In a move that AllThingsD had previously reported was coming, Yahoo said it had laid off 2,000 employees, or 14 percent of the workforce.

“Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require,” said Yahoo CEO Scott Thompson in a statement. “Unfortunately, reaching that goal requires the tough decision to eliminate positions.”

While Yahoo has had periodic layoffs over the years, this one is its most significant in its history, and will also result in another large-scale restructuring of the management organization. More cuts are also likely to follow in the months ahead, due to the reshaping of Yahoo.

The latest employee action is being pushed by Thompson, who joined the Silicon Valley Internet giant in January from eBay’s PayPal unit.

“Change is never easy,” he wrote in an internal email to Yahoo employees (it is below in its entirety), in a well-worn cliché I am dead certain few appreciated hearing today from the top leader.

At an internal meeting with top staff last night, Thompson — who has gotten what seems to be a well-deserved reputation for chewing folks out at Yahoo — was more direct with the execs gathered, berating them extensively for not delivering and getting the company to this sorry point.

Ouch, Scott! It’s Easter, so it might be time for some forgiveness. (And no more ranting about my reporting to those inside Yahoo, since I have been 100 percent accurate so far. FYI, will aim for 110 percent next week!)

Yahoo said it will save about $375 million with the cuts, incurring a $125 to $145 million pretax cash charge for employee severance in its second quarter. Before the cuts, Yahoo had 14,000 staffers and has many thousands more hired as contractors.

The layoffs touch all units of the company, but the hardest hit is the product division, which is headed by Blake Irving, as well as its marketing, research and international units. Yahoo gave no details on the layoffs other than the number.

But the fate of two key parts of the soon-to-be-blown-apart unit — Yahoo’s advertising technology businesses, Right Media and APT, and its search business — is still being contemplated, as I have previously reported. Possible scenarios include a sale or a joint venture transaction for both, which employ thousands of Yahoo staffers.

The layoffs tomorrow are not the end of the road in cutting costs. Along with the likely shedding of its ad tech and search businesses, Yahoo leadership is also looking at future cuts as it evaluates current businesses, which could lop even more employees off its roster.

That said, Yahoo will be doubling down in some older and new arenas, so there would also be simultaneous hiring in the months ahead.

As wrenching as they will be today at Yahoo, the layoffs come as no surprise. Thompson had told employees in memos and also in recent meetings that “real change” was coming to the company.

Along with the trauma of the layoffs, Yahoo is also facing two other tense face-offs externally. In one, activist shareholder Third Point is waging a proxy fight for board seats and stepped up the public pressure this week; and Facebook struck back hard at Yahoo’s patent lawsuit with a counterclaim of its own.

After the layoffs tomorrow, sources say Yahoo will be announcing a new organization by next week. Thompson, along with outside consultants he has hired from the Boston Consulting Group, are making what appear to be profound changes.

Sources said that Yahoo will most likely be comprised of a global media division, one that encompasses Yahoo’s consumer products businesses and one focused on global and regional sales. There could also be a small organization of about 50 employees aimed at future innovation.

Americas head Ross Levinsohn is pegged to run the media arm, which will also include its leads/commerce businesses, such as autos; Shashi Seth — who now heads search and marketplaces — is likely to run consumer products, which will include Yahoo’s communications and search businesses.

Yahoo has already been conducting a search for a new worldwide sales head, who will also be boss of the U.S., Asia and Europe, Middle East and Africa sales regions. Rich Riley, who was recently running EMEA, is reportedly the pick for U.S. sales; Rose Tsou, who is running Asia, would presumably stay put; Yahoo is looking for an EMEA sales lead.

Some current operational execs — such as service engineering and ops head David Dibble, CFO Tim Morse, and top lawyer Mike Callahan — are likely to continue to operate as before.

One big question mark is how Chief Product Officer Irving fits in the possible new org, in which the new units get control of their product development. Irving has reportedly had several incoming job offers, although it is not clear if he has responded to that interest.

But today, the focus is on the layoffs and letting go all those employees, many of whom have worked at Yahoo for years. Even if it will result in a stronger Yahoo, as Thompson promises, it is still a very sad day in Sunnyvale.

Here is a video on the topic that I did with the WSJ.com “Digits” show today, after the cuts were announced early this morning:

Here’s the entire terse statement from Yahoo:

Yahoo! Statement

SUNNYVALE, Calif. — (BUSINESS WIRE) — Yahoo! today confirmed that it is taking important next steps to reshape the company for the future.

“Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require. We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose — putting our users and advertisers first — and we are moving aggressively to achieve that goal,” said Scott Thompson, CEO of Yahoo!. “Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo!.”

Yahoo! has a solid foundation — nearly 700 million users and thousands of advertisers that engage with Yahoo! properties regularly and trust the company with their data and their business. Through its restructuring efforts, Yahoo! intends to grow by responding more quickly to customer needs and competing more effectively in areas where it can win. Yahoo! has identified key parts of the business — a select group of core businesses, the platforms that support those core businesses, and the data that drives deep personalization for users and ROI for advertisers — where the company will intensify efforts and redeploy resources globally, all focused on increasing shareholder value. With a clear focus on profitability and growth, the company will be disciplined in its investments and radically simplify how it builds, launches and maintains many of its properties and products.

Today, the company will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or phased transition.

Yahoo! expects to realize approximately $375 million of annualized savings upon completion of all employee transitions. The company currently expects to recognize the majority of an estimated $125 to $145 million pretax cash charge relating to employee severance in its second quarter financial results. The company may incur additional charges in connection with this action. More information will be provided about Yahoo!’s future direction in conjunction with the release of its first quarter financial results on April 17, 2012.

And here is Thompson’s memo to employees, stating the obvious and with nothing new from previous statements and internal memos:

Yahoos –-

Today we are restructuring Yahoo! to give ourselves the opportunity to compete and win in our core business. The changes we’re announcing today will put our customers first, allow us to move fast, and to get stuff done. The outcome of these changes will be a smaller, nimbler, more profitable Yahoo! better equipped to innovate as fast as our customers and our industry require.

Over the last 60 days, we’ve fundamentally re-thought every part of our business and we will continue to actively consider all options that allow Yahoo! to put maximum effort where we can succeed. As part of this process, I believe we have to focus to win in a select group of core businesses globally:

Core Media and Communications: Our content, media, and communications experiences must be best in class. That includes getting today’s core properties right and innovating on a next generation of great product experiences across all screens.∙

Platforms: We must make our core platforms and systems a genuine strength for Yahoo! — platforms that we can really leverage to support our massive scale, drive the deepest personalization, and boost speed to market.∙

Data: Our massive data sets must become a genuine competitive advantage for Yahoo!. We have to unlock the value in our data to allow us to really understand our 700 million users, encourage and win their engagement and trust, leverage everything they do with us to more fully personalize their experiences, and to give our advertisers the immediate insights they are rightfully demanding.

We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose — putting our users and advertisers first -– and we are moving aggressively to achieve that goal.

Unfortunately, reaching that goal requires the tough decision to eliminate jobs, which means losing colleagues and parting with friends. Today, we will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or a phased transition. We value our people and for those who will be leaving, we thank you for all you have contributed to Yahoo!. We will treat all of our people with dignity and respect, providing resources to help manage through their transition.

Change is never easy. But the time has come to move Yahoo! forward aggressively with increased focus and accountability. Our values have always been about treating all Yahoos with dignity and respect, and today is a day to embrace those values. This is an amazing company with exceptionally talented people and I know we will all do our best to encourage each other through this difficult period of transition.

Scott

According to sources close to the situation, Yahoo’s massive round of layoffs — which is likely to impact up to 2,000 employees — is just the tip of the proverbial iceberg that will hit the storied Silicon Valley Internet giant in the months to come.

Sources said Yahoo is currently planning to announce the cuts in staff in the early morning, just as the markets open. That could change, of course, but the cuts will definitely occur within the next two days.

The layoffs, which will touch all units of the company, are expected to hit hardest in the product division, which is headed by Blake Irving.

But the fate of two key parts of the soon-to-be-blown-apart unit — Yahoo’s advertising technology businesses, Right Media and APT, and its search business — is still being contemplated, as I have previously reported. Possible scenarios include a sale or a joint venture transaction for both, which employ thousands of Yahoo staffers.

Also set to be hard hit are Yahoo’s local businesses, as well as its marketing and research divisions. While still sustaining losses, its media units will not be as badly impacted. And it’s not clear how many employee terminations will be aimed at the company’s general and administrative staff.

The layoffs tomorrow are not the end of the road in cutting costs. Along with the likely shedding of its ad tech and search businesses, Yahoo leadership is also looking at future cuts as it evaluates current businesses, which could lop even more employees off its roster.

That said, Yahoo will be “doubling down” in some older and new arenas, so there would also be simultaneous hiring in the months ahead.

But not tomorrow, which will be one of the tougher days in Yahoo’s long history of periodic layoffs. Newly installed CEO Scott Thompson had told employees in memos and also in recent meetings that “real change” was coming to the company.

That is indeed the case, which is causing massive strain throughout the company, which now employs over 14,000 and has many thousands more hired as contractors.

Along with the trauma of the layoffs, Yahoo is also facing two other tense face-offs externally. In one, activist shareholder Third Point is waging a proxy fight for board seats and stepped up the public pressure this week; and Facebook struck back hard at Yahoo’s patent lawsuit with a counter-claim of its own.

