30 Jun, 2011  |  Written by  |  under News


The home page for myspace.com is seen in this screenshot taken June 29, 2011. REUTERS/Handout

The home page for myspace.com is seen in this screenshot taken June 29, 2011.

Credit: Reuters/Handout


By Jennifer Saba

NEW YORK |
Wed Jun 29, 2011 6:28pm EDT

NEW YORK (Reuters) - News Corp has sold Myspace for $35 million, a fraction of what it paid for the once-hot social media site even as a new generation of Web-based start-ups is enjoying sky-high valuations.

Advertising company Specific Media will team with the singer Justin Timberlake to acquire Myspace in a deal that caps a tumultuous period of ownership under Rupert Murdoch's News Corp, which swooped in to buy Myspace for $580 million in 2005.

At the time, Myspace was among the world's most popular websites, and News Corp's success in beating out rival Viacom Inc in a bidding war was viewed as a major victory for Murdoch. Since then, however, Facebook has eclipsed Myspace in popularity, and the deal has become a hard lesson in what can happen when a traditional media company imposes its will on a start-up.

It also shows how quickly audience -- and investor -- tastes can shift in the world of social networking. Indeed, Wednesday's deal contrasts sharply with the current frenzy over social media companies, including LinkedIn, Twitter and Groupon, among investors looking for the next big thing.

Another of the hot start-ups, Zynga, an online social game company, plans to raise up to $2 billion in an initial public offering that could be filed by Thursday, valuing the company at $20 billion

"This is a mistake that will repeat itself," James McQuivey, an analyst with Forrester Research, said of the Myspace saga. "I'm not sure that someone being pushed on by early round investors, someone reading their own press, which is praising them, will stop and say, 'Wait, is this a one-year fad, a two-year fad? Or is this a five-year to ten-year change in the way things are done?'"

The Myspace transaction calls for News Corp to retain a minority stake in the website, the companies said in a statement, confirming a deal that was reported earlier.

Specific Media, which specializes in digital advertising, did not disclose financial terms. It announced, however, that Timberlake -- who happens to have played Facebook adviser and investor Sean Parker in the movie "The Social Network" -- would take an ownership stake and serve a "major role" in developing a strategy for Myspace.

A source familiar with the transaction said the deal is worth $35 million and is a mix of cash and stock. News Corp will retain about 5 percent, the source said.

Additionally, more than half of Myspace's 500-strong workforce is expected to be laid off because of the sale, the source said.

The deal comes after a four-month bidding process in which a number of different possible buyers surfaced, including other social networking sites and private equity firms. The auction had been expected to fetch in the neighborhood of $100 million.

In the end, the sale serves as the latest example of what can happen to a once coveted company with a rocket-like trajectory that quickly loses its luster as competitors zoom past it in popularity.

Founded in August 2003 by Chris De Wolfe and Tom Anderson, Myspace was conceived as a way for friends and fans to connect with one another as well as with their favorite bands and artists.

Myspace, a kind of musical version of pioneer social network site Friendster, fast became wildly popular with teenagers and young adults, who spent hours designing their own pages with their favorite digital wallpaper, posting photos and adding friends.

At its peak in 2008, Myspace attracted nearly 80 million people in the United States, almost double that of Facebook.

The growth was too fast and Myspace had trouble scaling the number of users who were flocking to the site. Meanwhile Facebook had opened up its platform to third-party developers, such as Zynga and its popular FarmVille game. That attracted more people and kept them on the site.

By 2011, the number of U.S. visitors to Myspace fell to about 40 million while those visiting Facebook totaled about 150 million, according to online measurement firm comScore.

For the quarter ended March 2011, News Corp reported a segment operating loss of $165 million, mainly due to declines at Myspace.

(Additional reporting by Paul Thomasch; Editing by Bernard Orr, Steve Orlofsky and Matthew Lewis)

original content on reuters

29 Jun, 2011  |  Written by  |  under News

NEW YORK – Online search leader Google Inc. is taking yet another stab at social networking, as it tries to go up against Facebook in this wildly popular and lucrative segment of the Internet. This time the project is called Google+ and it aims to make online sharing more like real life.

"We think people communicate in very rich ways," said Vic Gundotra, senior vice president of engineering at Google. "The online tools we have to choose from give us very rigid services."

Other social networking tools make selective sharing within small groups difficult. They don't allow for the nuances that people are used to in offline communication and because they call so many acquaintances "friends," said Gundotra in a blog post announcing the service.

Many Facebook users, for instance, find it difficult to limit their status updates to small groups of people so that their coworkers aren't exposed to party photos or their parents aren't privy to flirtatious posts on their "wall." Though Facebook has tried to address this with a much-hyped "Groups" feature, it's not clear how many people use it.

Gundotra's criticism seems aimed squarely at Facebook, the world's largest online social network. Facebook has become synonymous with online sharing since its founding seven years ago.

In a prepared statement, Facebook said only that "we're in the early days of making the web more social, and there are opportunities for innovation everywhere."

