Archive for March, 2007

Articles of the Day

Posted in Internet, Digital Media & Software, News on March 23rd, 2007 by daveliu

Advertisers Responsive To NBC/News Corp.’s ‘Largest Ad Platform On Earth’ - Promising online reach and scale combined with premium programming, the unnamed NBC/News Corp. joint video-sharing venture quickly tapped into existing relationships to come up with a slate of blue-chip advertisers for yesterday’s launch announcement, including General Motors and Intel.

In A First, Yahoo Appoints VP To Fight Click Fraud - The man who used to represent Yahoo in its click-fraud litigation is now the advertiser’s advocate. In a first, Yahoo named Reggie Davis vice president of market quality, overseeing the fight against click fraud and the increase of transparency on Yahoo’s search listings marketplace.

Google King Of All Media? An OMMA Debate - Will Google take over every aspect of media as we know it–online, offline, mobile, out-of-home, in-store, and forms that haven’t yet emerged–or will it find an entirely new game? A panel of pundits debated the question earlier this week at OMMA Hollywood. (Bonus video coverage).

Competition In Online Travel Forces Site Upgrades - The fiercely competitive online travel bookings market is resulting in a flurry of “value-added” site upgrades–ranging from Zagat hotel reviews on Priceline to branded “TLC” (tender-loving care) on Orbitz.

Horan: IAC’s Local Sites To Be Tightly Integrated - Expect IAC sites like Citysearch, Ask.com, Evite and others to begin working more closely together, says Peter Horan, who joined the company as CEO of its Media and Advertising group last month. As the keynote speaker at the Kelsey conference, Horan sought to diagnose the problem of local search companies. The “nuclear explosion” of digital contenthas given branded search a greater competitive position because it can offer a greater series of actions connected to a search - such as a video preview of a restaurant or movie— with fewer clicks than most local sites offer.

Limelight Files for $201 million IPO - Limelight Networks Inc., a Tempe, Ariz.-based provider of a network for delivering live and on-demand digital media online, has filed for a $201.25 million IPO.

Starz Sues Disney Over Web Movie Distribution - Libery Media Holding Corp., the folks behind DirecTV and other satellite services, said it was suing The Walt Disney Corp. for allowing movie download services to sell titles the media giant licensed exclusively to its cable network, Starz Entertainment. Starz says that under a 2005 licensing agreement, Disney is barred from selling certain films over the Web, such as the blockbuster “Pirates of the Caribbean: Dead Man’s Chest,” for a certain amount of time, per an exclusivity clause in the 2005 contract. Since 1993, Starz has paid Disney more than $1 billion for such rights, according to the suit.

Microsoft Curbs Soapbox Sign-Ups Due To Piracy - Microsoft is closing the doors of its Soapbox video service to new users until it implements better safeguards to keep its users from uploading copyrighted materials. This means the establishment of content-filtering technology, now being built by Audible Magic, a service that’s also used by News Corp.’s online properties.

Don’t Count Out YouTube Just Yet - Google’s YouTube appears to be facing challenges on several fronts. Viacom filed a $1 billion lawsuit against the site, while NBC and News Corp entered into a joint venture designed to rival it. But not everyone thinks that the moves spell doom for the video-sharing site. Brokerage house Merrill Lynch this morning issued a report predicting that the media companies eventually will distribute on the Google-owned site.

Earnings: Ziff Davis 4Q Profits Rise 70 Percent - Crediting its digital businesses, Ziff Davis reported that 4Q earnings before taxes and interest rose 70 percent to $14.3 compared to $8.4 million for the same period a year ago. Earnings in the digital businesses alone gained 144 percent for the quarter. The company said that the closing of Sync and ExtremeTech magazines saved the company $5 million in production costs.

Study Touts Video Ads Over Image Ads - While it seems reasonable enough to assume that video ads are more effective than single image ones, DoubleClick has taken the trouble of attempting to quantify that view. In its analysis of more than 300 online video ad campaigns that were placed by more than 130 advertisers through last June to September, DoubleClick found that click rates are higher for video ads and that such ads are more likely to generate greater interaction. Still, the percentages do seem fairly low, suggesting that ultimately, neither form is all that appealing.

EA Buys 20 Percent Of Korean Online Game Maker Neowiz, For About $105 Million - Electronic Arts, the world’s biggest game publisher, has bought a stake in South Korea’s Neowiz for about $105 million and jointly develop games for Asian markets, reports Reuters. When the deal closes, EA will become Neowiz’s second biggest shareholder after the Korean firm’s CEO, with about 19 percent of common stock equivalent.

Take-Two Examines Possible Sale of Company - Take-Two Interactive Software, the video game publisher whose marketplace impact has been overshadowed by its corporate upheaval, said yesterday that it was weighing options including a possible sale of the company, prompting a surge in its stock price.

