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

Yahoo (YHOO) confirmed the break to BoomTown.

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

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

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

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

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

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

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

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

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

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

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

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

In a week, the entire advertising sales staff of MySpace will gather at a swanky new seaside resort about 20 miles south of Los Angeles to get a first glimpse of the fresh direction the company is preparing to take under its new management.

The beleaguered social networking site has been in the midst of an effort to reinvigorate its image, spur innovation in its product and–most of all–pull itself out of a too-long slump, even as longtime rival Facebook has seen explosive growth.

Now, with a new team of execs, the News Corp. (NWS) property is putting the finishing touches on a master plan, which will include a new redesign of its hopelessly messy interface and doubling down on a product strategy that will center on, said one source, “what we own”–namely, music and entertainment.

On the agenda, aptly enough, for the 150 ad sales employees, who will gather at Terranea in Palos Verdes, is Ben Sherwood, author of “The Survivors Club: The Secrets and Science That Could Save Your Life,” and founder of a Web site of the same name that describes itself as “the place for surviving and thriving.”

Also coming to the meeting will be several bands that have successfully leveraged MySpace as a platform, to talk about their experiences and to play for the crowd.

And, perhaps most importantly, the group might also get to meet its new boss by then, as several sources close to the situation said that MySpace has settled on an exec to fill the key job of running its ad business.

While it is unclear if the deal is completely done, sources said MySpace management will announce the pick this week.

Sources added that MySpace has been particularly interested in one exec from Viacom (VIA) and another from Microsoft (MSFT).

While the sources would not name the Viacom exec, several pointed to Keith Lorizio, Microsoft VP of U.S. sales, as someone MySpace has been targeting.

In late August, MySpace sales and marketing head Jeff Berman left the company as MySpace hired MediaLink, a New York- and Los Angeles-based media consultancy, to help get its ad sales business back on track.

That effort has been led by MediaLink President Wenda Millard, who is well known in the ad industry and was longtime leader of the ad sales force at Yahoo (YHOO).

Getting an experienced top ad exec in place will round out a recent spate of new hiring by MySpace, including a new CTO, Alex Maghen, who moved over from its MySpace Music joint venture, and a new CFO, Mark Rosenbaum.

This has been part of a wholesale flushing out of most of the top execs who worked under co-founder and former CEO Chris DeWolfe by new CEO Owen Van Natta.

Van Natta, along with COO Michael Jones and Chief Product Officer Jason Hirschhorn, have been squirreled away since late April, working at cleaning up the company by replacing management, restructuring its various units and cutting costs, including massive layoffs.

They have also been trying to come up with a plan to differentiate MySpace from Facebook, a good strategy since it is now well-nigh impossible for the Beverly Hills-based MySpace to catch up with the Palo Alto, Calif.-based Facebook’s galloping growth.

While the whole new offering will not be rolled out prominently until at least the first quarter of next year, said several sources, some changes will begin sooner, including a gradual redesign of the site.

Under the new plan, said several sources, the main idea will be to shift the focus to engagement over sheer audience numbers. While MySpace is still huge, with about 70 million monthly U.S. visitors, increasing how much time they spend on the site is the goal.

“It’s not like numbers are not important, but the better metric for MySpace will be how involved users are,” said one person close to the situation. “MySpace needs to win on minutes.”

And, rather than the wider and more scattershot approach of past years, the new direction being stressed is more scalable and focused.

“It is not about getting everyone and their mothers on MySpace,” said a source, “but about being a better site to those here.”

That will include stressing “ownership” of online categories, which for MySpace are music and entertainment, with the hope that advertisers will be attracted to more engaged users.

Unlike Facebook, which is often described as a utility platform for communications between friends, sources said MySpace will be aimed more at being a platform for communities of interest.

That includes using tools from other companies, such as MySpace’s recent two-way synch with Twitter, the hot microblogging service, to link those communities.

Presumably, the company’s August purchase of iLike, the social music start-up, is also part of that plan.

“Instead of the ability to just connect friend to friend in a single social graph, this will be about connecting a person to their communities of passion and interest and to others like them anywhere,” said one source.

Music is the obvious key leverage point, the still-bright spot of MySpace, followed by adding big entertainment categories like movies, television, gaming, video and other pop culture arenas.

(BoomTown request: Become the HQ for “Gossip Girl” addicts, um, fans, and I am so there.)

“MySpace should represent pop culture online to customers and advertisers,” said one source. “The core strength has always been music and that is where the site will really excel, because it binds customers to the service.”

The even heavier music focus on the main juggernaut site, noted several sources, does create an odd situation with MySpace Music, the separate joint venture the site has with music labels to create a massive music community.

While sources do not think News Corp. will attempt to suck MySpace Music back into the main site, due to the complex partnership issues, the idea is to make them even more deeply integrated and to sell them to advertisers as one powerful marketing message.

In any case, several sources noted that one of the most successful parts of the new plan has been to convince News Corp. leaders that MySpace does not have to beat Facebook to be successful.

Sooner than later, of course, MySpace has to do just that.

Will it work? Who knows, but said one source close to the situation quite correctly:

“There is no silver bullet for MySpace–it just has to climb back step by step.”

(Full disclosure: News Corp. also owns Dow Jones, which owns this site.)

According to sources close to the situation, AOL has been busy selecting the board for the company, which is still set to spin itself off by year’s end–even as it slows down a decision on a new search deal with either current partner Google or a more emboldened Microsoft.

