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.”

In the ongoing game of musical chairs among top managers at Internet companies, former Yahoo exec Brad Garlinghouse–famous for his controversial “Peanut Butter Manifesto,” which correctly chided the Internet giant for becoming so lugubrious several years ago–is taking a job at AOL very similar to the one he left at Yahoo last year.

Garlinghouse, 38, has been named president of Internet and mobile communications at AOL, putting him in charge of the New York-based Time Warner (TWX) online unit’s powerful email and instant-messaging properties, including ICQ and AIM.

He has only been in talks with AOL–which used Spencer Stuart’s Internet-top-exec-finder-in-chief Jim Citrin–for a few weeks, in a deal that came together quickly, he and the company said.

Garlinghouse, a longtime Web entrepreneur and exec, had reportedly been considering a number of start-up and venture-related jobs since he left Yahoo last summer after six years there.

Sources said he was seriously considering becoming the CEO of a mobile firm.

He was most recently at Silver Lake Partners, as an “in-house senior advisor,” the private equity firm that recently bought the Skype Internet telephony firm for $1.9 billion. Garlinghouse also reportedly helped work on that deal.

“It’s really exciting to be to able to rebuild and revitalize an industry giant,” said Garlinghouse in an interview with BoomTown earlier today. “I make no bones that these [properties] are in need of that…but there is also a huge opportunity to do something cool.”

Garlinghouse has to hurry. Despite being among the top communications players online–a group that also includes Yahoo (YHOO) and Microsoft (MSFT) and, more recently, Google (GOOG)–AOL has lost relevance with key audiences, even as social networking properties like Facebook and the microblogging service, Twitter, have innovated in the communications space.

The hiring of Garlinghouse, well known in Silicon Valley circles, is meant to counter that.

He will head up AOL’s operations from its Mountain View, Calif., campus–which is also the former HQ of AOL-acquired Netscape Communications–where, said AOL CEO Tim Armstrong, Garlinghouse will “be CEO of Silicon Valley for us.”

Between all its various properties, AOL has several hundred employees in the Northern California area.

Armstrong said AOL–which was founded 25 years ago on the East Coast and has tried and failed many times to get a true foothold in the West–thinks having an important player at the center of the tech industry is critical as it moves to spin off as an independent company by the end of the year.

“We have a triple play in getting a great executive, who is a master in the communications on the Web and who is well known out there,” said Armstrong. “Brad is our senior AOL manager there.”

Along with running all of AOL’s communications properties, Garlinghouse will inherit some of its community properties, although AOL’s Bebo social networking unit–now considered to be an overpriced acquisition error–now resides in its ventures unit, headed by Jon Brod.

Garlinghouse will also be aiding Brod, said Armstrong, with AOL on the lookout for acquisition opportunities in communications and other arenas.

While Garlinghouse declined to be specific about what would pique his buying interest, he was responsible for such big Yahoo deals as its $350 million purchase of Zimbra in the fall of 2007.

He was also key to bringing both Oddpost, which is at the heart of Yahoo’s email offering, and the popular Flickr photosharing service to Yahoo.

Garlinghouse said he has admired what Twitter and Facebook have done, but that they were not destroying traditional online communications, pioneered by AOL, as some assert.

“It’s a vibrant segment and this just means there are a lot of opportunities to enable integration,” he said. “I think of it as an expansion of online communications and I hope AOL can do more collaboration and partnerships.”

Garlinghouse also has to watch AOL’s basic products like email, which was recently passed by Google’s Gmail as the No. 3 email service in the U.S. Yahoo Mail is the top email, while Microsoft’s Hotmail is second.

How much Garlinghouse can do will depend on the future financial strength of AOL. Its advertising business has been hit hard in the econalpyse, with hopes it will return before its money-generating access business continues its slow decline.

Armstrong is now in the midst of looking over AOL’s cost structure and employee base, which most expect will eventually result in another round of layoffs and cuts.

He has been busy creating a different strategy for the company since he arrived earlier this year, as well as hiring (and firing) top execs to create a new management structure.

Now, that includes Garlinghouse.

