In a move that AllThingsD had previously reported was coming, Yahoo said it had laid off 2,000 employees, or 14 percent of the workforce.

“Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require,” said Yahoo CEO Scott Thompson in a statement. “Unfortunately, reaching that goal requires the tough decision to eliminate positions.”

While Yahoo has had periodic layoffs over the years, this one is its most significant in its history, and will also result in another large-scale restructuring of the management organization. More cuts are also likely to follow in the months ahead, due to the reshaping of Yahoo.

The latest employee action is being pushed by Thompson, who joined the Silicon Valley Internet giant in January from eBay’s PayPal unit.

“Change is never easy,” he wrote in an internal email to Yahoo employees (it is below in its entirety), in a well-worn cliché I am dead certain few appreciated hearing today from the top leader.

At an internal meeting with top staff last night, Thompson — who has gotten what seems to be a well-deserved reputation for chewing folks out at Yahoo — was more direct with the execs gathered, berating them extensively for not delivering and getting the company to this sorry point.

Ouch, Scott! It’s Easter, so it might be time for some forgiveness. (And no more ranting about my reporting to those inside Yahoo, since I have been 100 percent accurate so far. FYI, will aim for 110 percent next week!)

Yahoo said it will save about $375 million with the cuts, incurring a $125 to $145 million pretax cash charge for employee severance in its second quarter. Before the cuts, Yahoo had 14,000 staffers and has many thousands more hired as contractors.

The layoffs touch all units of the company, but the hardest hit is the product division, which is headed by Blake Irving, as well as its marketing, research and international units. Yahoo gave no details on the layoffs other than the number.

But the fate of two key parts of the soon-to-be-blown-apart unit — Yahoo’s advertising technology businesses, Right Media and APT, and its search business — is still being contemplated, as I have previously reported. Possible scenarios include a sale or a joint venture transaction for both, which employ thousands of Yahoo staffers.

The layoffs tomorrow are not the end of the road in cutting costs. Along with the likely shedding of its ad tech and search businesses, Yahoo leadership is also looking at future cuts as it evaluates current businesses, which could lop even more employees off its roster.

That said, Yahoo will be doubling down in some older and new arenas, so there would also be simultaneous hiring in the months ahead.

As wrenching as they will be today at Yahoo, the layoffs come as no surprise. Thompson had told employees in memos and also in recent meetings that “real change” was coming to the company.

Along with the trauma of the layoffs, Yahoo is also facing two other tense face-offs externally. In one, activist shareholder Third Point is waging a proxy fight for board seats and stepped up the public pressure this week; and Facebook struck back hard at Yahoo’s patent lawsuit with a counterclaim of its own.

After the layoffs tomorrow, sources say Yahoo will be announcing a new organization by next week. Thompson, along with outside consultants he has hired from the Boston Consulting Group, are making what appear to be profound changes.

Sources said that Yahoo will most likely be comprised of a global media division, one that encompasses Yahoo’s consumer products businesses and one focused on global and regional sales. There could also be a small organization of about 50 employees aimed at future innovation.

Americas head Ross Levinsohn is pegged to run the media arm, which will also include its leads/commerce businesses, such as autos; Shashi Seth — who now heads search and marketplaces — is likely to run consumer products, which will include Yahoo’s communications and search businesses.

Yahoo has already been conducting a search for a new worldwide sales head, who will also be boss of the U.S., Asia and Europe, Middle East and Africa sales regions. Rich Riley, who was recently running EMEA, is reportedly the pick for U.S. sales; Rose Tsou, who is running Asia, would presumably stay put; Yahoo is looking for an EMEA sales lead.

Some current operational execs — such as service engineering and ops head David Dibble, CFO Tim Morse, and top lawyer Mike Callahan — are likely to continue to operate as before.

One big question mark is how Chief Product Officer Irving fits in the possible new org, in which the new units get control of their product development. Irving has reportedly had several incoming job offers, although it is not clear if he has responded to that interest.

But today, the focus is on the layoffs and letting go all those employees, many of whom have worked at Yahoo for years. Even if it will result in a stronger Yahoo, as Thompson promises, it is still a very sad day in Sunnyvale.

Here is a video on the topic that I did with the WSJ.com “Digits” show today, after the cuts were announced early this morning:

Here’s the entire terse statement from Yahoo:

Yahoo! Statement

SUNNYVALE, Calif. — (BUSINESS WIRE) — Yahoo! today confirmed that it is taking important next steps to reshape the company for the future.

“Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require. We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose — putting our users and advertisers first — and we are moving aggressively to achieve that goal,” said Scott Thompson, CEO of Yahoo!. “Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo!.”

Yahoo! has a solid foundation — nearly 700 million users and thousands of advertisers that engage with Yahoo! properties regularly and trust the company with their data and their business. Through its restructuring efforts, Yahoo! intends to grow by responding more quickly to customer needs and competing more effectively in areas where it can win. Yahoo! has identified key parts of the business — a select group of core businesses, the platforms that support those core businesses, and the data that drives deep personalization for users and ROI for advertisers — where the company will intensify efforts and redeploy resources globally, all focused on increasing shareholder value. With a clear focus on profitability and growth, the company will be disciplined in its investments and radically simplify how it builds, launches and maintains many of its properties and products.

Today, the company will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or phased transition.

Yahoo! expects to realize approximately $375 million of annualized savings upon completion of all employee transitions. The company currently expects to recognize the majority of an estimated $125 to $145 million pretax cash charge relating to employee severance in its second quarter financial results. The company may incur additional charges in connection with this action. More information will be provided about Yahoo!’s future direction in conjunction with the release of its first quarter financial results on April 17, 2012.

And here is Thompson’s memo to employees, stating the obvious and with nothing new from previous statements and internal memos:

Yahoos –-

Today we are restructuring Yahoo! to give ourselves the opportunity to compete and win in our core business. The changes we’re announcing today will put our customers first, allow us to move fast, and to get stuff done. The outcome of these changes will be a smaller, nimbler, more profitable Yahoo! better equipped to innovate as fast as our customers and our industry require.

Over the last 60 days, we’ve fundamentally re-thought every part of our business and we will continue to actively consider all options that allow Yahoo! to put maximum effort where we can succeed. As part of this process, I believe we have to focus to win in a select group of core businesses globally:

Core Media and Communications: Our content, media, and communications experiences must be best in class. That includes getting today’s core properties right and innovating on a next generation of great product experiences across all screens.∙

Platforms: We must make our core platforms and systems a genuine strength for Yahoo! — platforms that we can really leverage to support our massive scale, drive the deepest personalization, and boost speed to market.∙

Data: Our massive data sets must become a genuine competitive advantage for Yahoo!. We have to unlock the value in our data to allow us to really understand our 700 million users, encourage and win their engagement and trust, leverage everything they do with us to more fully personalize their experiences, and to give our advertisers the immediate insights they are rightfully demanding.

