Category Archives: Technology

fix8 has taken $3M for animated avatars for your cam

A couple of months ago the tiny start up company fix8 has raised $3 million in a series A round of funding from Vickers Venture Group, which is a Singapore-based private equity firm. Fix8 is a web cam avatar community that lets you create animated avatars with your web cam by reading your expressions and gestures. When we took a look into their web site we have discovered tons of tools that you can play around with, including fix8’s wide selection of pre-made avatars and other accessories like voice manipulation, graphics and editing tools. Those clips can easily be embedded in your website or social networking profile, or use it for your instant messaging client like AOL, MSN, Skype or Yahoo Messenger.

Fix8 has recently teamed up with a couple of other companies like Pringo and Stickam. fix8 has also expanded its signature technology through a key partnership with Shanghai Media Group (SMG) offering Auditions(TV) to create a new world of Interactive TV where audiences can submit fix8 content for insertion into LIVE or taped programming. fix8 will further bridge the gap between communication devices with the launch of fix8 MOBILE.

Fix8 has also teamed up with Camfess, the premier site for online confessions. The ability to choose your own level of “incremental anonymity” and “confess” without anyone knowing who you are makes Camfess and Fix8 the “perfect fit.”

“Our investment in fix8 is in response to ever-increasing consumer demand for User Generated Content from instant messaging to video sharing and interactive TV,” said Managing Director, Jeffrey Chi, Vickers Venture Partners. “fix8 is well-positioned to lead virtual communications for UGC, and we look forward to supporting their expansion.”

In-Stat estimates global UGC revenues will grow from $80 million in 2006 to $1.6 billion by 2011. IDC estimates enterprise IM will grow from 40 million users in 2007 to more than 140 million by 2009, making it the fastest growing communications medium of all time.

“From camera-to-camera chats to webcasting, video blogging to interactive TV — fix8 allows consumers to unlock their creative desire for expression through a new world of unique, rich animated content,” said CEO, Linh Duy Tang. “We are pleased to be aligned with Vickers, which understands the significance and monetization of User-Generated Content, a phenomena that has broad international appeal.”

While we kept on researching around for more information we came across the following user review on the service. Gave it a try for fun. The idea is great but they have a way to go.

  1. It does not work if you have glasses on, and some people’s eyes do not work with them off.
  2. I did not play around long enough to have my body in the picture also, but from the image above it seems the avatar sits in front of the user. It needs to be placed around them so that when users turn their heads sideways, you can not see their head, but the side of the avatar’s head.
  3. It could not see my mouth moving unless I tilted my head backwards so as to get more light on my face (I have a fluorescent light above me so my room aint dark).

Fix8 is based in Sherman Oaks, CA and is a division of Mobinex, Inc.

More about fix8

Fix8 is a unique interactive communication application that allows people to customize their on-screen virtual appearance in real-time using avatar technology and creative accessories. Fix8 integrates human expression analysis and rendering capabilities, avatar/facial sculpting and animation technology, voice manipulation, and one click 3D face maker design capabilities in one package. Fix8 can create live streaming enhanced video to integrate into IM or other broadcast (such as TV) experiences, or record still images and fully-rendered videos.

While certain elements of the Fix8 product line can be found in the competitive landscape, the core technology to provide real-time animation in a consumer oriented application is unduplicated. Further, the specific feature set(s) offered in the Fix8 product line is unique and disruptive.

Fix8 differentiates itself from the competitive set by offering a unique easy to use application that incorporates avatar technology, 2D/3D facial accessories and flash animated accessories, voice masking and altering, and the ability to for a user to create their own individual set of avatars through use of photorealistic images all married with Fix8’s own IP that analyzes and renders human expressions so that the rich animated creations match the movements of the user in real-time for use in video and streaming.

Fix8 has coined the term user-generated reality to define the broad spectrum of creative self-expressive user-generated animation in real-time. Fix8 enhances the entertainment and enriches the communication experience of its clients’ customers by breathing new life into digital channels across multiple mediums.

The team

Linh Duy Tang, but you can call him “TANG”
President / CEO
 
Mr. Linh Tang is a senior executive (but he is really quite young at heart) with a demonstrated record of accomplishment in worldwide business operations. Tang’s vast experience in technology, operations and management make him the ideal fit to lead Fix8 on its mission to revolutionize virtual communication and expression. Tang is responsible for more than just Fix8’s vision and strategy; he is responsible for driving the “Innovation Bus” all the way to the user. A veteran of several startups with 15+ years in IT and consumer goods industries, Tang is – quite simply – THE MAN.
 
Chuning Ho, our very own voice of reason
Vice President of Operations
 
Ms. Chuning Ho brings over 17 years experience in application development, project deployment, executive management and business operations to the Fix8 team. As a founding member of the management team from initial start-up to present, Chuning knows where all the bodies are buried. Her main responsibilities include (but are not limited to) resources management, process standardization and communication strategy establishment and implementation. Chuning also manages to keep the entire team in check almost effortlessly. She is Fix8’s own secret weapon.
 
Scott Freeman, he sees dead people
Vice President of Finance
 
Mr. Scott Freeman brings extensive financial management experience to the Fix8 team. Scott did hard time with Deloitte & Touche, working in their entrepreneurial division, before he made his move to California Suncare, Inc. where he was instrumental in growing the company from $3M in revenue to $45M and assisted in its sale to a private equity firm for approximately $88M. Long story short, Scott knows how to make money and can see a deal well over a mile away. With a wife that is a successful interior designer, a daughter who is an artistic savant and a son who is a terror on the soccer field, Scott doesn’t have to work but he believes in Fix8 and, honestly, someone needs to keep Jake and Dinesh in check.
 
Dinesh Bhatia, proving that there are nice guys in sales
Vice President of Sales
 
Mr. Dinesh Bhatia brings direct experience in the wireless, television, Internet and software industries to the Fix8 team. Dinesh is a pretty smart guy; he graduated from Washington University with double degrees in Electrical Engineering and Computer Science and a Master’s Degree in Biomedical Engineering from Imperial College, London. Dinesh loves the disruptive creation and generation process of the software development community and is responsible for building strong partnerships to enhance the Fix8 user experience through added competitions and connectivity. In his spare time, he loves fiddling around with computers, gadgets, his saxophone and keyboards, photography, astronomy and spending time with his family. Dinesh also loves long walks on the beach – but this is not a personals ad – so let’s stop here.
 
Raphael Ko, it is rumored that he has brothers named Donatello, Leonardo and Michelangelo
Vice President of Engineering
 
Mr. Raphael Ko brings extensive experience in software development and information technologies management to the Fix8 team. Directly responsible for Fix8’s engineering activities, Raphael has drawn upon his 10+ years in software development as well as managing key projects in wireless applications, ERP, and IT services. Raphael’s love of photography and digital imagery fit right in with the Fix8 mission. Not much is known about Raphael’s past, in fact we can’t exactly put our finger on his start date either. One day he just suddenly appeared, fully formed and working (in all honesty) harder than the rest of us, so we let him stay. We still don’t know how he has the time to do what he does and still read all those issues of “Conan the Future Boy;” but some questions are best left unanswered.
 
Hao Zhou, Kevin Bacon stole the idea of six degrees from this guy
Vice President for Sales – China
 
Hao Zhou is a senior executive with an outstanding background in digital television and the new media industry. Shortly after learning how to crawl, Hao began his career as a system engineer, and quickly his work history grew to include sales and promotions of CATV, digital TV, broadband business, indoor and lift media and wireless value-add business. You know that guy who can do anything and has somehow managed to have successfully had every job available in the time it took you to pour your morning coffee? Yeah, well, Hao’s that guy. Hao’s ambition is what has brought him to the Fix8 team with one simple mission: Make Fix8 the next star shining over greater China. If anyone can do it, it’s certainly Hao. He’s our very own Hercules.

About Vickers Venture Partners.

The Vickers Financial Group is the venture capital arm of the Vickers Capital Group, an Asian investment house investing in alternative assets. Vickers Venture Partners is a leading venture capital firm focusing on early stage, high growth companies focused on Asian markets. The firm’s competency stems from the fact that its decision-makers have been part of and hence well-acquainted with the pulse of diverse domains.
 
The market

From what we were able to dig up it seems the space is extremely crowded. The competition include weblin.com, Meez.com, SecondLife, mypictr, gizmoz.com, miieditor, simpsonsmovie.com, gickr.com, Gravatar.com, imvu.com, Zwinky, digibody.com, Faketown, doppelme, SitePal, gaiaonline, imbee, myrl.com, Kaneva, blogoscoped.com, mojikan, frenzoo.com, clickbeurs.nl, Mr. Picassohead, whyrobbierocks.com, weeworld, and voki.com, among others.

More

http://fix8.com/
http://www.vickersfinancial.com/
http://mashable.com/2007/10/15/fix8-funded/
http://www.techcrunch.com/2007/10/15/fix8-raises-3-million/
http://mashable.com/2007/09/12/avatars/
http://mashable.com/2007/06/26/fix8-stickam/
http://webmaster.stickam.com/2007/06/fix8_partners_with_stickam_to.html
http://www.camfess.com/contents.php?cid=16
http://www.techcrunch.com/2007/05/31/fix8-brings-computer-generated-animation-to-the-webcam/

Qunar, a Chinese travel search engine, raised $10 million

Chinese web 2.0 market is hot up to the point where large-scale financial institution like Lehman Brothers has jumped on a travel start-up. Qunar.com is an online travel search engine that we’ve just found out it has raised $10M in its 2nd round a couple of months ago. The investment in the company was led by Lehman Brothers Private Equity and was joined by return backers GSR Ventures and Mayfield Fund.

The company is based in Beijing, China and was launched in 2005 and means “where are you going?” in Mandarin Chinese. The company was founded by Douglas Khoo, CC Zhuang, and Fritz Demopoulos who had founded and sold the CSEEK search engine to News Corporation and founded and sold the Shawei.com portal to The Tom Group.

Essentially Qunar provides a price comparison engine that leads users to transactions. Qunar makes most of its income from advertising fees. That concept and business model is not something new on Internet but is perhaps in its infancy in the huge Chinese market and Qunar is trying to tap into it.

Qunar is said that it expects to break even consistently in 2008 and it may seek an IPO listing in 2010 or 2011, either in Hong Kong or on the Nasdaq in US.

The market

As from what we were able to dig up Qunar competes with Ctrip and eLong, but analysts predict that it will grow 40%-50% year-over-year for the next couple of years. Qunar has been developing partnerships to get into the Japanese and Korean markets. Under no doubt the major global players on the online travel market are companies like Expedia.com, Hotwire.com, Orbitz.com, Priceline.com, Travelocity.com, TripAdvisor, Kayak, Mobissimo, among others.

Travel remains the single largest component of e-commerce according to Forrester Research, a consulting firm in Cambridge, Mass. But despite the dominance of online travel agency heavyweights as the companies cited above, most users consult multiple Web sites when shopping online for travel. The average consumer visits 3.6 sites when shopping for an airline ticket online, according to PhoCusWright, a Sherman, CT-based travel technology firm. Yahoo claims 76% of all online travel purchases are preceded by some sort of search function, according to Malcolmson, director of product development for Yahoo Travel. The 2004 Travel Consumer Survey published Jupiter Research released an interesting fact that “nearly two in five online travel consumers say they believe that no one site has the lowest rates or fares.”

More about Qunar

Qunar.com was founded in early 2005 by three entrepreneurs with a number of years experience operating exclusively in the Asian region – Fritz Demopoulos, Douglas Khoo, and CC Zhuang.

With a technology and product development team based in Beijing and directly located next to Beijing University and Tsinghua University, Qunar.com has developed its own proprietary multi-language price comparison search engine in conjunction with these leading institutions.

Qunar.com represents a significant step in the development of the constantly changing, albeit rapidly growing online travel industry within the region. For the first time, through Qunar.com consumers can quickly, easily and in real-time compare virtually all available prices for air tickets, hotels, car rentals and tour packages. In other words, Qunar.com allows consumers to get the best choices and value.

Qunar.com is the market leader in Asia, and we look forward to meeting the needs of the fast growing travel industry.

Currently, Qunar.com searches almost 400 Chinese-language travel web sites. These search results provide our consumers with real-time pricing information and other descriptive details from more than 100 airlines and 10,000 hotels servicing mainland China.

As the recognized “new star” in the online travel industry, Qunar.com will continue to provide outstanding service and dramatically change the way consumers search and purchase travel services.

The Company’s founders

Frederick “Fritz” Demopoulos has been involved in the Chinese media, internet and wireless industries for over seven years. He is currently a co-founder of Qunar.com. In addition to these current entrepreneurial business activities, Fritz has been an advisor to an array of well-known Chinese and international media companies including Titan Sports, Hai Run Media Group and InterActive Corp. Previously, Fritz was also interim head of business development at Netease.com. He joined Netease in 2001, and was part of the management team that oversaw a period of significant growth for the company, which eventually became the NASDAQ’s best performing equity in 2002. In 1999 Fritz co-founded and became CEO of Shawei.com. Financially backed by Intel Capital, Softbank and IDG, Shawei grew to become China’s largest sports internet portal. Shawei was subsequently acquired by Hutchison Whampoa affiliate The TOM Group in 2000. Fritz began his career in China in 1997 as Business Development Manager for The News Corporation Limited. He was actively involved in a range of initiatives with various News Corp-affiliated companies including ChinaByte.com, STAR TV, NDS and Twentieth Century Fox. A native of Los Angeles, Fritz was educated at UCLA, The Chinese University of Hong Kong, Karls-Ruprecht University and Cal State Fullerton. He is an avid golfer, tennis player and supporter of the Arsenal Gunners of the English Premier League.

Zhuang Chenchao “CC” is a recognized expert in internet technologies. He is currently a co-founder of Qunar.com and leads the company’s technology and product development. Prior to Qunar, CC was a member of the Systems Architecture team at the World Bank and was based in Washington DC. At the World Bank he was instrumental in developing a 130-country, 25-language intranet that was awarded “Best Intranet” by Nielsen Norman in 2003. Prior to relocating to Washington, CC was a founding employee and CTO of Shawei, China’s leading sports portal which was acquired by The Tom Group in 2000. In 1998 while still at university, he also co-founded Shanghai Wei Bo Technologies, a first generation text search engine. Shanghai Wei Bo secured early stage investment from IDG, and the company was eventually acquired by ChinaByte, an affiliate of The News Corporation. A native of Shanghai, CC was educated at Beijing University where he received a degree in Electrical Engineering. Among other pursuits, CC enjoys developing mathematical trading models and investing in the stock market.

Douglas Khoo has been involved in both the interactive and traditional advertising and marketing communications business for almost 20 years. He is currently a co-founder of Qunar.com and leads the company’s sales, marketing and business development activities. In addition to Qunar, Douglas is also a co-founder and investor in a range of online marketing service firms, including online advertising agency OneXeno and search engine optimization (SEO) firm Pixel Direct. Douglas is also Asia Director of Unicast, an internet advertising company specializing in rich media that was recently acquired by Viewpoint. Prior to these activities Douglas was a co-founder and Director of Shawei.com. Before pursuing these entrepreneurial opportunities, Douglas had a number of senior management positions during a 15-year career with the WPP group of companies, including Ogilvy & Mather, J. Walter Thompson, M-Digital and Mindshare. Notably he was responsible for Asia for building M-Digital, the online media buying and planning arm of WPP. Additionally, Douglas was GM of China for Mindshare. At WPP he was assigned to work in China, Hong Kong, Malaysia, Singapore and Indonesia. A native of Malaysia, Douglas earned a diploma in architecture from Jaya Institute of Technology. In his spare time Douglas is an enthusiastic golfer and traveler, and an avid reader of Booker Prize winners.
More

http://www.qunar.com
http://venturebeat.com/2007/11/21/china-roundup-youku-facebook-and-qunar/
http://www.thealarmclock.com/mt/archives/2007/11/chinese_online.html
http://www.mobissimo.com/
http://www.kayak.com/
http://en.wikipedia.org/wiki/Travel_search
http://www.techcrunch.com/2008/01/10/yahoo-travel-chases-kayak-with-farechase/
http://www.techcrunch.com/2007/12/20/breaking-kayak-raises-196-million-buys-rival-sidestep/
http://www.tomgroup.com/eng/

 

Revver, the video-revenue sharing site finally sells out, but the price is not hefty

The site best known as the first video site that started to split the ad revenue with publishers and video creators and producers on a 50/50 basis is being reported sold. The troubled video site Revver was bought by Brad Greenspan’s LiveUniverse for what is rumored on several tech blogs to be under $5 million. No more public information at this hour is available but the price seems quite low taking into consideration the huge amount of money the company has taken so far. Revver is known to have raised $12.7 million from Comcast, Turner, Draper Fisher Jurvetson, Bessemer Venture Partners, Draper Richards and William Randolph Hearst III. Checking on Revver’s blog gave us no further details on the deal.

Earlier this month Revver was put up for sale where the price tag was set to be $1.5 million or less in cash and debt assumption. CNET was among the first media to report on the potential deal between LiveUniverse and Revver, though they did say the deal had fallen apart.

A person from inside the company has commented on the deal that way: “I wouldn’t say anyone got rich, but everybody was happy.”

Many independent creators still prefer the service, though web video stars Ze Frank, Ask a Ninja, Lonelygirl15, and Invisible Engine have discontinued using it as their main platform.

Perhaps everything boils down to the simple fact it is pretty hard to monetize video site. Even though the traffic is perhaps playing little to no role for Revver’s business model it is interesting to note their visitors are not that much – below 1M unique visitors per month as reported on Quantcast.

The Revver team has indicated they plan to work under the new ownership, and no lay off plan has been announced for the video sharing company at present.

The buying company LiveUniverse is probably most popular with the fact it has been founded by one of the founders of MySpace – Brad Greenspan. With over 55M monthly unique visitors, LiveUniverse is one of the world’s largest online entertainment networks. They operate several successful and popular websites across three core verticals: Video, Social Networking & Music. LiveVideo is one of their sites, which about a year ago instigated a scandal on YouTube when it reportedly paid top YouTube users to come to its platform. LiveUniverse founder Brad Greenspan, who was involved with MySpace early on, is perhaps best known for his lawsuits protesting the company’s sale to News Corp.

Additionally in 2006, Greenspan also initiated a lawsuit and activism site against his former company, MySpace, calling attention to the fact they were censoring widget makers and software service providers using MySpace as a development platform.

More about Revver

Revver is a video-sharing platform built the way the internet really works. We support the free and unlimited sharing of media. Our unique technology tracks and monetizes videos as they spread virally across the web, so no matter where your creativity travels, you benefit.

