According to several sources close to the situation, barring any unforeseen delay, a deal to settle the Skype imbroglio is likely to be announced around the time the markets open tomorrow.

[UPDATE: The paperwork is taking longer than expected, so sit tight, said sources.]

While the massive agreement–which will settle three aggressive lawsuits lobbed by Skype co-founders Niklas Zennström and Janus Friis at a wide range of prominent Silicon Valley players–is not yet officially signed, sources said lawyers are apparently putting the finishing touches on the paperwork and have signature papers completed by both sides to be able to wrap it up quickly.

So, while nothing is ever over until it is over, it looks like it is over.

Sources also said that as part of the deal to end the legal madness, Zennström and Friis will get 10 percent of Skype back for rights to key software technology they control, an option to pay $83 million for another three percent of the Internet telephony service and two seats on the 23-member board.

Also, BoomTown has learned that a partridge in a pear tree will be thrown in to guarantee a lasting peace.

All kidding aside, the settlement is proof that squeaky wheels–especially if they hire the combative litigators of Skadden Arps–get the grease.

As has been previously reported, one of the investors in the consortium that won the bidding to buy 65 percent of Skype from eBay (EBAY)–which itself had bought it in 2005 from Zennström and Friis–has withdrawn its investment and involvement as part of the settlement.

That would be London-based Index Ventures, which was a smaller player in the group with–ironically–a three percent stake.

Nonetheless, Index had an outsized fight going on with Zennström and Friis.

That’s due to their ire, aimed at Index’s Mike Volpi, who was CEO of Joost, the failed online video site the pair founded.

After Zennström and Friis lost their own bid to buy back Skype, they quickly sued Index and Volpi via tech companies they control, Joltid and Joost, in Delaware.

The pair alleged that Volpi used confidential information gleaned from his time as Joost CEO to unfairly help the winning consortium acquire Skype.

The lawsuit was particularly vindictive, using embarrassing emails and making pointed accusations about Volpi plotting all kinds of nefarious schemes, like Lady Macbeth on steroids, on his way out of Joost.

I am not sure what law one can break for wanting to leave a job or how much damage one can do to an already failing business, but that did not stop Zennström and Friis from trying to pin some specious accusations on Volpi.

(I wouldn’t have been surprised if they had accused Volpi of being responsible for Balloon Boy.)

But such legal attacks obviously worked, making Index loath to stay in an economically less attractive deal with lessened influence over Skype.

And eBay and the other investors obviously wanted closure, so they could get on with the work of turbocharging Skype.

The fighting between Index and the Skype founders was just one part of the legal morass.

Zennström and Friis had already been in a battle over software licensing issues with eBay in London courts.

They also filed suit again in California against Skype and eBay for copyright violations.

For good measure, the pair added the winning buyout group, including Index, Silver Lake Partners, Andreessen Horowitz and the Canada Pension Plan Investment Board, in that lawsuit.

(In legalese–and in honor of the Yankees winning the World Series tonight–such massive lawsuit-making is called covering all your bases!)

Of course, Volpi and Index fired back in court filings and both sides armed themselves with powerful PR guns.

Presumably, those same mouthpieces–who have been slagging the other side for weeks–will now be at the ready with honeyed tales of reconciliation tomorrow.

Call me cynical, but we’ll see how long that lasts.

“[Zennström and Friis] got what they wanted by using Volpi as a pawn and the lawsuits as a club,” said one person close to the situation. “Everyone is moving on, but not everyone is going to forget what they did to get what they wanted.”

According to sources close to the situation, Index Ventures and Michelangelo Volpi are out of the deal to buy Skype–and their lawsuit-loving nemeses, the founders of the Internet telephony service, are in.

Skype founders Niklas Zennström and Janus Friis had sued Index and partner Michelangelo Volpi via tech companies they control, Joltid and Joost.

The pair had already been in a legal battle over software licensing issues with eBay (EBAY), the company that had sold Skype to in 2005.

They then accused Index and Volpi, employing a reputation-bashing style, of using confidential information as part of a consortium bid to acquire a large chunk of Skype.

Volpi had been Joost’s CEO.

Volpi and Index fired back in court filings and both sides armed themselves with powerful PR guns.

Ironically, Index was only a small part of the group that won the deal to acquire Skype from eBay recently.

News of the serious settlement talks was reported earlier this week by GigaOm’s Om Malik.

The New York Times’s Brad Stone also added significantly to the story about the settlement today, noting the Skype founders would be getting a stake and that Index “is most likely withdrawing from the deal.”

Well, most likely now means certainly for Index, sources told me, and the London-based venture firm that bid for Skype has to bid that deal goodbye.

More details to come, but it’s sure proof that the legal system, such as it was used, works.

The legal high jinks in the contentious battle over the fate of Skype got worse this afternoon, as former Joost CEO Michelangelo Volpi and Index Ventures filed a motion to dismiss a lawsuit brought by the founders of Skype–Niklas Zennström and Janus Friis, via Joost and Joltid–against them.

It’s yet another chess move among a group of well-known tech players, who used to work together closely and are now at odds.

In a filing in the U.S. District Court in Delaware, Volpi and the London-based Index–where Volpi now works–noted, referring to a bid Zennström and Friis made to regain control of Skype, which they sold to eBay (EBAY) years ago:

“Instead of accepting the fact that their bid failed in the marketplace, Friis and Zennström are now using inflammatory and highly-charged litigation–through companies that have no relationship to the Skype purchase–to try to achieve their personal business goals.”

A spokesman for Joost and Joltid did not agree with Volpi’s assessment:

“Mr. Volpi’s latest motion appears to have been prepared prior to Defendants receiving Plaintiffs’ Motion for Preliminary Injunction, which is filled with evidence supporting Plaintiffs’ claims. In light of this strong showing of substantive evidence, much of it from Mr. Volpi’s own correspondence, there is no basis for Mr. Volpi’s assertion that Plaintiffs have somehow failed to state a claim upon which relief can be granted.”

