BoomTown » Yahoo

MSN Head Greg Nelson Moves to MicroHoo Integration Role (Yahoo Picks Morrissey)

Kara Swisher — Thu, 19 Nov 2009 19:03:37 +0000

Greg Nelson (pictured here), who has had the thankless job of running MSN for Microsoft, has left that position and been given the even more thankless task of running the integration of the complex search and online advertising partnership struck by the software giant and Yahoo.

Microsoft (MSFT) sent out an internal email to staff about the move for the GM of MSN’s Global Media Group, which has already taken place.

MSN U.S. head Scott Moore is now reporting directly to MSN Corporate VP Erik Jorgensen. So will Brett Wayn, who has been working under Nelson on international coordination and who has taken over MSN’s international business on an interim basis.

Nelson’s counterpart at Yahoo (YHOO), according to sources, will be Mark Morrissey (pictured here), who is currently SVP of Products at the Internet giant.

The pair will have their hands full in what will ultimately be a two-year effort, sources estimate, to try to improve their competitive edge against Google (GOOG) in the search arena.

BoomTown’s title for the relationship: A Couple of White Geek Guys Sitting Around Arguing!

The role includes coordinating a massive shift of engineering talent from Yahoo to Microsoft, making sure ad systems are copacetic and most of all, smoothing over what is likely to be a number of bumps in the partnership.

To help make the frustrations less frustrating, there is a $50 million annual payment to Yahoo by Microsoft for three years, for unspecified “transition and implementation costs.”

At least 400 Yahoo employees will be hired by Microsoft, which will also provide funds for retention packages to keep 150 more Yahoos motivated during the transition.

The “Definitive Agreement” between the Silicon Valley company and the Redmond, Wash.-based Microsoft, which had been slated to be signed by Oct. 27, 2009, is about to be completed.

Then, as soon as regulatory approvals are in place, it will be showtime for Nelson and Morrissey.

Yahoo Hires Amber Allman as New D.C. Director of Public Affairs

Kara Swisher — Thu, 19 Nov 2009 05:18:59 +0000

Earlier today, BoomTown reported that Yahoo was poised to name a few new top execs at its Silicon Valley HQ.

But the company has also hired a new director of public affairs in the nation’s capital.

After I queried the company, Yahoo (YHOO) confirmed that it has tapped Amber Allman, a vice president at 463 Communications, for the job. She has extensive tech experience.

“We are very pleased that she is coming on board,” said Nina Blackwell, senior director of global public affairs, who will be Allman’s boss. “She will be a very valuable member of the team.

Yahoo’s last public affairs rep in D.C. was the most excellent Tracy Schmaler, who left Yahoo earlier this year.

At Yahoo, she worked on everything from human rights issues in China to the failed takeover attempt by Microsoft (MSFT) to Yahoo’s also-botched effort to do a search and advertising deal with search giant Google (GOOG).

Ironically, Schmaler is now deputy director, Office of Public Affairs, at the Justice Department, which is currently scrutinizing Yahoo’s search and ad partnership with Microsoft.

Ah, the revolving doors of Washington, D.C.!

Yahoo's Bartz Shuffles the Exec Deck, Filling Audience and Other Top Slot; Is the Board Next for a Makeover?

Kara Swisher — Wed, 18 Nov 2009 22:00:16 +0000

Yahoo CEO Carol Bartz is making the most substantive changes in her exec ranks since she did a massive restructuring of its staff in late February, according to sources close to the situation.

“She is continuing to clean the place up,” said one top exec about the moves, which are likely to be announced internally tomorrow.

Among the shifts in management will be filling the slot left by the departure of North American Audience head Jeff Dossett in May.

UPDATE: Sources say Yahoo’s head of mobile, David Ko, will get the job of top Audience exec, although it is not clear if he will have the same portfolio has former media heads at Yahoo.

Since Dossett left, his job has been split between Jimmy Pitaro, who runs Vertical Audience Experiences, and Tim Mayer, who is in charge of Search & Social Applications. They both currently report to U.S. EVP Hilary Schneider.

The job of Audience head is a key role, given that Yahoo’s powerful media properties are among its most valuable assets. In recent months, Yahoo has made some major changes in the way it creates its juggernaut News property.

Also to be filled is the job being done by Corporate Partnership SVP Jim Schinella, who, as BoomTown previously reported, is set to leave at the end of the year.

I could not determine who will take Schinella’s job, inside or out.

Interestingly, Yahoo has yet to name an international head.

