Persistence — even if it is the whiny, likely undeserved, lunkheaded legal version of it — certainly pays off.

But you have to marvel at the bizarre karma going on, given that my favorite matching pair of digital ottomans, Cameron and Tyler Winklevoss, are poised to collect up to $300 million from the shares they got in a settlement with Facebook and its CEO and co-founder Mark Zuckerberg over the founding of the social networking giant.

That’s right, folks, the rich do get richer, especially if they pursue their case well past the point of shame.

It’s not clear how many of the 1.2 million shares the Winklevii still have from the settlement they got in 2008, since they wrangled with their own lawyers over it, and the stock has also split.

But let’s assume the Olympic rowers kept a chunk, which will be worth a lot of gold-plated oars if Facebook reaches the upward of $80 billion valuation it is expected to in its upcoming initial public offering.

Facebook filed its long-expected IPO earlier this week.

And here’s a lovely tweet about the IPO from Cameron Winklevoss, who is looking very fetching on his Twitter page, even if it is perhaps about time to lose the rower meme image thing, given he’s on the closer side of 30 years old.

We r excited 4the #FacebookIPO + wish the company + all involved the very best,an amazing accomplishment! cc @tylerwinklevoss @DivyaNarendra

— Cameron Winklevoss (@winklevoss) February 2, 2012

He sent it to his twin brother, Tyler, and also to Divya Narendra, their other partner in the ill-fated ConnectU service.

Without going into all the well-gone-over deets (go see the Aaron Sorkin-penned movie and believe about 26 percent of it), ConnectU was the Harvard University dating site that Zuckerberg allegedly submarined in order to start Facebook.

Well, presumably water under bridge — unless you are talking about the perpetually disgruntled Winklevii.

At the time they finally dropped their seven-year fraud lawsuit this past summer, they then reopened to a different one then pending.

“The Social Network 2: The Overly Compensated Vii Strike Back,” anyone?

MORE ON THE FACEBOOK IPO:

• Facebook’s Ad Business Is a $3 Billion Mystery
• Viral Video: Farewell to the No-IPO Mark Zuckerberg
• Zuckerberg Is the Billion-Share Man: Who Owns What, Who Makes What in the Facebook IPO
• Zuckerberg Tells Investors, “We Don’t Build Services to Make Money”
• Mobile Highlighted as Key Risk Factor (and Opportunity) in Facebook Filing
• Stop All That Poking: Facebook Filing Temporarily Crashes SEC Web Site
• Zynga Accounted for 12 Percent of Facebook’s Revenue in 2011
• Facebook Has 845 Million Users
• On Its Eighth Birthday, Facebook Files to Raise $5 Billion in Massive IPO (Get Your S-1 Here!)
• Go the F**k Back to Sleep, Silicon Valley: Facebook IPO Likely to File Later Today at Earliest
• Dude, Where’s My Facebook IPO Filing? (Ashton’s on Hold!)
• The Quiet Man: Meet the Less-Known Face of the Facebook IPO, CFO David Ebersman
• Facebook Board Meeting Today for Final IPO Okays
• Facebook (Eye)PO: Tracking the Truth of the Biggest Deal of Web 2.0
• Viral Graphic: Visualizing the Facebook IPO
• Is Facebook IPO on Track for Late May?
• IPO Watch: Facebook Hiring Brunswick to Help With Comms for Expected Public Offering
• Complete Facebook coverage

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:

Social media dude Greg Voakes did a data visualization of what a Facebook IPO would look like, making it look cooler than it probably will be.

As I wrote last week, the social networking behemoth is planning a honking big public offering for late May, which could bring in $10 billion on a $100 billion valuation.

That is certainly a lot of dough — which Facebook will need to battle Google and others, while it also seeks world domination.

Enjoy:

According to multiple sources, the long-anticipated public offering of Facebook is now likely to come in the third week of May.

That means that the company must file its IPO documents within the next month, given that the review by the Securities and Exchange Commission usually takes about three to four months.

That’s if there are no issues, of course, such as a turbulent market or thornier-than-usual questions from regulators that require amending the filing.

Groupon, for example, filed for its IPO in early June, but did not go public until five months later in November.

The usual caveat on the late-May timing (even though I called 143 people on this one): This IPO planning could all change, in a New York minute, to another month.

In any case, the Facebook IPO is expected to be one of the largest Web offerings ever — with some reports saying the company will be raising $10 billion on a $100 billion valuation. (The valuation and raise, sources tell me, will be much lower.)

That amount is presumably to match its huge consumer growth and revenue explosion. Users now number 800 million — a figure that is likely to hit one billion this year. And revenue, which was reportedly close to $4 billion in 2011, is expected to be higher by another third in 2012.

Facebook will need such oomph if it is to impress investors, although the social networking site’s leadership is still warning that its focus is products over dollars.

In an interview with The Wall Street Journal last week, for example, co-founder and CEO Mark Zuckerberg hedged the point, even as he sang his same familiar strategic tune of the last few years.

“The thing to take away isn’t that we don’t care [about business]. People for years were asking me why aren’t we trying to make more money,” he said. “I would say I’m trying to build a business for the long term and it was clearly the right strategy.”

While admirably I’ll-row-my-way in tone, Zuckerberg needs a public offering heft more than ever, as Facebook’s battles with rivals — most especially Google — escalate.

Just last week, the monocratically-inclined search giant ham-handedly shoved its own social networking service, Google+, into its results, in a move that could severely disadvantage Facebook.

Thus, into the Wall Street breach, to get a giant pile of dough to fight back!

But, unlike Google’s more kookified 2004 IPO, sources said Facebook’s is probably going to hew to a more traditional offering script.

That is likely to include a hefty consortium of irksome investment bankers — think firms like Goldman Sachs and Morgan Stanley on top of the filings, and a spate of smaller ones (Allen & Co.) below, and you have the approximately accurate idea.

And, while shot-caller-in-chief Zuckerberg will be the one key voice in the IPO, the man to watch has been and will be CFO David Ebersman.

The longtime Genentech exec, who came to Facebook in 2009, has been doing all the heavy lifting in preparation for the IPO, said sources, and will continue to do so.

Facebook declined to comment (but I would too, if I were them).

The company’s stock dipped below $9 a share, and by midday, shares had fallen 29 cents to $8.90, nearing its all-time low of $8.75 a share.

Just last month, the largest social games company successfully sold 100 million shares at $10 apiece to raise $1 billion. On its second day of trading, the company’s stock  sank to what for now is its low before settling at $9.02 a share.

Since then, it has been trading fairly consistently, and there was no obvious explanation for today’s sell-off.

If anything the stock should be pushing higher on the release of its latest games. Typically, more games translates to more revenue for the company, which is focused on selling virtual goods in the free-to-play model.

This morning, Zynga announced its newest mobile game, a spinoff from its ultra-popular Words With Friends franchise. The game, called Scramble With Friends, challenges players to connect letters to spell as many words as possible before the clock runs out.

The game closely follows yesterday’s launch of Hidden Chronicles, which is the company’s first Facebook game in the popular “hidden objects” category, where players are challenged to find a number of items within a scattered and cluttered scene.

Still, Wall Street apparently isn’t impressed.

Based on intraday trading, the company’s market valuation dropped to $6.2 billion, about two-thirds of its IPO valuation of $10 billion.

Zynga isn’t the only stock market newbie trading lower today.

Groupon, the other hot Internet IPO of 2011, also sank. The company’s shares were down 90 cents, or almost 5 percent, to trade at $17.89.