After the layoffs tomorrow, sources say Yahoo will be announcing a new organization by next week, which will create several major, soup-to-nuts units at the company. Thompson, along with consultants he has hired from the Boston Consulting Group, are making what appear to be profound changes.

Sources said Yahoo will most likely be comprised of a global media division, one that encompasses Yahoo’s consumer products businesses and one focused on global and regional sales. There could also be a small organization of about 50 employees aimed at future innovation.

Americas head Ross Levinsohn is pegged to run the media arm, which will also include its leads/commerce businesses, such as autos; Shashi Seth — who now heads search and marketplaces — is likely to run consumer products, which will include Yahoo’s communications and search businesses.

Yahoo has already been conducting a search for a new worldwide sales head, who will also be boss of the U.S., Asia and Europe, Middle East and Africa sales regions. Rich Riley, who was recently running EMEA, is reportedly the pick for U.S. sales; Rose Tsou, who is running Asia, would presumably stay put; Yahoo is looking for an EMEA sales lead.

Some current operational execs — such as service engineering and ops head David Dibble, CFO Tim Morse, and top lawyer Mike Callahan — are likely to continue to operate as before.

One big question mark is how Chief Product Officer Irving fits in the possible new org, in which the new units get control of their product development. Irving has reportedly had several incoming job offers, although it is not clear if he has responded to that interest.

Let’s hope that Yahoos who will be let go tomorrow find themselves with many new employment choices after the ax falls.

Yahoo is preparing to begin layoffs of what could be thousands of employees starting next week, according to multiple sources, and is then expected to announce a new restructuring of the company the week after.

The swirl at the Silicon Valley Internet giant has grown more intense this week, as new CEO Scott Thompson has brought in top management for a series of meetings both Tuesday and Wednesday to outline the plans.

What has emerged — although sources noted that Thompson and others communicating the pending changes said nothing was yet set in stone — is the picture of a drastically slimmed-down organization with a focus on media, advertising and new but unclear “future” initiatives.

First the layoffs: Sources said the cuts will be deep and mostly aimed at the product, research and marketing units of Yahoo, which are likely to take place Wednesday. The ultimate goal, said multiple sources, is to cut many thousands from Yahoo’s staff of close to 14,000 employees, which is actually much larger, due to contract workers not officially in its roster.

The entire cut will not take place at once, said sources, since Thompson and others are still trying to figure out how to dispense with its ad technology org and, potentially, its search business. He has been in discussions with both Microsoft and Google about this, although there are other possibilities, too.

Both these parts of Yahoo together have about 2,500 staffers, whose fate is not yet sorted out.

Also still baking is the new structure, although sources said it is most likely to be comprised of a global media division, one that encompasses Yahoo’s communications and search businesses, and ones focused on global and also regional sales. There could also be a small organization of about 50 aimed at future innovation.

Americas head Ross Levinsohn is the likeliest exec to run the media arm, while Shashi Seth — who now heads search and marketplaces — would be the obvious candidate for the the communications/search one.

Thompson has already been conducting a search for a new worldwide sales head, although one possible internal exec for the job could be Rich Riley, who was recently running Yahoo’s Europe, Africa and Middle East region.

It is not clear how Chief Product Officer Blake Irving fits in the possible new org, since much of the development could now move to the decentralized units.

Some current operational execs — such as service engineering and ops head David Dibble, CFO Tim Morse, and top lawyer Mike Callahan — are likely to continue to operate as before.

Thompson, along with consultants he has hired from the Boston Consulting Group, presented the possible plan in front of Yahoo’s senior execs on Tuesday. That was followed by more meetings with a wider range of top management yesterday, although Thompson was not as highly specific in these meetings.

In fact, according to a half-dozen sources, Thompson apparently grew somewhat testy in one of the gatherings, when asked if there was a strategy he was going to announce in more detail to the group.

(Dear Scott, these are very talented employees who love the company and who have been through the wringer and it’s not their fault that leadership has failed them, so it might be a good idea to treat them with as much respect as possible right now.)

More to come, obviously.

What is Yahoo?

While that has been the perennially unanswered question at the Silicon Valley Internet giant for many years, according to dozens of sources inside and outside the company, Yahoo’s leadership is now deeply embroiled in an intense — and sometimes very tense and fast-changing — debate over a number of critical issues about what is expected to be the most sweeping restructuring in its history.

Top executives at the company are conducting what is likely to be a lively all-day “offsite” meeting today (which is actually taking place on Yahoo’s Sunnyvale campus) to continue to discuss, among other things: How and where the company will make large-scale cuts in staff, which I have previously reported were coming and will perhaps be numbering in the thousands; which businesses to sell off and which to keep, including its ad tech unit; the correct structure for the reconfigured entity; and who will be left to run it all when it is all settled.

Also up for debate is the best course of a two-pronged effort — being led primarily by CFO Tim Morse and members of his corporate strategy team — to renegotiate its search and advertising partnership deal with Microsoft, while also engaging in active discussions with Google about it taking over Yahoo’s search business.

“Everything is on the table,” said one person. “And anything could be blown up by Scott.”

The Scott being referenced is new CEO Scott Thompson, who has become something of a whirling dervish since he arrived at Yahoo only three months ago from the top job at eBay’s PayPal unit.

If shaking up the place — as he has promised in public and internal statements, including a recent memo in which he wrote that “real change is coming” — was his aim, Thompson is certainly doing just that and more.

Along with immediately initiating a massive effort to figure out the best way to restructure the long-troubled and ever-meandering company and all that entails, Thompson has also been meeting players all over Silicon Valley for advice; stopping and then restarting negotiating discussions with Yahoo’s Asian partners, visiting major advertising clients; and engaging in talks with activist shareholder Dan Loeb about settling a looming proxy fight, while also packing the board with allies to help fend off said battle.

And, oh yes, he also took a little time out from his busy schedule to sue Yahoo partner Facebook for patent violations.

But the real action is the remaking of Yahoo in his image. To do so, Thompson has been furiously evaluating the entire company, with the help of Boston Consulting Group and a small group of execs, especially Morse.

While it is all still undecided, he seems to be leaning toward Yahoo as a drastically slimmed-down entity without a central product group and with a simplified structure that includes global units — such as media, commerce and sales organizations — which will again be in charge of the entire development of their offerings.

(I will note, since I have been covering Yahoo since near its founding, this is a structure that has been in place before. In other words, at least for dinosaurs like me, there is nothing new under the sun here.)

The changes being contemplated include, as I have written previously, the possible sale or drastic reconfiguration of its ad technology business, which will effect at least 1,000 employees. Another 1,500 involved in Yahoo’s search business will also be impacted, depending on talks the company has been having with Microsoft, as well as Google, about better monetization.

Such a structure brings up a lot of questions about how, and by whom, it will be run. To figure it out, Thompson has been evaluating — sometimes rather brusquely — his own top managers, as well as looking for new ones outside the company, such as a search for a chief marketing officer and other key positions.

Confused? Perhaps, but not for much longer, said multiple sources, as Thompson moves closer to delivering his answer to the what-Yahoo-is question.

Yahoo PR — by the way, it will not escape Thompson’s change machine, either! — declined comment.

It began: “Yahoos: A lot has happened since I last talked to you.”

You can say that again!

Yesterday, Yahoo CEO Scott Thompson sent out an email to the troops in what appears to be an attempt to soothe the company, which has been under a lot of stress, including more high-level exec departures, board changes and more. More importantly, the Silicon Valley Internet giant is nervously waiting for a restructuring expected to hit within weeks, and also has been unnnerved by Thompson’s aggressive legal attack on one of its key partners, social networking site Facebook.

Unfortunately, the memo didn’t say much, except vaguely but definitively referencing that even more tumult was coming.

After noting that he had been making a “deep dive” into the company after getting there at the beginning of the year, Thompson said that he was focused on “what makes Yahoo special and what doesn’t work.”

The plan then? To get the company to be “aggressive and lean forward,” because “real change is coming.”

Rut-roh.

(In a related move, but not noted in the memo — which several sources said was linked to all the uncertainty around the expected restructuring and also high costs — Thompson also cancelled Yahoo’s annual global sales meeting, which was to be held for about 1,300 advertising staffers in Florida later in the month.)

“We are moving as fast with real urgency to move back to Yahoo playing offense once again,” said the Thompson memo, which was read to me by several sources, because of increased worries about the company once again hunting for leakers.

(Apparently, like his predecessor before him did unsuccessfully early in her tenure, Thompson is on a yet another pointless hunt for those who talk to outsiders. Memo to Scott: Yahoo is an online media company and not a pay-for-that-used-iPad-on-eBay outfit and the peeps there like to share.)

Back to the memo action. “Were are fundamentally rethinking every part of our business and looking at all options to put maximum effort where we can succeed,” wrote Thompson. “I’m putting tons of pressure on my leadership team … so we can move faster and more deliberately.”

He added — and the bolding is his — “the changes we make will not be incremental ones. We will make bold, fundamental changes to what we do and how we do it.”

After properly freaking the Yahoo staff out — with everyone trying to grok exactly what that meant in terms of their jobs — Thompson then went into three core things the company was going to focus on under his rule (more bolding!):

“1) Focusing intently on those parts of the business that have a competitive advantage.

2) Liberating all of us to work faster and make better decisions.

3) Thinking really creatively about how to build new businesses that leverage our trusted relationships with users.”

