Wittlebee, a monthly kids’ clothing club that was incubated at Los Angeles area “technology studio” Science, has gotten $2.5 million in funding.

Much like another Science start-up, Dollar Shave Club, Wittlebee ships a custom box of high-quality kids’ clothes to members.

The seed round of funding was led by Rincon, with participation from SoftTech, Google Ventures, Matt Coffin, Crosslink, and Morado.

Wittlebee’s CEO and founder Sean Percival said the money would be used to create a private-label clothing line.

Wittlebee uses stay-at-home parents, who have used the site, as customer service reps. The start-up sends a new order of children’s apparel each month, including onesies, t-shirts, leggings, socks and pants, upping the sizes as the kid grows.

In other words, kind of like a never-ending online Gap.

Here’s the official press release on Wittlebee’s funding:

Wittlebee Raises $2.5 Million Seed Funding Lead By Rincon

Children’s clothing membership service to begin manufacturing private label designs to keep up with growing customer demand

Los Angeles, CA. April 4, 2012 — Wittlebee (www.Wittlebee.com), the affordable children’s clothing monthly membership service backed by technology studio Science Inc., today announces the company raised $2.5 million in seed funding leady by Rincon, with participation from SoftTech, Google Ventures, Matt Coffin, CrossLink, and Morado. Jim Andelman, co-founder and General Partner at Rincon, joins Wittlebee’s board alongside Michael Jones, founder and CEO of Science, and Sean Percival, Wittlebee’s founder and CEO.

Since launching less than two months ago, Wittlebee has experienced accelerated growth, in part because of Science’s track record of quickly scaling ecommerce businesses. The company will use the new investment to build out its executive team and user acquisitions.

Upon joining Wittlebee, customers are connected to a team of mom stylists who work with families to compose boxes of high-quality children’s clothing to meet individual children’s needs. Active kids in warm climates like Miami may receive appropriate t-shirts, shorts and socks whereas infants in Albany receive long-sleeve onesies and cozy pajamas.

“Wittlebee’s recent growth has been tremendous,” said Percival. “Our customer feedback is overwhelmingly positive; we are speaking to an audience of 20,000 highly engaged moms across social media who tell us they’re delighted we’re saving them time and money for all their children’s clothing needs. We plan to use Rincon’s investment to create Wittlebee’s private label clothing line that will truly showcase our commitment to high-quality practical children’s apparel.”

In the coming months, customers will receive a selection of parents’ favorite well-known brands in addition to Wittlebee’s private label. Manufactured both locally in Los Angeles and abroad, the new line represents customers’ wish-list of kids’ must-haves, from high-quality soft fabrics, to a wide color palate, to unique graphic designs. After months of research and testing apparel options through Wittlebee’s social networks, the resulting Wittlebee bespoke label will be a timeless array of apparel basics to carry kids through seasons, activities and all their lifestyle needs.

“For every investment decision we make, we care most about customer value proposition, team, and business model,” said Jim Andelman, Managing Partner at Rincon. “We’ve been tremendously impressed by parents’ positive response to Wittlebee’s offering: they love the selections, they save money and you can’t beat the convenience of clothes showing up right to your door. The e-commerce space is exploding in LA, and we’re very excited to be at the forefront with Wittlebee.”

For more on Wittlebee, please visit www.Wittlebee.com.

Look, it might just be an Internet meme, but it’s a good one, turning a bad situation into something else.

I am not sure what that is exactly, but above you can see the Thanksgiving version of one of the many takes on Tumblr placing the pepper-spraying cop in different and unlikely scenes.

And below it is a new T-shirt that mashes up the pepper-spray meme with the much-beloved Honey Badger one.

AOL and TechCrunch founder and editor Michael Arrington have officially parted ways, almost exactly one year from the New York Internet portal’s acquisition of the popular tech news site.

He was replaced by longtime TechCrunch editor Erick Schonfeld.

The company’s statement said that the high-profile blogger had “decided” to move on, which was a decided understatement, given that the negotiations between the pair sometimes approximated a cage match.

The noisy media fight centered on a new $20 million venture fund that Arrington is now running, called CrunchFund, and his editorial status at TechCrunch with the new role.

Many, including myself, had raised questions about the conflicts of interest inherent in the situation, if Arrington had remained influential at TechCrunch. Arrington had argued that transparency took care of that.

The name of the fund, which is close to the name of TechCrunch, will remain, said Arrington onstage this morning at the TechCrunch Disrupt conference in San Francisco.

“This is my baby and I built this,” he said, in an understated appearance. “So, it’s a sad day.”

Before beginning an opening interview with well-known Silicon Valley investor and venture capitalist Reid Hoffman at the conference, Arrington got off a good joke — one of many to come, apparently (uh-oh!) — by wearing a t-shirt with the label: Unpaid Blogger.

It was a humorous poke at AOL content czar and former Arrington boss, Arianna Huffington, who had called him that in one of the many rounds of fighting of late.

It was all in good fun, finally, after not so much fun.

Along with a media firestorm, the fracas included Arrington posting an angry blog on TechCrunch itself demanding that AOL give him editorial independence or sell him back TechCrunch.

AOL CEO Tim Armstrong and Huffington were inclined to do neither and, thus, Arrington had to go.

Here’s a statement that was just put out by AOL:

“The TechCrunch acquisition has been a success for AOL and for our shareholders, and we are very excited about its future. Michael Arrington, the founder of TechCrunch has decided to move on from TechCrunch and AOL to his newly formed venture fund. Michael is a world-class entrepreneur and we look forward to supporting his new endeavor through our investment in his venture fund. Erick Schonfeld has been named the editor of TechCrunch. TechCrunch will be expanding its editorial leadership in the coming months.”