Index was a small player within a group that won Skype, putting in $75 million, in a $2 billion deal that is set to close in the next few weeks.

The motion to dismiss the filing is not surprising given that Joost and Joltid filed a motion for preliminary injunction against Volpi and Index yesterday.

They are asking that he not use knowledge or confidential information he got at the video start-up in current dealings with Skype.

To complicate things further, the innovative and entrepreneurial pair also own a company called Joltid, which has licensed key technology for Skype to eBay.

Joltid and eBay have already been fighting in court over that agreement, bickering back and forth about whether eBay violated the terms of that deal or not.

Via Joltid, Zennström and Friis also filed suit again against Skype and its owner, eBay, for copyright violations in the U.S.

For good measure, they added the winning buyout group, including Index, Silver Lake Partners, Andreessen Horowitz and the Canada Pension Plan Investment Board.

And both Joltid and Joost have also sued Volpi personally, as well as Index, making serious allegations about his behavior as Joost CEO.

Here are several key legal filings to peruse, for all you “Law & Order” types:

Motion to Dismiss _00302105_ –

Opposition to Motion For Expedition _00302104_ –

Volpi Opening Brief 10.15.09 _00302101_ –

Perhaps the sides in the ever-escalating war over the Skype deal will work out their differences and settle–which is what should and probably will eventually happen after everyone realizes how stupid all this noisy legal wrangling over the Internet telephony giant is.

But that day is decidedly not today, given a pair of recent PR hires by parties involved.

The founders of Skype, via the two tech companies they control, Joost and Joltid, have hired Sitrick & Company, headquartered in Los Angeles, while Index Ventures has tapped Joele Frank, Wilkinson Brimmer Katcher, based in New York.

Both strategic communications and public relations firms are well known for employing some very sharp elbows and extremely tough talk when it is time for some creative corporate crisis management.

And both are familiar with tech issues, having worked on contentious issues related to companies such as Microsoft (MSFT), Yahoo (YHOO), CBS (CBS) online unit CNET, and others.

And there is plenty of bad blood to work with here.

Yesterday, in yet another legal volley, Joost and Joltid filed a motion for preliminary injunction against former Joost CEO Michelangelo Volpi and Index Ventures, where Volpi now works as a partner.

They are asking that he not use knowledge or confidential information he got at the video start-up in current dealings with Skype.

Legal attacks have become the negotiating tool of choice from the founders of Skype, Niklas Zennström and Janus Friis, who were on the losing side of the $2 billion deal to buy the Internet telephony giant from eBay (EBAY).

Volpi is now a partner at London-based Index, which was one of the smaller players on the winning side of the bid, putting up $75 million.

To complicate things further, the innovative and entrepreneurial pair also own a company called Joltid, which has licensed key technology for Skype to eBay.

Joltid and eBay have already been fighting in court over that agreement, bickering back and forth about whether eBay violated the terms of that deal or not.

Via Joltid, Zennström and Friis also filed suit again against Skype and its owner, eBay, for copyright violations in the U.S.

For good measure, they added the winning buyout group, including Index, Silver Lake Partners, Andreessen Horowitz and the Canada Pension Plan Investment Board.

And both Joltid and Joost have also sued Volpi personally, as well as Index, making serious allegations about his behavior as Joost CEO.

This kind of mud-slinging could get even worse with the hiring of big PR firms.

Along with Frank and Sitrick, by the way, Silver Lake–which is the big player on the winning side–has hired Edelman’s crisis and issues management team.

Interestingly, several sources said, the various players have also been engaged in settlement talks, even as the lawsuits have piled up.

Coming to some agreement is clearly the best outcome, although it does not appear that the spate of lawsuits has yet derailed the eBay deal with the Silver Lake-led group, which could even close in the next several weeks.

“Everyone should be thinking ahead of the headlights,” said one source. “But right now, it seems to be all about emotions.”

Earlier today, Joost and Joltid attacked!

The pair of companies, which are controlled by Skype co-founders Niklas Zennström and Janus Friis, filed a motion for preliminary injunction against former Joost CEO Michelangelo Volpi and Index Ventures, where Volpi now works as a partner, asking that he not use knowledge or confidential information he got at the video start-up in current dealings with Skype.

It’s the latest volley in an ever-escalating battle over the Internet telephony giant, which also involves eBay (EBAY).

As a public service to all readers who really have nothing else to do, here are the 10 filings related to this latest legal maneuver:

PI Brief – PUBLIC –

Motion To Expedite –

Motion To File Under Seal –

Proposed Order To Expedite –

Proposed Order To File Under Seal –

Exhibits 1-20 to Declaration of S. Dargitz In Support of PI – PUBLIC –

Declaration of S. Dargitz In Support of PI – PUBLIC –

Declaration of Justin Erenkrantz In Support of PI –

Declaration of Janus Friis Degnbol In Support of PI –

Declaration of Owen O’Donnell In Support of PI –

Joost and Joltid filed a motion for preliminary injunction against former Joost CEO Michelangelo Volpi and Index Ventures, where Volpi now works as a partner, asking that he not use knowledge or confidential information he got at the video start-up in current dealings with Skype.

The move is yet another legal attack from the founders of Skype, who were on the losing side of the $2 billion deal to buy the Internet telephony giant from eBay (EBAY).

Opening the “Memorandum of Points and Authorities in Support of Plaintiff’s Motion for Preliminary Injunction,” which is shown below and is full of tough allegations about Volpi’s misbehavior:

“This action arises out of the acts of a faithless fiduciary, defendant Michelangelo Volpi, who, despite being the chief executive and Chairman of Joost, embarked on a systematic scheme to breach his fiduciary duties and promote his own self-aggrandizing campaign to become the next chairman of internet telephony leader Skype Inc.”

