BoomTown » innovation

AOL CEO Armstrong Talks About New Branding Effort and the Investor Road Show! (Plus Internal Aol. Logo Video)

Kara Swisher — Mon, 23 Nov 2009 08:02:05 +0000

After AOL CEO Tim Armstrong unveiled the newly punctuated AOL logo–big A, little o, little l, period–last night, he got on the horn with BoomTown to chitty-chat about the change in image and, more pertinently, how it’s going on the road show to sell investors on the soon-to-be independent company.

First off–while many suggested it–Armstrong said he never considered dumping the AOL moniker for another name, in an effort to rid the company of the 1990s feel of the brand.

“I wanted to keep AOL as the the brand, because bottom line there was a lot of good will around the name,” he said, noting the billions of dollars invested in it. “As a consumer brand, there was a high level of affection.”

Of course, I have a lot of nostalgic affection for Beanie Babies and the kids from “Saved by the Bell.” But, in no way does that mean I want them back, especially Screech.

But Armstrong prefers to use the revival of the Apple (AAPL) brand as a better comparison. “We think that kind of comeback is the way we’re looking at it,” he said.

In that case: Calling Steve Jobs, stat!

Of course, the AOL name has also forever been linked with Time Warner (TWX)–its current owner–in perhaps one of the worst mergers in history, another ding on the brand.

Armstrong agreed that corporate debacle left bad taste in the mouths of investors, which is one of the things he has to change in the road show he is now on to sell the new and improved AOL.

And, while he is only two days in, Armstrong said he is encouraged by the response.

“A lot of initial reaction is what we expected and we have had to do an update on AOL to change perceptions,” he noted. “People did not know we were doing so much…and, I think, they really like our strategy.”

That would be a leaner, meaner staff with a big focus on content.

Still, Armstrong said, investors are going to take some convincing. “Basically, they want to know where we are on the AOL turnaround and are asking us if we can get this company growing again,” he said. “AOL is still the ‘Show Me’ state.”

Actually, that’s Missouri. Perhaps a better goal would be Florida: The Sunshine State!

In any case, Armstrong said it will be critical that AOL show investors that its change is authentic, innovative and meaningful.

The idea of transformation is obviously and sadly clear with AOL’s recent announcement of massive layoffs and the deleveraging of assets.

In other words, it’s not your father’s bloated online company.

On the more positive side, Armstrong said communicating a new brand image and accompanying logo–whose motto is: “one logo/countless ways to reveal” and will include a marketing and advertising campaign–is also key.

“We want to use the new logo to highlight other things within the service,” he said. “And that would be all the things that you can pivot to that come after the dot.”

Here is a first look at a video of Armstrong talking to his employees about the new logo–and, no, I have no idea what the fawn, the goldfish or the weird-looking ghosts mean–as well as images of some older AOL ones (only the yellow running man is staying put):

[ See post to watch video ]

Hey, Hey, Hey, Twitter! Here's the Real "What's Happening!"

Kara Swisher — Fri, 20 Nov 2009 10:16:52 +0000

BoomTown was intrigued when Mind-Your-Own Biz Stone, one of the co-founders of Twitter, penned a blog post yesterday about the microblogging service changing its prompting question.

Now, above the little Twitter box, it reads, “What’s Happening?” and not the original tweet query, “What are you doing?”

“The fundamentally open model of Twitter created a new kind of information network and it has long outgrown the concept of personal status updates,” wrote Stone. “Twitter helps you share and discover what’s happening now among all the things, people, and events you care about. ‘What are you doing?’ isn’t the right question anymore…”

While the blogosphere covered this development as if it were a moment of monumental meaning, most were ignorant that the true beacon of innovative What’s-Happeningness does not reside in Silicon Valley.

Instead, it would be embodied completely by the 1970s television show, “What’s Happening!”

The sitcom was about three African-American teens living in the Watts section of Los Angeles–Raj, Rerun and Dwayne.

Here’s a video of the opening of the show, episodes of which can be found in their entirety all over the Web, and from which much Hey-Hey-Hey wisdom can be gleaned:

Exclusive: AOL Hires Bankers to Sell Off ICQ, as Internet Service Starts to Shed Non-Core Assets

Kara Swisher — Wed, 18 Nov 2009 21:18:39 +0000

AOL has hired a pair of New York investment bankers, Morgan Stanley and Allen & Co., to manage the sale of its ICQ instant-messaging unit.

Sources familiar with the situation said interest in buying the asset from two major non-U.S. companies prompted execs at the online service to put a process in place for a deal that will likely occur after AOL becomes an independent company in December.

