Today, Yahoo leaders — all of them in two different memos — took to the keyboards to fill their 14,000 employees in on what’s up.

Reading them, Yahoos must now be more confused than ever.

To summarize: Yahoo is for sale, sort of. But we’re taking it slow, because we always like to drag out the uncertainty here at Sunnyvale HQ. Hey, keep working hard and innovating, despite the still-matrixed system. But don’t fret that your job and career hang in the balance. And have a good weekend!

In the first email, Yahoo Chairman Roy Bostock and co-founders David Filo and Jerry Yang — also a director — penned a rambling missive, which finally admitted the company was indeed, as was first reported here, for sale.

Yahoo said hired-gun investment advisor, Allen & Co., was “fielding inquiries from multiple parties that have already expressed interest in a number of potential options.”

Not to be a niggler, but didn’t Yang tell the troops at an all-hands meeting recently that Yahoo was not for sale?

Details! Thus, said the memo, until the company sorts out all the offers just pouring in — not so much, but when you’re selling a house, you put on the dog — Yahoos had to keep working hard.

Therefore: “What Yahoo! needs to do better — and we’ve talked about this — is accelerate innovation, reignite inspiration, and give our users what they want now — great content that is engaging and easy-to-use on any device and provides an experience in which they can participate and contribute. Perhaps most importantly, we need to anticipate what they will want next.”

You’ve. Talked. About. This. You mean to try to make cool stuff like every other tech company — Apple, Facebook, Google — already does? Mind-blowing.

After a little throat-clearing on its fake search for a new permanent CEO and some media-bashing (yes, this all my fault!), the memo noted that all this fancy strategery is going to take “months, not weeks.”

(Is it just me or does it feel as though former CEO Carol Bartz was fired a badillion years ago, instead of just weeks ago? Plus, I actually believe I officially now miss her kooky-but-genuine Friday staff emails.)

The Gang of Three email was followed by one from the incredible shrinking interim CEO Tim Morse, who said Yahoo was not in “limbo,” due to all this obvious limboness about the strategy.

“That means we will not be sitting still over the next few months,” Morse wrote. “We are actively making decisions and taking action.”

In other words, nothing to see here. Except everything.

Oh, I give up — just read for yourselves:

Dear Yahoos:

In our recent all hands meeting, we talked about the Board’s strategic review to help return the Company to a path of robust growth and industry-leading innovation. While our teams are working to evaluate the many opportunities by which Yahoo! can continue building on our success, all kinds of people have been — and will continue — speculating in the media about where that work is headed, so we thought it best to provide you with some additional context directly from those of us who are closest to it. We don’t have specific news to share with you today, but we are committed to communicating with you directly from time to time — especially given the level of external swirl — so that you know where we are in the process. You can expect periodic updates from us and we encourage you to communicate with us as well.

At the heart of what we are doing is our belief that Yahoo!’s core strengths are not only relevant to where users are going today, but can serve as a foundation for the next phase of our company’s growth. Consider our strengths: we have 680 million users worldwide. We have nine of the #1 properties in the U.S., and we are a leader in display advertising. Our brand is iconic — we are not the only ones who bleed purple. By whatever measure you want to use — engagement, quality of products and services, our value to our advertisers — we all feel that we have what it takes to succeed. Also, our Asia assets remain one of our top priorities and we continue to work well with the teams there. As you may have seen, Alibaba Group has just announced a liquidity event for its employees that reflects a continued appreciation in its value, and therefore of the value of our stake.

What Yahoo! needs to do better — and we’ve talked about this — is accelerate innovation, reignite inspiration, and give our users what they want now — great content that is engaging and easy-to-use on any device and provides an experience in which they can participate and contribute. Perhaps most importantly, we need to anticipate what they will want next. That is the path to enhancing the value of Yahoo! for all of its stakeholders, including its users, customers, shareholders, partners and Yahoos everywhere. Our strategic review is designed to help us map out the best way to achieve that.

At this point, we cannot offer many specifics about the Board’s review; we’ve just gotten started. You should know that the entire Board and management team are fully aligned and unanimous in their views regarding the scope of this work. Allen & Company was a logical choice to help us in this review, because they have been one of our advisers for some time, and this is familiar territory for them. Achieving success in our sector is intrinsic to what they do for a living, and they will be constructive partners.

Our advisers are working with us to develop ideas that we will pursue proactively. At the same time, they are fielding inquiries from multiple parties that have already expressed interest in a number of potential options. We will take the time we need to select and structure the best approach for the company, its shareholders and employees.

In addition, as we announced previously, the Board has commenced a search for a permanent Chief Executive Officer. That process also continues.

When we have updates that we can share we will do so. There will be plenty of rumors and speculation as different parties try to advance their agendas in the media — but it is important that we not be distracted by the rumors and speculation.

You are instrumental to the success of our business — we can’t do it without you. While we will move with a sense of urgency, this process will take time. Months, not weeks. We know that’s a lot of potential distraction, but we believe it will be worth the wait. We are forging a path to a next phase of growth for Yahoo! that feels like our best days: fun, full of possibility, and always in search of how to deliver the new thing people want from us. Together, we can write the next great chapter in the Yahoo! story and secure our place as one of those rarities: an internet company that endures.

Jerry
Roy
David

Yahoos,

I’m sure by now you’ve all seen the note from Jerry, David and Roy. I want you to know that while the Board works through all of our options, CEO Staff and I have been charged to move the company forward.

That means we will not be sitting still over the next few months. We are actively making decisions and taking action.

In fact, for three days this week, CEO staff and I met to do just that. Our planning for 2012 is well underway, and we continue to execute on our current plans — such as our Social Chrome announcement this week. (I want to make sure to give a big shout out to the team behind it; it’s getting some great press.)

You see, the Board is confident we can execute our current game plan in the short term. We’ve done some truly great work on updating the foundation of Yahoo!, and we’ve got some good things in the immediate pipeline. So, the Board’s focus is where it should be — on our long-term outlook, and how we best position ourselves to be successful in 3-5 years.

We need a flexible, visionary plan. That’s why the Board is actively looking at all the options available to put Yahoo! on a strong trajectory.

That being said, while the Board makes this decision, it does not mean we are in limbo. We have to keep Yahoo! moving ahead. And to do that, there are three things I need Yahoos everywhere to focus on:

1. Speed: Emphasize quick execution and decision-making

2. Accountability: Do what you say you’re going to do — and take ownership for time to market, monetization, user engagement, quality, or whatever metric defines success for your team

3. Purpose: Rally behind our mission and purpose: creating deeply personal digital experiences.

In the meantime, we will keep you updated as much as we can. And we will earn your trust — we know we have to.

Have a good weekend.

Tim

Demand Media handily beat Wall Street expectations in its first quarter results today, released after the market closed.

The company reported revenue of $79.5 million and six cents a share in adjusted net income.

Investors were expecting the company to report about $69.6 million in revenue for the three months, with four cents a share in adjusted profits.

On a GAAP basis, the net loss per share was 13 cents compared to 94 cents a year ago.

The decent results could boost Demand’s stock, which has been hit hard since Google launched “Panda,” an overhaul of its search algorithm to improve results and remove poor quality content.

In a conference call at 2 pm PT today, which BoomTown will be liveblogging, most will be paying more mind to what the online content company’s top execs–especially CEO Richard Rosenblatt–have to say about the impact of the updates from Google to Demand’s various Web offerings.

As a first strike, some of Demand’s execs briefed the media earlier today on efforts to improve the quality of its content–you can read the official press releases here on that and also here.

In them, Demand said it will remove some online posts that were substandard and created under a now-suspended writers’ compensation system. It said it is also improving reader feedback tools and adding more substantive stories to its sites.

Those are all good ideas, since Google’s tweaks have been chewing away at a range of Web sites–such as those owned by Demand–which rely heavily on search engine optimization to bring in huge traffic.

One big hit for Demand, due to Panda, has been to its flagship eHow site.

All the mishegas has hurt the Santa Monica, Calif., company’s stock. It’s down just over 30 percent since Demand’s IPO in late January, as bearish investors fret over the implications of Panda.

Still, in its report, Demand said its content and media revenue was up 72 percent to $51.9 million, compared to $30.2 million last year.

One of the results of Yahoo’s weak earnings report earlier this week has been the renewal of chatter about possible changes in its leadership and even ownership.

And continued investor discomfort with its troubled stock price–Yahoo shares are down 7.25 percent year over year and an astonishing 49 percent on a five-year basis–and the level of renewed grumbling by major institutional shareholders is causing some key players to go back to their PowerPoints to reevaluate various options.

(By way of contrast, Google is down about 4.5 percent year over year–largely due to last week’s earnings release with higher than expected expenses–but still up more than 20 percent for the five years.)