Revver is also the viral video network that pays. We connect video makers and sharers with sponsors in a free and open marketplace that rewards them for doing what they do best.

Revver is committed to the artist. You have something to say and we built our network to empower you to say it.

How does it work?

  1. Upload your video.
  2. We pair your video with a targeted advertisement.
  3. Share your video across the web. The more people see it, the more money you can make.
  4. We split the ad revenue with you 50/50.
  5. Sharers earn money too! Help spread Revver videos and earn 20% of the ad revenue. The remaining money is split 50/50 between the creator of the video and Revver.

We’ve built all sorts of cool and easy sharing tools to help you make your work go viral and earn more money. Share and shared alike. Can you feel the love?

Revver API
Attention developers! Want to build your own video-sharing site like Revver.com? You can use our API to do it. The Revver API includes all the tools you need to create your own video portal complete with user accounts, uploading, sharing tools and access to the full Revver library of videos. Revver covers the bandwidth and shares all ad revenue with you and the video makers.

More

http://revver.com/
http://liveuniverse.com/
http://mashable.com/2008/02/14/liveuniverse-buys-revver/
http://newteevee.com/2008/02/14/liveuniverse-buys-revver-for-more-than-a-song/
http://blog.revver.com/
http://mashable.com/2008/02/06/revver-for-sale/
http://www.contentinople.com/author.asp?section_id=429&doc_id=142633
http://nalts.wordpress.com/2007/02/07/livevideo-vs-youtube-2/
http://mashable.com/2006/11/02/myspace-founder-sues-news-corp-over-censorship/
http://livevideo.com/
http://www.news.com/8301-10784_3-9865731-7.html?part=rss&subj=news&tag=2547-1_3-0-20
http://en.wikipedia.org/wiki/William_Randolph_Hearst_III
http://www.dfj.com/
http://www.bvp.com/
http://www.draperrichards.com/
http://www.quantcast.com/revver.com

InfoSpace has sold its mobile unit for $135M to Motricity, the second prepares to go public

One of the Internet’s oldest companies InfoSpace is probably not performing well since they are largely selling out their businesses. With its switchboard and local directory business having already been sold to Idearc for reportedly $225M, what’s left of InfoSpace was the mobile services division, which serves up managed services infrastructure for mobile carriers. This involves the technology needed for mobile search, storefronts, messaging services and portals. This sale appears to leave InfoSpace with only its Dogpile and other desktop search properties, which have a very small market share. One can’t help but think that CEO Jim Volker and his team are selling off the company piece by piece — because that’s literally what seems to be happening.

InfoSpace Inc. is publicly traded company on NASDAQ with $346M market capitalization where the 52 week high / low is $27.76 and $8.14 respectively. The revenues have dropped to $140.54M for 2007 from $153.80M in 2006. During the first weeks of the current year the InfoSpace’s shares have slightly grown up on 4Q results rise from year ago on the assets sale.

A couple of months ago Motricity, a mobile content solutions service, has acquired the mobile services business unit of InfoSpace for what is said to be $135M in an all cash transaction. From what we have found out it seems the acquisition is being funded largely by Carl Icahn and Advanced Equities since the company has then announced the completion of its $185M a round of funding, which was led by Advanced Equities, Inc., Carl Icahn and New Enterprise Associates, Inc.

Ryan Wuerch is said will stay on as Chairman and CEO of Motricity and Steve Selman, the current executive vice president of InfoSpace’s mobile services business unit, will be appointed as President, Chief Operating Officer of Motricity. With the deal, Motricity will gain access to InfoSpace’s clients, which already includes AT&T, Verizon, Sprint, T-Mobile, Alltel, and more.

“Two of the best companies in the industry are now being integrated to create the premier provider of mobile platform infrastructure,” said Ryan Wuerch, chairman and CEO of Motricity. “We have unparalleled experience in mobile platform development, systems integration, innovation and building world class technology with a proven ability to scale – powering the mobile marketplace including the largest operators and media companies in North America and Europe.”

The acquisition expands Motricity’s customer base to include 11 of the top 13 carriers in North America including AT&T, Verizon Wireless, Sprint, T-Mobile, Bell Mobility, Tracfone and Alltel. Motricity’s managed service infrastructure powers storefronts and communities for 9 of the top 13 carriers in North America and has generated over $1 billion of gross content sales to date. Motricity now powers 5 of the top 6 carrier “start screens” with its mobile portal product which will support billions of page views this year alone. The transaction enhances Motricity’s FuelTM platform, which is a unified suite of solutions that includes content storefront, portal, search, community and messaging services. In addition, it expands Motricity’s international presence by adding offices in the U.K., Paris, and the Netherlands and leading customers throughout Europe including Virgin UK, KPN and Vodafone.

Experts are saying the company is in preparation to go public at near future and such consolidation of their core business in terms of more mobile content, more carriers signed up, more revenues and the reach is perhaps the key towards that direction.

More about InfoSpace Inc.

InfoSpace, Inc. [NASDAQ:INSP] s a developer of tools and technologies that assist consumers with finding content and information on the Internet or mobile phone. The Company uses its technology, including metasearch, to power its own branded Websites and provide private-label online search and directory services to distribution partners. In addition, its mobile applications provide programming and sales opportunities to the Company’s mobile carrier partners, while providing consumers with relevant mobile functionality and mobile media content, including ringtones, graphics and games. The Company operates through two units: Online, which comprises the Company’s search and directory properties, as well as its private label distribution service, and Mobile services, including portal, storefront, messaging and mobile search. InfoSpace maintains facilities in the Los Angeles, California; Westborough, Massachusetts; Woking and Eastleigh, United Kingdom, and Papendrecht, The Netherlands.

Our mission is to make the discovery of information faster, easier, and more relevant. We’ve been doing it for over 10 years. Now, with more than 100 distribution partners and proven relationships with Google, Yahoo!, Ask, and Windows Live Search, InfoSpace is uniquely equipped to be a leader in the rapidly growing Internet search market. In fact, the recent sale of our Mobile and Directory divisions has solidified our focus and leadership solely in the online space.

Better Results with Metasearch Technology
By delivering best-of-the-best results from the Internet’s top search engines, our metasearch technology separates us from competitors and provides an experience that users prefer. Research backs it up.

For the second consecutive year, our leading metasearch site, Dogpile, has been awarded “Highest in Customer Satisfaction Among Internet Users with Primary Search Engines/Functions.” And when users are presented with more meaningful information, they’re more likely to click a result—which leads to increased revenue for advertisers and listings partners.

We have established offerings in two different areas:

Consumer Products
Our four branded search sites include our flagship metasearch engine, Dogpile, as well as MetaCrawler, WebCrawler, and WebFetch.

Our metasearch technology delivers end users the most relevant results on the Web by searching more than 12 of the top search engines, including Google, Yahoo!, Ask, Windows Live Search, and more.

Business Solutions
We provide customized metasearch solutions, downloadable toolbars, and portal services for destination sites, Internet service providers, and international news organizations.

Our private-label solutions help partners quickly and cost-effectively tap into the profit potential of search and online local advertising by providing search capabilities and services under their own brand.

More about Motricity

Motricity is a leading provider of mobile content services and solutions that enable consumers to receive the right content at the right time, every time. The company’s offerings span the content delivery chain, enabling compelling end user experiences and delivering profitable and reliable mobile content offerings for mobile operators, media and entertainment companies, mobile specialists and more. Motricity’s customers include 11 of the top 13 carriers in North America and 20 of the top television networks with marquee partners such as MTV, BET, Turner, AT&T, Alltel, Bell Mobility and others. Products and services range from mobile portals and storefronts to messaging aggregation with access to more than 200 million mobile subscribers.

Motricity now emerges as the only company with proven and scalable offerings across multiple key mobile content solution categories, including: storefronts, search, managed-web, portals, messaging, content aggregation, marketing campaign management and community solutions. By offering these world-class services, Motricity is able to create compelling user experiences and deliver profitable mobile content services to companies seeking to leverage the emerging mobile channel, interact with consumers and build brand loyalty.

In addition, Motricity operates a network of consumer Web sites that offer applications for mobile devices, including: eReader.com, PalmGear.com, Pocketgear.com, Smartphone.net, SymbianGear.com and Mobile2day.de, and powers similar web sites for customers such as the Sony Ericsson application shop, the Palm Software Connection and the PalmSource shop.

The company is headquartered in Durham, N.C., with offices in Bellevue, Los Angeles, London, Paris, Munich and the Netherlands.

Motricity was formed in 2001 by Ryan Wuerch and has since become a leading provider of mobile content services and solutions.

In 2001, Wuerch founded Nashville, Tennessee-based PowerByHand, which would soon become the leading global provider of information, entertainment and education content for handheld and mobile devices. PowerByHand acquired a number of leading commercial Internet sites, including PalmGear.com in October 2002, eReader.com in September 2003 and PocketGear.com and Smartphone.net in March 2004.

In April, 2004, PowerByHand merged with Pinpoint Networks, a provider of software and services for the management and delivery of mobile data services, based in Research Triangle Park, North Carolina. The new company combined PowerByHand’s consumer reach and strong content and developer partnerships with Pinpoint’s carrier-grade technology and international wireless carrier experience, creating the market leader for integrated mobile content solutions.

In October, 2004, the company changed its name to Motricity and announced the acquisition of European mobile content portal Mobile2Day.de. The Mobile2Day.de acquisition complemented Motricity’s content base of more than 60,000 applications by adding an additional 6,000 Symbian applications and localized cross-platform content for the European market while expanding our network of online mobile content storefronts. Throughout 2005, Motricity generated tremendous momentum and excitement, announcing a number of major customer and financial wins while also expanding globally and successfully entering new markets. In October 2004, Motricity closed $27 million in venture funding led by Silicon Valley-based Technology Crossover Ventures (TCV).

In July, 2005, Motricity closed its second major private funding round by collecting $30 million from Chicago-based Advanced Equities Inc., as well as such existing investors as Technology Crossover Ventures, New Enterprise Associates and Intel Capital.

In August, 2005, Motricity announced the acquisition of M7 Networks, the leading provider of advanced wireless services that connect wireless operators, content providers and end users around mobile content based communities, such as games and music. This acquisition strengthened Motricity’s mission to accelerate the adoption of mobile content worldwide.

In April, 2006, Motricity secured its third major round of funding of $40 million to fuel the company’s aggressive expansion in the mobile content industry. This third round was led by Advanced Equities Inc. with participation from other existing investors including New Enterprise Associates and Technology Crossover Ventures.

In July, 2006, Motricity announced the acquisition of GoldPocket Wireless, the leading provider of mobile technology solutions for media and entertainment companies. GoldPocket extended Motricity’s content distribution capabilities and enhances Motricity’s award-winning Fuelâ„¢ platform with a distribution gateway that connects more than 200 million subscribers and a mobile marketing campaign manager that has been chosen by over 20 television networks and 45 media companies to power large scale interactive campaigns with real-time requirements. The deal gave Motricity an unmatched customer footprint and positions the company as the leading provider of on-deck and off-deck solutions for mobile operators and media & entertainment companies.

In August, 2006, Motricity received an additional $32 million in funding, led by Advanced Equities Inc. with participation from other existing investors. In February 2007, Motricity received $50 million in equity funding from Carl Icahn. This brings the company’s total funding to over $200 million.

In December, 2007, the company acquired the Seattle-based mobile services business unit of InfoSpace, Inc. (NASDAQ: INSP), a leading developer of mobile technologies and infrastructure services and raised more than $180 million to complete the all cash transaction.

The acquisition expands Motricity’s customer base to include 11 of the top 13 carriers in North America including AT&T, Verizon Wireless, Sprint, T-Mobile, Bell Mobility, Tracfone and Alltel. Motricity’s managed service infrastructure powers storefronts and communities for 9 of the top 13 carriers in North America and has generated over $1 billion of gross content sales to date. Motricity powers 5 of the top 6 carrier “start screens” with its mobile portal product which will support billions of page views this year alone. The transaction enhances Motricity’s FuelTM platform, which is a unified suite of solutions that includes content storefront, portal, search, community and messaging services. In addition, it expands Motricity’s international presence by adding leading customers throughout Europe including Virgin UK, KPN and Vodafone.

Motricity has received numerous awards and constant recognition honoring the commitment and leadership that the company continues to exhibit, including:

  • 2007 North Carolina Technology Association (NCTA) Private Company of the Year
  • 2006 GSM Association Award for Best Service Delivery Platform
  • 2006 Mobile Entertainment’s Award for Best Content Service Delivery Platform
  • 2005 Frost & Sullivan Award for Premium Mobile Content Platform of the Year
  • 2005 Red Herring 100 Private Companies of North America

Today, Motricity has the support of strong institutional and strategic investors and the industry’s leading customers, including CBS, Turner, CNN, Fox, the NBA, AT&T, Sprint, Alltel, Virgin Mobile, Leap, Mobilcom, BET, Palm and Sony Ericsson.

More

http://motricity.com/
http://www.motricity.com/press/releases.php?rID=07_1228_motricity
http://www.infospaceinc.com/
http://mashable.com/2007/10/15/motricity-infospace/
http://searchengineland.com/071015-132510.php
http://www.idearc.com/
http://searchengineland.com/070917-073055.php
http://finance.google.com/finance?q=NASDAQ:INSP
http://www.forbes.com/markets/feeds/afx/2008/02/06/afx4622765.html
http://moneycentral.msn.com/inc/news/providerredir.asp?feed=AP&date=20080206&id=8148999
http://stocks.us.reuters.com/stocks/fullDescription.asp?rpc=66&symbol=INSP.O
http://www.advancedequities.com/
http://en.wikipedia.org/wiki/Carl_Icahn

Yahoo makes an acquisition of its own – the online video platform Maven Networks

Undeterred by the threat of a hostile takeover Microsoft imposed over them a couple of weeks ago Yahoo seems to have completed an acquisition of its own Tuesday by buying online video service Maven Networks Inc. for $160 million.

The deal marks Yahoo’s latest attempt to expand its online advertising network and more concrete its online video advertising in particular. Yahoo plans to use Maven’s technology to host video for media partners and incorporate Maven’s video-ad insertion technology into its overall advertising platform.

The talks to buy Cambridge, Mass.-based Maven began before Microsoft announced its bid Feb. 1, said Tim Cadogan, Yahoo’s senior vice president of marketing products. Maven helps television and movie studios find Web sites to show their videos and manage the accompanying advertisements. The six-year-old startup works with a wide range of media outlets, including CBS Sports, Gannett Co., News Corp., Hearst Corp. and Sony Pictures.

“We think video is going to become the third leg of the advertising stool,” said Cadogan. Ads tied to search requests is currently the Internet’s biggest moneymaker, followed by so-called display ads featuring photos, illustrations and other images.

As of December, Yahoo held a 3.4 percent share of the U.S. online video market, lagging far behind Google, whose ownership of industry leader YouTube.com gave it nearly one-third of the market, according to comScore Inc.

Yahoo plans to retain Maven’s roughly 70 employees even as it completes plans to lay off 1,000 workers in other divisions as part of a plan announced two days before Microsoft’s bid.

More about Maven Networks

Maven Networks is an online video platform provider with end-to-end video syndication, content management and advertising solution. Maven helps media companies create, distribute and profit from direct-to-consumer Internet TV channels and networks. The Maven Internet TV Platform(TM) is used by organizations such as CanWest, CBS Sports, CBC, CNET, Gannett, The Financial Times, Fox Business Network, Fox News, Hearst, MediaNews Group, Ogilvy, Scripps Networks, Sony BMG, Sony Pictures Television, and TV Guide.

The company is based in Cambridge, MA. Maven had some high-profile investors, including Accel Partners‘ Jim Breyer, who also is a board member and large investor in Facebook, Walmart Stores, Inc.  and Marvel Entertainment. Accel is known to have been investing heavly in video for almost 20 years now. The firm’s more popular participations include Macromedia, Real Networks, among others. Current investments include user-generated video-sharing site MetaCafe, peer-to-peer file-sharing service BitTorrent and Brightcove.

The Market

Video advertising is promising to be huge opportunity online and the sector is extremely competitive with new players entering every couple of weeks. Venture capitals also do think the online video advertising holds the chances to be the next big thing on Internet to bring billions of revenues in and are pouring big money into start-ups with the hope they come up to the groundbreaking technology that might shake the sector and make them the huge ROI.   

No matter what standard for video ads the sector might adopt – pre-roll ads, mid-roll ads, post-roll ads, watermark ads, viral ads or overlay ads, the undisputed leader remains Google’s YouTube with its huge number of eyeballs. That’s why the smaller players are focusing not on the reach but on different approaches and technologies to more effectively serve, track and measure these video ads. The video ads are in their infancy on Web and there is plenty of room for innovation and growth and all those small start-up companies hold their good chances for success.

Some companies, as we know them, include BlackArrow, BrightRoll, XillianTV, Podaddies, VMIX and MeeVee. BrightRoll video ad network itself has raises $5 Million while VMIX, yet another video network company has also raised a whopping amount of money $16.5M to expand its business. Other video advertising players include Revver, VideoEgg’s TheEggNetwork, ScanScout, Adap.tv, AdBrite’s InVideo platform, BroadRamp and Blinkx.

eMarketer predicts online video advertising to nearly double in 2008 to $1.3 billion and $4.3B by 2011, but no one’s really nailed a scalable ad platform for video. However, Google’s been quietly testing their own system and there are a bunch of other startups tackling it as well.

Meanwhile the Microsoft / Yahoo saga is continuing.

The common expectations of the most likely outcome from the situation are that Microsoft is going to increase its bid to as much as $35 thus effectively raising their bid to $50B.

“We think (Microsoft) will have to enhance its offer if it wants to complete a deal,” wrote Bill Miller, a respected fund manager for Legg Mason Inc., which owns more than 80 million Yahoo shares.

Like many other industry analysts, Miller predicted Yahoo ultimately will end up in Microsoft’s clutches.

“We think it will be hard for (Yahoo) to come up with alternatives that deliver more value than (Microsoft) will ultimately be willing to pay,” he wrote.

Miller also wrote that he has already met with Steve Ballmer, Microsoft’s chief executive, and spoken to Jerry Yang, Yahoo’s CEO and co-founder, to share his views.

Microsoft, on the other side, so far has indicated it’s not budging from its original offer, calling the proposal “full and fair.” Analysts believe the tense mating dance will last at least a few more weeks.

Yahoo has been discussing a search advertising partnership with the market leader, Google Inc., as a way to boost its profits and thwart Microsoft’s bid. But a deal between Google and Yahoo would face significant antitrust hurdles because it would meld the two largest search advertising networks, causing more analysts to conclude an alliance is unlikely.

