In one of the odder things to happen in my journalism career, I was forwarded a flash analyst report by Wall Street’s Macquarie Capital on the news that AllThingsD.com broke yesterday (and foreshadowed before) about the shakeup of Yahoo’s board.

I cover the Silicon Valley Internet giant closely, obviously, and have had a lot of scoops on its machinations over the years. This was simply the latest, and turned out to be on on target (Phew!).

While that is presumably my job as a reporter, it was apparently of “concern” to Macquarie’s analyst.

Said the report:

One final note: it continues to concern us that one particular journalist, Kara Swisher, frequently seems to be privy to such precise information regarding YHOO. On January 9, almost a month prior to the actual release from the company, Kara wrote, “While some departures seem most obvious — longtime board members Vyomesh Joshi, Arthur Kern and Gary Wilson — the really interesting part will be the possible exit of Chairman Roy Bostock.” Yesterday she wrote, “expect a change in the Yahoo board composition, too, as early as this week.” And today at 3:38pm EST, she posted a story that “Yahoo will announce the impending departure of four of its longtime board members, including chairman Roy Bostock. The others headed out the door are Hewlett-Packard exec Vyomesh Joshi, Gary Wilson and Arthur Kern.” While we give much credit to Kara for her ability to obtain this information, we believe it reflects very poorly on YHOO’s ability to maneuver effectively outside the public spotlight.

While I appreciate the fist-bump, it’s unclear why it’s concerning for shareholders — whom these reports are created for — to know this information before Yahoo deigned to release the news or spoonfeeds any other information at investor events. After all, fair, complete and accurate information from anywhere in the tech news media could help them make better investment decisions.

And Yahoo also always operates in the public spotlight, even when it is outside it, as does every tech company. That’s especially true these days, in the vastly changed media environment, in which news moves faster and with more immediate impact.

In fact, I’m concerned that worrywart Wall Street doesn’t grok this — but I’m definitely not surprised, either.

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

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

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

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

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

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

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

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

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

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

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

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

Google has bought Apture, the start-up that makes a browser plug-in that adds additional contextual information to Web pages for the Internet’s most prominent publishers.

The financial details of the acquisition were not disclosed.

A Google spokesperson said the search giant was interested not only in Apture’s product, but the team and the partnerships it had built.

Apture CEO Tristan Harris has spent some of the last four years wearing out the carpets in the offices of major online publishers.

In an interview today, Harris said that the Apture staffers will join the Chrome team at Google.

“We started the company to help people have more frictionless access to information,” he said. “And those features will take on new forms in the Chrome browser.”

Apture has raised $4.1 million in venture funding so far, including a $3.5 million round from Clearstone Ventures.

Pixazza is dead. Long live Luminate.

Well, from a brand perspective, at least, as the image advertising start-up changes to an easier-to-say name and also launches a new platform for image applications.

The Mountain View, Calif.-based start-up — which is backed by Google Ventures, CMEA Ventures, August Capital, Foundation Capital and Shasta Ventures, as well as by angel investors Ron Conway, Gideon Yu and Maynard Webb — aims to do for Web photos what the search giant did for text.

The new name for the company that called itself “AdSense for images” pretty much speaks for itself.

In addition to Luminate’s previous sharing, commerce and advertising apps, the company will offer information, navigation and public service apps, which you can see below

Luminate says its interactive images are viewed three billion times per month.

Here’s the official press release for the name change, as well as the image app platform:

PIXAZZA, INC. REBRANDS ITSELF AS LUMINATE, INC.

New Name Better Reflects Vision For Making All Online Images Interactive

Company Enables Images at Rate of 30 Billion Image Views per Year

MOUNTAIN VIEW, CA — July 27, 2011 — Pixazza Inc., the worldwide leader in making images interactive, today announced its new company name — Luminate, Inc. With its new services and the introduction of a groundbreaking new platform (see separate release: Luminate Launches World’s First Platform for Image Apps), the company opted to rebrand itself with a name that better reflects its bold vision of making every image interactive.

“We started the company to change the web by offering information relevant to online images, engaging consumers in a novel way while offering advertisers and publishers additional revenue streams,” said Bob Lisbonne, CEO of Luminate. “We’ve since developed the technology and scale to enable images to do even more. Moving forward as Luminate, we will continue to elevate the role of the image and dramatically improve the web experience.”

Rapidly scaling to accommodate the new demand for interactive images, Luminate now reaches more than 150 million unique visitors per month.

Its publisher network also has grown to more than 4,000 publishers, and the company enables images at a rate of 30 billion image views per year. This is significant because just as page views are commonly used to measure web site traffic, Luminate tracks image views, which count the number of times a web publisher serves up a Luminate-enabled image. It is a clear marker of audience interest.

The name change and announcement of the Luminate™ platform for image apps, comes on the heels of an innovative partnership with Hearst Digital Media. The company’s explosive momentum has also been a draw for top talent including CRO and head of publisher development, Chas Edwards, formerly of Digg; Terry Murphy, CFO, formerly of LiveOps. Luminate also added Elliot Schrage, the Vice President of Global Communications, Marketing and Public Policy at Facebook, as a strategic advisor to the Luminate Board.

Please visit www.luminate.com to learn more about how Luminate is changing the way consumers, publishers and advertisers use and interact with online images.

LUMINATE UNVEILS WORLD’S FIRST PLATFORM FOR IMAGE APPLICATIONS

Company Brings Images to Life with Image Apps Designed to Create Rich Consumer Experience

Luminate Transforms Images Into a Canvas to Shop, Share, Comment, Examine, Curate, Search and Socialize

MOUNTAIN VIEW, CA — July 27, 2011, Luminate, Inc., formerly known as Pixazza, Inc., today unveiled a groundbreaking new platform for image applications. For the first time ever, consumers can launch applications within the individual images on their favorite websites.

With this exciting new platform, Luminate opens a new world of image apps, breaking down a wall and bringing flat, static images to life. Online images become more than visual stimuli — they become a gateway for accessing rich and relevant content across the web. The apps available on the Luminate™ platform will allow consumers not only to conduct their favorite everyday online activities such as shopping, sharing, commenting and navigating directly from the images, but can also facilitate entirely new services made possible by the development of apps specifically for images.

“Image apps transform images from static pixels into interactive experiences,” said Luminate CEO Bob Lisbonne. “Just as phones evolved from merely voice calls to smartphones with apps, now consumers can enjoy relevant apps inside every online image. The explosive use of images fueled by mobile, social, and cloud computing trends sets the stage for Luminate’s pioneering new image apps platform.”

How It Works:

When a consumer sees the Luminate icon in the corner of an image, it indicates that the image is interactive. Consumers simply mouse into the image and choose from a variety of image apps. They can easily share an image or specific points within an image with their friends, discover statistics about their favorite athletes, see where to purchase similar products to those featured in a photo, uncover the latest information about a particular event, reveal geo tag or Wikipedia information, read more content about the people or places featured in an image, listen to music or see a movie trailer related to an image.

Image Applications:

Image applications will span a number of key categories including: Commerce, Information, Social, Organization, Advertising, Navigation, Public Service, and Presentation. Luminate’s platform currently offers such applications as: unique Twitter Share, Facebook Share, and Email Share apps that give consumers the power to select precisely what they want inside an image and share it with others; an information app called Annotation that allows publishers to quickly and easily tag any spot within an image and add information relevant to that image; a commerce app called Products, which enables consumers to mouse over the image and interact with tags on the picture; and an Advertising app that offers publishers a seamless way to place relevant advertisements within an image.

Luminate plans to roll out new applications frequently to address the varying needs of consumers, publishers and advertisers. Its platform is designed to ultimately enable the development of any conceivable app that is relevant to a particular image. It is this capability that will help define the future of web images.

This cutting edge platform for image apps comes from the company that pioneered the use of images as real estate for delivering ecommerce and advertising three years ago as Pixazza, Inc. With the introduction of the new platform, the company has been rebranded as Luminate, Inc. (see separate release: Pixazza, Inc. Rebrands itself as Luminate, Inc.) as it takes the next step in executing its vision to make every image on the web interactive.

The Luminate Approach:

What makes the Luminate platform so compelling is its breakthrough ability to link images with applications and content beyond the website where the image is viewed. To create the best possible consumer experience, Luminate focuses on all of the data relevant to a particular image or part of an image. Luminate has long employed a unique recognition system that combines visual algorithms with human crowdsourcing. With its new platform, the company has multiplied the sources and ways to uncover information about images. In addition to the data derived from its team of experts, the company can avail itself of information from end users and publishers with the goal of creating a richer, more immersive experience for the end user. Luminate has the most sophisticated system in the industry for tagging relevant content.

“The reason images remained stagnant for so long is because it is remarkably difficult to contextualize their composition and link them to other pieces of relevant content across the Internet,” said James Everingham, CTO of Luminate.

“We were the first to develop the technology to overcome these complexities, turning images into an even more valuable asset. With our platform and the introduction of image apps, we believe that the entire Internet can become connected in a more meaningful way.”

To learn more about how Luminate is changing the way consumers interact with images, please visit www.luminate.com.

This morning, News Corp. CEO and majordomo Rupert Murdoch, his son James (who is also a top company exec) — as well as former employee and full-time lightning rod Rebekah Brooks — march on down to the British Parliament to answer questions from a committee there about the ever-growing PhoneGate scandal.

For those living under a rock, News Corp. is embroiled in ever more serious controversy about who knew what and when (also where, why and how much) in the hacking of phones of a myriad of well-known people in the U.K. by its News of the World tabloid newspaper.