As many might recall, last year Yahoo was under scrutiny by a number of interested parties–from big media companies to other digital players to private equity firms–considering a number of takeover scenarios.

Most of them were just talk and no action resulted, but that did not mean that interest went away.

The truth is, they are still out there and ruminating–this time with what sources describe as a much more amenable Yahoo board, with several of its key members willing to entertain any legitimate offers or ideas to improve the Silicon Valley search giant’s prospects.

In the last go-round, by contrast, Yahoo’s top execs–including CEO Carol Bartz–denied any interest in the swirl of rumors related to a variety of ideas.

That’s definitely changed–at least at the board level–so here are three very credible scenarios of what could happen:

Peetie, Peetie, Yahoo-Sweetie

Late last year, BoomTown wrote a post about the interest that former News Corp. COO and President Peter Chernin–who now owns his own entertainment production company–had in the situation at Yahoo.

As I wrote in November:

But multiple sources from a variety of sides said that Chernin, a well-liked and deeply experienced media and entertainment exec, has been contacted by a number of private equity firms and other investors about his interest in becoming involved should any of the various and sundry scenarios around the Internet giant pan out.

And Chernin, many sources said, has expressed a definite interest in the situation, perhaps because he was deeply involved in a previous deal when running News Corp.

At the time, it involved combining the media giant’s Myspace social networking site with Yahoo and also Microsoft’s portal MSN and creating a new company, code-named “TrafficCo.”

Indeed, that interest remains for Chernin, who has also been an increasingly active investor, including in the digital sector. He is an angel funder of the hot social media app start-up Flipboard, and also just joined the board of the popular Pandora music service.

The most likely possible scenarios have him joining with deep-pocketed partners, including Providence Equity Partners and, yes, Microsoft, as well as investment banks or advisory firms, such as Morgan Stanley and Code Advisors.

The approach being considered–which would only be done in a friendly way, with the cooperation of Yahoo’s board–would center on making a large enough investment in its shares, allowing the group to take control of the management and the board, putting Chernin in as chairman and maybe CEO (or with a new CEO–see next section).

If Microsoft were involved–and Chernin has strong ties there–such a scenario might include folding all its online properties into Yahoo and renegotiating its rocky search partnership, too.

This is an idea that intrigues a lot of people–including current Yahoo board chairman Roy Bostock, co-founder Jerry Yang and other board members–who have indicated recently to several investors and dealmakers a willingness to listen to credible player such as Chernin.

But, in this scenario, it would be up to Chernin and his partners to make a prosposal, said sources, and he might decide that the complexity of getting the power to make big changes at Yahoo is too big to tackle.

In addition, Chernin remains a successful Hollywood player, with several major television and movie projects in the works, as well as big investment possibilities in Asia.

“Does he want the headache of Yahoo at this point in his career?” asked one person, among many Chernin has talked to recently about becoming involved in the company. “Would you?”

Maybe so, if it would provide a big financial windfall. Many think an exec with a reputation like Chernin’s could easily begin to move Yahoo’s moribund stock upward quickly.

ABC (Anybody But Carol)

Here’s one truth: Yahoo CEO Carol Bartz does not get proper credit for a number of moves she has made since coming to the company two years ago, including cleaning up the messy corporate structure, de-complexifying garbled systems, cutting costs and bringing its far-flung operations into line.

Yahoo’s stock is certainly doing better than when she arrived in early January of 2009, when it was in the $12 range compared to its current $16 price point.

But here’s another: That stock price now includes more than $10 in solid assets–cash and Yahoo’s much more valuable stakes in China’s Alibaba Group and Yahoo! Japan–leaving very little true share appreciation.

And here are more truths: Bartz’s inability to get revenues growing, innovations flowing, promising start-ups acquired and–most importantly–to stop the continual exodus of talent out the door of Yahoo has made her tenure shakier than ever.

Add to that making its relationships with Asian partners more tense, almost no traction in key mobile, video and social arenas, a record of loud public declarations that have fallen flat and serious troubles in Yahoo’s search and online partnership with Microsoft–a deal Bartz struck and is charged with managing–recently highlighted in Yahoo’s earnings earlier this week.

As shareholder activist Eric Jackson, who has long agitated for change at Yahoo, wrote this week in a post:

“The truth is that investors are fed up with Bartz. Their enmity towards Bartz is palpable when you talk to them. Bartz talked a big game coming into the job and she hasn’t delivered. It’s that simple.”

Well, not that simple and maybe not fair, but it’s also clear that no one thinks Bartz will be re-upped when her contract is up in 18 months.

Thus, it’s no surprise that ideas of other possible leaders of Yahoo are being contemplated now.

Here’s the short list I have made of my choices: Akamai President and Yahoo board member David Kenny; former Microsoft exec and current Juniper Networks CEO Kevin Johnson; former AOL CEO and current News Corp. digital head Jon Miller; and Nikesh Arora, current Chief Business Officer and sales head at Google.

There are plenty more to pick from, of course, and any could be installed in conjunction with an effort such as Chernin’s.

AOL Under the Hoop

No good Yahoo scenario plotting can be contemplated without including AOL and its flashy CEO Tim Armstrong.

Armstrong has made no secret of wanting to get ahold of Yahoo properties to apply the strategy he has been trying at AOL to get it moving again.

Which is: To become the premiere digital media company.

Which is actually Yahoo’s new motto–although arguably, in word and deed, Armstrong has been much more active in pushing the concept and narrative.

That includes his incessant acquisitions of all kinds of online media properties, including the big fish–the $315 million purchase of the Huffington Post and the coronation of its even-flashier co-founder Arianna Huffington as content chief.

Armstrong has certainly not been averse to the idea of a Yahoo-AOL hookup with him at the top, and has been actively talking to anyone interested in such a deal.

And things could get a lot more interesting if AOL linked with a bigger strategic partner, such as News Corp. or Disney or even Google, Armstrong’s former stomping grounds.

Still, wishing does not make it so, especially with a much smaller and weaker set of assets than Yahoo and a still poor record on goosing its advertising sales.

AOL’s stock is down 30 percent year over year, as investors still worry about Armstrong’s ability to turn the company around, which kind of puts him in the same situation as Bartz.

“AOL is waiting under the hoop for whatever happens, which is a good place to be,” said one person close to the situation. “Why not?”

Why not, indeed–so, let the games begin.

Will Yahoo’s revenue growth drought finally end this quarter?

We’ll see tomorrow when Yahoo reports its first-quarter earnings, after the markets close.

As usual, investors will be looking for some sign that the Silicon Valley Internet giant’s lackluster revenue results have improved in CEO Carol Bartz’s over-promised but still under-delivered turnaround effort.

And despite Wall Street worries that sales will remain flat, sources insist that display revenue will be slightly better than expected, although those from its declining search business will remain weak.

A poll of analysts is expecting Yahoo to report $1.05 billion in net revenue and earnings of 16 cents a share.

That compared to revenue of $1.13 billion and 22 cents in earnings in the same period a year ago, which was goosed by the sale of its Zimbra email asset to VMware, as well as some benefits from its search and online advertising partnership with Microsoft.

There’s no extra cherries on top this quarter, especially in the search arena, which BoomTown previously reported was troubled.

As I wrote last week:

In fact, although its display business will show a definite strong recovery in Yahoo’s quarterly results next week, its search business–both in market share and revenue per search (RPS)–has, as one person close to the situation put it succintly, “fallen off the cliff.”

That’s due, in part, to getting the new system with Microsoft delivering better results, which is not happening yet (if ever!).

In this quarter, Microsoft has honored its contractual guarantees and will make up the difference–which will result in masking the magnitude of the RPS loss. It’s a worrisome trend to watch.

In the last quarterly call, Bartz had warned that MicroHoo had not grown yet into the beautiful swan expected in this ugly-searchling tale, noting that it might take until the second half of 2011 to see some prettier results.

Thus, Yahoo will turn Wall Street’s greedy eyes to display, an arena it dominates still, despite increasingly successful incursions from Google and Facebook.

A win here is key, of course, with investors hoping for a strong performance.

Yahoo’s stock certainly is not doing that, holding fast to its share price in between $16 and $17 for a while now. A year ago, the stock was above $18 a share.

As Citi Investment Research’s Mark Mahaney noted in an earnings preview today:

Valuation remains interesting, with a highly attractive Asian Internet investment portfolio. In terms of risks, we focus on: 1) Competition in the Display Ad segment from Google, Facebook, etc; 2) YHOO’s overall Internet Usage Share Loss–now less than 10% of U.S. ’Net usage minutes; 3) YHOO doesn’t have assets in place to take advantage of trends in Social, Mobile & Local Internet, and Video Advertising; & 4) We are challenged to identify a near-term positive catalyst.

“Challenged” translates to Mahaney saying politely that Yahoo has zip coming down the pike to change its situation.

