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New York, NY- March 07, `08 – CBS RADIO and AOL today announced a ground breaking partnership whereby CBS RADIO will power AOL Radio, combining two of the largest online radio networks and giving millions of listeners unlimited and free access to the most diverse lineup of programming available. Additionally, the two companies will work together to create a number of product enhancements including a new player, as well as complete support for the Mac.

Once the AOL Radio’s stations are integrated into its operations, CBS RADIO will drive advertising sales for AOL’s more than 200 award winning stations in addition to its own online streams of more than 150 radio stations and custom channels.

A brand new state of the art player developed by CBS RADIO and incorporating all the favorite features AOL listeners are accustomed to, and more, will be launched this spring.

The new player will allow audiences to toggle between stations; view song titles, album information and link to websites featuring the current artist being streamed; access favorite stations via presets, rate and share songs with family, friends, and coworkers; purchase individual songs, albums and concert tickets; and link to a host of additional web content, including photos, videos, promotions, contests, news headlines, sports scores, trivia, and concert information, among other topics. More at AOL.

Feb 05, `08 — This Slashdot article highlights future of the Internet in the US. “Time-Warner is now mulling a plan to charge a per-gigabyte fee for internet service. A leaked memo reveals they’re now watching how many gigabytes customers use in a ‘consumption-based’ pricing experiment in Texas, which we discussed early last month. The announced plan was that they were considering a tier-based approach, as opposed to per-gigabyte fees.”

Steven Levy of Washington Post reports, “If you are an Internet-crazy movie lover in Beaumont, Tex., life may soon take a miserable turn for you.

Time Warner Cable, which also sells broadband via its Road Runner service, has chosen your city for a pricing experiment.”

Mr. Levy further adds, “Time Warner’s move illuminates some of the troubling issues facing the United States in the Internet era, where, in terms of penetration, we are in 24th place — behind Estonia — in the international broadband competition.

The news broke about Time Warner’s plan from a leaked internal memo that company spokesman Alex Dudley confirms as genuine.”

More at Slashdot, WashingtonPost.

Feb 05, `08 — Three global record companies, Universal Music Ltd, Sony BMG Music Entertainment (Hong Kong) Ltd and Warner Music Hong Kong Ltd, have launched legal proceedings against China’s top Internet search engine Baidu.com, accusing it of violating copyright by giving access to music files, International Federation of the Phonographic Industry said in a press release on Monday, Feb 04.

* New legal proceedings brought against Baidu
* Copyright infringement actions against Sohu and its associate company Sogou
* Yahoo China in breach of copyright violation judgment

After months of fruitless negotiations, legal proceedings have been filed on Feb 04, against the China’s biggest internet company, Baidu. Separate actions have also been brought against Sohu and its associate company Sogou. Meanwhile, Yahoo China faces fresh proceedings following its refusal to comply with a landmark ruling in December confirming it violated Chinese law by committing mass copyright infringement.

All of the Chinese companies involved operate similar services based on delivering music to their users via “deep links” to hundreds of thousands of infringing tracks on third party sites, with the aim of driving their own advertising revenue. Such services have been confirmed as in breach of copyright by the December judgment of the Beijing Higher People’s Court. Each of them is a driver of copyright abuse in China, where the huge potential for the online music sector is being stymied by copyright theft.

China has potentially the largest online music-buying public in the world with as many broadband connections as the United States. Currently, however, more than 99 per cent of all music files distributed in the country are pirate and China’s total legitimate music market, at US$76 million, accounts for less than one per cent of global recorded music sales.

Monday (Feb 04)’s actions follow in the wake of a decisive judgment against Yahoo China in December 2007 by the Beijing Higher People’s Court. The court’s finding that Yahoo China’s music delivery service is illegal under Chinese law sets a precedent for cases against similar operations in China.

Three record companies have now filed proceedings against Baidu. The new claims have been filed with the Beijing No. 1 Intermediate People’s Court by Universal Music Ltd, Sony BMG Music Entertainment (Hong Kong) Ltd and Warner Music Hong Kong Ltd. The three companies are asking the court to order Baidu to remove all links on its music delivery service to copyright infringing tracks that they own the rights to.

Action is also being taken today against Sohu and its associate company Sogou, which operates a similar service. Sogou makes profits through advertising that appears on the service and through sponsorship. Sogou also actively induces and encourages copyright infringement by means of recommendations and charts, while Sohu provides deep linking services through its associate company.

Sohu is the official sponsor of internet content service (ICS) for the Beijing 2008 Olympic Games.

The legal action is being brought by four record companies: Universal Music Limited, Gold Label Entertainment Limited, Sony BMG Music Entertainment (Hong Kong) Limited and Warner Music Hong Kong Limited. The cases were also filed at the Beijing No.1 Intermediate People’s Court. They follow four prior notices that were sent to both companies from July 2007 onward.

