When a group of powerful investors, including Silver Lake Partners and Andreessen Horowitz, waded into the mess at Skype less than two years ago with a $1.9 billion cash investment for a big chunk of the company, it was–how can BoomTown put this delicately–a hot mess.

With lawsuits flying over intellectual property violations, turmoil in the relationship with its eBay owners and increasing competitive pressures, you get the mess part.

But there was also the hot, because of so much potential in the fast-growing Internet telephony and video communications company.

Hotter today, it seems.

Microsoft–in what would be its most aggressive acquisition by the software giant in the digital space–is poised to announce that it will buy Skype, forking over $8.5 billion all in, which includes the assumption of the Luxembourg-based company’s debt.

Sources said that the splashy deal is now done and will be announced early this morning to much fanfare.

That is a far cry from 2009.

In fact, at the time that his newly hatched venture firm made its biggest deal yet, Silicon Valley legend Marc Andreessen was all sunshine and ponies about the just-settled tense legal situation.

As I wrote after talking to him then:

But, as Andreessen told BoomTown in a phone interview about the aggressive legal tactics of Niklas Zennström and Janus Friis that resulted in them finally seizing a stake in the Internet telephony giant by suing him and many other Silicon Valley players:

“We did not take it personally. It’s a clean sheet of paper.”

Well, it is actually a torn, stained and very worn out piece of paper, due to all the various machinations, but bygones!

Andreessen–who knows a thing or two about legal tussles, if you recall Netscape-Microsoft–said the real point is that it is time to focus on the business of Skype rather than fighting over who controls Skype.

“It’s really good to have everyone lined up and rowing in the same direction. We have to capitalize on the opportunity, because Skype is poised for a new wave of growth,” said Andreessen. “They have an amazing head of steam, because the logical way for voice and video communications to be conducted will be over the Web.”

It turns out he was right, given the haul that Andreesen Horowitz and other investors will be getting now.

The price tag essentially tripled the $2.75 billion valuation then. In fact, a year before, eBay had actually written down the value of Skype to $1.9 billion.

That means for its $65 million–it was reported then the Andresseen Horowitz stake was $50 million, but it was more–it will nail nearly $200 million.

That could be much more depending on what percentage of the deal the VC firm actually got.

Andreessen Horowitz’s stake is joined with Silver Lake, as well as the Canada Pension Plan Investment Board.

In total, they own about 56 percent of Skype, worth about $4.5 billion.

Another 30 percent is owned by eBay, which seems to have done a little better than even-steven for all its trouble with Skype.

It will get $2.4 billion now, having paid out about $3 billion back in 2005 for Skype. It got the $1.9 billion in the latest investor deal in 2009.

The big winners are Zennström and Friis, who keep on selling the same company to corporate moneybags over and over, while also suing anyone who looks at them crossways.

The Skype co-founders–who started out as Internet scofflaws with their Kazaa music-stealing service–had a 14 percent share, giving them $1.1 billion.

Like I said–not that I actually invest in any of these tech companies I cover–I’ll have what the lawsuit twins and Andreessen are having.

Back in 2009, in fact, he laid it out with regards to Skype pretty presciently.

“One of our investing mottos is that we invest in strength, not lack of weakness,” he said. “The question is how big is the opportunity.”

Big, apparently, now that Microsoft is footing the bill.

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.”

Allison Johnson, who has served as Apple’s vice president of worldwide marketing communications since 2005, is leaving the company, according to several sources.

The reason?

To co-found a new marketing and communications firm with another Silicon Valley communications luminary, Former Facebook PR exec Brandee Barker.

Sources said Johnson will begin work at the venture after negotiating her departure from Apple, which is likely to come sometime before the summer.

Beyond that, the details are slim. The new firm doesn’t yet have a name or a client list, although presumably answers site Quora and social buying service Groupon, two of Barker’s current clients, would sign on with the venture.

There’s no dearth of marketing and communications talent at Apple, but Johnson’s exit from the company is still notable.

She’s a seasoned and respected executive who came to Apple from Hewlett-Packard, where she managed public relations during the brutal proxy battle over HP’s acquisition of Compaq Computer. A former co-worker there once described her as “prime minister” of HP.

At Apple, Johnson has managed global advertising for some of the company’s most revolutionary products and the iconic ads for them. Those ads have been created by TBWA\Chiat\Day, which plays a powerful role at Apple.

Of course, this key part of Apple’s business is watched over closely by CEO Steve Jobs, to whom Johnson has reported directly.

