AllThingsD » Robert Kotick

Activision Raises Full-Year Guidance as Digital and Online Sales Increase

Tricia Duryee — Wed, 03 Aug 2011 21:28:08 +0000

Activision Blizzard, which is known for its popular Call of Duty and World of Warcraft games, said its second-quarter performance exceeded expectations, driven by record digital sales of its online-enabled franchises.

During the quarter, revenues from digital channels increased 27 percent year over year and accounted for 37 percent of the company’s total net revenues.

Strong digital revenues also contributed to record profits.

Activision reported record earnings per share of 29 cents as compared with 17 cents in the second quarter 2010. Revenues were also up, totaling a new record of $1.1 billion compared to $967 million in the year-ago period.

In a release, Robert Kotick, Activision’s CEO said, “Today, there are more ways than ever for players to access entertainment online and play games which have truly become one of the most compelling forms of entertainment in the world.”

A majority of the company’s digital revenues come from subscriptions, downloadable content and full-digital downloads.

On a non-GAAP basis, the company reported diluted earnings per share of 10 cents on revenues of $699 million. This exceeded the analyst consensus of 5 cents a share on revenues of $599 million.

Activision is also raising its outlook for revenue and earnings per share for calendar year 2011.

It is now expecting non-GAAP revenues of $4.05 billion and 77 cents a share for the year, up from previous expectations of non-GAAP revenues of $3.95 billion and 73 cents a share.

The company’s stock is trading up in after-hours duty by about 3.64 percent or 43 cents to $12.25 a share.

Videogame Publishers Highlight Digital Revenues But Remain Divided on Meaning

Tricia Duryee — Tue, 10 May 2011 03:13:28 +0000

Activision Blizzard joins a growing list of videogame publishers that are placing more emphasis on digital revenues over selling boxed games at retail.

In its first-quarter results released today, the company, which is known for its Call of Duty and World of Warcraft games, said its revenues from digital channels increased 30 percent year over year in the first quarter.

What’s more, on a non-GAAP basis, digital channels accounted for more than 50 percent of net revenues, or roughly $378 million.

However, what’s becoming clear is that the definition of digital is a moving target for all parties involved, a trend that will likely continue as companies experiment with new business models and ways to deliver games to consumers.

Activision’s big source of digital during the quarter came from the $15 content pack for Call of Duty: Black Ops, which provides new areas for players to explore that were not included in the the original game sold at retail. It’s available on Xbox today and is expected to launch on Sony’s PlayStation Network and the PC in the second quarter.

That’s much different from Electronic Arts, which said last week that its digital revenues for its fiscal year ended March 31 totaled $833 million, exceeding its forecast of $750 million.

When EA talks about digital, it refers to mobile games and social games on platforms, such as Facebook. For the most part, it’s not referring to downloadable content available on consoles (although it has that, too).

The differing points of view also come down to business models.

Mobile games and social games are often free and either monetized through advertising or through virtual goods that are purchased in the game. Online games are often paid for via subscriptions and console games frequently require a $60 upfront payment with the option of paying for more downloaded content later.

Thomas Tippl, Activision’s COO and CFO, said while digital revenues grew at 30 percent, it was also able to maintain margins of up to 50 percent since most of its digital content was leveraging the company’s large online communities and popular franchises.

Call of Duty and it’s $15 content pack is one example:

During the earnings call, Activision said that Call of Duty: Black Ops has now officially become the best-selling title of all time in dollars across the Xbox 360, PlayStation 3 and the PC in the U.S. and Europe. Additionally, the popularity of that title was able to drive massive sales of the digital add-on pack. While only released a few days ago, it has the potential to do better than most console games at retail.

“The Call of Duty content pack shattered records with 1.4 million downloads in the first 24 hours,” Tippl said. “We no longer think about launch events, but long-term on-going relationships with players. The response from fans underscores this approach.”

The company also discussed other digital initiatives, of which some could arguably be considered social, although they are not on Facebook.

In the works is a next-generation massively mutli-player online game; a micro-transaction game for China; a digital platform surrounding the Call of Duty franchise; a new property from Bungie; and Skylander’s Spyro’s Adventure, a new children’s game coming out that will tie the Internet together with real-life $10 toys.

But not ever in the company’s earnings release, or during the call, did Activision place much emphasis on mobile games or social games.

Actually, Facebook was mentioned once. Activision said that since Call of Duty: Black Ops First Strike launched on Feb. 1, players have spent an average of 58 minutes a day playing online, which is more than the 55 minutes an average Facebook user spends a day on the social network.

So, maybe it can build its own communities?

Still, one could argue that mobile and social are key components to the digital gaming experience.

In addition to Electronic Arts’ many investments in the space, including the purchase of Playfish, a social games publisher, Disney also acquired Playdom. Both plan to use the publishers to bring some of their more recognizable content from other platforms to Facebook. Social games are also becoming a massive business for privately held companies, like Zynga.