The claims against Baidu, Sohu and Sogou will be served on the respective companies by the court after the Chinese New Year.

Meanwhile, Yahoo China has still not complied with the December ruling made against it by the Chinese appeal court. As a consequence, the plaintiffs in that case have now filed execution proceedings against Yahoo China, asking the court to force Yahoo China to comply with the earlier judgment.

More at International Federation of the Phonographic Industry.

SUNNYVALE, Calif — Feb 05, `08 –BUSINESS WIRE– Zimbra, a Yahoo! company today announced the availability of Zimbra Collaboration Suite (ZCS) 5.0.

ZCS 5.0 includes hundreds of enhancements that expand Zimbra’s access across desktops and devices while setting the standard for Web-based productivity in a business environment, and showcases Yahoo!’s dedication to providing world-class e-mail and collaboration services.

Enhancements in ZCS 5.0 extend Zimbra’s best-of-breed anywhere access on the desktop, including support for Microsoft Outlook 2007, and on virtually any device, with support for BlackBerry Enterprise Server, J2ME-enabled handsets such as the Motorola RAZR, and a new version of ZCS for mobile web browsers. New features in the award-winning Zimbra AJAX Web client include instant messaging, briefcase, and task applications as well as Zimbra Desktop, the world’s first offline-capable Web 2.0 collaboration experience.

New features in ZCS 5.0 include:

– Native e-mail, contacts, calendar, and task synchronization from Zimbra to Outlook 2007
– Access Zimbra on all BlackBerry handsets, J2ME enabled devices, or any mobile web browser, including the Apple iPhone
– Zimbra Tasks monitor start and due dates, priority, progress, and percent complete of tasks
– Built directly into ZCS, Web-based Instant Messaging supports multiple conversations and group chats
– Conveniently store any file from an e-mail in Zimbra Briefcase instead of as an e-mail attachment; easily share Briefcase folders with others
– Work online or offline with Zimbra Desktop, the AJAX experience for Zimbra users and users of existing POP and IMAP e-mail servers
– Share inboxes and e-mail folders with others, including the ability to provide read-only-access or allow others to completely manage
– Fifteen fully certified languages ship within ZCS for end-users to choose

New Yahoo! and Zimbra Integrated Services
New Zimlets in ZCS 5.0 leverage Yahoo! properties, including Flickr, Yahoo! Local, Yahoo! Finance, and Yahoo! Search. Later this year, Zimbra’s innovative technologies will be incorporated into properties including Yahoo! Mail and Calendar.

More at Yahoo!, Zimbra.

Los Angeles, Calif — Feb 04, `08 — Yahoo will cease operating its online music subscription service and switch its customers to RealNetworks’ Rhapsody music service as part of a new deal between the companies that calls for Yahoo to promote Rhapsody on its site, the AP reports.

Terms of the deal, to be formally announced later today, were not disclosed. The move is part of Yahoo’s overhaul of its online music offerings.

Yahoo Music Unlimited lets users download an unlimited number of tracks that are playable as long as their plan is active.

Under the Yahoo-RealNetworks partnership, subscribers to Yahoo Music Unlimited will be shifted to the Rhapsody service sometime in the first half of this year. Yahoo subscribers’ music library and payment plans will remain the same for a limited time after the switch, but those wishing to remain on Rhapsody eventually will be required to sign up at Rhapsody’s rates.

Yahoo’s subscription rates range from $5.99 a month, if users pay for a full year in advance, or $8.99 a month. Rhapsody memberships start at $12.99 a month. More at AP.

Feb 04, `08 — The first big steps on the road to overhauling the Internet’s core addressing system have been taken, Reports BBC.

On Monday the master address books for the net are being updated to include records prepared in a new format known as IP version 6. Widespread use of this format will end the shortage of addresses that sites can be given. The net’s current addressing scheme is expected to exhaust the pool of unallocated addresses by 2011.

Although people use words to navigate around the web, computers use numbers. A human may type news.bbc.co.uk into a browser bar but the PC trying to reach that site will use a numerical equivalent that it gets from the net’s master address books.

On 4 February the master or root servers for the net will have a small number of records added that are written in IP version 6 (IPv6) added to them. This means for the first time that computers using IPv6, typically a PC and a server, can find each other without involving any IPv4 technology. More at the BBC.

San Francisco, Calif — Feb 03, `08 — Yahoo! would consider a business alliance with Google as one way to rebuff a $44.6 billion takeover proposal by Microsoft, Reuters reported citing a source familiar with Yahoo’s strategy said on Sunday.

The report further said, “a second source close to Yahoo said it had received a procession of preliminary contacts by media, technology, telephone and financial companies. But the source said they were unaware whether any alternative bid was in the offing.

