Archive for May, 2008

Google’s Favicon

Did you see Google’s favicon? It’s such a small change but I think it’s important. I spent a good couple of minutes trying to find the right tab–I couldn’t find it because of a change to a very small image from a section of the browser I hardly every look at. You never realize how much these small things really incorporate into your overall web image. I’m amazed that such a small detail can prove to be so important to such a huge audience.

So why the change? What’s the point? Is there something coming? I can’t imagine such a departure from the branding just being nothing. What do you think? Do you have a favicon for your website? How’d you decide what it should be? What comments have you had?

The XO-2

The XO is the laptop designed by One Laptop Per Child to be distributed to children around the world  to “explore, experiment, and express themselves.” The XO currently sells for $200 and starting this fall, they will be rerunning their G1G1 promotion, where if you spend $400 and buy two, one is sent to you, and one is sent to the kids.

Concept designs have recently been released for the XO-2: the price point will hopefully be about $188, and instead of the traditional look of the laptop, they are looking at one touch-sensitive display with a fold in the middle. It’s really getting exciting.

Recently Microsoft paired up with OLPC to offer XP on the XOs instead/in addition to the Linux distro “Sugar”…and they’re getting some mixed feedback. What do you think?

CBS Acquires CNET

Read the full press release from CNET here.

NEW YORK and SAN FRANCISCO, May 15 — CBS Corporation (NYSE: CBS.A and CBS) has entered into an agreement to acquire CNET Networks, Inc.

(Nasdaq: CNET), it was announced today by Leslie Moonves, President and Chief Executive Officer, CBS Corporation. Under the terms of the agreement, CBS will make a cash tender offer for all issued and outstanding shares of CNET Networks for $11.50 per share, representing an equity value of approximately $1.8 billion. The acquisition will make CBS one of the 10 most popular Internet companies in the United States, with a combined 54 million unique users per month, and approximately 200 million users worldwide.

“There are very few opportunities to acquire a profitable, growing, well-managed Internet company like CNET Networks,” said Moonves. “CBS stands for premium content and unparalleled reach, and CNET Networks will add a tremendous platform to extend our complementary entertainment, news, sports, music and information content to a whole new global audience. Together, CBS and CNET Networks will have significant additional exposure to the fastest-growing advertising sector and can accelerate our growth through a number of new content, promotion and advertising initiatives. We could not be more pleased with the prospect of adding CNET Networks and its tremendous team of people to the CBS family. I look forward to working with Quincy Smith, Neil Ashe and the considerable combined talent at both companies, as we build upon our success.”

Choosing An Accurate Domain Name

Domain names can be tricky. All too often, a domain name ends up with some sort of wacky, unintended double entendre of meaning that may detract from your overall branding message. One famous faux pas is Speed of Art’s website, found at www.speedofart.com. With a second look, you can see how this might be a little uncomfortable.

When you choose your domain name, it’s important to follow some simple guidelines to ensure that your website upholds your branding image.

1. Type it out. Sit down in front of your word processor and pick a couple of different fonts. Type the domain in each font and see how it looks. Look at one letter at a time, and see which letter combinations make words that you hadn’t expected.

2. Say it out loud. Watch yourself in the mirror and use a couple of different tones as you say it. Pronounce the letters one at a time and change your inflection.

3. Ask other people. Get a third-party opinion on the domain you’re considering. Call your hosting provider, your advertising agency, or a trusted friend and ask them to look at it from all angles.

You’ll likely want to keep this domain active and engaged for a long time—it’s important to choose wisely.

If you have seen other websites or domain names that might have benefited from a second look, I’d love to see what you’ve found! I know there are a couple in our area that are notorious for neglecting that final proof edit–just stick them in the comments for me.

Microsoft Withdraws Proposal to Acquire Yahoo!

We are now entering the next stage of interesting events in the ongoing Microsoft/Yahoo! saga.

Steve Ballmer has formally withdrawn the offer to acquire Yahoo! in a letter to Yahoo!’s C.E.O. Jerry Yang. The letter was so interesting that I felt it was necessary to include it for you.

