tags and large images.
There are several independent web sites offering MySpace layout design utilities which let a user select options and preview what their page will look like with them.
MySpace has recently added its own "Profile Customizer" to the site, allowing users to change their profile through MySpace. Using this feature bypasses the CSS loading delay issue, as the MySpace default code is changed for the customized profile. The MySpace profile editor also has a criticism with how the links appear on the profile.
MySpace profiles for musicians are different from normal profiles in that artists are allowed to upload up to six MP3 songs. The uploader must have rights to use the songs (e.g their own work, permission granted, etc). Unsigned musicians can use MySpace to post and sell music using SNOCAP, which has proven popular among MySpace users. Shortly after MySpace was sold to Rupert Murdoch the owner of Fox news and 20th Century Fox in 2005 they launched their own record label, MySpace Records, in an effort to discover unknown talent currently on MySpace Music.[15] MySpace Music is a section of the website that allows its users to display their songs. It doesn’t matter if the artist is already famous or still looking for a break into the industry; aspiring artists can load their songs onto MySpace and have access to millions of people on a daily basis. Some well known singers such as Lilly Allen and Sean Kingston gained fame through MySpace. The availability of music on this website continues to develop in the foundation of young talent. Over eight million artists have been discovered by MySpace, and many more continue to be discovered daily.[29]
Bulletins
Bulletins are posts that are posted on to a "bulletin board" for everyone on a MySpace user's friends list to see. Bulletins can be useful for contacting an entire friends list without resorting to messaging users individually. Some users choose to use Bulletins as a service for delivering chain messages about politics, religion, or anything else and sometimes these chain messages are considered threatening to the users, especially the ones that mention bad luck, death, or topics similar to that.[30] They have also become the primary attack point for phishing. Bulletins are deleted after ten days.
Groups
MySpace has a Groups feature which allows a group of users to share a common page and message board. Groups can be created by anybody, and the moderator of the group can choose for anyone to join, or to approve or deny requests to join.
MySpaceIM
Main article: MySpaceIM
In early 2006, MySpace introduced MySpaceIM, an instant messenger that uses one's MySpace account as a screen name. A MySpace user logs in to the client using the same e-mail associated with his or her MySpace account. Unlike other parts of MySpace, MySpaceIM is stand-alone software for Microsoft Windows. Users who use MySpaceIM get instant notification of new MySpace messages, friend requests, and comments.
MySpaceTV
In early 2007, MySpace introduced MySpaceTV, a service similar to the YouTube video sharing website. MySpaceTV is now in beta mode, and will be probably be launched as a separate site in either 2008 or early 2009. MySpaceTV might be a standard channel that will be shown on television.
Applications
In 2008, MySpace introduced an API with which users could create applications for other users to post on their profiles. The applications are similar to the Facebook applications. In May 2008, MySpace had added some security options regarding interaction with photos and other media.
MySpace Mobile
There are a variety of environments in which users can access MySpace content on their mobile phone. American mobile phone provider Helio released a series of mobile phones in early 2006 that can utilize a service known as MySpace Mobile to access and edit one's profile and communicate with, and view the profiles of, other members.[31] Additionally, UIEvolution and MySpace developed a mobile version of MySpace for a wider range of carriers, including AT&T,[32] Vodafone[33] and Rogers Wireless.[34]
MySpace News
In the month of April 2007, MySpace launched a news service called MySpace News which displays news from RSS feeds that users submit. It also allows users to rank each news story by voting for it. The more votes a story gets, the higher the story moves up the page.
MySpace Classifieds
Full service classifieds listing offered beginning in August 2006. Has grown by 33 percent in one year since inception. MySpace Classifieds was launched right at the same time the site appeared on the internet.[35]
MySpace Karaoke
Launched April 29, 2008, ksolo.myspace.com is a combination of MySpace and kSolo, which allows users to upload audio recordings of themselves singing onto their profile page. Users' friends are able to rate the performances. A video feature is not yet available, but Tom Anderson, MySpace co-founder and president, states that it is in the works.[36]
MySpace polls
MySpace Polls is a feature on MySpace that was brought back in 2008 to enable users to post polls on their profile and share them with other users.
Politics
* Many political organizations have created MySpace accounts to keep in touch with and expand their membership base. These range from larger organizations like Greenpeace and the ACLU to smaller locally focused environmentalist groups and Food Not Bombs activists.
* Many hopeful 2008 presidential candidates have set up MySpace profiles, presumably in an effort to snare younger voters. Most profiles feature photos, blogs, videos, and ways for viewers to get involved with campaigning. MySpace features these politicians' profiles on its front page in the "Cool New People" section, on what appears to be a random rotation.
Controversy over corporate history
Spam/Tom Anderson PR
In September 2006, a lengthy article written by web journalist Trent Lapinski, "MySpace: The Business of Spam 2.0," was published by the Silicon Valley gossip blog, Valleywag (a Gawker Media property). The article recounted a detailed corporate history of MySpace, alleging that MySpace was not organically grown from Tom Anderson's garage, but rather was a product developed by eUniverse aimed at overtaking Friendster, and that had initially gained popularity through an intensive mass internet campaign and not by word of mouth.[37] Amongst other claims was the assertion that Tom Anderson had originally been hired as a copyeditor and his "founder" and "first friend" status was a public relations invention. Lapinski suggested that News Corp. had attempted to suppress the publication of the history by threatening his original publisher.
Brad Greenspan/The MySpace Report
In October 2006, Brad Greenspan (the former Chairman, CEO and largest individual shareholder of Intermix Media, who claims to be the true "founder of MySpace") launched a website and published "The MySpace Report" that called for the Securities and Exchange Commission, the United States Department of Justice and the U.S. Senate Committee on Finance to investigate News Corp's acquisition of MySpace as "one of the largest merger and acquisition scandals in U.S. history."[38] The report's main allegation is that News Corp. should have valued MySpace at US$20 billion rather than US$327 million, and had, in effect, defrauded Intermix shareholders through an unfair deal process.[39] The report received a mixed response from financial commentators in the press.[40] An initial lawsuit led by Greenspan challenging the acquisition was dismissed by a judge.[41]
Greenspan's report also states that the MySpace program code had originally been the brainchild of an Intermix/eUniverse programmer named Toan Nguyen who made the breakthrough technical contributions to the project.[42]
Valleywag speculated that Greenspan was likely a key source for Lapinski's September article, "MySpace founder accuses company of defrauding investors of $20 billion."
