So was someone pumping Yahoo shares?

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The WSJ is now saying that those ‘talks’ between Microsoft and Yahoo are off. One wonders now if they were ever seriously on. Brier Dudley of the Seattle Times is wondering if there’s been any insider skullduggery. After all, Yahoo’s shares jumped after the NY Post published its ‘scoop’.

The New York Post owes everyone a good follow-up story.

You can’t just drop a bombshell that jerks around 80,000 Microsoft and Yahoo! employees, rocks Wall Street and then fizzles before the day is over.

The Post should investigate — and report — whether its anonymous investment banker sources made any money off the huge run in YHOO caused by its story.

If the Post doesn’t do this, the SEC might. We don’t need any more reporter subpoenas.

At the very least, the Post needs to go back to its sources and clarify if and when Microsoft and Yahoo! ended their latest round of merger discussions.

Did the talks end sometime Friday, after the Post story boosted YHOO?

Stay tuned.

Yahoosoft or Microhoo?

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From GMSV…

Yahoo stock is up more than 15 percent today after a New York Post report that Microsoft has formally renewed its effort to take over the Sunnyvale Internet giant at a price tag of $50 billion or more.

Many see the proposed takeover as a reaction by the Redmond, Wash. software sovereign to ever-increasing concerns about keeping up with the Googles, particularly after losing a recent bidding battle for online advertising specialist DoubleClick. With Google developing Internet-based software squarely challenging the dominance of Microsoft’s Office Suite, some think Microsoft has little choice but to move quickly and authoritatively.

Responding to such speculation last May, Yahoo CEO Terry Semel told the Mercury News: “My impartial advice to Microsoft is that you have no chance,” adding that it would not be smart to sell “your right arm while keeping your left.” Yahoo is thus far keeping quiet about today’s report.

Assuming some kind of agreement is reached, it’s all but certain to face heavy antitrust scrutiny. As blogger Vindu Goel points out, the critical question for regulators will be whether the government should allow a company with a monopoly in one field of technology to boost its position to fight another company with a growing monopoly in another field.

Thanks to Rex Hughes for the link to the original NY Post scoop.

The Proper Care And Feeding Of Fools, Internet Edition

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Doug Stewart is not amused by the Digger’s revolt over the AACS DVD key.

To put it frankly, the actions of the digg community are idiotic. They are not “brave”. R3 was not “censoring” their “speech” and the infantile kicking of the ox goad that resulted was ludicrous in the extreme. “Brave” users seeking to stick it to the MPAA “Man” would have posted the offending string on their own blogs and thus exposed themselves to potential litigation, rather than dragging an unwilling digg into the fight. If they seek the destruction of the community they take part in, I can think of no quicker route than to get the creators sued into oblivion.

So well-played, diggers. You managed to make Slashdotters seem principled and Farkers seem reasonable by comparison. Dunces.

Yahoo Photos shutting down

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From CNET News.com…

Yahoo will begin to close down Yahoo Photos, in favor of Flickr, the competing photo sharing site the company bought just over a year ago.

Yahoo Photos users will be given the opportunity to move their pictures over to Flickr. But Garlinghouse admits that Flickr isn’t the right sharing site for many users of Yahoo Photos, so users will be given the option to instead move pictures to Shutterfly or the Kodak Gallery.

This is an interesting move for Yahoo, a company geared towards serving the mass audience of online users. Flickr is a great service, but it’s the black sheep of popular photo sites — it’s got a different organizational system from most sites, it’s more open, and it attracts a more tech-adept user base.

Thanks to Tony Hirst for the link.

Second Life: the grisly details

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From Technology Review…

The world of Second Life is divided into thousands of individual regions, or “sims,” each 65,536 square meters in area (about 16 acres). Linden Lab’s data facilities include more than 20,000 servers, each running one to four sims. The simulation software controls everything going on in its sim, from rendering the terrain and the 3-D models that make up the environment to animating members’ avatars, retrieving their inventories, performing searches, sending instant messages to members in other sims, and communicating with storage databases. If an avatar crosses from one sim into another, every bit of information about that avatar must be handed over to the new sim. The more sims Linden adds to accommodate new members, the more communication goes on between sims, and the greater the burden on each server and on the “backbone” lines connecting them.

“I don’t believe [this architecture] is scalable, at least not to the sizes I want to see it scale to,” said Zero Linden, a “studio director,” or software development manager, at Linden Lab, at a smaller meeting on May 2. (Linden Lab identifies most of its employees only by their in-world names, which always include the surname “Linden.”) But there are “major architectural changes underfoot,” he says, designed to reduce the need for constant connectivity between servers…

Unrest in Cyberspace

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Hmmm…. It’s not just Digg that’s been having trouble with restive users. It seems that Second Life is also having difficulties. Tech Review reports that:

The overseers of Second Life, a complex and booming virtual world hailed by many as the first step toward an immersive 3-D Internet, attempted yesterday to calm angry cyber-citizens who have petitioned for fixes to technical bugs recently plaguing the world.

The main problem, in members’ eyes: Second Life is growing so fast that it’s straining Linden Lab’s resources to the limit, including its developers’ ability to fix old bugs and roll out new software versions that don’t introduce new problems. In a town-hall meeting yesterday inside Second Life, the company appealed for patience.

“We are working to fix bugs and enable incremental improvement,” said Cory Ondrejka, chief technology officer at Linden Lab, the venture-funded San Francisco startup that launched Second Life in 2003. The town-hall meeting was hastily arranged in response to a damning open letter published by irritated Second Life residents on April 30. “At the same time, we are building the foundations for the next-gen architecture that will radically improve our ability to scale,” Ondrejka said.

Every day, some 25,000 computer owners, plus teams from dozens of major corporations, are rushing to join Second Life. But as these new members buy virtual land, set up house for their avatars, and start in-world businesses, the strain on the Second Life “grid” is increasing. Linden Lab is adding more than 120 new servers every week, according to Ondrejka, but users say that the company still isn’t keeping up. Complaints have piled up in Second Life forums and blogs from longtime users impatient over frequent slowdowns and crashes, property that goes missing, messages that aren’t delivered, search and friend-finder functions that don’t work, purchases that aren’t completed, and poor to nonexistent customer service and technical support.

The dissatisfaction culminated this week in the open letter, which demands that Linden Lab address the bugs “immediately,” before rolling out planned features such as voice chat. More than 3,000 Second Life users have signed the letter so far.

“People feel that Linden Lab is failing them because they are paying a great deal, in some cases, for a product that is failing to work acceptably, from a company that will no longer communicate with its customers,” says one signer, a United Kingdom-based IT manager known within Second Life as Inigo Chamerberlin…

OLPC machine won’t run Windows after all

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Phew! Contrary to those rumours last week, Ars Technica is is reporting that Nicholas Negroponte hasn’t done a deal to run Windows on his ‘$100’* laptop…

Late last week the One Laptop Per Child (OLPC) project had a media event in Cambridge, and while I couldn’t make the event, I did tape a video interview for the BBC on the project. During my preparation I kept coming across these claims that Microsoft and OLPC had partnered to put Windows XP Starter Edition on the OLPC, and according to one report, this was being done to get the XO laptop into US schools. None of this jibed with what I had been hearing from sources, so I decided to look into it further. As it turns out, a number of news outlets, including the AP, mischaracterized the situation.

According to Walter Bender, president of Software and Content at OLPC, there is no agreement in place between OLPC and Microsoft to offer XO laptops with any version of Windows. Bender also indicated that Microsoft has not contacted OLPC regarding its $3 software bundling program, nor have any governments requested that the XO be outfitted with Windows. In short, there is no existing collaboration between Microsoft and OLPC aimed at outfitting the XO laptop with Windows.

“We are a free and open-source shop. We have no one from OLPC working with Microsoft on developing a Windows platform for the XO. MS doesn’t get any special treatment from OLPC,” Bender told Ars.

*$175 as of last week.