Dear Jerry:

After over three months, we have reached the conclusion of the process regarding a possible combination of Microsoft and Yahoo!.

I first want to convey my personal thanks to you, your management team, and Yahoo!’s Board of Directors for your consideration of our proposal. I appreciate the time and attention all of you have given to this matter, and I especially appreciate the time that you have invested personally. I feel that our discussions this week have been particularly useful, providing me for the first time with real clarity on what is and is not possible.

I am disappointed that Yahoo! has not moved towards accepting our offer. I first called you with our offer on January 31 because I believed that a combination of our two companies would have created real value for our respective shareholders and would have provided consumers, publishers, and advertisers with greater innovation and choice in the marketplace. Our decision to offer a 62 percent premium at that time reflected the strength of these convictions.

In our conversations this week, we conveyed our willingness to raise our offer to $33.00 per share, reflecting again our belief in this collective opportunity. This increase would have added approximately another $5 billion of value to your shareholders, compared to the current value of our initial offer. It also would have reflected a premium of over 70 percent compared to the price at which your stock closed on January 31. Yet it has proven insufficient, as your final position insisted on Microsoft paying yet another $5 billion or more, or at least another $4 per share above our $33.00 offer.

Also, after giving this week’s conversations further thought, it is clear to me that it is not sensible for Microsoft to take our offer directly to your shareholders. This approach would necessarily involve a protracted proxy contest and eventually an exchange offer. Our discussions with you have led us to conclude that, in the interim, you would take steps that would make Yahoo! undesirable as an acquisition for Microsoft.

We regard with particular concern your apparent planning to respond to a “hostile” bid by pursuing a new arrangement that would involve or lead to the outsourcing to Google of key paid Internet search terms offered by Yahoo! today. In our view, such an arrangement with the dominant search provider would make an acquisition of Yahoo! undesirable to us for a number of reasons:

•First, it would fundamentally undermine Yahoo!’s own strategy and long-term viability by encouraging advertisers to use Google as opposed to your Panama paid search system. This would also fragment your search advertising and display advertising strategies and the ecosystem surrounding them. This would undermine the reliance on your display advertising business to fuel future growth.
•Given this, it would impair Yahoo’s ability to retain the talented engineers working on advertising systems that are important to our interest in a combination of our companies.
•In addition, it would raise a host of regulatory and legal problems that no acquirer, including Microsoft, would want to inherit. Among other things, this would consolidate market share with the already-dominant paid search provider in a manner that would reduce competition and choice in the marketplace.
•This would also effectively enable Google to set the prices for key search terms on both their and your search platforms and, in the process, raise prices charged to advertisers on Yahoo. In addition to whatever resulting legal problems, this seems unwise from a business perspective unless in fact one simply wishes to use this as a vehicle to exit the paid search business in favor of Google.

•It could foreclose any chance of a combination with any other search provider that is not already relying on Google’s search services.

Accordingly, your apparent plan to pursue such an arrangement in the event of a proxy contest or exchange offer leads me to the firm decision not to pursue such a path. Instead, I hereby formally withdraw Microsoft’s proposal to acquire Yahoo!.

We will move forward and will continue to innovate and grow our business at Microsoft with the talented team we have in place and potentially through strategic transactions with other business partners.

I still believe even today that our offer remains the only alternative put forward that provides your stockholders full and fair value for their shares. By failing to reach an agreement with us, you and your stockholders have left significant value on the table.

But clearly a deal is not to be.

Thank you again for the time we have spent together discussing this.

Sincerely yours,

Steven A. Ballmer
Chief Executive Officer
Microsoft Corporation

(source: http://www.microsoft.com/presspass/press/2008/may08/05-03letter.mspx)

No one really knows where this will go from here, but I am sure there are many people interested to see how this will affect YHOO stock on Monday morning. I would love to hear comments on this topic, so please feel free to speak your mind.

Kind Regards,

Dennis Kittrell