Sources said the company had filled the position, using a headhunter, but the London-based media exec candidate backed out at the last minute. That meant Yahoo had to restart its search.

There might also be other top exec changes, all part of Bartz’s consolidation of power at Yahoo. She has named a spate of new top execs from outside, but has also kept some from the regime of former CEO and co-founder Jerry Yang.

These staffing moves have come even as a stream of execs continued to depart the Silicon Valley Internet giant, including, most recently, Mike Walrath, who was SVP of advertising strategy. Walrath had led Right Media, the online ad exchange Yahoo bought for $680 million in 2007.

Walrath was widely expected to leave Yahoo in July, at the completion of his earnout from the acquisition, sources said, so the move was more sudden than expected internally.

Sources noted that Bartz moved Walrath’s departure forward in order to announce a new strategy for Right Media focused on premium publishers and to dump those ad networks and publishers of lesser ilk.

Whether this will stop the competitive onslaught in the ad exchange space is an open question given that Google has entered the fray significantly and that Facebook is widely expected to bolster its efforts.

Lastly, several sources said that there are also likely to be more changes on Yahoo’s board, which has seen the departure of two members recently.

In September, Maggie Wilderotter said she would leave the board by year’s end. And former Yahoo nemesis and investor Carl Icahn left the board in late October.

Whether Yahoo will replace them or keep its current size of 10 directors is not clear.

Also possible, several sources said, would be Bartz taking the chairman title, which is currently held by Roy Bostock. Bostock, along with Yang, played a key role in its botched takeover battle with Microsoft (MSFT).

Bartz finally successfully struck a sweeping search and advertising partnership with the software giant this summer, which is moving closer to being launched.

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.

Center for Digital Democracy's Jeff Chester Talks About MicroHoo and More!

Kara Swisher — Wed, 18 Nov 2009 16:55:03 +0000

While in Washington, D.C., BoomTown can’t just visit the policy wonks from Internet companies (such as my Facebook how-do-you-do here), so I hightailed it several hundred feet and directly across Connecticut Avenue NW to visit with Jeff Chester.

For those who don’t know him, Chester is the executive director of the Center for Digital Democracy, a nonprofit consumer advocacy group that works to promote privacy and protection online.

In other words, a professional–and much needed–thorn in the side of Facebook, Google (GOOG) and these days, MicroHoo.

That’s because, while advertisers and publishers are supportive of the massive search and online advertising deal between Microsoft (MSFT) and Yahoo (YHOO)–which now looks close to being launched–Chester has a more whoa-nelly attitude.

“There are questions that must be answered regarding the collection and sharing of consumer data by the two companies,” said Chester right after the deal was announced. “While the rationale for the deal is to provide some much needed competition to Google (and income for Yahoo), the further consolidation of the global digital advertising system should be a concern to Internet users, privacy advocates, online marketers, and competition regulators.”

Violations of consumer privacy by such unions or by Facebook’s efforts to use data to better deliver online ads or by any of the myriad ways such companies are honing their behavioral targeting skills worries Chester.

Thus, in patented D.C.-style, he hectors government agencies, politicians and the media to look more closely at such practices.

Here is my video interview with him about all this, which is well worth listening to, especially in an era when online powerhouses like Google are learning more and more about you, and not in a good way:

[ See post to watch video ]

Exclusive: Yahoo and Microsoft Poised to Finally Sign Definitive Search and Ad Agreement

Kara Swisher — Wed, 18 Nov 2009 08:01:27 +0000

Yahoo and Microsoft are poised to finally sign the definitive agreement that will govern the complex and far-reaching search and online advertising partnership they struck in late July, said sources close to the situation.

If all goes well, the various Microsoft and Yahoo execs–who have been ferreted away over the last weeks, busy dotting all the i’s and crossing all the t’s in the massive document–could even turn in their deal homework to their bosses for signature by the end of the week.

Yahoo (YHOO) officials declined to comment, while Microsoft (MSFT) has not gotten back to BoomTown as yet.

In any case, getting the definitive agreement in place is critical to making the high-profile MicroHoo deal a reality and, of course, getting the anti-Google (GOOG) party started.

So when the pair blew through a deadline to complete it in late October, there were eyebrows raised all over Wall Street and Silicon Valley.

When Yahoo filed an 8-K with the Securities and Exchange Commission in August, it noted that the “Definitive Agreement” between the Silicon Valley Internet company and the Redmond, Wash., software giant needs to be sketched out by Oct. 27, 2009.

