Rick Schwartz just sold CNN the domain iReport.com for $750,000. Schwartz bought the domain in 1997 for “$70 to $100,” he told Silicon Alley Insider. CNN likely bought the domain for its I-Report program. You know, the one where You The Viewer get to do all the work. A concept which jibes just so nicely with Schwartz’s latest post on his personal blog.

Good morning from the HIGH SEAS. I am on the 8th day of a 9-day cruise. Most cabins on a ship are about 200 sq. ft. The cabin I am in is 5,300 sq. ft. Complete with private swimming pool, sauna and jacuzzi. The butler brings breakfast at 8:30 and the concierge takes care of all the daily arrangements. This is the 2nd time in the last 12 months I have taken the same cruise and same suite. It just doesn’t get much better. I like this lifestyle and I will do what I can do to protect it.

Source:Valleywag

Why do some stories abruptly disappear from Digg? Duncan Riley of TechCrunch suspects “super users.” But there’s a much simpler explanation: Digg’s shadowy moderators. Digg cofounder Kevin Rose has admitted that the social-news site, a supposedly democratic venue where users pick the headlines, employs moderators: “We have site moderators that ban spammers, remove illegal content, and keep an eye on things. Always have, always will.” But what, exactly, does keeping an eye on things entail?

According to someone who was approached about a job as a Digg moderator, Digg uses one moderator per topic, and their duties go far beyond patrolling the site for spam. While they don’t have the power to launch a story straight to the homepage, they can adjust the criteria to make it easier or harder for a story to make it big. And in so doing, of course, they exercise editorial judgment. When you submit a story to Digg, it’s not just in the hands of the users; it’s also at the mercy of unnamed Digg editors.

What does this say about Digg? First, that it has failed to match its aspirations as a perfect democracy of news. And second, that as a business, it may be less attractive than some think. The craze among investors these days are for startups where users generate the content, for free, while paid workers do as little work as possible. At Digg, it turns out Tom Sawyer is painting the fence, after all.

What should Digg do? As Rose points out, Digg does need to do some policing of the site to deter spammers and criminals. And spelling out what moderators do could make their jobs harder, as people will inevitably use the information to try to game Digg.

But I think Digg needs to err on the side of transparency here. When a moderator gives a story an assist, or holds it back, users deserve to know what’s happened, and why. Otherwise, conspiracy theories about “super users” will continue to circulate. Digg has in fact begun to change the news business, making traditional editors more accountable to their readers. It’s time Digg’s editors were, too.

“Extraordinary. Incredible. Tremendous. Amazing. Unprecedented. Extraordinary (again). Great. Revolutionary. Great. Extraordinary (yes, again). Unbelievable.” All these words Steve Jobs used to describe the ultra-thin MacBook Air during yesterday’s Macworld keynote. And all without any apparent regard to how that makes laptops which aren’t so thin as the MacBook Air feel. Instead, it takes this brave video from YouTube auteur Kevin Nalts to expose the truth.

Source:Valleywag

Oracle has acquired BEA for $8.5 billion. Sun has acquired MySQL for $1 billion. These events are not coincidence. Oracle, which already makes a database, wants to add BEA’s software on top of that database. Sun, which makes application servers and other software which connects to databases, wants to slip MySQL in underneath that layer. It all adds up to what geeks and software salesmen call a “stack,” or a complete package of interconnecting programs.

The irony is that BEA rose to prominence on the notion that its application server would make things simpler for database buyers. Buy any database you’d like, and BEA’s application server would connect to it. Likewise, MySQL grew as a cheaper, open-source alternative to databases from IBM and Oracle.

A database here, an application server there, a bit of open-source software on top of that all sounds nice in theory. It proved in practice to be a headache for the influential tech buyers at large corporations. One salesperson calling on them, one phone number to dial when things went wrong, it turns out, is what they really wanted.

The consolidation was inevitable, if perhaps a bit sad. The goal of the stack game is to make sure that your software is the layer on top — the one that matters to programmers, the one applications are designed for. BEA and MySQL both had grand ambitions in that regard. Those are now coming to an end. Sun and Oracle will no doubt make grand statements about how compatible their software is, how well their children play with others. Ignore those. The history of IT tells us those promises are false.

