After announcing its deal to acquire Tumblr for $1.1 billion, mostly in cash, Yahoo today started to lay out some of the details for how it intends to make use of the property while trying to stick to its promise “not to screw it up.” Expect more advertising by next year as well as more Tumblr content on Yahoo properties, but more of a cautious step as to how Yahoo will deal with some of Tumblr’s more NSFW content.

Here are some of the more interesting details revealed in the call:

What are Tumblr ads going to look like? Tumblr apparently made only $13 million in revenues last year but CEO David Karp apparently thinks the site is “ready” to make more now that it understands its users, according to Yahoo CEO Marissa Mayer. But she also noted that they will be working from a challenged position, not just because of user resistance but because Karp himself has been “skeptical” about online ads.

In the conference call, Mayer made an early reference to how Tumblr would be able to make good use of Yahoo’s advertising technology, in ways that fit Tumblr’s so-far successful, image-based, quick-blogging, youth-oriented format — what she called “native advertising formats.”

As one example, she pointed to an ad format that Yahoo launched at the end of April, in-stream ads that it runs on its news pages. “On Tumblr we feel we can monetize in ways that are meaningful and add to user experience,” she said. She cited the Tumblr dashboard, or as she called it, the inbox for the blogs you follow. “Today Tumblr already does some ads in that feed. We would like to look at that and understand how to introduce more ads where the ads fit the expectations and follow that form and function.” She also noted that Yahoo may possibly work with bloggers to provide ads that will be run with their permission.

On top of this, expect to see more search ads: there are also plans to integrate Yahoo’s search functionality into the site as well. “We think there is a complelling search story,” said Mayer. “Their body is 50b posts and 5 billion posts of original content so search is already vast. We see an opportunity to integrate with search and provide that. That’s one area we are excited by the acquisition.”

Throughout this, a focus on trying to be Tumblr-centric about whatever Yahoo tries to do there. “It’s not a choice between creativity and monetization,” insisted Mayer.

So when are those ads coming? CFO Ken Goldman said that ad revenues from Tumblr will be “modest” this year — the acquisition is not expected to close until the second of of 2013 — but that they will “ramp up” in 2014 “and beyond.” “We do think those revenues will start monetizing materially [and] will contribute to revevenues in 2014 and beyond,” he said on the call, “not just standalone for Tumblr but also incrementally, helping Yahoo to growth.”

Porn? The NSFW, notorious part of Tumblr was never referred to by name, but an analyst did ask about what Yahoo, while courting mainstream brands to market to that attractive Tumblr audience, would do about content that is not “brand safe”. “The richness and breadth of the content… is what makes it more exciting,” enthused Mayer. “In terms of addressing concerns around brand safety we need to have good tools for retargeting.” [Another acquisition, methinks? In any case, no outright announcement that Yahoo intends to get rid of all those sites that Tumblr has more or less accepted into the fold.]

Mayer continued: “Tumblr is now at the point that they do know what it is and what makes sense to monetize in way that is tasteful.” She also mentioned due diligence but also something else, effectively implying that Yahoo will figure out a way of getting around the NSFW content and serving ads where they want them to go, because that’s what the advertisers want: “There are a lot of marketers eager to participate in Tumblr platform and the demographics,” she said.

What does the $1.1 billion “substantially in cash” mean? Goldman noted that it’s effectively an all-cash deal, save for some shares in Yahoo for David Karp. He also noted that Yahoo still has “ample cash” for more acquisitions and investments, to the tune of about $6.2 billion. These will not likely be along the lines of Tumblr in terms of size. “This is an exceptional company and team,” she said of Tumblr. At 300 million monthly unique users, Yahoo is paying about $3.67 per user for the acquisition.

Complementary properties. Mayer made a lot of the fact that Tumblr and Yahoo actually fit “really beautifully together,” like South America and Africa, in her words. In addition to Yahoo skewing older and Tumblr skewing younger, “We are strong on sports, finance and news; Tumblr’s strong on architeture, travel and fashion. We need great tools for content publishing and creation. They have them. Tumblr prides itself as a home for brands. Yahoo is all about brands.”

Tumblr comes to Yahoo. While a lot of the expectation so far has been about how Yahoo may mess up or spiff up or monetize up Tumblr, another theme that emerged during the call was the idea of Tumblr content going out to Yahoo properties — a way of attracting users to Yahoo that may not have gone there before.

“Our strategy is to let Tumblr be Tumblr,” said Mayer. “There are some who will always prefer Tumblr and will never come to Yahoo. [But] as we pull Tumblr content into our news feed and media experiences it will cause them to become that much more interesting and richer and will cause more to come to Yahoo. I imagine engagement will improve as we incorporate that content.”