Besides celebrities and politicians, that has included the voicemails of a murdered girl, an appalling act that has galvanized public opinion and the weak spines of legislators into action in this inquiry.

It’s sordid, it’s ugly and it makes for what could be an explosive event, starring the man who brought you “Titanic,” Glenn Beck, “Glee” and, most recently, the sale of Myspace.

There’s no question, getting the 80-year-old Murdoch on the ropes will be the aim of the committee members holding the hearing, and how one of the world’s most famous and legendary media moguls performs — or does not — will be a big deal to both interested observers and News Corp. shareholders.

By way of full disclosure, that’s not me, but this site is owned by Dow Jones, which is owned by News Corp. In other words, somewhere up the corporate food chain, Murdoch is my boss.

In any case, that has never stopped me or AllThingsD.com from telling it like it is, so here is the liveblog of what is sure to be a doozy of a media event:

6:36 am PT:: It all starts for the Murdochs, as soon as the former Scotland Yard head John Yates has completed questioning about the police’s obvious bungling of the various investigations over the years.

Rupert Murdoch and his son, James Murdoch, are on, looking grave and dressed in grey.

Sitting behind them are Rupert Murdoch’s wife, Wendi Deng, and his top adviser at News Corp., Joel Klein, who is heading up the phone hacking scandal internally at the company.

The hearing — in a room that looks like a high school debate could take place there — starts off politely enough.

But the first question is directed toward James Murdoch about his clearly incomplete investigation when phone hacking allegations were first made many years ago. He begins with an apology.

“These actions do not live up to the standards of News Corp.,” says the younger Murdoch.

He is interrupted by his father, Rupert Murdoch, who notes rather dramatically: “This is the most humble day of my life.”

The questioner quickly asks the obvious query, after James Murdoch claims News Corp. was not in full possession of the facts when execs had told a previous committee there was no reason to believe there was more widespread hacking.

Were News Corp. execs lying?

James Murdoch continues to insist that the bulk of evidence came out — “real evidence” — in later civil trials. And also, that News Corp. is now investigating the situation fully.

He throws around words like “proactive action” and “transparency,” which is probably cold comfort now to those hacked when things were less clear to News Corp.’s senior management.

Now up, Rupert Murdoch, who is asked quickly about statements he made about not tolerating wrongdoing and who had lied to him at News Corp. about the phone hacking.

Apparently, he “didn’t know” a lot about the hacking that took place, while also defending the non-hacking employees of his company.

But the questioner is still on him about exactly what he did know about the situation, which seems to be — at least according to his testimony — a lot of I-don’t-knows.

6:53 am: It continues about what Rupert Murdoch knew and when he knew it and what he did. Or not.

As Rupert Murdoch keeps up with this tone of not being clued in to what have turned out to be critical events, James Murdoch wants to keep jumping in with the details, which he is eager to impart.

“At what point did you find out criminality was endemic at News of the World?” asks the questioner.

Rupert Murdoch does not like the word endemic, but stresses that he was “shocked, appalled and ashamed” by the case of the murdered girl, Milly Dowler.

The questioner seems frustrated by Rupert Murdoch’s answers, which are, for the typically razor-sharp media mogul, unusually slow.

Like a persistent terrier who wants to perform, James Murdoch is back again offering to serve up the deets.

7:04 am: Now, it is onto the closing down of News of the World: Was the tabloid shut down because of the criminality?

“We had broken our trust with our readers,” says Rupert Murdoch. “We felt ashamed for what had happened.”

A new questioner is on, with a bizarre query about why Rupert Murdoch came in the back door of the Prime Minister’s house at 10 Downing Street on a recent visit there.

It’s a cloddish effort to show him as a powerful puppetmaster to pols, but only serves as a punch line.

Back on track, with questions about whether there was hacking in the U.S., which Rupert Murdoch said he could not believe had happened.

More questions about how badly the company acted, which came down to the questions about whether he was “ultimately” responsible for the hacking.

“Nope,” says Rupert Murdoch, who keeps insisting he relied on others, some of whom apparently “misled” him.

It’s an astonishing admission and, really, excuse, given he has been chairman, CEO and a very strong leader of News Corp. for more than a half-century.

7:16 am: A new questioner, who asks who decided to close down News of the World. It was Murdoch himself, his son and other execs.

Next up, why did News Corp. pay off a victim of hacking, which James Murdoch did without informing his father or the News Corp. board.

James Murdoch essentially points out that it is typical to do this in companies of the global scale of News Corp.

These are apparently very busy, busy, busy people, who do not seem to have time to notice how such juicy and best-selling scoops might have been magically produced by News of the World.

Onto ethical conduct guidelines, which News Corp. has in a pamphlet form, says James Murdoch, but pages which some at the company have obviously never cracked.

Rupert Murdoch is asked again about his culpability in the case, which he continues to maintain he does not shoulder the blame.

James Murdoch does note that the company “will think more forcefully … about our journalism and ethics.”

Given the situation, in which every day brings a new revelation of bad acts by News Corp. employees, this promise of better behavior seems to be a case of much too little and very, very late.

Rupert Murdoch still uses the opportunity to stress the need for a free press, despite its excesses.

7:31 am: More about the payments to settle with phone hacking victims and how soon the company realized the problems were more widespread.

James Murdoch talks about how he might have acted differently had he known more then as he does now.

“If we knew now what we knew then,” says James Murdoch, “we would have taken more action and moved more aggressively.”

But what else is he going to say? It’s a could-have, would-have, should-have line of questioning that is eliciting very little in the way of true information.

Finally, a good point about “willful blindness,” which is a term from the Enron scandal about avoiding knowing about problems you really should have known about.

“Is that a question?,” asks James Murdoch. It is a statement, actually, and a decent enough one.

“We didn’t do that,” says Rupert Murdoch firmly this time.

Still, soon enough, Rupert Murdoch is insisting he was not as involved as people have imagined him to be with the management of his newspapers.

A new questioner is pressing this important point, but Rupert Murdoch is not biting on a query about his legendarily hands-on managing style.

“I’d say, ‘What’s doing?’” he explains about his conversations with editors, but adding he might not have been told about payoffs to phone hacking victims.

The questions are in the deep weeds here, but it’s still interesting that Rupert Murdoch continues to maintain that his life was too busy to wallow in the details, however controversial and important those details might be.

7:55 am: More and more don’t-knows pile up and up in a giant mountain of acts perpetrated by someone somewhere, but not the Murdochs.

“I can tell you I was surprised as you were,” says James Murdoch about certain payments to various hackers and those who were hacked.

Was it Les Hinton, who then ran News International and later Dow Jones, from which he recently resigned?

Could be! Maybe! Mistake were made! Who knows!

Well, someone does!

It moves onto Brooks, the tarnished News International exec and editor whom Rupert Murdoch does note he still trusts. Finally, some certainty!

Brooks is definitely one of the more compelling characters in this drama, although the media focus on her striking red hair color seems odd and vaguely sexist, as if she is some flame-haired she-devil from media hell. She might certainly be guilty in this mess, but her fabulous hair has nothing to do with it.

(Rupert’s mane is grey, by the way, and James’ is brown, if you really need to know.)

Fascinatingly, Murdoch’s backing of Brooks has been strong and consistent, despite intense criticism of her by many in this scandal.

The payment of legal fees of perpetrators and payments to the victims in the hacking seems to obsess one questioner, who wants News Corp. to stop doing it.

Murdoch says he’d like to if contracts did not preclude that, which essentially means News Corp. will keep up forking over the legal fees and payments.

8:12 am: The attention turns to how James Murdoch found out about the various emails that showed there was more evidence of hacking than was first thought about and what he felt about it.

He says very little, noting that the matter is under police investigation. It’s not don’t-know now, but can’t-say.

The hearing is beginning to feel a little rope-a-dope, with the Murdochs apologizing and taking blows, saying very little — either claiming lack of knowledge or lack of ability to comment about the ongoing police inquiry — and tiring out the questioners.

It is a classic tactic of the boxing champion Muhammad Ali and it works in the ring.

Whether that will be the case with PhoneGate remains to be seen, but it certainly has made what could have been a more explosive hearing much less so.

Instead, it seems to have turned into a what didn’t the Murdochs know and when didn’t they know it hearing.

On questioner gets this irony. “That’s frankly unsatisfactory,” he says about the Murdochs continuing shock and surprise at the thorny situation they find themselves in.

Maybe it seems a little hard to believe, but the persistent story from James Murdoch is that they were told by their lawyers, the police and others that nothing was awry once the initial phone hacking investigation was complete and only found out about the larger problem in later civil lawsuits.

But, asks the questioner to Rupert Murdoch, should his editors and managers at News of the World have known about it?

Of course, they should have.

But, once again, the legendary media baron, who made his fortune and fame in disseminating news and information across the world in newspapers, on television, on satellite and on the Web — at least for now — can’t say.

So, was he “kept in the dark” about the situation? Rupert Murdoch acknowledges he might have asked more questions, although he noted his British newspapers were only a small part of his massive empire.

But, he adds, “Anything that is seen as a crisis comes to me.”

Well, not the phone hacking crisis, it seems.

But, they’re sorry. So sorry. And, of course, humbled.

8:54 am: Suddenly, there is a disturbance, in which someone seems to have possibly attempted to accost the Murdochs.

But it is not clear what has happened, as the hearings are suspended for 10 minutes.