Confidence in the stock was still reeling from two reports released this week. One surveyed merchants to find out how satisfied they were after running a deal. The other reported that revenues in November were weaker than expected across the entire daily deals industry.

Yahoo shareholders felt a little giddier earlier this week, when it seemed as if the company had finally decided to make a deal with its Asian partners.

But the happiest crew might end up being the Silicon Valley Internet giant’s outside counsel, Skadden Arps — and especially Leif King, the fantastically named legal eagle who has been advising Yahoo on the deal.

That’s because today the Yahoo board approved continuing the negotiations to come to a final agreement over the stake, sources said, which should take six to eight weeks.

It’ll surely be happy holidays for billable hours!

As costly as the legal bills will be, if it all goes well, an Asian solution will mean one major problem solved, with a possible pile of cash and new assets coming in to Yahoo.

To get there, the company signed a term sheet earlier this week with Japan’s SoftBank to sell back all its holdings there, and with China’s Alibaba Group to sell off more than half its stake (moving from a 40 percent stake to a 15 percent one).

The deal values Yahoo’s total shares in both companies at about $17 billion.

While it gets a pretty accounting name — “cash-rich split “– the vehicle to unwind it all is essentially a complex tax dodge finally cooked up by the trio, in which cash, new assets and stock will be moved around until everyone gets what they want (except the U.S. government).

I would explain it — but I am on vacation, and would rather drink eggnog and sleep — so here is The Wall Street Journal’s version, which I like because it sounds like Alibaba and SoftBank are giving Yahoo a hugely loaded Starbucks card for Christmas:

“As envisioned in the scenario, Alibaba would create a subsidiary into which it would put several billion dollars of cash, plus an operating asset that Yahoo wants to buy using additional cash from Alibaba, almost like giving Yahoo a prepaid card for an asset of its choice, the people said.”

Everyone is hoping there will not be any hiccups in the deal, which has been spearheaded by Yahoo board member and Intuit CEO Brad Smith, and Jerry Yang, who is also the company’s co-founder and a major shareholder.

Alibaba CEO Jack Ma and CFO Joe Tsai, both co-founders of that company, were the point men for the Chinese company. And for SoftBank, it was its founder and CEO Masa Son and his main U.S. exec, Ron Fisher.

Now, said sources, Yahoo’s board is hoping to still keep the bids from a pair of private equity firms — Silver Lake and TPG Capital — alive.

While initially the focus on the action, the PE bidding for partial Yahoo stakes has recently been sidelined by the Asian deal.

Now, sources said, Yahoo is hoping the new infusion of cash and assets will allow it fend off shareholder unrest — stock buybacks and dividends, anyone — to solicit higher prices from the firms to make strategic investments.

Yahoo had considered the initial bids too low, as did some very pissed-off activist shareholders.

Still, it’s not clear if those firms will jack their offers now, although sources said Silver Lake is still interested in some sort of deal that would give it influence over remaking Yahoo.

Silver Lake and others think the long-troubled company could be revived with some effort, and become a much more lucrative Web property.

But those negotiations might run into roadblocks over who gets to pick leadership for the company. Yahoo has accelerated its efforts to hire a new CEO, after firing Carol Bartz in September.

The PE firms, who would buy a large stake in Yahoo, also have wanted some level of control, including CEO and board approval, in order to be able to make massive changes at the company to turn it around.

Wall Street seems to like the Asian part of the deal, at least, since it shows some sort of forward momentum at Yahoo, and from its often-lugubrious board.

Shares are up almost 7 percent in the last few days, although they are not popping as they might be, given that new valuations based on a successful Asian deal put the stock at a much higher price.

In other words, investors like what they see, but are watching and waiting for more.

The company, which was officially spun out of Expedia yesterday, is trading down $1.24, or 4 percent, to $29.01 a share, under the ticker symbol TRIP.

Since Dec. 6, when Expedia shareholders approved the spinoff, the company had been trading temporarily under the symbol TRIPV.

While TripAdvisor’s stock price is lower today, it’s trading higher than Expedia’s, which was up 76 cents, or 2.8 percent, to only $27.61 a share.

The two companies picked a challenging time to conduct a split, with other recent IPOs, like Zynga, also struggling to trade higher. Kayak, a close competitor, has also decided to put its IPO plans on hold, however, that could change if the stocks perform well.

The breakup of Expedia and TripAdvisor creates two distinct companies.

Expedia, based in Bellevue, Wash., will be a travel agency focused on selling airline tickets and hotel and car rentals. TripAdvisor, based in Newton, Mass., will now serve as a travel-reviews site, operating in 27 countries and 19 languages. Without ties to Expedia, it can now solicit the highest referral fees from a number of travel agencies.

Much of the thought process behind the split has to do with what Expedia thinks its business is worth, compared to Wall Street’s valuation, and how much it will be valued on its own.

While Expedia’s travel agency business garners the most attention, it is TripAdvisor that has the bigger growth story.

Now that it is solo, it will be important to watch how its independent valuations evolve.

To celebrate the day, Stephen Kaufer, co-founder and chief executive officer of TripAdvisor, rang Nasdaq’s opening bell this morning — noticeably all by himself, without Expedia executives by his side.

Whatever you want to call him or her — a silver bullet, the cure or, as I like to say, the last unicorn — Yahoo’s ever-seeking and never-deciding board has now renewed its focus on finding a new CEO.

Also on the docket: Working on a deal to sell back at least some of its stake in its twin Asian assets — Yahoo Japan and the Alibaba Group — back to the companies. A partial sale of stock back could placate the often tense situation among the partners.

What is clear is that the two bids from private equity firms are now in an undetermined circling pattern — due to a variety of concerns around shareholder unrest (Occupy Yahoo looms for 2012).

Therefore, the idea of bringing in said fantasy leader to perhaps finally be the one to revive the long-troubled company has returned to the forefront of action, according to numerous sources both inside and outside the company.

The concept in short, said people familiar with the situation: Hire some compelling and entrepreneurial CEO to get the company moving again from a product point of view, do a massive organizational overhaul and help settle Yahoo’s thorny Asian issues.

While a number of names have been rumored in reports — such as Google business lead Nikesh Arora, who is actually not likely to leave his top post at the search giant — sources said the board has been targeting a number of candidates, including Hulu CEO Jason Kilar.

Others on Yahoo’s wish list include Juniper CEO Kevin Johnson and online advertising entrepreneur Brian McAndrews, who sold aQuantive to Microsoft. There are several others also being considered.

Sources said Kilar has met with Yahoo board members about the offer, but his hiring would be a long shot.

It’s an interesting — if complex — gambit to bring in Kilar, who has had his own wrangles with the multi-owner structure of the premium video service over the years.

Kilar’s status at Hulu has been in question ever since it was put on the block, then removed and then — well — who knows.

Hulu’s owners — News Corp., Disney and Providence Equity Partners, along with Comcast (which is a now a passive investor) — did not like the offers it got from various bidders, including Yahoo.

While the media giants have made noises about wanting to keep a stake in distribution, their commitment to that remains unclear.

The situation has put Kilar — who already had tense relations with the service’s shareholders — in limbo until a valuation is determined next year. Without going into the complex details, Kilar has a large equity stake that could be liquid in April, related to certain rights held by Providence.

It is well known that Kilar has been concerned the team that built Hulu gets some sort of payout for their work. In fact, many years ago, Hulu was seen as a possible IPO candidate.

What’s not in question is Kilar’s talent at creating a cohesive team and a compelling product — especially with an advertising and media focus — and the need at Yahoo for a vibrant leader to encourage innovation and discourage its rapidly increasing attrition issues.