Volpi, who declined comment for now, was CEO of Joost, arriving at the much-hyped online video start-up to great fanfare in mid-2007.

But the London-based Joost never quite caught fire and began layoffs and contraction this summer.

As part of that development, Volpi then went to Index Ventures, a venture firm also based in London.

And, in one of Volpi’s first deals, Index was one of the smaller players on the winning side of the bid to buy Skype, putting up $75 million.

But also vying for the prize were the Internet telephony service’s founders, Niklas Zennström and Janus Friis, who had hooked up with a group of private equity investors.

To complicate things further, the innovative and entrepreneurial pair also own a company called Joltid, which has licensed key technology for Skype to eBay.

Joltid and eBay have been fighting in court over that agreement, bickering back and forth about whether eBay violated the terms of that deal or not.

Via Joltid, Zennström and Friis also filed suit again against Skype and its owner, eBay, for copyright violations in the U.S.

For good measure, they also added the winning buyout group, including Index, Silver Lake Partners, Andreessen Horowitz and the Canada Pension Plan Investment Board.

And both Joltid and Joost–aka Zennström and Friis–also sued Volpi personally, as well as Index again.

They allege tech skullduggery on Volpi’s part, in which he used confidential information he learned at Joost to thwart Joltid.

UPDATE: Here is the press release, with the official filing below:

Joost and Joltid File Motion for Preliminary Injunction Against Michelangelo Volpi

And Index Ventures Management, Seeking to Prevent Their Use of Confidential Information In Connection With the Acquisition or Management of Skype

Wilmington, DE (Oct. 14, 2009)–Joost US, Inc., its indirect parent company Joost N.V., and Joltid Limited today filed a Motion for Preliminary Injunction against Michelangelo Volpi and Index Ventures Management in the United States District Court for the District of Delaware. In support of the Motion, the plaintiffs also filed a Memorandum of Points and Authorities containing facts and legal arguments, witness declarations and other evidence.

The Motion for Preliminary Injunction asks the Court to enjoin Index and Volpi from using any of Joost’s and Joltid’s confidential information regarding (among other things) the Global Index Software, the technology developed and owned by Joltid that provides the peer-to-peer capability embedded in the Skype program. The Motion also asks the Court to enjoin the defendants from: (i) using the confidential information in connection with the operation or strategic planning of Skype; (ii) communicating such information to other parties in the “Buyout Group” that has made a bid to acquire Skype from eBay Inc.; (iii) soliciting employees of Joost and Joltid with offers to join Skype; (iv) having communications with current or former employees of Joost or Joltid regarding the companies’ confidential information; and (v) further participating in the Skype acquisition or assuming any position with Skype until a final adjudication of the merits of the case.

The Motion for Preliminary Injunction, Memorandum of Points and Authorities, and supporting declarations are available on the internet at https://www.lexisnexis.com/fileandserve. The case name is Joost US Inc. et al v. Volpi et al and the Case Number is 1:09-cv-708.

The plaintiffs filed a lawsuit against the defendants on September 18, 2009, alleging breach of fiduciary duty against Volpi, aiding and abetting breach of fiduciary duty against Index, interference with prospective business advantage, misappropriation of trade secrets, breach of contract against Index, breach of confidence, and civil conspiracy. The Motion for Preliminary Injunction seeks interim relief until the lawsuit can be completed.

And here is the key filing, one of 10 in the case:

PI Brief – PUBLIC –

Is it just me or is it completely ironic that a pair of European entrepreneurs kept out of the United States due to tantrum lawsuits from the music industry are stamping their own legal feet like two ill-tempered toddlers of late?

That would be Niklas Zennström and Janus Friis, who today filed yet another lawsuit in their seemingly never-ending quest to win in court what they couldn’t in business dealmaking.

Today, via a new lawsuit, they are following through on their recent attempt to smear former Joost CEO Michelangelo Volpi.

Zennström and Friis co-founded Joost, you see, and last week were part of dumping him as a director and as its chairman, a job Volpi had retained when he left his top job at Joost to join Index Ventures in July.

Not satisfied with that, Joost also said then in an astonishing statement: “The company and its board of directors is conducting an investigation into Mr. Volpi’s actions during his tenure as CEO and as chairman.”

Of course, it is all part of the pair being on the very-sore-losing side of the $2 billion deal to buy Skype from eBay (EBAY).

Zennström and Friis got very rich selling the Internet telephony service to eBay in 2005.

This year, they turned around and tried to buy it back, hooking up with a group of private-equity investors.

Both Google (GOOG) and Microsoft (MSFT) also considered bids, and dropped out for various reasons.

And so did Volpi, in one of his first deals at Index–and the London-based venture firm was one of the smaller players on the winning side of the deal to buy Skype, putting up $75 million.

To complicate things further, Zennström and Friis also own a company called Joltid, which has licensed key technology for Skype to eBay.

Joltid and eBay have already been fighting in a British court over that agreement, bickering back and forth about whether eBay violated the terms of that deal or not.

Earlier this week, via Joltid, Zennström and Friis also filed suit again against Skype and its owner, eBay, for copyright violations in the U.S.

For good measure, they also added the winning buyout group, including Silver Lake Partners, Index, Andreessen Horowitz and the Canada Pension Plan Investment Board.

Did I forget to mention that lawsuit-happy Zennström and Friis also sued the investment banker who represented them in the original Skype sale?

So, it comes as no shock that both Joltid and Joost–aka Zennström and Friis–announced yesterday that they are suing Volpi personally, as well as Index again.