Criticism
Customer service
To compound potential issues, MySpace has no customer service telephone number readily available for the public,[43] and contacting them for help via any other available corporate phone numbers rarely yields substantial results.[citation needed]
Accessibility and reliability
Because most MySpace pages are designed by individuals with little HTML experience, a very large proportion of pages do not satisfy the criteria for valid HTML or CSS laid down by the W3C. Poorly formatted code can cause accessibility problems for those using software such as screen readers.[44] The MySpace home page, as of August 18, 2008, fails HTML validation with around 125 errors (the number changes on sequential validations of the home page due to dynamic content), using the W3C's validator.[45]
Furthermore, MySpace is set up so that anyone can customize the layout and colors of their profile page with virtually no restrictions, provided that the advertisements are not covered up by CSS or using other means. As MySpace users are usually not skilled web developers, this can cause further problems. Poorly constructed MySpace profiles could potentially freeze up web browsers due to malformed CSS coding, or as a result of users placing many high bandwidth objects such as videos, graphics, and Flash in their profiles (sometimes multiple videos and sound files are automatically played at the same time when a profile loads). While MySpace blocks potentially harmful code (such as JavaScript) from profiles, users have occasionally found ways to insert such code. PC World cited this as its main reason for naming MySpace as #1 in its list of twenty-five worst web sites ever.[46]
In addition, new features have been gradually added (see featuritis). This, and the increasing number of MySpace members, leads to an increase in bandwidth used. This increase in usage often slows down the servers and may result in a "Server Too Busy" error message for some users who are on at peak hours, "Sorry! an unexpected error has occurred. This error has been forwarded to MySpace's technical group," or a variety of any other error messages throughout the day.[47]
Security
In October 2005, a flaw in MySpace's site design was exploited by "Samy" to create the first self-propagating cross-site scripting (XSS) worm. MSNBC has reported that "social-networking sites like MySpace are turning out to be hotbeds for spyware," with "infection rates are on the rise, in part thanks to the surging popularity of social-networking sites like MySpace.com."[48] In addition to this, the customization of user pages currently allows the injection of certain HTML which can be crafted to form a phishing user profile, thus keeping the myspace.com domain as the address.[49] More recently, there has been spam on bulletins that has been the result of phishing.[50] Users find their MySpace homepage with bulletins they didn't post, realizing later they had been phished. The bulletin consists of an advertisement that provides a link to a fake login screen, tricking people into typing in their MySpace e-mail and password.
Other security fears regarding profile content itself are also present. For example, the embedding of videos inherently allows all of the format's abilities and functions to be used on a page. A prime example of this surfaced in December 2006, when embedded QuickTime videos were shown to contain hyperlinks to JavaScript files, which would be run simply by a user visiting a 'phished' profile page, or even in some cases by simply viewing a user's 'about me' elsewhere on the site. Users who entered their login information into a fake login bar that appeared would also become 'phished', and their account would be used to spam other members, thus spreading this security problem.[51]
MySpace's anti-phishing and anti-spam measures have also come under fire. In 2007, MySpace made changes such that external links on profiles would be redirected through the http://msplinks.com domain. For example, http://en.wikipedia.org would be changed to http://www.msplinks.com/MDFodHRwOi8vZW4ud2lraXBlZGlhLm9yZw==. (The new links are determined by Base64 encoding, as there are ways of decoding the link back into its original URL. [1]) MySpace staffers would be able to disable potentially dangerous links. (The changed links only work if the HTTP referrer is a MySpace page; otherwise, the link will appear to be disabled.) This move has been criticized that it makes profile editing inconvenient and that it does nothing to deter spammers. In February 2008, MySpace changed the system such that users who click such links (except for whitelisted domains like Wikipedia and YouTube) will receive a warning that they will be leaving the myspace.com domain. As of March 2008, this "feature" has been extended to blogs as well, although previous blog entries are unaffected unless the user updates them.
In January 2008, the states attorneys general of 49 states of the USA wrote guidelines for online safety for MySpace and other services. They included restrictions for behavior on social networking services.[52]
On 26 January 2008 over 567,000 private MySpace user pictures were uploaded from the site by using a bug published on YouTube and put on the Piratebay torrent site for download.[53]
MySpace party gatecrashers
Gatecrashed MySpace parties have cost lives, and caused thousands of dollars damage to property. The Sydney Morning Herald's online technology writer, Asher Moses, says that MySpace/Facebook parties are particularly prone to gatecrashing because news of events can spread to uninvited guests via "newsfeeds." He suspects some party hosts are oblivious to the actual number of people who get the message."[54] There have been a number of Gatecrashed MySpace parties that have received front page news.[54]
* A party hosted by Corey Delaney, a 16-year-old boy from Narre Warren in Melbourne, and advertised on MySpace, resulted in 500 people attending. Police cars were attacked, and they called in support, including the dog squad and a helicopter. The incident received international coverage.[55][54] Delaney received both negative and positive publicity, and was given work as a party promoter for under age events.[56]. Corey's Press Coverage was also used to help Ten Network's Big Brother to get better ratings by adding him into the house as a special guest.
* In April 2007 a 17-year-old British girl, Rachael Bell, hosted a party. The flyer, which was distributed on MySpace, was reportedly subtitled "Let's trash the average family-sized house disco party." Her parents were left with an approximate £24,000 ($48,000) bill from police.[54][57]
* Allen Joplin, a 17-year-old American high school student, was shot dead by an uninvited guest at an underage party after it had been publicized through MySpace.[54][58]
Child safety
The minimum age to register an account on MySpace is 14.[59] Profiles with ages set from 14 to 15 years are automatically private. Users whose ages are set at 16 or over have the option to set their profile to public viewing. Accessing the full profile of, or messaging someone when their account is set to "private" (or if under sixteen) is restricted to a MySpace user's direct friends.
MySpace will delete these profiles if the victim verifies their identity and points out the profile via e-mail.[60]
Recently, MySpace has been the focus of a number of news reports stating that teenagers have found ways around the restrictions set by MySpace, and have been the target of online predators. Stricter methods for enforcing age admission will be enforced in the future, such as blocking a person from accessing MySpace using a computers IP address.[61] In response, MySpace has given assurances to parents that the website is safe for people of all ages. Beginning in late June 2006, MySpace users whose ages are set over 18 could no longer be able to add users whose ages are set from 14 to 15 years as friends unless they already know the user's full name or email address.[62] Some third party Internet safety companies like Social Shield[63] have launched online communities for parents concerned about their child's safety on MySpace.
In June 2006, 16-year-old American Katherine Lester flew to the Middle East, to Tel Aviv, Israel, after having tricked her parents into getting her a passport in order to be with a 20-year-old man she met through MySpace.[64] U.S. officials in Jordan persuaded the teen to turn around and go home.