James Murdoch leaps up quickly to protect his father, which he has been doing in this hearing verbally already, where the strategy seems to be to let him largely do all the talking.

Even faster on her feet and with arms raised toward a man in a plaid shirt and carrying a pie plate with shaving cream is Rupert Murdoch’s wife, Wendi.

The man seems to have managed to get some of the foam on Rupert Murdoch, but Wendi Deng appears to have partially thwarted her husband from receiving a full pie in the face.

It’s the first striking visual of this hearing, protecting the patriarch and the king of the empire from harm, no matter what.

Here is a video of the incident:

According to Britain’s Channel 4: “As the man was being led away in handcuffs escorted by a single police officer, he refused to give his name, saying: ‘As Mr Murdoch himself said, I’m afraid I cannot comment on an ongoing police investigation.’”

9:09 am: The room is cleared, so it is only the Murdoch crew behind James and Rupert Murdoch, and now the committee is even more solicitous.

Rupert Murdoch is without his jacket and his wife is being commended for her most excellent left hook.

Still, it’s back to business and the questioner does zero in on a major disconnect over how two media execs as famously aggressive and involved as the Murdochs were so passive in this hacking situation.

It “was a terrible shock,” says James Murdoch.

The same is said about what would be even more disturbing and recent allegations of the hacking of the victims of the 9/11 bombings.

Both father and son say there is no evidence of this so far, but they were surely looking into it.

While it certainly did not come through in what have largely been feckless questions from the committee, the final questioner does correctly ask the pair if they might want to pay more attention.

The last question is for Rupert Murdoch and finally gets to the real query everyone wants to ask.

Noting Murdoch is “captain of the ship,” she asks if he has considered resigning.

“No,” answers Murdoch firmly.

“Why not?” she presses.

“People let me down and it’s for them to pay,” says Rupert Murdoch. “But I think, frankly, I am the best person do clean this up.”

He finishes up with a statement about being sorry, how he was also betrayed and how phone hacking and bribery is wrong.

“Saying sorry is not enough, things must be put right,” he says.

Finally, something we do know.

Groupon sent out emails to its users this weekend, about changes it has made to its privacy statement and terms of use.

Among the most notable changes is more information about the Chicago-based social buying start-up’s collection and use of mobile location information.

Said Groupon:

“In short, if you use a Groupon mobile app and you allow sharing through your device, Groupon may collect geo-location information from the device and use it for marketing deals to you (and for other purposes listed in the “How Groupon Uses Personal Information” section of the Updated Privacy Statement).”

In other words, if you let them, in order to improve the experience and make the Groupon Now app more useful, you’re being tracked.

This, of course, has been a dicey issue of late, most recently related to Apple and Google smartphones and what information they collect and retain.

In addition, with a pending IPO, Groupon is under all kinds of scrutiny and any big changes will be closely studied.

In addition, in its email to customers (see below in its entirety), the company said that it had broadened the definition of personal information to include your interests and habits and also that it may share that personal information with partners in new offering areas, such as travel deals with Expedia.

Groupon said it was also trying to improve readability of its consumer information and give greater transparency to its customers.

Here is the whole Groupon memo about the changes:

Wondering about Changes to the Groupon Privacy Statement?

We want to tell you a little more about some material changes we just made to the July 22, 2010 version of the Groupon Privacy Statement (the “Old Privacy Statement”) to create the new Groupon Privacy Statement (the “Updated Privacy Statement”).

In general, all of the changes to the Updated Privacy Statement were made to improve readability, provide greater transparency about our information handling practices, address some new types of relationships Groupon is forging and new technologies Groupon is using or may use, and to let you know about the privacy choices you have. Read on.

* Groupon continues to be a proud member of the TRUSTe Privacy Program. The Updated Privacy Statement contains a reference to the most current version of the TRUSTe Program Rules and includes some additional statements required by those Program Rules. As a TRUSTe Privacy Seal holder, Groupon is committed to complying with the Program Rules as applicable to its online privacy program.

* The Updated Privacy Statement replaces the phrase “Personally Identifiable Information” with “Personal Information” to improve readability and accuracy. (More on this below.)

* The Updated Privacy Statement clarifies that Personal Information is any information that could be used to identify, locate or contact an individual. This definition is broader than the definition in the Old Privacy Statement, which limited the concept of personally identifiable information to identification information in the context of certain defined identification activities. (Whew!) The broader definition in the Updated Privacy Statement reflects our dedication to protecting privacy in all areas of our business.

* The Updated Privacy Statement includes a definition of Personal Information and explains the types of Personal Information collected, used and disclosed by Groupon, namely “Contact Information,” “Relationship Information,” “Transaction Information,” “Financial Account Information,” and “Mobile Location Information.” These definitions provide more meaningful definition about the types of information we collect and how we classify information internally.

* The Updated Privacy Statement has shortened the section that goes on about how we use and disclose non-identifiable information. This change was made to improve readability so we could focus more on talking about what we do with Personal Information.

* The Updated Privacy Statement contains information on Groupon’s collection and use of Mobile Location Information. In short, if you use a Groupon mobile app and you allow sharing through your device, Groupon may collect geo-location information from the device and use it for marketing deals to you (and for other purposes listed in the “How Groupon Uses Personal Information” section of the Updated Privacy Statement).

* The Updated Privacy Statement presents Groupon’s disclosures of Personal Information in a more detailed and transparent fashion. The new “When and Why Groupon Discloses Personal Information” section of the Updated Privacy Statement details the circumstances when Personal Information is shared with third parties in a comprehensive, bulleted-list format. This section reinforces Groupon’s commitment to protect privacy by generally limiting disclosures of Personal Information to our affiliates and services providers and to those merchants and business partners with whom our users interact.

* The Updated Privacy Statement omits the section in the Old Privacy Statement regarding disclosures of Personal Information to Google for remarketing purposes. Groupon does not provide Personal Information to Google for remarketing.

The Old Privacy Statement’s section on “Data Tracking” has been replaced with an expanded section on “Cookies and Related Technologies” to provide greater transparency around data collection technologies. This section contains information about all of the ways that we collect information using automated technologies, including cookies, pixel tags, web beacons, browser analysis tools, and web logs. The section is designed to educate readers about the types of data collected by each technology as well as how the data is used by Groupon. The Updated Privacy Statement clarifies that if automatically-collected data is associated with Personal Information, it is protected by the Updated Privacy Statement. This section also provides information about third party advertising relationships in a more readable form and includes a new paragraph regarding our relationship with Omniture.

* The Updated Privacy Statement contains an expanded section on user choice. The “Your Choices” section in the Updated Privacy Statement provides readers with information on many different types of privacy choices that they can make, along with instructions for exercising the choice. This section also consolidates information on choices that was distributed throughout the Old Privacy Statement and contains a new link to the TRUSTe preferences page.

* The Updated Privacy Statement’s section on “Security of Personal Information” has been streamlined to more-simply state our commitment to maintaining a reasonable information security program with expected administrative, technical and physical controls.

* The Old Privacy Statement’s section “Updating and Correcting Personal Information” has been replaced with a new section “Accessing and Correcting Personal Information.” This section has been revised to improve readability and clarify the processes by which users can access, update and delete their Personal Information. This section of the Updated Privacy Statement also contains a new paragraph regarding data retention. This paragraph was added for clarity and to comply with the TRUSTe Program Rules.

* The Updated Privacy Statement contains a new section giving “Notice to Residents of Countries Outside of the United States of America.” This section educates international users about the fact that Groupon is based in the U.S. so Personal Information may be transferred to the U.S. for processing.

* The “Miscellaneous Privacy Issues” section in the Old Privacy Statement has been deleted and the content it contains has been included in more appropriate, descriptive sections elsewhere in the policy. Also, we omitted the section discussing children’s information because Groupon is not designed for children and the Groupon deals are not offered to individuals under the age of majority in their states of residence. See our Terms of Use.

* The Updated Privacy Statement introduces a new contact mechanism for privacy-related inquiries: privacy@groupon.com. While general customer service questions should still be directed to support@groupon.com, the new address provides a way for us to respond to questions that our users have specifically about the privacy of their Personal Information.

And here is the email sent to users, titled “Updates to Privacy Statement and Terms of Use”:

We wanted to let you know that we’ve updated both our Privacy Statement and our Terms of Use. These new terms, which affect all Groupon users, accommodate our new products and services that allow us to offer you more relevant deals.

If you don’t feel like wading through long legal documents, here’s a summary of the notable changes, in plain English:

We’ve clarified that Groupon Now! and our other mobile apps may collect geo-location data. This lets us present you offers that are close by. See Sections 1 and 5 of the Privacy Statement.

We’ve broadened the definition of “personal information” to include your interests and habits, and provided additional details about how we collect and use your information. We’ve done this so that we can better understand what types of offers you’ll find valuable. See Section 1 of the Privacy Statement.

You may know that we’ve started working with partners to offer Groupon users new deal categories — for example, travel deals with Expedia. Our new privacy statement explains that we may share your personal information with these partners if you subscribe to special communications or buy deals in these new deal categories. See Section 4 of the Privacy Statement.

We’ve updated our Terms of Use to help you understand the expiration policies for different vouchers, including Groupon NOW! vouchers. This explains, for example, that if you don’t use a Groupon NOW! voucher within 30 days we’ll refund the purchase amount. See Section 7 of the Terms of Use.

We also clarified our expectations to ensure that our customers and visitors use the services on our website in a way that keeps the experience good for everyone. For example, we’ve prohibited abusive practices like opening multiple accounts, submitting false information and other practices that we think detract from everyone’s experience with us. See Section 5 of the Terms of Use.