So, for a look-see at AOL’s latest talent acquisition, here’s a video interview I did with him, just after Yahoo bought Zimbra:

And here’s the full press release from AOL about the hiring of Garlinghouse:

AOL NAMES BRAD GARLINGHOUSE AS PRESIDENT, INTERNET AND MOBILE COMMUNICATIONS

NEW YORK, N.Y.–September 8, 2009–AOL today named Brad Garlinghouse as President of Internet and Mobile Communications, spearheading AOL’s global efforts to expand the reach of its e-mail and instant messaging. Garlinghouse will also take on an expanded leadership position for the company, heading up AOL’s Silicon Valley operations from its Mountain View campus and serving as the West Coast lead for AOL Ventures, the company’s venture capital arm headed globally by Jon Brod. Garlinghouse was most recently at Silver Lake Partners as an in-house Senior Advisor.

Prior to Silver Lake, Garlinghouse spent nearly six years at Yahoo!, where he led that company’s communications and community products. Garlinghouse will report directly to AOL’s Chairman and CEO Tim Armstrong.

” Brad Garlinghouse is an all-star in the Internet industry with an unparalleled background and proven track record, having led Yahoo’s communications products to unprecedented growth,” said Armstrong. “In addition to leading our efforts to grow our communications products, Brad will be bringing his global leadership and business experience as a key member of our company’s executive leadership team. He will also be a major force for AOL in Silicon Valley, working to expand our presence there and in the tech community in general. We’re delighted to have Brad on board and know he’ll do great things for AOL.”

“It’s a tremendous opportunity to join AOL at this pivotal moment in its history,” Garlinghouse said. “Tim has set out a clear strategy and vision for where he is taking this company as it becomes independent again. I’m looking forward to working with him and the rest of the team to realize that vision.”

Armstrong, who joined AOL in April, identified Communications as one of the five key areas of strategic focus for AOL after an extensive 100-day review of the company’s business. Other focus areas include Content, Advertising, Local & Mapping and AOL Ventures.

Garlinghouse spent nearly six years at Yahoo! where he most recently served as SVP of Communications and Communities. Prior to that he served as SVP of Communications, Communities and Front Doors, which included the Yahoo! home page. He came to Yahoo in 2003 as VP, Communication Products. During his time there, Yahoo! Mail went from No. 3 to leading all competitors by a wide margin, and the company’s instant messaging service rose to become the leader in that market as well. Garlinghouse also oversaw the company’s Flickr photo-sharing service and Yahoo! Groups.

Prior to Yahoo!, Garlinghouse was CEO of Dialpad.com Inc., responsible for all aspects of the company’s operations, finance, sales and marketing. He was also General Partner at @Ventures, Category Manager of Media Development for the @Home Network, Inc., and Manager at SBC Communications.

Garlinghouse, 38, received his BA in economics from the University of Kansas and his MBA from Harvard Business School.

The move, to be announced internally later today, is not a big surprise, even though Yahoo paid $350 million for Zimbra in the fall of 2007.

Dharmaraj (pictured here) had previously stepped back from day-to-day leadership at the Yahoo communications and communities division, which is run by former Zimbra President and CTO Scott Dietzen.

But the departure of an innovative entrepreneur like Dharmaraj–although typical when big companies buy start-ups–is never a good thing, given that it’s more important than ever to keep innovative leaders at Yahoo.

New CEO Carol Bartz will have to tap internal leadership if she hopes to turn Yahoo (YHOO) into the kind of fresh opportunity she said it could be when she was hired earlier this month.

Yahoo introduced new email services recently, based on some of Zimbra’s technologies and concepts.

That has been important, since Yahoo Mail has always been a company bright spot and has remained the bigger provider of Web email to general consumers.

But most agree that Yahoo has allowed the Google (GOOG) mail offering, Gmail, to suck up all the oxygen in the room with more flashy features like threading of conversations while not serving up a strong response quickly enough in an arena Yahoo pioneered.

Zimbra vaulted its effort at differentiation from the hyped Google offering forward more quickly.

More importantly, it has strengthened Yahoo’s ability to make online email act more like a computer program than a Web page, which has been the main focus of late of Yahoo, Google, Time Warner (TWX) online unit AOL and Windows Live Hotmail from Microsoft (MSFT).

In addition, since Zimbra was designed with flexible and open Ajax programming tools, it made it easy for third-party developers to make many other applications that jack innovation from the outside, making the communications platform the center of the Web experience with video, search and other tools.