But it is a monster document, which is why MicroHoo did not complete it in time. After that whiff, Yahoo said as much in another filing with the SEC:

“The Letter Agreement specified that the parties would execute definitive agreements by October 27, 2009, but given the complex nature of the transaction, there remain some details to be finalized.”

Added Microsoft similarly:

“We have made good progress in finalizing the definitive agreements. Given the complex nature of this transaction there remain some issues that need some additional clarity and definitive details.”

Nonetheless, both companies have consistently said that they would be able to close this deal by early 2010.

Yahoo and Microsoft had already done a pretty hefty binding-agreement letter (here is a picture of Yahoo’s CEO Carol Bartz and Microsoft CEO Steve Ballmer holding it, in fact).

Also key: Getting approval for the deal from regulators in Washington, D.C., which, sources said, also seems to be on track.

With little opposition, Yahoo and Microsoft policy types have been chipping away on regulatory issues with federal regulators in Washington.

And, several sources said, those government approvals are now nearing completion at the Justice Department, even though the Federal Trade Commission might still ask for more assurances on privacy issues related to online advertising and consumer data.

International regulatory approval is another story, especially in Europe, which could further delay the implementation of the partnership, since it is unlikely the pair would move forward without clearance globally.

When that is done, the real game begins, as MicroHoo faces its the much more critical Tim Gunn acid test for the deal:

Making it work.

Flying the Digitally Friendly Skies: Gogo, Google and the Facebook PR Guy in 17D

Kara Swisher — Fri, 13 Nov 2009 22:11:20 +0000

So, BoomTown–who cannot be unplugged from the matrix for very long without breaking into a cold sweat–was pretty excited to have free Wi-Fi on my Virgin America flight to Washington, D.C., early this morning.

The service from Gogo Inflight Internet is free since earlier this week until Jan. 15, courtesy of Google (GOOG), on Virgin, as well as at 47 airports. It usually costs anywhere from $6 to $13.

Like the search giant, other Web companies–presumably wanting to goose usage and, more to the point, their brands–have also leaped in.

Delta has a promotion with eBay (EBAY) on several hundred planes for a week around Thanksgiving, and Yahoo (YHOO) is footing the bill for anyone using computers or smartphones in Times Square in New York for one year.

Pretty much what the government and big cable and wireless companies should be doing, but let’s not look a digital gift horse in the mouth.

So far on the flight, the Internet has been pretty solid, although video plays even slower than my Comcast (CMCSA) connection at home.

Also, electricity on the flight has been in and out; when it doesn’t work, it pretty much negates Internet use on a long flight.

But more interesting, as most who use the Web in the air seem to feel, is the ability to make a lot of online connections, including with people on the same plane.

While I was no fan of the goofy seat-to-seat connections offered on some airlines, I did get an email from a Facebook public relations guy sitting in the row behind me on the same flight asking if I wanted to meet the social networking site’s DC staff.

Without ever seeing him I now have a meeting on Monday with them, so–apparently–mission accomplished!

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.

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.”

Dozen-Year Yahoo Tech Veteran Ash Patel to Take "Time Off"

Kara Swisher — Tue, 03 Nov 2009 21:59:17 +0000

Longtime Yahoo tech leader Ash Patel is taking some time off until early 2010.

Yahoo (YHOO) confirmed the break to BoomTown.

In recent days, many inside the company had mistakenly thought the 44-year-old EVP for Product Architecture & Strategy was departing the company for good.

Actually, it’s more of a sabbatical for Patel (pictured here).

“Ash will be taking some well-deserved time off to spend time with his family,” said Yahoo in a statement to me. “He will be returning to Yahoo! in early 2010.”

In his latest of many jobs at Yahoo, where he has been employed since 1996, Patel works with its products organization, run by CTO and EVP of Products Ari Balogh, “to drive the development of a comprehensive product strategy, as well as potential strategic deals, helping to evolve and evaluate its audience product and technology strategy.”

It’s one of many leadership positions Patel has had at Yahoo, as the company has reorganized many times over the years, including as EVP of its Audience Products Division, EVP of Platforms and Infrastructure, SVP of Platform Engineering and chief product officer.

He also played a key role as architect of several major Yahoo products, such as MyYahoo!, Yahoo! Finance, Yahoo! Messenger, Yahoo! Chat and many others.

In fact, Patel ended up in a major exec role in a reorg that former Yahoo CEO and co-founder Jerry Yang did in the summer of 2008.

But the appointment of Patel to head the new Global Products group was greeted with some internal dissent, since many were pushing for faster change and new management at the Silicon Valley icon.