Few natural bidders exist beside Google that could engage in a bidding war, and Google would be unlikely to win approval from antitrust regulators, some Wall Street analysts said on Friday.

Yahoo!’s efforts to find an alternative bidder could simply be a measure to pressure Microsoft to boost its bid, which valued Yahoo at $44.6 billion when first announced on Friday.” More at Reuters.

In response to Google’s foul cry over Microsoft’s Yahoo! bid, Microsoft has released a statement from Bard Smith, General Counsel:

REDMOND, Wash — Feb 03, `08 — The combination of Microsoft and Yahoo! will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The alternative scenarios only lead to less competition on the Internet.

Today, Google is the dominant search engine and advertising company on the Web. Google has amassed about 75 percent of paid search revenues worldwide and its share continues to grow. According to published reports, Google currently has more than 65 percent search query share in the U.S. and more than 85 percent in Europe. Microsoft and Yahoo! on the other hand have roughly 30 percent combined in the U.S. and approximately 10 percent combined in Europe.

Microsoft is committed to openness, innovation, and the protection of privacy on the Internet. We believe that the combination of Microsoft and Yahoo! will advance these goals. More at Microsoft.

Feb 03, `08 — In a statement released today on Google’s press center, Mr. David Drummond, Google’s Senior Vice President, Corporate Development and Chief Legal Officer cries foul over Microsoft’s Yahoo! bid.

Mr. David Drummond in his rude and venomous language falsely accuses Microsoft of making ” hostile bid ”. He says, “So Microsoft’s hostile bid for Yahoo! raises troubling questions. This is about more than simply a financial transaction, one company taking over another.”

Now Mr. Drummond do you even know or have any remote idea how many take overs Google have made in last five years or so ??

He also says, “Users benefit from constant innovation. It’s what makes the Internet such an exciting place.”

Mr. Drummond do you actually mean supporting rampant piracy through YouTube, when you say “Users benefit from constant innovation” ??

Do you even have any remote idea of how many pirated videos of Movies, TV Shows, Dramas, Music Videos, etc are being hosted at any given moment ??

Mr. Drummond further goes on to say, “This hostile bid was announced on Friday so there is plenty of time for these questions to be thoroughly addressed.”

Mr. Drummond when even Yahoo! in its official response refers to Microsoft’s proposal as “an unsolicited proposal”, who are you in the world to refer that proposal as “hostile” ??

And Mr. Drummond when you say, “It’s about preserving the underlying principles of the Internet: openness and innovation”, do you actually mean that buying DoubleClick despite the immense privacy concerns from within the US and from Europe ??

If Google were to believe in its well publicized but never implemented ideology of ” Do NO Evil ” then Mr. Drummond why in the world Google needed to buy YouTube or DoubleClick? Google was already making tons of millions anyway… Google could have let YouTube / DoubleClick make money for themselves or let some one else buy ‘em (of course you would have stopped Microsoft from buying any of ‘em either, right?)

So Mr. Drummond before making entirely false claims using rude and venomous language, it would have been better if you have just took a little look at Google’s own past 10 years.

Or may be fear of loosing monopoly and loosing world dominance makes you speak highly rude & venomous language along with highly exaggerated claims and false acquisitions ??

Google’s statement on Microsoft’s bid for Yahoo!

Feb 03, `08 — As Swedish prosecutors fixed their sights last week on The Pirate Bay, an Internet file-sharing service that is a scourge of the movie and music industries, the operators of the site responded by hoisting a defiant, digital Jolly Roger, reports the IHT.

The Pirate Bay, on its blog, called for a celebration saying, “This week we’ve hit some magic numbers. We’re tracking over 1 million torrents. We have had over 10 million simultaneous peers on the trackers. We’re at 2.5 million registered users (and they are active as well).”

The 100th post on the Pirate Bay blog further adds, “In case we lose the pending trial (yeah right) there will still not be any changes to the site. The Pirate Bay will keep operating just as always. We’ve been here for years and we will be here many more.”

The Wires writes, “Peter Sunde Kolmisoppi, one of the four Swedes charged in Sweden on Thursday, said in a telephone interview that the site has set up a clandestine, double-blind operation with its servers spread throughout the world — and out of reach of the Swedish authorities.

“The Pirate Bay is not in Sweden,” the 29-year-old Kolmisoppi said. Where are the servers?

“It’s a distributed system. We don’t know where the servers are. We gave them to people we trust and they don’t know it’s The Pirate Bay,” Kolmisoppi said. “They then rent locations and space for them somewhere else. It could be three countries. It could be six countries. We don’t want to know because then you’ll have a problem shutting them down.” More at IHT, theWired.