AOL is using Spencer Stuart in the search for directors, led by well-known headhunter Jim Citrin, sources said, and the company has already settled on several outside candidates.

The final board is likely to have about 10 members, and up to a dozen.

At least one of those seats will go to CEO Tim Armstrong, with one or two more claimed by its current corporate owner, Time Warner (TWX).

AOL and Time Warner made their own wish list of potential directors earlier this year, but some people are also lobbying the company to join the board.

BoomTown is working on discovering all those names, but sources added that the candidates being looked at are a mix of personalities culled from the media, advertising and Web worlds.

Among the key attributes: More presumably fast-forward and innovative Silicon Valley types that can help burnish AOL’s tarnished tech cred.

Here are some of my picks:

Facebook COO Sheryl Sandberg, Guitar Hero CEO Dan Rosensweig, WordPress founder Matt Mullenweg (actually, AOL should buy the start-up), eBay (EBAY) CEO John Donahoe, LinkedIn Chairman Reid Hoffman or CEO Jeff Weiner, Juniper Networks (JNPR) CEO Kevin Johnson, Netflix (NFLX) CEO Reed Hastings, and former AOL iconic exec Ted Leonsis.

And, just for fun, News Corp. (NWS) digital don (and ousted former AOL head) Jon Miller or former Yahoo President Sue Decker.

(I might also add former AOL exec, Netscape co-founder and all-around entrepreneur Marc Andreessen, but if he joins another tech/Web board, he is going to get splinters.)

That’s because Armstrong has set a strategy centered around the turbocharging of online content, powered by a more flexible platform and paid for by goosing AOL’s graphical advertising business.

This puts the online icon–once a powerhouse and now not so much, having operated inside Time Warner since its merger early in this decade–in more serious competition with Yahoo (YHOO).

Yahoo now dominates content on the Web, with powerful news, sports and finance sites, and has recently been trying to reinvigorate its brand. This week, it launched a new marketing campaign with the motto, “It’s Y!ou.”

Yahoo also recently struck a search technology and advertising partnership with Microsoft (MSFT), which has now aimed its efforts at AOL.

According to sources, Microsoft execs have been aggressively courting AOL to switch its search business from Google (GOOG).

The search behemoth has long been AOL’s partner in what sources at both companies said has been a productive and lucrative relationship.

Armstrong is also a former top exec at Google, which many at the company hope will further cement its chances.

And while the renewal of that deal does not officially need to be struck until late next year, sources add that Google has already prepared and offered what it considers an attractive new deal for AOL.

But, much to Google’s chagrin, with a focus on the spinoff and preparations for some more cost-cutting in the months ahead, AOL has decided not to accept it yet and is not likely to anytime soon.

While hedging the situation in a recent video interview with MediaMemo’s Peter Kafka, Armstrong has also recently met with Microsoft execs, sources said, who have discussed a number of partnership options with him, including a tighter relationship with its MSN content properties.

“There’s no need to rush, especially since there is already a lot on AOL’s plate,” said one source close to the situation. “And, since it has options, AOL is going to take time considering them.”

(For more on Armstrong’s thinking, here’s a link to another video interview I did with Armstrong while both of us were in Germany today, in which he talked about the ad market and AOL’s strategy, but was cagey about being more specific.)

Please see this disclosure related to me and Google.

Wenda Harris Millard–calling in to BoomTown HQ from a cruise either on the way to or the way from Slovenia, since she said she was not exactly sure, given that it was the middle of the night there–wanted to make one thing clear:

She is still working for her dozens of other clients at Media Link as its president, but also has a big new gig helping MySpace get its advertising sales house in order, especially related to strategy and execution.

“I guess it’s a matter of semantics, but I will be leading the engagement,” said Millard. “But, we have a whole team here too, and I am also still working for all our great clients.”

Okay, people?!? Which is, in Slovenian, in case anyone asks there, Wenda: Vidirati narod?

Which is precisely what All Things Digital had written in a previous post: That Media Link was the hired gun on a strategic basis, with Millard as the point person on fixing the ad sales structure, strategy and more at MySpace.

In an internal memo today, MySpace CEO Owen Van Natta said the same: “As part of this process on an interim basis the firm will help manage our day-to-day sales organization under the leadership of Wenda Harris Millard.”

Still, the New York and Los Angeles media consultancy definitely wanted to make clear, both internally and externally, that their hiring had nothing to do with the departure today of MySpace Sales and Marketing President Jeff Berman.

And, indeed, according to both Media Link founder and Chairman Michael Kassan, whom I also spoke with today, Media Link had been talking to MySpace–including Berman, who decided to finally leave only today–since January.

Got it! Media Link also did not hip-check Berman to the curb!

Still, it is a huge and deeply involved job for Media Link, and especially Millard, who will be working with ad sales until a replacement is found for Berman, and then after.

Millard stressed that her new role does not mean spending all her time cussing out ad sales folks who did not make their numbers.

“Media Link will be working on big-picture strategy related to ad sales, product development and structure,” she said. “But, of course, I will be very involved and this is a huge assignment.”

She certainly has the experience to take on the ad troubles of MySpace.

Millard–who was the top ad exec at Yahoo (YHOO) in its glory days and who recently left her job as co-CEO of Martha Stewart Living Omnimedia (MSO)–has been a longtime online exec, working at Ziff Davis Media and DoubleClick in the very early days of the Web. She was also chairman of the Interactive Advertising Bureau last year until this past April.

But she also noted that she did not want people to be confused, pointing out that many others at Media Link will also be working on the fix-MySpace assignment too, even as she will also be tending to Media Link’s stable of clients.

