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Internet & Digital Media Recent Headlines  Yahoo Mulls Reorganization as Execs Depart Reuters Yahoo is said to be considering a reorganization to centralize its mail, search and homepage divisions, as more top execs -- Qi Lu, Brad Garlinghouse and Vish Makhijani -- leave the firm. Also: Disgruntled Yahoo shareholder Mithras Capital is reaching out to Microsoft. Nokia to Acquire Social Networking Site Plazes Reuters Cellphone maker Nokia plans to buy social networking start-up Plazes.com as part of a push into offering Internet services. The Berlin-based Plazes provides location-aware services that people can use to plan, record, and share their social activities. YouTube Starts Paying Upfront for Content NewTeeVee YouTube is said to be paying creators a fee to license films for its new indie short-film destination. A YouTube spokesperson says: "We are experimenting with a variety of limited promotional sponsorship programs." Still, YouTube is "not getting into the acquisitions business." Facebook Aims to Rival MySpace In China Reuters Facebook is launching a version targeting mainland Chinese Web surfers to compete with local and overseas rivals in the world's largest Internet market. Facebook is playing catch-up to News Corp.'s MySpace, which established a Chinese-language Web site in April 2007. 'Chinese YouTube' Closed Amid Censor Fears Times of London 56.com, one of the most popular video-sharing Web sites in China, is being shut down, prompting fears the government may be tightening its control over the Internet. 56.com is said to have been closely scrutinized by the Chinese government in recent months. Apple iTunes: More Than 5 Billion Songs Sold UPI Apple is announcing that music fans have bought more than 5 billion songs from its iTunes Store and describes the virtual outlet as the No. 1 U.S. music retailer. iTunes customers are also accessing 50,000 movies every day, making iTunes the world's most popular online movie store. Yahoo Open Source Developer Joins Craigslist Wired Jeremy Zawodny, former open source developer at Yahoo, is landing a new gig at Craigslist, where he will return to his "MySQL roots." Craigslist "is growing like a weed (still!)," he writes on his blog. "There are a lot of technical challenges and great opportunities to grow the site." Web 2.0 Media Reach Critical Mass, Study Says MediaPost Text messaging, blogging and social networking have reached critical mass, with more than half of adults now relying on at least one of these so-called Web 2.0 platforms for communicating with friends, family or colleagues on a regular basis, according to a study by Universal McCann. 'Internet Week' Disappoints NY Tech Bigwigs Crain's New York Tech heavyweights are "irked" by New York City's inaugural Internet Week, a "hodgepodge" of 80 events ranging from a Wii tennis tournament to panels discussing tech's impact on media. The city should have highlighted firms founded in New York, gripes former DoubleClick CEO Kevin Ryan. Analyst: Microsoft May Circle Back for Yahoo eWeek Microsoft will swoop back in after its Aug. 1 annual meeting to buy Yahoo and appease ailing shareholders, predicts IDC analyst Karsten Weide. "The Microsoft-Yahoo story is not necessarily over." The Googlehoo advertising pact, in effect, "has the strength of an egg shell." Yahoo CEO Yang Visits D.C. to Talk Google MarketWatch Yahoo CEO Jerry Yang is visiting U.S. Senate and House leaders to discuss the Internet company's search advertising pact with Google. Lawmakers have antitrust concerns about the proposed union. Combined, Yahoo and Google will account for 80% of all U.S. search ad revenue. 'Hulu Killer?' YouTube Tests Longer Videos Fortune Google's YouTube is starting to test longer videos that are potentially more attractive to advertisers. Short-form video is why people visit YouTube, says a company spokeswoman. "But as we test full-length content, we are starting to see that the audience is potentially there." YouTube to Help Indies Sell Their Movies Associated Press YouTube is setting up a "virtual screening room" for independent filmmakers. Filmmakers can have a "Buy Now" button attached to their work for sales of DVDs or digital copies. They will also collect a majority share of advertising revenue generated from views of their work. Spanish TV Station Files Suit Against YouTube Bloomberg YouTube is being sued by Gestevision Telecinco, the owner of Spain's most-watched television station, for Internet posting of its videos. "We have tried to reach an agreement with Google and we have failed," says CEO Paolo Vasile. "This is an economic handicap for the company." 'Icahn Report' Blog to Go Live on Thursday Reuters Carl Icahn's long-delayed blog, at icahnreport.com, is going live on Thursday, the corporate agitator says. The billionaire investor says he plans to offer commentary on what he calls the desultory state of corporate governance in America. "We're hoping for a grass-roots response." CNET Activist Shareholder Ends Proxy Fight Reuters CNET Networks shareholder Jana Partners says it will drop its plan to win control of CNET's board in light of CBS's plan to buy the Internet media company. Jana, which owns about 10% of CNET, has been fighting to win control of CNET, saying the firm is falling behind peers like Yahoo. Facebook Plans 'Professional Networking' TechRadar Following LinkedIn's success and recent $1 billion valuation, Facebook is also said to have its eye on "professional networking" as a future area for development and revenue. LinkedIn, the social network for professionals, raised $53 million in its latest round of investment. TMZ Explores Live Streams of Celeb News Beet.TV TMZ, the celebrity gossip site and syndicated television show owned by Time Warner, is getting traction with online live streaming. A live video of a parking lot where performer Britney Spears was expected grabbed thousands of viewers for nearly two hours. Google: Slowdown May Boost Internet Biz Reuters The global economic slowdown may have a positive impact on the Internet business as people try to cut their use of fuel and improve efficiency, according to Vinton Cerf, a key exec at Google. "Information technology can be used to more efficiently use scarce resources." MySpace Redesign Clears Room for Big Ads Washington Post News Corp.'s MySpace is getting a renovation as it seeks to build advertising revenue. Starting Wednesday, a new full-page ad will let advertisers dominate the home page. Time Warner movie studio Warner Bros. is the first customer, promoting its upcoming "Batman" movie. LinkedIn Valued at $1B With New Investment Financial Times LinkedIn, the business-oriented social networking site, is worth $1 billion, according to a valuation implied by a new $53 million investment from venture capitalists Bain Capital Ventures, Sequoia Capital, Greylock Partners and Bessemer Venture Partners. Microsoft to Acquire Interactive TV Ad Firm Boston Globe Microsoft will add television spots to its advertising system by acquiring Navic Networks, a Waltham, Mass.-based company that places ads on TV, directing the spots at users who watch particular types of shows. Navic offers "a rethinking of the TV paradigm," asserts CEO Chet Kanojia. Universal, Last.fm Team For Music Videos FMQB Universal Music and CBS's music site Last.fm are announcing a deal to make UMG's music video catalog available for free, on-demand streaming. The deal is Last.fm's first major video partnership. UMG and its artists will receive revenue for every video viewed. AOL Inks Deal to Distribute Scripps' Clips Hollywood Reporter Time Warner's AOL will begin distributing video clips from Scripps Networks' HGTV, Food Network, DIY Network and Fine Living Network. The videos will be available on AOL Video and the portal's Food, Home and Slashfood sites. Scripps started to place its clips on YouTube last month. Hulu Is Kicking YouTube's Ass, Cuban Says Blog Maverick Hulu has one huge advantage over YouTube, says Internet entrepreneur Mark Cuban. The NBC-News Corp. site presents videos with advertising while Google's video-sharing site is merely "a hosting service." By next year, he predicts, Hulu will have "more revenues" than YouTube. Google Is Also Dominant In Mobile Search Ars / PCW Google won 61% of the mobile search market during the first quarter of 2008, according to Nielsen Mobile. Yahoo came in at a very distant second at 18%. Google is set as a factory default search engine on all Apple iPhones. Also: Google is being added to Sony's PlayStation Portable. Yahoo Loses 'Important' Exec as Ranks Thin Bloomberg Yahoo, which is fighting a proxy battle with investor Carl Icahn, is losing top exec Jeff Weiner to venture capital firms Accel Partners and Greylock Partners. At Yahoo, Weiner oversaw the home page, search engine, and news and entertainment sites, among other duties. MySpace Wins $6M From Accused Spammer CNET An arbitrator is ordering Media Breakaway and CEO Scott Richter to pay MySpace $4.8 million in damages and $1.2 million in legal fees. News Corp.'s online social network had accused Media Breakaway of launching phishing attacks and sending unsolicited messages to its users. YouTube CEO to Deliver Broadband Keynote World Screen Chad Hurley, the co-founder and CEO of YouTube, will deliver the opening keynote speech for MIPCOM’s first Broadband Video Summit on Oct. 15. MIPCOM, taking place in Cannes, will also feature keynotes by Viacom CEO Philippe Dauman and former Disney chief Michael Eisner. Quadrangle In Buyout With Greenfield Online TheDeal Quadrangle Group, the investment firm founded by former New York Timesman Steve Rattner, is entering a deal with Greenfield Online to take the Internet surveying firm private for $426 million in cash. Quadrangle's other media investments include magazine publisher Alpha Media. Glam Media to Acquire UK Digital Marketer Wall Street Journal Glam Media, the largest U.S. Web property aimed at women, plans to acquire London-based digital-marketing firm Monetise to jumpstart its global ad-selling. Monetise, which was founded three years ago, sells ads for top U.K. entertainment sites, including TVGuide.co.uk. Armstrong Opens Fitness Site With MySpacer Los Angeles Times Bicycle racing champion Lance Armstrong is teaming with Santa Monica, Calif.