An analyst during Activision’s earnings call this afternoon asked about how the company viewed the various emerging platforms across the videogames industry.

In response, Activision’s CEO Robert Kotick said: “You hit on the most interesting of the fundamentals that are redefining interactive entertainment. More people are playing games than ever before.

“Facebook has done a good job of introducing interactive entertainment to people who have never engaged in gaming of that kind…We’ve always taken the approach of platform agnosticism. We deliver services across devices with a display and a microprocessor. We have to prioritize the resources based on the opportunity. As we look out three to five years, we see there being a lot more displays with microprocessors that will be capable of playing games. We are so excited about the prospects of the future. If it has a microprocessor and a display, our content can be there.”

Shhhhhh! Media, Tech Moguls Meeting Today. Don't Tell Anyone!

Peter Kafka — Tue, 11 Nov 2008 16:08:24 +0000

Under normal circumstances, if the CEOs of big public companies–like, say, Cisco (CSCO), Microsoft (MSFT) and Comcast (CMCSA)–speak in front of an audience of bigwigs, it’s news.

And who knows? Maybe John Chambers, Steve Ballmer and Brian Roberts will indeed say something important today and tomorrow at Quadrangle’s Foursquare conference. Chrysler’s Robert Nardelli is speaking too. He might have something newsworthy to say.

But you are unlikely to read about it.

That’s because there’s no press allowed at the private equity shop’s annual conference, which starts this afternoon at New York’s Plaza Hotel.

Or rather, there’s some press at the event. But they’ll be on stage. And they won’t be telling their readers and listeners what they saw and heard.

CNBC’s David Faber, Becky Quick and Maria Bartiromo, for instance, will be moderating panels over the next few days. So will the New York Times’ Andrew Ross Sorkin. And network TV news bigshots Katie Couric, George Stephanopoulos and Brian Williams will answer questions themselves (Portfolio’s Matt Cooper will be moderating that one).

Am I crabby because I asked (nicely) and couldn’t get in myself? Nah. It’s Quadrangle’s event, and they can run it any way they want. But it does look like a pretty good gathering of worthies. Maybe I’ll park myself in the Plaza’s lobby and see if I can bump into some of them.

Want to join me? Here’s the agenda for next two days:

Tuesday 11/11
2:00 PM WELCOME
Joshua L. Steiner (Quadrangle)

ONE ON ONE WITH JOHN CHAMBERS (Cisco)
Moderated by Jim Citrin (Spencer Stuart)

WHO DO YOU TRUST: INFORMATION AND NEWS IN AN OPEN WORLD
Tom Glocer (Thomson Reuters), Nancy McKinstry (Wolters Kluwer) and Sheryl Sandberg (Facebook)
Moderated by David Faber (CNBC)

ALL ABOUT WIRELESS
Jean-Bernard Lévy (Vivendi), Naguib Sawiris (Orascom Telecom) and Ben Wolff (Clearwire)
Moderated by Steven Rattner

4:15 PM BREAK

GOING IT ALONE IN AN INTERCONNECTED WORLD
Philippe Dauman (Viacom), Charlie Ergen (EchoStar) and Robert Kotick (Activision)
Moderated by Becky Quick (CNBC)

GLOBAL E-COMMERCE: $500 BILLION AND GROWING
Barry Diller (IAC) and Hiroshi Mikitani (Rakuten)
Moderated by Steve Hasker (McKinsey)

6:15 PM COCKTAIL RECEPTION
Grand Ballroom Foyer
The Plaza

Wednesday 11/12
8:30 AM WELCOME
ONE ON ONE WITH STEVE BALLMER (Microsoft)
Moderated by Ken Auletta (The New Yorker)

INNOVATION AND THE NEXT BIG IDEA
Jean-François Decaux (JC Decaux) Robert Stephens (Geek Squad founder?) and Jim Wiatt (William Morris)
Moderated by Andrew Ross Sorkin (New York Times)

A CONVERSATION WITH SAM ZELL (Equity Group, Tribune Co.)
Moderated by Joanne Lipman (Portfolio)

10:00 AM BREAK

COOP-ER-TITION: A CONVERSATION WITH PETER CHERNIN (News Corp.) AND BRIAN ROBERTS (Comcast)
Moderated by Ken Auletta

REBUILDING A BRAND FROM THE TOP DOWN
Dan Hesse (Sprint) and Robert Nardelli (Chrysler)
Moderated by Maria Bartiromo

NOON Concluding Luncheon
CAMPAIGN 2008: IN FRONT OF THE CAMERA AND BEHIND THE SCENES
Katie Couric (CBS), George Stephanopoulos (ABC) and Brian Williams (NBC)
Moderated by Matt Cooper (Portfolio)

[Image Credit: PinkMoose]

After Vote-Gate, Heads Must Roll on Yahoo's Board

Eric Jackson — Thu, 07 Aug 2008 00:00:50 +0000

To anyone who says that it’s inconsequential that Yahoo understated the level of shareholder dissatisfaction by more than half thanks to a “tabulation error” by its proxy counter, Broadridge Financial Solutions, I say: You couldn’t be more wrong.

