In an effort to minimize the impact of massive layoffs that Yahoo’s top management has been planning, according to sources close to the situation, one of the latest ideas to save costs and presumably jobs by new CEO Scott Thompson is to sell off much of its advertising technology platform, including Right Media.

And among the possible buyers Thompson has been targeting in recent visits: Google and Microsoft, as well as Silver Lake, the private equity firm that had once been talking to the Silicon Valley Internet giant about making a large investment in the company.

(That particular deal has gone south, but there is always yet another scheme on the horizon at Yahoo!)

The concept behind such a sale, according to several sources inside and outside the company, is to turn a cost center into a revenue source, with Yahoo essentially outsourcing a business that was a cornerstone of its strategy. A negotiable number of employees affiliated with those units would then move over to the new owner.

The most ideal plan, said sources, would be to sell Yahoo’s whole advertising technology “stack,” including the Right Media Exchange, a marketplace for advertisers, publishers and ad networks to trade online ads. Yahoo bought it for $700 million in 2007.

According to info on the company’s site, it has “300,000 active global buyers and sellers and more than 11 billion daily transactions.”

Also part of the possible package is APT, a system Yahoo has built to make buying and selling online advertising easier. In addition, Yahoo’s technologies for display-ad serving have been mentioned as a possibility for sale.

It’s unclear what the potential sale means for the new ad strategy that U.S. boss Ross Levinsohn and his lieutenant Jim Heckman have been pursuing since last summer. That plan included its own acquisition of ad network Interclick and an attempt to sync up with rivals AOL and Microsoft in an effort to fend off Google and some third-party players, like ad networks.

But the reason for contemplating much a major move — which has been considered before, but never has been seriously offered — are obvious: While Yahoo once dominated this arena, it has steadily lost ground, especially to Google. The search giant has made almost all of its money in search-related ads, but has been moving aggressively via its DoubleClick and other ad-serving entities into higher-level ads.

Microsoft has also been trying to compete, as has AOL, but it’s getting to be an expensive race, and one where Yahoo would have to make major investments to once again gain momentum. Building up this business again had been the aim of co-founder Jerry Yang, who wanted to go big in the arena in a number of ways before he left the company earlier this year.

But those days seem to be over at Yahoo.

“A lot of what has happened so far under Scott [Thompson] has been trying to find more revenue anywhere it can be generated, and get out of businesses that are not growing,” said one person. “Right now, it’s a lot about what we shouldn’t do rather than what we should.”

That has meant visits to see both Google and Microsoft about possible deals by Thompson, with the involvement of CFO Tim Morse and Chief Product Officer Blake Irving.

Thompson (pictured here) has also recently been talking to Silver Lake about the ad-platform sale, in a deal that might include the Andreessen Horowitz venture fund. This would be a different kind of transaction, said sources, in which a separate company would be formed, with Yahoo owning a piece and contracting with the new entity to provide ad technology.

All this activity is related to the layoffs in the works of perhaps thousands of employees, which were to have been communicated to the company this week.

Sources said those have been delayed for some weeks for several reasons, including whether to consider more deeply if certain larger business units can be spun off, sold or somehow transformed. (To be clear: Major layoffs are still being planned, but now might take place in two parts, said sources, in what is a quickly changing and volatile atmosphere at Yahoo.)

Another area being looked at, said sources, is Yahoo’s search advertising partnership with Microsoft, which has not been as successful as had been expected. While Yahoo has been working with the software giant about improving the results, Thompson has apparently been contemplating other possibilities, including working with Google (calling all regulators!) and/or laying off up to 900 employees who work on the company’s search offering.

Any of these moves could, of course, cause a firestorm of controversy, which Thompson appears to not worry much about. He was the driving force in Yahoo’s patent lawsuit against Facebook earlier this week, which is largely attracting a negative reaction across the tech landscape.

A number of prominent voices have spoken out against the legal action, including well-known VC Fred Wilson, who yesterday penned a poisonous blog post, titled “Yahoo Crosses the Line.”

It ends thusly: “I am not writing this in defense of Facebook. They can and will defend themselves. I am writing this in outrage at Yahoo! I used to care about that company for some reason. No more. They are dead to me. Dead and gone. I hate them now.”

Ouch!

Also weighing in publicly via Twitter was former Yahoo director Eric Hippeau, who was one of the company’s first investors, which is embedded below:

Pathetic and heartbreaking last stand for Yahoo bit.ly/yirCcj It’s all over. I loved you very much.

— Eric Hippeau (@erichippeau) March 13, 2012

Double ouch!

All I can say is that Thompson certainly has a lot of gumption. That has actually been his M.O. from the start, said several sources, with the former president of eBay’s PayPal payments unit and dark horse cold-emailing his way into the Yahoo CEO job.

True story: He had not been among its list of possible candidates — largely because he had been placed in his job at eBay many moons ago by Heidrick & Struggles, which was conducting the Yahoo CEO search, and that’s a talent acquisition no-no to poach someone you placed.

That did not stop Thompson, who thought he might be good for the job and reached out directly to board members at the end of the selection effort, which then led to the search committee and soon enough to the job in what was a very quick vetting and secretive (although not secretive enough!) hiring process.

Since then, Thompson has been on a tear, from working on a restructuring to trying to assuage activist shareholder Dan Loeb to helping put the kibosh on its Asian stake sale talks to suing Facebook. And now this sale effort, too.

If the peripatetic Thompson — who might need a dose of Ritalin before this thing is over — wanted to get noticed by the tech powers that be: Mission accomplished!

“He’s definitely someone who appears to have decided on shooting the moon with a lot of these actions,” said one person close to the situation, referring to the move in the card game of Hearts, which is a risky gambit to capture every penalty card worth 26 points in order to win. “I just hope no one loses an eye in the process.”

(That would be triple ouch, by the way.)

No comments all around, but everyone was certainly cordial on this rainy morning.

Starting next week, Playdom said it will begin publishing Triple Town, which has already been on Facebook for some time.

Spry Fox said it will retain all creative authority over the game, and added that, going forward, it won’t have to worry about acquiring new users or figuring out how to run advertising campaigns.

In a statement, Spry Fox said: “Our games have reached millions of users, but never concurrently. We have constantly worried about our ability to scale without major service interruptions or other related problems … We are grateful for the opportunity to learn from [Playdom] and lean on them.”

The idea of publishing third-party content is not new in the world of gaming, but it is for Disney’s Playdom. It said while it sees an opportunity to leverage the creativity of independent developers, it will not be at the sacrifice of developing games internally.

Over the past year, Playdom has struggled to keep up its development after being acquired by Disney, but now it claims to be back on track and has more than a dozen titles under development, including a game based on Marvel superheroes.

“Playdom’s in-house development studios are still hard at work … but we also recognize that there are a lot of independent social game developers creating amazing new experiences, too,” the company said in a statement.

Spry Fox’s Triple Town, a puzzle game that challenges players to build cities by matching three or more of the same game pieces, has received some acclaim of its own. The trade magazine Gamezebo recently named it the best game of 2011.

So says a survey commissioned by a publishers’ trade group: It finds that two-thirds of people who read magazines on tablets and e-readers think they’ll be spending more time with digital issues over the next year. Many of them — 46 percent — are consuming more magazines — both in print and digital form — than they did before they got their hands on an iPad.* And 63 percent of them want more digital stuff to read.

Overall, the survey has generally sunny news for the magazine business, though it’s fair to wonder if the Association of Magazine Media would release a survey that had glum news.

The report does offer some guidance for the industry: 89 percent of readers want publishers to adopt a uniform way of navigating magazines, and 69 percent like watching in-app videos that run less than minute.

The other point worth noting about the report is that it exists, period. The survey, conducted earlier this month, was completed by 1,009 people “pre-screened for their ownership of mobile devices and their use of magazine-branded apps.” Up until now, pollsters couldn’t have been able to find enough respondents to make that kind of poll possible, says Chris Kevorkian, the trade group’s executive vice president for digital: “We’ve been wanting to do this research for some time, but didn’t have the critical mass to query.”

*The survey isn’t explicitly about iPad magazine editions — in theory, it covers all tablet magazine apps, as well as magazines consumed on e-readers like the Kindle and the Nook. But the majority of these things are being read on Apple’s device.

Michael Bloom joined the publisher, which owns Rolling Stone, Us Weekly, and Men’s Journal, in May. On Friday afternoon, he sent out a memo announcing his departure. Here’s the bulk of the note:

As some of you already know, I’m moving on from Wenner Media. While it’s been a relatively short time, I’ve really enjoyed working with so many talented and creative people across Wenner’s incredible brands.