In any case, Johnson’s departure is a loss for Apple, but quite a get for Barker and her new venture and a boon for Silicon Valley’s entrepreneurs.

In typical form, Barker said “no comment” when asked about the news. And an Apple spokeswoman declined to comment as well.

VentureWire reports today that Kleiner is taking a small stake in Facebook by buying as much as $38 million of stock from other shareholders at a valuation of $52 billion–a bit higher than the $50 billion price tag that Goldman Sachs and DST Global set when they recently invested $1.5 billion.

Kleiner, which made billions of dollars during the dot-com boom from early bets on Google, Amazon.com and Netscape, missed out on Facebook in 2005, choosing instead to stick with another social-networking site it sunk money into in 2003, Friendster. Since then, Kleiner has had to play catch-up to restore its reputation as one of the premier Internet investors.

Read the rest of this post on the original site »

How’d they do it? The obvious reason is that the two partners are incredibly successful entrepreneurs – Andreessen co-founded web-browser pioneer Netscape Communications Corp., hiring Horowitz as one of the company’s first product managers, and the pair founded software company Opsware Inc., selling it to Hewlett-Packard Co. for $1.6 billion. As a result, entrepreneurs trust their expertise, so they get access to the best deals.

Read the rest of this post on the original site »

Which might explain why the Onion has not one but two shows on TV right now, both based on the great stuff the satirists are already doing on their Web video site.

There’s SportsDome on Comedy Central, a beat-for-beat replication of ESPN’s SportsCenter. And starting tonight on IFC, there’s the Onion News Network, an uncanny amalgamation of News Corp.’s Fox News, Time Warner’s CNN, Comcast’s MSNBC et al.

Here’s a representative sample:

Snowy Conditions Proving Hazardous For Nation’s Idiots

I think it’s pretty great, but I’m a 100 percent biased observer, since I’ve been friends with some of the Onion crew for forever–think pre-Netscape. If you want a less objective take on the new show, you can check out this glowing New York Times review, or this measured one from Time.

Last week, I stopped by a promo for the show–a real/fake press conference starring the fake newsreaders, in character, moderated by Newsweek’s Jonathan Alter, who appeared as himself–and then sat down for a chat with Carol Kolb, a longtime Onion writer (and a pal–see above).

We talked in a makeshift green room set up at the very serious Paley Center for Media, and midway through, our conversation gets interrupted by the show’s cast. But that just makes it more real, right? If your coworkers aren’t cool with a few f-bombs, then this isn’t safe for work:

]]> http://allthingsd.com/20110121/backstage-at-the-onions-new-tv-show/feed/ 0 http://allthingsd.com/20101216/q-why-no-twitter-board-seat-for-kleiners-john-doerr-a-his-google-board-seat-plus-is-the-star-vc-looking-at-spotify-and-groupon-next/ http://allthingsd.com/20101216/q-why-no-twitter-board-seat-for-kleiners-john-doerr-a-his-google-board-seat-plus-is-the-star-vc-looking-at-spotify-and-groupon-next/#comments Thu, 16 Dec 2010 13:14:41 +0000 Kara Swisher http://kara.allthingsd.com/?p=38683

Yesterday, star venture capitalist John Doerr of Kleiner Perkins forked over $150 million in funding to Twitter.

At at $3.7 billion valuation, that got him a big chunk of the San Francisco microblogging site.

But what it didn’t get him was a seat on the board of Twitter, which many figured he would be given for after handing over so much moolah.

According to sources familiar with the situation, that’s due to Doerr’s being a director on another board: Google.

Several sources who BoomTown spoke to, after breaking news of the massive funding, said that his being on the board of the search giant was seen as too much of a conflict of interest.

A conflict because Google has plans to wade deeply into the social space. And also, of course, because it is the No. 1 potential acquirer of Twitter, as the Silicon Valley company seeks to gather more tools to fight its latest rival, Facebook.

Doerr has very deep ties at Google, having been on its board since mid-1999.

He got that seat, along with Sequoia Capital’s Mike Moritz, after he ponied up a critical $25 million equity round for Google in June of that year.

Interestingly, no other Kleiner partner was named to a Twitter board seat either.

But, some speculate, it might make sense for Mary Meeker–who just joined Kleiner to head up digital investing efforts, after a long-time stint as a Wall Street analyst for Morgan Stanley–to eventually become a Twitter director.

Meeker has, of course, deep IPO and M&A experience.

And, frankly, after adding Flipboard’s Mike McCue and former DoubleClick exec David Rosenblatt yesterday and former Netscape exec Peter Currie recently to its all-boy board band, a woman director might be a good idea to consider.