Feb 03, `08 –This Slashdot article reports on a new Italian copyright law, in which the Italian parliament may have mistakenly legalized sharing music over P2P networks.

The new copyright law, passed by both houses of parliament, would allow Italians to freely share music over the Internet as long as it is free of charge, at low resolution or “degraded,” for scientific or educational use, and only when such use is not for profit.

Excerpts of the Slashdot article:
According to Italian lawyer Andrea Monti, an expert on copyright and Internet law, the new Italian copyright law would authorize users to publish and freely share copyrighted music (p2p included). As Monti says in the interview, those who wrote it didn’t realize that the word “degraded” is technical, with a very precise meaning, which includes MP3s, which are compressed with an algorithm that ensures a quality loss. The La Repubblica.it article in Italian, and Google translation is here. More at Slashdot.

Feb 03, `08 — This Slashdot article writes about Time Warner internet access subscribers in Texas complaining of connectivity issues on Apple’s iTunes support forum.

“Starting on Thursday, January 31st, Time Warner subscribers in Texas starting experiencing connectivity issues to the iTunes store to the point where the service wasn’t usable. General internet traffic issues haven’t coincided with these problems, and many folks have reported that the store works as normal when they head to the nearest mega-bookstore and use their ISP instead. Time Warner has announced that they’re going to begin trials of tiered pricing in one local Texas market, but I’ll be darn sure to switch my provider if I hear the slightest hint of destination/content based tiers instead of bandwidth tiers.”

Excerpts from the Apple - Support - Discussions:

Thread starter post by user “kmcippant”:

iTunes Store Very Slow Posted: Jan 31, 2008 8:33 PM

I was impressed last week when I downloaded an entire album in under 10 minutes, now the store is very sluggish. I could not preview any tracks without it buffering 8 times and now it is taking me 10 minutes just to download one song. The rest of my internet is working fine.

Please check on your servers.

User “ranpritch” writes:
Same problem here in Euless, Tx (suburb DFW). Started to buy movie last night. Estimated download 36 hours. Stopped & started the download several times, but to no avail. Now, almost 24 hrs later the movie is half the way downloaded! I have checked my Time Warner cable speed & get pings from west & east coast from 4.8 to 6.0 mbps. I can normally download movies from ITunes in 15 to 20 minutes. Downloads from other sites are normal. What gives?!

User “hondo01″ writes:
I am also experiencing the same issues with iTunes. It keeps trying to rebuffer the stream with songs or videos. I am using iTunes 7.6 (29) with Mac OSX 10.5.1. I also have a windows machine with iTunes 7.5 loaded and it now does the same thing. I have tried taking both systems off the wireless router and plugging directly into the broadband router and still get the same problems. I have noticed that most all of these threads are from users in Texas. Is everyone using Time Warner Roadrunner? Just curious if this could be an ISP problem.

User “sundevil86″ writes:
I’m a Roadrunner user from Texas too! And I did NOT upgrade to 7.6 yet. Same problem as everyone else, VERY sluggish iTunes performance–but NO problems with streaming media from any other sites. So it may be an ISP problem in part, but is still only affecting iTunes.

User “bdskip” writes:
Experiencing the same issue with TWC in Arlington as well…did notice that a 10:00 podcast downloaded in about 7 seconds, yet a single 3:00 song purchase takes 15 minutes or longer to download.

Not sure what any of that means, but I’m beginning to think TWC is somehow throttling bandwidth related to music and video content on iTunes.

More at Slashdot, Apple Support Discussions.

Feb 03, `08 — Nicki Dugan on Yahoo’s Corporate Blog ( Yodel Anecdotal ) said that, “process like this is fluid and can take quite a bit of time” to weigh its strategic options, including keeping the company independent, following Microsoft’s $44.6 billion offer to buy the company.

Here is the complete posting:

Our response to Microsoft’s proposal

Posted February 1st, 2008 at 1:11 pm by Nicki Dugan, Blog Editor

Number of Comments 17 Comments / Filed in: Trends & News

As I’m sure you’ve heard by now, Microsoft made an unsolicited proposal to acquire Yahoo! yesterday evening. Since then, we’ve gotten quite a number of questions about what this means for Yahoo!. Right now our board of directors is evaluating the proposal and looking at all of our strategic alternatives, including maintaining Yahoo! as an independent company.

A review process like this is fluid and can take quite a bit of time, so while there’s not much we can say right now, we did want to refer you to this brief FAQ for more information.

Nicki Dugan
Blog Editor

Tagged: microsoft, news

In a media response to a frequently asked question about whether Yahoo would seek proposals from other companies, Yahoo! press room said it was going to evaluate all options.