This incident will have ramifications in the coming weeks for the composition of Yahoo’s board. But here’s the shocking thing: This latest batch of numbers might still underrepresent the level of disdain shareholders have for this board.

Any corporate election that doesn’t receive 95 to 98 percent support from shareholders for the incumbent management and board is an anomaly. Yahoo’s first press release from last Friday suggested that, despite all the hubbub of the failed merger talks with Microsoft and public criticism from Carl Icahn and others, Yahoo (YHOO) shareholders had let the incumbents off the hook.

Chairman Roy Bostock and CEO Jerry Yang were re-elected with 79.5 percent and 84 percent support respectively. These relatively benign results (compared to last year’s), combined with the fact that there were not more pointed questions at the meeting last week, led some observers to conclude that this board had “faced down” its critics.

Not quite. Gordon Crawford of Capital Research Global Investors did all Yahoo shareholders a favor by demanding a recount. Yahoo and Broadridge complied.

And results of that recount were alarmingly different from the first set of numbers. We’ve all heard of +/- 4 percent in polling, but when was the last time you heard of +/- 50 percent?

The recount might set a modern-day record among S&P 500 companies for the most “withhold” votes for a board in a corporate election. Only Vyomesh Joshi, head of Hewlett-Packard’s (HPQ) printer group, got off without a serious warning from shareholders (a 7.1 percent “withhold” vote).

The “withhold” vote for Bostock was 39.6 percent, not 20.5 percent as originally reported. And 33.7 percent of Yahoo shareholders withheld their support from Yang, not 14.6 percent.

Other Yahoo directors who fared poorly in the election were Gary Wilson (27.7 percent of votes withheld) and Compensation committee members Ronald Burkle (37.9 percent withheld) and Arthur Kern (31.7 percent withheld).

What would we all be doing today if Crawford had never called for a recount? If a “tabulation error” happens and no one is there to hear it, did it happen at all? We will never know.

And there will likely be more shoes to drop in this tragedy of errors. This “tabulation error” was only one of two major question marks surrounding last Friday’s initial voting results. Yahoo easily made Broadridge the fall guy for this first error.

The second error–how few eligible shares were counted in the final tally–isn’t so easily eluded. And for that, Yahoo will be the fall guy.

Only 75.8 percent of the eligible shares as of the June 3 record date were voted in this election. After such intense media scrutiny in the past few months, it seems odd that so few investors participated.

Last weekend, I dove into the numbers in detail and reviewed them against numbers from the last two Yahoo elections. On Sunday night I wrote about the most recent Yahoo shareholder vote and verified that there were 200 million fewer votes cast this year compared to the average over the last two years. I called on Yahoo to appoint an independent third party to review and certify the voting process.

Yesterday, as news of the voting irregularities circulated, I received a number of complaints from frustrated shareholders.

Some claimed they had received multiple proxies from Yahoo over the last month, with several arriving Aug. 4–the Monday after the election. Some said they had had trouble voting by phone. Others, who had initially voted for Icahn’s slate, said when they tried to re-vote against the Yahoo board, they weren’t able to do so.

How many other shareholders encountered similar difficulties? Without a full inquiry, we’ll never know.

These missing votes could have had an even more significant impact on the overall results. For example, Bostock received “for” votes from fewer than half of the total shares eligible to vote (only 45.8 percent of the 1.4 billion shares eligible to vote). He truly lacks the approval of the majority of the shareholders he is supposed to represent. With a 47 percent vote, Burkle also lacks majority support. And while Yang won majority support, he did so by the skin of his teeth, with just a 50.2 percent vote.

Governance Matters

At Friday’s meeting, I asked Yang, Yahoo President Sue Decker and Bostock about three issues that suggest to me that Yahoo’s governance oversight has been lax.

(1)

(2) Decker serves on three Fortune 500 boards: Intel (INTC), Costco (COST), and Berkshire Hathaway (BRK). Her duties to those companies required her to attend at least 22 meetings last year, according to proxy filings. And each meeting required significant preparation. As a Yahoo shareholder, I fail to see how outside commitments like these benefit Yahoo. Are they really necessary? Shouldn’t Decker drop a few of them until Yahoo finds solid footing again?

(3) About a third–31 to 36 percent–of Yahoo shareholders voted against the re-election of Roy Bostock and fellow Compensation Committee members Burkle and Kern last year. Yet all three continue to sit on this committee (or the board). Why? And why did they agree to pay outside directors average total compensation of $500,000 last year? Google’s (GOOG) outside directors were paid $250,000, on average, for their services last year. Decker received $2,700 for sitting on the Berkshire Hathaway board (and $110,000 per year for serving on the Intel and Costco boards). Why is Yahoo paying its directors so much?

