BoomTown » Peter Kafka

AOL Layoff Package: You Stay, You Pay

Kara Swisher — Thu, 19 Nov 2009 20:25:29 +0000

BoomTown has learned that AOL is offering those who “volunteer” to leave the company now a departure package that ranges from three to nine months of pay, compared to one to four months for employees laid off in the first quarter of next year.

It’s a depressing rock-and-a-hard-place choice.

An AOL spokesperson confirmed the offer, which is part of a massive layoff of 2,500 of its 6,000-person workforce.

Earlier today, AOL said it would be letting go a big chunk of its staff, a third of its payroll, in a regulatory filing.

As reported by MediaMemo’s Peter Kafka:

The voluntary layoff program begins Dec. 4, a few days before the company spins off from Time Warner (TWX). If AOL doesn’t get enough volunteers, it will ax people on its own.

This is lousy news for employees, who are faced with a “jump now or wait to be pushed” decision, but it is designed to cheer investors: AOL says the cuts will drop its annual operating expenses by $300 million. Through the first nine months of this year, AOL’s operating expenses ran around $1.8 billion.

The Yahoo Ad Campaign Creative We'd Like to See

Kara Swisher — Wed, 23 Sep 2009 00:41:13 +0000

Yahoo introduced its new $100 million marketing and branding campaign in New York today with “It’s Y!ou” as the new motto, making use of the Internet giant’s famous exclamation point.

Sure, it’s clever and all, but BoomTown felt the need to jump in and help Yahoo (YHOO), since our posts have been a little tough when it has come to the Silicon Valley icon’s tumultuous ride over the last two years.

So, while CEO Carol Bartz (pictured above as a giant lady on the Nasdaq Jumbotron in Times Square) explained–as reported by MediaMemo’s Peter Kafka–that “Yahoo is the only site where you when you wake up in the morning and you want to know what’s going on everywhere about everything, you can find it one place,” I’d say there’s more to the brand that just that!

In fact, there’s Bartz herself, a sassy and ofttimes salty exec whose pugnacious utterances have become legend quickly.

Today, for example, when asked about a comparison with its search rival, she noted, “Why not be cynical about fricking Google?”

That was mild in comparison to her cursing me out at the seventh D: All Things Digital conference when she thought I was insinuating she was too old to be an Internet exec (you can see that exchange in the video below).

Thus, please take a gander at our branding effort for Yahoo below.

(While Yahoo has Ogilvy & Mather to do its work, ATD has the very clever Photoshop stylings of Digital Daily’s John Paczkowski to work our marketing magic.)

Best of all, you can switch out the picture and moniker to denote any Yahoo foe–Google (GOOG); Microsoft (MSFT) CEO Steve Ballmer if he does not behave in the new search-partnership deal; billionaire investor and Yahoo board member Carl Icahn; and more!

Fondly dedicated to Carol–and the rest of the Yahoo crew, especially Judy–here’s our ad (click on the image to make it larger):

And here is Bartz in action at D7, cussing me out at 00:57 in the video of the interview:

[ See post to watch video ]

Sale of iLike to MySpace–$13.5 Million in Cash, $6 Million for Talent Retention–Delayed Over Tax Issues (Really!)…Plus, the List of Other Suitors!

Kara Swisher — Tue, 18 Aug 2009 06:25:06 +0000

The board of iLike planned a meeting earlier tonight to go over a buyout offer by MySpace, several sources close to the situation said. But it was suddenly canceled because of some thorny tax implications related to the talent-retention part of the deal to purchase the social music start-up.

This does not mean the pending acquisition is in jeopardy, sources said, and it could be on track to be signed as early as today, barring any more complications.

That is what both iLike and MySpace execs are hoping, said sources, one of whom described the outstanding issues as a “technicality.”

What’s also been unclear is the actual price the social networking giant is paying for iLike, which has been reported as about $20 million.

In fact, only $13.5 million will be paid upfront in cash, with about $8 million of that money likely going to one of its major shareholders, Ticketmaster Entertainment (TKTM), due to its preferred shares.

Another $6 million has been promised by MySpace in forward payments to retain some key employees–including iLike co-founders and twin brothers Ali and Hadi Partovi.

Although those employees can remain in Seattle, where iLike has its HQ, they must stay employed at Beverly Hills, Calif.-based MySpace for two and a half years to get their money.