We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose — putting our users and advertisers first -– and we are moving aggressively to achieve that goal.

Unfortunately, reaching that goal requires the tough decision to eliminate jobs, which means losing colleagues and parting with friends. Today, we will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or a phased transition. We value our people and for those who will be leaving, we thank you for all you have contributed to Yahoo!. We will treat all of our people with dignity and respect, providing resources to help manage through their transition.

Change is never easy. But the time has come to move Yahoo! forward aggressively with increased focus and accountability. Our values have always been about treating all Yahoos with dignity and respect, and today is a day to embrace those values. This is an amazing company with exceptionally talented people and I know we will all do our best to encourage each other through this difficult period of transition.

Scott

Yahoo leadership, betting it can stave off a challenge from activist shareholder Daniel Loeb of Third Point, has been stepping up efforts to name three additional new board members to replace directors that are leaving.

Yahoo has already named two of the five open slots — former Rovi CEO Fred Amoroso and LiveOps Chairman (and former CEO) Maynard Webb, who was once COO of eBay.

But now, the company is pushing harder to get the last three on board in light of Third Point’s ever-increasing proxy pressure.

Several sources said that Yahoo’s new CEO Scott Thompson has told people inside and outside the Silicon Valley Internet giant that the threat from Third Point, which owns almost six percent of the company, is not as worrisome as some think it could be.

Thus, Yahoo’s headhunting firm Heidrick & Struggles has been contacting a number of high-profile media players about joining the board, including former News Corp. execs Peter Chernin and Tony Vinciquerra, as well as former MTV head Judy McGrath.

Both Chernin and Vinciquerra, sources said, have turned down the prospect of joining the Yahoo board in the midst of a possible proxy battle, along with other massive changes taking place.

Yahoo has not yet been successful at landing the remaining directors.

Meanwhile, Loeb, via saucy letters and filings, has been aggressively making a case that Yahoo should add his alternate slate of directors, including former NBC head Jeff Zucker, to the board. He recently submitted preliminary proxy filing with the Securities and Exchange Commission.

That’s because his cursory discussions with Thompson have apparently led nowhere, causing him to also publicly call for Yahoo to pay more attention to Third Point’s board selections.

If Yahoo names more directors to replace outgoing ones, it will be a slap in the face to Loeb, followed by inevitable ground battle war for investor votes.

Yes, that too.

Here’s a video from the WSJ.com’s “Digits” online tech show I did on the topic:

Last week, Yahoo’s activist shareholder Dan Loeb of Third Point, the New York hedge fund that is waging a proxy fight against the Silicon Valley Internet giant, made a regulatory filing noting that it had spent $971.1 million to acquire 70.5 million shares of Yahoo, a 5.8 percent stake. Loeb asked for Yahoo to consider his alternate board slate, and also wanted its shareholder list to communicate with other investors.

But that’s not all: In another action last week, Third Point asked a Delaware court to give it a look at sealed documents from a now-settled 2008 shareholder lawsuit related to Microsoft’s failed bid for Yahoo.

Said Third Point in its legal request, which Yahoo is seeking to block (of course!): “It is not surprising, then, that Yahoo and its soon-to-be former directors wish to keep details of their embarrassing — and fiduciarily suspect — conduct hidden from view.”

Here’s a video I did talking about the mishegas on WSJ.com’s “Digits” online show:

Let’s put this in the simplest terms: Yahoo cannot spend the next half year in any kind of testy proxy battle with activist shareholder Daniel Loeb.

Not shouldn’t. Can’t.

Having closely covered the last goat rodeo in 2008 with corporate troublemaker Carl Icahn — which ended in big shareholders dinging the board badly and the controversial activist joining it — I can say definitively that the experience damaged the Silicon Valley Internet company in ways that are still resonating.

Angry shareholders (whose anti-Yahoo votes were initially miscounted in a stunning bumble), distracted management, media story after story about the fight, it eventually led to the departure of then CEO Jerry Yang by the holidays of that year, a rejiggered board and a new CEO, Carol Bartz, and fervent promises of change and turnaround.

Fast forward to today: Bartz was ousted in the fall of last year, a newish board is coming in, there’s another new CEO and, of course, more fervent promises of change and turnaround.

This is like the movie “Groundhog Day,” except not nearly as funny.

Speaking of funny, a Heard on the Street in The Wall Street Journal yesterday actually went fabulously snarktastic with its headline on Yahoo’s current tussle with Loeb of Third Point: “Is Yahoo Ready for a Loebotomy?”

Heh.

Opening with the line, “How many activists does it take to screw in Yahoo’s light bulb?,” the piece went on to ponder back and forth the impact of Loeb on the already dicey situation at Yahoo.

It concluded: “Yahoo investors shouldn’t expect a quick fix whoever the directors are. But, given how long Yahoo has been struggling to gain traction on its own, having a champion of shareholder value on the board can’t hurt.”

Nope, it can’t, as long as said investor wants to help find the successful fix previous Yahoo leaders have been heretofore unable to.

Another commentary in the Journal, “Dealpolitik: The Yahoo Paradox” took an opposite tack.

“Even giving Mr. Loeb a single seat could further weaken Yahoo. As a gadfly Mr. Loeb could challenge each board decision,” it read.

Actually, given this board changes direction more often than Republican presidential candidate Mitt Romney — witness the now non-talks with its Asian partners this past week and, before that, with private equity investors — I am not sure Loeb would change the status quo all that much if he threw one tantrum per meeting.

So, which is it? Will a settlement with Loeb lead to more trouble or will it create the kind of change that Yahoo has long needed and never gotten?

At this point, I have no idea — but I do know that a fight between Loeb and Yahoo is good for no one, except lawyers and perhaps page views on this site and others.

And, frankly, I don’t want them.

That’s because — even as the rest of Silicon Valley reinvents and innovates more aggressively than ever these days — Yahoo and its still deeply committed employees will be caught up in more fraught financial mishegas and machinations and will be unable to do anything to attract new talent and begin to truly fix itself and its products in the profound ways it needs to.

And new CEO Scott Thompson — who seems intent on setting a new course for Yahoo in a non-advertising arena — will be inevitably distracted, no matter the also inevitable protestations that he will not be.

