancy, well beyond simply serving ads.

“People might look at us as a school of fish, but suddenly realize we are a shark,” said Battelle. “We want to create meaningful interactions on the independent Web.”

The shark metaphor scares me a bit, but it will be interesting to see what FM chomps up next.

Here is the official press release from FM:

Federated Media Publishing Acquires BigTent Platform for Groups

SAN FRANCISCO –Federated Media Publishing (FM), a next-generation media company, today announced the acquisition of BigTent, the leading platform for trusted parenting groups.

More than 8 million parents engage deeply with FM authors, the best independent voices on the Web. Millions more rely on BigTent to stay connected with local school, community and shared-interest groups.

“The combination of our two audiences gives marketers a powerful new way to reach the most valuable consumers online,” said Deanna Brown, President and Chief Operating Officer of FM. “Moms are busy, so they’re picky about where they spend their online time. They read high-quality writing from the best bloggers and they engage with each other in the most useful communities.”

BigTent’s thousands of groups continue to function as they always have, with the same great customer service, and the platform continues to welcome new groups. Each group has its own private, secure social networking environment and a set of tools that save precious time and enrich communities.

“BigTent groups are the social fabric of their communities, and we’re thrilled by the new and better ways we’ll now be able to serve them,” said Laney Whitcanack, the co-founder of BigTent, who is now Chief Community Officer at FM. “With FM, we have a partner who values their voice and is committed to their ongoing support and growth. Working together, we’ll continue to build authentic and meaningful opportunities for major brands to engage with these trusted groups.”

The purchase of BigTent follows FM’s recent expansion of its ability to reach parents online through a partnership with the Clever Girls Collective and the increase in its technical capabilities with the acquisition of semantic-search technology from TextDigger.

While it might be a dream of publishers–hard hit by the digital tsunami and blaming Google for the crisis–Microsoft is not likely to fork over the big bucks they’d need for exclusive indexing of their content.

“Microsoft isn’t the monopoly guy anymore,” joked one source close to ongoing talks between Microsoft and publishers, especially News Corp. (NWS) and Associated Press. “So, it’s not going to be the bank for publishers.”

While a spate of reports has Microsoft (MSFT) execs girding the globe offering gobs of cash to content companies to block Google (GOOG) and favor its Bing search service, sources close to the situation caution that it is extremely unlikely that the software giant would pay giant sums for that pricey privilege, which many inside the company think will not help it gain much search share.

“While there is a lot of mutual interest, it’s doubtful Microsoft is going to pay to ‘rent’ a corpus of content that it does not own,” said one source close to the situation. “The economics are not there for anyone.”

Nonetheless, that has not stopped AP and News Corp. from aggressive public agitating recently about how their content has been treated online, accusing Google of a wide range of crimes against them and threatening to “de-index” their content from the search giant.

For example, News Corp. CEO Rupert Murdoch–who has been on what seems like a televised campaign against the search giant–accused Google of pilfering stories from his publishing properties.

Presumably, by yanking Google’s access to them and offering them to Microsoft, balance will be restored in The Force.

Except, not so fast, since such a deal would end up costing Microsoft a fortune, which is why several sources said its execs don’t seem to be keen on doing that without getting a lot in return.

The swirl of chatter about it, these sources said, is coming from publishers–who initiated the very early-stage talks–who are keen on playing Microsoft and Google against each other in hopes the warring tech titans will loosen their fat wallets to battle each other.

News Corp., for instance, has been looking for ways to replace the three-year, $900 million (or less) Google/MySpace search deal that expires next year. The publisher has been talking to Microsoft about some sort of exclusivity since this summer, but News Corp. executives also say they’re happy to work with Google if Google is willing to pay up. But what would either company really be buying?

Another source used YouTube as an example of Google getting a mass of videos, when it paid $1.65 billion in 2006 for the online video company.

“That made sense, since Google got all that content to use,” said the source. “But it is hard to see publishers getting the advertising economics and revenue they want from Microsoft for lending their content out, even exclusively.”

Still a third source noted that the only way such a deal could be envisioned by Microsoft is if a majority of publishers was able to band together to block Google from indexing their sites.

“If it was everyone, that might become interesting,” said the source. “But even that has issues, since Microsoft is not interested in having exclusive news for a temporary period of time by overpaying for it.”

Added the source, noting how much money Microsoft has lost in its online efforts so far:

“It’s essentially a marketing expense, and there are a lot better ways to spend that money to win market share than giving it to publishers.”

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

Please see this disclosure related to me and Google.

Microsoft just announced in a blog post that it was “integrating more real time data into our search results, starting with some of the more prominent and prolific Twitterers from a variety of spheres.”

Microsoft (MSFT) said it is not indexing all of Twitter in its new Bing search service–not yet, that is–nor has it made any kind of exclusive deal with Twitter to add this real-time feed.

Recent tweets will be prominently displayed near the top of the search page, but could also be spread throughout the results.

The feature is now rolling out, so might not be able to be accessed immediately. It will be updated every minute, said Microsoft.

Microsoft is the first major search service to do this on a regular basis, using public programming interfaces, or API’s, available to anyone from Twitter–and it is an aggressive move, which seems to be part of its major push by Bing (which is, in fact, seeing some share gain in yet another report released today).

But, all are moving in that direction. While neither Google (GOOG) nor Yahoo (YHOO) is regularly indexing any part of the microblogging service’s real-time data stream yet, both have been testing the idea internally.