Over the past six months, a new digital leadership team has been put in place, and a lot of great work has been done to set the foundation of what will be a terrific digital future. I’m proud of what you guys have accomplished and I know that you will go on to do great things in 2012. I’ll certainly be rooting for you from the sidelines.

Unlike many of his competitors, Wenner Media owner Jann Wenner has never rushed to embrace digital publishing. For a long time, he did very little with the Web beyond handing over his flagship RollingStone.com site to RealNetworks.

That deal made him money, but it also allowed upstarts like Pitchfork to grab lots of territory and mindshare over the years. Last year, Wenner got control of the site again and moved to put most of it behind a pay wall.

Around the same time, Wenner declared himself unimpressed with the commercial upside of the iPad for magazine publishers, a position that put him at odds with the conventional wisdom. Since then, many of his peers have become much more sympathetic to his take.

Bloom, who had previously put in time at Sharecare, MTV, and AOL Time Warner, didn’t mention a new job in his note; Wenner Media hasn’t announced a replacement. I’ve asked Bloom and a Wenner rep for comment.

Disney, which has been busy reorganizing its interactive group, is buying Babble Media, a New York-based parenting platform that features several hundred mom bloggers.

The entertainment giant declined to provide the purchase price for the New York-based start-up, which was founded by aiming at urban hipster parents and has garnered more than $6 million in funding since it was spun off from Nerve Media several years ago.

Babble’s venture investors include Greycroft Partners, Village Ventures and iNovia Capital.

Co-founders Rufus Griscom and Alisa Volkman and the rest of the 40-person Babble staff will join the Disney Interactive Media Group unit as part of its Moms and Family portfolio, Disney said in its official press release (see below).

Disney described Babble as the “premier blogging platform for a new generation of connected parents.” To me, that roughly translates into Brooklyn-living, Bugaboo-pushing, organic arugula-eating, yoga-calm moms and sensitive New Age dads.

But don’t take my word for it — today’s front page features on Babble include “15 Vegan Recipes for Thanksgiving” and “Is It Selfish to Have One Child?” (Yum and kinda!)

The next obvious stop for its audience, after the kids get a little bigger: Gwyneth Paltrow’s fabulously twee and irksomely addictive GOOP.

But Brooke Chaffin, who is SVP of Moms and Family in the Disney Interactive Media Group, said in an interview that the highly interactive content site with a definite “sophisticated” editorial voice has become mainstream, and is actually where the whole category is going.

“Babble is sharing the experience and stories on a daily basis through the parents lens,” she said. “And it brings in a blog network that is so important to this audience, because it’s by, for and about parents, and that’s far more important for them than experts.”

There will be that, too, said Chaffin, who noted the site has grown 100 percent year over year. It is now up to four million unique monthly visitors.

Disney plans to add its more evergreen family-focused content to Babble, to give it more heft to compete with other similar parenting sites, such as Johnson & Johnson-owned BabyCenter, NBC’s iVillage, Parents.com and CafeMom.

Interestingly, Disney had taken a gander at buying CafeMom a while back.

Chaffin, who came to Disney earlier this year after a stint at Auditude and a long time at Yahoo, said Babble has carved out a unique niche in combining content with social — the current gold ring for a lot of publishers.

“What Babble is doing is best of breed … it is just a different approach to blogging,” she said. “It felt like we at Disney are about storytelling and Babble does an amazing job doing just that.”

Added Jimmy Pitaro, co-President of Disney Interactive Media Group: “Disney has a long legacy of storytelling, and no mom-blog platform empowers storytelling better or more powerfully than Babble. Babble is a strategic complement to our Moms and Family portfolio of sites, which together make up a business that is critical to Disney Interactive’s mission of delivering world-class products and content and growing engagement among our guests.”

In other words: Mainstream and hipster!

Here’s the Disney official press release:

THE WALT DISNEY COMPANY ACQUIRES LEADING ONLINE PARENTING PLATFORM BABBLE MEDIA, INC.

Burbank, California — November 14, 2011 — The Walt Disney Company, through its wholly owned subsidiary Disney Online, has acquired Babble Media, Inc., a leading online parenting platform featuring more than 200 influential mom bloggers. The acquisition of Babble further strengthens the position of Disney Interactive Media Group’s Moms and Family portfolio as a leading online resource for moms and families.

Disney Interactive’s Moms and Family portfolio is a trusted resource for parents today, giving them the online tools and information they need and the ability to share their experiences. Through the acquisition of Babble, Disney Interactive’s Moms and Family business gains a blogging platform that elevates the first-person stories of parenthood.

Since its inception in 2006, Babble has become one of the most celebrated parenting sites on the web, named by Time Magazine as one of the 50 Best Websites of 2010 and by Forbes as one of the Top 100 Websites for Women. Its stable of bloggers contribute daily to parenting topics including pregnancy, child care, health, food, family activities as well as lifestyle topics such as home, fashion and family products. As the premier blogging platform for a new generation of connected parents, Babble has created a vibrant community of parents who support, encourage and celebrate the highs and lows of raising children.

Babble attracts a broad and engaged audience with its nearly constant stream of posts, written for and by moms. Disney Interactive will infuse its Moms and Family evergreen content into Babble, thereby enriching the Babble user experience and extending the best of what Disney has to offer to today’s parents.

“Parents’ relationships with Disney are founded in stories, and Disney’s best stories are about families. We believe that Babble and Disney can harness the power of storytelling to inform, entertain and empower parents everywhere,” said Brooke Chaffin, SVP of Moms and Family, Disney Interactive Media Group. “With more than 3.9 million mom blogs in the US alone, Disney Interactive recognizes and values the important and powerful role moms have taken on in new media.”

“We can’t imagine a better next step than joining the world’s leading media company for families, The Walt Disney Company, and look forward to bringing together Babble’s resonant voice and community with Disney’s expansive family audience, wide range of content and multi-media platform,” said Rufus Griscom and Alisa Volkman, Co-Founders of Babble.

Babble will remain headquartered in New York. Rufus Griscom and Alisa Volkman will join the Disney Interactive Media Group.

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

The financial details of the acquisition were not disclosed.

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

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

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

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

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

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

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

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

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

But we press on!

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

We begin:

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

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

No pressure, Blake!

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

Oh, if it were only that easy.

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

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

Don’t all rush at once!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Smirk attack!

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

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

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

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

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

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

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

Donut emergency!

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

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

Like I said: Hermitage!

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

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

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

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

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

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

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

11:48 am: Now Q&A time.

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

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

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

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

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

You and me both, brother.

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

As Parsey might say: It looks deliiiiiccccious.

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

Bingo! Your service gets a lot more users.

We’ve seen and heard this story several times since Facebook’s most recent redesign, launched in September, which autoshares what users are reading, watching and hearing.

So services that are hooked into Facebook’s new “ticker” are seeing an influx of traffic — the same way you’d get traffic if you put up lots and lots of signs on a highway used by a half billion people per day.

Still, it continues to bear repeating, and it turns out that music subscription service MOG wants to share.

Here’s the growth for monthly active users plugged into MOG via Facebook, plotted by Inside Network’s AppData Facebook tracking service. The Facebook redesign kicked in just about a month ago, and sure enough, so did MOG’s traffic. It’s now at 160,000 monthly users, up 4x:

So that’s good, right? “This is the best distribution platform we’ve ever had,” says MOG CEO David Hyman.

He projects that if these growth rates continue, his service will have racked up 2.1 million monthly users by the end of the year. For context, Spotify, Facebook’s first among equals when it comes to music service partners, is on an even faster tear, with much bigger numbers. It already has 7.1 million monthly active users via Facebook, up from 1.1 million pre-Facebook redesign.

This is precisely what MOG was hoping would happen when it overhauled itself to offer free music to new users without requiring a credit card or any other commitment. (Competitor Rdio made a similar move, as did Spotify).

What we don’t know is how many of them will stick around. It’s entirely possible that MOG’s graph could trend down again, like it did in mid-October.

And what we really don’t know is how many of these new prospects will eventually start paying a monthly fee for access to features like mobile music. All of that free music costs MOG and its peers quite a bit, and they need to convert a minority of their users to make the model work.

There’s also a flip side to the redesign story, where some big Web sites/services that had counted on Facebook for traffic saw it drop dramatically after the overhaul. This week I chatted with a publisher who saw Facebook referrals drop by more than a third after the redesign, due to changes in the way the service surfaces shared stories from users’ friends.

