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July 2, 2008

Quote of the Day: Filling Ballmer's "Internet hole"

"Yahoo executives were unimpressed with Mr. Ballmer's vision. If anything, they regarded the Yahoo pursuit as a crude solution to quell his obsession with Google. They would later refer to Mr. Ballmer's plan as 'filling his Internet hole.'"

-From The Journal's detailed report on the ins and outs of Microsoft's negotiations with Yahoo. Most recently, Microsoft has approached media giants including News Corp and Time Warner to join it in a new offer that would likely result in the breakup of Yahoo. The story suggests those discussions have so far come to naught.

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July 1, 2008

AOL, Microsoft, WPP: Top Wheeler Dealers

Marketing executives working with digital media vendors might need a scorecard handy to track who owns who these days.

AOL, Microsoft, and WPP each acquired five marketing, advertising, or digital media companies during the first six months of 2008, according to a report on mergers and acquisitions released today by investment bankers Petsky Prunier.

According to Petsky Prunier's research, the companies making the most acquisitions -- and some of their purchases -- include:

AOL: Bebo, a social networking site; Goowy Media, a widget development platform, and Perfiliate Technologies, an affiliate network.

Microsoft: Farecast.com, an online travel search engine, and Rapt, advertisement management software.

WPP Group: Integrated Media Measurement, which has a media measurement system that links media exposure to consumer action, and Yankelovich, a consumer research company.

Aegis Group: AdWatch, a Russian Internet advertising agency, and Globlet, a Thailand search marketing agency.

Havas Advertising: Kadium, a San Francisco digital ad agency, and Shake, a promotion marketing agency based in Chatham, NJ.

A look at the marketing, advertising, and digital media sectors shows the most money was exchanged for digital media companies. There were 78 transactions involving digital media companies totaling $6.3 billion, the firm reported.

Of those deals involving digital media companies, more than one-half involved user-generated or social media businesses. Those deals included AOL's acquisition of Bebo and Goowy Media, and Buzznet's purchase of Idolator.

In all, the Wall Street firm identified 398 deals valued at $19.7 billion involved marketing, advertising, and digital media companies for the first half of this year. Compared to the same period in 2007, the number of deals was up this year by 21 percent but the total transaction dollar volume was down by 26 percent. It said the drop in the value of transactions was due to two factors: this year's soft economy and two large deals last year with Microsoft's acquisition of aQuantive and Google's purchase of DoubleClick for $3.1 billion. (The Google-DoubleClick deal closed earlier this year, but was included by Petsky Prunier in the 2007 tally.)

As expected, no mention of the deal that didn't happen: Microsoft-Yahoo.

Or who's next.

Posted by Anna Maria Virzi at 4:24 PM | Permalink | Comments (0) | TrackBack

June 16, 2008

Yahoo-Google Confounds Digerati, Marketers Universally Miserable

One hundred hours later, opinion makers still can't agree on whether Yahoo's search ads deal with Google was a brilliant move long overdue or the beginning of the end.

For those in the latter camp, perhaps the most stinging indictment came from Joe Nocera, who wrote in the Times that Yahoo has "chosen to become a pawn of the most dominant company on the Internet." That's a strong remark, given the deal allows Yang & Co. to retain a control lever they can use to ratchet up monetization when flagging earnings seem to call for it.

The more they use that lever, the less pleased marketers will be. Many fear price hikes as Google boosts its control of search ad spending to 90 percent or more. Increases are probably not around the corner however, except insofar as advertisers give up on Panama and spend more on Google, thus bidding keywords higher. Under that scenario, Google will encounter less pressure to create competitive value for advertisers. That could manifest in higher campaign costs down the road.

As distasteful as Google's embrace is to Yahoo, it's nothing compared to what Microsoft's feeling -- especially given it lit the fuse on the bomb that just blew up in its face.

Indeed, if the six-month drama surrounding Yahoo's fate were a drawn-out Looney Tunes episode, the screen would now display a blackened Wile E. Coyote (Microsoft, a.k.a. Eatibus Anythingus) moments after an elaborately concealed explosive device detonates on top of him. The singed coyote can only look on in despair as Road Runner (Google, a.k.a. Hot-rodicus Supersonicus) casually polishes off the platter of bird seed laid as bait. The comparison breaks down a bit at this point, since Yahoo clearly has to be both the pile of Acme brand TNT and the bird seed.

Whatever. The big question now is, what's Wiley planning next? It was only a year ago that its loss of DoubleClick in a fierce bidding war with Google drove Microsoft to hotly pursue a purchase of much larger aQuantive. There is no acquisition target bigger than Yahoo, but many smaller snacks remain on the table -- for instance AOL, Facebook, ValueClick, AdBrite, Tribal Fusion, and Specific Media.

Finally, many believe an eventual acquisition of Yahoo is still very much in the company's plans, and that Yahoo's Google deal has merely bought it time. It's entirely possible regulators will block the relationship on anti-competitive grounds, in which case pressure will mount for Yahoo to return to the negotiating table.

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June 5, 2008

Ford and Microsoft Sync Up for Viral Roadtripping

Microsoft has teamed with Ford for a highly experiential, super soft-sell microsite around Microsoft SYNC.