Google Maps performed flawlessly for Apple CEO Steve Jobs in today’s Macworld keynote. Yahoo’s Flickr? Utter fail. In a demo of Flickr photos appearing on Apple TV, Flickr was a technical no-show. To those inside the company, this may not have come as a surprise. “

Yahoo has Flickr’s servers on 24-hour watch,” says a former Yahoo employee. Something going wrong is practically the default state for the site, which has grown beyond its technical capabilities. Flickr was down for four hours over the weekend. With founder Stewart Butterfield on paternity leave, and not expected to return to Flickr when his leave ends — word is he might seek another role within Yahoo instead — Flickr’s staff strikes some as dispirited. And other Yahoo employees would rather gripe about Flickr than fix its code.

After I left the Gizmodo/Ars Technica party, I headed down to the Moscone Center to check out the line of Mac fanboys enthusiasts waiting in line 9 hours before the show actually begins. When I got there, I noticed a strikingly familiar face amongst the glow of iPhones and MacBooks: Google Executive Marissa Mayer!

It turns out that, for the past several years, Google employees have staked out early spots in the Macworld keynote admissions line. Arriving well prepared with pizza, coffee and a tent, the Googlers “work” (is this twenty-percent time?) in shifts holding line spots so 40-50 Googlers can get good seats. I convinced a few of the them — including Marissa! — to speak to me for a couple minutes and pose for a picture. Why were they waiting in line so early? “The man gives a great presentation. Hopefully we can learn something.”From left to right: Chrix Finne, Associate Product Manager - Google Reader; Nick Baum, Associate Product Manager - Android; David Murray, Associate Product Manager - Gmail; Fernando Delgado, Associate Product Manager - Search Quality; Marissa Mayer, Vice President, Search Products & User Experience; a friend of Marissa’s whom I believe was named John.

A tipster sent us this alternate version of the Apple teaser ad currently up on Apple.com. According to our tipster, Steve Jobs spent hours meditating to choose between “air” and “water” themes for Macworld. What could “There’s something in the water” mean? We can only speculate, but our best guess is a waterproof ultrathin notebook called the MacBook Water. The MacBook Water was to be specifically designed for scuba divers and other water-sports enthusiasts. (Ahem.) Have any more information? Leave a comment.

Source:Valleywag

News Corp. chairman Rupert Murdoch recently paid a visit to social network Bebo, according to Bebo employee Emma Carlsgaard, who posted an update to her Bebo profile about the sighting. What’s Rupe doing visiting Bebo? A recent rumor suggests acquisition talks.

Last we heard from the social network, Bebo had just hired a bank in order to find a buyer. A flack soon hushed acquisition talk, saying the company was just looking to get more funding. Murdoch’s appearance belies that spin, however.

Why buy Bebo? Three words: Britain, Britain, Britain. According to Hitwise, while MySpace was the no. 10 most visited site in the U.K., Bebo came ahead at No. 7. Murdoch’s not known to happily stay in second place, especially in a key market like the U.K.

Word now comes that Liberty, former cable baron John Malone’s company, has opportunistically paid $340 million for 14 million shares in Barry Diller’s IAC, raising its stake to 30 percent. IAC, too, repurchased 6 million shares at the same time. That means that Diller must have begrudgingly consented to the sale; at the same time, he reached an agreement that prevented Malone from taking a bigger stake in the online conglomerate. But who was the seller?

An obvious guess: Bill Miller, Legg Mason’s chief investment officer, is a famed tech investor, most noted for making an early bet on Amazon.com. But as a stock pick, IAC, has been a stinker, dropping 38 percent over the past year. And Legg Mason is one of only two institutional investors who could have easily parted with 20 million shares. (Lord Abbett, another mutual-fund company, is the only other.)

Miller has been unwinding his stake since March, so a sale would not be surprising. But it’s a blow to Diller nonetheless. The media mogul has sought to boost his company’s shares by splitting it into five more focused parts, targeting specific sectors of e-commerce. Shareholders would then choose which ones they want to invest in. Whoever sold that large stake to Liberty, whether Miller or anyone else, has signalled an obvious choice: none of the above.