AOL is set to spin itself off in less than a month from corporate owner Time Warner (TWX), and sources said selling off peripheral properties likes ICQ is part of becoming a smaller, more focused company.

Sources added that AOL now wants about $300 million for the property.

ICQ, which was once of the most explosive online communications tools, has lagged since AOL bought its popular software for $287 million in 1998, with another $125 million in earnouts for the team then. It was part of an Tel Aviv, Israel, start-up called Mirabilis.

While ICQ has about 40 million to 50 million unique monthly visitors and is the No. 1 messaging service in Germany, Russia, Ukraine, Israel and other small countries, its has less traction in the U.S. than bigger rival services from Microsoft (MSFT), Yahoo (YHOO) and Google (GOOG). In addition, Facebook and Twitter have also become major players in the status-update space.

AOL’s AIM service, in contrast, is quite strong, typically clocking as one of the top instant-messaging properties.

Said one source about the sale of ICQ, which is still based in Israel with about 100 employees and is moderately profitable: “AOL now has to be asking the hard questions.”

Those hard questions include massive layoffs, which BoomTown reported last week will take place soon. AOL then formally acknowledged the cuts, noting in a regulatory filing that Time Warner would take a $200 million charge for them.

Other AOL properties are also likely to be getting the once-over for sale, including its Bebo social networking site, which AOL bought for $850 million in 2008. But that is not imminent.

Here Comes Tech-Heavy "Avatar" (and the Inevitable Smurf Spoof)

Kara Swisher — Wed, 18 Nov 2009 06:00:47 +0000

Hollywood director James Cameron is well known for his heavy use of special effects and techtastic techniques in his movies, which include “Titanic,” “Aliens” and the first–and best–two “Terminator” blockbusters.

In a few weeks, Cameron is hoping to hit geek gold again with a 3-D sci-fi juggernaut called “Avatar.”

Set to come out in mid-December, it is full of all kinds of fancy and innovative CGI animation.

And the use of blue-colored avatars–essentially digitally animated likenesses of the real-life actors–is a big plot point in the movie, which is about a soldier caught in a war between a greedy mining company and a heroic indigenous tribe on a planet called Pandora.

Here’s one of the trailers for “Avatar”:

And, of course, here is a video of a hysterical recent spoof of the movie done by “South Park”–with a little “Dances With Wolves” tossed in, because it is the same exact plot–called “Dances With Smurfs”:

Qualcomm's CEO Paul Jacobs Talks About Smartbooks and More!

Kara Swisher — Mon, 16 Nov 2009 17:36:52 +0000

When in San Diego recently, BoomTown paid a visit to Qualcomm and its Chairman and CEO, Paul Jacobs, to talk about a new “smartbook” device the wireless-technology company unveiled last week.

Well, sort of–while I got a gander at a prototype, the real one is not actually set to debut until the 2010 Consumer Electronics Show in January, where Jacobs will deliver his first keynote address.

There, he will show off what is essentially a combination of a smartphone and a netbook using wireless technology and an always-on capability, an attempt to push yet another innovative device type onto the market.

It will use Qualcomm’s Snapdragon chip, and the first ones will be made by Lenovo and offered by AT&T (T)–to try to get the device widely used by consumers.

Smartbooks will be videocentric and have a Linux-based user interface, a keyboard and a range of popular widget applications, such as email and Facebook.

Obviously, this will be a competitive market and, really, Apple (AAPL), with its upcoming tablet computer, is also pushing into this mobile-phone-that-ate-computers space.

Moving into new markets has been important for Jacobs and Qualcomm (QCOM), which recently gave fiscal-year forecasts under Wall Street expectations and has had a rocky time in recent quarters.

Along with the econalypse, the company has attributed this to the decline in handsets with CDMA wireless technology, which Qualcomm pioneered.

Here’s my interview with Jacobs about smartbooks, as well as augmented reality and the company’s new FLO TV device, coming out soon. Plus, a wireless bandaid!:

[ See post to watch video ]

From the Department of Oh No, She Didn't: Whitman Defends eBay's Skype Debacle

Kara Swisher — Wed, 11 Nov 2009 19:30:19 +0000

If spinning is an intense political skill, former eBay CEO Meg Whitman is doing her very best at trying to create a silk purse out of a sow’s ear.

As Om Malik reports on GigaOm, Whitman–who is trying to nab the Republican gubernatorial nomination in California–told a radio interviewer recently that “actually I think Skype will prove to be a good acquisition for eBay.”

Well, good if you mean the $2.6 billion purchase of the Internet telephony company that never worked as Whitman had effusively promised in 2005.

She noted then: “By combining the two leading e-commerce franchises, eBay and PayPal, with the leader in Internet voice communications, we will create an extraordinarily powerful environment for business on the Net.”