Oddly, Armstrong put the news of the change at the end of his weekly internal memo to staff, in which he noted that the company would continue as an investor in Arrington’s CrunchFund — a $10 million investment — which had started this whole controversy.

Tim, in old-timey journalism that’s called burying the lede, but here it is:

AOLers –

We’re right in the middle of the most important season of our year and we have some critical work to get done. I wanted to share the highlights of what we are expecting to have happen in the next 12 weeks. As I mentioned last week, we have prioritized our focus areas in a concise document.

The main items are below and there will be a steady set of reviews against these and related items at the weekly product reviews and monthly business reviews:

1. Traffic Growth: Full execution of the Bridge and Tunnel Project

2. Display Ads Growth: Premium formats and video growth/improvement in the quote to collect process for customers and sales

3. Video Platform: Launch of new video platform

4. Patch Monetization: Sales allocations/partnerships

5. Expansion of Content Verticals/Platform: Genre verticals in HuffPost/video expansion

6. Mobile: Content & ads priority match/move mobile engineering up the brand food chain

7. Expansion of Devil Network: Increase partners and scale production

8. Paid Services: Increase commerce partnerships

As we have discussed, the fall of ’11 will be about driving organic product improvement and reducing our focus to the high leverage opportunities. Every new opportunity at the company will be compared to our succinct plan. If we are going to add a new idea, an existing idea needs to be removed. There is room for execution and for improvement — everything else needs to be put on the back burner.

Finally, I’d like to announce that Michael Arrington, the founder of TechCrunch, has decided to move on from TechCrunch and AOL to his newly formed venture fund. TechCrunch continues to be a part of the AOL Huffington Post Media Group. AOL will maintain its initial investment in Michael Arrington’s fund and AOL Ventures will oversee our investment in the fund.

Have a great week everyone — stay focused and keep up the strong momentum –TA

Indeed, now that the disruption is over, it is long past time to focus on the entrepreneurs and start-ups that TechCrunch is built on. Here is the link to watch the live stream of TechCrunch Disrupt.

UPDATE: It’s not over until it is over, apparently. In a blog post of her own, Huffington took aim at The Wall Street Journal over its coverage of the internal battle at AOL.

Calling out a Journal story from over this past weekend as “shoddy,” she took issue with its characterization of AOL as having a “culture of clashing fiefs and personalities,” with a focus on fighting between her and Arrington.

The issue at hand wasn’t about personalities. It was about principle; a very simple fundamental principle about conflicts of interest that every journalistic enterprise adheres to — including the Wall Street Journal, as its former publisher L. Gordon Crovitz points out today. But you wouldn’t know that from the breathless opening grafs of the exceptionally misinformed, substance-lite, and anonymous-quote-riddled piece.

Indeed, it takes a full eight paragraphs before the Journal’s reporters Jessica Vascellaro and Emily Steel move away from their gossip girl caricature “clash of personalities” narrative and get to — or at least near — the heart of the matter: Can someone running a venture fund edit a site covering the tech startup scene? This has nothing to do with personalities, either Mike Arrington’s or mine.

If only we could only find a way to also include the doofus-is-not-disparaging fired Yahoo CEO, Carol Bartz, this giant rumble would certainly be complete.

SECOND UPDATE: But, wait, what tweet through yonder smartphone breaks?

It is the Arrington, now seemingly taking a shot at Huffington about their clash of personalities.

Wrote Arrington on Twitter just now: “ok @ariannahuff. Let’s go ahead and talk about how this really played out.”

Oh, let’s — although part of me (and I know this might seem ironic) wants to make it stop.

The New Yorker finally came out with its profile of Facebook CEO Mark Zuckerberg today, titled “The Face of Facebook.”

And while the magazine piece by Jose Antonio Vargas reads well, there is not much new in it for those who have followed the career of the innovative young wunderkind of social networking.

Exeter computer prodigy, Harvard computer prodigy, Silicon Valley computer prodigy. Throw in the Winklevii’s ceaseless quest to say they could have been somebody (they couldn’t have been), mix in Sean Parker and set to bake to billions.

Vargas did score a few interviews with Zuckerberg, including a visit to his current home and a short glimpse of him interacting with his longtime girlfriend Priscilla Chan.

But, like Zuckerberg himself, it’s kind of all gray T-shirt and hoodie and working at Facebook.

The best part is Hollywood writer Aaron Sorkin, who penned the upcoming Zuckerberg-slasher, “The Social Network,” finding out his subject loves his television classic “The West Wing.”

“I wish you hadn’t told me that,” he responded to Vargas.

Oh, suck it up, Aaron, as Mark surely will have to when the movie comes out October 1.

Until then and as usual: Gray T-shirt, hood and, of course, Facebook.

Last week, BoomTown was in Washington, D.C., my old stomping grounds for 15 years, from attending Georgetown University as an undergraduate to covering the beginnings of the Internet at the Washington Post.

I miss a lot of things about living there, but most definitely not the poisonous political partisanship that you get sucked into from the minute you arrive.

Most recently, for example, it was ugly battles over financial reform, some tough remarks by President Barack Obama toward the GOP and–I swear–the “controversy” over some airbrushing of House Majority Leader Nancy Pelosi on a magazine cover.

In other words, it does not take much for the denizens there to descend into the mud-slinging swamp the city was built on.