In October 2006, 13-year-old Megan Meier committed suicide after being the victim of cyber-bullying instigated by the mother of a friend who had posed as a 16-year old named "Josh Evans".[65]
In December 2006, MySpace announced new measures to protect children from known sex offenders. Although precise details were not given they said that "tools" would be implemented to prevent known sex offenders from the USA creating a MySpace profile.[66]
In February 2007, a U.S. District Judge in Texas dismissed a case when a family sued MySpace for negligence, fraud, and misrepresentation; a girl in the family had been sexually assaulted by a man she met through MySpace, after she had misrepresented her age as 18 when she was 13. Regarding his dismissal of the case, U.S. District Judge Sam Sparks wrote: "If anyone had a duty to protect Julie Doe, it was her parents, not MySpace."[67]
In July 2007, the company found and deleted 29,000 profiles belonging to registered sex offenders.[68] Anti-pedophile organization Perverted Justice has praised MySpace for its efforts to combat pedophiles using their service.[69]
In October 2007, a study published in the Journal of Adolescence conducted by Sameer Hinduja (Florida Atlantic University) and Justin W. Patchin (University of Wisconsin-Eau Claire) concluded that most adolescents use MySpace responsibly: "When considered in its proper context, these results indicate that the problem of personal information disclosure on MySpace may not be as widespread as many assume, and that the overwhelming majority of adolescents are responsibly using the website," they say.[70]
Social and cultural
Dave Itzkoff, in the June 2006 Playboy magazine, related his experiences of experimentation with membership in MySpace. Among his other criticisms, one pertains to the distance afforded by the Internet that emboldens members, such as females who feature photos of themselves in scant clothing on their profile pages or behave in ways they would not in person, and he indicated that this duplicity undercuts the central design of MySpace, namely, to bring people together. Itzkoff also referenced the addictive, time-consuming nature of the site, mentioning that the Playboy Playmate and MySpace member Julie McCullough, who was the first to respond to his add-friend request, pointedly referred to the site as "cybercrack". Itzkoff argued that MySpace gives many people access to a member’s life, without giving the time needed to maintain such relationships and that such relationships do not possess the depth of in-person relationships.
Furthermore, in terms of MySpace's potential for underhanded commercial exploitation, Itzkoff is particularly critical of the disturbing and fraudulent behavior of people who can contact a member, unsolicited, as when he was contacted by someone expressing a desire to socialize and date, but whose blog (to which Itzkoff was directed via subsequent emails) was found to be a solicitation for a series of commercial porn sites. Itzkoff is similarly critical of the more subtle commercial solicitations on the site, such as the banner ads and links to profiles and video clips that turn out to be, for example, commercials for new 20th Century Fox films. He also observed that MySpace’s much-celebrated music section is heavily weighted in favor of record labels rather than breakthrough musicians.
In relating criticism from another person, whom Itzkoff called "Judas," he illustrated that, while the goal of attempting to bring together people who might not otherwise associate with one another in real life may seem honorable, MySpace inherently violates a social contract only present when people interact face-to-face, rendering, in his opinion, the website nothing more than a passing fad:
“ There will come a moment when, like deer quivering and flicking up their ears toward a noiseless noise in the woods, the first adopters will suddenly realize they’re spending their time blogging, adding, and gawking at the same alarming photos as an army of 14-year olds, and quick as deer, they’ll dash to the next trend. And before you know it, we’ll all follow.[71] ”
Censorship
Activist group MoveOn.org has criticized MySpace, claiming that the website practices censorship by not showing anti-media ads, removing fake profiles for high-profile media executives like Rupert Murdoch, and allegedly attempting to force users away from using third-party flash applications on their profiles.[72] MySpace also generated controversy for censoring YouTube videos.
Stalking
According to Alison Kiss, program director for Security on Campus, social networking websites such as MySpace and Facebook have made it easier for stalkers who target women on college campuses.[73]
MySpace China
The Chinese version of MySpace, launched in April of 2007, has many censorship-related differences from other international versions of the service. Discussion forums on topics such as religion and politics are absent, and a filtering system that prevents the posting of content about Taiwan independence, the Dalai Lama, Falun Gong, and other "inappropriate topics" has been added.[74] Users are also given the ability to report the "misconduct" of other users for offenses including "endangering national security, leaking state secrets, subverting the government, undermining national unity, and spreading rumors or disturbing the social order."[75]
See also: Internet censorship in the People's Republic of China
Religious discrimination
On January 30, 2008, Bryan J. Pesta, a Cleveland State University assistant professor, and moderator of the Atheist and Agnostic Group, accused MySpace of pandering to religious intolerance by deleting atheist users, groups and content. Specifically, Pesta alleges that MySpace deleted AAG's account, and his own personal profile, based on complaints from people offended by atheism, and this was the second time MySpace deleted the group since November 2007, even though, according to Pesta, it had never violated the site's Terms of Service. The page was again hacked on Thanksgiving 2007, and restored three weeks later, before being ultimately removed again.[76]
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Google (in inglese /ˈɡuːɡ(ə)l/ [ˈɡuːɡɫ̩], adattamento italiano /ˈɡuɡol/) è un motore di ricerca per Internet che non si limita a catalogare il World Wide Web, ma si occupa anche di immagini, foto, newsgroup, notizie, mappe, video, oltre a mantenere una copia cache di tutte le pagine che conosce.
Con un indice che comprende più di otto miliardi di pagine Web, è riconosciuto come il più grande e affidabile tra i motori di ricerca, occupandosi attraverso il suo sito di oltre il 70% di tutte le ricerche effettuate su internet.
La popolarità di Google è talmente grande che nella lingua inglese è nato il verbo "to google" col significato di "fare una ricerca sul web". Allo stesso modo in tedesco è nato il verbo "googeln"; con lo stesso significato, e in Italia il verbo "googlare" (pron: guglare) o googolare.
Google Inc. is an American public corporation, earning revenue from advertising related to its Internet search, e-mail, online mapping, office productivity, social networking, and video sharing services as well as selling advertising-free versions of the same technologies. The Google headquarters, the Googleplex, is located in Mountain View, California. As of June 30, 2008 the company has 19,604 full-time employees.[3] As of October 31, 2007, it is the largest American company (by market capitalization) that is not part of the Dow Jones Industrial Average.[4]
Google was co-founded by Larry Page and Sergey Brin while they were students at Stanford University and the company was first incorporated as a privately held company on September 7, 1998. The initial public offering took place on August 19, 2004, raising US$1.67 billion, making it worth US$23 billion. Google has continued its growth through a series of new product developments, acquisitions, and partnerships. Environmentalism, philanthropy, and positive employee relations have been important tenets during the growth of Google, the latter resulting in being identified multiple times as the #1 Best Place to Work for by Fortune Magazine .[5] The unofficial company slogan is "Don't be evil", although criticism of Google includes concerns regarding the privacy of personal information, copyright, censorship, and discontinuation of services.