Yang was said to have insisted that Patel remain on as planned. He reported directly to President Sue Decker.

Patel stayed on after new CEO Carol Bartz got the top job in January, which was the subject of much interest among longtime Yahoo staff, since he has been one of the few true Yahoo veterans left in a high-ranking role.

In another reorg in late February, this time by Bartz, Patel got his latest title and was placed under Balogh.

Here is a video interview I did with Patel last December about the launch of some open and social networking initiatives at Yahoo (SVP Tapan Bhat, who had once reported to Patel, is also in the video):

MSFT, GOOG and AAPL: The Stock Market Three-Step

Kara Swisher — Mon, 02 Nov 2009 22:43:13 +0000

Of all the tech stocks to watch, perhaps none have been more interesting to follow than those of Microsoft, Google and Apple in recent days.

With so much news emanating from this trio of tech icons, their shares have been gyrating and twisting on each and every piece of information, including:

Microsoft (MSFT) and its many new products, from Windows 7 to the Bing search service.

Google (GOOG), which has never met a launch it did not tout in a blog post, from Google Wave to its Android efforts in the smart-phone market.

Apple (AAPL), of course, which gets a mass of coverage every time the company clears its throat. The noise everyone is listening for now, as you might have guessed, is any shred of news about the new tablet, whose name–a BoomTown educated guess only–is going to be iSlate.

So, here are some things of note about the stocks:

Like Silicon Valley Bobbsey Twins, Apple and Google are neck and neck with regard to their market valuation, each hovering in the $169 billion to $170 billion range. (Microsoft’s stock is still much bigger at $247.6 billion.)

Apple’s shares have been tamped down over the last month, up only 2.4 percent, compared with a 10.2 percent rise for Google and an 11.7 percent rise for Microsoft. That said, Apple fared a lot better than Yahoo (YHOO), which was down 5.9 percent for the month.

But, year-to-date, Apple’s stock performance still reigns supreme, up 121.8 percent, compared with Google (73.6 percent) and Microsoft (43.4 percent).

For the week, though, they are all down–Apple is off 6.5 percent over the last five days, while Google is down 3.6 percent and Microsoft declined slightly less, 2.8 percent.

Here’s a chart of the three stocks below, over the last month (click on it to make the image larger):

Please see this disclosure related to me and Google.

"Come to Think of It, eBay"–Is That a Killer Ad Motto or a Desperate Plea for Attention? (Plus Old Commericals!)

Kara Swisher — Mon, 02 Nov 2009 12:10:59 +0000

BoomTown–fresh from slapping around six graders caught in a Bing stupor and commenting on the use of restaurant-seeking vampires by Microsoft (MSFT)–is also not quite sure what to think of another new advertising campaign from an Internet giant.

This time, it is coming from eBay (EBAY).

With the tagline, “Come to Think of It, eBay,” the ads start today, according to a report in The Wall Street Journal, to “boost its standing as a holiday shopping destination.”

Interestingly, the new marketing campaign in print, television and online–the first for the Web commerce giant in 18 months–has been crafted by San Francisco-based Goodby, Silverstein & Partners, which has also just nabbed the lead role in the $100 million advertising campaign by Yahoo (YHOO).

Goodby, owned by the Omnicom Group (OMC), is known for its innovative ideas and has done such memorable campaigns as the Slowsky turtles for Comcast (CMCSA), the weird folk of Emerald Nuts, owned by Diamond Foods (DMND)–as well as campaigns for tech companies such as Hewlett-Packard (HPQ), Adobe Systems (ADBE) and Netflix (NFLX).

Still, Goodby might be getting a little too cute here, because “Come to Think of It” could remind consumers exactly how much they have forgotten about eBay.

At best, “come to think of it” is a double-edged sword.

In a good scenario: “Come to think of it, I really haven’t listened to my ‘Frampton Comes Alive’ album in forever and I really want to hear it again.”

In a bad scenario: “An old girlfriend of mine is trying to friend me on Facebook–but, come to think of it, she was pretty freaky and I am very scared she found me again.”

You get the idea! Come to think of it: Play at home!

Actually, according to the Journal story, Lorrie Norrington, president of eBay’s marketplace operations, is pushing a different meaning of the phrase: “to shift the buyer perception of what eBay is today.”

The San Jose, Calif.-based company has to shift perceptions since it has seen its core marketplace business suffer, even as it has advertised less.

