According to sources close to the situation, Flipboard co-founder and CEO Mike McCue has approached Twitter CEO Dick Costolo and co-founder Jack Dorsey about moving off the board of Twitter.

It is not clear when McCue — who became a director of the San Francisco social communications company in late 2010 — will step down, but it could come soon.

The reason, sources said, is McCue’s growing feeling that the companies are on a product collision course, with a possible troubled or perhaps more attractive result.

In other words, Flipboard will either face increasing rivalry from Twitter or will end up as a possible acquisition target for it or other companies.

“How users consume and use Twitter is a key part of its future, and that is what Flipboard does well already,” said one person with knowledge of the situation. “There is going to be an inevitable crossroads for the two companies.”

Indeed, Twitter has bought several companies that help users read and discover, such as Summify.

The goal has been to better make sense of the massive amount of data that the service produces daily; to that end, Twitter has pushed to improve its user interface design on a number of devices.

And Twitter is a big part of Flipboard’s app, which is very dependent on the tweet feed and accounts for 70 percent of its links, sources said.

Flipboard is also more of a “mobile first” company, which is where Twitter is also headed even more aggressively.

Already popular on the Apple iPad, Flipboard launched its iPhone app late last year and it is prepping a version for Google Android soon.

That’s why, in addition to being a rival, it is also an obvious acquisition target for Twitter, as well as others such as Yahoo and Microsoft.

In fact, Google already tried to buy it last year, before Flipboard did a massive $50 million fundraising round that valued it at $200 million.

Its investors include Insight Venture Partners, Comcast’s venture arm, Kleiner Perkins Caufield & Byers, Index Ventures and a spate of well known angels, such as Dorsey, Facebook co-founder and Asana dude Dustin Moskovitz, Ron Conway, actor Ashton Kutcher and the investment company of former News Corp. exec Peter Chernin.

Co-founded by longtime entrepreneur McCue (Netscape, Tellme) and former Apple iPhone engineer Evan Doll, Flipboard launched to much attention in mid 2010.

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

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

Google has mounted a competitor, called Currents, as has Yahoo with its Livestand offering, neither of which have gotten much traction. In fact, sources said, Yahoo is likely to shut Livestand down completely.

There have also been a spate of other similar readers, such as Pulse and Zite.

Spokespersons for both Flipboard and Twitter politely declined comment.

According to the report, social networking is becoming a more important means of communication and information gathering in China, where 36% of PC users said social media sites are their favorite source of content. Chinese users spend an average of 46 minutes per day on social media sites, the report says, while users in the U.S. and Japan spend 37 minutes and seven minutes on the sites per day, respectively.

Read the rest of this post on the original site »

Facebook filed an updated version of its S-1 public offering document today, which included somewhat disappointing first-quarter financials.

In the new filing with the Securities and Exchange Commission, its fourth update for its upcoming public offering, the social networking giant’s revenue was $1.058 billion, up 46 percent for the year, but down six percent from the previous quarter.

In the first quarter of 2012, Facebook’s net income was $205 million, which was down from $233 million a year ago. The company attributed the decline to rising costs, including in marketing and in research.

Facebook also said its current share price was $30.89 each, which values the entire company at about $77 billion.

Some investors might worry about the latest results, which show a slowing in Facebook’s torrid growth. But Facebook said the quarterly decline was due to seasonality — it was flat in the same period a year ago.

As it noted in the document:

“We believe that our rates of user and revenue growth will decline over time. For example, our revenue grew 154% from 2009 to 2010, 88% from 2010 to 2011, and 45% from the first quarter of 2011 to the same period in 2012. Historically, our user growth has been a primary driver of growth in our revenue. We expect that our user growth and revenue growth rates will decline as the size of our active user base increases and as we achieve higher market penetration rates.”

Its audience, though, was still growing strongly: Facebook also said it had 532 million daily active users, up from 372 million a year ago and 483 million in December. Its monthly active users were up from 680 million last year to just over 900 million and up from 845 million from December.

Facebook also added an explicit figure for average revenue per user, which was $1.21, up six percent year over year. It also said the number of full-time employees grew 46 percent from last year to 3,539 at the end of March.

The last update to Facebook’s regulatory filing for its mid-May IPO was in late March. That one gave investors more information about a patent infringement lawsuit waged by Yahoo — Facebook noted its counter claim in the newest filing — and also its motion to dismiss Paul Ceglia’s legal attempt to garner half of the company. It then included more information about growing engagement by users of the social networking site.

Along with some other minor changes in the new document, Facebook noted, in news that was already known, that it would trade its stock on the Nasdaq market under the ticker symbol “FB.” It also said it had bought photo-sharing start-up Instagram, another piece of old news, and noted its just-struck patent deal with Microsoft.

One new detail about Instagram: Facebook forked over “approximately 23 million shares of our common stock and $300 million in cash” to buy it.

Also, said Facebook, in an interesting new section on its global business:

“In the first quarter of 2012, 50% of our revenue was generated by users in the United States and Canada, a decrease from 54% of our revenue for the first quarter of 2011, and in 2011, 52% of our revenue was generated by users in the United States and Canada, as compared to 58% in 2010, as we experienced more rapid revenue growth in markets such as Germany, Brazil, Australia, and India.”

Here is the whole updated file, if you want to peruse yourself:

4thfbs1update

Yahoo beat Wall Street estimates in its first-quarter earnings report today, with revenue of $1.08 billion and earnings of 23 cents. That’s a gain of 28 percent from a year ago in net earnings and 38 percent per diluted share.

Analysts had been expecting Yahoo to report revenue of $1.06 billion and earnings of 17 cents a share. But, as I reported earlier today, sources had indicated that the results would be on the upside.

Still, revenue was only up year over year by 1 percent — not exactly a great achievement, given exploding growth across the Internet industry. The real drag was the Europe, Middle East and Africa regions, whose revenue was down 9 percent — which Yahoo attributed to the weak economy there — with its “contribution” down 27 percent. That region has been run by Rich Riley, who is now Yahoo’s sales lead in the U.S.

One interesting note: While display revenue was down, search revenue was up. And unique visitors to Yahoo were up 7 percent, which was lower growth than in previous quarters. The reason was declines in search and communications, with media up strongly.

Now, investors are hoping to get more clarity from new CEO Scott Thompson in a call at 2 pm PT about the overall strategy for the troubled Silicon Valley Internet giant, which just restructured its management again and also had layoffs of 2,000 employees.

Thompson has yet to articulate a specific plan beyond the broad strokes of media, commerce and data/platforms as Yahoo’s aim.

But there is a lot more to deal with and in detail, including figuring out its troubled advertising search partnership with Microsoft, the talks around selling off parts of the company’s lucrative Asian assets, Yahoo’s patent lawsuit against Facebook, how Yahoo is going to deal with activist shareholder Third Point’s possible proxy challenge and whether more layoffs beyond recent firings will be needed.

“In the first quarter, Yahoo!’s results came in at the high end of our guidance range and beat consensus on revenue and profits,” Thompson said in a statement. “We also made changes to resize the organization and establish a new leadership structure to quickly deliver the best user and advertiser experiences at scale.”

Until Thompson gives more deets on the earnings call, which I will be liveblogging, here’s Yahoo’s official press release and cool charts on the subject:

YHOO News 2012-4-17 General

YHOO_Q112EarningsPresentation

If you want a quick analysis of why Facebook would pay $1 billion for popular photo-sharing service Instagram, please ignore the obvious financials that just don’t add up at all and have most of the typically unshockable digerati shocked by the sheer amount of the price.