Let it be said: For a digital information junkie such as myself, traveling abroad without any cellular or consistent Internet connection on my spanking new white Apple iPhone is agonizing.

To explain: I switched from AT&T to Verizon recently, in order to actually be able to make voice calls with regularity in San Francisco.

Unfortunately, Verizon does not go international. And, although I am carrying another local feature phone for calls, I am without the rich multimedia mobile experience that I usually get day to day at home.

Worse still, an “unlocked” iPhone only went on sale in the U.S. — which would allow me to use a SIM card bought in Europe –Tuesday, after I left.

Poor little me, I suppose, and there is certainly no need to cry any big, fat digital tears on my behalf.

Still, without the constant certainty of a Wi-Fi connection as I move around, it’s disconcerting for someone whose life has been jacked into the matrix 24-7-365 for far too long to be without consistent digital interconnections.

More to the point — as I watch endless legions of Europeans, who seem even more entranced by and stranded on their individual smartphone islands than in the U.S., obsessively checking out their devices every second — the concept of being completely out of touch with the pulse of the world while in the world is an odd one.

Or, at least the Twitter-fied world, in which I get short bursts of all kinds of information all the time. It takes the lack to understand what it means to be always checking in.

This is a big dose of the obvious, of course, but it was brought home to me in a can’t-miss piece in The Daily, published yesterday by the iPad news service and available here.

Titled “Speed Journalism,” it’s a succinct but important discussion on the push and pull between the ephemera of information we are increasingly getting from real-time Internet sources such as Twitter and the need for longer and more reflective pieces.

Wrote Trevor Butterworth: “The question is whether technology is diminishing our appetite or capacity for this kind of storytelling.”

This is not a new revelation, of course, but it bears repeating and considering again and again as we increasingly use these myriad social-local-mobile — so-lo-mo — devices.

And, as this so-lo-mo way of the encountering the world grows, it creates deep expectations of ever more detailed and immediate information about the world around you that is mostly immediately consumable and highly useful.

Whether this is a good thing or a bad one, I cannot tell yet, except to say that the last time I was here in Copenhagen, I was just 18 years old and I mostly wandered around in circles with an outdated guide book and without a clue.

As it turns out, without my super-duper-smart mobile phone being super-duper smart, very little seems to have changed.

We’ve done a lot of onstage interviews at our D: All Things Digital conferences with the leaders of tech.

That includes Apple CEO Steve Jobs and Google smartphone kingpin Andy Rubin, both of whom are now dealing with the fallout over a series of reports that iOS and Android smartphones regularly transmit their locations back to both companies.

The privacy implications are obvious.

As Mobilized’s Ina Fried wrote last week:

Questions about what location-based information Android makes use of followed reports that Apple’s iPhone and 3G-equipped iPads are storing a history of location information in an unencrypted database on the device. The Wall Street Journal on Thursday noted that both Android and Apple devices are sending certain location information back to the companies.

In addition to that issue, there are separate issues over the length of time such information is stored, both on the device and by Apple and Google. The iPhone (and 3G-equipped iPads) appear to be storing a long-term directory of where a device has been and keeping that information in an unencrypted database. Google keeps a small cache of such information, to allow mapping and search to work even if a device temporarily loses GPS signal. However, it doesn’t keep a long-term record on the device.

That’s why we cut this video of Jobs and Rubin talking about privacy, specifically and respectively at the eighth D: All Things Digital last summer and at D: Dive Into Mobile in December.

“We take privacy extremely seriously,” said Jobs, who addressed the smartphone location data issue in particular. “A lot of people in [Silicon] Valley think we’re old-fashioned about this.”

And I pressed Rubin on Android being a “probe in your pocket,” and he said its mobile open source operating system did not collect data, although Google services did.

“I think this is a trust and verify,” Rubin noted.

Both Jobs and Rubin make some pretty strong privacy-related statements in these videos, so it will be interesting to see how it all shakes out:

]]> http://allthingsd.com/20110426/a-probe-in-your-pocket-heres-apples-steve-jobs-and-googles-andy-rubin-talking-privacy-at-d8-and-dive/feed/ 10 http://allthingsd.com/20110418/exclusive-wal-mart-paid-300-million-plus-for-kosmix/ http://allthingsd.com/20110418/exclusive-wal-mart-paid-300-million-plus-for-kosmix/#comments Tue, 19 Apr 2011 00:46:25 +0000 Kara Swisher http://kara.allthingsd.com/?p=42783

According to sources close to the situation, Wal-Mart Stores paid just over $300 million in cash for Kosmix.

The six-year-old Mountain View, Calif.-based company–which has built a social media platform that organizes content by topic–has raised $55 million from a large group of Silicon Valley venture firms.

The acquisition by the Bentonville, Arkansas-based retail giant was announced earlier today.

Wal-Mart did not disclose terms of the deal, which is focused on building out its social and mobile e-commerce offerings.

The price for Kosmix is a pricey one to do so, but traditional retailers need to jump into the digital market now dominated by app-happy, smartphone-wielding customers.

Kosmix will join the newly formed @WalmartLabs, the company said.

Kosmix was founded by the team that sold pioneering e-commerce company Junglee to Amazon in 1998.

After that, Venky Harinarayan and Anand Rajaraman raised $55 million in funding from Time Warner Investments, Accel Partners, Lightspeed Venture Partners, DAG Ventures, Bezos Expeditions, and angel investors Jon Miller and Ed Zander.

As eMoney’s Tricia Duryee wrote earlier today:

The company may be best known for powering TweetBeat, which it defines as a real-time social media filter for live events. It also operates Kosmix.com, where people go to discover social content by topic, and it operates RightHealth, which it claims to be one of the top three health and medical information sites by reach.

One interesting aspect of the deal: Accel’s senior partner Jim Breyer–who was not the principal VC in the Kosmix investment–is on the board of Wal-Mart. Presumably, he recused himself from the decision.

]]> http://allthingsd.com/20110418/exclusive-wal-mart-paid-300-million-plus-for-kosmix/feed/ 3 http://allthingsd.com/20110414/exclusive-flipboard-confirms-50-million-funding-at-200-million-valuation/ http://allthingsd.com/20110414/exclusive-flipboard-confirms-50-million-funding-at-200-million-valuation/#comments Thu, 14 Apr 2011 20:23:12 +0000 Kara Swisher http://kara.allthingsd.com/?p=42652

Late last month, BoomTown posted about a huge venture funding effort by the high-profile and even more highly designed social media reading app for the Apple iPad, Flipboard.

Today, its co-founder and CEO Mike McCue confirmed the $50 million round at an eye-popping $200 million valuation, in a wide-ranging interview at the start-up’s Palo Alto, Calif., HQ.

“We’re obviously thrilled, because we think it confirms our focus that people want a beautifully designed way to interact with content and to share it,” he said. “And there is a lot more to come–on a scale of one to 10, we’re just at a two or three.”

The bulk of the new second round of funding–Flipboard had previously raised $10.5 million–came from New York-based Insight Venture Partners.

Insight’s Jerry Murdock said in an interview that he was excited about the idea of “social endorsement” that Flipboard was pioneering.

“We back great entrepreneurs and Flipboard is that and also in an obviously unique position to solve a problem of media consumption in the digital age,” he said. “The sky is the limit. Or more precisely it is the best environment to consume curated real-time content for Twitter and Facebook, because of the user experience and social endorsement integration with the content.”

Insight is also an investor in Twitter.

Also stepping up in the new Flipboard round is Comcast’s venture arm, as well as previous investors, including Kleiner Perkins, Index Ventures and a spate of well known angels, such as Twitter co-founder and product guru Jack Dorsey, Facebook co-founder and Asana dude Dustin Moskovitz, the ubiquitous Ron Conway, actor Ashton Kutcher and the investment company of former News Corp. exec Peter Chernin.

“From a Comcast perspective, we’re intrigued with Mike and what he’s doing with content aggregation,” said Amy Banse, Comcast Interactive Capital’s new head. “We think we can learn from him and he from us.”

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

The elegant Flipboard–which McCue recently told me in an onstage interview at the South by Southwest conference in Austin had zero revenues thus far–has changed the game on the consumption of social media.

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

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

In its current offering, there are pull-quotes, photos, videos, status updates and even the first paragraphs of linked-out content. There is also the ability to comment and share, as if one were on a social networking or microblogging site.

McCue said the new giant pile of cash will be used to increase its 32-person staff to about 50, international expansion, small acquisitions and more product development on more platforms.

The next in the arena will be the iPhone version of Flipboard, said McCue, followed by one for the Google Android mobile operating system eventually.

Left unsaid, of course, was the need for funding to fight the likelihood of increased competition in the hot space for delivering both professional and social content to consumers on a wide range of devices.

Rivals are varied, such as Silicon Valley’s most adorable news reader start-up Pulse and also Zite, a news reader which was recently sued for copyright infringement by a group of major publishers.

There are bigger potential players, such as Google, which is trying to find various ways to move into the social space.

In fact, said several sources, Google and others have made acquisition approaches to Flipboard, which has instead opted for raising more funding and staying independent for now.

McCue declined to talk about that, but did note that he is not surprised by publisher interest, especially of the worried and wary kind, in the arena.

“Anyone not respectful of others’ content is going to get in that kind of trouble,” he said, noting Flipboard has struck deals with 17 big publishers so far, including this morning’s announcement about a partnership with Oprah Winfrey’s and Discovery’s OWN cable network. “There is not one half to this equation.”

