New York magazine just published what will doubtlessly be the first of many larger-scale profile pieces on new Yahoo CEO Marissa Mayer (Fortune’s at work on one, too).

Titled “Can Marissa Mayer Really Have It All?” New York’s version is a very solid and fair effort that raises a lot of pertinent questions about the Silicon Valley Internet giant’s latest leader.

That, of course, includes pondering the high-profile issues around her coping with a newborn (really new) and work; her carefully crafted public glamour-geek-girl persona that is at odds with her sometimes more tetchy private one; Mayer’s mostly-up-and-then-down-at-the-end career at Google as a key exec; and the myriad challenges she faces in turning around the long-troubled Yahoo.

Writes Lisa Miller quite astutely: “This newest version of Marissa, the mom-geek-CEO, will surely test Mayer’s iterative powers, for she’s playing to a tougher crowd, one that won’t be placated by tweets, Manolos, and rapturous praise for pineapple malts.”

Indeed not, which is why sources said Mayer is likely to begin to make postpartum appearances back at Yahoo as early as this week. She delivered her first child with husband Zach Bogue, whom she dubbed “Big Baby Boy Bogue,” on Sept. 30.

Among the initiatives she has been working on up to and after her son’s birth, said numerous sources, is the redo of Yahoo’s powerful home page, a reorganization of top management duties, and an announcement about whether it will buy back shares or give a dividend from its recent multibillion-dollar sale of part of its lucrative stake in China’s Alibaba Group.

In addition, said sources, Mayer is also putting into place her new methodology of keeping track of employee performance and rewards. There is an all-hands meeting scheduled today, in fact, apparently to go over the system, which Mayer spoke about in her last all-hands meeting.

The home page redo is also in the late-stage works for unveiling soon, said sources. Those who have seen it said it has a starker and simpler design ethos, and will stress user personalization, customization and more social elements. It will also have ample opportunity for third-party developers to offer a variety of services on it (maybe Mayer can save Zynga by copying a little bit from Facebook!).

The reorg will also be interesting. Mayer has made a number of top exec appointments, including adding a new CFO and head of HR. She will also be rejiggering other roles of existing management.

For example, expect tech and operations EVP David Dibble — who got a mess of new responsibilities right before Mayer was appointed — to have some of that dialed back.

The disposition of all $3.6 billion of Alibaba cash is perhaps the most immediate issue, especially for investors, who are largely hoping for a buyback of stock. Such a move will likely cause Yahoo shares to rise, as happened at AOL.

That would be nice, since Yahoo stock has stayed pretty flat since Mayer got to the company in July. (That compares, ironically, to a 31 percent rise at Google since she left.)

But Wall Street analysts and others have been making bullish calls on Yahoo recently, including CNBC’s screamy stock guru Jim Cramer of “Mad Money.”

Boosted by the growing value of its Asian assets — in China, as well as in Japan, which Yahoo is trying to sell — and also anticipating some kind of magic mojo from Mayer, price targets for Yahoo shares have been as high as $22.

That was from Goldman Sachs, which reinstated coverage of Yahoo with a “buy” rating recently. Analyst Heath Terry noted that “while user engagement continues to decline, the company lacks a mobile strategy and significant talent has left the company, Yahoo still has hundreds of millions of users, valuable Web properties, and the financial resources to fuel a potential turn around over time.”

Translated: Yahoo kinda stinks, but it still might be able to buy itself out of this mess with a $10.6 billion pile of dough from Asia.

All eyes will be on the actual business Yahoo operates itself in two weeks on Oct. 22, when the company announces third-quarter results. Sources said the quarter will come in as expected, but will still tell a story of lackluster growth in advertising, engagement and, well, every key part of its native offerings.

That said, Mayer is expected to be on the call — her first at Yahoo — to outline her grand vision in more detail, as a spokeswoman has noted.

That’s good, since shiny profiles of her can only do so much. It’ll be nice to finally hear her say something definitive in public about how she’s going to fix the company that has given the mediagenic exec even more press.

(And, let’s hope, without the tweets, Manolos and pineapple malts.)

Yahoo could announce in the coming week what it plans to do with the billions of dollars it recently garnered after closing the sale of a portion of its stake in China’s Alibaba, according to sources close to the situation.

As AllThingsD has previously reported, the company is most likely to do a share buyback with the $3.65 billion, a move that could boost its still-lackluster stock.

That’s what happened when AOL did one in late June after it got a pile of cash from hawking its patent assets. Its shares are up more than 25 percent for those last three months, while Yahoo’s have gone up less than one percent in the same time frame.