Those will be applied, wrote Thompson, to five key parts of Yahoo: Its core business (such as the homepage and news); platforms (such as its cloud services and Yahoo Publishing Platform); data (which Thompson said was the “single most underrated, underappreciated and underused asset, also calling it a “cornerstone for the next generation” of Yahoo); international; and an amorphous thing he called “our future.”

About that, Thompson said Yahoo would “go beyond simply protecting our core assets … we will more than just tweak what we have today … to innovate, acquire and disrupt outside our core.”

Then, without giving any specifics at all, he noted that it’s as “important to know what we’ll do as how,” before launching into three “core principles” for the company, which were all in bold caps (this dude loves punctuating, which I can appreciate!).

They are:

“LISTEN, UNDERSTAND AND PUT THE CUSTOMER FIRST.

GET STUFF DONE.”

(Thompson also underlined “listen,” as well as bolding it, in an orgy of key-shifting.)

“I learned early in my career that innovative concepts without execution are of no value,” he then said, in a classic business-bromide tone. “The Yahoo of the future has to be the organization that consistently surprises the world by how much we get done and deliver to our customers.”

The letter did reference the patent-infringement lawsuit with Facebook at the very end.

“I want to point out that this lawsuit has one simple purpose: Protecting valuable assets of the company and its shareholders,” Thompson wrote. “Others have respected and have licensed our valuable innovations and Facebook must too.”

Thompson ended by noting that “my door is open.” It will be interesting to see who has the guts to walk through it today.

PeopleMatter said it has raised $14 million in a Series C funding, which was led by Morgenthaler Ventures.

The Charleston, S.C.-based software company, which focuses on hourly workers, said the new investment will be used for product innovation and customer-acquisition strategies.

Existing investors Noro-Moseley Partners, C&B Capital, Intersouth Partners and Harbert Ventures also participated in the round. PeopleMatter had previously raised $14.4 million, which brings its total funding to just over $28 million.

PeopleMatter competes with other online talent management firms, such as SuccessFactors, Taleo and Rypple, although those focus on career professionals. In contrast, PeopleMatter is aimed at service-industry workers, including food service, convenience store, hospitality and retail verticals.

The company’s offering allows organizations to manage applicant tracking, hiring, onboarding, training and scheduling processes. It is also launching a smartphone app this week that workers can use.

As I reported late last night, Yahoo said it had named PayPal President Scott Thompson as its new CEO. The exec is currently in charge of the large eBay online payments unit.

He’ll start next week, but there are staff conference calls today and also an all-hands meeting on Yahoo’s main Silicon Valley campus (meet at URLs, troops!) tomorrow.

Yahoo shares are down almost three percent on the news so far, as Wall Street has been hoping for a big sale of some sort and not another turnaround.

Yahoo will be holding a 7 am PT press conference about the move and presumably to swan around Thompson.

(Welcome, Scott! I hope you were informed — please do not listen to what co-founder Jerry Yang says on this important issue — that you are supposed to send all internal memos to me! Also, as one of my Twitter followers, Mike Dudas of Google just tweeted: “If Thompson leads companies as well as he grows a moustache, Yahoo made a great CEO choice!!” I concur.)

A Yahoo PR person confirmed the hire very cordially in a phone call early this morning and the Internet giant also put out a press release.

So did I, of a sort, last night. Given I am too tired to rewrite myself, here is what I had reported:

The company fired its last CEO, Carol Bartz, in September, and Yahoo has been run by the board and also by interim CEO Tim Morse, who had previously been its CFO.

After Bartz’s ouster, Yahoo said it was looking at a range of strategic options, including the possible sale of all or part of the company.

That was the focus at first, although Yahoo had simultaneously hired Heidrick & Struggles to look for a new CEO.

The company attracted two partial investment bids from private equity firms, Silver Lake and TPG Capital, but shareholders were unhappy with the low prices of these so-called PIPE — Private Investment in Public Equity — arrangements.

Yahoo then moved to try to strike a tax-advantaged deal with its long disgruntled Asian partners, China’s Alibaba Group and Japan’s SoftBank, to sell back parts of the large stakes it has long owned in Alibaba and Yahoo! Japan.

Those complex negotiations are still ongoing and look promising, which could yield Yahoo billions of dollars in capital to be given to investors, for stock buybacks or to invest in new initiatives.

Since then, the board — long considered one of the more cloddish in tech — has turned its attention to hiring a new CEO, in the hopes of trying once again to revive its flagging fortunes.

Thus, it began looking to hire someone with deep tech experience at a large public consumer Internet company in Silicon Valley.

That narrowed the field, with Yahoo looking at a range of choices with expertise in advertising, technology platforms and more.

There is a lot of that on the deep bench that eBay CEO John Donahoe has assembled at the online commerce giant, including Thompson.

Plus, he is a genuine Internet geek.

According to his eBay bio, Thompson became president of PayPal in early 2008, after serving as its CTO in charge of information technology, product development and architecture.

Before eBay, he worked at Inovant, a subsidiary of Visa formed to oversee global technology for the organization. He was also CIO of Barclays Global Investors and has worked at Coopers and Lybrand on information technology.

And here’s a tasty new wrinkle: Thompson recently “liked” Yahoo on his Facebook page, along with the decidedly more interesting Kickstarter and Splunk.

Again, Scott, thanks for the Facebook tip — I knew the social networking site could come in handy!

(Also, here is an interview I did with him post-announcement.)

And here is Yahoo’s official press release where Yahoo Chairman Roy Bostock says nice stuff about Thompson:

YHOO_News_2012_1_4_General

Twitter co-founder Biz Stone, who is now working on a new venture called Obvious, is taking some spare time to hang out with turkeys.

Stone, a well-known vegan, will be the special guest for the Orland, Calif., “Celebration FOR the Turkeys” next Saturday, which is being thrown by Farm Sanctuary.

According to its Web site, “Farm Sanctuary was founded in 1986 to combat the abuses of factory farming and to encourage a new awareness and understanding about ‘farm animals.’ At Farm Sanctuary, these animals are our friends, not our food.”

Thus, bird-lover Stone will lend his help to the laudable organization he has been supporting for a decade — as someone who loves turkeys, he says in the video, “just not to eat them.”

This is one of the funnier takes on Occupy Wall Street, looking at how various news organizations come up with headlines about the movement.

Funniest? The Huffington Post.

Enjoy:

Jared Grusd, AOL’s SVP of business development and chief of strategy, is leaving the New York Internet giant to work at Spotify, according to sources close to the situation.

At AOL, according to his bio, Grusd “oversees the organization responsible for all domestic and international strategic partnerships and commercial alliances for AOL and each of its operating units. He is also responsible for identifying and evaluating new corporate strategies and opportunities for the company.”

The marathon fiend and former Google exec — who held top legal-deal jobs there — also serves on AOL’s Executive Management Team.

It is not clear what the well-respected Grusd will be doing at the online music service, which has been expanding its executive ranks as it has moved aggressively into the U.S. market. But sources said it was a high-level position in New York.

Spotify recently hired former Clear Channel exec Gerrit Meier as GM of distribution and partnerships, reporting to U.S. head Ken Parks.

Spotify also just scooped up former AOL sales head Jeff Levick — another Google alum — as its chief advertising officer.

The departure of Grusd further thins out the exec ranks at AOL, which is still mired in a turnaround under the leadership of CEO Tim Armstrong (yes, he too is a former Googler!).

I lobbed a query into AOL PR for comment, and am awaiting news of my news.

It should probably come as no surprise to the board and top managers of Yahoo that the just-released annual poll of its workers — called the Yahoo Employee Satisfaction Survey — paints a picture of a deeply demoralized workplace.

Apparently, Yahoos can’t get no satisfaction.

The YESS questions went out to employees the week that the company fired CEO Carol Bartz, with most of the responses gathered in the ensuing weeks.

One major drop — not much of a shockeroo — was the employee assessment of senior leadership, under the question of whether “Yahoo is an effectively managed well-run organization.” That dropped 11 percent from last year.

Also troubling, according to numerous sources who have recounted the results to me, was that 19 percent of employees said they planned to leave the company within less than a year, in case a better opportunity arises.

(I like to call that the anywhere-but-here question.)

This is a large figure for any tech company for such a survey, which is commonly done throughout the industry. Typically, those numbers are around 10 percent, according to several human resources execs I queried, although Yahoo’s chart noted that the industry benchmark was 14 percent.

In any case, this YESS is Yahoo’s highest percentage of negatives for departure intent in several years.

Worse, it is higher in the product unit, where most of Yahoo’s engineers work and which is key to any technology company’s viability. Intent not to stay is 21 percent in the division.

On the plus side, numbers for manager effectiveness, teamwork and accountability did grow year over year in the product unit.

YESS documents sentiments I have been hearing widely and ever louder anecdotally from a plethora of mid-level managers at the Silicon Valley Internet giant.

Most are worried that they cannot hold onto critical employees as Yahoo is conducting a major strategic review of its businesses, either to sell it or make sweeping changes.

The uncertainty has put its employees on edge and there has been a spike in attrition throughout the company.

And worry. At a recent meeting with its staff, interim CEO Tim Morse was buffeted with questions about the fate of employee stock options and other similar issues.

Despite all the turmoil, Yahoo has surprisingly not yet put an overall new plan into place for retention, although it has given some employees more money and other benefits.

“Can a company collapse from attrition?” one exec joked to me recently.