That drop is similar to the effect some publishers noted after Google’s “Panda” overhaul. But the publisher I talked to this week says their sites at least were able to claw back much of that referral traffic by manually tweaking their sharing mechanisms.

Memo to Flipboard, as well as Pulse, CNN’s Zite and AOL’s Editions: You might want to make some room in the already-crowded news and social reader space, because you’re about to get some bigfoot company.

Next Wednesday, according to sources close to the situation, Yahoo will finally officially unveil its offering, called Livestand.

And perhaps as early as next week or in the weeks soon after, Google will also weigh in with its version of the genre — code-named Propeller — which also might be the product’s name. Another moniker under strong consideration: Currents.

As I have previously reported, Google Propeller is an HTML5 reader for the Apple iPad and Android — essentially a souped-up version of similar apps such as Flipboard, AOL’s Editions, Zite (which was just bought by Time Warner’s CNN) and Pulse.

All these apps are part of the drastically changing habits of media consumers, helping users better navigate numerous social and media feeds — such as Facebook and Twitter, as well as news sites and more — using handsome interfaces and touch technologies on tablet devices.

Flipboard, the most prominent and elegant of these offerings, is now available only on the Apple iPad.

Flipboard’s traction among elite users, along with its high-level design ethos and strong reviews, is why Google tried to buy the well-funded company last year, sources said.

But Flipboard — which is backed by some of tech’s biggest venture players, who have invested more than $60 million at a $200 million valuation — declined the kind offer.

At the time, sources said, Google told Flipboard execs that if it did not buy the start-up, it planned to do a version of its own.

Hence, after I heard about the product earlier this year, I dubbed it the Flipinator.

According to sources, Propeller will launch with a plethora of media partners, as well as integration into the Google+ social network. The aim of the search giant is to offer media companies easy tools for publishing content on these devices, as well as a better path to monetization.

That is essentially the same plan at Yahoo, which has been working on Livestand with hopes of it being a product that will woo publishers into tight collaboration with the Silicon Valley Internet giant.

Livestand was announced by Yahoo’s now-fired CEO Carol Bartz in February, at a speech at the World Mobile Congress in Spain.

At the time, Bartz demoed a magazinelike platform that would allow publishers to put up content easily and give users the ability to personalize their selections based on search history and interests.

Bartz called it “content in context.” (You can see the demo video below.)

But while Bartz promised the product within three months, development has been slowed by its complex technologies, bugs and the need to sign on publishers.

Yahoo’s Chief Product Officer Blake Irving is pushing the product hard as a way for the company to reinvigorate its media products.

It’s not clear how many publishers Yahoo will have at launch, and neither are the distribution plans, beyond flacking it from the Web site and being present in app stores.

Google, on the other hand, has its Android platform to push out Propeller, although it all must work as well on Apple’s iPad, which is the dominant tablet on the market.

But just because both Yahoo and Google are big companies is by no means a guarantee of success — think Yahoo 360 or Google Wave or Buzz — and their lateness might be a hindrance.

And, in fact, other news reader apps are much further along. The leader, Flipboard, has already had four million downloads and 50 partnerships with leading publishers.

It also has started to introduce rich advertising products and, perhaps most importantly, has tight social integration with Twitter and Facebook.

There will be social elements on both Yahoo’s Livestand and Google’s Propeller. But news reading will be stressed more, making them more like Pulse, a tiny but highly innovative start-up.

Each of the existing apps will presumably compete by adding on more features. Pulse recently added cross-platform, cross-device syncing, while Flipboard is close to unveiling an iPhone version it has said it was working on.

Yahoo and Google PR declined comment.

Here is the Livestand demo video from February:

San Francisco-based Federated Media Publishing said it has bought Lijit Networks, a smaller online advertising analytics and tools firm.

The price for the Boulder, Colo., start-up — which was founded in 2006 — was undisclosed, but it has received just under $29 million in venture funding from firms such as Foundry Group. Federated said Lijit would continue to operate independently, “but in conjunction.”

In an interview yesterday, Federated CEO Deanna Brown said the buy was to round out offerings for its clients and to better compete in a world where most of the online ads go to the top five players.

“I am excited we can give both publishers and advertisers more tools for engagement and monetization,” she said.

Federated, which lost big social-media news site Mashable earlier this year, also benefits from increased scale and inventory of sites.

Lijit CEO Todd Vernon, who will become EVP of technology at Federated, said that it was ever more important for ad-focused firms on the Web to “deliver the entire stack.”

“Lijit has a core competency in the media business, and combined with FM’s best-in-class sales force, we can offer everything needed to do effective online campaigns,” he said.

Here’s the official press release:

Federated Media Publishing To Acquire Lijit Networks

Combined Entity Will Power More than 77,000 Independent Publishers Across the Web Via Comprehensive Advertising, Analytics and Reader Engagement Tools

SAN FRANCISCO, October 4, 2011 – Federated Media Publishing, which powers the best of the Independent Web, today announced the acquisition of Lijit Networks, Inc. Lijit is a leading provider of advertising services, audience analytics and reader engagement tools for online publishers of all sizes. The combined entity will reach nearly 300 million global unique visitors according to Quantcast.

Lijit, headquartered in Boulder, Colorado, will continue to operate independently but in conjunction with the rest of Federated Media Publishing. Lijit CEO Todd Vernon and COO Walter Knapp will take on corresponding EVP of Technology and SVP of Platform Revenue responsibilities at Federated Media Publishing and will report directly to Federated Media Publishing’s CEO, Deanna Brown. Additionally, Lijit board member Seth Levine from Foundry Group will join the Federated Media Publishing board of directors, effective immediately.

With the addition of Lijit Networks’ existing publisher relationships, Federated Media Publishing will now reach more than 77,000 online publishers and nearly 15,000 expert communities, making it one of the largest companies to power publishing on the Independent Web. The acquisition vastly expands the combined company’s inventory of sites, offering premium advertisers improved scale and reach.

Publishers Will Profit and Flourish

Lijit helps publishers more thoughtfully interact with and better understand their audience by providing analytics and engagement tools that build deeper relationships, lengthen time on site and increase page views. These robust and actionable audience analytics and reader engagement tools leverage intent, behavior and demographics to help publishers of all sizes increase revenue and better engage their readers.

Additionally, the combined advertising services provided by FM and Lijit will give publishers of all sizes a revenue stream that complements existing sales efforts and helps grow and monetize their website businesses, no matter what the size.

Advertisers Can More Easily Analyze and Engage

The combination of Federated Media Publishing’s premium online advertising and conversational marketing programs and Lijit’s proprietary data collection tools will empower advertisers to better understand user intent, contextual relevance and demographic information. And by leveraging the combined entity’s extensive publisher relationships, advertisers will have unprecedented scale on the Independent Web.

Introducing Programmatic Buying to the Independent Web

Programmatic buying is one of the fastest growing trends in digital media and the introduction of Lijit’s robust RTB exchange will equip media buyers with one of the largest platforms available. Over the next few months, Federated Media Publishing and Lijit will develop a series of private exchanges that will highlight leading independent publishers. These exchanges will allow brands to engage active, passionate consumers found in highly conversational online communities and publications, while delivering premium CPM rates via FM’s conversational marketing programs.

Quote

“The Lijit Networks team is just as passionate and committed to powering publishers as we are at Federated Media Publishing and that was a crucial element to this decision,” said Deanna Brown, chief executive officer, Federated Media Publishing. “Our combined relationships, proprietary tools and conversational marketing services will be invaluable to publishers and advertisers alike.”

“Federated Media invented how to leverage authentic voices and engaged conversations that exist in the Independent Web,” said Todd Vernon, founder and CEO of Lijit Networks. “The combination of the two companies is a game changer in the industry that unlocks new opportunities for both companies and our combined publisher network.”

]]> http://allthingsd.com/20111004/federated-media-buys-lijit-networks/feed/ 0 http://allthingsd.com/20110929/the-washington-posts-and-facebook-director-don-graham-talks-about-social-reader-video/ http://allthingsd.com/20110929/the-washington-posts-and-facebook-director-don-graham-talks-about-social-reader-video/#comments Thu, 29 Sep 2011 17:01:27 +0000 Kara Swisher http://allthingsd.com/?p=126290

Last week at Facebook’s f8 developers confab, I ran right into my old boss, Washington Post Chairman Don Graham.

While I could go on about what a privilege it was to spend my formative journalism years at the legendary newspaper and how critical its steadfast owners were to exemplifying all that is quality about the media, all Don wanted to talk about was now and the future.