On the other side it seems that News Corp. is going to enter the bidding war for Yahoo! despite some analyses from earlier this week predicting News Corp. is facing hard time to find enough money to accomplish this major deal. The current debt markets in US were to be blamed.

Today we have found on multiple news sources online that Yahoo and News Corp. are in the middle of series of discussions. The potential deal structure would spin off Fox Interactive Media (MySpace, IGN, Scout Media, Photobucket, Fox Sports, AmericanIdol.com, Flektor, Ksolo; investments in Hulu, Simply Hired and Snocap) into Yahoo, along with a big cash injection from News Corp. and an unnamed private equity fund. The total investment would be valued in the $15B range.

Yahoo would be valued at somewhere around $50 billion before the transaction, north of Microsoft’s $44.6 billion bid. That would leave News Corp., plus the private equity group, with more than 20% of the combined entity. They’d be the largest single stockholder and effectively in control of the combined Yahoo/FIM entity and their nearly 150 billion monthly page views. That amount of traffic/reach would put the combined entity on the globe’s second sport after Google and before Microsoft’s web properties.

In related news Bradley Horowitz, head of Yahoo’s Advanced Technology Division has accepted a position with Google, and have left Yahoo for good. He will be working with Joe Kraus, director of product management and head of Google’s OpenSocial initiative. Bradley joined Yahoo in May 2004 as Director of Multimedia Search, and later worked on Yahoo Desktop Search and the Yahoo Toolbar. He has also played a key role in getting the Flickr acquisition done.

More

http://www.maven.net/
http://www.maven.net/blog/
http://news.yahoo.com/s/ap/20080213/ap_on_hi_te/yahoo_acquisition_8;_ylt=AkolBf3dTEHaJIbfAWroBXbZa7gF
http://www.techcrunch.com/2008/01/31/rumor-yahoo-to-announce-large-video-acquisition-today/
http://www.techcrunch.com/2008/02/12/yahoo-confirms-maven-networks-acquisition/
http://www.techcrunch.com/2008/02/12/yahoo-exec-bails-bradley-horowitz-leaves-for-google/
http://www.techcrunch.com/2008/02/12/yahoo-and-news-corp-continue-marathon-discussions-possible-bid-to-counter-microsoft/
http://www.alleyinsider.com/2008/2/yahoo__news_corp__deal_still_in_the_works_
http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=293433
http://www.crunchbase.com/company/maven-networks
http://venturebeat.com/2008/02/12/qa-with-jim-breyer-maven-networks-online-video-opportunities-and-facebook/
http://venturebeat.com/2008/01/31/yahoo-buying-maven-networks-to-serve-online-video-ads-for-big-media/
http://www.elatable.com/blog/about/

And here is what Microsoft has to tell Yahoo!

The saga continues. Following the firm “NO” of Yahoo as of yesterday, Microsoft has put up today an official press release responding to the Yahoo!’s NO with “Reiterates Full and Fair Proposal for Microsoft-Yahoo! Combination”

REDMOND, Wash., Feb. 11 — Microsoft Corp. (Nasdaq: MSFT) today issued the following statement in response to the announcement by Yahoo! Inc. (Nasdaq: YHOO) that its Board of Directors has rejected Microsoft’s previously announced proposal to acquire Yahoo!:

It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties. We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market. A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a    compelling number two competitor for Internet search and online advertising. The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.

On February 1, 2008, Microsoft announced a proposal to acquire all the outstanding shares of Yahoo! common stock for per share consideration of $31 representing a total equity value of approximately $44.6 billion and a 62 percent premium above the closing price of Yahoo! common stock based on the closing prices of the stocks of both companies on Jan. 31, 2008, the last day of trading prior to Microsoft’s announcement. Microsoft’s proposal would allow the Yahoo! shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock, with the total consideration payable to Yahoo! shareholders consisting of one-half cash and one-half Microsoft common stock.

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This material is not a substitute for the prospectus/proxy statement Microsoft Corporation would file with the SEC if an agreement between Microsoft Corporation and Yahoo! Inc. is reached or any other documents which Microsoft Corporation may file with the SEC and send to Yahoo! shareholders in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF YAHOO! INC. ARE URGED TO READ ANY SUCH DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

Investors and security holders will be able to obtain free copies of any documents filed with the SEC by Microsoft Corporation through the web site maintained by the SEC. Free copies of any such documents can also be obtained by directing a request to Investor Relations Department, Microsoft Corporation, One Microsoft Way, Redmond, Washington 98052-6399.

Microsoft Corporation and its directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Microsoft Corporation’s directors and executive officers is available in its Annual Report on Form 10-K for the year ended June 30, 2007, which was filed with the SEC on August 8, 2007, and its proxy statement for its 2007 annual meeting of shareholders, which was filed with the SEC on September 29, 2007. Other information regarding the participants in a proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in any proxy statement filed in connection with the proposed transaction.

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as Microsoft Corporation’s ability to achieve the synergies and value creation contemplated by the proposed transaction, Microsoft Corporation’s ability to promptly and effectively integrate the businesses of Yahoo! Inc. and Microsoft Corporation, the timing to consummate the proposed transaction and any necessary actions to obtain required regulatory approvals, and the diversion of management time on transaction-related issues. For further information regarding risks and uncertainties associated with Microsoft Corporation’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft Corporation’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft Corporation’s Investor Relations department at (800) 285-7772 or at Microsoft Corporation’s website at http://www.microsoft.com/msft.

All information in this communication is as of the date hereof. Microsoft Corporation undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

While reading over different blogs and news stories we came across an interesting view.

Some experts do not accept the fact that people think Yahoo has little to no options left but to accept Microsoft’s offer. The first group says it is not true – Yahoo is having plenty of options to pursue.

It seems like the most obvious “option” would be for Yahoo to ship great products and radically improve the experience of its customers — this is essentially the process the executive team was busy with before this unsolicited bid came on the scene.

While it may be hard for some to imagine that Yahoo would suddenly get its groove back, Apple fought back from a much worse position (remember $6/share?). For all the posturing on both sides, the real underlying question is which ownership configuration would create the most value for customers and communities on a long term run. It would be tragic for a myopic push for short-term shareholder value (and/or acquisition price) to eclipse that more fundamental discussion.
If Yahoo is “massively undervalued,” it’s because its board believes that an independent company has much more long term potential than a combined company would. Microsoft clearly disagrees, and on a financial basis, their “premium” looks impressive, but imagine the world if Microsoft had swooped in and purchased Apple when they were hurting at $6/share… Would that be a better world?

That’s the question we should all be asking — not what sale price is fair.

On the other hand other people claim that Yahoo’s execs had enough time to prove themselves. That said the similarity with Apple ends at comparison of share price. Apple grew their customer base as a result of their actions and that ultimately led to their resurgence. Even though it wasn’t long ago, it was a different time, different place, different environment, and ultimately different people.

If there is a clear monetization plan for products that bring value over what MS is offering, then the Yahoo team should bring that front and center. It sounds as though the Yahoo exec team is saying “just give us more time, and we’ll get it figured out”.

Given how long they’ve been in play, I think the confidence from shareholders in this team to execute on a plan that brings more value than a MS merger is a tough sell right now.

If one takes a look from different perspective if Yahoo! thinks for itself of being “massively undervalued” then it turns out that Yahoo thinks the market was wrong. Some are even going further by asking is Yahoo! arrogant? ‘Massively undervalued’ – Compared to what? Are they that arrogant that they claim that the ‘actual value’ of the company is ANYTHING else than the value assigned by the stock market? It is pretty ballsy to claim that a bid 30% over market value is an under valuation and could basically mean ‘Our company is worth more but we are so bad at making the value visible that no one understands it’

Some of these thoughts were shared with the public on one of the popular tech blogs and credits were to be given if the commentators were not anonymous.

More

https://web2innovations.com/money/2008/02/11/yahoo%e2%80%99s-official-response-to-microsoft%e2%80%99s-offer-no/
http://biz.yahoo.com/prnews/080211/aqm241.html
http://finance.yahoo.com/q?s=yhoo
http://finance.yahoo.com/q?d=t&s=msft
http://money.cnn.com/2008/02/09/magazines/fortune/yahoo_rejects_bid_report.fortune/?postversion=2008020914
http://www.ft.com/cms/s/0/fffc1006-d5e8-11dc-bbb2-0000779fd2ac.html?nclick_check=1
http://blogs.barrons.com/techtraderdaily/2008/02/05/yahoo-the-five-scenario-analysis/
http://www.techcrunch.com/2008/02/08/yahoo-board-to-determine-fate-of-company-today/
https://web2innovations.com/money/2008/02/02/is-google-going-to-be-the-winner-from-the-microsoft-yahoo-deal/
https://web2innovations.com/money/2008/02/04/google%e2%80%99s-chief-legal-officer-vs-microsoft%e2%80%99s-general-counsel/
https://web2innovations.com/money/2008/02/01/yes-we-were-right-yahoo-was-seriously-undervalued-microsoft-offers-446b-for-the-company-a-62-premium-over-their-value-from-yesterday/
http://www.techmeme.com/080201/p78#a080201p78
http://www.mercurynews.com/ci_8149194
http://www.businessweek.com/technology/content/feb2008/tc2008021_885192.htm?chan=rss_topStories_ssi_5
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/02/AR2008020200568.html
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/02/MN8OUQGNB.DTL&type=tech
http://kara.allthingsd.com/20080201/microsoft-to-yahoo-two-days-to-respond-or-else/
http://www.alleyinsider.com/2008/02/hold-everything-we-may-get-another-yhoo-bidder.html
http://www.techcrunch.com/2008/02/01/what-would-a-combined-microsoft-yahoo-look-like/
http://www.techcrunch.com/2008/02/01/ballmers-internal-e-mail-to-the-troops-explaining-the-yahoo-acquisition/
http://www.techcrunch.com/2008/02/02/news-corp-scrambles-to-bid-for-yahoo/
http://www.alleyinsider.com/2008/02/microsoft-yahoo-combined-financials.html
https://web2innovations.com/money/2008/02/08/one-after-another-the-potential-competitive-bidders-for-yahoo-drop-off-is-yahoo-going-to-surrender-to-microsoft/
http://www.informationweek.com/news/showArticle.jhtml?articleID=206107168
http://mashable.com/2008/02/10/yahoo-aol-merger/
http://www.techcrunch.com/2008/02/10/wait-yahoo-and-aol-i-was-looking-forward-to-something-moreintelligent/
http://www.techcrunch.com/2008/02/09/microsofts-80-billion-and-growing-yahoo-headache/
https://web2innovations.com/money/2008/02/09/end-of-speculations-yahoo-rejected-microsoft%e2%80%99s-offer

Yahoo’s official response to Microsoft’s offer: NO!

After we reported the strong NO of Yahoo! to Microsoft over the weekend (Saturday) here is the official response of the Yahoo!’s board of directors.

Yahoo! Board of Directors Says Microsoft’s Proposal Substantially Undervalues Yahoo!

SUNNYVALE, Calif., Feb 11, 2008 — Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, today said the Yahoo! Board of Directors has carefully reviewed Microsoft’s unsolicited proposal with Yahoo!’s management team and financial and legal advisors and has unanimously concluded that the proposal is not in the best interests of Yahoo! and our stockholders.

After careful evaluation, the Board believes that Microsoft’s proposal substantially undervalues Yahoo! including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments. The Board of Directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximize value for all stockholders.

Goldman, Sachs & Co., Lehman Brothers and Moelis & Company are acting as financial advisors to Yahoo!. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor to Yahoo!, and Munger Tolles & Olson LLP is acting as counsel to the outside directors of Yahoo!.

About Yahoo! Inc.

Yahoo! Inc. is a leading global Internet brand and one of the most trafficked Internet destinations worldwide. Yahoo! is focused on powering its communities of users, advertisers, publishers, and developers by creating indispensable experiences built on trust. Yahoo! is headquartered in Sunnyvale, California. For more information, visit pressroom.yahoo.com.

Yahoo! and the Yahoo! logos are trademarks and/or registered trademarks of Yahoo! Inc. All other names are trademarks and/or registered trademarks of their respective owners.

Meanwhile speculations and rumors about potential major merger between Yahoo! and AOL emerged today. This appears to us to be more as incentive for Microsoft to increase its offer for Yahoo! rather than anything real behind. We see little to no synergies between Yahoo! and AOL, aside a few such as instant messaging or the combined eyeballs and the potential deal does not address the major problem of Yahoo!, which is Google.

More

http://money.cnn.com/2008/02/09/magazines/fortune/yahoo_rejects_bid_report.fortune/?postversion=2008020914
http://www.ft.com/cms/s/0/fffc1006-d5e8-11dc-bbb2-0000779fd2ac.html?nclick_check=1
http://blogs.barrons.com/techtraderdaily/2008/02/05/yahoo-the-five-scenario-analysis/
http://www.techcrunch.com/2008/02/08/yahoo-board-to-determine-fate-of-company-today/
https://web2innovations.com/money/2008/02/02/is-google-going-to-be-the-winner-from-the-microsoft-yahoo-deal/
https://web2innovations.com/money/2008/02/04/google%e2%80%99s-chief-legal-officer-vs-microsoft%e2%80%99s-general-counsel/
https://web2innovations.com/money/2008/02/01/yes-we-were-right-yahoo-was-seriously-undervalued-microsoft-offers-446b-for-the-company-a-62-premium-over-their-value-from-yesterday/
http://www.techmeme.com/080201/p78#a080201p78
http://www.mercurynews.com/ci_8149194
http://www.businessweek.com/technology/content/feb2008/tc2008021_885192.htm?chan=rss_topStories_ssi_5
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/02/AR2008020200568.html
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/02/MN8OUQGNB.DTL&type=tech
http://kara.allthingsd.com/20080201/microsoft-to-yahoo-two-days-to-respond-or-else/
http://www.alleyinsider.com/2008/02/hold-everything-we-may-get-another-yhoo-bidder.html
http://www.techcrunch.com/2008/02/01/what-would-a-combined-microsoft-yahoo-look-like/
http://www.techcrunch.com/2008/02/01/ballmers-internal-e-mail-to-the-troops-explaining-the-yahoo-acquisition/
http://www.techcrunch.com/2008/02/02/news-corp-scrambles-to-bid-for-yahoo/
http://www.alleyinsider.com/2008/02/microsoft-yahoo-combined-financials.html
https://web2innovations.com/money/2008/02/08/one-after-another-the-potential-competitive-bidders-for-yahoo-drop-off-is-yahoo-going-to-surrender-to-microsoft/
http://www.informationweek.com/news/showArticle.jhtml?articleID=206107168
http://mashable.com/2008/02/10/yahoo-aol-merger/
http://www.techcrunch.com/2008/02/10/wait-yahoo-and-aol-i-was-looking-forward-to-something-moreintelligent/
http://www.techcrunch.com/2008/02/09/microsofts-80-billion-and-growing-yahoo-headache/
https://web2innovations.com/money/2008/02/09/end-of-speculations-yahoo-rejected-microsoft%e2%80%99s-offer

YuMe, a broadband video advertising network, has taken $16M so far to tackle the video advertising

Yesterday we have covered BlackArrow, which offers an advertising management platform for video, allowing web sites to monitor their inventory while enabling advertisers to insert ads on-the-fly. They have taken $12M and are somehow relying on the cable companies to do its business. The company wants to insert targeted ads into on-demand viewing by placing a piece of hardware between cable operators and consumers While we were researching on BlackArrow online we came across YuMe Networks and realized it is worth writing about.

The well-funded YuMe Networks is aiming to match video publishers with video advertising using a bit of contextual analysis. The company said video content is targeted based on tags and metadata, something that generally works much better for established content creators who label their work well. YuMe uses such information to slot videos into ad-friendly content buckets such as auto, finance, and entertainment.

It’s not quite a highly automated process though, as ad placements are based on broad categories and in fact YuMe employs actual humans to screen content and group it into such categories. That’s in contrast to companies such as TVEyes’ Podscope and Nexidia, which are applying speech recognition tools to decipher what’s going on in a video and place an ad next to it.

The company is based in Redwood City, Calif and has taken more than $7 million in its first round of funding from Khosla Ventures, Accel Partners, and BV Capital. With the current funding their total financing is already $16 million and makes them a well funded contender in the realm of video advertising. The new participant here is DAG Ventures. VideoEgg, by contrast, is one of the largest players in terms of funding having attracted over $34 million over four rounds.

The ads are also included with the video as it’s syndicated on other sites. All distribution is monitored through their analytics package, which also allows geographical targeting down to the zip code. YuMe currently supports video on the web, downloads, mobile and IPTV. Some of their clients include HouseValues.com, True.com, Southwest Media Group, MSN Video, BitTorrent, Azureus, and Pando.

YuMe is building out its own ad inventory, though much of it consists of repurposing 30-second television slots, pretty much like SpotRunner’s ads, into shorter bits appropriate for the web.

YuMe has won “Best In Show Judges Choice” at the Under The Radar Entertainment and Media Conference in 2007.

The market

Video advertising is promising to be huge opportunity online and the sector is extremely competitive with new players entering every couple of weeks. Venture capitals also do think the online video advertising holds the chances to be the next big thing on Internet to bring billions of revenues in and are pouring big money into start-ups with the hope they come up to the groundbreaking technology that might shake the sector and make them the huge ROI.   

No matter what standard for video ads the sector might adopt – pre-roll ads, mid-roll ads, post-roll ads, watermark ads, viral ads or overlay ads, the undisputed leader remains Google’s YouTube with its huge number of eyeballs. That’s why the smaller players are focusing not on the reach but on different approaches and technologies to more effectively serve, track and measure these video ads. The video ads are in their infancy on Web and there is plenty of room for innovation and growth and all those small start-up companies hold their good chances for success.

Some companies, as we know them, include BlackArrow, BrightRoll, XillianTV, Podaddies, VMIX and MeeVee. BrightRoll video ad network itself has raises $5 Million while VMIX, yet another video network company has also raised a whopping amount of money $16.5M to expand its business. Other video advertising players include Revver, VideoEgg’s TheEggNetwork, ScanScout, Adap.tv, AdBrite’s InVideo platform, BroadRamp and Blinkx.

eMarketer predicts online video advertising to nearly double in 2008 to $1.3 billion, but no one’s really nailed a scalable ad platform for video. However, Google’s been quietly testing their own system and there are a bunch of other startups tackling it as well.

More about YuMe Networks

YuMe is the first dedicated broadband video advertising network built from the ground up that offers a brand safe advertising experience that can be delivered to any device – PC, TV, mobile and more – whether streamed or downloaded.