SYNC is a voice-actived gizmo for your car that's kind of like an iPod crossed with a Blackberry: it does music, text, and telephone. Cool, but it's a sell with a high educational curve.

Sync My Music, which lives on MSN, features a game, tons of content and a number of video webisodes about Kim and Seana, two music-obsessed girls, who road-trip across America in a SYNC equipped Ford in their respective quests to become a singer/songwriter (Kim DiVine is the real thing, actually), or to hook up with hot male indie band members.

The game unlocks additional content such as wallpaper and MP3s; the Explore section of the site is a region-by-region guide to the myriad cities the girls visit in their travels. It contains info on local clubs and bands and planning your own road trip. Which may prove difficult, as most of the links are crosswired. Select NYC's hippest bands, for example, and you land on Atlanta's arenas, clubs and cafes.

Oh, well. Given current gas prices, you probably weren't really going to do the roadtrip thing this summer, anyway.

Microsoft wants users to digg, blog and forward the site to a friend. Given the chicks meet popular local indie bands from time to time, the viral has got some real potential. Not just from the fans, but from the bands, who are promoting the heck out of the site on MySpace already.

Posted by Rebecca Lieb at 2:41 PM | Permalink | Comments (1) | TrackBack

June 3, 2008

MSN Jumps on Celebrity Dirt Pile in Pairing with BermanBraun

BermanBraun, the studio launched by former Yahoo entertainment chief Lloyd Braun and film industry vet Gail Berman, has entered a deal with Microsoft to create an MSN-branded celebrity gossip and entertainment site. Kara Swisher first reported the launch yesterday, along with the tidbit that BermanBraun will also produce a daily "Lunacy Report" roundup up weird news appearing on Yahoo. Sounds very similar to Yahoo's recently-folded "the 9," which ran for two years but now redirects to Yahoo Entertainment.

MSN is the last of the traditional portals to do the gossip destination thing, having previously taking the approach of integrating its coverage of such stories as Bill Murray's infidelities with harder news content. The new site will join a congested field that also includes AOL's TMZ, PerezHilton.com and Yahoo's OMG. BermanBraun will share ad representation with Microsoft, Swisher also reported.

Posted by Zachary Rodgers at 4:56 PM | Permalink | Comments (0) | TrackBack

WSJ: Icahn Seeks Yang's Ouster

In the latest volley, Yahoo investor Carl Icahn is calling for the ouster of Yahoo's chief executive Jerry Yang, according to wsj.com.

Icahn has previously called for the replacement of Yahoo's board, which includes Yang.

The latest report comes a day after a Delaware judge unsealed a class action lawsuit against Yahoo's board and Yang. The suit alleges Yahoo's board set up "roadblocks" to Microsoft's proposed acquisition of Yahoo, especially an expensive employee severance package.

A copy of the unsealed lawsuit can be found at the Web site of Bernstein Litowitz Berger & Grossmann, the firm suing Yahoo on behalf of on behalf of Detroit's Police and Fire Retirement System, Detroit's General Retirement System, and other Yahoo shareholders. "Yang convinced the [Yahoo] board to adopt change-in-control employee severance plans that impose tremendous cost and risks for an acquirer, throwing sand in the gears of Microsoft's plans for a smooth integration," the lawsuit alleges.

Posted by Anna Maria Virzi at 4:18 PM | Permalink | Comments (0) | TrackBack

May 28, 2008

Will Microsoft Acquire a Directories Giant?

[UPDATED: Some disagreement in the comments over my use of a Compete chart below, so I've added data from ComScore].

Shares of U.K.-based Yell Group are up on rumors Microsoft has approached the directories publisher about a possible sale. The acquisition, if it came to fruition, would be Microsoft's first merger in the local business and residential look-up arena, and could be interpreted as a play for search share. For instance, Yell's online properties -- including Yell.com in the U.K., YellowBook.com in the U.S., and PaginasAmarillas.es in Spain -- could carry Microsoft Maps and local listings, along with geo-targeted advertising. And Yell's sales force could upsell local marketers on Microsoft's other channels.

Even so, YellowBook.com is hardly the leader in the space, particularly in the U.S.

According to ComScore, YellowBook.com's April traffic pales next to category leaders YellowPages.com (AT&T) and SuperPages.com (Idearc). SuperPages.com is the dominant online yellow pages player with over 30 million unique. However YellowBook.com boasts the highest growth rate, having bean-stalked 156 percent since April 2007 to over 14 million U.S. uniques.

And here's Compete's traffic comparison, which mainly goes to show how utterly hopeless an endeavor independent traffic verification still is.

What a sale to Microsoft would mean for Yell's working environment may be a point of some nervousness for the company's staff. The firm was just awarded a ninth place ranking on the Financial Times' list of the U.K.'s best workplaces.

Posted by Zachary Rodgers at 1:53 PM | Permalink | Comments (7) | TrackBack

May 27, 2008

Quote of the Day: Tim O'Reilly

"So let's assume that Google has won at search, or close enough to make no difference. Is Microsoft better off trying to reimplement cat and ls [old UNIX utilities], or trying to figure out what's still missing from the Internet Operating System? While they are locked in penis envy, all the really cute girls are going out with startups."

-Tim O'Reilly, arguing Microsoft's search obsession has distracted it from important work it could be doing in service of Web users.