Other directors at Twitter include Benchmark Capital’s Peter Fenton, Union Square Venture’s Fred Wilson, Bijan Sabet of Spark Capital, Co-founders Evan Williams and Jack Dorsey and CEO Dick Costolo.

I reached out to Doerr for a comment, but he has not yet replied; Twitter declined to comment.

Even more interesting to consider is what Kleiner will invest in next after this mega-funding, given how aggressively many sources said Doerr had pushed to lead the Twitter round.

And, in fact, sources said that Kleiner is looking closely at new funding rounds for both the Spotify music streaming service and Groupon, the social buying start-up that recently decided to turn down a $6 billion acquisition offer from Google and an earlier $3 billion one from Yahoo.

Groupon is now seeking more funds to remain independent and hold onto its lead in the fast-growing local discounting market, sources said.

(Bloomberg also reported on Groupon’s new fundraising efforts, although it was written about after it turned down the Google offer.)

And Spotify, which is hugely popular outside the U.S., is trying to enter this market, but needs more funding to expand and perhaps strike better deals with music labels.

Both are the just the kind of companies Doerr has targeted in what looks like a serious effort to compete with other firms–especially Andreessen Horowitz and Russia’s DST Global.

They have garnered the heat Kleiner used to have, largely by backing more of the top entrepreneurs recently.

Doerr has already put money into social gaming phenom Zynga and also started an sFund for social-focused investments.

Add Twitter to the pile and you can see where this is headed: Except for the board seat, John Doerr will no longer be denied.

]]> http://allthingsd.com/20101216/q-why-no-twitter-board-seat-for-kleiners-john-doerr-a-his-google-board-seat-plus-is-the-star-vc-looking-at-spotify-and-groupon-next/feed/ 1 http://allthingsd.com/20101215/exclusive-twitter-raises-200-million-at-3-7-billion-valuation-adds-mccue-and-rosenblatt-to-board/ http://allthingsd.com/20101215/exclusive-twitter-raises-200-million-at-3-7-billion-valuation-adds-mccue-and-rosenblatt-to-board/#comments Wed, 15 Dec 2010 20:15:48 +0000 Kara Swisher http://kara.allthingsd.com/?p=38535

Twitter has completed its latest round of funding–$200 million at a $3.7 billion valuation–with Kleiner Perkins as the lead investor, according to sources familiar with the situation.

Sources said the San Francisco microblogging service is also adding two new board members: Flipboard’s Mike McCue and David Rosenblatt, who ran DoubleClick until a bit after it sold to Google.

Twitter recently added former Netscape exec Peter Currie to the board, as BoomTown previously reported.

A Twitter spokesman confirmed the funding and the board appointments, but declined further comment.

The moves are big ones for Twitter, which is moving fast to upgrade its management and business model under CEO Dick Costolo, who just posted a blog (see below) on the new funding and directors, titled “Meaningful Growth (although it was first curiously called, “Stocking Stuffers,” and was much funnier).

But, indeed, a big slug of cash will surely help the start-up’s expansion efforts and essentially declares it is not for sale to bigger companies such as Google (quite yet, that is).

As I reported last week, Kleiner partner John Doerr has been pushing hard to fund Twitter, beating out Russia’s DST Global.

Kleiner is the only new investor in the latest round, which brings its funding total to $360 million since it was founded about five years ago.

The storied Silicon Valley venture firm, which has been aggressively moving into the Web 2.0 space of late, put in $150 million, with the remaining $50 million coming from existing investors.

Past investors include Benchmark Capital, Union Square Ventures, Spark Capital and several other venture firms and angel investors.

Adding Currie, McCue and Rosenblatt are very strong choices for the board. Currie has deep financial and IPO experience, McCue is a well-connected and innovative entrepreneur and Rosenblatt brings much-needed online advertising heft.

As it happens, Costolo will appear at our D@CES event in January, where I am interviewing him and we can talk about all the changes.

(Thank goodness the funding is done, since I was worried about all those awkward pauses.)

Here is new version of Costolo’s blog post on McCue and Rosenblatt (the old one is below it for you to compare and contrast):

Meaningful Growth

In the past 12 months, Twitter users sent an astonishing 25 billion Tweets and we added more than 100 million new registered accounts. In that time, our team has grown from 130 people to more than 350 today. We’re thankful for every Tweet, every account, and every talented employee who has decided to join the Twitter team. This week, we’ve got some big news to share.