The search for a new Yahoo CEO — which is being led by director Patti Hart, and is being conducted by Heidrick & Struggles — had been mostly sidelined until recently, as the board solicited bids for a partial investment from PE firms.

Two emerged, from Silver Lake and TPG Capital, which had wanted to pay from $16.50 to $18 a share for a stake of just under 20 percent in what is called a PIPE (Private Investment in Public Equity) arrangement.

But the low price, and worries about lawsuits and even a proxy fight related to such a deal, have slowed down the momentum significantly, said sources.

Instead, Yahoo has told bidders it will get back to them in the coming weeks about the direction it will take. Thus, the focus on lining up CEO candidates and plans related to reviving Yahoo.

Some of those possible execs have put their hand up, while others — like Kilar — are being solicited. In addition, some still think that Yahoo board member David Kenny remains an internal option, especially if the board of Yahoo gets a refresh, despite his recent announcement that he has no intention of seeking the job.

In general, this shift should not come has a surprise for the hurry-up-and-wait board of Yahoo, which has struggled over the years to make good choices for the Silicon Valley Internet giant.

That drift has resulted in a downturn in its prospects, even as other companies have surged.

Those troubles were brought into sharp focus in a recent report by new Goldman Sachs Internet analyst Heath Terry, who strafed Yahoo in his “sell” recommendation.

Among the gems by an analyst whose investment bank is currently an advisor to Yahoo on its strategic options:

Yahoo simply faces too many competitive and structural headwinds to believe any kind of meaningful turnaround is possible. While there is significant asset value on the balance sheet and in the company’s large, though increasingly less engaged user base, we continue to believe, as we have since before the first Microsoft offer, that the segment of management driving the company is intent on trying to revive Yahoo as a company, regardless of the cost to shareholders.

And, noting the need for a new CEO:

We would become more positive if we felt there was a likely event in the near term that might unlock the value of the balance sheet assets at Yahoo. While we believe the aggregate value of those assets is above the value reflected in YHOO, in order to be more positive on the stock we would need some proof that management is willing and able to take the steps necessary to unlock that value either through a sale or distribution to shareholders. Meanwhile, the declining profitability of the core display advertising business is masked by a search business that continues to lose share and relies on artificial support from Microsoft. We would become more positive on the core Yahoo business if the company is able to find a new CEO capable of focusing the business on its core advertising and communications opportunities, rationalizing costs, and driving growth. This would require user growth and especially engagement improvements in both online and mobile, improving monetization of advertising inventory, and stabilizing its search business.

In other words: Wanted, one unicorn to work magic against increasingly troublesome dragons. Ability to sparkle a plus.

The company sold 100 million shares at $10 a share to raise $1 billion in capital.

After pricing the stock at $10 a share late last night, it jumped in early morning trading to as much as $11.50 a share. But shortly after, Zynga’s shares tumbled, trading as low as $9.

To close below the company’s starting price on its first day of trading is not typical.

Only five out of 22 U.S. Internet IPOs this year closed below their issue price, according to the WSJ, which quoted information from Dealogic.

The lower debut will put pressure on the company to climb higher over the next several months, especially for the sake of employees and investors, who were likely hoping for a big pop.

Earlier this year, the company sold shares to investors for $14, which is roughly 30 percent higher than the $10 price. Employees, who were hired more recently, are rumored to have been issued stock options at even higher prices.

But generally, if Zynga doesn’t do well, it could hurt other social media companies, like Facebook, which is looking to go public next year. Facebook derives a big portion of its revenues from games.

It could also negatively impact the valuation of other social game companies — private or public — that use Zynga as a barometer.

Electronic Arts has invested heavily in social games, making the decision earlier this year to purchase PopCap Games for upwards of $1 billion. It has committed to transitioning much of its revenues from physical console game sales to digital over the next several years.

Electronic Arts’ stock fell 72 cents, or 3.4 percent, in after-hours trading to $20.20 a share.

At $9.50 a share, Zynga’s valuation falls to $6.6 billion, and the shares owned by founder and CEO Mark Pincus slump to $1 billion. At this morning’s opening price of $11 a share, the company was worth as much as $7.6 billion, and Pincus’s stake was worth $1.2 billion.

Still, Zynga is the largest game developer on Facebook by far, registering 50 million daily active users. That’s four times greater than its next biggest competitor, Electronic Arts, and it has many more game launches planned in the not too distant future.

The company celebrated its listing today by hosting the Nasdaq at its San Francisco headquarters, where Pincus rang the opening bell this morning.

The San Francisco social games company is looking to raise as much as $1.15 billion, which would make it the largest IPO from a U.S. Internet company since Google raised $1.7 billion in 2004.

Shares will likely be sold on Thursday, with the company trading under the ticker ZNGA for the first time on Friday. In the meantime, the company is trying to jockey for the best price and the most shares sold.

At a luncheon yesterday with potential investors, CEO Mark Pincus made one of his boldest predictions yet when it comes to how well its games will monetize.

Currently, Zynga has about 227 million monthly active users who play games for free on Facebook, such as FarmVille, CityVille, Zynga Poker and Mafia Wars. But only a small fraction — around 3 percent — pay for additional features, such as decorative items for a farm or new clothes for an avatar.

“We could see that doubling,” said Pincus, according to Reuters.

Doubling? That’s sure to whet investors’ appetites.

But it’s hard to know how the company will accomplish that.

To be sure, Zynga is about to enter one of its biggest growth periods yet and anticipates launching several new games over the next few months.

On one level, more games will likely translate to more players. But will it translate to more players willing to pay?

That seems like a leap of faith.

However, based on documents filed with the Securities & Exchange Commission, we have gleaned that some of Zynga’s growth prospects are guaranteed thanks to the company’s close – albeit complicated – relationship with Facebook.

As one of the conditions of its partnerships, Facebook is obligated to help Zynga meet certain growth targets. In return, Zynga has committed to offering Facebook a number of exclusive game titles.

The specific details of the relationship were redacted in the document, so it’s not clear how aggressive those growth targets are over the five-year life of the contract.

Zynga also has close ties with Google, which has recently launched its own games network. Zynga has already launched several titles there, including CityVille. Following the offering, Google will own 3.8 percent of the company.

Also during yesterday’s lunch, Zynga’s executives were grilled about player retention and churn rates and its growth prospects for mobile.

Among several responses, Pincus joked about how Alec Baldwin was recently kicked off a flight after getting caught playing Words With Friends while still at the gate.

It seemed investors were not as interested in hearing about recent negative reports that Pincus’s hard-charging personality has made it an unfavorable working environment or that some employees were asked to give up their stock options.

Plus, it’s a crowd that Pincus should be comfortable speaking in front of. This will be the second company the Wharton and Harvard Business School grad has taken public.

The company will continue to have meetings today and into next week. So far, reports indicate that the conversations are going well.

Zynga has apparently already received enough orders to cover all the shares being sold in its initial public offering, reports BusinessWeek, which talked to two people with knowledge of the situation. Zynga plans to sell 100 million shares for $8.50 to $10 apiece, which would value the company at as much as $7 billion.

“Let’s go. Yes, let’s go.” [They do not move.]

– Samuel Beckett, “Waiting for Godot”

In Internet terms, the removal of Yahoo CEO Carol Bartz happened a dog’s age ago.

In fact, it was September 6.

Since then, it has felt like a slow slog, especially contrasting the situation with that of another troubled Silicon Valley giant, Hewlett-Packard, which fired its CEO Léo Apotheker and appointed a new one, Meg Whitman on September 22.

