ONLINE SERVICES/INTERACTIVE MEDIA
Microsoft has made a $44.6 billion, $31 per share bid for Yahoo. The offer represents a massive 62 percent premium over Yahoo’s latest close. The offer will allow Yahoo shareholders to choose either cash or stock, although the total outlay will be half of each. Microsoft believes that the tie-up will give the companies needed scale in the online advertising space and is expecting at least $1 billion in synergies for the combined company. A letter sent from Microsoft CEO Steve Ballmer to the Yahoo board, and included in the release (posted it here in full), presents the Redmond company’s arguments for the deal, including the fact that Microsoft itself has seen strong growth of late and that Yahoo shareholders should be happy trading in their shares for Microsoft shares. The company is also promising “significant” retention packages for key engineers and leaders. (http://www.paidcontent.org/entry/419-microsoft-makes-446-billion-bid-for-yahoo 2/1)

Microsoft’s bid for Yahoo may end up putting other companies in play. High on the list is Time Warner’s Internet unit AOL. Google, which already owns 5% of AOL, may feel compelled to make a dramatic move now that Yahoo and Microsoft may be joining forces. (http://dealbook.blogs.nytimes.com/2008/02/01/will-yahoo-bid-put-aol-in-play 2/1)

Google is reporting profit and sales that trail analysts’ estimates, signaling that an economic slowdown may reduce demand for online advertising. (http://www.bloomberg.com/apps/news?pid=20601204&sid=arACsb95xMts 1/31)
Yahoo is ready to acquire video hosting company Maven Networks for about $150 million, reports TechCruch. Maven handles video streaming duties for clients such as Fox News, CBS Sports and Scripps and operates a new Internet TV Advertising Platform designed to maximize dynamic ad insertion revenue.

Mark Zuckerberg, the 23-year-old founder of privately held Facebook, is openly discussing the social networking site’s finances with staffers. He projects revenue to increase from $150 million in 2007 to about $350 million this year. Staffing will rise to 1,000 in 2008 from 450 now. (http://kara.allthingsd.com/20080131/chatty-zuckerberg-tells-all-about-facebook-finances 1/31)

Application developer Wallop is enabling content providers MTV, Paramount and Fox to host TV viewing parties on Facebook and Bebo with a widget called Party On. Users can invite their friends by sending customizable invitations, helping studios build buzz around new shows, movie premieres, season premieres and DVD releases.

Syndicated online content is said to be the hot topic at this year’s NATPE conference. As broadcast growth flattens, local television stations are looking to their Web sites for new revenue. Some stations are already airing the Warner Bros. sitcom “Two and a Half Men” on their Web sites. (http://www.nytimes.com/2008/02/01/business/media/01adco.html?_r=1&oref=slogin 2/1)
How do you make sure that millions of Americans will pay attention to your multimillion-dollar Super Bowl ad? Advertisers are posting them online, unveiling them at news conferences and screening them at cocktail parties. “They want to get more bang out of it,” says one observer. (http://www.latimes.com/business/la-fi-superads31jan31,1,6449030.story?ctrack=4&cset=true 1/31)
KickApps
is implementing a lot of new features and capabilities with its newest release, version 3.0, which debuts today. For a complete list of the improvements, you can check out the company’s official release
(see the summary in the second half). (http://www.techcrunch.com/2008/01/31/kickapps-wades-into-ning-territory-with-version-30/ 1/31)

(Below) Frankly, I think this assessment is crap. December is a holiday month. People are shopping, readying for the holidays, etc. I expect engagement times most likely will be back up in January.
Engagement numbers on America’s leading social networks are trending downward, according to the latest ComScore data, suggesting the social networking fad may finally be waning. Even on Facebook, which increased its user base from 19.1 million to 34.7 million in the past year, users averaged 169.4 minutes on the site for the month of Dec. 2007, after averaging 195 minutes two months earlier.
Average Minutes per Month Spent on Social Networking Sites
(Home/Work/University U.S. Users)
Site Dec-06 Oct-07 Nov-07 Dec-07
___________________________________________________________________
MySpace.com 234.6 192.9 196.0 179.3
Bebo.com 213.3 231.8 246.8 173.9
Facebook.com 150.4 195.6 189.7 169.4
HI5.com 22.7 53.6 62.5 56.6
Friendster.com 39.5 109.2 69.8 39.2
Windows Live Spaces 17.3 14.0 13.2 14.9
Linkedin.com 8.0 8.7 9.9 7.1
Source: ComScore Media Metrix
Will Hartman’s sardonic Tough Love and Nick Hagen’s mocumentary The Paranormalists have emerged as the grand prize winners of The Storyteller Challenge, sponsored by MySpaceTV, FOX and the Producer’s Guild of America.
Eh. . .I watched a bit of Tough Love but Cupid seems like he’s doing a second rate Terry Tate impression. I can’t get down with that.

The four men who operate the defiant file-sharing site The Pirate Bay have been charged with conspiracy to violate copyright law in Sweden. The lawsuit names Warner Bros., MGM, Columbia Pictures, 20th Century Fox, Sony BMG, Universal and EMI as plaintiffs, accusing the site of profiting by offering downloads of copyright-protected content. The Pirate Bay, which is still operating despite the charges, claims a user base of over 2.5 million active registered users.
The site offers TV shows along with their music selection as well. In a sample search, I found their selection to be quite extensive.

Google’s Head of Ad Sales Tim Armstrong suggested TV advertising would resemble web-based direct response models in the near future during a panel discussion at NATPE, after image and video search functionality get baked into the TV platform. Preliminary set top data trials with EchoStar’s Dish Network indicate commercial zapping is even more prevalent than previously thought, he said.
The Bush Administration tried to convince critics the state of broadband penetration in America has vastly improved under his watch in a new report issued by the National Telecommunications and Information Administration. FCC numbers indicate broadband subscribers have grown from 6.8 million in Dec. 2000 to 82.5 million in Dec. 2006. But here’s the catch: the FCC defines broadband as 200 k/sec. at a time when developed European and Asian nations are enjoying speeds of 4-6 gigabytes/second. FCC Chairman Kevin Martin has used the excuse that American’s vast rural areas present a unique challenge to the broadband infrastructure in the U.S. But critics worry the lack of bandwidth is placing America at a serious competitive disadvantage.