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All posts tagged ‘BoomTown’

Tuesday, April 15, 2008

The Sheryl Sandberg PR Tour Rolls Into Town!

Mark Zuckerberg? Who’s that? Now, at Facebook, it’s apparently the Season of Sandberg!

sandberg

Ah, the appeal of a fresh face is just irresistible to the press–OK, including BoomTown, except we posted more than a month ago!–with two major pieces, in Fortune and The Wall Street Journal, rolling out this week alone, with everything you wanted to know about the new COO of the social-networking site, former Google (GOOG) exec Sheryl Sandberg (pictured here).

But if you don’t have time to read them, here’s a quick synopsis of both:

Fortune: “Meet Facebook’s New Number Two” by Jessi Hempel

Details: Just 14 days into new job; Leg-tucking white Eames chair (pictured here); as Google’s VP global online sales and ops, ran everything!; she and Zuckerberg met cute at holiday party; aced Larry Summers’s midterm and final at Harvard public economics course, much to his shock, since he implies she was kind of chatty in class with friends.

eames

Also Harvard MBA; obligatory McKinsey stint; Treasury Department in Clinton administration; picked 300-person Google over investment banking; always 10 steps ahead; Google.org mover and shaker.

Facebook aims: A need for corporate structure pronto; also time for the bigger picture; no more one-off decisions; more international growth; hiring senior managers; oh, yes, also must invent a new ad model for social networks.

But no silver bullets!; kicks ass, talks tough, then hugs all around (we did not make this up!); take out trash from Mark’s all-night Pizza-My-Heart-and-Red-Bull party (OK, we made that one up!).

Money quote:This feels like Google when I started.

The Wall Street Journal: “New Face at Facebook Hopes to Map Out a Road to Growth” by Carol Hymowitz

Details: Two weeks into new job; Biz dev guy Dan Rose is already sick of her (”It feels like she’s been here six months already.”); flip-flops endangered?; is able to argue why she is right by arguing how she is wrong; dangles data before engineers like fish before seals; easygoing but intense (when will these opposing dichotomies end?); crashed Harvard computers, but it was worth it.

aerobics

Taught aerobics and was a stretching fascist; more cute dinner chatter with Zuckerberg before hiring; grew Google team from four to 4,000; a feminist and hangs with Gloria Steinem and Jane Fonda (see aerobics!) too!; Facebook pix of Argentine waterfall-leaning; went to high school in Miami; small kids, hubby; more 10 steps ahead and shoving people out of comfort zone.

Facebook aims: Employee performance reviews; processes for identifying and recruiting new employees; management-training programs; rally troops; stop the cash burn and up ad sales; close-knit culture must go, but you get hundreds of millions of new friends!

Also must figure out how to save Beacon’s bacon; earn trust of users, while frantically searching for a business model; wants frank feedback from staff and will publicly thank such person who gives it.

Money quote: “Facebook is a different space than Google, with tremendous potential to connect people, but it needs scale, it needs systems and processes to have impact, and I can do that.”

AOL’s Big Give and Whirling Dervish Show!

AOL is turning into the Oprah Winfrey of the digital world, it seems, opening up Time Warner’s (TWX) checkbook to as many start-ups as it can.

oprah

Last month, it was $850 million in cash for social-networking site Bebo.

And, today, it’s a much smaller slug for Sphere, which started as a blog search engine and morphed into a widely distributed “contextually relevant” content engine, used on news and blog sites across the Web (and which AllThingsD uses on this site, in fact).

sphereaol

While one source said the price was upward of $25 million, sources at other companies to whom the San Francisco-based start-up also talked, including Google (GOOG), said Sphere was looking for more than that.

In any case, the sale is surely a win for CEO and Co-Founder of Sphere Tony Conrad, a longtime entrepreneur who also has been a VC at True Ventures, which also invested in Sphere.

Oh, it’s a mosh pit of jolly interbreeding in the Web 2.0 start-up world!

Sphere raised about $4.25 million from many investors, some of which included Radar Partners, Trident Capital and well-known Web players Scott Kurnit and Will Hearst.