-based Demand Media on a for-profit fitness Web site, LiveStrong.com. Demand Media is led by Richard Rosenblatt, best known for selling Intermix Media, the parent of MySpace, to News Corp. Technorati Launches Ad Network for Blogs TechCrunch Technorati, the Internet search engine for blogs, is rolling out Technorati Media, a blog advertising network. Early advertisers on the network include Toyota, Visa, Nike, Chevrolet and Universal Pictures. Other companies running blog ad networks include Federated Media, Glam and Six Apart. Piracy Is Rampant Among Teens, Survey Says Times of London The average teen's digital music player contains more than 800 illegally copied songs, suggests a survey by England's University of Hertfordshire. Illegal copying in some form is undertaken by 96% of 18 to 24-year-olds. The study's findings "totally dwarf anything we expected." Americans Use Internet for 'Unfiltered' Content Associated Press Americans dissatisfied with political sound bites are turning to the Internet for a more complete picture, says a new study by the Pew Internet and American Life Project. Nearly 30% of adults use the Internet to access "unfiltered" material. Also, YouTube is becoming "more popular." Google's 'Dominance' Sparks Ad Discontent Independent Advertisers are growing suspicious of Google's dominance of the online market, with last week's tie-up with Yahoo adding fuel to the fire. Google is "becoming a dominant media owner," gripes iCrossing CEO Arjo Ghosh, "but without the regulation [of] traditional owners." Icahn May Abandon Shakeup of Yahoo Board Reuters Yahoo's new advertising deal with Google "might have some merit," says Carl Icahn. The financier declines to comment on whether he will continue to press his proxy battle to replace Yahoo's board. "I continue to be extremely disappointed with the Yahoo management," he says. MySpace: 'Jury's Still Out' on Monetization New York Times MySpace attracts 118 million users, but the cash is not coming in so quickly. With an eye toward monetization, the News Corp. online social network will unveil a redesign Wednesday. "The jury's still out on MySpace's ability to monetize," says Sanford Bernstein analyst Michael Nathanson. YouTube Plugs Expansion In Living Rooms WebProNews YouTube is holding its first-ever gathering for developers in July at the company's San Bruno, Calif., headquarters. The event will draw attention to new partnerships -- Sony, Panasonic, TiVo -- as the video-sharing site increases user options to "consume YouTube on television sets." Hulu Already a Top Web Video Destination Los Angeles Times Hulu, the NBC-News Corp. free video site, delivered 63 million total streams in April, its first full month of operation, making it the No. 10 online video-streaming service. CEO Jason Kilar says he sees value in developing a "department-store model" for shows. Sony Series Will Start on Web, Go to DVD Wall Street Journal Sony will launch its new show "Angel of Death" on various Web sites. After the Internet run, Sony will release a traditional DVD of the series with additional scenes. The company's plan marks Hollywood's latest attempt to use Internet distribution without losing revenue. Analysts: Microsoft Should Buy AOL, Facebook Barron's / JupiterMedia With Microsoft's talks with Yahoo ending, the question is whether the tech giant will start shopping elsewhere. AOL might be Microsoft's second-best option, according to Gabelli & Co. analyst Christopher Marangi. However, JupiterMedia analyst David Card recommends: "Buy Facebook." AOL's Dial-Up Sale Is Next for Time Warner New York Post Time Warner hopes to move swiftly to find a buyer for AOL's dial-up business after the company completes its separation from the Platform A advertising division in the next month. The media giant is said to have held talks with rival dial-up provider EarthLink about a combination. Google Signs Long-Term Ad Deal with Yahoo San Jose Mercury News Yahoo is turning down an offer from Microsoft to buy its search business and entering a long-term advertising partnership with Google, ending a high-stakes, four-month takeover saga. However, for Yahoo shareholders, "nothing is going to come close to Microsoft's offer," analysts say. Yahoo Is 'Damaged Goods'; CEO Yang 'Blew It' Bloomberg The end of Yahoo's conflict with Microsoft may not turn out well for CEO Jerry Yang or the Internet company's investors. Yang "blew it," analysts say. Yahoo now "has the perception of damaged goods," and Yang may be "more vulnerable" in a fight with investor Carl Icahn. MySpace Plans Redesign to Take On Yahoo BusinessWeek News Corp.'s MySpace will introduce design changes on Wednesday it hopes will make it look and feel more like Yahoo. The social network aims to become more of a gateway to the Web, where users can read news, listen to music, watch videos, and more easily communicate with friends. Facebook No Longer No. 2 Social Network TechCrunch Facebook is catching up to MySpace in terms of unique monthly worldwide visitors. Both services are attracting around 115 million people to their respective sites each month. Most of Facebook's user growth is in international markets; MySpace still dominates in the United States. Google Rumored to Eye Acquisition of Digg Valleywag Google exec Marissa Mayer is said to be "pushing hard" for the Internet giant to acquire Digg, the social news site. Mayer reportedly wants to use Digg to help "fix" Google News, which "doesn't make Google any money." Digg CEO Jay Adelson isn't commenting on the sale rumor. AOL Mobile to Stream TMZ Breaking News TMCnet Breaking celebrity news, photos and gossip from AOL's TMZ.com is now available on AOL's mobile portal, which already provides access to mobile versions of MapQuest, Moviefone and other content. TMZ is said to be the most-trafficked U.S. entertainment news site. Redlasso Hires Ex-Viacom, Paramount Execs C21Media Redlasso is hiring former Viacom CFO Michael Dolan to help fend off potential legal action from CBS, NBC and Fox. The company, whose technology allows blogs to embed broadcasters' online video clips, is also bringing ex-Paramount station group head Anthony Cassara on board. 'Grand Theft' Video Game Set to Rake In $1B Bloomberg U.S. video-game sales increased 41% in May, led for a second month by Take-Two Interactive's "Grand Theft Auto IV." The game is expected to generate $1 billion in sales this year. New York-based Take-Two is resisting a hostile $2 billion takeover attempt by Electronic Arts. AT&T May Charge Extra for Heavy Internet Use Associated Press AT&T, the largest U.S. Internet provider, is considering charging extra for customers who download large amounts of data. "A form of usage-based pricing for those customers who have abnormally high usage patterns is inevitable," says a company spokesman. Google CEO: 'Moral Imperative' to Help Media Biz CNET Google should be seen by media companies as an ally that is trying to make advertising work on the Internet, says CEO Eric Schmidt. "It's a huge moral imperative to help here." Google's goal "isn't to monetize everything. The goal is to change the world. ... We don't have an evil meter." YouTube Hasn't Figured Out How to Make Money Forbes Advertising is yet to take off on YouTube, the Google-owned video-sharing site, because marketers are worried that their brands will appear next to questionable content, says Google CEO Eric Schmidt. He admits that Google hasn't figured out how to effectively monetize the site. EBay Shuts Down Online TV Ad-Sales System Adweek Online auction house eBay is shutting down its Internet-based system for buying and selling television and radio ads. The 1-year-old system won little support from the cable networks, which mostly stayed away fearing the process would cheapen the value of their ads. Yahoo Agitator Icahn to Start Blog 'Next Week' New York Post Financier Carl Icahn announced plans to become a blogger more than four months ago. He now states he will start his blog "next week," but adds that "human nature" could delay his plans. Icahn says he hopes to post entries showing examples of corporate waste. Microsoft Tests Facebook-Like Social Network EWeek Microsoft's Office Labs team, a testbed for ideas from company employees, is testing a Facebook-like social network to help employees keep tabs on each other. The network, called TownSquare, is intended to operate as an internal service within a company. Study: Web Video Use to Rise While TV Shrinks TVWeek By 2013, U.S. consumers will spend as much time consuming video as they do sleeping, driven by more PC viewing over the next five years, says a study from Solutions Research Group. Web and mobile video consumption will rise, while TV likely will shrink in market share. MySpace, Author to Make User-Generated Movie Hollywood Reporter MySpace is collaborating with best-selling Brazilian author Paulo Coelho to make a user-generated movie of his book "The Witch of Portobello." Users can submit videos focusing on one of the book's characters. Up to 15 winning submissions will be molded into a video "mash-up." Facebook to Be Britain's Most Popular Web Site Telegraph Facebook use in Britain is soaring, and will soon be the nation's most popular Web site, according to Nielsen Online. The social-networking site is currently the second most-used site in Britain, behind instant-messaging service Windows Live Messenger, which is falling dramatically. Google: We Support U.S. Internet Privacy Law Reuters Google says it would support the creation of a U.S. Internet privacy law, in response to government concerns about its privacy practices since it acquired competitor DoubleClick. The search giant wants to "put penalties in place to punish and dissuade bad actors." Google, Yahoo: Destined to Become Dinosaurs? USA Today Google, Yahoo and other desktop brands could become "roadkill" -- outclassed by a new generation of mobile phone-based rivals, say tech observers. The matchbox-size screens of handheld devices aren't hospitable to the advertisements that are the lifeblood of current search engines. Google CEO: Get Ready for 'New Online Lifestyle' PC World Companies and industries must shift their focus and embrace a "new online lifestyle" to stay competitive, says Google CEO Eric