Posted by Zachary Rodgers at 12:59 PM | Permalink | Comments (1) | TrackBack

May 20, 2008

Microsoft, Post-Gates

Stopped by to hear tech journalist Mary Jo Foley discuss her new book, "Microsoft 2.0, How Microsoft Plans to Stay Relevant in the Post-Gates Era."

On July 1, Bill Gates will give up his day-to-day responsibilities at Microsoft. As part of the transition, Lotus Notes inventor Ray Ozzie was named chief software architect in 2006, put in charge of product oversight.

However, Foley sees Ozzie as a behind-the-scenes player rather than Microsoft's public face. "Everyone says he's a brilliant guy, but he cannot deal with people," Foley said, speaking at a New York Software Industry Association meeting last night.

Foley said Microsoft has become more closely guarded about projects underway, behaving more like secretive Apple.

All the while, Microsoft is working on innovations typically unknown to the larger tech community. "Data portability -- Microsoft is actually doing stuff in that space. A lot of times it [Microsoft] gets dinged for being complacent, but it's in the pipeline. They are just not ready to announce it," she said.

What about Microsoft's proposal to acquire Yahoo's search-ad business? "It would make a lot more sense for Microsoft to sell its online ad business to Yahoo and have a joint venture," she said. "Yahoo would be crazy to sell its search business."

Posted by Anna Maria Virzi at 8:12 AM | Permalink | Comments (0) | TrackBack

May 19, 2008

Microsoft Memo: We'll Win in Display

Most analysts and investors still believe Microsoft's bid for Yahoo was strictly a search play. Display ads -- if they figured into the strategy at all -- were mere garnish to the main dish. Microsoft needs to compete harder with Google, and Google's power is contingent on its search market share. End of story, right?

Not exactly. In a memo to staff, Microsoft Platforms & Services President Kevin Johnson, identified the company's top ad-related priorities ahead of its Advance08 advertising conference this week. Among those priorities: "Win in display advertising."

"We have an advantage in tools, agency assets/relationships and a team laser-focused on capturing the display ad platform opportunity. As we build from a position of strength, we will increase engineering resources to drive even more innovation," Kevin wrote.

It's an area where Microsoft needs to show it means business. After all, the company has no fewer than five display platforms, including the MSN Network, DrivePM (courtesy of aQuantive), MSN Direct Response, AdECN, and high-profile individual relationships with sites like Digg, Facebook and WSJ Digital. Yet it has not yet consolidated those offerings into a unified platform offering, the way Yahoo, through AMP, and AOL, through Platform A, have both begun to do with their sprawling display ad holdings.

ClickZ will be on the floor at Microsoft's Advance08 event tomorrow and Wednesday, so check back with us for insights on how Microsoft plans to position its ad platforms and services in the wake of the Yahoo deal implosion.

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May 18, 2008

Microsoft-Yahoo: A New Spin

Two weeks after withdrawing its bid for Yahoo, Microsoft has returned with another proposal: acquire only a portion of Yahoo.

Microsoft, in a statement, said it continues to "explore and pursue its alternatives to improve and expand its online services and advertising business."

The Wall Street Journal, quoting unnamed sources, reports Microsoft's proposal would involve Yahoo display ads sold by Microsoft next to Yahoo research results. That proposal appears to be in response to Yahoo's decision to test Google ads on its own search results pages.

Yahoo, in a carefully worded news release titled, "Yahoo! Remains Open to Value Maximizing Transactions," said it "confirmed with Microsoft that it is not interested in pursuing an acquisition of all of Yahoo at this time." (Note the use of the word, "all" here.)

Yahoo said it intends to evaluate alternatives, including any proposal from Microsoft, that would be in the best interest of stockholders.

This latest development comes days after Yahoo investor Carl Icahn made noise to launch a battle and replace Yahoo board members with an alternate board unless talks are renewed with Microsoft.

Posted by Anna Maria Virzi at 8:49 PM | Permalink | Comments (0) | TrackBack

May 5, 2008

Is the Stage Set for an AOL Sale?

With the dust settling around Microsoft's abortive bid for Yahoo, one thing's quickly becoming clear: The self-destruction of this particular takeover attempt is not the end of Yahoo's odyssey but merely a mid-way point. Analyst and blogger speculation this morning has anticipated a variety of outcomes for Yahoo, including a deal with News Corp (though talks have reportedly "cooled"), an acquisition of ValueClick, and even a late third act consummation with Microsoft.

The next big Web company to sell may not be Yahoo, however. Last month we learned Yahoo was closing in on a deal to imbibe AOL. Presumably those talks are still underway, and word this morning is Microsoft has already entered the fray. Google may also be interested in AOL, which would give it the reach in display that has so far eluded it.

Microsoft seems the best bet to triumph in any competitive bidding process, given it's already flashed its money roll to investors and the business community. Plus it really does crave search market share. And while AOL's 5 percent wedge of the U.S. search pie is modest by comparison to Yahoo's 21 percent, Microsoft could nearly match Yahoo by buying both AOL and Ask. Sweetening the deal for Microsoft, buying those two entities would would end Google's ad distribution deals with them, cutting into its profits.