Right now, the Flipboard app is free and the business plan is advertising and some possible subscription scenarios.

McCue said advertising will be the key to Flipboard’s business plan in the future, although it’s not clear if the company will ever sell advertising itself.

Rather, it will partner with publishers seeking better distribution in the explosive tablet and smartphone market, where Flipboard has been gaining traction quickly.

But until that is sorted out, there is now $50 million more in the Flipboard kitty to figure it all out.

“With this funding, we can grow at the right pace and have a lot of flexibility to get the product right,” said McCue. “And, that’s the most important thing.”

]]> http://allthingsd.com/20110414/exclusive-flipboard-confirms-50-million-funding-at-200-million-valuation/feed/ 4 http://allthingsd.com/20110404/microsoft-facebook-tiff-over-ad-talent-raid-downgraded-to-disappointed-with-a-side-of-settlement/ http://allthingsd.com/20110404/microsoft-facebook-tiff-over-ad-talent-raid-downgraded-to-disappointed-with-a-side-of-settlement/#comments Mon, 04 Apr 2011 17:14:40 +0000 Kara Swisher http://kara.allthingsd.com/?p=42315

While Facebook should not be expecting big bouquets of love from its partner and investor Microsoft, at least it’s not going to be getting legal brickbats either.

According to sources close to the situation, the pair have settled a dispute over the Silicon Valley social networking site’s talent raid of Microsoft’s head of global ad sales, Carolyn Everson, for a similar job at Facebook.

In fact, Everson has already been at work for a week, sources said, after she agreed not to solicit a small group of advertising clients for a short period of time.

She is also barred from using any strategic information in her new Facebook job that she obtained while at Microsoft, sources said.

This kind of agreement is not uncommon in disputed job shifts and is also a far cry from a more stringent legal outcome, which might have benched her completely for some time.

But Everson is a veteran ad exec, having previously worked at Viacom’s MTV Networks. Thus, Microsoft could not have barred her from calling on advertisers she had known previous to her short employment there.

Still, the February hiring by Facebook came as a surprise to many at Microsoft, especially since Everson (pictured here) had been hired only last June, after a long search. In that time, she had become a high-profile presence at internal and external Microsoft events.

So, it’s clear the Everson hiring infuriated Microsoft execs, especially since the company regards Facebook as a close partner. Microsoft is a longtime investor too.

“We’re no longer angry,” said one source at Microsoft, about the cooling of tensions, “as much as disappointed.”

But key in the weighing of options at Microsoft is the obvious importance of keeping up good relations with Facebook. It is an important partnership, especially for its Bing search business, especially as an advantage over Google.

Thus: Bygones!

]]> http://allthingsd.com/20110404/microsoft-facebook-tiff-over-ad-talent-raid-downgraded-to-disappointed-with-a-side-of-settlement/feed/ 0 http://allthingsd.com/20110324/facebook-communications-kingpin-joins-pixazza-board/ http://allthingsd.com/20110324/facebook-communications-kingpin-joins-pixazza-board/#comments Thu, 24 Mar 2011 16:02:41 +0000 Kara Swisher http://kara.allthingsd.com/?p=41947 Yesterday, BoomTown posted a video interview with Pixazza CEO Bob Lisbonne about the photo tagging service that has nicknamed itself “AdSense for images.”

Now, the Mountain View, CA, start-up has added someone who might know a thing or two about it. Former Googler Elliot Schrage–who is now Facebook’s global communications, marketing and public policy head–is joining Pixazza’s board as a strategic adviser and observer.

Before joining both the Silicon Valley search giant and social networking powerhouse, Schrage had another thing in common with Pixazza–he also worked at retail behemoth The Gap, one of the companies that uses Pixazza’s technology tools.

“I’m impressed by Bob, Jim and the Pixazza team and delighted to have the chance to work with them,” said Schrage in an email to me.

The Pixazza network now reaches about 85 million unique visitors per month, according to Quantcast.

Essentially, the company lets publishers match and link images of products or places with its network of advertisers, via a single line of code.

When users on that site mouse over the photos, they get rich information about pricing and more, as well as a clickable way to purchase the items.

Here is Lisbonne’s blog post on the Schrage appointment, as well as the video of the interview I did with him recently:

Pixazza Is Now Friends with Elliot Schrage

One of many favorite lines I remember from Netscape’s CEO Jim Barksdale was “smart isn’t what you know, but how fast you learn.” The history of Silicon Valley demonstrates the wisdom of that adage when you consider that no company starts life with perfect knowledge; they all experiment, discover, and iterate rapidly. The best startups not only harness the knowledge of their employees, but look to their investors, advisors, and supporters as well.

Today, we feel particularly fortunate to welcome someone new to the Pixazza fold, a world class executive responsible for helping to expand the reach of two of the Internet’s premier companies. Elliot Schrage has agreed to join our board as a strategic advisor and observer.

Elliot’s current role as vice president of global communications, marketing and public policy at Facebook, coupled with his previous experience as vice president of communications and public affairs at Google, make him an ideal resource as we work to change the way consumers interact with images on the Internet. In an auspicious coincidence, Elliot previously served as the senior vice president of global affairs at The Gap–one of Pixazza’s long time advertisers.

Pixazza is pioneering the use of images as a new canvas for delivering to consumers relevant information, ecommerce, and advertising. We look forward to collaborating with and learning from our new “friend” Elliot.

]]> http://allthingsd.com/20110324/facebook-communications-kingpin-joins-pixazza-board/feed/ 1 http://allthingsd.com/20110225/googles-content-farming-good-for-consumers-or-good-for-pr/ http://allthingsd.com/20110225/googles-content-farming-good-for-consumers-or-good-for-pr/#comments Fri, 25 Feb 2011 09:02:12 +0000 Kara Swisher http://kara.allthingsd.com/?p=41043

In another significant search announcement yesterday, Google said it was revising its algorithm to target makers of low-quality content.

The search giant has been criticized by many of late for the presence of too much spam in its results, which degrades the consumer experience on the powerful site.

Thus, “pretty big algorithmic improvement to our ranking–a change that noticeably impacts 11.8% of our queries,” said Google in a blog post.

The company continued:

“This update is designed to reduce rankings for low-quality site–sites which are low-value add for users, copy content from other websites or sites that are just not very useful. At the same time, it will provide better rankings for high-quality sites—sites with original content and information such as research, in-depth reports, thoughtful analysis and so on.”

Who Google is aiming at is unclear–some point to Demand Media, whose top exec recently said the content company welcomed any improvements to the search results in its recent quarterly call.

“We consider ourself very white hat,” declared CEO Richard Rosenblatt, who has often touted the Demand’s good relations with Google, to a question from a Wall Street analyst about the series of recent declarations by Google to clean up its search results.

That was further underscored yesterday.

Interestingly, the Google post about the changes, titled “Finding More High-Quality Sites,” was authored by Google’s Amit Singhal and Matt Cutts–who have cut a high profile of late in the search arena.

Both Singhal and Cutts were quite vocal recently in loopy accusations about Microsoft’s Bing lifting Google’s search results.

And Cutts has been a frequent visitor to Washington, D.C. of late, to defend Google over its controversial acquisition of the ITA Software flight information company, as well as its search ranking process.

At a January 13 meeting, in an email obtained by BoomTown, Cutts was the draw:

Please join us!

You’re invited to learn

How Google’s Search Engine Works

Myth-busting and Q&A for House/Senate staff members

with

Matt Cutts

Principal Search Engineer, Google

Thursday, January 13, 2011

2:30 – 3:30 PM

House Visitor Center Room 201

How does Google’s search engine really work? Can websites pay Google to improve their ranking in Google results? What’s the difference between the “natural” results and the ads on the right hand side? And why does a particular website rank #1 or #3 when you do a Google search for your boss’ name? You’re invited to join Matt Cutts, one of Google’s top search engine engineers and the company’s ambassador to webmasters for a session on Capitol Hill where Matt will explain how Google ranks websites, address common myths about Google’s search results, and answer your questions. Please join us!

In another invite, low-quality content was the topic:

Matt Cutts is one of Google’s top search engineers who heads up the team ensuring that spam and low-quality sites don’t game search results. He is going to be here in DC to talk with folks around town about some of the recent calls for government to police or regulate the “fairness” of search results. Matt is a bit of a rock star in the search world and spends a lot of time speaking and blogging about these issues. Basically he’ll talk about how Google goes about ranking websites, how his team fights webspam, and he’ll provide a closer look at sites like Foundem and MyTriggers (who have filed antitrust actions against Google).

Finally, he’ll talk about the recent calls by some for Google’s search results to be regulated.

Perhaps I’m being cynical, but the noisy search algorithm changes, while welcome to those using Google, also have a pretty clear goal to burnish the Silicon Valley company’s image.

Please see this disclosure related to me and Google.

]]> http://allthingsd.com/20110225/googles-content-farming-good-for-consumers-or-good-for-pr/feed/ 4 http://allthingsd.com/20110225/demand-responds-to-google-content-purge/ http://allthingsd.com/20110225/demand-responds-to-google-content-purge/#comments Fri, 25 Feb 2011 08:01:01 +0000 Kara Swisher http://kara.allthingsd.com/?p=41062

Here’s a blog post that Demand Media put up in response to Google’s announcement last night that it would prune low-quality content from its search results.

