Digital Media

Yahoo is said to be wrapping up its search for a new chief executive, and a decision could come as early as next week, according to a report late Thursday in The Wall Street Journal, citing people close to the search pioneer.

Yahoo's board is reportedly leaning toward a candidate from outside the company, the newspaper reported. Carol Bartz, the former chief executive officer of engineering software company Autodesk, is considered a candidate, the Journal reported.

From inside the company, Yahoo President Sue Decker is considered a strong candidate for the position, people familiar with executive search say. Decker has undergone two full rounds of in-depth interviews with Yahoo's board, according to sources.

And at least one influential Microsoft source noted that Decker is well regarded at the software giant, even though the companies weren't able to strike a buyout, or partial deal for just the search business.

For Yahoo, naming Decker as CEO could potentially bode well for its efforts to quickly reignite takeover talks with Microsoft, given that an outside hire would need time to analyze the different aspects of Yahoo's businesses before holding discussions to potentially sell off parts of the company.

Other outside candidates have reportedly included former Vodafone CEO Arun Sarin, whose expertise with the carrier could have come in handy in righting Yahoo's failed effort to win the Verizon search business. But Sarin is reportedly no longer interested in being Yahoo's CEO.

Yahoo announced on November 17 that its founder and CEO Jerry Yang would step down and resume the role of chief Yahoo once a new CEO was selected. In the meantime, Yahoo is nearing its two-month mark in its search.

This post was updated at 1:39 p.m. PST with Yahoo declining to comment.

Yahoo may have fallen out of favor with Wall Street after the failed Microsoft buyout bid, but that doesn't mean you can count Yahoo President Sue Decker out of the running for CEO, people familiar with executive search say.

(Credit: Yahoo)

Decker has undergone two full rounds of in-depth interviews with Yahoo's board, according to sources.

And, in executive recruiting circles, more than one in-depth interview with an internal candidate signals a strong contender, said David Nosal, CEO of executive recruiting firm Nosal Partners.

"If she has gone through two rounds of full interviews with the board, it sends the signal that she is being given strong consideration," Nosal said. "Rarely do boards go through a second round of full interviews, unless there is something significant they see there, whether it's for an internal or external candidate."

A number of industry players and major Yahoo investors had discounted Decker as a viable CEO candidate for the struggling Internet search pioneer, following Microsoft's failed buyout bid of $33 a share for the company. Yahoo, which had traded at roughly $19 a share before the initial bid became public last January, closed Wednesday at $12.71 a share.

But one source familiar with the search noted: "She has always been a strong candidate."

And at least one influential Microsoft source noted that Decker is well regarded at the software giant, even though the companies weren't able to strike a buyout, or partial deal for just the search business.

For Yahoo, naming Decker as CEO could potentially bode well for its efforts to quickly reignite talks with Microsoft, given that an outside hire would need time to analyze the different aspects of Yahoo's businesses before holding discussions to potentially sell off parts of the company.

Meanwhile, strong outside candidates have reportedly included former Vodafone CEO Arun Sarin, whose expertise with the carrier could have come in handy in righting Yahoo's failed effort to win the Verizon search business. Sarin is reportedly no longer interested in the Yahoo CEO gig.

And an All Things Digital post Wednesday notes Autodesk CEO Carol Bartz is another serious contender for the post.

Although sources familiar with the search say there is no deadline for naming a CEO and that it's hoped one could be selected by the end of the quarter, executive recruiters say there is an artificial deadline.

"A search of this magnitude you can never rush, but since it's one of the most high-profile CEO searches, there are any number of people who have made it be known in, or outside, the U.S. that they are interested in the job. I would imagine that Yahoo would be into its second or even third round of interviews with a short list of candidates," Nosal said.

He added he would be "surprised, if not disappointed," if Yahoo does not name a CEO within the next 30 to 45 days.

Executive recruiter Jon Holman of the Holman Group noted that if a CEO is not found within a four-month period after launching a search, the process "begins to grow hair."

"If six months go by, you know that the board has seen a bunch of people and you begin to think that the board doesn't know what it wants, or the board is looking for a Superman that doesn't exist, or no one wants the job," Holman said. "All those alternatives are bad. You don't want the company to look like damaged goods."

Yahoo announced on November 17 that its founder and CEO Jerry Yang would step down and resume the role of chief Yahoo once a new CEO was selected. In the meantime, Yahoo is nearing its two-month mark in its search.

Yahoo declined to comment on Decker and the CEO search.

Anybody else sort of see this one coming?

It's a matter of weeks before the U.S. cuts out analog television signals entirely, switching to an all-digital market, but the fund established by the government to provide $40 subsidies to people who need to purchase digital converter boxes is out of money and has established a wait list. More than 100,000 people had already been wait-listed as of Monday, USA Today reported.