That means Wall Street is not yet in the mood to give Yahoo shares a break. Here is one of BoomTown’s fave videos–the great Diana Ross, with the infectious song hit, “I’m Coming Out”–to get the right vibe going:

Yesterday, AOL’s Huffington Post Media Group got into hot water after the top editor at its Moviefone unit sent a memo to freelancers it was in the midst of firing, offering them an opportunity to “contribute as part of our non-paid blogger system.”

Today, that exec–Moviefone Editor-in-Chief Patricia Chui–was fired by the company, which is in the midst of drastically rejiggering its stable of writers.

Many of those were freelance bloggers under contract to AOL, who are now getting the boot in favor of reallocating staff back to largely paid journalists.

Thus came the controversial email from Chui, which read, in part:

“We will, indeed, be moving away from a freelancer model and toward one relying on full-time staffers. Sometime soon-–this week, I believe–-many of you will be receiving an email informing you that your services as a freelancer will no longer be required. You will be invited to contribute as part of our non-paid blogger system; and though I know that for many of you this will not be an option financially, I strongly encourage you to consider it if you/d like to keep writing for us, because we value all of your voices and input.”

Oh dear. Really, oh dear, especially since the Huffington Post has had its own share of controversies over not paying some bloggers (although it never quite ever offered up a doozie that this letter was).

Sources said Chui was terminated by John Montorio, the HuffPo Media Group’s culture, entertainment and lifestyle editor. Arianna Huffiington is head of all content at AOL, which recently paid $315 million to buy the Huffington Post.

Since she took over, Huffington has tried to stress a return to journalism over more algorithmic content creation. The unloading of its freelance writers was part of that effort.

Thus, Chui’s missteps did not help matters.

But it was not the first time recently that she had made an ill-advised editorial judgment.

Sources said the firing is also due to an incident several weeks ago, in which Chui appeared to defend a marketing employee who sent an email to TechCrunch writer Alexia Tsotsis, asking her to soften a review of “Source Code” due to studio relationship considerations.

AOL bought TechCrunch, a well-known tech news site, last fall. At the time, its CEO Tim Armstrong promised editorial independence and no meddling over advertising concerns.

Instead of taking this minion to task, on Moviefone’s own blog Chui said, in part:

“The reality of our situation is that, as a movies site, we work with movie studios every day, and it is in our best interests to stay on good terms with them. Staying on good terms with studios means that we will relay information if asked. It does not mean that we would ever force a writer or an editor to edit their work for the sake of a studio–or anyone else.”

Even with the last line, it is not exactly a profile in courage, because it was clear violation of the traditional separation of church and state in force at most media organizations.

Typically, editors are supposed to come down on any such communication. That has certainly been my experience in journalism over the years at the Washington Post and Dow Jones–including during its News Corp. ownership. In fact, I have often been shielded from such requests to pass such complaints onto me and only found out much later of advertiser discomfort about my reporting.

At the time, TechCrunch quite clearly called for Chui’s firing and that happened today.

Here is Chui’s full memo to freelancers, as well as the one about TechCrunch, neither of which were apparently cleared with higher-ups:

From: Chui, Patricia
Sent: Tuesday, April 05, 2011 11:26 AM
To: MoviefoneWriters
Subject: Moviefone/Cinematical–Status of Writers

Dear Moviefone/Cinematical Writers,

I know there’s been a lot of uncertainty regarding the future of freelancers and your status as a writer for the site. I personally apologize for the lack of communication, but I’ll tell you what I can.

We will, indeed, be moving away from a freelancer model and toward one relying on full-time staffers. Sometime soon–this week, I believe–many of you will be receiving an email informing you that your services as a freelancer will no longer be required. You will be invited to contribute as part of our non-paid blogger system; and though I know that for many of you this will not be an option financially, I strongly encourage you to consider it if you’d like to keep writing for us, because we value all of your voices and input.

Some of you have indicated interest in applying for full-time writer and editor positions, and the status of those positions are also part of discussions that are ongoing right now. I cannot at this point, however, tell you how many positions there are, or what the exact nature of those positions will be.

Despite the move toward a full-time staff vs. freelancer model, I’m told that there will be room for “exceptions”–for example, in the cases of writers who specialize in certain subjects. Again, what these exceptions are for Moviefone, and what the budget for them would be, is still being discussed.

As for Cinematical, the resignation of Erik Davis is certainly a loss. But I am continuing to have conversations with the editorial leadership here, and I am hopeful that we will still be able to maintain the Cinematical brand and voice going forward. Again, I will share with you any pertinent information as I have it.

In the meantime, those of you who already have assignments, please do continue to work on them unless you hear otherwise. If you’re uncertain of the status of your assignment, check with me. It may take me a while to get back to you, so please be patient–but I will respond.

I am sorry that I don’t have more specific details to give you, but I promise that I’ll keep you as well-informed as I possibly can. Don’t hesitate to reach out if you have questions or concerns.

Best,

patricia

By now you may have read the recent post in TechCrunch regarding that site’s SXSW coverage of the film “Source Code.” A representative from Moviefone, who set up the interview with Summit Entertainment, received some feedback from the studio and passed it along to TechCrunch (our sister site here at AOL). That email has now caused something of a Internet kerfuffle.

Here is the email–reprinted in the post–that was sent to the TechCrunch writer.

Hey Alexia,

Hope you’re having a good time at SxSW and that it’s not been too crazy busy for you!

First wanted to thank you for covering Source Code/attending the party, etc. But also wanted to raise a concern that Summit had about the piece that ran. They felt it was a little snarky and wondered if any of the snark can be toned down? I wasn’t able to view the video interviews but I think their issue is just with some of the text. Let me know if you’re able to take another look at it and make any edits. I know of course that TechCrunch has its own voice and editorial standards, so if you have good reasons not to change anything that’s fine, I just need to get back to Summit with some sort of information. Let me know.

Thanks!

TechCrunch’s issue with Moviefone is that by sending this email, we, in their words, “asked us to change our post. It’s not just sad, it’s wrong.”

I wanted to take this opportunity to clarify a few things.

1) The person who wrote that email was not acting in an editorial capacity. That person’s job is to act as an intermediary between the studios and editorial–not to dictate content, nor to weigh in on the content of Moviefone or any other AOL site. In fact, the presence of a person with that role is just one means we have of ensuring editorial integrity on Moviefone.

2) This is important: We never told TechCrunch to change the post in any way. A publicist at Summit reached out asking if we could convey the studio’s feedback to TechCrunch. We did so. If the editors had responded that they declined to edit the post–which, naturally, is entirely their call–we simply would have conveyed that information back to Summit.

The reality of our situation is that, as a movies site, we work with movie studios every day, and it is in our best interests to stay on good terms with them. Staying on good terms with studios means that we will relay information if asked. It does not mean that we would ever force a writer or an editor to edit their work for the sake of a studio–or anyone else.

We take editorial integrity seriously at Moviefone, and it’s painful to be depicted as a pawn of the studios when that is emphatically not the case. You may think it unseemly for a studio to request changes in an article; that’s certainly your right. But the accusation of pandering on our part or crossing an editorial line is, to my mind, completely unfair, and I would hope that a reasonable reader would be able to recognize the situation for what it is–overblown and unwarranted.

Patricia Chui
Editor-in-Chief, Moviefone

Recently, BoomTown reported that Flixster–the popular social movie site whose brands include the Rotten Tomatoes premium reviews site–was in early acquisition discussions with several suitors.

Now, said sources, Warner Bros. appears to be the frontrunner in various talks to buy the entertainment site, while Internet giant Yahoo has dropped out due to price concerns.

The reason for interest from the Time Warner-owned studio, said sources, is due to a spate of recent digital efforts, including its expansion of a movie rental experiment on Facebook.

As MediaMemo’s Peter Kafka wrote last night:

Facebook users watch “The Dark Knight” on the social network for $3. Now it has added five more movies, and is asking more money for three recent releases: It will cost you 40 Facebook Credits–the equivalent of $4–to rent “Inception,” “Life As We Know It” and “Yogi Bear” on the site. The first two “Harry Potter” movies, however, are at the original price.

Flixster has a strong presence on the Silicon Valley social networking giant, which could make it a good vehicle to attract people to the movie rental effort, as well as a popular mobile app.

Interestingly, Rotten Tomatoes was once owned outright by another traditional media giant: News Corp.

It is now only a minority shareholder, after trading Rotten Tomatoes for a 20 percent stake in the combined entity a little over a year ago.

News Corp., which owns 20th Century Fox Studios, is not bidding for Flixster, several sources said.

The price being discussed for the San Francisco-based start-up is between $60 million and $90 million.

Any acquisition negotiations could always fail, of course. In fact, Flixster held advanced discussions in late 2007 with IAC/InterActiveCorp.