It’s that talent part of the deal that caused the Partovis to cancel the iLike board meeting, which they explained to key investors was necessary due to some confusion over how the money paid to these employees would be taxed.

A person briefed on the issue said that if it was taxed as compensation, it would have a much higher tax rate than if it were considered long-term capital gains.

The Partovis said in the email that they were working on the problem with their advisers on the sale, Allen & Co., as well as with lawyers and accountants.

Tax snafus in the middle of a sale are not exactly the way the entrepreneurial Partovis envisioned it was going to go for iLike (see my various video interview related to iLike below) when they created the compelling music sharing and recommendation service in 2006.

After only a few years, the innovative start-up claims it has 50 million registered users overall.

A lot of that growth was due to iLike quickly becoming one of the most popular widgets on social networking sites like Facebook, where it has also been the top music application, with 10 million active monthly users.

The Partovis–who once were close with execs at Facebook (see my party video below), particularly founder and CEO Mark Zuckerberg–placed great faith in its growth lifting all Web 2.0 boats.

It did not turn out that way, though, especially from the important financial point of view, and iLike scrambled to diversify.

The iLike service recently began offering a music downloading service, for example, as well as other such features, all of which would be attractive to the music-centric focus at MySpace.

Once an Internet sensation, MySpace has been struggling to restructure itself after losing momentum and buzz in recent years, as well as a huge advertising revenue drop in its most recent quarter.

Its owner, News Corp. (NWS), replaced its founders with new management four months ago, including former Facebook exec Owen Van Natta as CEO.

After making major staff layoffs and rejiggering management, Van Natta and his new team have been working on an overhaul of the MySpace product and seem to be refocusing it to become a global music and entertainment service.

MySpace also has a joint venture with major music labels, MySpace Music, which has been trying to attract consumers and build a viable business. Sources said MySpace Music could also buy into the iLike deal or simply license its technology to improve its features.

Thus, purchasing iLike would fit in well with MySpace’s overall plans.

And iLike has also been in need of a fix itself.

For all its popularity, especially on Facebook, it has moved slowly toward profitabilty, and its $17 million in funding has been dwindling, as has its viability as a standalone company.

Back in more frothy Web 2.0 days, iLike’s generous funding gave it a valuation of more than $50 million, which has also lost steam over time and as the economy has worsened.

In the last quarter of fiscal 2008, for example, Ticketmaster wrote down its $13 million investment by $6 million.

Tensions between its execs and iLike have gotten worse over time, although some thought at one time that Ticketmaster would buy iLike.

No longer, which is why the founders turned to Allen & Co., as MediaMemo reported as far back as November, to find another big investor or buyer.

Wrote Peter Kafka: “Delivering free music on the Web has so far proven to be a high-cost, low-revenue endeavor…”

So, the New York deal-making firm ginned up a small group of suitors, which included Facebook, Activision Blizzard (ATVI) and Microsoft (MSFT), as well as MySpace.

Of the three, Activision was most serious, with interest in integrating iLike’s community and technology tools with its Guitar Hero franchise.

But Activision never actually made a formal bid, said sources.

Both Microsoft and Facebook also considered the purchase, but sources said they would only offer stock in a deal. But iLike wanted cash in the deal.

The Partovis were also was wary about working at either place.

Both Partovis, for example, had worked at Microsoft (Ali after selling it LinkExchange in 1998 for $265 million; Hadi several times, once following Microsoft’s acquisition of Tellme Networks, which he co-founded).

As it has turned out, in its short life, iLike’s last, best alternative is apparently MySpace.

“Look, iLike has been shopped around for a while, and while the team and technology are great, it only has one choice and that’s to be sold,” said one person involved in the various scenarios. “The question for the buyer then is whether it was worth it to pay up or just move on and do it ourselves.”

So until the bean counters settle this IRS nightmare, here is my video interview with Hadi Partovi about a year ago at iLike’s HQ in the Capitol Hill section of Seattle, when times were a little more hopeful:

[ See post to watch video ]

And here is a very dark and very shaky video I did when iLike threw a fete in Silicon Valley to celebrate its start-up two years ago and to send some appreciation in Facebook’s direction–it is so dated that Facebook COO Sheryl Sandberg, who is in the video, is still at Google (GOOG).

(Full Disclosure: News Corp. also owns Dow Jones, which owns this site.)