YuMe co–founders Jayant Kadambi and Ayyappan Sankaran realized early on that a strong broadband and IP–based video ad monetization infrastructure did not exist. Whereas today’s video advertising solutions are incremental modifications of existing text and banner networks, Ayyappan and Jayant recognized that video is fundamentally different and in order to properly monetize, transport, traffic and reliably report against video, a new type of advertising network was necessary.

Web advertising has evolved from text, to display and now to video. YuMe is the only ad network built exclusively for the new web video world, providing advertisers and publishers the unprecedented ability to identify, classify and track content to ensure brand safety, contextual relevance, controlled syndication and consistent delivery across all digital media platforms – web, downloads, mobile and IPTV.

YuMe provides publishers the unique ability to identify, classify and track content to ensure brand safety, contextual brand relevance, controlled syndication and consistent delivery to any device – PC, TV, Mobile – whether streamed or downloaded.

YuMe brings order to what is currently chaos in online video. Our solution enables publishers to instantly organize all the video on their site into content channels – automotive, financial services, entertainment, family friendly and more – unlocking new inventory for monetization and allowing advertisers to more precisely target their message to content.

Publisher Benefits?

Enable advertisers to precision target their video ads within your content, increasing the value of your inventory and CPMs. You can now offer more than just run–of–site campaigns.

Syndicate video assets with confidence. YuMe’s proprietary tracking technology allows you to track, monitor and control the distribution and monetization of your video

Deliver richer experiences to customers and communities by tying brand messaging to positioning. No more brands associated with content that is inappropriate or not contextually relevant to the advertiser.

Strike the right balance of advertising and content. YuMe separates the serving of content from the serving of ads, allowing you to determine the best mix of ad types across your channels of content.

YuMe delivers a brand safe, monitored and measured experience across all digital media platforms – Web, Downloads, Mobile and IPTV.

Management Team

Jayant Kadambi, Co–founder and CEO

Jayant Kadambi has over 18 years of experience in the areas of networking, hardware architecture and semiconductors. Prior to co-founding YuMe in 2004, Jayant was Vice President R&D and Officer of Netopia, Inc., a publicly held manufacturer of DSL equipment and service provider for ISP’s and carriers. Jayant joined Netopia upon its acquisition in 1999 of StarNet Technologies, a VoDSL company he had co-founded. Prior to co-founding StarNet, Jayant held various technical and marketing positions in AMD’s networks division, and AT&T Bell Labs, where he worked on high-speed LAN systems, hardware and DSL technologies. Jayant received his BSEE and Masters in Electrical Engineering from Rensselaer Polytechnic. Jayant is the co-author of a book on Gigabit Ethernet and the holder of several patents in the networking arena.

Ayyappan Sankaran, Co–founder and CTO

Ayyappan Sankaran has over 18 years of experience in software architecture, design and development in the areas of real time embedded systems, voice and data networks and medical instrumentation. Prior to co-founding YuMe in 2004, Ayyappan was Director of software development at Netopia, Inc., a publicly held manufacturer of DSL equipment and service provider for ISP’s and carriers. Ayyappan was a co-founder of StarNet Technologies, a VoDSL company that was acquired by Netopia in 1999. Prior to co-founding StarNet, Mr. Sankaran held various technical positions in Octel communications (acquired by Lucent technologies), Abbott Labs, and Ready Systems. Ayyappan holds a BSEE from the College of Engineering, Madras, India and a Masters in Electrical Engineering from the University of Texas.

Grant Ries, Vice President of Business Development

Grant Ries has over 10 years of experience in business development, sales and product marketing. Prior to joining YuMe, Grant was VP of Business Development at Revenue Science. Grant was a member of Revenue Science since its inception and served in a variety of strategic roles, from sales and marketing and account management to business development. Grant holds both a Bachelor of Arts and Masters Degree from The University of Washington.

Steven Comfort, Vice President of Sales

The last 13 of Steven’s 18 years in advertising have been spent in the interactive sector. He has run sales teams at a string of successful young companies: Wired Digital, 24/7 Real Media, eGroups, Tickle and hi5. Prior to 1994, Steven worked in the media planning departments of MediaVest and Euro RSCG in New York City. Steven holds a BA from the University of North Carolina – Chapel Hill.

Bob Bahramipour, Vice President of Ad Operations

Bob has 15 years of experience at major media & internet companies, as well as start-ups. Most recently, as a senior member of the Yahoo! Search team, Bob managed the toolbar business and was responsible for overseeing product, distribution, and partnerships. Prior to Yahoo!, Bob served as the Director of Business Development at 3721 Technology Co Ltd., a Chinese search engine which was acquired by Yahoo in 2003. Bob was also a co-founder & VP of Business Development for Switchouse Inc, an online marketplace for consumers. Prior to Switchouse, Bob held of variety of positions in Volpe Brown Whelan & Company’s M&A advisory group, within SBC’s (now AT&T) corporate development team, and at Braxton Associates, a boutique strategy consulting firm. Bob received his BS from Georgetown University’s School of Foreign Service and attended Northwestern’s J.L. Kellogg Graduate School of Business.

Molly Glover Gallatin, Director of Marketing

Molly brings over 15 years of media and marketing management experience to the YuMe team. Molly began her work in interactive media in 1997 when she launched Granite Broadcasting’s Internet Division, overseeing operations and sales for ten network-affiliated TV station websites. Molly joins YuMe from Knight Ridder Digital, where she managed marketing and communications for the Real Cities Network. Prior to joining Knight Ridder Digital Molly worked for start-ups in the digital media management and Internet TV space – eMotion and RespondTV. Molly began her career in advertising, working in account management at BBDO and D’Arcy Masius Benton Bowles in New York. Molly received her BS from the University of Colorado at Boulder and her MBA from Columbia University.

Investors

Khosla Ventures offers venture assistance, strategic advice and capital to entrepreneurs. The firm helps entrepreneurs extend the potential of their ideas in both traditional venture areas like the Internet, computing, mobile, and silicon technology arenas but also supports breakthrough scientific work in clean technology areas such as bio–refineries for energy and bioplastics, solar, battery and other environmentally friendly technologies. Vinod Khosla was formerly a General Partner at Kleiner Perkins and founder of Sun Microsystems. Vinod has been labeled the #1 VC by Forbes and Fortune recently labeled him as one the nation’s most influential ethanol advocates, noting “there are venture capitalists, and there’s Vinod Khosla.” Vinod Khosla founded the firm in 2004 and was joined by partners David Weiden and Samir Kaul, as well as chief scientific officer Doug Cameron in 2006.
 
Founded in 1983, Accel Partners is one of the world’s leading venture capital firms. The firm is dedicated to partnering with outstanding entrepreneurs to build world–class Internet, software and networking companies. Accel Partners has more than $4bn under management from its offices in Palo Alto, London, and China, and its portfolio companies have completed IPOs that have created well over $150 billion in market capitalization.
 
BV Capital, headquartered in San Francisco, CA and Hamburg, Germany, is an early–stage venture capital firm. Established in 1997, BV focuses exclusively on the intersection of the consumer Internet, digital media and communication software sectors worldwide. BV’s team adds significant expertise and service to entrepreneurs who strive to turn ideas into long–term, sustainable growth companies. Investments include many successes such as Angieslist, del.icio.us, eGroups, Expertcity (gotomypc), K2 Networks and shopping.com. The firm backed by several high profile US, Asian and European investors has been named “one of the most influential investors on either side of the Atlantic” by the Wall Street Journal. To learn more about BV Capital, please visit www.bvcapital.com.
 
DAG Ventures is a venture capital partnership investing in and helping outstanding entrepreneurs create leading, long-term companies across a range of markets. With roots from the 1980’s in cable TV, infrastructure, media, and wireless industries, the partnership today is privileged to work with world-class entrepreneurs as they build tomorrow’s leaders in the information technology, energy, and life science sectors.

More

http://yumenetworks.com/
http://www.techcrunch.com/2007/10/16/yume-closes-9-million-series-b/
http://www.crunchbase.com/company/yume
http://www.techcrunch.com/2007/07/06/video-ads-somebody-needs-to-solve-this-problem/
http://www.undertheradarblog.com/wp_blog.html?fb_2042860_anch=2648520
http://newteevee.com/2007/03/05/yume-launches-video-ad-network/
http://www.emarketer.com/Article.aspx?id=1004258
http://www.techcrunch.com/2007/05/11/youtube-video-advertising-no-pre-roll-no-context/
https://web2innovations.com/money/2008/02/09/blackarrow-took-12-million-to-tackle-the-video-advertising-relies-on-cable-companies/
http://venturebeat.com/2007/10/14/blackarrow-ad-management-for-modern-tv-unstealths-with-12m-financing/
http://adsense.blogspot.com/2006/05/introducing-video-ads.html
http://adwords.blogspot.com/2006/05/click-to-play-video-ads-for-adwords.html
http://adsense.blogspot.com/2007/05/adsense-coming-to-video-near-you.html
http://www.nytimes.com/2007/08/22/technology/22google.html
http://mashable.com/2007/08/21/youtube-reinvents-video-ads/
http://mashable.com/2007/05/11/youtube-ads-2/
http://www.forbes.com/2007/02/22/video-ads-youtube-tech-media-cx_lh_0223video.html
http://venturebeat.com/2006/11/08/skipping-the-ads-black-arrow-raises-1475m-to-defy-you/
http://www.khoslaventures.com/
http://www.accel.com/
http://www.bvcapital.com/

End of speculations: Yahoo rejected Microsoft’s offer

Internet giant Yahoo’s board has decided to reject Microsoft’s takeover bid, saying its 44.6 billion dollar offer “massively undervalues” Yahoo, the Wall Street Journal reported earlier today.

Yahoo’s board also believes the Microsoft offer, at 31 dollars per share, does not account for risks facing Yahoo if it pursues a deal that might be ultimately blocked by government regulators.

“Yahoo’s board believes that Microsoft’s is trying to take advantage of the recent weakness in the company’s share price to ‘steal’ the company,” the board further said.

“Yahoo’s board appears to be betting that Microsoft doesn’t want to ‘go hostile’ and try to acquire the company against the wishes of management and the board,” it also said.

Reports today lacked some facts, but they are not totally off mark. A couple of days ago we were researching online for information and commentaries on the scenarios most possible for the outcome of the Microsoft/Yahoo deal and Citigroup’s Mark Mahaney has speculated with several possible roads for Yahoo to take. Aside other speculative scenarios he played with 40% (the highest) weight was given for the chance Yahoo rejecting the Microsoft’s offer with the only mission to have the offer increased with a few dollars per share, which according to him is the most likely outcome. He was right but is he also right for the reason Yahoo is today rejecting the Microsoft’s bid.

Is there any chance for Microsoft to increase its offer?

On February 1 Microsoft unveiled its 44.6 billion dollar offer to take over Yahoo, in an effort to merge the world’s biggest software company with a major Internet player to take on search and advertising juggernaut Google.

Microsoft proposed 31 dollars per share to Yahoo’s board, a 62 percent premium above its closing price the previous day.

Microsoft said a combination of the companies would lead to cost savings of a billion dollars per year.

But Yahoo chief executive Jerry Yang sent a message to employees on Wednesday, assuring them the firm’s leaders were exploring ways to avoid a Microsoft takeover.

“Our board is thoughtfully evaluating a wide range of potential strategic alternatives in what is a complex and evolving landscape,” Yang wrote in the email.

“What’s become clear in the past few days is how much people care about this company. I’ve heard from many of you, and from other friends and colleagues from around Silicon Valley and across the globe, that we need to do what’s best for Yahoo and our shareholders.”

Google earlier condemned Microsoft’s effort as an attack on the very independence of the Internet.

“Microsoft’s hostile bid for Yahoo raises troubling questions,” said David Drummond, Google’s senior vice president for corporate development and chief legal officer, in a statement Sunday.

“This is about more than simply a financial transaction, one company taking over another. It’s about preserving the underlying principles of the Internet: openness and innovation.”

Update: A few people asked us why the logo of Microsoft/Google appears on the story and not a combined one of Microsoft/Yahoo? Because it is all about the battle between Microsoft and Google and Yahoo! appears to be an instrument. Congrats to Yahoo! though for firmly opposing the MS’s hostile bid!

 

More

http://money.cnn.com/2008/02/09/magazines/fortune/yahoo_rejects_bid_report.fortune/?postversion=2008020914
http://www.ft.com/cms/s/0/fffc1006-d5e8-11dc-bbb2-0000779fd2ac.html?nclick_check=1
http://blogs.barrons.com/techtraderdaily/2008/02/05/yahoo-the-five-scenario-analysis/
http://www.techcrunch.com/2008/02/08/yahoo-board-to-determine-fate-of-company-today/
https://web2innovations.com/money/2008/02/02/is-google-going-to-be-the-winner-from-the-microsoft-yahoo-deal/
https://web2innovations.com/money/2008/02/04/google%e2%80%99s-chief-legal-officer-vs-microsoft%e2%80%99s-general-counsel/
https://web2innovations.com/money/2008/02/01/yes-we-were-right-yahoo-was-seriously-undervalued-microsoft-offers-446b-for-the-company-a-62-premium-over-their-value-from-yesterday/
http://www.techmeme.com/080201/p78#a080201p78
http://www.mercurynews.com/ci_8149194
http://www.businessweek.com/technology/content/feb2008/tc2008021_885192.htm?chan=rss_topStories_ssi_5
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/02/AR2008020200568.html
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/02/MN8OUQGNB.DTL&type=tech
http://kara.allthingsd.com/20080201/microsoft-to-yahoo-two-days-to-respond-or-else/
http://www.alleyinsider.com/2008/02/hold-everything-we-may-get-another-yhoo-bidder.html
http://www.techcrunch.com/2008/02/01/what-would-a-combined-microsoft-yahoo-look-like/
http://www.techcrunch.com/2008/02/01/ballmers-internal-e-mail-to-the-troops-explaining-the-yahoo-acquisition/
http://www.techcrunch.com/2008/02/02/news-corp-scrambles-to-bid-for-yahoo/
http://www.alleyinsider.com/2008/02/microsoft-yahoo-combined-financials.html
https://web2innovations.com/money/2008/02/08/one-after-another-the-potential-competitive-bidders-for-yahoo-drop-off-is-yahoo-going-to-surrender-to-microsoft/
http://www.informationweek.com/news/showArticle.jhtml?articleID=206107168


 

BlackArrow took $12 Million to tackle the video advertising, relies on cable companies

A couple of months ago BlackArrow has taken a big round of money – $12 million in Series B funding.

The company offers an advertising management platform for video, allowing web sites to monitor their inventory while enabling advertisers to insert ads on-the-fly. BlackArrow’s money for its Series B funding came from Comcast Interactive Capital, Cisco Systems, Intel Capital, Mayfield Fund, and Polaris Venture Partners.

The company wants to insert targeted ads into on-demand viewing by placing a piece of hardware between cable operators and consumers. Prior to the user watching an on-demand show, BlackArrow helps deliver a brief ad, tailored to the theme of the show and the user’s apparent preferences. For example, a teenage boy might be delivered an ad for an upcoming game like Halo 3.

While DVRs like the TiVo will still allow users to fast forward past advertising, BlackArrow will open up the field for cable companies to profit from acting as remote ad servers. BlackArrow will count on the cable companies to offer their own DVR technology. The advantage for the consumer is that one does not have to worry about buying or installing a DVR. A majority of viewers still haven’t anyway.

The company is known to have spent more than a year in stealth mode developing its product, and online sources originally suggested that the original aim of the company was to destroy the ad-skipping capabilities of the TiVo. It later turned out it is no longer the case, if it ever was.

The previous round is known to be $5 million, which has been taken back in 2006 and was led by Mayfield Fund. The company’s total funding should already be $17M. The company has offices in both locations San Mateo, CA and New York.

More about BlackArrow

We are independent advertising-technology company that provides multiplatform ad-management for viewer-controlled video.

We’ve seen the future, and the future is now for on-demand video programming with dynamic, personalized advertising. In the world of viewer-controlled video, where the consumer controls the play, pause, fast-forward and rewind buttons, BlackArrow provides the answer for a dynamic video ad-management that supports broadband, video-on-demand (VOD) and DVR playout.

One with the ability to reach the right audience with a laser-focused message — across any on-demand platform. And rapid-fire reporting to provide powerful “apples-to-apples” analytics across playout environments, helping you evaluate and optimize brand campaigns in entirely new ways.

BlackArrow is your partner on the path to multiplatform monetization. With the new world order of on-demand video comes a corresponding set of new advertising and revenue opportunities.

Management team

Dean Denhart: president and chief executive officer

Dean Denhart has extensive technology leadership expertise in telecom, media and technology-related industries across large, medium and start-up companies. Denhart has been directly involved in the acquisition and operation integration of over 18 technology companies with expertise in off-shore, joint ventures and partnerships. As president and CEO of BlackArrow, Denhart is responsible for all business operations, technology development, financial management, business development and governance of BlackArrow. Previously, Denhart oversaw the strategic development of product and technology at Knight Ridder Digital. Denhart was also CIO and executive vice president of product and technology for HomeStore, an online real estate marketing company. Prior, he served as vice president of AirTouch Communications’ software systems group, held a vice president of network systems role during a 17-year tenure with SBC Communications/Pacific Bell, was CIO of Telecel (a wireless company) in Portugal and was an integral research and development executive at Bell Communications Research.

Other management team members are as follows.

  • Sharon Mandell: senior vice president and chief technology officer
  • Tracy Martin: chief financial officer
  • Chris Hock: senior vice president, product management
  • Patrick Carter: vice president, operations
  • Courtenay Harry: vice president, advertising business development
  • Bill Niemeyer: chief of analysis and research
  • Kelly Ryan: vice president, content business development
  • David Stengle: vice president, distribution
  • Thérèse Bruno: senior director, marketing

The Investors

Cisco Systems, Inc.
Cisco Systems, Inc. (Nasdaq: CSCO) is the worldwide leader in networking for the Internet. Today, networks are an essential part of business, education, government and home communications, and Cisco Internet Protocol-based (IP) networking solutions are the foundation of these networks. Cisco hardware, software, and service offerings are used to create Internet solutions that allow individuals, companies, and countries to increase productivity, improve customer satisfaction and strengthen competitive advantage. The Cisco name has become synonymous with the Internet, as well as with the productivity improvements that Internet business solutions provide.