Google began in January 1996, as a research project by Larry Page, who was soon joined by Sergey Brin, two Ph.D. students at Stanford University in California.[6] They hypothesized that a search engine that analyzed the relationships between websites would produce better ranking of results than existing techniques, which ranked results according to the number of times the search term appeared on a page.[7] Their search engine was originally nicknamed "BackRub" because the system checked backlinks to estimate the importance of a site.[8] A small search engine called Rankdex was already exploring a similar strategy.[9]
Convinced that the pages with the most links to them from other highly relevant web pages must be the most relevant pages associated with the search, Page and Brin tested their thesis as part of their studies, and laid the foundation for their search engine. Originally, the search engine used the Stanford University website with the domain google.stanford.edu. The domain google.com was registered on September 15, 1997,[10] and the company was incorporated as Google Inc. on September 7, 1998 at a friend's garage in Menlo Park, California. The total initial investment raised for the new company amounted to almost US$1.1 million, including a US$100,000 check by Andy Bechtolsheim, one of the founders of Sun Microsystems.[11]
The main Google page as of June 2008
The main Google page as of June 2008
In March 1999, the company moved into offices in Palo Alto, home to several other noted Silicon Valley technology startups.[12] After quickly outgrowing two other sites, the company leased a complex of buildings in Mountain View at 1600 Amphitheatre Parkway from Silicon Graphics (SGI) in 2003.[13] The company has remained at this location ever since, and the complex has since come to be known as the Googleplex (a play on the word googolplex). In 2006, Google bought the property from SGI for US$319 million.[14]
The Google search engine attracted a loyal following among the growing number of Internet users, who liked its simple design and usability.[15] In 2000, Google began selling advertisements associated with search keywords.[6] The ads were text-based to maintain an uncluttered page design and to maximize page loading speed.[6] Keywords were sold based on a combination of price bid and clickthroughs, with bidding starting at US$.05 per click.[6] This model of selling keyword advertising was pioneered by Goto.com (later renamed Overture Services, before being acquired by Yahoo! and rebranded as Yahoo! Search Marketing).[16][17][18] While many of its dot-com rivals failed in the new Internet marketplace, Google quietly rose in stature while generating revenue.[6]
The name "Google" originated from a common misspelling of the word "googol",[19][20] which refers to 10100, the number represented by a 1 followed by one hundred zeros. Having found its way increasingly into everyday language, the verb "google", was added to the Merriam Webster Collegiate Dictionary and the Oxford English Dictionary in 2006, meaning "to use the Google search engine to obtain information on the Internet."[21][22]
A patent describing part of the Google ranking mechanism (PageRank) was granted on September 4, 2001.[23] The patent was officially assigned to Stanford University and lists Lawrence Page as the inventor.
Financing and initial public offering
The first funding for Google as a company was secured in 1998, in the form of a US$100,000 contribution from Andy Bechtolsheim, co-founder of Sun Microsystems, given to a corporation which did not yet exist.[24] Around six months later, a much larger round of funding was announced, with the major investors being rival venture capital firms Kleiner Perkins Caufield & Byers and Sequoia Capital.[24]
The Google IPO took place on August 19, 2004. 19,605,052 shares were offered at a price of US$85 per share.[25][26] Of that, 14,142,135 (another mathematical reference as √2 ≈ 1.4142135) were floated by Google, and the remaining 5,462,917 were offered by existing stockholders. The sale of US$1.67 billion gave Google a market capitalization of more than US$23 billion.[27] The vast majority of the 271 million shares remained under the control of Google. Many Google employees became instant paper millionaires. Yahoo!, a competitor of Google, also benefited from the IPO because it owned 8.4 million shares of Google as of August 9, 2004, ten days before the IPO.[28]
The stock performance of Google after its first IPO launch has gone well, with shares hitting US$700 for the first time on October 31, 2007,[29] due to strong sales and earnings in the advertising market, as well as the release of new features such as the desktop search function and its iGoogle personalized home page.[30] The surge in stock price is fueled primarily by individual investors, as opposed to large institutional investors and mutual funds.[30]
The company is listed on the NASDAQ stock exchange under the ticker symbol GOOG and under the London Stock Exchange under the ticker symbol GGEA.
Growth
While the primary business interest is in the web content arena, Google has begun experimenting with other markets, such as radio and print publications. On January 17, 2006, Google announced that its purchase of a radio advertising company "dMarc", which provides an automated system that allows companies to advertise on the radio.[31] This will allow Google to combine two niche advertising media—the Internet and radio—with Google's ability to laser-focus on the tastes of consumers. Google has also begun an experiment in selling advertisements from its advertisers in offline newspapers and magazines, with select advertisements in the Chicago Sun-Times.[32] They have been filling unsold space in the newspaper that would have normally been used for in-house advertisements.
Google was added to the S&P 500 index on March 30, 2006. It replaced Burlington Resources, a major oil producer based in Houston which was acquired by ConocoPhillips.[citation needed]
Acquisitions
See also: List of Google acquisitions
Since 2001, Google has acquired several small start-up companies, often consisting of innovative teams and products.[citation needed] One of the earlier companies that Google bought was Pyra Labs. They were the creators of Blogger, a weblog publishing platform, first launched in 1999.[citation needed] This acquisition led to many premium features becoming free. Pyra Labs was originally formed by Evan Williams, yet he left Google in 2004.[citation needed] In early 2006, Google acquired Upstartle, a company responsible for the online word processor, Writely. The technology in this product was used by Google to eventually create Google Docs & Spreadsheets.[citation needed]
In 2004, Google acquired a company called Keyhole, Inc., which developed a product called Earth Viewer which was renamed in 2005 to Google Earth.[citation needed]
In February 2006, software company Adaptive Path sold Measure Map, a weblog statistics application, to Google. Registration to the service has since been temporarily disabled. The last update regarding the future of Measure Map was made on April 6, 2006 and outlined many of the known issues of the service.[33]
In late 2006, Google bought online video site YouTube for US$1.65 billion in stock.[34] Shortly after, on October 31, 2006, Google announced that it had also acquired JotSpot, a developer of wiki technology for collaborative Web sites.[35]
On April 13, 2007, Google reached an agreement to acquire DoubleClick. Google agreed to buy the company for US$3.1 billion.[36]
On July 9, 2007, Google announced that it had signed a definitive agreement to acquire enterprise messaging security and compliance company Postini.[37]
Partnerships
In 2005, Google entered into partnerships with other companies and government agencies to improve production and services. Google announced a partnership with NASA Ames Research Center to build up 1,000,000 square feet (93,000 m2) of offices and work on research projects involving large-scale data management, nanotechnology, distributed computing, and the entrepreneurial space industry.[38] Google also entered into a partnership with Sun Microsystems in October to help share and distribute each other's technologies.[39] The company entered into a partnership with AOL of Time Warner,[40] to enhance each other's video search services.