And that would be how to make sure his media company was going to successfully make the transition to social. Thus, he was at f8 not only because he is a longtime board member of Facebook, but because he was eagerly showing off the Washington Post’s nifty new app for the social networking giant called Social Reader.

With the motto, “News. Better With Friends,” it’s an elegantly done version of what other publishers are trying, allowing users to instantly share the stories they have read with friends and also seeing what those friends are reading.

Here’s Don talking about Social Reader and showing it off on his Apple iPad, as well as some choice words about the future of news in general.

Listen, because he’d know:

]]> http://allthingsd.com/20110929/the-washington-posts-and-facebook-director-don-graham-talks-about-social-reader-video/feed/ 0 http://allthingsd.com/20110818/yahoo-loses-longtime-ad-tech-exec-dev-patel/ http://allthingsd.com/20110818/yahoo-loses-longtime-ad-tech-exec-dev-patel/#comments Thu, 18 Aug 2011 18:23:11 +0000 Kara Swisher http://allthingsd.com/?p=111725

Yahoo has lost another one of its longtime top advertising tech execs, as Advertiser and Publisher Solutions VP Dev Patel ankles out the door.

(I would have posted a photo of him, but the first thousand images I searched for were for the Indian star of “Slumdog Millionaire,” no matter what keywords I put in. Thus, a revolving door.)

Patel came to Yahoo in 2005, after it bought Whereonearth, a local and mobile search start-up where he served as CEO.

Patel has worked on a number of products at Yahoo, most recently its Smart Ads for Homepage offering, which are personalized ad units optimized using user data. It is powered by the Silicon Valley portal’s acquisition of Dapper, which Patel led.

Patel, who worked under Yahoo products head Blake Irving, is reportedly leaving for personal reasons, although others said he was frustrated by its current management. (Or both!)

]]> http://allthingsd.com/20110818/yahoo-loses-longtime-ad-tech-exec-dev-patel/feed/ 0 http://allthingsd.com/20110813/heres-what-an-ipad-looked-like-in-1994-video/ http://allthingsd.com/20110813/heres-what-an-ipad-looked-like-in-1994-video/#comments Sat, 13 Aug 2011 11:00:46 +0000 Peter Kafka http://allthingsd.com/?p=109556 Yesterday we saw what AT&T thought the future would look like, way back in the early ’90s. Pretty accurate!

Today we can see what newspaper publisher Knight Ridder thought about the future, way back in the early ’90s. Also accurate!

Except for an important part it got wrong.

Here’s a Knight Ridder-produced video from 1994, where the publisher imagines a world in which people consume their news on something very, very similar to an iPad. The tech specs kick in around the 2:20 mark (thanks very much, Richard Raucci):

Tablets will be a whole new class of computer. They’ll weigh under two pounds. They’ll be totally portable. They’ll have a clarity of screen display comparable to ink on paper. They’ll be able to blend text, audio, and graphics together. And they’ll be a part of our daily lives around the turn of the century. We may still use the computer to create information, but we’ll use the tablet to interact with information, reading, watching, listening.

Prescient, no? I don’t knock them for being about a decade early on tablet adoption. Can’t get everything.

If you slog through the video to about the 7:45 mark, though, you’ll find a much less accurate forecast. That’s the part where the newspaper publisher confidently explains that even when people have access to amazing tablet technology, they’ll still rely on newspapers, published in a format that looks very much like the print-and-ink product Knight Ridder was publishing in 1994.

Recall that while the open Web wasn’t mainstream back then — Netscape didn’t release its first browser until the end of the year — the notion of the “information superhighway,” with on-ramps courtesy of AOL and CompuServe, wasn’t new.

But Knight Ridder’s vision of the future assumed that newspapers stay dominant, and they stay looking like newspapers.

“Retaining that look and feel is very important, because people don’t buy generic news. They buy a specific newspaper, with a branded identity,” says the video’s narrator. “For most people, a newspaper is like a friend. It’s somebody you know, who you have come to trust,” adds a Knight Ridder executive, on camera.

And here you can see why the newspaper industry was so very slow to adapt to both the editorial and commercial impact of the Internet. It was smart enough to see the future coming over the hill, but not wise enough to realize it was going to run into it head-on — that technology wouldn’t just change the way information was delivered, but the source of information, and the value of that information.

Seventeen years later, it’s still trying to get its head around the idea.

]]> http://allthingsd.com/20110813/heres-what-an-ipad-looked-like-in-1994-video/feed/ 0 http://allthingsd.com/20110808/another-cool-new-yorker-app-and-this-ones-free/ http://allthingsd.com/20110808/another-cool-new-yorker-app-and-this-ones-free/#comments Mon, 08 Aug 2011 13:11:48 +0000 Peter Kafka http://allthingsd.com/?p=106925 Like the New Yorker’s iPad app, but don’t want to pay for it? Here’s a sort-of alternative: The magazine’s new entertainment listings app.

It’s not the New Yorker, but it’s built using the magazine’s intellectual DNA. And instead of the $60 a year the magazine charges for its primary app, this one is 100 percent free.

The “Goings On” app, which will work on both iPhone and Android handsets, is pretty much exactly what you’d expect: The magazine’s weekly listings of New York art exhibits, concerts, etc., tethered to an interactive map.

There are a few extra goodies, too, like audio recordings from New Yorker authors that will work as walking tours: Food writer Calvin Trillin will lead listeners through his favorite eateries and stores, and architecture critic Paul Goldberger navigates the city’s amazing elevated High Line park.

All of which sounds cool, if not groundbreaking. I got a very brief demo last week, but have no idea how it will work in the real world.

It’s worth noting that this is another example of a magazine publisher experimenting with an app that isn’t a straightforward replica of one of its titles. Instead, the app leverages the New Yorker’s brand and its intellectual property to create a new standalone product.

In this case, the magazine is turning that into revenue via an ad deal — MasterCard will be the app’s sole sponsor, via a package deal that also gets the brand into the print magazine — but Conde and other publishers have tried charging customers for standalones, too.

Very good bet that we’ll see more of these from Conde and its competitors, and that they’ll continue to play around with price points. Encouraging experiments.

]]> http://allthingsd.com/20110808/another-cool-new-yorker-app-and-this-ones-free/feed/ 0 http://allthingsd.com/20110728/heres-what-steve-forbes-is-telling-his-staff-about-that-brutal-fortune-article/ http://allthingsd.com/20110728/heres-what-steve-forbes-is-telling-his-staff-about-that-brutal-fortune-article/#comments Thu, 28 Jul 2011 14:53:04 +0000 Peter Kafka http://allthingsd.com/?p=103727 Fortune depantsed longtime rival Forbes today with a story detailing the business magazine’s finances, which have been terrible.

Don’t worry about it, Forbes chairman Steve Forbes tells his staff, via an internal memo which you can read below.

Before we go further: I worked at Forbes for 10 years; I still know lots of folks who work there. Now: The Fortune piece is useful because it details, via internal documents from banker J.P. Morgan, just how badly the bet that Elevation Partners placed on the magazine in 2006 has worked out.

The fact that Elevation (better known as either Roger McNamee’s private equity fund, or Bono’s private equity fund) bought a minority stake in the publisher at close to the market peak has been well known.

But the Fortune piece spells out just how badly timed it was: Elevation’s projections had Forbes generating close to $90 million in EBITDA in 2009; instead, the company had operating losses of $19.7 million. Last year the company went into default on a $90 million credit line.

Fortune also argues that the deal has been a disaster for the Forbes family, but I’m not sure that this is the case. After all, it allowed them to take more than $100 million out of the company while holding on to a majority stake. If they hadn’t done that five years ago, they certainly couldn’t do so today.

Regardless, Fortune does a good job of showing just how precarious life has been at Forbes for the past couple years — as it has been at every business magazine (just ask Portfolio and BusinessWeek) — and the publisher’s uncertain future. Elevation and Forbes have interlocking put and call options that kick in next month, and it will be interesting to see how long Elevation remains a minority owner.

—

Fortune Story on Forbes
Steve Forbes [XXX@forbes.com]
Sent: Thursday, July 28, 2011 9:43 AM
Today Fortune magazine published a story on Forbes with the clear intention of disrupting the business of its most formidable competitor.

Fortune was aware that this was highly confidential, private information and of no value to release to the public. Though the intention is to harm our business, it will not adversely impact Forbes because it highlights a very difficult time in the past when all the media industry was going through unprecedented upheaval.