Flixster trades all kinds of recommendations, ratings and news and even posts user-generated movie reviews on its Web site and via widgets on social networking sites, mostly on Facebook, and on mobile devices.

Co-founded in 2006 by CEO Joe Greenstein and CTO Saran Chari, Flixster has raised $7 million in venture funding from Lightspeed Venture Partners and Pinnacle Ventures, as well as garnering angel investments, such as from Silicon Valley entrepreneur and LinkedIn founder Reid Hoffman.

The combination with Rotten Tomatoes and its more robust Web presence made a lot of sense. It features mostly premium content, including professional reviews, trailer videos and news.

The site is famous for its clever fresh and rotten tomato rating system for movies.

I have not received a response from emails sent to Flixster and Warner Bros. requesting comment.

Flixster–the popular social movie site whose brands include the Rotten Tomatoes premium reviews site, as well as BuddyTV–is in early acquisition talks with several suitors, including Yahoo, said sources close to the situation.

The price being discussed for the San Francisco-based start-up is between $60 million and $90 million, said several sources, in talks that are “substantive.”

Nonetheless, any acquisition negotiations could always fail. In fact, Flixster held advanced discussions in late 2007 with IAC/InterActiveCorp.

Along with Yahoo, which is interested in bringing in a strong team to bolster the entertainment offerings of the Silicon Valley Internet portal, sources said several media giants are also eyeing Flixster in order to strengthen their ties to entertainment consumers. Likely candidates in this regard include Disney and Warner Bros.

Interestingly, one of Flixster’s big shareholders is News Corp., which traded its Rotten Tomatoes unit for a 20 percent stake in the combined entity a little over a year ago.

But its minority stake gives News Corp. little influence over Flixster’s fate, although its IGN gaming unit head Roy Bahat is on the Flixster board. News Corp.–which has been shedding Web properties, such as its current effort to sell MySpace–is not bidding for Flixster.

But the interest in the site by Yahoo and others is obvious.

Flixster has attracted a huge online audience, which trades all kinds of recommendations, ratings, news and even post user-generated movie reviews on the Web site and via widgets on social networking sites, mostly on Facebook. Its recent mobile app efforts have been successful.

Co-founded in 2006 by CEO Joe Greenstein and CTO Saran Chari, Flixster has raised $7 million in funding from Lightspeed Venture Partners and Pinnacle Ventures, as well as garnering angel investments, such as from Silicon Valley entrepreneur and LinkedIn founder Reid Hoffman.

The combination with Rotten Tomatoes and its more robust Web presence made a lot of sense. It features mostly premium content, including professional reviews, trailer videos and news.

The site is famous for its clever fresh and rotten tomato rating system for movies.

A Yahoo spokeswoman declined to comment and I have not received a response from emails sent to Greenstein.

Until he does, here’s my video interview with Greenstein, Chari and COO Steve Polsky, in which they talked about the deal to combine Flixster with Rotten Tomatoes:

]]> http://allthingsd.com/20110316/100-percent-fresh-exclusive-flixsterrotten-tomatoes-in-acquisition-talks-with-yahoo-and-others/feed/ 4 http://allthingsd.com/20110210/apple-app-happy-sonos-also-goes-android/ http://allthingsd.com/20110210/apple-app-happy-sonos-also-goes-android/#comments Thu, 10 Feb 2011 14:00:07 +0000 Kara Swisher http://kara.allthingsd.com/?p=40613

Sonos–the maker of innovative wireless music systems that has been boosted by its Apple iPhone and iPad Controller app–is set to roll out one for Google’s Android mobile operating system.

The Sonos Controller for Android will officially introduce the app at the Mobile World Congress in Barcelona next week, although the Santa Barbara, Calif., company is announcing it today.

“It’s a no-brainer,” said Sonos CEO John MacFarlane in an interview with BoomTown yesterday. “It basically doubles our market space.”

The free app allows you to control Sonos’s various players wirelessly with a smartphone or tablet.

The impact of the iPhone and the iPad on sales of its various devices has been clear enough, said MacFarlane, as registrations of the app have escalated.

“There is more usage of the smartphone, but tablets are clearly happening, said MacFarlane. “But I have the same view of both that these devices are the Holy Grail everyone has always wanted.”

The move to Android will take longer to beta test, he said, since its ecosystem has a plethora of unit types from a variety of handset makers.

The app will be out in March.

Here’s an image of the app on an Android phone and the official press release:

ROCK THE HOUSE: SONOS INTRODUCES SONOS CONTROLLER FOR ANDROID

Wireless Music System for Android Provides Unlimited Music, Incredible Control and Amazing Sound in Every Room

SANTA BARBARA, CA–February 10, 2011–Sonos, the leading developer of wireless multi-room music systems for the home, today introduced the Sonos Controller for Android, a free app that transforms most Android™ smartphones into a wireless music controller for the award-winning Sonos Multi-Room Music System. The Sonos Controller for Android, available in late March as a free download from Android Market™, will make its public debut next week at Mobile World Congress in Barcelona. To watch a video introduction of the Sonos Controller for Android, please visit www.sonos.com/android.

With the award-winning Sonos S5 in any room and an Android phone in hand, music lovers will enjoy an unmatched wireless music experience in the home. You’ll be able to access and play all the music on earth–from the Internet and your personal music library–throughout the home, wirelessly. Use the free Sonos Controller for Android app to control all your music and rooms, all from the palm of your hand. And, Sonos Controller for Android features Sonos’ latest innovation in the home music experience–music voice search–allowing users to find any artist, album or track by simply speaking into the phone.

“Sonos’ mission is to fill every home with music,” said John MacFarlane, CEO, Sonos, Inc. “We are thrilled to bring the joy of music to the homes of Android fans worldwide.”

To get started enjoying music in any or every room of the home, all you need is a Sonos ZonePlayer and a Sonos Controller such as the free Sonos Controller for Android. The most popular Sonos ZonePlayer is the Sonos S5, an all-in-one wireless music system you can plug in anywhere. Now you can play any track you like, anytime you like, in any room you like. Wirelessly play the same song in every room of the house–perfectly synchronized. Or, mix it up and play different songs in different rooms.

When it comes to controlling Sonos, you simply reach into your pocket for your Android smartphone. With Sonos Controller for Android, you can search for songs and stations by typing or speaking, choose the music and control the volume in as many rooms as you like. And because your Android phone is controlling the music, and not the source of it, when a text comes in or you need to make a phone call, the music doesn’t stop.

Sonos connects directly to the Internet so you can access a world of music without ever turning on your computer. Search and play more than 100,000 Internet radio stations, shows and podcasts–from around the world. Play songs, playlists and radio from the most popular music services like Deezer, iheartradio, Last.fm, Napster, Pandora, Rdio, Rhapsody, SiriusXM Internet Radio, Spotify, Wolfgang’s Vault, and more. And of course, Sonos can play your entire digital music library (such as iTunes) stored on a computer or Network Attached storage drive.

The Sonos Controller for Android is designed to work on any Android smartphone running Android 2.1 or later with a screen size of HVGA 320 x 480, WVGA 480 x 800 or WVGA 480 x 854. Sonos Controller for Android joins the family of Sonos Controllers which includes free apps for iPhone and iPad, a dedicated touchscreen controller, the Sonos Controller 200, and free software for your Mac or PC, included with every ZonePlayer. All controllers work together seamlessly.

Sonos will be demonstrating the Sonos Controller for Android at the Mobile World Congress in Barcelona, Spain February 13-17, 2011. For a demonstration in person, you’ll find Sonos at the following locations:
• Android: Hall 8; Booth 8C25
• Motorola: Hall 8, Booth 8A28
• Sonos: Hall 7; Suite 7HS11

For more information about Sonos or to locate an authorized Sonos dealer in your area, please visit www.sonos.com or call 877.80.SONOS.

]]> http://allthingsd.com/20110210/apple-app-happy-sonos-also-goes-android/feed/ 0 http://allthingsd.com/20110126/facebook-brings-back-part-of-beacon-and-no-one-blinks/ http://allthingsd.com/20110126/facebook-brings-back-part-of-beacon-and-no-one-blinks/#comments Wed, 26 Jan 2011 12:30:51 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=28585 In 2007, Facebook unveiled a plan to let brands turn Facebook users’ online activities into ads. Cue uproar, and an eventual apology from Mark Zuckerberg.

Yesterday Facebook unveiled a plan to let brands turn Facebook users’ online activities into ads. If anyone is complaining, it’s news to me.

Easy enough to see why: There are some very big differences between Facebook’s ill-fated Beacon and Sponsored Stories, the site’s new ad unit.

For starters, Facebook unveiled yesterday’s news in the trade press, not in a high-profile, Apple-aping event. More important is that while the new ads can tell your friends what you’re doing outside of Facebook, they’re mainly focused, for now, on what you do on the site.