That fabulous-sounding synergy did not happen, of course, eventually causing new eBay (EBAY) management to sell a huge chunk of Skype to an investor group.

Best of all, that sale included an ugly and expensive legal fight over software technology licensing issues with its co-founders, Niklas Zennström and Janus Friis, given that Whitman neglected in the competitive bidding to secure them properly.

That resulted in Zennström and Friis forcing eBay to include them just last week in the deal for a big chunk of Skype in exchange for those rights.

As the sick political joke goes: Other than that, Mrs. Lincoln, how was the play?

Nonetheless, Whitman has not let the facts get in the way of a good story!

She kind of had to, I guess, responding to an allegation by one of her rivals in the race, tech entrepreneur Steve Poizner, who has tried to chip away at her blue-chip business reputation by attacking the Skype deal.

Whitman was right to defend a lot of other great acquisitions she made as leader at eBay, such as PayPal; and she can be, as she said in the interview, “proud of my tenure at eBay.”

She should be, given that she was key to building a huge and profitable company that is a clear Silicon Valley Internet icon. While eBay did start to creak near the end of her decade-long stint there, many of Whitman’s accomplishments are nonetheless impressive.

But not all of them and definitely not the Skype buy, so she might want to stop making laughable declarations like this one in the interview:

“You probably read that the company just sold about two-thirds of the interest in Skype to an investor group, kept a portion, and got almost all the money back, and I think Skype will be very effective.”

Well, maybe so, but only because new management had to do clean-up and pay-up for her error, and new owners in charge of Skype could possibly better take advantage of what most consider a terrific property.

So, in the end, Whitman might be right.

And it might not even matter. In a recent poll, Whitman has pulled far ahead of ex-Congressman Tom Campbell, with 34 percent support from Republican primary voters compared to 13 percent for Campbell. Poizner clocks in third at six percent.

Bing Keeps the Changes Coming–But Is It Working?

Kara Swisher — Wed, 11 Nov 2009 18:00:15 +0000

It certainly is good to see Microsoft working the innovation thing, especially in the consumer space with its Bing search service.

The ultimate goal is to gain market share for Bing, from striking deals with hotter companies like Twitter and Facebook to doing a massive advertising and marketing campaign to making constant feature upgrades.

This is one of those weeks for Bing, which started off yesterday by renaming its video properties on MSN, now integrated with search, to Bing Videos. Microsoft also rejiggered its Bing Maps.

And today, the company is rolling out more features, including integration related to diet and nutrition with fancy search service Wolfram|Alpha, an “enhanced hover preview” and full-page weather and events results to add to its niche search offerings.

But whether all this will spell significant changes in market share compared to dominant rival Google (GOOG) is still an open question, with Microsoft (MSFT) eking out solid gains since Bing launched.

Today, Hitwise figures have Bing up seven percent to 9.57 percent in October, at the expense of both Google and Yahoo (YHOO).

Money is also coming in slightly better. A recent report by IDC noted that Bing’s search revenue has gained 6.1 percent to 6.8 percent from the second-to-last quarter.

But spending on advertising, as well as these new features, is also costly.

Still, Microsoft is pressing on.

The Wolfram feature, for example, adds a nutrition quick tab when searching on food items, as well as a body-mass index tool.

Here is a video on it from Bing, which might require installation of Microsoft’s Silverlight video technology (you might also want to launch full screen to see it better):

Bing will also improve the ability of users to get quick info by hovering over a link. Frankly, this annoys me more than bad clicks, but most people will probably like seeing snapshots of the actual Web sites, a search-within-this-site box and deep links.

Perhaps the most interesting iteration of this feature will be Facebook page previews. Click on arrow below:

The weather stuff is just more, more, more bells and whistles, integrating news, events, xRank results, Twitter feeds, images, Best Match results and content from sites you trust onto one page with a prettier interface. Check it out:

There will be more to come, of course, which should–at the very least–have competitors competing better.

Accel Partners Feels Like a Billion Dollars Today…No, Really!

Kara Swisher — Mon, 09 Nov 2009 20:24:08 +0000

Who said the venture capital industry is sucking wind lately?

Well, it is–but not today, and especially, not Accel Partners, which sold two of its portfolio start-ups to large public companies for a total of $1.5 billion.

That would be the sale of AdMob to search behemoth Google (GOOG) for $750 million in stock and the acquisition of Playfish by gaming giant Electronic Arts (ERTS) for about $300 million (plus an earn-out of up to $100 million for Playfish staff).

While Accel shared the AdMob largess with Sequoia Capital and others with a stake in AdMob, which focuses on mobile advertising, and shared its social-gaming winnings from Playfish with Index Ventures, the Palo Alto, Calif.-based VC firm can surely afford to choose the pricier bottle of wine this week.