And, it won’t just be Loeb who is hovering — there is no doubt a panoply of other interested outside investors still waiting in the wings to see what tasty bits of Yahoo might come available if the crisis deepens.

It’s certainly not come to roadkill yet by any measure. But it’s not a recipe for hitting the ground running, either.

Here is a video of me talking about the problematic situation on WSJ.com’s “Digits” online show:

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:

According to sources close to the situation, Dow Jones is losing its top online editor.

Kevin Delaney, managing editor of The Journal Online — or WSJ.com, as it is better known — is taking a job at the Atlantic Media Company, sources said.

The move is a blow to the Journal’s online efforts, as Delaney, who got the top job in late 2009, is a well-regarded journalist and editor.

(He is certainly an AllThingsD.com fave of those at the Dow Jones mother ship, but he still did not call me back to comment! Thanks a lot, Kevin!)

It has not yet been determined who will succeed him at WSJ.com, sources said. Delaney is not leaving immediately.

Delaney joined the media giant in 1992, was a prominent tech reporter in Silicon Valley, and was also deputy managing editor at WSJ.com.

It’s not clear what Delaney’s new position will be at the Washington, D.C.-based Atlantic Media, which is best known for its flagship Atlantic Monthly magazine and also the National Journal.

But sources said his role will be part of a new content initiative the company is undertaking.

The well-known Atlantic has recently transformed itself from a coffee-table, big-think analog offering, which still is published, to focusing more on its online content site.

That includes its sassy Atlantic Wire, which is edited by former Gawker editor Gabriel Snyder. Two stories today, for example, are titled “Where the ‘Crybaby’ Gingrich Meme Came From” and “Cain Promises ‘Unconventional’ Endorsement, Jokes Ensue.”

That’s not your intellectually snotty uncle’s Atlantic!

I am looking forward to seeing what Delaney is up to soon.

(Full disclosure: News Corp.-owned Dow Jones owns AllThingsD.com — but that does not get our calls returned any quicker!)

Yesterday, after much scoopage and hubbub over the new Yahoo CEO, Scott Thompson, I donned my shades and headed over to WSJ.com’s “Digits” tech show to chitchat about it.

Yet another new Yahoo CEO to stalk is like back-to-school time for me — a combo of hope, newly sharpened pencils and clean erasers.

It’s a new day, and yet the same, as you can see from the Yahoo CEO chart above, from The Journal.

Here’s the video — I am a few minutes in:

Yesterday, on WSJ.com’s “Digits” online tech show, host Simon Constable asked me if some parts of my scoop on Apple holding a media-focused event in New York at the end of this month were secretly implying anything.

Simon apparently read “The Da Vinci Code” one too many times! I don’t know from clandestine signals, but here I am talking about the event, along with AllThingsD.com media ace Peter Kafka.

Enjoy:

In it, WSJ.com’s Markets Hub host Paul Vigna asked the (largely offscreen) media mogul some questions about online stuff, as the other two (terrified-looking) panelists watched.

What about buying into online gaming giant Zynga’s upcoming IPO? “No,” gruffed Murdoch. Does he play its flagship game, FarmVille? Of course not.

Murdoch is apparently on Facebook, though. Well, could Vigna be besties with his ultimate boss (News Corp. owns Dow Jones, which owns The Wall Street Journal, which owns WSJ.com, which also owns AllThingsD.com) on the social networking giant?

“No,” growled Murdoch.

Heh.

We are thrilled to welcome another strong reporter to the AllThingsD team: Lauren Goode, who will cover consumer tech products and issues. She’ll be based in New York.

Lauren comes to us from the digital arm of our sister news organization, The Wall Street Journal, where she was a video producer and reporter, from 2008 to 2011. She helped launch the Journal’s live-streaming video programming and produced and co-hosted the daily “Digits” technology show, which regularly features our ATD staff along with Journal reporters and editors. (We hope to see her there from time to time as a guest herself now.) She was also a contributing writer to the Digits blog on WSJ.com, and wrote posts on consumer technology products.

Prior to joining the Journal, Lauren worked in cable television from 2003 to 2008, producing and writing shows for A&E Television Networks’ award-winning “Biography” series, after having started her career as a production assistant at ESPN in New York.

The addition of Lauren to AllThingsD is just the latest move in an expansion that has seen our staff more than double in the past year, including adding new reporters, editors and developers. This has allowed us to broaden and deepen our coverage, to break more news and also to begin doing different types of stories than many other blogs offer, such as our recent series on Facebook’s smartphone effort.

We have more new coverage and staff expansions planned, so stay tuned. And, as always, thanks for your readership, which has been increasing strongly quarter after quarter. We aim to keep earning your loyalty and trust.

Going forward, Lauren can be reached at lauren@allthingsd.com, and you can read more about her bio and ethics statement here.

– Walt & Kara

Here’s a video interview I did with WSJ.com’s “Digits” show on Friday about who might be the “Next Steve Jobs.”

My take, after the untimely death of the Apple legend: There is and will be no replacement.

Here’s the video:

As Steve Jobs famously said to rival Bill Gates of Microsoft in a joint interview with Walt Mossberg and me in 2007, “You and I have memories longer than the road that stretches out ahead.” And perhaps what is most amazing about Jobs was his longevity.

Not in life, of course, which was cut tragically short at 56 years, with his last years focused a lot on the cancer that would ultimately defeat him.

Actually, by longevity, I mean how the iconic entrepreneur continued, until the very end, to have an enormous impact over all of technology and especially in Silicon Valley.

It is easy to see that Jobs has been the single consistent tech tastemaker and true-north icon — even in the frantically changing, what’s-new-is-best atmosphere that too often prevails in the industry.

The list of tech and media arenas he changed via innovative thinking and, more importantly, action, is long — from graphics to design to touchscreens to smartphones to tablets to animation to ease of use to apps to quality to, well, you get the idea.

The hits seemed nonstop: The Macintosh. The iPod. And iTunes. The MacBook. The iPhone. The iPad.

And it is no stretch to say that even the brightest lights in tech and media always watched what he did and were influenced by him, reacted to him, changed because he changed.

In many ways, it was because Jobs never seemed to waver.

Let’s be clear, this is not an easy thing to do, to keep sailing on your own course, often against the prevailing winds, and not be swayed.

Perhaps that is the thing that Jobs most exemplified — a stubborn unwillingness to adjust who he was, maintaining an integrity of purpose and vision when others could not.

It is certainly what has made him — and by extension, Apple — so special. Of course, it is not that he was not difficult, capricious and cutting at times. But even that he owned.