They allege tech skullduggery on Volpi’s part, in which he used confidential information he learned at Joost to thwart Joltid.

Evidence and proof–on first blush–seem to have little to do with this and ire at losing a deal and trying to gain leverage for a settlement seem to be the true game.

And what their next legal move might be is anybody’s guess.

But you get the idea here, don’t you?

Revenge is a dish best served cold–except, of course, when one decides to serve it piping hot.

And that’s just what part of one of the losing sides of the $2 billion deal to buy Skype from eBay (EBAY) is doing in an unusual attack on Michelangelo Volpi, a well-known tech exec in Silicon Valley.

You see, until recently, Volpi was CEO of Joost, arriving at the much-hyped online video start-up to great fanfare in mid-2007.

But the London-based Joost never quite caught fire and began layoffs and contraction this summer.

As part of that development, Volpi then went to Index Ventures, a venture firm also based in London.

And, in one of Volpi’s first deals, Index was one of the smaller players on the winning side of the deal to buy Skype, putting up $75 million.

But also vying for the prize were the Internet telephony service’s founders, Niklas Zennström and Janus Friis, who had hooked up with a group of private equity investors.

To complicate things further, the innovative and entrepreneurial pair also own a company called Joltid, which has licensed key technology for Skype to eBay.

It gets better! Joltid and eBay have been fighting in court over that agreement, bickering back and forth about whether eBay violated the terms of that deal or not.

Finally, in the past few days, in what is obviously a related move, Joost said that it had dumped Volpi as a director and as chairman, a job he had retained when he left for Index in July.

Said the company in a statement:

“Mr. Volpi was removed from the board of directors and from his position as chairman of Joost by shareholder vote. The company and its board of directors is conducting an investigation into Mr. Volpi’s actions during his tenure as CEO and as chairman.”

Volpi had no comment.

BoomTown does: It looks like a lame attempt at kneecapping him to me, as part of a larger rumble!

But, for many, this comes as a surprise, since it had been thought that Volpi–a former dealmaker with Cisco (CSCO)–would play the role of a peacemaker in the eBay-Joltid fighting.

Actually, according to numerous sources, Volpi had also struggled with Zennström and Friis when he ran Joost, and there is no love lost among them.

In fact, here’s a glimpse of that tension in a video interview BoomTown did with Volpi a year ago in London, when I visited its office there.

It took place just after Joost was forced to rejigger itself to gain momentum (which never happened).

“Restarting a start-up is definitely not easy,” said Volpi in the interview.

As it turned out, that was the least of his worries.

Here’s the video:

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 is closer to naming a new international head, according to sources, the last big slot left in the top management structure of CEO Carol Bartz.

While BoomTown is endeavoring to get the name of this international man of mystery, several sources said the company has come close to settling on a London-based media exec, who will move to and operate out of its Sunnyvale, Calif., HQ in Silicon Valley.

But it is unclear if or when a final appointment will be made.

That exec could be a lot of people, since Yahoo’s headhunter for the job–Heidrick & Struggles–has pretty much talked to the gamut of international Web muckety-mucks since the search started six months ago.

The many chatted up include: Former Bebo head Joanna Shields (nope, she has a noncompete from AOL); former Joost CEO Mike Volpi (nope, he just landed as a VC at Index Ventures), Microsoft (MSFT) consumer and online man in Britain Ashley Highfield (hmm, would he move so quickly after jumping from Project Kangaroo and the BBC?) and Gavin Patterson, head of the BT Retail unit.

But Yahoo could also opt for a more traditional media exec, said some sources.

In a memo to Yahoo staff after her reorganization in February, Bartz said that “international growth is critical for Yahoo!, which has become too reliant on its U.S. business over the years.”

Still, that key job remains unfilled, in an arena Yahoo has dropped the ball in recently, even as more nimble competitors like Google (GOOG) and Facebook thrive.

In the Yahoo (YHOO) management chart posted below, Bartz has filled the CFO role with Tim Morse and the customer advocacy slot with Jeff Russakow.

Without an international head, the three regional heads worldwide–Rose Tsou (Asia), Rich Riley (Europe) and Keith Nilsson (Emerging Markets)–have continued to report to Bartz. The U.S. region–Yahoo’s most significant market–is headed by Hilary Schneider.

Here is the Yahoo top management org chart, released back in February (click on it to make it larger):

A few weeks ago, when I was having breakfast with legendary Silicon Valley entrepreneur Marc Andreessen about his new venture fund, he talked about what he thought was critical to being successful as an Internet company.

Ticking off names, from Apple (AAPL) CEO Steve Jobs to Facebook CEO Mark Zuckerberg, Andreessen said he always favored technical entrepreneurs for one key reason: “You need someone who lives and breathes product.”

It’s a refrain I have heard a lot recently from a wide range of people in the sector, most especially when talking about two of the more challenging renovations of key Internet brands going on of late.

That would be: Yahoo and MySpace.

In recent days, the focus at both Yahoo (YHOO) and MySpace, a division of News Corp. (NWS), has been on cost cuts, management rejiggering and, of course, layoffs, as new leaders at each Web giant are trying mightily to push the reset button. (News Corp owns Dow Jones, which owns this Web site.)

No surprise, their efforts have gotten a lot of attention and have been the subject of a lot of coverage (here for Yahoo and here for MySpace).

But, as those clean-up efforts wrap up, both have to show a whole lot more than that if either is to truly succeed at their tasks–which is to make both services much more relevant and exciting in the fast-changing Web arena.

While Yahoo and MySpace remain huge Web properties–and Yahoo, in particular, is very profitable in comparison to most Internet outfits–the widespread perception across the digital sector for too long now is that they are both tired in some significant ways and in desperate need of innovation.

Their big tasks include an overhaul of product offerings and features, a refreshing of brand and, most importantly, a strategic rethink that will set them on a new course for the next several years.