So, if you rely on "rabbit ears" and are still in need of that coupon, here's what to do. The application process on the TV converter box Web site is still the same, but now, you'll be put in line for the first-come, first-served waiting list as more funds become available. You'll also be given a reference number, much like a package-tracking number, that you can input into the Web site to check up on the status and check up on your estimated mailing date.

The all-digital transition is set for February 17, which means that more than 70 million analog televisions in the U.S. will be rendered useless unless they have the proper converter boxes to work with their indoor ("rabbit ears") or outdoor antennae. USA Today reported that the Department of Commerce's National Television and Information Administration isn't sure when more funds will be available, and attributed the shortage to a surge in coupon requests late in 2008 that exceeded expectations.

One option for the government is to delay the analog-to-digital transition--again. In the meantime, the Web site recommends some pricier alternatives: buy a converter box without the coupon, buy a digital TV, or subscribe to cable or satellite programming.

Or you could just ditch your TV and just go outside instead. The digital TV transition Web site, however, does not suggest that.

Massachusetts police used cell phone tracing via GPS and Google Maps to track down a 9-year-old girl who was allegedly kidnapped by her grandmother, the Worcester Telegram & Gazette reported on Wednesday.

Police arrested the 52-year-old grandmother at a motel in Natural Bridge, Va., on Tuesday after she allegedly failed to return her granddaughter to the home of her legal guardians in Athol, Mass., the report said. The grandmother had picked up the child for a weekend visit on Saturday and allegedly threatened to not return her, according to the report.

With help from the cell phone provider, authorities were able to trace the location of the child's cell phone and followed the journey of the grandmother and granddaughter by using GPS coordinates that updated every time the phone was used.

They were able to track the phone to an intersection on Virginia Route 11 in Natural Bridge and then used Google Street View to view the intersection, where they saw a building with a red roof that looked like a motel. Then they searched on Google maps for motels in the town and located the Budget Inn-Natural Bridge and confirmed the location using Google's satellite view on the map, the report said.

The case is "an interesting first (at least as far as we're aware)," Pablo Chavez, Google senior policy counsel, wrote in a blog post.

The Google Street View of the Virginia motel where a missing Massachusetts girl was found with her grandmother.

(Credit: Google)

Update January 8 at 12:44 p.m. PST: Added Yahoo's response.

A group of investors are reportedly putting together a buyout deal for Yahoo, which would call for Microsoft's financial backing, according to a report in TechCrunch.

Such an arrangement would call for the investment group to pay a premium of approximately 20 percent to Yahoo's current share price, which closed Wednesday at $13 a share, for the entire company.

The investment group would take Yahoo, which would have a $20 billion market cap under those terms, and simultaneously sell its search and marketing business to Microsoft under its previous terms presented in June, according to the report.

The software giant would not only buy these businesses from the investment group, but also provide much of the upfront financing the investors group would need to make the initial purchase. Microsoft would treat the funding as a loan to the investment group, which in turn would provide a fixed payment based on Yahoo's future cash flow, according to TechCrunch.

The report notes, however, that Microsoft has yet to agree to such a proposal.

Yahoo declined to comment on speculation about the deal.

One True Media, the parent company of an online video ad creator called SpotMixer, has announced a fresh $9 million in Series B venture funding. The round was led by DAG Ventures, with contributions from NTT Finance and existing investor Kleiner Perkins Caufield & Byers.

Amid widespread financial difficulties (to say the least) in the media business, SpotMixer and its new investors are pitching it as a cost-cutting option for small companies.

"While the market opportunity for video advertising remains well-defined, smaller businesses are more concerned than ever about how to most cost-effectively spend their limited advertising dollars," said DAG managing director Young Chung, who has joined One True Media's board of directors. "SpotMixer has quickly established itself as one of the most innovative and thoughtful solutions that will enable accelerated growth around this major advertising trend."

In conjunction, SpotMixer announced that it has been appointed the first official "authorized reseller" of Google's AdWords service for videos. This means that SpotMixer clients will be able to directly distribute their ads using Google's ad platform in addition to creating them online.

SpotMixer charges clients a minimum of $49 per month for access to its online tools, which are effectively a souped-up version of the many Web-based video "mixing" services out there. Then they can shoot them out across the Web with video embed codes or ad campaigns on the Web or cable TV.

Making the advertising process cheaper and easier is certainly a good pitch during a recession, but there's a flip side, too: Small companies with tightening budgets could easily opt to nix video ads altogether, sticking with the more familiar territory of text or display advertising. SpotMixer, on the other hand, maintains that video ads are more effective

Correction: An earlier version of this story misstated that technology from the Five Across acquisition was the foundation for the new Eos service. It is not.

LAS VEGAS --Two years after it first started courting big media companies, Cisco Systems will finally launch a new product to help these companies harness the power of social networking and connect their brands to fans.