Yahoo!’s Media Response:

FAQ: Unsolicited Proposal From Microsoft

Q1. How is Yahoo! responding to Microsoft’s proposal?
The Yahoo! Board is undertaking a deliberate review process. They’re going to take time to thoroughly evaluate the proposal in the context of Yahoo!’s strategic plans. This will include evaluating all of the Company’s strategic alternatives – including maintaining Yahoo! as an independent company. That process will take some time, but the Board will ultimately pursue the option that it believes can best maximize value for our shareholders.

Q2. How long will the Board’s review process take?
A review process like this is fluid, and it can take quite a bit of time.

Q3. Will the Board seek proposals from any other companies?
The Board is going to evaluate all of Yahoo!’s strategic alternatives and pursue the option that it believes can best maximize value for our shareholders.

Q4. What would a deal like this mean for Yahoo!’s users, advertisers, publishers, partners and people?
Yahoo!’s Board is going to evaluate all aspects of this proposal carefully and promptly in the context of the company’s strategic plans and alternatives. So it wouldn’t be appropriate to speculate about the potential benefits or challenges of a deal. But the review process that’s underway won’t have any impact on our efforts to deliver value to all of our users, advertisers, publishers and partners – as well as new and exciting opportunities to our employees.

Citing analysts, Reuters reported that, “Comcast Corp, Viacom Inc and General Electric Co among possible bidders, although they also said few companies had the balance sheet to compete with Microsoft or were as natural a fit for Yahoo.”

More at Yahoo! here and here.

Below is the text of the letter that Microsoft sent to Yahoo!’s Board of Directors:

January 31, 2008

Board of Directors
Yahoo! Inc.
701 First Avenue
Sunnyvale, CA 94089
Attention: Roy Bostock, Chairman
Attention: Jerry Yang, Chief Executive Officer

Dear Members of the Board:

I am writing on behalf of the Board of Directors of Microsoft to make a proposal for a business combination of Microsoft and Yahoo!. Under our proposal, Microsoft would acquire all of the outstanding shares of Yahoo! common stock for per share consideration of $31 based on Microsoft’s closing share price on January 31, 2008, payable in the form of $31 in cash or 0.9509 of a share of Microsoft common stock. Microsoft would provide each Yahoo! shareholder with the ability to choose whether to receive the consideration in cash or Microsoft common stock, subject to pro-ration so that in the aggregate one-half of the Yahoo! common shares will be exchanged for shares of Microsoft common stock and one-half of the Yahoo! common shares will be converted into the right to receive cash. Our proposal is not subject to any financing condition.

Our proposal represents a 62% premium above the closing price of Yahoo! common stock of $19.18 on January 31, 2008. The implied premium for the operating assets of the company clearly is considerably greater when adjusted for the minority, non-controlled assets and cash. By whatever financial measure you use - EBITDA, free cash flow, operating cash flow, net income, or analyst target prices - this proposal represents a compelling value realization event for your shareholders.

We believe that Microsoft common stock represents a very attractive investment opportunity for Yahoo!’s shareholders. Microsoft has generated revenue growth of 15%, earnings growth of 26%, and a return on equity of 35% on average for the last three years. Microsoft’s share price has generated shareholder returns of 8% during the last one year period and 28% during the last three year period, significantly outperforming the S&P 500. It is our view that Microsoft has significant potential upside given the continued solid growth in our core businesses, the recent launch of Windows Vista, and other strategic initiatives.

Microsoft’s consistent belief has been that the combination of Microsoft and Yahoo! clearly represents the best way to deliver maximum value to our respective shareholders, as well as create a more efficient and competitive company that would provide greater value and service to our customers. In late 2006 and early 2007, we jointly explored a broad range of ways in which our two companies might work together. These discussions were based on a vision that the online businesses of Microsoft and Yahoo! should be aligned in some way to create a more effective competitor in the online marketplace. We discussed a number of alternatives ranging from commercial partnerships to a merger proposal, which you rejected. While a commercial partnership may have made sense at one time, Microsoft believes that the only alternative now is the combination of Microsoft and Yahoo! that we are proposing.

In February 2007, I received a letter from your Chairman indicating the view of the Yahoo! Board that “now is not the right time from the perspective of our shareholders to enter into discussions regarding an acquisition transaction.” According to that letter, the principal reason for this view was the Yahoo! Board’s confidence in the “potential upside” if management successfully executed on a reformulated strategy based on certain operational initiatives, such as Project Panama, and a significant organizational realignment. A year has gone by, and the competitive situation has not improved.

While online advertising growth continues, there are significant benefits of scale in advertising platform economics, in capital costs for search index build-out, and in research and development, making this a time of industry consolidation and convergence. Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo! can offer a credible alternative for consumers, advertisers, and publishers. Synergies of this combination fall into four areas:

Scale economics: This combination enables synergies related to scale economics of the advertising platform where today there is only one competitor at scale. This includes synergies across both search and non-search related advertising that will strengthen the value proposition to both advertisers and publishers. Additionally, the combination allows us to consolidate capital spending.