When it announced the completion of the deal in mid-September, Yahoo said that it would hand over 85 percent of the after-tax proceeds to shareholders. (The Silicon Valley Internet giant will keep about $650 million for its own use.)

At the time of the transaction, a Yahoo spokeswoman said that the company declined to give any specifics around the form of return. The company could also, for example, decide to give investors a dividend, too, although Yahoo has long explicitly favored stock buybacks.

“The form and timing of returning proceeds will be determined by the board and management, taking into consideration the best interests of the company and its shareholders,” said the Yahoo flack.

Speaking of flak, new CEO Marissa Mayer tried to give some to tech journalists, some of whom have been giving her a bit of a hard time of late for showing signs of potentially being too spendy.

In a memo to staff announcing the date of its employee holiday party — it’ll be on December 1 on Pier 48 in San Francisco — Mayer took issue with a particular report from Business Insider about how she tussled over costs with departing CFO Tim Morse, whom she ousted last week.

Business Insider claimed that included her taking the price of the holiday shindig from $100,000 to $3 million, due in part to a change in venue location.

Mayer begged to differ, noting in the internal memo that the event would not bust the bank and still be tons of fun:

“Building on the theme of tech reporters not being great with math or numbers, rumors of this year’s party budget have been greatly exaggerated.”

(Is there actual time for tech reporters being math-impaired to become a theme that’s being built upon at Yahoo? I thought Mayer said the company would be building innovative products.)

But since we in the media are apparently dunces, I suppose we’ll just have to rely on Yahoo’s own numbers from its last quarter — which I embedded below — to tell the tale of continuous troubling declines in search queries and page views, declines in minutes spent on its media properties, declines in growth of unique visitors and flat-as-a-sugar-cookie growth in revenue.

Or, as Mae West famously said in the most delightful math quote ever: “A man has one hundred dollars and you leave him with two dollars. That’s subtraction.”

So is this Q2 financial performance at Yahoo — which is certainly not Mayer’s fault since she just arrived, but will be her responsibility to fix going forward:

YHOO_Q212EarningsPresentation

According to sources close to the situation, News Corp.’s Chief Digital Officer Jon Miller will soon be leaving the media giant.

It seems to be a cordial, although perhaps inevitable, parting — sources said Miller will remain an adviser to chairman and CEO Rupert Murdoch, as well as COO Chase Carey and deputy COO James Murdoch, for a year after his departure in late September.

Update: News Corp. confirmed the departure in a press release, which is embedded below.

His leaving brings into focus the fate of News Corp.’s overall digital strategy in an upcoming new structure. Miller was hired in 2009 to turbocharge the company’s long-troubled digital assets.

But I had noted in an article in July that the well-known Internet exec was not likely to continue at News Corp. in the wake of a complex transaction that will ultimately break the company apart into two separate entities — an entertainment company and a publishing one.

That’s a very different situation from when Miller was hired by the media giant to lead its tech and online initiatives and make digital a priority across its many divisions.

Not for lack of trying or access to powerful News Corp. head Rupert Murdoch — it has been a mixed bag for Miller in his tenure.

That’s due in no small part to a problem faced by many execs like Miller: The difficulty of successfully pushing digital initiatives inside a large traditional media organization.

His job has encompassed everything from a failed effort to revive its once mighty Myspace service to selling it and other properties off to working to improve its Hulu partnership, where he serves on the board.

It is not clear who will replace Miller as one of the News Corp. directors at the complexly-owned premium video service, which had been for sale and then not recently.

One of the brighter Miller accomplishments for News Corp. has been forging decidedly better relationships with key Internet companies, both large and small, as well as with venture investors in Silicon Valley and elsewhere.

That was most pronounced and visible between Apple and News Corp., which struck a number of deals to work together, some of which worked and some that had much less success.

Miller has also been active in China, working on several digital investment opportunities for News Corp. there. That included a recent $70 million investment in Bona Film Group.

He was key to a recent $45 million investment by the company and others in the company that sells the Roku video streaming device.

He also worked on various New Corp. efforts on creating channels on Google’s YouTube, including WIGS, a drama series. The jury is still out on these kinds of creative endeavors, of course, especially to a company with much more lucrative traditional film and television assets.

There was a possibility that, in his leaving, Miller might form a separate investment fund to focus on digital publishing and media, funded by News Corp. or even by the Murdoch family, who control the company.

But that has appeared not to have worked out, said sources.

Before he came to News Corp., Miller ran an investment fund with former Yahoo exec Ross Levinsohn called Fuse Capital. He also was chairman and CEO of AOL under its Time Warner ownership and was a top exec at IAC/InterActiveCorp.

