BoomTown » instant messaging

AOL Also Likely to Eye Sale of MapQuest–Is Microsoft a Possible Buyer?

Kara Swisher — Thu, 19 Nov 2009 08:23:38 +0000

Yesterday, BoomTown wrote about AOL’s efforts–including hiring investment bankers–to sell its ICQ instant-messaging unit.

But that’s probably not going to be the end of the shedding of assets at the online site.

In fact, according to sources inside and outside AOL, one of the next candidates for sale could be its MapQuest online map service.

Purchasers of the service that provides mapping and directions, sources said, are likely to be other mapping giants, especially Microsoft (MSFT).

But it is not clear if the software giant or anyone would fork over a huge sum of money for MapQuest.

That would include the $1.1 billion in stock that AOL paid for MapQuest in 1999.

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 is part of becoming a smaller, more focused company.

MapQuest, like AOL’s Bebo social networking site, fits this description.

While it does have widespread distribution across the Web, reaching over 40 million users monthly, MapQuest lags well behind aggressive efforts being pushed by both Microsoft and Google (GOOG).

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.

Sticky Situation of the Month: Ex-Yahoo Communications Head (and "Peanut Butter Manifesto" Scribe) Garlinghouse to Helm Similar Unit at AOL

Kara Swisher — Tue, 08 Sep 2009 03:45:02 +0000

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:

[ See post to watch video ]

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.

Google and Others Fish for Acquisitions: Here's What They Might Be Looking For

Kara Swisher — Wed, 02 Sep 2009 17:33:13 +0000

Google CEO Eric Schmidt gave what he just had to know would be a much quoted comment to the Nikkei today, explicitly saying that the company had “begun seriously looking into acquisitions again.”

Music to the beleaguered mergers and acquisitions market, to be sure, especially after a recent uptick from other big companies pulling out their wallets again as the impact of the econalypse subsides.

According to sources, Google (GOOG) is working on at least a half-dozen acquisition deals, most of which are small start-ups in the online advertising and cloud computing arenas.

That would be welcome news for many.

That’s because, as The Wall Street Journal noted in a piece today, “August was shaping up to be the worst month for deal making since 1995, according to data provider Dealogic” (see the chart).

That was, until Disney (DIS) bought Marvel for $4 billion, in a deal announced Monday.

Then yesterday, eBay (EBAY) traded 65 percent of its Skype Internet telephony unit to a group of free-spending private investors, led by Silver Lake Partners, for $1.9 billion.

While eye-popping numbers like that make dealmakers smile, most think it is in the spate of smaller venture-backed companies that more of the action will happen, with big companies like Google, Microsoft (MSFT), Apple (AAPL) and even Yahoo (YHOO) as predators.

Many of these were funded in the Web 2.0 boom and have done well enough, but are figuring out that a link with a larger fish will likely make for a better outcome, along with filling in tech and product gaps at the giants.

Think about Facebook’s $50 million acquisition of social networking site FriendFeed recently and you have the right idea.

According to more than a half-dozen Silicon Valley VCs I have spoken to this week, this is the likeliest kind of exit for a large group of their portfolio companies.

Thus, they are putting on their finest and placing themselves on display in the store window, offering talent and innovation.

“We all realize that a lot of these companies are not going to be independent, so we’re all trying to figure out where they best fit in,” said one VC. “We essentially did business development for a lot of the large companies.”

Thus, here are some companies whose names have been bandied about of late by M&A types who say they are more likely candidates for sale:

Veoh, the Web video portal that MediaMemo wrote about in July, has reportedly been searching for a home for a while now as it struggles in a costly space dominated by giants like YouTube and Hulu.

That goes for many other similar video efforts, such as Joost, Metacafe and Dailymotion, all of which have been trying to gain traction.

There is also likely to be a shakeout in the gaming and “guy” content space, which has also seen a lot of funding in the last several years and less monetary success.

Some possible names here include: Xfire, a gaming instant-messaging company Viacom (VIA) bought a couple years ago for $100 million; Giant Realm, a 20-something guy site funded by Comcast (CMCSA) and others; and UGO, Hearst’s version of a 20-something guy site.

Probably, given the need to focus on monetization, the most active M&A space will be in online advertising.

Sources said Google, for example, has been interested in companies such as Teracent, a dynamic ad-serving and optimization start-up in San Mateo.

There are lots of names in this general arena to pick from, from Tumri to Quantcast to AdMob to the Rubicon Project, not all of which are for sale, but might be for the right price.

Lastly, there is the smart phone and telecom space, where there might be some of the bigger deals.