Expanded R&D capacity: The combined talent of our engineering resources can be focused on R&D priorities such as a single search index and single advertising platform. Together we can unleash new levels of innovation, delivering enhanced user experiences, breakthroughs in search, and new advertising platform capabilities. Many of these breakthroughs are a function of an engineering scale that today neither of our companies has on its own.

Operational efficiencies: Eliminating redundant infrastructure and duplicative operating costs will improve the financial performance of the combined entity.

Emerging user experiences: Our combined ability to focus engineering resources that drive innovation in emerging scenarios such as video, mobile services, online commerce, social media, and social platforms is greatly enhanced.

We would value the opportunity to further discuss with you how to optimize the integration of our respective businesses to create a leading global technology company with exceptional display and search advertising capabilities. You should also be aware that we intend to offer significant retention packages to your engineers, key leaders and employees across all disciplines.

We have dedicated considerable time and resources to an analysis of a potential transaction and are confident that the combination will receive all necessary regulatory approvals. We look forward to discussing this with you, and both our internal legal team and outside counsel are available to meet with your counsel at their earliest convenience.

Our proposal is subject to the negotiation of a definitive merger agreement and our having the opportunity to conduct certain limited and confirmatory due diligence. In addition, because a portion of the aggregate merger consideration would consist of Microsoft common stock, we would provide Yahoo! the opportunity to conduct appropriate limited due diligence with respect to Microsoft. We are prepared to deliver a draft merger agreement to you and begin discussions immediately.

In light of the significance of this proposal to your shareholders and ours, as well as the potential for selective disclosures, our intention is to publicly release the text of this letter tomorrow morning.

Due to the importance of these discussions and the value represented by our proposal, we expect the Yahoo! Board to engage in a full review of our proposal. My leadership team and I would be happy to make ourselves available to meet with you and your Board at your earliest convenience. Depending on the nature of your response, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.

We believe this proposal represents a unique opportunity to create significant value for Yahoo!’s shareholders and employees, and the combined company will be better positioned to provide an enhanced value proposition to users and advertisers. We hope that you and your Board share our enthusiasm, and we look forward to a prompt and favorable reply.

Sincerely yours,

/s/ Steven A. Ballmer

Steven A. Ballmer

Chief Executive Officer

Microsoft Corporation

More at Microsoft.

WASHINGTON — Feb 01, `08 — Although a major auction of prime public airwaves, the 700 MHz, is far from finished, there already appears to be a big winner: the US consumer.

A bid on the largest portion of public wireless airwaves, now being auctioned by the US government, reached $4.7 billion Thursday, surpassing a threshold price that would trigger so-called open-access rules that would allow any legal mobile device or software program to use those airwaves.

While bidding was anonymous, analysts speculated that Google and Verizon Wireless, a joint venture between Verizon Communications and Vodafone Group, were the likely bidders on that swath, or about one-third of the total spectrum being auctioned.

Winners, however, will not be known until the entire auction by the U.S. Federal Communications Commission ends, a process that could take several more weeks. The auction began Jan. 24.

To retain the open-access conditions on that spectrum, a minimum $4.6 billion bid was required. The commission is selling a spectrum that is being freed as part of the switch to digital television in February 2009. The airwaves are considered especially valuable because the frequencies travel long distances and can easily pass through walls.

The rules, advocated by Google and a coalition of consumer and public interest groups, will help pry open traditionally closed wireless networks that prevent people from taking their phones with them when switching providers.

Google, AT&T and Verizon Communications are among 214 qualified bidders for nearly 1,100 licenses to pieces of the spectrum that vary from a nationwide swath to regional slivers.

Because of strict rules to prevent collusion, bidders won’t be identified until the auction ends, and companies are forbidden from commenting on their activity. Based on the limited bidding information available, Verizon is probably the high bidder on the open-access chunk, but Google is also a possibility, said Blair Levin, an analyst at brokerage Stifel, Nicolaus & Co.

“The amount of activity that we’ve already seen occurring demonstrates just how significant the interest is in this piece of spectrum,” FCC Chairman Kevin J. Martin said.

“The openness requirement is important both in terms of the innovation it will lead to on the edges of the network and the ability of consumers to take advantage of that innovation,” Martin further added during a briefing with reporters yesterday.

Feb 01, `08 — Four men who run one of the most popular file-sharing sites in the world have been charged with conspiracy to break copyright law in Sweden, the BBC reported on Thursday.

Pirate Bay does not store music and video files on its own servers, but instead helps users share them on the internet. The website acts as a directory of the files used by the BitTorrent file-transfer protocol.