Miller has remained an active angel investor, funding a range of start-ups such as Maker Studios, Voxer, Science, Solavei, Personal.com, as well many as others.

He is also chairman of OpenX and serves on the boards of Shutterstock and TripAdvisor.

Clearly, this is a world Miller will return to easily and it’s likely he’ll be starting something sooner than later. (Maybe bringing the band back together with Levinsohn?)

JonathanMillerAug23.2012

(Full disclosure: This Web site is owned by Dow Jones, which is owned — in turn — by News Corp.)

Yahoo CEO Marissa Mayer has been trying to recruit Katie Jacobs Stanton, Twitter’s head of international markets, to take a major job on the media side of the Silicon Valley Internet giant, according to multiple sources close to the situation.

While she holds that globally-focused role at the social communications service, Stanton is an obvious choice for Mayer, who actually was once her boss at Google, including when Stanton was the product management leader in the launch of Google Finance.

More importantly for Mayer, Stanton was the key driving force in creating Yahoo Finance, perhaps its most powerful content site, when she worked there from 1999 to 2002.

In other words, she knows media.

It does not seem likely Stanton will leave Twitter, but it makes a lot of sense that Mayer would try to get her.

It’s not clear what job Mayer is offering Stanton, but it is presumably a big one. One source said it could involve running Yahoo’s powerful home page, while another said it might be an even larger role.

Ross Levinsohn, the top Yahoo exec who left recently, had been overall head of media and sales for the Americas at the company. When he was named interim CEO of Yahoo earlier this year, he had elevated Mickie Rosen as SVP of media and commerce.

Rosen is still in that role now, where she has purview over all Yahoo media and commerce efforts worldwide.

But many expect Mayer to soon begin to replace Yahoo’s top exec team with choices of her own. She has already started an overhaul of its communications team, and has been recently focusing on human resources and its product leads, too.

But media is a critical unit at Yahoo, and Stanton would easily be on any short list of candidates to fill key jobs there.

At the San Francisco-based Twitter, her focus has been on raising its profile abroad, where it has been growing by leaps and bounds. That has often been in high-profile ways, such as its use in the Arab Spring protest and after Japan’s earthquake and tsunami.

Stanton came to Twitter from a stint in Washington, D.C., including at the State Department, where she did the laudable mobile donation campaign for Haiti that raised $32 million for victims of the devastating earthquake there. She was also the White House’s first director of citizen participation, and got the Obama administration tweeting via @whitehouse.

At Google, she also worked on its Open Social efforts, as well as on launching its interactive discussion tool, Google Moderator.

But Yahoo Finance is probably still her biggest hit, and one of the few properties on the site that has remain a huge success, despite the company’s many troubles.

Stanton graduated from Rhodes College, and later got a master degree from Columbia University’s School of International and Public Affairs.

I have an email into the apparently silent new PR spokeswoman at Yahoo, as well as the much more communicative spokesman at Twitter, and will update if I get a response.

We’ll see if Mayer can land Stanton, but if you want to get a good idea of the always affable and charming exec, here is a video of her in action — love her “can we go boy, girl, boy, girl” in the Q&A part at the end — at a recent event in Germany, when Twitter was opening its office in Berlin:

In related news, after picking up a midlevel Google product PR person last week to work closely with her on corporate communications, Mayer seems to have grabbed another exec from the search giant. She’s hired a policy manager named Patricia Moll Kriese to become Yahoo’s senior director for corporate projects (whatever that means!).

Please see this disclosure related to me and Google.

As I previously reported he likely would, top Yahoo exec Ross Levinsohn — who lost the CEO race to former Google exec Marissa Mayer — is leaving the company, according to several sources.

Mayer also just sent a note to the company about the departure, added a multitude of other sources across the company.

(Update: Yahoo just filed regulatory documents about the separation, noting severance agreements that total many millions of dollars.

And the company also released a statement confirming the departure: “Ross has done a terrific job during his time at Yahoo!. We wish him all the best.”

Levinsohn also had a memo to staff, which is also below.)

Levinsohn, who took over as interim CEO in the wake of the ouster of Scott Thompson earlier this year, had been running the Americas unit of the Silicon Valley Internet giant. That put him in charge of key Yahoo businesses, including its media and advertising sales divisions.

Levinsohn and Mayer have been negotiating his exit for several days, sources said, which is not surprising given the awkward circumstance between them.

While Mayer might have benefited from Levinsohn’s close ties with key marketing players and his content experience, her intense focus on products and not on media likely means that she will rely on a more tech-heavy leadership team going forward.