Yes, it can, which has to be of prime concern to the board of Yahoo, as it seeks to right itself. I cannot stress enough how many talented and committed employees remain at the company, desperately hoping for some effective leadership to finally take hold.

Because for all the swirl of what will happen to the whole company, one truism of technology innovation in Silicon Valley remains, if you want to survive: It’s still all about the talent.

[UPDATE: Here are some more YESS stats, according to sources:

"Yahoo is innovative": 42 percent agree, 27 percent neutral, 31 percent disagree.

"Yahoo anticipates changing customer needs and wants": 33 percent agree, 37 percent disagree, five points worse than the previous year.

But here is the hopeful kicker: 79 percent feel proud to say they work for Yahoo.]

As happened last week to its centralized marketing division, Yahoo has broken up its Customer Advocacy organization, with its staff distributed to the various regions and the product unit of the Silicon Valley Internet giant.

Customer Advocacy has been led by EVP Jeff Russakow, whose fate is now similarly unclear as it is for CMO Elisa Steele, whose division was diced up to the regions last week.

Both execs — who were hired by fired CEO Carol Bartz — plan to remain at the company until at least January, sources said.

Russakow, according to his Yahoo bio, has had “global responsibility for all of Yahoo!’s customer support functions, including audience, small business, ad operations, and search network quality.” He came to Yahoo from previous jobs at Symantec and Adobe.

Interim CEO Tim Morse sent a memo to employees about the change, noting Russakow is looking for his next opportunity, using much the same language as Steele used in her internal email.

The moves are interesting, given Yahoo’s current effort to find a new strategy, which includes a possible sale of all or parts of the company. But there is also a strong sentiment within the company to reorganize around strengthening its advertising platform and products.

I have a call into Yahoo PR for comment (but let’s assume I am accurate about this, shall we?).

More, obviously, to come.

Yahoo turned in another weak performance in the second quarter, with yet another decline in revenue.

This time it was five percent, compared to last quarter’s six percent. In other words, at least things are looking up as they go down!

While earnings per share rose smartly, Wall Street is still looking for strong sales growth from the Silicon Valley Internet giant, which seems unable to provide it.

Blamed most this time for the revenue fall: Yahoo’s changes in its display sales operations in the key Americas region, reasons for which were largely unspecified in the initial company press release. (You can see the damage in this slide deck from the company here.)

Maybe Yahoo CEO Carol Bartz will explain it all in its upcoming conference call with analysts (or she could try the I-don’t-know approach taken by News Corp. CEO Rupert Murdoch in PhoneGate hearings in Britain earlier today!).

2 pm PT: It starts with the usual regulatory blah-blah, which I always enjoy.

Bartz gets right into it, opening with the key problems with China’s Alibaba Group, as well as its display and search revenue weaknesses.

The fight with Alibaba is over its Alipay payments unit, which was spun out of the Chinese company without Yahoo’s say-so. Yahoo is a big shareholder.

Bartz says that the company was working on a settlement night and day.

But she quickly gets onto how display did not perform as expected in its key Americas arena. “Obviously, I am not happy,” she said.

Obvi! Neither are shareholders, Carol.

She says it was not about new competitive development. It was not about the economy. It was not about engagement.

So what was it? Changes in its sales leadership and organization, says Bartz, which has included talent walking out the door in droves.

A lot more than Yahoo expected, but no surprise to anyone who has been paying any attention to the brain drain at the company.

Bartz promises a new approach to sales, part of its endless turnaround, which is beginning to feel like a digital version of “Waiting for Godot.”

Search revenue, though, says Bartz, was better than expected.

2:11 pm: CFO Tim Morse is on now, running through the numbers and the display shortfall in the Americas region.

“We simply did not have appropriate coverage,” says Morse, noting consumer products, tech and autos as weak spots in the advertising market.

Thank goodness, then, for the guarantees from search revenue in the Microsoft partnership deal.

More numbers and then it is back to Bartz to talk about search, which is going better than the last quarter, when it was the culprit for the revenue decline.

She says that Microsoft and Yahoo were working together to improve the issues.

“We’d like to be further down the road,” says Bartz about the goal of search revenue per search growth, as well as settling all the other problems, such as the Asian issues.

And, by further, I am presuming she means actual forward movement, which is what roads are actually for.

2:27 pm: Q&A time, the part of our program where Wall Street analysts do not ask the questions that need asking (and where I win fancy journalism awards for pointing this delta out!).

Therefore, Bartz is first thanked for providing “color” about the display disaster and is not asked about more specifics of the disaster itself.

The second question still does not get to it either, but she does note Yahoo’s sales force has to sell beyond “Gee, we’re big” and come up with better ad solutions.

“The issue is we did not have enough sales people in front of the big clients,” says Bartz.

That’s because all those former Yahoos are now working at Groupon, LivingSocial, Facebook and on down the line and now in front of big clients for those hotter companies.

2:34 pm: Question about its Asian assets. Yahoo’s talks with Yahoo! Japan and Alibaba are separate, says Bartz, although I would add that they have non-movement in common.

And also a question about Yahoo’s interest in the acquisition of the Hulu premium online video service.

Bartz winks verbally and says nothing, which translates into: Of course, it is interested.

More on the reasons for the display fall-off, which Bartz makes clear is not due to big competitive threats, but internal issues.

Maybe she’s saving big competitive threats as the reason for a revenue decline in the third quarter!

I look forward to the quarter I get the finger pointed at me for causing revenue to fall, due to my snarky posts.

Now, we are into softball questions about improvements in engagement. It’s up, but no one asks why Yahoo is still not doing anything very cutting edge in product innovation compared to competitors.

I believe Google has launched at least 14 new social networks since this Sunday, along with its strong quarterly performance last week. And Apple, well, blew away its quarter today as it is about to release more cool new stuff later this week.

And that might be the crux of the issue for Yahoo, which might not solve its woes by throwing a more focused sales army at the issue.

That’s because Yahoo’s products are simply not nearly has social as Facebook or even Google right now, which might be the true problem as old customers move on to new advertising solutions.

Whatever the reason, Yahoo clearly needs a refresh of its ad products and how it sells them, especially in its fast-growing mobile, video and communications products.

Bartz talks about getting better expertise, a tighter regional focus and other issues of going to market, which is perhaps something she might have realized many, many quarters ago.

After all, she’s been in charge for a while, and these issues are not new.

In fact, in an earlier quarter, Bartz was stressing “tentpole” events and anchor media properties and the power of the size of Yahoo as a selling point.

This was in April, in fact, in the first quarter of this year.

As I wrote then:

“CEO Carol Bartz excited was the Silicon Valley Internet giant’s traffic gusher for big tentpole events such as the Super Bowl and the Oscars. In fact, Bartz practically sounded like a gushy “Entertainment Tonight” flunky when talking to Wall Street analysts about Yahoo’s Oscar news, games and other offerings. She proudly noted the site’s efforts generated more than a billion pages views.”

Now big is out! Moving on!

The last question is another about Yahoo’s talks with its Asian partners.

“It’s complex,” says Bartz.

You can say that again.

While I was in Los Angeles recently, I was invited to a private screening of a documentary about the New York Times called “Page One: Inside the New York Times.”

The film, which debuted at the most recent Sundance Film Festival, opens Friday.

The documentary is by Andrew Rossi, who spent a year following reporters and editors at the famed newspaper, even as the media landscape shifted dramatically due to the impact of digital technologies.

Luckily for me, one of the movie’s principal characters — and I do mean character when it comes to him — is the Times’ quirky media columnist, David Carr.

I met Carr a dog’s age ago, when he ran “The City Paper” in Washington, D.C. He has only gotten more interesting over time, especially as the Web has transformed the news business.

Actually, wrecked the news business seems more the sensibility of “Page One” and also the audience at the screening, which largely bemoaned the troubles that quality papers have gotten themselves into in the age of the Internet.

Of course, the situation at the Times is a lot more complicated than that and there are some significant benefits to readers in the new paradigm, even if it did not help traditional media.

Carr winks and nods to both sides of the debate in the film — his attack on Web bad boy Michael Wolff over aggregation is priceless, even though he clearly loves the Internet’s thrilling possibilities, too.

As I have previously written, what is probably most interesting is that many of the stories covered by the Times in the film are about the technological forces that have put it and other traditional media organizations through the digital ringer in recent years.

Here’s the video of my interview with Carr — please, as I tried to, ignore his rant at the start about the Times’ failed talent raid on a defenseless little tech blog site! — as well as an exclusive clip and the trailer for the movie:

]]> http://allthingsd.com/20110615/ready-for-his-close-up-the-nyts-media-dude-david-carr-talks-about-page-one/feed/ 0 http://allthingsd.com/20110330/yahoo-hires-tim-parsey-as-head-ux-designer/ http://allthingsd.com/20110330/yahoo-hires-tim-parsey-as-head-ux-designer/#comments Wed, 30 Mar 2011 10:43:56 +0000 Kara Swisher http://kara.allthingsd.com/?p=42140

In an interview BoomTown did yesterday with Yahoo’s Chief Product Officer Blake Irving–the video of which will be posted later today–at the Silicon Valley Internet giant’s HQ in Sunnyvale, CA, he managed to actually give me some news to report: the hire of crackerjack user experience design head Tim Parsey.

Parsey’s title will be SVP of User Experience Design at Yahoo, which is now centralizing the important task, Irving said. Previously, in the 67-ring circus that has been Yahoo’s product organization, design was widely dispersed.