While Palm (PALM) has been trying mightily to gain traction with its Pre offering, many think that if it does not go as well as hoped, the company will be an acquisition target eventually for giant companies like Nokia (NOK).

While many think Microsoft could also be a buyer of Palm, given the lackluster performance of its Windows Mobile devices, it might be more attuned to a much bigger catch: Research in Motion (RIMM) and its business-oriented BlackBerry empire.

Such a massive acquisition–most of those I bounced that idea off agreed–would be an uphill battle, but it would be perhaps the best fish story ever.

Please see this disclosure related to me and Google.

Yahoo Product Head and CTO Ari Balogh Speaks!

Kara Swisher — Thu, 02 Jul 2009 21:05:01 +0000

In BoomTown’s bold quest to annoyingly stick a Flip digital video camera in the face of every Yahoo senior exec, this week I worked the last nerve of its CTO and EVP of Products, Aristotle “Ari” Balogh.

Actually, the 45-year-old Balogh is a very calm and pleasant man, especially considering the huge responsibility that has been foisted on him by CEO Carol Bartz to rejigger how Yahoo (YHOO) makes its products and services and deploy its technology in a more efficient, centralized and most of all, innovative manner.

It is actually a process that was started under the previous leadership, especially President Sue Decker.

But now, after a number of reorgs, a wide swath of Yahoo is under Balogh’s purview–from search to open initiatives to product development to trying to fix Yahoo’s big problem of never quite getting its innovations out the door.

To explain all this, Balogh sat down with me twice–he is clearly a glutton for punishment–to talk about where Yahoo stood as it sought to dig itself out of its long slump and reemerge as the potent Internet force it once was.

While he successfully avoided the questions about Yahoo’s talks to do a search and advertising partnership with Microsoft (MSFT), he did talk about his view of its new Bing search service (well done, but can it scale?–which is an engineer’s favorite schoolyard taunt).

He also addressed the bigger question of how Yahoo can stay relevant in the fast-changing Web 2.0 world.

To Balogh, copying trendsetters like Facebook is not the answer. For example, he noted that Yahoo is more a place where consumers do “one-way” follows of things important in their lives rather than wanting another social-network service (which Yahoo has tried and failed at, actually).

“We’re not going to be another social network,” said Balogh flatly, agreeing that that boat has already long sailed without Yahoo on it with a significant product–Yahoo famously failed to buy Facebook, well before Balogh arrived in early 2008 from VeriSign (VRSN). “But we can be a place where people make and manage the important connections they have.”

How this will all play out is one of the most interesting questions in Silicon Valley because–even after all the turmoil–Yahoo remains one of the largest sites on the Web.

About 500 million monthly unique visitors enter its homepage and course through its vast site constantly, from its search pages to its massive email and instant-messaging services and its popular suite of content sites.

No one says Yahoo is not big–what everyone says is that it has missed many major and critical Internet trends as it has become mired in a management morass and external battles.

Now, with new leadership in place, observers are waiting to see what’s next.

In this regard, it is important what Balogh thinks since he is perhaps Yahoo’s only person who even closely resembles a Web product visionary now that former CEO and co-founder Jerry Yang has stepped aside and Bartz has taken up command.

While he typically shies away from the spotlight, he is not bashful about talking about Yahoo’s infamous lugubrious development process.

“We have pockets of great technology that we have to really put back together into a coherent infrastructure,” said Balogh. “We have to get the basics right and focus on those core daily experiences that make Yahoo extraordinary.”

That is easier said than done, especially when changes impact so many consumers and, of course, the bottom line. Choosing what key trends to attack is harder for a large public company like Yahoo, which has a lot to protect in its current businesses.

“There will always be a battle between new ideas and monetization,” said Balogh. “The question is how much do you push that line back and forth?”

That fine line will surely be tested with the rollout of its new homepage in the fall, a long project that has been codenamed “Metro.”

“It is not a radical departure, but we have given users more power to do what they want and also serve as the best of Web versus that is already inside of Yahoo,” said Balogh of the new homepage. “With technology, it is always a push-pull.”

Here’s my video interview with him, talking about all this and more:

[ See post to watch video ]

Tiny Tim Takes Over AOL–But Does He Have Big Plans?

Kara Swisher — Wed, 25 Mar 2009 22:22:49 +0000

This is just too cute to pass up. Apparently, some staffers at AOL are using a teeny-weeny cartoon–seen here–of new CEO Tim Armstrong as the icon on their instant messaging program.

It was apparently made for Armstrong by AOL’s owner, Time Warner (TWX).

Sorry it’s so little, but the picture gets blurry if made larger.

The strapping-in-real-life former Google (GOOG) advertising head took over AOL unexpectedly two weeks ago, after its two leaders, CEO Randy Falco and President Ron Grant, were shown the door.