This is not a new thing in the Internet space, which has seen once-popular companies fall by the wayside as their products have gotten dull and consumers weary.

AOL–the Time Warner (TWX) unit whose new CEO, Tim Armstrong, is trying to reinvigorate that iconic but deeply tarnished brand too–is the classic example of this problem. But there have been too many that either hobble along, get subsumed into a larger company or just wither and die.

Sudden death is not likely to be the case for either Yahoo or MySpace, but time is most definitely running out for the pair to show some true product pizzazz and a strategic road map.

At Yahoo, most of the glitter thus far has come from the personality and charms of CEO Carol Bartz (pictured here), who has been hard at work projecting an image of moxie and decisiveness in her efforts to get some momentum at the turmoil-plagued company.

Replacing former CEO and co-founder Jerry Yang, Bartz has largely been busy cutting staff, pruning products that she recently dubbed “space debris” and rounding out her executive staff.

She’s also been prepping a new branding campaign to accompany Yahoo’s overhauled front page, which is set for the fall.

But, as the famous Peggy Lee song (see video below) goes: “Is that all there is, is that all there is?/If that’s all there is my friends, then let’s keep dancing/Let’s break out the booze and have a ball/If that’s all there is.”

But breaking out the booze and having a ball is actually not such a bad idea. To my mind, instead of tweaking what is there and emphasizing what it has been, Yahoo now has the chance to just go for broke and boldly make some dramatic choices.

That is especially true if it forgoes a search and online advertising partnership with Microsoft (MSFT), since Yahoo is going to have to do more than just what it already does better.

Interestingly, it is Microsoft, with its well-reviewed new Bing search service, that seems the most aggressively innovative these days.

So, why not, for example, make a shocking move, say, into the premium online video space? Yahoo certainly could pick up some damaged goods, like Veoh and Joost, on the cheap.

But what about buying the early winner: Hulu?

While the three studios that are its joint owners (the fourth owner is Providence Equity Partners)–News Corp., Disney (DIS) and GE (GE) unit NBC Universal–don’t seem inclined to sell, many sources close to the company said they most certainly would for the right price and perhaps a stake in Yahoo too.

Yahoo has been one of Hulu’s many distribution partners, but that effort has been lackluster. As owner, it would surely point its vast traffic and tech resources at Hulu to good effect.

In this kind of scenario, Google (GOOG) and Comcast (CMCSA) are also contenders for Hulu, but it is only Yahoo that has the truly better record of being able to create, manage and distribute Web content.

Plus, you could call it: HuHoo or YaLu or, better still, HooLu.

There are lots of ideas along these lines for Yahoo, but the overarching idea is to dominate in areas its rivals do not.

For MySpace, which was the dominator until rival Facebook cleaned its clock and then some, it is both a crisis of identity, a broken consumer experience and technology that needs a major overhaul.

It is hard to say what MySpace is, except really noisy. While the music part of that is good, the idea of making it hip again seems well-nigh impossible.

But it could be useful as an entertainment hub where it is fun to be. News Corp. CEO Rupert Murdoch raised this concept recently, in fact, and it is a good one.

That’s because Facebook is aggressively un-fun, with a fascist design sensibility and a thick ethos of utility and enforced busy-ness. Whenever I use it, I always start to feel like I am 23 minutes late.

There really is no good overall and unified entertainment hub on the Web in a massive way–one that aggregates all kinds of interests. I would, for example, love a place where I could easily live in a “Gossip Girl” universe.

Best of all, such a direction moves MySpace well away from Facebook, where is needs to get pronto.

MySpace CEO Owen Van Natta (pictured here) said as much in a memo to employees yesterday:

“As I’ve said before, simplifying and unifying our site is fundamental to our success going forward. MySpace should feel like one platform–not 15 sites loosely stitched together. We consider our diverse content offering a strength but too many logos and disorganized verticals makes the site difficult to navigate and creates confusion about our brand identity. Our users don’t know if we’re a social portal, a music site, or an entertainment hub.”

In her own memo last week, Bartz also talked about the need for speed and definition of Yahoo:

“I’ve noticed that since the reorg, people seem like they’re waiting for something. I’m not sure if it’s a sugar-low or what, but we need to stop waiting and get moving. Good things do not come to those who wait, they come to those who make things happen.”

Actually, per Marc Andreessen, good things come to those who make things. Wonderful things, fun things, memorable things and, if you are Steve Jobs, just one more thing.

Let’s just hope in the case of Yahoo and MySpace, they don’t settle for just any thing.

Until they do that thing they do, here is a catchy video from the movie, “That Thing You Do”:

Two years ago, Index Ventures was part of a group that invested $45 million in Joost, the then-hot-and-hyped online video service, while bringing on well-known tech exec Mike Volpi (pictured here) as CEO.

Now, he is headed to Index as a partner at the venture firm, in what some might think is an ironic move.

That’s because last week, after much effort to get traction for Joost, Volpi announced that the service was undergoing a major shakeout–drastically cutting staff and shifting its business model and strategy.

Volpi also stepped down as it top exec, although he will stay on as chairman of Joost.

The development for the much-hyped Joost caused a small hubbub across the Internet, with much second guessing over could-have, would-have and should-haves about its strategies and product.

At Index, according to the press release, Volpi will be “based in the London office as part of the venture team where he will lead early stage investments in the Internet, telecom/networking and media sectors and contribute to the firm’s later stage growth fund.”

BoomTown talked with Volpi by phone from London about the move, which will be announced today, and about what happened at Joost.

Taking a job at Index, which is also located in London, was a natural one, said Volpi, who made a $10 million investment in Index’s first fund while an exec at Cisco (CSCO).

Over the years, he has gotten to know its partners well, including Danny Rimer.