Walt Mossberg? We've Got an App for That!

Kara Swisher — Mon, 18 May 2009 03:09:09 +0000

That would be Walt Mossberg and his well-known Personal Technology and Mossberg Mailbox columns–as well as BoomTown, John Paczkowski’s Digital Daily, Peter Kafka’s MediaMemo, Katherine Boehret’s Mossberg Solution and video and photographs from our famous D: All Things Digital conferences.

Today, All Things Digital is introducing its very own app for Apple’s iPhone and the iPod touch, offering all the posts and columns you get on this Web site–including news, product reviews, analysis and video–from our crack team.

Just smaller and cuter.

All free. All mobile. And completely designed to let you access ATD content 24/7/365, which is how we like it.

In addition, the app will allow users to post links directly to both Facebook and Twitter, because we also like you to overshare our content.

Developed by the amazing team at NewsGator–with additional heavy lifting by ATD staffers Christine Mohan, Adam Tow and Mossberg–for some months, the app was first available in…Latvia and London. Also France and Australia.

Frankly, we don’t grok the method Apple (AAPL) uses to globally spawn apps, but it has now reached the U.S. at the iTunes store. You can also get info about the app here on our site.

So download us and take us along everywhere you go–ATD really enjoys long walks on the beach.

Here is the full press release about our newest digital delivery at ATD:

ALL THINGS DIGITAL LAUNCHES MULTIMEDIA APPLICATION ON APPLE APP STORE

App for iPhone and iPod touch offers tech and media news, product reviews, analysis and video from Walt Mossberg, Kara Swisher, John Paczkowski, Peter Kafka and Katherine Boehret

SAN FRANCISCO, Calif. (May 18, 2009)–All Things Digital today announced the launch of a new iPhone™ and iPod touch® application on the Apple App store.

Co-edited by Wall Street Journal columnist Walt Mossberg and BoomTown blogger Kara Swisher, the AllThingsD.com site launched in 2007 as the online extension of the annual “D: All Things Digital” conference, started by Walt and Kara in 2003 and attended by the digital elite.

The app makes exclusive content from AllThingsD.com and the D conference available for iPhone and iPod touch with a range of features and tools including:

• Kara’s BoomTown, John Paczkowski’s Digital Daily and Peter Kafka’s MediaMemo blogs and video

• Walt’s Personal Technology and Mossberg’s Mailbox columns, his videos and his Mossblog

• Katherine Boehret’s Mossberg Solution column and videos

• Ability to post article links and text descriptions directly to Twitter and Facebook, or to email them to a friend

• Galleries of D conference videos and photos including the full 2007 historic joint appearance by Steve Jobs and Bill Gates

• Live D7 conference coverage throughout the May 26-28, 2009 event.

“At AllThingsD.com we strive to deliver news, reviews and commentary that are both accurate and entertaining. Our app offers the same quality experience, enhanced by engaging photos and daily video,” said Mossberg. “All Things Digital for the iPhone is a smart, streamlined mobile application that we know iPhone and iPod touch owners interested in technology and media will enjoy.”

Developed using the NewsGator iPhone Media Application Framework, the All Things Digital app is designed to contain all the news and reviews from the Web site. As on AllThingsD.com, each journalist’s section is identified by specific color schemes and headshots, including stylized icons that emphasize each writer’s personality and beat. Customized navigation enables users to choose their favorite sections and personalize the content.

Availability

The All Things Digital app is available for free from Apple’s App Store on iPhone and iPod touch or at www.itunes.com/appstore/. For more information, go to www.allthingsd.com/mobile/iPhone.

###

About All Things Digital

All Things Digital (www.allthingsd.com) is devoted to news, analysis and opinion on technology, the Internet and media. Co-edited by Walt Mossberg and Kara Swisher, the site is the online extension of the annual “D: All Things Digital” conference started by Walt and Kara in 2003 and attended by the digital elite. The site is a mix of columns, blogs and video including Walt’s Personal Technology, Kara’s BoomTown, John Paczkowski’s Digital Daily, Peter Kafka’s MediaMemo and Katherine Boehret’s Mossberg Solution. AllThingsD.com is part of The Wall Street Journal Digital Network which includes WSJ.com, MarketWatch.com and Barrons.com.