I found the trio’s answers to these questions unconvincing. Particularly surprising were Bostock’s comments on Compensation Committee member tenure and compensation.

In the first place, Bostock said while 32 percent of shareholders voted against his reelection last year, 68 percent voted for him. And that’s not bad, he said. This glass-half-full logic explains why he has never bothered to explain to shareholders why he, Burkle and Kern have remained on the Compensation Committee and the Yahoo board.

Second, Bostock disputed my assertion that Yahoo’s outside directors were paid an average of $500,000 last year. When I asked him if he was definitively stating that he did not receive compensation of about $500,000 last year, he said “yes.” Yet, according to Yahoo’s own proxy statement, Bostock earned total compensation of $499,264 last year. 2007 compensation for Yahoo’s other board members was as follows:

Ronald Burkle: $482,046
Eric Hippeau: $496,674
Vyomesh Joshi: $519,520
Arthur Kern: $496,990
Robert Kotick: $492,774
Edward Kozel: $516,202
Mary Agnes Wilderotter: $205,832 (for five months of service; annualized $493,997)
Gary Wilson: $482,046

The average compensation for each Yahoo outside director in 2007: $497,531.

Third, Bostock also claimed that this year’s vote would be a far better indication of shareholder support for Yahoo’s Compensation Committee than last year. With 39.6 percent of shareholders withholding support from Bostock and 37.9 percent withholding it from Burkle, isn’t it time for them to step aside?

Fool Me Once, Shame on You; Fool Me Twice, Shame on Me

Given all this, I am deeply concerned that my interests and those of all Yahoo shareholders are not being protected by the company’s board.

We need to know why 200 million shares were missing from this year’s vote as compared to the last two years’.

We need to know why so many proxies were mailed late to shareholders (on our dime).

We need to know why so many shareholders are questioning whether their votes were counted.

Yahoo will try to sweep all these concerns under the rug, but we shouldn’t allow it. The company should immediately appoint an independent third party to address these questions and assure shareholders that their votes were properly counted.

Immediate Changes to the Board

Also, Yahoo needs to immediately make some changes to the composition of its board. Bostock and Burkle should do the honorable thing and step down from this board.

In truth, this should have happened a year ago. One wonders what might have happened in the last 12 months with Microsoft negotiations had Yahoo acted swiftly, following the 2007 annual meeting, to remove them.

BoomTown Plea to Jeff Bewkes: Free Jon Miller!

Kara Swisher — Fri, 01 Aug 2008 23:41:43 +0000

Yesterday, in what feels to BoomTown to be a deeply petty move, Time Warner said that it had blocked former AOL head Jon Miller from being considered as a possible Yahoo board member.

The reason is a noncompete Miller (pictured here) signed, part of a severance agreement he reached with the media giant after it unceremoniously tossed him out in late 2006.

A Time Warner spokesman said Miller was barred from working “for a variety of competitors, including Yahoo, until March of 2009.”

Like it matters.

According to sources at Time Warner (TWX), the decision came from on high at corporate and not from the AOL unit. And it is not due to jealousy over attention Miller has received of late–Microsoft was also interested in hiring him to take over for departing exec Kevin Johnson.

Miller, sources said, was called by Time Warner CEO Jeff Bewkes (pictured here) last night and told by him, “We’ve changed our mind.”

Why?

Well, to be sure, Miller is no Time Warner favorite, even after being gone for almost two years.

But Miller, whom Time Warner and AOL execs never miss an opportunity to bash, off the record, is also no threat to AOL, which he actually helped revive from the ruins of the disastrous AOL-Time Warner merger.

While working on my second book about AOL in 2002, I will always remember visiting Miller at AOL HQ in Dulles, Va.–where he took up residence in former AOL exec Bob Pittman’s office–and finding him unusually calm after he got the thankless job of following Pittman and AOL icon Steve Case.

Time Warner forces, in the form of new CEO Dick Parsons, had finally managed to take back control of the company and–in a fit of misguided pique–brought holy hell down on the AOL unit.

It was a profoundly emotional reaction, which cost Time Warner precious years and much, much money, as the Internet business revived itself and AOL largely sat on the sidelines.

Miller was in the unenviable position of cleaning up the mess, while also having to listen to endless griping from his bosses.

And, despite the line being put out by Time Warner, he did a pretty good job.

While he might have dumped the dial-up business sooner and been more of an organized manager (the two big complaints about him), Miller did strike AOL’s lucrative Google search ad deal and also bought Advertising.com. (He also tried to buy YouTube, to no avail.)

That purchase should be reason enough for Time Warner to erect a small altar to him, given that it is one of AOL’s only truly valuable assets and the reason Microsoft (MSFT) and Yahoo (YHOO) have been interested in possibly buying the unit.

But no.

Instead, there is the usual he-said-she-said wrangling about whether Miller got approval for being let out of the noncompete clause.

