All Things Digital

One thing is absolutely true: It is Microsoft CEO Steve Ballmer and only Ballmer who knows for sure whom he is most interested in to take over the dicey job of head of the software giant’s long-suffering online services business.

But there is a movement afoot among its developers and other execs at Microsoft (MSFT) to push for Chief Software Architect Ray Ozzie (pictured here), who replaced Founder Bill Gates in the job just over two years ago.

Ozzie’s role at Microsoft has been to think the big thoughts about where computing is going, and he has been integral to the company’s vision of providing “software plus services.”

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Over the last two days, BoomTown has been enjoying the perfect Pacific Northwest summer weather, visiting several Seattle-based Internet companies and also Microsoft HQ in nearby Redmond.

Seattle is still essentially Silicon Valley North, except a lot more laid back and with much less of an egregiously opportunistic, what’s-the-next- hot-start-up tone one feels any day of the week in Palo Alto.

I used to come to Washington state a lot about a decade ago, while covering Microsoft’s MSN, RealNetworks (RNWK) and Amazon (AMZN)–which continue to be the major trio of digital bigwigs here–as the Internet beat reporter at The Wall Street Journal.

I plan on coming back a lot more over the next year, focusing more closely on Microsoft’s (MSFT) still uncertain Web efforts and also on a wide range of other companies here.

So far, it seems to be off to a good start.

While here I had a blabby dinner with RealNetworks’ Rob Glaser, where we talked about online games and music and Sen. Barack Obama (Glaser is a big supporter).

I also went to see Delve Networks (or, as I like to call it–Not-Brightcove), social networking facilitator WetPaint and the music social networking service iLike (which I really like).

Also on the agenda was a day-long visit to Microsoft, to get updated on some thankfully non-Yahoo products and services and what the company’s research and Live Labs units are working on.

Of course, there was Yahoo talk too, but–even up here–it’s hard to avoid.

All this and more will be part of postings and videos next week in this column on what the geeks in this coffee-inundated city are up to.

So what other Web media company facing a hostile investor does CNET remind you of?

Disgruntled investors, a troubled Web 1.0 company whose management is recalcitrant to give in, an obviously powerful, but underutilized, set of assets.

The acquisition of CNET (CNET) by CBS (CBS) for $1.8 billion in cash is the happy ending of this scenario and, on first blush, I like it.

It is a fair price, but not excessive for CBS, which gets one of the highly trafficked sites in the tech news sector.

And it gives CNET–which was too big and yet not big enough to really move its own needle–cover from its shareholder attacks to make the kinds of changes to its business and products that it should have been making for a long time now.

Yahoo (YHOO), a much bigger deal, needs exactly this kind of resolution and soon, as its continued turmoil is hurting its prospects of returning to power.

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