AOL has surely shown a knack for snapping up small and innovative properties with clever technologies–the Truveo video search engine and communications app maker Userplane, for example–and has let them stay relatively intact, as it has promised it will do with Sphere.

But it also has not exactly leveraged any of them in a massive way either and still faces the problem of holding onto talent from those start-ups, as BoomTown reported here.

One hopes that AOL can do more with the more complex and elegant Sphere, which has deep relationships with major publishers all over the Web, including many Time Warner properties like Time.com and CNN.

It would be a shame for Sphere to fall into one of AOL’s deep holes there.

But perhaps not, given all the frenetic multitasking activity at AOL of late, including yesterday, when it also announced a deal in which its Platform-A online ad division would sell ads for Verizon (VZ) on the Web and for its mobile units.

Oh, and its top execs, CEO Randy Falco and President Ron Grant, whom AOL sources tell me have been AWOL of late, have also been ferreting away on a possible deal to be the alternative for Yahoo (YHOO) in its takeover battle with Microsoft (MSFT).

While Yahoo troops are not really happy with such a union, as BoomTown reported here, neither are some top Time Warner execs at the possibility that AOL might simply be being used as a stalking horse by Yahoo, in an effort to get Microsoft to up its bid.

“Do you think they’re using us?” joked one Time Warner exec to me yesterday, given the deal activity seemed to have slowed down this week.

Um, yes, of course!

While that wouldn’t be sporting, if Yahoo does end up going to Microsoft, it just means AOL will need to get a lot more energetic and do a lot more Spheres in the future to keep up.

Roy Bostock’s Other Merger Gets Done

Well, there’s one niggling deal off the desk of Northwest Airlines Chairman Roy Bostock–Delta Air Lines (DAL) and Northwest (NWA) finally agreed to merge after three months of tiresome back-and-forth wrangling.

roybostock

Sound familiar?

Bostock (pictured here)–apparently, the hardest working man in U.S. corporate board rooms–also happens to be the chairman of Yahoo (YHOO), which is in the midst of a takeover wrangle with Microsoft (MSFT).

So, if he managed to reach some sort of deal–either with AOL (TWX) or Microsoft–that would settle the fate of Yahoo this week, as some are speculating, I think some kind of medal would be in order.

And let’s not leave out the irony of the fact that the former top ad exec is also on the board of Morgan Stanley (MS), which is repping Microsoft!

Roy Bostock=Human pretzel!

Of course, there are still a lot of outstanding issues in the Delta-Northwest deal–including possible employee resistance and regulatory insistence. But getting this far in such a deeply troubled industry as airlines is a good sign that the much easier Yahoo situation can be settled.

Interestingly, under the proposed Delta-Northwest deal, Bostock would become vice chairman of the combined entity, which would use the Delta name.

Also a good sign–a willingness to shed your corporate independence and be OK with it.

Monday, April 14, 2008

Facebook Pushes Back Profile Rollout–Developers Breathe a Sigh of Relief

On its blog aimed at Facebook developers, the social-networking site said it would push back its massive Profile page redesign, which was supposed to roll out in early April.

It is now set for late spring, although the post specified no specific date.

facebooklogo

Why?

Facebook said it was due to feedback the company had gotten from its legions of developers who rely on the Facebook universe for their oxygen.

"We're still iterating on the design, making sure we get it right. We'll still continue to roll out improvements to Platform as well," wrote Pete Bratach of Facebook. "And rest assured, we will give you a period of time so you can update your applications before the profile is released to our users."

Well, phew, as some big developers have been grumbling to me a lot of late about their many worries about the new look, which is sure to confound them, and more importantly, users no matter how good it is.

“They really have to roll this out perfectly,” said one big Facebook widget maker. “It really is the biggest thing since Beacon, and you know how that went.”

Indeed, the controversial ad program was not the smoothest moment for the social-networking site. But making big changes to what is the heart-and-soul of Facebook is a quantum level of difficulty higher.

It will require almost perfect execution technically speaking, huge educational efforts early and often for users and a total buy-in from third-party developers, whom Facebook made integral to its success when it made the very sharp move of opening its platform to them.