The same year, the company became a major financial investor of the new .mobi top-level domain for mobile devices, in conjunction with several other companies, including Microsoft, Nokia, and Ericsson among others.[41] In September 2007, Google launched, "Adsense for Mobile", a service for its publishing partners which provides the ability to monetize their mobile websites through the targeted placement of mobile text ads,[42] and acquired the mobile social networking site, Zingku.mobi, to "provide people worldwide with direct access to Google applications, and ultimately the information they want and need, right from their mobile devices."[43]
In 2006, Google and Fox Interactive Media of News Corp. entered into a US$900 million agreement to provide search and advertising on the popular social networking site, MySpace.[44]
On November 5, 2007 Google announced the Open Handset Alliance to develop an open platform for mobile services called Android.[citation needed]
On March,2008 Google, Sprint, Intel, Comcast, Time Warner Cable,Bright House Networks,Clearwire together found Xohm to provide wireless telecommunication service.
Advertising
99% of Google's revenue is derived from its advertising programs[45]. For the 2006 fiscal year, the company reported US$10.492 billion in total advertising revenues and only US$112 million in licensing and other revenues.[46] Google AdWords allows Web advertisers to display advertisements in Google's search results and the Google Content Network, through either a cost-per-click or cost-per-view scheme. Google AdSense website owners can also display adverts on their own site, and earn money every time ads are clicked.
Software
The Google web search engine is the company's most popular service. As of August 2007, Google is the most used search engine on the web with a 53.6% market share, ahead of Yahoo! (19.9%) and Live Search (12.9%).[47] Google indexes billions of Web pages, so that users can search for the information they desire, through the use of keywords and operators, although at any given time it will only return a maximum of 1,000 results for any specific search query. Google has also employed the Web Search technology into other search services, including Image Search, Google News, the price comparison site Google Product Search, the interactive Usenet archive Google Groups, Google Maps, and more.
In 2004, Google launched its own free web-based e-mail service, known as Gmail (or Google Mail in some jurisdictions).[48] Gmail features spam-filtering technology and the capability to use Google technology to search e-mail. The service generates revenue by displaying advertisements and links from the AdWords service that are tailored to the choice of the user and/or content of the e-mail messages displayed on screen.
In early 2006, the company launched Google Video, which not only allows users to search and view freely available videos but also offers users and media publishers the ability to publish their content, including television shows on CBS, NBA basketball games, and music videos.[49] In August 2007, Google announced that it would shut down its video rental and sale program and offer refunds and Google Checkout credits to consumers who had purchased videos to own.[citation needed]
On February 28, 2008 Google launched the Google Sites wiki as a Google Apps component.[citation needed]
Google has also developed several desktop applications, including Google Desktop, Picasa, SketchUp and Google Earth, an interactive mapping program powered by satellite and aerial imagery that covers the vast majority of the planet. Google Earth is generally considered to be remarkably accurate and extremely detailed. Many major cities have such detailed images that one can zoom in close enough to see vehicles and pedestrians clearly. Consequently, there have been some concerns about national security implications; contention is that the software can be used to pinpoint with near-precision accuracy the physical location of critical infrastructure, commercial and residential buildings, bases, government agencies, and so on. However, the satellite images are not necessarily frequently updated, and all of them are available at no charge through other products and even government sources; the software simply makes accessing the information easier.
Many other products are available through Google Labs, which is a collection of incomplete applications that are still being tested for use by the general public.[citation needed]
Google has promoted their products in various ways. In London, Google Space was set-up in Heathrow Airport, showcasing several products, including Gmail, Google Earth and Picasa.[50][51] Also, a similar page was launched for American college students, under the name College Life, Powered by Google.[52]
In 2007, some reports surfaced that Google was planning the release of its own mobile phone, possibly a competitor to Apple's iPhone.[53][54][55] The project, called Android provides a standard development kit that will allow any "Android" phone to run software developed for the Android SDK, no matter the phone manufacturer. In October 2007, Google SMS service was launched in India allowing users to get business listings, movie showtimes, and information by sending an SMS.[citation needed]
Enterprise Products
Google entered the Enterprise market in February, 2002 with the launch of its Google Search Appliance, targeted toward providing search technology to larger organizations[56]. Providing search for a smaller document repository, Google launched the Mini in 2005.
Late in 2006, Google began to sell Custom Search Business Edition, providing customers with an advertising-free window into Google.com's index[57]. In 2008, Google re-branded its next version of Custom Search Business Edition as Google Site Search[57].
In 2007, Google launched Google Apps Premier Edition, a version of Google Apps targeted primarily at the business user. It includes such extras as more disk space for e-mail, API access, and premium support, for a price of US$50 per user per year. A large implementation of Google Apps with 38,000 users is at Lakehead University in Thunder Bay, Ontario, Canada.[58]
Also in 2007, Google acquired Postini[59] and continued to sell the acquired technology[60] as Google Security Services[61].
ouTube is a video sharing website where users can upload, view and share video clips. YouTube was created in mid-February 2005 by three former PayPal employees.[1] The San Bruno-based service uses Adobe Flash technology to display a wide variety of user-generated video content, including movie clips, TV clips and music videos, as well as amateur content such as videoblogging and short original videos. In October 2006, Google Inc. announced that it had reached a deal to acquire the company for US$1.65 billion in Google stock. The deal closed on November 13, 2006.[2]
Unregistered users can watch most videos on the site, while registered users are permitted to upload an unlimited number of videos. Some videos are available only to users of age 18 or older (e.g. videos containing potentially offensive content). The uploading of videos containing pornography, nudity, defamation, harassment, commercial advertisements and material encouraging criminal conduct is prohibited. Related videos, determined by title and tags, appear onscreen to the right of a given video. In YouTube's second year, functions were added to enhance user ability to post video 'responses' and subscribe to content feeds.
Few statistics are publicly available regarding the number of videos on YouTube. However, in July 2006, the company revealed that more than 100 million videos were being watched every day, and 2.5 billion videos were watched in June 2006. 50,000 videos were being added per day in May 2006, and this increased to 65,000 by July.[3] In January 2008 alone, nearly 79 million users had made over 3 billion video views.[4]
In August 2006, The Wall Street Journal published an article revealing that YouTube was hosting about 6.1 million videos (requiring about 45 terabytes of storage space), and had about 500,000 user accounts.[5] As of April 9, 2008, a YouTube search returns about 83.4 million videos and 3.75 million user channels.[6][7]
As of Q1 2008, YouTube is not profitable, with its revenues being noted as "immaterial" by Google in a regulatory filing.[4] Its bandwidth costs are estimated at approximately $1 million a day.[4] It is estimated that in 2007, YouTube consumed as much bandwidth as the entire Internet in 2000, and that around 13 hours of video are uploaded every minute.[8][9][10]Before the launch of YouTube in 2005, there were few simple methods available for ordinary computer users who wanted to post videos online. With its easy to use interface, YouTube made it possible for anyone who could use a computer to post a video that millions of people could watch within a few minutes. The wide range of topics covered by YouTube has turned video sharing into one of the most important parts of Internet culture.