(Also, apropos of nothing, Accel Partner and Facebook board member Jim Breyer is now officially paying for the lunch he still owes me!)

Playfish had raised a total of $21 million in funding, while AdMob had pulled in about $47 million.

“I think you can imagine we are very pleased,” said Rich Wong, the Accel partner involved with AdMob, in an interview this morning. But he would not give any specifics about what Accel hauled in for its portion of the two companies.

Still, Wong said the venture market in Silicon Valley and elsewhere was definitely “stabilizing,” noting that there has been an increasing number of exits for investors via big companies scooping up strong start-ups.

“AdMob and Playfish are strong players in their respective spaces and in leading categories,” said Wong. “Their sale is a sign that this kind of innovation is important to major companies.”

And, apparently, to Accel.

Google Primer on AdMob Acquisition: We Can Believe We Ate the Whole Thing!

Kara Swisher — Mon, 09 Nov 2009 18:47:18 +0000

Google has a Web page up about today’s acquisition of AdMob for $750 million in stock, which includes the lovely image below of the differences between what the Silicon Valley companies do in the mobile advertising space.

Said Google (GOOG) on its site about the purchase:

“Mobile advertising is a rapidly growing and competitive space, and Google and AdMob are currently specializing in different areas. Though Google offers many forms of mobile advertising, its focus to date has been on mobile search ads, while AdMob’s focus has been mobile display ads and in-application ads.”

Translation: The Web search behemoth has been slower than molasses in the mobile and smart-phone ad space, sticking with boring blue text links of death, especially compared to the innovative and nimbler start-up, which is rocking the pretty ads.

So, we ate it.

Here’s the differences (click on the image to make it larger), according to Google:

Please see this disclosure related to me and Google.

Google Acquires AdMob for $750 Million in Stock (Plus the Press Release and Video With CEO)

Kara Swisher — Mon, 09 Nov 2009 17:33:49 +0000

Google has acquired AdMob for $750 million, a huge price for an innovative start-up that has pioneered online ads on mobile and now smart phones.

BoomTown visited AdMob last fall and posted about how it was likely to eventually be acquired by…Google (GOOG)!

(Google has provided a primer on the sale, which you can read about here.)

The move is a major one for Google, which has been pushing hard into the mobile advertising space as it seeks to grow its already considerable Web search business. AdMob is arguably the most innovative and fastest out of the gate in the nascent arena.

As I wrote previously about the company’s prospects:

While there are very few bright spots to look at in the start-up space in Silicon Valley these days, especially those relying on online advertising, the San Mateo, Calif.-based AdMob is at least slightly shiny.

The mobile advertising marketplace, backed by Sequoia Capital and Accel Partners, just got a big slug of funding–almost $16 million–to keep pushing to get ads on mobile phones, which has gotten a huge boost from the popularity of the iPhone.

The massive data usage by users of the popular mobile device by Apple (AAPL) has clearly turbocharged AdMob’s prospects, which were already on the rise. Compared to a year ago, the company said, the number of ads it served more than tripled the number of ads served on a monthly basis to 4.5 billion.

Obviously, the better quality and more actionable nature of ads on improved screens is the reason for the shift, which should accelerate as more smartphones like Google’s G1 and the newest Blackberry Storm from RIM (RIMM) become more popular too.

Most importantly, even now, AdMob is cash flow-positive, which is not a bad thing to be in the current econalypse. It also has a cushion of cash–AdMob had previously garnered $15 million in funding from Sequoia and Accel.

It’s not all sunshine and daisies, of course, since the ad market in general is headed for a deep slump, and new markets are not going to grow as quickly, as marketers pull back from spending.

But, when the economy turns, the mobile advertising market is clearly going to be a fast-growing arena, with big players like Google, Yahoo (YHOO), Nokia (NOK) and Microsoft (MSFT) as AdMob competitors (or potential acquirers, especially Google).

With the money it just raised, AdMob said it would be getting ready for that race, and also use it to expand internationally.

Here’s a video interview with Omar Hamoui, founder and CEO of AdMob, on all this and more, as well as a tour of company’s offices:

[ See post to watch video ]

And, here’s the press release:

Google to Acquire AdMob

MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–Google Inc. (NASDAQ:GOOG) today announced that it has signed a definitive agreement to acquire AdMob, a mobile display ad technology provider, for $750 million in stock. This acquisition will enhance Google’s existing expertise and technology in mobile advertising, while also giving advertisers and publishers more choice in this growing new area.