As part of a significant new round of funding with investor Kleiner Perkins Caufield Byers and existing investors, we’ve added two new members to Twitter’s board of directors. Please join us in welcoming Mike McCue and David Rosenblatt. The experience these new directors bring to Twitter, along with this renewed investment, will help us continue to grow as a company and business.

2010 was one of the most meaningful years since Twitter, Inc. was founded in 2007. We operate on a principle that people are basically good–when you give them a simple way to express this trait, they prove it to you every day. We’re proud of what Twitter users have accomplished, we’re proud of our work, and we’re very proud of our team. Thanks for being a part of this work; it means a lot to us.

Stocking Stuffer

Growth is fun. In the past 12 months, Twitter users sent an astonishing 25 billion Tweets and we added more than 100 million new registered accounts. In that time, our team has grown from 130 people to more than 350 today.

This week, we added two new members to Twitter’s board of directors who have strong experience running technology companies: Mike McCue and David Rosenblatt. Mike was the CEO of Tellme Networks, is currently CEO at Flipboard and also worked for Netscape and Microsoft (which acquired Tellme in 2007). David is the former CEO of DoubleClick and an ex-Google executive.

We also closed a significant new round of funding, with new investor Kleiner Perkins Caulfield Byers leading the round. KPCB brings to Twitter a track record of helping build great companies, ranging from Amazon to Zynga (get it? A to Z? See how we did that?), and a team with expertise in Internet, mobile and social platforms. The additional resources and expertise will be extremely helpful as Twitter continues to grow as a company and business.

Thank you to Twitter users everywhere for making 2010 such a good year.

]]> http://allthingsd.com/20101215/exclusive-twitter-raises-200-million-at-3-7-billion-valuation-adds-mccue-and-rosenblatt-to-board/feed/ 8 http://allthingsd.com/20101207/flipping-through-digital-pages-with-mike-mccue-video/ http://allthingsd.com/20101207/flipping-through-digital-pages-with-mike-mccue-video/#comments Wed, 08 Dec 2010 00:19:01 +0000 Ina Fried http://mobilized.allthingsd.com/?p=561 Although Flipboard is Mike McCue’s latest venture, in some ways it’s old hat. After all, if you loosely define Flipboard as a browser of sorts, it’s the fourth browser he has been involved with. (Paper Software, Netscape and Tellme were his earlier forays.)

McCue downplayed concerns that Flipboard appropriates others’ content. He said he gets more requests from publishers looking to share more content than from those seeking to have Flipboard include less stuff. He said that the company is looking to make money with publishers, not ride on their backs.

He also talked about the company’s current pilot program, in which publishers can work with Flipboard to customize their publications on the iPad app. (Disclosure: All Things Digital is part of Flipboard’s new publisher beta.)

Flipboard remains an iPad-only proposition, but McCue said the company is tinkering with other platforms in the labs, such as the iPhone. They haven’t worked with Android tablets, however, because that would mean hiring a bunch of Android engineers.

Below are some video highlights, but you can get even more of what McCue said by checking out Liz Gannes’s excellent liveblog.

]]> http://allthingsd.com/20101207/flipping-through-digital-pages-with-mike-mccue-video/feed/ 0 http://allthingsd.com/20101123/skyfire-launches-facebook-edition-for-android/ http://allthingsd.com/20101123/skyfire-launches-facebook-edition-for-android/#comments Tue, 23 Nov 2010 17:01:14 +0000 Liz Gannes http://networkeffect.allthingsd.com/?p=699 Skyfire, the innovative mobile browser maker that’s known for its dexterity with Flash video, is launching an upgrade to its Android app today focused on social sharing. Set to become available at 9 am PT in the Android Market, the company calls its 3.0 version “Skyfire Facebook edition.”

Making browsers social is a hot project these days. The Facebook-framed RockMelt browser, made by and backed by some of the people responsible for Netscape, launched to much fanfare earlier this month. However, it seems to me completely crazy that someone could launch a “social browser” in this day and age without a mobile component.

Skyfire helps fill that mobile-social gap with some nifty uses of the Facebook API. There are two notable new buttons in the browser, which are prominently displayed despite the small size of a mobile screen.

First, users can click from any Web page to see global popular Facebook Likes for that domain. So in the example portrayed in this demo video, you can see all the recent articles on the New York Times ranked by how much they are being shared by people on Facebook. This is similar to what many companies are doing around analyzing links shared on Twitter (for instance, I wrote about Gravity last week), but it’s rarer to see global analysis of Facebook. A spokesperson for Skyfire said this is based on public Facebook APIs, not a deeper partnership like what Bing has for its social search.