Today’s Examiner features a front-page story on Moose’s, the recently remodeled North Beach bar-with-a-very-nice-restaurant-attached that Valleywag has taken over as our Friday happy hour spot. Co-owner and bar dominatrix Valen “rhymes with Van Halen” West lets Owen park his PowerBook right where 20th-century gossip legend Herb Caen’s typewriter used to be. I’ll be there, too, with a couple extra pairs of sunglasses in case you forgot yours. 4 p.m. until Owen’s corporate card maxes out. 1652 Stockton Street on Washington Square. Valet parking for Valley people, or the 9X/30/45 lines for Munitards. (Photo by Jason Steinberg/San Francisco Examiner)

Source:Valleywag

A constant thorn in copyright-holders’s sides, The Pirate Bay is finally taking on water. Swedish authorities, aided by evidence gathered during a 2006 raid, are preparing legal battle against captains Fredrik Neij and Gottfrid Svartholm for “conspiracy to breach copyrights.” Although Pirate Bay doesn’t actively host files, it indexes shared BitTorrent files, which in Hollywood’s eyes makes it equally culpable. The founders are confident they’ll win. The prosecutor, Hakan Roswell, is confident that even if they lose, it “wouldn’t stop the service.” Of course. If Sweden cracks down, the pirates will just seek less-hostile waters.

Source:Valleywag

Valleywag has learned that Amazon.com has invested $4 million in sale-a-day e-commerce site Woot. The deal gives Amazon right of first refusal to buy the company should Woot hit certain unnamed sales targets, want to go public, or sell to another company. For the most part, the companies operate independently. But there’s more to Woot, and its ties to Amazon, than meets the eye.

The company has an extensive back-end sales and distribution network, buying and selling closeout goods to other companies in the industry, including finding items for Amazon to sell on its Gold Box promotion site. It’s expanding into T-shirts and wine, as well. Its fulfillment operations are large and sophisticated enough to qualify for FedEx and USPS’s SmartPost service (though plenty of users have complained about missed SmartPost deliveries, so that’s nothing to brag about). Perhaps the most astounding tidbit of information we got? Woot gets 250,000 views in the first three minutes after midnight from consumers looking to grab the next new item for sale.

Are Microsoft’s second-tier executives all second-rate? Apparently. Microsoft has just tapped Stephen Elop, the COO of Juniper Networks, to run its Business division, which includes the highly profitable Office suite. Elop, the former CEO of Macromedia, is a good fit. But his hire sends an unwelcome message to up-and-comers within Redmond: Keep toiling away, but don’t aspire to run one of Microsoft’s great franchises. Bill Gates can find someone better than you elsewhere. Which should be as good a signal as any for them to start leaving.

We hear that Yahoo TechTicker, the online-video show from Yahoo Finance featuring Valley fox Sarah Lacy and red-hot moneymen Henry Blodget and Paul Kedrosky, is delayed, and won’t be airing early episodes next week as rumored. Dammit! Scott Moore, we blame you for this, too.

Source:Valleywag

“The Wall St. buzz is that msft and yhoo are bidding for eBay. My source tells me that Yahoo! has bid 1.76 shares for eBay ($40-41) and is expected to win at that price.” So writes Scot Wingo, the plugged-in CEO of ChannelAdvisor, an auctions-software maker in which eBay owns a minority stake. Let’s dissect that rumor, shall we?

The deal does offer a generous 25 percent premium to eBay shareholders, pricing the company’s shares at the 52-week-high they briefly touched in October. But as proposed, it would be ruinously dilutive to Yahoo shareholders, leaving them with 36 percent of the combined company. Why a Yahoo shareholder would settle for this escapes me, however, unless they have completely written off Yahoo’s management, brand, and assets.

Which is not out of the question. At the levels Yahoo’s trading at, shareholders are essentially paying for its minority stakes in Yahoo Japan, Alibaba in China, and Gmarket in Korea. But if a shareholder would be disillusioned enough to accept this deal, one wonders why they wouldn’t simply sell their Yahoo shares and buy eBay shares on the open market, where they’re considerably cheaper.

I don’t know if this plan is being seriously considered within Yahoo. As many have written, Yahoo and eBay’s assets make a nice strategic fit, in theory; eBay’s PayPal already has a search-ads partnership with Yahoo, and the two companies have other advertising deals. Google is actively pursuing a profitable combination of search and e-commerce through its Checkout initiative, sharpening the threat to both Yahoo and eBay. Not to mention Skype, which eBay has written off but could find a better fit with Yahoo’s mail and IM products.