Google, which dominates Internet search with a firm hold on two-thirds of the U.S. market, has been experimenting with different social tools since late 2009 with limited success. "Buzz" was one major mishap. The product was a social network attached to Google's popular Gmail service, and it wound up exposing email contacts that users did not want to share. Google eventually agreed to submit to independent audits of its privacy controls every other year for the next two decades as part of a Federal Trade Commission settlement.

Google shut down another attempt at online sharing, Google Wave, last August after unveiling it with much fanfare in 2009. The service, which let users chat, share files and collaborate on documents in real time, didn't gain enough fans.

More than a year in the works, the project Google unveiled Tuesday lets users share things with smaller groups of people through a feature called "Circles." This means only college buddies, say, or your favorite co-workers can see the photos, links our updates that you post.

Another feature called "Sparks" aims to make it easier to find online content you care about, be it news about surfing or barbecue recipes. You can then share this with friends who might be interested in it. In an online video, Google calls it "nerding out" and exploring a subject together.

There's also a group messaging service called "Huddle" and a feature that lets users instantly upload photos that they take with mobile phones. The photos are stored in a private photo album on Google's remote servers, and users can access them and share them as they see fit.

Altimeter Group analyst Charlene Li has high hopes for the friend grouping feature. She said that her biggest pet peeve with Facebook is its existing friend management tools. She noted that millions of people already use Google to share things with others via email, and Google+ looks like a natural extension of this type of sharing, making it more functional and organized.

"I think Facebook is going to have to up its game," she said.

Google+ is undergoing what the company calls a "field trial," so it's accessible by invitation only and not yet available to the public. The company declined to say when it'll be more widely available.

Lou Kerner, a social media analyst with Wedbush Securities, believes the game is over in the competition to become the world's global social network. With 700 million users, Facebook has won, he said.

There's a lot more to the social Web than just creating a successful social network, though, and Kerner thinks that with Google+ the search leader is trying to make its existing product offerings more social.

"I don't think they're seeing this as a direct competitor to Facebook," he said.

Google+ does have its skeptics.

"People have their social circles on Facebook," said Debra Aho Williamson, principal analyst with research firm eMarketer. "Asking them to create another social circle is challenging."

And Google is still best known for its flagship service, online search.

"The whole idea of a Google social network...they've been throwing stuff against the wall for several years and so forth nothing has stuck." Going to Google to be social, she added, is like "going to Starbucks for the muffins. Or, for that matter, going to Facebook for search."

__

AP Technology Writer Rachel Metz in San Francisco contributed to this story.

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24 Jun, 2011  |  Written by  |  under News


Oracle CEO Larry Ellison talks during his keynote address at Oracle Open World in San Francisco, California September 22, 2010. REUTERS/Robert Galbraith

Oracle CEO Larry Ellison talks during his keynote address at Oracle Open World in San Francisco, California September 22, 2010.

Credit: Reuters/Robert Galbraith


By Jim Finkle

BOSTON |
Thu Jun 23, 2011 6:59pm EDT

BOSTON (Reuters) - Oracle Corp posted disappointing quarterly results particularly in hardware sales, sparking concerns about a sharper-than-expected slowdown in tech spending and sending its shares down 6 percent.

Oracle's earnings came on the same day Micron Technology reported quarterly revenue below expectations, and the combination raised fears about how well the technology sector is holding up in the face of shaky economies, especially in Europe.

Tech investors pay attention to Oracle's earnings as its fiscal quarters are out of sync with most others and it is the first to give a glimpse of business conditions in the most recent months, in this case April and May.

Trip Chowdhry, an analyst with Global Equities Research, said Oracle's results suggest spending on technology has slowed down. "Any company that is in technology is going to get impacted," he said.

While Oracle's quarterly profit, excluding items, rose to 75 cents a share and surpassed expectations by nearly 6 percent, investors had hoped for a more impressive beat. Over the past six quarters Oracle has exceeded profit estimates by an average of 10 percent.

"Traditionally, in the fourth quarter they usually beat by a huge margin. This time they just managed just to beat," Chowdhry added.

Its fiscal fourth quarter revenue rose 13 percent from a year earlier to $10.8 billion, in line with the average analyst forecast of $10.75 billion.

The world's No. 3 software maker reported that fourth-quarter new software sales rose 19 percent from a year earlier to $3.7 billion. That beat its own forecasts of 4 percent to 14 percent growth. New sales, it said, should be up 10 percent to 20 percent in the first quarter.

Yet sales in its hardware division, which it acquired with its purchase of Sun Microsystems, dropped 6 percent to $1.2 billion.

"The story is the software side was decent, the licensing was decent but the hardware was disappointing," said Kevin Caron, a market strategist with Stifel, Nicolaus & Co.

During a conference call after the earnings release, analysts grilled Oracle executives on the drop in hardware sales.

President Safra Catz said that they fell because Oracle had walked away from deals that would have been unprofitable. "We'd just rather make money than make revenue," Catz said, adding with a sarcastic tone, "We're funny that way."

Oracle said it expected first quarter hardware revenue to be in the range of down 5 percent to up 5 percent.

Oracle shares fell 4 percent to $31.15 in extended trade, down from their Nasdaq close of $32.46.