It will be interesting to see who she picks going forward. As I previously reported, many think she will pull from the ranks of former and current Google execs, where she worked for her entire career before Yahoo.

Levinsohn does not apparently have any current plans for another gig, but as an experienced and very well-liked online media exec, he will likely have many options.

He came to Yahoo in late 2010, replacing Hilary Schneider, in the regime of Carol Bartz, who was later fired.

Levinsohn arrived at Yahoo from Fuse Capital, where he worked with Jon Miller — now chief digital officer at News Corp. — in funding digital media and communications start-ups.

But, until his Yahoo job, Levinsohn was probably best known for his stint running digital operations for News Corp.’s then Fox Interactive Media unit.

It was at FIM that he rose to prominence after he bought Myspace, the social networking site that was once the hottest property on the Web.

At the time, Levinsohn and other execs also struck a gigantically lucrative advertising search deal with Google that garnered Myspace huge revenues.

After leaving News Corp. — after repeated clashes with Myspace co-founder and then CEO Chris DeWolfe — he partnered with Miller in another investment company, Velocity Capital.

Ironically, both Miller and Levinsohn were the top choices of billionaire shareholder activist Carl Icahn as the execs he wanted to run Yahoo when he was agitating for change there a few years back in the midst of the failed takeover attempt by Microsoft.

Fast forward several years, with Levinsohn losing his shot as CEO of Yahoo, after yet another hedge fund manager — Dan Loeb of Third Point, who waged a Yahoo proxy fight that ended in him getting seats on the board — strongly backed Mayer for the job instead of Levinsohn.

Levinsohn never had a chance against the tech-star resume of Mayer, of course. But, for his time of taking over Yahoo after the crisis around the ouster of Thompson over a fake computer science degree on his bio alone — a rocky period for the company, to be sure — Levinsohn probably deserves a lot of kudos from Yahoo’s board.

More to come, obviously.

But here is the Mayer note about Levinsohn’s departure in full:

Subject: Thank You to Ross Levinsohn

Do Not Forward

I am writing to let you know that Ross Levinsohn will be leaving the company at the end of July.

Ross has been an important and powerful contributor at Yahoo since he joined in 2010. During May and June, Ross stepped into an incredibly tough role as interim CEO and did a terffic job — he really helped keep the company moving, closed important deals, and assembled a very talented team. I am very grateful to Ross for his leadership and work throughout his tenure at Yahoo. His contributions will be missed.

Ross will be in Sunnyvale tomorrow (Tuesday, July 31). Please take the opportunity to drop by and thank him for all he has done for the company. I hope you can join me in wishing Ross well and letting him know how much you’ve appreciated him as a colleague.

– Marissa

I wanted to let you know that my time at Yahoo has come to an end. It has been an incredible journey for me and I could not be prouder of what we accomplished over the past few years helping define Yahoo as a leader in digital media and advertising. Yahoo is an amazing brand and company, and I leave knowing we did all we could to help inform and entertain more than 700 million users each month. Leading this company has been one of the best experiences of my career, but it is time for me to look for the next challenge.

– Ross

Let’s begin by saying it is not new Yahoo CEO Marissa Mayer’s fault that the stock of the company has done a whole lot of nothing since the announcement of her appointment Monday.

After all, she just arrived.

But despite a lot of huzzahs from Wall Street over the solid choice of the high-profile former Google exec — which was being hailed by some as the answer to all of the Silicon Valley Internet giant’s woes — Yahoo shares still closed down yesterday slightly, and continued to fizz in after-hours trading.

Message from investors: Exciting choice, but you still need to prove that there is some light at the end of what has been a very, very long and pitch-dark tunnel for Yahoo.

It’s easy to see why, if you take a serious gander at the second-quarter results Yahoo released – in living color below — yesterday. They show a company that faces very serious and perhaps overwhelming problems that even a superhero CEO choice will find difficult to overcome.

Year-over-year growth of its global properties nearly flat, compared to an 13 to 15 percent rise a year ago; U.S. core search queries down 17 percent; minutes spent on its media properties down 10 percent; flat revenue touted as a good thing, since it was not down, at least.

Not down is the new up? In the land of Yahoo, it is indeed.

As Doug Anmuth of J.P. Morgan noted perfectly in a post-earnings note about the challenges the new CEO faces:

“This will be Marissa Mayer’s task going forward with her strong focus on product innovation and the user experience, but we continue to believe it will be difficult to turn Yahoo! around given mostly deteriorating engagement metrics, structural headwinds in the display space, shrinking search share, and limited mobile traction in the U.S.”