Forbes has the finest team – you – in the media world today. Forbes is profitable and is successfully navigating these extraordinarily turbulent seas. The company continues to grow and thrive with powerful new strategies and talent.

We are attaching (below) a statement that will be sent later today to the media responding to this article.

Media Statement
Contact: Monie Begley Feurey
SVP Corporate Communications, Forbes Media
XXX@forbes.com

Forbes Media is profitable and in full compliance with all bank loan covenants.

In 2010, as part of a newly formulated strategy, Forbes sold Investopedia for cash realizing a profit on the sale of this investment. The decision to sell this non-core investment was taken
by the board of Forbes Media upon the recommendation of management.

In 2008, Steve Forbes and Tim Forbes, CEO and COO repectively, initiated a reorganization of the company, including the integration of its independent operating units, Forbes magazine and Forbes.com.

They also decided to expand the company management team, which led to the successful recruitment first of Lewis D’Vorkin as Chief Product Officer and then Mike Perlis as CEO of the integrated business.

The last decade has seen unprecedented upheaval across the media industry.Within that decade Forbes magazine, uniquely among its largest competitors, Fortune and Business Week, grew its total readership to record levels – 5.4 million in 2010 – and grew its share of advertising from 33% to 40%. The company also launched 16 local language editions, giving it the largest worldwide brand footprint among business publishers. At the same time, Forbes.com grew to one of the largest and most profitable business websites in the world, with, on average, 20 million monthly unique visitors.

Since 2010, the company has pursued its strategy of putting journalism at the center of social media. This strategy is at the cutting edge of media today, which is why it is garnering support from audiences and advertisers alike.

Elevation Partners are enthusiastic supporters of the direction of the company and have been full participants as these strategies have been developed.

Steve Forbes remains Editor in Chief and Chairman of Forbes Media. Tim Forbes is Chairman of Forbes Digital. The Forbes family remains the controlling shareholder of Forbes Media.

]]> http://allthingsd.com/20110728/heres-what-steve-forbes-is-telling-his-staff-about-that-brutal-fortune-article/feed/ 0 http://allthingsd.com/20110725/googles-horowitz-joins-board-of-wordnik-as-online-dictionary-site-garners-8m-more-in-funding-video/ http://allthingsd.com/20110725/googles-horowitz-joins-board-of-wordnik-as-online-dictionary-site-garners-8m-more-in-funding-video/#comments Mon, 25 Jul 2011 13:14:34 +0000 Kara Swisher http://allthingsd.com/?p=102068

Google+ kingpin Bradley Horowitz has joined the board of Wordnik, which has also just raised another round of funding of $8 million.

It’s the first board seat ever for Horowitz, who has been a bit busy of late launching the search giant’s first successful social networking product.

Wordnik, which claims to have the word’s most complete map of the language you are currently reading, was founded by Erin McKean, the former editor in chief of the New Oxford American Dictionary.

On its Web site, Wordnik notes it has “billions of words, 965,125,300 example sentences, 6,690,770 unique words, 223,693 comments, 168,573 tags, 121,180 pronunciations, 61,144 favorites and 936,294 words in 30,038 lists created by 70,054 Wordniks.”

Its grand aim is to be the company that powers definitions and context for publishers of all kinds around the Web — from blogs to articles to even tweets — much as a mapping company might render navigational information.

The aim of owning the world’s largest word graph is ambitious and innovative, although the effort to create a viable business out of it all will be its next job. Wordnik now has 18 employees at its San Mateo, Calif., HQ.

McKean gave a demo of its Smartwords feature at the eighth D: All Things Digital conference in 2010, after it had earlier raised $4.8 million from a number of venture firms and other angel investors.

Here’s an interview I did with McKean, Horowitz and Wordnik CEO Joe Hyrkin, who came on board in March, this weekend outside Buck’s in Woodside, as well as the video of the D8 demo of Wordnik:

And here is the official press release about the new funding and Horowitz appointment:

BRADLEY HOROWITZ NAMED TO WORDNIK BOARD;
WORDNIK RAISES $8 MILLION IN SERIES C FUNDING

Horowitz Accepts First Board Appointment; New and Existing Investors Support Wordnik as it Takes Innovative Word/Context Discovery Capability to the Marketplace

SAN MATEO, Calif. – July 25, 2011 – Wordnik, maker of the most innovative word navigation system, today announced that Bradley Horowitz, Vice President of Product Management for Google and longtime Silicon Valley executive, would join its board of directors. This is Horowitz’s first board appointment.

In addition, Wordnik has raised $8 million in its third round of venture capital funding, led by new investor Lucas Venture Group. Mohr Davidow Ventures, FLOODGATE, Baseline Ventures, Roger McNamee and additional private investors also participated in this round, which is earmarked to fund strategic growth as Wordnik builds out a range of new product and service offerings. This Series C investment brings Wordnik’s total funding to $12.8 million.

One of the most highly respected executives in the high-tech industry, Bradley Horowitz oversees product design for Google’s social and communications efforts including Gmail, Blogger, Picasa, and the recently launched Google+ Project. Before joining Google, Horowitz led Yahoo’s advanced development division, which developed new products such as Yahoo! Pipes, and drove the acquisition of products such as Flickr and MyBlogLog. Previously, he was Co-Founder and CTO of Virage, where he oversaw the technical direction of the company from its founding through its IPO and eventual acquisition by Autonomy.

“I’ve devoted my career to finding and working on innovative technologies,” said Horowitz. “In accepting my first Board appointment, I now have the opportunity to help guide Wordnik, a company that started with an incredibly innovative word navigation system, as it continues to offer deeper access to discovery and meaning across digital text. I know it will be a very rewarding experience.”

“Wordnik has changed the way consumers discover and interact with words by providing the most relevant context and meaning available anywhere,” said Joe Hyrkin, CEO of Wordnik. “With this investment from our longtime VC partners and strengthened by the addition of Bradley Horowitz to our board, we enter an exciting new phase for the company, building out our core technology and creating new leveraged offerings for a wide variety of content and commerce partners. Bradley brings us both great product insight and industry expertise, and will work with our founders, Erin McKean and Tony Tam, on future innovation.”

Wordnik was launched in 2008 with the mission to help people unlock the value of words and phrases and to discover what information is most personally meaningful. Wordnik’s technology provides additional access to content and context from a wide range of sources including the world’s most respected dictionaries, Wordnik users, and from unexpected places like Twitter and Flickr.

“Wordnik.com has offered consumers an easy way to gain more meaning and deeper context around words – kind of like a ‘GPS for words,’” said Jon Feiber of Mohr Davidow Ventures. “The next frontier for Wordnik is to bring the power of Wordnik to a wide range of publishers and other content providers by providing the most relevant discovery experience for their users. We think Wordnik will quickly establish itself as a valuable asset to its business partners, in addition to its continuing as an exceptional consumer site.”

]]> http://allthingsd.com/20110725/googles-horowitz-joins-board-of-wordnik-as-online-dictionary-site-garners-8m-more-in-funding-video/feed/ 0 http://allthingsd.com/20110724/flipboard-and-conde-nast-partner-in-brand-ads-deal-on-social-reading-app/ http://allthingsd.com/20110724/flipboard-and-conde-nast-partner-in-brand-ads-deal-on-social-reading-app/#comments Mon, 25 Jul 2011 04:00:40 +0000 Kara Swisher http://allthingsd.com/?p=101987

In an important deal for social reading app Flipboard, it has partnered with magazine giant Condé Nast to offer a slew of titles with branded advertising from major marketers American Express and Lexus.

The pair will share in the specially designed program, which will include the New Yorker, Wired and Bon Appetit. Additional magazines will be added, the companies said.

Flipboard, which is a popular and elegant app for the Apple iPad, has been trying to create strong ties with big publishers as it seeks to dominate distribution in the fast-growing social reading arena. It recently struck a deal with OWN, for example, the new cable network Oprah Winfrey has launched with Discovery.

Here is the official press release:

Condé Nast and Flipboard Launch
Brand Advertising On Flipboard for iPad with The New Yorker, Wired and Bon Appétit

American Express to launch today, Lexus in October

July 25, 2011 — PALO ALTO, Calif. — Today, Flipboard and Condé Nast bring brand advertising to the popular social magazine for iPad with web content from The New Yorker, Wired and Bon Appétit, with additional titles coming to Flipboard throughout 2011. American Express will be first to launch its campaign starting today in The New Yorker with Lexus following suit in October in Bon Appétit, The New Yorker and Wired.