But don’t feel pressured Mark and Sheryl!

You can see some of the previews on this Facebook Previews page here and in the screenshot picture below (click on the image to make it larger).

fbprofile

And, as an added attraction for those developers, here is a video of the lovely Anna Nalik singing her hit, “Breathe,” in an even better “Grey’s Anatomy” video (I am a complete sucker for cheese):

Social Networks’ Bad PR Week: Girl Gangs and Snotty Teens

Ah, nothing like crazy teenagers to ruin a social-networking site’s week!

teensbeat

Of course, a lot of the attention last week was aimed at MySpace, which had only a very peripheral role in the appalling story of a gang of teen harpies from Florida who viciously laid into another and videotaped it.

The unfortunate girl–whom the female wolf pack (to be fair, wolves are a lot more intelligent) was heard accusing incoherently in the video–had apparently posted something on MySpace–owned by News Corp. (NWS), which owns this site–that apparently ignited their rage. Thus, the genius leader of the half-dozen girls planned on posting a video of the beat-down to MySpace and also YouTube (GOOG).

The parents of the beaten girl, who was severely injured in the incident, urged the sites to prevent users from uploading the viral video, even though it was never uploaded by the teens and has been regularly taken off the services when it has been.

(I could not find the video on either service last night, except in snippets as part of news coverage. It is available on Salon here, and can also be embedded, which I decided not to do here.)

Still, the injured girl’s father was quoted in a local newspaper: “As far as I am concerned, MySpace is the anti-Christ for children.”

Actually, the gang of girls get that particular moniker in my estimation. In any case, justice will be meted out, I am sure, and it started with the judge’s order that the defendants not use any social network.

horacemann

And while it got a lot less attention, don’t miss New York magazine’s riveting story of a Facebook scandal at New York’s tony Horace Mann private school.

In the piece, titled “Testing Horace Mann” by Gabriel Sherman, Facebook is used as a vehicle for disgruntled kids to create obnoxious groups attacking teachers they don’t like in verbally appalling ways and without any apparent recriminations.

Laid out in exquisite detail are how petty school politics, overindulged kids and parents who need their heads examined collided to create the digital equivalent of “Lord of the Flies.”

Here’s the money quote:

These Facebook pages, however, were something different. Kids have always ragged on an unpopular teacher or ridiculed an unfortunate classmate. But sites like Facebook and RateMyTeachers.com are changing the power dynamics of the community in an unpredictable way. It is as if students were standing outside the classroom window, taunting the teacher to her face. Should they be punished? There were, as yet, no rules or codes for how a school should address such issues.”

While it is pretty obvious that it is easy to blame the technology in both these cases, there are bigger societal issues at stake here that nothing MySpace or Facebook can fix with a simple tweak.

Ted Leonsis Speaks!

BoomTown recently had lunch in Silicon Valley with Ted Leonsis, one of the most colorful, interesting and early of the modern Web’s entrepreneurs.

Leonsis is best known as the man who put the oomph into AOL during its glory days in the last century, when he joined CEO Steve Case in 1993 to grow the company into a behemoth that was able to essentially take over media giant Time Warner (TWX) in 2000.

That pairing did not go so well, as time did end up telling, and most of AOL’s senior ranks were gone from the company quickly.

That is, except for Leonsis, who stayed around AOL until the end of 2006 when he left the company to focus on his sports investments (See an interview with him about his Washington Capitals hockey team in The Wall Street Journal over the weekend here).

Leonsis has also recently teamed up with Case again to take on PayPal and the credit card industry–that shouldn’t be that hard at all!–with RevolutionMoney.

He talks about that venture and more, including the end of portals, the rise of distributed networks, the need for a new online ad paradigm and how techies need to focus more on “happiness and the quality of life.”

Yeah, that.

Here’s the video, in which Leonsis did not talk about the Yahoo (YHOO) deal, as this video was shot before talks between Yahoo and AOL heated up:

MicroHoo: Fun With Anagrams!

Who doesn’t like a good anagram?

Grumpy people, that’s who!