Parsey certainly has the cred in the industry, with stints at Apple, Microsoft’s entertainment and devices unit, Mattel and Motorola. Most recently, he was a principal at a Seattle-based design firm called shiftalliance.

The British native ran Apple’s design studio for five years in the early 1990s and and was the main dude behind Motorola’s freaky V70 switchblade mobile phone in 2001.

Best of all: Parsey was once responsible for Barbie, as you can read below from his bio from shiftalliance, which announced his departure several days ago on its site:

[Tim Parsey] co-founded shiftalliance to focus on higher order value creation in business. The company is built on three beliefs: 1. that higher order, or meaningful, value is the next value driver in mature markets; 2. that sustainable innovation needs to consider the whole business model and; 3. that establishing a people-centric continuous change process is critical for success in today’s markets .

Prior to shiftalliance, he served as Partner, User Experience (UX) Director, Xbox Design at Microsoft, where he led a 22-person team responsible for the design and development of a new technology-enabled paradigm of interaction and entertainment that would not disrupt revenue streams from the existing Xbox gaming platform and contribute to the business in a more strategic way.

Previously, at Mattel as VP, Consumer Products Design, Tim was responsible for the Barbie, Hot Wheels and Fisher Price brands (in all non-toy categories) across 45,000 sku’s contributing nearly $2 billion in revenue worldwide. His charge was to establish the strategic and creative vision, and evolve the culture from a traditional licensing to a ‘leveraged innovation’ and ‘marketed product’ based approach. Key components of this evolution were to establish the first design languages for Mattel brands; lead design innovation for cross-functionally conceived marketing platforms (product, entertainment/web and 360 degree marketing); and nurture the individual licensee businesses and 5,000 designers across the portfolio into a community motivated to share and innovate together, thereby driving the business evolution at an appropriate pace. Before that, as VP, Wheels Design, he led 45 toy designers to advance the Hot Wheels, Matchbox and Pixar CARS toy design businesses. Activities included establishing product and brand design strategies, evolving the toy teams and building the first licensed consumer products design team, all of which led to re-energized business growth. This experience was a planned opportunity to understand toy design and specifically play innovation, and led to the formalization of the first play design methodology for Mattel.

Prior to Mattel, Tim served as Corporate Vice President at Motorola, where he built and led the Consumer Experience Design (CxD) group for the Personal Communications Sector (mobile phones) from an established industrial design team of approximately 22 in the US to a multifunctional design organization of approximately 150 distributed. This journey that included developing design as a competitive advantage for the company began 5 years after the StarTac and led to the design of Razr, the most successful brand and product range to be informed by a design strategy called ‘rich minimalism’. At the time, approximately 100 cell phones a year were being designed with a broad range of derivatives for different markets and carriers. CxD was distributed across Asia, North America and Europe and included Advanced Design and Design Planning groups that fed advanced thinking and strategies into the User Interface, Industrial Design and Human Factors groups. Specific achievements included establishing a collaborative industrial and user interface design methodology with key carriers.

Before that, Tim served as VP, Product Design and Development for ACCO, a manufacturer of office supplies and Manager, Design Studio at Apple after working as staff designer at ID Two (now IDEO) and other leading design consulting firms.

And here is a video of him speaking at a TEDx event about a year ago:

]]> http://allthingsd.com/20110330/yahoo-hires-tim-parsey-as-head-ux-designer/feed/ 0 http://allthingsd.com/20110206/youve-got-arianna-aol-buys-huffington-post-for-315-million-in-cash/ http://allthingsd.com/20110206/youve-got-arianna-aol-buys-huffington-post-for-315-million-in-cash/#comments Mon, 07 Feb 2011 05:01:47 +0000 Kara Swisher http://kara.allthingsd.com/?p=40217

In a bold and definitive move, AOL is paying $315 million, mostly in cash, to buy the Huffington Post, one of the Web’s most prominent news and opinion sites.

As part of the deal, Huffington Post co-founder Arianna Huffington (pictured here)–who was derided by some when she co-founded the left-leaning site in 2005 with investor and well-known communications exec Kenneth Lerer–will become president and editor in chief of the Huffington Post Media Group within AOL.

The deal was signed late this afternoon, and the board of directors of each company and shareholders of the privately held Huffington Post have approved the transaction.

In an exclusive video interview BoomTown conducted earlier today in Dallas, just before Super Bowl XLV, both Armstrong and Huffington were jovial that the whirlwind deal, begun in November, actually worked out so quickly.

Perhaps giddy, they hit upon a common motto:

“One plus one equals 11.”

Get it? One and one next to each other is the number 11!

Let’s move on, shall we?

AOL said it is expected to close in the late-first or early-second quarter of 2011.

Once culminated, it will put Huffington in charge of all AOL content and other properties, including well-known names such as Engadget, Moviefone, MapQuest and TechCrunch.

She said she plans to move to New York from Los Angeles, although she will also maintain her longtime Brentwood home there.

And content for all these sites will be integrated deeply into the Huffington Post, giving it a huge new infusion of editorial material.

More to the point, the flashy acquisition–which essentially came together in less than two weeks in January–will become the linchpin of AOL CEO Tim Armstrong’s aggressive, if risky, strategy to focus the long-troubled company as a content and advertising powerhouse.

For AOL, the deal gives it a popular branded site that is very good at generating lots of page views and impressions very efficiently–which is the company’s whole thrust these days.

That means lots more ad inventory to sell and an injection of content talent, giving AOL the scale it desperately needs.

The move also obviously gives AOL a much-needed editorial identity and cohesion, which it doesn’t really have.

In fact, many think AOL needs a rallying point to bring clarity to its hodgepodge of recent acquisitions that all center on the notion that a strong company has yet to emerge in the premium content space.

Here is a mock-up of the front page of AOL tonight (click on it to make it larger):

While it all makes for a riveting narrative by the charming Armstrong, AOL still has not delivered the business turnaround promised after its spinoff from Time Warner in 2009.

Wall Street, which has given Armstrong a lot of rope, has become more impatient of late to see results–especially more robust increases in its display advertising business, as its access business dies off–after AOL spun off from Time Warner in 2009.

In its quarterly report last week, AOL reported earnings of 61 cents a share on revenue of $596 million.

But, as MediaMemo’s Peter Kafka wrote:

The bigger picture is that Armstrong’s turnaround is still in progress. Ad revenue was down 29 percent in the last quarter, although that number is worse than it looks. A big chunk of the decline comes from moves AOL has intentionally made that will cut revenue in the short run in return for more profitable sales down the road.

A more representative data set for Armstrong are his display ad sales, which are down 14 percent overall and eight percent in the U.S..

The bad news is that the rest of the Web ad industry is well into rebound mode; the good news is that AOL has trained Wall Street to expect numbers like these. If you’re waiting to see positive sales numbers, Armstrong said during AOL’s earnings call this morning, wait until the second half of this year.

In any case, the move is a good one for the Huffington Post since it will vault it to the next level of growth.

Other companies, such as Yahoo and NBC Universal, had looked at the company as a purchase target, and many expected it to eventually sell out to a larger company.

Sources close to the Huffington Post said that that outcome seemed the most likely, and the recent expansion of the site and its audience made it a good time to do a deal now.

Talks with Yahoo last year went nowhere, sources said, but Armstrong was not as slow to act.

Indeed, the actual deal happened quickly, said Armstrong and Huffington in a video interview with BoomTown earlier today (which you can see here).

The pair started talking in early November of last year at the Quadrangle Conference in New York and continued their discussions through the holidays.

Armstrong made the official offer to Huffington by phone in January, while she was at the World Economic Forum in Davos, Switzerland, and he was snowed in in New York.

Five time multiple to the Huffington Post’s upward of $60 million in expected revenue for the coming year, and nearly 10 times the $31 million for 2010, the offer was accepted quickly.

AOL used cash for $300 million of the purchase and $15 million in stock for the rest.

“The idea of turning a fire hose of traffic onto our content made enormous sense,” said one person close to the situation. “Everything is changing so fast, it seemed like the time was right.”

An IPO was also considered for the Huffington Post, sources said. But since the site only recently moved into profitability–although barely–such an event would have been farther out.

That’s despite the fact that the Huffington Post has seen fast-growing traffic and influence, spurred in part by Huffington’s larger-than-life persona in both the mainstream media and blogosphere.

The wide-ranging site–which has added a number of content areas in recent years beyond its flagship political offering–currently has almost 26 million unique monthly visitors, according to recent stats, moving in close range to established news organizations such as the New York Times.

That kind of success seemed unlikely when the Huffington Post launched on May 9, 2005, positioning itself as as a liberal counterweight to the popular right-leaning Drudge Report.

But the Huffington Post’s heady mix of celebrity bloggers, personality and voice, as well as aggressive curation of links from other sites, quickly caught on.

To fund its efforts, the New York-based online media company has raised $37 million from angel investors such as Lerer–the largest individual shareholder, followed closely by Huffington–and venture firms such as Greycroft Partners, Softbank Capital and Oak Investment Partners.

The growth has not been without controversy around issues such as lack of payments to bloggers who contribute and accusations that the site uses too much content from other Web sources when linking.

And Huffington herself has also been a lightning rod, which has been both positive and negative for the site.

But, there is no question she is one of the Web’s most prominent players, along with writing books, appearing on television frequently and being a fixture at high-profile events in New York, Los Angeles and Washington, D.C.