Ticketmaster Does Another Music Investment: Echomusic; Buys Majority - Ticketmaster, part of IAC, has made another major investment in an online music firm: it has bought a majority in Echomusic, an online fan club and brand management company based in Nashvillle, TN. This follows Ticketmaster’s $13.3 million investment in music community site iLike.com.

Deals of the Day

Posted in General, Internet, Digital Media & Software on March 23rd, 2007 by daveliu

Reef Point Systems Inc., a Burlington, Mass.-based provider of gateway platforms and solutions for fixed-mobile convergence networks, has raised $25 million in its second round of funding since a 2005 venture recap. One Equity Partners led the deal, and was joined by return backers American Capital Strategies and JVP. www.reefpoint.com  

Tribold, a London-based developer of product management software for communications service providers, has raised $15 million in Series B funding. Espirit Capital Partners was joined by return backer Eden Ventures. www.tribold.com  

Serveron Corp., a Hillsboro, Ore.-based provider of technology and services to monitor electric utility assets, has raised $5 million. Return backers include El Dorado Ventures, Nth Power, Cascadia Pacific Management, Oregon Life Sciences, Perseus, Siemens Venture Capital and Ventures West. The company has raised around $48 million in total VC funding since its 1999 inception. www.serveron.com  

Bulldog Solutions, an Austin, Texas-based provider of lead optimization and lead management services, has raised $5 million in VC funding from SSM Partners. www.bulldogsolutions.com  

Fortress Technologies Inc., an Oldsmar, Fla.-based provider of wireless network security solutions, has raised $4.17 million in Series E funding led by Liberty Partners, according to a regulatory filing. The company previously had raised around $45 million in VC funding. www.fortresstech.com  

Hellman & Friedman has agreed to acquire Kronos Inc. (Nasdaq: KRON), a Chelmsford, Mass.–based provider of human capital management solutions. The deal is valued at approximately $1.8 billion, with Kornos stockholders to receive $55 per share. JMI Equity will also participate on the equity tranche, while Jefferies Broadview is advising Kornos on the sale. www.kronos.com  

Vertrue Inc. (Nasdaq: VTRU), a provider of Internet direct marketing services, has agreed to be acquired by One Equity Partners, Oak Investment Partners and Rho Ventures. The deal is valued at a total of $800 million, with Vertrue stockholders to receive $48.50 per share (21% premium to price prior to first media report of a possible buyout). Jefferies Broadview advised Vertrue on the deal, while the equity consortium will receive debt financing from Lehman Brothers and JPMorgan. www.vertrue.com  

Limelight Networks Inc., a Tempe, Ariz.-based provider of a network for delivering live and on-demand digital media online, has filed for a $201.25 million IPO. It plans to trade on the Nasdaq under ticker symbol LLNW, with Goldman Sachs and Morgan Stanley serving as co-lead underwriters and Jefferies as senior co-manager.  Limelight raised $130 million in VC funding last year from GS Capital Partners (45.3% pre-IPO stake) and Oak Investment Partners (9.2%). www.limelightnetworks.com  

Netezza Corp., a Framingham, Mass.-based provider of enterprise-class data warehouse appliances, has filed for a $100 million IPO. It plans to trade on the Nasdaq under ticker symbol NTZA, with Credit Suisse and Morgan Stanley serving as co-lead underwriters. It has raised around $83 million in VC funding since its 2000 inception, from firms like Matrix Partners (20.75% pre-IPO stake), Charles River Ventures (19.59%), Battery Ventures (16.82%), Sequoia Capital (15.2%), Meritech Capital Partners (6.8%) and Orange Ventures. www.netezza.com  

Hewlett-Packard (NYSE: HPQ) has agreed to acquire Tabblo Inc., a Cambridge, Mass.-based provider of photo sharing and printing solutions. No financial terms were disclosed for the deal, which is expected to close within the next few weeks. Tabblo was launched last year with venture funding from Matrix Partners. www.hp.com www.tabblo.com

Articles of the Day

Posted in Internet, Digital Media & Software, News on March 22nd, 2007 by daveliu

Agencies Warned: In Digital Media, Change Or Die - Developments in digital marketing and media are happening at such breakneck speed that marketers must prepare to navigate them–or be left behind. The same goes for the agencies that advise them. And the consensus among a panel of experts appearing at OMMA Hollywood earlier this week is that agencies are not ready, not by a long shot.

People Engage More With Small, Branded, Well-Lit Communities - What smaller online communities lack in size they can often make up for in stronger engagement levels, reports Communispace, in a study of 66 private online communities. What’s more, consumers prefer to participate in fully transparent and branded ones.

Semel’s Smiling As Research Firm Forecasts Yahoo Comeback - Terry Semel was all smiles at an industry confab yesterday over the effects of Panama, as a new report forecasts a comeback for the Yahoo portal based on the strength of Panama and expansions by the portal into social-networking, video and mobile services.