“This is an engagement to help its management drive forward a lot of initiatives,” said Millard. “It is the management of MySpace who are the ones in charge.”

It’s a point that Media Link’s Kassan also made in a conversation I had with him today.

“I am very excited, since it is an important strategic assignment and part of the promise of Wenda’s unique set of skills,” he said, acknowledging that this was an unusually large job, very complex and unique for Media Link. “That said, this kind of work is our sweet spot.”

(Full disclosure: News Corp. owns MySpace and Dow Jones, which owns this site.)

After a while–in a BoomTown mangling of the old cliché–if you are a nail, everything begins to look like a hammer.

So, it is probably inevitable that the next thing for much-beleaguered AOL staffers to start rumbling about is 2,000 people getting laid off next week, as was reported earlier this week by Silicon Alley Insider.

After all, the Time Warner (TWX) unit has a long history of whacking employees. So, it is easier to assume things will not be different under the regime of the latest CEO Tim Armstrong.

Except it’s not actually true that such massive cuts are in the offing, since–as many sources I spoke to said–Armstrong is only in the early part of figuring out what to do about the cost structure of AOL, after laying out a company strategy and rejiggering management recently.

While the end result of the cost-to-benefit analysis might, in all likelihood, mean layoffs of a chunk of its 7,000 employees–a larger number for its smaller operations.

And, after all, staff costs are one of the biggest line items in AOL’s budget–sources at the company said Armstrong will not rely on simply cutting jobs to craft a more attractive budget for its upcoming spinoff.

Still, there is obviously a lot of pressure on Armstrong to get the financials–which are still largely dependent on AOL’s declining, but money-generating, access business–looking pretty.

That access business did almost $2 billion in revenue last year–about half its sales–and it represented almost all its profits.

In contrast, AOL’s advertising business lagged, dropping hugely over the last several quarters.

Still, Armstrong has laid out a strategy that has included, in part:

Being a new kind of content giant, via a series of branded niche media sites, with about 500 full-time writers and editors and 1,500 freelancers; selling premium display advertising on these sites and strengthening its third-party self-service ad network business; finding a way to use its communications properties to redistribute traffic to other properties in a kind of virtuous circle.

There are also local, analytical and venture elements. But–for all intents and purposes–Armstrong’s plan is a content-and-advertising model, supported for now by the dwindling piles of cash from the access business.

That’s why, of course, costs are the next item on Armstrong’s to-do list.

“The cost structure is the last part of what was going to be dealt with, as Tim has told everyone,” said one person close to the situation about the former Google (GOOG) exec. “But, if it is slash-and-burn only, that would be pretty short-sighted.”

Perhaps, except that it is that exact tactic that has been business-as-usual at AOL for far too long.

It did not start out too well for AOL CEO and Chairman Tim Armstrong, with a poll on the screen showing most of the attendees in the ballroom at Fortune Brainstorm Tech voting that the Time Warner (TWX) online unit was either out of juice or irrelevant.

The event, which is taking place over three days in Pasadena, Calif., is packed full of Web and media luminaries, so BoomTown will be sitting in the front row and liveblogging some of the sessions here, such as this one that I did for the session with Bob Iger, CEO of the Walt Disney Company (DIS).

Armstrong did not break any news in the interview with Fortune’s lively interviewer, David Kirkpatrick, relying more on projecting an I’m-in-charge-here attitude and saying confident things like “a challenge is also an opportunity.”

In general, Armstrong tried to be upbeat about the prospects for AOL, which has for too long been the Web’s sad sack of an Internet company.

“We are still in a very large trade wind,” he said, referring to advertisers spending money online. “If someone asked you if advertising [online] is going to go up, I think you would have to say yes.”

To take advantage of that, Armstrong said AOL would be focused on investing “in content systems that connect with advertising systems–that’s a white space we are going after.”

He noted that AOL needs to have the same “plumbing approach” to content that Google (GOOG)–where Armstrong had been a major advertising exec before taking his new job–has had to search advertising.

“You have to take the Silicon Valley approach to content,” Armstrong declared.

Armstrong also talked a little bit about his recent 100-day trip around the AOL empire worldwide and what he got out of it.

“I got a lot of advice from different people about what to do,” he said.

His takeaway, which he will discuss at an all-hands meeting scheduled for tomorrow with AOL staff: “It’s really about strategy. If we don’t have the right strategy, we’re not going to win.”

Which is kind of stating the obvious, but it sounded good.

Armstrong also touched lightly on the issue of getting rid of various assets AOL has compiled over the last several years, like it pricey purchase of the Bebo social networking site.

But some, as I recently reported–such as the Truveo video search service and the information search company Relegence–are staying.

Armstrong also talked of buying, but judiciously–noting to me later that AOL had 900 possible acquisition deals blocked in its pipeline.

Someone call a plumber stat!

Armstrong said he has put a stop to a lot of those deals, including putting the kibosh on a $400 million check he was supposed to sign right when he got there.

It was, as he told me after his interview, a windfall that supposed to go to a big computer maker for a distribution deal, which he chose to pass on.

“Everything has to make sense from a return-on-investment basis for me,” said Armstrong. “It’s that easy.”

And that hard, although he did move the crowd, which was polled with the same questions about AOL’s chances after Armstrong talked.

He got more people in the audience to vote that AOL would “return to health as a major Internet player,” which is–as legions of the company’s leaders have shown–no easy task.