Since then, in comparison, the former eBay CEO has been like the Energizer Bunny, making a series of major and often difficult decisions, including: Holding onto its PC unit; reaffirming its controversial deal to buy Autonomy; promising a decision on the fate of its webOS unit within the next two weeks; appointing new execs; and even buying a company.

To be fair, Yahoo did acquire advertising start-up Interclick.

Otherwise, still no sale or investment deal. No new CEO. No Asia resolution. And, perhaps most importantly, no clearly articulated strategy going forward.

It’s not that Yahoo’s leadership isn’t working at it.

Some fervently insist to me that there is a “plan,” as if there is some clever game of Internet Stratego going on that I cannot possibly grok.

Mebbe — but of this I have no doubt: The Yahoo board has indeed been huffing and puffing away, weighing and measuring, considering and debating.

A lot.

Maybe I’m just too impatient. I am (ask my kids).

Or maybe Yahoo’s beleaguered employees are, one of whom just wrote me plaintively, “unreal how they can drag this out,” in what has become a common refrain up and down the ranks.

Or maybe it’s the Asian partners, Alibaba Group and SoftBank, who are antsy and have considered a variety of nuclear options in order to get back stakes Yahoo holds in them. Said one: “The strategy seems to be to frustrate and exhaust us into submission.”

Or, finally, maybe it’s the newly frustrated recent bidders for a partial stake in Yahoo, Silver Lake and TPG Capital. Declared one to me after I warned that Yahoo might, in fact, drag the proceedings out longer than you might expect: “I thought you were kidding.”

Nope, welcome to the Yahoo waiting game, PE guys!

So, to help us all get through it, here’s a quick update primer on what’s what on the various fronts:

Who’s in Charge Here?

Technically, it is the Yahoo board, which is aided by interim CEO Tim Morse.

First, a word about Morse: By all accounts, he is doing a very good job as temporary head honcho — calming the troubled company, making swift decisions about daily operating issues and being a generally nice dude to deal with.

“He’s Yahoo’s no-drama Obama, in comparison to what was happening before,” said one exec, in reference to the more volatile regime under Bartz.

Still, despite his very pleasant all-hands meetings, such as one earlier this week, Morse had previously been Yahoo’s CFO and not an Internet-savvy visionary to give the company inspiration. No insult intended, but he’s the accountant guy.

To be fair, he is not meant to be the visionary, but many at the company are yearning for exactly that.

A role that is now being taken up again by co-founder, former CEO and director Jerry Yang, who dozens of employees tell me is unusually involved in operational details these days for a board member.

I get reports of sightings of him all the livelong day: Jerry in demand-side advertising confab! Jerry chitchatting with entrepreneurs from a possible start-up acquisition! Jerry weighing in on a variety of products. Look, over in the cubicle, it’s Jerry!

This is seen by Yahoo employees as a good thing and also a bad thing, since it’s hard to be running your little divisional show at Yahoo with the dude who invented it all looking over your shoulder, even if he means well. People naturally defer to Yang, the 800-pound Web icon in the room.

But, given the overwhelming state of stasis at Yahoo now — “No one can do anything until we find out how the story ends,” said one staffer — and employees eying the exits, no power at Yahoo really matters but the board.

You know, the board that has gotten the company to this moment of crisis and profound ennui, which is its own particularly ironic irony.

To better understand the power dynamics on the board, above is a little chart for you to peruse to give you an idea of which independent board member is running what key committee.

The only truly important one is the Transactions and Strategic Planning committee, which is headed by Intuit President and CEO Brad Smith and includes former Akamai President (and former Yahoo CEO candidate) David Kenny, top HP exec Vyomesh Joshi and other guy Gary Wilson.

And, in completely visible shadow form, Yang. Multiple sources close to the situation said he has been a key force in the strategery around a possible sale or investment.

This has caused not more than a little tension among board members, but everyone seems to like the much described nicest-man-in-the-room, Smith, and hopes his cool head will prevail.

Another important part of the board is the Nominating and Corporate Governance committee run by Patti Hart, who is energetically and simultaneously — if pointlessly — in search of a capable new Yahoo CEO.

Or, as I like to call this mythical person: The Unicorn.

The Deal

As I and many others have previously reported, there are bids on the table for partial investments in Yahoo by two very powerful private equity firms, Silver Lake and TPG Capital.

It’s a PE rumble, with a side of Microsoft financial backing! (I think Silver Lake’s Egon Durban makes a very nice Riff, while Microsoft’s Steve Ballmer is the perfect Officer Krupke.)

My fervent wishes for some figurative and dance-accompanied knife-play aside, the bids are essentially the same in general and different in particular. Silver Lake is offering about $16.50 a share, while TPG is dangling a tiny bit more. Silver Lake has power entrepreneur and VC Marc Andreessen on its side, while TPG is trying to get Silicon Valley fave investor and start-up whisperer Reid Hoffman of Greylock Partners and LinkedIn on its team. Both have ideas on CEOs, strategy and what to do about the Asian assets.

This type of deal could happen suddenly and you’ll hear about it quick, since the losing side will immediately trash it to the media.

As you might expect, each director has their favorite PE firm, with some not liking Andreessen, some thinking the TPG bid is a little light, some for a whole-company deal and some wanting Yahoo to hire its own CEO and run the place itself.

Of course, the last one shows a disturbing level of denial and should be a nonstarter, given the board’s abysmal record on CEO choice and its riding of Yahoo to this sad point in its storied history.

Here’s what to expect on the PE front: A lot of wrangling behind the scenes with frequent leaks to the media about what each side wants and will not yield on.

CEO choice or no CEO choice, that is the question!

Also a big factor are Yahoo’s major shareholders, few of whom like the partial investment deal, which is known as a PIPE (Private Investment in Public Equity), because of the insiderness of it all and because they prefer a whole-company sale at a higher price.

There is also pressure from activist shareholders like Daniel Loeb of Third Point, who has attacked Yang and others on the board and is ready to pounce with a proxy fight if Yahoo tries to override shareholders too egregiously. And, of course, the inevitable lawsuits over any arrangement that seems to block a whole-company bid.

That said, such a mega-deal seems unlikely, since it is too pricey and despite a lot of noise that Yahoo’s Asian partners were ready to strike with a takeover in order to get back Yahoo’s big stakes in their companies.

That’s kind of like buying a store to get back the cool pair of shoes you sold, but bankers love to scheme up this stuff. While it certainly could happen, it would be a bear of a deal.

Perhaps more like Yogi Bear, hopelessly angling for a tasty pic-a-nik basket — but grrrr anyway.

But perhaps the biggest factor in all of this mishegas is time. There is none on a lot of levels, most especially the increasing level of brain drain and drift at Yahoo. After the New Year dawns, this is going to spin right out of control and amount to the biggest internal challenge Yahoo faces.

An Asian Solution

As I and others have reported, Yahoo is entertaining yet another proposal to sell all or part of its Asian assets back to the companies, which make up a bulk of its market valuation.

The relationship between Yahoo and its Asian partners has long been fraught, and today the difficulty of reaching an agreement remains a vexing issue. That’s because it is hard and complex and because no one wants to do what the other side wants.

I am no tax attorney, but it seems as if Yahoo will ultimately come to some deal with China’s Alibaba and Japan’s SoftBank, which could include big investors like Russia’s DST Global.

And, as I reported last week, the Asian partners want to strike a deal with the current board rather than lose leverage with a much cannier new owner.

It’s a tough decision in all aspects to strike, but would remove the focus on the fact that Yahoo’s most valuable asset is something it is not running and simply holds due to a good stock trade in years past.