Here’s a video of one of the new ads, as well as some past ones–all of which include an unusual amount of Broadway-style singing, dancing and egregiously fabulous frolicking for a company led by then-CEO Meg Whitman.

But, come to think of it, Meg: Not that there’s anything wrong with that!

And, I could not resist adding at the end Weird Al Yankovic’s funny parody song about eBay, with video clips synched.

Enjoy:

“Come to Think of It, eBay”:

[ See post to watch video ]

“On eBay”:

“That’s on, eBay”:

“Do It, eBay”:

“Found It on eBay” by Weird Al Yankovic:

Yahoo's Yodel Anecdotal Blogger Will Not Be Yodeling Anymore

Kara Swisher — Sat, 31 Oct 2009 06:49:03 +0000

While Nicki Dugan (pictured here) was not one of the top execs at Yahoo, she certainly is typical of many at the company who stuck with it through many ups and downs.

No longer, according to a memo BoomTown obtained from several sources, since the longtime PR staffer–who has been at Yahoo (YHOO) for almost a decade and who was previously with an outside public relations firm that worked for Yahoo–will leave the company Monday.

Dugan has a high-profile role at Yahoo, running its Yodel Anecdotal corporate blog and penning most of the pieces on it.

It’s not clear from the memo where Dugan is headed, though the memo is full of interesting “moments” she had while at Yahoo and includes some nice historical details (including a scoop I had from Web 1.0 that I had long forgotten).

Here’s the email she sent to colleagues:

From: Nicki Dugan
To: XXX
Cc: Nicki Dugan
Sent: Thu Oct 29 16:35:22 2009
Subject: Fare thee well

Hiya:

After almost exactly 9.5 years, 10 Oktoberfest mugs, 9 founder holiday gifts, 4 cube moves, and 76 daily miles, I’ve decided to hang up my purple badge. Saying goodbye to Yahoo!–and all of you–is no easy task. It’s a rare place that can capture your heart and soul and hang onto it for about a quarter of your life. What’s made Yahoo! so special? I thought I’d rattle off some of my favorite moments:

* Jerry asking me (on my first day) if the PR team really needed another person

* Filo’s all-worldwide “get back to work” Yahoo! Greeting during my first week

* Yahoo! Surfers. Full stop.

* Risking life and limb to cross the street for a meeting when our HQ was on Kifer Road in Santa Clara

* My first earthquake, experienced working on a Saturday in Building D

* When our various business units were called “pods” (communications, communities, commerce, content)

* Our former general counsel propping his cowboy boots up on the conference table during a USA Today interview

* When Jerry and David taught Madeleine Albright how to surf the Web

* When In & Out Burger trucks provided meals during summer picnics

* Launching the world’s first Internet taxi

* When NASDAQ halted YHOO trading after Jim Hu and Kara Swisher caught wind of our Broadcast.com acquisition

* “Sleeping” under my desk the night before Analyst Day 2001 as lawyers and the deal team haggled sentence structure with SBC in our joint release

* When the cow from our lobby attracted Mennonites at NYC’s South Street Seaport

* Terry Semel doing earnings calls in his socks

* Being the stage photographer for Beck at Open Hack Day 2006

* Getting Jerry & David to sumo wrestle in the name of fighting climate change (http://bit.ly/2NIjkO)

* Tom Cruise recreating the Oprah coach moment during his Yahoo! Influentials visit

* Convincing Matt Dillon that our contract trumped his hangover at the Greenest City in America press conference in Times Square

* Flying to Burbank via a NetJet with every C-level Yahoo! executive for the Overture acquisition

* When Sue Decker rode into an all-hands at URLs on a Harley Davidson

* Meeting Al Gore at a private “An Inconvenient Truth” screening with the Yahoo! For Good team

* Breaking the world record for largest simultaneous yodel…and getting ordinary Americans to yodel their hearts out in NYC, SF and Seattle for the Yodel Challenge and Yodel Studio

* Watching mobs of Yahoo! users line up outside Baskin-Robbins stores across the country for free ice cream on our 10th anniversary

* Having Michael Arrington leave the third comment on Yodel Anecdotal when we launched (and a positive one at that!) (http://bit.ly/1Lvzrx)

* The emotional weekend spent at Skadden as we prepared to announce Terry’s resignation

* Learning how to play Faceball at Flickr HQ (http://bit.ly/4mdJ24)

* Getting Blake Jorgensen to pull off the best April Fool’s video… Evar

* Stuffing cotton into Filo’s cheeks for his cinematic debut as Don Corleone in Ari’s tech team video