The other new Skyfire button is called “Fireplace,” and it’s a custom newsfeed for any user with only status updates from friends who included shared links. This is somewhat similar to what folks like Flipboard are doing, but without the fancy design. Fireplace breaks out a simple list of what your friends are reading and sharing so you can quickly flip through what they think is interesting.

The Skyfire Facebook edition also includes integration with Twitter and Amazon.

]]> http://allthingsd.com/20101123/skyfire-launches-facebook-edition-for-android/feed/ 2 http://allthingsd.com/20101108/heres-a-better-name-for-rockmelt-the-facebrowser-plus-boomtowns-two-dude-video/ http://allthingsd.com/20101108/heres-a-better-name-for-rockmelt-the-facebrowser-plus-boomtowns-two-dude-video/#comments Mon, 08 Nov 2010 17:08:02 +0000 Kara Swisher http://kara.allthingsd.com/?p=36906

At the end of this video interview with BoomTown about RockMelt–a new social browser that debuted in beta last night via yet another broken news embargo (thus, I have just joined the army of TechCrunch’s Michael Arrington on this irksome issue)–the two founders politely tried to gloss over my calling it a “Facebook browser.”

Except, um, it is.

Sure, as Eric Vishria and Tim Howes correctly note, there are Twitter and other news apps present. And I even like the mantra for RockMelt, which “re-imagines the browser around friends, feeds, and sharing.”

But that would be–for the most part right now–friends on Facebook, feeds from Facebook and sharing with Facebook.

In fact, the whole shebang is essentially–as you can see from the screenshots below–a big wet kiss to Facebook.

Still, RockMelt certainly could cause a bang, since it is funded by Marc Andreessen, via his venture firm Andreessen Horowitz–along with a passel of Silicon Valley luminaries such as longtime exec and mentor to the tech stars, Bill Campbell.

Andreessen, of course, is the legendary entrepreneur who invented the browser and founded the first commercial Internet company–Netscape–16 years ago. (He is also, coincidentally or not, on the board of Facebook.)

Still, with all its pluses, the Mountain View, Calif.-based RockMelt could have a hard time breaking through the crowded browser software market to reach consumers.

Microsoft now dominates the market with its Internet Explorer, followed by other big players, such as Google’s Chrome, Apple’s Safari and Mozilla’s Firefox.

While not the first browser focused on social networking–that would be Flock, which is still around–RockMelt is trying to distinguish itself using these now-popular and innovative services.

You sign on to it using Facebook, natch, and the friends you choose are arrayed down one side vertically, while news and other apps are on the other.

It’s built on Google’s Chromium open source technology, which makes RockMelt a truly Silicon Valley creation.

It will be interesting to see how RockMelt does with its powerful and myriad social connections, but until we find out, here are Howes (who once worked at Netscape) and Vishria talking about their plans:

And here are the screenshots of RockMelt (click on the images to make them larger):

]]> http://allthingsd.com/20101108/heres-a-better-name-for-rockmelt-the-facebrowser-plus-boomtowns-two-dude-video/feed/ 6 http://allthingsd.com/20101104/the-not-marc-and-ben-gp-aka-john-ofarrell-at-andreessen-horowitz-speaks/ http://allthingsd.com/20101104/the-not-marc-and-ben-gp-aka-john-ofarrell-at-andreessen-horowitz-speaks/#comments Thu, 04 Nov 2010 17:04:01 +0000 Kara Swisher http://kara.allthingsd.com/?p=36741

He’s not Andreessen and he’s not Horowitz, the pair of brand names of the high-profile Silicon Valley venture firm that just announced a new $650 million fund to add to their $300 million already at work.

But as quiet as John O’Farrell has been, he is the third general partner–and there are only three for now–of what seems to have turned into the hottest VC outfit of late.

Launched in mid-2009 by Netscape Founder Marc Andreessen and his longtime business partner Ben Horowitz, both have since made a series of splashy investments, written splashier blog posts and served on the splashiest–well, controversial–of boards.

O’Farrell just arrived to the party in late June.

But he had worked closely with Andreessen and Horowitz at Opsware executive, through some decidedly rocky times until they pulled off a remarkable recovery for the software company and sold it in 2007 to Hewlett-Packard for $1.6 billion.

The Irish-born O’Farrell–who has an interesting background in the cable business too–moved onto Silver Spring Networks, a smart grid start-up. He assumed he would remain an operating exec.

But when he got the call from Andreessen and Horowitz, he said he could not resist the offer.

Here is O’Farrell talking about the firm in a video interview BoomTown did earlier this week.