[Photo credit: Brad Markel for Fortune]

Back on April 7, Tim Armstrong sent a memo to the long-battered troops of AOL about a 100-day vision quest the new CEO and chairman was going on to find out “how to bring back the magic of AOL.”

It is now Day 86, and Armstrong is closing in on the end of a Where’s-Waldo commitment that he made then to visit all of the far-flung offices of the Time Warner (TWX) online unit globally.

More importantly, as it is almost over, Armstrong also has to make good on another promise he made in that memo he sent to the staff on his first day:

“The culmination of the 100-day process will end in Dulles with an All-Hands meeting in mid-July. At that meeting, we’ll review the feedback we’ve received–both internal and external. We’ll also discuss our strategic direction for the coming years, and highlight areas that will bring AOL and AOL properties into the next decade of digital leadership. Most importantly, we will set a course and focus all of our resources to make that course a success.”

BoomTown is eager to see what Armstrong has found out on his trip and what path it will ultimately put AOL on.

So far, the broad outlines of his strategy seem to center on expanding AOL’s content assets, strengthening its advertising network and getting out of businesses the company cannot compete well in, such as social networking.

What other pearls of wisdom Armstrong has gleaned are to still to be revealed, presumably.

His corporate version of “The Amazing Race” is certainly a novel idea, born at his first all-hands meeting in Dulles, Va., which used to be the world-wide HQ of AOL and remains its heart.

There, Armstrong (pictured here) joked to the crowd:

“I know that work goes on across the globe and, in the first 90 days, I’m going to try to visit every office we have and sit down and talk to every employee and that will be something that my wife has actually agreed to let me do so.”

Thus, spouse-approved, the former Google (GOOG) exec has circumnavigated the globe and has held meeting with employees in a wide range of places: Dulles; New York; Baltimore; San Francisco; Mountain View, Calif.; Toronto, Lancaster, Pa.; Denver; Hamburg; London; Paris; Bangalore; Dublin and, this week, Tel Aviv.

But it has not been all tourism, in search of innovation.

During this time, Armstrong has also dispatched employees and top execs, such as advertising head Greg Coleman and communications and communities head Joanna Shields, and hired a few key staffers of his own; announced a pending spinoff of the company; and bought some stuff (including a company he funded).

It will be interesting to see what comes next–after the 100-day gathering in Dulles, which should come sometime after Armstrong’s July 15 deadline, of course.

Party on, Tim.

In the past, Yahoo has used killer lasers and giant afros and has even tried a dog rising from the dead to brand itself.

Also, of course, there was the yodeler.

That was in 2003, in a clever television commercial that featured Yahoo’s famous sound, as rendered by yodeling champ Taylor Marie Ware (by the way, if you click on the exclamation point on Yahoo’s homepage, it still emits an annoying male yodel).

Now, in what many sources at the company said is a major push, Yahoo (YHOO) is working on a massive plan to overhaul its brand in order to repair a damaged public image and focus consumers on what defines Yahoo.

The effort is being spearheaded by newly installed Chief Marketing Officer Elisa Steele.

To take on the task, she has hired both well-known brand consulting firm Landor Associates and an outside consultant named Penny Baldwin, who was a former top exec at brand and ad giant Young & Rubicam.

Yahoo had formerly been using Ogilvy & Mather and Siegel+Gale to work on strategic branding issues. Ogilvy is still working with Yahoo, sources said, but it is unclear if Siegel+Gale remains in the mix.

The new branding of Yahoo, said several people close to the situation, might be built around the latest relaunch of its main homepage design.

The important front-page redo had been delayed by CEO Carol Bartz when she took over in January and is now slated for the fall.

Many themes have been considered to depict Yahoo in the future, many along the lines of Yahoo still being a key hub destination for Internet users.

Those possible directions were discussed at a recent off-site meeting of Yahoo’s top execs, led by Steele, who ran through the tangled history of Yahoo’s marketing efforts and showed off some rough ideas for the future.

One motto considered, among several: Yahoo as “your home on the Web.”

Whether it is going to be a sweet home or not is unclear, and does depend on exactly how much Yahoo is prepared to spend on this rebranding effort.

Microsoft (MSFT), for example, is in the midst of a $100 million marketing campaign around the recent relaunch of its Bing search service.

And Google (GOOG) has a brand that hardly needs any introduction–and on which it has spent very little marketing money–in that its name has become the verb that means “search” on the Web for most consumers.

Yahoo’s branding campaign will certainly have to be a big deal, given that it is one of the top Internet sites in the world and has massive name recognition.

And Bartz has been vocal about the importance of touting Yahoo as a well-known brand, even as she has said a lot internally and externally that she detests purple.

(That has long been Yahoo’s main color and also mantra, as in “bleed purple.”)

In an onstage interview with me at the seventh D: All Things Digital conference in late May, I asked Bartz about the image of Yahoo being broken and how she would change that perception and revive its innovative spirit.

“The best way to change the perception is to do a good job and then talk about it,” she answered at D7. “We just have to get our story out there; we have to continue to appeal to the people that come to us, and frankly, at some point people get sick of having us as the underdog and say, ‘Thank God, Yahoo’s back.’”

Well, that could depend on how well its upcoming branding campaign works or not, which must also be based on the product and business strategy Bartz settles on in her rejiggering of Yahoo.

Tomorrow morning, Bartz will preside, along with Yahoo Chairman Roy Bostock, at its annual meeting in Silicon Valley, although it is doubtful she will unveil any grand plan then for marketing or other major company strategies.