Most important: The ads are replicas of the updates your friends are already seeing in their Facebook newsfeeds. So while Starbucks doesn’t pay a cent when this shows up on on the center of your friends’ pages:

It can now pay up and place this on the right side of your pals’ pages, too.

Users can’t opt out of the ads, which seems like a red flag given Facebook’s history. But if a brand wants to shell out money to tell your friends something you’ve already told your friends, who cares? No one, apparently.

Still, recall what Zuckerberg was saying less than four years ago, when he was going to “build a new kind of ad system” based on “social actions” and “information that is shared between friends.” At the time, that sounded wildly ambitious, and maybe a bit creepy.

And look what Sponsored Stories does now. Marketers can purchase ads that tell your Facebook friends when you’ve “liked” something of theirs. Or posted on one of their Facebook pages. Or checked-in to one of their outposts or played with one of their apps.

And they can do it when you’re not on Facebook, too, via “likes” you make on sites that have tied up with the social network.

This is what Zuckerberg was talking about in 2007, right? He just needed time to get there. So did his users.

Remember that when Facebook rolled out Beacon, the site was a big deal, but not the biggest: A mere 50 million users, not 600 million. Many of those people were still trying to get a handle on how the site worked, and what they ought to do with it.

And recall that the newsfeed itself–more or less the core of today’s service–was still a relatively new idea too, introduced just a year earlier. (Another controversy, and another Zuckerberg apology.)

Now, I think, just about everyone who uses Facebook knows, more or less, what they’ve signed on for: A place that wants you to share as much of yourself, with as many people, as you can.

Letting advertisers help you share that much more? No big deal. This is isn’t 2007, you know.

]]> http://allthingsd.com/20110126/facebook-brings-back-part-of-beacon-and-no-one-blinks/feed/ 11 http://allthingsd.com/20110125/facebook-testing-social-commerce-feature-buy-with-friends/ http://allthingsd.com/20110125/facebook-testing-social-commerce-feature-buy-with-friends/#comments Tue, 25 Jan 2011 22:35:56 +0000 Liz Gannes http://networkeffect.allthingsd.com/?p=2761 Facebook is testing a new feature called Buy With Friends to give users social incentives to increase their purchases of virtual goods from games on its platform, said Deb Liu, Facebook commerce product marketing manager, at the Inside Social Apps conference in San Francisco today.

The program will encourage users to purchase virtual goods that their friends have already bought.

Speaking to an audience of application developers who are concerned about Facebook’s move to require developers to use its Facebook Credits virtual currency system, Liu mentioned Buy With Friends as an example of a program Facebook is providing that will help developers make more money.

Liu said Buy With Friends gives developers tools to help users share their in-game purchases. In testing so far, she said “more than 50 percent of users elected to share a purchase.” As an example, after a friend has made and shared a purchase, a player might see a message that says, “Your friend has unlocked this deal for you–get 40 percent off this special monster food,” Liu said.

I’ve argued in the past that much of what we call “social commerce” isn’t very social yet, but this seems like an example of a product that actually deserves that label.

Facebook is also offering incentives, including promotion and premium ad targeting, to developers who use Facebook Credits as their in-game currency.

Facebook Credits are used by some 150 developers, but many of them elect to also use their own branded currency so as not to be locked into the Facebook system. This introduces a silly amount of complexity, with users often having to convert their real-world money into Facebook Credits into in-game currency, all at different exchange rates.

Liu also said that Facebook is testing a feature that improves users’ ability to purchase additional credits without leaving the game environment.

Please see the disclosure about Facebook in my ethics statement.

]]> http://allthingsd.com/20110125/facebook-testing-social-commerce-feature-buy-with-friends/feed/ 0 http://allthingsd.com/20110124/a-first-guess-at-twitter-ad-results-how-does-150-million-sound-for-2011/ http://allthingsd.com/20110124/a-first-guess-at-twitter-ad-results-how-does-150-million-sound-for-2011/#comments Mon, 24 Jan 2011 12:20:06 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=28498 Twitter’s ad business is still in the just-getting-started phase, but eMarketer thinks that will still be a nine-figure business: It predicts Adam Bain and crew will sell $150 million worth of promoted tweets, promoted trends, etc., this year. Next year, spurred in part by a Google/Facebook-like self-serve ad system: $250 million. “But the company must show it can live up to its hype.” Noted!

]]> http://allthingsd.com/20110124/a-first-guess-at-twitter-ad-results-how-does-150-million-sound-for-2011/feed/ 2 http://allthingsd.com/20101224/skype-is-working-no-explanation-yet-for-what-happened/ http://allthingsd.com/20101224/skype-is-working-no-explanation-yet-for-what-happened/#comments Fri, 24 Dec 2010 17:22:30 +0000 Arik Hesseldahl http://newenterprise.allthingsd.com/?p=1071 After two days of struggling with an embarrassing pre-holiday system failure, Skype appears to be running again today. CEO Tony Bates appeared in a video message overnight announcing that customers would be compensated for the loss of service. Free and pay-as-you-go customers will get credit for a free 30-minute SkypeOut call to any landline phone in the world. Paid subscribers will get credit for a week’s worth of service.

Offline instant messages and group video chat services remain offline, he said.

Bates said Skype now knows what caused the crash, but he didn’t disclose it. He ruled out the possibility of some kind of malicious attack, and said it’s conducting a detailed postmortem.

This would probably be the worst time for Skype to experience a high-profile outage. Though the Skype service is working today, lots of people who might have used it to call family members heading into Christmas may have made alternate plans.

However, the failure, whatever its cause, is also a reminder that Skype isn’t always in charge of its own ability to stay online. In 2007 an otherwise routine Windows security update issued by Microsoft forced an abnormally high number of PCs running Skype around the world to restart at roughly the same time. A software flaw prevented the Skype peer-to-peer network from compensating properly and the service crashed for two days.

This incident will also hurt its reputation with two key constituencies: Prospective business customers and potential investors. Business customers will rethink plans to deploy Skype. And potential investors will question whether this company has its act together, hurting the potential benefit from its forthcoming IPO.

To its credit, Skype did manage to restore service much faster than it did in 2007, as SkypeJournal notes here.

System failure is one of the risks that Skype admits to in its S-1 filing with the U.S. Securities and Exchange Commission. Of the 2007 failure, Skype says in its filing:

“We experienced significant adverse publicity and lost net revenues as a result of this outage, and any similar outage in the future would likely harm our business. As we increasingly introduce products particularly targeted at business customers, any system failures could have a significant impact on our ability to attract or maintain our relationships with business customers.”

Bates’s video message to customers is below.

]]> http://allthingsd.com/20101224/skype-is-working-no-explanation-yet-for-what-happened/feed/ 1 http://allthingsd.com/20101202/if-when-goopon-closes-remember-her-name-googles-commerce-chief-stephanie-tilenius/ http://allthingsd.com/20101202/if-when-goopon-closes-remember-her-name-googles-commerce-chief-stephanie-tilenius/#comments Thu, 02 Dec 2010 12:45:13 +0000 Kara Swisher http://kara.allthingsd.com/?p=37960

As the possible acquisition of Groupon by Google chugs along–sources tell me bankers are starting to swan around annoyingly, which could be a sign of fruition, but we shall see–BoomTown realized that I have been remiss in mentioning one likely key person in the deal strategy.

And, I am only guessing, that would be the Silicon Valley search giant’s relatively new head of commerce, Stephanie Tilenius (pictured above).

That’s because the unassuming former longtime eBay exec–you won’t see her all over the scene swanning, for sure–is one of the few at the company sharp enough to have seen Groupon’s copious local retail data from its social buying business as a strong fit into Google.

I met Tilenius a dog’s age ago when she co-founded PlanetRx.com, a very early online drugstore in Web 1.0.

In her long tenure at eBay, she ran eBay North America, global product management for eBay Marketplaces, merchant services at its PayPal unit, eBay Motors and eBay Asia Pacific and Latin America.

After she left eBay in late 2009, Tilenius came to Google early this year, in the newly created position of VP of commerce. In that job, she has purview over Google Checkout, payment system and e-commerce.

And, while Google’s former search experience and now new local head Marissa Mayer is often mentioned as benefiting from this Goopon deal, it seems to me that it is Tilenius who will be charged with taking Google in this pricey and risky new direction.

Please see this disclosure related to me and Google.

]]> http://allthingsd.com/20101202/if-when-goopon-closes-remember-her-name-googles-commerce-chief-stephanie-tilenius/feed/ 5 http://allthingsd.com/20101102/sonos-marches-its-wireless-music-system-into-china/ http://allthingsd.com/20101102/sonos-marches-its-wireless-music-system-into-china/#comments Tue, 02 Nov 2010 13:00:09 +0000 Kara Swisher http://kara.allthingsd.com/?p=36597

Sonos, maker of the well-known wireless multi-room music system for the home, announced at a press conference in Beijing, China, today that it will soon be selling its products in the important Asian market.