“Mobile advertising has enormous potential as a marketing medium and while this industry is still in the early stages of development, AdMob has already made exceptional progress in a very short time,” said Susan Wojcicki, Vice President of Product Management at Google. “AdMob is the quintessential Silicon Valley startup–generating impressive year on year revenue growth–and we’re excited to welcome this talented team to Google.”

“I think people underestimate how important ads have been to funding the development of innovative content on the Internet. Our goal all along at AdMob has been to make it possible for developers and publishers to bring their products and ideas to mobile with the same business model,” said Omar Hamoui, Founder and CEO of AdMob. “We’re proud of the progress we’ve made towards accomplishing this goal, and joining Google will only accelerate this process, ultimately leading to very real benefits for end users around the world. As publishers and developers generate more revenue from their mobile products, they will invest more, and their mobile offerings will become richer, more creative and more robust.”

The deal will help Google in its efforts to develop more effective tools for creating, serving and analyzing emerging mobile ads formats. As this ecosystem continues to grow, the company expects these new marketing media to offer significant benefits:

Advertisers will be better able to engage mobile users with AdMob’s ad formats

Publishers and developers will be able to monetize their content more effectively, which has benefits for the wider mobile ecosystem

Users will see more relevant ads and ultimately get access to more ad-supported content and applications – improving their mobile experience

“Attracting the world’s top engineering talent and people with entrepreneurial vision to Google has always been crucial to our success. AdMob’s proven track record in innovating at speed will help maintain that culture–which is why we are so excited to be working with them,” added Vic Gundotra, Vice President of Engineering at Google.

Both companies have approved the transaction, which is subject to customary closing conditions.

Please see this disclosure related to me and Google.

Meet Drake Meeting Brizzly: A Spanking New ATD Feature

Kara Swisher — Fri, 06 Nov 2009 08:03:48 +0000

Today, All Things Digital debuts a new feature called “Almost Famous” in our Voices section.

No, it is not about Kate Hudson and nascent rock stars.

Well, you might meet geek rock stars to be.

Focused on innovative, interesting or just plain odd start-ups, we thought it was a good way for ATD readers to get a gander at some up-and-coming ideas and trends.

We cover start-ups, of course, on the site, but–given that we have a small staff that breaks a lot of big-company news–not on a regular time frame.

So, while we are no good at predicting what will work and what will not and who will make it and who will fail, every Friday, Drake Martinet will be paying a video interview visit with, asking some questions of and gleaning a few pertinent stats about a wide range of companies.

Here’s our first effort: Chris Wetherell, creator of Brizzly, a Web-based social media reader.

The San Francisco start-up, which just rolled out support for Twitter lists last night, is also just wrapping up a new $600,000 round of funding, according to Jason Shellen, CEO of Thing Labs, from which Brizzly sprang.

Brizzly had already raised $1.5 million from Polaris Venture Partners last year. Now it is getting more cash from investors such as Ron Conway to further its software and other efforts.

But don’t rely on BoomTown for info about Brizzly–check out Drake’s take.

Sphere Leader Has Exited AOL–But Staying on as "Special" Venture Advisor

Kara Swisher — Wed, 04 Nov 2009 17:30:28 +0000

Tony Conrad, CEO and co-founder of Sphere–the contextually relevant content engine AOL bought in the spring of 2008 for upward of $25 million–left the Time Warner (TWX) online unit last month, several sources have told BoomTown in recent weeks.

But, in an effort by AOL’s CEO Tim Armstrong to hold onto entrepreneurial talent, Conrad (pictured above) has agreed to become “Special Advisor” to its AOL Ventures Unit, headed by Jon Brod.

Conrad, who also works as a partner at San Francisco venture firm True Ventures, is also apparently looking to launch a new start-up.

These many moves have now been confirmed by a blog post–obtained by BoomTown–set to be published by Conrad at Sphere, which has recently changed its name to Surphace (a goofy moniker that still makes me weep, and not for joy).

Titled, “Next,” the post will also be appearing on the True Ventures site.

In it, Conrad outlined the changes and also gave big thanks all around.

You can read the whole thing below. In the post, Conrad noted that “I also find myself with a burning need to start another company…[and] I’ve decided that I need to move on from Sphere to figure it out.”

Sphere was founded in 2005 and 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.

Conrad, who was involved with Webmail and RSS aggregator Oddpost (acquired by Yahoo in 2004), is also on the board of Automattic/WordPress, the blog publishing system this site uses.

This kind of history gives him a lot of Silicon Valley cred to help AOL, which also recently hired former Yahoo (YHOO) exec Brad Garlinghouse to run its communications arm and be its “CEO of Silicon Valley.”

Both will be working with Brod, who came to AOL via its acquisition of hyperlocal community news start-up Patch Media.