So, until the branding plans are unveiled, here are some of the more memorable Yahoo advertising efforts.

Yodel:

Lazarus the Dog:

Killer Laser:

Afro-tastic:

Odd Advice-giving Canadian Yahoo Creature:

[Belly Yodel photo courtesy of Yodel Anecdotal on Flickr]

Adding the final leg of its new strategy to reinvigorate AOL, the Time Warner online unit said it was buying two small local start-ups, Patch Media and Going.

Each acquisition–which focuses on hyperlocal community news (Patch) and events (Going)–is small, about $10 million.

Ironically, local has previously been a big arena for AOL, which launched its Digital City unit with great fanfare more than a decade ago. AOL still runs Digital City, as well as its CityGuide listing offering.

But, in a move that will surely be scrutinized, Patch is a company whose principal investor has been AOL’s new CEO Tim Armstrong. AOL declined to say how much he had invested in the company, but sources said it was less than $5 million.

Armstrong addressed the issue in an internal memo to staff about the deal, noting he would forgo any profits from the AOL transaction for Patch and get back the seed money he put into the start-up in the form of AOL shares:

“On a personal note, I was an early investor in Patch and committed significant dollars to the vision of improving local communities with deeper online information, accountability through journalism, and a platform for communicating. In discussing our local strategy, AOL and Time Warner looked at Patch as a possible acquisition and I recused myself from that process. At the Time Warner negotiated acquisition price, I was in a position to earn a return on my investment in Patch. However, I have decided to forgo any profit from my seed investment in Patch and I have asked to receive just my seed capital in AOL shares once we separate from Time Warner.”

The New York-based Patch is a platform that does deeply localized coverage of communities about a range of topics, from announcements to news to events to obituaries. It is aimed at competing with local newspapers and other media.

In another interesting twist and blast from the past, Boston-based Going was funded–its last investment was $5 million in mid-2007–by two Web 1.0 portal execs, George Bell of Excite and Bob Davis of Lycos.

Both are now venture capitalists–Bell at General Catalyst Partners and Davis an Highand Capital Partners.

Going, which was originally called HeyLetsGo.com, connects its users with events and each other in a variety of big cities, such as San Francisco, Boston, Chicago and New York.

The focus on local will round out Armstrong’s new push for innovation at AOL, the final piece of his ongoing 100-day evaluation of the much-beleaguered company.

Armstrong has been busy in that time in making massive changes to the structure of AOL, sweeping aside its current set-up almost completely as it prepares for a spinoff from Time Warner (TWX).

That spinoff was announced recently and will result in AOL becoming a standalone company.

AOL’s new business strategy under Armstrong includes keeping its longtime access business, which many thought would be sold off, and putting many of the companies it has recently acquired–including its pricey Bebo social-networking site–in a separate ventures unit, which will try to attract outside investment.

The strategy will focus AOL on several key areas, including access, media/content, “scaled” advertising and communications, and now, local.

Local is also a big focus for players like Yahoo (YHOO) and Microsoft (MSFT) again. Yahoo CEO Carol Bartz specifically mentioned adding more community news, especially about local sports, to its offerings, in an onstage interview two weeks ago with me at the seventh D: All Things Digital conference.

Here’s the internal memo and press release about Patch and Going below:

AOLers –

Our strategy to win in the five areas we’ve discussed starts with innovation and passion. Of the five areas, Local remains the largest white space and offers us an ability to improve the lives of many consumers. It’s a space that’s prime for innovation and an area where we already have strength with a local network that reaches more than 54 million UVs a month and a valuable brand in mapping services, MapQuest.

Our vision isn’t just about optimizing what we have–it’s about overhauling how we approach this space, drawing on our legacy of connecting communities and our long history of organization through DMOZ. It’s about taking one of the most disaggregated experiences on the Web today and making it truly quick and easy for consumers to find the local information they need.

Today, we’re announcing two acquisitions that will enable us to better serve audiences by providing experiences that are highly focused on users’ own neighborhoods–Patch and Going.

Patch.com was built to provide local towns with a robust and interactive platform to publish news and information, with full-time journalists for each town covering government affairs, education issues, and community events. One of the AOLers in our All Hands meeting on May 29 asked what our plan is to help towns, like his, where the local newspaper has gone out of business. Patch is an acquisition that may eventually help that town. Under the leadership of co-founder and CEO Jon Brod, Patch has been able to launch five initial town sites since February and has just announced four additional communities. Moreover, Patch has already received over 230 user requests for “Patches” spanning 39 states and 12 countries.

The second acquisition is a small company located in Boston–Going. Going has developed a local events platform to discover and share information about things to do in a number of leading cities across the country. Under the leadership of CEO Evan Schumacher, Going has launched sites in 30 cities–including New York, Chicago, Los Angeles and Miami–and provides users with RSVP tools and advertisers with self-service event advertising.

On a personal note, I was an early investor in Patch and committed significant dollars to the vision of improving local communities with deeper online information, accountability through journalism, and a platform for communicating. In discussing our local strategy, AOL and Time Warner looked at Patch as a possible acquisition and I recused myself from that process. At the Time Warner negotiated acquisition price, I was in a position to earn a return on my investment in Patch. However, I have decided to forgo any profit from my seed investment in Patch and I have asked to receive just my seed capital in AOL shares once we separate from Time Warner.

Overall, I believe both Patch and Going will add strength and talent to our local efforts and give us an ability to have a unique and defendable local offering that helps people improve their lives. I’m excited that we’ve reached the stage where we can begin implementing in our five key strategy areas, and with today’s announcements we’re off to a great start in Local.