The move by the Santa Barbara, Calif., consumer electronics company is a big expansion, putting its players in the hands of a growing base of more affluent Chinese customers by later this month.

“The consumer market is really developing and the Chinese customer wants the best products for music delivery,” said Sonos CEO John MacFarlane in an interview with BoomTown earlier this week. “We have had a fair amount of growth outside the U.S. and we expect it to only continue.”

MacFarlane said all Sonos products, which make a lot of use of Apple’s iPhone and iPad devices as controllers, will be localized in China.

The company said Sonos China will be headquartered in the southern China city of Shenzhen. The new managing director of the Chinese division will be Yaling Zhang, who previously served as managing director of Archos China.

Here’s the official press release from Sonos:

SONOS BRINGS WIRELESS MULTI-ROOM MUSIC TO CHINA

Sonos Controller for iPad and Entire Sonos Product Lineup Localized in Chinese
Sonos China Opens Shenzhen Office and Names Yaling Zhang Managing Director
Sonos China Launches www.sonos-china.com

BEIJING and SANTA BARBARA, California–November 2, 2010–Sonos, the leading developer of wireless multi-room music systems for the home, today announced that the award-winning Sonos Multi-Room Music System will be available in China beginning later this month. The Sonos system will be available for purchase in China at select audio video retailers.

At a press conference today in Beijing, Sonos founder and CEO John MacFarlane introduced the Sonos product family and the upcoming localized Sonos Controller for iPad. MacFarlane announced that Sonos China will be headquartered in the southern China city of Shenzhen, and will be the company’s second office in Asia.

MacFarlane also introduced the new Managing Director of Sonos China, Yaling Zhang. Zhang, who previously served as Managing Director of Archos China, is a consumer electronics veteran who has successfully introduced new brands and new ways of experiencing entertainment to the Chinese consumer.

“More than half of Sonos’ business is conducted outside of the United States,” said John MacFarlane, founder and CEO, Sonos, Inc. “As we enter the world’s largest music market, we have a tremendous opportunity to introduce the Sonos music experience to even more music loving consumers.”

MacFarlane continued “We’re committed to doing business in China the right way, with localized products, a local office, local leadership and a local Website. We’ve found that leader in Yaling Zhang who has both the background and experience in introducing new consumer electronics brands to the Chinese market.”

For more information about Sonos please visit www.sonos.com. To learn more about Sonos China and the Sonos Multi-Room Music System in China, please visit www.sonos-china.com.

And, apropos of nothing, here is an interesting video by Sonos of its also recent Apple iAd deployment:

]]> http://allthingsd.com/20101102/sonos-marches-its-wireless-music-system-into-china/feed/ 0 http://allthingsd.com/20101018/mark-cuban-invests-in-device-tracking-firm/ http://allthingsd.com/20101018/mark-cuban-invests-in-device-tracking-firm/#comments Mon, 18 Oct 2010 16:02:56 +0000 Julia Angwin http://voices.allthingsd.com/?p=31195 Billionaire investor Mark Cuban is among investors who have poured $5 million into startup BlueCava, which aims to develop unique IDs for computers, mobile phones and other devices.

BlueCava hopes that its device identification system may eventually replace online tracking tools such as cookies. Instead, BlueCava hopes companies will track users based on their device IDs. Consumers will be able to visit BlueCava to see how they are being tracked and to choose not to be tracked.

“We represent a brand new way to disclose to consumers how they can receive targeted advertising,” said BlueCava Chief Executive David Norris. “Some people view us as the next generation of technology that will extend beyond what cookies can do.”

Read the rest of this post on the original site

]]> http://allthingsd.com/20101018/mark-cuban-invests-in-device-tracking-firm/feed/ 0 http://allthingsd.com/20100923/a-hollywood-ending-the-timing-of-zuckerbergs-100-million-donation-to-newark-schools-debated-at-facebook/ http://allthingsd.com/20100923/a-hollywood-ending-the-timing-of-zuckerbergs-100-million-donation-to-newark-schools-debated-at-facebook/#comments Thu, 23 Sep 2010 09:55:12 +0000 Kara Swisher http://kara.allthingsd.com/?p=34091

The question is: Which movie was Facebook CEO Mark Zuckerberg thinking about when he decided recently to fork over $100 million to public schools in Newark, New Jersey?

Was it a bid to spiff up his image–with a splashy announcement on Oprah Winfrey’s popular television talk show tomorrow?

That would be the very same day of the New York premiere of “The Social Network,” a movie that rakes the now-26-year-old Silicon Valley wunderkind over some very hot coals in the sordid tale of how he founded the powerful social networking site while at Harvard University.

Or was it actually the impact of another film, “Waiting for Superman,” a just-released gripping documentary about the crisis in public education?

It’s become a topic that has apparently become of great interest to Zuckerberg, as he has been considering his approach to big-time philanthropy in anticipation of huge wealth after Facebook eventually has its long-anticipated IPO.

In fact, said sources, the timing of the donation was hotly debated within the company, with worries that it would look like Zuckerberg was trying to counter the flood of negative press from “The Social Network.”

And for good reason.

After seeing a screening of the movie recently, MediaMemo’s Peter Kafka noted that “the film portrays him as an insecure jerk who screws over people and becomes a much-richer insecure jerk…He’s the bad guy in his own creation myth.”

In fact, said sources, Zuckerberg actually has been cooking up the deal since he and high-profile Newark Mayor Cory Booker started kibitzing over the idea while both attended the Allen & Co. conference in July.

From there, Zuckerberg decided it was best to flood the zone–in this case, the deeply troubled Newark school system, which had previously been taken over by the state.

Now, it will instead get a big dose of friending–um, funding–from a foundation that Zuckerberg is funding with $100 million worth of Facebook stock, which will be sold off in secondary markets as needed.

Sources said his interest in the area was apparently sparked by watching the up-and-down experience of his longtime girlfriend, Priscilla Chan, whose first job out of college was as a teacher. She is now a medical student.

It’s all an unusual bipartisan effort, with Zuckerberg working with the Democratic Booker and also New Jersey’s new Republican Governor Chris Christie.

The pair of politicians, who will formulate a plan, pushed for the announcement this particular week on “The Oprah Winfrey Show,” in order to give the topic national attention.

Winfrey has been focusing on education reform this week on her show, and the Obama administration is reportedly going to do the same in the weeks ahead.

Thus, Zuckerberg himself decided to move forward now, sources said, apparently concluding that even if a prominent movie was portraying him as the villain, he did not have to act like one in real life.

]]> http://allthingsd.com/20100923/a-hollywood-ending-the-timing-of-zuckerbergs-100-million-donation-to-newark-schools-debated-at-facebook/feed/ 2 http://allthingsd.com/20100908/will-hp-now-stand-for-hanky-panicky-or-should-it-settle-with-hurd-over-oracle-and-make-it-all-go-away/ http://allthingsd.com/20100908/will-hp-now-stand-for-hanky-panicky-or-should-it-settle-with-hurd-over-oracle-and-make-it-all-go-away/#comments Wed, 08 Sep 2010 19:00:21 +0000 Kara Swisher http://kara.allthingsd.com/?p=32571

Doubtlessly, in some business tome to come, it will all be depicted in glorious detail.

And here are three real-life scenes where BoomTown would desperately have loved to be a fly on the wall:

First: The boardroom perusal of the contents of the eight-page letter from former Hewlett-Packard (HPQ) outside contractor Jodie Fisher, sent to former CEO Mark Hurd, which set in motion the circumstances of his ouster–including the odd investigation into that personal relationship that only managed to turn up dicey expense reports.

Second: The welcome-to-the company-and-screw-HP pep talk that Oracle (ORCL) CEO Larry Ellison delivered to Hurd in appointing him co-president and also a director of the database giant.

And third: The furious HP board racing to the door to file a lawsuit against Hurd for the move.

What happens next should be interesting, especially since the idea of settlement has never been one of the tools in Ellison’s wheelhouse, who is doubtlessly egging Hurd on here.

And, after yet another curveball thrown up by Hurd, it is probably not what HP’s board is angling for either.

But perhaps–after all this mishegas–it is precisely what the tech giant should do, focusing instead on finding a new leader to compete with challenges from companies, such as, well…Oracle.

As it was obligated to do, the lawsuit that HP has filed runs through all the typical charges in cases such as this–almost all of which center on the use of confidential information and how Hurd was paid off not to do exactly what he has done.

It certainly is a lot of money–estimated to be about $35 million, depending on HP’s stock price–and hinges on a two-year confidentiality agreement Hurd agreed to.

HP is correctly avoiding any noncompete language, since California–the state where both Oracle and HP are based–shoots holes in those kinds of defenses.