Brod has previously worked closely with Armstrong, who was a major Patch investor.

All these players will have their hands full trying to push AOL’s reputation among entrepreneurs, which is–how can I put it delicately?–pretty nonexistent.

But boosting innovation will be key to success as AOL prepares to spin off from Time Warner later in the year.

And that was not exactly helped by its recently released slate of board picks, who are a little light on fast-paced, Web 2.0 entrepreneurial skills.

So, keeping someone like Conrad in the AOL tent is a good move, especially since several similar execs at start-ups bought by the online giant have left.

They include Michael Jones of Userplane, who is now COO of News Corp. (NWS) social networking unit MySpace, as well as many others.

Here is a video interview I did with Conrad in mid-2007 (which also includes a visit with GigaOm’s Om Malik):

[ See post to watch video ]

And here is Conrad’s blog post:

Next

It’s been almost five years since Martin Remy, Steve Neiker, Toni Schneider and I started working on Sphere. For me, it’s around 10% of a life. And it’s a time when I find myself thinking a lot about a particular question: What do I want to do next?

In 2005, I had the good fortune of being on the founding team of Sphere and joining True Ventures simultaneously. I always thought that I’d eventually focus all of my attention on one or the other, but both were too much fun and I guess I’m selfish in that way. As time passed, I went deeper into each role and I never got around to choosing one or the other. It worked out nicely. True is on its second fund and Sphere had a successful sale to AOL in 2008. Most importantly, Sphere’s business and team are both thriving within AOL. While I’m proud of my contributions to both, the heroes in this equation are Martin, Steve, Toni, Shea DiDonna, Braughm Ricke, Om Malik, Puneet Agarwal, John Burke, Phil Black, Jon Callaghan, Marty Moe, Bill Wilson and AOL–they trusted and empowered me to pursue both. I am extremely grateful.

As I’ve thought through the question of what’s next, I’ve realized that I love the complementary perspectives acquired from building a company as an entrepreneur and investor. They are symbiotic roles and it’s really hard to say which has influenced me more. While my role at True as a Venture Partner will continue to deepen (because there is nothing more rewarding than working with people you admire and trust), I also find myself with a burning need to start another company. I’ve discovered my formula and doing both makes me happiest.

As for my next company, I’m not sure what the answer to that question is, but I’ve decided that I need to move on from Sphere (now Surphace) to figure it out. This may feel like old news as I’ve been working to make myself obsolete as Josh Guttman transitioned into the CEO role. My decision is easy as I know that Surphace is in excellent hands. I wouldn’t feel comfortable leaving if I didn’t believe that Josh was the right leader for the business today. He’s a natural leader and has a strategy for the future that I believe is going to accelerate growth for Surphace and AOL. I couldn’t be more pleased for Josh and excited for the Surphace team.

As for my thoughts about Surphace and AOL’s future, I’m more optimistic than ever. We joined AOL at an opportune time. AOL is doing what great, sustainable businesses do every so often – they’re reinventing themselves. As the business model of the oldest and one of the biggest Internet businesses evolves, Sphere/Surphace has become an important piece of their strategy to reach across and engage the web. In the past year, we’ve had an insiders’ view into how AOL’s new leadership team has moved aggressively to engage their audience (new vertical focused websites; a focus on engagement and not page-views for page-views sake; hiring leading journalistic talent when others downsized; acquisitions in the local content space; shorter development cycles with an emphasis on release, iterate and release). There is nothing like winning and the AOL publishing business is winning. As a result, I’m pleased to also announce that I’ve agreed to serve as a Special Advisor to AOL Ventures as they reinvent themselves. I am thrilled at this opportunity to evolve my relationship.

I want to give a huge thanks to the people who’ve made the last few years what they were: my family tops the list, an entrepreneur is only as good as their support system and this is my secret sauce. My co-founders, Martin and Steve, who trusted me to play a role in helping them get the tech they invented the exposure it deserved. Toni and Phil who taught me about generosity at a moment when I was able to learn. Matt Mullenweg who opened up my thinking of how a start-up operates. Marty and Bill who have been consistently supportive since Day One–I can’t underscore enough how much I appreciate the manner in which they’ve empowered us to thrive in an appropriately independent environment. They have treated me (and the Sphere team) with enormous respect for which I am both thankful and flattered. The original Sphere team, the current Surphace team who have embraced AOL. Our investors and advisors who supported and helped shape our vision. The True team and entrepreneurs who have taught me about sacrifice, vision, execution and the value of pursuing your dreams–and, of course, Lewis Dvorkin, Kevin Lockland and Bill who paid us the nicest compliment of all in offering to acquire our company and then doing so.