Schmidt. Incumbent businesses like newspapers have adapted slowly to the Internet, he points out. "People have no patience any more. They want information now." Yahoo Shareholders Seek Repeal of Severance Plan New York Times A Yahoo employee severance plan meant to protect workers after a merger with Microsoft should be scrapped, according to a shareholder lawsuit. Both the plaintiffs and activist investor Carl Icahn, who is seeking control of the Yahoo board, criticize the plan as an obstacle to any merger. Netflix Sells Out Set-Top Boxes, Presses Supplier Bloomberg Netflix customers purchased all of its set-top boxes for streaming movies from the Internet to television sets on stronger-than-forecast demand, says CEO Reed Hastings. Netflix, the largest U.S. mail-order movie service, is pressing supplier Roku to increase production. GigaOM Blogger Launches NewTeeVee Station NewTeeVee GigaOM blogger Om Malik's NewTeeVee.com is spinning off a new site, NewTeeVee Station, a guide to "quality online video" from video sites such as YouTube. Editorial reviews will be written by a team led by Liz Shannon Miller, formerly of Variety and the Daily Reel. TechCrunch Expands Valley Clout Into Politics Los Angeles Times TechCrunch blog founder Michael Arrington is parlaying his Silicon Valley clout into politics, landing interviews with Barack Obama and John McCain. Says one Republican strategist: "Mike [made] the campaigns understand they were talking to a very influential audience of tech leaders." Federated Media Launches Tools for Analytics VentureBeat Blog ad network Federated Media is announcing an analytics service to help advertisers better manage the growing perplexity of online branding efforts. The new service aims to allow advertisers to track ad performance and reader engagement across social media sites. Webby Awards Honor NBC, NY Times, The Onion Hollywood Reporter The Webby Film & Video Awards on Monday night in New York presented a lifetime achievement honor to producer Lorne Michaels for the role that NBC's "Saturday Night Live" has played in online video. Other honorees included the Onion News Network and the New York Times. AOL Revamps Online Radio, Adds CBS Stations Associated Press AOL is revamping its online radio service, adding streams from all 140 CBS-owned radio stations and upgrading its player to add more functions. AOL is looking for new ways to boost revenues from online music streaming a year after copyright judges sharply increased royalties for online. Bebo Teams With Universal Music for Web Drama WebProNews AOL's social networking site Bebo is partnering with Universal Music for an online drama set in the record label's London headquarters. "The Secret World of Sam King" will draw on real-life experiences and incorporate cameos of Universal recording artists. Virgin Megastores in NYC to Shut Down Next Year Fox News The Virgin Megastore in Times Square is said to be preparing to shut its doors next February. Also, the Virgin Megastore in Union Square is being marketed by real estate agents, now that the "record biz has died." Some 80 record stores in Manhattan and Brooklyn have closed since 2003. Apple Shares Drop After Unveiling Faster iPhone Bloomberg Apple CEO Steve Jobs is unveiling a faster, cheaper iPhone handset that may help him convince business users to switch over from the BlackBerry. Apple shares sank 2.2% in Nasdaq trading after saying carriers will no longer have to give the company a cut of the lucrative service fees. Study: Teenagers 'Stressed Out' by Mobile Phones vnunet Teenagers who use mobile phones "excessively" are more prone to disrupted sleep and restlessness, claims new research from the Sahlgren's Academy in Sweden. "Addiction to mobile phones is becoming common. Youngsters feel a group pressure to remain connected." Can Google Trends Predict Presidential Election? TechCrunch If more people are searching on Google for "Obama" than "McCain" does that mean the former is more likely to win the U.S. presidential election? If search volume is predictive of election results and the elections were held today, Barack Obama would win the race for president. Web Video 'Hurt' Hillary's White House Campaign San Francisco Chronicle Hillary Rodham Clinton's campaign was damaged because she was unsuccessful at using the newfound ubiquity of Internet video to effectively shape her image, according to political analysts. Clinton's videos, with their slick production values, were seen as "inauthentic." HuffPo Amateur Campaign Blogger Scoops Pros Washington Post Blogger Mayhill Fowler, in the crush of a crowd in South Dakota last Monday, asked Bill Clinton about "that hatchet job" on him in Vanity Fair, unleashing decidedly unpresidential language. Her audiotape of his remarks exploded across the media landscape, prompting Clinton to apologize. YouTube Launches Video Channel for Reporters VB / B&C YouTube is launching a "Reporter" channel, featuring news-related videos submitted by both amateurs to professionals, in time for presidential race. Also: The Google-owned video site is teaming with the GOP for a contest to send an amateur videographer to the Republican convention. Google Allows 'You' to Sell Ads on YouTube AdAge Google, which has struggled to find the best way to monetize YouTube, is now allowing content creators to sell advertising on their YouTube channels. The revenue is split between the content creator and YouTube, just as it would be if YouTube sold the ads. MySpace's Tech Attraction May Lure More Ads Chicago Tribune MySpace's recent move to allow software developers to make money from their viral creations is beginning to pay off. About 1,000 new applications created for MySpace in the last two months have helped keep the site's 117 million users online longer, which could boost advertising. Yahoo Personalizes Online Newspaper Circulars BtoB Yahoo is launching a circular program for retailers, enabling them to deliver personalized online newspaper circulars directly to customers across the Yahoo network based on their interests. The program is powered by ShopLocal, a multichannel shopping and ad services company. Britannica to Experiment with Users' Content Ars Technica After engaging in high-profile spats with Wikipedia over the accuracy, the Encyclopedia Britannica says it plans to experiment with user-contributed content. Britannica emphasizes that its staff will continue to police content: "We are not abdicating our responsibility." Nielsen Preps Service for Downloadable Media Beet.TV Nielsen Online is preparing a platform to monitor the number of downloaded media served through Apple iTunes and other systems. While Nielsen and others track the views of streaming video, third party monitoring of downloaded video are understood to not currently exist. Apple iPhone 2.0 Expected to Roll Out Today USA Today The Apple iPhone, the combination iPod/phone and Internet device first introduced a year ago, is expected to introduce a zippier version that will operate on much faster networks. New software add-ons have the potential to turn the device into the "essential pocket computer of the future." Amazon Hit by Two-Hour Service Interruption Associated Press Amazon.com's Web site experienced problems in North America for more than two hours on Friday due to system issues. Amazon's systems are "very complex" and "on rare occasions" may experience problems, says a spokesman. The impact on sales is not yet known. Drudge Report Stays Old School, Makes Millions Fortune The Drudge Report, among the Internet's most popular news sites, maintains a spare design that seems unconventional by today's Web 2.0 standards, writes Richard Siklos. Comparing Drudge with the upstart Huffington Post is "off point" because HuffPo is a "news hybrid." Which Tech Giant Will Rule The New Internet? Time Apple, Google and Facebook all want to build the next great platform, writes Josh Quittner. "The winners of the platform wars stand to make billions. The future of the Internet -- how we get information, how we communicate with one another and, most important, who controls it -- is at stake." FCC Delays Consideration of Free Internet Plan Reuters The Federal Communications Commission is postponing its June 12 consideration of a plan to auction a piece of wireless airwaves to buyers willing to provide free broadband Internet service without adult content. The agency wants to look into "concerns" raised by wireless carriers. Virgin In Effort to Stop Illegal Downloading Telegraph Virgin Media, the largest provider of U.K. home broadband, is warning thousands of its customers whose accounts are being used to download or share music illegally. Virgin is stopping short of threatening disconnection, saying it first wants to "educate" customers. 