But in practice? The reality is that both companies are collections of underused assets, with management that has allowed vital talent to flee. Putting them together might provide a needed shakeout of eBay and Yahoo’s overstaffed executive suites, but the transition would be chaotic and painful.

A much simpler course would be selling out to Microsoft or News Corp., which surely remain interested in Yahoo’s online-advertising business, if they can stomach all the troubles that come with it.

That this rumor is circulating, that it’s even being whispered about, suggests that Jerry Yang may have given up on being rescued by a deep-pocketed buyer. Issuing so much undervalued paper for eBay smacks of desperation. It would keep Yahoo independent, but at a very steep price. So steep that, if it’s being seriously considered, can only mean no one wants to buy Yahoo.

Source:Valleywag

Entrepreneurs. Engineers. Bloggers. You keep asking: Why does a writer like me hate people like you? Nick Denton’s new traffic-based pay scale has backfired wonderfully, giving me a few minutes to explain it.

Entrepreneurs You guys think money is everything. That is, you think money is some sort of universal currency into which anything can be converted, and which can be converted to anything else.

• Good writing is one of the things you can’t buy with just cash. Bill Gates, the richest man in the world, has proven that again and again.

• Even when you guys mean to be helpful, you get it all wrong.
  (A) You encourage me to demand more money from my editors. The only thing they’ll pay extra for is being famous, because that sells more copies without buyers having to read the article first.
  (B) You offer to let me “pick up a few extra bucks” by writing your kids’ college entrance essays.

• Here’s an idea: Pay me to mention your company and/or product in one of my articles. Not that I would, but I’m sure someone else will. The astounding thing is in 11 years I’ve been offered money for everything but a covert endorsement. You guys have a blind spot there.

Engineers It’s hard to be smarter than everyone else, isn’t it? You tech people never ask anything about my job. Instead, you explain it to me.

• You just know that my life as a professional writer must be exactly like your life as a professional software developer or sysadmin. Salespeople must come by my desk and demand I change my articles so they can close a big deal, right?

• You’re 100% certain that if you wrote the article instead of me, it would have been better. Lucky for you, your fellow engineers are like string theorists: They’ll praise this assertion for its elegance and daring, instead of asking you to prove it with a real-world test.
• You’ll explain to me that my ideas for articles start from press releases, and must be reviewed prior to publication by the companies I write about. If I praise your competition, it must mean they bought an ad. You got this worldview from your company’s PR lady. You have a crush on her.
• Do me a favor: 34 percent of the Internet is comments from engineers that begin, “It is unsurprising to me that …” Look, we get it. Nothing surprises you. So it’s unsurprising to us that it’s unsurprising to you. So shut up already.

Bloggers There is, in fact, a special circle of hell reserved for you. You’re keeping it real! Real long, and real dull.

• The only other fields where people spend all their time bragging about themselves and insulting their rivals are talk radio and gangster rap. There’s your level of intellectual discourse.

• Jack Kerouac? He had an editor. Allen Ginsberg? Spent months rewriting “Howl.” Andrew Sullivan? Face time with the world’s best editors, and he still puts me to sleep when he writes solo.
• Free advice: Every time you type the words “not so much,” or “the internets,” or “Techmeme,” reach for that key that says DELETE and press it a few times fast. You’re a better writer already!

(Did you notice? I don’t hate PR people. Sure, I filter all messages with “for immediate release” or “embargo.” But you guys are OK. It helps that you pick up the tab — not the free drinks, but the principle of the thing.)

Nick Denton’s new pay scale — more to the point, the reactions to it — prompted me to write all this down. The thing that ties entrepreneurs, engineers and bloggers together is they all think they know everything. If you can suffer through 150 know-it-all posts, you’ll find that no one got it right, on two counts.

• I hardly know who Nick Denton is. He emails us all “please log out of nexis” once a week, and has posted one comment to my work: “This post breaks the first rule of internet argument.” Since there’s only one rule of Internet argument and it’s “Don’t be boring,” I ignore him. I’m logged out of Nexis already.

• Denton’s new pay scale works like this: Instead of autobilling him twelve bucks a post, I’m now paid a flat fee in exchange for a minimum number of posts. There’s some traffic bonus, but whatever. The important thing is that my extra posts don’t cost Denton anything. So I can now post anything I want without feeling guilty. Here you go.