Comcast Interactive Capital
Comcast Interactive Capital (CIC) is a venture capital fund focused on broadband, enterprise and interactive technologies. CIC is affiliated with Comcast Corporation (Nasdaq: CMCSA), a diversified global leader in cable, broadband services, telecommunications and entertainment. CIC’s primary goal is to generate superior financial returns from private equity investments in early-stage technology companies. To achieve this goal, CIC works to foster the success of its portfolio companies by bringing to bear the unique resources, experience, and insight of both CIC and the Comcast family of companies.

Intel Capital
Intel Capital (Nasdaq: INTC), Intel’s global investment organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software and services targeting enterprise, home, mobility, health, consumer Internet and semiconductor manufacturing. Since 1991, Intel Capital has invested more than US$6 billion in approximately 1,000 companies in more than 40 countries. In that timeframe, about 157 portfolio companies have gone public on various exchanges around the world and another 187 have been acquired by other companies. In 2006, Intel Capital invested about US$1.07 billion in 163 deals with approximately 60 percent of funds (excluding Clearwire) invested outside the United States.

About Mayfield Fund
Mayfield Fund provides “venture capital with impact” by partnering with exceptional individuals to create industry-leading companies. Mayfield has domain expertise in communications/wireless, consumer/media, enterprise software and semiconductors. The firm has over $2.7 billion under management and a team of eleven investing professionals. Since Mayfield’s founding in 1969, the firm has invested in more than 470 high-growth companies, taken more than 100 public and more than 150 have merged or were acquired.

Polaris Venture Partners
A national venture capital firm with over $3 billion under management, Polaris invests in seed, early stage and growth equity businesses in the technology, life science, digital media, enertech and consumer sectors. Through a philosophy of lead investing and active, long-term partnering with entrepreneurs and management teams, Polaris has helped a number of companies achieve outstanding success. Among them are: Accordant Health Services, Acusphere, Advanced Inhalation Research (AIR), Akamai Technologies, Allaire Corporation, Alnylam Pharmaceuticals, American Superconductor, Archivas, Aspect Medical Systems, Avici Systems, Centra Software, Classifieds2000, Cubist Pharmaceuticals, Cushcraft Corporation, deCODE genetics, Exchange.com, GlycoFi, Matrics, Momenta Pharmaceuticals, Paradigm Genetics, Powersoft, Solidworks, and TransForm Pharmaceuticals.

The Competition

Video advertising is promising to be huge opportunity online and the sector is extremely competitive with new players entering every couple of weeks. Venture capitals also do think the online video advertising holds the chances to be the next big thing on Internet to bring billions of revenues in and are pouring big money into start-ups with the hope they come up to the groundbreaking technology that might shake the sector and make them the huge ROI.   

No matter what standard for video ads the sector might adopt – pre-roll ads, post-roll ads or overlay ads, the undisputed leader remains Google’s YouTube with its huge number of eyeballs. That’s why the smaller players are focusing not on the reach but on different approaches and technologies to more effectively serve, track and measure these video ads. The video ads are in their infancy on Web and there is plenty of room for innovation and growth and all those small start-up companies hold their good chances for success.

Some companies, as we know them, include BrightRoll, XillianTV, YuMe, Podaddies, VMIX and MeeVee. BrightRoll video ad network itself has raises $5 Million while YuMe raised $9 Million for yet another video ad network. VMIX, yet another video network company has also raised a whopping amount of money $16.5M to expand its business.

More

http://www.blackarrow.tv/
http://mashable.com/2007/10/15/blackarrow-funding/
http://venturebeat.com/2007/10/14/blackarrow-ad-management-for-modern-tv-unstealths-with-12m-financing/
http://adsense.blogspot.com/2006/05/introducing-video-ads.html
http://adwords.blogspot.com/2006/05/click-to-play-video-ads-for-adwords.html
http://adsense.blogspot.com/2007/05/adsense-coming-to-video-near-you.html
http://www.nytimes.com/2007/08/22/technology/22google.html
http://mashable.com/2007/08/21/youtube-reinvents-video-ads/
http://mashable.com/2007/05/11/youtube-ads-2/
http://www.forbes.com/2007/02/22/video-ads-youtube-tech-media-cx_lh_0223video.html
http://venturebeat.com/2006/11/08/skipping-the-ads-black-arrow-raises-1475m-to-defy-you/
http://www.cisco.com
http://www.civentures.com
http://www.intelcapital.com
http://www.polarisventures.com

One after another the potential competitive bidders for Yahoo drop off; is Yahoo going to surrender to Microsoft?

A few days ago we were trying to analyze who is going to eventually make a counter offer to match or outbid the Microsoft’s $46B offer for Yahoo!.

By that time multiple sources were reporting counter offers are in preparation by competitive bidders trying to snatch Yahoo! before Microsoft does it. We then exclude Google from the list of potential bidders for Yahoo! because some experts cited a 75 percent market share in the paid-search advertising market worldwide if Google/Yahoo deal happens and therefore Google is prevented by antitrust laws from buying Yahoo.

Another rumor was that a big private equity firm from New York is going to enter the bidding war for Yahoo!. No more news for that mystical white knight from New York has ever appeared publicly, so we put that aside. 

Another potential bidder being rumored on a few blogs was the New York-based Quadrangle Partners. Yahoo’s former president, Dan Rosensweig recently joined the firm to open the Silicon Valley office and Quadrangle also has deep media expertise. Yahoo! is after all more like a major media company with Internet nuance rather than pure technology company like, for example, Google.

Nothing happened here and we can clearly erase that bidder from the list too.

Other sources were reporting that News Corp is also frantically trying to put together a competing bid, with the help of private equity firms. This makes sense, given News Corp’s previous interest in trading MySpace for a big Yahoo equity stake. News Corp can’t afford to do the whole deal, but it could certainly provide some funding in exchange for some equity.

Nothing happened here too so we do assume News Corp has given up to fight for Yahoo! – Microsoft has simply put the price tag too high and is effectively preventing other players from offering anything even nearly close to their bid.

Today we learn that Softbank, the Japanese telecommunications and internet group, yesterday said it had no intention of selling its 41 per cent stake in Yahoo Japan after Microsoft’s bid for Yahoo. They also stated they have no intention of selling our Yahoo Japan stake. Mr. Masayoshi Son also said that Softbank, which owns 3.9 per cent of Yahoo, had no plans to take part in a counter-bid for the US company, which owns 33 per cent of Yahoo Japan.

Japan, by the way, is one of the few markets in which Yahoo remains the dominant search engine. Yahoo Japan also operates the country’s leading auction site Ebay.

Clearly Softbank is out of the game too. Anyone else? We hear and read nobody is proposing any counter bid for Yahoo!, so we have only Microsoft left in the game. A few days ago Citigroup’s Mark Mahaney has speculated with several possible roads for Yahoo to take. Aside other speculative scenarios he played with 40% (the highest) weight was given for the chance Yahoo rejecting the Microsoft’s offer with the only mission to have the offer increased with a few dollars per share, which according to him is the most likely outcome.

We have read over a few blogs that Yahoo has scheduled a special board of directors meeting on Friday, which we guess is to finally decide on what the company’s course is going to be. After a though week of dramatic events and speculations, it’s clear that no one is going to step in with a competing acquisition so we are getting nearer to witness a major deal between Microsoft and Yahoo!.  We guess we all learn more in the next few days.

Update: A few people asked us why the logo of Microsoft/Google appears on the story and not a combined one of Microsoft/Yahoo? Because it is all about the battle between Microsoft and Google and Yahoo! appears to be an instrument. Congrats to Yahoo! though for firmly opposing the MS’s hostile bid!

 

More

http://www.ft.com/cms/s/0/fffc1006-d5e8-11dc-bbb2-0000779fd2ac.html?nclick_check=1
http://blogs.barrons.com/techtraderdaily/2008/02/05/yahoo-the-five-scenario-analysis/
http://www.techcrunch.com/2008/02/08/yahoo-board-to-determine-fate-of-company-today/
https://web2innovations.com/money/2008/02/02/is-google-going-to-be-the-winner-from-the-microsoft-yahoo-deal/
https://web2innovations.com/money/2008/02/04/google%e2%80%99s-chief-legal-officer-vs-microsoft%e2%80%99s-general-counsel/
https://web2innovations.com/money/2008/02/01/yes-we-were-right-yahoo-was-seriously-undervalued-microsoft-offers-446b-for-the-company-a-62-premium-over-their-value-from-yesterday/
http://www.techmeme.com/080201/p78#a080201p78
http://www.mercurynews.com/ci_8149194
http://www.businessweek.com/technology/content/feb2008/tc2008021_885192.htm?chan=rss_topStories_ssi_5
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/02/AR2008020200568.html
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/02/MN8OUQGNB.DTL&type=tech
http://kara.allthingsd.com/20080201/microsoft-to-yahoo-two-days-to-respond-or-else/
http://www.alleyinsider.com/2008/02/hold-everything-we-may-get-another-yhoo-bidder.html
http://www.techcrunch.com/2008/02/01/what-would-a-combined-microsoft-yahoo-look-like/
http://www.techcrunch.com/2008/02/01/ballmers-internal-e-mail-to-the-troops-explaining-the-yahoo-acquisition/
http://www.techcrunch.com/2008/02/02/news-corp-scrambles-to-bid-for-yahoo/
http://www.alleyinsider.com/2008/02/microsoft-yahoo-combined-financials.html

An acquisition within the 3-D modeling space

While everybody is waiting to see what is going to happen between Microsoft and Yahoo, the first made yet another technology acquisition – bought the 3D modeling and animation software company called Caligari to further improve its Virtual Earth. Caligari appears to be not the typical web 2.0 company one might think of at first reading – they have been established back in 1986. Terms, typically for Microsoft’s small buys, were not disclosed.

Roman Ormandy, the CEO of Caligari (he has personally very interesting story which you can ready below), stated in a post yesterday in his company’s online forum that his staff as well as the people tasked with building Virtual Earth since the start are committed to a vision ensuring a “long-term commitment to the 3D Web.”

Caligari offers a range of products for 3D enthusiasts and illustrators, researchers and design engineers. All of Caligari’s products feature an immersive real-time interface that allows users to intuitively and directly manipulate objects in a fully-rendered 3D space, thus enhancing and accelerating the overall design process.

The motivation behind this deal seems quite clear – competing with Google and its popular Google Earth/Maps developments.

Interesting fact to note is that in a similar move Google has acquired a similar company back in 2006 called SketchUp, which is also 3-D modeling software that is now used to place 3-D objects inside Google Earth.

The company is based in Mountain View, CA.

The company was founded in 1986 by Roman Ormandy. A prototype 3D video animation package for the Amiga Computer, which led to the incorporation of Octree Software in 1986. From 1988 to 1992, Octree released several software packages including Caligari1, Caligari2, Caligari Broadcast, and Caligari 24. Caligari wanted to provide inexpensive yet professional industrial video and corporate presentation software. In 1993 Octree Software moved from New York to California and became known as Caligari Corporation. In 1994 trueSpace 1.0 was introduced on the Windows platform.

Interesting videos for trueSpace can be seen on YouTube.

More about Caligari Corporation

Founded in 1986, Caligari Corporation is one of the pioneers of 3D modeling and animation. Throughout our history, Caligari has focused on providing powerful, intuitive and affordable tools that enable users to communicate visually, whether the end product is a web page, a fully-rendered image, a 3D model or an interactive simulation. Today, we continue to drive innovation to the 3D authoring process in markets that range from design and engineering to biomedicine and entertainment. The release of trueSpace7 has opened new doors in 3D by providing our users with something that no other 3D company has ever offered: real-time collaborative authoring.

Caligari offers a range of products to satisfy everyone from 3D enthusiasts to illustrators, researchers and design engineers. All of Caligari’s products feature an immersive real-time interface that allows users to intuitively and directly manipulate objects in a fully-rendered 3D space, thus enhancing and accelerating the design process.

In January of 2006, after 20 years of uninterrupted development, Caligari released the 12th generation of its flagship product, trueSpace. Not only has Caligari enhanced the award-winning modeling, surfacing and rendering capabilities of trueSpace; we have revolutionized the way 3D content is created, communicated and shared with others. trueSpace7 is the only 3D authoring product on the market to offer all aspects of real-time design, modeling and animation within a virtual 3D space shared by remote participants over the broadband internet. trueSpace7’s easy-to-use authoring tools are seamlessly integrated into the underlying collaborative process. The trueSpace7 collaboration server enables multiple participants to connect to a shared 3D space to create and manipulate shared content in real-time.

Other products include gameSpace and iSpace. gameSpace offers game artists high-end 3D authoring capabilities at a low-end price. gameSpace provides all the tools game artists need for modeling, texturing, animating, UV mapping, and more; and comes with the built-in ability to export content to multiple game engine formats.

iSpace is an innovative 3D web graphics solution that allows web developers to easily create stunning 3D web pages in HTML and Macromedia Flash format. With iSpace, web designers can import existing 2D HTML pages, convert them into 3D and enhance their layout with easy-to-use styles and graphical elements such as buttons, lights, animations and 3D text. iSpace is also a complete assembly platform, allowing the user to combine .jpg, .gif, and Flash files in the same workspace to quickly and easily create integrated HTML outputs.

The Founder

Born in 1955 in Czechoslovakia, Roman Ormandy obtained an advanced degree in Computer science from Komensky University in Bratislava in 1980. He then undertook post-graduate studies in artificial intelligence, psychology and linguistics at Charles University in Prague. In 1981, he received a research fellowship in the University’s Laboratory for Computational Linguistics.

Later that same year, Ormandy defected to Italy while on “holiday” in Yugoslavia. He spent several months in an Italian refugee camps while his wife, Bibiana, was still in Czechoslovakia. A year later Ormandy was joined in America by Bibiana and their 18-month old son, whom he had never seen, after their dramatic flight across the Yugoslavian border.

Ormandy’s first job in the United States was in a suitcase factory making cases for Apple IIC computers. He then worked in the computer lab of Lexington School for the deaf while attending the graduate program in Computer Science at City University in New York. In 1983, he landed a job programming IBM graphics software for educational applications for Classroom Consortia Media. While here, he authored two educational applications and BrainChild, a software game design for the IBM PC Jr. In 1985, Ormandy became a computer graphics consultant for Edwin Schlossberg Inc., designing interactive laser disc applications and other components of the information system for Manhattans’ World Financial Center.

Ormandy began working on the prototype for a 3D video animation package for the Amiga computer in 1985. The prototype generated intense interest following a preview of Siggraph ’86 Conference. In the fall of 1986, Ormandy incorporated Octree Software, initially working part-time to get his new company off the ground. In 1988 he switched to full-time with the introduction of Caligari, aimed at the industrial video, design and corporate presentation markets. Ormandy grew very interested in creating a more realistic user interface to optimize human physiology and inspired by the belief that creativity would be radically increased if the designer was given direct contact with 3D objects in the workspace.

Two years later, Caligari Broadcast was introduced, offering professional quality 3D animation at a fraction of the cost of comparable systems. Because of its real-time, direct manipulation of objects in real-life perspective, Caligari allowed the computer user to transcend the 2D environment and explore new creative territory of its own.

In April, 1994, Caligari further revolutionized the 3D market by introducing trueSpace 1.0 for Windows, a powerful, usable 3D modeling, rendering and animation package that combined real-time direct manipulation of objects and professional-quality output with an easy-to-learn, icon-based interface. trueSpace’s affordable price, seamlessly integrated organic modeling, photorealistic ray-tracing, broadcast-quality animation and unprecedented ease-of-creation modeling tools created a phenomenon of response in the adolescent 3D market. Its highly usable VR-style immersive interface encouraged experimentation, stimulated creativity and gave users the ability to create stunning renderings and animation easily.

Today the award-winning trueSpace legacy continues unbroken, with the latest version, trueSpace7, still based on the same principles of making professional power available to users while keeping the software easy to use and affordable. Caligari has also expanded the product range to include gameSpace, which allows users to create 3D content for games, and truePlace, an on-line meeting place for social networking, distance learning, and collaboration.

Roman Ormandy and Caligari’s introduction of trueSpace helped redefine how people can create and communicate in media. He believes one of the most far-reaching possibilities is the creation of a new form of knowledge repository based not on symbols, but living, breathing 3D objects encapsulating knowledge into code and shared in collaborative on-line environments.

More

http://www.caligari.com/
http://forums1.caligari.com/truespace/showthread.php?p=59557#post59557
http://mashable.com/2008/02/07/microsoft-acquires-caligari-3d/
http://virtualearth.spaces.live.com/blog/cns!2BBC66E99FDCDB98!11432.entry
http://www.techcrunch.com/2008/02/07/microsoft-buys-caligari-to-pimp-up-virtual-earth/
http://www.caligari.com/Gallery/Animations/2007/jan/anim/2912.wmv
http://sketchup.google.com/
http://www.engadget.com/2007/03/07/playstation-home-revealed/
http://redmondspy.blogspot.com/2008/02/microsoft-kauft-3d-experten-caligari.html
http://en.wikipedia.org/wiki/TrueSpace
http://www.youtube.com/results?search_type=search_videos&search_query=truespace&search_sort=&search_category=0&page=4
http://lunadude.com/rsrc_trueSpace.htm

It seems eXpresso is having more competition than we thought

A couple of days ago when we wrote about a tiny start-up that raised venture capital for an online collaboration tool built around Microsoft Excel we did not fully realize how crowded the market is. Today Mashable has put up a very nice and comprehensive list of all things spreadsheet – or in other words 14 online spreadsheet applications, eXpresso among them. Nice thumbnails are taken on any of the sites below and can be seen on Mashable. 

BadBlue.com – Features free personal accounts or paid enterprise class services for sharing Excel spreadsheets over the web.

Blist.com – Still in private beta, and here is the Mashable’s detailed write-up on what you can expect from this new spreadsheet app.

EditGrid.com – You can upload your existing spreadsheets, start new ones, and share & collaborate with friends and colleague.

Google Docs – No list of online spreadsheet apps would be complete without the ubiquitous mention of Google Docs. It feels, and looks, a lot like Microsoft Excel and is easily shareable with others.

InputWebWizard.com – Works your spreadsheets with a database so all of your data is stored in a SQL database. System is set to help you develop web apps, but still seems a bit pricey at $499 a month.

JotSpot – Import and Export with Excel, copy-and-paste from Excel, share the documents, even use hyperlinks and attach files.

Numbler.com – A plain, straightforward, collaborative spreadsheet application.

NumSum.com – A more social spreadsheet app where you can leave your work totally open if you choose and allow others to comment on it.

Peepel.com – Import your Excel spreadsheets, work with multiple documents in the same browser window, get an RSS feed of the latest changes to collaborative documents and more.

Sheetster.com – Has the normal online spreadsheet features such as collaboration, but also offers blog embedding options.