Additionally, any company to combine with AOL will command the display ad market. A combined AOL-Yahoo would be a true powerhouse, as the companies are #1 and #2 in display. A combined Google-AOL would create huge inroads into display for a company that's so far still just barely out of lip-service territory in the category.

Posted by Zachary Rodgers at 2:25 PM | Permalink | Comments (0) | TrackBack

May 3, 2008

Microsoft Withdraws Bid for Yahoo

Microsoft on Saturday withdrew its bid to acquire Yahoo, opting against raising its offer $5 billion more or pursuing a hostile takeover.

Microsoft CEO Steven Ballmer, in a letter to Yahoo CEO Jerry Yang, said he was concerned that Yahoo would take actions that would make the company undesirable to Microsoft. Of particular concern: Yahoo's decision to test Google's search ads on its own results pages, and the possibility that Yahoo would work more closely with Google on paid search going forward.

Such an arrangement, Ballmer wrote, "would fundamentally undermine Yahoo!’s own strategy and long-term viability by encouraging advertisers to use Google as opposed to your Panama paid search system."

He continued: "This would also effectively enable Google to set the prices for key search terms on both their and your search platforms and, in the process, raise prices charged to advertisers on Yahoo," Ballmer said.

Yahoo Chairman Roy Bostock fired back a statement, reiterating that Microsoft's bid undervalued Yahoo. "We remain focused on maximizing shareholder value and pursuing strategic opportunities that position Yahoo! for success and leadership in its markets," Bostock said in a news release.

On Feb. 1, Microsoft offered to pay $44.6 billion or $31 a share for Yahoo. Since then, Microsoft said it agreed to raise its bid by $2 per share, but Yahoo wanted another $4.

Posted by Anna Maria Virzi at 9:39 PM | Permalink | Comments (0) | TrackBack

May 2, 2008

More Micro-heuvering: WSJ Contracts Nasty Case of "Coulds"

Microsoft and Yahoo continue to negotiate heavily through the medium of the Wall Street Journal, forcing reporters Kevin Delaney, Matthew Karnitschnig, and Robert Guth into spastic repetition of the word "could."

Microsoft could announce it's backing out of the deal, we heard yesterday. The word this morning is it's leaning toward going hostile as early as today, but "could change tack." Meanwhile, Yahoo could announce an expansion of its Google search ad trial by next week. Such a deal "could go forward" even in the event of a hostile bid, WSJ promises.

What about Yahoo/AOL? Could happen. After all, it's been just three weeks since the firms were "closing in on a deal" to combine operations.

One thing's clear: All us losers that aren't the Wall Street Journal could have some real Microsoft/Yahoo news to report as early as any minute.

Posted by Zachary Rodgers at 12:53 PM | Permalink | Comments (0) | TrackBack

April 24, 2008

Is Verbing the Sincerest form of Flattery?

First Google said it's not OK to "Google" someone or something on the Web. Now Microsoft in the Netherlands says it's not OK to use the verb "MSN-ing" as a synonym for sending messages through instant messenger. I'm not sure how to say IM in Dutch, but "MSN-ing" doesn't exactly roll off the tongue.

To add insult to injury to Microsoft, while pursuing legal action in the Netherlands the company was shown a list of existing domain names related to "msn" such as msncam.com, msntest.com, msn-beta.com, and 62 others. When Microsoft executives said they were unfamiliar with the list, a judge reportedly told them to "Google" more.

Posted by Enid Burns at 12:01 PM | Permalink | Comments (0) | TrackBack

April 9, 2008

Microsoft/Yahoo Maneuvers: Curiouser and Curiouser

There's seemingly no end to the improbable machinations swirling around Microsoft's unsolicited bid for Yahoo. A flurry of late breaking rumors and announcements today conjured up a series of outlandish scenarios, including the combination of Yahoo and AOL's Internet operations, a possible joint bid for Yahoo by Microsoft and News Corp, and the (confirmed) outsourcing of a portion of Yahoo's search ads to Google.

The very latest developments, reported by WSJ this evening, are that (1) Yahoo and Time Warner's AOL are busy "closing in on a deal" to combine their businesses, yet another desperate maneuver to escape Microsoft's embrace; and (2) Microsoft is in "serious talks" with News Corp. about a plan to combine forces in a bid for Yahoo. No additional details were mentioned about this previously undiscussed scenario.

According to the report, Time Warner would contribute AOL along with a cash investment in exchange for a 20 percent stake in the company. The deal would be contingent on the approval of Yahoo's shareholders.

The latest rumors come at the end of a frenetic day for Yahoo, which this morning announced the planned acquisition of analytics platform IndexTools and this afternoon reluctantly stated it would conduct a test of Google's search ads on its own results pages.

Posted by Zachary Rodgers at 10:05 PM | Permalink | Comments (0) | TrackBack

April 4, 2008

Microsoft Gives Deadline to Yahoo Board

Microsoft CEO Steve Ballmer has given Yahoo's board three weeks to approve Microsoft's $44.6 billion bid for Yahoo. If the board doesn't sign off on the bid, Ballmer said Microsoft will take its case to Yahoo's shareholders.

"The substantial premium reflected in our initial proposal anticipated a friendly transaction with you," Ballmer wrote to Yahoo's board members. "If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal."