Actually, it’s pretty simple: Photos. Photos. And, oh yes, mobile photos — lots and lots and lots of them.

Astonishingly, Facebook users already upload an average of more than 250 million images daily, making it the most popular photo-sharing service on the Web.

But it’s not the best by far and not the most mobile, which is Facebook’s biggest weakness — that has been accomplished many others, especially Instagram, the favorite of power users who scoffed at Facebook’s weak tools. (The horror of no filters!)

Now — instead of all those billions of juicy digital photos snapped by an ever-growing legion of smartphone users loading up to the beautifully designed Instagram mobile app and living on the servers of the small San Francisco-based start-up — Facebook has now captured all these memories for its massive social networking site.

And while $1 billion seems an awful lot to pay for that privilege — Twitter is quaking with “OMG!” and “Wow!” and “WTF!” tweets about the acquisition — this is apparently priceless for Facebook in a deal that went down quickly and quietly in recent weeks.

That and the fact that the huge sum prevented Instagram from being scooped up by Google.

It’s a clear signal from CEO and co-founder Mark Zuckerberg — who rules all product efforts at the company — of his intent to dominate all innovations that have to do with owning the social experience.

Because while many Instagram photos quickly made their way onto Facebook — sharing on the service, as well as on Twitter, was a big part of the app’s offering — the future of the Menlo Park, Calif.-based company is tied to having control over key elements of the user experience.

Of all of those — communications, status updates, content linking — it has been photos that have become perhaps the most important part of Facebook, almost since its beginnings.

Photos are what allowed Facebook to grow so quickly and what made it more than just a blue sea of text and links to consumers. Its new Timeline depends on big, pretty photos, and Facebook even recently announced that it would allow full-screen viewing of high-resolution photos on its Web site, a pricey endeavor.

So, perhaps it was inevitable that Zuckerberg would pay up for Instagram, too — he knows a good entrepreneurial success when he sees one and apparently has the power to convince start-ups that he can make their bigger dreams come true.

Whether or not Instagram ever makes money is perhaps beside the point at this moment in time, as Facebook is poised to go public at 100 times the amount it forked over for Instagram.

But that it considers such a purchase worth as much as one percent of its expected valuation says a thousands words. And most of those words are “mobile” and “photo.”

As Ben Jacobs noted on Twitter: “Kodak goes bankrupt and Instagram is worth a billion dollars. 2012, y’all.”

Indeed. And, I have no doubt if Zuckerberg could figure out a way to shove all those Kodak moments from analog snapshots onto Facebook easily, he’d have paid up for that, too.

Shakil Khan, the well-known head of special projects for the popular Spotify music service, is taking a job with the same title at Path, the fast-growing personal social networking start-up.

Khan will be focusing on growth and international issues, and based out of London but with global duties. Path’s HQ is in San Francisco.

That’s important, since Path has been growing strongly outside its initial U.S. market, especially in Asia. In February, Path CEO Dave Morin announced that it had two million users.

In an interview last night, Khan said he will remain an adviser to Spotify’s CEO and co-founder Daniel Ek, noting that he is also an investor.

Interestingly, said many sources and also a number of reports, both Path and Spotify are in the midst of large funding rounds with hefty valuations.

In fact, Spotify is being valued at $4 billion, which was not the case when Khan came to the then-fledgling company in 2008. Taking up a job essentially as a kind of fix-it guy for Ek, he worked on a number of important initiatives, from gaining early user traction to hiring its early management to wrangling celebrities to use the service.

Khan said that he decided to leave Spotify, which has recently had a huge spurt of growth due to its recent integration on Facebook, because he has “always been a start-up guy.”

“I loved the days when people used to say, ‘What is that, how do you spell it,’” he said about Spotify. “I need those kind of butterflies, and Path is just that kind of amazing product with huge global potential.”

In an email, Path’s Morin said:

“We are beyond delighted that Shak has chosen to join the Path family as we continue our mission to build the first global personal network by helping people journal and share life with family and close friends. Shak brings a unique global perspective and skill set to Path which will help us reach and serve our members and partners across the globe in a uniquely personal way.”

And Ek, calling in from Sweden (where it is 80 degrees!), said that he was sad to see Khan go, and was also in his debt for his service to Spotify.

“I am kind of an introvert guy, and Shak is definition of social, so he was the link to the rest of the world in many ways for me and for the company,” said Ek. “So where he is going and what he will be doing at Path is perfect.”

On the sixth page of its just-filed patent lawsuit against Facebook, Yahoo quotes the social networking company’s CEO and co-founder Mark Zuckerberg:

“Getting there first is not what it’s all about.”

The quote, which Yahoo contends shows Zuckerberg has “conceded that the design of Facebook is not novel and based on the ideas of others,” is woefully taken out of context, but it’s an attempt to hit home one point:

We were here first and we have more patents.

Even if, as it has turned out, Yahoo has done little over the years with the innovation those patents might represent. Meanwhile, Facebook has run the bases with the wide range of the advertising, messaging, customization, privacy and social networking concepts involved.

Of the 10 patents Yahoo is using in the 19-page lawsuit, filed today in California, the company said: “For much of the technology upon which Facebook was based, Yahoo was there first.”

First but worst, as Yahoo has struggled in recent years to make itself more relevant and prevent the decline of its once mighty business.

Via a series of ineffective leaders and strategies, that has not worked at all, as its business has declined. Now — under the much more in-your-face reign of new CEO Scott Thompson — Yahoo is hoping that courts will determine that what it says it invented counts for something.

“Facebook’s entire social network model, which allows users to create profiles for and connect with, among other things, persons and businesses, is based on Yahoo’s patented social networking technology,” Yahoo’s lawsuit reads, in part.

That includes in the legal action, Yahoo alleges, Facebook’s popular News Feed, advertising methods, privacy settings and more. The company adds that Facebook has been “free riding” on Yahoo’s intellectual property and that royalty payments alone will not suffice.

So what does Yahoo want for this alleged free ride? Triple damages and to enjoin Facebook from operating by using said patents.

Given the scope of the patents Yahoo said it has, that means it wants Facebook to essentially close down.

Therefore, I would be expecting Facebook to poke back in three … two … one …

In what is either the boldest gamble of its history or the most boneheaded, Yahoo has filed a massive patent infringement lawsuit against Facebook.

The attack by the Silicon Valley Internet icon against perhaps the most powerful consumer social networking site today — also based in tech’s heartland and also an important partner of Yahoo — is sure to be a controversial one, pitting Yahoo against a company that has surpassed it handily in recent years in regards to popularity among consumers.

“Facebook’s entire social network model, which allows users to create profiles for and connect with, among other things, persons and businesses, is based on Yahoo’s patented social networking technology,” Yahoo’s lawsuit reads, in part.

That includes, Yahoo alleges, Facebook’s popular News Feed, advertising methods, privacy settings and more. The company adds that Facebook has been “free riding” on Yahoo’s intellectual property and that royalty payments alone will not suffice.

So what does Yahoo want for this alleged free ride? Triple damages and to enjoin Facebook from operating by using said patents.

The 19-page lawsuit over 10 patents — related to advertising, privacy, customization, messaging and social networking — comes as Yahoo is seeking to right itself under new CEO Scott Thompson.

Multiple sources said he is primarily driving this new aggressiveness from Yahoo.

Since Yahoo told the New York Times that it was considering such a move last week, the issue has been widely debated within the company, with many top techies there opposed to it, due to the company’s longstanding ethos of using patents for defense rather than offense.

Thus, the decision to move was closely held, sources said, with only Thompson and legal chief Michael Callahan largely working on it.