In it, note at the end how he is deftly answering–but not–a question I had about an investment it might make in Twitter:

]]> http://allthingsd.com/20101104/the-not-marc-and-ben-gp-aka-john-ofarrell-at-andreessen-horowitz-speaks/feed/ 0 http://allthingsd.com/20100510/post-legal-soap-opera-skype-ceo-josh-silverman-speaks/ http://allthingsd.com/20100510/post-legal-soap-opera-skype-ceo-josh-silverman-speaks/#comments Mon, 10 May 2010 15:30:52 +0000 Kara Swisher http://kara.allthingsd.com/?p=28207

Late last week, BoomTown sat down with Josh SIlverman, CEO of Skype, to get an update on the popular Internet telephony company.

When we last checked in with Skype, it had turned into the “Peyton Place”–look it up, kids!–of the online telecommunications arena, with lawsuits flying, venture capitalists getting slimed and a general tone of very purple drama.

But in November, settlement of the troubles came, as I wrote:

Silicon Valley legend and now VC Marc Andreessen was making the interview rounds after the settlement between the litigation-addled co-founders of Skype and all the various people they were suing was announced this morning.

He has been tight-lipped until now, due to the morass of lawsuits.

But, as Andreessen told BoomTown in a phone interview about the aggressive legal tactics of Niklas Zennström and Janus Friis that resulted in them finally seizing a stake in the Internet telephony giant by suing him and many other Silicon Valley players:

“We did not take it personally. It’s a clean sheet of paper.”

Well, it is actually a torn, stained and very worn out piece of paper, due to all the various machinations, but bygones!

Andreessen–who knows a thing or two about legal tussles, if you recall Netscape-Microsoft (MSFT)–said the real point is that it is time to focus on the business of Skype rather than fighting over who controls Skype.

“It’s really good to have everyone lined up and rowing in the same direction. We have to capitalize on the opportunity, because Skype is poised for a new wave of growth,” said Andreessen. “They have an amazing head of steam, because the logical way for voice and video communications to be conducted will be over the Web.”

That’s, of course, what Silverman–who has been running Skype since it was owned by eBay (EBAY) outright–wants to focus in on now.

While the e-commerce giant still owns a 30 percent chunk, Silverman is now trying to navigate Skype back to its disruptive and innovative roots, even as big telcos and Internet giants such as Google (GOOG) continue to aggressively compete head-on with it.

He’s doing that using a range of tactics to goose the service’s growth–from cheaper rates to more features to improving ease of use. Given that video is the big focus for Skype going forward, Silverman noted that the company is looking at all kinds of new ways to share presence.

Here’s the video of my interview with Silverman, which took place in San Francisco (although Skype operations are located all over the global map, including what will soon become a larger unit in Silicon Valley):

]]> http://allthingsd.com/20100510/post-legal-soap-opera-skype-ceo-josh-silverman-speaks/feed/ 1 http://allthingsd.com/20100504/lets-go-to-the-videotape-sb-nations-jim-bankoff-speaks/ http://allthingsd.com/20100504/lets-go-to-the-videotape-sb-nations-jim-bankoff-speaks/#comments Tue, 04 May 2010 15:30:55 +0000 Kara Swisher http://kara.allthingsd.com/?p=27973 While in Washington, D.C., recently, I paid a visit to Jim Bankoff, who is now helming a fascinating start-up called SB Nation, a fast-growing sports blog and news platform.

With over 200 individual communities, it’s a mix of professional and user-generated content aimed at engaging passionate fans.

A former AOL (AOL) exec, Bankoff (pictured here) has worked on such products as TMZ.com, Moviefone, MapQuest and Netscape, as well as its AIM and ICQ messaging offerings.

After that, he became a senior adviser to Providence Equity Partners.

SB Nation has raised about $13 million in total venture funding from Accel Partners, Allen & Company, Comcast Interactive Capital, as well as angel investors such as Ted Leonsis and others in Silicon Valley.

People familiar with the situation said SB Nation’s post-investment valuation, after its most recent round last summer, is about $30 million.

SB Nation has used its funding to grow like gangbusters, especially since Bankoff arrived in late 2008 as chairman and CEO.

While it has been around since 2003, founded by DailyKos’s Markos Moulitsas and others, the start-up has been aiming more at the sweet spot of local sports pages, especially as newspapers have become weaker.