That includes a never-ending panoply of parties that feature a potent mix of movie stars, corporate poo-bahs, glad-handing politicians and lots of journalists from all over the media.

In fact, full disclosure, I was at one of those parties this past weekend for actor Colin Firth and others involved in the making of the Oscar-nominated film “The King’s Speech.” (Apropos of nothing, actor Helena Bonham Carter is as smart as you would expect, but much more delicate.)

As part of the AOL deal, CEO Eric Hippeau–who has been integral to professionalizing the business and will be joining Lerer Ventures–and Chief Revenue Officer Greg Coleman will leave the Huffington Post.

Ironically, Coleman was replaced by Armstrong as head of ad sales at AOL after he took over as CEO. Coleman got a big payout and will now apparently get another.

But the rest of the 200 Huffington Post employees are moving over to AOL with Huffington, who Armstrong hopes will be the company’s ace in the content hole going forward.

There are likely to be changes to come too at AOL, within weeks, especially in its content-side management and site staffs.

AOL provided some quotes in support of the deal from prominent Internet figures who know Huffington well.

“Arianna is one of the preeminent authors and editors of our time, and Tim has a remarkable track record of business success,” said Facebook COO Sheryl Sandberg. “Bringing them together creates tremendous potential for AOL.”

And Twitter co-founder Biz Stone said:

“Editorial vision and leadership are essential in order to transmute our shared cacophony of voices into a valuable dialogue. Arianna’s expertise, empathy, and entrepreneurial enthusiasm forms a kind of alchemy turning mere words and phrases into powerful expressions of humanity.”

Inter-Internet harmony: How sweet!

Here is the official press release, with all the details, but there is also an 8 am ET AOL conference call tomorrow:

AOL AGREES TO ACQUIRE THE HUFFINGTON POST

Acquisition Will Solidify AOL’s Strategy of Creating a Premier Content Network With Local, National and International Reach

Arianna Huffington To Lead Newly Formed The Huffington Post Media Group Which Will Integrate All Huffington Post and AOL Content, Including News, Tech, Women, Local, Multicultural, Entertainment, Video, Community, and More

The New Combined Media Group Will Reach 117 Million Americans and 270 Million Globally

Group Uniquely Positioned To Redefine the Future of Brand Advertising and Marketing For an Engaged and Influential Audience

New York, NY–February 7, 2011–AOL Inc. [NYSE:AOL] announced today that it has entered into a definitive agreement to acquire The Huffington Post, the influential and rapidly growing news, analysis, and lifestyle website founded in 2005, which now counts nearly 25 million unique monthly visitors*.

The transaction will create a premier global, national, local, and hyper-local content group for the digital age–leveraged across online, mobile, tablet, and video platforms. The combination of AOL’s infrastructure and scale with The Huffington Post’s pioneering approach to news and innovative community building among a broad and sophisticated audience will mark a seminal moment in the evolution of digital journalism and online engagement.

The new group will have a combined base of 117 million unique visitors a month in the United States and 270 million around the world**. Following the close of this transaction, AOL will accelerate its strategy to deliver a scaled and differentiated array of premium news, analysis, and entertainment produced by thousands of writers, editors, reporters, and videographers around the globe.

As part of the transaction, Arianna Huffington, The Huffington Post’s co-founder and editor-in-chief, will be named president and editor-in-chief of The Huffington Post Media Group, which will include all Huffington Post and AOL content, including Engadget, TechCrunch, Moviefone, MapQuest, Black Voices, PopEater, AOL Music, AOL Latino, AutoBlog, Patch, StyleList, and more.

“The acquisition of The Huffington Post will create a next-generation American media company with global reach that combines content, community, and social experiences for consumers,” said Tim Armstrong, Chairman and CEO of AOL. “Together, our companies will embrace the digital future and become a digital destination that delivers unmatched experiences for both consumers and advertisers.”

Armstrong continued, “Arianna is a singularly passionate and dedicated champion of innovative journalistic engagement, and a master of the art of using new media to illuminate, entertain and enhance the national conversation. Arianna is a remarkable person and she will continue to create remarkable outcomes for the combined company.”

“This is truly a merger of visions and a perfect fit for us,” said Huffington. “The Huffington Post will continue on the same path we have been on for the last six years–though now at light speed–by combining with AOL. Our readers will still be able to come to the Huffington Post at the same URL, and find all the same content they’ve grown to love, plus a lot more–more local, more tech, more entertainment, more finance, and lots more video. We are fusing a legendary and powerful new media brand with a vibrant, innovative news organization, known for its distinctive voice, a highly engaged audience, an expertise in community-building, and a track record for demystifying the news and putting flesh and blood on the data while drawing our audience into the conversation.”

Huffington continued, “By uniting AOL and The Huffington Post, we are creating one of the largest destinations for smart content and community on the Internet. And we intend to keep making it better and better.”

Kenneth Lerer, The Huffington Post’s Co-Founder and Chairman, said, “The Huffington Post team has created a potent brand with the proven track record of knowing how to grow traffic, inform and entertain its readers and build a one-of-a-kind online community. Add that to the powerful scale and resources of AOL and you have the perfect combination for today and the future. Together these two companies will be a premier online content provider. From local citizen reporting through AOL’s Patch, to The Huffington Post’s national reporting on politics, business and culture, consumers will have access to everything they want whenever they want it.”

AOL has agreed to purchase The Huffington Post for $315 million, approximately $300 million of which will be paid in cash funded from cash on hand. The Huffington Post is privately owned by its two cofounders, as well as a group of investors. The proposed transaction is subject to customary closing conditions, including receipt of government approvals. The boards of directors of each company and shareholders of The Huffington Post have approved the transaction. The transaction is expected to close in the late first- or early second-quarter 2011.

The Huffington Post over-indexes on educated, affluent users, reaching the key decision makers in C-suites around the globe. The Huffington Post speaks to this influential audience via a host of prominent voices on its group blog. Among those who have blogged on The Huffington Post are: President Barack Obama, Secretary of State Hillary Clinton, Mayor Michael Bloomberg, Larry Page, Diane Sawyer, Buzz Aldrin, Nora Ephron, Bill Maher, Madeleine Albright, Robert Redford, Katie Couric, Neil Young, Rahm Emanuel, Mia Farrow, Senator Russ Feingold, Senator Al Franken, Ari Emanuel, Harry Shearer, Senator John Kerry, Representative Nancy Pelosi, Madonna, Lawrence Summers, Jamie Lee Curtis, Ryan Reynolds, Craig Newmark, Alec Baldwin, Aaron Sorkin, Natalie Portman, Scarlett Johansson, Russell Simmons, Sean Penn, Bill Gates, Norman Lear, Charlie Rose, Elizabeth Warren, Tavis Smiley, Sheryl Sandberg, George Clooney, and former President Bill Clinton. And the audience speaks back, generating four million comments a month***.

The Huffington Post’s affluent, influential audience, that is growing at a rate of 22 percent (December 2009 vs. December 2010)****, when combined with AOL’s massive scale, video offerings and local expertise, will represent an incredibly desirable demographic for a broad range of advertising partners across the board.

And here is Armstrong’s internal memo to the AOL staff:

AOLers,

We are taking another major step in the comeback of AOL. Today we are announcing that we have agreed to acquire The Huffington Post, one of the most exciting, influential, and fastest growing properties on the Internet. We believe in brands, quality journalism, and the positive role of communities in the world–The Huffington Post shares our values and the combination of the two companies will create the premier global and local media company on the Internet.

Co-founded six years ago by Arianna Huffington and Ken Lerer, The Huffington Post has grown to become an industry leader–one of the Web’s most popular and innovative sources of online news, commentary, and information. Arianna and team have created a brand and a destination that focuses on the consumer experience. By combining The Huffington Post with AOL’s network of sites, thriving video offerings, local expertise and enormous reach, we will create a company that is laser-focused on serving our audiences across every platform imaginable–social, local, video, mobile and tablet.

The Huffington Post is core to our strategy and our 80:80:80 focus–80% of domestic spending is done by women, 80% of commerce happens locally and 80% of considered purchases are driven by influencers. The influencer part of the strategy is important and will be potent.

The Huffington Post is a strong influencer brand and it attracts a valuable audience, including a great focus on women’s content. In addition, Arianna Huffington is a world-renowned expert on women’s topics and issues, and has enabled The Huffington Post to grow rapidly by continually developing new audiences.

In the local area, the combination of the two companies will create a scaled connection between global and local communities on one platform. This will create a new way for people to get local and global information in a timely and entertaining way.

The Huffington Post will join the family of AOL Brands that are destinations for an influencer audience, brands like TechCrunch, Engadget, AutoBlog, and Moviefone. Uniquely, The Huffington Post is the platform for influential people–the people that drive trends, commerce, politics, entertainment, news, and information. Adding this strategic platform to our already strong network of sites, including the AOL homepage, has the potential to make AOL the most influential company in the content space.

Arianna Huffington is one of the most successful entrepreneurs in the Internet space and someone that is even more successful in building communities and relationships in every corner of the globe. The Huffington Post and Arianna have created a company that has partnered with the most successful and well-known leaders in all aspects of society that touch important topics to give consumers direct access to the most influential decision makers and community leaders.