Please join me in welcoming the employees of Patch and Going to AOL and the future of AOL Local. –TA

AOL Acquires Two Local Services, Patch and Going

Acquisitions Add to AOL’s Leading Network of Local Services with a Community-Specific News and Information Platform and a Local Event Platform

NEW YORK, NY–June 11, 2009–AOL today announced two acquisitions in the local space: Patch Media Corporation, http://www.patch.com, a local news and information platform aimed at serving local towns and communities and Going, Inc., http://www.going.com, a local platform for people to discover and share information about things to do in a number of leading cities across the country. Both Patch and Going offer local experiences, content and self-service applications for consumers and advertisers.

“Local remains one of the most disaggregated experiences on the Web today–there’s a lot of information out there but simply no way for consumers to find it quickly and easily,” said Tim Armstrong, AOL’s Chairman and CEO. “It’s a space that’s prime for innovation and an area where AOL has a significant audience and a valuable mapping service in MapQuest. Going forward, local will be a core area of focus and investment for AOL. The acquisitions of Patch and Going will help us build out our local network further with excellent local services that enable people to stay better informed about what’s going on in their neighborhood.”

The acquisitions extend AOL’s network of local services, the largest online local network,* reaching more than 54 million total unique visitors per month.** Both acquisitions also leverage a consumer and marketplace trend toward greater consumption of news and information online.

A recent survey by the Pew Research Center for the People & the Press found that more people now say they get most of their news from online sources than from traditional newspapers (40% vs. 35%).***

In addition, local searches grew 58% in 2008 year over year, while overall searches climbed just 21%, according to research conducted by the Yellow Pages Association in March 2009.

Local advertising (online and offline) represents an approximately $103 billion market (approximately 39% of total U.S. ad spending), according to Borrell Associates in 2009.

Founded in December 2007 and headquartered in New York, Patch combines localized, professional journalism with community contribution and a platform that puts all town assets online – in effect, digitizing the community. Patch, which expects to be available in a dozen communities by the end of the year, currently has “Patches” in five communities with four more in development.

“We are excited to join the AOL family,” said Jon Brod, CEO of Patch. “AOL’s substantial network will help us extend the reach of Patch into more and more communities. And Patch, as part of AOL’s local strategy, will create new opportunities for AOL to delight consumers and provide marketers access to highly targeted and deeply engaged audiences.”

Launched in September 2006 and headquartered in Boston, Going is one of the leading local communities for 20-somethings looking for things to do in cities across the country. Going is available in 30 leading U.S. cities, including New York, Los Angeles, Chicago, Miami and Boston, with several more planned this year. Going also provides local promoters, event organizers and venues a fully automated, self-service RSVP, ticketing and advertising engine to maximize the attendance and value of their events.

“Going allows young people in leading cities to discover upcoming events, parties and new hot spots – and most importantly connect with others who share a similar lifestyle. By joining with AOL, we have the opportunity to greatly expand the reach of our platform to more cities both in the U.S. and around the world,” said Evan Schumacher, Going’s CEO.

“AOL has a legacy of connecting people to the content, community and services they care most about,” said Armstrong. “Patch and Going, combined with our existing network, will enable the company that got America online, to connect consumers around the globe to their communities online.”

* April 2009 U.S. comScore Media Metrix; Local Networks category is a custom built category by AOL.
** Custom AOL-defined Local Networks report, based on comScore U.S. Media Metrix Audience Duplication report (April 2009).
*** Pew Research Center for the People and the Press, “Internet Overtakes Newspapers as News Outlet,” December 2008.

Later today, as BoomTown reported last week, Yahoo is putting on a search party.

Well, not a “party” party–although there will apparently be some lunch noshing at the “Search chalk talk,” during which top techies at the Internet giant will talk up the strategy for its more innovative products, such as Build Your Own Search Service (BOSS) and Search Monkey.

Presenting at the event with be: Prabhakar Raghavan, head of Yahoo Labs and Yahoo Search Strategy; Larry Cornett, VP of Consumer Products; and Lee Ott, senior director, Mobile Search.

Yahoo (YHOO) has a search share that hovers around 20 percent, compared to the more than 70 percent that Google (GOOG) has.

At its HQ in Silicon Valley last week, Google put on a similar show-off, called “Searchology,” about its latest search innovations.

And, although they are clearly No. 1 and No. 2, both Google and Yahoo are bracing for the launch a major overhaul of Microsoft’s (MSFT) search offering, which is expected soon and code-named “Kumo.”

It will be interesting to see what Yahoo’s techies focus on, especially as the company’s brass continue to talk with Microsoft about a possible search and online advertising partnership.

I’ll be liveblogging the Yahoo event, which begins at 11:30 a.m. PDT.

Please see this disclosure related to me and Google.

More musical chairs at Yahoo, which BoomTown predicted recently, as top execs at the company move in and out of jobs, and new ones from the outside move in.

Perhaps the most important change to occur is the replacement this week of SVP Scott Dietzen–who has been in charge of all communications and communities products at Yahoo (YHOO)–by former Adobe Systems (ADBE) exec Bryan Lamkin, several sources said.

Lamkin will become SVP of Applications Products.

According to his profile on LinkedIn, Lamkin (pictured here) was most recently SVP of Creative Solutions, Adobe’s largest business unit, where the software exec “led product strategy, marketing and product development for Adobe’s flagship software applications, including Photoshop, the Creative Suite, Dreamweaver, Flash and Illustrator.”