An early example of the social impact of YouTube was the success of the Bus Uncle video in 2006. It shows an animated conversation between a youth and an older man on a bus in Hong Kong, and was discussed widely in the mainstream media. [14] Another YouTube video to receive extensive coverage is guitar, which features a performance of Pachelbel's Canon on an electric guitar. The name of the performer is not given in the video, and after it received millions of views the New York Times revealed the identity of the guitarist as Jeong-Hyun Lim, a 23-year-old from South Korea who had recorded the track in his bedroom.[15]terms of service,[16] users may upload videos only with permission of the copyright holder and people depicted in the videos. Pornography, nudity, defamation, harassment, commercial advertisements and material encouraging criminal conduct are prohibited. The uploader grants YouTube a license to distribute and modify the uploaded material for any purpose; this license terminates when the uploader deletes the material from the site. Users may view videos on the site as long as they agree to the terms of service; downloading through one's own means or copying of the videos is not permitted.
Further information: Censorship by Google#YouTube ouTube's success unintentionally affected the business of an American company, Universal Tube & Rollform Equipment Corp., whose original website address, utube.com, was at one time frequently overloaded and shut down by high numbers of visitors unsure about the spelling of YouTube's domain name.[17] At the beginning of November 2006, Universal Tube filed suit in federal court against YouTube,[18] requesting that the youtube.com domain be transferred to them.[19] As of June 2008, the web address utube.com is showing a simple placeholder page, while Universal Tube & Rollform Equipment has moved to utubeonline.com. According to a WHOIS domain name search, Universal Tube still owns the domain http://www.utube.com.[20]
CriticismouTube has been criticized frequently for failing to ensure that its online content adheres to the law of copyright. At the time of uploading a video, YouTube users are shown a screen with the following message:
Do not upload any TV shows, music videos, music concerts or commercials without permission unless they consist entirely of content you created yourself. The Copyright Tips page and the Community Guidelines can help you determine whether your video infringes someone else's copyright.
Despite this advice, there are still many unauthorized clips from television shows, films and music videos on YouTube. YouTube does not view videos before they are posted online, and it is left to copyright holders to issue a takedown notice under the terms of the Digital Millennium Copyright Act. Organizations including Viacom and the English Premier League have issued lawsuits against YouTube, claiming that it has done too little to prevent the uploading of copyrighted material.[21][22] Viacom, demanding $1 billion in damages, said that it had found more than 150,000 unauthorized clips of its material on YouTube that had been viewed "an astounding 1.5 billion times". YouTube responded by stating that it "goes far beyond its legal obligations in assisting content owners to protect their works". Since Viacom issued its lawsuit, YouTube has introduced a system that checks uploaded videos against a database of known copyrighted content as a means of reducing violations.[23][24]
In July 2008, Viacom won a court ruling requiring YouTube to hand over data detailing the viewing habits of every user who has watched videos on the site. The move led to concerns that the viewing habits of individual users could be identified through a combination of their IP addresses and login names. The decision was criticized by the Electronic Frontier Foundation, which called the court ruling "a set-back to privacy rights".[25] US District Court Judge Louis Stanton dismissed the privacy concerns as "speculative", and ordered YouTube to hand over documents totalling around 12 terabytes of data. Judge Stanton rejected Viacom's request for YouTube to hand over the source code of its search engine system, saying that there was no evidence that YouTube treated videos infringing copyright differently.[26][27]
In August 2008, a US court ruled that copyright holders cannot order the removal of an online file without first determining whether the posting reflected "fair use" of the material. The case involved Stephanie Lenz from Gallitzin, Pennsylvania, who had made a home video of her 13-month-old son dancing to Prince's song Let's Go Crazy and posted the 29-second video on YouTube. [28]
YouTube has also faced criticism over the offensive content in some of its videos. Although YouTube's terms of service forbid the uploading of material likely to be considered inappropriate or defamatory, the inability to check all videos before they go online means that occasional lapses are inevitable. Controversial areas for videos have included Holocaust denial and the Hillsborough Disaster, in which 96 football fans from Liverpool were crushed to death in 1989.[29][30]
YouTube relies on its users to flag the content of videos as inappropriate, and a member of staff will view a flagged video to determine whether it violates the site's terms of service. [31] In July 2008 the Culture and Media Committee of the House of Commons of the United Kingdom stated that it was "unimpressed" with YouTube's system for policing its videos, and argued that "Proactive review of content should be standard practice for sites hosting user generated content." YouTube responded by stating: "We have strict rules on what's allowed, and a system that enables anyone who sees inappropriate content to report it to our 24/7 review team and have it dealt with promptly. We educate our community on the rules and include a direct link from every YouTube page to make this process as easy as possible for our users. Given the volume of content uploaded on our site, we think this is by far the most effective way to make sure that the tiny minority of videos that break the rules come down quickly." [32]
Blocking
Main article: Blocking of YouTube
YouTube has been blocked in several countries since its inception, including Tunisia, Thailand (which has since been lifted) and Iran. Certain video pages were banned as of October 1, 2007 in Turkey, but this was lifted two days later. More recently on January 22, 2008 Turkey banned YouTube once again but this ban was lifted after three days. YouTube was blocked in Turkey between May and August 2008 after controversy over videos deemed insulting to Mustafa Kemal Atatürk [33]. Certain pages are also banned in United Arab Emirates.
On February 23, 2008, Pakistan blocked YouTube due to "offensive material" towards the Islamic faith, including the display of pictures of the prophet Muhammad.[34] This action by the Pakistani authorities led to a near global blackout of the YouTube site for at least two hours.[35] Thousands of Pakistanis undermined the 3-day block using VPN software called Hotspot Shield.[36] The YouTube ban was lifted on February 26, 2008 after the "offensive material" were removed from the site.[37]
YouTube has been subject to threats of censorship by various countries because of the content it hosts. It was blocked from Mainland China from the October 18, due to the censorship of the Taiwanese flag. URLs to YouTube were redirected to China's own search engine, Baidu. It was subsequently unblocked on October 31.[38]
Schools in certain countries have begun to block access to YouTube due to students uploading videos of bullying behavior, school fights and racist behavior as well as increased bandwidth usage and other inappropriate content.[39]
Spamming
Main article: Spam targeting video sharing sites
With recent improvements to e-mail spam filtering technology and their wider use, spammers have begun using YouTube as way to advertise: popular videos frequently have comments with links to irrelevant external sites, usually with some enticing statements (such as "Great video, go to
for the full version"). To counter this, YouTube has blocked comments with URLs in them since late 2006; if a user tries to post a comment with a URL, it will be discarded and will not show up. As of August 2007, this "feature" seems to have been extended to profile comments as well, although the user will receive an ambiguous "error processing your comment" message. However, posting links is still possible in bulletins, private messages, or group discussions. Also, if a user posts many comments in a short period, they may be asked to complete a CAPTCHA, which was implemented when a notorious spammer abused the lack of a flood control. However, the lack of a CAPTCHA is still present in some areas of the site. Other examples of spammers include users who use non-related-to-video threats (including "Post this message to friends or your mom will die in hours") They may also send messages to a user's inbox (essentially in the form of a plain-text spam email). Some of these spam accounts also posted pornographic videos on YouTube. A slightly newer feature of YouTube is the ability to send invites to people through email by using the "Invite Your Friends" feature. Originally, this feature was indeed a useful feature to build a bigger community using YouTube. When spammers became aware of this, they decided to give it a try and found every email address possible to send random email invites. More so, they've now been able to cheat the system even more.