Volpi also said he thinks it is a great time to be a VC, a new job for him. “In a market downturn, it is a good time to invest,” said Volpi. “There are a lot of great opportunities out there now.”

Currently, he is very interested in Web companies built around transactional business models rather than ad-supported ones, which he thinks need a lot more development to become significant.

Volpi should know, given his recent experience at Joost, which relied on the still nascent advertising business for online video.

“At the end of the day, the consumer offering we had was not working, a lot because we did not have enough access to content we needed to build traffic,” said Volpi.

Joost was competing with outfits like Hulu, which is joint venture of two major media companies, News Corp. (NWS) and GE (GE) unit NBC Universal, as well as Google (GOOG) video unit YouTube.

The video service was started by Janus Friis and Niklas Zennström, whom Volpi met when he served on the board of their last hit, Skype.

Volpi said that to keep competing, it needed more funding. And, since no online video service was making money, he said it was decided a change was needed instead of just keeping on the same path.

Thus, the shift to a white-label video service, becoming a back end for other video players, which is still putting Joost into what is still a very competitive business.

Volpi acknowledged this, although he noted: “It is better to be competing in sector that has profitable rivals than one that does not.”

Discussions with possible acquirers of Joost also did not pan out, due mostly to price issues. But, said Volpi, it yielded some insight about Joost’s future direction.

“Not everyone wanted to pay a lot to own Joost, but a lot of people wanted to rent it,” said Volpi.

Volpi called his time at Joost “a fantastic experience,” which he also hopes will be the case at Index.

In addition, here’s a video interview I did with Volpi when I was in London last year:

And here is the official press release on the move of Volpi to Index:

MICHELANGELO VOLPI JOINS INDEX VENTURES AS PARTNER

Technology Executive to Invest in the Internet, Telecoms, Networking and Media Industries

LONDON, GENEVA and JERSEY, 6 July 2009–Index Ventures today announced that Mike Volpi, a renowned technology industry veteran, joined the firm as a partner. Volpi is based in the London office as part of the venture team where he will lead early stage investments in the Internet, telecom/networking and media sectors and contribute to the firm’s later stage growth fund.

During his 13 year career at Cisco, Volpi acquired more than 75 companies and served as Chief Strategy Officer responsible for corporate strategy, business development, strategic alliances, and advanced Internet projects. Volpi then led Cisco’s billion dollar routing and service provider business. For the past two years, Volpi was CEO of Joost, an Internet startup focused on online broadcast TV, and recently transitioned into the role of Chairman. Volpi started his career at HP in 1989.

“Mike has been a close advisor to the Index family for more than 10 years. He has worked closely with several of our portfolio companies such as Skype, TrialPay, Joost, FON and Telegent, even serving on some of their boards, so it’s a natural progression to have him officially join our team,” said Giuseppe Zocco, partner and co-founder, Index Ventures. “Mike’s world-class leadership qualities, transaction experience, and network make him a great addition to our partnership and will enhance our ability to serve our portfolio companies.”

“Venture has become a global business and I’ve watched Index take their place as a marquee name by investing in industry-altering businesses such as Betfair, MySQL and Skype,’ said Volpi. “I’m excited to become part of this team and look forward to helping Index partner with the next generation of great entrepreneurs.”

“Index companies have benefited from Mike’s wide ranging experience and his perspective will be invaluable as we continue to identify disruptive companies to invest in,” said Danny Rimer, Index partner.

“Mike has been a great source of strategic advice and has opened many doors for Telegent ever since Index invested in the company,” said Weijie Yun, CEO of Telegent Systems. “We highly value his perspective and we look forward to working with him even more closely now that he is a permanent member of the Index Ventures team.”

]]> http://kara.allthingsd.com/20090706/mike-volpi-jumps-from-joost-to-index-a-boomtown-interview-and-full-press-release/feed/ 1 http://kara.allthingsd.com/20090327/jon-miller-to-news-corp-as-digital-head/ http://kara.allthingsd.com/20090327/jon-miller-to-news-corp-as-digital-head/#comments Sat, 28 Mar 2009 00:20:33 +0000 Kara Swisher http://kara.allthingsd.com/?p=11378

BoomTown has confirmed a report by Nikki Finke of Deadline Hollywood Daily that former AOL head Jon Miller is set to take over as digital head at News Corp., replacing Peter Levinsohn.

The move was also mentioned in a blog post by Miller’s partner in an investment company, Ross Levinsohn, who once held a smaller version of the job Miller is taking.

But Miller has not actually signed up for the job officially, since he is still under a noncompete agreement with Time Warner from his AOL stint. It runs out in three days, in fact.

As some might recall, Miller was barred from taking a board seat at Yahoo last year by Time Warner CEO Jeff Bewkes.

But sources said News Corp. is likely to announce Miller as head by Monday or Tuesday at the latest.

Once he does sign, which seems likely, Miller will become News Corp.’s chief digital officer, reporting directly to the media giant’s head, Rupert Murdoch. Based in New York, he will also be chairman and CEO of the newly created News Digital Media group.

Sources noted that this is a a different and larger platform for Miller, bigger than just the Fox Interactive Media job that Levinsohn held. It will go across all properties held by News Corp. across the globe.

“The idea is to mainstream the digital initiatives, which have been all over the company,” said one source close to the situation.

Levinsohn will move to another job within News Corp. (NWS) at the film and television studios, to coordinate delivery of its assets on mobile and digital platforms, sources said. It will be his task to create sustainable business models in this fast-moving arena.

News Corp. has, in fact, been searching for a new digital head for the past several months, talking to a number of well-known Internet execs, including Joost head Mike Volpi, former AOL exec Jim Bankoff and former Facebook exec Owen Van Natta.