'Grand Theft Auto' Said to Help Boost Economy Hollywood Reporter Sales of the hot-selling "Grand Theft Auto IV" video game have "single-handedly propped up the U.K. economy," asserts Ben Feder, CEO of Take-Two Interactive, as the company announces a $98.2 million fiscal second-quarter profit. Take Two says it is in formal talks to be acquired. Google Lets Marketers Track Impact of TV Ads ClickZ News In its latest attempt to be the one-stop shop for all things advertising, Google is integrating Google Analytics with its Google TV Ads program, allowing marketers to track the impact their TV ads are having on site traffic. Google says it aims to provide ad accountability "on- and offline." Vuitton, Google to Face Off Over Trademarks Ars Technica Google is appealing Louis Vuitton's lawsuit win after the search giant's AdWords allowed firms selling counterfeit wares to buy keywords like "Louis Vuitton fakes." The luxury retailer claims Google doesn't have the right to sell such keywords. The case is now before Europe's highest court. Facebook Tests Letting Users Vote Against Ads VentureBeat Facebook is experimenting with allowing a portion of its users to vote for or against the small "social" ads that appear on the online social network's sidebar. A spokesperson says: "We are evaluating the response to the tool and considering whether to make it more broadly available." AOL to Expand Platform-A Ad Effort to Europe Dow Jones Time Warner's AOL will provide access of its Platform-A advertising effort to European customers. Difficulty in integrating Platform-A led the ad-revenue growth at AOL to slow to 1% in the first quarter. AOL has said that the success of Platform-A is critical to its future. Microsoft CEO Addresses Future of Media Washington Post What is Microsoft CEO Steve Ballmer's outlook for the future of media? "In the next 10 years, the whole world of media [is] going to be turned upside down. There will be no newspapers, no magazines that are delivered in paper form. There are going to be far more producers of content." Icahn Lays Out Five-Point Game Plan for Yahoo CNET Billionaire investor Carl Icahn is revealing his five-step game plan should his dissident slate of Yahoo directors succeed in unseating the Internet company's current board. Among the points: "I intend to replace [CEO] Jerry Yang and return Jerry to his role as 'Chief Yahoo.' " Yahoo Adds 94 Newspapers to Consortium Associated Press Yahoo says 94 newspapers are joining its online advertising consortium, bringing the total to nearly 800. The venture sells online ads on newspaper Web sites. New members include the Chicago Sun-Times, the Milwaukee Journal Sentinel and the Honolulu Star-Bulletin. Wal-Mart In Online Ad Deal With Yahoo WebProNews Yahoo is entered into a multi-year relationship for online display and video advertising with Walwart.com The deal will allow Wal-Mart to use Yahoo's advertising platform to present new offers to online customers. Yahoo will be the exclusive portal to resell Walmart.com's display inventory. Microhoo Talks Could End Next Week Reuters Talks between Yahoo and Microsoft are focused on arriving at a value for Yahoo's search business, and these discussions are likely to conclude in the "next week or so." But Yahoo could still end up striking a search-advertising deal with Google if it fails to agree on terms with Microsoft. Google Leases NASA Acreage for Growth Bloomberg Google is leasing 42.2 acres of land at a NASA research park near its Mountain View, Calif., headquarters to build more offices. The 40-year lease could be extended to 90 years. Google will start construction in 2013. Google's workforce increased sixfold since 2004 to more than 19,000. Social Network Users 'Fear Media Intrusion' BBC News Almost 80% of social networking site users would be more careful about the details they put online if they knew the media might use them, says a poll by the U.K. Press Complaints Commission. The profusion of online personal data has "serious ramifications" for media regulation. TechCrunch to Launch Digg for Startups GroundReport TechCrunch is launching a video site called "Elevator Pitches," which will enable startup entrepreneurs to submit video presentations for ratings, co-editor Erick Schonfeld announced at I Want Media's "Future of Media" forum. Site users will be able to "rate" the viability of the startups. CBS, Yahoo Set to Announce Partnership TechCrunch CBS is said to be preparing an "important" partnership with Yahoo. The Internet company is expected to join the CBS Audience Network, which streams some 70,000 videos to more than 300 partners, including YouTube, AOL, MSN, Joost, Veoh, Fancast and Bebo. Yahoo CEO Yang Has to Go, Icahn Says Barron's Activist investor Carl Icahn intends to give Yahoo CEO Jerry Yang the boot. "I am amazed at the lengths that Jerry Yang and the board went to entrench themselves in this situation," says Icahn, referring to efforts to thwart Microsoft's attempt to acquire Yahoo. Microsoft: We're Still Interested in Yahoo Bloomberg Microsoft CEO Steve Ballmer says the company is still interested in striking a deal with Yahoo. Says Ballmer: "Software technology and the scale of user interaction will be an important part of the way the media and advertising business shakes out in the future." Google Sued for Failing to Police Ads InformationWeek A lawsuit filed against Google alleges that the search company puts profits ahead of user protection by refusing to ban online advertising for fraudulent mobile services, despite evident ad policy violations. Google is "driven by financial motivations," the complaint says. AT&T Offers Free Wi-Fi at Starbucks CNET Starbucks coffee shops across the United States are offering two hours of free Wi-Fi Internet service through AT&T. Customers must buy a Starbucks Reward Card with a minimum of $5 credit on it. Customers also must sign up for the free Wi-Fi online at Starbucks.com. Veoh Raises $30M from Silicon Valley NewTeeVee Veoh, the Internet video portal and software maker, is announcing it has raised $30 million from Intel Capital, Adobe Systems, and Gordon Crawford, senior VP of Capital Research Global Investors. The company describes itself as "one of the top global Internet television services." DailyCandy Preps Global Online Expansion CNET DailyCandy.com, the 8-year-old women's e-mail newsletter, will be launching seven localized editions of its DailyCandy Kids lists, capitalizing on the hot online parenting niche. DailyCandy is also planning more national and international editions and an expanded Web site. YouTube: The New Advertising Hot Spot ET / LAT With viewers migrating online -- and YouTube accounting for roughly a third of all online-video watching -- the Google-owned video-sharing site is perceived as "the new advertising hot spot." Also: YouTube provides advertisers with immediate user demographic data. Wikia Search Reboots as 'Google Killer' Forbes Wikipedia founder Jimmy Wales's fledgling search project Wikia Search is relaunching with features that allow users to fully edit and filter all search results, instead of the limited editing functions given to users in the alpha phase. The changes are "pretty radical," Wales says. Disney Appears to Warm Up to Hulu Wired Disney's Kevin Mayer, executive VP of corporate strategy and business development, is signaling that he could be ready to join Hulu, the so-called "YouTube killer" that offers legitimate video content from NBC and Fox. "Hulu's a great site. We're not participating -- now." AOL Seeks to Boost Revenue From Bebo Bloomberg Time Warner's AOL is developing ways to increase revenue from Bebo, the social-networking Web site acquired in May for $850 million. Bebo's advertising agreement with Yahoo "isn't long term," says Lynda Clarizio, president of AOL's network for buying and selling advertisements. Internet Week NY Kicks Off With Launch of VC Firm CNET At a press conference to kick off Internet Week New York, a festival promoting New York's digital industries, mayor Michael Bloomberg is unveiling NYC Seed, a venture firm for local tech start-ups. Also: Among the week's events: I Want Media's "The Future of Media." Google, Amazon to Dominate Internet, Report Says Reuters Google and Amazon.com will be long-term winners on the Internet, while Yahoo and IAC InterActiveCorp fall by the wayside and eBay becomes a merger target. So says Sanford Bernstein analyst Jeffrey Lindsay in a new 310-page report entitled "U.S. Internet: The End of the Beginning." Study: Traditional Media to Lose Ads to Internet vnunet U.S. Internet advertising will continue to "grow fast" in the face of an economic downturn, says a forecast by analyst firm IDC. The transfer of marketing budgets from traditional to new media will accelerate, with the Internet surpassing newspapers and television "in just five years." Yahoo Readied Plan to Reject Microsoft Bid Reuters Yahoo CEO Jerry Yang ordered up a draft press release rejecting a Microsoft takeover bid several months before January's unsolicited bid, according to newly unsealed company documents. The new disclosures bring to light Yahoo's resistance to a merger with a software giant. Google: Paid Online News is Credible Biz Model Journalism.co.uk Paid-for news online is a credible business model, according to Google U.K. VP Nikesh Arora, speaking at the World Editors Forum. "You are going to have to build a bigger audience to achieve monetization." Google, meanwhile, sees itself "as part of the ecosystem." Microsoft's New Site to Aggregate Celebrity News AllThingsD Lloyd Braun, the former Yahoo entertainment czar turned Hollywood and online programmer, is said to be teaming up with Microsoft to develop a Web site aimed at aggregating celebrity and entertainment news. The still-unnamed site will rival AOL's TMZ.com, Perez Hilton and others. Buzznet Launches Social Network for Celeb News CNET Buzznet, the social network whose CEO once said that he would like to build "the next Viacom," is launching a sister site: Celebuzz.com, a community for enthusiasts of celebrity news. Celebrity gossip fans are said to use "more than one source to get the same exact story." Facebook Disconnects From Google in Social Deal Washington Post Facebook is withdrawing its support for Google's Friend Connect, meaning that none of the social network's millions of members can sign in to Web sites using Google's new service. The standoff suggests that exactly how people will share information across the Web remains uncertain. Digital Media to Become 'Primary News Source' Associated Press The Internet will become the primary news source within five years, says a new report released at a meeting of the World Association of Newspapers. Newspapers are advised to explore mobile and Internet markets. They "cannot count on their print editions alone to keep them solvent." Ex-Yahoo CEO Semel Eyes IMG Talent Agency New York Post Terry Semel, the former CEO of Yahoo and Warner Bros. Entertainment, plans to make a run at acquiring private-equity investor Teddy Forstmann's marketing and talent agency IMG. Semel is said to be aiming to transform IMG into a media company and bolster its digital operation. Icahn Wins Approval to Purchase Yahoo Shares Associated Press U.S. antitrust regulators are clearing activist investor Carl Icahn's purchase of another $1.5 billion of shares of Yahoo. Icahn launched a proxy fight last month to remove Yahoo's board after the company rejected Microsoft's $47.5 billion takeover bid. Microsoft, Google in Fight for TV White Space Bloomberg Microsoft and Google want to use vacant airwaves to expand the $24.5 billion market for mobile Web services, creating "Wi-Fi on steroids." But broadcasters say the plan would disrupt television signals. The Federal Communications Commission is running tests to help decide the matter. Google Told to 'Keep Out' of Minnesota Town Minneapolis Star Tribune The St. Paul, Minn., suburb of North Oaks is demanding that Google Maps remove images of the homes in the community from the site's Street View feature. The city claims Google is "trespassing." North Oaks is believed to be the first U.S. city to ask that street images be removed. Facebook Lures 80,000 'Sex and the City' Fans ClickZ / NYT As of early Sunday, 80,000 people signed up on Facebook as a fan of "Sex and the City," the weekend's unexpected No. 1 film in North America. Also: A new study from BlogHer and Compass Partners suggests that traditional media are losing female mindshare to the Web. Amazon's Kindle Device Adds 5,000 More Books Associated Press Simon & Schuster will make 5,000 more books available for Amazon.com's Kindle reading device, bumping to 125,000 the number of titles users can download and read. CEO Jeff Bezos says Kindle e-books now account for 6% of Amazon sales in both electronic and print formats. Mixx.com Lets Readers Compartmentalize News Washington Post Mixx.com, a new D.C.