Still, patent lawsuits have become ever more prevalent among tech companies, as they seek to battle for advantage in a rapidly changing competitive landscape. Apple, Google, Microsoft and others are involved in several legal actions, although they are largely related to mobile technology.

Yahoo’s lawsuit is the most prominent in the social networking arena, a sector that has seen a huge explosion of late. Its timing could not be worse for Facebook, since it is in a quiet period for its upcoming IPO, which is expected to value the company at close to $100 billion.

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

Yahoo is shaking Facebook down for much more here and with much higher stakes for both companies. If successful, Yahoo could seriously damage Facebook’s initial public offering; if not, Yahoo will cement its growing reputation as a company with nothing to lose, whose value is built not on its current business, but on non-operating assets.

More importantly, at least initially, the move did nothing to boost Yahoo’s moribund shares — the stock was down about one percent to $14.49 in after-hours trading.

More to come, but here is the entire document below. The lawsuit has been filed in San Jose, Calif., federal court.

Lastly, the official PR back-and-forth:

Said Yahoo, in its statement:

“Yahoo! has invested substantial resources in research and development through the years, which has resulted in numerous patented inventions of technology that other companies have licensed. These technologies are the foundation of our business that engages over 700 million monthly unique visitors and represent the spirit of innovation upon which Yahoo! is built. Unfortunately, the matter with Facebook remains unresolved and we are compelled to seek redress in federal court. We are confident that we will prevail.”

Facebook, obviously, disagrees, and also threw in a jab about the lack of discussions over the issue between the pair:

“We’re disappointed that Yahoo, a longtime business partner of Facebook and a company that has substantially benefited from its association with Facebook, has decided to resort to litigation. Once again, we learned of Yahoo’s decision simultaneously with the media. We will defend ourselves vigorously against these puzzling actions.”

I’ll admit to also being puzzled about the strategery here, but I am sure there will be much more to come.

Until then, read on:

Complaint

And here is what I wrote last week on the subject:

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

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

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

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

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

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

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

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

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

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

You know, with good ideas.

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

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

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

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

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

That certainly could happen here, with Yahoo managing to grab a chunk of Facebook’s pre-IPO stock.
That would mean that Yahoo’s most valuable asset would be those shares, as well as its stake in Asian companies it bought a while back for a bargain and now makes up a bulk of the company’s valuation.

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

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

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

(c) Tim Vetter / Flickr

This last weekend, Foursquare founder Naveen Selvadurai announced in a blog post that he was leaving the company, three years after launching the check-in service with Dennis Crowley. In a terse note, Sevaldurai wrote that he would remain on the company’s board and as an adviser, as well as the “single most vocal user” of the popular check-in service.

But, he added, “spring is time for things that are new, and i realize that i have a desire to do something new as well. i’m not sure about my exact next steps.”

Spring forward indeed, because — according to numerous sources inside and outside the company — the impetus for Selvadurai’s departure was a lot more complex and fraught than he or the company indicated.

To be fair, this is not uncommon for start-ups at all. Twitter went through the mother of all contentious partings — twice, in fact — in an ongoing battle among its founders. Tech is rife with similar examples, most often of lesser drama.

And it is much the same with Selvadurai and Crowley, who had together become New York’s highest profile entrepreneurs in recent years. The pair cut a wide swatch of fame, including doing commercials together (see video below).

But times change and sources said that they had come to the conclusion over a series of talks over the last several months that there was no place for Selvadurai any longer at the fast-growing start-up.

“This company grew very quickly and a lot of senior management has been added,” said one person with knowledge of the situation. “It got to the point where Naveen was not in charge of much.”

Indeed, since Foursquare began adding execs — I have a list below — he had become ever more sidelined, ending up with a small team focused on platform efforts and supporting APIs.

“Naveen was no longer heading any meaningful area of functional responsibility, so things got tense,” said another source.

Still, according to several people familiar with the situation — unlike the highly charged parting that took place at Twitter — the departure was not ugly or closely related to either a recent stock sale by employees or its most recent funding in June that valued Foursquare at $600 million.

“Dennis and he don’t hate each other — things just changed,” said one person.

Said another source: “When you look at all the external stuff, Naveen’s leaving was really not tied to anything in particular. The business was really starting to mature … and there is eventually a line in the sand between building a product and building a company.”

Indeed, rather than a scrappy start-up, Foursquare now has 111 employees, up from 50 last year, and has moved into a new phase of trying to evolve from simply being a check-in service.

As that was happening, said multiple sources, the discussions about roles at the company became more pronounced.

“The way this company has been structured, the talks centered on how to contribute to a company and Naveen and Dennis agreed that there was not a place for him day to day,” said one person. “But that does not mean he still will not be contributing to the future of Foursquare in a different way.”

The pair both emailed Foursquare’s staff about the change, although Crowley’s public goodbye on Twitter was short and, yes, sweet:

After 3 yrs, my @foursquare co-founder is moving onto new projects & big ideas. Can’t wait to see what’s next @naveen! naveenium.com/stream/next

— Dennis Crowley (@dens) March 5, 2012

Like I said: Things change.

Here’s the current Foursquare management team:

Dennis Crowley, CEO & co-founder
Evan Cohen, COO (joined January 2010)
Holger Luedorf, head of business development (joined summer 2010)
Alex Rainert, head of product (joined April 2010)
Harry Heymann, head of engineering (joined summer 2009)
Susan Loh, head of talent (joined fall of 2010)
Jon Steinback, director of marketing and communications (joined fall of 2010)

And here are some of the latest stats from the service:

* Over 15 million users (up from just over five million this time last year).

* Over 1.5 billion check-ins.

* Five million check-ins per day.

* Over 750,000 businesses affiliated.

And here’s the video that Foursquare’s co-founders did together for USA Network last year:

Image: (c) Tim Vetter / Flickr

Yahoo will report its fourth quarter earnings tomorrow, after the markets close, which most expect to be lackluster compared to a year ago.

To call this report a surprise would be, well, wrong.

In fact, it will be the 13th quarter in which the Silicon Valley Internet giant has done worse that the previous year. (This has happened as Internet advertising has boomed for sites like Google and Facebook, as a point of reference.)

Welcome aboard, new CEO Scott Thompson! Now, what are you going to do about it?

Probably cut costs first, including staff, and try to quickly figure out an all-new, this-time-it’ll-take strategery about what to do to turnaround the much beleaguered Yahoo.

But, first, the depressing quarter to deliver again.

The estimates for that weak performance have a range, but the consensus of analysts is expecting revenue to be $1.19 billion on profits of 23 to 24 cents. If Yahoo has managed to rein in costs more than expected, some analysts are hoping for a slightly better report.

Still, all the indications are for more negative signs in user engagement, search share, display advertising stats and more.

Thus, we await the light at the end of the tunnel.

As Citigroup’s Mark Mahaney noted in his cheat-sheet analysis:

“Valuation remains intriguing, but we’re still waiting for convincing Top-Line Turnaround Story Proof. With new CEO Scott Thompson, we believe YHOO will be another wait-and-see turn-around story.”

Of course, much of the action is taking place elsewhere, with the company ferreting away at the deal to sell off a big stake in Yahoo’s Asian assets and also subtracting and adding new board members.

But tomorrow, it’s once more unto the Wall Street breach, dear friends, or close the wall up with our purple dread.

Until the results are in, here’s a recent video I did for WSJ.com’s online Digits show on the possible layoffs at Yahoo:

Demand Media beat Wall Street expectations in the third quarter, posting a loss of five cents a share. Investors had expected it to lose from four to six cents.