Years past should be the operative thought here, since the Asian assets have nothing to do with what Yahoo needs to do with its core U.S. and global brand.

You know, the thing that allowed them to buy those lucrative Asian assets in the first place?

Strategery

And that’s the crux of all this, isn’t it? Yahoo needs a new strategy and fast.

Or it needs to clarify and hone its current strategies around advertising and media and define itself once and for all. While it often touts itself as a premier digital media company, it’s still not clear exactly what Yahoo is saying by that.

In fact, incredibly, sources told me that the board was still wrangling over the tired issue of what Yahoo is at its most recent meeting — essentially, is it a products company or a media company?

If I had to listen to that who-am-I-anyway debate again, I think I would scream, given how many important Web trends that Yahoo has whiffed in recent years, many of which were right in its own wheelhouse.

How much damage this has caused to Yahoo’s core business is a critical one to determine, with many feeling the situation is too far gone to revive it and others confident that this is simply an issue of poor execution.

I am in the middle on this one, but all the indicators of Yahoo’s business have long been heading in the wrong direction, and results in the next quarter are expected to underline this even more.

Thus, the board’s navel-gazing at this point is untoward, considering that it is presiding over the possibility of a sale that should not have had to happen in the first place. While it is not quite a fire sale, it’s no cause for celebration at all the attention, either.

In fact, it’s also pointless, since — if this all resolves as it should — the current Yahoo board will not be the one determining the company’s future any longer. Remember that: This group should and will be gone for the most part.

Yahoo shareholders and employees can hope, at least.

Then, it will be up to the next group of leaders to make the very hard choices — including what are likely to be massive layoffs and radical surgery on its offerings — for what’s to come next.

In the end, that is all that will matter. Until then, as usual, you’ll have to sit tight.

However, including options the valuation target jumps to $9 billion. That is roughly 7.5 times this year’s revenue. Yes, Zynga is profitable, unlike other tech IPOs. But not hugely — net profit was just $30 million the first nine months of 2011.

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Earlier this morning, Zynga announced it would price its stock between $8.50 and $10 a share when it goes public later this month.

That’s at the high end of the range that values the four-year-old company at as much as $7 billion. But that’s much lower than than what some investors paid as recently as February, according to documents filed with the Securities & Exchange Commission.

In fact, some of its investors are already underwater.

One of those investors is Morgan Stanley, which is also one of the company’s underwriters in its IPO. In February, 11 mutual funds associated with Morgan Stanley purchased 5.3 million shares at $14 apiece for a total of $75 million. Four other investors, which were unnamed, also contributed to the round totaling $490 million, according to the document.

At $14 a share, the company’s value in February totaled nearly $10 billion, or roughly 43 percent greater than today’s high-end of the range.

Zynga justified the higher stock price back in February, stating that the U.S. economy had improved and that the public markets were being receptive to Internet stocks, including generous valuations for privately held companies such as Facebook and Groupon.

Furthermore, in March, the company used that valuation as a guide to purchase shares back from five of its early investors and its CEO Mark Pincus at $13.96 a share.

While the market conditions have likely changed since then, it’s important to note that things are still in flux. If the company drums up enough demand for the 115 million shares being sold over the next two weeks, the price could move even higher.

As Kara Swisher previously reported, Pincus will not sell any shares in the offering, and no other executives at Zynga have plans to sell stock, either.

But a number of the company’s early investors will be cashing in. Institutional Venture Partners, Avalon Ventures and Foundry Venture Capital will sell 2.5 million shares apiece for up to $25 million each. Union Square Ventures will sell 2.2 million for roughly $22 million.  Google and Silver Lake Partners will also both sell 1.7 million shares for a proceed of $17 million each.

Google was originally not listed as an investor when Zynga filed documents with the SEC to go public, but it showed up in subsequent filings. Google, which was rumored to have invested as much as $100 million in Zynga, has an interest in social gaming because of its Google+ network. Following the offering, it will continue to own 21 million shares, or about 3.8 percent of the company.

One notable shareholder that won’t be selling shares is venture capital firm Kleiner Perkins Caufield & Byers, an early investor in the company. Its partner Bing Gordon, who personally owns a 10.7 percent stake in the company, also does not plan to sell any shares.

The four-year-old social games company revealed this morning that it is seeking to raise $850 million to $1.15 billion in its initial public offering.

In a presentation posted online, Pincus explains why Zynga’s approach to developing games such as FarmVille, CityVille, Poker, Empires & Allies and Words With Friends is a massive opportunity moving forward.

In the video, the executive, who can normally be found in jeans and a T-shirt, is wearing a suit jacket with a button-down shirt; he doesn’t bother with a tie.

From the 30-minute presentation, here are Pincus’s Top 5 reasons why investors should be excited about Zynga:

1. The idea of play is a core Internet activity and fastest-growing on mobile. Zynga is to play what Google is to search, Amazon is to shop and Facebook is to share.
2. Zynga is the leader in play.
3. The company’s platform can scale as it grows.
4. It’s a profitable business model.
5. Zynga has made an unmatched investment in the space.

Even though Pincus looks a little stiff, this is the topic he’s most comfortable discussing. Not to mention that this process should be somewhat familiar to the Wharton and Harvard Business School grad, who took his service- and support-automation software company Support.com public 11 years ago.

The company filed documents with the Securities & Exchange Commission this morning, indicating that it intends to raise between $850 million and $1.15 billion in its public offering.

At the high end of the range, that would translate to roughly $150 million more than it had previously estimated it could raise.

The company is seeking to sell 100 million shares at $8.50 to $10 a share and will reserve 15 million additional shares for extra demand. It expects to trade on the Nasdaq under the ticker ZNGA.

Under the best circumstances, the company will be valued at nearly $7 billion based on 699.3 million shares outstanding. That falls below some of the rumored expectations that have been floating around over the past few weeks.

Still, at that value, it will come close to the public valuation of Electronic Arts, which hovers around $7.8 billion, but falls short of other game publishers, like Activision, which has a value of  $14 billion.

Zynga has made its riches off selling virtual goods in social games on Facebook. Some of its most recognizable titles include FarmVille, CityVille, Poker and Words With Friends.

Virtual goods often allow players to continue to play the game and level-up faster, such as an energy boost. They also can be decorative in nature, like an outfit for an avatar or seeds to plant on a farm. Of the roughly 230 million monthly active users, very few players ever bother making a purchase.

Since the beginning, the company has a very close relationship with Facebook, which has been contentious at times, especially since the platform started collecting a 30 percent tax on all virtual goods sold. More recently, the company has tried to expand to other platforms, including the launch of several games on mobile and Google+. It also has its own online game network in production.

The company’s IPO will be one of the largest tech offerings in recent memory.

In early November, Groupon raised $700 million including overallotments. It had originally sought to raise $750 million. Other recent tech IPOs include Angie’s List, Pandora and LinkedIn.

But some critics think Zynga is rushing its offering before a broad financial collapse. If it waited until reporting fourth-quarter results, it could paint a stronger growth story as it completes the busy holiday period.

The San Francisco company, which was founded in 2007, was named after Founder and CEO Mark Pincus’s dog named Zinga.

In 2010, Zynga recorded a profit of $27.9 million on revenues of $597.5 million. In the first nine months of 2011, it broke even on revenues of $828.9 million.

While its revenues continue to grow, the number of daily active users that play its games has fallen two quarters in a row and some critics question whether the company can keep up its aggressive growth.

In recent weeks, Pincus has come under harsh criticism for his heavy-handed leadership approach. But to his credit, he has overseen rapid growth, including the acquisition of dozens of smaller game studios. Today, his company has 2,500 employees.