-area start-up, hopes to change the way Web surfers access news. Users of the Digg-like service can click on a button next to articles provided by partner news outlets -- such as CNN and the New York Times -- to tag the story and share it with other Mixx readers. YouTube: The World's Biggest TV Station Forbes / LAT Google's YouTube is now seen as "the biggest television station on the planet," attracting some 1 billion views per day. The video-sharing site is expected to generate $200 million this year. Also: Republican presidential contender John McCain is "taking a serious drubbing" on YouTube. Google Sees U.S. Paid Ad Clicks Jump 20% Bloomberg / ClickZ Google had a 20% jump in clicks on its U.S. text advertisements in April, a reversal from slowing growth the month before. Also: Google is the biggest recipient of Barack Obama's online ad dollars. The Democratic presidential hopeful is said to prefer "performance-based" ad buys. Ex-CBS Exec Lassoed by Video Site Redlasso Reuters Redlasso.com, a video-sharing site for bloggers, is hiring former CBS exec Michael Jordan to help it smooth relations with the media industry after the broadcast networks sought to shut it down for violating copyrights. Redlasso says it plans to continue "business as usual." Revision3 Shuts Down in Anti-Piracy Misfire Los Angeles Times Revision3.com, home of Web TV show "Diggnation" and other tech shows, shut down for three days after its computers were overwhelmed by traffic sent by the anti-piracy company MediaDefender. Both Revision3 and MediaDefender are claiming the outage was accidental. U.S. May Get Free Internet Without 'Smut' Reuters The U.S. Federal Communications Commission is proposing to auction an unused piece of the airwaves, with the condition the winning bidder offer free Wi-Fi access and filter out obscene content. The winner would be allowed to use the rest of the airwaves for commercial services. Facebook, IM to Be 'Demanded' by Workers vnunet The next generation of workers will demand access to tools such as social networks and instant messaging, according to a study by market intelligence firm IDC. The younger generation is increasingly "hyper-connected" and expects to use a variety of communication platforms. Local Web Sites to Earn $13 Billion in 2008 WebProNews Local online advertising should deliver an eleven-figure payday to site publishers, according to a forecast from Borrell Associates. Also, yellow pages companies, despite the relentless assault by myriad competitors, appear to be the "big winners." MenuPages Seen as Target for Acquisition CNET News.com New York-based MenuPages.com, an online compendium of restaurant and take-out menus for eight major U.S. cities, is rumored to be close to being acquired by an unknown buyer. The advertising-supported MenuPages pulls in some 300,000 visitors per month. Yahoo, Microsoft In Partnership Talks, Yang Says Bloomberg Yahoo CEO Jerry Yang says Microsoft is still discussing potential partnerships with his company after walking away from a $47.5 billion takeover bid this month. "They clearly have some interest in Yahoo in some shape or form," he insists. "We're willing to do a deal at the right terms." Facebook CEO: I Won't Sell to Microsoft for $15B Bloomberg Facebook boy Mark Zuckerberg has no plans to sell the social-networking site, even if Microsoft offered $15 billion. "The goal of the company is to execute on the things we talked about before," he says, "such as helping users share information more easily." IAC/Interactive's Diller Disses Google, Facebook Barron's IAC/Interactive CEO Barry Diller on Google: "They are irrelevant to us. I think our [Ask.com] product is in most respects better." On Facebook: The social network is "nothing more than the Princess phone 20 years ago" -- a symbol of teenage communication coolness. TiVo to Offer Movie Downloads From Disney Associated Press TiVo will offer its subscribers Disney films for download to broadband connected TiVo DVRs directly from subscribers' TV sets. Subscribers will be able to rent the movies for a 24-hour period through a deal with Disney-ABC and digital entertainment provider CinemaNow. Blockbuster to Test In-Store Movie Downloads Hollywood Reporter Blockbuster will launch in the coming month a pilot test of in-store kiosks that will allow consumers to download movies onto portable devices in two minutes. The company is still in negotiations with studios about content deals for the kiosk trial. Barnes & Noble Launches Mobile Retail Site Crain's New York Book retailer Barnes & Noble is launching B&N Mobile (bn.com/mobile), an e-commerce site accessible via any mobile device with a Web browser, but tailored for Blackberries and iPhones. The goal is to serve customers "in a multitude of platforms," says B&N CEO Marie Toulantis. Google to Provide Search to MySpace Email Reuters Google is supplying software technology that will let users of News Corp.'s MySpace more quickly search their e-mail. MySpace counted 110 million users earlier this year. More than 170 million messages are sent daily by members of the leading social-networking site. Amazon to Roll Out Streaming Video Service Reuters Amazon.com will launch a streaming video service in the next few weeks to augment its digital offerings, says CEO Jeff Bezos, who is yet to reveal details. Amazon has been building a digital music store and now offers downloadable movies, television shows and videos. Glam Launches Revenue-Sharing Video Platform CNET News.com GlamMedia.com, the publisher of vertical content networks for women online, is launching the GlamTV Platform, a video distribution and advertising platform for Glam's network of some 500 Web sites and blogs. Participants will collect a piece of the advertising revenue. Tom Cruise Launches Web Site for 'Protection' Associated Press Tom Cruise is launching a Web site: TomCruise.com. Few stars have seen themselves pilloried more on the Web than Cruise, who has watched numerous embarrassing moments ricochet around the Internet at warp speed. His new site appears to seek to "protect his brand." Google CEO: There's No Money Yet In Web 2.0 Faz.net The next big wave in advertising will be the mobile Internet, says Google CEO Eric Schmidt. Everyone "has a mobile phone." Web 2.0 "is not where the money is." MySpace is yet to "monetize." Also, Google's focus is on the end-user. "We are not looking at it from the publisher perspective." Google Faces Lawsuit From Belgian Newspapers Bloomberg A group of Belgian newspapers is seeking some $77 million from Google in a new lawsuit over the right to feature links to the publishers' content on the Internet. A court last year ruled Google violated Belgian copyright laws by publishing links to articles on Google News without permission. Microsoft Ad Exec Vows to 'Disrupt' Google Fortune Online advertising is a "very, very" significant growth opportunity for Microsoft, says Kevin Johnson, the exec who is leading the software giant's effort in the area. Johnson is prepping an "engagement mapping" system to scrutinize all the ads a user sees before clicking on a search ad. Microsoft Said to Eye Classified Ad Firm Yell Reuters Shares in Yell Group rose as much as 5.4% early on Tuesday as traders cited market talk of bid interest from Microsoft. The British-based Yell declines to comment on the talk. Yell is a classified advertising directories company, operating both in print and online. Yahoo to Offer Free Real-Time Stock Quotes Bloomberg Yahoo plans to offer real-time stock quotes to users of its finance Web pages. Data will be provided by Kansas City, Mo.-based Bats Trading. Google and rival Web sites from Microsoft and AOL provide quotes with more than a 10-minute delay and charge users for real-time data. 24/7 Wall St to Build Web Financial News Network 247WallSt 24/7 Wall St, which runs financial news and opinion Web sites, is acquiring BiohealthInvestor.com and VSInvestor.com. 24/7 Wall St co-editor Doug McIntyre says: "This move will be the first in a series of planned purchases of financial opinion sites with the goal of building a network." Verizon to Sell TV Service in New York City Bloomberg Verizon Communications, the second-largest U.S. phone company, is winning approval to sell television service in New York City, competing with Time Warner Cable. Verizon has said it will begin selling TV service in the city by the end of the year under the FiOS brand. Starz to Offer Online Video Through Verizon Los Angeles Times Liberty Media's Starz Entertainment says that Verizon will offer its Starz Play online video subscription service to its 8.5 million high-speed Internet customers. The service is similar to Vongo, the stand-alone movie service that Starz launched in 2006, only $4 cheaper. Apple Eyes Solar Power For Mobile Devices InformationWeek Apple is reportedly looking into solar panels as a power source for handheld devices and portable computers. A recently published patent application discovered by MacRumors.com describes a technique in which solar panels would be built behind a portable device's LCD screen. Amazon.com Cuts Kindle E-Book Reader Price Associated Press Amazon.com is cutting $40 off the price of its Kindle e-book reader. The $399 Kindle launched last November and sold out in hours. Amazon says the cost of manufacturing the Kindles dropped as the Web retailer increased the number of the devices produced. Eisner's Vuguru Launches New Web 'Thriller' NewTeeVee "Foreign Body," the new online series from Michael Eisner's Vuguru and book publisher Putnam, is launching the first of 50 episodes. The "exotic thriller" is doing double duty as the prequel to the upcoming Robin Cook book of the same name. Web-Video Viewers to Top 1 Billion by 2013 CNET News.com The rapid rate at which broadband is being adopted around the world will lead the number of Web video viewers to quadruple by 2013, according to a report by ABI Research. The study also says that Web video sites are increasingly finding more efficient ways to distribute their content. Web 2.0 Fails to Produce Cash, Backers Say Financial Times Social networks, blogs and other "social media" are yet to produce significant revenue, say some entrepreneurs and financiers, despite years of experimentation aimed at turning such sites into money-makers. The failure is said to be dampening the mood in Internet start-up circles. Blogging Pays Off for a Few Entrepreneurs Chicago Tribune Jason Busch, a former columnist for InternetWeek and InformationWeek, is pulling in $300,000 a year from his blog, SpendMatters.com, which focuses on spend management. Busch is targeting annual revenue of $1 million from his business, which includes podcasts and Webinars. 