It’s not clear where Dharmaraj is going, but here is a video interview I did with him last year after Yahoo bought Zimbra:

Microsoft officially rolled out the next version of its Windows Live Services tonight, with a heavy emphasis on socializing its online offerings and giving users better tools to share all sorts of information from across the Web within them.

Microsoft (MSFT) said the changes–similar to those made by Yahoo (YHOO) and Time Warner (TWX) online unit AOL recently–would “begin rolling out to customers in the U.S. over the coming weeks and will be made available globally in 54 countries and in 48 languages by early 2009.”

You might call its the “Facebooking” of Windows Live, which is the brand name for Microsoft’s communications and other related online services aimed at consumers, especially because the much anticipated changes also include a new profile and a “What’s New” feed.

So, if imitation is the most sincere form of flattery, Facebook CEO Mark Zuckerberg should feel beloved by Microsoft, since both are direct borrows of two of the social-networking site’s most prominent features.

(See many screenshots of the newly refreshed Window Live services below.)

But don’t call it a social network, said Brian Hall, who is the general manager of the Windows Live unit, in a lovely breakfast interview with BoomTown yesterday.

“No one wants to sign up for another social network,” said Hall. “But everyone does want to be able to share and bring together all they do on the Web, and we want to make sure all our users can do that in the easiest way possible.”

(Sadly, the video I did with Hall–who is Seth Rogen lookalike, and I mean that in a good way–got eaten up in my new Flip MinoHD software, which was entirely due to my boneheadedness.)

But, in it, Hall underscored that Microsoft is now fully committed to opening Windows Live Services up to whatever consumers want to do with their online lives and wherever they want to do it.

And, indeed, the “next generation” of Windows Live will inject social elements into its Photo Gallery photo sharing, Hotmail email, Spaces groups and Messenger instant messaging offerings, as well as Microsoft’s calendar and mobile products.

The move will also more significantly integrate many third-party partners into the mix. Microsoft’s outside partners announced tonight include Flickr, LinkedIn, Pandora, Photobucket, Twitter, WordPress and Yelp. (See the full list below.)

Microsoft also announced alliances with Hewlett-Packard (HPQ) and China Telecom to deliver Windows Live services.

Microsoft says there are more than 460 million Windows Live customers (its instant messaging offering accounts for a bulk of this number and will see the most socializing impact), but is bowing to the obvious and inevitable trend of consumers creating and sharing all over the Internet.

But, said Hall, Microsoft is also sticking to its mantra of “software plus services” here, noting that consumers want the existing tools they use now regularly to become more social, rather than having to abandon them.

Microsoft is also launching its Windows Live Essentials, which are free widgets that can be used across a range of devices and places, such as personal computers, mobile phones and on Web sites.

Finally, to let users store all that content and information, Microsoft said it is also increasing its Windows Live SkyDrive online storage offering from 5GB to 25GB.

Here are the screenshots of the new Windows Live services (click on them to make them larger):

Windows Live Home Page

Windows Live Profile Page

Windows Live Messenger Page

Windows Live Web Activities Page

Windows Live Groups Page

Partner Integration for Windows Live

Blog
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Reviews
11870.com
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Photo
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Photobucket
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Last.fm
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Social Networking
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OEM and Services Partners
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Telecommunications and Broadband Service Providers

China Telecom
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FrameIt Partners
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*Denotes First Set of Available Feed Partners

Yesterday, BoomTown wrote a piece about Yahoo’s worries about the scrutiny that the monopolistic combination of Yahoo Mail and Microsoft’s Hotmail would get if it merged with the software giant.

The issue–which has not gotten a lot of attention–is actually a major sticking point in the price negotiations going on this weekend between the companies, as Yahoo (YHOO) seeks solid downside protection, if the deal becomes mired in approval issues by governmental authorities due to email and instant messaging dominance on the Web.

But Microsoft (MSFT) does not want to pay more, of course. And so the legions of minions under increasingly-under-pressure–translation: more yelling than ever this week–CEO Steve Ballmer are hard at work this weekend on all-nighters to solve the problem, said several sources.

One solution is to spin off all the communications assets, said sources, into a separate company. In that case, the two brands would remain, so as not to inconvenience consumers, although all the back-end technologies to run the services would be merged.

The more drastic step is for Microsoft sell Hotmail to a third party, especially given that Yahoo Mail is considered a stronger brand. Hotmail has already been in the midst of a transition, including a recent name change to Windows Live Hotmail.