At the mid-range of its expectations, Zynga will bring home proceeds of $889.4 million after selling shareholders take their winnings.

The primary purpose of the sale is to increase its visibility in the marketplace and create a market for its stock. Proceeds will go towards working capital, but also $83.6 million will be spent to satisfy tax withholding obligations related to stock of current and former employees. Additionally, it plans to use a portion of the proceeds for charitable causes through its Zynga.org initiative.

As part of the sale, the company will have three classes of shares. Class A stock will have one vote per share; Class B stock will have seven votes; and Class C will have 70 votes.

Pincus owns some Class B shares, and all of the company’s Class C shares. Following the offering, he will control 36.2 percent of the company’s voting power.

As Kara Swisher previously reported Pincus will not sell any shares in the offering.

No other executives have plans to sell stock, either. But a number of the company’s early investors will sell stock, including Institutional Venture Partners, Union Square Ventures, Foundry Venture Capital and Avalon Ventures. Other interesting names that made the list include Google, which will sell 1.7 million shares.

The company’s largest institutional holder, venture capital firm Kleiner Perkins Caufield & Byers, which owns 11 percent of the shares, will not sell any of its stock in the offering either.

KlickNation, which has been developing free role-playing games on Facebook for the past two years, will join EA’s BioWare label to create a new social division called BioWare Social.

The unit will be based in Sacramento, but will work closely with some of EA’s existing employees in San Francisco. BioWare Social will be led by KlickNation’s CEO Mark Otero.

BioWare is best known for creating such role-playing hits as Mass Effect and Dragon Age, and is currently preparing to launch the highly anticipated Star Wars: The Old Republic.

Prior to this acquisition, Electronic Arts had made two other significant purchases to bolster its social gaming business, acquiring PopCap for $750 million earlier this year; and Playfish for $400 million, back in 2009.

In comparison to the other acquisitions, the purchase of KlickNation is relatively small. The company’s biggest game on Facebook, Age of Champions, only registers 140,000 monthly active users, and Electronic Arts didn’t even bother disclosing the terms of the deal.

But right now the industry is in a talent war, with the leading social games company, Zynga, gobbling up many of the smaller social games studios across the country.

Electronic Arts is currently the second-largest game developer on Facebook after Zynga, with its most popular game, The Sims Social, attracting 30 million monthly active users.

Still, the Sims game has failed to top two of Zynga’s most popular games, CityVille and FarmVille.

Electronic Arts has made it abundantly clear that it intends to challenge Zynga’s dominance in social gaming. If successful, EA may have a chance to win back some of the attention Zynga has been stealing away from it.

It just may not happen fast enough. Zynga is heading out on its road show next week to convince investors to pony up for its initial public offering.

As part of its pitch, Zynga is seeking a $10 billion valuation in its IPO, according to Reuters; that would be higher than Electronic Arts’ current public valuation of $7.8 billion.

It is asking for a higher valuation despite Electronic Arts recording 10 times greater revenue, compared to Zynga, in the three-month period ended Sept. 30. Electronic Arts reported revenue of of $3.8 billion; Zynga reported revenue of $300 million.

Last night, Yahoo’s board gathered for a pre-meeting dinner, a precursor to a day-long meeting today to weigh several bids from private equity firms to buy part of the Silicon Valley Internet giant, including Silver Lake and TPG Capital.

Among the thorniest of issues will be the low price that the firms want to pay for a 19.9 percent stake in the company. Silver Lake has offered $16.50 and TPG a dollar more.

In the past year, Yahoo share prices have seen a low of $11.09 and a high of almost $19. It closed yesterday at $15.70 — a price that is mostly due to sale rumors — making the offers not much of a gain on current market valuation.

The transaction type being contemplated is called a PIPE — or a Private Investment in Public Equity — with the investment below 20 percent, which allows Yahoo to avoid a shareholder vote on the issue.

While the Yahoo board had hoped for bids above $20, they are not expected to be forthcoming, considering the weakness in its business over recent years and the difficulty of returning it to health and growth.

Results in its upcoming quarter, for example, are expected to be weak again, with trouble in its advertising business, largely due to uncertainty around the business.

The low price, along with the attempt to bypass shareholder approval, is sure to infuriate Yahoo’s major investors, given they have watched the value of their stakes wilt over the years under current board management.

In the last five years, due to continually muddled leadership and the missing of key Internet trends, Yahoo shares have dropped 44 percent in value, which compares with huge gains from companies like Amazon and others.

Major Yahoo stakeholders are already irked by the PIPE idea itself, which could transfer power to private equity firms at preferential terms.

Another possible bone of contention will be the preservation of at least some parts of Yahoo’s current board.

Under a plan by Silver Lake, for example, it would get three board seats, as well as another one for a CEO of its choosing. Another seat will go to Yahoo co-founder and current board member Jerry Yang. There will be six independent board members, but it is not clear if they would be new or include some current directors.

One of the Silver Lake choices would be well-known Silicon Valley legend Marc Andreessen, who is now a powerful VC. The appeal of Andreessen is important to some major shareholders who have turned sour on Yang.

Who will be CEO of the rejiggered entity will also be discussed at the meeting. Sources said Silver Lake and TPG have definite candidates in mind and Yahoo has also been conducting an official search.

In other words, there’s a lot on the plate of Yahoo’s board today, which also needs to revisit continued proposals from its Asian partners — China’s Alibaba Group and SoftBank of Japan — to sell back its stakes in Alibaba and Yahoo Japan in various tax-free schemes.

Sources said Yahoo — which has thus far rejected such efforts — might now consider selling a part of their shares back, up to half. This would allow the company to give a cash dividend to its disgruntled shareholders.

If thwarted, as has been previously reported ad nauseum, Alibaba and SoftBank are considering their own bid with the help of other U.S. private equity firms, such as Blackstone.

Other PE firms — especially ones who have not signed Yahoo’s non-disclosure agreement related to any deal — are also hanging under the hoop, so to speak, to see what happens. At least one firm hopes the Yahoo board will reject the low-priced partial bids, leaving the court wide open again.

“It’s still anyone’s game,” said one possible bidder.

Except for Yahoo’s put-upon employees and shareholders, this is anything but fun. More on that soon.

About eight million LinkedIn shares came to market Thursday, with 1.3 million coming from the company and 6.7 million from insiders and early holders. The secondary offering, which followed the company’s successful debut in May, roughly doubled the company’s float, or the number of its shares available for trading.

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In a new filing with the Securities and Exchange Commission concerning its upcoming IPO, Zynga is expected to unveil two key management and board changes at the online gaming phenom:

Chief Business Officer Owen Van Natta — who came to the San Francisco-based start-up several years ago to help CEO Mark Pincus grow it and develop it — will step down from his job and become a strategic adviser focusing on major partnerships. He’ll still remain board member at Zynga, but will give up millions of pre-IPO shares by moving out of his operational role.

And director and venture investor Brad Feld will leave the the board, which VCs sometime do as companies move to a public offering and add members with more specific business experience.

In his place, longtime entrepreneur and investor Sunil Paul, who founded a company called FreeLoader with Pincus many moons ago, will join the board.

Zynga confirmed the changes to me in a statement by Pincus:

“Owen is a valuable business partner. He’s made great contributions to Zynga and continues to be an important part of our team.”

Sources said the changes related to Van Natta around are not part of a recent controversy around a Wall Street Journal story about clawing back of some share options grants of early Zynga employees who had become less involved in the company. While the company cannot actually take back already vested shares owned by those staffers, the article has put a lot of scrutiny on Zynga and raised questions about how to cope with the kind of hyper-growth some Internet firms experience.