One bright spot is the $2.4 billion in cash that Yahoo has salted away, money that Mayer can presumably go hog wild with to bring in a spate of potentially invigorating start-ups and entrepreneurs, making Yahoo fast friends all over tech.

There is nothing like spreading around a lot of dough to make yourself popular again! And VCs become your BFFs!

That’ll come soon enough, but Mayer started just yesterday at Yahoo, and wisely bowed out of its analyst earnings call, with the company’s CFO Tim Morse noting that she needed to get up to speed on the state of the company before speaking out.

She needs to move fast, since sources said the signs for the third quarter are not promising, either, with Yahoo declining to provide guidance until Mayer can get a handle on the overall trends.

A handle that will take, it seems from the numbers below, a decidedly kung-fu grip:

YHOO_Q212EarningsPresentation

It was Yahoo legal head Mike Callahan who had the thankless task yesterday of calling Facebook’s general counsel Ted Ullyot to tell him the Silicon Valley Internet giant was intent on pursuing patent lawsuits against the social networking giant.

The charge was being led by Callahan, as well as Chief Product Officer Blake Irving and, especially, Yahoo’s new CEO Scott Thompson.

Much of Yahoo’s senior leadership had no idea of the impending move until Callahan informed them it was about to happen at meeting Monday.

Facebook had known of the patent concerns of Yahoo for some months — the issue had also gotten some coverage in the media — but had not engaged formally on the topic, several sources said.

So, the suddenly aggressive call also apparently blindsided Facebook, even though it had been aware of the possibility of such an outcome.

Thus, it had little time to respond, since Yahoo was also simultaneously briefing the New York Times, according to numerous sources at both companies, and then released an astonishing statement to the newspaper:

“Yahoo has a responsibility to its shareholders, employees and other stakeholders to protect its intellectual property. We must insist that Facebook either enter into a licensing agreement or we will be compelled to move forward unilaterally to protect our rights.”

Apparently, Yahoo’s new motto: If you can’t beat ‘em — and it can’t — sue ‘em.

That would be Yahoo — the perpetual 98-pound weakling of the Internet these days — threatening powerful Facebook, which had cleanly bested it by attracting hordes of users with a plethora of popular products and services.

Yahoo has already lost its audience to Facebook, which was most recently followed by its frittering away a commanding lead in display advertising, too.

That would also be the Yahoo whose most recent success in improving its increasingly tenuous connections with customers was, in fact, by deeply integrating Facebook’s social hooks into its Web properties.

That would be the Yahoo which has failed time and again to innovate its own offerings so drastically over the years that it has now apparently decided that its first and best strategic move under Thompson’s rule is a shakedown.

Such a cynical move on rights Yahoo has long held seems more a play for the cheap seats of Wall Street, given that the company needs to look like it is doing everything it can to turn things around right now as it faces a proxy challenge.

First, it ended difficult talks with its Asian partners, Alibaba Group and SoftBank, over selling back lucrative stakes there.

Now, according to sources, Yahoo’s Thompson has actually been trying to make very nice with activist shareholder Daniel Loeb of Third Point — on-the-down-low chitchats that might have played a part of this latest unusual move.

At least Kodak had a good excuse. The once iconic camera company had recently been trying to take advantage of its trove of patents as a way to stave off declaring bankruptcy.

That didn’t work for Kodak, and it will also not work for Yahoo, whose only real option is to try to innovate its way out of the mess it has landed itself in.

You know, with good ideas.

Instead, the company’s leadership has opted for a road that could rain down trouble and paint Yahoo as a company bereft of talent to win any other way.

And while a range of intellectual property lawsuits have broken out all over the digital sector, involving Apple, Microsoft, Google and many others, such a strategy for Yahoo could be dangerous if it fails in its legal effort to take advantage of its 1,000-plus patents, including those related to search and advertising.

Others — including such tech luminaries as LinkedIn’s Reid Hoffman, who co-owns the seminal Six Degrees patent for constructing a networking database and system — hold a number of critical social networking patents, too, so who knows where this thing will go.

Nonetheless, Yahoo has decided to emulate those companies with one of the few valuable assets it might have, waging its little war, right as Facebook is in the midst of its initial public offering period.

Yahoo has done this before, of course, having wrangled with Google until right before it went public in 2004 over search patents from its Overture acquisition. The pair settled 10 days before the Google IPO, with Yahoo getting several million more shares of that stock (which it then, of course, sold too soon).

That certainly could happen here, with Yahoo managing to grab a chunk of Facebook’s pre-IPO stock.