Apple, iPhone and iPod are trademarks of Apple Inc., registered in the U.S. and other countries.

Google Names Company Veteran Dennis Woodside to Replace Tim Armstrong as Ad Lead

Kara Swisher — Tue, 17 Mar 2009 23:16:09 +0000

That was fast.

Longtime–well, five years, which is a dog’s age at the search giant–Google sales exec Dennis Woodside (pictured here) will become VP, Americas Operations, replacing outgoing exec Tim Armstrong, who was named chairman and CEO of Time Warner (TWX) online unit AOL last week.

Woodside, 40, will start in the next few weeks, said Google (GOOG) in an internal communication about the appointment, as Armstrong transitions from Google to AOL. It is the key advertising sales job at Google.

Armstrong has already been hard at work at AOL, in fact, leading an employee rally today at its former HQ in Dulles, Viriginia, which included former AOL execs Steve Case and Ted Leonsis.

(And he will hold a similar meeting at AOL’s New York office tomorrow, BoomTown has been told. But let’s hope he does not roll out, say, former Time Warner CEO Jerry Levin, which would be taking this old-home-week stuff too far!)

While Woodside is a well-known exec within Google, his name was not as prominent in the speculation about which internal Googler would be named by CEO Eric Schmidt to replace the well-known Armstrong.

Wrote MediaMemo’s Peter Kafka last week, for example, when the Armstrong departure was announced:

“According to a (very informal) flash poll of Googlers, ex-Googlers and Google competitors I conducted last night, the answer should be obvious: David Rosenblatt, the former Doubleclick CEO, who now runs Google’s display business.”

Woodside will also have a slightly lesser title than Armstrong, who was a corporate SVP, was president of the America Operations and was also on Google’s powerful operating committee.

But that’s part of the changes, mentioned in a long statement by even bigger sales boss Omid Kordestani, SVP, Global Sales & Business Development, to whom Woodside will report (the key graph is the last one, although the golf dig is funny):

In the five and a half years that Dennis has been at Google (that’s over half our company’s lifetime) he’s brought incredible integrity and entrepreneurialism to everything he’s done. I remember Dennis setting off from Mountain View in 2005, a year and a half after he joined, to start our direct sales operations in Eastern Europe, which he quickly transformed into a substantial part of our business. He also set up our Inside Sales Operations in Dublin – again building it from scratch. In September 2006, he became our Vice President for the UK, Ireland and Benelux where he’s helped to create a first class team as well as establish very positive relationships with our big partners on both the advertiser and agency side, including 02, Marks & Spencer, Amazon and Omnicom.

Ever since I met Dennis in 2003, I have been impressed by his combination of entrepreneurialism and operational excellence. He’s never afraid to try new things and always ready to roll up his sleeves and pitch in–whether it means moving his desk to sit with the UK DSO team to see the operations first hand, or being the customers’ advocate internally to help product and engineering better understand market trends. Outside work he loves to do triathlons–though I would only recommend training with him if you don’t mind being out-run (if you are looking to beat him, try golf).

While we are all sorry to see Tim move on, change always brings new opportunities. We believe it’s now time not just to roll-out globally the best practices from the different regional sales teams–the Americas, EMEA and Asia Pacific–but also to tailor our business strategies more closely to the different situations we face in different countries (more mature versus less mature markets).

Live From CES, It's All Things Digital

Kara Swisher — Thu, 08 Jan 2009 22:30:59 +0000

BoomTown, MediaMemo, Personal Technology Godfather Walt Mossberg and Mossberg Solution columnist Katie Boehret traveled to Las Vegas this week for the Consumer Electronics Show. They’re navigating the crowds in order to bring you the most important, the most interesting and the most entertaining moments of the CES melee. They’ll probably have some interesting tidbits about boring stuff as well. All CES coverage from AllThingsDigital.com will be centralized here, and updated frequently throughout the day(s).

TiVo Las Vegas: Walt, Katie, Peter and BoomTown Head to CES

Kara Swisher — Wed, 07 Jan 2009 18:00:25 +0000

With Macworld out of the way (basic verdict: Phil Schiller did not bomb), a chunk of the crack All Things Digital squad is now winging its way both east and west to the annual gadgetopocalypse in Las Vegas, a.k.a. the Consumer Electronics Show.