This acquisition will create a high-quality and diverse digital ecosystem encompassing local, national and international news, politics, entertainment, technology, fashion, sports, health, personal finance, green, lifestyle, the arts and more. This deal will combine the amazing talent at AOL with the innovative and talented staff of The Huffington Post. Here are just a few high-level points around what this deal brings to market:

* Together, AOL and The Huffington Post will have 117MM unduplicated domestic monthly UVs, and ~270MM monthly UVs worldwide (according to comScore Dec 2010).

* The Huffington Post is one of the fastest growing web properties on the Internet. It grew 22% last year–that’s faster than Twitter, which grew 18% – and 15x as quickly as the Internet grew last year (comScore Dec ’09-’10).

* Both AOL and The Huffington Post count powerful, affluent users among their top loyal visitors, significantly over-indexing in $100K+ income users.

* AOL passed Hulu in unique viewers on video in the fourth quarter of 2010; video views on AOL are up 400 percent year-over-year.

* Between AOL’s innovative Project Devil ad unit, engaging users for 27 seconds longer than traditional display ads, and The Huffington Post’s highly-vocal community, with 4MM+ comments per month, we will marry attention-grabbing content and brand experiences for both advertisers and consumers.

In the local area, the combination of the two companies will create a premier global/local syndication network at scale. This will create a new way for people to get local and global information in a timely, informative and entertaining way.

To maximize the strategic advantage of this great deal, we will be creating a new group at AOL called The Huffington Post Media Group. Within this group will be AOL Media, AOL Local & Mapping, AOL Search and our new friends at The Huffington Post. We will continue operating the towns structure, AOL.com and HuffingtonPost.com.

I’m thrilled to announce that Arianna Huffington will join AOL’s executive team as President and Editor in Chief of The Huffington Post Media Group. We have asked Jon Brod to lead the overall operational integration on the AOL side of the combined entities. Jon will lead the local group integration and work closely with David Eun and the teams in AOL Media. We will work quickly with The Huffington Post to create a combined organizational design to coincide with the deal closing. While we wait for the required regulatory reviews to be completed and the transaction to close before implementing the design, we will move very quickly to plan the details of the integration of the two companies. To this end, we will announce the new organizational structure as soon as possible.

In the meantime, we will continue creating great content and products for our consumers within the town structure and stay laser-focused on the aggressive goals we have set for our winter luge. We are on the right track and will continue our weekly operating cadence and town structure to drive successful results against our company goals.

Here’s a special message for all of you we taped to welcome The Huffington Post and Arianna to our AOL Family:

http://today.office.aol.com/company-news/2011/02/aol-agrees-buy-huffington-post

And of course we wanted to welcome Arianna to our “You’ve Got” video of the day–check her out on AOL.com.

We will be holding a company all hands meeting to address your questions related to today’s exciting news. We will video conference from our New York office on the 6th Floor at 9:30 AM ET and will be joined by Arianna Huffington and key executives from her organization. We will also be holding a call for our west coast offices at 2:00 PM ET and for our Patch offices at 2:45 PM ET. See below for meeting info (conference rooms will be sent out shortly).

AOL is playing to win…and The Huffington Post and AOL will occupy a unique place in the future of the Internet. Let’s go get it done.

–TA

(More full disclosure: As has been previously reported by MediaMemo, All Things Digital had the briefest and most preliminary of discussions with Armstrong about moving to AOL last year, while exploring several other options. All’s well that ended well: We stayed at Dow Jones, which is owned by News Corp.)

]]> http://allthingsd.com/20110206/youve-got-arianna-aol-buys-huffington-post-for-315-million-in-cash/feed/ 22 http://allthingsd.com/20110124/mastercard-appoints-new-head-of-mobile-payments/ http://allthingsd.com/20110124/mastercard-appoints-new-head-of-mobile-payments/#comments Tue, 25 Jan 2011 00:01:55 +0000 Tricia Duryee http://emoney.allthingsd.com/?p=1910 MasterCard Worldwide has appointed Mung-Ki Woo to the position of Group Executive of Mobile. Woo will be responsible for commercializing and developing mobile payments for MasterCard around the world. Most recently, Woo was VP of Electronic Payments & Transactions at France Telecom, where he led the “Orange Money” mobile payment program, which was commercially available in several African countries, and deployed Orange’s mobile contactless payment services in Europe. Before that, he was CTO of a French interbank organization that specialized in electronic money systems.

]]> http://allthingsd.com/20110124/mastercard-appoints-new-head-of-mobile-payments/feed/ 0 http://allthingsd.com/20110113/topsy-hands-out-real-time-search-widgets/ http://allthingsd.com/20110113/topsy-hands-out-real-time-search-widgets/#comments Thu, 13 Jan 2011 16:00:52 +0000 Liz Gannes http://networkeffect.allthingsd.com/?p=2327 Real-time search engine Topsy today is launching customizable widgets for publishers to display topical tweets.

The company’s “social modules” dynamically populate with fresh content on any topic.

So, for instance, a news organization could automatically input the tags associated with its articles into a module, and on each page it would show relevant tweets about similar topics (and not just lame redundant retweets of the article itself, like you often see).

Or a site could show a live-updating widget that displays its most tweeted articles that day. Publisher IDG is already using the modules on some of its sites.

Anyone can create a self-service module, and Topsy will offer premium features such as analytics and revenue-shared advertising. Content within the modules is automatically filtered for profanity and language preference.

You might ask why Topsy and its random blog widgets are important. For one thing, Topsy is among the few independent players remaining in real-time search, with OneRiot pivoting to focus on ads, and Ellerdale acquired by Flipboard. Twitter does have its own search service, but it stores only a week of tweets at a time.

Topsy organizes its index of eight billion tweets using social signals, such as figuring out which accounts on Twitter are influential and which tweeted links are important, something Google and Bing are only starting to do. That’s a change from the dominant PageRank mindset, where a parent domain carries a certain weight without differentiation for all the different people who have accounts on it, from influential authorities to spammers.

And while it’s true that few Web pages need any more widgets than they already have, prominent tech publishers like Business Insider and TechCrunch use Twitter sidebar widgets from PostUp (formerly TweetUp) that show a rotation of promoted accounts. A more timely and dynamic alternative like Topsy Social Modules might be more useful.

]]> http://allthingsd.com/20110113/topsy-hands-out-real-time-search-widgets/feed/ 0 http://allthingsd.com/20110113/weathering-the-storm-rim-makes-its-business-case-in-boston/ http://allthingsd.com/20110113/weathering-the-storm-rim-makes-its-business-case-in-boston/#comments Thu, 13 Jan 2011 15:11:48 +0000 Ina Fried http://mobilized.allthingsd.com/?p=2394 Mobilized is trudging through the snow in Beantown Thursday to hear Research In Motion talk about its plans for the enterprise. RIM is set to talk about why businesses should bet on both the BlackBerry and the forthcoming PlayBook tablet.

The event, at the Marriott Copley Place downtown, is just getting under way. I won’t bore you with every detail, but will post whenever things get interesting.

In the meantime, enjoy this take on Angry Birds for the BlackBerry.

Update, 10:17 am ET: The intro is still going on. RIM Vice President Alec Taylor is talking about the Cuban Missile Crisis for some reason. However, RIM was nice enough to pass out slides for the whole day. Here are some of the highlights:

BlackBerry Mobile Voice System
Launching in early 2011, this is an update to RIM’s effort to unify the desk and mobile phone, offering a single identity, voiceover Wi-Fi calling, a single voicemail box, dialing office extensions and more. RIM says the new version will support more types of business phone systems.

Other features coming later this year include automatic hand-off from Wi-Fi to mobile networks, a “move call from desk” feature and more.

BlackBerry Balance
A new effort to support mixing personal and corporate data on the BlackBerry. RIM is adding features such as the ability for IT to choose to wipe only corporate information from a device or to limit users from cutting work data and pasting it into a personal application or email. Other features include warnings when sending emails or calendar invites outside of the organization, the ability to encrypt media cards and options for preventing access to work data by third-party applications.

BlackBerry client for Microsoft SharePoint
Launching in early 2011, this will bring data from Microsoft’s portal software directly to BlackBerry handhelds. It will work with both the 2007 and 2010 versions of SharePoint and integrates into a number of BlackBerry programs, including E-mail, calendar, Documents To Go and the browser.

PlayBook
As for the forthcoming tablet, RIM says it will ship with 1GB of memory, have 16GB, 32GB or 64GB of flash memory, include a 3-megapixel front-facing and 5-megapixel rear-facing camera and have micro USB and Micro HDMI ports. (I can’t remember if they have said all of that before.) The slides say only that it will ship this quarter and will be “competitively priced,” reiterating past company positioning.

According to the slides, the company also plans to talk about cloud-based device management and changes to allow one BlackBerry server to support multiple corporations.

10:35 am ET: The Cuban Missile Crisis is apparently over, and VP Pete Devenyi is now outlining the company’s business product road map and making the pitch for its strategy.

“We really do have a great story,” he says, noting that the enterprise is different from the “arms race” of the consumer market.

“It’s not just about the number of apps in App world,” he says, noting that businesses can and are building programs just for use within the corporation. Some businesses, he says, have hundreds of internal apps, none of which show up in the public storefront. BlackBerry, he says, also allows businesses better control than rivals over what programs are on a worker’s device. For example, Devenyi says, when workers change groups within a company, the programs they have access to can be updated automatically with programs deleted and added from their devices.

“That kind of power is power that no one else has,” he says. “We don’t read about that much.”