Time Warner apparently claims Miller never got an official waiver, and Miller forces say Bewkes okayed the issue weeks ago, when it was first announced that Miller was one of the board picks being put forth by activist investor Carl Icahn.

It defies belief to go with Time Warner version, given everyone and their mother’s mother knew Miller was the likely pick of both Icahn and, especially, Yahoo CEO Jerry Yang.

More interesting is why Time Warner would choose to speak now, especially on the day of Yahoo’s board meeting.

At the meeting, the Yahoo board approved expanding its number of directors from 9 to 11 and formally voted to let Icahn take over the seat being vacated by Robert Kotick.

Miller was the shoo-in, with other likely choices. including former Nextel (S) exec John Chapple, media exec Frank Biondi and former Grey Global Advertising head Edward Meyer.

Perhaps Bewkes imagines somehow that Miller will be a leverage point in talks Time Warner has been having with Yahoo to be acquired. But the smooth exec is an expert negotiator and that seems unlikely.

More likely is that those talks, like AOL’s talks with Microsoft, have gone a little cold of late as everyone shuts up and stops making ill-conceived moves, to show Wall Street that they have their forward-leaning Internet strategies figured out.

No one does. Not Yahoo. Not Microsoft. And, most definitely, not Time Warner’s AOL.

That’s why Bewkes should stop the saber-rattling and free Miller to serve on the Yahoo board.

Yahoo could benefit and, as it stands now, Time Warner just looks silly–it does not want Miller, but it doesn’t want anyone else to have him.

My three-year-old knows how to share better than that.

Yahoo Shareholder Vote: Old Board Stays Put (While AOL Makes Another Boneheaded Move!)

Kara Swisher — Fri, 01 Aug 2008 20:58:17 +0000

After its annual meeting today, as its board members had lunch together, Yahoo released the results of its shareholder vote and it seems we will still have CEO Jerry Yang to kick around some more.

Yang garnered 85.4 percent of the shares to stay on as a director of the Internet company, with 14.6 percent withheld.

While having almost 15 percent of your investors think you are not worthy is not good, it is also not nearly as bad as it could have been.

In fact, overall results are actually better than last year. Thus, being attacked by Microsoft (MSFT) and activist investor Carl Icahn has had a dulcet effect on Yang’s image.

Yahoo Chairman Roy Bostock fared worse, grabbing only 79.5 percent of the yes vote, with 20.5 percent withheld.

Yahoo (YHOO) stockholders dinged three outside proposals: a pay-for-superior-performance principle for executive compensation, the establishment of policies on Internet censorship, and the creation of a board committee on human rights.

The board also officially put Icahn in the seat vacated by Activision (ATVID) CEO Robert Kotick (whose vote was among the best, ironically, with 92.4 percent for and 7.6 percent withheld).

It also expanded the board to 11 from 9, but will not announce the two new members until Aug. 15.

Former AOL head Jon Miller, who was one of the likely picks, is apparently being blocked by Time Warner via a noncompete agreement. Miller was bounced from AOL some years ago.

Miller was called directly by Time Warner (TWX) CEO Jeff Bewkes last night, sources said, and was told by Bewkes, “We’ve changed our mind.”

More on this idiotic development from the AOL owner next.

Until then, here are the pertinent stats on the Yahoo vote:

Roy J. Bostock (Shares for: 832,023,657/79.5%; Shares Withheld: 214,071,927/20.5%)

Ronald W. Burkle (849,373,291/81.2%; 196,722,293/18.8%)

Eric Hippeau (948,862,579/90.7%; 97,233,005/9.3%)

Vyomesh Joshi (971,594,650/92.9%; 74,500,934/7.1%)

Arthur H. Kern (814,871,925/77.9%; 231,223,659 /22.1%)

Robert A. Kotick (967,044,818; 92.4%; 79,050,766/7.6%)

Mary Agnes Wilderotter (964,939,727/92.2%; 81,155,857/7.8%)

Gary L. Wilson (856,006,576/81.8%; 190,089,008/18.2%)

Jerry Yang (893,055,602/85.4%; 153,039,982/14.6%)

D6 Conference Recap

John Paczkowski — Tue, 08 Jul 2008 15:59:17 +0000

Here are all of the highlights from the sixth D: All Things Digital conference, organized by day and speaker:

Day One

Bill Gates and Steve Ballmer, Microsoft

You would have loved Windows 1.0. Walt. You would have LOVED it.”

–Ballmer

Session post | Videos: One and Two

Windows 7 Demo

Day Two

Jeff Bezos, Amazon.com

People loved their horses, too. But you don’t keep riding your horse to work just because you love it.”

–Bezos on the difference between physical books and digital ones

Session post | Videos: One and Two

Bobby Kotick, Activision

The social element has really transformed the gaming experience.”

– Kotick on the impact of games like Guitar Hero

Session post | Video

Guitar Hero IV Demo with Tony Hawk and Paula Abdul

Howard Stringer, Sony

If we were any more successful, we’d be bankrupt.”