But it’s almost a relief to be in D.C. rather than in California, given how increasingly hostile the atmosphere is getting as a range of companies wrestle over a range of issues both key and trivial.

The hostilities especially center on the three main powers of Silicon Valley today: Google (GOOG), Apple (AAPL) and Facebook.

And, specifically, the conflicts include Apple versus Google and Adobe (ADBE) and HTC and the First Amendment; Google versus Apple and Facebook and Microsoft (MSFT) and the Federal Trade Commission and–oh, yes–China; and Facebook versus Google and Twitter and anyone who gets in the way of its Manifest Destiny of Like-buttoning the Web.

Even Yahoo (YHOO) is entering the fray, with CEO Carol Bartz taking please-don’t-forget-us shots at Google and Facebook recently.

The Apple shooting match with Adobe over its Flash video technology is perhaps the most riveting, especially because it is the computer giant’s CEO, Steve Jobs, personally and relentlessly conducting the assault.

Jobs called Adobe technology shoddy, Adobe execs called Jobs controlling, the blogosphere erupted.

While issues around the use of Flash are a lot more complex, of course, they illustrate just how much the digital sector is at a critical inflection point.

That’s especially true as the game moves from the laptop/desktop, Web-centric world to one more social, mobile and focused on innovative new devices, such as smartphones and tablets.

This means the potential for a shift in power, obviously–which, in turn, means more wrangling among and between the digital powers-that-be.

It’s the top of mind as the next D: All Things Digital conference approaches in less than a month. In our eighth foray out, there have never been more overt power struggles among the various players who will be onstage.

Last year, in our opening essay for D7, titled “Welcome to Web 3.0,” we made a prediction.

“So what’s the seminal development that’s ushering in the era of Web 3.0? It’s the real arrival, after years of false predictions, of the thin client, running clean, simple software, against cloud-based data and services,” we wrote, specifically referencing the growing popularity of Apple’s iPod and iPhone as the harbingers of this important trend.

We continued: “But this is not just about one company, one platform or even one form factor. No, this new phenomenon is about handheld computers from many companies, with software platforms and distribution mechanisms tightly tied to cloud-based services, whether they are multi-player games, e-commerce offerings or corporate databases.”

Looking back over the last year, we think we got it pretty right, as companies of all kinds and in all arenas raced to be part of the social, mobile, cloud-centered action.

This fusion and, really, collision of key trends will be at the heart of what we’ll be focusing on at D8 as the major companies in tech and media try to figure out how consumers want to conduct their digital lives going forward and with what devices.

And inevitably, that has begun to cause some major rifts among and between the powers that be throughout tech and media. It’s clear to us that a major realignment of consumer expectations and desires is taking place, along with a fundamental shift in how we all relate to computing.

Still, with all the changes, it’s important to keep a respectful tone, which seems to have gotten a bit lost of late, especially now when every tiny shift and disagreement enters the digital echo chamber and quickly moves from loud to strident.

Such noise inevitably makes the whole competitive necessity of Silicon Valley–which is one of its greatest assets, of course–seem tinny and small, much like what you hear out of Washington all the time.

One of the reasons I moved out West was that it always seemed that–whatever the rivalry or wrangling–Silicon Valley was much better than that.

So even though healthy and robust competition is what makes it all work in tech, as Sergeant Esterhaus of “Hill Street Blues” used to say in the trademark phrase, which you can see in this video, “Let’s be careful out there”:

[T-shirt photo courtesy of Zazzle]

Last week, BoomTown was in Washington, D.C., my old stomping grounds for 15 years, from attending Georgetown University as an undergraduate to covering the beginnings of the Internet at the Washington Post.

I miss a lot of things about living there, but most definitely not the poisonous political partisanship that you get sucked into from the minute you arrive.

Most recently, for example, it was ugly battles over financial reform, some tough remarks by President Barack Obama toward the GOP and–I swear–the “controversy” over some airbrushing of House Majority Leader Nancy Pelosi on a magazine cover.

In other words, it does not take much for the denizens there to descend into the mud-slinging swamp the city was built on.

But it’s almost a relief to be in D.C. rather than in California, given how increasingly hostile the atmosphere is getting as a range of companies wrestle over a range of issues both key and trivial.

The hostilities especially center on the three main powers of Silicon Valley today: Google (GOOG), Apple (AAPL) and Facebook.

And, specifically, the conflicts include Apple versus Google and Adobe (ADBE) and HTC and the First Amendment; Google versus Apple and Facebook and Microsoft (MSFT) and the Federal Trade Commission and–oh, yes–China; and Facebook versus Google and Twitter and anyone who gets in the way of its Manifest Destiny of Like-buttoning the Web.

Even Yahoo (YHOO) is entering the fray, with CEO Carol Bartz taking please-don’t-forget-us shots at Google and Facebook recently.

The Apple shooting match with Adobe over its Flash video technology is perhaps the most riveting, especially because it is the computer giant’s CEO, Steve Jobs, personally and relentlessly conducting the assault.

Jobs called Adobe technology shoddy, Adobe execs called Jobs controlling, the blogosphere erupted.

While issues around the use of Flash are a lot more complex, of course, they illustrate just how much the digital sector is at a critical inflection point.

That’s especially true as the game moves from the laptop/desktop, Web-centric world to one more social, mobile and focused on innovative new devices, such as smartphones and tablets.

This means the potential for a shift in power, obviously–which, in turn, means more wrangling among and between the digital powers-that-be.