Instead, as it noted in its lawsuit, HP alleges that Hurd “cannot perform his job at Oracle without disclosing or utilizing HP’s trade secrets and confidential information.”

Of course he cannot, but this should not keep HP’s board from settling, as much as it will pain it to do.

Such a move could not have been helped by Ellison’s typically outrageous remarks about how HP treated Hurd, calling the break between them “the worst personnel decision since the idiots on the Apple board fired Steve Jobs many years ago.”

And then yesterday’s statement by Ellison: “By filing this vindictive lawsuit against Oracle and Mark Hurd, the HP board is acting with utter disregard for that partnership, our joint customers, and their own shareholders and employees. The HP Board is making it virtually impossible for Oracle and HP to continue to cooperate and work together in the IT marketplace.”

Of course, that’s just the kind of let’s-go-to-the-mattresses noise that HP needs to ignore, now that the longtime partners are clear rivals after Oracle’s $7.4 billion acquisition of computer maker Sun Microsystems.

This purchase put Oracle directly into the server and data-storage-systems business for the first time.

That’s the real reality for HP–and not the delicious “Real Housewives of Silicon Valley” reality show this has turned into.

And–as much as I would like to see Ellison upending a table onto HP board member Marc Andreessen–no amount of legal and public wrangling with Hurd is going to change that.

If it could not work with him any longer–a corporate psychodrama about which there is still much unsaid–HP needs to move on.

Of course, Hurd should not get off for manipulating the bad situation so deftly either, and perhaps should offer to return some, if not all, of the severance paid for his silence.

Or, it could all just come out in open court and give the world a glimpse into all the twisty machinations that got us here.

Which, as you might imagine, is just fine by me–although not so much for the shareholders of HP.

]]> http://allthingsd.com/20100908/will-hp-now-stand-for-hanky-panicky-or-should-it-settle-with-hurd-over-oracle-and-make-it-all-go-away/feed/ 0 http://allthingsd.com/20100611/full-d8-tech-demo-video-microsofts-project-natal/ http://allthingsd.com/20100611/full-d8-tech-demo-video-microsofts-project-natal/#comments Fri, 11 Jun 2010 17:15:16 +0000 Kara Swisher http://kara.allthingsd.com/?p=29396

Since Microsoft will be officially unveiling its Project Natal at the Electronic Entertainment Expo gaming show next week in Los Angeles, take a preview gander of it in action at the eighth D: All Things Digital conference recently.

At E3, the software giant will give the innovative gesture-based controller for the Xbox a spanking new name and will likely announce other related features.

We already showed off Natal at D8 last week, saying “the experience is somewhere between the Nintendo Wii and Tom Cruise’s computer in ‘Minority Report,’ with hands, arms, legs and even heads interacting with the game.”

As we also noted, the system works using cameras and microphones, along with some fancy programming, to remove the controller pad from play. With Natal, Microsoft (MSFT) aims to include groups outside of the typical young male demographic in gaming.

Here’s the video of the full session of the demo, which includes the game-playing stylings of my No. 1 son, Louie. And, yes, me too–as you will see, I stink at online games.

Enjoy:

]]> http://allthingsd.com/20100611/full-d8-tech-demo-video-microsofts-project-natal/feed/ 3 http://allthingsd.com/20100420/well-at-least-google-didn%e2%80%99t-ahem-lose-it-in-a-redwood-city-bar/ http://allthingsd.com/20100420/well-at-least-google-didn%e2%80%99t-ahem-lose-it-in-a-redwood-city-bar/#comments Tue, 20 Apr 2010 14:15:29 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=38708 So that “intellectual property” that was stolen in the “highly sophisticated and targeted attack” against Google late last year? Turns out it was some pretty serious stuff–the source code to Single Sign-On, the password system that controls access to most of Google’s services.

Obviously, a significant and worrisome theft. Single Sign-On, or Gaia as it’s known internally, is used to authenticate users of Gmail and a number of other Google online applications, including some designed for business.

Little wonder then that Google (GOOG) responded with such outrage to the attack. While the company was quick to add further layers of security and encryption to Single Sign-On once it discovered it had been compromised, the possibility that the source code to one of the most widely used online password systems in the world is in the hands of someone with malicious intent is troubling.

As the New York Times, which broke the story, notes, access to the system’s source code could reveal some exploitable security vulnerabilities that may have eluded Google’s engineers. And that would be bad news indeed.

]]> http://allthingsd.com/20100420/well-at-least-google-didn%e2%80%99t-ahem-lose-it-in-a-redwood-city-bar/feed/ 0 http://allthingsd.com/20100420/ford-launches-voice-control-of-apps-in-car-no-more-phone-fiddling-while-driving/ http://allthingsd.com/20100420/ford-launches-voice-control-of-apps-in-car-no-more-phone-fiddling-while-driving/#comments Tue, 20 Apr 2010 11:15:45 +0000 Kara Swisher http://kara.allthingsd.com/?p=27191

Ford, which has been trying to fast-forward its automobiles in the digital space, announced today that its 2011 Fiesta model will be the first vehicle in which smartphone apps can be voice-controlled via its in-car synching software.

One issue: Initially, Ford’s SYNC AppLink, downloadable as an upgrade, will work only with Google (GOOG) Android and Research in Motion (RIMM) BlackBerry devices.

As to the more popular iPhone from Apple (AAPL)?

“Ford will introduce AppLink on all SYNC-equipped vehicles next year, as well as provide interoperability with iPhone and other smartphones,” the auto company said in a statement.

Still, anything that stops dodos from fiddling with a smartphone while driving can’t be bad.

Ford (F) has been trying mightily to differentiate itself by digitizing its cars.

In December, Ford said it would make the next generation of its SYNC-enabled vehicles into Wi-Fi hotspots, allowing drivers and passengers to connect to the Internet everywhere much more seamlessly in a moving car.

Pandora Internet radio, online talk radio aggregator Stitcher and mobile Twitter client OpenBeak are the first SYNC-enabled mobile applications.

Ford also said it is launching a developers’ network to boost the number of apps that can be used in SYNC-enabled cars.

Here are some videos showing the system in use:

Pandora

Sticher

OpenBeak

And here’s the full press release from Ford:

SYNC APPLINK TO LAUNCH ON 2011 FIESTA, MAKING FORD FIRST TO DELIVER VOICE CONTROL OF SMARTPHONE APPS

• Ford will first offer SYNC® AppLink, a downloadable software program, on the 2011 Fiesta, allowing owners to access and control AndroidTM and BlackBerry® smartphone apps with voice commands and vehicle controls

• Pandora internet radio, Stitcher “smart radio” and Orangatame’s OpenBeak are the first SYNC-enabled mobile applications

• Ford to create SYNC developer community with launch of new “Mobile Application Developer Network” (www.syncmyride.com/developer), giving developers a pathway to partner with Ford on SYNC-enabled applications

• Ford’s platform approach with SYNC is poised to harness smartphone app development and mobile web access; apps expected to be a $4 billion industry by 2012; analysts predict the mobile device to become the No. 1 source for Internet access by 2015

SAN FRANCISCO, April 20, 2010–Customers have spoken–asking for safe, convenient access to their smartphone apps while in the vehicle–and Ford is responding by announcing the new SYNC AppLink software that will allow hands-free voice control of popular smartphone apps.

SYNC AppLink, a downloadable software upgrade, will be released for 2011 Ford Fiesta owners with the award-winning SYNC communications and infotainment system later this year, allowing drivers hands-free control of apps on their Android or BlackBerry smartphones via voice commands and vehicle controls. Ford will introduce AppLink on all SYNC-equipped vehicles next year, as well as provide interoperability with iPhone and other smartphones.

“The growth in smartphone mobile apps has been explosive, and Ford has worked hard to respond at the speed of the consumer electronics market,” said Doug VanDagens, director of Ford’s Connected Services Organization. “SYNC is the only connectivity system available that can extend that functionality into the car. AppLink will allow drivers to control some of the most popular apps through SYNC’s voice commands and steering wheel buttons, helping drivers keep their hands on the wheel and eyes on the road.”

The Android MarketTM and BlackBerry App World™ are among the leading growth markets for mobile apps. The new SYNC AppLink will seamlessly integrate apps using the vehicle’s voice and user interface controls, including buttons on the steering wheel, increasing eyes-on-the-road and hands-on-the-wheel time.

The first SYNC-enabled apps available later this year include Pandora internet radio, Stitcher “smart radio” and Orangatame’s OpenBeak app for Twitter, with additional apps on the way. Updated versions of each app, incorporating the SYNC application programming interface (API), will be available through Android Market and BlackBerry App World for customers to download.

Built-in, Beamed-in and Brought-in: The SYNC App Ecosystem

From its introduction, Ford has been building an ecosystem of available SYNC apps, continuously improving the consumer experience.