–Stringer on the success of Sony’s LCD business

Session post | Video

Barry Diller, IAC

Hollywood is a community that’s so inbred, it’s a wonder the children have any teeth.”

Session post | Video

Michael Dell, Dell

I could take him.”

–Dell on his chances of success in a brawl with Apple CEO Steve Jobs

Session post | Video

Jerry Yang and Sue Decker, Yahoo

I will never be a CEO again.”

–Yang

Session post | Videos: One and Two

Jeff Bewkes, AOL

AOL is the Rodney Dangerfield of the Web. We don’t get no respect.”

Session post | Video

Nathan Myhrvold, Intellectual Ventures

We invest in the creation of ideas… It’s like Baby Mama, with me as the mama.”

Session post | Video

Demo: G.ho.st Web Operating System

Lets users access their desktop from any computer with an Internet connection.

Session post | Video

Tom Glocer, Thomson Reuters

We have one great advantage over bloggers: we write once, and sell many times to many different media outlets.”

Session post | Video

Mark Zuckerberg and Sheryl Sandberg, Facebook

I won’t ever stop until you’re either the biggest thing around, or you’re dead.”

–Kara Swisher on her relentless coverage of Facebook

Session post | Videos: One and Two

Rupert Murdoch, News Corporation

I want to meet Obama. I want to know if he’s going to walk the walk.”

Session post | Full Session Videos: One, Two, Three, Four, Five, Six

Day Three

Demo: evri

An application that graphs the Web via grammatical information.

Session post | Video

Demo: 23andMe

Web-based, direct-to-consumer genome services.

Session post | Video

Melinda Gates, Bill & Melinda Gates Foundation

All lives are equal.”

Session post | Videos: One and Two

Demo: TransMedia’s Glide

A mobile-operating system that cuts across all operating systems.

Session post | Video

Tom Rogers, TiVo

The TV set and its primary position in the home isn’t going anywhere in the future.”

Session post | Videos: One and Two

Demo: Deka

The “Luke Arm” prosthesis, a state-of-the-art bionic arm.

Session post | Video

Kevin Martin, FCC and Lowell McAdam, Verizon Wireless

You’re the chairman of the FCC. How did you allow this to happen?”

–Walt Mossberg grills Martin on the lousy broadband situation in the States

Session post | Videos: One and Two

Ask New D6 Speaker–Yahoo President Sue Decker–a Question!

Kara Swisher — Fri, 09 May 2008 15:48:08 +0000

Earlier this week, BoomTown posted our speaker list for the sixth edition of D: All Things Digital, which will take place in a few weeks–May 27 to 29, to be exact–in Carlsbad, Calif.

The annual gathering of tech and media luminaries was created and is run by my partner Walt Mossberg and me.

D6 tech and media speakers include: Microsoft Bill Gates and Steve Ballmer of Microsoft (MSFT); News Corp.’s (NWS) Rupert Murdoch; Jeff Bewkes of Time Warner (TWX); Mark Zuckerberg and Sheryl Sandberg of Facebook; Michael Dell of Dell Computer (DELL); IAC’s (IACI) Barry Diller; Amazon’s (AMZN) Jeff Bezos; Howard Stringer of Sony (SNE); and TiVo’s (TIVO) Tom Rogers.

Also: Tom Glocer of Thomson Reuters (TRI); Melinda Gates of the Gates Foundation; FCC Chairman Kevin Martin; Lowell McAdam of Verizon Wireless (VZ); Activision’s (ATVI) Robert Kotick; and former Microsoft tech guru Nathan Myhrvold of Intellectual Ventures.

Just recently, we added Jerry Yang, CEO and co-founder of Yahoo (YHOO), and now he is being joined onstage at the conference by Yahoo President Sue Decker (pictured here in a lovely Wall Street Journal dot-drawing).

The pairing should make for a lively session, given all the heat around Yahoo of late, largely related to the scuttled attempt by Microsoft to buy the company.

What would you like to know about that and anything else about Yahoo?

As it so happens, you can ask!

While the conference is sold out, you can submit questions that you would like answered to Yang and Decker or any of the speakers via text or video. Walt and I will pick the best ones and let loose.

Ask early and often here!

In addition, the whole conference will be online at AllThingsD during the conference, via live blogs and reports of breaking news (and there will be breaking news, as there always is), along with video highlights.

And videos of all the interviews will be posted soon after it is over.

All Things Don't-Blink-or-You'll-Miss-It!

Kara Swisher — Mon, 05 May 2008 07:04:08 +0000

Bill Gates and Steve Ballmer of Microsoft (MSFT). News Corp.’s (NWS) Rupert Murdoch. Jeff Bewkes of Time Warner (TWX). Yahoo’s (YHOO) Jerry Yang.

All of them engaged in roiling Internet deal-making of late and all of them in just three weeks on the same stage–but not, thankfully, at the same time, or we’d need a professional negotiator–at the 6th D: All Things Digital conference in Carlsbad, Calif.