Yahoo CEO Jerry Yang and chairman Roy Bostock, in a statement today, reiterated that Microsoft's bid undervalues Yahoo. They insisted they aren't opposed to Microsoft taking over Yahoo -- they just want the bid to reflect Yahoo's value.

Since Microsoft made the bid two months ago, Ballmer said the public equity markets and overall economic conditions have weakened. "At the same time, public indicators suggest that Yahoo!’s search and page view shares have declined. Finally, you have adopted new plans at the company that have made any change of control more costly," he wrote.

In response, Yahoo's executives replied that the company has continued to launch new products and to take actions "that leverage our scale, technology, people and platforms as we execute on the strategy we publicly articulated."

The Yang-Bostock letter takes a personal tone. "We regret to say that your letter mischaracterizes the nature of our discussions with you," they wrote. "Moreover, Steve, you personally attended two of these meetings and could have advanced discussions in any way you saw fit."

Plus, Yang and Bostock point out that Microsoft's stock price has declined since its bid, meaning that the value of Microsoft's proposal is lower than it was two months ago.

On Friday, Bloomberg.com reported that Microsoft may cut its $44.6 billion bid for the company, suggesting the economic slowdown could hurt Yahoo's business.

Earlier Friday, Reuters said Microsoft was "evaluating" its bid to purchase the company. Reuters, quoting unnamed sources, pointed out that Yahoo has lost key personnel since Microsoft made its Jan. 31 offer, plus other factors.

Posted by Anna Maria Virzi at 10:31 PM | Permalink | Comments (0) | TrackBack

April 1, 2008

Microsoft Unlikely to Raise Yahoo Bid: WSJ

Having evidently determined it has a better grip on Yahoo's shareholders than Yahoo itself does, Microsoft has decided not to raise its bid for the Internet giant as it had been rumored to do, Wall Street Journal reported this morning. Declines in Microsoft's market value since it made its $45 billion cash and stock offer two months ago have reduced the real value of the bid to around $42 billion. Many expected Microsoft would counter a little higher and seal the deal after Yahoo's rejection of the offer on the grounds it undervalues the company.

Of course, we have to take the Journal's sources on their word that this latest leak isn't planted. "Such pronouncements are standard in deal negotiations but people close to Microsoft insist the stance isn't posturing," the story notes.

Posted by Zachary Rodgers at 11:01 AM | Permalink | Comments (0) | TrackBack

March 28, 2008

Could China Block Microsoft-Yahoo Deal?

Microsoft's proposed purchase of Yahoo could encounter a roadblock in China, "The New York Times" reports today.

An antimonopoly law, which takes effect August 1, strengthens Chinese oversight of acquisitions involving foreign businesses acquiring or investing in Chinese businesses.

Chinese regulators will have the authority to review the Microsoft-Yahoo acquisition's impact on Alibaba.com, an e-commerce company in China. That's because Yahoo invested $1 billion in Alibaba for a 40 percent stake three years ago.

Quoting legal specialists, the Times reports that China's new law could match the powers that regulators in the European Union and the United States now have to review foreign mergers for antitrust concerns.

Posted by Anna Maria Virzi at 11:18 AM | Permalink | Comments (0) | TrackBack

March 10, 2008

Murdoch: News Corp. Won't Fight Microsoft for Yahoo

Speaking at the Bear Stearns Media Conference in Florida today, News Corp. Chairman and CEO Rupert Murdoch put to bed rumors of a possible tie-up with Yahoo, stating, "We're not going to get into a fight with Microsoft, they have a lot more money than us."

He went on to say that Yahoo had "missed out" in the search arena by failing to invest in Overture quickly enough after acquiring it in 2003. He added "We're very happy to be in the Google camp; they sell our search advertising and pay us well for it."

Speaking further on social networks, Murdoch said that existing sites should attempt to introduce social aspects to their offerings. He suggested that News Corp. may attempt something along the social network lines with its Wall Street Journal site, and that users would be "interested to talk to each other about their investments."

When asked about future deals, Murdoch said he was not looking for big acquisitions, but may be tempted into some smaller ones. He added that he was cautious of the high price tags assigned to online properties at present, and that it would be "very easy to throw away a lot of money on Internet sites."

Regarding the current financial climate, News Corp. is apparently in "good shape" to face a weakened economy, having reduced its dependency on advertising from 41 percent to 23 percent of revenue.

Posted by Jack Marshall at 12:46 PM | Permalink | Comments (0) | TrackBack

March 7, 2008

Greener Marketing: It's a Brand Thing, Too

Marketers need to start thinking harder about schwag for the sake of the environment, as well as their brands.

The sheer amount of conference bag stuff always boggles the mind, particularly at evens as massive as SXSW. Of course, the sponsor fees behind stuffing all this stuff into those totes goes a long way toward making these events possible.

SXSW sent out a pre-event e-mail to participants with pointers on making the event greener, pointing out opportunities for recycling and other efforts conference-goers could take toward reducing - somewhat - the event's carbon footprint.

But boy, is my bag full. And it's full of stuff that doesn't need to be there. I'll single out Microsoft as an example (because they're big enough to take it, but are hardly the only offender).

Microsoft's extremely cool Silverlight plug-in is a topline SXSW sponsor. That doesn't excuse including a Silverlight CD, encased in a hefty plastic box, in each of tens of thousands of bags. Not when this slim little plug-in is readily available as a fast, free download from the Web.