That would mean that Yahoo’s most valuable asset would be those shares, as well as its stake in Asian companies it bought a while back for a bargain and now makes up a bulk of the company’s valuation.

As to Yahoo’s core business — investors consider it almost entirely worthless.

And let’s not forget: Facebook could also sue right back, which it very well might do. Or, perhaps, cut off agreeable ties that have aided Yahoo in recent years.

In other words, in poking Facebook, Yahoo might now learn what it is really like to be de-friended.

Demand Media, which has suffered from stock weakness and worries about its traffic and costs, beat Wall Street expectations in its fourth quarter earnings report, which was released after the market closed today.

The Santa Monica, Calif., online media company said it earned eight cents per share, up one cent on analysts’ estimates of seven cents. Revenue came in slightly higher too, at $84.4 million compared to an expected $81.95 million.

Still, Demand shares were down almost five percent in after-hours trading on the news, to $5.94.

Demand said that about $50 million of that came from its content businesses, while just over $31 million was due to its registrar business.

Free cash flow was up five-fold from $3.3 million to $18.3 million, which Demand said was due to cost controls and decreased spend on its flagship eHow site, which has seen changes in its content and distribution platform.

Demand also said it is going to buy back more of its stock, upping a $25 million plan to $50 million.

Said the company:

“During the fourth quarter of 2011, Demand Media repurchased 1.9 million shares of common stock for $13.3 million under its Board-authorized $25.0 million share repurchase program. To date, the Company has repurchased 2.8 million shares of common stock for $20.1 million. On February 8, 2012, Demand Media’s Board authorized an increase of $25.0 million to the program, taking its total authorized repurchases to $50.0 million.”

In a conference call with analysts after the reports, CEO Richard Rosenblatt acknowledged it was a “turbulent year,” but noted that Demand would be enhancing its properties for higher page views and more direct traffic.

He also addressed the departure of some of Demand’s founders. “All three were very important members of our team,” he said. “But it’s the natural evolution of a young company.”

If you want more deets, read all about it here in the company’s official press release:

4Q11 Results Release FINAL02.16.12

You might be thinking: A thermostat’s a thermostat … right?

In Honeywell’s view, it’s not so simple. In the complaint, filed in a U.S. district court in Minnesota, the maker of aerospace systems, consumer products and technology solutions identified seven patents it believes Nest Labs infringes on.

Honeywell is also seeking damages from Best Buy, which features and sells Nest’s product in home-energy departments around the U.S. (Best Buy also sells Honeywell programmable thermostats.)

Nest Labs was recently launched by Matt Rogers and Tony Fadell, a former Apple executive who worked on the iPod. Last fall, Nest Labs began selling the Nest Learning Thermostat, a buzzed-about, easily programmable “smart” thermostat that uses the same wheel interface as the original iPod. The device can be controlled from a user’s smartphone, tablet or Web browser, and Fadell has been quoted as saying the Nest will save users up to 30 percent off their utility bills. With Nest, the uncool thermostat suddenly became a hot item.

Nest Labs did not respond to requests for comments on the suit, except to release a statement yesterday, saying they had not yet reviewed the actual filing, and that the company will provide comment once they’ve had the opportunity to review it.

Speaking for Honeywell, Bruce Eric Anderson, the company’s director of external communications, expounded on Honeywell’s statement from yesterday, saying that intellectual property is a “part of what Honeywell is as a company. We have 20,000 engineers that come here every day and it’s about protecting those individuals. This suit is not unique,” Anderson added.

Rather than go through the filing patent by patent, here are a few of the key sticking points of the suit:

First, Honeywell points out that it commercialized the first adjustable thermostat that allowed users to sleep through the night without having to manually turn their furnaces on and off; and that it is a global leader of innovative thermostats, and created the iconic “round” thermostat that’s now featured in the Smithsonian museum collection.

Honeywell goes on to mention more recent innovations, including its Prestige 2.0 Comfort Systems and RedLINK Wireless Comfort Sytems. More on the Prestige in a bit.

In the section titled “Acts Giving Rise to the Action,” the Honeywell filing points to various features of the Nest thermostat that have been promoted by Nest Labs and Best Buy as “innovative,” including the ability to connect the device to the Internet, store private data and control the Nest remotely through a Wi-Fi connection. Honeywell also takes issue with Fadell and Rogers having said that there hasn’t been any real innovation in decades in the thermostat space, though the sources of this quote and others are unclear.

Honeywell alleges that Nest Labs does not appear to have originated the design or functionality of the Nest thermostat — and says the key functional features at the core of the device are the results of years of research and development that culminated in patents owned by Honeywell.