Simple Spreadsheet – An open source project that is part of the Simple Groupware Solutions project. Free to use and 100% web based.

ThinkFreeDocs.com – For now, you can not edit uploaded spreadsheets via the site, but they are working on it. Upload what you have and share it.

Zoho Sheet – Part of the Zoho suite of online office applications, Sheet will allow you to import and export with Excel, collaborate with others, and even do quick “throwaway” sheets if you just need to scratch something out.
 

Sequoia Capital invested in TokBox, hoping for Web’s next big communication tool

Sequoia Capital has recently provided $4 million in Series A round of funding to Tokbox – a new startup providing real-time video chat via a browser. Sequoia joins an already impressive collection of angel investors including founding members of YouTube, Bebo, and Netscape along with execs from Slide, PayPal and Cisco. This investor network alone will likely propel the startup to partnerships and acquisition discussions.

The same backers who helped catapult YouTube to glory wants to do for live video chats what YouTube did for video watching.

The company, TokBox, allows people with Webcams and broadband Internet connections to conduct face-to-face chats inside a Web browser. Users can visit its site, www.tokbox.com, or add a TokBox module to their pages on social Web sites like MySpace or Facebook.

Several other services, including AOL’s AIM, Yahoo Messenger and Skype, allow live video chats but require that each party download the software and be online at the same time. On TokBox, if one party is not present, users can send a video mail message of up to five minutes in length that the other party can later retrieve at the site.

“Video communication has never really taken off, despite the fact that people talk about it as a part of the future,” said Serge Faguet, TokBox chief executive, who is a 21-year-old native of Russia and co-founded the company after attending one semester of Stanford business school.

The six-month-old (by that time – Oct ’07) TokBox would probably be just another dot-com with ambitious dreams were it not for an impressive pedigree that includes many of the same names as YouTube. Jawed Karim, a YouTube co-founder who left the video sharing site early on, is backing the company financially and sits on its board.

Roelof Botha, the Sequoia partner who invested in YouTube, is also guiding TokBox and, not surprisingly, plays up the similarities. “Part of the beauty of YouTube is that we all have browsers and we are all on the Internet, so you can click on a link and video will start to play,” he said. “TokBox offers the same easy solution inside the browser.”

Under no doubt some of the people engaged with the company do know one or more things about the online video market, but it is also pretty clear that if TookBox takes off and gets to be popular it is going to face scale up challenges.

As YouTube’s popularity skyrocketed, it had to keep up with the bulging cost of storing and playing all those videos. TokBox will have to do that as well, and will also have to ensure that live video chats flow seamlessly.

However TokBox has attracted high-profile talented technical advisers to help it overcome those obstacles. Rajeev Motwani, a Stanford professor and an early adviser to Google, is an investor and is counseling the company. Tony Bates, a senior vice president at Cisco, is also an investor and is helping TokBox to develop the underlying technology to support a large number of users.

The company has also a Facebook application that was developed by Ryan Merket and allows you to video chat with your friends or leave video mail and voice mail for your friends directly from your own Facebook profile.

Investors include: Sequoia Capital, Rajeev Motwani, Roelof Botha, Tony Bates and Jawed Karim, presumingly some of the individuals are angel investors.

The company is based in Palo Alto and what is interesting as fact is the company is housed in the same offices that was used by YouTube to start off.

Competitors include Skype, WebEx, Zorap and Userplane, among others. 

Of course, the company did not yet figure out what to make money from but this is not uncommon for most of the start ups in the Silicon Valley. The founders say they are looking at advertising and selling advanced versions of the service to companies that can use it to communicate with their customers online.

More

http://www.tokbox.com/
http://blog.tokbox.com/
http://www.sequoiacap.com/
http://www.nytimes.com/2007/10/15/business/media/15video.html?ei=5088&en=59b45c9e60a88aee&ex=1350100800&adxnnl=1&partner=rssnyt&emc=rss&adxnnlx=1192446339-6J23Kqqnew4p1VFrtrkAJg
http://gigaom.com/2007/10/15/tokbox/
http://www.crunchbase.com/company/tokbox
http://www.techcrunch.com/2007/08/14/use-tokbox-to-set-up-instant-video-chat/
http://www.techcrunch.com/2007/10/14/tokbox-gets-some-nytimes-love/
http://www.crunchgear.com/2007/10/15/tokbox-live-video-web-chat-is-the-latest-next-youtube/
http://mashable.com/2007/10/15/tokbox-funding/
http://www.webpronews.com/topnews/2007/10/15/tokbox-receives-4-million-in-funding
http://ukwebfocus.wordpress.com/2007/09/19/tokbox-a-useful-video-conferencing-tool-or-something-sinister/
http://lifehacker.com/software/video-conferencing/in+browser-video-chat-with-tokbox-310734.php
 

Google’s Chief Legal Officer vs. Microsoft’s General Counsel

An interesting virtual war is taking place on Web right now caused by the Microsoft’s bid for Yahoo!. It appears Google cannot (or they don’t want to) enter the bidding war for Yahoo! due to many reasons; one of them seems to be the antitrust law complications that might arise from potential market dominance in the search market. Another reason could be that Google does not need Yahoo but does not want to let Microsoft own it. Yet it did not stop David Drummond, Senior Vice President, Corporate Development and Chief Legal Officer to attack Microsoft about openness and the competition on Internet. David pointed out that the combined entity is going to have a dominant role on the IM and the email markets in US. By contrast, Microsoft has replied that deal between Microsoft and Yahoo is going to create competition since Google is the dominant player on both the search and web advertising markets. From the two statements below it becomes clear enough that it is all about Microsoft vs. Google and Yahoo is just a company to be used by Microsoft in their on going battle with Google for the leading position on Internet. Both companies seem right and not really the same time. Google barking at Microsoft about openness and compositeness is quite strange taking into consideration their unprecedented dominancy on the search and advertising market online. The same time Microsoft talking about openness, innovation, and the protection of privacy on the Internet sounds quite the same to me – unserious. Read below and decide for yourself who is right and who is wrong. 

Below is what Google said on their official blog.

The openness of the Internet is what made Google — and Yahoo! — possible. A good idea that users find useful spreads quickly. Businesses can be created around the idea. Users benefit from constant innovation. It’s what makes the Internet such an exciting place.

So Microsoft’s hostile bid for Yahoo! raises troubling questions. This is about more than simply a financial transaction, one company taking over another. It’s about preserving the underlying principles of the Internet: openness and innovation.

Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies — and then leverage its dominance into new, adjacent markets.

Could the acquisition of Yahoo! allow Microsoft — despite its legacy of serious legal and regulatory offenses — to extend unfair practices from browsers and operating systems to the Internet? In addition, Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts. And between them, the two companies operate the two most heavily trafficked portals on the Internet. Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors’ email, IM, and web-based services? Policymakers around the world need to ask these questions — and consumers deserve satisfying answers.

This hostile bid was announced on Friday, so there is plenty of time for these questions to be thoroughly addressed. We take Internet openness, choice and innovation seriously. They are the core of our culture. We believe that the interests of Internet users come first — and should come first — as the merits of this proposed acquisition are examined and alternatives explored.

Statement from Brad Smith, General Counsel, Microsoft

The combination of Microsoft and Yahoo! will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The alternative scenarios only lead to less competition on the Internet.

Today, Google is the dominant search engine and advertising company on the Web. Google has amassed about 75 percent of paid search revenues worldwide and its share continues to grow. According to published reports, Google currently has more than 65 percent search query share in the U.S. and more than 85 percent in Europe. Microsoft and Yahoo! on the other hand have roughly 30 percent combined in the U.S. and approximately 10 percent combined in Europe.

Microsoft is committed to openness, innovation, and the protection of privacy on the Internet. We believe that the combination of Microsoft and Yahoo! will advance these goals.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed transaction, Microsoft Corp. plans to file with the SEC a registration statement on Form S-4 containing a proxy statement/prospectus and other documents regarding the proposed transaction. The definitive proxy statement/prospectus will be mailed to shareholders of Yahoo! Inc. INVESTORS AND SECURITY HOLDERS OF YAHOO! INC. ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

Investors and security holders will be able to obtain free copies of the registration statement and the proxy statement/prospectus (when available) and other documents filed with the SEC by Microsoft Corp. through the Web site maintained by the SEC at sec.gov. Free copies of the registration statement and the proxy statement/prospectus (when available) and other documents filed with the SEC can also be obtained by directing a request to Investor Relations Department, Microsoft Corp., One Microsoft Way, Redmond, Wash. 98052-6399.

Microsoft Corp. and its directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Microsoft Corp.’s directors and executive officers is available in its Annual Report on Form 10-K for the year ended June 30, 2007, which was filed with the SEC on Aug. 8, 2007, and its proxy statement for its 2007 annual meeting of shareholders, which was filed with the SEC on Sept. 29, 2007. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available.

Who is David C. Drummond?

David C. Drummond is Senior Vice President, Corporate Development and Chief Legal Officer

David Drummond joined Google in 2002, initially as vice president of corporate development. Today as senior vice president and chief legal officer, he leads Google’s global teams for legal, government relations, corporate development (M&A and investment projects) and new business development (strategic partnerships and licensing opportunities).

David was first introduced to Google in 1998 as a partner in the corporate transactions group at Wilson Sonsini Goodrich and Rosati, one of the nation’s leading law firms representing technology businesses. He served as Google’s first outside counsel and worked with Larry Page and Sergey Brin to incorporate the company and secure its initial rounds of financing. During his tenure at Wilson Sonsini, David worked with a wide variety of technology companies to help them manage complex transactions such as mergers, acquisitions and initial public offerings.

David earned his bachelor’s degree in history from Santa Clara University and his JD from Stanford Law School.

Who is Brad Smith?

Brad Smith is Microsoft’s Senior Vice President, General Counsel and Corporate Secretary. He leads the company’s Department of Legal and Corporate Affairs, which is responsible for all legal work and for government, industry and community affairs activities.

Smith has played a leading role at Microsoft on intellectual property, competition law, and other Internet legal and public policy issues. He is also the company’s chief compliance officer. Since becoming general counsel in 2002, he has overseen numerous negotiations with governments and other companies, including Microsoft’s 2002 antitrust settlement with state attorneys general, its 2002 data privacy negotiations with the Federal Trade Commission and European Commission, and agreements to address antitrust or IP issues with Time Warner, Sun Microsystems, RealNetworks, IBM and Novell.

Smith is responsible for Microsoft’s intellectual property work, including all of its IP portfolio, licensing and public policy activities. He has helped spearhead the growth in the company’s patent portfolio and the launch of global campaigns to bring enforcement actions against those engaged in software piracy and counterfeiting and against viruses, spyware and other threats to Internet safety. He is also responsible for the expansion of Microsoft’s citizenship and philanthropic activities, work to revise its contracts to make them more customer-friendly, and the strengthening of legal compliance programs, issuing Standards of Business Conduct for all Microsoft employees and creating an Office of Legal Compliance.

Smith previously worked for five years as Deputy General Counsel for Worldwide Sales, and before that, he spent three years managing the company’s European Law and Corporate Affairs group, based in Paris. Before joining Microsoft, he was a partner at Covington & Burling, having worked in the firm’s Washington, D.C. and London offices and represented a number of companies in the computing industry.

Smith graduated summa cum laude from Princeton University, where he received the Class of 1901 Medal, the Dewitt Clinton Poole Memorial Prize, and the Harold Willis Dodds Achievement Award, the highest award given to a graduating senior at commencement. He was a Harlan Fiske Stone Scholar at the Columbia University School of Law, where he received the David M. Berger Memorial Award. He also studied international law and economics at the Graduate Institute of International Studies in Geneva, Switzerland.

He has written numerous articles regarding international intellectual property and electronic commerce issues, and has served as a lecturer at the Hague Academy of International Law.

More

http://googleblog.blogspot.com/2008/02/yahoo-and-future-of-internet.html
http://www.microsoft.com/presspass/press/2008/feb08/02-03Statement.mspx?rss_fdn=Press%20Releases
http://www.google.com/corporate/execs.html
http://www.microsoft.com/presspass/exec/bradsmith/default.mspx
http://www.techcrunch.com/2008/02/03/google-cries-wolf-on-microsoft-yahoo-deal-irony-comes-up-blank-in-google-search/
http://www.techcrunch.com/2008/02/03/can-google-still-claim-to-be-david-to-microsofts-goliath-no/
 

An online collaboration tool built around Microsoft Excel took $2M, plans for $2M more

eXpresso, an online collaboration tool around Excel spreadsheets, has raised $2M round of financing from Novus and Rocket Ventures. This is on top of another couple of millions they’ve made off the sale of their original product, Smart DB, to Rocket Software (no relation to the VC firm). The money will be put towards expanding their current Excel product and building an online Powerpoint application due out next summer as well. The company has also announced they have plans to raise $2M more at the near future.

Expresso Corp is bringing new capabilities to Microsoft Excel. Using their software users can manage, compare and collaborate on Excel documents – features that Microsoft surprisingly hasn’t added on their own.

eXpresso is built upon AJAX functionality and combines a series of collaboration tools and back-end database wrapped around Microsoft’s own online spreadsheet editor, Microsoft Excel Web Component. The company seems oddly positioned by leaning heavily on Microsoft’s technology, but CEO George Langan points out that they can continue to develop the component without Microsoft’s support, or disturbance, and have a great deal of patented intellectual properties in the database system they run on. On the other side Microsoft has abandoned the technology themselves, announcing an end to development of the Office Web Components. Instead, they are focusing on developing new technologies around Microsoft Sharepoint. So, will Microsoft consider buying them or will just copy/cat their features and functionalities or is Microsoft heading towards different direction and will leave eXpresso behind? Let’s put it that way it has never been good to have your business model built upon and relying on third party company’s technology, service or solution.

However, the spreadsheet editor works smoothly, provides a familiar interface, and brings most of the Excel’s desktop functionality online. You can edit cells, add formulas, sort, filter, and format. Google and Zoho have been aggressively adding a lot of these features themselves, but support auto-fill and charts as well. eXpresso also offers more applications. You can create a new file from within the program or sync one directly from Excel using their plug-in. eXpresso also offers file permissions (down to cell ranges), enables real time chat, and file management (version control, spreadsheet comparison). It’s currently free in beta, but will cost $10 or less per user when it’s finally released.

More about eXpresso

eXpresso is led by an experienced team with decades of collective experience in data management, and enterprise software applications. eXpresso’s team comprises Founders and Corporate Executives who have successfully developed and delivered award-winning business solutions for Fortune 500 companies.

About eXpresso Spreadsheet Communities
Microsoft’s Excel spreadsheet application is one of the most popular on the planet. Millions of people use Excel on a weekly – or even daily – basis for simple personal tasks as well as for enterprise-critical functions such as managing supply chains, reporting corporate finance, or complying with regulatory requirements. eXpresso is a hosted workspace for real-time Excel collaboration in secure, structured communities. eXpresso brings sophisticated spreadsheet version management, comparison and collaboration capabilities to the world’s standard data interchange solution.

What can you do with eXpresso Spreadsheet Communities?

  • Upload, securely store and organize your Excel spreadsheets online
  • Authorize colleagues to view or edit your spreadsheets anytime from anywhere
  • Have a virtual meeting where invitees simultaneously view or edit Excel
  • Take advantage of powerful eXpresso features like group chat, email, alerts, and audit trails
  • Visually compare two or more spreadsheets for cell or formula changes.

eXpresso does compete with other services such as Google Spreadsheets, Zoho Sheet and XCellery. Investors include Individuals Venture Fund, Novus Ventures and Rocket Ventures. As we learned Xcellery has joined eXpresso and here is what the press releases said: “As a startup, Xcellery was committed to finding a better way for people to share and use Excel spreadsheets online. eXpresso has taken that idea to a new level of power and convenience, which is why we can wholeheartedly recommend that Xcellery users adopt eXpresso.”

eXpresso has won a number of industry awards and recognitions. 

eXpresso was honored with InfoWorld’s 2008 Technology of the Year Award: “These Technology of the Year award winners represent the best business process management system, best enterprise service bus, best database middleware, and the best SaaS collaboration and community platforms we tested in 2007.” eXpresso was also among The 2008 PC World 25 Most Innovative Products.
More

http://www.expressocorp.com/
http://blog.expressocorp.com/
http://www.expressocorp.com/download/eXpresso_Second_Round_Funding.pdf
http://www.readwriteweb.com/archives/expresso_web_office.php
http://www.infoworld.com/slideshow/2008/01/144-2008_technology-5.html
http://blogs.msdn.com/excel/archive/2006/07/17/668544.aspx
http://blog.expressocorp.com/2008/01/28/expresso-and-microsoft-office-web-components/
http://www.techcrunch.com/2007/10/12/expresso-gets-2-million-to-grow-an-online-office-suite/
http://www.crunchbase.com/company/expresso
http://www.pcworld.com/article/id,140663-c,technology/article.html
http://www.paloaltodailynews.com/article/2008-1-7-expresso
http://www.sltrib.com/technology/ci_7907885
http://blogs.computerworld.com/share_excel_files_saas_style
http://www.expressocorp.com/download/XcelleryPressRelease.pdf

Is Google going to be the winner from the Microsoft-Yahoo deal?

Over the past a couple of days all the major media outlets are full with news, analyses, reports, commentaries and researches on the potential deal between Microsoft and Yahoo! trying to figure out the benefits or the potential pitfalls the deal would eventually face.

We’ve read a lot and we’d like here to summarize the pluses and minuses of this potential deal.

Potential pitfalls, disadvantages and overall minuses

Different cultures of the two companies – there will be the challenge of integrating two very different companies, with clashing cultures and business philosophies. At Microsoft, the operating system has always been priority number one, while Yahoo’s vision is all things Internet.

Even combined the new entity is going to have less than the half of the searches Google enjoys.

  • Google Sites: 37.1 billion (5 billion at YouTube)
  • Yahoo Sites: 8.5 billion
  • Baidu.com: 3.3 billion
  • Microsoft Sites: 2.2 billion

So the deal would do little to nothing to address the fundamental problem faced by both companies: finding a way to effectively compete with Google and its growing dominance of the Web.

The combined number of employees would be in the 90,000 range and potential layoffs can be overseen.

The reach of Microsoft and Yahoo! combined is going to be bigger than Google’s but unless the new entity figures out how to more effectively monetize its traffic they are not going to make any impact on Google’s advertising business. Google’s AdSense is still paying most to web publishers compared to other advertising networks, which tells us that Google earns more off its traffic and reach than any other ad network out there.  

