Telefonica Europe on Wednesday announced that it has acquired voice over Internet Protocol and telephony service Jajah for $207 million in cash.
Reports of the sale and its price had begun to circulate several days ahead of the official announcement. There were also rumors of an ongoing bidding war between Cisco Systems and Microsoft, which were competing with Telefonica for the sale.
Telefonica is a business division of a company most consumers know as O2. It counts some 48.6 million customers as part of its communications business. Jajah, which has several services for consumers, also has business offerings for small business and enterprise users. Jajah says these services will continue to operate as they did before, remaining unaffected by the acquisition.
Maybe they read the Yelp review that says Google's headquarters is infested with skunks and raccoons.
Just a few days after reporting that Google was about 80 percent likely to be acquiring business reviews site Yelp for a totally sweet $500 million, TechCrunch has backtracked. Late Sunday, TechCrunch reported that Yelp CEO Jeremy Stoppelman personally walked away from the deal and that company representatives informed Google over the weekend they aren't selling.
That's odd. People seemed to think it was generally a good deal. TechCrunch isn't exactly sure what went wrong but speculates that Yelp may have gotten a better offer for a potential acquisition or strategic partnership that caused it to bail.
What could also have something to do with it: Google does a lot of things very, very well, but one thing it's never nailed is community. (Knol most certainly didn't kill Wikipedia, Orkut was big in Brazil but then faded in the wake of Facebook's growth, and YouTube's commenters seem to come from a very special place somewhere between the sixth and seventh circles of hell.) That's evident from looking at what Yelpers had to say about the potential deal last week. Proudly opinionated and devoted to the Yelp brand, many Yelpers were concerned that a Google buyout would degrade the site's sense of community--something that could, effectively, kill it.
Perhaps Yelp's execs thought the same and figured that strategic partnerships might be a better route for now.
If Google's rumored $500m acquisition of Yelp goes through, the search giant may finally get a solid lock on the "hyperlocal" Web. But it'll also be acquiring a big community site--and those are notoriously hard to wrangle.
Restaurant industry blog Eater might have put it best: "One can only assume that with Google's muscle behind the site, the millions of users who log on to complain about restaurants would be able to say stupid stuff faster, and with more efficiency," editor Amanda Kludt wrote on Friday.
All snark aside, it's the same sort of issue that arose a few years ago amid persistent rumors that Google was going to acquire Digg, another site reliant on heavy participation from a loyal and extremely vocal community. The questions are more or less similar: What would Google change, and how much would they change it? Does Google's massive scope make it untrustworthy?
Yelp's official word: "Yelp is approached frequently by numerous entities to discuss partnerships, investments and more, and the company does not comment on private discussions that may occur."
Truth be told, the state of Yelp's forums on Friday indicated that many were more interested in talking about "Why are NYC apartment brokers such d-bags?" and "The official 'Jersey Shore' on MTV thread" than about whether Yelp might get sucked up by the Google monster. But a few threads did emerge, and the gist seems to be pretty much the same: They better not change too much. And please keep throwing parties.
"I wonder how this will effect Elite parties as well as Yelp Talk?" one Yelper asked in a Bay Area-centric thread about the acquisition. Another said, "So long as it's not Rupert Murdoch buying it." Some Yelpers were optimistic, suggesting that maybe there would be better integration with Google maps or additional technical improvements.
But others were concerned about quality control. "It means more trolls and fake reviews," one Yelper griped.
"Anyone ever look at the comments on YouTube videos?" another asked. "That is what is gonna happen here."
There were a few threats of account deletion, like "If this happens, I'm deleting my profile" and "Yelp is big because of us. Let's demand money or delete our accounts en masse." Generally, those aren't any real indicator of community revolt, but they're a reminder that it's extremely possible for a big buyer of a community site to mess things up big-time. LiveJournal users weren't thrilled about its Six Apart ownership, which ultimately failed. Likewise, when News Corp. acquired social network MySpace, mismanagement and a lack of innovation were likely what led to a drop in traffic and the eventual dominance of Facebook.
Worth a read: Yelpers' reviews of Google HQ in Mountain View, Calif. Choice bits range from "Google has lots of yummy, organic snacks and drinks" to "They have way too many skunks after 7 p.m. nightly and raccoons living on the Google campus."
This post was updated at 10:48 a.m. PT with comment from Yelp.
Google, probably the most prominent advocate of moving traditional productivity software such as word processors online, acquired a small company called AppJet whose EtherPad service fits into that agenda.
AppJet announced the Google acquisition Friday. "The EtherPad team will continue its work on real-time collaboration by joining the Google Wave team," the site said.
AppJet offered free and premium versions of its service, which could import Microsoft Word documents, Web pages, PDFs, and plain text files, and let groups of people edit them collectively on what it called pad. A "time-slider" feature let people look back at earlier incarnations of a pad.
Google Wave has similarities. It's a sort of hybrid between instant messaging, wikis, and e-mail. Google Chief Executive Eric Schmidt sees Google Wave as the future of collaboration, in particular given its intrinsically networked nature and its real-time view of what collaborating people are up to.
That real-time collaboration is a thorny problem. It can be difficult to permit multiple people permission to edit the same document at the same time while ensuring one person's changes don't interfere with another's work. And showing simultaneous work complicates a service's user interface, too.
Google Docs--the online word processor, spreadsheet, and presentation services--also offers some simultaneous editing abilities. AppJet dings it in its EtherPad FAQ.
"With Google Docs it takes about 5 to 15 seconds for a change to make its way from your keyboard to other people's screens," the site said. "Imagine if whiteboards or telephones had this kind of delay!"
Google Wave and Google Docs are perhaps the closest rivals to AppJet, but in the big picture, the rivalry is between cloud computing and the way most people use productivity software today, on their PCs. Notably, though, Microsoft is working on an online version of its dominant Office suite.
Current EtherPad users should brace themselves for the end of the service: "If you are a user of the Free Edition or Professional Edition, you can continue to use and edit your existing pads until March 31, 2010. No new free public pads may be created. Your pads will no longer be accessible after March 31, 2010, at which time your pads and any associated personally identifiable information will be deleted," AppJet said.
That left one user, JavaScript programmer and jQuery project creator, John Resig, unhappy.
"Super-lame that Etherpad is shutting down. We used it all the time for jQuery planning," Resig said in a tweet on Friday.
Onetime social-networking pioneer Friendster unveiled a new design on Thursday, and it's focusing on the demographic that has kept it afloat for the past few years: the Asian youth market. And according to Reuters, Friendster may also be sold to a buyer in Asia by the end of the month for at least $100 million.
Yes, Friendster still exists. The first big social network to take off, it was surpassed by the likes of MySpace and Facebook, and its popularity in much of the world quickly faded. Now, it says it has 75 million registered users (no word on how many are active), and that 90 percent of its traffic comes from the Asia-Pacific region. It started offering translated versions of the site two years ago.
New to the revamped Friendster are a suite of features designed to capitalize on the social-gaming craze: a virtual currency, an array of games, and virtual gifts.
Friendster CEO Richard Kimber confirmed to Reuters that the company was shopping itself to buyers, and that investment bank Morgan Stanley had been hired to handle the sale and that the company is working with "a shortlist" of potential suitors. It won't be the first time it's been looking to sell: CNET reported in 2005 that investment bank Montgomery & Co. had been hired for the same purpose.
Kimber, a former Googler, joined Friendster last year right around the same time that it raised $20 million in venture funding in a round led by IDG Ventures.
Google has entered into an agreement to acquire online ad-optimization firm Teracent, the search giant announced in a blog post on Monday. The transaction is subject to several closing conditions, but is expected to close by the end of the quarter.
Google said it has been "busy releasing new features and products to help improve display advertising on the Web," according to the blog post. After examining Teracent's technology, the company felt that it fit "neatly" into its display-advertising goals, the blog said.
Teracent certainly brings something new to Google's advertising efforts. The company's technology tweaks images, products, messages, or colors to optimize ad units based on the viewer's location, what language they speak, the kind of content they're viewing, the local time, and how well particular units have performed in the past. It does all that work in real time as the algorithm examines the ad's environment.
"This technology can help advertisers get better results from their display ad campaigns," Google wrote in a blog post. "In turn, this enables publishers to make more money from their ad space and delivers Web users better ads and more ad-funded web content."
Teracent should be integrated into Google's advertising efforts by the end of the quarter. Neither company divulged how much Teracent was acquired for.
Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.
Collaborative-storage provider Box.net on Tuesday announced that it had acquired Mountain View, Calif.,-based Increo Solutions, a company with two Web products: Embedit.in and Backboard.
Financial terms of the deal have not been disclosed.
Embedit.in, which was launched in June, lets users post and share their documents in the cloud using an Adobe Flash-based viewer. And Backboard, which is the company's only paid product, lets users get feedback and collaborate on projects using that same document viewer.
In a company blog post on the acquisition, Box's community manager, Sean Lindo, said these products will continue to run independently but that both would later be integrated into Box.net as added features.
TechCrunch is reporting that Nokia has just acquired social travel start-up Dopplr. The rumored acquisition price is between 10 million and 15 million Euros, which is around $15 million to $22 million.
In an effort to stop the bleeding at the cell phone giant, Nokia has been acquiring a string of smaller companies. With intense competition from Apple's iPhone and RIM's Blackberry, Nokia has been struggling to keep pace in the mobile industry. Om Malik compares the acquisition spree at Nokia to what we have seen at Yahoo in the last few years.
It will be interesting to see how Dopplr as a service fits into Nokia's strategy. It's unclear at this point if it wants the business as it exists, its technology, or its talent. Dopplr has a fairly small, but hardcore user base and has intense competition from companies like TripIt, so it is a curious acquisition choice. If it keeps the service intact at all, look for Nokia to roll out a mobile version of Dopplr out as an exclusive app on their devices.
Automattic, the company behind blogging platform WordPress, announced Tuesday that it has acquired After the Deadline, a service that finds spelling and grammar errors in blog posts. The deal's terms were not disclosed.
After the Deadline's spelling-, grammar-, and style-checking tools are now available to 7.5 million WordPress blogs. It's also available as a downloadable plug-in for WordPress users.
Looking ahead, Automattic plans to make After the Deadline open-source. It hopes the community will play a part in improving it. After the Deadline's founder Raphael Mudge, will stay on at Automattic to deliver After the Deadline to non-English-speaking bloggers.
After the Deadline was first discovered by the Automattic team when WordPress founder Matt Mullenweg saw a comment on Hackernews from After the Deadline's founder discussing how his tool found errors in a New York Times article. He was intrigued and contacted the tool's founder. Just a few months later, After the Deadline is now a part of WordPress.
I've had the opportunity to use After the Deadline on a few occasions. (You can too by inputting content into its demonstration module.) It's one of the most capable error-correction tools I've ever used.
After the Deadline, available now to WordPress users, is free to use.
Citizen news site NowPublic has been sold to another company in the "hyperlocal" space, Examiner.com, the two companies announced Tuesday.
The two sites will operate independently, but Examiner will integrate NowPublic's technology into its site and will encourage NowPublic's contributors to also write for Examiner--right now, the buyer says it has grown 200 percent since the beginning of the year (it launched in April 2008) and has 15,000 active contributors, hoping to hit 30,000 by year's end.
NowPublic's executives, including CEO Leonard Brody, will join the management team of Clarity Digital Group, parent company of Examiner.
"Every day, we hear discussions about whether hyperlocal content will ever be scalable, sustainable, or profitable as a business entity," Examiner CEO Rick Blair said in a release. "With the acquisition of NowPublic, we have the technology to further engage our community of more than 17 million unique visitors per month, and distribute our stories in new and innovative ways."
Was this a bargain-basement acquisition? The companies did not disclose financial terms. But an insider in the space told CNET News that NowPublic had been shopping itself to some pretty big media companies for some time at a higher price than potential buyers were willing to pay. The company had raised about $12 million in venture funding.
Many media companies have simply been launching their own "citizen journalism" initiatives, like CNN's iReport and blogging experiments from newspapers like the Washington Post, which could make an exit tougher for the smaller players.
Digital-media companies like AOL and InterActiveCorp have also made plays to dominate the local-news market--AOL recently acquired local-focused start-ups Patch and Going, the former of which was already a personal investment on behalf of CEO Tim Armstrong, and the Barry Diller-run IAC has been placing a big emphasis on business directory Citysearch.