Flipboard’s new program gives publishers and content creators a fresh way to offer magazine-like experiences of their web content with full-page ads to showcase advertiser brands. With a limited number of ad pages available within select content, advertisers benefit from an unprecedented share of voice within an immersive iPad reading experience. A simple tap on the magazine-style ad takes a reader to a brand’s website or Facebook page for additional information.

“Condé Nast is always looking for ways to take advantage of new channels that provide an environment in keeping with our editorial excellence, while offering unique opportunities for readers and advertisers,” said Lou Cona, CMO at Condé Nast. “Flipboard’s social magazine is a great example of that winning combination, while also giving us another way to market our own portfolio of tablet apps.”

Flipboard developed its brand advertising on the popular and groundbreaking iPad in collaboration with Condé Nast including the design and placement of the advertising inside the social magazine. Using a revenue share model, Flipboard will manage inventory and the publisher maintains its direct relationships with advertisers.

“Condé Nast continues to create new experiences for their content that also brings new reach to their advertisers. We are excited to be a part of this overarching strategy and bring their amazing stories, images, publications and advertisers to readers on Flipboard,: said Mike McCue, CEO of Flipboard.

“At American Express, we actively seek innovative partners that connect our Cardmembers with compelling and creative content through platforms that fit into their evolving digital lifestyle,” said Louis Paskalis, Vice President Global Media, Content Development & Mobile Marketing of American Express. “As such, we are proud to be an inaugural advertising partner for the groundbreaking New Yorker Flipboard edition, which will provide our Cardmembers and consumers everywhere a seamless, next-generation way to experience an iconic magazine in a tablet friendly adaptation.”

]]> http://allthingsd.com/20110724/flipboard-and-conde-nast-partner-in-brand-ads-deal-on-social-reading-app/feed/ 0 http://allthingsd.com/20110719/time-magazine-rolls-out-printdigital-subscriptions-and-puts-up-another-web-paywall/ http://allthingsd.com/20110719/time-magazine-rolls-out-printdigital-subscriptions-and-puts-up-another-web-paywall/#comments Tue, 19 Jul 2011 15:28:21 +0000 Peter Kafka http://allthingsd.com/?p=99673 Time magazine is making it easier for readers to subscribe to its digital and print editions. And it is making it harder for non-subscribers to read the magazine on the Web.

The weekly is rolling out an “all-access” plan that kicks in Thursday. It will give readers a chance to purchase bundles that will give them access to the magazine in multiple formats: Print editions delivered to their mailboxes, app versions beamed to their iPads and other tablets, and Web versions at Time.com.

This is the second time Time Inc., Time Warner’s publishing unit, has rolled out a print/digital bundle. Earlier this year it announced a similar “magazines everywhere” package for Sports Illustrated.

You can read pricing details in the press release below. What you won’t see there: News that, along with the bundles, the magazine will put up a paywall on its site which will keep non-subscribers from reading the print version for three months after it hits the newsstand.

If that sounds familiar, there’s a reason. Time.com put up a wall for its print magazine content almost exactly a year ago, and said at that time it would be doing that for most of its titles.

It’s unclear to me when and why the title knocked down its Web barriers — right now, for instance, you can read all of Time’s most recent issue for free — but they are going back up this week, and some Time staffers I’ve heard from are grumbling about the move. But as I’ve said before, it’s likely that the vast majority of Time.com’s visits and page views come from stuff that isn’t in the magazine, and that will continue to be free, so most site visitors may not notice any change at all.

Also worth noting is that while last spring’s Sports Illustrated announcement focused on Time Inc.’s deal to sell magazine subscriptions via Google’s Android platform, today’s news notes that the subscriptions will also work with Apple’s iPad.

That is: Even though Time Inc. isn’t using Apple’s new iTunes subscription service, it’s able to use Apple’s new iTunes subscription terms to deliver iPad subscriptions on its own. Time won’t sell subscriptions to the magazine through iTunes or via the app, but it will encourage readers to head to a Time Inc. Web page to sign up for a bundle. That means the company loses a marketing resource, but retains 100 percent of its subscription revenue, and all of the subscriber information it treasures.

TIME LAUNCHES “ALL ACCESS”
Readers Will Now Pay A One-Time Subscription Fee To Get the Print Edition
Plus Access to Tablet Apps and the New Magazine Channel On TIME.com

(New York, July 19, 2011)—TIME announced today that, starting this week, subscribers
will now pay one price for an “All Access” subscription to TIME magazine content wherever
they want to read it: in print, online and on tablet apps. This subscription model rewards loyal
customers with more choice and quality at no additional cost.

With TIME’s “All Access,” current subscribers to TIME will continue to receive the print
magazine, plus have access to a new paid magazine channel on TIME.com and be able to
download their issues on Apple iPad, HP Touchpad and Samsung Galaxy Tab. The TIME.com
magazine channel will be a paid section of the website that will contain all new magazine
content on an ongoing basis beginning with this week’s issue. Subscribers will activate their “All
Access” accounts using their existing magazine account number or mailing address.

New subscribers will have three options to access TIME magazine content:
1. Subscribe to TIME “All Access” for $30/year and receive 56 print issues, full online
access and all tablet apps
2. Sign up for a 1-week short term pass to access magazine content on TIME.com for $4.99/
week
3. Sign up for a $2.99/month “All Access” subscription. Each month readers get all of the
print editions of TIME, the tablet editions and access to magazine content on TIME.com.
This subscription can be cancelled anytime.

The new magazine channel on TIME.com is one of a series of new content verticals the site
has launched in the past year and a half, including Newsfeed, Swampland, Lightbox, Techland,
Healthland and MoneyLand. TIME.com has 95% original content separate and distinct from
magazine content and has broken multiple traffic records in 2011. In June, the site had 93 million
pages views, up 31% year over year, and 11.3 million unique visitors, up 27% year over year,
according to comScore. TIME is up in ad pages and revenue for the first six months of the year,
up 8.1% in pages and 11.2% in revenue. TIME is the #1 magazine brand on Twitter with more
than 2.6 million followers.

TIME is the second Time Inc. title to launch a subscription plan allowing consumers to pay once
and access their content across multiple platforms. Sports Illustrated announced a similar “All
Access” plan in February 2011.

]]> http://allthingsd.com/20110719/time-magazine-rolls-out-printdigital-subscriptions-and-puts-up-another-web-paywall/feed/ 0 http://allthingsd.com/20110504/hearst-strikes-deal-with-apple-on-ipad-subscriptions/ http://allthingsd.com/20110504/hearst-strikes-deal-with-apple-on-ipad-subscriptions/#comments Wed, 04 May 2011 22:29:11 +0000 Russell Adams http://voices.allthingsd.com/?p=40580 In a big win for Apple Inc., magazine publisher Hearst Corp. has agreed to sell subscriptions to the iPad editions of a range of its publications through iTunes, beginning with three of its popular magazines, the publisher said.

Starting with their July issues, apps for Esquire, Popular Mechanics and O, The Oprah Magazine, will be available through a new service from Apple that allows customers to sign up for subscriptions inside the apps and get billed automatically. Subscriptions to all three publications will be sold for $1.99 a month or $19.99 a year.

Hearst said it will eventually sell newspaper apps and other content it owns on a subscription basis through iTunes too.

Read the rest of this post on the original site »

]]> http://allthingsd.com/20110504/hearst-strikes-deal-with-apple-on-ipad-subscriptions/feed/ 0 http://allthingsd.com/20110504/cafemom-launches-daily-deals-and-plans-hispanic-moms-site/ http://allthingsd.com/20110504/cafemom-launches-daily-deals-and-plans-hispanic-moms-site/#comments Wed, 04 May 2011 12:27:36 +0000 Kara Swisher http://kara.allthingsd.com/?p=43534

CafeMom, a social-networking and community site aimed at mothers, is expanding its offerings to daily deals, as well as announcing an anticipated launch of a site aimed at Hispanic moms.

The deals effort has just been launched under the killer URL of Mom.com and will first be available in the Northern New Jersey area.

The sales force, which will presumably compete with armies of sales people from social buying phenoms such as Groupon and LivingSocial, will be made up of local moms in these markets.

The “Mamas Latinas” site–which is still unnamed–will be run by former People en Español publisher Lucia Ballas-Traynor, who has just been hired by CafeMom.

In an interview yesterday, its co-founders Michael Sanchez and Andrew Shue said the New York-based CafeMom was aiming at another major growth spurt.

Said Shue of the effort so far: “It’s just two dads trying to create the definitive mom’s site.”