Despite Microsoft’s intention to offer significant retention packages to Yahoo’s engineers, key leaders and employees across all disciplines we think Yahoo’s most talented employees will take the money from their suddenly valuable stock options and run. It is clear they aren’t going to get rich working for Microsoft, whose stock has gone up an average of 6.6 percent a year over the last five years.

If this deal happen Yahoo’s shareholders can been seen in a better position compared to Microsoft’s. They would finally get a reasonably happy ending to their long nightmare of waiting for Yahoo management to come up with a viable strategy to repel the Google assault. Other than announcing a thousand job cuts this week, Yahoo co-founder and Chief Executive Jerry Yang has given no sign that he has any better ideas for turning around the struggling company than Terry Semel, who resigned in disgrace in June 2007.

There are many questions to be addressed; some of them are included below.

  • Live search or Yahoo search?
  • Live mail or Yahoo mail?
  • Live messenger or Yahoo messenger?
  • Live spaces, Yahoo 360 or Facebook (Microsoft owns less than 2% in Facebook)?
  • MSN Dating (Match) or Yahoo personal?
  • Microsoft’s AdCenter or Yahoo’s Panama advertising platform?
  • .Net or java?
  • Live ID or Open ID?

None of the above seems to be having any synergies. Most of them are already well established brands while others are taking quite different approaches by using and relying on different technological standards. There is clearly huge dilemma if Microsoft keeps the different brands alive, it will surely confuse customers and reduce synergies. If it kills one or another, it will throw away a lot of expensively built real Web properties.

Microsoft and Yahoo would eventually waste a couple of years jumping through antitrust hoops and figuring out how to integrate their companies. During all that time Google will continue to adding more business and consumer Web services and leverage its dominance of search advertising into yet more advertising niches.

Google is already aggressively entering into the mobile space, striking deals around the globe to get prominent positioning with certain carriers and promoting an open handset design. The company is even bidding billions of dollars to buy a chunk of U.S. wireless spectrum that it could use to launch its own mobile voice and data service.

Potential synergies, advantages and overall pluses

Under no doubt the biggest advantage oversee by the Microsoft’s people is the Internet traffic/reach the combined entity is going to have – it is clearly going to be much larger than Google’s. This is what Steve Ballmer called the eyeballs and is going to be used to strengthen their advertising strategy. According to HitWise the combined traffic reach of Yahoo! and MSN web properties is going to be 15.6% of the entire Internet traffic in the U.S., compared to only 7.7% for Google’s web properties yet Google still has double the market share in search of both Yahoo and Microsoft combined.

Microsoft says it can shave at least $1 billion from operating expenses in a merged company.

The combined revenues of the two companies would be about $65B while the net profit is expected to be in the $17.5B range compared to only $4.2B for Google.

The companied company would achieve around 32% market share from the US search market.

Another advantage is that Yahoo still sports the best consumer Web portal, My Yahoo, with tens of millions of loyal users while Microsoft’s Windows operating system runs nine out of 10 desktop computers on the planet and a considerable portion of the Internet is powered by servers of the company.

In theory, Microsoft might integrate the best services from each company, from Yahoo’s Flickr photo sharing to Microsoft’s Office applications, to provide an appealing PC-and-Internet platform for customers. The technical challenges would be enormous, but the payoff could be huge.

Today Microsoft has over $300B market capitalization while Yahoo!’s has climbed close to $30B so the combined entity would potentially have a market capitalization twice bigger than Google’s, which is a little more than $175B today.

Potential competitive bidders showing up on the horizon

Aside everything else being mentioned above the acquisition deal is not for sure yet. Multiple sources are reporting counter offers are in preparation by competitive bidders trying to snatch Yahoo! before Microsoft does it. One thing is for sure we can easily exclude Google from the list of potential bidders for Yahoo!. On the conference call explaining the deal, Microsoft general counsel Brad Smith pointed out that, while other companies may make competing bids for Yahoo, one company that clearly can’t is Google. Citing a 75 percent market share in the paid-search advertising market worldwide, Ballmer asserts, “Google is prevented by antitrust laws from buying Yahoo.”

One of the rumor is that a big private equity firm from New York is going to enter the bidding war for Yahoo!.

Another potential bidder being rumored on a few blogs is the New York-based Quadrangle Partners. Yahoo’s former president, Dan Rosensweig recently joined the firm to open the Silicon Valley office and Quadrangle also has deep media expertise. Yahoo! is after all more like a major media company with Internet nuance rather than pure technology company like, for example, Google.

Other sources are reporting that News Corp is also frantically trying to put together a competing bid, with the help of private equity firms. This makes sense, given News Corp’s previous interest in trading MySpace for a big Yahoo equity stake. News Corp can’t afford to do the whole deal, but it could certainly provide some funding in exchange for some equity.

So to conclude, the minuses, obstacles and the disadvantages seem to be more than what the pluses are expected to be. So if ever a deal goes through it is not very clear what the benefits for both Microsoft and Yahoo! would be and if ever there is going to be a winner from this deal Google, ironically, might be the one at the end of the day.

You can read more over here…

More

http://www.techmeme.com/080201/p78#a080201p78
http://www.mercurynews.com/ci_8149194
http://www.businessweek.com/technology/content/feb2008/tc2008021_885192.htm?chan=rss_topStories_ssi_5
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/02/AR2008020200568.html
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/02/MN8OUQGNB.DTL&type=tech
http://kara.allthingsd.com/20080201/microsoft-to-yahoo-two-days-to-respond-or-else/
http://www.alleyinsider.com/2008/02/hold-everything-we-may-get-another-yhoo-bidder.html
http://www.techcrunch.com/2008/02/01/what-would-a-combined-microsoft-yahoo-look-like/
http://www.techcrunch.com/2008/02/01/ballmers-internal-e-mail-to-the-troops-explaining-the-yahoo-acquisition/
http://www.techcrunch.com/2008/02/02/news-corp-scrambles-to-bid-for-yahoo/
http://www.alleyinsider.com/2008/02/microsoft-yahoo-combined-financials.html

Yes, we were right Yahoo was seriously undervalued; Microsoft offers $44.6B for the company, a 62% premium over their value from yesterday

When a few days ago we conducted an in-depth research on Web and ran an analysis based on the information collected we came up to the logical conclusion that Yahoo! was seriously undervalued company. Today Microsoft proved us right by offering $44.6B for Yahoo!, which represents a 62% premium on Thursday’s closing price. All major media are reporting on the deal.

In our post a few days ago we were speculating that Alibaba lost $13B from its market cap in just one month, yet the company’s market value was close to 50% from what Yahoo!’s value then was (~$26B).

Yahoo! is known to own 39% in Alibaba Group. Alibaba Group holds a 75% stake in Alibaba.com, which was worth $17.4 billion. Yahoo owns 39% of Alibaba Group, which puts the value of their share at $6.8 billion. Yahoo! has also bought around 1.2% stake in Alibaba.com by paying $100M so the direct-owned 1.2% stake was worth about $278 million. That puts the total value of Yahoo’s interest in Alibaba.com at north of $7 billion. That was then about 16.7% of Yahoo’s then $42 billion valuation.

The big question then was whether Alibaba.com is overvalued or Yahoo! is undervalued? One should take into serious consideration the fact that Yahoo! is making more than $6B in revenues per year while Alibaba.com is having, as far as we know, no more than $150M in annual revenues. A quick online research revelead that Alibaba had GAAP Revenue of around $46.3M for 2004 while the company’s revenue in the first half of 2006 was about $100 million (presumingly $200M for the entire 2006). For the first 6 months of 2007 Alibaba had revenue of RMB957.7M (~$132MM) (presuming $260M for the entire 2007). The numbers showed big difference, no? Anyway, today we are already pretty sure we were right the other day and it is obvious today that Yahoo! was seriously undervalued and was a good buy.

Microsoft Corp. made an unsolicited $44.6 billion cash and stock bid for Yahoo on Friday, a deal which could shake up the competitive and lucrative market for Internet search. The deal would pay Yahoo shareholders $31 a share, which represents a 62% premium from where Yahoo stock closed on Thursday.  Steve Ballmer, Microsoft’s chief executive, called the move the “next major milestone” for the software giant. “We are very, very confident this is the right path for Microsoft and for Yahoo,” he said. Ballmer, saying that Microsoft has been in “off and on” talks with Yahoo for 18 months, said he called Yahoo CEO Jerry Yang Thursday night to tell him about the bid.

Microsoft made the bid early Friday. In a statement, the company said the offer allows Yahoo shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock, with the software giant’s offer consisting of one-half cash and one-half Microsoft common stock.

Shares of Yahoo (YHOO, Fortune 500) shot up nearly 60% in pre-market trading on the news, while shares of Dow component Microsoft (MSFT, Fortune 500) went down 5%. In a statement, Yahoo acknowledged receipt of the offer and said its board would evaluate the proposal “carefully and promptly.”

Michael Arrington from Techcrunch has also predicted a couple of days ago in his appearance on Fox Business that Yahoo could face a takeover by Microsoft as part of an ad play, and he was right too.

Two other events hit Yahoo over the past week on Thursday, former Yahoo Chief Terry Semel, who opposed an earlier approach made by Microsoft last year, resigned from the Yahoo’s board. In another announcement Yahoo said it would lay off 1,000 employees by mid-February. Yahoo also reported lower fourth-quarter earnings that still beat Wall Street’s now modest expectations for the firm, but it gave a 2008 revenue forecast that disappointed analysts.

Microsoft also said it projects the online advertising market to grow from over $40 billion in 2007 to nearly $80 billion by 2010 and in other news we have read advertising is the key element from the deal as proposed. Regardless Google’s recent problems and the fact they have lost 24% of its market capitalization since November 2007, the company is still leader on the online advertising market and a potential deal between Microsoft and Yahoo! would for sure strengthen their position in the battle for the online leadership with Google. The investors will no doubt be pressing the line that the combined bulk of the Yahoo! flagship website and MSN, Microsoft’s web division, will create – in terms of advertising inventory at least – a counter to Google’s dominance.  Google already controls nearly 60 percent of the U.S. search market, and has been widening its lead, despite concerted efforts by both second-place Yahoo and third-place Microsoft. By combining, Microsoft and Yahoo would have a 33 percent share of the U.S. search market, according to the latest data from comScore Media Metrix. But the idea is it eventually surge ahead of Google in terms of the eyeballs attracted to the combined web sites. The combined internet properties will have reach of at least 700M/800M people online per month but possible overlap of the real uniques can be expected.

According to comScore the current search numbers are as follows:

  • Google Sites: 37.1 billion (5 billion at YouTube)
  • Yahoo Sites: 8.5 billion
  • Baidu.com: 3.3 billion
  • Microsoft Sites: 2.2 billion

The thing is, Microsoft and Yahoo! have both known this for years and have been falling over themselves to create – or buy – their own advertising technologies that can compete with Google’s. That’s why Microsoft bought aQuantive and Yahoo! has spent furiously on the development of Panama, a rival new advertising platform aside buying a number of other advertising companies like RightMedia and BlueLithium. It’s also part of the reason it’s hard to see any synergies between Microsoft and Yahoo! with their rival proprietary technologies and bolt-on acquisitions. Doubts also abound on whether the two companies would do well together in terms of culture.

Other experts have expressed concerns that Microsoft’s audacious bid for Yahoo reveals the extent to which the Seattle giant has failed to adapt to the Internet age.

On the other side when Yahoo! was created by Jerry Yang and David Filo in 1994, Microsoft was already 21 years old and the largest software developer in the world and indeed Yang by that time was known to go against Microsoft’s technologies and clearly disliking them.

Other questions that have popped up publicly are as follows, including but not limited to.

  • Live search or Yahoo search?
  • Live mail or Yahoo mail?
  • Live messenger or Yahoo messenger?
  • Live spaces, Yahoo 360 or Facebook?
  • MSN Dating (Match) or Yahoo personal?
  • Microsoft’s AdCenter or Yahoo’s Panama advertising platform?
  • .Net or java?
  • Live ID or Open ID?
  • Anyone else?

Microsoft publicly disclosed its cash-and-stock offer in hopes of rallying support from Yahoo’s shareholders, making it more difficult for Yahoo’s board to turn down the bid.

Below is enclosed the entire email as it was sent from Microsoft’s Steven Ballmer to Yahoo’s board of directors and to Jerry Yang. It somehow made the public and appeared on multiple news sources and blogs.  

January 31, 2008

Board of Directors
Yahoo! Inc.
701 First Avenue
Sunnyvale, CA 94089
Attention: Roy Bostock, Chairman
Attention: Jerry Yang, Chief Executive Officer

Dear Members of the Board:

I am writing on behalf of the Board of Directors of Microsoft to make a proposal for a business combination of Microsoft and Yahoo!. Under our proposal, Microsoft would acquire all of the outstanding shares of Yahoo! common stock for per share consideration of $31 based on Microsoft’s closing share price on January 31, 2008, payable in the form of $31 in cash or 0.9509 of a share of Microsoft common stock. Microsoft would provide each Yahoo! shareholder with the ability to choose whether to receive the consideration in cash or Microsoft common stock, subject to pro-ration so that in the aggregate one-half of the Yahoo! common shares will be exchanged for shares of Microsoft common stock and one-half of the Yahoo! common shares will be converted into the right to receive cash. Our proposal is not subject to any financing condition.

Our proposal represents a 62% premium above the closing price of Yahoo! common stock of $19.18 on January 31, 2008. The implied premium for the operating assets of the company clearly is considerably greater when adjusted for the minority, non-controlled assets and cash. By whatever financial measure you use – EBITDA, free cash flow, operating cash flow, net income, or analyst target prices – this proposal represents a compelling value realization event for your shareholders.

We believe that Microsoft common stock represents a very attractive investment opportunity for Yahoo!’s shareholders. Microsoft has generated revenue growth of 15%, earnings growth of 26%, and a return on equity of 35% on average for the last three years. Microsoft’s share price has generated shareholder returns of 8% during the last one year period and 28% during the last three year period, significantly outperforming the S&P 500. It is our view that Microsoft has significant potential upside given the continued solid growth in our core businesses, the recent launch of Windows Vista, and other strategic initiatives.

Microsoft’s consistent belief has been that the combination of Microsoft and Yahoo! clearly represents the best way to deliver maximum value to our respective shareholders, as well as create a more efficient and competitive company that would provide greater value and service to our customers. In late 2006 and early 2007, we jointly explored a broad range of ways in which our two companies might work together. These discussions were based on a vision that the online businesses of Microsoft and Yahoo! should be aligned in some way to create a more effective competitor in the online marketplace. We discussed a number of alternatives ranging from commercial partnerships to a merger proposal, which you rejected. While a commercial partnership may have made sense at one time, Microsoft believes that the only alternative now is the combination of Microsoft and Yahoo! that we are proposing.

In February 2007, I received a letter from your Chairman indicating the view of the Yahoo! Board that “now is not the right time from the perspective of our shareholders to enter into discussions regarding an acquisition transaction.” According to that letter, the principal reason for this view was the Yahoo! Board’s confidence in the “potential upside” if management successfully executed on a reformulated strategy based on certain operational initiatives, such as Project Panama, and a significant organizational realignment. A year has gone by, and the competitive situation has not improved.

While online advertising growth continues, there are significant benefits of scale in advertising platform economics, in capital costs for search index build-out, and in research and development, making this a time of industry consolidation and convergence. Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo! can offer a credible alternative for consumers, advertisers, and publishers. Synergies of this combination fall into four areas:

Scale economics: This combination enables synergies related to scale economics of the advertising platform where today there is only one competitor at scale. This includes synergies across both search and non-search related advertising that will strengthen the value proposition to both advertisers and publishers. Additionally, the combination allows us to consolidate capital spending.

Expanded R&D capacity: The combined talent of our engineering resources can be focused on R&D priorities such as a single search index and single advertising platform. Together we can unleash new levels of innovation, delivering enhanced user experiences, breakthroughs in search, and new advertising platform capabilities. Many of these breakthroughs are a function of an engineering scale that today neither of our companies has on its own.

Operational efficiencies: Eliminating redundant infrastructure and duplicative operating costs will improve the financial performance of the combined entity.

Emerging user experiences: Our combined ability to focus engineering resources that drive innovation in emerging scenarios such as video, mobile services, online commerce, social media, and social platforms is greatly enhanced.

We would value the opportunity to further discuss with you how to optimize the integration of our respective businesses to create a leading global technology company with exceptional display and search advertising capabilities. You should also be aware that we intend to offer significant retention packages to your engineers, key leaders and employees across all disciplines.

We have dedicated considerable time and resources to an analysis of a potential transaction and are confident that the combination will receive all necessary regulatory approvals. We look forward to discussing this with you, and both our internal legal team and outside counsel are available to meet with your counsel at their earliest convenience.

Our proposal is subject to the negotiation of a definitive merger agreement and our having the opportunity to conduct certain limited and confirmatory due diligence. In addition, because a portion of the aggregate merger consideration would consist of Microsoft common stock, we would provide Yahoo! the opportunity to conduct appropriate limited due diligence with respect to Microsoft. We are prepared to deliver a draft merger agreement to you and begin discussions immediately.

In light of the significance of this proposal to your shareholders and ours, as well as the potential for selective disclosures, our intention is to publicly release the text of this letter tomorrow morning.

Due to the importance of these discussions and the value represented by our proposal, we expect the Yahoo! Board to engage in a full review of our proposal. My leadership team and I would be happy to make ourselves available to meet with you and your Board at your earliest convenience. Depending on the nature of your response, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.

We believe this proposal represents a unique opportunity to create significant value for Yahoo!’s shareholders and employees, and the combined company will be better positioned to provide an enhanced value proposition to users and advertisers. We hope that you and your Board share our enthusiasm, and we look forward to a prompt and favorable reply.