Revenue was up 25 percent to $85.1 million, compared to $65.4 million in the same period a year ago. Minus traffic acquisition costs, sales increased 26 percent to $78.1 million from $62.2 million.

The stock of the Santa Monica, Calif., social content company has suffered in the quarter due to worries about its traffic and growth, but it has recently bounced back after hitting all-time lows.

After losing almost nine percent today, in profit-taking ahead of earnings after a recent price surge, Demand shares rose over 17 percent in after-hours trading to $8.30.

Some more details, according to a Demand statement on the Q3 financial results:

Content & Media Revenue increased 27% to $50.7 million, compared with $39.8 million in Q310.

Traffic acquisition costs (TAC), which represent the portion of Content & Media revenue shared with Demand Media partners, of $3.4 million, or 6.7% of Content & Media revenue, compared with $3.2 million, or 7.9% of Content & Media revenue, in Q310.

Content & Media Revenue ex-TAC grew 29% to $47.4 million, from $36.7 million in Q310.

Registrar Revenue increased 20% to $30.7 million compared with $25.5 million in Q310.

In addition to its more high-profile content business, Demand also has a domain registry unit.

“We reported another strong quarter as we continue to build Demand Media’s foundation for long-term growth,” said Richard Rosenblatt, Chairman and CEO of Demand Media in the statement. “The Company is uniquely positioned to deliver data-driven professional content through its robust content publishing platform. We are now in the process of optimizing that platform while increasing our investment in video content and enhancing the quality, engagement and user experience of our sites.”

There will be a conference call at 2 pm PT today, which I will liveblog (as long as it is lively!).

Until then, enjoy the official Q3 earnings press release:

3Q11 Earnings ReleaseFINAL

Jawbone, the San Francisco mobile products company famous for its Jawbone mobile headsets and Jambox wireless speakers, today introduced its latest offering, called UP.

The company had previously shown off the small $99 wristband and its accompanying Apple iPhone application, which track a user’s daily activity, sleep patterns and eating habits. Incorporating motion sensors and social elements, UP will be available to consumers on Nov. 6.

Jawbone said it is making the move into the sector because “global health is on a disturbing and rapid decline.” Hence, UP, which is aimed at making people aware of how they move through the world (or not).

The consumer electronics company had raised another $70 million in funding earlier this year.

The wristband was designed, as usual for Jawbone, by Yves Behar, and comes in three sizes and numerous colors.

Here is a video about UP that I did last week at Jawbone offices with founder and CEO Hosain Rahman and the company’s software head, Jeremiah Robison:

]]> http://allthingsd.com/20111102/jawbone-debuts-up-which-tracks-well-you-video/feed/ 0 http://allthingsd.com/20111102/asana-launches-to-public-finally-moving-out-of-private-beta/ http://allthingsd.com/20111102/asana-launches-to-public-finally-moving-out-of-private-beta/#comments Wed, 02 Nov 2011 13:00:56 +0000 Kara Swisher http://allthingsd.com/?p=138433

Asana, the high-profile group collaboration start-up founded by former Facebook execs, is moving out of private beta after a year, and will launch to the general public.

Currently in use by thousands of users at hundreds of beta companies, Asana said it will now put its efforts at tweaking the product to a wider test.

In Sanskrit, “asana” means “sitting down,” and refers to strong but relaxed postures in yoga, presumably so frustrated workers can achieve a digital form of nirvana.

The product can be used for free by teams of fewer than 30 users.

“Our beta users have helped us in shaping our prioritization in the workspace,” said Asana co-founder Dustin Moskovitz.

Moskovitz said that the company — which raised $9 million in venture funding two years ago, and $1 million before that from Benchmark Capital, Andreessen Horowitz and angel investors — is not in need of more funds and will not yet release a paid product.

Co-founder Justin Rosenstein added that one future direction will be the growth of the mobile application arena for Asana, which already has offerings.

Here are some screenshots of the Asana offering:

]]> http://allthingsd.com/20111102/asana-launches-to-public-finally-moving-out-of-private-beta/feed/ 0 http://allthingsd.com/20111101/clearspring-buys-data-science-start-up-xgraph/ http://allthingsd.com/20111101/clearspring-buys-data-science-start-up-xgraph/#comments Tue, 01 Nov 2011 12:00:14 +0000 Kara Swisher http://allthingsd.com/?p=138517

Clearspring, the social-sharing company — in an effort to increase its business as a marketing analytics player — has acquired XGraph, a data science company.

Clearspring declined to provide the price it paid for XGraph, but said the deal was in cash and stock. The start-up raised $3.75 million just over a year ago.

The combined company has 85 employees — 70 at Clearspring and 15 at XGraph.

Execs at the the McLean, Va.-based company said the purchase will increase value to advertisers and publishers via audience targeting and data science. Clearspring is best known by consumers for its AddThis social-sharing tool, which provides a lot of detailed user data.

Clearspring raised $20 million in funding in May. At the time, the company said it planned to spend its new cash on acquisitions that leveraged data and built audiences more efficiently.

The New York-based XGraph focuses on modeling and monetizing the Web’s social graph.

“We get a lot of data points every day and making sense of them is something we have already been doing, but XGraph fits the bill to go even further in the multi-graph use of data,” said Clearspring CEO Ramsey McGrory. “It puts us in a position to be the market leader for the application of data.”

Key Compton, CEO and co-founder of the three-year-old XGraph, noted that the industry has become data-driven in new ways.

“People are connected to each other via social connections in a multi-graph platform,” said Compton. “I think there are some really interesting opportunities to access the data.”

Here’s the official press release for the deal:

Clearspring Acquires XGraph to Create Largest Multi-Graph on the Open Web

Company accelerates growth by deepening data team and technology

McLean, VA and New York. NY. — November 1, 2011 – Clearspring, provider of the largest social sharing and analytics platform, AddThis, announced today it has acquired XGraph, Inc., a leading data science company focused on modeling and monetizing the web-wide social graph. Clearspring’s massive reach and proprietary real-time data processing capability, coupled with XGraph’s audience technology, create the largest multi-graph platform on the web — mapping 1.2 billion user’s connections by brand affiliation, intent and social behavior.

The investment in XGraph’s data science capabilities marks another step on Clearspring’s rapid growth trajectory. XGraph’s team has deep data science expertise with applied backgrounds in advertising, sociology, mathematics and computer science. Their unique technology dynamically organizes users by shared connections and interests. XGraph’s team and platform will drive Clearspring’s existing efforts with publishers, advertisers and agencies forward while also setting the stage for new innovation.

“Clearspring is at the epicenter of two major shifts online — the web becoming social and personal, and advertising becoming data-driven and accountable. The common thread in both changes is data. To compete in this new world, companies will not only need the ability to access and process big data, but also have the ability to activate that data to create value for consumers, publishers and advertisers,” said Ramsey McGrory, Clearspring’s new Chief Executive. “The combined company has the people, technology and data to enable our clients to stay at the forefront of these changes. 2012 will be a breakout year for Clearspring.”

For advertisers, agencies and trading desks, Clearspring will immediately be able to provide the largest multi-graph audience targeting capabilities available on the open web. By using this technology to identify a brand’s core audiences and finding millions of other connected and like-minded people online, the company can now drive more efficient spending and increased campaign performance. Clearspring also plans to leverage this new capability to deliver publishers unique audience insights, monetization capabilities and actionable data products in the coming year.