It’s the top of mind as the next D: All Things Digital conference approaches in less than a month. In our eighth foray out, there have never been more overt power struggles among the various players who will be onstage.

Last year, in our opening essay for D7, titled “Welcome to Web 3.0,” we made a prediction.

“So what’s the seminal development that’s ushering in the era of Web 3.0? It’s the real arrival, after years of false predictions, of the thin client, running clean, simple software, against cloud-based data and services,” we wrote, specifically referencing the growing popularity of Apple’s iPod and iPhone as the harbingers of this important trend.

We continued: “But this is not just about one company, one platform or even one form factor. No, this new phenomenon is about handheld computers from many companies, with software platforms and distribution mechanisms tightly tied to cloud-based services, whether they are multi-player games, e-commerce offerings or corporate databases.”

Looking back over the last year, we think we got it pretty right, as companies of all kinds and in all arenas raced to be part of the social, mobile, cloud-centered action.

This fusion and, really, collision of key trends will be at the heart of what we’ll be focusing on at D8 as the major companies in tech and media try to figure out how consumers want to conduct their digital lives going forward and with what devices.

And inevitably, that has begun to cause some major rifts among and between the powers that be throughout tech and media. It’s clear to us that a major realignment of consumer expectations and desires is taking place, along with a fundamental shift in how we all relate to computing.

Still, with all the changes, it’s important to keep a respectful tone, which seems to have gotten a bit lost of late, especially now when every tiny shift and disagreement enters the digital echo chamber and quickly moves from loud to strident.

Such noise inevitably makes the whole competitive necessity of Silicon Valley–which is one of its greatest assets, of course–seem tinny and small, much like what you hear out of Washington all the time.

One of the reasons I moved out West was that it always seemed that–whatever the rivalry or wrangling–Silicon Valley was much better than that.

So even though healthy and robust competition is what makes it all work in tech, as Sergeant Esterhaus of “Hill Street Blues” used to say in the trademark phrase, which you can see in this video, “Let’s be careful out there”:

[T-shirt photo courtesy of Zazzle]

This week: We took a coffee break (and made an interview and video) with Mehdi Maghsoodnia, CEO of BookRenter, a company that claims to be “numero uno” in online textbook rentals, a bone of contention between it and larger competitor Chegg.

Who: Mehdi Maghsoodnia

What: Chief Executive Officer

Why: BookRenter is in a battle with competitor Chegg. Mehdi freely admits that Chegg holds more market share, but says his model has the staying power to outlast it. Presumably, Chegg begs to differ.

Where: bookrenter.com (Web site); @bookrenter (Twitter); Campbell, Calif. (analog place)

Who else: BookRenter is in a battle for the hearts and minds of college students everywhere. On one side, it competes with college bookstores, Amazon (AMZN), and a trial-rental program from Barnes & Noble (BKS). Once a customer goes the way of rental rather than purchase, BookRenter has to fight with Chegg, the textbook service now led by longtime Silicon Valley exec Dan Rosensweig and whose eggshell has been stuffed with $144 million in venture funding.

Five Stats You Won’t Find in His Facebook Profile

Worst Job Ever: I used to sweep the grounds for a hotel in San Francisco, called Roberts at the Beach Motel (it’s still there). It was right next to the zoo, and the wind would blow all the dust, sand and junk into the hotel, and my job was just to sweep the floor. That was not at all fun.

Geek Crush: I’m a fanatic in terms of business models, and I track the careers of people I admire. I keep track of Maynard Webb, who used to be the COO at eBay (EBAY). I track people with clever minds and clever ideas.

Gadget of the Moment: I love my Apple (AAPL) iPhone–for the first time recently I traveled without my laptop. It was great. The app environment is fascinating. If you look on my phone, the apps are in two distinct sections. One is all the games that keep my kids busy, and the second category is functional things for me. News feeders, banking…and I watch all kinds of videos on the TED app when I’m traveling.

International Businessman of Mystery: I was born in Iran. Then, we moved to London. I traveled a lot and lived all over. I realized early on that a consequence of that is I’m culturally very unmarketable. It’s pretty impossible to market to me. Which, by definition, means I’m not the greatest marketer, because I don’t know what makes people want to buy things.

It’s All in the Family: I sit on the board of Nature Air, an airline in Costa Rica. It’s the first regional green airline, and it’s the family business.

Bio in 140 Characters

Mehdi grew up global, but landed in Silicon Valley. He spent time as a VC then moved to head CafePress. Now he’s CEO at BookRenter.

The Five Questions

Let’s get right into this. How are you guys different from Chegg?

When I was at CafePress, we were the biggest online t-shirt retailer in the world. We spent a lot of time getting shirts in from China, organizing them, putting them in bins, tracking them, printing them and so on. I observed how much of our management bandwidth and resources went into back-end fulfillment as a retailer. I came out of CafePress and was sitting on the venture side when I saw Chegg and BookRenter. I said, “These are two teams satisfying specific demands out there, but with totally different business models.”

Chegg was trying to do everything–taking on warehousing, buying the books, etc. There were many companies doing that, by the way. Amazon among them. The BookRenter team was clever, and they said, “Let’s flip this on its head.” Investing in a book as stock is a losing venture, because your individual investment on the book loses value over time. You also lose money on leasing the warehouse, forklifts, all of it.

At BookRenter, we have all kinds of partnerships that handle those logistics, including recent partnerships with school bookstores themselves. We are in a cyclical business, where maybe four months out of the year we are handling books, and, in the other eight, the books are in the students’ hands. Our costs adjust within those cycles as quickly as changes happen.