The decision to rejigger News Corp.’s digital assets came after the announcement that President and COO Peter Chernin was leaving his job and has largely been pushed by Murdoch.

Previously, Chernin had been in charge of digital efforts at News Corp.

The search for the position was, in fact, conducted by well-known head tech and media headhunter Jim Citrin of Spencer Stuart.

Ironically, Miller is still essentially taking a job once held by his current partner, Ross Levinsohn, at the investment fund, Velocity Interactive Group. As I noted above, Levinsohn confirmed the Miller offer from News Corp. in a blog post called “Thunderclap.”

The move is a fascinating one, and one of many in the digital arena of late among its top execs. Former Google (GOOG) exec Tim Armstrong recently took over as CEO of the Time Warner (TWX) online unit AOL, for example.

Also, even though the job will cover all the the many News Corp. Web properties, even more compelling will be how Miller will deal with its largest and most prominent asset: social-networking giant MySpace.

More to the point, it will be riveting to see how he will handle managing MySpace co-founder and CEO Chris DeWolfe.

Both previous FIM heads, Ross Levinsohn and Peter Levinsohn, many sources said, had to deal with DeWolfe’s own sphere of influence within News Corp., especially his close ties to Murdoch. Both FIM and MySpace are located in Beverly Hills, Calif.

Relations between DeWolfe and both those execs could be described, at best, as tense.

But Miller, who is a much bigger Internet player in his own right, with a more powerful charge from Murdoch, certainly is likely to shift that balance of power.

More to come…

(News Corp. owns Dow Jones, which owns this Web site.)

]]> http://kara.allthingsd.com/20090327/jon-miller-to-news-corp-as-digital-head/feed/ 2 http://kara.allthingsd.com/20081118/yahoos-peter-chernin-principle-and-other-ceo-choices/ http://kara.allthingsd.com/20081118/yahoos-peter-chernin-principle-and-other-ceo-choices/#comments Tue, 18 Nov 2008 08:12:18 +0000 Kara Swisher http://kara.allthingsd.com/?p=6607 Obviously, the dream CEO for Yahoo is News Corp. President and COO Peter Chernin.

And, no surprise, he is the No. 1 choice of most inside and outside Yahoo (YHOO) in the wake of the news late yesterday that current CEO and Co-Founder Jerry Yang is stepping down.

And why not? Chernin has the right resume: Experienced at running large and complex organizations; savvier than most in media about the Internet; able to make the kinds of dramatic decisions needed; and, perhaps best of all, signaling–via the Los Angeles Times–just this past week that he was open to leaving the powerful media and entertainment conglomerate for something new.

Well, Yahoo would certainly be new for Chernin, in terms of a corporate cleanup challenge, especially compared to figuring out how to make bank on plush toys from “The Simpsons.”

And, while the risks are many, if Chernin (pictured here) managed to turn around Yahoo, he could make a huge fortune too, given Yahoo shares have languished of late, much in the same way they did when former CEO Terry Semel came to Yahoo from Hollywood in 2001.

But it’s not altogether clear whether Chernin would actually leave his powerful perch at News Corp. (NWS)–which owns Dow Jones and owns this Web site. He has been ensconced there for a dozen years, building a huge reputation as a sharp exec (No, Peter, I am not kissing up, as I think Yahoo would wear even you down very, very quickly).

That’s even though many note he is not likely to take over as CEO from its iconic leader, Rupert Murdoch. The media mogul is widely expected to favor one of his own children to lead News Corp. next.

And the 57-year-old Chernin already makes close to $30 million in his current job, which is definitely challenging.

And, although Chernin has been involved in the News Corp.-owned MySpace and has had success backing the Hulu online video site, it is not nearly as hard as the five-year turnaround quagmire (plus no fabulous media mogul perks either) that Yahoo could turn out to be.

In addition, privately to other News Corp. execs, Chernin has regularly pooh-poohed a move to a digital company, even though he is always on the short list for a lot of big Internet jobs–such as the long-unfilled post as digital head at Microsoft (MSFT) more recently.

So, who else to take over from Yang, who will return to his job as Chief Yahoo after stepping down from the company as soon a search for a replacement CEO is successful?

Well, here is BoomTown’s own shortish list, based on asking a wide range of people inside and outside Yahoo, all of whom are important digital players in their own right.

INSIDE YAHOO

Sue Decker:

The current President of Yahoo is certainly being “considered” for the job, which is a polite term for not really being considered at all. While Decker is an intelligent and thoughtful exec, like a politician with a record, she has had her hand on the operating tiller at Yahoo for too long not to get deservedly blamed for its current situation.

In addition, she is radioactive to big investors, who have told the Yahoo board in no uncertain terms that she is a nonstarter.

Maggie Wilderotter:

The former Microsoft exec, who has also been a public company CEO, is an interesting idea floated by some, who think the Yahoo board might turn to one of its own directors, as a short-term solution to stabilize Yahoo.

Wilderotter has been much focused, said several Yahoo execs, on cost-cutting at Yahoo and certainly is not as tarnished, being a more current board member. But she is a largely unknown quantity in the Internet space and, most importantly, at Yahoo.

John Chapple:

The former CEO of Nextel is one of the two board members (former media Frank Biondi Jr. is the other) recently picked by Carl Icahn, when the activist shareholder was admitted on the board as part of the proxy fight settlement.

Chapple has, sources said, been conducting chats with Yahoo execs lately, perhaps as a way to get a lay of the land. If he got the job, it would be clear Icahn had won his Pyrrhic victory (and personal financial defeat) against Yang.

OUTSIDE YAHOO

Dan Rosensweig:

The very funny, but brash, former Yahoo COO is definitely a favorite within Yahoo’s ranks, except for those who don’t like him. But it’s clear Rosensweig does know and love Yahoo, is close to Yang and, ironically, enjoys a tight relationship with Microsoft CEO Steve Ballmer, who also wanted him for the digital head job.