Since he got the job, the big version of Armstrong has been busy making the rounds, even though he does not officially start until April 7.

But Armstrong (pictured here in non-superhero form), many sources said, has been talking up many current and former AOLers–many from its glory days–to learn as much as he can about what he needs to do to force the once-mighty online icon back to relevance.

He’ll likely start with a spinoff of the service, and sooner than later, especially if the stock market continues to not tank so much.

Of course, to make the most of that, it’ll take a bolder strategy from Armstrong than just selling more advertising, getting a better search deal, adding more content and creating new social-networking widgets.

In fact, here’s a free tip for Armstrong from someone who has watched the slow-moving AOL train wreck for far too long: Think much, much bigger than a tiny Tim does.

AOL Gets More Social With Renovation of Bebo (But There's Much More to Come)

Kara Swisher — Wed, 10 Dec 2008 11:00:13 +0000

This morning, AOL will launch an updated look for its Bebo social-networking property, with a new “social inbox” profile for its users.

The inbox, which you can see below in the old and new versions, essentially gives its users a one-stop destination, with aggregated social feeds from across the Web, multiple email accounts and media recommendations.

But, according to sources with knowledge of AOL’s plans, the online service is preparing a more radical series of announcements after the new year, well beyond its release today.

Interestingly, the changes to its social-networking and communications properties yet to be announced have been among the things that have impressed Yahoo (YHOO), whose execs have been briefed on the changes, as part of the never-ending talks with the Time Warner (TWX) about buying its AOL asset.

That includes offering AOL’s various social-networking tools–such as chat rooms, news feeds and instant messaging–to be easily embedded by any Web site. The service will be called “Site Social,” with plans to use AOL’s advertising platform to help monetize the offering.

In addition, the renovation of the Bebo profile pages will continue, with more innovative features, including the introduction of an interactive “timeline” that shows a person’s online “lifestream” in a scrolling fashion.

BoomTown has seen the timeline–in which events of any kind can be depicted, from your book club schedule to a trip to Hawaii.

While it looks like eye candy at first, it is also pretty useful–especially a mobile version. And it is definitely the most visually striking version of a news feed that is offered by competitors.

“It is part of a left brain/right brain strategy to improve our services, distinguishing them from the pack,” said one person familiar with the upcoming changes at AOL. “But we also have all these tools and want to reach out to publishers who need to socialize their sites and find it hard to do so.”

The move today to update Bebo, though, is strikingly similar to redesigns that have been recently rolled out by large Web players like Microsoft (MSFT) and Yahoo.

All are attempts to offer a competing product to popular social-networking sites like Facebook and News Corp. (NWS) unit MySpace, where users have flocked. (News Corp. is the owner of this Web site.)

Those two companies have also been making moves of late to allow consumers to aggregate their disparate piles of online information in through connective offerings that allow them to pool all kinds of Web content and communications in one place.

AOL is hoping its efforts will focus users more on Bebo, which it bought for $850 million in March. Bebo is one of the larger social networks, although it is not popular in the U.S. and lags behind the leaders like Facebook.

AOL execs are hoping to change that by changing the game, focusing on Bebo’s strong media offerings and making it the centerpiece of its social-networking and communications unit, run by former Bebo head Joanna Shields.

AOL’s People Networks unit, which includes Bebo, AIM and ICQ, has an overall audience of 92 million unduplicated users worldwide, said AOL, referencing a recent comScore (SCOR) survey.

“The current fragmented social networking environment makes keeping up-to-date with others increasingly difficult,” said Shields, who is now president of People Networks, in a press release statement. “By opening up our network to the most popular sites and allowing our users to pull in the best of the Internet, we are creating an environment where everyone can easily and effectively manage their online lives, no matter where the individual pieces reside.”

The launch companies for the new inbox include: Twitter, Flickr, Del.icio.us, YouTube, Gmail, Yahoo! Mail, as well as AOL-owned AIM and AOL Mail. In addition, all AOL and AIM users now can now log into Bebo using their credentials and create a profile.

Here’s more specific info, from the AOL press release:

Today’s enhancements to Bebo.com, the first in a series of scheduled releases for early 2009, include:

• Social feed aggregation: Based on technology from newly acquired SocialThing, Bebo’s feed aggregation area enables quick and easy access to photo uploads, status updates and multiple online activities from key social networking destinations such as Twitter, Flickr, YouTube, AIM and Del.icio.us on top of Bebo’s existing social feeds. Bebo’s Social Inbox allows social feeds to be organized in chronological order and grouped by person. A localized RSS feed reader also delivers the latest news and updates from around the globe including the US, Canada, Australia, New Zealand, the UK, Ireland, France, Germany, Italy, Spain, Poland and the Netherlands.