* Asking Ash to dress in an orange jumpsuit to pick up trash in Filo’s cube (I’ve clearly abused Filo extensively)

* Dressing in black and leaving rubber duckies all over Google’s campus at dawn (10K+ photo views! http://bit.ly/vX8hA)

* Convincing 33 Yahoo! teams to dance with Matt “Where the Hell is Matt?” Harding all over our HQ during the Summer of Microsoft (http://bit.ly/929hT)

* Getting the Food Network to produce a “Dinner: Impossible” episode for Yahoo!’s Search’s anniversary and watching Chef Robert Irvine abuse Tuoc and Raj in the kitchen (http://bit.ly/291zsB)

* Carol’s first all-hands F-bomb

We played hard, worked harder, and drank copious amounts of purple Koolaid. And I’ll probably never quite get it out of my system. Working here through so many of Yahoo!’s phases has been a once-in-a-lifetime opportunity. I’m so grateful for the memories and friendships built over these many years. I look forward to watching the ‘hoo from afar.

If we don’t connect on Monday for a final farewell, please keep in touch. Employee #370 (adjusted hire), over and out.

–Nicki

Here’s a link to one of my favorite blogs by Dugan, which she referenced above, on dancer Matt Harding, with a video below she did by dragging him to do jigs all over Yahoo:

[ See post to watch video ]

It's Complicated, but MicroHoo Hasn't Fallen and Will Get Up (Now, Lay Off Jerry Yang)

Kara Swisher — Thu, 29 Oct 2009 01:34:03 +0000

In what should come as a shock to almost no one, the detailed negotiations to complete the Microsoft and Yahoo search and online advertising final agreement are more complicated than its authors anticipated and are taking longer than expected to complete.

Relax, folks–they’ll get done.

But here’s a more important thing that should wrap up sooner than later: Yahoo CEO Carol Bartz’s seemingly never-ending gibes about former CEO and co-founder Jerry Yang’s tenure.

First, let’s deal with the issues around the agreement, which is a monster document.

That’s why MicroHoo missed the deadline yesterday to execute its definitive agreement on the transaction struck in July.

In a filing with the U.S. Securities and Exchange Commission, Yahoo (YHOO) said:

Added Microsoft (MSFT) in a long statement:

“Microsoft and Yahoo! are committed to this agreement and believe this is a highly competitive deal that is good for consumers, advertisers and publishers. We have made good progress in finalizing the definitive agreements. Given the complex nature of this transaction there remain some issues that need some additional clarity and definitive details. So, the teams at Yahoo! and Microsoft are continuing to work on the remaining details, and we have mutually agreed to extend the period to negotiate and execute the agreement. We plan to do this as expeditiously as possible. Both companies are optimistic that we will be able to close this deal by early 2010.”

Thus, the deadline has been pushed back indefinitely, which is very common in such larger and complicated deals.

Yahoo and Microsoft had already done a pretty hefty binding letter agreement (here is a picture of Yahoo’s Bartz and Microsoft CEO Steve Ballmer holding it, in fact).

Getting approval from regulators is also part of the deal, and it is likely to happen in the U.S. just after the new year.

But perhaps most of all, what seems more likely to never end and probably should is the proclivity of Yahoo’s Bartz to use sharp-tongued analogies to talk about just how bad Yahoo had been doing and how it is now poised to make a comeback.

In her very first press conference when she got the job, in fact, she noted that Yahoo, “frankly, could use a little management.”

Bartz was right then and even more correct to say it out loud, but she has not stopped the criticism.

And, like clockwork, at an analyst day at Yahoo HQ in Sunnyvale, Calif., today, Bartz trotted out a yet another in a long series of backhanded insults to former CEO Jerry Yang and his crew.

Said Bartz at the event about the Silicon Valley icon:

“We have fallen and we really want to get back up. If you haven’t had good times and bad times, you don’t know what you’re doing. We prefer the good times. We have passion to get back there. Today is the start of that.”

Today is the start? Didn’t Yahoo declare a version of the same theme when the MicroHoo deal was announced in July? And at the the launch of the new homepage in September? And the more recent rollout of its massive marketing campaign?

It seems to me that since she has been there almost a year, much like the Obama administration, Bartz should not be looking backward anymore and keep announcing that it is time to get back on track.

Because she is most definitely in charge now at Yahoo and should be the one to get all praise and all blame from here on out.

So, as someone who has definitely been very tough on Yang while CEO, it’s time to stop knocking him over now, because it is starting to feel like a very cheap shot.