So who and what does tech look to now for that kind of inspiration?

Certainly, at this moment, there is no one leader to fill Jobs’s outsized shoes.

The founders of Google, Larry Page and Sergey Brin? Quirky, curious, arrogant, but so, so prosaic.

Facebook’s Mark Zuckerberg? Still forming, so awkward and not yet the leader he might become.

Jeff Bezos of Amazon? Certainly creative and bold, but utterly lacking in the moxie and style of Steve.

I could go on and not get to anyone even slightly close — there’s no one with the kind of charisma that makes it impossible to look away.

It’s called inspiration, a quality so lacking in all parts of this world, making it hard to imagine any replacement for Jobs.

And, in a way, why should we try to find one?

As Jobs himself said in his memorable “Stay hungry. Stay foolish” speech at Stanford University, right after he recovered from his first bout with cancer:

When I was 17, I read a quote that went something like “If you live each day as if it was your last, someday you’ll most certainly be right.” It made an impression on me, and since then, for the past 33 years, I have looked in the mirror every morning and asked myself, “If today were the last day of my life, would I want to do what I am about to do today?” And whenever the answer has been “no” for too many days in a row, I know I need to change something.

Remembering that I’ll be dead soon is the most important thing I’ve ever encountered to help me make the big choices in life, because almost everything — all external expectations, all pride, all fear of embarrassment or failure — these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.

No reason at all. So, as we all wish Jobs could have done, let’s live on.

And so will Steve Jobs. As AllThingsD Web guru Adam Tow said about the innovative Siri voice control feature in the latest iPhone 4 — introduced earlier this week without Jobs being there to present — perhaps Siri stands for: Steve is right inside.

Yes, indeed. Because his DNA lives in all of Apple. And, of course, in Silicon Valley and in tech, forever and always.

But we move on, too, so here is a video I did yesterday with WSJ.com on what impact Jobs’s death may have on Apple and whether the company will remain an innovator and market leader:

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Steve Jobs Full Coverage »

]]> http://allthingsd.com/20111006/now-what-the-post-jobs-era-in-tech/feed/ 0 http://allthingsd.com/20110916/what-was-behind-the-timing-of-yahoo-ceo-carol-bartzs-abrupt-ouster/ http://allthingsd.com/20110916/what-was-behind-the-timing-of-yahoo-ceo-carol-bartzs-abrupt-ouster/#comments Fri, 16 Sep 2011 21:31:52 +0000 Kara Swisher http://allthingsd.com/?p=121210

In the end — the bitter end, that is — there really is no good time to fire someone.

But the timing of the ouster of Carol Bartz as CEO of Yahoo is one of the more curious things about the corporate mishegas at the Silicon Valley Internet giant of late.

That included drastically moving up the clock on Bartz, which was not part of a plan until recently. In fact, several sources were told only last month by Yahoo board members that evaluation of her status — her contract ended at the beginning of 2013 — would not take place until the end of 2011.

That obviously changed.

And, because it is Yahoo — which never met a crisis situation it could not hopelessly complexify — there are numerous and conflicting accounts about the reasons it was done so quickly and abruptly.

They include the board’s feeling that Bartz had not responded to their requests for a credible strategic plan; worries that she would not ever meet annual performance goals, including improving its stock price; upcoming weak third-quarter numbers, which will continue a troublesome downward trend in Yahoo’s key advertising business; and, perhaps most intriguingly, the need to make a move before it was revealed that another activist investor, this time Third Point’s Daniel Loeb, had decided to target Bartz and the Yahoo board.

One thing is certain: The firing of Bartz was messier than it needed to be, mostly because several sources said she was caught unawares.

“She did not know it was happening, even if she probably should have seen it coming,” said one person familiar with the situation. “And she had no allies at the company to warn her, either.”

Indeed, at the time Bartz was fired over the phone by Chairman Roy Bostock — who had until late this summer been her fervent supporter — she was set to appear at a high-profile Citigroup investor conference in New York.

“It had to happen then, because you can’t put a CEO in front of investors and analysts and then fire her soon after,” said one person close to the situation.

Actually, former Yahoo CEO Terry Semel stepped down only days after appearing at the company’s annual meeting and telling the gathering he was in for the long haul.

The Loeb problem also played a part. According to several sources, while Loeb did not surface until after Bartz’s firing, several directors and Silicon Valley players were aware of his plans to target Yahoo.

While Loeb was not the more heavyweight threat that activist investor Carl Icahn had been in the past, sources said he was planning to call for Bartz’s firing, as well as a board re-do.

The large part of the reason for letting her go finally, of course, centered on not meeting performance goals set by the board.

While the overhaul of a hairball of systems and a rejiggering of staff was quickly done by the longtime and experienced manager, the turnaround and renewed product innovation promised by Bartz was slow in coming.

In addition, advertising sales results had worsened and recent quarterly reports showed little progress.

To remedy the situation, directors had asked Bartz to present a strategic plan earlier this year, which she did with the help of top execs. It further underscored the idea of Yahoo as a top-level digital media company.

But the board pressed for more details and felt Bartz was not the right exec to carry out the kind of dramatic renewal of Yahoo that is needed.

Looming, too, was the third-quarter earnings results on October 18, which sources said will show continued weakness at Yahoo.

For that, it’s likely the fired Bartz will get the blame, giving the board — which is also being criticized by large shareholders and others — a bit of breathing room as it figures out what to do next.

In other words, with no good news to report, the Yahoo board decided to deliver some bad news to Bartz.

(In related news, according to an 8-K filing by the company, interim Yahoo CEO and also CFO Tim Morse got a small bump in base salary from $600,000 to $750,000, effective September 15, 2011.)

And here is a video I did on WSJ.com’s Digits show yesterday about the buyer interest in Yahoo I previously wrote about, as well as its weak board:

]]> http://allthingsd.com/20110916/what-was-behind-the-timing-of-yahoo-ceo-carol-bartzs-abrupt-ouster/feed/ 0 http://allthingsd.com/20110908/viral-video-yahoo-and-groupon-update-live-from-atd-global-hq-my-bedroom/ http://allthingsd.com/20110908/viral-video-yahoo-and-groupon-update-live-from-atd-global-hq-my-bedroom/#comments Thu, 08 Sep 2011 08:26:52 +0000 Kara Swisher http://allthingsd.com/?p=118390

Here are two videos from an appearance I made on WSJ.com’s Digits show yesterday, talking about the situation at Yahoo and at Groupon.

And, by “situation,” I mean big, honking controversy.