How do you track and price all the books when you don’t own them?

So, most of the business is done today on an inventory capitalization model. That is to say, you have a position on what books you have. Everyone buys books and then has to find a match for that book in a rental relationship.

BookRenter takes a very different approach. Our software system creates rental relationships in real time, which means it figures out prices and availability for every new rental. If you come to us and say you want to rent a biology book, the system turns around and queries our suppliers and decides who will be able to get us that book at the lowest overall cost. Our cost algorithm is complex and takes into account things like the reliability of the provider for meeting its commitment on that book.

Once the determination has been made, only then do we take a position on that book and add it to inventory. I can offer as many books as [Chegg] or anyone else, because I’m offering that book virtually. I only pay when I have a paying customer.

You’ve got a lot to say about how you are going to gain on Chegg. Is this really a market that is worth the fight?

Oh yes, the market is growing very fast. We saw 300 percent growth year over year in January. The textbook business is a $9-billion-a-year industry. Someday we hope that a third of that is rentals. The value proposition is there. Renting is cheaper than buying. It’s even cheaper than buying used. Eighteen months from now, we are still going to be a smaller player, but we have the longevity.

Do you do this for the competition, or is it something else that drives you?

I’ll be honest. The best possible outcome for us is that Chegg stays prosperous. Both of us are fighting the same battle in terms of converting some of the buying market to a renting market. So, we are all in the same market development boat. But what I really like about this is the process. I see our business as a 0.9 version, so there are so many things we can still work on.

Organizationally and market-wise, it’s a very exciting thing to design a system for. You have to balance the needs of all kinds of partners. It’s like playing multidimensional chess with very good players. It’s just fun. Also, the growth factor is great. If I had to solve these problems in a business that wasn’t growing, that’s not a lot of fun.

I’ve been there man, that’s deadly. You put a lot of intellectual work into it and you can’t get anyone to care.

As a current student, I’ve got to ask: How have you dealt with undoubtedly the biggest customer problem–highlighting?

[Laughs] You know, that was a real issue early on. Our early policy was no highlighting at all, of any kind. It turned out that students didn’t seem to mind [the highlighting], and in fact many liked it. It was like someone had already done the work of showing them the important parts of the book. Today, we will only charge for damage if there’s been a real issue, like, someone spilled water all over the book and really ruined it.

The In Living Color Interview

]]> http://allthingsd.com/20100305/almost-famous-mehdi-maghsoodnia-of-bookrenter/feed/ 0 http://allthingsd.com/20100125/ticketmaster-live-nation-merger-gets-conditional-thumbs-up-from-doj-plus-d7-video-with-ceo-azoff/ http://allthingsd.com/20100125/ticketmaster-live-nation-merger-gets-conditional-thumbs-up-from-doj-plus-d7-video-with-ceo-azoff/#comments Tue, 26 Jan 2010 00:46:31 +0000 Kara Swisher http://kara.allthingsd.com/?p=23474

While many thought it would not sail through regulatory scrutiny easily, and it has taken a year, the merger of two entertainment industry giants–Ticketmaster and Live Nation–can go forward as long as a certain set of conditions is met, the Department of Justice said.

And while DOJ’s antitrust head, Christine Varney, told reporters today that she warned the two companies that the federal government was prepared to litigate if necessary, it–well–did not.

“We concluded the transaction as originally proposed was anti-competitive,” said Varney, a statement that was pretty much negated by her decision not to block the merger, given that the conditions she set were not a stretch for the parties to meet.

Still, Varney noted: “The proposed settlement allows for strong competitors to Ticketmaster, allowing concert venues to have more and better choices for their ticketing needs, and provides for anti-retaliation provisions, which will keep the merged company in check.”

We shall see about that–many are expecting even higher ticket prices and “fees.”

The companies also reached an agreement with 17 State Attorneys General as part of the U.S. consent decree, as well as with the Canadian Commissioner of Competition.

Not surprisingly, shares of both West Hollywood-based Ticketmaster (TKTM) and Live Nation (LYV) of Beverly Hills, Calif., were up about 15 percent today, even though the deal still has to undergo public comment and be approved by a judge.

But after today, Ticketmaster investors will get Live Nation stock, valued at $15.49, and with its ticker retired, Ticketmaster shares will no longer trade.

Now the combined company will be able to do everything from selling tickets to booking artists to selling their T-shirts and more.

And all Live Nation and Ticketmaster have to do to operate like this is sell off a college sports ticketing unit to Comcast (CMCSA) and license ticketing software to Live Nation’s nearest competitor, the Anschutz Entertainment Group.

Also, for a decade, the merged company cannot play dirty, blackballing those who decide they don’t want to use its services.

With 75 big venues across the U.S. under the purview of Live Nation, that’s a lot of places the world’s largest concert promoter could apply pressure.

And because Ticketmaster is the dominant player in ticketing for sports and entertainment events, as well as the manager of a spate of major acts that play at those Live Nation venues, it’s clear you have a very powerful entity.

It will all be led, in part, by Ticketmaster CEO Irving Azoff, who can be seen below in an interview with BoomTown at the seventh D: All Things Digital conference last May.

One of the most influential behind-the-scenes movers and shakers in the music industry for a long time now, Azoff talked about with me about the merger and digital forces buffeting the entertainment business.

Azoff will be the executive chairman of the merged company, which will be called Live Nation Entertainment, as well as CEO of Front Line artist management. Longtime Hollywood and Internet mogul Barry Diller is set to be chairman, and Michael Rapino will be CEO and president.