In a blog post titled “Finding More High-Quality Sites,” Google said:

“This update is designed to reduce rankings for low-quality site–sites which are low-value add for users, copy content from other websites or sites that are just not very useful. At the same time, it will provide better rankings for high-quality sites—sites with original content and information such as research, in-depth reports, thoughtful analysis and so on.”

Some think Google was aiming at Demand, whose top exec recently said the content company welcomed any improvements to the search results in its recent quarterly call.

“We consider ourself very white hat,” declared CEO Richard Rosenblatt, to a question from a Wall Street analyst about the series of recent declarations by Google to clean up its search results.

Demand went further in a blog posted last night, which is here in its entirety:

A Statement About Search Engine Algorithm Changes

How our content reaches the consumer–whether it’s through direct visits, social media referrals, apps or search–has always been important to and monitored closely by us. We also recognize that major search engines like Google have and will continue to make frequent changes. We have built our business by focusing on creating the useful and original content that meets the specific needs of today’s consumer. So naturally we applaud changes search engines make to improve the consumer experience–it’s both the right thing to do and our focus as well.

Today, Google announced an algorithm change to nearly 12% of their U.S. query results. As might be expected, a content library as diverse as ours saw some content go up and some go down in Google search results.This is consistent with what Google discussed on their blog post. It’s impossible to speculate how these or any changes made by Google impact any online business in the long term–but at this point in time, we haven’t seen a material net impact on our Content & Media business.

Coming out of the IPO quiet period this week, we knew the topic of Google’s search engine changes was top of mind for many people–so we discussed it on the earnings call, in a couple of follow up interviews and are now issuing this statement. However, we generally don’t comment or speculate on changes by major search engines. They make changes nearly daily in a quest to give consumers the best possible experience, as do we.

Finally, in our Q4 earnings call on Tuesday we talked at length about the nature of our content and the consumer experiences we are delivering. Beyond our success helping consumers discovering our content via search, we also shared metrics around direct visits, repeat visits and social visits. We believe these metrics are leading indicators that our properties are developing into recognizable consumer brands that are delivering real value to an increasingly loyal community.

We believe these kinds of indicators are a result of our firm commitment to the interests of consumers, and that is where we continue to focus our efforts.

Larry Fitzgibbon is Demand Media’s EVP of Media and Operations, and manages the company’s rapidly growing network of consumer properties.

]]> http://allthingsd.com/20110225/demand-responds-to-google-content-purge/feed/ 3 http://allthingsd.com/20110222/liveblogging-demand-medias-and-richard-rosenblatts-first-earnings-call-the-avocado-difference/ http://allthingsd.com/20110222/liveblogging-demand-medias-and-richard-rosenblatts-first-earnings-call-the-avocado-difference/#comments Tue, 22 Feb 2011 22:08:13 +0000 Kara Swisher http://kara.allthingsd.com/?p=40968

BoomTown always enjoys the maiden voyage of a newly public company, so liveblogging Demand Media’s first quarterly earnings seems like a must-do.

It’s also the first public outing for CEO Richard Rosenblatt, who has sold off his previous entrepreneurial efforts.

And it seems like a good start, as the Santa Monica, Calif.-based online content company, which had its IPO in late January, finally out to rest some controversy about how much is actually earns by posting $1 million in net income in the last three months of 2010.

Okay, that is a weensy amount, to be sure, but it beat expectations, as well as for revenue, with sales of $73.6 million for the fourth quarter.

Of course, Demand wants Wall Street to look at “Adjusted OIBDA” results, which was up 88 percent, and which it is a much prettier $20.1 million in earnings.

Also on deck, as MediaMemo’s Peter Kakfa noted today:

“Expect to hear at least one riff on whether or not the company feels threatened by Google and changes the search engine is making to push “content farms” out of its results. CEO Richard Rosenblatt insists that his company is not a content farm, and that Google is just fine with his stuff, but I have a feeling the issue won’t go away just yet.”

We’ll see–here we go:

2:05 pm PT: It took me a bit to get into this conference call, since I could not get the live broadcast from the Web site at all and the teleconference operators were snoozing.

And I tuned in just as Rosenblatt (pictured here) was talking about how Demand was helping people get information about how to ripen avocados.

No, really.

(Memo to self: Curb the snotty journalist tone, especially since I love me a good, ripe avocado.)

Rosenblatt, who seems only a little nervous, pressed on by talking about its massive eHow site, as well as Cracked.com and other major branded sites Demand has.

The latest is TypeF women’s health and beauty site, which is guided by supermodel Tyra Banks.

Rosenblatt then linked it all to advertisers and how much they want to spend on sites like this.

“We are not limited to just a few key verticals,” he said, touting its sales staff, including Rosenblatt’s daring raid of Chief Revenue Officer Joanne Bradford from Yahoo.

“The company is well positioned to capture an increasing share of brand revenue,” said Rosenblatt.

2:18 pm: Rosenblatt then zeroed in on the juicy issues, which center around the quality of the content Demand churns out.

Or, as critics have argued, lack of quality.

“The level of specificity is arcane to some,” noted Rosenblatt, using the example of flying paper lanterns and how to make a roof rake as examples of the kind of niche content Demand produces.

Arcane is right, but it takes all kinds!

Plus, insisted Rosenblatt, it’s good! Accurate! Edited! Useful!

He took the gloves off here, which made me want a Demand piece about taking care of leather gloves (linseed oil?).

“We’re just getting started,” said Rosenblatt, about the company and not the glove care tips.

2:24 pm: The CEO turned it over to the CFO, Charles Hilliard, which meant I was off on my critical Web search about taking care of my gloves.

That’s because he immediately said: “Adjusted OIBDA.”

Which-let’s be honest–sounds like a communicable disease.

Essentially, said Hilliard, it’s up, up, up for Demand, in terms of revenue, earnings, page views and more.

You can read all these gory financial details in the press release here.

For some reason, Hilliard is using the retail term, “same store sales,” as a comparison. I covered retails for years, so it is a surprise for this to be the metaphor, but Demand obviously sees itself as a content store.

2:39 pm: Q&A time and the Google-fights-spam question came first!

Rosenblatt said he welcomed it and appeared unconcerned. His avocado-ripening, roof-rake-making, flying-lantern company needed to make no excuses!

The next question is about expansion, including internationally. Sure, Western Europe.

Then, a sneaky follow-up on content farms.

“We consider ourself very white hat,” declared Rosenblatt.

I wonder what the best way to clean a white hat is?

Voila! It’s right here on eHow:

“1. Wash your white hat in the washing machine if it is made of cotton or polyester. Just add laundry detergent and one cup of bleach. Wash the hat using the hot water setting. Do not put the hat in the dryer. The hat will shrink and then it won’t fit your head.”

Call the Pulitzer Prize committee!

(Wait, snotty again! I also love clean, white hats.)

I was so riveted by the white-hat thing, I completely missed the next question, but tuned in again to one about revenue momentum.

Essentially, Bradford–who looks great in a white hat, I might add–is on the case.

Then some internal technical questions and about guidance for Q1. CFO Hilliard said that the company was guiding for growth, despite more public company expenses.

(Needless to say, you can find out about how to run a public company here on eHow.)

The last question was about how much branded advertising will make up total revenue. Between five and 10 percent of 2010, said Hilliard, but it is the fastest category of growth.

And also one about curation of content and use of social networking sites like Facebook and Twitter for feedback.

Rosenblatt said that feedback can even become content, which will be part of new eHow redesign to come.

Want some tips on that? Of course, Demand Media has the answer, at least to this easy question.

]]> http://allthingsd.com/20110222/liveblogging-demand-medias-and-richard-rosenblatts-first-earnings-call-the-avocado-difference/feed/ 0 http://allthingsd.com/20110209/time-inc-gets-the-tablet-magazine-subscriptions-it-wants-with-hp/ http://allthingsd.com/20110209/time-inc-gets-the-tablet-magazine-subscriptions-it-wants-with-hp/#comments Wed, 09 Feb 2011 17:35:39 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=29539 Time Inc., which has been unable to come to terms with Apple over subscriptions for digitized magazines, has found a company it can work with: Hewlett-Packard.

HP has agreed to let Time Warner’s publishing unit provide subscriptions for magazines on the device maker’s new tablet, due out this summer, according to a Time Inc. source.

Time Inc. will initially sell four magazines via the HP device: Sports Illustrated, Time, Fortune and People.

HP is about to show off the new device, built using Palm’s webOS platform, at an event today, so we should get a few more details then.

But for now the deal means that HP is the only tablet maker to give a big publisher the subscription terms it wants. Time Inc. and other publishers had expected to sell subscriptions via Apple’s iPad/iTunes ecosystem last summer, but those plans fell apart, and negotiations haven’t gone far since then. The crucial sticking point was control and access to subscribers’ billing information and other data that are crucial to publishers’ business model.

Publishers are also expecting to work with Google and its Android platform, but have yet to announce anything.

It’s worth noting that this arrangement is between HP and Time Inc., and not Next Issue Media, the joint venture that is also supposed to represent publishers in their discussions with tablet makers.

]]> http://allthingsd.com/20110209/time-inc-gets-the-tablet-magazine-subscriptions-it-wants-with-hp/feed/ 2 http://allthingsd.com/20110203/googles-bing-attack-has-larry-page-written-all-over-it/ http://allthingsd.com/20110203/googles-bing-attack-has-larry-page-written-all-over-it/#comments Thu, 03 Feb 2011 19:00:42 +0000 Kara Swisher http://kara.allthingsd.com/?p=40195 Please see this disclosure related to me and Google.