The messages came from service@youtube.com. [...] The messages look like a legitimate YouTube invite, except they include typical spam content like stock pump-and-dump promotions and links to spam Web sites. Many of them use Microsoft's recent XBox 360 hit "Halo 3" as bait, telling the recipient they have won a free copy of the game and to go to a Web site. If they take the bait and click on "winhalo3.com," the Web site infects them with the Storm Worm, which has been hanging around since August.[40]
Technical notes
Video format
YouTube's video playback technology is based on Macromedia's Flash Player. This technology allows the site to display videos with quality comparable to more established video playback technologies (such as Windows Media Player, QuickTime and RealPlayer) that generally require the user to download and install a web browser plugin in order to view video. Flash also requires a plug-in, but Adobe considers the Flash 7 plug-in to be present on about 90% of online computers.[41] Users can view videos in windowed mode or full screen mode and it is possible to switch modes during playback without reloading it due to the full-screen function of Adobe Flash Player 9. The video can also be played back with third-party media players such as GOM Player, gnash, VLC as well as some ffmpeg-based video players.
Videos uploaded to YouTube are limited to ten minutes in length,[42] and a file size of 1GB. One video at a time can be uploaded through the standard interface, and multiple videos can be uploaded with a Windows based plugin.[43] YouTube converts videos into the Flash Video format after uploading.[44] YouTube also converts content to other formats so that it can be viewed outside of the website (see below).
YouTube accepts uploaded videos in the .WMV, .AVI, .MOV, MPEG and .MP4 formats. It also supports 3GP, allowing videos to be uploaded directly from a mobile phone.[45]
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Yahoo! Inc. (NASDAQ: YHOO) is a United States public corporation with headquarters in Sunnyvale, California, (in Silicon Valley), and provides Internet services worldwide. The company is perhaps best known for its web portal, search engine, Yahoo! Directory, Yahoo! Mail, news, and social media websites and services. Yahoo! was founded by Jerry Yang and David Filo in January 1994 and was incorporated on March 1, 1995.
According to Web traffic analysis companies (including Compete.com, comScore,[3] Alexa Internet,[4] Netcraft,[5] and Nielsen Ratings[6]), the domain yahoo.com attracted at least 1.575 billion visitors annually by 2008 according to a Compete.com study.[7] The global network of Yahoo! websites receives 3.4 billion page views per day on average as of October 2007. It is the second most visited website in the U.S., and the most visited website in the world.[4]
n January 1994, Jerry Yang and David Filo were Electrical Engineering graduate students at Stanford University. In April 1994, "Jerry's Guide to the World Wide Web" was renamed "Yahoo!". Filo and Yang said they selected the name because they liked the word's general definition, which comes from Gulliver's Travels by Jonathan Swift: "rude, unsophisticated, uncouth." Its URL was akebono.stanford.edu/yahoo.[8]
By the end of 1994, Yahoo! had already received one million hits. The Yahoo! domain was created on January 18, 1995.[9] Yang and Filo realized their website had massive business potential, and on 1 March 1995, Yahoo! was incorporated.[10] On April 5, 1995, Sequoia Capital provided Yahoo! with two rounds of venture capital.[11] On 12 April 1996, Yahoo! had its initial public offering, raising $33.8 million dollars, by selling 2.6 million shares at $13 each.
"Yahoo" had already been trademarked for barbecue sauce (and knives (by EBSCO Industries)). Therefore, in order to get the trademark, Yang and Filo added the exclamation mark to the name.[12]
[edit] Growth (1997-1999)
Like many search engines and web directories, Yahoo! diversified into a Web portal. In the late 1990s, Yahoo!, MSN, Lycos, Excite and other Web portals were growing rapidly. Web portal providers rushed to acquire companies to expand their range of services, in the hope of increasing the time a user stays at the portal.
On 8 March 1997, Yahoo! acquired online communications company Four11. Four11's webmail service, Rocketmail, became Yahoo! Mail. Yahoo! also acquired ClassicGames.com and turned it into Yahoo! Games. Yahoo! then acquired direct marketing company Yoyodyne Entertainment, Inc. on 12 October. On 8 March 1998, Yahoo! launched Yahoo! Pager,[13] an instant messaging service that was renamed Yahoo! Messenger a year later. On 28 January 1999, Yahoo! acquired web hosting provider GeoCities. Another company Yahoo! acquired was eGroups, which became Yahoo! Groups after the acquisition on 28 June 2000.
When acquiring companies, Yahoo! often changed the relevant terms of service. For example, they claimed intellectual property rights for content on their servers, unlike the companies they acquired. As a result, many of the acquisitions were controversial and unpopular with users of the existing services.[clarify]
Yahoo! headquarters in Sunnyvale
Yahoo! headquarters in Sunnyvale
[edit] Dot-com bubble (2000-2001)
On January 3, 2000, at the height of the Dot-com boom, Yahoo! stocks closed at an all-time high of $118.75 a share. Sixteen days later, shares in Yahoo! Japan became the first stocks in Japanese history to trade at over ¥100,000,000, reaching a price of ¥101.4 million ($962,140 at that time).[14]
On February 7, 2000, the Yahoo! domain was brought to a halt for a few hours as it was the victim of a distributed denial of service attack (DDoS).[15][16] On the next day, its shares rose about $16, or 4.5 percent as the failure was blamed on hackers rather than on an internal glitch, unlike a fault with eBay earlier that year.
During the dot-com boom, the cable news station CNBC also reported that Yahoo! and eBay were discussing a 50/50 merger.[17] Although the merger never materialized the two companies decided to form a marketing/advertising alliance six years later in 2006.[18]
On June 26, 2000, Yahoo! and Google signed an agreement which retained Google as the default world-wide-web search engine for Yahoo! following a beta trial in 1999.[19]
[edit] Post dot-com bubble (2002-2008)
Yahoo! was one of the few surviving large Internet companies after the dot-com bubble burst. Nevertheless, on September 26, 2001, Yahoo! stocks closed at a five-year low of $4.06 (split-adjusted).