On Wednesday, Cisco will kick off the Consumer Electronics Show here by announcing Eos, a hosted software platform that allows media and entertainment companies to create, manage and grow online communities. Through Eos Cisco has compiled technology tools and slapped on an easy to use interface to make building and customizing Web sites easy. But most importantly, it's bundled into the software, technology that will allow media companies to build interactive Web sites so that fans can connect with musicians, TV shows, movies, or whatever brand a media company wants to promote.

Cisco first began looking for ways to help big media companies late in 2006, when it created the Media Solutions business unit. The idea was to develop and market products to digital media content owners. In February last year, the company bought a startup called Five Across, which developed social networking software.

Dan Scheinman, the Cisco executive behind Eos, believes that the new software platform addresses one of the biggest problems that media companies face today.

"The reality is that media is so disrupted by digital technology," he said. "Fans are looking for ways to connect to their favorite artists or TV shows and they are seeking out communities, but the media companies have been slow to provide this for them. Eos is centered around community and allows fans to participate."

The service provides tools that allow media companies to create blogs, live chats, message boards, rating and ranking systems.

Scheinman believes that social networking is the most important way for marketers and big media companies to reach consumers. Consumers are using sites such as YouTube and Facebook to share media, like videos, music and pictures. He also believes that media companies can combat piracy by offering fans an interactive experience through their own branded Web sites.

"In many ways digital destroys the value proposition for media," Scheinman said. "Other people can rip off the content and monetize it, aggregate it, and take pennies for it."

Christopher Norberg, defendant in a lawsuit accusing him of libel for a negative review he posted on Yelp.

(Credit: Christopher Norberg)

San Franciscan Christopher Norberg went to a chiropractor after being injured in a car accident in 2006. After a disagreement with the chiropractor over billing, he posted a negative review of the business on Yelp suggesting that the doctor was dishonest. Now he is facing a defamation lawsuit that could chill self-expression on the popular gripe Web site.

"If Christopher loses then anyone on Yelp who writes a negative review better be careful," said Michael Blacksburg, an attorney representing Norberg. "This strikes at the heart of Yelp's business model and other Web sites that provide a bulletin board for people to state what they think of businesses in their community."

"This is clearly Christopher Norberg's version of conversations with the doctor relating to a billing dispute and his opinion of how the doctor was behaving," Blacksburg said on Tuesday. "This is clear opinion that falls squarely within constitutionally protected speech."

Eric Nordskog, the attorney for chiropractor Steven Biegel, said the case comes down to whether Norberg's comments are considered statements of fact or opinions.

"Dr. Biegel has no problem with people expressing their views and opinions about his service," Nordskog said. "But there is a line where if someone, even on Yelp or on the Internet, publishes a false statement of fact as opposed to an opinion, then that person can and should be held responsible for their words."

Norberg, a 26-year-old custom-furniture builder, was advised not to discuss the case publicly, but has a Web site with related information. Biegel did not return a call seeking comment.

The two sides are scheduled to sit down for court-required mediation on Friday, but Norberg said he isn't optimistic that the case will be resolved then. A March 2 trial date is on the San Francisco Superior Court calendar.

The lawsuit, filed February 25, 2008, alleges that Biegel has suffered loss of reputation and business as a result of the review and seeks punitive damages. According to the lawsuit, the review allegedly contained false statements and inaccuracies that suggested Biegel was dishonest and accused him of fraudulent billing practices.

Billing dispute at center
Norberg was treated twice by Biegel before a friend of his told him he had had billing problems with Biegel's office, he wrote in his review. Norberg, who said he did not have medical insurance, was not asked to pay for the visits because Biegel's office said it would try to bill his auto insurance company instead, the review said. Even though the insurance company refused to pay, Norberg did not initially receive a bill from Biegel, he said.

In the meantime, Norberg began getting treatment from another chiropractor who suggested he sue the driver of the car that hit him, Norberg's review said. Norberg eventually settled the case, the review said.

After learning that Biegel's bill to the auto insurer was $550 instead of $125, which was the amount quoted for two visits, Norberg called Biegel, his Yelp review said. Norberg said that Biegel demanded he pay $550 during that phone call, but then said he would waive the fee entirely, according to the review. Biegel later called Norberg and explained that his office bills insurers at a higher rate than patients who pay for service directly because of the higher office costs in dealing with the paperwork and delays in receiving payment, court documents said.

Biegel's office then made a call to Norberg's auto insurance company and learned about the settlement and then called Norberg and demanded he pay $125, the lawyers said. Norberg paid the bill and posted a review of Biegel with a one-star rating on Yelp on November 16, 2007.

"I didn't feel comfortable with their tactics," Norberg wrote in his review after earlier writing that the office had been aggressive in trying to get him to come back for treatment before the billing dispute. Biegel "couldn't give me a straight answer as to why the jump in price...He called me back to cover his ass...(and says) he runs a business and would stick it to insurance companies," the review said.