Here’s the video of the D7 interview, including the very funny intro that music legend Joe Walsh of the Eagles did for Azoff (and below it, a video of a terrific version of “Life’s Been Good,” sung by Walsh, which it certainly is today for Ticketmaster-Live Nation):

And here’s the press release from Live Nation and Ticketmaster:

LOS ANGELES and WEST HOLLYWOOD, Calif., Jan 25, 2010–Live Nation, Inc. and Ticketmaster Entertainment, Inc. today announced that they have reached agreements with the U.S. Department of Justice (DOJ) and with the Canadian Commissioner of Competition, clearing the way for the merger of the companies. Upon closing, the company will be renamed Live Nation Entertainment, Inc. to reflect the combination of Live Nation’s concert promotions expertise with Ticketmaster’s world-class ticketing solutions and artist relationships.

Under the terms of the proposed final judgment filed today in U.S. District Court for the District of Columbia, the companies have agreed to divest Ticketmaster’s self-ticketing subsidiary, Paciolan, to Comcast-Spectacor and to license the Ticketmaster Host technology to Anschutz Entertainment Group, Inc., as well as to other terms that protect competitive conditions in ticketing and promotions. Seventeen State Attorneys General also participated in the matter and have joined in the U.S. consent decree. The parties’ consent agreement with the Canadian Commissioner of Competition is on substantially equivalent terms.

As previously announced, in connection with the merger, each issued and outstanding share of Ticketmaster common stock will be cancelled and converted into the right to receive a number of shares of Live Nation common stock such that Ticketmaster stockholders will receive approximately 50.01% of the voting power of the combined company. Subject to final confirmation, the companies expect each share of Ticketmaster common stock to be cancelled and converted into the right to receive 1.474 shares of Live Nation common stock in connection with the merger and for Live Nation to issue approximately 84,613,661 shares of Live Nation common stock to Ticketmaster stockholders in the aggregate.

The combined company will be led by Michael Rapino as CEO and President of Live Nation Entertainment and Irving Azoff as Executive Chairman of Live Nation Entertainment and CEO of Front Line. Barry Diller will serve as Chairman of the Board of Live Nation Entertainment. The Board will consist of 14 directors, seven from each company.

]]> http://allthingsd.com/20100125/ticketmaster-live-nation-merger-gets-conditional-thumbs-up-from-doj-plus-d7-video-with-ceo-azoff/feed/ 1 http://allthingsd.com/20090728/a-preview-of-time-warner-earnings-bummer-at-aol-bummer-at-magazines-just-a-bummer/ http://allthingsd.com/20090728/a-preview-of-time-warner-earnings-bummer-at-aol-bummer-at-magazines-just-a-bummer/#comments Tue, 28 Jul 2009 16:00:43 +0000 Kara Swisher http://kara.allthingsd.com/?p=16525

When Time Warner reports its second-quarter earnings tomorrow morning, before the markets open, most Wall Street analysts are not expecting much from the media giant, as it continues to slog toward a rejiggering of itself.

Time Warner (TWX)–which owns assets like the Warner Bros. movie studio, the AOL online unit, the HBO and Turner cable television networks and Time Inc. magazines–is expected to earn 37 cents per share, compared to 72 cents a year ago, according to a poll of analysts from Thomson Reuters (TRIN).

Revenue is expected to be $6.97 billion, down from $11.56 billion in the same quarter last year. This drop is mostly due to the March spinoff of its cable unit, Time Warner Cable.

With movies like “The Hangover” and the sixth in the series, “Harry Potter and the Half-Blood Prince,” doing well, there is some strength at Time Warner.

But the advertising market has been weak all over, which hits the company hard.

That’s why both AOL and the magazines are expected to keep up their drag on Time Warner’s financial prospects–at least until the November spinoff of the online unit.

Until then, most expect another miserable quarter from AOL advertising revenue. Sources noted that any turnaround won’t show till end of year at the earliest, due to the weak economy and a retooling of the company and its sales force.

That restructuring is not over, most agree, with expectations of more layoffs of some of its 7,000 employees coming. With the 100-day overview by new CEO Tim Armstrong now over, sources said, the staff size is likely to be adjusted accordingly.

Most also expect to see continued weakness at the long-suffering Time Inc. magazine division.

People outside the company think that Time Warner CEO Jeff Bewkes will want to sell or spin off Time Inc. once AOL is done.

And people inside the company talk about the fact that Time has some 125 titles, although most of the revenue and profit only come from a few titles, such as People, Sports Illustrated and Time.

According to sources at the magazine division, talk of a new round of layoffs has also been also circulating there of late.

[The t-shirt image courtesy of Zazzle.]

]]> http://allthingsd.com/20090728/a-preview-of-time-warner-earnings-bummer-at-aol-bummer-at-magazines-just-a-bummer/feed/ 0 http://allthingsd.com/20090603/the-curse-heard-round-the-globe-well-actually-just-the-web-but-its-a-start-for-yahoo/ http://allthingsd.com/20090603/the-curse-heard-round-the-globe-well-actually-just-the-web-but-its-a-start-for-yahoo/#comments Wed, 03 Jun 2009 14:00:29 +0000 Kara Swisher http://kara.allthingsd.com/?p=14158

San Jose Mercury News columnist Chris O’Brien made a lot of humorous hay at the expense of Yahoo CEO Carol Bartz yesterday, in a joke piece called: “Bartz Unveils New &*%! Strategy for Yahoo.”