Sincerely yours,

/s/ Steven A. Ballmer

Steven A. Ballmer

Chief Executive Officer

Microsoft Corporation

Big question here is will the anti trust authorities in US and the EU’s ones allow this to happen. Microsoft has previously shown, not only once, an interest in Yahoo, with reports in May 2007 saying that Microsoft had approached Yahoo about a friendly takeover, rumored to have offered $50B by that time. Some other sources go even further down to offers dated from 2006, according to the CNet article. Mediapost.com has some perspective on the deal from the point of view of ads and eyeballs. Such an acquisition, which would be Microsoft’s largest by far — it bought aQuantive last year for $6 billion — would, as we mention above, need approval by US and EU authorities. A European Commission spokesman declined to comment to Reuters. There’s also a conference call at 8:30am EST where more details will be publicly reveled.
Really more

http://www.yahoo.com/
http://finance.yahoo.com/q?s=YHOO
http://finance.yahoo.com/q?s=msft
http://www.microsoft.com/en/us/default.aspx
http://money.cnn.com/2008/02/01/technology/microsoft_yahoo/?postversion=2008020108
http://biz.yahoo.com/ap/080201/microsoft_yahoo.html?.v=22
http://www.bloomberg.com/apps/news?pid=20601103&sid=asbqLJQTL8eI&refer=us
http://www.bbc.co.uk/blogs/technology/2008/02/microsoft_and_yahoo_perfect_pa.html
http://www.techcrunch.com/2008/02/01/wow-microsoft-offers-446-billion-to-acquire-yahoo/
http://www.techcrunch.com/2008/01/30/lets-trash-yahoo-during-happy-hour/
http://afp.google.com/article/ALeqM5htQYlMQMYqZmuCMJwt514rqKceVw
http://www.techcrunch.com/2007/05/04/microsoft-pursues-yahoo-takeover/
http://uk.techcrunch.com/2008/02/01/if-microsoft-buys-yahoo-what-does-it-mean-for-europe/
http://www.mercurynews.com/localnewsheadlines/ci_8137285
http://www.foxbusiness.com/markets/article/futures-jump-microsoft2fyahoo-bid_461090_2.html
http://in.reuters.com/article/businessNews/idINIndia-31718720080201
http://www.forbes.com/markets/feeds/afx/2008/02/01/afx4602885.html
http://www.marketwatch.com/news/story/microsoft-offers-446-bln-yahoo/story.aspx?guid=035B5DA4-6DDD-44A9-95D6-2EFF58F6EB04&dist=SecMostRead
http://technology.timesonline.co.uk/tol/business/industry_sectors/technology/article3289188.ece
http://slashdot.org/article.pl?no_d2=1&sid=08/02/01/1353211
http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticleHomePage&art_aid=75612
http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSBRU00628720080201
http://online.wsj.com/article/SB120186587368234937.html?mod=yahoo_hs&ru=yahoo
http://www.bigmouthmedia.com/live/articles/semel-steps-down-from-yahoo-board-of-directors.asp/4401/
http://www.nytimes.com/2008/02/01/technology/01cnd-subyahoo.html?em&ex=1202014800&en=ce4ce395e1c80eb4&ei=5087%0A
http://www.guardian.co.uk/media/2008/jan/31/yahoo.digitalmedia
http://www.ft.com/cms/s/7b2043ba-cf68-11dc-854a-0000779fd2ac.html
http://news.zdnet.co.uk/internet/0,1000000097,39292572,00.htm
http://en.wikipedia.org/wiki/Steve_Ballmer
http://news.tigerdirect.com/2008/02/01/microsoft-proposes-acquisition-of-yahoo-for-31-per-share/
http://www.fierceiptv.com/story/microsoft-bids-45-billion-yahoo/2008-02-01?utm_medium=rss&utm_source=rss
http://blog.edge.be/uncategorized/microsoft-koopt-yahoo
http://jimstroud.com/2008/02/01/microsoft-bids-4500000000000-for-yahoo/
http://www.pixelapes.com/2008/02/01/breaking-news-microsoft-offer-to-buy-yahoo/
http://gigaom.com/2008/02/01/dear-yahoo-i-pwn-you-xo-microsoft/
http://www.burlingtonfreepress.com/apps/pbcs.dll/article?AID=/20080201/NEWS/80201015/-1/rss
http://dondodge.typepad.com/the_next_big_thing/2008/02/microsoft-propo.html
http://blogs.reuters.com/mediafile/2008/02/01/microsoft-hands-off-my-yahoo/
http://thenextweb.org/2008/02/01/microsoft-offers-446-billion-for-yahoo-why-yahoo-will-accept/
http://sandeepvenu.wordpress.com/2008/02/01/microsoft-offers-to-buy-yahoo-for-446-bln/
http://www.buzzmachine.com/2008/02/01/microsoft-yahoo-the-deal-of-the-dinos/
http://domainnamewire.com/2008/02/01/what-would-microsoft-yahoo-mean-for-domainers/
http://www.istartedsomething.com/20080202/microsoft-yahoo-big-mess-comparison/
http://blog.searchenginewatch.com/blog/080201-100256
http://www.gadgetell.com/tech/comment/microsoft-offers-to-acquire-yahoo-for-446-billion-dollars/
http://www.seobook.com/what-microsoft-acquisition-yahoo-means-webmasters-web-publishers
http://www.paidcontent.co.uk/entry/419-microsoft-makes-446-billion-cash-and-stock-bid-for-yahoo-62-percent-pre/
http://webworkerdaily.com/2008/02/01/microsoft-offers-to-buy-ailing-yahoo-for-446-billion/

The Washington Post Company acquired CourseAdvisor.com

The Washington Post Company (NYSE: WPO) has acquired the education site CourseAdvisor.com, which is an online lead generator serving the education industry. However, the financial details and terms of the acquisition were not disclosed.

The Wakefield, MA.-based company matches up students with suitable degree or certificate-granting programs across 800 institutions. CourseAdvisor founder and CEO Greg Titus was formerly the head of online education firm Acadient. The Washington Post Company is also the owner of education services firm Kaplan, which is an educational prep service and hence the synergy to justify the acquisition. Kaplan is already among those institutions listed as a potential for match using CourseAdvisor’s search wizard.

The company is known to have raised $12 million investment, which was the company’s first institutional round of financing. The investment was led by ABS Capital Partners, a leading private equity firm focused on investing in established and profitable growth companies, and The Washington Post Company. The money was then said to be used to fund the Company’s continued rapid growth by increasing investment in its sales force and strengthening its balance sheet. As a result of the financing, Deric Emry, a General Partner at ABS Capital, joined CourseAdvisor’s Board of Directors. Ralph Terkowitz, also a General Partner at ABS Capital and Caroline Little, chief executive officer and publisher of Washingtonpost.Newsweek Interactive (WPNI), will serve as observers on the Company’s Board of Directors.

The company was founded in 2004 and is basically an online research directory for postsecondary education, career training, and professional development. We offer more than 7,000 programs through nearly 500 accredited colleges, career schools, training centers, and universities.

With over 1.5 million unique visitors per month, CourseAdvisor has become a leading online education directory (OED). The Company has significant technological advantages which enable it to manage complex search campaigns to source high quality leads. Since all site visits are generated from paid and organic search, each visitor is actively seeking information about colleges, universities and career and professional training. In addition, the Company’s advanced technology platform with superior filtering capabilities offers student profiling, geo-targeting and multi-stage data verification to maximize lead quality for CourseAdvisor’s customers.

Search CourseAdvisor for:

  • Online and Campus Degrees
  • Professional Diploma and Certificate Programs
  • Nursing and Allied Health Schools
  • IT Training
  • Business Degrees
  • Online Master’s in Education
  • Criminal Justice and Homeland Security

The CourseAdvisor Approach
CourseAdvisor’s objective is to be a useful, effective resource for furthering your education and enriching your life. We work hard to make researching higher education easy. Our guided search Wizard finds only those programs that meet your interests, requirements, and qualifications. The basic information you provide helps us connect you with the schools that can best serve you.

Our unique advantage is our team of education, technology, social sciences, and Internet experts. We continually research career fields and employment trends and actively seek out schools that offer exciting new programs in the fastest-growing fields.

We also develop our own custom search technologies to help you find the best opportunities in your chosen career. More than 2 million students visit CourseAdvisor every month! Think of CourseAdvisor as a search engine that runs in both directions… we make it easier for students and schools to find each other.

CourseAdvisor is located in Wakefield, Massachusetts and is now an independent subsidiary of The Washington Post Company since October 11, 2007.

CourseAdvisor.com claims it attracts over 1.5 million unique visitors per month, but a quick look into Quantcast reveals much better numbers – Courseadvisor.com is a top 1,000 site that reaches over 2.8 million U.S. monthly uniques.

The market

Competitors include GlobalScholar, SmartThinking, Tutor.com, and TutorVista.

GlobalScholar, by the way, has today announced a $27 million B Round from existing investors Ignition Partners and Knowledge Universe Education. This is on top of a previously undisclosed $15.5 million A Round the company raised early last year. Board members include Ignition’s Brad Silverberg and former Drugstore.com CEO Peter Neupert.

In conjunction with the investment round, GlobalScholar is also announcing that it has acquired Excelsior Software for an undisclosed amount (although it was less than half the total money raised). Excelsior makes student assessment software used by teachers in 1,000 school districts nationwide. GlobalScholar said it will be adding the Excelsior’s business to its existing Web-based tutoring platform, which it launched quietly last fall.

About ABS Capital Partners

ABS Capital Partners is a private equity firm that was founded in 1990 to invest in mid- to later-stage growth companies in order to create significant, market-leading companies. The firm’s investment strategy focuses on companies in the business services, health care, technology and media & communications sectors. ABS partners with strong management teams to help build businesses with substantial revenues, near-term profitability and solid customer bases. The firm has created long-term value for management and investors. ABS leverages over 100 years of combined investing and operating experience among its partners and provides a range of investment structures, including expansion financing, management buyouts and recapitalizations. With an extensive history and knowledge of equity and mergers & acquisitions markets, ABS Capital provides strategic guidance and helps companies to capitalize on their business opportunities. ABS has $1.5 billion under management and nine investing partners within offices in Baltimore, San Francisco and Boston. Over the past fifteen years, ABS has invested in over 70 portfolio companies, including American Public Education, Inc., DoubleClick, Inc., NeuStar, Inc., Rosetta Stone, Inc. and Vibrant Media, Inc..

About the Washington Post Company

The Washington Post Company (NYSE:WPO) is a diversified education and media company whose principal operations include educational and career services, newspaper and magazine publishing, television broadcasting, cable television systems and electronic information services. The Company owns The Washington Post; Washingtonpost.Newsweek Interactive (WPNI), the online publishing subsidiary whose flagship products include washingtonpost.com, Newsweek.com, Slate, BudgetTravel.com and Sprig.com; Express; El Tiempo Latino; The Gazette and Southern Maryland newspapers; The Herald (Everett, WA); Newsweek magazine; Post-Newsweek Stations (Detroit, Houston, Miami, Orlando, San Antonio and Jacksonville); Cable ONE, serving subscribers in midwestern, western and southern states; and CourseAdvisor, an online lead generation provider. The Company also owns Kaplan, Inc., a leading international provider of educational and career services for individuals, schools and businesses. The Company has an ownership interests in the Los Angeles Times-Washington Post News Service and Bowater Mersey Paper Company.

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http://courseadvisor.com/
http://www.washingtonpost.com/
http://www.paidcontent.org/entry/419-washington-post-acquires-lead-generator-courseadvisorcom/
http://corporate.courseadvisor.com/archive/press_11_06.php
http://mashable.com/2007/10/11/washington-post-courseadvisor/
http://www.abscapital.com
http://www.techcrunch.com/2008/01/30/globalscholar-raises-27-million-b-round-to-tackle-online-education/
http://www.nytimes.com/2008/01/31/fashion/31CYBER.html?ex=1359522000&en=7e55fe77d4377379&ei=5124&partner=permalink&exprod=permalink
http://www.washpostco.com/company-profile.htm
http://finance.google.com/finance?q=NYSE:WPO

The Founders Fund creates Founders Fund II

Founders Fund, a non-traditional investment group, has raised an institutional fund in the amount of $220 million. The new fund, Founders Fund II, will allow this team of four managing partners, who themselves are founders and entrepreneurs, to leverage their individual expertise and deliver their unique business model, which puts the entrepreneurs first. Founders Fund has developed a comprehensive package designed to create near perfect alignment of interests between founders and their investors.

Founders Fund II will be invested in approximately 15-20 innovative early-stage start-up companies. This is the first institutional money raised for the Founders Fund, representing a significant increase over the original fund of $50 million, which was raised from personal investments by the managing partners and select outside investors.

San Francisco based Founders Fund launched in 2005 with a $50 million venture fund. They’ve had two liquidity events since then, and a number of other very high profile participations like Facebook, Powerset, Ooma, Quantcast, Slide, Geni and Causes.

“We believe entrepreneurs are looking for people like themselves, people who also have taken ideas and made them a reality. This second fund allows us to invest in areas for which we have deep insight, personal experience and passion for seeing the companies succeed,” said Luke Nosek, a Founders Fund managing partner. “Our collective experience starting companies and funding innovative start-ups positions the Founders Fund as a unique, valuable resource at the early investment stage.”

The Founders Fund will continue to offer Series FF stock, which is being adopted across the industry adding to the unique approach to funding entrepreneurs. The stock is offered to start-up founders who can convert Series FF stock to preferred stock during subsequent rounds of funding. This allows Series FF stock holders to sell a portion of their stock and aligns their interests with their investors.

“The traditional venture capital model is broken,” said Sean Parker, a Founders Fund managing partner. “By offering tools like the Series FF stock, we are helping create a new model of investment and alignment of interests, confirming our commitment to the founders of our companies. This fund is truly for founders by founders.”

A couple of investments have been made out of the new fund, they say, but have not yet been disclosed.

The four managing partners have all started their own companies and between them have seen the process from inception to start up to IPO.

“Founders Fund was started to make a difference for companies looking for funding to execute on their big ideas. We believe the alignment of interests with our portfolio companies is the next step in the evolution of collaborative investments,” said Ken Howery, a Founders Fund managing partner. “Founders Fund II will give us the opportunity to continue to invest in the people and ideas that are truly bringing innovation to the Internet industry.”

Peter Thiel, one of four managing partners for The Founders Fund and an early backer and board member of the social network Facebook said, “This is one of the most innovative venture teams ever assembled. Our unique skill set, expertise and perspective support our shared desire to build and invest in great companies from the ground up.”

Parker says he learned a powerful lesson about the importance of taking time to build a business from observing the trajectories of some of the valley’s most successful businesses. What would have happened if the founders had sold those companies before fine-tuning them? PayPal started out as an encryption product that beamed money between mobile devices before hitting on the online payment business that it ultimately sold to eBay for $1.5 billion. Google didn’t strike Internet ore until the paid search market had time to fully develop.

“Largely because we were all founders ourselves, we’re inherently more interested in helping new entrepreneurs develop into successful leaders than we are in getting rich,” Parker said. “As someone who has started and run a few companies myself, my primary interest is in helping creative people build companies and run those companies over the long-term. I also happen to believe that this is the best way to create value for my limited partners, and by extension, for myself.”

However, some institutional investors were skeptical of the partners and passed on the opportunity to put in money. Parker confirmed that the fund-raising process turned out to be more time consuming than the firm had expected. But he also said limited partners had invested because their model — namely, a venture firm run by founders with experience — was needed in the industry. The firm originally sought to raise $150 million, but ended up raising $220 million.

More about The Founders Fund

Based in San Francisco, Calif. and founded in 2005, Founders Fund is a group of four proven entrepreneurs with a shared vision: to change the way venture investments are made. Founders Fund seeks to provide the capital, insights and support required to build a company from the ground up and sustain successful enterprises with a non-traditional, founder-focused approach. Their current portfolio includes Facebook, Geni, Powerset, Ooma, Quantcast, Slide and others.

The Managing Partners

Peter Thiel
Peter’s experience with venture finance began in the 1990s, when he ran Thiel Capital Management, a Menlo Park-based hedge fund that also made private equity investments. In 1998, Peter co-founded PayPal and served as its Chairman and CEO until the company’s sale to eBay in October 2002 for $1.5 billion. Peter’s experience in finance includes managing a successful hedge fund, trading derivatives at CS Financial Products, and practicing securities law at Sullivan & Cromwell. Peter sits on the Board of Directors of the Pacific Research Institute and on the Board of Visitors of Stanford Law School. Peter received his BA in Philosophy and his JD from Stanford.

Peter Thiel is a 39-year-old maverick money manager who in the past four years has turned his $60 million payout from the sale of the PayPal online payment service he co-founded into a growing financial fiefdom. He runs Clarium Capital Management LLC, one of the nation’s most successful and daring hedge funds with $3 billion in assets, and The Founders Fund, a tiny but increasingly influential venture capital firm with a laser-beam focus on consumer Internet startups.

In late 2004, Peter Thiel made a $500,000 angel investment in Facebook. Microsoft recently purchased 1.6 percent of the company for $240 million, which values Facebook at roughly $15 billion and Thiel’s stake at roughly $1 billion.

Ken Howery
Ken is a co-founder of PayPal and served as the company’s first CFO. While at PayPal, Ken helped raise over $200 million in private financing, worked on the company’s public offerings, and assisted in the company’s $1.5 billion sale to eBay. Ken has also been a member of the research and trading teams at Clarium Capital Management, a global macro hedge fund based in San Francisco with over $3 billion under management, and at Thiel Capital Management, a multistrategy investment fund, where Ken made venture investments beginning in 1998. Ken received a BA in Economics from Stanford.

Luke Nosek
Luke Nosek is a co-founder of PayPal and served as the company’s Vice President of Marketing and Strategy. While at PayPal, Luke oversaw the company’s marketing efforts at launch, growing the user base to 1 million customers in the first six months. Luke also created “Instant Transfer,” PayPal’s most profitable product. Prior to PayPal, Luke was an evangelist at Netscape. Luke has also co-founded two other consumer Internet companies, including the web’s first advertising network, and has made a number of venture investments since 2000. Luke received a B.S. in Computer Science from the University of Illinois, Urbana-Champaign.

Sean Parker
Sean Parker is the co-founder and Chairman of “Project Agape,” a new network that aims to enable large-scale political and social activism on the Internet. Previously, Sean was the co-founder of the category defining Web ventures Napster, Plaxo, and Facebook. At Napster, Sean helped to design the Napster client software and led the company’s initial financing and strategy. Under Sean’s leadership, Napster became the fastest adopted client software application in history. Following Napster, Sean co-founded and served as President of Plaxo, where he pioneered the viral engineering techniques used to deploy Plaxo’s flagship smart address book product, ultimately acquiring more than 15 million users. In 2004, Sean left Plaxo to become the founding President of Facebook, one of the most rapidly growing sites on the Internet today. Sean sits on the boards of several private companies.

More

http://www.foundersfund.com/
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2006/12/13/MNGECMUMRE1.DTL
http://www.techcrunch.com/2007/12/17/founders-fund-closes-220-million-second-fund/
http://www.businesswire.com/news/google/20071217006220/en
http://en.wikipedia.org/wiki/Peter_Thiel
http://www.latimes.com/business/investing/la-fi-founders18dec18,1,6840237.story?coll=la-headlines-business-invest&ctrack=2&cset=true
http://venturebeat.com/2007/12/18/founders-fund-raises-new-fund-aims-for-more-vc-disruption/