It’s been a thrilling, at times difficult, always rewarding and lucky ride I’ve been on. Thanks to all.

Clutter-Free, Twittified, Binged (and Also Apple-icious): The New MSN Homepage Debuts (Plus Screenshots and the Press Release)

Kara Swisher — Wed, 04 Nov 2009 04:15:34 +0000

The new MSN homepage debuts tonight and you would be completely correct in thinking the recipe Microsoft (MSFT) has cooked up to inform its design ethos–white, clean and hiply modern–has definite echoes of a certain longtime tech rival.

That would be Apple (AAPL), of course, with a big dollop of Twitter and Facebook tossed in, and finished off with a generous sprinkling of Microsoft’s new Bing search service.

For those who care: The MSN butterfly logo remains, although it appears to have lost a lot of weight too.

(You can view a preview of the site here.)

The launch is the first major upgrade of the MSN main page in–if you can believe it–a decade, part of an overhaul that the software giant has been doing throughout its money-losing online services division.

That has included the launch of Bing in May, which has been a success for Microsoft, adding a small amount of search market share and, more importantly, some much needed respect to its long-beleaguered consumer Web efforts.

The company’s online execs are trying to keep up the innovation momentum with the new MSN redesign and–as you can see below from the various screenshots–it is a major shift for the portal site.

Together, MSN and Windows Live have about 100 million unique monthly visitors, putting Microsoft typically third behind Google (GOOG) and Yahoo (YHOO).

The company hopes to do better with a fresher MSN, which is clearly aimed, first and foremost, at clearing up the clutter and link-heavy old MSN homepage.

MSN execs said the new main page has about half the “blue” links.

(See a video interview I also did with MSN exec Bob Visse about all of this here, along with other videos Microsoft did with its MSN staff.)

The top of the new page features a big image module, with inline video and drastically reduced topic areas–as BoomTown has previously reported–limited to news, sports, entertainment, money and lifestyle.

Under that is a more customizable news module, to which feature tabs can also be added, such as for the World Series or–prolonged sigh–Balloon Boy coverage.

On the bottom left is a much-goosed local module that resolves to beefed-up local sites, which is right next another section featuring Bing top searches.

Bing is present in every part of the site now, with Microsoft stressing it and using its structured data to improve the consumer experience.

That’s important for Bing search too, since MSN provides 45 percent of its traffic.

Communications modules are to the right, midpage and on the bottom.

Unlike AOL and Yahoo, which have added the ability to put third-party email on their homepages, only Hotmail is now available on the new MSN, although this is likely to change soon.

But perhaps the design element that will garner the most attention is the prominent placement of both Twitter and Facebook tabs in the bottom communications module, right next to one for Windows Live.

This allows users to update their status and get instant access to the status of friends and followers.

“We wanted to cut the clutter, while also giving users one convenient place to find what they need quickly,” said Scott Moore, executive producer of MSN in the U.S., its most important market, in an interview earlier today with me.

“People are overloaded with information and they wanted us to fix that, even if the service is not ours.”

The focus on Facebook and Twitter was simply due to intense user interest in the popular social networking sites.

“Facebook has popped and Twitter was really growing,” said Moore, who noted that there was the possibility of adding other third-party apps in the future.

A heavy emphasis on apps was a key strategy of Yahoo’s homepage redesign, officially launched in late July, which SVP Tapan Bhat touted at an meeting with analysts last week as having increased page views and engagement.

Advertising on the page is perhaps the most conservative part, with units that remain largely as before.

The new MSN homepage will begin rolling out now, eventually reaching about 10 percent of users by early next year. After that, it is expected to become widely available to U.S. customers and then go worldwide.

Here are screenshots of the changes to peruse (click on top three images to make them larger):

Old Homepage:

New Homepage:

Local Edition:

Twitter Section:

Facebook Section:

And here is the official Microsoft press release:

New MSN Designed to Be the Best Home Page on the Web

Fresh, new design delivers best of Bing, latest in news and entertainment, instant access to Facebook and Twitter, and customized local information in one place.

REDMOND, Wash.–Nov. 3, 2009–Microsoft Corp. today unveiled a preview of its most significant home page redesign in over a decade. The new MSN home page is designed to be the best home page on the Web, with powerful Bing search, the top news and hottest entertainment, and some of the most popular social networks–all in a fresh new look. The new home page will deliver comprehensive local information from the new MSN local information offering, MSN Local Edition, also unveiled today. Beginning today, anyone can preview the new home page at http://preview.msn.com. The new home page will begin rolling out today and become widely available to U.S. customers early next year.