“Most companies only capture one dimension of how we’re all connected, whether it be our friends or people we share with — a single graph approach. XGraph not only models these social connections, but also multiple other types of connections such as brand affiliations, intent and more — a multi-graph approach,” said Key Compton, XGraph’s CEO. “We’re truly excited to leverage our technology to unlock the value of Clearspring’s massive data set and help publishers and advertisers truly harness the power of the web-wide interest graph.”

XGraph is headquartered in New York with an office in Silicon Valley. All XGraph employees based in New York will join Clearspring’s office there. Clearspring plans to keep the office in Silicon Valley. The combined company will have 85 employees nationwide.

]]> http://allthingsd.com/20111101/clearspring-buys-data-science-start-up-xgraph/feed/ 0 http://allthingsd.com/20110830/zite-sold-to-cnn-for-just-over-20-million/ http://allthingsd.com/20110830/zite-sold-to-cnn-for-just-over-20-million/#comments Tue, 30 Aug 2011 17:06:15 +0000 Kara Swisher http://allthingsd.com/?p=115291 Zite, the magazine-style reading app for the Apple iPad, has been sold to news giant CNN for $20 million to $25 million.

The arena for news readers on tablets and smartphones is competitive, with high-profile efforts such as Flipboard, Livestand from Yahoo, AOL’s Editions and start-ups such as Pulse and Zite.

The reason for CNN’s acquisition interest — as well as look-sees from several other publishers — is not a surprise: As readers turn more toward using these mobile devices to consume content, big media companies are trying to acquire the technology to serve up their fare to them.

It is a dicey arena, though, where content aggregation meets (and crashes into) content lifting. Vancouver-based Zite, for example, was sent a cease-and-desist letter in March, by a panoply of media companies (not CNN!) alleging various copyright violations.

That happened right after it was launched, with $4 million in funding from angel investors and Canadian grants and an innovative personalized article-picking algorithm.

As Liz Gannes wrote then:

[Then] Zite CEO Ali Davar describes the iPad as a way to “emancipate the technology” his team originated at research at the University of British Columbia.

It had previously been put to work in a browser plug-in called Worio. And, as you might have guessed, browser plug-ins are a tough business.

The free Zite app imports a user’s Twitter tweets, follows and Google Reader subscriptions, offers lists of pre-made categories, and then solicits feedback and refines over time a list of topics and sources the user is interested in. It features articles based on their popularity, number of shares from a user’s network and topic relevance. (Davar said he thinks a person’s Facebook network data is too heterogeneous to reliably recommend articles, so it’s not included as an option.)

Last week, a Canadian site called Techvibes first wrote about the possibility of the sale of Zite to CNN, which is based in Atlanta and owned by Time Warner.

In a press release, CNN said Zite would remain a standalone unit, as a wholly-owned subsidiary of CNN, and that CEO Mark Johnson will continue to run Zite’s operations, but now in San Francisco. CNN also said that Davar will remain an executive director and Mike Klass will continue as CTO.

In a statement, Johnson said: “Zite is thrilled about combining forces with CNN to create a world-class news discovery platform. In CNN, we have found a partner who shares our vision and passion. Being part of the CNN family gives us the capital to grow Zite’s business and continue to innovate in the space.”

]]> http://allthingsd.com/20110830/zite-sold-to-cnn-for-just-over-20-million/feed/ 0 http://allthingsd.com/20110717/adobe-acquires-echosign/ http://allthingsd.com/20110717/adobe-acquires-echosign/#comments Mon, 18 Jul 2011 06:21:01 +0000 Kara Swisher http://allthingsd.com/?p=99047 Adobe has bought EchoSign, an electronic signature start-up, for an undisclosed price. The San Francisco-based company said it will integrate EchoSign — which has three million users — into its document exchange services platform, as part of a push toward a paperless workflow.

]]> http://allthingsd.com/20110717/adobe-acquires-echosign/feed/ 0 http://allthingsd.com/20110619/where-in-the-world-is-yahoos-carol-bartz-heres-the-internal-memo-gps/ http://allthingsd.com/20110619/where-in-the-world-is-yahoos-carol-bartz-heres-the-internal-memo-gps/#comments Sun, 19 Jun 2011 19:03:06 +0000 Kara Swisher http://allthingsd.com/?p=88163

With its annual meeting this coming Thursday, you’d think Yahoo CEO Carol Bartz would be taking a rest.

Not so!

She has been a regular Carmen Sandiego, in fact, jetting to Yahoo hotspots around the globe from Dubai to Milan to New York and then back to Yahoo’s Sunnyvale, Calif., HQ.

As do Yahoos, I get most of the Friday emails she sends out, but I usually don’t bother to post them.

That said, I liked the can-do tone of this one, shades of Bartz early in her term, even in the face of a stock price that’s dropped almost eight percent this month to close at $14.69 on Friday.

(To be fair, the shares of Google are down by a little more in the same time, although its CEO Larry Page seems to prefer to remain holed up in his digital cave in Mountain View and lick his stock wounds.)

No matter, as Bartz writes, it’s nothing a little retail therapy can’t fix!

I myself am off on an international biking vacation in Ireland next week, so while I am gone, please enjoy Carol’s letter to Yahoos:

Last week was a crazy one -– Dubai and Milan in five days! You may not know it, but the Middle East and Italy are two of our hottest markets in the EMEA region (and I do mean hot — it was 114 Fahrenheit and very humid in Dubai — I thought I was going to melt!).

First on the itinerary was Dubai, where I met with government officials, advertisers, the media, and our awesome Yahoos there.

I kicked things off Monday with the Deputy Ruler of Dubai, Shaikh Maktoum Bin Mohammed Bin Rashid Al-Maktoum. Turns out he is a BIG Yahoo! fan. He told me that he’s on our sites every day to check the latest news and sports headlines. It makes sense — we’re huge in the Middle East and North Africa. Since we acquired Maktoob a year and a half ago, we’ve grown from 30 million to 53 million users. That’s impressive in a region with more than 70 million people online today.

We’re tops in entertainment with omg! Arabic, and with our women’s lifestyle site, Helwa. And we’re a strong #2 in News, thanks in part to our new Arabic homepage that launched six months ago. Already, it’s our fourth most popular homepage in the world — right behind the U.S., India and Taiwan. Meanwhile, Yahoo! is #1 in the Middle East and North Africa for display advertising with 40% market share.

Then on Wednesday it was off to Milan, where I visited with advertisers and our passionate Yahoos there. (I love that our Italian headquarters also happens to be located in one of the fashion capitals of the world — so convenient! An hour of retail therapy goes a long way).

We are winning it Italy. In a business review, our folks called themselves the Yahoo! “Italian Racing Team,” and I believe it. They’re firing on all cylinders. The country boasts some of the highest engagement numbers for us in the EU. We reach 66% of the online population in Italy. We’re top three in seven content categories, and #1 in four of them: Mail, News, Answers and Flickr. Plus, these #1 sites are growing faster than the market. And on the ad side, May was a record month for our display advertising in Italy — we’re taking share while growing revenue.

Throughout my trip to Italy and the Middle East, one thing came through loud and clear: Our local teams are able to execute and grow user engagement more quickly than ever before. This is thanks, in large part, to the great work of our Products org.

Take, for instance, our new Yahoo! Publishing Platform (aka LEGO). Our editors have put it to good use on our Italian Movies site. We’ve seen a 90% increase in page views, and a 60% increase in users. And that’s just in the first three weeks! This is exactly what we’ve been working so hard on for the past two years. We’ve completely re-architected our infrastructure, and it’s incredibly satisfying to see it pay off in so many parts of the world.