Flickr. There is a separate news conference today that will likely concentrate on updates to Flickr, but today Mayer appeared to douse out speculation that it will be a move to begin integrating its online photo site with Tumblr in any way: “In terms of how the content of Tumblr evolves it depends on the creators,” Mayer said in answer to a question of what this acquisition will mean for Flickr. “It’s something that we will turn our attention to in the future. It will provide great storage, but we will see how those two cousins should relate to each other.

Image: Tumblr (where else)

Article courtesy of TechCrunch

There is no sadder moment than the one where you realize it’s time to upgrade your computer. The load times are too slow, the battery no longer holds a charge, and it’s just too damn heavy. Now, imagine a school with dozens of outdated computers, and think just how bad that moment of realization can really be.

Neverware, a company based out of NY, is aiming to change all that with a turnkey solution that automatically boosts performance of old computers for a low monthly fee. Obviously, demand for this type of service is high, especially in the education industry, which is why Neverware has just closed a $1 million round from investors that include Thrive Capital, Khosla Ventures, General Catalyst, Collaborative Fund, and Nihal Mehta.

Founder Jonathan Hefter started Neverware back in 2011 and launched in January 2013 with around $600K in seed funding. Since then, the company has been working to evangelize the product to NYC schools, and the response has been great. According to Hefter, Neverware’s latest seed round is somewhat of an emergency raise, considering that the demand from schools is much higher than expected.

Hefter explained that they expected to sign on with between five and seven schools for the first semester, starting in January. However, they’ve blown way past that number and seen around 3x the customer sign-ups. According to Neverware, most of the new seed round will go toward smart engineering hires, as Hefter looks to double the seven-man team with more employees who care about what Neverware is doing.

Neverware works by setting up a Juicebox 100 in the schools. That piece of hardware integrates with the school’s network to bring automation and intelligence to the system. The Neverware virtualization technology then boosts performance to each computer, giving kids the access they need to actually get things done.

Schools pay an adjustable fee per month, per computer, and the Juicebox comes free.

“There is a huge challenge in deploying software on appliances across a wide variety of networks that we do not control,” said Hefter. “In order to be a reliable solution, we engineer an incredible amount of intelligence and automation into our system that allows it to function in many types of network environments that schools might have and recover from a wide range of network-related issues, without any associated downtime. These are engineering challenges that you simply don’t face when you’re running a website on uniform Amazon instances in the cloud.”

For now, Neverware is focused on expanding within the greater New York area, and will eventually expand beyond that into new regions.

Article courtesy of TechCrunch

Jolla, a Finnish startup formed in response to Nokia’s decision to ditch MeeGo in favour of Windows Phone, has finally taken the wraps off the smartphone hardware that will be paired with its “unlike” Sailfish UI. Being a startup is challenging enough in any business sector but Jolla is seeking to compete in the fiercely competitive smartphone space, going up against giants Samsung and Apple who hold the majority of the market in a pincer grip. So it’s hard not to dismiss their efforts as too late. But it’s a lot harder to accuse them of doing too little.

Jolla’s strategy for fighting the mobile industry’s Goliaths is all about standing out by doing things different. Today’s hardware underlines how this startup is hoping to disrupt the concept of a single flagship device — such as the Samsung Galaxy S4 — that’s hankered after and owned by millions yet with only a little variation in case colourings to tell the difference between each one.

In seeking to break down software homogeneity with its Sailfish UI and a business model that encourages working with third parties to develop new types of smartphone experience that loop in others’ data, Jolla is also taking aim at hardware commoditisation via a cross-over feature in its debut device that it’s calling the Other Half. The Other Half refers to removable hardware shells that snap on to the back of the handset and can be changed and customised by the user. But the feature goes further than interchangeable shells — which is not at all new, dating back in spirit to early Nokia mobile phones of the 1990s with their removable facias, and more recently to a device like Nokia’s Lumia 820, which has a coloured and swappable backplate.

Jolla’s Other Half isn’t just decoration but links to the software on the handset — using an unconfirmed bridging technology that sounds to my ear like NFC — allowing content on the phone to be tied to the addition of a new shell, or even for new physical features to be incorporated and supported.

Jolla’s Marc Dillon, now head of software but until recently CEO, gave some examples of how the Other Half feature could be used — noting that this is about opening up the back of the device for others to come in and augment.

