9 Sep, 2011  |  Written by  |  under News

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SAN FRANCISCO – If you're on Twitter, expect to see more ads flowing through your stream of tweets in the next few months.

The ads will show up even if the promotion is from a company that a person hasn't chosen to follow. Until now, Twitter had only displayed ads that users were tracking.

As has been the case since Twitter began showing ads last year, the promotions must comply with the online messaging service's 140-character limit.

The ad expansion marks a major step in Twitter's attempt to make more money from its more than 100 million actively users. Twitter says the audience is now sending about 230 million tweets a day.

Twitter CEO Dick Costolo told reporters that the 5-year-old company still hasn't set a timetable to go public.

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8 Sep, 2011  |  Written by  |  under News


Yahoo CEO Carol Bartz gestured during her speech at the American Association of Advertising Agencies annual Media and Leadership Conference in San Francisco, California March 1, 2010. REUTERS/Robert Galbraith

Yahoo CEO Carol Bartz gestured during her speech at the American Association of Advertising Agencies annual Media and Leadership Conference in San Francisco, California March 1, 2010.

Credit: Reuters/Robert Galbraith


By Alexei Oreskovic and Edwin Chan

SAN FRANCISCO |
Wed Sep 7, 2011 3:10pm EDT

SAN FRANCISCO (Reuters) - Yahoo Inc Chairman Roy Bostock fired CEO Carol Bartz over the phone on Tuesday, ending a tumultuous tenure marked by stagnation and a rift with Chinese partner Alibaba.

Chief Financial Officer Tim Morse will step in as interim CEO, and the company will search for a permanent leader to spearhead a battle in online advertising and content with rivals Google Inc and Facebook.

Shares in Yahoo jumped 6 percent in after-hours trading to $13.7 after closing at $12.90 on the Nasdaq. They are scarcely higher than where they were when Bartz first took the reins in January 2009 with hopes of reviving stalled growth and competing with up-and-coming rivals.

On Tuesday, her efforts were abruptly halted after Bostock called with the bad news.

"I am very sad to tell you that I've just been fired over the phone by Yahoo's Chairman of the Board. It has been my pleasure to work with all of you and I wish you only the best going forward," the outspoken CEO said in a two-sentence email to employees obtained by Reuters.

The turn of events surprised few Wall Street observers who had tracked a rising torrent of criticism and watched revenue growth falter and sputter out.

Some analysts said Bartz's departure signaled the company had run out of options after failing to dominate the advertising and content markets and handing over its search operations to Microsoft Corp.

That partnership, under which Microsoft handles search for Yahoo's websites and keeps a portion of ad revenue, appears to favor the software company at Yahoo's expense.

STRATEGIC REVIEW

Yahoo is still one of the most popular destinations on the Internet but faces increasing competition from social networking service Facebook and from Google, which has a market value of $170 billion, 10 times more than Yahoo.

Yahoo said a new executive leadership council would help Morse in managing day-to-day operations as well as supporting "a comprehensive strategic review" to position the company for growth.

The decision to oust Bartz was reached by an unanimous vote of Yahoo's eight independent directors late last week, according to a person close to the company. Bartz, and co-founder Jerry Yang, who are also on the board, did not participate in the vote, the person said.

Yahoo has not hired investment banking advisors, but was likely to meet with various firms in the coming weeks, according to the person close to the company.

"It's hard to say what direction they are going to head. What is the next step for Yahoo? They went down the road of search, they went down the road of media, becoming a content company, they went down the road of advertising," said YCMNet Advisors CEO Michael Yoshikami.

"I'm not sure where they go right now. One wonders if this means that they might be ripe for a takeover."

At least three private equity firms had reached out to at least one media firm to gauge acquisition interest two weeks ago, said a second source with direct knowledge of the approaches who declined to be identified because the talks were preliminary.

CROWN JEWELS

Yahoo is worth about $16 billion, with much of that ascribed to its roughly 40 percent stake in China's Alibaba, the parent company of websites including Alibaba.com and Taobao. Yahoo also owns a stake in Yahoo Japan, along with Japanese mobile company Softbank.

Analysts estimate Yahoo's Asian assets are worth about $7-$9 of Yahoo's roughly $13 share price, based on a sum-of-the-parts valuation.

Relations between Yahoo and Alibaba have soured since Bartz took over, with Alibaba founder Jack Ma failing in an attempt to buy out its U.S. partner's stake.