Microsoft’s mail offerings now include Hotmail and also Windows Live Mail. The latter offering would presumably remain at the merged company with its @live.com address.

But Hotmail is the candidate to be sold off (with the requisite marketing to try to port its users over to @live.com first).

And potential buyers? Well, not Google (GOOG), but there are many, including AOL (TWX), Comcast (CMCSA) and AT&T (T), as well as IAC/InterActiveCorp (IACI). As to price, that’s unclear, but it could be in the billions of dollars.

That’s another plus for Microsoft, which will obviously have to fork over more money if it wants to acquire Yahoo.

And, it is also priceless if Microsoft can minimize government interference in the deal, most especially any antitrust investigations related to its powerful email assets.

That must be a worry, since Microsoft and Yahoo completely dominate all email on the Internet. According to the most recent comScore (SCOR) figures, for example, Yahoo has 256 million users, while Microsoft has 255 million.

Google’s Gmail is a distant third with about 92 million users and AOL has about half that at 49 million.

The same domination is true in the instant messaging market, with Microsoft and Yahoo holding an 80% to 90% market share together.

Please see this disclosure related to me and Google.

Let’s move this back-and-forth- wrangling aspect of the story forward and get to the real issues in the Yahoo-Microsoft takeover battle, shall we?

So why is Yahoo’s board holding out for a higher price than Microsoft wants to offer to raise it?

From numerous reports, Microsoft (MSFT) seems willing to go to $33 a share, up from its original $31, while Yahoo (YHOO) and its shareholders are looking for from $35 to $37.

Are they simply looking for a bigger payday? Do they believe it is worth more, in spite of recent mismanagement? Do they want to save face, given the Internet company once had a $41 offer from the software giant? Is this just a big game of digital chicken?

Yes. Yes. Yes. And definitely.

But, according to sources close to Yahoo, one of the more important reasons Yahoo wants a higher price has a lot to do with worries about the domination of the email and communications market if a merger with Microsoft took place and the threat of regulatory action that would force the companies to divest those assets.

Sources said that Yahoo wants a large cushion in case the government finds the combination of Yahoo Mail and Hotmail too much.

It is.

That’s because Microsoft and Yahoo completely dominate all mail on the Internet. According to the most recent comScore (SCOR) figures, for example, Yahoo has 256 million users, while Microsoft has 255 million.

Google’s (GOOG) Gmail is a distant third with about 92 million users and AOL (TWX)–which kind of started off the whole email craze among consumers–has about half that at 49 million.

The same is true in the instant messaging market, with Microsoft and Yahoo holding an 80% to 90% market share together.

Calling David Boies! It all smells like antitrust investigation to me!

A high-ranking Yahoo source agrees. “We need a lot of reason to do the deal, because it could be very bumpy once we agree,” said the source. “How damaged would Yahoo be if it did not go through, or if important pieces of Yahoo had to be separated from the company?”

Some close to the company, though, would prefer a spinoff of its powerful communications products and services, in the case of a Yahoo-Microsoft union. “We could be the Google of communications,” said one source.

Of course, Google does not want this to happen. In a recent CNBC interview, Google CEO Eric Schmidt signaled the search giant’s intentions related to this thorny communications domination with a loaded quote:

“If they go ahead and the merger’s ultimately successful, it would be possible for Microsoft to integrate some of the properties and essentially eliminate consumer choice, particularly in electronic mail, instant messaging, the things where they have 80% or 90% market share, and that’s a sweet spot for Microsoft in its ability to eliminate choice.”

And, in fact, Yahoo CEO Jerry Yang and Chairman Roy Bostock raised the issue in a letter on April 7 to Microsoft, rejecting Microsoft CEO Steve Ballmer’s letter threatening to go hostile if talks did not proceed.

The Yahoo leaders wrote:

“As to antitrust, we have discussed with you our concerns. Any transaction between us would result in a thorough regulatory review in multiple jurisdictions. As a follow-up to a recent meeting among our respective legal advisers we had on this topic, and at your request, we provided to you on March 28 a list of additional information we would need to further our understanding of the regulatory issues associated with any transaction. To date, you have still not provided any of the requested information.”

According to one source, the antitrust concern that was not named was related entirely to email and instant messaging.

“Bring together our content and search is not an issue,” said the source. “But mail is a real problem.”

Please see this disclosure related to me and Google.