Here’s the video of my interview with Bankoff, as well as a tour of its D.C. HQ:

]]> http://allthingsd.com/20100504/lets-go-to-the-videotape-sb-nations-jim-bankoff-speaks/feed/ 2 http://allthingsd.com/20091106/all-is-forgiven-its-a-clean-slate-says-andreessen-about-lawsuit-mad-skype-co-founders/ http://allthingsd.com/20091106/all-is-forgiven-its-a-clean-slate-says-andreessen-about-lawsuit-mad-skype-co-founders/#comments Fri, 06 Nov 2009 19:28:48 +0000 Kara Swisher http://kara.allthingsd.com/?p=20364

Silicon Valley legend and now VC Marc Andreessen was making the interview rounds after the settlement between the litigation-addled co-founders of Skype and all the various people they were suing was announced this morning.

He has been tight-lipped until now, due to the morass of lawsuits.

But, as Andreessen told BoomTown in a phone interview about the aggressive legal tactics of Niklas Zennström and Janus Friis that resulted in them finally seizing a stake in the Internet telephony giant by suing him and many other Silicon Valley players:

“We did not take it personally. It’s a clean sheet of paper.”

Well, it is actually a torn, stained and very worn out piece of paper, due to all the various machinations, but bygones!

Andreessen–who knows a thing or two about legal tussles, if you recall Netscape-Microsoft (MSFT)–said the real point is that it is time to focus on the business of Skype rather than fighting over who controls Skype.

“It’s really good to have everyone lined up and rowing in the same direction. We have to capitalize on the opportunity, because Skype is poised for a new wave of growth,” said Andreessen. “They have an amazing head of steam, because the logical way for voice and video communications to be conducted will be over the Web.”

Thus, Zennström and Friis now join the winning buyout group, Silver Lake Partners, Andreessen Horowitz and the Canada Pension Plan Investment Board, along with eBay, in owning Skype.

But Index Ventures, which was in, is–as Heidi Klum might say–out!

Under the terms of the agreement, Niklas Zennström and Janus Friis will take a 14 percent stake in the company they founded and then sold to eBay (EBAY), which will include an undisclosed investment by them.

I reported yesterday that the total was 13 percent–10 percent for the rights to key Skype technology held by the co-founders and the option to invest $83 million for three percent more.

In exchange, the pair will give Skype software essential to its operation and drop their various lawsuits against eBay and Skype’s buyers.

As for Zennström and Friis’s egregious use of the courts to grab their 14 percent stake in Skype, litigation they waged after losing their bid to buy Skype back from eBay, Andreessen was being very politic.

“We love working with aggressive founders and are in favor of founders being involved in their companies,” he said. “Great founders are not known for being shy and reserved. Look at Bill Gates. It’s not a question of personality, but of accomplishment.”

Noting that he had not worked with the pair before, Andreessen (pictured here) said, “We have a lot of respect for them. We think they’re geniuses.”

But, I queried, would he have used such tactics?

“It’s not a book club, it’s a super-serious, high-stakes game,” said Andreessen. “I don’t know; I’ve not been in the situation they’re in. If your goal in life is to avoid drama, this is probably the wrong industry for you.”

Perhaps, but I told him that I doubted even a battle-hardened entrepreneur like Andreessen would use the courts in such a manner to achieve business goals.

To each his own, said Andreessen!

“One of our investing mottos is that we invest in strength, not lack of weakness,” he said. “The question is how big is the opportunity.”

And, apparently, it is big enough to overlook all the drama that has gone on.

Andreessen said he expects to be more involved at Skype–which, with his $50 million investment, is the biggest deal in his $300 million fund–than other board members, noting different directors have different roles.

It’s a big board of 23, as I had previously reported. Zennström and Friis are each getting a seat.

“We are going to be helpful,” Andreessen said about his fund’s role at Skype. “We’re a company picker, looking for those that have the greatest potential.”

Andreessen, ever the diplomat, made sure to add that that also means doing business with Index, the member of his Skype consortium that departed as Friis and Zennström (pictured here) entered, due to stark tensions between the two sides.

“I have a lot of respect for [Index partners Danny Rimer and Mike Volpi] and expect to work with them a lot in the future,” said Andreessen. “In fact, I am talking to them today about two other deals.”

In other words, in Silicon Valley, the big wheel just keeps on turning.

]]> http://allthingsd.com/20091106/all-is-forgiven-its-a-clean-slate-says-andreessen-about-lawsuit-mad-skype-co-founders/feed/ 2 http://allthingsd.com/20090923/aol-readies-board-picks-for-spin-off-while-holding-off-search-suitors-plus-boomtown-director-picks/ http://allthingsd.com/20090923/aol-readies-board-picks-for-spin-off-while-holding-off-search-suitors-plus-boomtown-director-picks/#comments Thu, 24 Sep 2009 04:01:35 +0000 Kara Swisher http://kara.allthingsd.com/?p=18784

According to sources close to the situation, AOL has been busy selecting the board for the company, which is still set to spin itself off by year’s end–even as it slows down a decision on a new search deal with either current partner Google or a more emboldened Microsoft.