In Yahoo’s case, it is the ouster of CEO Carol Bartz this week from the Silicon Valley Internet giant; with Groupon, it is the delay of the IPO of the social buying service and other related issues.

Here’s the video, which I did with my Ray-Bans in my bedroom at home. (Yes, in pajamas, as any good blogger would.)

]]> http://allthingsd.com/20110908/viral-video-yahoo-and-groupon-update-live-from-atd-global-hq-my-bedroom/feed/ 0 http://allthingsd.com/20101012/microsoft-internet-explorer-9-review/ http://allthingsd.com/20101012/microsoft-internet-explorer-9-review/#comments Tue, 12 Oct 2010 22:17:34 +0000 Katherine Boehret http://solution.allthingsd.com/?p=1439 In the continuing tug of war between apps and the Web, Microsoft offered a little bit of both last month in its beta release of Internet Explorer 9, the latest iteration of the world’s most popular Web browser. IE 9, as it’s nicknamed, is designed to make websites look richer, respond faster and behave more like the apps installed on your PC so you forget that you’re browsing the Web.

Alas, you are still browsing the Web and the occasional sluggish behavior doesn’t always magically abate after downloading a shiny new browser.

I tested IE 9 against its rivals, including speed tests with stopwatch in hand, as well as overall use tests to see how this new browser handled websites with complex graphics.

Fast, Sometimes Faster

I found my experience with IE 9 to be fast, and in some tests, faster on average than Google (GOOG) Chrome, Apple’s (AAPL) Safari and Mozilla’s Firefox browser. It also handled graphically rich websites with no trouble. (IE 9 is free for Windows PCs at beautyoftheweb.com.)

I used two Windows 7 PCs for testing, and though one performed without any problems, the other crashed two times while I used IE 9.

After a thorough analysis of the PC, a Microsoft (MSFT) spokesman attributed this to a graphics-driver problem and suggested a work-around of switching settings in IE 9 so it would use software rather than hardware graphics acceleration, which this new browser uses to improve speed and performance. This switch would cause the browser to perform slower than if it had used the richer hardware-accelerated graphics.

Using the four major browsers, I measured the average time for how long it took each to completely open five typical websites: Facebook, Google Gmail, Twitter, WSJ.com and my sister’s WordPress blog. IE 9 opened Facebook fastest and tied with Chrome in opening WSJ.com fastest. Firefox clocked the best time for opening Gmail and Twitter, and Safari opened my sister’s WordPress blog the fastest.

Handling Intense Graphics

But most of these time differences were within tenths or even hundredths of a second. What interested me more were how these browsers handled intense graphics on certain websites written in a rich format called HTML5.

I opened and interacted with websites including Livestrong.com, BMW’s joydefinesthefuture.com and IMDB.com. All the browsers could handle these sites except for Firefox, which couldn’t open the BMW site—a Web page that shows interactive diagrams of car designs. Videos played smoothly in all browsers, but seemed to start a smidge faster, on average, in IE 9.

If users aren’t impressed with IE 9′s enhanced speed and ability to handle graphics-filled websites, they’ll have a harder time ignoring the way this browser melds with Windows 7 to do some pretty cool things. For example, to automatically create a shortcut to a website, click on its representative icon, whether from the browser’s address bar or from a New Tab page, and drag it down and pin it to the task bar.

This pinned site is represented with its own unique icon and can work as a notification feature for a site’s content. Facebook, when pinned to the task bar, displayed a red asterisk when I had new notifications, messages, or friend requests waiting for me.

A Microsoft spokesman says there should be more sites that take advantage of these notification capabilities in coming weeks.

Once pinned to the Windows taskbar, the Livestrong.com site gets its own jump list, or set of commands that can be selected from the task bar.

Getting Pinned

Like anything pinned to the task bar in Windows 7, each of these pinned sites gets its own jump list, a set of commands that can be previewed and selected right from the task bar. Other functions also work from here, like playback commands for websites with videos. And any opened site can be previewed in thumbnail view by mousing over it in the task bar.

IE 9 is visually enjoyable thanks to some small but helpful tweaks.

The browser’s back button, an arrow in a circle, is much larger than other browsers, making it easy to find and use when you want to navigate back to the last page you were on. This back button and the forward arrow button beside it change colors according to the dominant color used in the opened website.

For Gmail, the arrow buttons are red, on AllThingsD.com, the buttons are green and on my sister’s WordPress travel blog, they’re light blue. This artistic touch makes the overall page easier on the eyes.

IE 9 lets people drag website icons down into the task bar for one-click access.

Many sites look the same on IE 9 as they do on other browsers, but some sites look better, filling the screen with slightly bigger illustrations and larger fonts that are easier to digest. I noticed this when viewing Twitter.com and several news websites.

The Birthday Slip

But I missed some of the visual pluses of other browsers. For example, you can’t close one of several opened browser tabs just by clicking on its red “x” icon unless you select—and, thus, view—that tabbed webpage.

Chrome, Firefox and Safari all allow closing of tabs by just mousing over a tab to see an “x” to click to close the website.

Handy shortcuts like this are especially helpful if you’re browsing online for a birthday gift, the intended recipient suddenly appears beside your PC and you need to slyly close a tab.

I’m also not crazy about the New Tab page in IE 9. This uses tiles with names of websites and small icons on each to represent your 10 most visited websites so you can quickly select one of them rather than typing out the page’s URL.

But I prefer the way Google Chrome displays the eight most visited sites as mini web page representations, which are easier to quickly recognize and select.

Likewise, the click of a button in Apple’s Safari browser shows mini representations of your 12 top websites in a concave view that makes you feel like you’re sitting in a round room. And though IE 9 has a handsome translucent border, when I had it opened in front of Google Chrome, I could see Chrome’s tabs behind that translucency, showing just how much more computer screen real estate Chrome offers.

Aside from my unusual PC crashes, IE 9 worked quickly and is smartly designed to handle websites with intense graphics. The Web will continue to fill with more and more of these visually rich, interactive sites, so people will benefit from using a browser like IE 9 that can take the heat.

Email Katherine Boehret at mossbergsolution@wsj.com.

]]> http://allthingsd.com/20101012/microsoft-internet-explorer-9-review/feed/ 0 http://allthingsd.com/20100401/expanding-on-the-ipad/ http://allthingsd.com/20100401/expanding-on-the-ipad/#comments Thu, 01 Apr 2010 18:47:27 +0000 Walt Mossberg http://mossblog.allthingsd.com/?p=471 Walt Mossberg was on the WSJ.com’s “Digits” online tech show and also on Fox Business today, expanding on last night’s iPad review. He explains why the Apple (AAPL) tablet could be a “game changer” for portable computing and addresses some key issues not mentioned in his review–including importing photos via the iPad docking port.