Despite the fact that the show is feeling the pinch of the economy–I was able to get a better room at a cheaper price last night, which was unheard of in the past–and that there are really no big products to speak of, except perhaps the new Palm (PALM) smartphone, CES is still one of the biggest and most important gatherings of the tech year.

Las Vegas turns into a geek moshpit every year–with the spicier pornies thrown in, with that industry’s convention also taking place at the same time–as legions of vendors, buyers, press and others converge to be overwhelmed for days by noise, long lines for cabs, keynotes, demos and more.

That also means the ATD team, including: Walt Mossberg, who gets the kind of attention from techies at CES normally reserved for Brangelina; Mossberg Solution columnist Katherine Boehret, who trolls the convention center floor looking for cool new products; MediaMemo’s Peter Kafka, who has scheduled himself to the gills; and me, who has not.

Still, there will be parties thrown by Facebook, CBS (CBS) and more to attend, a cornucopia of gadgetry to try and panels to moderate (I am manning one supersession called, I kid you not: “What Will They Think of Next? Consumer Technology in 2025″).

Also, I’ll be honest, gambling at the Pussycat Dolls Lounge with a passel of nerds.

Between the hands of poker, look for our ongoing coverage over the next few days, including interviews, videos and news (we hope!).

It will all begin tonight with coverage of Microsoft CEO Steve Ballmer’s preshow opening keynote, taking over from longtime first-nighter Bill Gates.

Until then, here is the fabulous Ann-Margret doing a mean bugaloo in “Viva Las Vegas” (the Pussycat Dolls have nothing on her) with super-handsome-phase Elvis Presley singing like a dream:

Video Scenes From YouTube Live: Obama Girl, Chad Hurley and Free Hugs

Kara Swisher — Mon, 24 Nov 2008 08:01:03 +0000

Here’s a video I did while attending YouTube Live on Saturday–well, live–at the Herbst Pavilion at the Fort Mason Center, right on the San Francisco Bay.

The last time I had attended a big tech industry event here, it was the launch of Windows 97 from Microsoft (MSFT)–which was quite a different scene than this entertaining but freaky show, in which online celebrities jumped a little shakily into the analog world.

Let me just say, online celebrities make real-world ones seem 1,000 percent more interesting. But there is also a homespun sweetness to them too and a look-at-me striving that can be downright heartbreaking.

YouTube Live was the online video giant’s “first ever official live community celebration” and also its first try at a live-streamed event. The YouTube Live broadcast online drew about 700,000 viewers at its peak.

As such, as Peter Kafka of MediaMemo notes: “That is almost certainly a record for a Web-only event. But it’s a nonevent by mainstream entertainment standards.”

I am not sure big ratings were the point, though. Nonetheless, the show did attract a passel of Internet stars, including YouTube Founder Chad Hurley, who sat with Google Co-Founders Larry Page and Sergey Brin right up front. Google (GOOG) owns YouTube.

Here is a video of the event, including an interview I did with Obama Girl, as well as Hurley, and also some snippets of the professional performers (Katy Perry, Will.I.Am and Akon) and a passel of online celebs (including the “Free Hugs” and “Will It Blend” guys) appearing onstage:

[ See post to watch video ]

Please see this disclosure related to me and YouTube (which is owned by Google).

The ATD Annual Meatfest: The Econalypse Edition

Kara Swisher — Mon, 17 Nov 2008 09:50:13 +0000

Here’s a lovely video from a dinner All Things Digital held last night for the staff of both our annual D: All Things Digital conference and the AllThingsD.com Web site.

It’s a yearly event where Walt Mossberg and I gather our staff to talk about the upcoming year and plans going forward.

The site just added a new New York-based writer, Peter Kafka, as well as a director of operations (also for the conference), Christine Mohan, who is also in New York.

And D7 takes place in late May again, and we are already at work on another stellar lineup, as well as moving forward with a possible European version of the conference–EuroD–for fall of 2009.

But, before that, there’s ribs to eat.

Here’s the video:

[ See post to watch video ]

Peter Kafka Takes On the Mediamorphosis in New ATD MediaMemo Blog

Kara Swisher — Mon, 27 Oct 2008 10:10:27 +0000

BoomTown just could not resist making the obvious literary pun on the debut of Peter Kafka’s new daily blog, MediaMemo, on AllThingsD.com.

(He is pictured here.)