For example, Honeywell’s complaint says, the fact that the Nest thermometer came with a patented “question system” — “What are the lowest and highest temperatures you’d like when you are away?” — is not new. Honeywell’s Prestige thermostat, introduced in late 2008, also incorporates an “interview-based interface.”

Honeywell also says that controlling a thermostat remotely through the Internet is not a Nest Labs innovation.

Interestingly, General Electric also offers consumers — as part of a home-energy management system — the ability to remotely control a GE “smart” thermostat from a smartphone or home computer. “Connect seamlessly to your programmable thermostat to remotely adjust your home climate,” says GE’s Web page for this feature.

When I asked Anderson whether Honeywell had ever examined GE’s system, he simply said, “I don’t know. I’m not familiar with that product.”

In the filing, Honeywell also references this AllThingsD video from last November as showing evidence that Nest Labs was examining “numerous” Honeywell thermostats in its research, indicating that Nest — which it calls a “well-funded, sophisticated company” — was well aware of Honeywell’s contributions to the thermostat industry.

So, Honeywell says, it has suffered and will suffer monetary damages and irreparable harm as a result of Nest Labs’s infringements, as well as from Best Buy’s infringements by using, offering to sell and/or selling the Nest device.

Since we don’t have a more detailed response from Nest Labs yet, it’s hard to know how this will play out. It’s also unclear whether Honeywell contacted Nest Labs prior to filing the formal suit.

Ed Weisz, a senior intellectual property lawyer at the firm of Cozen O’Connor (which is not involved in the Honeywell suit), says that most cases like this one result in a settlement. However, if it is determined that there has been a patent infringement, Weisz says, Honeywell could seek an injunction — which the courts may be more likely to grant, because there’s actually a product already out on the market.

Weisz also said that, while Best Buy is enjoined in the suit, he doesn’t think the retailer will be on the hook for additional damages, as their sale of goods — even ones that might infringe on IP — will be covered by the Uniform Commercial Code.

“It’s way too premature to have any read on the merits of this,” Weisz said.

What we do know is that in Silicon Valley — and in Honeywell’s case, outside of the Valley, too — tech-patent lawsuits are hardly uncommon, especially in the smartphone and tablet market.

We’ll keep you posted as this story evolves.

Yahoo shareholders felt a little giddier earlier this week, when it seemed as if the company had finally decided to make a deal with its Asian partners.

But the happiest crew might end up being the Silicon Valley Internet giant’s outside counsel, Skadden Arps — and especially Leif King, the fantastically named legal eagle who has been advising Yahoo on the deal.

That’s because today the Yahoo board approved continuing the negotiations to come to a final agreement over the stake, sources said, which should take six to eight weeks.

It’ll surely be happy holidays for billable hours!

As costly as the legal bills will be, if it all goes well, an Asian solution will mean one major problem solved, with a possible pile of cash and new assets coming in to Yahoo.

To get there, the company signed a term sheet earlier this week with Japan’s SoftBank to sell back all its holdings there, and with China’s Alibaba Group to sell off more than half its stake (moving from a 40 percent stake to a 15 percent one).

The deal values Yahoo’s total shares in both companies at about $17 billion.

While it gets a pretty accounting name — “cash-rich split “– the vehicle to unwind it all is essentially a complex tax dodge finally cooked up by the trio, in which cash, new assets and stock will be moved around until everyone gets what they want (except the U.S. government).

I would explain it — but I am on vacation, and would rather drink eggnog and sleep — so here is The Wall Street Journal’s version, which I like because it sounds like Alibaba and SoftBank are giving Yahoo a hugely loaded Starbucks card for Christmas:

“As envisioned in the scenario, Alibaba would create a subsidiary into which it would put several billion dollars of cash, plus an operating asset that Yahoo wants to buy using additional cash from Alibaba, almost like giving Yahoo a prepaid card for an asset of its choice, the people said.”

Everyone is hoping there will not be any hiccups in the deal, which has been spearheaded by Yahoo board member and Intuit CEO Brad Smith, and Jerry Yang, who is also the company’s co-founder and a major shareholder.

Alibaba CEO Jack Ma and CFO Joe Tsai, both co-founders of that company, were the point men for the Chinese company. And for SoftBank, it was its founder and CEO Masa Son and his main U.S. exec, Ron Fisher.

Now, said sources, Yahoo’s board is hoping to still keep the bids from a pair of private equity firms — Silver Lake and TPG Capital — alive.

While initially the focus on the action, the PE bidding for partial Yahoo stakes has recently been sidelined by the Asian deal.