While he won’t officially take over as CEO of Google until April, the recent full-frontal slapfest on Microsoft’s Bing search engine for shoplifting results from the search giant was so Larry Page in tone and temperament that it brought back memories from many years ago when I covered Google more closely.

Like the time in 2004 when he railed on the investment banking system as Google considered its IPO. Or, a meeting in 2005 when Page aggressively argued minutiae about the size of Google’s index size after Yahoo claimed its data trove was bigger.

And my ears are still ringing from a Googleplex lunch we had in the midst of his ire over a 2005 story on CNET that chronicled a lot of personal information about CEO Eric Schmidt, trying to show how much data was easily available on Google.

Page thought it best to be on the offensive and attack the report as a privacy violation, while I took the position that it was accurate and fair game and you don’t argue with the press and win.

It’s unlikely Page remembers any of this, but I do because I kept notes as part of my ongoing assessment of his characteristics as an Internet leader.

In fact, after our first interview in 2001, my notes on the encounter had this one line underlined and in all caps:

LARRY PAGE=BILL GATES.

It was not meant as an insult, but I can tell you I never wrote such a note about Page’s co-founder, the jokey and affable Sergey Brin.

Even then, Gates had a fearsome reputation as a manically competitive exec, a cutting manner to those not as smart as he clearly is and a reputation as a very tough and often eviscerating boss. (And all that was also my experience whenever I was interviewing him.)

While much wonkier, friendlier and more of a sensitive new-aged male, Page, it seemed to me, had the exact same obvious drive and aggression as Gates.

I stopped covering Google as closely years later–for personal reasons (see disclosure above)–and, thus, largely fell out of regular touch with Page.

But in reading the tough quotes and later blog post by Amit Singhal–quite possibly the sweetest dude at Google–accusing Bing of cheating, it felt like he was channeling Page’s very clear and nerdily indignant voice again.

In a nutshell: We have data to prove Microsoft’s stealing. Look at our detailed proof from our complex sting. We are outraged by this violation of geek code. Don’t you lay people get it?!?

I would wager that we’re about to see a lot more of this pugnacious, in-your-face tone from Google under Page’s leadership, which could have far-reaching implications for the company.

While I have no idea if it was his decision to let loose the dogs of algo-war on Microsoft, many with knowledge of how Google manages its public persona observed to me this week that this was just the kind of popping off that the outgoing Schmidt often tried to mitigate and soften.

But such bravado will play well with Google’s elite and pampered engineering corps in Silicon Valley.

And, in any case, PR considerations have never really been the point for Page, who cares not for how it might come off in the media (which he largely disdains anyway).

Which is to say like a temper tantrum of a very smart and very gifted child, who is probably largely right, but should not be quite so exercised given the level of violation.

No matter, since Page likely still lives and breathes data and algorithms and the Spock-like application of information.

It’s the rest of us who are illogical.

]]> http://allthingsd.com/20110203/googles-bing-attack-has-larry-page-written-all-over-it/feed/ 32 http://allthingsd.com/20110201/holding-out-for-a-hero-the-next-web-ipos-might-surprise-you/ http://allthingsd.com/20110201/holding-out-for-a-hero-the-next-web-ipos-might-surprise-you/#comments Tue, 01 Feb 2011 21:00:18 +0000 Kara Swisher http://kara.allthingsd.com/?p=40017

No, not Facebook.

Not Zynga.

And probably not Groupon.

At least not yet, when it comes to the blockbuster Web IPOs that Wall Street and investors have been waiting for, and now expecting to roll out sooner than later in the wake of the return of the Web IPO in recent weeks.

Not so fast.

That’s what multiple sources with knowledge of the situation said when queried by BoomTown after the successful public outing by Demand Media, followed by LinkedIn’s S-1 regulatory filing last week.

While these events spurred a great deal of speculation about which Web wunderkind would belly up to the public trough next, sources said that those looking for IPOs well above the $5 billion range will have to wait a little longer.

Because, while companies such as social networking giant Facebook, social buying phenom Groupon and social gaming’s Zynga have all been courted heavily by investment bankers such as Goldman Sachs, Morgan Stanley and others–all remain well-funded and willing to hold off opening their books for all to see until the last possible moment.

“There’s not a lot of reason to expose all kinds of information that is keeping these companies ahead too early,” said one person close to the situation. “In fact, once that much data is out there, you could argue that they lose a lot of their magic to investors.”

Some of that financial information is already out there, although in small bites, which has only been a taste for investors.

Full-scale sunlight will be different. While it can be cleansing, it can also be disappointing to those with too-high expectations of these companies.

Thus, expect to see more small IPOs–at least in comparison–from outfits such as Chegg, which has also been deep in talks with bankers for a while now.

Chegg, like LinkedIn, has been highly successful in a niche arena–in its case, online rentals of textbook to college students.

In the fall, the Silicon Valley company raised another $75 million in funding, on top of a previous $144 million.

Venture firms, such as Kleiner Perkins, Foundation Capital, Insight Venture Partners and others have presumably handed over that money in hopes of big returns in disrupting a $10 billion college textbook business.

Chegg got its start in 2005 at Iowa State University as a classified rental service, where books were the dominant item, but evolved its business to focus on actually doing the textbook rentals.

Typically, a rental costs a fraction of what buying a book outright does. It is ordered online and then sent to a renter, who then returns it.

The company’s unusual name, Chegg, is a mashup of “chicken and egg,” and its model is similar to that of innovative video rental outfit Netflix.

And a Netflix-like business is what presumably may keep Wall Street investors interested–at least until the bigger fish arrive.

]]> http://allthingsd.com/20110201/holding-out-for-a-hero-the-next-web-ipos-might-surprise-you/feed/ 1 http://allthingsd.com/20110125/nileguide-acquires-decade-old-10best-for-travel-content/ http://allthingsd.com/20110125/nileguide-acquires-decade-old-10best-for-travel-content/#comments Tue, 25 Jan 2011 14:33:29 +0000 Liz Gannes http://networkeffect.allthingsd.com/?p=2732 San Francisco-based NileGuide wants to be the alternative to scuzzy keyword-stuffed travel information from content farms. The company, which pays local editors to maintain free, user-generated content, has acquired 10Best.com, a profitable edited travel recommendations site from EnVeritas that’s been around since 2000, to help boost NileGuide’s traffic to three million visitors per month. Terms were not disclosed, but NileGuide said it will keep a portion of 10Best’s staff in Greenville, S.C.

]]> http://allthingsd.com/20110125/nileguide-acquires-decade-old-10best-for-travel-content/feed/ 0 http://allthingsd.com/20110124/sit-back-relax-and-do-some-research-qwiki-opens-information-visualizations-to-the-public/ http://allthingsd.com/20110124/sit-back-relax-and-do-some-research-qwiki-opens-information-visualizations-to-the-public/#comments Mon, 24 Jan 2011 19:54:49 +0000 Liz Gannes http://networkeffect.allthingsd.com/?p=2656 Qwiki today will start letting the public into its site, which constructs narrated visualizations using photos, videos, maps and text for three million reference topics.

The idea is that instead of parsing through disjointed material, searchers can lean back and have a story told to them about what they’re looking for. The Qwiki results page experience feels like watching a low-budget TV documentary with panned-across stock footage and a robotic voice. (Side note: You probably don’t want to learn how to pronounce things by hearing them on Qwiki.) Eventually these presentations will be created for many more topics, and be playable on a variety of devices.

Palo Alto, Calif.-based Qwiki, which just raised $8 million in Series A funding led by Facebook co-founder Eduardo Saverin, is hedging on the public release by calling it an “alpha.” But the company, which won the TechCrunch Disrupt start-up competition in 2010, says it has “hundreds of thousands” of potential users signed up, of which about 60 percent have been given access so far.

Qwiki CEO Doug Imbruce said in a phone interview that Qwiki has received acquisition offers already, and took funding from individual investors rather than venture capitalists so its founders could retain control of the company and focus on product rather than monetization.

Imbruce emphasized that Qwiki is not a search engine and does not seek to be comprehensive. He said Qwiki plans soon to build its index by letting third-parties input material for new topics, including profiles of individuals.

An example Qwiki for Mount Everest is embedded below:

]]> http://allthingsd.com/20110124/sit-back-relax-and-do-some-research-qwiki-opens-information-visualizations-to-the-public/feed/ 1 http://allthingsd.com/20110119/collecta-another-real-time-search-engine-bites-the-dust/ http://allthingsd.com/20110119/collecta-another-real-time-search-engine-bites-the-dust/#comments Thu, 20 Jan 2011 02:09:05 +0000 Liz Gannes http://networkeffect.allthingsd.com/?p=2506 Los Angeles-based start-up Collecta has shuttered its real-time search business, including a destination site, API and publisher widgets. The two-year-old company isn’t closing down, but will pivot to unannounced and related projects, said CEO Gerry Campbell in a phone conversation today.

Asked whether creating a real-time search engine is a viable start-up business, Campbell answered quickly: “No.” His company’s pivot is the latest of multiple efforts in the space; last year, OneRiot gave up its search business to pursue real-time advertising, and Ellerdale sold to Flipboard to help add relevance analysis to its social magazine app.

The exit of Collecta and its competitors from real-time search is remarkable given they had swarmed to the space only a couple of years ago.

In 2009, many entrepreneurs and their investors bet that real-time search was the next frontier, recognizing that search engines were having trouble handling the onslaught of status updates and fresh information streaming onto the Web from Twitter and elsewhere.