“You have the processor side of the device, the power side, the engine, and then the Other Half is about adding to that. This is a new kind of media where it could be anything from your favourite artist could release their latest album on the other half of the Jolla device, and then when the user buys this they have a physical thing from their favourite artist then when they snap it on to the other half of their Jolla device, then everyone can see it, that they support and love their artist and then on the inside they could get the content. They could get maybe special content, that could only be released in this format like videos or links to websites or tickets or special offers, things like that but because of this interface between the two halves,” he told TechCrunch.

“It can not only be media, it can be very simple things — so maybe you have a colour palette, so when you go out of an evening you might have a different colour depending on your outfit and that colour then carries through to the software updating the Ambience of the device. So you might have — if you have a green dress, you might have a green device and then you have green icons and green Ambience [Sailfish UI theme] on your phone. But it can also be more interesting — you can add features. Like the camera is a good example, the native camera of course has a flash but maybe you’re going to a party and you want to have a big flash so you can take pictures in the dark at a nightclub. So really the imagination is the only limit here.”

“Instead of having a device with some bulky things attached to it or some things sticking out the side of it to extend the capabilities of the device, or to add content, we’re giving a new way for users to actually design and co-create with us new ways of using the device,” Dillon added.

“Of course we will be offering a choice of Other Halves for the user to buy but this is a place where we want to see others get involved. Designers can design Other Halves for the device, engineers or hackers or techies can design new interfaces and maybe add physical hardware features that they wish they had on their device but might have a smaller market than to deserve having a whole entire device,” he said. “We talked about 3D printing them today. So it could be those kinds of things, but really we’re offering a new kind of interface for a device so that people can really take their imagination, and I believe there will be a lot of third parties and a lot of people who have a lot of great ideas in order to help you use the Other Half of the Jolla device.”

The Other Half may be a bit of a clumsy name but it’s a savvy move that taps into the custom hardware trend that’s growing off the back of the rising profile of 3D printing. That said, it does of course remain to be seen how much interest Jolla can spark for others to get involved in co-creation with only one device to its name and that device not launching for another six months. It will need enough traction to get the co-creation party started.

The idea to link the hardware and software has been part of Jolla company discussions and plans since the beginning, according to Dillon. “It’s been something that we’ve been planning and working towards the whole time. The Ambience was a hint of how this can come together,” he noted, adding: ”Hardware like many things, it’s become a commodity, so the problem with commodities is it generally forces things down — things become kind of lowest common denominator… We set out to make the greatest device that we could, and we understood that the software and the user experience is key because that’s where the value comes from in the device and the hardware is the realisation of that, it’s a productisation of the software.

“So we kind of took this tack, then of course the hardware has to be fantastic it has to support the software and support the user and be something the user can be proud of and my belief is that when people see the Jolla device they want to see what’s inside.”

“This iteration, the direct stuff here, has been about a year in development. It started getting really good for me about six months ago and I’ve been using the device for a while now, and it’s really started to feel fantastic, when the hardware and the software have come together. They were done by the same designers and the same people so it has been kept in mind that the two go together, that the two have a synergy the entire time. We’ve had a roadmap the entire time as well so we’ve had a set of hardware specifications to work with,” he added.

It’s worth flagging that Jolla is not the only mobile maker to take an interest in 3D printing and custom hardware, even if it’s taken that further by creating a link between custom hardware and phone content. 3D printing is something Nokia has done with the Lumia 820 shell, for instance. Dillon said Jolla may also look to open source the 3D design of the Other Half, telling TechCrunch “I could see that happening”.

Asked specifically about the bridging technology between the hardware shell and the software, Dillon declined to give specific details, saying: “There’s a number of options here but there is a connection between the Other Half and the software. And of course all of that needs to be open as well.”

Asked whether the device will launch in the U.S. he said Jolla is looking at other markets but opting for Europe and China first. ”We’re starting with Europe and China and we will be extending to other markets as we go. We’re in the delivery phase at the moment so we’re building the infrastructure, and the logistics in order to be able to deliver and care for the users of the device, and we’re of course going to look at other markets as we go.”

“It’s the target to get the Christmas market in Europe, Chinese New Year. That’s the big milestones,” he added. “The most important thing is we come out with a fantastic product… When we’re shipping at the end of the year if it’s a fantastic product then it’s really going to resonate and I think we’re really going to have a lot of demand.”

Article courtesy of TechCrunch

Today is turning out to be quite a memorable Monday — hot on the heels of Yahoo’s Tumblr acquisition announcement, online food ordering services GrubHub and Seamless have officially confirmed that the two companies will merge into one as we previously reported.

Many of the juicy details — like what this new entity will actually be called — are still shrouded in secrecy, but the announcement has shed some light on how the new company’s executive structure will be set up. GrubHub co-founder and CEO Matt Maloney will take the reins as the entity’s chief executive, while Seamless CEO Jonathan Zabusky is slated to become the company’s president.

As our own Rip Empson pointed out on Friday, the tie-up is set to take place as the online good delivery and ordering space has begun to heat up. A handful of new startups have their respective eyes set on cracking the market (think ChowNow and HealthyOut, just to name a few), while more entrenched players like Delivery.com continue to putter along.

Now that two of the most prominent companies in that space are dedicating to combining forces, we may soon see some of those small fries get pushed out. After all, by combining the resources of both companies (which jointly generated over $100 million in revenue in 2012), the new combined entity will have enough resources to grow its business both in the United States and in the U.K. where Seamless has maintained a foothold for some time. Of course, this whole shebang is still subject to regulatory approval, so it’s possible someone could raise those same sorts of anti-competitive concerns down the road. For now though, I suspect that more than a few people are just happy knowing that they’ll be able to order even more food from a single service.

Developing…

Article courtesy of TechCrunch

Sprint has decided to get deeper into the social and mobile space, announcing today that it has acquired Handmark and its subsidiary OneLouder. The acquisition is meant to beef up its Pinsight Media+ advertising group, specifically.

Through Handmark, OneLouder has built social apps like Twitter clients Tweetcaster and Slices, and Friendcaster, a Facebook client. The acquisition price hasn’t been made known, but it’s a huge win for the Kansas City tech space, a place that I visited just a few weeks ago.

Sprint hopes that this acquisition will bring a more “entrepreneurial spirit” to its mobile program, hoping to lure developers to use its own advertising platform. Mike Cooley, VP of New Ventures at Sprint shared: “The business, culture and technology they bring will be a huge asset to our business, and ultimately the customers of Pinsight Media+.”

Through building all of its apps, OneLouder found a niche in advertising, having its own team that has worked on the ad platform and used its own apps to test it out. This deal also brings Sprint some strategic partners like CBS, which has a sports app powered by OneLouder. Tying the work that OneLouder has done on its ad platform with Sprint’s customer base should juice its mobile advertising efforts immediately.

The great thing about the acquisition is that Handmark and OneLouder will stay in its current home of Kansas City, serving as an example of what a budding tech hub it really is. Sprint has been trying to get involved with the KC tech crowd, as all of the activity surrounding Google Fiber has inspired companies to be formed and money and time to be spent on building communities and refocusing on making the area attractive to both coasts as an alternative base.

Article courtesy of TechCrunch

In what can only be called an exodus, WordPress’ co-founder Matt Mullenweg posted on his blog Sunday night that over 72,000 new blog posts were imported within a single hour. This is a massive spike considering that WordPress usually just sees 400 to 600 imported posts on most Sundays. It’s a tiny percentage of Tumblr’s 50.9B posts but it’s an important consideration that Tumblr – and now Yahoo – cannot ignore.

Yahoo is officially buying Tumblr for a lot of cash. $1.1 billion to be precise. This move makes a few people very happy and very rich. But Tumblr’s content creators – you and me – are the primary reason Yahoo is buying the site. Unfortunately, that content engine isn’t very happy.

WordPress will likely have another banner day as even more Tumblr users look for alternative platforms to host their saucy Brony slashfic.

Tumblr is currently an unfettered corner of the Internet. Nearly anything goes, and with that users have enjoyed this freedom to create a vast variety of blogs and sites. Anything from questionable pornography to vegan cooking blogs are hosted on Tumblr. While Yahoo promises to keep Tumblr independent, it’s unclear whether this includes maintaining Tumblr’s loose posting guidelines.

This has happened before. A small percentage of Instagram users loudly quit the service when Facebook purchased the social network. Likewise, Facebook is losing users as it becomes an established service. WordPress is likely going to be the largest benefactor of Tumblr’s exodus. As Mullenweg notes, the two services have long enjoyed a close relationship. It only takes a few clicks to import a Tumblr site to a WordPress install.

Tumblr users are afraid Yahoo is going to ruin it. After all, Yahoo has set that precedent after scooping up sites like Geocities and del.icio.us only to abandon development and let the sites rot in the Internet sun. But the Yahoo of today is not the Yahoo of yesterday.