'Indiana Jones' And the Kingdom of Facebook ClickZ News In a marketing campaign on Facebook to promote "Indiana Jones and the Kingdom of the Crystal Skull," Viacom's Paramount Pictures is allowing site users to send their friends a virtual version of Indy's iconic brown hat. In less than 12 hours, all 250,000 of the hats sold out. Facebook to Open Source Developer Platform TechCrunch Facebook is said to be turning its Facebook Platform into an open source project, allowing third-party developers to build applications for the social- networking site. With the new announcement, "social networks won't need to go through the hassle of doing a deal with Facebook." Borders Attempts Return to Online Retailing Associated Press Borders is jumping back into online retailing with a redesigned Web site that aims to evoke the feeling of browsing at a neighborhood bookstore. But after seven years paired with Amazon.com, analysts say it will be a challenge for Borders.com to step out of the Web retailer's shadow. Microsoft to End Book Scanning Operation Associated Press Microsoft is abandoning its effort to scan whole libraries and make their contents searchable, a sign it may be getting choosier about the fights it will pick with Google. The software giant says: "The next generation of search is about the development of an underlying, sustainable business model." Yahoo to Text-Message Ads to Consumers Wall Street Journal 4INFO.net, a Silicon Valley text-message advertising firm, plans to announce a new trial partnership with Yahoo. 4INFO will provide the technology for Yahoo to publish news updates, sports scores and other content via text messages that also contain a small ad. NBC Entertainment Head Creates 'Uber' Site Los Angeles Times Scott Sassa, a former president of NBC Entertainment, is now behind Uber.com, a publishing platform that aggregates individuals' Web sites for free. Discovery Communications is signing on as an investor and plans to use the site to power online forums for its cable channel shows. Google Replies to Viacom's YouTube Lawsuit Associated Press Viacom's $1 billion copyright infringement lawsuit against YouTube threatens how people exchange all kinds of information on the Internet, according to lawyers with YouTube owner Google, in new legal papers. Google says YouTube "goes far beyond its legal obligations." YouTube May Bring Longer Videos to TV Financial Times Will we see longer-format videos on YouTube? CEO Chad Hurley says: "As we build bridges and connections to other devices beyond cell phones -- connections to the TV -- that is where it'll become more of an opportunity for us [to] host and really push longer-form content." Beyond Blogs: What's Social Media Worth? BusinessWeek Megablogs with paid staffs, such as Michael Arrington's TechCrunch, have become titans, according to BusinessWeek's cover story on blogs. Some blogs "now wield more power than large metro dailies." But what is all the attention worth? "Valuation is a hot question in social media." Google: The 'Ultimate Enemy' of Journalism BusinessWeek The advertising revenues of U.S. newspapers and magazines appear to have been "effectively annexed" by Google. "The notion that the cost of newsgathering might be supported by the revenue-sharing of a Google search box is idiotic," says Bernstein Research analyst Craig Moffett. Icahn: Microsoft, Yahoo Must Fight Google Bloomberg Microsoft would be "crazy" not to combine its Web business with Yahoo, says billionaire Carl Icahn, who is gathering investor support to push a deal through. "Microsoft and Yahoo have to get together to fight Google." Also: Barack Obama "would be a terrible president," says Icahn. Yahoo Delays Annual Meeting, Director Exits CNET News.com A longtime director of Yahoo's board, Edward Kozel, is resigning for personal reasons, the company says. Yahoo also is announcing it will delay its July 3 annual meeting until the U.S. Securities and Exchange Commission has completed a review of its proxy materials. Google's Page Pushes TV 'White Space' Plan Reuters Google co-founder Larry Page is in Washington to promote the company's proposal for new wireless devices to operate on soon-to-be-vacant television airwaves. Page downplays opposition from broadcasters who fear possible interference: "The debate's really been politicized." Diller: IAC on Track to Break Up in August Hollywood Reporter Now that his legal feud with John Malone and Liberty Media has ended, Barry Diller says he expects that the carving up of IAC/InterActiveCorp into five separate companies will be completed in August. IAC will "grow over 50% in this '08 or '09 year," Diller says. Forrester: Apple to 'Rule the Home' by 2013 vnunet Apple is poised to become the hub of the digital home by 2013, according to a new study from Forrester Research. The analyst firm foresees an Apple "mishmash" of TVs, stereos, set-top boxes, DVD players, PCs, and game consoles, which are currently isolated in most homes. MySpace Boosted by News Corp, CEO Says BusinessWeek MySpace's unique users have jumped from 22 million to 120 million since it was acquired by Rupert Murdoch, says CEO Chris DeWolfe. MySpace has become "less of a niche site." Also: "We see the Web becoming more mashed up, where MySpace could live on eBay, on Yahoo." Facebook Books Set to 'Face Off' in Battle Crain's New York Doubleday will publish a book about Facebook, competing with a similar title from Simon & Schuster. Doubleday's "Face Off," by "Bringing Down the House" author Ben Mezrich, will battle with Simon & Schuster's "The Facebook Effect," by Fortune magazine writer David Kirkpatrick. AOL to Roll Out Foreign Editions of Blog Reuters Time Warner's AOL division plans to launch local versions of AOL Video in several countries on Thursday. AOL will also begin offering international editions of its men's lifestyle blog Asylum.com. Each edition will have its own editor and produce local content. Microsoft CEO: No Interest in Buying Yahoo IW / BW Microsoft CEO Steve Ballmer says the software giant is no longer interested in acquiring Yahoo. "We are trying to have discussions about deals with Yahoo," he says. Also: Growing influence of investors suggests that Jerry Yang's days as Yahoo CEO may be numbered. Twitter Said to Raise $15 Million in Funding GigaOM Twitter, the free micro-blogging service, is believed to be closing a new round of $15 million in funding, which is estimated to bring the company's valuation to about $80 million. A new investor is said to be leading the round with existing investor Union Square Ventures also participating. Michael Eisner Issues Web Content Manifesto Seattle P-I YouTube is "very old news," says former Disney CEO Michael Eisner, whose company Tornante is involved in online video through its Vuguru studio. "It is to the Internet what the nickelodeon was to the movies -- a very preliminary installment of what is to come." Social Networking Sites: No Effective Ad Model Guardian / Reuters Facebook and MySpace aren't translating their popularity into advertising revenue, "in spite of the media hype," says eMarketer. The research firm is downgrading its ad-spend forecasts for the sector. Also: Valuations on social networks "are pure speculation," says Barry Diller. Mobile Ads 'Years Away' from Breakthrough Reuters Advertising on mobile phones has enormous potential, but any breakthrough is years away, say execs from ad and telecoms groups. Hamid Akhavan, the head of Germany's T-Mobile, observes: "There are people who will never have a TV or a laptop but they will have a mobile phone." Google Earth Offers Local News Worldwide Google is adding its constantly updated Google News aggregator of stories from 4,500 news sources to its Google Earth offering, allowing users to retrieve local headlines from around the world. Google Earth now displays a "world of human activity as chronicled by reporters worldwide." YouTube Launches Citizen News Channel CyberJournalist Google's YouTube is launching a Citizen News channel, highlighting the best news video on the site from around the world. "News on YouTube is huge," says Olivia Ma, YouTube's new news manager. "No longer do you have to be a seasoned journalist to make waves in the news." Facebook to Unveil Major Site Redesign CNET News.com Facebook is publishing new photos and descriptions of its impending profile redesign. The new design will be centered on tabs, broken into five separate areas: Feed, Info, Wall, Photos, and Applications. Users are expected to have the ability to add tabs of their own. Microsoft Search to Offer Ad Cash to Users TechCrunch Microsoft is expected to announce a new search advertising model featuring a set of 18 vertical search offerings that will give users cash back on any purchases made from advertisers. The goal is to lure