After all that fun, I headed back across the Atlantic and spent two good, solid days covering a lot of business in the Big Apple — press, investors, agencies and Yahoo! Sales leaders. Then it was back here to Sunnyvale for CEO staff meetings and a great “Coffee with Carol” with 30+ Yahoos.

I’m off to have a good weekend, hope you do too — especially you Dads on Father’s Day!

Carol

]]> http://allthingsd.com/20110619/where-in-the-world-is-yahoos-carol-bartz-heres-the-internal-memo-gps/feed/ 0 http://allthingsd.com/20110509/microsoft-will-announce-acquistion-of-skype-tomorrow-morning/ http://allthingsd.com/20110509/microsoft-will-announce-acquistion-of-skype-tomorrow-morning/#comments Tue, 10 May 2011 03:14:16 +0000 Kara Swisher http://kara.allthingsd.com/?p=43738

The Wall Street Journal reported earlier tonight that Microsoft–in what would be its most aggressive acquisition in the digital space–was zeroing in on buying Skype for $8.5 billion all in with an assumption of the Luxembourg-based company’s debt.

Sources told BoomTown tonight that the deal for the online telephony and video communications giant is actually done and will be announced early tomorrow morning.

The purchase–which has been spearheaded in closely held negotiations by Microsoft CEO Steve Ballmer, with an assist from Business Division CFO Amy Hood and top dealmaker Charles Songhurst–is a bold move for the software giant and its biggest acquisition in more than three decades.

The big price will give Microsoft–which has struggled in its online efforts and has lost billions of dollars for its work–a big brand name on the Web.

With Skype, which has been aggressively expanding, Microsoft will continue to lose money in its Internet efforts. Skype lost $7 million on revenue of $860 million. Operating profits, which Skype preferred to highlight, were $264 million.

And–let us not forget–Skype’s debt is $686 million. Silver lining: That’s slightly less than Microsoft’s Online Services division losses in its most recent quarter!

But, sources said, the concept is bigger than just money, including getting access to Skype’s 663 million registered users.

Skype, which had been headed bumpily toward an IPO until now, will apparently be integrated into Microsoft’s Windows Live and other online communications efforts in both the consumer and enterprise arenas, sources said.

Think Kinect connecting.

Skype has had a big-company owner before–eBay Inc. paid $2.6 billion in cash and stock for it in 2005, as a way for the auction site’s buyers and sellers to communicate.

A 70 percent stake in Skype was sold in 2009 to investors such as Silver Lake Partners, Andreessen Horowitz, and the Canada Pension Plan Investment Board. It then valued Skype at $2.75 billion.

So, obviously, the deal is a big win for them. In addition, at the time they made their investments, Skype was a huge legal mess with lawsuits flying.

Skype has since gotten cleaned up enough to attract Microsoft.

Other suitors have looked at Skype, including Google, although acquisition interest by Facebook was very much overblown, said several sources.

Interestingly, Microsoft’s new smartphone partner Nokia also held meetings with Skype’s CEO Tony Bates, a former Cisco exec who arrived at the company last fall.

Interest in Skype by Microsoft was first reported by GigaOm’s Om Malik on Sunday.

Tune in at 5 am PT for the official press release, apparently, and lots and lots and lots of analysis of whether Microsoft paid too much for Skype.

]]> http://allthingsd.com/20110509/microsoft-will-announce-acquistion-of-skype-tomorrow-morning/feed/ 62 http://allthingsd.com/20110414/exclusive-flipboard-confirms-50-million-funding-at-200-million-valuation/ http://allthingsd.com/20110414/exclusive-flipboard-confirms-50-million-funding-at-200-million-valuation/#comments Thu, 14 Apr 2011 20:23:12 +0000 Kara Swisher http://kara.allthingsd.com/?p=42652

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

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

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

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

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

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

Insight is also an investor in Twitter.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

]]> http://allthingsd.com/20110414/exclusive-flipboard-confirms-50-million-funding-at-200-million-valuation/feed/ 4 http://allthingsd.com/20110330/when-media-giants-attack-cease-and-desist-letter-to-news-reader-zite/ http://allthingsd.com/20110330/when-media-giants-attack-cease-and-desist-letter-to-news-reader-zite/#comments Wed, 30 Mar 2011 22:24:14 +0000 Kara Swisher http://kara.allthingsd.com/?p=42209

A panoply of big media giants sent a cease-and-desist letter today to Zite, the Apple iPad news reader app.

The Washington Post, AP, Gannett, Getty Images, Time, Dow Jones and many other media organizations were part of the action, which you can read all about below.

Zite bills itself as a “personalized iPad magazine that gets smarter as you use it.”

Not smart enough, it seems, to avoid copyright complaints from the content creators the app sucks in.

“The Zite application is plainly unlawful,” said the letter to Zite CEO Ali Davar, noting all kinds of copyright violations.

In a phone interview with BoomTown this afternoon, Davar said Zite would comply with the letter by shifting the content from its “reading” mode to a Web one, which points to publisher sites.

“It’s a bummer that they did this, but we expected it,” he said.

In a comment he posted below, Davar also wrote:

“Zite’s goal is to work with publishers, not to be antagonistic. The few publishers that have contacted us regarding the reading mode view we have complied with their requests and simply switched over to web view. We’re talking to publishers right now to find a win-win for them monetarily and to at the same time preserve the great user experience.”

For now, it’s lose-lose, and the letter is a dramatic shot across the bow of all the many news readers now hitting the market in the wake of the popularity of the Apple iPad tablet.

The social media-focused Flipboard and the news-oriented Pulse are two others, both of which have claimed they are working with publishers.

But Pulse wrangled with the New York Times over misuse of its RSS feeds and copyright issues, which has since been settled.

Zite showed up earlier this month, a product of a machine-learning technology start-up called Worio, which is based in Vancouver, Canada.

The aggregator of personalized content, which has $4 million in angel funding, gets its cues from a user’s interests.

Zite’s technology originated at research at the University of British Columbia several years ago.

In an interview with NetworkEffect’s Liz Gannes a few weeks ago, Davar seemed sanguine about publishers.

Wrote Gannes:

The free Zite app imports a user’s Twitter tweets, follows and Google Reader subscriptions, offers lists of pre-made categories, and then solicits feedback and refines over time a list of topics and sources the user is interested in. It features articles based on their popularity, number of shares from a user’s network and topic relevance. (Davar said he thinks a person’s Facebook network data is too heterogeneous to reliably recommend articles, so it’s not included as an option.)

Flipboard itself is likely to add more personalization features; the company bought real-time social discovery technology from Ellerdale and has yet to implement much of it.

Vancouver-based Zite is well-funded, with $4 million from angels and Canadian grants, but it doesn’t have business relationships with publishers. The app lays out pictures and articles, stripping out everything else, including ads. Davar said he doubted this would be a problem. “It would be shortsighted for publishers to think of Zite as us versus them,” he said.

Short-sighted maybe, but legally lethal definitely, as you can see by this cease-and-desist letter, as well as a video from Zite on how its app works:

Letter to Zite _03 30 11_ –

Zite: Personalized Magazine for iPad from zite.com on Vimeo.

(Full disclosure: New Corp. owns Dow Jones, which owns this site.)

]]> http://allthingsd.com/20110330/when-media-giants-attack-cease-and-desist-letter-to-news-reader-zite/feed/ 12 http://allthingsd.com/20110330/dont-rain-on-microsofts-ad-parade-except-its-raining-in-seattle-natch/ http://allthingsd.com/20110330/dont-rain-on-microsofts-ad-parade-except-its-raining-in-seattle-natch/#comments Wed, 30 Mar 2011 20:10:47 +0000 Kara Swisher http://kara.allthingsd.com/?p=42138

BoomTown scrambled the All Things Digital jet (aka, United Airlines, Seat 7A) late last night to get up to Microsoft’s big event for its online advertising clients today.

