Filed under: ONLINE SERVICES/INTERACTIVE MEDIA
ONLINE SERVICES/INTERACTIVE MEDIA
Yahoo chief Jerry Yang is telling employees that the struggling Internet pioneer is still examining ways to avoid a takeover by Microsoft. Yahoo is evaluating “potential strategic alternatives,” he says. A possible alliance with Google, however, would likely be blocked by antitrust regulators. (http://news.yahoo.com/s/ap/20080206/ap_on_hi_te/microsoft_yahoo 2/6)
Many Web sites trying to reach online consumers think they have to do business with Google to be visible on the Internet, and some are starting to resent the lack of choices. “People feel like it has too much control.” Recent defectors from Google to Microsoft include Viacom and CNBC.com. (http://www.washingtonpost.com/wp-dyn/content/article/2008/02/06/AR2008020604245.html 2/7)
Microsoft may pursue a hostile bid for Yahoo if the Internet company’s board doesn’t give in. CEO Steve Ballmer is “absolutely relentless” when it comes to “getting Microsoft into a better position,” says one venture capitalist. “In competing with Google, it’s going to take a bold move.” (http://www.bloomberg.com/apps/news?pid=20601204&sid=aJAt3o9pRPFM 2/7)
Google is adding a new feature to its Google News offering that will allow users to find local news by simply typing in a city name or zip code. Google says: “We’re able to create a local section for any city, state or country in the world and include thousands of sources.” (http://googlenewsblog.blogspot.com/2008/02/all-news-is-local.html 2/6)
IAC chief Barry Diller says he doubts he would be interested in buying AOL unless it was reduced to a “ridiculous” price. IAC’s search and advertising business “is our strategy for the future.” Also, IAC dispute with Liberty Media should be resolved within “a couple of months.” (http://www.smartmoney.com/bn/ON/index.cfm?story=ON-20080206-000671-1329 2/6)

IAC’s search engine Ask.com is launching a new area on its site called Ask BigNews, which combines news aggregation with elements of the social news site Digg. This is the first news aggregator to officially team up with Digg in the hopes of leading users to the most buzz-worthy news. (http://venturebeat.com/2008/02/06/ask-launches-bignews-a-buzz-based-news-aggregator-with-digg-integration 2/6)
Viacom’s MTV is using its Flux distributed social media platform to build many low-cost mini-sites supporting shows and themes. The uber-brand MTV “doesn’t even play much of a role.” The network is also returning to its music roots, aiming to supplant Yahoo Music and MySpace. (http://weblogs.jupiterresearch.com/analysts/card/archives/2008/02/modern_thinking.html 2/5)
Bebo, the U.K.-based online social network, is working on raising a round of funding with Allen & Co. Google and News Corp. are said to be potential investors, along with several strategic and institutional investors. But Google and News Corp. “are not about to buy” Bebo. (http://kara.allthingsd.com/20080207/bebo-for-a-billion-a-100-percent-chance-of-wrongness 2/7)
Microsoft is unveiling a series of next-generation advertising concepts designed to “anticipate behavior faster than the speed of thought.” One algorithm collects data from an image on a video screen, so a consumer can choose a product “like this one,” without having to key in any data. (http://www.informationweek.com/news/showArticle.jhtml;?articleID=206105074 2/6)
Microsoft’s Virtual Earth just added some serious 3-D modeling and animation chops. It bought Caligari, a small company that makes 3-D modeling and animation software. Terms were not disclosed. (http://www.techcrunch.com/2008/02/07/microsoft-buys-caligari-to-pimp-up-virtual-earth 2/7)
As anticipated by TechCrunch UK in early January, OpenID is welcoming some big new partners to the club - Microsoft, Google, Verisign and IBM (TechCrunch UK anticipated all but Microsoft). (http://www.techcrunch.com/2008/02/07/openid-welcomes-microsoft-google-verisign-and-ibm 2/7)

Matt Drudge is now posting in multi-media. The Drudge Report on Tuesday posted a video clip of U.S. presidential contender Hillary Clinton on YouTube suffering from a coughing fit. It quickly became the most-viewed item, garnering more than 300,000 views overnight. (http://blog.wired.com/27bstroke6/2008/02/matt-drudge-sta.html 2/6)
Spin magazine’s print subscriptions jumped in January at least in part because its pages were posted on the Web for free. Spin Digital, a digital version of the print rock-music monthly, made its debut on MySpace three weeks ago, allowing readers to listen to — and buy — music. (http://www.latimes.com/business/la-fi-spin7feb07,1,997944.story?ctrack=8&cset=true 2/7)
(Below) Yet another online comedy web site. They keep coming and coming and coming and coming. Sounding redundant yet?
Actor-comedian Damon Wayans is launching WayOutTV.com, offering videos produced by aspiring young comedians. The site is joining an increasingly crowded field that includes FunnyorDie.com and MyDamnChannel.com. Such sites “are yet to strike gold.” (http://www.latimes.com/business/la-fi-wayans7feb07,1,1100287.story?ctrack=7&cset=true 2/7)
Many entertainment execs “know nothing” about new media, writes Vanity Fair media columnist Michael Wolff. “This is partly because Hollywood is dominated by the over-60 set.” The Hollywood writers are on strike because of the sense that their business is “undergoing radical downsizing.” (http://www.vanityfair.com/culture/features/2008/03/wolff200803?currentPage=1 3/08)
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