There is a lot of competition in the space, such as iVillage, which is more broadly aimed at the lucrative women’s space.

But CafeMom had attracted attention too and had considered a number of acquisition offers last year, before deciding to expand its service on its own.

Last summer, in fact, Yahoo and several other companies expressed interest in the possibility of acquiring CafeMom.

After considering a variety of offers, said Sanchez, who is CEO of CafeMom, “We think we have a unique opportunity to grow ourselves and not for someone else.”

The company has been knocking around for a long time in Internet terms, morphing from a sister company owned by CMI Marketing called ClubMom back in the Web 1.0 days.

CMI, which was also founded by Shue and Sanchez, finally got two big fundings in 2008 totaling $24 million, from venture firms such as Highland Capital Partners and Draper Fisher Jurvetson.

Moving from what was essentially a glorified bulletin board for moms, it has added content and other social-networking tools and games.

For example, it recently launched a blog and content platform named “The Stir.”

Shue and Sanchez said the main CafeMom site now has 7.6 million million unique monthly visitors on its main site and almost 21 million on its overall network of affiliated sites.

The pair said that CafeMom is profitable, with 100 employees. It now has revenue of about $36 million annually.

Here’s the official press release about the Hispanic moms site:

CafeMom, the #1 site for moms with more than 7MM monthly visitors, to launch new website for Hispanic Moms

Outgoing publisher of PEOPLE en Español announced as co-founder.

New York, New York May 4, 2011–CafeMom announced its plans to launch a web destination catering to Hispanic moms in the coming months, to be co-founded by Lucia Ballas-Traynor, a Hispanic marketing veteran and the just-departed publisher of PEOPLE en Español. As part of its market research, CafeMom conducted a major national study of Hispanic moms, across the acculturation spectrum, and found that 92% of Hispanic moms believe there is not currently a website that clearly serves their needs.

“There is currently a huge gap online in serving Hispanic moms,” said CafeMom CEO, Michael Sanchez. “By 2014 one in four moms online will be Hispanic, and advertisers are increasingly looking for ways to reach this key segment. The site represents a tremendous opportunity, both to add value to millions of moms’ lives and to deliver unique integration possibilities to the brands that are most committed to the Hispanic market.”

CafeMom conducted a nationally-representative study of Hispanic moms fielded in both English and Spanish with a well-respected third party research vendor. The study showed Hispanic moms are underserved online, and are also eager to connect with each other. 79% of Hispanic moms said they wanted to connect with other Moms who share their culture, heritage, and life experiences.

Co-founder Lucia Ballas-Traynor brings her 25 years experience in Hispanic media, and has been at the helm of leading Hispanic media brands such as Univision’s Galavision, MTV Tr3s and most recently People en Español, the largest selling Hispanic magazine in the U.S.

“Our plan is to leverage CafeMom’s expertise in community, content, and strategic programs for leading brands and combine it with a world class leadership team that has a deep understanding of Hispanic moms and media,” said Sanchez. “As part of this effort, we are excited to bring Lucia on to the team. She has a proven track record in delivering for consumers and advertisers alike.”

“I’m thrilled to be working with CafeMom on this,” says Ballas-Traynor. “CafeMom is uniquely positioned to deliver this opportunity as an authority on moms. I’m confident that we can create something that will add real value to the lives of millions of Hispanic moms.”

]]> http://allthingsd.com/20110504/cafemom-launches-daily-deals-and-plans-hispanic-moms-site/feed/ 0 http://allthingsd.com/20110421/groupon-coo-will-be-googles-margo-georgiadis/ http://allthingsd.com/20110421/groupon-coo-will-be-googles-margo-georgiadis/#comments Thu, 21 Apr 2011 18:14:09 +0000 Kara Swisher http://kara.allthingsd.com/?p=42971

Margo Georgiadis (pictured here), VP of Global Sales Operations at Google, will be COO of Groupon, Google confirmed.

She is currently located in Chicago, where the social buying site is headquartered.

A Google spokesman confirmed the move by Georgiadis, while Groupon–which specifically denied a query about her appointment that BoomTown made Tuesday–dithered.

In a statement, her boss, SVP and Chief Business Officer Nikesh Arora said:

“I’m grateful for all that Margo has done for our team over the past two years. We will miss her, but we’re also very excited that she’s joining a terrific company and a great partner for Google.”

Besides COO, I will officially bestow the title of “Chief Cat Wrangler” on Georgiadis, for the massive organizational job ahead for her at the notoriously chaotic start-up. (As evidenced by Google being the company confirming a major Groupon hire.)

Still, Groupon’s growth had been stunning. It now has thousands of employees and has already washed out one COO, former Yahoo exec Rob Solomon, whose departure was reported here.

It has also turned down a $6 billion acquisition offer from Google, raised a badillion dollars in venture funding from tech’s top investors and also is prepping an IPO valuing the company at upwards of $15 billion.

Phew!

Georgiadis must bring calm to this perfect storm.

Because of her solid resume (see below) and quiet demeanor, I had included her in a list of candidates several weeks ago and had queried the social buying company about her specifically this week.

In fact, when I asked for a comment if Georgiadis was hired on Tuesday, a Groupon spokeswoman said: “This would be news to me. Nothing to announce yet.”

At the time, Google had the class to simply say “no comment.”

(Lesson learned!)

Crain’s Chicago Business’ John Pletz first posted on Georgiadis’ hiring earlier today.

In any case, Georgiadis is just the kind of candidate that Groupon has been looking for–a competent and experienced sales and operations exec who would not overshadow its quirky CEO and co-founder Andrew Mason.

As I wrote two weeks ago:

Lastly, and perhaps most important, the Groupon COO candidate is going to have to accept that the role will not be a CEO-in-waiting, either before or after its inevitable IPO in the next year.

While I have received several tips that co-founder and CEO Andrew Mason might not stay its principal exec, extensive checking with sources inside and outside the company indicate that such a move is highly unlikely.

“Andrew is beloved to the board, by investors and, most of all, by employees,” said one source. “He’s not going anywhere.”

Indeed, Mason has a close working relationship with co-founder Brad Keywell, as well as Groupon co-founder and Chairman Eric Lefkofsky.

In fact, despite other business interests, Lefkofsky has been very involved in all key decisions with Mason.

That job, presumably, would fall to the new COO, which Groupon should be hiring sooner rather than later.

“Groupon needs a world-class COO, who can manage hyper-growth, but also who knows that a No. 2 stays in the background while doing it,” said another source. “That’s a tall order.”

Groupon has looked at a number of top execs, most specificially at former DoubleClick and Google exec David Rosenblatt. Sources said the high-profile exec did not want to play second fiddle to Mason or move to Chicago.

That’s moot now. Here is Georgiadis’ bio at the Silicon Valley search giant, which shows why Groupon picked her:

Georgiadis is responsible for driving Google’s sales operations and strategies across regions, channels and products as well as leading the sales technology teams which enable the successful commercialization of Google’s products (e.g., AdWords, AdSense, display and mobile ads) with advertisers and publishers.

She also leads the company’s local and commerce businesses, working to extend services like Checkout, Google Places and commerce search to small and large businesses alike.

Before joining Google, Margo was a principal in Synetro Capital LLC, a private investment firm based in Chicago. She also spent five years as the executive vice president of card products and chief marketing officer of Discover Financial Services where she led a radical turnaround of business performance and revitalized its rewards leadership with award-winning new products, customer experience and marketing. Prior to Discover, Margo was a partner at McKinsey and Company for 15 years in London and Chicago. She was a leader in the firm’s marketing and retail practices, and also co-founded and led the customer acquisition and management and retail marketing practices.

She has a bachelor’s degree in economics from Harvard College and an MBA from Harvard Business School.

]]> http://allthingsd.com/20110421/groupon-coo-will-be-googles-margo-georgiadis/feed/ 0 http://allthingsd.com/20110414/exclusive-flipboard-confirms-50-million-funding-at-200-million-valuation/ http://allthingsd.com/20110414/exclusive-flipboard-confirms-50-million-funding-at-200-million-valuation/#comments Thu, 14 Apr 2011 20:23:12 +0000 Kara Swisher http://kara.allthingsd.com/?p=42652

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

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

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

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

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

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

Insight is also an investor in Twitter.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

]]> http://allthingsd.com/20110414/exclusive-flipboard-confirms-50-million-funding-at-200-million-valuation/feed/ 4 http://allthingsd.com/20110331/irony-alert-microsoft-files-formal-complaint-against-google-with-ec/ http://allthingsd.com/20110331/irony-alert-microsoft-files-formal-complaint-against-google-with-ec/#comments Thu, 31 Mar 2011 08:25:02 +0000 Kara Swisher http://kara.allthingsd.com/?p=42244

Microsoft’s legal eagle Brad Smith didn’t even bother to pretend the software giant’s filing of a formal antitrust complaint against Google with the European Commission wasn’t a wee bit ironic.