The annual gathering of tech and media luminaries was created and is run by my amazing partner Walt Mossberg and me (see us here at D5) and will take place May 27 to 29.

The conference, as we describe it on our Web site, is “unlike any other executive conference.” What we mean by that is that we try to determine the next direction of the digital revolution via unscripted and informal, but pointed, conversations about the impact of digital technology with industry leaders.

In other words, Walt and I needling at the major players of the digital sector, until they give up the good stuff.

The other digital and media leaders coming? That would be: Mark Zuckerberg and Sheryl Sandberg of Facebook; Michael Dell of Dell Computer (DELL); IAC’s (IACI) Barry Diller; Amazon’s (AMZN) Jeff Bezos; Howard Stringer of Sony (SNE); and TiVo’s (TIVO) Tom Rogers.

To say our timing is impeccably planned would be undeserved–we had no idea so much news related to all these companies and their leaders would break out, from the tough economy to takeover battles to court face-offs to mergers to trying to create a whole new way of reading.

Also, there will be some–as yet under wraps–amazing demos onstage too.

While the analog conference has been sold out for many months, the action will be on the AllThingsD.com site throughout the conference with round-the-clock live blogging by Digital Daily’s John Paczkowski, as well as video highlights from stage.

In addition, we’ll be pointing all over the Web to important tech and media news that breaks at D6.

And we will also stream the entire conference in the weeks after the conference takes place, so ATD‘s audience can experience the whole thing, even if they cannot all attend.

But anyone’s questions can be there, though–this year, you can submit questions to any of the speakers via text or video that you would like answered. Walt and I will pick the best ones and let loose. Ask early and often here!

Walt and I are very excited for D6, even after last year, when we brought together industry legends Bill Gates and Apple’s Steve Jobs, for an historic joint interview.

At the time, Walt and I joked that we would not be able to top that amazing event (the video of the entire interview is below).

That interview was nearly unbeatable, but we also think that with the top-level interviewees we have assembled for D6, that it is game on.

Until then, here’s the Gates/Jobs video from D5:

[ See post to watch video ]

Yahooian Rhapsody

John Paczkowski — Fri, 15 Feb 2008 19:00:09 +0000

[ See post to watch video ]

Yahoo Board to Yang: Save the Drama for Your Mama

John Paczkowski — Fri, 15 Feb 2008 18:28:04 +0000

Seems the Yahoo board’s “unanimous” rejection of Microsoft’s $40 billion-plus bid for the company may not have been so unanimous after all. According to the New York Post, the board is actually split over the issue.

On one side is Yahoo CEO Jerry Yang, Eric Hippeau, a managing partner at Softbank Capital Partners and a longtime Yahoo (YHOO) director, and Robert Kotick, chairman and CEO of Activision, who all oppose the bid. On the other is a group led by Yahoo Chairman Roy Bostock and billionaire investor Ron Burkle, who fear Yang has allowed his emotions to get the better of him and forgotten about his fiduciary duty to Yahoo shareholders. And in the absence of a compelling alternative strategy, that could expose the company to litigation.

“The emotional part of Yang would rather do anything but sell to Microsoft,” (MSFT) a source close to the company told the Post. “But he doesn’t have the cards to come up with a value-creating, competitive alternative for shareholders.”

Say Hello to the Yahoo Board Members

Kara Swisher — Mon, 28 Jan 2008 08:58:05 +0000

One of the most overlooked parts of Web companies are their board members, so I think it is time to start looking more carefully at those firms where the role of directors is going to be increasingly important in 2008.

First stop, obviously, is Yahoo, which reports its fourth quarter and also full-year earnings (and also perhaps some board-approved layoffs) tomorrow after the markets close.

With everything from consistently persistent takeover rumors, a still-lagging stock price and continued scrutiny on its moves to revive itself, the company’s managers and–it must be assumed–its directors obviously face challenges in the year ahead.

They certainly seem to be a pretty experienced group, with just the right kind of expertise in retail, telecommunications, engineering and entertainment.

Curiously, with all the noise around Yahoo, this has been a circumspect bunch and it’s not clear how much influence this group is exerting over management or how willing it is to roll up its sleeves and get into it.

Still, board members are supposed to be where the buck actually does stop, so, as a BoomTown public service, here’s a little primer of who’s who on the Yahoo BOD, so you know who is actually in charge (and, of course, who is to blame):

First among equals is obviously Yahoo CEO and Co-Founder Jerry Yang, who needs no introduction. Born in Taiwan and raised in San Jose, Calif., he has been trying to bring back the company he founded with David Filo since taking over the top slot at Yahoo last June. The obviously iconic figure within the company, he occupies the hottest seat of all. Some think his leadership has not been nearly bold enough, while others think his steadier approach to Yahoo’s revival is just what the company has needed.