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More iPad Coverage »

]]> http://allthingsd.com/20100401/expanding-on-the-ipad/feed/ 4 http://allthingsd.com/20100303/peter-chou-htc-at-d8/ http://allthingsd.com/20100303/peter-chou-htc-at-d8/#comments Wed, 03 Mar 2010 12:15:20 +0000 Kara Swisher http://d8.allthingsd.com/?p=292

Before Apple lobbed a patent infringement lawsuit at Taiwanese handset manufacturer HTC yesterday, we were lucky to get its CEO, Peter Chou, to agree to appear at the eighth D: All Things Digital conference in June to talk about its work making smartphones for Google and others.

That interview with Chou (pictured above) obviously got a whole lot more interesting with the epic legal action by Apple (AAPL) alleging that HTC infringed some 20 patents related to the iPhone’s graphical user interface, underlying architecture and hardware.

Wrote Digital Daily’s John Paczkowski:

“The company is asking for a permanent injunction barring HTC from importing or selling infringing phones in the U.S., along with triple damages and maximum interest.

‘We can sit by and watch competitors steal our patented inventions, or we can do something about it. We’ve decided to do something about it,’ Apple CEO Steve Jobs said in a press release announcing the action. ‘We think competition is healthy, but competitors should create their own original technology, not steal ours.’”

HTC denied the allegations, not surprisingly, and was backed up in a statement of support by Google (GOOG). That is also not a surprise, since its Android operating system, which is in the HTC-made Nexus One phone, is mentioned prominently in the lawsuit.

Whatever happens, it all makes for what is likely to be a head-spinning technology rumble over the next months and underscores how important the burgeoning mobile arms race and the fight over innovation will be.

Until we get Chou in an onstage interview at D8 to talk about this and much more, here is a video of MediaMemo’s Peter Kafka talking about yesterday’s Apple action on the new Digits Live Show on WSJ.com:

]]> http://allthingsd.com/20100303/peter-chou-htc-at-d8/feed/ 0 http://allthingsd.com/20090728/yahoo-renovates-its-home-page/ http://allthingsd.com/20090728/yahoo-renovates-its-home-page/#comments Tue, 28 Jul 2009 23:52:02 +0000 Katherine Boehret http://solution.allthingsd.com/20090728/yahoo-renovates-its-home-page/ Makeovers are always fun to watch. Someone swoops in on an unsuspecting fashion “don’t,” improves him or her with a new hairstyle, makeup and wardrobe, and presents the finished product to overjoyed friends and family.

Last week, Yahoo (YHOO) unveiled the results of its latest makeover: the revamped home page. Carol Bartz, the company’s relatively new CEO, has said that Yahoo’s home page needed just such a makeover. After not changing significantly since 2006, the home page fits the role of a fashion don’t. And consumers, like family and friend observing the aftermath of a makeover, will either be overjoyed or nonplussed by the finished product.

Yahoo’s cleaner, streamlined home page emphasizes its ability to view content from other Web sites.

I’ve been using this new home page for over a week now and I can report that Yahoo followed one of the most important makeover rules by doing more with less. Gone is the busy screen saturated with advertisements and clutter. The new home page is clean and easier to absorb.

Favorite ‘Apps’

Yahoo’s home-page makeover goes beyond surface improvements. Its most useful feature is a list called My Favorites, which contains a variety of Web sites from within and outside of Yahoo. When your cursor hovers over one of these entries, which Yahoo calls “apps,” a pane opens with a preview of content from that site. This turns your Yahoo home page into an aggregator of information, bringing glimpses of information to you in one place so you don’t have to waste time navigating to other sites.

But if a greater number of these apps were more robust, you would be able to do more right within the hover pane, like watch videos or play a game. Currently, the hover preview pane only lets you see content, update social-network statuses and enter search terms, the results of which are shown on a new Web page.

This makeover comes at an interesting time in the world of online news aggregation. Competitors like Google (GOOG) and Microsoft (MSFT) incorporate data from all over the Web into iGoogle.com and MSN.com, respectively. And the concept of the home page as a starting point isn’t as popular as it once was: Many people now start browsing the Web by first clicking on a link in an email or in one of many social-networking sites, like Twitter.

Traffic Driver

Of course, Yahoo plans to use this redesigned home page to drive traffic to the company’s own sites like Shine, Answers, Health and OMG (a celebrity gossip site). These Yahoo sites make up half of the 65 apps designed especially for My Favorites. Yahoo says that its apps for other sites, including WSJ.com, were made by Yahoo and the outside company running the Web site. An ad runs on the hover preview page of each app and the revenue for this ad goes to Yahoo, not the content provider.

Yahoo will use your list of My Favorites apps to learn about what sites you use so as to target ads at users. This proved true for most of the ads I saw on my home page, but strangely, the AllThingsD.com app displayed ads for Mars chocolate and Del Monte fruit snacks rather than technology products.

Module Thinking

My Favorites is fixed on the far left of the Yahoo home page and a large search box sits prominently at the top of the home screen.

The top middle section of the screen shows a carousel of images and current news that Yahoo calls the Today Module; below this is the News Module, which houses tabs labeled News, World, Local, and Finance. The Local and Finance tabs can be customized by entering a ZIP Code and stock tickers, respectively. The Today and News Modules can switch positions if you click on a small arrow.

The revamped home page will serve as a starting point for the Yahoo Application Platform, or YAP. Sometime around late September, Yahoo will open its YAP (no pun intended) to software developers so they can make all kinds of apps with a variety of functions for the home page, not just apps that are tied to Web sites.

You can customize the home page for style or content changes if you sign on using a user ID and password. Changes should appear the next time you log in. But this didn’t work as well as it should. I set my page to display in a tangerine color, one of six colors offered for customizing the page, but the home page wasn’t tangerine-colored the next time I logged in.

Some Problems

I had trouble logging into my Gmail account using a special Gmail app, but this and the color problem were fixed by the time this column went to press.

Some apps didn’t work at all, like the Facebook app, which couldn’t connect to my Facebook account. Yahoo said the problem should be fixed this week.

The home page seemed to have a longer memory when it came to the list of My Favorites. I edited my list, adding more pre-made apps and creating some of my own using a built-in tool that lets you enter a Web site. Yahoo has preloaded icons for some popular Web sites such as cnn.com; otherwise, it will use a generic star.