For those who were not dragooned into reading existentialist writers in college, I am referencing “Metamorphosis,” about a man who turns into a bug–except that the process is fraught with so much more meaning.

And thus it will be in Peter’s column, as the most excellent writer and reporter plunges into the topic–as he writes in his first explanatory post–of “the ongoing battle between the established media business and the technology that is reshaping it day by day.”

It is transformative, to say the least, from someone who will lead you through it with the kinds of standards, accuracy, great writing and insight that I hope you have come to expect from this site.

While Peter’s impending arrival to ATD was announced in mid-September, he actually debuts today and will be posting many times daily.

As I have previously written, Walt Mossberg and I have long wanted to bring in someone located on the East Coast and away from the echo chamber that Silicon Valley can be, because we both feel the ongoing digital revolution is taking place over a number of key industries all over this country and the world.

With extensive connections across the media, advertising, entertainment and tech sectors, Peter will be doing original reporting, getting scoops, doing interviews, making videos and providing much needed and clear-headed analysis that he is so well-known for.

Peter has been working at Silicon Alley Insider, most recently as its managing editor, since mid-2007. The first hire at the start-up tech business analysis site, he has focused on enterprise and beat reporting, as well as breaking news.

Previously, he spent 10 years as a reporter and editor at Forbes and Forbes.com covering media and technology. (You can read more of his bio here, along with his ethics statement.)

Walt and I are thrilled that Peter is coming onboard to join the rest of the strong ATD team, which includes: John Paczkowski, author of the rocking Digital Daily column, who formerly wrote the award-winning blog, “Good Morning Silicon Valley” at the San Jose Mercury News; and Wall Street Journal reporter Katherine Boehret, who writes the most excellent weekly Mossberg Solution column.

And we hope you will soon find–via following Peter regularly–why we are so very excited to welcome MediaMemo to the site.

Will Yahoo and AOL Ever Stop Talking and Make a Deal? (In Related News, Generalissimo Francisco Franco Is Still Dead.)

Kara Swisher — Tue, 07 Oct 2008 07:11:50 +0000

Back in the first season of “Saturday Night Live,” one running catchphrase uttered by Chevy Chase would always crack the then-12-year-old BoomTown right up: “This breaking news just in: Generalissimo Francisco Franco is still dead.”

It’s that same kind of extreme déjà vu I feel with the continuing drip-drip-drip of the news-less news that Time Warner’s AOL and Yahoo are still talking about a merger.

Both Silicon Alley Insider’s (and soon-to-be AllThingsD.com blogger) Peter Kafka and I wrote extensively about the talks on in mid-September, noting that the discussions centered around merging AOL’s content, advertising and software assets with Yahoo (minus the access business).

There were the price issues–Yahoo wanted to pay between $6 and $8 billion, while Time Warner has long wanted $10 billion–as well as the worries about integration (East Coasties versus West Coasties) and email dominance monopoly problems.

As I wrote on Sept. 23, for example:

That support will be especially important if Yahoo tries to buy AOL, which it is again strongly considering as a way to bolster its ad business, international portfolio and email and content offerings.

Several sources I have spoken to recently have said that Yahoo leadership is very interested in doing such a deal, although not at the $10 billion price tag that Time Warner wants. (Think half and add a little more.)

In addition, there are some daunting regulatory and integration issues–AOL and Yahoo email and messaging combo would be a giant in the space, and the HQs of the companies are on opposite coasts.

But, the deal would give Yahoo some more experienced executives it needs and make it more attractive to others who might not consider going to Yahoo in its present state.

Yang had been pinging a lot of execs over the last year and has had little uptake.

But a stronger and more flexible Yahoo–i.e., it knows it has to change dramatically–would surely be more enticing, especially in a down economy.”

Now comes yet another story yesterday from TechCrunch that the talks are–wait for it–still on.

The story recounted similar details and added even older ideas from previously reported AOL-Yahoo talks (some multi-billion-dollar cash infusion from Time Warner, for example).

And, said TechCrunch, it could happen this month!

Good gracious–October is, like, a really long month. And, if not October, I guess November is good or maybe December. Hey, what about 2009?

Actually, what everyone really would like to know is what the heck is taking Time Warner (TWX) and Yahoo (YHOO) so long, hashing over the same issues (price mostly), especially if it is such a stellar idea?