But for the rest of you out there, BoomTown ran the names of the pair of possible outcomes in the Yahoo takeover battle through Wordsmith’s Internet Anagram Server to see what would come up. We only printed the ones that had some semblance of sense.

And, apparently, MicroHoo has a stronger anagrammatic case.

Here are the results:

MICROSOFT+YAHOO

cowchair

Chamois Roof Toy
Oafish Coy Motor
Mafioso Torch Yo
Chair Of Moo Toys (pictured here, made of Yahoo sacred cows)
Fairy Smooch Too
Yahoos Comfort I
Yahoos Micro Oft
Yahoo Comforts I
Yahoo Comfort Is
Macho If Too Rosy (which, let’s face it, is the best analysis of the situation I have read so far).

YAHOO+AOL+GOOGLE

Aloha Gooey Logo (and a gooey logo it would be!)

Friday, April 11, 2008

MicroHoo: The Not-So-Bored Meeting!

Yes, the board of Yahoo is meeting today to try to devise new and more dastardly ways of wringing more money out of Microsoft.

For viewers just tuning in, so far this week on “As the Tiny-Incestuous-Petty-Juvenile-Digital World Turns,” Yahoo (YHOO) has been plenty busy:

An AOL (TWX) mashup deal!

A Google (GOOG) search-ad partnership!

Even–cue the trumpets!!!the late entrance of that man-about-Silicon-Valley from Web 1.0, Frank Quattrone, working for Google, which is helping Yahoo on AOL (and, fun, snake-eating-itself fact: as a banker, Quattrone worked for Yahoo when it was contemplating buying eBay).

This is so deliciously sweet, in terms of geek soap opera, that I fear I may get a major cavity soon.

But like any hungry viewer, I want more! What, what, what could be the next twist and turn?

Here are three of my more creative brainstorms:
jacksonboies

1. Reunite the dream team in United States v. Microsoft to scare the living daylights out of Steve Ballmer.

It will be like an antitrust version of “I Know What You Did Last Summer.” I am almost certain that Joel Klein, Janet Reno, David Boies and the ever-irascible Judge Thomas Penfield Jackson (the latter two pictured here) still are capable of giving Microsoft (MSFT) the willies.

redstonehills

2. If you want make former Yahoo merger partner and now Microsoft merger parter News Corp.’s (NWS) Rupert Murdoch squirm, there’s nothing like adding yet another wizened media mogul to the mix. My No. 1 choice would be some kind of hopelessly complex mashup with the properties of Sumner Redstone (pictured here), who controls both CBS (CBS) and Viacom (VIA). I am thinking something that includes SpongeBob SquarePants and those irksome girls from “The Hills” (also pictured here) and, say, Katie Couric.

zuckerberg

3. Of course, the most surefire way to get more money from Microsoft: Hire Mark Zuckerberg (pictured here). So far, the 23-year-old wunderkind and his team at Facebook (well played, Owen Van Natta, well played!) have been the only ones able to get Microsoft to fork over an ungodly amount of money for a chance to own a small part of a hope and a dream and not-a-very-impressive bottom line.

If Zuckerberg can get a $15 billion valuation by putting up only SuperPokes and news feeds as collateral, I would find what he is drinking and get me some for myself.

Please see this disclosure related to me and Google.

On the Menu at the Yahoo Top Managers Lunch Yesterday: Fear and AOL-oathing

yahoofood

For some reason, none of the half-dozen SVPs and EVPs I spoke to, who attended a lunch that Yahoo (YHOO) CEO Jerry Yang held yesterday for several dozen top-level execs, wanted to tell me exactly what was on the menu, because they did not want to reveal that kind of precise detail.

Fish sticks? Corn dogs? A lovely club sandwich with applewood bacon? No dice!

But no one could stop talking about the unhappiness they felt over the possible deal Yang was concocting with AOL (TWX), as an alternate to the unsolicited bid made by Microsoft (MSFT).

Read more »

Blogs and Kisses!

Here is a clip from my favorite new television show, “Tracey Ullman’s State of the Union,” which recently debuted on Showtime.