Now, sources said, Yahoo is hoping the new infusion of cash and assets will allow it fend off shareholder unrest — stock buybacks and dividends, anyone — to solicit higher prices from the firms to make strategic investments.

Yahoo had considered the initial bids too low, as did some very pissed-off activist shareholders.

Still, it’s not clear if those firms will jack their offers now, although sources said Silver Lake is still interested in some sort of deal that would give it influence over remaking Yahoo.

Silver Lake and others think the long-troubled company could be revived with some effort, and become a much more lucrative Web property.

But those negotiations might run into roadblocks over who gets to pick leadership for the company. Yahoo has accelerated its efforts to hire a new CEO, after firing Carol Bartz in September.

The PE firms, who would buy a large stake in Yahoo, also have wanted some level of control, including CEO and board approval, in order to be able to make massive changes at the company to turn it around.

Wall Street seems to like the Asian part of the deal, at least, since it shows some sort of forward momentum at Yahoo, and from its often-lugubrious board.

Shares are up almost 7 percent in the last few days, although they are not popping as they might be, given that new valuations based on a successful Asian deal put the stock at a much higher price.

In other words, investors like what they see, but are watching and waiting for more.

AOL, which has had some turmoil in its executive ranks of late, has promoted Jim Norton to be its new head of sales.

The New York Internet company said Norton would be “responsible for sales on all of AOL’s owned & operated properties, including sites like The Huffington Post, Engadget, Stylelist and MapQuest,” as well as a range of other areas.

AOL has rejiggered its advertising execs and strategies several times in recent years, and Norton is not precisely replacing its former advertising head Jeff Levick (who left for Spotify) and is more akin to another top former AOL ad exec Mark Ellis (who left for Yahoo).

That job has now been folded into the portfolio of Chief Revenue Officer Ned Brody, to whom Norton will report.

“We need to become faster in our operations,” said Brody in an interview this morning about the shift. “We brought in Jim to bring in singular focus on selling.”

Brody said that AOL is working on how to increase the “value proposition” of its variety of advertising and marketing offerings and to quicken the process.

Norton came to AOL from Google in 2009 and before that worked in a wide range of ad jobs.

Here’s the official press release on the move:

JIM NORTON NAMED HEAD OF AOL SALES

New York, NY — December 9, 2011 — AOL Inc. (NYSE: AOL) and Ned Brody, Chief Revenue Officer, today announced the promotion of Jim Norton to head of AOL Sales. Effective today, Jim will be responsible for sales on all of AOL’s owned & operated properties, including sites like The Huffington Post, Engadget, Stylelist and MapQuest. Additionally, he will also lead the sales of all cross platform marketing solutions, including display/Project Devil initiative, video and mobile. This announcement is reflective of AOL’s commitment to putting the strongest leaders in place to service clients in the most efficient and effective manner. Jim will continue to report to Brody.

“Jim has proven himself within AOL to be a fantastic leader,” said Brody. “He not only has deep knowledge and incredible expertise in the marketplace, but a real ability to effect change.” Brody added, “Customers want the best products and packaged solutions all in a fast and efficient manner. Consolidation of leadership under Jim will place even more focus on putting our clients front and center and deliver on their goals and needs.”

“It’s a tremendous honor and opportunity to take on this new leadership role,” said Norton. “It allows me to continue to work with some of the best sales professionals in the business. It’s also a privilege to work with some of the world’s biggest brands.” He added, “We want to continue to be the preferred media partner for marketers and agencies.”

Jim joined AOL in 2009 and was SVP, AOL Advertising’s Advance Sales team, which focuses on national and regional advertisers across all categories, as well as new business. He was also VP of Product Sales working with AOL product teams on maximizing their offerings to advertisers, including MapQuest, Patch, AOL Mail, AOL Video and Mobile. He also managed AOL’s Search and Sponsored Listings business, and helped launch and manage AOL’s self service advertising platform, Ad Desk.

Jim has over 20 years of experience in the media business. Prior to joining AOL, he spent 3 years at Google most recently as National Sales Manager for Google’s Agency Activation team. Prior to that role, he was a Senior Account Executive on the National Tech B2B team servicing many of the leading global tech marketers. He’s also held a number of traditional sales and marketing roles, including four years as Sales Manager at Tribune Broadcasting’s WLVI-TV (Boston’s WB), radio ad sales at Kiss 108FM and a variety of brand marketing roles at Miller Brewing Company and GMR Marketing. He’s a life long Bostonian and graduated from Boston College with a BA in Communications and BC’s Carroll Graduate School of Business with an MBA in Marketing and Technology. He’s married with three children and splits his time between Boston and New York City.