O’Brien cleverly created a fictional transcript of a Yahoo (YHOO) staff meeting where Bartz–by now, well-known for her salty language–lets loose in an address about just how sick she was of competitors getting all the good press:

“We’re not going to take this (expletive) any more.

Starting today, we fight back. We’re going to announce a major new marketing campaign that won’t let anyone ignore Yahoo any more.
For those of you who don’t have your heads up your (expletive), you may have noticed that I’ve personally been beta testing this thing. First with those analysts, and then with that (expletive) Wall Street Journal reporter Kara Swisher–I dropped the f-bomb.

The results were clear. Those (expletives) in the press won’t write about all the great (expletives) we’re doing at Yahoo, but one foul-mouthed remark from me, and we’re back in the headlines.

So we’re re-branding the company around excessive use of profanity. Our new marketing slogan will be, ‘Yahoo, (expletive) yeah!’”

Well, why not?

During her interview with BoomTown at the seventh D: All Things Digital conference last week (pictured here, giving me a finger-to-eye-pointing lesson, which you can click on to make larger), Bartz did, in fact, curse at me, although she did not toss that off when talking about what was needed for Yahoo to regain momentum.

As she noted after a question I asked about Yahoo’s bruised image:

“The best way to change the perception is to do a good job and then talk about it. For instance, I know everybody out there says Yahoo has lost the youth; only old people use Yahoo. Do you know in the 18 to 24 demographic we have 76 percent reach? Everybody doesn’t just go to Facebook. We just have to get our story out there; we have to continue to appeal to the people that come to us, and frankly, at some point people get sick of having us as the underdog and say, Thank God, Yahoo’s back. And we are back. We’re going to go step by step.

It was a good answer and certainly a lot more forceful defense of the company than former Yahoo CEO Jerry Yang had made the year before at D6–which was essentially Job No. 1 for Bartz to correct at the recent D7 event.

Except that a lot of folks last week–both inside and outside Yahoo and also in the media–later took Bartz to task to me privately and also publicly for just being a big talker.

“If you compare what she said and what Jerry said word for word, it was the same thing,” said one person to me, in what was a common refrain. “It’s just that Carol said it with more oomph.”

Well, yes. Exactly. Which is why I am not sure there’s anything wrong with that.

Of course, it is entirely true that Bartz has a only a limited time to roll out the confident patter and colorful cursing, before it gets old and real results are required. We have all seen ribald CEOS who delight and then disappoint.

The current economic downturn is, of course, giving Bartz a bit of cover. But, as she well knows, when it turns for the better and she is in office for more than three full quarters, people will justifiably have to have their expectations for her performance met.

That could mean striking a deal with Microsoft (MSFT). Or it could mean gaining some search share from Google (GOOG). Or it could mean just cutting enough costs and improving display advertising sales to turn in a great quarter. Or reviving the pace of innovation at the Silicon Valley giant. Or, all of the above.

Until then, even on the receiving end of an f-bomb onstage (which, I can assure you, came as no surprise), it’s probably a very good thing to keep the tough talk going for a while longer.

Because it motivates staff, because it shows that there is some oomph, because it allows people to forget all that has past.

In no way will be no substitute for making significant changes that Yahoo so desperately needs–but, for this window of time, loose lips might even help keep the Yahoo ship from sinking further.

Speaking of lip, here is the clip of Bartz cursing at me, which is at 57 seconds in:

[The T-shirt image is from CafePress.com.]

]]> http://allthingsd.com/20090603/the-curse-heard-round-the-globe-well-actually-just-the-web-but-its-a-start-for-yahoo/feed/ 2 http://allthingsd.com/20090522/college-humor-dudes-newest-product-an-amazoncom-prank/ http://allthingsd.com/20090522/college-humor-dudes-newest-product-an-amazoncom-prank/#comments Fri, 22 May 2009 14:27:23 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=7637 The smarter-than-they-look guys at CollegeHumor.com attract some seven million unique visitors a month, are making smart strides in Web video and have their own show on MTV. And when they’re not doing that, they monkey with Amazon.

That’s why this fine Three Wolf Moon T-Shirt, available for as little as $9.78, became one of the online retailer’s most popular items in the last week. Prompted by a link at the IAC (IACI)-owned site, CollegeHumor readers bought up scads of the shirts, and filled Amazon (AMZN) with glowing reviews like these:

Unfortunately I already had this exact picture tattooed on my chest, but this shirt is very useful in colder weather…

This is the only t-shirt Chuck Norris wears. Wolves howl at the moon, and the moon howls at Chuck…

…So I’m looking for threads that say, “Hey baby…I’m real boss!” when I stumble upon this epic creation. The wolves spoke to me in a language all their own; it was like German, Mongol, and Bitchin all mixed together. I mean, one wolf howlin at the moon is major…but three???

Why bother? If you have to ask, you’re probably never going to get the joke. More info via the Washington Post, including the most pertinent detail: As clever as the CollegeHumor dudes are, they neglected to actually figure out how to profit from the stunt themselves.

]]> http://allthingsd.com/20090522/college-humor-dudes-newest-product-an-amazoncom-prank/feed/ 0 http://allthingsd.com/20090401/meet-peter-currie-facebooks-new-money-man-for-now/ http://allthingsd.com/20090401/meet-peter-currie-facebooks-new-money-man-for-now/#comments Wed, 01 Apr 2009 14:11:31 +0000 Kara Swisher http://kara.allthingsd.com/?p=11511

Back in the heyday, Peter Currie was the money man to see in Silicon Valley.