The British comedian does spot-on impressions of average people and the errant celebrity too, including a pitch-perfect one (right down to yelling for her sister Agape) of blogger Arianna Huffington with the signature line: Blogs and Kisses!

And in this video, accepting an award at the Bloggies, the hysterical moment when Ullman/Huffington tells a competing right-wing blogger to have her “YouTubes tied.”

Here’s the video and also the promotional one for the show that is pretty funny too:

Thursday, April 10, 2008

MicroHoo: Jesus Is Coming, Look Busy

jesusiscoming

Everybody remain calm.

While it might have looked like it was the rapture for major Internet players yesterday–what with everyone and his mother getting sucked up into the Yahoo-Microsoft takeover tussle and disappearing into the ether of confusion that now reigns over the situation–it is best to keep moving toward the light of harsh reality for illumination.

Read more »

Can Yahoo Stop AOL’s Talent Pool From Leaking So Much?

pool

Gone, Tim Tuttle of Truveo. Gone, the Birches of Bebo. Gone, Dave Morgan of Tacoda. Gone, many Quigos.

One of the more interesting little problems that AOL has had over the last few years, in regards to its acquisition of hot Internet companies, has been that it is situated deep in the bowels of the Time Warner (TWX) behemoth.

So, one wonders, will a possible hook-up with Yahoo (YHOO) change that, giving the also-ran Internet outfit potentially valuable stock in Yahoo to better entice valued employees to stay?

Read more »

Wednesday, April 9, 2008

MicroHoo: Taking It to the Mattresses!

Finally, the rumble has moved from letters to numbers, as a major Yahoo shareholder, legendary portfolio manager Bill Miller of Legg Mason (LM), has publicly backed the Internet giant in its takeover tussle with Microsoft.

mattressceleniamattress.jpg

And exactly what does Miller–whose fund only holds Yahoo (YHOO) shares and not those of Microsoft (MSFT) too, as do many big shareholders of Yahoo–want?

Three guesses and the first two don’t count!

More money, of course, and no more thuggish threatening from Microsoft to drop the price.

Read more »

Kara Visits AlwaysOn’s Venture Summit East!

ventureeast

Yesterday, I moderated a panel at AlwaysOn’s Venture Summit East in Boston, called “Is There Still Upside in the Internet?”

Short answer: Always and forever, as long as there are venture capitalists with bags of other people’s money and enough rat holes to shove the cash down!

In all seriousness, it was a great discussion, centering on the lack of exit for start-ups via IPO, the slowing down of the M&A scene and a need to build businesses that have strong revenue outlooks.

As to hype? Social networking, of course! And underhyped? Mobile.

The panelists included: David Kidder, CEO, Clickable; Waikit Lau, Co-Founder, ScanScout; Bob Davis, General Partner, Highland Capital Partners; David Beisel, VP, Venrock; and, one of my personal favorite VCs and charmingest Yahoo (YHOO) board member, Eric Hippeau, Managing Director, Softbank Capital.

I gave Hippeau a teeny hard time about the MicroHoo situation (essentially, WTF!!?). He deftly ignored me and made the most salient point of the panel about the continuing transformative power of the Web.

(Thus, shaming me for my tiny-minded, here-and-now focus! Well, I was only ashamed just for a second, but it was a really long second!)

Here’s the video with interviews with Hippeau and others, including conference organizer Tony Perkins:

One More Charlton Heston: The Moses Mashup

In BoomTown’s Charlton Heston tribute earlier this week, we left out this gem of a parody for our other favorite of his movies, “The Ten Commandments.”

In the words of Yul Brynner’s rocking Ramses: So it was mashed up, so it shall be posted.

Do not miss this video, as it is quite perfect:

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About Kara

Kara Swisher started covering digital issues for The Wall Street Journal's San Francisco bureau in 1997 and also wrote the BoomTown column about the sector. With Walt Mossberg, she co-produces and co-hosts D: All Things Digital, a major high-tech and media conference.

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Ethics Statement

Here is a statement of my ethics and coverage policies. It is more than most of you want to know, but, in the age of suspicion of the media, I am laying it all out.

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