That’s certainly been the kind of rocket ride Zynga has been on, as it has grown from a small social gaming company on Facebook to a high-profile public company.

Zynga is in the final stages of its IPO process, answering questions from the SEC that are typical. If all goes well, Zynga execs are expected to go on a road show after the Thanksgiving and go public by the end of the year at a market valuation of close to $20 billion.

That was different from when Van Natta officially got to Zynga in the spring of last year — after a rocky experience running the doomed Myspace. At the time, he told me at the time that planned to be focused on scaling the business and did not consider himself a long-term operating executive.

Since then, he has helped Pincus hire a series of experienced gaming execs, including a chief operating officer, a chief marketing officer and others.

Zynga was Van Natta’s third high-profile Web company in recent years. He was a top early exec for Mark Zuckerberg at Facebook until early 2008, and in 2009 he took over News Corp.’s (NWS) MySpace, a job that lasted less than a year.

Early in his career, Van Natta was also was a top strategy, marketing and deal exec for Amazon, which bought an early social networking start-up called PlanetAll that he worked at.

It will now be interesting to see what Van Natta does next, but it is unlikely he will take a permanent position. He is a longtime angel investor in Silicon Valley, including in hot start-ups such as Asana and still holds a significant stake in Facebook.

But, in moving out of his job at Zynga, he will be giving up many millions of shares of a rich trove he was given when he arrived at the company. That said, Van Natta already owns millions of accelerated vested shares and will get another large grant as a board member.

Translation: Don’t cry for Mr. Van Natta, Silicon Valley — he made $42 million last year from Zynga shares alone.

Just last week, it seemed as if the dangerous riptide had finally turned for Demand Media, the social content company whose stock for the quarter bottomed out in mid-October, in the $5-a-share range.

It has now rebounded to close Friday at $7.76, with a market valuation of just over $651 million — still a far cry from a high of over $27 a share in the last year, but well below the target price of upward of $14 from Wall Street analysts.

That’s why there will be plenty of questions for CEO Richard Rosenblatt in a conference call scheduled for after the Santa Monica, Calif.-based Demand reports its third-quarter earnings, following the close of markets this afternoon.

Analysts are expecting Demand to lose four to six cents a share. Revenue is expected to be up.

One issue sure to be on the docket will be the traffic problems at its flagship eHow site, which stymied Demand in the quarter. The situation caused it to release a statement about the issue, “which the Company believes is temporary and was the result of an internal technical issue. The technical issue has recently been remediated.”

Assume you will hear more on that and other topics, including updates on the cost of its content and the continued impact on Demand of search-algorithm changes at Google, as well as how it is faring in attracting more lucrative advertising.

I will be covering the earnings and the analyst call, so tune in later today for answers.

Groupon has priced its public offering at $20 a share, several dollars above the expected price range of $16 to $18. That will garner $700 million for the start-up, which is only several years old, at a valuation of close to $13 billion.

The offering for the Chicago-based daily deals site — which has had a controversial IPO process — was well upwards of 10 times oversubscribed, meaning there was a lot more demand than supply of its stock.

To alleviate the difference, Groupon has apparently added five million more shares to its offering, totaling 35 million shares sold.

Groupon has endured an unusual amount of criticism over a variety of issues — including accounting treatments, executive turmoil and growth prospects. But investors did not seem to mind all the noise and clamored to get into a possibly lucrative IPO.

The relatively small float of shares — about six percent of total — and that intense interest allowed Groupon to cherry pick its new shareholders.

It will be interesting to see if, as it endured loud critics when it was private, if short sellers will pile onto the social buying company now that it is public.

Executives from Groupon, including its CEO Andrew Mason (who has seemed to have gotten a nice haircut and suit for occasion), have been hawking the company — which sells an assortment of discounted services from a variety of local merchants — to investors all over the country over the last several weeks.

The company is set to go public tomorrow under the GRPN ticker on the NASDAQ.

Gogobot, the social travel site, said it has raised $15 million in a funding round led by Redpoint Ventures.

Sources said the valuation for the Silicon Valley start-up was around $70 million.

Gogobot said it would use the funds to expand its business. Battery Ventures and CrunchFund also participated in the financing round. Currently, the company’s revenue is mostly tied to lead generation based on its user recommendations.

“We really think we have a lot of momentum in the space and we want to keeping pressing forward in pushing social travel,” said Gogobot CEO and co-founder Travis Katz. “Travelers want to share their experiences and it is a trend that is only getting larger.”

To compete with rivals such as TripAdvisor, Gogobot recently released a number of new features, such as an Apple iPhone app and Trip Portfolio, a scrapbook experience via collections about different destinations.

The company, which launched late last year, has raised $4 million in venture funding from Battery Ventures, Google Chairman Eric Schmidt’s Innovation Endeavors and angel investors Chris DeWolfe, Keith Rabois and Oren Ze’ev.

Here is a video interview I did with Katz last year, talking about the site, followed by the official press release:

Gogobot Announces $15 Million in Funding Led by Redpoint Ventures

SAN FRANCISCO, CA (November 3, 2011) – Gogobot (www.Gogobot.com), the world’s largest social travel site, announced today that it has completed a $15 million round of funding led by Redpoint Ventures. Gogobot will use this new financing to expand its global footprint through marketing, partnerships, and outreach.

Gogobot transforms how we explore new places and capture and share our travel experiences by allowing users to harness the power of their social networks to exchange trusted travel advice and share trip plans and rich visual travel memories. This announcement comes on the heels of the launch of Gogobot’s mobile app available for the iPhone, iPad and iPod Touch, which is currently a Top 10 Travel App in 31 countries around the world.

“With its unique offering and seasoned management team, Gogobot is the industry leader in the social travel space. We believe with its vision and timely and unique service, Gogobot is poised for exceptional growth,” said Satish Dharmaraj, general partner of Redpoint Ventures.

Gogobot users can browse reviews from friends as well as share their photos, reviews and other details about the places they stayed, dined, and traveled on the Gogobot site. Gogobot automatically packages these elements into magazine-style albums, allowing friends to experience your travels with you in real time, see a map of where you were when you caught that sunset, or even make a reservation at the hotel where you stayed.

“Travel is all about discovering new experiences and sharing them with your friends and family,” said Travis Katz, Gogobot co-founder and CEO. “With this new funding, Gogobot aims to continue to grow and pave the way for a new era of travel — harnessing social media to provide users with trusted, insightful, and enriching reviews at the tip of your finger.”

Battery Ventures and CrunchFund also participated in the financing round.

]]> http://allthingsd.com/20111103/first-class-ticket-time-social-travel-start-up-gogobot-raises-15-million-in-funding/feed/ 0 http://allthingsd.com/20111028/news-reader-traffic-jam-yahoos-livestand-and-googles-propeller-set-to-launch-aiming-at-flipboard/ http://allthingsd.com/20111028/news-reader-traffic-jam-yahoos-livestand-and-googles-propeller-set-to-launch-aiming-at-flipboard/#comments Fri, 28 Oct 2011 12:35:03 +0000 Kara Swisher http://allthingsd.com/?p=137646

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Yahoo and Google PR declined comment.