And, with the economy crashing all around and Yahoo’s and Time Warner’s stock hitting five-year lows, one has to wonder what, exactly, the pair are waiting for?

A more fortuitous reading of the entrails? A sign from the heavens? Better winds?

Well, I hate to inform Time Warner CEO Jeff Bewkes and Yahoo CEO Jerry Yang, but the tide is not turning anytime soon, and both their companies are getting weaker by the minute.

I once called the pairing of AOL and Yahoo a little like leaning two drunks against each other to keep them from toppling over.

Looking back, I will admit that was a little harsh.

Given the stakes now, though–and especially if Yahoo has to abandon its controversial search ad outsourcing deal with Google (GOOG)–it makes sense to combine forces.

In the online ad space, for example, Yahoo and AOL mostly complement each other. The same is true in email and communications tools. And, while Bebo is not the prize Time Warner touted it as, despite paying a king’s ransom for it, Yahoo has no social-networking property.

The only area of true overlap is in content. Here, based on many sources, I would imagine if a deal is ever struck that Yahoo will slash and burn most of AOL-branded properties, keeping only interesting newer brands like sports blog FanHouse, celeb blog TMZ and the Engadget, Tuaw and JoyStiq tech blogs.

And, in fact, if the pair even gets its act together–this or next week would be great for us–it will give them the much-needed impetus to start making the massive cuts needed at both Web outfits for a long time now.

In that regard, look for an AOL exec like its President Ron Grant to be buttonholed to swing that particular ax.

Yahoo, with its less confrontational culture, has never been good at that kind of thing. For all its many flaws, it is a talent AOL will surely bring to the party.

If, of course, Yahoo and AOL ever manage to throw one before they become too much like Generalissimo Franco.

You know: Still dead.

Live From New York: ATD Hires Peter Kafka to Pen a New Media and Advertising Blog

Kara Swisher — Thu, 18 Sep 2008 07:11:58 +0000

Although we did not raid the offices of Silicon Alley Insider and “steal” Peter Kafka, as the fanciful SAI kingpin Henry Blodget alleges–had it been a raid, BoomTown would have properly hog-tied Blodget so he could not make such spurious allegations!–it is true that SAI’s current managing editor (pictured here) will be coming to work for us at AllThingD.com soon.

Indeed, Walt Mossberg and I, as well as the rest of the ATD team, are thrilled that Peter is coming onboard at the end of October. He will write a daily still-unnamed new media blog from New York City.

Walt and I have long wanted to bring in someone located on the East Coast and away from the echo chamber that Silicon Valley can be, because we both feel the ongoing digital revolution is taking place over a number of key industries all over this country and the world.

Peter was our first choice and has been on my must-read list since I began this blog. He is sharp, witty, confident and has the kind of reporting and writing chops that we think are key to giving readers high-quality, standards-based content they can trust.

Peter has worked at SAI since mid-2007. The first hire at the start-up tech business analysis site, he has focused on enterprise and beat reporting, as well as breaking news.

Previously, he spent 10 years as a reporter and editor at Forbes and Forbes.com covering media and technology. There he launched two tech columns, coordinated the video staff and represented Forbes on industry panels and in TV appearances for CNN, BBC and CNBC.

Peter was also a staff reporter with City Business in Minneapolis and a staff writer for the Minnesota Real Estate Journal in Bloomington from 1993 to 1997. Earlier, he was a stringer with the Milwaukee Journal and the Milwaukee Sentinel in Madison, Wis.

He holds a bachelor of arts from the University of Wisconsin and resides in Brooklyn, NY.

More importantly, Peter is a newly-minted father, which should give him more practice in prolonged sleep deprivation needed for his blogging.

He will begin at ATD on Oct. 27.

Along with Walt and me, Peter joins senior news editor John Paczkowski, author of the rocking Digital Daily column, who formerly wrote the award-winning blog, “Good Morning Silicon Valley” at the San Jose Mercury News, and Wall Street Journal reporter Katherine Boehret, who writes the most excellent weekly Mossberg Solution column.

We hope you are as thrilled as we are that Peter is coming soon to the ATD site.

(And if you want a little taste of Peter’s work, here’s a post he did yesterday on an appearance by Time Warner’s Jeff Bewkes at the Goldman Sachs media conference and another on Rupert Murdoch of News Corp. [News Corp. is the owner of Dow Jones and of this Web site].)