• Built-in apps, including Vehicle Health Report and 911 Assist™, are downloaded and installed directly on the in-car SYNC operating system

• SYNC apps like Traffic, Directions & Information rely on beamed-in, or “cloud-based,” information. Drivers access the Ford Service Delivery Network, a network of data centers providing turn-by-turn directions, business searches, and on-demand news, sports and weather information, through a simple voice-connection using their cell phone.

• SYNC AppLink represents the third category of the ecosystem, brought-in apps, leveraging apps installed on a user’s smartphone, such as Pandora, Stitcher and OpenBeak

Studies show mobile app development–a niche market just three years ago–is expected to blossom into a $4 billion industry by 2012. Sites serving specific mobile operating systems, such as Android and BlackBerry OS, have experienced massive growth, with analysts predicting the mobile device will become the No. 1 source for Internet access by 2015, surpassing the home computer.

Ford and SYNC will answer the consumer demand by offering the only platform available for drivers to safely control their mobile devices and applications in the car. Leveraging SYNC’s safer voice commands and steering wheel controls, drivers are able to keep their hands on the wheel and eyes on the road. “Brought-in” apps residing on a consumer’s smartphone also eliminate the need for yet another piece of hardware to be installed in the car which only serves to add cost and complexity.

Customers will be able to download SYNC-enabled mobile apps through the same app store interfaces currently used. As SYNC-enabled versions of existing apps are released into the app stores, users will be prompted to download the latest version upon connection. Also, as developers grasp the notion that the vehicle interior has opened to them, a new dimension of apps designed from the outset to maximize the unique in-car environment will follow.

Opening the door to developers

To facilitate future SYNC-enabled app development, Ford has also activated a new developer network on its SYNCmyride Web site (www.syncmyride.com/developer). Interested developers can find a link to submit innovative ideas, and sign up for the latest information and news about the SYNC application programming interface (API) and software development kit (SDK). The package will allow developers to modify existing applications and create all-new apps that can successfully interface with SYNC.

Working with trusted partners, Ford is completing beta-testing on the SDK. Once beta-testing is complete, a broader release of the development tools is planned for later this year. Initial reports have been positive, with one of Ford’s development partners creating a SYNC-enabled version of its app just three days after receiving the development tools.

“We’re very pleased by the rapid development time and positive feedback we’ve seen from our first partners,” said VanDagens. “We want to encourage all developers to visit our site and submit ideas, helping us tap into the global pool of innovation and creativity.”

]]> http://allthingsd.com/20100420/ford-launches-voice-control-of-apps-in-car-no-more-phone-fiddling-while-driving/feed/ 2 http://allthingsd.com/20100312/index-invests-25-million-in-sonos-plus-a-video-interview-with-vc-mike-volpi/ http://allthingsd.com/20100312/index-invests-25-million-in-sonos-plus-a-video-interview-with-vc-mike-volpi/#comments Fri, 12 Mar 2010 17:00:57 +0000 Kara Swisher http://kara.allthingsd.com/?p=25424 Earlier this week, BoomTown had lunch with Michelangelo “Mike” Volpi, the high-profile tech exec who turned into a venture capitalist recently at Index Ventures.

We also did a video interview (see below) about his new life as an investor, based in London, although Volpi managed to leave out the big news.

That would be a just-inked $25 million investment by Index from its growth equity arm in wireless home music system maker Sonos, as well as a new board seat there for Volpi. (Sonos’s hot new S5 unit is pictured here.)

In an interview this morning, Sonos CEO John MacFarlane said the money would be used for expansion at Sonos, which is just about to introduce its products to China and Japan.

“This investment is going to help us grow,” said MacFarlane. “We have wind at our back and this will help us a lot in keeping up that momentum.”

MacFarlane said the focus for Sonos, which has garnered $65 million–from BV Capital and mostly angel investors–with the Index investment included, is growth. He declined to give Sonos’s valuation in the new round.

The private company has been profitable, MacFarlane said, but its goal is to break even as it takes advantage of interest in its devices globally. Only about 35 percent of its business is now in the United States.

While running a small independent consumer electronics company is a dicey proposition, MacFarlane said Sonos is not interested in selling, as Pure Digital–maker of the Flip digital camera–did to Cisco (CSCO) a year ago for $590 million in stock.

In fact, Santa Barbara, Calif.-based Sonos, which is well known for its innovative top-line (and high-priced) music players, recently moved its business more mainstream with the introduction of the S5 unit in November.

The S5 allows control of the system via an Apple (AAPL) iPhone and only costs $399. (Here is a review of it by The Mossberg Solution’s Katie Boehret.)

The basic idea? A smart speaker paired with a smartphone.

The S5 has been a big seller and has increased product registration–when the software is activated by a user–by five times previous numbers so far, according to the company.

That could get a further boost with the April launch of the iPad, which seems perfect for controller software apps.

“The popularity of the iPhone is great for us,” said MacFarlane. “And we’ll do something great with the iPad.”

It will be nice to have a big score for Volpi, the former Cisco wunderkind. In fact, he invested in one of MacFarlane’s previous start-ups, Software.com, in 1995 when he was in charge of a variety of businesses there.

But the affable Volpi hit a bad patch recently while CEO of a much hyped but ultimately failed video service called Joost. It was that job that landed him in even hotter water.

In the wake of the decline of Joost, which he left to join Index, he was personally sued, along with Index, by its litigious co-founders over Index’s planned investment in Skype, the online telephony service they also co-founded.

Confused? Well, it was confusing.

And not the best start in the investment business for Volpi, after Index pulled out of the high-profile deal in a settlement of the lawsuits.

But, that’s “ancient history,” as Volpi said in the video interview below, which focuses on what’s next.

(News of the Index involvement in Sonos was first reported by TechCrunch earlier this week, though it did not have any details on the amount of funding.)

Although he did not mention the $25 million Sonos funding specifically in the video, Volpi does discuss his bullishness for consumer electronics.

Volpi presumably hopes others share his enthusiasm.

Here’s the video of my interview with him:

]]> http://allthingsd.com/20100312/index-invests-25-million-in-sonos-plus-a-video-interview-with-vc-mike-volpi/feed/ 1 http://allthingsd.com/20100302/apple-vs-google-game-on/ http://allthingsd.com/20100302/apple-vs-google-game-on/#comments Tue, 02 Mar 2010 21:18:04 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=35947 Is Apple’s lawsuit against HTC a proxy through which to strike at Google and its increasingly popular Android OS? It certainly looks that way.

While not directly named in the lawsuit, Google (GOOG) figures prominently in it simply because of the sheer number of times “Android products” are called out in the complaint. According to Apple (AAPL), “Accused HTC Android Products” infringe no fewer than nine of its patents–some dating from back to the company’s NeXT days. They are:

• Patent #5481721: Method for providing automatic and dynamic translation of object oriented programming language-based message passing into operation system message passing using proxy objects
• Patent #5519867: Object Oriented Multitasking System
• Patent #6275983: Object-Oriented Operating System
• Patent #5566337: Method and apparatus for distributing events in an operating system
• Patent #5929852: Encapsulated network entity reference of a network component system
• Patent #5946647: System and method for performing an action on a structure in computer-generated data
• Patent #5969705: Message protocol for controlling a user interface from an inactive application program
• Patent #5915131: Method and apparatus for handling I/O requests utilizing separate programming interfaces to access separate I/O service
• Patent #RE39486: Extensible, replaceable network component system

These patents all cover operating system-level behavior. Could these behaviors be specific to the version of Android running on HTC’s devices? I suppose that’s possible. But it seems unlikely. As Engadget’s Nilay Patel writes in an excellent breakdown of the patents at issue, “Some of these patents are from 15 years ago and cover OS-level behavior–it’s hard to see how they can relate only to HTC’s implementation of Android and not Google’s OS as a whole.”

In other words, this may be an early salvo in Apple vs. Google. If that’s the case, why was it made against HTC? As I noted in an earlier post, as a contract manufacturer, HTC is an easier target.

And, of course, Google isn’t building the allegedly infringing devices. But more important, Apple and Google still work closely together on two apps that are core to the iPhone and soon, the iPad as well: Search and maps. Going after Google outright might put those projects at risk at a time (pre-iPad launch) when they need to be preserved. And Apple can always add the company to the suit at a later date.

Safer then for Apple to spank a company like HTC to make its point–unless, of course, Google feels compelled to come to HTC’s defense.

Reached for comment, Google had only this to say: “We are not a party to this lawsuit. However, we stand behind our Android operating system and the partners who have helped us to develop it.”

Further Reading:

• Apple Sues Nexus One Maker HTC Over iPhone Patents
• Apple Sues HTC [Complete Court Filings]
• Why HTC, Apple? And Why Now?

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