"I don't think good business means charging people whatever you feel like hoping they'll pay without a fuss. Especially considering that I found a much better, honest chiropractor," Norberg wrote at the end of his review.

In a letter sent to Norberg dated December 7, 2007, Biegel asked Norberg to remove the review, saying it "unjustly characterizes me as unethical and dishonest" and attributed the dispute to a misunderstanding of his office procedures.

"I did not do anything unethical or illegal in our entire dealings," Biegel wrote. "It has never been my policy or intention to take advantage of an individual or insurance company."

On January 8, Norberg got a letter from Biegel's lawyer threatening him with a lawsuit over the review and two days later Norberg removed the review and rating from the site. The following month, Biegel sued.

Biegel, who was a "sponsored" advertiser on Yelp and encouraged customers to write reviews on the site, received about as many referrals per month from Yelp while the review was up as before, but fewer after the lawsuit was filed, Blacksburg said, citing Yelp documents.

A Yelp spokeswoman said she did not know of any other cases in which a business sued a Yelp user over a negative review.

"We won't comment on specific litigation, but in general, lawsuits like this are pretty uncommon," Yelp spokeswoman Stephanie Ichinose wrote in an e-mail.

"Most businesses engage constructively with customers who haven't had a good experience," she wrote. "When that doesn't work, they recognize that they can't always make one hundred percent of their customers happy one hundred percent of the time, and don't risk the huge expense and potential negative publicity that comes with suing one of their customers."

Accusing a business owner of unethical conduct would constitute defamation unless it is true, said Aaron Morris, an Internet defamation attorney in Santa Ana, Calif. However, if the defendant can successfully prove that posting the statement was a matter of public good then the plaintiff would have to show malice and that the defendant knew the statement was false or had reason to believe it was false, he added.

"You can have something that would normally constitute defamation but if it's a matter of public interest it is entitled to protected status," Morris said. "Some courts will say that if you are posting it in a forum where people would be interested, they are going to Yelp specifically to find out about the doctor...then it enjoys a heightened level of privilege."

Not much legal precedent has been set on Internet defamation involving consumer review Web sites. Two similar cases decided in August in California had conflicting outcomes. In European Spa v. Kerber, the First District Court of Appeal ruled that negative reviews of a spa posted on Yelp and Yahoo did not meet the public interest element to merit special status in a defamation lawsuit, Morris wrote in an entry on his blog. In a separate case, Kim v. IAC/InterActive Corp., the Second District Court of Appeal granted an anti-SLAPP (strategic lawsuit against public participation) motion filed by someone who had posted a negative review of a dentist on Citysearch.

"If enough of the cases come back where individual posters are being sued, that could chill the desire of people to go on and post their opinion," Morris said. "But all they have to do to protect themselves is to make sure there is some truth to what they are saying."

Updated 1:40 a.m. PST Jan. 7 with background on other cases.

It's time for our aperiodic wrap-up of Google items. We'll start off with the most unusual, in my opinion: wacky ASCII art.

These three ASCII characters appear to represent the 9/11 attacks on the World Trade Center.

(Credit: Google)

• September 11 obviously made quite an impression on people, and its effects continue to reverberate. The latest example: Google Trends, which monitors hot search terms at the company, has picked up on what appears to be a symbolic representation rendered in ASCII text characters. It consists of an airplane and two vertical bars.(Via Search Engine Land.)

• Google shed a little light on the popularity of its blog posts from 2008. The top item: the premature announcement of the Chrome Web browser. The post had 1,735,093 unique visitors, 12 percent of the total visitors to the official Google blog. That implies there were a total of about 12.5 million unique visitors for the blog overall--not bad for an official corporate blog.

• Google China won a trademark infringement lawsuit brought by a company called Beijing Guge Science and Technology, according to Bloomberg. Google named its subsidiary "Gu Ge, which means "harvesting song" in Chinese, but a court ruled that Beijing Guge must stop using the name.

• Including graphics for Google's online payment system, Google Checkout, helps improve the performance of search advertisements, according to Google. The company said on its site that people click on ads with a Google Checkout icon about 10 percent more than those without, though the company didn't offer specific methodology for its conclusion. (Via Google Blogoscoped.)

• Google is canceling a project called Google Research Datasets, also called Palimpsests, that housed data for researchers. "It has been a difficult decision, but we have decided not to continue work on Google Research Datasets, but to instead focus our efforts on other activities such as Google Scholar, our Research Programs, and publishing papers about research here at Google. The Google Research Datasets service will remain active until the end of January 2009 during which time any datasets may be downloaded. For those datasets that are impractical to download, we will also happily provide interested users with a copy via hard drive shipment," the company told astrophysicist Alberto Conti, who posted the note on his blog. (Via Google Blogoscoped.)