high-value searches away from Google, the industry leader. Yahoo Shareholders to Stand Behind Icahn Bloomberg Carl Icahn, pressing Yahoo to rekindle takeover talks with Microsoft, is winning support from fellow shareholders as the Internet company weighs new proposals from its former suitor. Yahoo investor T. Boone Pickens, chairman of BP Capital, says: "Icahn is a smart guy." Former RIAA Head Rosen to Join HuffPost New York Observer Hilary Rosen, the former chief of the Recording Industry Association of America, is being named political director and Washington editor-at-large of the Huffington Post group blog. Rosen will help take HuffPost's political coverage "to the next level," says co-founder Arianna Huffington. IAC's Tina Brown News Project Hires GM AllThingsD Caroline Marks, general manager of Comcast's social video venture Ziddio, is being named GM of the IAC news aggregator site headed by high-profile editor Tina Brown. The site, still in its planning stages, has already hired the Wall Street Journal's Edward Felsenthal to helm the edit side. Diller's IAC to Acquire Teen GirlSense.com Reuters Barry Diller's IAC/InterActiveCorp plans to announce it is buying the Israel-based StarNet Interactive, the parent company of GirlSense.com, a Web site that lets teenagers design and market virtual fashions. Disney's Hannah Montana and the Jonas Brothers have boutiques on the site. Facebook Declines Comment on Sale Talk Reuters Facebook founder and CEO Mark Zuckerberg is stressing his company's independent spirit, after a report the social-networking site might be sold to Microsoft. We're "focusing on building," he says. Asked specifically about the prospect of a sale, Zuckerberg declines to comment. Google Health Data-Record Service Opens Associated Press Google is announcing the public launch of Google Health, a service that allows users to import records from a variety of health-care providers and pharmacies. The Internet giant has been testing the service by storing medical records for thousands of patient volunteers. YouTube Asked to Remove 'Terror' Videos WebProNews Sen. Joe Lieberman, I-Conn., is urging Google to remove video clips made by "Islamist terrorist organizations" from its YouTube video-sharing site. In response, Google says: "YouTube encourages free speech and defends everyone's right to express unpopular points of view." Netflix Offers Device to Run Movies on TV New York Times Netflix, which pioneered the business of offering DVD movie rentals by mail, is now allowing subscribers to play movies and shows on their TV sets instantly with a new $99 device. The new set-top box is expected to jolt the emerging market for equipment that brings Internet video to TV. Napster Opens Store In Challenge to iTunes Reuters Napster, the digital music service, is opening the world's biggest MP3 download store, with more than 6 million songs, in a direct challenge to Apple's iTunes store. The new Web-based music store will have digital songs from all major music labels as well as thousands of indie labels. AOL Sheds 'Out of Date' Brand for New Sites Associated Press Time Warner's AOL brand is taking a back seat as the company long associated with dial-up Internet access launches dozens of Web sites targeted at specialized audiences, such as the new Asylum.com for young men. The AOL brand is seen as "out of date; probably a kiss of death." Microsoft, Yahoo Re-Enter 'Transaction' Talks CNET News.com Microsoft is issuing another proposal to Yahoo that calls for a transaction, but does not involve the acquisition of all of Yahoo's assets. The software giant is believed to be seeking to sell advertisements to be displayed next to Yahoo search results, in an effort to take on Google. Facebook Founder Wants to Talk With Google InfoWorld Facebook CEO Mark Zuckerberg says he wants to meet with Google and work out the privacy issues that caused his site to block the search giant's new Friend Connect, which allows Web sites to add social-networking functions. "They launched that without asking us," he says. Conde Nast Acquires Tech Blog Ars Technica TC / NYT Conde Nast is acquiring the popular tech blog Ars Technica for a price reported to be in the $25 million range. The site will become part of CondeNet's Wired Digital. Also: The buy includes Webmonkey, a site for Web developers, and Hot Wired, a storied Internet brand. AOL's Bebo to Create People Networks Unit Associated Press Time Warner's AOL is completing its acquisition of Bebo, the global social media network, which will form the centerpiece of AOL's newly created People Networks business unit. People Networks will integrate AOL's other applications and tools, including chat and e-mail into Bebo. IAC's Diller Plans to Reinvent Himself -- Again Portfolio Barry Diller's soon-to-split-up Internet outfit IAC/InterActiveCorp has created minimal value, analysts say. A new property, FiLife.com, a financial site joint venture with Dow Jones, is floundering and may never see an official launch. Diller seems "less a visionary and more a spastic dealmaker." Disney to Launch DGamer Kids' Virtual World Washington Post Disney is launching a virtual play environment that kids can access through Nintendo DS devices and their computers. The software for the service, called DGamer, comes free on copies of a video game tied to the company's new movie, "The Chronicles of Narnia: Prince Caspian." Eisner Studio to Launch Another Web Series Reuters Vuguru, the new media company run by former Disney chief Michael Eisner, is releasing a new, 50-episode Web series designed as to be a prequel to "Foreign Body," the new medical thriller by author Robin Cook. The series features "a group of dangerous Indian beauties, brimming with desire." MySpace TV Develops Project With '90210' Star Hollywood Reporter MySpace TV is developing a short-form original series starring "Beverly Hills 90210" alumnus Ian Ziering. The series is based on a comedic short film Ziering directed, produced and starred in. Ziering plays a cubicle worker who faces a rough Monday morning where everything seems to go wrong. YouTube to Offer Demographic Data on Visitors InformationWeek Google is adding visitor demographic information for advertisers on YouTube. A new demographics tab will display statistics on the total views of all the videos uploaded by a person or organization. Viewership is broken down by age group, gender or a combination of the two. Diller's Ask.com to Acquire Dictionary.com New York Times Ask.com, owned by Barry Diller's IAC/InterActiveCorp, is acquiring Lexico, the owner of Dictionary.com, as well as Thesaurus.com and Reference.com. Ask.com, the No. 4 search engine, and Dictionary.com will attempt to cycle traffic between each other. MySpace Hoaxer Indicted in Teen Suicide Case Reuters A 49-year-old Missouri woman accused of pretending to be a love-struck teenage boy on News Corp.'s MySpace and driving a 13-year-old girl to suicide with cruel messages is being indicted on federal charges. Social-networking sites are under pressure to crack down on cyber-bullying. Facebook Cuts Off Google's Friend Connect CNET News.com Facebook is suspending participation in Google's new Friend Connect project, citing a violation of its internal terms of service. Friend Connect, says Facebook, "redistributes user information from Facebook to other developers without users' knowledge, which doesn't respect privacy." Yahoo, WPP to Unveil Web Ad Partnership New York Post Yahoo and WPP will announce a partnership that the companies say will make it easier and more effective for WPP and its agencies to buy and target advertising across the Web. WPP agencies will develop a proprietary trading system for placing display ads on Web sites. Google, Yahoo Ad Deal May Come Next Week Reuters Yahoo and Google are said to be continuing to talk about a search advertising partnership, but an announcement is not imminent. Talks have "not cooled" after Microsoft withdrew its offer for Yahoo. Although talks remain fluid, a deal could come "as early as next week." Yahoo Issues Response to Icahn's Board Bid Bloomberg Yahoo, defending itself against Carl Icahn's bid to take control of the board, says it was right to reject Microsoft's $47.5 billion offer and that its directors are the most qualified to boost Yahoo's value. Icahn's views reflect a "significant misunderstanding" of Microsoft's offer. Google Overtakes Yahoo as No. 1 Web Site Associated Press Google, long dominant in the Internet search market, is surpassing rival Yahoo for the first time as the most popular Web destination in the United States, according to research firm comScore. Google's U.S. audience is up to 141.1 million; Yahoo's comes in at 140.6 million. Twitter: A New Powerhouse in Social Media BusinessWeek Twitter, the fledgling microblogging service, is evolving into a social media powerhouse to rival giants like Facebook. The San Francisco-based Twitter, which appears to be aiming for a new round of funding, is starting an "experimental" advertising program on its site in Japan. Icahn Eyes Former Viacom Exec for Yahoo Reuters Carl Icahn is said to be moving ahead with plans to run a dissident board slate at Yahoo in a bid to force the Internet company to be sold to Microsoft. The billionaire investor is reportedly lining up at least 12 potential board candidates, including former Viacom head Frank Biondi. Bush Holds First-Ever Web Video Interview PR Week President Bush is the first U.S. president to conduct a video interview for an online audience. In the interview with Politico.com political correspondent Mike Allen, Bush warns that a fast withdrawal of troops from Iraq could "eventually lead to another attack on the United States." Facebook Adds Languages for Global Growth BusinessWeek Facebook will introduce tools that translate content into four additional languages in an effort to ramp up the social network's international expansion. The addition of Dutch, Italian, Norwegian, and Polish content will be followed by translations into another 20 languages. MySpace Wins Largest-Ever Anti-Spam Award Associated Press A notorious "Spam King" and his partner owe MySpace about $230 million in damages after a federal judge awarded the popular online hangout what is believed to be the largest anti-spam judgment