Permanent Apps

Two apps are permanent fixtures at the top of the My Favorites list: One shows a list of all Yahoo sites and the other shows Yahoo Mail. Everything else can be deleted, added and moved around in the list. One of my favorite apps was for Epicurious.com, the food and recipe site. When I hovered over the Epicurious app, images of food with recipe names appeared in the hover preview pane. One click on an image sent me to the Web site for the full version of the recipe.

After adding many of my own apps to My Favorites, I wished Yahoo had a one-click tool for converting my browser bookmarks into apps. Yahoo says this is something it hopes to introduce in the future.

Mobile Rollout

This week, Yahoo started rolling out a mobile Web site made to run on the iPhone’s Safari browser that coordinates with the more robust version of the home page. I used this Yahoo home page on the iPhone and liked that it immediately pulled up the My Favorites list I had carefully constructed on my computer. Similar offerings will soon be available for other mobile devices.

The new Yahoo home page is a refreshing way of bringing content to you rather than you chasing around the Web looking for it. The My Favorites apps need a little more power to be truly useful and to encourage people to use the Yahoo home page every day, but Yahoo hopes to solve some of that problem in a couple of months when it opens the site to developers.

Write to Katherine Boehret at mossbergsolution@wsj.com edited by Walter S. Mossberg

]]> http://allthingsd.com/20090728/yahoo-renovates-its-home-page/feed/ 0 http://allthingsd.com/20090714/software-that-makes-twitter-so-much-tweeter/ http://allthingsd.com/20090714/software-that-makes-twitter-so-much-tweeter/#comments Wed, 15 Jul 2009 01:02:03 +0000 Katherine Boehret http://solution.allthingsd.com/20090714/software-that-makes-twitter-so-much-tweeter/ Most people who aren’t familiar with Twitter are eager to list the reasons why they don’t use this social-networking service. It’s for narcissists. It’s for teenagers. It’s for people who have nothing better to do. It’s a forum for oversharing. While all of these things may be true in some cases, I find Twitter’s 140-character messaging network to be an incredibly useful tool in my everyday life.

I use Twitter as my personalized news feed by following people who “tweet” (write updates) about things that interest me. In one glance I can read White House correspondent Mark Knoller’s tweets about President Obama’s activities, a recipe tweeted by Martha Stewart and WSJ.com tweets with links to news stories.

But Twitter works best with a little help from its friends, namely those programs that are designed to make it more customized and useful with minimal work on the user’s behalf. Here’s a rundown of just some of these helpers. I’m focusing only on ones that run on your computer, either in Web browsers or as stand-alone programs. There is also a plethora of Twitter applications that work on mobile devices like the iPhone and BlackBerry, too many to go into here. A few Twitter programs let you lurk and read tweets without a Twitter account, but in most cases these programs require a Twitter user name and password so they can better organize tweets of the people whom you follow.

To get a Twitter account in the first place, you will need to sign up with a user name and password at Twitter.com and start following people—or subscribing to read someone’s updates. These may be friends or people you simply find interesting, like journalists whose work you read (my Twitter user name is kabster728). You can see whom one person follows, and then opt also to follow those same people and the people those people follow and so on. Though it’s possible to lock your account so it’s private, very few people do so because Twitter encourages open communication throughout the Web.

That said, you can always choose to block someone from following you or stop following someone’s Twitter feed. You can comment on a tweet by sending the person who wrote it an “at reply,” named because the reply starts with the “@” sign followed by the user name of the person to whom you are replying. You can also send direct messages to another Twitter user as long as he or she is following you.

All-Purpose Programs

TweetDeck and Seesmic are two programs that do a good job of filtering others’ tweets and aiding the process of writing tweets. Both use Adobe Air, a tool that lets the program work in the background while continuously refreshing its content. This increases productivity because the programs can be set to display pop-up notifications whenever certain tweets appear.

TweetDeck (a free download at TweetDeck.com) organizes tweets into columns that you designate, such as a column of all tweets that mention your name, your company’s name or the word “Wimbledon.” It eases the process of writing tweets by building in ways to shorten Web links, post photos or translate a tweet into one of 35 languages. TweetDeck also integrates with Facebook so that one TweetDeck column displays your Facebook friends’ latest status updates.

The most recent version of TweetDeck enables synchronization of accounts with an email and password. This means that you can download TweetDeck on several computers, log into your account and see the same columns and settings on all platforms. The new version also includes fun extras like search within each column and the option to show how many followers a user has by displaying that number below his or her tweets.

Seesmic (a free download at seesmic.com) is another all-purpose Twitter program. It works much like TweetDeck, but has a few differences. Seesmic also integrates with Facebook, but does so in a more robust way, showing when Facebook friends share photos or Web links and letting you comment on or “like” someone’s status; TweetDeck only shows Facebook status updates.

Seesmic lets you drag photos into a small window for sharing via Twitter. But its overall look isn’t as visually appealing as TweetDeck’s and it lacks some of TweetDeck’s extra features.

Twhirl (twhirl.org) also runs on Adobe Air, working in the background as you use your computer for other activities. Like the aforementioned programs, it also enables easier tweeting with built-in tools for photo uploading and URL shrinking. Unlike TweetDeck and Seesmic, which focus on Twitter and Facebook, Twhirl enables logging into four types of accounts: Twitter, FriendFeed, Laconi.ca and Identica. But Twhirl shows only one category at a time, like a screen of replies, rather than showing all of these categories at a glance like TweetDeck and Seesmic.

Browser Power

Some Twitter programs run in browsers, not as stand-alone programs. This saves you from downloading a program on multiple computers because you can simply log into your account on any computer using its Web browser. But these programs won’t use the helpful pop-up notifications of Adobe Air; instead, you will need to look in your browser to see new information—like opening Twitter.com.

One such browser-based program is HootSuite (HootSuite.com), which uses an owl as its mascot. HootSuite’s unique features include its ability to set tweets to send at a later time or date, giving your followers the illusion that you are tweeting when you’re actually not, and a built-in statistic-tracker to measure how many people opened a link you posted using its ow.ly URL shortener. Like Twhirl, HootSuite shows only certain categories at a time rather than one overall glance at many categories of tweets.

Twitter.com is getting better, though it’s still weak compared with these other programs. I’ve used add-ons in my Firefox browser to enhance Twitter, and one called Power Twitter is like steroids for Twitter.com, adding photo uploading and link shortening right into the Web site. It also makes friends’ tweets richer by displaying details about any Web links that they share.