A senior official at Alibaba Group said Bartz's departure was unlikely to solve the ownership issues.

"There won't be much of an impact in the relationship to be honest," the official said on the condition of anonymity. "We have to wait and see till we are working together with the new CEO."

The rocky relationship between the companies came to a head in May when it was revealed that Alibaba had abruptly handed Alipay -- one of Alibaba's crown jewels -- to a company controlled by Ma, apparently without Yahoo's knowledge.

"The immediate impact will not be much because I don't think Yahoo wants to sell its stake although Alibaba wants to buy it. It really depends on how Tim handles this, as in the past Carol has had a strong stance on this," said Hong Kong-based CLSA analyst Elinor Leung.

FALL FROM GRACE

Bostock voiced his public support in June for Bartz, a lightning rod for criticism from Wall Street, and known for her tough attitude and salty language.

Bartz's ouster capped a decade-long fall from grace for a company whose shares traded at more than $125 in January 2000 during the dotcom bubble -- but now languishes at about a 10th of that level.

Bartz arrived at Yahoo in January 2009 after a strong showing at software giant Autodesk with high hopes of turning around Yahoo, after Yang was widely thought to have botched a $47.5 billion proposed takeover by Microsoft, rebuffing that advance as too low.

Yahoo reported a slight decline in net revenue in the second quarter, as efforts to restructure its sales force caused disruptions.

Research firm eMarketer has projected that Facebook would overtake Yahoo this year to collect the biggest slice of online display advertising dollars in the United States.

Bartz, who had more than a year left on her four-year contract with Yahoo, was slated to host a Q&A at the Citi Technology Conference at 1250 pm ET in New York on Wednesday.

Bartz had reserved a room at the St. Regis hotel in Manhattan for Tuesday evening, but a hotel receptionist reached over the phone said the booking had been canceled.

(Additional reporting by Melanie Lee in SHANGHAI; Poornima Gupta and Sarah McBride in SAN FRANCISCO, Jennifer Saba in NEW YORK and Bill Rigby in SEATTLE; Writing by Edwin Chan; Editing by Carol Bishopric and Anshuman Daga)

original content on reuters

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SAN FRANCISCO – A federal grand jury in San Francisco has charged a San Antonio man with harassing a high-ranking Google executive with more than 20,000 Twitter posts, some of which were threatening.

According to court records, Gregory Calvin King was arrested in Texas last month and transported to San Francisco to face charges he threatened Google vice president Marissa Mayer, the company's first female engineer.

The indictment identified the alleged victim only as "M.M." but King's Twitter account shows him sending thousands of threatening posts to Mayer.

King faces up to seven years in prison if convicted. His arraignment date hasn't been set.

Google did not immediately respond to a request for comment.

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2 Sep, 2011  |  Written by  |  under News

SAN FRANCISCO – A federal judge on Thursday threw out a "grossly excessive" $1.3 billion verdict that Oracle won against SAP in a landmark intellectual property case, possibly setting the stage for another circus-like showdown between the two technology companies.

The decision was a surprising twist in a 4-year-old case that's been filled with them. There will be a new trial if Oracle Corp. formally rejects a lower $272 million award, which it has indicated it will do.

While Thursday's ruling was a victory for SAP AG, a German maker of business software, it's not necessarily as much of a setback for Oracle, which stands to humiliate SAP again even if it can't secure the higher award.

If the second trial is anything like last year's, expect more high-wire theatrics from Oracle's outspoken CEO, Larry Ellison, who has pilloried SAP for its amateurish theft of software and customer-support documents from password-protected Oracle websites. SAP has admitted that a now-shuttered subsidiary, TomorrowNow, committed the offense.

Oracle is the leading maker of database software, which helps companies organize their information. Its aggressive expansion into business applications has forced Oracle into a faceoff with SAP, the leader in that space.

Oracle argued that the stolen information helped SAP steal customers by offering similar services at cheaper prices. SAP argued that TomorrowNow wasn't that great at stealing customers with the information anyway and should have to pay only $40 million for accounts that SAP did manage to lure away.

The jury ultimately awarded Oracle more than 30 times that amount after a three-week trial last November. It was one of the largest verdicts in a case involving software-related theft and showed how severely jurors were willing to punish corporations for intellectual-property theft from rivals.