ever. Parent company News Corp. hopes the judgment will serve to deter other spammers. YouTube to Offer Ads With Buzz Targeting ClickZ News YouTube is offering advertisers the ability to pair their in-video ads with clips the site believes are on their way to becoming viral hits. A new algorithm identifies videos that are on the up-and-up in terms of audience. YouTube describes buzz targeting as "a strong marketing opportunity." Yahoo May Be Target of Icahn Proxy Fight CNBC Billionaire investor Carl Icahn is said to be mulling a proxy campaign to elect new board members at Yahoo after the company failed to forge a deal to merge with Microsoft. Late last week, Icahn began building a significant position in Yahoo that may be as much as 50 million shares. Diller, Malone Agree to IAC Spinoff Terms New York Post IAC CEO Barry Diller and Liberty Media boss John Malone are announcing a truce ending their fight over voting rights control in the proposed breakup of IAC into five publicly traded companies, with Liberty dropping its appeal of a defeated lawsuit challenging the plan. Analysis: Old Media to Depend on Google for Ads Financial Times As television, newspapers and other media are digitized and move to the Internet, Google's advertising system will become the financial platform on which many of these businesses depend, according to industry observers. Google is "sitting on a goldmine." Its momentum "seems unstoppable." Google, YouTube Dominate Online Video Viewing WebProNews U.S. Internet users watched 11.5 billion online videos in March 2008, a 64% boost over March 2007, according to comScore. Google is again the top video property, with some 4.3 billion videos viewed. YouTube makes up 98% of all videos viewed at Google sites. Yahoo May Tempt 'Wolf Pack' of Investment Funds MarketWatch While the threat posed by Microsoft's takeover bid appears to be receding, Yahoo may face investment funds seeking to cash in by pushing the company back toward a deal, analysts say. A "wolf pack" of activist investment funds could badger execs back to the bargaining table. Internet Giants to Make Social Networks 'Like Air' AdAge MySpace, Facebook and Google are announcing similar-sounding moves over the past week to open up their sites to external applications. The moves suggest that social-media tools and services will spread throughout the Web, say observers. Social networks will be "like air." U.S. Bill to Require Captioning for Internet Video Boston Globe U.S. Rep. Ed Markey (D-Mass.) is backing a bill to require producers of Internet videos to add captions and "video description" soundtracks for blind people. The bill will require television networks to provide the additions when they stream their shows over the Internet. Microsoft: We're Not Acquiring Facebook Fortune Microsoft didn't approach Facebook about an acquisition after it walked away from its bid for Yahoo, despite recent news reports, say sources at the software giant. Microsoft expects to make Internet acquisitions of various sizes over time. Also, the Yahoo pursuit "really is over." AOL Exports Online Ad Portal to Australia Australian Speculation is mounting that Time Warner's AOL is set to launch its Advertising.com network in Australia. Advertising.com serves up video, mobile, display and search advertising on independent Web sites using technology to target and follow individual users. Liberty Media Appeals IAC Breakup Ruling Bloomberg John Malone's Liberty Media, owner of a 30% stake in the Internet company IAC/InterActiveCorp, is appealing a court decision allowing IAC chairman Barry Diller to split his firm into five parts. IAC says in a statement: "We are quite confident that the decision will not be reversed." Microsoft Player to Combine Chat, Video Bloomberg Microsoft, seeking more revenue from Internet advertising, is introducing software that allows users to exchange messages while watching online videos. Users of Messenger TV, initially available in Europe, will be able to watch and share clips from companies such as MTV Networks. Yahoo, Google: Favorite Brands Online JupiterResearch Google is nosing ahead of Yahoo as the top online brand, according to a consumer survey by JupiterResearch. Social sites MySpace, Facebook and YouTube rank high among young adults. "The kids like the social media," observes JupiterResearch analyst David Card. Google to Launch Social 'Friend Connect' TechCrunch Google is said to be launching a "Friend Connect" service, allowing users to send personal data to external applications. MySpace and Facebook are launching similar services. The benefit "is to allow users to maintain a single friends list and coordinate social activities across different sites." News Corp, Google Rumored to Eye Blinkx Reuters Shares of the British video search engine firm Blinkx surged 50% to a seven-month high Friday on talk that News Corp. and Google may bid for the firm. Speculation of a bid "does not sound ridiculous," says Piper Jaffray analyst Rajeev Bahl. Blinkx has "very intelligent" technology. Microsoft Reportedly Disbands Yahoo Slate Los Angeles Times Microsoft is continuing to distance itself from Yahoo, telling the people it had lined up to nominate to the board as part of a prospective hostile takeover battle that their services are no longer needed. The software giant insists that its pullback is not a negotiating tactic. Google Plans to Roll Out YouTube Products Reuters Google expects to launch new products for YouTube in the next few months and sees reason for closer cooperation with Yahoo, says CEO Eric Schmidt, speaking at the Internet giant's annual shareholder meeting. Getting YouTube to make money is said to be a top priority. MySpace to Share User Profiles With Others InformationWeek News Corp.'s MySpace plans to give users the option of sharing their profiles and other personal data with other Web sites, a move that could dramatically expand the reach of the Web's most popular social network. The "data-availability initiative" will be open to rival Facebook. Facebook Agrees to Safety Plan for Children WebProNews Facebook is announcing an agreement with 49 U.S. state attorneys general and the District of Columbia to take significant steps to protect children on the social networking site. The move comes after a similar agreement was reached with MySpace in January. Fortune Journalist to Write Facebook Book New York Observer Fortune magazine journalist David Kirkpatrick is writing "The Facebook Effect," for Simon & Schuster, due out in fall 2009. Facebook founder and CEO Mark Zuckerburg is said to have agreed to cooperate. The book "will chronicle the amazingly rapid rise of this company." Google May Run Display Ads With Searches Bloomberg Google is considering running display advertisements alongside the results of Web queries for pictures, moving beyond text-based ads. "There's lot of potential for advertising revenue there," says VP Marissa Mayer. Google is seeking new revenue sources as its growth slows. Microsoft Mulls Acquisition of Facebook Wall Street Journal Microsoft is said to have informally approached Facebook to gauge its interest in selling itself. Microsoft contacted the social-networking site as the software giant looked likely to back away from buying Yahoo. Discussions between the two are not believed to be active. Google, Viacom Draw Lines In YouTube Suit WebProNews A Google settlement with Viacom over the media giant's copyright infringement lawsuit against YouTube is not in the cards. "We're going all the way to the Supreme Court," says David Eun, VP in charge of content partnerships at Google. "We're very clear about it." YouTube In HD Coming to Living Rooms Beet.TV HP is announcing that it working with YouTube to allow consumers to watch and share full-screen videos from the site on their HDTVs and to create multiple playlists from anywhere they watch TV. YouTube is creating specially curated channels for the new service. MySpace Still Leads Online Social Networks WebProNews If MySpace were to lose its top spot among social networks, it would have a long way to fall. Though U.S. visits to the powerhouse are down 5% since last year, the News Corp. site still commands nearly 74% of the social networking market, according to Hitwise. Hollywood to Win $111M From TorrentSpy Associated Press Six major Hollywood studios are accepting a $111 million judgment for copyright infringement from the former file-sharing site TorrentSpy.com for nearly 3,700 illegal movie and TV-show downloads. The site shut down in March, saying the legal climate was too hostile to continue. Catholic Church to Launch Social Network Reuters Pope Benedict will text message thousands of young Catholics on their mobile phones during World Youth Day in Sydney in July, hoping going digital will help him connect better with younger audiences. The church also will set up a social networking site akin to a "Catholic Facebook." 'Grand Theft Auto IV' Sets Sales Record Variety "Grand Theft Auto IV" is said to have surged past "Halo 3" and "Pirates of the Caribbean: At World's End" to set the record for the biggest opening week of any entertainment product. Publisher Take-Two Interactive is set to confirm that the game grossed more than $500 million in its first week. Yahoo Shareholders May Try to Oust CEO Los Angeles Times Yahoo shareholders are so mad about the company's failure to cut a deal with Microsoft that several say they would consider a proxy fight to oust CEO Jerry Yang and the board of directors. An opposing board slate would get "overwhelming" support, claims one portfolio manager. Microsoft: We're Not Seeking New Partners PC World Microsoft won't be pursuing tie-ups or takeovers to replace its failed Yahoo bid, says chairman Bill Gates. Microsoft dropped its three-month pursuit of Yahoo on Saturday. The software giant had "put a lot of effort into talking to Yahoo" and is now "focused on its independent strategy." Internet Video: 'It's the Wild West Out There' USA Today Web video startups like MyDamnChannel.com are vying for attention at Digital Hollywood, the annual conference in Los Angeles. However, one observer notes that a destination site may be "antithetical to the nature of the Web, where the point is to bounce around." YouTube to Launch Local Version in India PC World |