Lamkin, who was at Adobe for 14 years, has more recently been an executive-in-residence at two venture firms, New Enterprise Associates and Sutter Hill Ventures.

He will take over for Dietzen, who came to Yahoo in 2007 after its $350 million Zimbra open-source email acquisition

Dietzen–whom sources said is more entrepreneurial than managerial and did not want to lead such a big organization at the Internet giant–will become VP of strategy in the move. Many said they expect he will eventually leave Yahoo to try his hand at another start-up.

His colleague, Zimbra founder and CEO Satish Dharmaraj, left Yahoo earlier this year to join Redpoint Ventures as a VC.

In his job since, Dietzen has been busy fixing Yahoo’s mail and calendar offerings. (See my video interview with him below from last fall.)

But that’s not all.

Also afoot is a restructuring of Yahoo’s North American sales unit, with the unexpected promotion of Mitch Spolan, who was a regional sales exec and will now be in charge of all North American field sales.

The paidContent Web site reported the sales changes first, which have been rumored around Yahoo recently.

Spolan jumped over two more senior execs, sources said, who run sales operations for the East and West coasts. One of those execs, Beth Lawrence, will now run Yahoo’s relations with agencies. Both report to U.S. sales SVP Joanne Bradford.

Over the last 18 months, Yahoo has seen a bleeding of its advertising staff to a wide range of Silicon Valley Web companies, including, most recently, Yahoo’s VP of Sales Operations Dan Foehner to social-networking site Facebook.

Lastly, one of Yahoo’s most senior communications execs, Brad Williams, was let go as part of its recent round of layoffs. He had been running PR–admirably and with good cheer, I might add, despite all the bad news–since its head, Jill Nash, departed earlier this year.

Williams’s departure was first reported by The Wall Street Journal tonight. He came to Yahoo in early 2008 from eBay (EBAY).

New marketing head Elisa Steele, who was hired by CEO Carol Bartz, had recently hired a headhunting firm to find a new PR chief, sources said, and Williams was not considered as a candidate for the job.

UPDATE: Yahoo confirmed my report above.

A spokesman sent me the following info about Lamkin’s appointment:

Bryan Lamkin, formerly of Adobe, is joining Yahoo! as senior vice president of Applications Products, reporting directly to Ari Balogh. As a reminder, the Applications Products group consists of several key global products for Yahoo!, including Yahoo! Mail, Yahoo! Messenger, Flickr, Yahoo! Answers, Yahoo! Groups and Zimbra.

Bryan brings a wealth of experience on the consumer technology front and his background ties in nicely with Yahoo!’s ongoing focus to deliver great consumer experiences across the globe.

Bryan takes over for Scott Dietzen, who was named the interim head of Application Products following the reorg back in February. Scott will continue on at Yahoo!, and will work across Yahoo!’s Applications Products in a new product strategy role.

Bio

Bryan Lamkin

Senior Vice President, Applications Product, Yahoo!

Bryan Lamkin joins Yahoo! as the senior vice president of Applications Products. In this role, he will oversee the global strategy, development and performance for key products within the Yahoo! portfolio, including Yahoo! Mail, Yahoo! Messenger, Flickr, Yahoo! Answers, Yahoo! Groups and Zimbra.

Lamkin most recently served as senior vice president and general manager of Creative Solutions, Adobe’s largest business unit. Lamkin led product strategy, marketing and research and development for Adobe’s flagship software applications, including the Photoshop, Photoshop Elements, the Creative Suite, Dreamweaver, Flash and Illustrator.

In his 14 years at Adobe Systems, Lamkin held key management positions including Senior Vice President and General Manager, Digital Imaging and Video and Vice President of Marketing, Professional Publishing Solutions. Lamkin was responsible for product development and marketing as well as the acquisition and product integration strategies that established Adobe’s overwhelming leadership in digital imaging and video and web publishing. Before joining Adobe Systems, Lamkin served in key product marketing and international product development roles at Software Publishing Corporation and holds both a BA and MBA from the University of California at Berkeley.

And here is Dietzen in my video interview:

Last year, Yahoo EVP Hilary Schneider and then-Media Group head Scott Moore had a summery seaside dinner with Demand Media co-founder and CEO Richard Rosenblatt (pictured here) in Santa Monica, Calif., right around the corner from the online publishing company’s HQ.

While many speculated that Yahoo (YHOO) could be doing some friendly kibitzing to get a sense of where the eclectic network of general- and special-interest sites was headed, for a possible acquisition, nothing came of it.

That’s because at the time, Rosenblatt insisted that he was aiming to eventually take his company public and Yahoo was in the midst of ongoing corporate turmoil.

“There is a lot of potential here and I want to build a big company for the long-term,” said Rosenblatt in an interview with BoomTown last July (see video below).

But, as my post noted: “Still, at some point when Yahoo is not in the free fall it is currently in, Demand might make a great purchase for Yahoo.”

And now, a year later, as new Yahoo CEO Carol Bartz works to stop that slide, several sources close to the company tell me another look-see at Demand is likelier than ever.

That’s underscored with recent indications that a major strategy will finally follow through on making Yahoo’s massive but disparate service more social, especially its content offerings.

But would Bartz go as far as making a big buy now or would she be more likely to strike a massive partnership with Demand, from which Yahoo could learn a lot?

Such an acquisition could cost anywhere from $1.5 billion to–as was floated last year in better times–$3 billion. In addition, if Demand was to engage in more serious talks with Yahoo, there would likely be other suitors.