Ninety percent of people surveyed find home pages such as MSN to be valuable, and they like the convenience of a comprehensive site.* Nearly 100 million people in the U.S. visit MSN every single month, and MSN added over 10 million new customers in the last year alone. However, today’s sites often fall short of top customer needs and many haven’t kept up with evolving trends. Extensive customer research highlights that people want less clutter and easier access to information and services they care about, including search services that help them make decisions easier and faster.

“Now is the time to clean up the mess on the Web–people need less clutter and less hassle to find what matters most to them,” said Erik Jorgensen, corporate vice president, Microsoft. “Microsoft is uniquely invested in search, media experiences and technical innovation. Combining these assets to deliver our new MSN home page is a tremendous win for customers and advertisers.”

The clean, new MSN home page cuts through the clutter with 50 percent fewer links than the previous home page and a simplified navigation across news, entertainment, sports, money and lifestyle. The new MSN home page also embraces the latest customer trends by deeply integrating powerful search from Bing and providing easy access to Facebook, Twitter and Windows Live services, comprehensive local information and in-line video. Sophisticated technology powers the home page to deliver personally relevant information, and improved performance satisfies people’s need for speed.

New key features of the MSN home page include these:

* Innovative search technology from Bing. Deeper Bing integration on the new home page helps people make faster and more informed decisions and easily find the information they want from anywhere on the Web. Bing is deeply integrated as the core search service throughout the home page via key areas such as shopping, travel and local, and as a way of highlighting hot topics, trends or people.

* Information and news people care about. The new home page delivers against the No. 1 customer request–simplicity and ease of use–through its fresh design and smart categorization. In-line high-quality, top news and hot entertainment from trustworthy sources such as MSNBC, FOX Sports, Hulu and Hearst, and comprehensive local information provide a compelling one-stop shop for people to use as their home base online. More in-depth local information is offered on the new MSN Local Edition, which is the only local online source that smartly combines media with Bing search and provides access to real-time community news that is grouped by ZIP code.

* Convenient ways to communicate. Simplicity drove the clean integration of popular social networks, such as Facebook, Twitter and Windows Live “What’s New,” which aggregates up to 50 Web activities, including Yelp, Flickr, Pandora and more, onto the MSN home page. People no longer have to jump from site to site to update their status, tweets or see what their friends are up to; the new home page makes it easy to view and update in-line.

“Customers told us they want the latest information from their favorite sources, their friends and the breadth of the Web–and the new MSN home page delivers via a fresh new look and new features,” Jorgensen said. “Today is an important transformation for MSN, and it’s just the beginning.”

MSN's Bob Visse Talks About Homepage Redesign (Plus Microsoft's Videos With Designer and Execs)

Kara Swisher — Wed, 04 Nov 2009 04:14:38 +0000

Here is a video interview BoomTown did with Bob Visse, GM of MSN Product Management today at Microsoft (MSFT) offices in San Francisco.

The new MSN homepage debuts tonight with a redesign cutting clutter, adding the ability to access both top social networking sites Facebook and Twitter, a local focus and with Microsoft’s new Bing search service everywhere.

But, as you can see from the logo above, the MSN butterfly logo remains, although it’s slimmed down too.

(Read all about the details here.)

The launch is the first major upgrade of the MSN main page in a decade, part of an overall rehaul that the software giant has been doing throughout its money-losing online services division.

Here’s Visse talking about the new MSN homepage, as well as two video interviews that Microsoft did with MSN Designer Wende Copfer, as well as MSN Corporate VP Erik Jorgensen, MSN U.S. head Scott Moore and Cyrus Krohn, who leads local programming strategy.

Here are the videos:

MSN’s Bob Visse:

[ See post to watch video ]

MSN Designer Wende Copfer:

MSN Execs Erik Jorgensen and Scott Moore:

MSN’s Local Lead Cyrus Krohn:

And You Thought Ask.com Had an Annoying Jingle–Try "Bing Goes the Internet"

Kara Swisher — Mon, 02 Nov 2009 09:38:31 +0000

Now, BoomTown likes a good jingle as much as anyone else, but this new one from Microsoft’s Bing search service is sticking in my head like a piece of chewed gum.

Shot at Keith Valley Middle School in Horsham, Pa., it uses 400 very adorable sixth graders, who are dragooned into one very large “Bing Goes the Internet” dance–complete with logo wear. The kids rock, the advertising jingle not so much.

They are using the winning entry in the Bing jingle contest, by Jonathan Mann.

I must say, regretfully, stick with vampires, Microsoft (MSFT).

In any case, here’s the video, as well as one of the super-duper, migraine-inducing “I Do! I Do!” television commercials from Ask.com–a unit of InterActiveCorp (IACI)–below it: