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When Peer to Peer (P2P) Internet video broadcasters like Joost and Babelgum came on the scene they were the rage of the new thing.  Riding the wave of video sites like YouTube investors lined up to write monstrous checks.  Obscure deals were struck with talent agents.  High profile executives were hired; programming deals struck.  But in all the euphoria two weak spots were largely ignored: the requirement to download software when competing consumer behavior was predominantly browser based, and the question of how much market share could by attained when airing what are largely ubiquitous and non exclusive offerings.

A year later, those questions have come back like a nagging rash.  Adding to the itch, traditional media companies (TV and Film) have since gotten creative and ambitious in launching their own video services. (Examples: News Corp and NBC/U have Hulu, the BBC is at work Project Kangaroo in the U.K.)  In the face of those unanswered questions, and the competition, some are wondering if these high flyers are withering away. They’re asking tough questions about the whole internet video landscape.

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Electronic Arts took its offer to Take Two’s shareholders and Microsoft is on the verge of doing similar with Yahoo.  Monday, Motorola narrowly avoided adding another major proxy fight to the quarter’s tally.  Subject to an agreement announced today, dissident board member Carl Icahn and the rest of Motorola’s board of directors agreed to settle their ongoing battle over board seats and control (Press Release).

In exchange for dropping litigation (filed to gain access to corporate documents) and for his withdrawing a proxy fight for four board seats, Motorola agreed to endorse two of Icahn’s nominees to the board.  The Illinois based company also agreed to both refrain from adding anti takeover provisions like poison pills and a staggered board to the spin-off of the company’s mobile phone business; and to insure Icahn (or his board representatives) will have a significant voice in decisions regarding the spin-off (including the hiring of a CEO).  

These decisions regarding the future handset business are particularly noteworthy. Click to Read More

The thumb wrestling and public positioning continues.  As expected, Yahoo today issued a prompt and dismissive (but diplomatic) reply to Steve Ballmer’s weekend ultimatum.  Yahoo “is not opposed to a transaction with Microsoft if it is in the best interests of our stockholders,” Jerry Yang and Roy Bostock said.  The offer, however, remains too low. Further, they charge that Microsoft’s assertions and threats are misrepresentative and non productive. 

The full text of the 865 word letter is reprinted below. Some of the highlights along with interpretive commentary:

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On a Friday Microsoft made public their offer to buy Yahoo at $31 a share.  Yesterday, another Friday, but two months later and with little progress made, reports circulated that Microsoft might be reconsidering its position.   Today, any confusion on that point was removed.  In a letter to Yahoo Board of Directors (copied below), Steve Ballmer explicitly began the countdown: three weeks.  Three weeks and then things get nasty.

The ultimatum issued via the letter demands negotiations be completed and terms reached.  If they’re not, Microsoft will take the offer, likely at a lower price, straight to the shareholders in a tender offer and proxy fight. 

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Every year, usually in the third week of May, TV executives roll into New York City with an exclusive little circus called “Upfronts.”  Across the city’s famed theaters like Radio City and Carnegie Hall, and in the back rooms of elite hotels, each major network puts on an extravagant show and party: music, celebrities, food and of course, the reason for the show: TV footage.   The audience of advertisers and media buyers takes notes on the presentation of new TV schedules, forms impressions of the projected new programs, and then they make bids for some of the coveted advertising slots.  The whole process unfolds like a futures market for TV advertising.  It’s even treated as a barometer for the advertising industry and a weather forecast for television.  The show is glitzy, over-produced, and especially: exclusive.    If it’s not a network show, it’s not shown.

Thursday, Microsoft, a seemingly unlikely source of original video programming, decided “who needs your Upfronts?” and moreover, “who needs TV.”  Ahead of schedule and paving a new path, the software giant decided to create their own sandbox to play in.  Click to Read More

MySpace began, in part, with the notion of building a bridge between music fans.  Two years ago, the News Corp company made plans for the logical extension: a full service digital music store.  Now, a lawsuit and a long wait later, the 30million plus music listening members (that’s 30m that listen to music on the site) out of their 110 million subscribers will get just that.

This morning, MySpace announced the formation of a standalone joint venture officially called MySpace Music.  In the words of CEO Chris De Wolfe it will be “the marriage of the world’s biggest collection of music to the world’s most popular music community.”

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For years, Yahoo’s Ian Rogers has been among the most respected executives straddling the fence between tech and the music industry.  In overseeing Yahoo’s digital music enterprises, he built a reputation for championing the interests of music fans and for being incredibly candid (especially in his outspoken critique of DRM encryption). Given that shoot from the hip style, it’s no surprise that he began a recent personal blog entry with the phrase, “I may as well set the record straight.”

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