Terry Semel served as Yahoo CEO from 2001 to 2007. After he left that job when the company’s troubles became more pronounced (to be fair, Semel did do a great job getting Yahoo back from its last brink when the first bubble popped), the former Hollywood mogul kept his title as chairman. He is also on the board of Polo Ralph Lauren, as well as many arts and cultural organizations. Recently, Semel revived his Los Angeles-based new media investment firm, Windsor Media, and rumors abound to his intentions–including possibly making a play for a Hollywood studio. Big question: Will Semel continue as chairman of Yahoo in 2008?

What to make of Roy Bostock, who has been on Yahoo’s board since 2003? I’ll tell you what: If Semel were to step down as chairman, the chatter is that the former top-level advertising exec (chairman and chief executive officer of D’Arcy Masius Benton & Bowles) is best suited to the job, given the importance of Yahoo’s ad business. Bostock also serves now has chairman of Northwest Airlines and is on the board of Morgan Stanley and is a principal at Sealedge Investments LLC.

Ron Burkle, founder and managing partner of the Yucaipa Companies, a private investment firm, has been a director since 2001. The high-profile Burkle, of course, is better known for being best billionaire buddy of Bill Clinton (and big fundraiser for Hillary Clinton). He is a curious choice to be on the board, although he is said to add an interesting perspective and also has obvious experience in retail and distribution (largely in the supermarket industry). He is also on the boards of Occidental Petroleum and KB Home.

Vyomesh Joshi joined the Yahoo board in 2005. He probably brings a good consumer product perspective to the company from his perch as executive vice president of the Imaging and Printing Group at Hewlett Packard, a $26 billion business with an operating profit of $3.8 billion, which is a whole lot of the kind of ink Yahoo needs. The longtime HP exec also has responsibilities in the entertainment arena for HP, which should be a boon to Yahoo.

The same goes for Robert Kotick, the chairman and CEO of games maker Activision, which recently merged with Vivendi’s Blizzard Entertainment unit, to create one of the biggest gaming companies in the world. Yahoo could use a little Guitar Hero buzz that Kotick’s company has gotten from the third version of the popular interactive game, a big holiday success, and also Blizzard’s World of Warcraft.

The other Northwest Airlines link is its Chairman Emeritus Gary Wilson, who has been on the Yahoo board since 2001. Wilson, who is also on the board of CB Richard Ellis, has an extensive financial background, working as the top numbers guys at places like Walt Disney (where he was a longtime board member) and Marriott. But can he lend his expertise to make the numbers work better at Yahoo?

The only woman director, Maggie Wilderotter, joined last July and serves as the chairman and CEO of Citizens Communications, which is an independent provider of telecommunications services. That background is important for Yahoo, but perhaps more important is her experience as a SVP at Microsoft (rumored to be the main company interested in acquiring Yahoo). Wilderotter has also been president and CEO of Wink Communications and has held a number of jobs at AT&T, and serves on the board of Xerox and the Tribune Company.

Eric Hippeau, managing partner at Softbank Capital Partners, is one of the two granddaddy Yahoo board members (along with Arthur Kern), having served as a director since 1996. Before Softbank, he was chairman and CEO of Ziff-Davis in its heyday. Hippeau is also on the board of Starwood Hotels and Resorts Worldwide.

Arthur Kern has also been on the Yahoo board since 1996. Kern made his fortune selling off American Media, an owner of radio stations, which he co-founded and ran. Kern now invests in marketing and media companies. (BoomTown, with great regret, has never met him after all these years–lazy, lazy BoomTown! And everyone says how nice he is. Lunch, Arthur?)

Ed Kozel, the CEO of the start-up Skyrider (a P2P search engine), is perhaps the most experienced technologist on Yahoo’s board and another key member of the board, say many, where he has served since 2000. He’s been a VC (Open Range Ventures), a consultant (Integrated Finance) and also was a longtime Cisco exec (he was CTO and SVP of business development there) and board member. He’s also been on the board of Reuters and is a director for Network Appliance.

Web 2.0 Summit: Gaming

John Paczkowski — Thu, 18 Oct 2007 21:38:42 +0000

Trip Hawkins, Founder & CEO of Digital Chocolate, and Robert Kotick, CEO of Activision, take the stage to discuss “core gaming” with Webb Alert host Morgan Webb.

A bit slow getting started here, but Hawkins soon gets things moving by claiming traditional content is dead. We’re headed toward a world of immersive, social content, says Hawkins, a world in which content isn’t something that we pay to watch or listen to, but something we pay to participate in–a social experience.

Rumor has it Kotick is a huge fan of Activisions Guitar Hero game, but you wouldn’t know it from his demeanor. No axeman, he’s perfectly suited to discussing “casual gaming.” Webb asks if Kotick feels threatened by such gaming, which isn’t really Activision’s forte (at least not yet). The video business as you would traditionally define it is a $30 billion business, says Kotick, and we’re the No. 1 player in that market. To the extent that anything extends that market, we’re happy, he adds.