They were down more than 6 percent prior to the conference call, during which the company issued its first-quarter forecasts.

It said it expects to post first quarter profit, excluding items, of 45 cents to 48 cents per share, in line with the average analyst forecast of 46 cents.

The company also forecast that non-GAAP revenue will rise between 9 and 12 percent from a year earlier to between $8.3 billion and $8.5 billion. Analysts were expecting revenue of $8.3 billion.

(Additional reporting by Bill Rigby, David Gaffen, Jennifer Saba and Liana B. Baker; Editing by Bernard Orr)

original content on reuters

6 Jun, 2011  |  Written by  |  under News

LONDON – Nearly 180 passwords belonging to members of an Atlanta-based FBI partner organization have been stolen and leaked to the Internet, the group confirmed Sunday.

The logins belonged to members of the local chapter of InfraGard, a public-private partnership devoted to sharing information about threats to U.S. physical and Internet infrastructure, the chapter's president told The Associated Press.

"Someone did compromise the website," InfraGard Atlanta Members Alliance President Paul Farley said in a brief email exchange. "We do not at this time know how the attack occurred or the method used to reveal the passwords."

Copies of the passwords — which appear to include users from the U.S. Army, cybersecurity organizations and major communications companies — were posted to the Internet by online hacking collective Lulz Security, which has claimed credit for a string of attacks in the past week.

In a statement, Lulz Security also claimed to have used one of the passwords to steal nearly 1,000 work and personal emails from the chief executive of Wilmington, Delaware-based Unveillance LLC.

Lulz Security claimed it was acting in response to a recent report that the Pentagon was considering whether to classify some cyberattacks as acts of war.

The FBI said Sunday that it was aware of the incident and that steps were being taken to mitigate the damage. Farley said InfraGard's website had been taken down and that members had been advised to change their passwords and beware of further attacks.

Farley added that his group — a volunteer organization — had had no previous involvement with Lulz Security, which describes itself as a collective of hackers who attack weakly-protected websites for fun. Lulz is a reference to Internetspeak for "laugh out loud."

The collective appears to have had a busy week.

Earlier Sunday, Nintendo said it had been targeted in a recent online data attack claimed by Lulz Security. Nintendo said no personal or company information was lost.

On Thursday, Lulz Security boasted of a major breach which saw as many as tens of thousands of Sony users' details posted to the Internet.

The group has also claimed credit for defacing the PBS website after the public television broadcaster aired a documentary seen as critical of WikiLeaks founder Julian Assange.

Emails and other messages seeking comment from the group over the past few days have gone unanswered, although it maintains an active presence on microblogging site Twitter, where it taunts its opponents and promises more hacks.

___

Online:

InfraGard: http://www.infragard.net/

Unveillance: http://www.unveillance.com/

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2 Jun, 2011  |  Written by  |  under News

BEIJING – China denied it supports hacking activities and said it is part of global efforts to combat computer security threats Thursday, a day after Google disclosed some of its email users suffered hacking attacks that orginated within the country.

Google disclosed Wednesday that personal Gmail accounts of several hundred people, including senior U.S. government officials, military personnel and political activists, had been breached.

Google traced the origin of the attacks to Jinan, China, the home city of a military vocational school whose computers were linked to an assault 17 months ago on Google's systems.

China is firmly opposed to activities that sabotage Internet and computer security, including hacking, Foreign Ministry spokesman Hong Lei told reporters Thursday.

Hong said hacking was a global problem and Chinese networks had also been targeted by hackers, but he gave no specifics. He said China was working to crack down on the problem, but he didn't respond when asked whether it would investigate this specific incident.

"Allegations that the Chinese government supports hacking activities are completely unfounded and made with ulterior motives," Hong said.

Google said all of the hacking victims have been notified and their accounts have been secured.

This time around, the hackers appeared to rely on tactics commonly used to fool people into believing they are dealing with someone they know or a company that they trust. Once these "phishing" expeditions get the information needed to break into an email account, the access can be used to send messages that dupe other victims.

China's Ministry of Industry and Information Technology, which has a hand in regulating the Internet, referred questions about the allegations to another regulatory agency, the State Council Information Office, which asked that questions be faxed and then did not respond.

The Pentagon said Thursday it had very little information since the reported breaches involved personal accounts rather than government email. And since the accounts were not official, the U.S. Department of Defense was unaware if the targeted individuals were defense employees, the statement said.

The latest attacks aren't believed to be tied to the more sophisticated assault last year. That intrusion targeted the Google's own security systems and triggered a high-profile battle with China's Communist government over online censorship.

The tensions escalated amid reports that the Chinese government had at least an indirect hand in the hacking attacks, a possibility that Google didn't rule out.

The previous break-in prompted Google to move its Chinese-language search engine off the mainland so it wouldn't have to censor content that the government didn't want the general public to see. The search engine is now based in Hong Kong, which isn't subject to Beijing's censorship rules.

China's official Xinhua News Agency blasted Google in an unsigned commentary on Thursday saying the company "provided no solid proof" to support its claims that the hack attacks originated in China.

Xinhua said Google's compaints had "become obstacles for enhancing global trust between stakeholders in cyberspace."

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