Also, Rosensweig, who does have operating chops, has gotten some much needed time away from Yahoo, as a partner at the tony media investment firm, the Quadrangle Group.

Meg Whitman:

Another dreamy CEO choice, except she has already been a big company CEO at eBay (EBAY), has proved her mettle in building it to a powerhouse–despite the online auction site’s currently harder times–and has the giant fortune to prove it.

And, oh yes, she is likely to be using that pile of cash to run for governor of California, on the Republican ticket.

Jon Miller/Ross Levinsohn:

The Bobbsey Twins of the Internet, the pair are now having a very good time running their own investment company, the Velocity Group.

But, aside from some questioning whether he can make the quick decisions needed at Yahoo, Miller (pictured here on the right), the former head of AOL, does not want to leave his New York home and cannot take any job anyway until his noncompete with Time Warner (TWX) runs out in March.

And former Fox Interactive Media head Levinsohn likes Los Angeles, and probably is too fast a personality for Yahoo (his going there would be a shock to its system, but would be endlessly entertaining to me personally).

Tim Armstrong:

The top ad exec at Google (GOOG) certainly is an interesting idea, although has little of the product experience needed to run Yahoo. But he is a well-respected advertising figure–where Yahoo needs to shine–and could do well with a lot of strong execs under him.

He is also not on a CEO path at Google–paging, Larry Page!–and could be interested in proving he could run a company on his own.

Kevin Johnson:

The former Microsoft exec was supposed to be running Yahoo, if he and Ballmer pulled off their takeover attempt earlier this year. They did not, and Johnson then left Microsoft to run Juniper Networks (JNPR) in Silicon Valley, right up the road from Yahoo, in fact.

But Johnson is likely subject to a noncompete by Microsoft and a strong contract at Juniper too. Still, a very sharp exec, he definitely has the operating, political, technological and digital skills to take on Yahoo. Also, ironically, he and Yang really get along well and like each other, despite the takeover battle.

Of course, there are a lot of other ideas: Disney (DIS) online exec Steve Wadsworth; the outside-the-box choice of former Procter & Gamble (PG) marketing wizard Jim Stengel; Microsoft digital exec Yusuf Mehdi; CBS (CBS) digital head Quincy Smith (whose hyperactive dealmaking would likely lead to a mutant merger between CBS and Yahoo); and former Cisco (CSCO) and current Joost CEO Mike Volpi.

Please post suggestions below or, better yet, send tips to me at here.

Please see this disclosure related to me and Google.

]]> http://kara.allthingsd.com/20081118/yahoos-peter-chernin-principle-and-other-ceo-choices/feed/ 2 http://kara.allthingsd.com/20081110/since-microsoft-cant-pick-its-digital-head-boomtown-does-it-for-them-volpi-smith-armstrong/ http://kara.allthingsd.com/20081110/since-microsoft-cant-pick-its-digital-head-boomtown-does-it-for-them-volpi-smith-armstrong/#comments Mon, 10 Nov 2008 23:07:34 +0000 Kara Swisher http://kara.allthingsd.com/?p=6272 Another week, another nonpick for the still-outstanding position to lead Microsoft’s digital business.

The company has been on the lookout for the person to lead its online efforts ever since the exec formerly in charge, Kevin Johnson, headed out in late July, after the Yahoo takeover bid failed.

At the time, Microsoft CEO Steve Ballmer promised a quick search for a Web leader the software giant has so sorely needed.

But, apparently, quick means not-so-quick at Redmond HQ, where Ballmer has had a few other things to deal with (like the vagaries of Windows Vista!). So, he has cast about for more than three months, both internally and externally, for the person who will turbocharge Microsoft’s Web efforts.

Sources said Ballmer continues to look for an external candidate to save the day, as he has been, preferring an outsider to give the division some spark.

And, while well-known Internet figures like former Yahoo COO Dan Rosensweig, former AOL head Jon Miller and former Facebook exec Owen Van Natta have all taken a pass, Ballmer is soldiering on.

New prospects include former Cisco exec and current Joost CEO Mike Volpi, sources said, with whom Ballmer is likely to be chitty-chatting next.

BoomTown likes that choice, given Volpi has both technical and deal-making skills, and he is someone well-liked in both media and Internet circles. In fact, Volpi has also been a favorite of Yahoo CEO Jerry Yang, who would also dearly love to snag the personable exec.

But Joost, the once-hot online video start-up, has just pushed the restart button with its new flash player, and is hoping to live up to its initial hype, especially in the wake of the success of rival Hulu.

So it is not entirely clear that Volpi would leave at this moment.

Other possible outside digital execs with the right experience are few and far between.

If I was making a list, I would include CBS Digital kingpin Quincy Smith (who probably talks too quickly for Ballmer), as well as Google ad head Tim Armstrong, although both are also unlikely to move from where they are ensconced.

Thus, with so few good choices, it might be that Microsoft (MSFT)–as usual–turns inward.

But even that’s in question, given the prospects of the main internal candidate, Brian McAndrews, who came to Microsoft in its acquisition of aQuantive and runs its online advertising business, seem to have dimmed, sources said. But some caution that McAndrews is not out of the running yet.

The other insider with a chance–Yusuf Mehdi–got the job running MSN and other of Microsoft’s online properties.

He is waiting for the digital uber-boss to lead him, as well as McAndrews and also Satya Nadella, the SVP who heads engineering for Microsoft’s search, portal and advertising platform group.

For now, said one source, that appears to be Ballmer. “He’s going to be the digital chief,” joked one exec. “Until he finds someone he likes just as much.”

In any case, here is a recent interview I did with Volpi in London about Joost’s restart:

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