As CFO of Netscape Communications, he led the start-up into history, as the first great Internet rocket ship, when it went public on Aug. 9, 1995.

With the first consumer-friendly browser software, which made the Web easily understandable to the masses, Netscape was at the red-hot center of the nascent digital revolution.

“Wall Street went bonkers,” said one news reporter about the IPO, and the craziness did not stop for quite a while.

Rising to insane levels, the stock was ground zero of the Internet gold rush too, despite the fact that it had no profits to speak of.

But it did have a 23-year-old co-founder and tech wunderkind in Marc Andreessen, and a growth trajectory that was astounding.

If you think it sounds somewhat similar to Facebook today–where Currie will now help out as temporary financial adviser after the social-networking site parted ways with its CFO, Gideon Yu, yesterday, following mutual disagreements and announced a search for a replacement–you are correct.

In that job, the 53-year-old Currie will be helping Facebook CEO and founder Mark Zuckerberg, 24, navigate–albeit temporarily–through some stormy economics seas on a journey that will hopefully end in an initial public offering.

The search for a new CFO will also involve Currie, obviously, and will be conducted by Jim Citrin of Spencer Stuart.

But until a new CFO is in place, Facebook’s quest still entails sorting out a substantive advertising monetization strategy while also keeping up its speedy growth rates and managing the high costs that mount with its popularity.

That certainly was Netscape’s major challenge, which it never met successfully and which was made worse by intense attacks from Microsoft (MSFT) on Netscape’s core browser business.

That eventually led to the antitrust trial against the software giant, even as Netscape saw its star fall dramatically.

It was sold to AOL in 1998 for $4 billion, a shadow of its bubble valuation, and is now more of a footnote than an ongoing tech product (although the now-popular Mozilla browser is a direct descendant of Netscape).

In fact, in 2008, Time Warner (TWX) online unit AOL dropped its support for the Netscape browser and said it was no longer releasing new versions.

Still, a lot of former Netscape execs now hold other key jobs in the Web space.

Its investor relations exec, Quincy Smith, now heads up the digital arm of CBS (CBS), for example.

And Andreessen has started a number of companies and has transformed himself into an kind of elder statesman of Silicon Valley of late, as well as a newly minted venture investor.

Andreessen, many sources said, was a shadow influence on Zuckerberg’s decisions related to Yu, with whom relations had gotten tense, and to bring in Currie (pictured here).

Currie is certainly a great choice, in terms of the close-knit tech sector’s respect and experience.

Currie is also unusually tall, aggressively avuncular and laid-back, loves Elvis and enjoys pranking reporters like BoomTown. (Case in point: He once tried to spread the rumor that I am short due to a medical condition.)

Now the president of Currie Capital, a private investment firm, he had previously worked at General Atlantic in private equity.

After Netscape, he was a partner and co-founder of the Barksdale Group, an early-stage venture capital firm.

Before Netscape, he was CFO of McCaw Cellular Communications and also worked at Morgan Stanley (MS).

Currie is also board-happy, serving as a director of a variety of tech firms, private and public. They have included CNET Networks, Critical Path, Clearwire (CLWR), Safeco, Ofoto, Tellme Networks and Zantaz, as well as Sun Microsystems (JAVA).

He has an MBA from Stanford University and went to Williams College.

Here is the video interview I did with Currie and others at an event to support his friend and former Netscape exec Mike Homer, who recently died of Creutzfeldt-Jakob disease (Currie is at the 2:16-minute mark):

[ See post to watch video ]

(Image of Netscape IPO T-shirt courtesy of intothefuzz on Flickr.)

]]> http://allthingsd.com/20090401/meet-peter-currie-facebooks-new-money-man-for-now/feed/ 0 http://allthingsd.com/20090213/happy-valentines-day-a-geek-love-poem/ http://allthingsd.com/20090213/happy-valentines-day-a-geek-love-poem/#comments Fri, 13 Feb 2009 17:00:15 +0000 Kara Swisher http://kara.allthingsd.com/?p=9713 Tomorrow is Valentine’s Day, of course, so here’s a lovely sentiment on a T-shirt from the fine folks at ThinkGeek.

(BoomTown is still in an Elmer’s glue coma from making 252 handmade cards with 33 pounds of glitter, which my sons’ school insists on instead of the store-bought kind from Walgreens that I prefer.)

In any case, big, sloppy hugs all around to the readers of All Things Digital–except for those who know just who they are.

But to make up, please don’t think sending a romantic Twitter to us or one of those dumb digital virtual gifts of silly-looking little animals and baked goods on Facebook is going to cut it.

That’s right, you need to send a whole email to show that you really care! And maybe an iTunes gift certificate for Jill Sobule’s fabulous new “California Years” record too (I am wearing out my advanced copy, but it is officially out in April, including the apt song, “Bloody Valentine”).

Also a Tesla.

After all, love is bling.

]]> http://allthingsd.com/20090213/happy-valentines-day-a-geek-love-poem/feed/ 2 http://allthingsd.com/20080212/boomtown-bought-a-bakers-dozen/ http://allthingsd.com/20080212/boomtown-bought-a-bakers-dozen/#comments Tue, 12 Feb 2008 17:00:13 +0000 Kara Swisher http://kara.allthingsd.com/20080212/boomtown-bought-a-bakers-dozen/

In our ongoing quest for the perfect Walt Mossberg T-shirt, we are thrilled with this one, now available for purchase here.

They will join our others, such as this classic “Craplets” T-shirt, modeled below by Walt and Digital Daily’s John Paczkowski in our sacred collection.

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