All three, though, do index static Twitter profiles in some way in their search results. They also can show older tweets that have specific keywords in them.

The Microsoft effort is different, and, um–and I had absolutely no idea that the company was doing this–appears to include BoomTown tweets, as well as those from other tech bloggers like Search Engine Land’s Danny Sullivan and a “few thousand people to start.”

Still, in a mission-accomplished effort to creep me out, Microsoft’s Sean Suchter, general manager of its Silicon Valley Search Technology Center, noted in the blog, “starting today, when you search for these folks names in association with Twitter, you’ll see their latest Tweets come up in real time on Bing’s search results.”

He then used my name and Twitter profile as an example, displaying some of my duller tweets of stories I had posted on All Things Digital.

(My testy roundelay with TechCrunch’s Erick Schonfeld about the veracity of its Twitter-about-to-sell-to-Google post a while back would have been much more interesting, and pertinent too!)

In an interview with me this afternoon, Suchter described the addition of the specific tweets as a “first step” in adding a lot more real-time data to Bing.

“Given Twitter is the big gorilla here and it is a really interesting frontier for search, we thought it was important to get something out there,” he said. “It is also about us learning how users interact with it that will also be really interesting.”

Suchter said Twitter is aware of the move, but that Microsoft did not need any extra help from the San Francisco start-up to launch it.

Suchter said it would begin with a limited number of tweets for now and will not include search results of tweets about a person–although that is possible. And Microsoft, he said, was not able to index all of Twitter at the present time.

“We would like to grow this, because this area is so exciting, so we wanted to get the plumbing working to show we could do it,” said Suchter. “And since there is a lot of useful content in Twitter and in this real-time corpus, it has to be a big part of the search experience in the future.”

This is obviously a first shot in what will be a long war over real-time search among Google, Microsoft and Yahoo–each of which has also been talking to Twitter about a variety of partnership deals that have yet to be struck.

Here is Suchter’s blog on the Twitter real-time data addition:

Bringing a Bit of Twitter to Bing

There has been much discussion of real-time search and the premium on immediacy of data that has been created primarily by Twitter. We’ve been watching this phenomenon with great interest, and listening carefully to what consumers really want in this space. Today we’re unveiling an initial foray into integrating more real time data into our search results, starting with some of the more prominent and prolific Twitterers from a variety of spheres. This includes Tweets from folks from our own search technology and business sphere like Danny Sullivan or Kara Swisher as well as those from spheres of more general consumer appeal like Al Gore or Ryan Seacrest.

Starting today, when you search for these folks names in association with Twitter, you’ll see their latest Tweets come up in real time on Bing’s search results. For example, if you type “Kara Swisher Twitter” or “Kara Swisher Tweets” or even “@karaswisher” as your search query, you’ll see something like this:

The answer will include that person’s latest Tweets, along with an easy link to “See more tweets” from that individual.

We’re not indexing all of Twitter at this time… just a small set of prominent and prolific Twitterers to start. We picked a few thousand people to start, based primarily on their follower count and volume of tweets. We think this is an interesting first step toward using Twitter’s public API to surface Tweets in people search. We’d love to hear your feedback as we think through future possibilities in real time search.

And while we may not be famous, we are prolific, so don’t forget to follow us on Twitter for all the latest news from Bing!

Sean Suchter, General Manager, Search Technology Center, Silicon Valley

Speaking of creepy stalking, please enjoy this nail-biting trailer for “Play Misty for Me”:

“The installation of the Google Apps Sync plugin disables Outlook’s ability to search any and all of your Outlook data,” Microsoft explained in a post to the Outlook Team blog. “When a Google Apps user installs the sync plugin for Outlook, the plugin modifies a registry key which disables Windows Desktop Search from indexing and providing search functionality for all Outlook data, not just the Outlook data being synchronized from GMail. Because Outlook search relies upon the indexing performed by Windows Desktop Search, Outlook search functions are broken as a result. It is also important to note that uninstalling the plugin may not fix the issue.”

Uh-oh. Good luck finding that budget-request email you sent to your CFO a few months ago….

Google (GOOG) is working with Microsoft (MSFT) to resolve the issue, but the damage may have already been done. Enterprise is notoriously reluctant to embrace change specifically because of cock-ups like this. Enterprise likes familiarity. It likes seamless change. With Apps Sync for Outlook, Google provided the former, but it fell short on the latter. And that may inspire some companies that had been considering Apps Sync for Outlook to stick with Exchange for a while longer.

“The installation of the Google Apps Sync plugin disables Outlook’s ability to search any and all of your Outlook data,” Microsoft explained in a post to the Outlook Team blog. “When a Google Apps user installs the sync plugin for Outlook, the plugin modifies a registry key which disables Windows Desktop Search from indexing and providing search functionality for all Outlook data, not just the Outlook data being synchronized from GMail. Because Outlook search relies upon the indexing performed by Windows Desktop Search, Outlook search functions are broken as a result. It is also important to note that uninstalling the plugin may not fix the issue.”

Uh-oh. Good luck finding that budget-request email you sent to your CFO a few months ago….

Google (GOOG) is working with Microsoft (MSFT) to resolve the issue, but the damage may have already been done. Enterprise is notoriously reluctant to embrace change specifically because of cock-ups like this. Enterprise likes familiarity. It likes seamless change. With Apps Sync for Outlook, Google provided the former, but it fell short on the latter. And that may inspire some companies that had been considering Apps Sync for Outlook to stick with Exchange for a while longer.