Called “Imagine 2011: Marketing Leadership Summit” and held at its Redmond, Wa. HQ, the two-day gathering is designed to wow peeps by trotting out a spate of strategery concepts those who buy advertising on Microsoft’s various digital offerings from its Bing search service to MSN to Xbox to Windows Phone 7.

Some program topics: “Elsewhere USA,” “Teens Hanging Out, Messing Around, and Geeking Out” and “Audience Buying Goes Real-Time: True or False?”

Presumably the goal of all this heavy-duty thinkery is to get these marketers to buy more ads from Microsoft by warning them about being left behind on the platform as the train chugs inevitably off to the digital future.

And just in case that doesn’t work, there will be a free concert tonight featuring the hipster band Train for the Imagine 2011 attendees at Microsoft Co-founder Paul Allen’s Experience Music Project venue to open those ad wallets.

Hey, Geek Mister: Stop sending all those digital marketing bucks to Google and Facebook and give them to us!

Before a panoply of various social, design and anthropology experts pontificated, Microsoft CEO Steve Ballmer kicked off the day with his patented loud and lovable Ed McMahon act, complete with the booming catchphrases.

Hey-Yo!

“You have to move forward or die!” (About the Web.)

“If you wanna get big, you have to think big!” (About the Windows 7 Phone smartphone deal with Nokia.)

I love the U.S. government, I don’t want to give it a hard time.” (About its crappy Web site, not the antitrust conviction thing.)

Ballmer outlined some key trends, which are not new to anyone paying attention over the last five years: Location; social; pervasive displays; ubiquitous connectivity; computers everywhere; cloud; data; and natural user interaction

He also joked about how there were 10 fake Steve Ballmers on Facebook, all using Steve Ballmer photos. Imagine that!

You’d think Microsoft’s badillion-dollar investment in the social networking site would get you a verified account!

Status: Monkey boy mad!

Actually, pissed off is more related to the fact that the person who conceived and organized the Imagine 2011 event was former global ad sales head Carolyn Everson.

But, she left the company in mid-February after only six months, for essentially the same job at Microsoft partner Facebook.

Since then Microsoft and Facebook have been wrangling over the talent raid, including Microsoft even considering legal action to block the move.

Nonetheless, the show must go on and it did in a pretty classy way.

But not without another road bump in today’s action–the news that Microsoft’s own marketing head, longtime company veteran Mich Mathews, was leaving the software giant later this year.

The departure had the halls buzzing about what happened and who will be taking over the big job with a $1 billion marketing budget.

Maybe some external CMO sitting right there in the audience or perhaps some internal Microsoft candidate such as Yusuf Mehdi or Capossela?

I suppose it’s time for some strategery stat!

Until it is all figured out, here is the music video for Train’s hit song, “Hey, Soul Sister”:

]]> http://allthingsd.com/20110330/dont-rain-on-microsofts-ad-parade-except-its-raining-in-seattle-natch/feed/ 0 http://allthingsd.com/20110330/yahoo-hires-tim-parsey-as-head-ux-designer/ http://allthingsd.com/20110330/yahoo-hires-tim-parsey-as-head-ux-designer/#comments Wed, 30 Mar 2011 10:43:56 +0000 Kara Swisher http://kara.allthingsd.com/?p=42140

In an interview BoomTown did yesterday with Yahoo’s Chief Product Officer Blake Irving–the video of which will be posted later today–at the Silicon Valley Internet giant’s HQ in Sunnyvale, CA, he managed to actually give me some news to report: the hire of crackerjack user experience design head Tim Parsey.

Parsey’s title will be SVP of User Experience Design at Yahoo, which is now centralizing the important task, Irving said. Previously, in the 67-ring circus that has been Yahoo’s product organization, design was widely dispersed.

Parsey certainly has the cred in the industry, with stints at Apple, Microsoft’s entertainment and devices unit, Mattel and Motorola. Most recently, he was a principal at a Seattle-based design firm called shiftalliance.

The British native ran Apple’s design studio for five years in the early 1990s and and was the main dude behind Motorola’s freaky V70 switchblade mobile phone in 2001.

Best of all: Parsey was once responsible for Barbie, as you can read below from his bio from shiftalliance, which announced his departure several days ago on its site:

[Tim Parsey] co-founded shiftalliance to focus on higher order value creation in business. The company is built on three beliefs: 1. that higher order, or meaningful, value is the next value driver in mature markets; 2. that sustainable innovation needs to consider the whole business model and; 3. that establishing a people-centric continuous change process is critical for success in today’s markets .

Prior to shiftalliance, he served as Partner, User Experience (UX) Director, Xbox Design at Microsoft, where he led a 22-person team responsible for the design and development of a new technology-enabled paradigm of interaction and entertainment that would not disrupt revenue streams from the existing Xbox gaming platform and contribute to the business in a more strategic way.

Previously, at Mattel as VP, Consumer Products Design, Tim was responsible for the Barbie, Hot Wheels and Fisher Price brands (in all non-toy categories) across 45,000 sku’s contributing nearly $2 billion in revenue worldwide. His charge was to establish the strategic and creative vision, and evolve the culture from a traditional licensing to a ‘leveraged innovation’ and ‘marketed product’ based approach. Key components of this evolution were to establish the first design languages for Mattel brands; lead design innovation for cross-functionally conceived marketing platforms (product, entertainment/web and 360 degree marketing); and nurture the individual licensee businesses and 5,000 designers across the portfolio into a community motivated to share and innovate together, thereby driving the business evolution at an appropriate pace. Before that, as VP, Wheels Design, he led 45 toy designers to advance the Hot Wheels, Matchbox and Pixar CARS toy design businesses. Activities included establishing product and brand design strategies, evolving the toy teams and building the first licensed consumer products design team, all of which led to re-energized business growth. This experience was a planned opportunity to understand toy design and specifically play innovation, and led to the formalization of the first play design methodology for Mattel.

Prior to Mattel, Tim served as Corporate Vice President at Motorola, where he built and led the Consumer Experience Design (CxD) group for the Personal Communications Sector (mobile phones) from an established industrial design team of approximately 22 in the US to a multifunctional design organization of approximately 150 distributed. This journey that included developing design as a competitive advantage for the company began 5 years after the StarTac and led to the design of Razr, the most successful brand and product range to be informed by a design strategy called ‘rich minimalism’. At the time, approximately 100 cell phones a year were being designed with a broad range of derivatives for different markets and carriers. CxD was distributed across Asia, North America and Europe and included Advanced Design and Design Planning groups that fed advanced thinking and strategies into the User Interface, Industrial Design and Human Factors groups. Specific achievements included establishing a collaborative industrial and user interface design methodology with key carriers.

Before that, Tim served as VP, Product Design and Development for ACCO, a manufacturer of office supplies and Manager, Design Studio at Apple after working as staff designer at ID Two (now IDEO) and other leading design consulting firms.

And here is a video of him speaking at a TEDx event about a year ago:

]]> http://allthingsd.com/20110330/yahoo-hires-tim-parsey-as-head-ux-designer/feed/ 0 http://allthingsd.com/20110228/video-nings-andreessen-and-rosenthal-talk-about-new-social-chat-service-mogwee/ http://allthingsd.com/20110228/video-nings-andreessen-and-rosenthal-talk-about-new-social-chat-service-mogwee/#comments Tue, 01 Mar 2011 02:56:21 +0000 Kara Swisher http://kara.allthingsd.com/?p=41116

Yes, it’s actually called Mogwee, which was the codename for the new mobile social communications service being launched tonight by Ning, the high-profile social networking platform co-founded by Silicon Valley icon and investor Marc Andreessen.