Given the companies’ emphasis on speed, perhaps it’s not surprising that they failed and moved on so quickly.

Campbell would not say how many employees Collecta had laid off as part of the change, but he maintained the company has plenty of money in the bank from the $4.7 million it raised last spring from Dace Ventures and True Ventures. Mashable reported earlier today in its story about the Collecta changes that co-founder Jack Moffitt is no longer with the company.

Campbell said Collecta will apply its “very serious technology” to other real-time projects, but it will not become a real-time ad engine like OneRiot.

Who’s left in real-time search? There are still a few, including Wowd and Topsy.

Topsy’s tweet search is much more comprehensive than Twitter’s own, and it serves half a billion queries per month, mostly through its API, Topsy co-founder Rishab Aiyer Ghosh told NetworkEffect via email today. And while Google and Bing also index tweets (and Bing has an extensive relationship with Facebook), they have not fully incorporated social updates into their core search engines.

“With TweetMeme, CrowdEye and Collecta all pivoting out of it, Topsy may be the only real-time/social search engine left,” Ghosh said. He maintained that there’s still an opportunity to build an independent real-time search engine “done right,” despite the competition dropping like flies. Topsy has raised $15 million in funding from investors including BlueRun Ventures, Ignition Partners and the Founders Fund.

]]> http://allthingsd.com/20110119/collecta-another-real-time-search-engine-bites-the-dust/feed/ 3 http://allthingsd.com/20110119/theres-a-one-in-200-chance-youre-tweeting-from-inside-justin-bieber/ http://allthingsd.com/20110119/theres-a-one-in-200-chance-youre-tweeting-from-inside-justin-bieber/#comments Wed, 19 Jan 2011 16:28:40 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=28262 From the “awesome to know, now what?” file: Something like one out of every 200 Twitter users claims to be filing their dispatches from Justin Bieber.

Or at least somewhere very close to the teen idol: Some Twitter users report that they are located “in Justin Biebers heart” or “Bieberacademy” or “Bieberville, California.” That comes from a new study from the august Palo Alto Research Center, which had an intern comb through the “Location” fields on 10,000 Twitter user profiles.

The PARC report says that 66 percent of users filled in the field with “valid” information. Another 18 percent left it blank altogether, and 16 percent used it to make a joke and/or an expression of their Bieberlove.

But even that 66 percent number is a bit misleading, since “valid” is a very vague term. Check out this great deadpan:

This includes those who merely entered their continent and, more commonly, those who entered geographic information in highly vernacular forms. For example, one user wrote that s/he is from “kcmo–call da po po”. Our coders were able to determine this user meant “Kansas City, Missouri”, and thus this entry was rated as valid geographic information (indicating a location at a city scale).

Big picture: The PARC report explains convincingly that you shouldn’t take the self-reported geographic information in Twitter profiles at face value. And, I’d argue, that extends to the rest of the information as well. On the other hand, if you’re an advertiser trying to find a lot of Justin Bieber fans, this stuff may be very, very useful.

(Thanks to YouTube’s Hunter Walk for the tip. Via Twitter, of course.)

]]> http://allthingsd.com/20110119/theres-a-one-in-200-chance-youre-tweeting-from-inside-justin-bieber/feed/ 1 http://allthingsd.com/20110110/conde-nast-takes-another-crack-at-the-ipad-with-a-single-serving-app/ http://allthingsd.com/20110110/conde-nast-takes-another-crack-at-the-ipad-with-a-single-serving-app/#comments Mon, 10 Jan 2011 23:31:48 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=27908 Okay. So iPad magazine apps aren’t going to magically solve the publishing industry’s problems, after all. But that doesn’t mean publishers can’t find ways to take advantage of tablets.

Here’s one–instead of selling digital versions of paper magazines people can already get in their mailbox or at newsstands, cobble together special-edition apps using stuff you’ve already made.

That’s what Condé Nast has tried with its new “Best of Italy: Condé Nast Traveler” app. It’s a $4.99 compilation of the magazine’s earlier articles, and based on a brief flip-through, it works quite nicely.

And because it’s not a literal translation of a current title, the app sidesteps some of the problems that have plagued magazine apps: Print subscribers don’t feel like they’re being gouged by paying for something they’ve already bought. And jaded iPad owners can’t compare it to an existing issue and utter a bored sigh.

Meanwhile, Condé has signed on pasta maker Barilla to sponsor the app, so there’s not a whole lot of money at stake here for the publisher.

Condé already sells some paid iPhone apps, and has a couple of in-app purchases available for some of its free apps, but you should expect to see more paid, standalone apps this year, most of which will utilize stuff the publisher already has in its archive.

Meanwhile, more optimistic publishers hold out hope that Google’s Android will give them what they want–the ability to sell subscriptions for magazine apps, and keep most of the revenue and all of the consumer information. And that once that happens, Apple will come around, too. Theoretically.

But even if magazine subscriptions get resolved, I’m not sure that solves publishers’ magazine app problems. The industry’s hope, at least for much of the last year, was that the iPad and other tablets would allow them to roll back not only the “content = free” ethos of the Web, but also the “subscriptions = really, really cheap” precedent they’d set up on their own.

But since publishers are still giving away print magazine subscriptions at fire-sale prices, it’s going to be hard to convince tablet owners to pay a penny more. And you can’t blame that one on Steve Jobs.

]]> http://allthingsd.com/20110110/conde-nast-takes-another-crack-at-the-ipad-with-a-single-serving-app/feed/ 3 http://allthingsd.com/20110108/twitter-responds-to-wikileaks-document-demand-by-feds/ http://allthingsd.com/20110108/twitter-responds-to-wikileaks-document-demand-by-feds/#comments Sat, 08 Jan 2011 08:25:16 +0000 Kara Swisher http://kara.allthingsd.com/?p=39304

Twitter has been ordered by a U.S. federal judge to turn over documents related to several people involved with WikiLeaks to the Justice Department.

Tonight, a Twitter spokeswoman responded to a request for comment on the situation:

“We’re not going to comment on specific requests, but, to help users protect their rights, it’s our policy to notify users about law enforcement and governmental requests for their information, unless we are prevented by law from doing so. We outline this policy in our law enforcement guidelines.”

In an onstage interview I did with Twitter CEO Dick Costolo at a D@CES event last night in Las Vegas, he referenced the issue, but would not give any specifics.

While he said he could not talk about WikiLeaks specifically, he indicated that he disliked government mandates to keep things quiet and reiterated Twitter’s desire to connect people with useful information.

“We’re going to lash out at things that prevent us from doing that, as aggressively as we can,” said Costolo, who also used Twitter crackdowns in China as an example.

It might be a Herculean task to fight the federal government, which is aggressively going after WikiLeaks and its founder, Julian Assange.

Some Web companies, such as eBay’s PayPal unit, have cut off WikiLeaks.

On the other hand, Twitter took legal action to unseal the court order, which allowed it to inform those involved, giving them 10 days to object. Otherwise, the San Francisco microblogging service would have had to turn over information without the knowledge of these users.

There will surely be more of these to other Web companies, with obvious candidates being Google and Facebook.

The order from the U.S. District Court for the Eastern District of Virginia is ordering Twitter to fork over subscriber names, user names, screen names, mailing addresses, residential addresses and more of several people involved with WikiLeaks.

But you can read for yourself–here is the court order, as well as the unsealing order:

twitter1

twitter2

]]> http://allthingsd.com/20110108/twitter-responds-to-wikileaks-document-demand-by-feds/feed/ 10 http://allthingsd.com/20110106/will-the-real-facebook-shareholders-please-stand-up/ http://allthingsd.com/20110106/will-the-real-facebook-shareholders-please-stand-up/#comments Thu, 06 Jan 2011 22:35:29 +0000 Liz Gannes http://networkeffect.allthingsd.com/?p=2010 Who really owns Facebook?

The rich clients of Goldman Sachs, who are poised to grab a $1.5 billion piece of the company?

The venture investors, as well as Microsoft, who funded the social networking site when it was not the behemoth it has become?

Co-founder and CEO Mark Zuckerberg, who owns 25 percent of Facebook?

Of course they all do. But in the midst of this investor frenzy around Facebook, it is critical to keep in mind that the most important “owners” of Facebook are its 600 million users.

Not many of them have been invited to invest in the Goldman deal, but without their active support, uploading of all kinds of personal information and their friend networks, Facebook would be worthless.

Those users–whether or not they are being acknowledged by the company and the markets–are the real shareholders in Facebook.

And if they left, Facebook would become irrelevant. Such a thing has happened before (see: AOL). It’s Facebook’s contract with and service for those users that gives it that massive $50 billion valuation.

This particular deal might not be eyebrow-raising enough to get a ton of people up in arms, but it was specifically structured to consider Goldman investors a single entity, which some think is being done to circumvent shareholder limits that Facebook has historically avoided (although it does not have to any longer, as long as it goes public by the end of April of 2012).

But given the events of the last few years, the public and the government have developed an emphatic mistrust of tricky Wall Street accounting. It’s kind of a sore topic.

And potentially sorer still for Facebook and its consumer image. As the social network has no real competition in most regions and demographics, many users have developed a deep relationship with the service.

Facebook has tried to make its offerings be (and feel) egalitarian, but working hand in glove with Wall Street bankers to freeze out average investors is definitely not that.

Thus, it might be time for the company to think about who its most important constituents are.

Because the only thing that really matters in the long term is if users stick with Facebook or leave it behind.

Please see the disclosure about Facebook in my ethics statement.

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