As costly as that is, some sort of link-up with Demand is an interesting idea, especially since Yahoo could use a bold and definitive move to signal social goals that play to its strengths and are not a copycat of more powerful social-networking sites now in place.

At a Morgan Stanley (MS) conference last month, Bartz said, for example, that “I do not believe we can invent the next Facebook,” while noting Yahoo still needed to be more social throughout the service, especially in its content.

And, just yesterday, a Reuters article about that focus was titled: “Yahoo’s Plan: Create Community from Isolated Sites.”

Said the article: “If [Yahoo co-founder David] Filo and new CEO Carol Bartz have their way, the kinds of social networking features available on Facebook will become part of many Yahoo websites and allow their users to network with each other without using Facebook. The company hopes the strategy will help link its disparate properties, bringing more advertising dollars and growth.”

And that’s just at the heart of Demand Media, which dubs itself the “leader in social media.”

Demand was founded in 2006 by Rosenblatt and Shawn Colo, who raised a giant pool of funding–$355 million–from gold-plated investors like Goldman Sachs (GS), Oak Investment Partners and even a private investment from major Yahoo investor Gordon Crawford.

Getting that kind of backing was due to Rosenblatt’s entrepreneurial track record.

As founder, chairman and CEO, he sold iMALL to Excite@Home for $425 million in a 1999 stock swap.

And, perhaps most famously, as CEO of Intermix Media, Rosenblatt sold it with the company’s crown jewel, MySpace, to News Corp. (NWS) for $580 million in cash.

Then, Rosenblatt started Demand, which takes user-generated content of all kinds and on all kinds of topics–especially via video–from an army of freelancers and leverages it into massive traffic that it monetizes.

Demand is also the one of the bigger suppliers of video to YouTube, which it also monetizes.

And, through the acquisition of Pluck, the company also laces social-networking tools throughout the sites, as well as for many well-known third parties.

All this has given Demand upward of 70 million unique visitors per month, at sites like eHow and GolfLink.com, with about $150 million in annual revenue.

And–drum roll please–it is reportedly profitable, although how much is not clear.

While he has long maintained a public offering was on the horizon, despite the weak economy, Rosenblatt has also been interested in the idea of how to revive major players like Yahoo and Time Warner (TWX) online unit AOL.

Both have been struggling, but still have massive traffic and brand recognition, along with large advertising businesses.

And in many ways, the energetic Rosenblatt is just the kind of product-centric and visionary exec Yahoo lacks, despite Bartz’s clear ability to get the company’s management ducks in order.

What could be even more interesting, said one source, would be to marry Yahoo and Demand with a lot of what is going on with the publishing of niche sites at AOL’s MediaGlow content unit, in a giant publishing network.

Ironically, AOL was another acquisition target of Yahoo, in yet another deal that did not pan out last year.

Here’s the interview with Rosenblatt at Demand Media HQ last year:

Buried deep in a recent New York Times profile of Yahoo Co-Founder and CEO Jerry Yang were largely unexplained references to the names of two new initiatives now taking place within the ranks of Yahoo management.

Curiously called Aikido and Judo, after the two best-known forms of Japanese martial arts, they are, in fact, yet another round of navel-gazing strategy overview efforts, aimed at assessing how Yahoo operates its consumer and advertising businesses.

Aikido focuses on Yahoo’s consumer products, while Judo relates to how Yahoo interacts with advertising clients.

And, according to several sources within the company, besides more efforts to streamline Yahoo (YHOO) in both arenas, Aikido and Judo are more specifically looking at what cuts the company can make to meet aggressive financial goals it promised when trying to rebuff a now-defunct takeover bid by Microsoft (MSFT).

Of course, this does bring into question what happened to that last top-to-bottom assessment of Yahoo’s business, which was used to show investors why it was worth so much more than Microsoft had offered.

In its presentation (see one slide from it below; click on it to make it larger), which was made public in March, Yahoo said it aimed to aggressively grow its operating cash flow from $1.9 billion to $3.7 billion in the next three years and grow its revenue to $8.8 billion by 2010.

Both were substantially higher than Wall Street estimates.

Nonetheless, stressing its much-touted “starting point” and “must buy” strategies, Yahoo said in its presentation: “We believe our growth and profitability prospects are not fully appreciated by the public market.”

That still has not happened, as Yahoo shares have stubbornly stayed at about $20 a share for a while now, with no Microsoft offer on the landscape and ongoing worries about Yahoo’s ability to execute on these lofty financial goals.

Now, after the annual meeting is over and its management entrenched, despite continued shareholder ire, Yahoo’s Yang and President Sue Decker have almost no room for error.

Thus, as Yahoo faces economic headwinds, sources within the company said that cost cuts in a range of arenas across the board–such as in its media and mobile properties–are being considered to make the numbers promised.

“Yahoo barely made its second-quarter numbers and there is a definite ad recession now,” said one source. “So now we have to once again rethink everything to deliver what we said we would, and the only way to do that is through cost cuts.”

That’s a fair assessment of what probably has to happen, presumably via Aikido and Judo.

Interestingly, Aikido roughly translates to the “way of harmonious spirit” and focuses on a person defending against, while also trying to protect, the attacker by redirecting the energy of the attack itself.

And Judo, often called the “gentle way,” is more competitive, aimed at immobilizing opponents by throwing them to the ground via a variety of moves and then holding them there.

It would be nice of Yahoo’s business prospects were as easy as all that.