Here is the Livestand demo video from February:

]]> http://allthingsd.com/20111028/news-reader-traffic-jam-yahoos-livestand-and-googles-propeller-set-to-launch-aiming-at-flipboard/feed/ 0 http://allthingsd.com/20111021/groupon-to-raise-up-to-540-million-at-11-4-billion-valuation/ http://allthingsd.com/20111021/groupon-to-raise-up-to-540-million-at-11-4-billion-valuation/#comments Fri, 21 Oct 2011 10:28:34 +0000 Tricia Duryee http://allthingsd.com/?p=135466 Groupon has filed an early-morning surprise, putting to rest speculation about its IPO. It is on, albeit at a slightly lower valuation than originally expected.

It intends to raise $480 million to $540 million in the public markets, setting a valuation range between $10.1 billion and $11.4 billion. Here’s the entire document Groupon shared with Wall Street investors while on its road show.

In addition, the daily deals giant released third-quarter results today, which included improved numbers and a profit in North America.

It will trade on the Nasdaq exchange under the ticker “GRPN.”

The company said it plans to sell 30 million shares at $16 to $18 apiece, which will raise about half of the original $750 million it had intended to raise when it filed for the IPO back in June.

There will be an over-allotment of 4.5 million shares. In all, the company will end up selling nearly 5 percent of its Class A common stock before the allotment.

Since the company’s original filing, the Chicago-based darling has gone through the wringer. Updated amendments led to questions about the company’s strength, or whether it could sustain a profitable business over the long term. Additionally, a number of top-level executives have left the company under the watch of Groupon’s CEO Andrew Mason.

Some of those concerns will be muted, given the company’s financial performance in the quarter ended Sept. 30. In that period, it helped to demonstrate it can scale back its marketing costs and still grow.

Q3 revenues increased 426 percent year over year and 9.6 percent sequentially to $430.2 million. The company’s third-quarter net loss totaled $10.6 million, narrowed substantially from the prior quarter and year-ago period when it lost $101.2 million and $49 million, respectively.

Contributing to improved results was a profit in North America of $18.8 million, reversing a loss of $10.5 million in the second quarter. This is primarily due to a decrease in marketing expenses while still maintaining customer growth, which resulted in higher revenue.

The international markets had similar improvements; however, Groupon continued to invest heavily in countries such as South Korea, Australia and Japan, which adversely affected results. A bulk of the company’s revenues, or about 64 percent, occur in North America.

Critics skeptical that Groupon would have a hard time swapping losses for growth definitely have something to think about.

It now has $244 million cash on hand, up 8 percent since the prior quarter, and 255 percent since last year.

Groupon said in the filing that it plans to use the money to increase revenues by expanding domestically and internationally through gaining new subscribers and investing in technology.

]]> http://allthingsd.com/20111021/groupon-to-raise-up-to-540-million-at-11-4-billion-valuation/feed/ 0 http://allthingsd.com/20111019/dave-goldberg-sukhinder-singh-cassidy-brian-chesky/ http://allthingsd.com/20111019/dave-goldberg-sukhinder-singh-cassidy-brian-chesky/#comments Thu, 20 Oct 2011 05:52:02 +0000 John Paczkowski http://allthingsd.com/?p=133873 If you don’t want to call it a “bubble,” that’s up to you. But it’s clear that what’s happening in Silicon Valley is different from what’s happening just about everywhere else: The optimism of the start-up economy seems endless, and investors will throw money at new companies just as quickly as they’re founded.

Three of the area’s most interesting entrepreneurs join us to share their take on the Valley’s culture and commerce, and how they’re trying to export that as they venture into Asian markets.

Dave Goldberg had already built a successful company — Launch — before selling it to Yahoo; now he’s trying for a second act with SurveyMonkey’s very profitable self-serve surveys. Sukhinder Singh Cassidy traded a high-flying job at Google for a chance to build her own company at Joyus, a new take on e-commerce. And Brian Chesky’s Airbnb has become one of the era’s iconic success stories: the vacation rental service seems to have moved from concept to billion-dollar hit overnight.

1:52 pm: Peter Kafka takes the stage followed by SurveyMonkey’s Dave Goldberg, Joyus’s Sukhinder Singh Cassidy and Airbnb’s Brian Chesky.

“This is relaxing because I don’t have to ask you whether you’re buying or selling Yahoo,” Peter quips.

1:53 pm: A first question about the bubble in Silicon Valley: Why are so many people throwing money at companies like the ones you people run? Are you aware that what’s going on in Silicon Valley doesn’t really look like the rest of the world?

Airbnb’s Brian Chesky’s fields this one, but answers it with a pitch for Airbnb.

Peter circles back and puts the question to him again.

Another non-answer from Chesky.

1:57 pm: Peter moves on to Joyus’s Sukhinder Singh Cassidy who seems more willing to answer the question at hand.

“There is a tremendous amount of revenue traction against companies who are getting premium valuations,” she says. “Look at Groupon, Zynga … their revenue traction is real. People are spending money on those services … But what’s most interesting is that when you have that many companies innovating and growing, you end up with a talent war and what you really see is a bubble around talent. That’s more what concerns me. I don’t look around and say wow, people who are non-substantive are getting funded, I look around and say wow, I’m competing for talent with Google and Facebook.”

2:00 pm: SurveyMonkey’s Dave Goldberg jumps in. “I think the difference with companies being created now is that not only are they getting revenue traction very quickly, but they have great margin structures. So they will be quite profitable, when they choose to be. … A lot of the the valuations are real. I think people are going to be surprised by how many big businesses are being created right now.”

2:03 pm: Sukhinder Singh Cassidy: “If there is a lot of capital available, you do want to take it and you take more than you need. But the rate at which you spend it is a fundamentally different question. … the glory of a high valuation is a means to an end. It’s more about saving for a rainy day.”

2:05 pm: Question for Airbnb’s Brian Chesky: Is anyone counseling you to scale back your rounds?

Chesky says no. Talks a bit about investing ahead of growth.

Peter circles back, “What do you use the money for?”

Chesky explains that Airbnb is opening lots of local offices around the world. The company is also investing quite a bit in product and in marketing as well.

2:07 pm: In the first bubble, the idea was to go public. That phenomenon doesn’t exist anymore. Does the fact that there really isn’t an IPO window anymore affect your planning?

Goldberg: “If you’re building a long-term business, you don’t really need to worry about the IPO window. People are building businesses that don’t need to go public. It’s a huge headache to run a public company. I think a lot of people could go public today, but they’re choosing not to.”

2:09 pm: Do you think we’ll see a boom in start-ups in Asia, or do you think there’s something special about Silicon Valley?

Chesky believes we will. He notes that there are start-up cultures emerging abroad, in Berlin for example.

Sukhinder Singh Cassidy says she sees huge pockets of innovation in lots of emerging markets. But she notes that many of the entrepreneurs in those markets got their “sea legs” in Silicon Valley.

“What I see now is people who’ve lived in the Valley moving back to these emerging markets and bringing their experiences back with them,” she says.

2:16 pm: Can a guy in a garage still build a successful company?

Sukhinder Singh Cassidy: “I think there is always that possibility. If you’re smart enough, you can make it happen.”

2:19 pm: On to the Q&A …

2:19 pm: Question for Chesky: Can you extend your business model into other categories?

Absolutely, says Chesky. He talks a bit about how Airbnb has already expanded to more categories (whole-home rentals, sublets, boats, cars etc.).

Chesky’s next vertical? He won’t say. “We’re going to take cues from the community.”

2:24 pm: How do you bring your success in Silicon Valley to Asia?

Goldberg says it’s all about talent: It’s hard to hire people locally and it’s even harder to hire them abroad. So really, you need to tap into the entrepreneurs around you. … It’s a real challenge in places like China. It’s definitely not easy.

2:30 pm: That’s it. Up next, a demo from Kibot.

Silicon Valley’s Entrepreneurs

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