Pixsy Offers Widget Delivering Thumbnail Feeds - Pixsy Corp has released a widget allowing Web site publishers, bloggers and others to grab an automated thumbnail feed and add it to their home page for no fee. The company’s media search platform already powers private label image and video search engines.

Google Offers New Customizing Option - Google has launched a new customizing option so consumers can have a panoramic, ever-changing background set against its hugely popular search box. Users can either have the sparse logo and search box remain as it has always been, or they can choose a background that morphs along with the time of day and the outside weather.

Online Advertisers Bet on Video but Count on Display - Nearly all Web sites with streaming content are monetizing it with video advertising, according to a survey of sites in the Advertising.com network. While the network does not represent all Web publishers, its reach makes it a good indicator of overall trends. Not only did all video streaming sites surveyed say that they run video ads, 80% more sites plan to suppport video in 2007 than did in 2006. Asked which online ad formats would lead revenue growth, respondents overwhelmingly chose large rectangles. Video was far down the list.

Massively Multiplayer Games Challenge Marketers - In-game advertising is estimated to reach $589 million in 2010, up from $182 million in 2006, according to a January 2007 study by Oppenheimer & Co. that examined data from IDC, Yankee Group and Parks Associates. This would all seem to be great news for marketers. The oft-sought-after 18-34-year-old male demographic is heavily into gaming. MMOGs offer the potential for viral communication, both in the games themselves and in dedicated message boards. Despite the heady estimates, eMarketer senior analyst Paul Verna says that marketers need some perspective when considering how to associate their brands with MMOGs.

NBC Unveils Social Net, New Online Content - NBC is adding a few degrees to its year-old TV 360 internet strategy. At a meeting with advertisers Thursday, NBC will discuss plans to develop a social networking tool, revamp its media player and unveil new online content related to its summer series, The Hollywood Reporter says. Starting in June, NBC.com will allow users to embed videos of the networks’ shows on their own sites, create profile pages that will let viewers upload their own videos, launch fan groups and share viewing suggestions from like-minded users through its NBC Rewind media player.

NBCU-News Corp. Announce Video-Sharing JV; AOL, MSN, MySpace, Yahoo Will Distribute - NBC Universal and News Corp. say the new venture (which they call a strategic alliance) will debut with thousands of hours of full-length programming, movies and clips—and AOL, MSN, MySpace and Yahoo as initial distribution partners. Those sites reach 96 percent of the monthly U.S. unique users, the companies say, and their users will have unlimited access to the content. They will be able to share, embed, mix and mash.

CD Sales Plunge As Music Shift Accelerates - In the tech circles, bloggers are shouting “hooray” at the news that CD sales for the first three months of the year declined 20 percent from a year earlier. This latest sign indicates that the seismic shift in the way consumers get music is accelerating. Sadly for the music industry, CD sales still represent 85 percent of all sales, despite the decline. According to The Wall Street Journal, music retailers are already going the way of the dinosaur: approximately 800 retail stores closed nationwide last year.

Deals of the Day

Posted in General, Internet, Digital Media & Software on March 22nd, 2007 by daveliu

Glu Mobile Inc., a San Mateo, Calif.-based mobile game publisher, priced 7.3 million common shares for $11.50 per share ($10-$12 range), for an IPO take of approximately $84 million. The IPO gives Glu Mobile an initial market cap of around $327 million. It will trade on the Nasdaq under ticker symbol GLUU, while Goldman Sachs and Lehman Brothers served as co-lead underwriters. The company had raised around $57 million in VC funding since its 2001 inception as Sorrent, from firms like New Enterprise Associates, BA Venture Partners, Globespan Capital Partners, Granite Global Ventures and Sienna Ventures. http://www.glu.com/

Legend Silicon Corp., a fabless semiconductor company that manufactures the core IC for digital broadcasting and broadband transmission, has raised $40 million in Series D funding led by Intel Capital. Legend has offices in both Silicon Valley and China , with past funding from Intel, Motorola Ventures, SUNeVision Holdings, Tsinghua Tongfang Co. and Dragon Venture. http://www.legendsilicon.com/

ScanR Inc., a Palo Alto, Calif.-based company that enables camera phones and digital cameras to scan, copy and fax, has raised $8 million in Series B funding, according to a regulatory filing. Adobe Systems and JAIC American were joined by return backers Trinity Ventures and Thomvest International. http://www.scanr.com/

Azea Networks Ltd., a UK-based provider of optical networking solutions for submarines, has secured $6 million of a $15 million Series D round, according to a regulatory filing. TVM Capital and Lago Venture Fund were joined by return backers Accel Partners, Atlas Venture and Quester Management. http://www.azea.net/

Quantcast Corp., a San Francisco-based Internet ratings startup, has raised around $5.7 million in Series A funding, according to a regulatory filing. Backers include The Founders Fund and Revolution Capital. The company is run by former SearchSpace CEO Konrad Feldman. http://www.quantcast.com/

Teracent Inc., a Foster City, Calif.-based online advertising startup, has raised around $5 million in Series A funding led by New Enterprise Associates, according to a regulatory filing. http://www.teracent.com/

HipCricket, a Bellevue, Wash.-based mobile marketing firm, has raised $2 million in additional Series A funding. This brings the round total to $3 million, from Broadmark Capital and undisclosed angels. http://www.hipcricket.com/

Snowdon Inc., a New Brunswick, N.J.-based drug startup, has raised $500,000 from Foundation Venture Capital Group, a firm formed last year to support startups developing technology from the University of Medicine and Dentistry of New Jersey. http://www.snowdonpharma.com/

Kongregate, a San Francisco-based online gaming startup, has launched with an undisclosed amount of seed funding from angels like: Reid Hoffman, Joe Kraus, Jeff Clavier and Richard Wolpert. http://www.kongregate.com/

Bertelsmann is considering a bid for Thomson Corp. subsidiary Thomson Learning, according to The Financial Times. Such a deal could be valued at up to $5 billion. Bertelsmann might partially finance the deal via a €1 billion private equity platform in announced yesterday, in partnership with Citigroup Private Equity and Morgan Stanley Principal Investments. (Thomson Corp. is the parent company of PE Week Wire publisher Thomson Financial).

Guardian Media Group reportedly will receive three bids for Trader Media, which publishes auto classified magazine Auto Trader and related online products. The deal is expected to be worth between Gbp1 billion and Gbp1.5 billion, with suitors including The Blackstone Group, Apax Partners and Cinven. Candover initially expressed interest, but dropped out earlier this year.

Affiliated Computer Services Inc. (NYSE: ACS) has been hit with two shareholder lawsuits, related to its agreed-upon $6 billion buyout by Cerberus Capital Management and ACS founder and chairman Darwin Deason. The complaints argue that the company did not adequately search out the best possible price. http://www.acs-inc.com/

SouFun.com, a Chinese real estate website operator, is planning a $200 million IPO for later this year, according to a Dow Jones interview with company CEO Vincent Mo. The offering would be either in China or on the Nasdaq. Telstra Corp. of Australia holds a 51% ownership position in SouFun, while IDG Venture Capital holds a 14.7% stake. The remainder is held by Mo and company management.

Articles of the Day

Posted in Internet, Digital Media & Software, News on March 21st, 2007 by daveliu

Rx For Health Marketers: Gold Mine In Reaching Seniors Online - A virtual gold mine awaits online marketers in the health care sector–if they effectively reach seniors ages 50 and up, according to findings from a new study conducted by media agency GroupM and research firm Millward Brown.

Agencies Need To Optimize Hyper-Personalized Media Future For Clients - Agencies are scrambling to address client challenges in an increasingly hyper-personalized media landscape, says Bant Breen, president, Interpublic Futures Marketing Group, speaking at the OMMA conference. To help marketers navigate the world of emerging media, agencies need to structure the media landscape.

Google CPA: An Answer to Click Fraud? - So Google is moving into the cost-per-action (CPA) business, which means marketers will now only pay for those ads which lead to a specific action, such as a phone call for a service provider, or a sale for a retailer. The new service could be Google’s answer to click fraud, which occurs when a business rival deploys an automated program to repeatedly click on a marketer’s ad to deplete the company’s ad budget. If advertisers are only paying for ads that lead to a sale, there’s no sense in sending out click bots, is there?

DoubleClick: Video Ads Get Boost From Web Surfers - Video spots just got a bit of good news. According to new research from DoubleClick, 8% of Web surfers are interacting with video ads. The interaction rate is the “all in” metric, including the sum total of all interactions that people have with video ad units.

Magazine, Newspaper and TV Ads Precipitate Online Searches - In a recent analysis of BIGresearch’s Simultaneous Media Survey conducted for the Retail Advertising and Marketing Association, consumers said that they were most motivated to begin an online search after viewing: Advertisements in magazines (47.2%), Newspapers (42.3%), Ads on TV (42.8%), From reading articles (43.7%).

Boomers Big on Word-of-Mouth - A majority of baby boomers get asked for recommendations on products and services about 90 times every year, according to Weber Shandwick. Nearly all (89%) of those who were asked for advice gave it to their friends, or fellow boomers. And nearly all boomers (93%) say that they consider their friends (also boomers) to be trusted sources of information.

Is Web 2.0 Over and Out? - New Internet technologies, defined vaguely as “Web 2.0,” have gone mainstream, but the cycle of innovation may be slowing, suggests a venture capitalist. Separately, data shows that venture investments in Web 2.0 companies last year increased strongly, but that valuations actually dropped. Peter Rip, of Crosslink Capital, who has invested in several Internet companies considered Web 2.0-focused, including Riya, Vast and Teqlo, posits that one way to check the “energy dissipation” around Web 2.0 is to look at Web 2.0-centric media, including Techcrunch, Gigaom, and Technorati.

@ 360 Degree Media: Traditional Media Need To Break Down Divisions And Embrace Constant Reinvention - Media executives whose brands have always been anchored by traditional print and TV models must reinvent themselves on a continual basis to remain competitive within the digital space. That was the consensus of three executives on the Ad Age 360 Degree Media conference’s morning panel: draw the traditional publishing and new media units closer together to drive multi-disciplined thinking.

Web 2.0-Type Fundings At $844 Million in 2006 - So says a new report by Ernst & Young and Dow Jones VentureOne…$844.4 million was directed into 167 deals last year, more than twice as much money and nearly twice as many deals as occurred in 2005. And the report says this is not a bubble, and the rationale? The median pre-money valuation for a Web 2.0 company in 2006 was $6 million for both U.S.-based companies and worldwide.

Industry Moves: MSFT Continues To Shore Up Search & Advertising - Microsoft is still looking for the right formula when it comes to search and advertising. Wednesday the company announced a batch of changes including a new Search and Ad Platform Group in the Platform Services Division. This follows news that Christopher Payne and Blake Irving are leaving the company.

Is There Value In Content Deals For ISPs? - Will content distribution be a bigger business than media or hardware? Where market capitalization is the measure, content will always be king–just look at Google’s $140 billion valuation versus ISPs. They “risk becoming dumb pipes, unless they offer something exclusive or compelling.” Does that mean they should seek out partnerships with YouTube and MySpace? Time Warner Cable’s Mike Roudi, vice president of wireless, doesn’t think so. These marketing deals aren’t game changers, network upgrades are.

What’s The Best Way To Monetize Video Search? - In my last column, I speculated that a Google acquisition of blinkx could give the search giant a huge boost in video search. In turn, better video search capabilities would improve the current consumer online video experience by providing more relevant and less-interruptive advertising. Non-interruptive advertising in video can be achieved through Point-of-Query Video or Text Ads , Post-Query Video or Text Ads or Post-Query Integrated Ads.

Deals of the Day

Posted in General, Internet, Digital Media & Software on March 21st, 2007 by daveliu

CBS Corp. (NYSE: CBS) has acquired MaxPreps, a Cameron Park, Calif.–based provider of high school sports information and media services. No financial terms were disclosed. MaxPreps had raised around $12 million in VC funding from firms like Dolphin Equity Partners, BEV Capital and DFJ Frontier. Jefferies advised MaxPreps on the sale to CBS. www.cbs.com www.maxpreps.com

General Atlantic has completed its acquisition of a majority stake in AKQA Inc., a San Francisco-based interactive marketing company, from Francisco Partners. No financial terms were disclosed, although The Wall Street Journal had previously reported that the asking price had been between $200 million and $250 million. Jefferies provided the financing for the transaction. www.akqa.com  

Real D, a Los Angeles-based provider of 3-D technologies to movie theaters, has raised $50 million in private equity funding from the Shamrock Capital Growth Fund. No additional deal terms were disclosed. www.readd.com  www.shamrock.com

Integra Telecom Inc., a Portland, Ore.–based CLEC, has agreed to acquire Eschelon Telecom Inc. (Nasdaq: ESCH), a Minneapolis–based provider of integrated communications services to SMEs in the western United States . The offer is worth $30 per share, for a total equity value of around $566 million. Deutsche Bank Securities will help finance the deal via a senior credit facility. Integra shareholders include Nautic Partners, BA Capital Investors, Boston Ventures and GE Equity. Eschelon shareholders include Bain Capital and Wind Point Partners. www.integratelecom.com  www.eschelon.com  

Eyeblaster Inc., a New York-based provider of digital marketing services and technology, has raised $30 million in second-round funding. The deal was co-led by individuals Eli Barkat (managing director of BRM Capital), Jonathan Kolber and board member Guy Gamzu. Insight Venture Partners had led the company’s Series A round in 2003, but did not participate on this deal. It retains a minority position. www.eyeblaster.com  

Genband Inc., a Plano , Texas provider of VoIP infrastructure solutions, has raised around $15 million in Series C funding at a post-money valuation of around $130 million. Return backers include Sevin Rosen Funds, Venrock Associates, Oak Investment Partners, Granite Global Ventures, Alcatel, Siemens Venture Capital and Telesoft Partners. GenBand has raised over $205 million in total VC funding since its 1999 inception, including a VC recap in 2005. www.genband.com  

Oodle Inc., a San Mateo, Calif.-based provider of online search for local classifieds, has raised $11 million in second-round funding. Jafco Ventures was joined by return backers Greylock Partners and Redpoint Ventures. The company raised a $5 million Series A round last May. www.oodle.com  

Pulse Entertainment Inc., a San Francisco-based provider of digital media delivery solutions for Web and wireless platforms, has secured around $5.8 million of an $8.5 million Series 2 round. Return backers include Anthem Venture Partners and Draper Associates. Past backer Mobius Venture Capital is no longer a shareholder. Pulse has raised approximately $60 million in total VC funding since its 1994 inception. www.pulse3d.com  

LegalZoom.com Inc., a Los Angeles-based provider of online legal document preparation services, has raised an undisclosed amount of VC funding from Polaris Venture Partners. www.legalzoom.com  

Veronis Suhler Stevenson has acquired a control position in MediZine LLC, a publisher of health and fitness magazines like Healthy Living. No financial terms were disclosed. www.vss.com  www.medizine.com  

InnerWireless Inc. of Richardson, Texas and PanGo Networks Inc. of Framingham, Mass. have merged, in order to create a single provider of broadband coverage and real-time location systems. No financial terms were disclosed. InnerWireless has raised around $62 million in VC funding since 1998, from firms like Sevin Rosen Funds, Centennial Ventures, HO2 Partners, Johnson Controls Inc., Massey Burch Capital, Rho Ventures, StarTech Early Ventures and Technology Associates Management. PanGo has raised nearly $15 million since 2003, from firms like IDG Ventures Boston, Columbia Capital and Investcorp. www.innerwireless.com www.pangonetworks.com  

Wink, a Mountain View, Calif.-based provider of a people search engine for online profiles, has repurchased some of its stock from existing VC backers. Greylock Partners is among those that have reduced their stakes, but it remains the company’s largest outside shareholder. www.wink.com

Articles of the Day

Posted in Internet, Digital Media & Software, News on March 20th, 2007 by daveliu

MySpace Restrictions Upset Some Users - Some users of MySpace feel as if their space is being invaded. MySpace, the Web’s largest social network, has gradually been imposing limits on the software tools that users can embed in their pages, like music and video players that also deliver advertising or enable transactions.

Did Google Flush $1.6 Billion Down the YouTube? - Will YouTube become a media staple like no other, with professionally created content happily coexisting with amateur clips in a Bear Stearns estimates YouTube’s annual revenue at a rather measly $15 million. That means Google paid over 100 times revenue for the company, a disturbing multiple if you take the estimate at face value.

Doritos Brand Chief Plugs Authenticity, Reveals Next Online Play - Marketing is not merely about advertising and communication. It’s all about relationship, Doritos brand marketing director Jason McDonell told a packed OMMA audience while revealing the follow-up to its “Crash the Super Bowl” consumer ad-generation contest. Doritos is inviting consumers to select its next product and name a brand at its new Web-based studio site.

Huffington’s Formula For Ad Success: Marry Brand To Site - Writer and HuffingtonPost.com founder Arianna Huffington has definitive ideas about online ad models. If marketing messages are presented as part of content, the brand and the site must be in sync to be successful, she said, speaking at the OMMA conference.

Prerolls Slammed, But No Alternative Offered - Although the online video industry is relatively united on the idea that the 30-second preroll spot has no place on the Web, online video sites and online ad agencies have yet to join forces to create an innovative alternative, said panelists at the OMMA conference on Monday.

Search To Drive TV Viewership - Media companies are increasingly using social media and search to drive viewership of their movies and TV content, according to panelists at OMMA Hollywood.

BitTorrent, Joost To Create TV Program Net Site - Big peer-to-peer Internet company BitTorrent says it wants to join the race to create an ad-supported TV program Internet site. It’s looking to join Joost in launching the new service. BitTorrent already has deals with Paramount, Lions Gate, Warner Bros. and MGM.

Online Makeover: Discover Magazine Relaunches Web Site - Discover magazine is unveiling a dramatic new look for its Web site today. The editorial and artistic redesign aims to expand its online-only content and extend its multimedia delivery with more video, blogs, podcasts, RSS feeds and photo galleries. Unlike its print version, online traffic has more than doubled in the last year.

Global Ad Growth Rate on Internet Yellow Pages Outpacing Print Four to One - According to The Kelsey Group’s Global Directories Forecast 2007, advertising revenues from print Yellow Pages, Internet Yellow Pages and Local Search will grow from $30.6 billion in 2006 to $38.9 billion globally in 2011, representing a 4.9 percent compound annual growth rate. The forecast expects the print Yellow Pages segment of the global directories marketplace to grow from $26.5 billion in 2006 to $27.8 billion in 2011. The online segment is expected to grow from $4.1 billion in 2006 to $11.1 billion globally in 2011, a 22.3 percent compound annual growth rate.

Online Ad Spend Growth Is Historic - Internet ad spending grew by a third from 2005 to 2006, according to the Interactive Advertising Bureau and PricewaterhouseCoopers (IAB/PwC). Online ad spending revenues totaled $16.8 billion in 2006, up from $12.5 billion in 2005. eMarketer benchmarks its own online ad spending estimates against IAB/PwC data. The full-year actual total surpassed eMarketer’s 2006 estimate of $16.4 billion by $400 million.

Man Behind Viacom’s New Media Plan - CNET calls him Viacom’s “secret weapon.” Mika Salmi, the media conglomerate’s new president of global digital media, not only founded Atom Entertainment, which he sold to Viacom last year for $200 million, but he helped discover Trent Reznor, the genius behind the rock group Nine Inch Nails. It’s that kind of hipster/businessman sensibility that Viacom thinks will help its digital arm through growing pains, including a $1 billion lawsuit against Google and YouTube to bring Viacom content back under Viacom control.

Comcast May Ditch Google Search - Here’s a story you don’t hear everyday: Google’s got itself a dissatisfied search partner. So dissatisfied, the partner is considering abandoning the search giant for one of its competitors-Microsoft. And it’s a major partner, too. Comcast Corp., the country’s largest cable operator, is negotiating to use Microsoft’s search services on its broadband portal because it thinks Google takes too big a share of the revenue. Comcast is also negotiating with Google about extending the existing relationship, although the cable giant finds other aspects of the deal to be irksome, too.

Can Google Make It In TV and Radio? - “Google needs an Act II.” So said Jordan Rohan, managing director of RBC Capital Markets. If Google doesn’t figure out how to move beyond search ads, Rohan said, the “law of large numbers” will inevitably shrink revenue growth, probably down to the 30% range. Rohan made his comments moderating an OMMA. Hollywood debate about whether Google will emerge as king of all media. While no one doubts that Google plans to extend to TV, radio and other types of ads, opinions vary about whether the company will be as successful in more traditional media as it’s been with search.

Deals of the Day

Posted in General, Internet, Digital Media & Software on March 20th, 2007 by daveliu

Zopa Ltd., a London-based online marketplace for people to lend and borrow money, has raised $12.9 million in Series C funding. Bessemer Venture Partners led the deal, and was joined by fellow return backers Benchmark Capital and Wellington Partners. In other Zopa news, the company has named Douglas Dolton as its new CEO. He previously ran San Francisco-based student loan company Chela Education Financing, which was sold to Nelnet. www.zopa.com  

Cellufun LLC, a New York-based operator of an online community for mobile game distribution, has raised $3 million from Longworth Venture Partners. www.cellufun.com  

Prenova Inc., a Marietta, Ga.-based provider of energy management solutions, has raised $3 million in new VC funding from Siemens Venture Capital. The company has raised over $70 million in total venture capital since its 1997 inception. www.prenova.com  

Cerberus Capital Management has offered to acquire BPO and IT services provider Affiliated Computer Services Inc. (NYSE: ACS) for around $6 billion, according to The Wall Street Journal. Cerberus is being joined on the $59.25 per share bid by ACS founder Darwin Deason, who holds around 40% of ACS common stock and a control position over a second class of stock. www.acs-inc.com  

Take-Two Interactive Software Inc. (Nasdaq: TTWO), a video game maker known for its Grand Theft Auto series, delayed its shareholder meeting and said that it may put itself up for sale. The move comes after dissident shareholders – including SAC Capital and OppenheimerFunds – threatened to install their own management and board members. www.take2games.com  

The Active Network Inc., a San Diego–based marketing and consumer promotions agency, has acquired Thriva LLC, a Bothell, Wash.–based provider of online management software, online registration and payment processing for camps and event organizations. No financial terms were disclosed. The Active Network has raised over $70 million in VC funding since its 1998 inception, from firms like Austin Ventures, Kettle Partners, ABS Ventures, Canaan Partners, Charles River Ventures, DB Venture Partners, North Bridge Venture Partners, Enterprise Partners VC and Ticketmaster. www.theactivenetwork.com www.promote-it.com www.thriva.com  

iCrossing Inc., a Scottsdale, Ariz.-based digital marketing agency, has agreed to acquire Sharp Analytics, a Salt Lake City–based provider of business intelligence solutions for companies and their advertising agencies. No financial terms were disclosed. iCrossing has raised around $76 million in VC funding from such firms as Oak Investment Partners, RRE Ventures and StarVest Partners. www.icrossing.com www.sharpanalytics.com

Articles of the Day

Posted in Internet, Digital Media & Software, News on March 19th, 2007 by daveliu

Viral’s Not For Just Anyone: 50% In Survey Rate It Fad For The Lucky Few - You say you want an Evolution? Viral marketing may be on the lips of a lot of media people in the wake of successes like the Dove campaign, but 50% of respondents to a MediaPost/Dynamic Logic survey say it’s not something any marketer can or should try to pull off.

Metacafe Teams With Bochco For Video Confessions Channel - Online video startup Metacafe is attempting to bring a little gravitas to the world of consumer-generated media with a video confessions channel created by Hollywood producer Steven Bochco.

Podcast/Blog Ad Network Focuses On Boomers - Personal Life Media, a blog ad and podcasting network for socially-conscious boomers, launches today with 15 custom-created shows on topics for “cultural creatives” ranging from life coaching to green living to sex. Entrepreneur Susan Bratton is behind the venture.

NetRatings Results Reveal Plenty of Net, Income - Media research services can be healthy, high-margin businesses, but online audience researcher NetRatings’ 2006 earnings results go a long way toward explaining why research giant Nielsen Co. opted to acquire the balance of NetRatings.

Brightcove Partners With Video Analytics Start-Up - Internet TV company Brightcove this week is expected to announce a partnership with Visible Measures, a start-up Web video analytics firm that just closed a $5 million round of venture funding.

Automakers Expected To Put 14% of Ad Dollars Online - Automakers, dealers and after-market vendors will account for $2.69 billion, or nearly 14% of the dollars to be spent on Internet advertising and marketing in 2007.

YouTube Tries Its Own Video Awards - YouTube’s Video Awards was kicked off Monday, as the site’s registered users were invited to start voting for the best user-generated clips through next Friday, with the winners to be revealed on the site March 26. The categories include most creative, most inspirational, best series, best comedy, musician of the year, best commentary and “most adorable video ever.”

Newspaper, Magazine Publishers: Very Few Making More Than 3 Percent Of Sales Online - The overwhelming consensus among 350 global magazine and newspaper executives at a global media conference last week, Magazine 2.0, at the Hannover Congress Centrum in Germany: there is no profit in going digital. Taking the pulse of the conference, which was held March 14-15, the IHT reports that only a small number of attendees raised their hands when asked if they were making more than 3 percent of their sales online.

Movie Gallery To Offer Online Rentals; Plans Further Digital Investments - Hoping to stanch further revenue slides, video rental chain Movie Gallery plans to start an online DVD rental service later this year after a long stretch of customer defections to Netflix and Blockbuster, according to Reuters. After releasing fairly disappointing earnings results on Friday, Movie Gallery, which also owns rental franchises Hollywood Video and Game Crazy, has initiated a series of moves to regain its footing.

Portal Marketing: The Big Four - The Portal Marketing report analyzes the revenue and traffic figures at the leading portal sites – and accesses their impact on Internet advertising as a whole. eMarketer estimates that net US ad revenues at Yahoo!, AOL, MSN and Google represented 57.4% of the total Internet ad spend in 2006. Even if Google is not included among the portals, eMarketer projects that a third of online ad spending in 2007 will come through the other three sites.

Viacom: Master Of Its Ad Domain - After Viacom decided to pull its copyrighted content from YouTube and sue the online video provider for $1 billion in damages, most media reports focused either on the implications for site owner Google or the nascent user-generated video sector at large. But the Times took a closer look at Viacom’s broader online ad strategy, assessing how the online posting of its copyrighted content steps on the heels of its progress.

On the Web, Distribution is King - Viacom can sue Google for billions and its big media cousins can follow, but Google will always have a one-up on them in terms of distribution. And that’s where the big money in media has always been. Offline, the big media companies often do their own distributing, on the Web, this is Google’s domain. Where it doesn’t control distribution, big media has traditionally used its buying power to display content prominently. “The historical media play,” as consultant John Hagel says, “is having privileged access to limited shelf space.”

Time Warner Could Spin-off AOL This Year - As many expected, Time Warner may be dressing up AOL for a sale as early as this year, a move that UBS analyst Aryeh Bourkoff in a research note said would boost the media giant’s value. Time Warner says it has no such plans. “AOL is not for sale, nor do we plan to spin any part of it off,” Time Warner spokesman Ed Adler told Reuters on Friday. “The company has a great new strategy, and it’s working well.”

The Ginger-Mary Ann Question: Blogs Vs. Mainstream Media? - Many have wondered whether blogs, social networks and other types of online media will eventually displace television, newspapers and other more traditional media. Huffington, founder of the nearly 2-year-old popular blog Huffington Post, added that newspapers and TV aren’t going away anytime soon. On the contrary, she said, they complement each other; each one’s weakness becomes the other’s strength.

Deals of the Day

Posted in General, Internet, Digital Media & Software on March 16th, 2007 by daveliu

Mobifusion, a Fremont, Calif.-based provider of mobile content applications for publishers, has raised $3.1 million in first-round funding. Participants included Ingram Digital Ventures, Emergic Ventures and Global Asia Partners and an undisclosed “major telecom company” in India. www.mobifusion.com

Trampoline Systems Ltd., a London-based “enterprise 2.0” software startup, has raised £3 million in new funding from entities affiliated with the Tudor Group. www.trampolinesystems.com

Axon Digital Design BV, a Dutch maker of broadcasting equipment, has raised an undisclosed amount of private funding from Potosi and Goldman Sachs. It also secured a new financing facility from Rabobank. www.axon.tv

Scholz & Friends Group, a German advertising and marketing agency, has agreed to acquire gkk DialogGroup, a Frankfurt-based provider of communications services. No financial terms were disclosed. Scholz & Friends is a portfolio company of Cognetas. www.s-f.com