It's not just a matter of waste (calling to mind AOL's well-publicized earlier excesses), it's also become a matter of branding (particularly in an environment and a city as socially conscious as SXSW and Austin). Microsoft paid a pretty penny to manufacture all those CDs, and more still to get them slipped into bags -- so they could be slipped into the trash. An alternative might have been a simple sheet with information about the product and how to get it for free.

Result? Negative buzz. That's bad for the brand, not just the environment.

Posted by Rebecca Lieb at 2:16 PM | Permalink | Comments (0) | TrackBack

February 25, 2008

Campaign Tracker, for Politicos on the Go

With the election year upon us, some voters may want to get their information and coverage of the big event wherever they go. Microsoft is looking to capitalize on voters looking for breaking news by sponsoring a free Campaign Tracker application for Windows enabled Mobile phones..

NewsGator is providing its Mobile Reader system and widget services, while the news organizations Washingtonpost.com and Newsweek will update the political news via RSS feeds. Campaign Tracker was created by NewsGator's Software-as-a-Service division which handles syndication services, and Microsoft's Mobile2Market program. It'll run on Microsoft Windows Mobile 5 and 6 devices, as well as Microsoft Pocket PC devices. The service itself will go online early next week.

Post updated to correct the application's name from Candidate Tracker to Campaign Tracker.

Posted by MatthewNelson at 10:09 PM | Permalink | Comments (0) | TrackBack

February 12, 2008

Microsoft, Yahoo Anuncian Mobile Deals in Barcelona

At the Mobile World Congress this week in Barcelona, Spain, Microsoft and Yahoo both made separate announcements touting their mobile offerings.

Yahoo used the show to demonstrate its forthcoming Yahoo oneConnect service for mobile devices using Yahoo Go 3.0 and Yahoo’s new mobile home page, expected to be available in Q2 2008. The oneConnect service will aggregate social network connections from sites like Facebook, MySpace, LinkedIn, along with news, weather and other alerts. The service will also provide e-mail, instant messaging, text messaging connections.

Separately, Microsoft announced it had signed European mobile publishers L'Equipe, Boursier.com and Autonews in France to its mobile ad platform. The company also said mobile operator Orange picked Microsoft as its ad serving partner for mobile display advertising in Spain. What wasn't clear from the news out of Spain was whether this is a mobile ad management or serving deal only, or whether it will involve ad sales representation.

Posted by MatthewNelson at 4:02 PM | Permalink | Comments (0) | TrackBack

February 6, 2008

Microsoft Musical Chairs: Berkowitz Out, McAndrews to Run All Online Services?

Microsoft is mum on reports today that Steve Berkowitz, head of Online Services, will shortly step aside to make room for either aQuantive chief Brian McAndrews or his boss, Kevin Johnson, who heads Platforms and Services. The replacement would be part of one of Microsoft's regularly scheduled reorgs that may also bring changes in its Windows division (Mary Jo Foley reports Windows product marketing EVP Michael Sievert will move on, a casualty of the Vista's generally poor reception with consumers). WSJ and CNET cited internal sources saying the organizational shuffle could come as soon as next week.

Two big questions: Will Berkowitz's Online Services unit will be merged completely into Johnson's, and will McAndrews' Digital Advertising Solutions group gobble it up? Hopefully both will happen, for both marketers' and Microsoft's sake.

That's the way it should've gone back in August, when Microsoft created Advertiser and Publisher Solutions to house all its new aQuantive properties along with Microsoft AdCenter. McAndrews was named to lead the unit, while Berkowitz's Digital Advertising Solutions sales force was oddly left on its own. That just didn't make sense, and it looks like Microsoft's about to correct the error.

No indication in either report whether Berkowitz will be jettisoned or offered a new post.

Posted by Zachary Rodgers at 12:02 PM | Permalink | Comments (0) | TrackBack

February 4, 2008

Mobile in a Combined Microsoft, Yahoo

In Microsoft's conference call last week discussing its offer to purchase Yahoo for $44.6 billion, mobile was cited as a key asset. Mobile assets combined make a significant footprint in the mobile ecosystem. That's because currently, "there really is no one-thousand pound gorilla in mobile," said Boris Fridman, CEO of Crisp Wireless, in the context of the mobile presence both companies can merge into.

Here's the rundown on Microsoft's mobile universe: Windows Mobile, an operating system with a full suite of productivity software such as Outlook, Word, and Excel, sits at the core of Microsoft's mobile footprint. MSN began advertising on its mobile portal in December, and in the U.K. in January. Its Live Mobile offering, which Sprint uses in a deal with Microsoft, runs pay-per-call ads.

A string of acquisitions including ScreenTonic, Tellme, and MotionBridge bolstered existing properties as well as filled out lacking areas. In a surprising move, Microsoft incubated and then spun off ZenZui, a graphical user interface browsing package, now called Zumobi.

Yahoo has spent time building out its own mobile offering with a multi-platform presence. The search engine began offering keyword-based mobile search ads in fall of 2006. Then it brought out OneSearch the following spring. It also developed a content-driven portal Yahoo Go, which just released a 2.0 version. Sources say Yahoo Go has been perceived as a failure inside the company. Yahoo also brings to the table several relationships with international carriers. In January it signed a deal with T-Mobile U.K., which adds to its existing relationship with competing carrier Vodafone. A separate deal includes relationships with Six carriers in Asia.