“It’s not merely a search engine. It’s an active part of an action that aims at, and also leads to, making copyright protected material available,” public prosecutor Hakan Roswall told Reuters. “It’s a classic example of accessory — to act as intermediary between people who commit crimes, whether it’s in the physical or the virtual world.”

Pirate Bay told the news agency that the people running the site cannot be held responsible for how its directory services are used. The website is said to have between 10 and 15 million users around the world and is supported by online advertising.

Police seized computers in May 2006, temporarily shutting down the website.

Prosecutor Hakan Roswall said the website was commercially exploiting copyright-protected work because it was financed through advertising revenues. According to the Pirate Bay website, its users are currently downloading close to a million files.

On the site, a statement says: “In case we lose the pending trial (yeah right) there will still not be any changes to the site.

“The Pirate Bay will keep operating just as always. We’ve been here for years and we will be here many more.”

In an interview with the BBC’s technology programme Click last year Pirate Bay co-founder Peter Sunde said: “I think it’s okay to copy. They get their money from so many places that the sales is just one small part.”

The other three men facing charges are Carl Lundstrom, Frederik Neij and Gottfrid Svartholm Warg. If convicted, the four men could face a maximum of two years in prison.

The website had up until 2006 based its servers in Stockholm, but moved some to the Netherlands after a raid in May of that year by Swedish police, who seized equipment and held three people for questioning “on suspicion of breaking copyright law or abetting the breaking of copyright law,” authorities said. The site was taken down for a day, but was soon up and running again.

Moves against the site have been backed by entertainment industry groups, including the Motion Picture Association of America and the International Federation of the Phonographic Industry. More at BBC News.

WASHINGTON — Feb 01, `08 — US and European antitrust regulators aren’t likely to prevent Microsoft from buying Yahoo, analysts said Friday, though scrutiny of the deal could drag on for months, the AP reported.

A major factor weighing in Microsoft’s favor, analysts said, is Google’s dominance in the online search and advertising businesses — the two areas regulators are likely to focus on when weighing market power issues raised by the nearly $45 billion unsolicited bid.

The Justice Department said it is “interested” in reviewing competition issues raised by Microsoft’s surprise offer. The Federal Trade Commission and European Union officials declined to comment. If the deal goes through, analysts expect Congress and European regulators to review the combined company’s increased competitive edge.

“I don’t see this just sailing through, regulators will look at it,” Ted Henneberry of the London law firm Heller Ehrman said. But even after a review that could take up to six months, he said a Microsoft-Yahoo combination isn’t likely to be stopped because the new entity’s share of the online ad space would still be dwarfed by Google, which already controls nearly 60 percent of the U.S. search market.

“The fact that Google dominates this business will be a big factor in (Microsoft’s) favor in trying to get this approved by the regulators,” said Keith Hylton, a professor of antitrust law at Boston University. More at AP.

San Francisco, CA — Feb 01, `08 — Microsoft made an unsolicited $44.6 billion cash and stock bid for Yahoo late Thursday, a deal that could shake up the competitive and lucrative market for online advertising.

The surprise offer of $31 per share, which represents a 62% premium from where Yahoo stock closed on Thursday, made late Thursday and announced Friday, seizes on Yahoo’s weakness while Microsoft tries to muscle up in a high-stakes battle with Google likely to define the technology landscape for years to come. Shares of Yahoo shot up 50% at the start of trading Friday, while shares of Dow component Microsoft tumbled about 5%.

In a statement Friday, Yahoo said it will “carefully and promptly” study Microsoft’s bid.

With its profits steadily sliding, Yahoo’s stock slipped to a four-year low earlier this week and a new management team has been trying to steer a turnaround but sees more turbulence through 2008.

In conference call Friday morning, Microsoft Chief Executive Steve Ballmer indicated he won’t take no for an answer after Yahoo rebuffed takeover overtures a year ago.

“This is a decision we have — and I have — thought long and hard about,” Ballmer said. “We are confident it’s the right path for Microsoft and Yahoo.”

Besides the question of Yahoo’s acceptance, Microsoft’s bid also faces regulatory scrutiny in Washington and Europe. On Friday, the Justice Department said it is “interested” in reviewing antitrust issues. European Union officials declined to comment.

If the deal is consummated, it would be by far the largest acquisition in Microsoft’s history, eclipsing last year’s $6 billion purchase of online ad service aQuantive.

Microsoft publicly disclosed its cash-and-stock offer in hopes of rallying support from Yahoo’s shareholders, making it more difficult for Yahoo’s board to turn down the bid.

Microsoft’s previous offer was rebuffed by Terry Semel, who stepped aside last year as chief executive under shareholder pressure.

Microsoft sent its latest takeover offer to Yahoo late Thursday, shortly after Semel resigned as the company’s chairman. The letter is addressed to Semel’s successors, new Chairman Roy Bostock and the current CEO, co-founder Jerry Yang, who is one of Yahoo’s largest shareholders.