10:43 am: In addition to both the paid BlackBerry Enterprise Server and the slimmed-down free “Express” version of the server, RIM plans to launch an email system aimed directly at small-to-midsize businesses–MDaemon Messaging Server, BlackBerry Edition. The idea is to give smaller businesses a full email server that has full BlackBerry support. The product stems from an acquisition RIM made a year or two ago and offers what RIM says are features similar to Microsoft’s Exchange Server but at a fraction of the price.

The company is also launching “very, very soon” a modest update to its flagship server product, BlackBerry Enterprise Server 5.0.3. It will add more support for employee-owned devices (including the BlackBerry Balance feature described earlier), support for encrypted attachments and certification for Microsoft’s Office Communications Server 2007 R2 and the latest version, known as Lync 2010.

11:18 am: RIM is launching yet another server this year, known as the BlackBerry Enterprise Application Middleware (BEAM). BEAM, which companies would have to buy in addition to their BlackBerry email server, aims to streamline enterprise content for use on a BlackBerry. ‘What that results in is a much more efficient application than you would otherwise have,” Devenyi says. It’s in beta now, he adds.

11:25 am: BlackBerry is launching its equivalent of Find My Phone, known as BlackBerry Protect, which will allow individuals to remotely wipe or post a message if a device is lost. Protect will launch later this year, Devenyi says.

Finally, the company is talking about a number of changes it is making to the core BlackBerry Enterprise Server so that it can run via the cloud. Launching later this year, RIM will have the ability for its server product to be remotely hosted and support more than one business. It’s not clear yet if this will be RIM offering BlackBerry as a cloud-based service or if this is a product for hosting partners, though it sounds more like the latter.

11:32 am: Devenyi told Mobilized that the company is just showing the architectural changes it is making, not saying how it will bring the cloud-based capabilities to market. “We’re still working through a number of those details ourselves.” Devenyi said. “It could be both, but we are not announcing.”

11:42 am: On to the PlayBook finally. Senior Product manager Ryan Bidan gives the spiel. He says there is a lot that the company isn’t ready to share. Addressing concerns around battery life, Bidan notes the PlayBook has a 5300-miliamp battery, but doesn’t give specifics on how much battery life that will translate to.

“We’ll have good battery life,” he says. “Don’t worry about the battery life.”

Other details:
Software updates will be pushed down to the device on an ongoing basis. There will be a version of App World on the device for downloading developer-created programs.

And with that, the formal part of the event is over.

]]> http://allthingsd.com/20110113/weathering-the-storm-rim-makes-its-business-case-in-boston/feed/ 0 http://allthingsd.com/20101130/yahoo-layoffs-coming-december-13-and-not-this-week-though-its-still-bad-news/ http://allthingsd.com/20101130/yahoo-layoffs-coming-december-13-and-not-this-week-though-its-still-bad-news/#comments Tue, 30 Nov 2010 23:16:13 +0000 Kara Swisher http://kara.allthingsd.com/?p=37806

This will be short and–considering the topic–bittersweet.

Despite a report in TechCrunch saying layoffs at Yahoo might be imminent, previously reported termination of employees in its product unit will not take place this week.

Actually, according to sources familiar with the situation, they will take place in about two weeks, around December 13th.

As BoomTown previously reported earlier this month, the cuts in staff will total about 10 percent and be almost completely centered on the product organization under Chief Product Officer Blake Irving.

That would mean layoffs of about 650, since that part of Yahoo has about 6,500 employees.

In addition, said sources, the layoffs might result in the outsourcing of some functions at the company.

The move will surely be yet another blow to morale at the much-buffeted Silicon Valley Internet giant.

Google recently gave each of its employees a 10 percent pay raise and $1,000. Facebook, similarly, is showering benefits on its fast-growing pool of workers.

Yahoo currently has just over 14,000 employees. It has undergone many restructurings and layoffs.

]]> http://allthingsd.com/20101130/yahoo-layoffs-coming-december-13-and-not-this-week-though-its-still-bad-news/feed/ 1 http://allthingsd.com/20101122/googles-android-kingpin-andy-rubin-will-open-d-dive-into-mobile-plus-one-more-surprise/ http://allthingsd.com/20101122/googles-android-kingpin-andy-rubin-will-open-d-dive-into-mobile-plus-one-more-surprise/#comments Mon, 22 Nov 2010 14:01:02 +0000 Kara Swisher http://kara.allthingsd.com/?p=37564

While everyone is considering whether to brine or deep-fry the turkey this week, All Things Digital HQ will be busy with our preparations for D: Dive Into Mobile.

That includes setting the program, which takes place in two weeks and will open with an evening interview with Google’s Andy Rubin (pictured here).

As the search giant’s mobile chief and principal force and creator of its Android operating system, Rubin is responsible for the ongoing development of the major rival to the Apple iPhone.

Many have challenged Android, including a recent jab from Apple CEO Steve Jobs, questioning its overall experience and whether or not it’s actually open.

Nonetheless, Rubin and Android have proven to be a disruptive and fast-growing force in the mobile space, aiming for dominance akin to Microsoft’s on the desktop.

Ironic? Yes.

Rubin started as an engineer at Apple and later worked at General Magic, where he participated in developing Magic Cap, an operating system and interface for handheld devices. When Magic Cap failed, Rubin joined Artemis Research, founded by Steve Perlman, which became WebTV and was eventually acquired by Microsoft.

After several years, Rubin left to found another smartphone effort called Danger, which was also acquired by Microsoft, in 2008.

Disillusionment with his ouster as CEO of Danger motivated him to found Android, which was later acquired by Google.

Now, it seems Rubin is poised to make good on his first efforts at making a truly smart smartphone ubiquitous.

And he is only one of many of the industry heavyweight speakers at D: Dive Into Mobile, among them: Dan Hesse, president and CEO of Sprint Nextel; Mike Lazaridis, co-CEO of Research in Motion; Mike McCue, CEO of Flipboard; Joe Belfiore, vice president of Windows Phone Program Management at Microsoft; Jon Rubinstein of Palm, now owned by Hewlett-Packard; Foursquare CEO and co-founder Dennis Crowley; Google advertising czar Susan Wojcicki; and Glenn Lurie, president of Emerging Devices for AT&T.

Plus, there is also one more big speaker we’ll be announcing soon, so stay tuned.

D: Dive Into Mobile will be held at the Ritz-Carlton in San Francisco on December 6 and 7.

It represents the very first brand extension of our flagship D: All Things Digital conference, now in its ninth year of grilling the big names in tech and media to sold-out analog audiences and scores more on the Web.

And, as always, there will be no PowerPoints, no panels and definitely no pontificating. What there will be are unrehearsed, unscripted and unexpected interviews, where real news is often broken.

But, unlike big D, D: Dive Into Mobile is topic-focused, drilling down deeply into the ubiquity of mobile technology and devices, and its implications for brands, organizations and consumers worldwide.

Along with Walt Mossberg and me, Mossberg Solution’s Katherine Boehret and MediaMemo’s Peter Kafka will be conducting the interviews.

As usual, we’ll be liveblogging the whole thing and also posting highlight videos.

But there’s nothing like being there, so you can sign up for the D: Dive Into Mobile conference here.

]]> http://allthingsd.com/20101122/googles-android-kingpin-andy-rubin-will-open-d-dive-into-mobile-plus-one-more-surprise/feed/ 1 http://allthingsd.com/20101111/adding-insult-to-injury-yahoo-is-prepping-layoffs-but-limited-to-product-group-and-more-like-10-percent/ http://allthingsd.com/20101111/adding-insult-to-injury-yahoo-is-prepping-layoffs-but-limited-to-product-group-and-more-like-10-percent/#comments Thu, 11 Nov 2010 22:40:06 +0000 Kara Swisher http://kara.allthingsd.com/?p=37165

Yahoo is indeed preparing to lay off employees, in a reduction in force that will be done in December.

But the layoffs, first reported in TechCrunch at 20 percent, will be closer to 10 percent and be almost completely centered on the product organization under Chief Product Officer Blake Irving, said sources close to the situation.

That would mean layoffs of about 650, since that part of Yahoo has about 6,500 employees.

Yahoo, in fact, just put out a statement saying the 20 percent figure was “inaccurate.”

Said the company in a statement: “Yahoo! is always evaluating expenses to align with the company’s financial goals. However, a 20% reduction in Yahoo’s workforce across the board is misleading and inaccurate.”

Well, kind of, because it is a big layoff nonetheless.

In addition, said sources, the layoffs might result in the outsourcing of some functions at the company.

Even at a lower figure, the move will surely be yet another blow to morale at the much-buffeted Silicon Valley Internet giant.

Just this week, for example, Google gave each of its employees a 10 percent pay raise and $1,000. Facebook, similarly, is showering benefits on its fast-growing pool of workers.

Along with a spate of top-level executive departures, Yahoo is under scrutiny by Wall Street, as well as the subject of much takeover speculation.

This has put Yahoo CEO Carol Bartz under even more pressure to show results after almost two years as top manager.

Known as an exec who knows how to cut costs, she has yet to prove she can grow the Yahoo business with new innovations.

Yahoo has just over 14,000 employees. It has undergone many layoffs and restructurings, but only once in a major one under Bartz.

]]> http://allthingsd.com/20101111/adding-insult-to-injury-yahoo-is-prepping-layoffs-but-limited-to-product-group-and-more-like-10-percent/feed/ 9