If Microsoft and Yahoo's combined mobile presence becomes the 1,000 pound gorilla in mobile, will it be a game-changer? Probably not, according to some industry sources. It will offer a great deal of inventory in multiple formats and in one place. Microsoft can streamline media buying through its global sales force and ad-buying dashboard through its Digital Advertising Solutions Group. It may become the best way to do multi-channel buys, and Microsoft can build mobile network beyond its core sites. It won't take over all of mobile, and pure-play solutions providers in the space may still be the best options for content owners, media buyers, and advertisers looking to build a presence.

Posted by Enid Burns at 4:31 PM | Permalink | Comments (0) | TrackBack

February 3, 2008

Google Weighs In On Microhoo: It May Be Evil

David Drummond, Google SVP corporate development and chief legal officer, issued the company's official response to Microsoft's proposed acquisition of Yahoo this afternoon. Essentially, Google's position is combining its two main competitors could be bad for the Internet...even border on evil.

Drummond says in the official Google statement:

"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."

Posted by Rebecca Lieb at 5:25 PM | Permalink | Comments (0) | TrackBack

February 1, 2008

Ad Network Integration: Can Microsoft Hack It?

The audience consolidation under a combined Yahoo/Microsoft would be extraordinary, and the integration job extraordinarily complex. The merged entity would combine portals MSN and Yahoo, plus BlueLithium, Right Media, aQuantive's DrivePM, adECN, mobile network Screen Tonic, game network Massive, and both parties' expanding network relationships with the likes of Viacom, Facebook, Digg, CNBC and Wall Street Journal Digital. Crazy right?

I just got off the phone with a few agency execs, trying to gauge their reaction to the deal from a media buying/planning perspective. More on that later, but on the topic of integration the consensus is that Yahoo's done a much better job absorbing recent acquisitions (BlueLithium, Right Media) into its existing ad sales operations than Microsoft has (AdECN, aQuantive's DrivePM).

Much of Yahoo's success with ad integrations has to do with its ingrained understanding of what advertisers want. It'll take humility for Microsoft, which still doesn't really speak the language of Madison Avenue, to let that sales savvy rub off on it -- to say to Yahoo, "You're the ad expert. You tell us what to do."

Posted by Zachary Rodgers at 4:12 PM | Permalink | Comments (0) | TrackBack

Microsoft Wants to Buy Yahoo: Convergence, Continued

There have been rumors of late about some sort of Microsoft/Yahoo hookup -- and here it is. Microsoft just tendered a $31/share bid for Yahoo. All of Yahoo.

It's about the advertising. From the press release: "The online advertising market is growing at a very fast pace, from over $40 billion in 2007 to nearly $80 billion by 2010. The resulting benefits of scale along with the associated capital costs for advertising platform providers make this a time of industry consolidation and convergence. Today this market is increasingly dominated by one player. Together, Microsoft and Yahoo! can offer a competitive choice while better fulfilling the needs of customers and partners."

Steve Ballmer, Microsoft CEO said in a statement: "We have great respect for Yahoo!, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market."

After the jump, Ballmer's letter to Yahoo board members. We'll be following developments closely, promise.

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,

Steven A. Ballmer
Chief Executive Officer
Microsoft Corporation

Posted by Rebecca Lieb at 6:57 AM | Permalink | Comments (0) | TrackBack

November 6, 2007

Windows Live Reaches Next Gen

Microsoft today announced the next generation of Windows Live, offering a single Live ID, and a single, customized download to get Windows Live Mail, Messenger, Spaces, Photo Gallery, Events, and Writer. There's also the ability to connect through Windows Live for Windows mobile, and a way for parents to block inappropriate online content for their kids through Windows Live OneCare Family Safety.

What does this mean for advertisers? "It's Windows Live, a large audience across all these products," said Tim Waddell, director of display product marketing for Microsoft Advertiser and Publisher Solutions group. Microsoft is moving into the direction of social networking through deals with Facebook and Digg, among others, but if it's about the conversations, Waddell said, "We've been having those conversations over e-mail and IM for years."

To demonstrate the reach the Windows Live platform has with consumers, Microsoft released research it conducted with TNS Media Intelligence to track the conversations and interactions users have in Microsoft's playground. Research finds that 60 percent of the Windows Live audience is within the 18 to 34 year-old age bracket. The younger audience is the core advertising demographic said to be difficult to reach.

The research finds users grouped, or netted, communications media categories across Live. The categories include social media, Internet sites, online media, online media on mobile phones, and social media on mobile phones. Microsoft plans to add in Xbox Live and mobile platforms in the mix in the future. Research looked at the retail, movies and entertainment, financial services, and pharmaceutical verticals.

Posted by Enid Burns at 6:02 PM | Permalink | Comments (0) | TrackBack

September 18, 2007

Location-Aware Mobile Search

When you leave your neighborhood, or even time zone, your phone can sense you're in a different service area, yet targeting for advertising and search defaults to your home area unless you tell your phone otherwise. Through a partnership between Sprint and Microsoft, users on the Sprint network can opt-in to an integrated GPS location-aware mobile search service. Additionally, Microsoft will include a version of voice search with visual results by Live Search using Microsoft property Tellme available for download. GPS-enabled search is a permission-based service, subscribers do have to acknowledge the GPS functionality of the phone in order to take part.