Although the amount was less than what Oracle asked for, it was far more than what SAP had budgeted. SAP had set aside $160 million to pay anticipated damages and had already spent $120 million of that in payments to Oracle's lawyers. The punishment amounted to more than half of SAP's total profit in the prior year.

Thursday's decision by Judge Phyllis Hamilton in in U.S. District Court in Oakland, Calif., is a major victory for SAP. She said the size of the penalty was "contrary to the weight of the evidence, and was grossly excessive."

Oracle can now choose whether to accept the lower award of $272 million or proceed with a new trial before a different jury. The $272 million amount was based on an earlier estimate from an Oracle expert on what profit Oracle lost and SAP gained.

Whatever happens, Oracle has already scored repeated public relations wins because of the case.

The case gave Ellison a platform to taunt another foe, former SAP CEO Leo Apotheker, who is now CEO of Hewlett-Packard Co. Oracle is increasingly battling HP in the market for computer servers, straining a decades-long technology partnership.

Oracle, which is based in Redwood Shores, Calif., tried to summon Apotheker to testify at the trial, and the company pushed the image of a "Where's Waldo?"-type manhunt involving private investigators and a vanished executive. Apotheker wasn't spotted within the jurisdiction of the Oakland court in time, and he didn't appear.

HP, based in Palo Alto, continually skirted questions about Apotheker's whereabouts at the time, presumably because there was little to be gained in allowing him to testify. HP accused Oracle of harassing its new executive and said Oracle had ample time to question Apotheker in an earlier deposition.

SAP said it was very gratified with Thursday's decision.

"We believed the jury's verdict was wrong and are pleased at the significant reduction in damages," the company said in a statement. "We hope the court's action will help drive this matter to a final resolution."

Oracle said it plans to fight for the full amount it was awarded.

"There was voluminous evidence regarding the massive scope of the theft, clear involvement of SAP management in the misconduct and the tremendous value of the (intellectual property) stolen," Oracle said. "We believe the jury got it right and we intend to pursue the full measure of damages that we believe are owed to Oracle."

Oracle's stock fell 23 cents, or 0.8 percent, to close Thursday at $27.84. SAP's stock fell 75 cents, or 1.4 percent, to $53.76.

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31 Aug, 2011  |  Written by  |  under News

TOKYO – Sony says it will start selling a head mounted display that provides a 3-D theater of music videos, movies and games, targeting people who prefer solitary entertainment rather than sitting in front of a TV with family or friends.

Sony Corp. said Wednesday that the 60,000 yen ($800) "HMZ personal 3-D viewer" is set to go on sale Nov. 11 in Japan, and is planned for the U.S. and Europe, perhaps in time for Christmas, although dates have not yet been set.

Resembling a futuristic visor, HMZ, which stands for "head mounted display," is worn like chunky goggles-and-earphones in one.

The footage before the viewer — a music video of a Japanese singer in the demonstration for reporters in Tokyo — is crystal-clear and feels like peering into a dolls house in which a real-life tiny singer is moving.

It seems unlikely that most people — or even technology enthusiasts — will want to buy a product that involves sitting alone and wearing a little helmet. The HMZ might not be Sony's long awaited answer to Apple's iPod or iPad but just another quirky device packed with cutting-edge technology that is headed for a limited niche following.

A 3-D wearable gaming machine Virtual Boy from Nintendo Co., which went on sale in the 1990s, bombed, partly because of the bulky headgear required as well as the image being all red.

Sony's latest product is far more sophisticated. Sony officials said the gadget delivers the immersive experience of a home-theater, or the equivalent of sitting in one of the best seats of a movie theater.

The machine, which hooks up to your Blu-ray disc player or your game machine, is targeting people who want to enjoy movies or games alone.

It is not recommended for people 15 years old and younger because some experts believe overly stimulating imagery is not good for teenagers whose brains are still developing, according to Shigeru Kato, a Sony vice president.

On the plus side, consumers are growing more accustomed to 3-D these days, with the arrival of 3-D TVs and game machines. Kato noted the most popular movies last year, including "Avatar" and "Toy Story 3," were 3-D.

HMZ uses Sony's own OLED screen, a relatively new kind of display that relays superb image quality and color, compared to the more prevalent liquid crystal and plasma displays used in laptops and flat-panel TVs.

Kato said the major challenge had been making a very small display without compromising image quality.

___

Follow Yuri Kageyama on Twitter at http://twitter.com/yurikageyama

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