Wrote Smith in a blog post late last night:

“There of course will be some who will point out the irony in today’s filing. Having spent more than a decade wearing the shoe on the other foot with the European Commission, the filing of a formal antitrust complaint is not something we take lightly. This is the first time Microsoft Corporation has ever taken this step.”

But take it the company did, noting: “Microsoft is filing a formal complaint with the European Commission as part of the Commission’s ongoing investigation into whether Google has violated European competition law.”

Google, no surprise, disagreed, via a statement from a spokesman.

“We’re not surprised that Microsoft has done this, since one of their subsidiaries was one of the original complainants. For our part, we continue to discuss the case with the European Commission and we’re happy to explain to anyone how our business works.”

Here is the whole Microsoft post, in which Smith outlines Microsoft reasons for its action:

Adding our Voice to Concerns about Search in Europe

30 Mar 2011 9:00 PM

Posted by Brad Smith

Senior Vice President & General Counsel, Microsoft Corporation

Microsoft is filing a formal complaint with the European Commission as part of the Commission’s ongoing investigation into whether Google has violated European competition law. We thought it important to be transparent and provide some information on what we’re doing and why.

At the outset, we should be among the first to compliment Google for its genuine innovations, of which there have been many over the past decade. As the only viable search competitor to Google in the U.S. and much of Europe, we respect their engineering prowess and competitive drive. Google has done much to advance its laudable mission to “organize the world’s information,” but we’re concerned by a broadening pattern of conduct aimed at stopping anyone else from creating a competitive alternative.

We’ve therefore decided to join a large and growing number of companies registering their concerns about the European search market. By the European Commission’s own reckoning, Google has about 95 percent of the search market in Europe. This contrasts with the United States, where Microsoft serves about a quarter of Americans’ search needs either directly through Bing or through our partnership with Yahoo!.

At Microsoft we’ve shown that we’re prepared to work hard and invest literally billions of dollars annually to offer Bing, a search service that many now regard as the most innovative available. But, hard work and innovation need a fair and competitive marketplace in which to thrive, and twice the Department of Justice has intervened to thwart Google’s unlawful conduct from impeding fair competition. In 2008 the DOJ moved to file suit against Google for its unlawful attempt to tie up and set search advertising prices at Yahoo!, causing Google to back down. And last year the DOJ formally objected to Google’s efforts to monopolize book content, a position affirmed by a federal district court in New York just last week. Unfortunately, even this has not stopped the spread by Google of new and disconcerting practices in the United States.

As troubling as the situation is in United States, it is worse in Europe. That is why our filing today focuses on a pattern of actions that Google has taken to entrench its dominance in the markets for online search and search advertising to the detriment of European consumers.

How does it do this? Google has built its business on indexing and displaying snippets of other organizations’ Web content. It understands as well as anyone that search engines depend upon the openness of the Web in order to function properly, and it’s quick to complain when others undermine this. Unfortunately, Google has engaged in a broadening pattern of walling off access to content and data that competitors need to provide search results to consumers and to attract advertisers.

On PCs it is usually not difficult for people to navigate to any search engine. Google in fact makes this point virtually every time someone raises antitrust concerns about their practices. Their defense ignores the hugely important fact that there are many other important ways that search services compete. Search engines compete to index the Web as fully as possible so they can generate good search results, they compete to gain advertisers (the source of revenue in this business), and they compete to gain distribution of their search boxes through Web sites. Consumers will not benefit from clicking to alternative sites unless all search engines have a fair opportunity to compete in each of these areas.

Our filing details many instances where Google is impeding competition in these areas. A half-dozen examples below help illustrate some of our concerns.

First, in 2006 Google acquired YouTube–and since then it has put in place a growing number of technical measures to restrict competing search engines from properly accessing it for their search results. Without proper access to YouTube, Bing and other search engines cannot stand with Google on an equal footing in returning search results with links to YouTube videos and that, of course, drives more users away from competitors and to Google.

Second, in 2010 and again more recently, Google blocked Microsoft’s new Windows Phones from operating properly with YouTube. Google has enabled its own Android phones to access YouTube so that users can search for video categories, find favorites, see ratings, and so forth in the rich user interfaces offered by those phones. It’s done the same thing for the iPhones offered by Apple, which doesn’t offer a competing search service.

Unfortunately, Google has refused to allow Microsoft’s new Windows Phones to access this YouTube metadata in the same way that Android phones and iPhones do. As a result, Microsoft’s YouTube “app” on Windows Phones is basically just a browser displaying YouTube’s mobile Web site, without the rich functionality offered on competing phones. Microsoft is ready to release a high quality YouTube app for Windows Phone. We just need permission to access YouTube in the way that other phones already do, permission Google has refused to provide.

Third, Google is seeking to block access to content owned by book publishers. This was underscored in federal court in New York last week, in the decision involving Google’s effort to obtain exclusive and unfettered access to the large volume of so-called “orphan books–books for which no copyright holder can readily be found. Under Google’s plan only its search engine would be able to return search results from these books. As the federal court said in rejecting this plan, “Google’s ability to deny competitors the ability to search orphan books would further entrench Google’s market power in the online search market.” This is an important initial step under U.S. law, but it needs to be reinforced by similar positions in Europe and the rest of the world.

Fourth, Google is even restricting its customers’–namely, advertisers’–access to their own data. Advertisers input large amounts of data into Google’s ad servers in the course of managing their advertising campaigns. This data belongs to the advertisers: it reflects their decisions about their own business. But Google contractually prohibits advertisers from using their data in an interoperable way with other search advertising platforms, such as Microsoft’s adCenter.

This makes it much more costly for Google’s advertisers to run portions of their campaigns with any competitor, and thus less likely that they will do so. That is a significant problem because most advertisers figure that they have to advertise first with Google. If it’s too expensive to port their advertising campaign data to competing advertising platforms, many won’t do it. Competing search engines are left with less relevant ads, and less revenue. And while this restraint isn’t visible to consumers, its effects are nonetheless felt across the Web. Advertising revenue is the economic propellant fueling the billions of dollars needed for ongoing search investments. By reducing competitors’ ability to attract advertising revenue, this restriction strikes at the heart of a competitive market.

Fifth, this undermining of competition is reflected in concerns that go beyond Google’s control over content. One of the ways that search engines attract users is through distribution of search boxes through Web sites. Unfortunately, Google contractually blocks leading Web sites in Europe from distributing competing search boxes. It is obviously difficult for competing search engines to gain users when nearly every search box is powered by Google. Google’s exclusivity terms have even blocked Microsoft from distributing its Windows Live services, such as email and online document storage, through European telecommunications companies because these services are monetized through Bing search boxes.

Finally, we share the concerns expressed by many others that Google discriminates against would-be competitors by making it more costly for them to attain prominent placement for their advertisements. Microsoft has provided the Commission with a considerable body of expert analysis concerning how search engine algorithms work and the competitive significance of promoting or demoting various advertisements.

Over the past year, a growing number of advertisers, publishers, and consumers have expressed to us their concerns about the search market in Europe. They’ve urged us to share our knowledge of the search market with competition officials. As they’ve pointed out, the stakes are high for the European economy. On any given day, more than half of all Europeans use the Internet, and more than 90 percent of them look for information about goods and services on the Web. Indeed, the European Commission’s Digital Agenda made clear that commerce is moving online, where two-thirds of Europeans begin their shopping process. It’s therefore critical that search engines and online advertising move forward in an open, fair and competitive manner.

There of course will be some who will point out the irony in today’s filing. Having spent more than a decade wearing the shoe on the other foot with the European Commission, the filing of a formal antitrust complaint is not something we take lightly. This is the first time Microsoft Corporation has ever taken this step. More so than most, we recognize the importance of ensuring that competition laws remain balanced and that technology innovation moves forward.

We readily appreciate that Google should continue to have the freedom to innovate. But it shouldn’t be permitted to pursue practices that restrict others from innovating and offering competitive alternatives. That’s what it’s doing now. And that’s what we hope European officials will assess and ultimately decide to stop.

Please see this disclosure related to me and Google.

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