While there was no advertising immediately announced about GPS-enabled search, it's ripe for geo-targeted ads. Sprint was an early adopter among U.S.-based carriers to allow advertising on deck. On the Microsoft side, it can't be too hard to make inventory available to advertisers here.

Posted by Enid Burns at 5:00 PM | Permalink | Comments (0) | TrackBack

August 14, 2007

Microsoft Seals AdECN Deal, Too

Just a quick note that, in addition to sealing the aQuantive deal, Microsoft closed on its acquisition of ad exchange AdECN, now a wholly-owned subsidiary of Microsoft. AdECN's 30 employees will report into Microsoft Corporate VP, adCenter Alex Gounares.

Posted by Kate Kaye at 5:30 PM | Permalink | Comments (0) | TrackBack

July 9, 2007

Microsoft Out of FTC Woods Unscathed? What of Yahoo?

Microsoft just might be gloating a little about the fact that the Federal Trade Commission -- apparently -- has not asked for more information regarding its monster $6 billion aQuantive buy. The requisite 30-day period during which the FTC could do so has elapsed.

Google, of course, is withstanding further investigation into its purchase of DoubleClick, widely recognized as the catalyst for Microsoft's aQuantive acquisition, among other activity in the online ad management sector.

As quoted in TheStreet, a Microsoft spokesman confirmed the news and called the DoubleGoo deal a "very different" transaction from the aQuantroSoft buy. (Yes, I think it's funnier in these cases to employ the acquired firms' names in the first syllables.)

Evidently Google sent TheStreet (or other press) a statement Friday in response to inquiries about Microsoft. "The FTC did not 'extend' its 30-day review period," said Google according to the story. What it did do is make a "second request" for more info, with which Google is complying.

24/7 Real Media announced June 15 the 30-day inspection period during which the FTC and U.S. Department of Justice could have requested more information regarding its acquisition by WPP lapsed without request for a prolonged review.

According to the Hart-Scott-Rodino Antitrust Improvements Act, companies must provide information prior to completion of a merger or acquisition to the FTC and DOJ if a transaction and parties involved meet certain criteria. (Learn more about those requirements and how the FTC goes about its investigations in this ClickZ News report.)

This leads to the question, what's up with the review of Yahoo's Right Media buy? Yahoo refused to comment regarding a review a while back when I inquired, but the company did acknowledge, "Yahoo's acquisition of Right Media requires HSR clearance." I've asked Yahoo about it, so I'll let you know what I find out….

Posted by Kate Kaye at 11:06 AM | Permalink | Comments (0) | TrackBack

May 29, 2007

Google and Microsoft Adding Street Level Views to Maps

Both Microsoft and Google are adding new features to their Map applications available online, and frankly both look pretty cool.

And while this is clearly another case of the two high tech giants battling it out for Internet eyeballs, it's interesting to note that the two companies took very different approaches to how they wanted to give users a whole new way to view their map results.

Microsoft is now offering three-dimensional, photo-realistic views of New York City buildings and landscapes via Microsoft Live Search Maps. Using its system, and taking note that Windows Media Player 9 is strictly required, a Live Search Maps user can fly through the New York streets in a gray scale but detailed 3-D map of the city. Google Maps, on the other hand, is now offering its Street View as actual 360 degree photographed images of areas a user might be interested in. The Google Maps Street View images can also be manipulated to swing around your point of view or "move" down the street.

In addition to New York City, Microsoft is planning on providing cityscapes of Austin, Texas; Cape Coral, Fla.; Cincinnati, Ohio; Indianapolis, Ind., including the Indianapolis Motor Speedway; Northampton, England; Ottawa; Savannah, Ga. and Tampa, Fla. Google is starting off its Street View with the San Francisco Bay Area, New York, Las Vegas, Denver and Miami. Google is also launching Mapplets, as a developers tool to enable third party companies to create mini applications that can be displayed on Google Maps. These Mapplets contain a variety of information, from housing listings to crime data, and tools like distance measurement, the company said.

Of course, what tickles me about these two approaches is that it looks like Microsoft spent a lot of man hours and technology on creating a virtual world directly from the real one, while Google just sent somebody out with a camera and told them to take a picture every quarter mile or so. Time will tell which system appeals to users more.

Posted by MatthewNelson at 9:40 PM | Permalink | Comments (0) | TrackBack

May 17, 2007

AOL Tests Vista Gadget

Windows Vista has the ability for content owners and marketers to build desktop widgets to make their platforms more accessible. AOL just released its early version of the AOL Social Mail Gadget at dev.aol.com/mail. The widget gives users one-click, desktop access to e-mail, AIM, photos and video. The top five contacts float to the top so users can immediately message their friends and family.

The widget give AOL desktop visibility to all users. It won't immediately run advertising, but it's not out of the question. "As part of AOL's audience and monetization growth strategy, we are going to look at optimized monetization opportunities surrounding the gadget," said an AOL spokesperson.

Posted by Enid Burns at 4:42 PM | Permalink | Comments (0) | TrackBack