No Sign-Up Necessary

If you’re just curious about Twitter and want to see what people are talking about without signing up, try sites that are open to everyone. Twitterfall.com, for example, displays tweets about trending Twitter topics and custom search results in a waterfall-like visual with new tweets spilling over the top every half second. TwitterVision.com cleverly displays tweets around the world on a global map as they are posted, showing where the tweets are from, geographically.

Twitter isn’t limited to Twitter.com, and I wouldn’t likely use it as much were it not for programs like the ones I’ve mentioned and others. So give them a try and find out what makes Twitter useful for you.

Edited by Walter S. Mossberg.

Write to Katherine Boehret at mossbergsolution@wsj.com

]]> http://allthingsd.com/20090714/software-that-makes-twitter-so-much-tweeter/feed/ 0 http://allthingsd.com/20090630/the-swiss-army-knife-of-portable-videos/ http://allthingsd.com/20090630/the-swiss-army-knife-of-portable-videos/#comments Tue, 30 Jun 2009 22:50:04 +0000 Katherine Boehret http://solution.allthingsd.com/20090630/the-swiss-army-knife-of-portable-videos/ Every once in a while I watch an online video that’s good enough to send to a friend, share on Twitter and Facebook or save its URL so I can watch it again later. The final piece of the puzzle would be moving the video onto a mobile device to have it with me wherever I went.

Enter RealPlayer SP beta (realplayer.com), the latest in RealNetworks Inc.’s (RNWK) long line of media players that the company has churned out since 1995. RealPlayer SP—the SP stands for social and portable—is a free download that, once installed, grabs videos from the Web, converts them to the right format and transfers them to over a dozen portable devices. While other software programs perform two or just one of these tasks, the RealPlayer SP’s trio of talent makes it like a digital Swiss army knife.

After using the RealPlayer for moving several videos of all kinds to an iPhone, BlackBerry Curve 8900 and Palm Pre, I felt like I had more control over my portable devices and the media they held. And the freedom of knowing that this player is compatible with almost anything—including Apple (AAPL) and Palm (PALM) devices, Research in Motion’s (RIMM) BlackBerrys, T-Mobile’s G1 and Sidekick, Nokia’s (NOK) N97 and certain basic cellphones—is a major plus.

Behavior Problem

My biggest problem with using the RealPlayer SP has to do with my own behavior. Most of the videos I watch online and share with friends are less than five minutes long. This means that grabbing, converting and transferring videos to a portable device using the RealPlayer SP—albeit a relatively quick process—could easily take more time than the length of the video, itself. And many of the longer videos that I would want to move to a BlackBerry or iPhone are copyright-protected and thus can’t be downloaded by the RealPlayer SP.

Another factor is that more devices now have their own built-in app stores for downloading content to the device, without plugging into a computer for transfers like with the RealPlayer SP. The iPod touch, for example, can now download movies, music videos and TV shows over Wi-Fi thanks to a recent $10 software upgrade.

Mac Version Coming Soon

The RealPlayer SP works only on Windows PCs right now; a Mac version is due out by the end of this year. Likewise, it doesn’t work on Apple’s Safari browser but does work on Firefox, Internet Explorer and Google’s (GOOG) Chrome browser; I used all three with success.

If you’re not interested in using the RealPlayer SP for transferring videos to portable devices, you can still use it for downloading videos, saving them onto your computer and sharing them with friends via Twitter, Facebook or email. Tiny icons representing each of these sharing options appear in-line beside freshly downloaded videos. I shared videos of last week’s Congressional Luau at the White House via Facebook and Twitter, but the icon to share videos via Twitter doesn’t automatically shrink URLs to fit into a tweet. I shrunk the URLs myself, but this took an extra step¹.

And though I’ve mostly focused on the RealPlayer SP’s ability to grab, convert and transfer (RealNetworks calls these tools the Downloader feature in the player), it also works as its own media player or helps you discover new content.

RealPlayer SP Beta downloads, converts and transfers videos from the Web to a variety of portable devices.

A premium version called RealPlayer Plus SP is available for $40. Premium features include DVD burning, DVD playback (if your computer can’t play DVDs) and video conversion to a special format called h.264—though the free version performs these conversions for videos being moved to Apple devices.

I jumped around the Web visiting sites and playing videos, which prompted the RealPlayer SP to display a small “Download This Video” message above videos that aren’t copyright-protected. Downloading videos worked on most sites, including AllThingsD.com, Slate, YouTube, Salon and CNET. As expected, I wasn’t so lucky with videos from the New York Times, BBC and Hulu, which hosts loads of TV shows and music videos. That’s because videos from these sites were copyright-protected and didn’t allow for downloading.

A Glitch

In one instance with a WSJ.com video, only the short ad that played before the video was downloaded, even though the download prompt indicated that the WSJ video was obtainable using RealPlayer SP. RealNetworks says this is a glitch it knows about and plans to correct.

The RealPlayer SP’s ability to download videos and transfer them to devices, rather than just copying them onto computers, forced me to be choosier about the videos that I downloaded due to the limited memory of the devices. Because of this, I wished the RealPlayer SP Downloader had a better built-in way to discover downloadable content. Currently, a link to something called the RealGuide pulls up suggestions, but I had a hard time finding clips there that I wanted to download. RealNetworks says it plans to improve the video-discovery process in the future, including adding things like YouTube keyword searches built right into the Downloader.

The Downloader Window

When I did find videos I liked, I clicked on the prompt to download the clip, found the clip in a tiny Downloader window, and chose to move the clip to a device (there’s a list of all available devices) or share it via Twitter, Facebook or email. Transfer times depend on the length of the video.

RealNetworks provides simple instructions on making sure your device is set to transfer when plugged in. For example, BlackBerrys must be set to mass-storage mode, Palm Pres should be set to USB mode and Apple devices synchronize with the iTunes library, where RealPlayer’s converted videos are sent for transferring to iPhones and iPods.

RealPlayer SP can be a real help when it comes to putting the content that you want on your portable device. Its ability to assist from start to finish—finding videos, converting and transferring them—saves time and avoids confusion. To succeed, RealPlayer SP needs to do a better job of helping people find worthwhile videos to transfer, or they’ll stop using it after just a few tries.

Corrections and Amplifications

¹ Real Networks says its RealPlayer SP Beta’s Twitter video sharing capability has an automatic URL-shortening tool built in. This week’s Mossberg Solution product said the product lacked such a feature, because it never activated itself in our tests.

Edited by Walter S. Mossberg

Write to Katherine Boehret at mossbergsolution@wsj.com

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