• E-mail aggregation: The Social Inbox gives consumers one-click access to the most popular e-mail services, including AOL and AIM Mail, Yahoo! Mail and Gmail. Users will be able to preview their e-mail from multiple accounts without having to go from site to site.

• Media Favorites: A new recommendations engine built on the foundations of Bebo’s Open Media Platform delivers the most relevant online entertainment (including video, music, groups and games) into one place. Media Favorites are based on users’ stated preferences and aggregated data such as: what their friends are watching and listening to and what people like them like, subject to appropriate privacy settings. This feed pulls in current Bebo content and group subscriptions, making it easy to get a quick snapshot of all personalized content. Bebo already boasts one of the most extensive online media offerings available, with programming from over 500 media companies including MTV, ESPN, CBS and the BBC.

And here are the before and after Bebo profiles (click on the images to make them larger and keep clicking to make them clearer):

OLD BEBO

NEW BEBO

Microsoft Officially Facebooks, Oops, Socializes, Windows Live Internet Services

Kara Swisher — Thu, 13 Nov 2008 05:00:15 +0000

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

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MicroHoo: Mail Monopoly Part of Yahoo's Price Holdout

Kara Swisher — Fri, 02 May 2008 20:42:58 +0000

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.

Kara Visits Meebo!

Kara Swisher — Tue, 18 Mar 2008 09:22:20 +0000

Last week, I visited Meebo, the Web-based instant messaging company, at their headquarters on Castro Street in Mountain View, Calif.

Why? Well, like a lot of Web 2.0 companies, because it’s a hot and hyped little start-up with a fast-growing audience for its–wait for it!–widgets!

But Meebo makes actually useful widgets, such as its flagship unified instant-messaging offering. Thus, in an endless sea of useless and juvenile apps, that immediately makes BoomTown happy and interested.

And, backed by Sequoia Capital and Draper Fisher Jurvetson, it also has a solid team, although it is one still in search of a much more solid business plan.

Which is: Advertising, of course! (Which is: Web 2.0’s possibly dubious mantra of mantras! Presumably, if you say it enough times, it will come true!)

How hot and hyped Meebo is was in evidence, when this article in VentureBeat posted yesterday claimed that the company was raising $25 million to $30 million at a valuation of $250 million.

Meebo’s last $12.5 million round valued the company at an already kooky $60 million to $70 million. The company was started in 2005.

Ouch, my head hurts from the bubble atmosphere that persists in Silicon Valley, even as our economy is tanking and the Fed can barely prop it up. But I was already in pain at the $850 million that AOL forked over for the very-nice-but-very-not-worth-$850-million Bebo, so please pardon my deep and unfulfilled need for sanity.

Still, it is hard not to like what Meebo is doing, which is a million times more useful than some widget makers. Basically, it solves the interoperability problem in instant messaging, by allowing a user to chat across the most popular sites–AIM, Google (GOOG) Talk, Yahoo (YHOO) Messenger and Microsoft’s (MSFT) chat service.

It also offers chat rooms to sites across the Web, branded as Meebo Rooms, like the one below on Meebo’s valuation, with lots of cool features, such as the ability to play videos that are embedded in them.

These products have attracted tens of millions of unique monthly users, trading over 100 million messages a day, although–as I said–it is not clear how money will be made providing this useful service.

Meebo, like a lot of similar companies, has struck some interesting ad partnerships, including with record companies, but–no matter what anyone says–it is obviously too soon to tell how effectively it will perform.

Luckily, in this video, two of Meebo’s founders–Seth Sternberg and Sandy Jen (the other is Elaine Wherry, who is not in this video)–as well as recently hired CNET vet Martin Green, who is handling business development, explain it all for you!

Here’s the video:

[ See post to watch video ]

Andy Jordan on a Plane–Instant Messaging! (Much, Much Worse Than Snakes!)

Kara Swisher — Fri, 14 Sep 2007 07:01:10 +0000

Ok, here is my personal nightmare: Having a stranger sitting next to me on an airplane chattering endlessly throughout a flight, when all I want to do is read, watch a movie or sleep.

Now, horror of horrors, there is a service on Virgin America where passengers can do seat-to-seat chatting. WSJ.com’s Tech Diary video blogger Andy Jordan tries it out and finds most people really don’t want to be bothered, although that does not seem to stop some from bothering anyway.

Also a problem: the touchscreens irk the people in front of the chatter, what with all the poking (which is icky enough on Facebook).

See for yourself: