by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
The time has come for big changes at MySpace, according to Pali Research analyst Richard Greenfield.
In a research note this morning, Greenfield asserts that, with just over a year to go on the News Corp. unit’s search advertising deal with Google, “it appears as though Google simply does not care about social search.” He contends it is difficult to imagine Google paying anywhere near what they were previously shelling out to MySpace, “especially as the inherent functionality of social networks is diminishing the importance of search.” The current deal expires in June 2010.
by Martin Peers, Deputy Media Editor, The Wall Street Journal
Time Warner’s hiring of Tim Armstrong to run AOL is, to misquote another Armstrong, a small step for AOL but a giant leap for Time Warner.
Whether or not the former Google executive can turn around the AOL business, his hiring clearly sets up AOL to be spun off. That is a step Time Warner must take, having wasted years trying to fix or find a buyer for AOL.
by John Battelle, Blogger, John Battelle's Searchblog
In trying to become the Next Big Thing on the Internet, many Web sites have risen and fallen in the past. This is all a throat-clearing to Think Out Loud about Twitter and Facebook. (Like I’ve been doing anything else lately.)
The Internet of 1996 is almost unrecognizable compared with what we have today: It’s 1996, and you’re bored. What do you do? If you’re one of the lucky people with an AOL account, you probably do the same thing you’d do in 2009: Go online. Crank up your modem, wait 20 seconds as you log in, and there you are–”Welcome.”
The Web has repeatedly demonstrated its ability to evolve and leave embedded franchises struggling or in the dirt. Prodigy, AOL were early candidates. Today Yahoo and eBay are struggling, and I think Google is tipping down the same path, while Twitter continues to gain momentum.
by Eric Savitz, Blogger and Columnist, Barron's Tech Trader Daily
Earthlink is an odd company: It continues to generate more and more cash from the terminally ill (and steadily shrinking) dial-up Internet access business. Its coffers are bursting at the seams. Judging by the company’s valuation, the Street doesn’t see a whole lot of value in the core business. But there certainly is intrigue over the cash–including whether the company will eventually buy the AOL dial-up access business.
by Andrew LaVallee, Reporter, The Wall Street Journal, Digits
Google today reported a year-over-year decline in fourth-quarter profit, hurt by $1.09 billion in write-downs related to AOL and Clearwire. Operating earnings rose, however, and revenue climbed 18 percent to $5.70 billion from the year-earlier period. Google’s revenue, excluding traffic-acquisition costs, was $4.22 billion, above the Thomson Reuters estimate of $4.12 billion. Earnings per share, excluding certain items, was $5.10, beating estimates. The company also announced plans for an options exchange program for workers whose stock options are underwater.
Social networks are front and center in the latest redesign of AOL’s AOL.com homepage, which the company announced Thursday and says it will start to gradually roll out to users over the next few weeks (unless they choose to opt in earlier).
In the world of instant messaging, few services come close to the popularity of AIM, and no one can beat AIM in terms of longevity. The communication tool was launched as a feature of the first version of the AOL dial-up service in 1989, according to AOL technology fellow Edwin Aoki.
by Peter Kafka, Managing Editor, Silicon Alley Insider
Time Warner CEO Jeff Bewkes says he’ll have a decision on the future of AOL “soon”. That can’t come fast enough for AOL boss Randy Falco, who we’re told is now fuming about the limbo state his company has entered: “When is New York going to sell us?” we’re told he muttered in earshot of his lieutenants recently.
In honor of a redesign of AOL’s home page, we asked Bits readers earlier this week, “Who Uses AOL and Why?” So far, we’ve heard from more than 380 of you.
Former AOL boss Steve Case virtually fled to his Hawaiian pineapple farm after the AOL-Time Warner merger he engineered in 2000 vaporized much of the group’s combined market value. Now that Liberty Media chairman John Malone is open to swapping his 2.8 percent stake in Time Warner for AOL’s dial-up business, the extent of Case’s [...]
by Eric Savitz, Blogger and Columnist, Barron\'s, Tech Trader Daily
Liberty Media (LCAPA) is “open” to swapping its stake in Time Warner (TWX) for AOL’s dial-up Internet access business, Liberty Chairman John Malone said Monday, Reuters reported.
Malone said there have not been any discussions on the concept so far, however.
At a meeting with about a dozen senior members of AOL’s staff Monday, Jeff Bewkes left at least one member of management with the impression that the company is for sale, a source close to the company says. Another person who attended the same meeting says Jeff did not say specifically that the company is for sale but merely said that “everyone is talking to everyone” and that AOL might someday be sold.
When it comes to the widget ecosystem, lavishly funded companies like Slide, Clearspring and RockYou hog the limelight. But it is Userplane, now a subsidiary of AOL, that seems to be revving up the money engine without much fanfare. The company that started out offering a Web-based chat system has now morphed into a many-faceted business, including owning what might just be one of the largest widget ad networks out there.
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