AOL is using Spencer Stuart in the search for directors, led by well-known headhunter Jim Citrin, sources said, and the company has already settled on several outside candidates.

The final board is likely to have about 10 members, and up to a dozen.

At least one of those seats will go to CEO Tim Armstrong, with one or two more claimed by its current corporate owner, Time Warner (TWX).

AOL and Time Warner made their own wish list of potential directors earlier this year, but some people are also lobbying the company to join the board.

BoomTown is working on discovering all those names, but sources added that the candidates being looked at are a mix of personalities culled from the media, advertising and Web worlds.

Among the key attributes: More presumably fast-forward and innovative Silicon Valley types that can help burnish AOL’s tarnished tech cred.

Here are some of my picks:

Facebook COO Sheryl Sandberg, Guitar Hero CEO Dan Rosensweig, WordPress founder Matt Mullenweg (actually, AOL should buy the start-up), eBay (EBAY) CEO John Donahoe, LinkedIn Chairman Reid Hoffman or CEO Jeff Weiner, Juniper Networks (JNPR) CEO Kevin Johnson, Netflix (NFLX) CEO Reed Hastings, and former AOL iconic exec Ted Leonsis.

And, just for fun, News Corp. (NWS) digital don (and ousted former AOL head) Jon Miller or former Yahoo President Sue Decker.

(I might also add former AOL exec, Netscape co-founder and all-around entrepreneur Marc Andreessen, but if he joins another tech/Web board, he is going to get splinters.)

That’s because Armstrong has set a strategy centered around the turbocharging of online content, powered by a more flexible platform and paid for by goosing AOL’s graphical advertising business.

This puts the online icon–once a powerhouse and now not so much, having operated inside Time Warner since its merger early in this decade–in more serious competition with Yahoo (YHOO).

Yahoo now dominates content on the Web, with powerful news, sports and finance sites, and has recently been trying to reinvigorate its brand. This week, it launched a new marketing campaign with the motto, “It’s Y!ou.”

Yahoo also recently struck a search technology and advertising partnership with Microsoft (MSFT), which has now aimed its efforts at AOL.

According to sources, Microsoft execs have been aggressively courting AOL to switch its search business from Google (GOOG).

The search behemoth has long been AOL’s partner in what sources at both companies said has been a productive and lucrative relationship.

Armstrong is also a former top exec at Google, which many at the company hope will further cement its chances.

And while the renewal of that deal does not officially need to be struck until late next year, sources add that Google has already prepared and offered what it considers an attractive new deal for AOL.

But, much to Google’s chagrin, with a focus on the spinoff and preparations for some more cost-cutting in the months ahead, AOL has decided not to accept it yet and is not likely to anytime soon.

While hedging the situation in a recent video interview with MediaMemo’s Peter Kafka, Armstrong has also recently met with Microsoft execs, sources said, who have discussed a number of partnership options with him, including a tighter relationship with its MSN content properties.

“There’s no need to rush, especially since there is already a lot on AOL’s plate,” said one source close to the situation. “And, since it has options, AOL is going to take time considering them.”

(For more on Armstrong’s thinking, here’s a link to another video interview I did with Armstrong while both of us were in Germany today, in which he talked about the ad market and AOL’s strategy, but was cagey about being more specific.)

Please see this disclosure related to me and Google.

]]> http://allthingsd.com/20090923/aol-readies-board-picks-for-spin-off-while-holding-off-search-suitors-plus-boomtown-director-picks/feed/ 0 http://allthingsd.com/20090814/musing-about-another-browser-with-a-famous-backer/ http://allthingsd.com/20090814/musing-about-another-browser-with-a-famous-backer/#comments Fri, 14 Aug 2009 07:10:58 +0000 Don Clark http://voices.allthingsd.com/?p=14388 Marc Andreessen’s name is not quite the household word in Silicon Valley it was in the mid-1990s, when he was a wunderkind at Netscape Communications fighting the browser wars against mighty Microsoft (MSFT). Still, the idea he might get involved in the same market more than a decade later is an intriguing thought.

A person familiar with Andreessen’s plans said he is an investor in a Silicon Valley startup called RockMelt that is working on some form of Web browser. Andreessen did not respond to requests for comment.

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