Yahoo! formed partnerships with telecommunications and Internet providers to create content-rich broadband services to compete with AOL. On June 3, 2002, SBC and Yahoo! launched a national co-branded dial service.[20] In July 2003, BT Openworld announced an alliance with Yahoo!.[21] On August 23, 2005, Yahoo! and Verizon launched an integrated DSL service.[22]
In late 2002, Yahoo! began to bolster its search services by acquiring other search engines. In December 2002, Yahoo! acquired Inktomi. In February 2005, Yahoo! acquired Konfabulator and rebranded it Yahoo! Widgets,[23] a desktop application and in July 2003, it acquired Overture Services, Inc. and its subsidiaries AltaVista and AlltheWeb. On February 18, 2004, Yahoo! dropped Google-powered results and returned to using its own technology to provide search results.
In 2004, in response to Google's release of Gmail, Yahoo! upgraded the storage of all free Yahoo! Mail accounts from 4 MB to 1 GB, and all Yahoo! Mail Plus accounts to 2 GB. On 9 July 2004, Yahoo! acquired e-mail provider Oddpost to add an Ajax interface to Yahoo! Mail.[24] On 13 October 2005, Yahoo! and Microsoft announced that Yahoo! Messenger and MSN Messenger would become interoperable. In 2007, Yahoo! took out the storage meters and allowing users unlimited storage.
Yahoo! continued acquiring companies to expand its range of services, particularly Web 2.0 services. Yahoo! Launchcast became Yahoo! Music on February 9, 2005. On March 20, 2005, Yahoo! purchased photo sharing service Flickr.[25] On March 29, 2005, the company launched its blogging and social networking service Yahoo! 360°. In June 2005, Yahoo! acquired blo.gs, a service based on RSS feed aggregation. Yahoo! then bought online social event calendar Upcoming.org on October 4, 2005. Yahoo! acquired social bookmark site del.icio.us on December 9, 2005 and then playlist sharing community webjay on January 9, 2006.
On August 27, 2007, Yahoo! released a new version of Yahoo! Mail that makes it possible for users to send instant messages to the largest combined instant messaging (IM) community including users of Yahoo! Messenger and Windows Live Messenger, to send free text messages to mobile phones in the U.S., Canada, India and the Philippines.[26]
On January 29, 2008, Yahoo! announced that the company was laying off 1,000 employees as the company had suffered severely in its inability to effectively compete with industry search leader Google. The cuts represent 7 percent of the company's workforce of 14,300. Employees are being invited to apply for an unknown number of new positions that are expected to open as the company expands areas that promise faster growth.[27]
In February, 2008, Yahoo! acquired Cambridge, Massachusetts-based Maven Networks, a supplier of internet video players and video advertising tools, for approx. $160 million.
[edit] Failed acquisition attempt by Microsoft
Microsoft and Yahoo! pursued merger discussions in 2005, 2006, and 2007, that were all ultimately unsuccessful. At the time, analysts were skeptical about the wisdom of a business combination.[28][29]
On February 1, 2008, after its friendly takeover offer was rebuffed by Yahoo!, Microsoft made an unsolicited takeover bid to buy Yahoo! for US$44.6 billion dollars in cash and stock.[30][31] Days later, Yahoo! considered alternatives to the merger with Microsoft, including a merger with internet giant Google[32] or a potential transaction with News Corp.[33] However, on February 11, 2008, Yahoo! decided to reject Microsoft's offer as "substantially undervaluing" Yahoo!'s brand, audience, investments, and growth prospects.[34] As of February 22, two Detroit based pension companies have sued Yahoo! and their board of directors for breaching their duty to shareholders by opposing Microsoft's takeover bid and pursuing "value destructive" third-party deals.[35][dead link] In early March, Google CEO Eric Schmidt went on record saying that he was concerned that a potential Microsoft-Yahoo! merger might hurt the Internet by compromising its openness.[36] The value of Microsoft's cash and stock offer declined with Microsoft's stock price, falling to $42.2 billion by April 4.[37] On April 5, Microsoft CEO Steve Ballmer sent a letter to Yahoo!’s board of directors stating that if within three weeks they had not accepted the deal, Microsoft would approach shareholders directly in hopes of a electing a new board and moving forward with merger talks.[38][dead link] In response, Yahoo! stated on April 7 that they were not against a merger, but that they wanted a better offer. In addition, they stated that Microsoft's "aggressive" approach was worsening their relationship and the chances of a "friendly" merger.[39] Later the same day, Yahoo! stated that the original $45 billion offer was not acceptable.[39] Following this, there has been considerable discussion of having Time Warner's AOL and Yahoo! merge, instead of the originally proposed Microsoft deal.[40]
On May 3, 2008, Microsoft withdrew their offer. During a meeting between Ballmer and Yang, Microsoft had offered to raise its offer by $5 billion to $33 per share, while Yahoo! demanded $37. One of Ballmer’s lieutenants suggested that Yang would implement a poison pill to make the takeover as difficult as possible, saying "They are going to burn the furniture if we go hostile. They are going to destroy the place."[41][42]
Analysts say that Yahoo!’s shares, which closed at $28.67 on May 2, are likely to drop below $25 and perhaps as low as $20 on May 5, which would put significant pressure on Yang to engineer a turnaround of the company. Some suggest that institutional investors would file lawsuits against Yahoo!’s board of directors for not acting in shareholder interest by refusing Microsoft's offer.[43][44]
On May 5, 2008, Microsoft's withdrawal sent Yahoo!’s stock spiraling 13% lower to $23.02 in Monday trading and trimmed about $6 billion off of its market capitalization.[45]
After Microsoft's failed bid to acquire Yahoo!, Microsoft is rumored to be looking at acquiring LiveDoor, a leading Japanese portal and the leading blogging service in Japan, to strengthen its position against Yahoo! Japan.
On June 12, 2008, Yahoo announced that it had ended all talks with Microsoft about purchasing either part of the business (the search advertising business) or all of the company. Talks had taken place the previous weekend (June 8), during which Microsoft allegedly told Yahoo that it was no longer interested in a purchase of the entire company at the price offered earlier -- $33/share. Also on June 12, Yahoo announced a non-exclusive search advertising alliance with Google.[46] Upon this announcement, many executives and senior employees have announced their plans to leave the company as it appears that they have lost confidence in Yahoo's strategies. According to market analysts, these pending departures are also impacting Wall Street's perception of the company. [47]
On July 7, 2008, Microsoft said it would reconsider proposing another bid for Yahoo if the company's nine directors were ousted at the annual meeting scheduled to be held on August 1, 2008. Microsoft believes it would be able to better negotiate with a new board. [48]
Billionaire investor Carl Icahn, calling the current board irrational in its approach to talks with Microsoft, launched a proxy fight to replace Yahoo's board. On July 21, 2008 Yahoo settled with Carl Icahn, agreeing to appoint him and two allies to an expanded board.
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