In a prepared statement, Yahoo said its board “will evaluate this proposal carefully and promptly in the context of Yahoo’s strategic plans and pursue the best course of action to maximize long-term value for shareholders.”

“We are very, very confident this is the right path for Microsoft and for Yahoo,” he said.

Microsoft hopes to close the deal by the end of the year. Ballmer said that Microsoft has been in “off and on” talks with Yahoo for 18 months and said he called Yahoo CEO Jerry Yang Thursday night to tell him the bid was coming.

A Microsoft-Yahoo combination would create a powerful number two player in the online search business, which Google commands. The leading search engine reigns over 58.4% of the U.S. search market, while Yahoo has 22.9% and Microsoft’s share is just 9.8%, according to comScore, a research firm that tracks Internet traffic.

A Google spokesman, Matt Furman, declined to comment on Microsoft’s move on Yahoo. “It would be premature to comment at this point,” he said.

Jan 01, ` 08 — Australia is planning tough new rules to protect children from online pornography and violence, BBC News reported.

The new Labor government wants internet service providers to filter content to ensure households and schools do not receive “inappropriate” material.

Civil libertarians have condemned the plan as unnecessary, and say it will erode the freedom of the internet. But telecommunications minister Stephen Conroy said more needed to be done to protect children.

The Australian government’s aim is to ensure that children only have access to family-friendly websites. Service providers will be expected to stop the flow of pornography and other X-rated or violent content.

The government is set to compile a list of unsuitable sites, although at this stage it is unclear what will be deemed unsuitable. Australians wanting unfettered access to the web will have to contact their supplier to opt out of the new regime.

Concerns have also been raised that the government’s filters could slow down access to the net, in a country where connection speeds are often below international standards. More at BBC News.

HOLMDEL, NJ — Dec 31, `07 /PRNewswire-FirstCall/ — Vonage and Nortel today announced that they have agreed in principle to end the litigation pending between them.

The contemplated settlement involves a limited cross license to three Nortel and three Vonage patents and will not call for any monetary payments by any party.

Claims relating to past damages and the remaining patents will be dismissed without prejudice. The settlement is subject to final documentation. More at Vonage.

ETNews of Korea reports on Shinhan Card rolling out Korea’s first ever USB type credit card on Thursday, December 27.

ETNews further writes, “The USB credit card provides the online and contactless payment function and works the post-paid transportation card as well. The built-in IC chip includes the public authorization and the internet credit payment programs.

During the online payment, users do not need to insert the credit card number. Rather, they can pay by connecting the USB to the slot. At the franchise stores with the IC card reader, it enables the no-touch payment.

The card also supports the information inquiry and the automatic log-in service using the public authorization and the built-in internet payment programs. However, it is limited for users to delete or save data so that the USB itself cannot be used as a portable storage device.” More at ETNews.

A federal appeals court handed Google a setback in a patent fight on Wednesday, Dec 26, tossing out part of a summary judgment in Google’s favor in a lawsuit filed by Hyperphrase Technologies.

The US Court of Appeals for the District of Columbia Circuit revived part of HyperPhrase Technologies’ lawsuit, throwing out a lower court ruling that Google’s AutoLink feature didn’t infringe the company’s patents.

As part of the Google toolbar, AutoLink gives users more information than standard links. It recognizes data such as addresses and book titles, then provides links to online maps or books at Amazon.com.

The appeals court ruled that Google’s immensely profitable AdSense did not infringe on Hyperphrase’s patents. It handed down a split decision on AutoLink, agreeing that Google did not infringe, as claimed, on one of the Hyperphrase patents. But it vacated a summary judgment in Google’s favor on two others and sent it back to the Wisconsin district court.

HyperPhrase claimed in an April 2006 suit that Google used its inventions without permission. It sought cash compensation and an order blocking Mountain View, Calif.-based Google from using the technology.

More at the US Court of Appeals for the District of Columbia Circuit ruling here (in pdf).

Little Rock, AR — The world’s biggest retailer, Wal-Mart, has closed its video downloading service less than a year after it started selling films online.

The retreat for Wal-Mart, which accounts for about 40 percent of all DVD sales, follows the company’s 2005 decision to abandoned efforts to build an online DVD rental service. The world’s largest retailer instead turned its rental service over to Netflix.

It stopped the service on Dec 21, according to a message on the discount chain’s video download website. Wal-Mart said the decision had been forced by Hewlett-Packard withdrawing the software running the site.

The move ends a challenge to Apple’s iTunes store, Amazon and Netflix to win customers who rent films over the web.

The market for online video downloads has become very competitive with video rental chain Blockbuster buying Movielink over the summer to expand into this area.