Part Twitter, part SMS, part Path and any number of such social start-ups, Mogwee actually stands for “more great weekends,” said CEO Jason Rosenthal, who has been focusing Ning on premium offerings.

BoomTown interviewed Rosenthal and Andreessen–who is also chairman of Ning–at an overpriced tea salon in San Francisco last week about the latest entrant into the crowded socializing of smartphones market.

The Mogwee app was approved today for the Apple iPhone and iPad. The Google Android version is coming in about a week and the one for Research in Motion’s BlackBerry is to come after that.

Also on deck: Integration with big social networking sites such as Facebook and Twitter. Currently, the only way to bring in friends is via your cell phone’s address book.

Once loaded, you can use Mogwee to chat live, share photos, play games, make analog plans and–horrors–throw sheep.

As you can see from the video and screenshots below, a user creates any series of “Hangouts”–such as a whiskey one by Andreessen–for real-time groups or one-to-one chat.

Here is the video interview I did, as well as a look at the service (click on the images to make them larger) and a blog post Rosenthal did about Mogwee:

I’d like you to meet Mogwee.

In January I talked to you about the custom social revolution that is fueling our business as more and more customers come to us to create powerful, custom social websites for their group, band, cause, classroom or business. Since then we launched the Ning Design Studio, major enhancements to the Ning Engagement System, and are in beta with our next killer feature, Paid Access. We have more on the way as Jonathan shared in his recent road map post, and I can’t wait to see Ning help even more customers bring their websites and brands into the social age.

With our road map in place, our business growing and the team humming–I spent some time last fall working with Diego, our CTO and Marc, our Chairman, to think about the next major area for Ning to tackle. We have this awesome team, a deep bench of talent, and 5 years of experience in group and social dynamics. We also knew that with the advances in smart phones mobile was going to be a critical part of the next break through services.

Enter Mogwee–with a very small team (just 2 at first) we began work on a new product–it would be both mobile and social at its core–not an adaptation of an old service for mobile. It would also rethink the modes in which we communicate for the modern age–a native app with chat as the backbone, real time and asynchronous sharing, additional mobile services built in–and it would be fun. A fun, consumer social product, that would be great for anyone to use!

I’ve been asked a few times–how does this relate to Ning? I believe that innovation (not the word, the act) is critical to making Ning a great company, not just building one great product, but a host of amazing new products for the future. Is Apple just the iPod? Google just Search? HP just a printer? We need to be pushing into new businesses that make sense and relate to our “social” DNA. We have an extremely talented engineering team–giving them new challenges and the freedom to invent makes Ning a better company and one that attracts and retains amazing people who want to do amazing things.

After several months of preparing we take Mogwee on its maiden voyage, launching today in Apple’s App Store, and very quickly after for Android and the web, we’re feeling excited, and for the 6 people now working on Mogwee–pretty tired.

Mogwee is a new social communication service that brings together all of the things you love to do with your friends and family on your phone. From chatting live and sharing photos, to planning a night out or playing a game, with a single tap, Mogwee gives you instant access to everything that makes life fun. I can’t wait for you to give Mogwee a try!

]]> http://allthingsd.com/20110228/video-nings-andreessen-and-rosenthal-talk-about-new-social-chat-service-mogwee/feed/ 1 http://allthingsd.com/20110210/glassdoor-takes-12m-for-job-review-site/ http://allthingsd.com/20110210/glassdoor-takes-12m-for-job-review-site/#comments Thu, 10 Feb 2011 16:39:59 +0000 Liz Gannes http://networkeffect.allthingsd.com/?p=3458 Glassdoor, perhaps the only gossip site that can actually improve your quality of life, has raised $12 million in Series C funding led by new investor Battery Ventures and including existing investors Benchmark Capital and Sutter Hill Ventures. The company has user-contributed (and moderator-reviewed, before posting) salary data and employer reviews on 110,000 companies in more than 100 countries. Launched right before the recession hit in 2008, the site has grown to 3.5 million monthly uniques, and CEO Robert Hohman said he thinks it’s “time to lean into it as the economy is recovering.”

]]> http://allthingsd.com/20110210/glassdoor-takes-12m-for-job-review-site/feed/ 0 http://allthingsd.com/20110201/seesmic-raises-from-4-million-in-funding-salesforce/ http://allthingsd.com/20110201/seesmic-raises-from-4-million-in-funding-salesforce/#comments Tue, 01 Feb 2011 13:39:29 +0000 Kara Swisher http://kara.allthingsd.com/?p=40053

In an interesting social enterprise move, popular social networking collaboration tool Seesmic is taking a $4 million investment from Salesforce.com, as well as from Softbank.

The San Francisco-based Seesmic has one of the top desktop and also mobile applications for monitoring a consumer’s various feeds from Twitter, Facebook and more.

So far, Seesmic has received $16 million in total funding. Other investors include Atomico, Omidyar Network and Wellington Partners.

Moving beyond a consumer app, where it has one million registered users, Seesmic has also worked closely with Salesforce.com on integrating its Chatter social enterprise network offering.

Deeper integration with Chatter and bridging more social communications with its customers is coming, said Seemsic founder and CEO Loïc Le Meur.

“It becomes an amazing internal dashboard if you are a manager,” said Le Meur in an interview with BoomTown this morning. “It has everything we have built for consumers, but internally.”

There are many such apps and software-based services being developed to inject social into the enterprise, including Yammer, Socialcast and Jive.

It will also be interesting to see if the investment is a prelude to an acquisition by Salesforce.com, to further bolster its own efforts in socializing the workplace.

Here is the official press release:

Seesmic Receives $4 Million Investment

SAN FRANCISCO–Feb 1, 2011–Seesmic, the leading maker of applications that monitor social networks across mobile devices, today announced a $4 million investment from salesforce.com, inc. and a Softbank Group company managed by Softbank Holdings Inc.

Seesmic helps companies monitor, engage and build their brands across social networks and mobile devices. The Seesmic Desktop provides a single console that lets companies view and respond, in real time, to comments being made about their brands in Twitter, Facebook and other social networks. Seesmic Desktop works with Apple’s iPhone and Macintosh computers, smartphones running Google’s Android or [Microsoft] Windows Phone 7 mobile operating systems, Research in Motion’s BlackBerry and on personal computers.

Salesforce.com, the enterprise cloud computing (http://www.salesforce.com/cloudcomputing/) company, and Softbank group join previous investors Atomico, Omidyar Network and Wellington Partners. Seesmic has received a total of $16 million, including the most-recent investment round.

Seesmic and Salesforce.com have worked closely for more than six months to create a seamless integration between Seesmic Desktop and Salesforce Chatter, the industry’s first enterprise social collaboration app and platform. Leveraging the social features popularized by Facebook and Twitter–such as profiles, status updates and real-time feeds–Chatter lets employees “follow” documents, people, business processes and application data. The result is a new level of productivity that crosses departments and organizational barriers. By integrating with Chatter, Seesmic Desktop will enable salesforce.com users to immediately see comments that customers have posted on Facebook and Twitter.

“Salesforce.com has become a valued partner as we work together to bridge external and enterprise social communication with Chatter. These investments will enable us to reach more enterprise customers” said Loïc Le Meur, CEO, Seesmic.

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