Yahoo is booming under Marissa Mayer. The company is a on buying spree, scooping up hot startups, resulting in the acquisition of content, talent, and, press coverage. If anything, Wall Street likes what Yahoo is doing as the company’s stock price is up nearly 71% for the year. But despite Yahoo’s frank promise that it will not screw up Tumblr, a social network is only as strong as its users and in a very direct way, Yahoo is already screwing up Tumblr.

Article courtesy of TechCrunch

Sensopia, a company which actually uncovered a practical application for augmented reality, has raised a $1.2 million Series A round for its floor plan capturing application called “MagicPlan.” The app allows users to hold up their phone and then scan the dimensions of the room around them in order to create an instant floor plan that can be exported to various formats, including DXF, PDF, JPEG and HTML, the latter for viewing the plan on the web.

To perform the scan, the app “sees” the room in the camera’s viewfinder, and then you tap on the screen to label things like corners and doors.

Participating in the new round were Partech International, Tekton Ventures, Normandy Ventures, and other private investors. The company says it will use the funding to accelerate growth and further develop the application, making the software easier to use and allowing for the capture of rooms in three dimensions.

The startup had released an updated version of the MagicPlan app around a year ago, which at the time had introduced an upgraded user interface, a full HD iPad version, and improvements to the “MagicPlan Cloud” service – a web service that allows for data-sharing with partners. Although consumers are, of course, welcome to use the app themselves for free (for non-commercial use), Sensopia’s revenue comes from its subscription plans and enterprise adoption.

The company had previously formed agreements with Seloger (France’s Zillow), RTV (Real Tour Vision – a provider of real estate tours in the U.S.), Moobz (the Century 21 technology provider), and Cocontest (a crowd-sourced platform for interior design).

This March, it rolled out version 3.0 of the MagicPlan software, and announced a key partnership with Home Depot. Through this agreement, users could share their floor plan with Home Depot and make an appointment with an associate who would then use the plan to better assist the customer while in the store.

To reach its preferred market (i.e., paying customers), Sensopia is also releasing its MagicPlan software development kit today, which will allow MagicPlan’s technology to be integrated into other applications. The first customer to launch using this SDK is Symbility, a software company that makes claims processing applications for insurance companies.

Symbility will allow its inspectors to create floor plans while on site, while completing a claims adjustment using their iPad.

“It would not be a stretch to imagine that, in the future, claim management data for smaller cases could be generated by consumers, rather than the adjusters, and sent to the insurance company directly,” says Richard Adair, President and COO of Symbility. ”This would, of course, lead to significant savings in both time and money,” he adds.

Until now, Sensopia had been operating as a bootstrapped company. CEO Pierre Gaubil explains, “we wanted to reach real traction before raising money.” Today, he thinks it’s there. The app now has over 4 million downloads and over 20,000 floor plans created per day, Gaubil also notes – up from a million when version 2.0 was released last April. He declined to provide revenue figures, but says growth is at 20 percent month-over-month.

MagicPlan is available in the App Store here.

Article courtesy of TechCrunch

Yahoo has now officially confirmed that it is buying blogging platform Tumblr for $1.1 billion, confirming speculation that started last week. It says it will keep it as an independent company, with founder David Karp at the helm as CEO. “The product, service and brand will continue to be defined and developed separately with the same Tumblr irreverence, wit, and commitment to empower creators,” it writes.

With a lot of negative comments coming in from Tumblr users in lead-up to the deal, and some competitors claiming that they’re witnessing a kind of exodus from Tumblr as a result, Karp has also weighed in with his own announcement about the deal, emphasizing the same independence line: “We’re not turning purple,” he wrote:

“We’re not turning purple. Our headquarters isn’t moving. Our team isn’t changing. Our roadmap isn’t changing. And our mission – to empower creators to make their best work and get it in front of the audience they deserve – certainly isn’t changing.”

He also points out that Tumblr, joining up with the “original Internet company,” will be getting more resources to create the “ultimate creative canvas.” Some users have complained about certain features around the site, such as how video works, so the implication here is that areas like this will be addressed faster from now on, but — again — in a way that “doesn’t compromise the community and product we love.”

More to come. Yahoo’s release below.

SUNNYVALE, Calif. & NEW YORK — Yahoo! Inc. (NASDAQ: YHOO) and Tumblr announced today that they have reached a definitive agreement for Yahoo! to acquire Tumblr.

Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business. David Karp will remain CEO. The product, service and brand will continue to be defined and developed separately with the same Tumblr irreverence, wit, and commitment to empower creators.

With more than 300 million monthly unique visitors and 120,000 signups every day, Tumblr is one of the fastest-growing media networks in the world. Tumblr sees 900 posts per second (!) and 24 billion minutes spent on site each month. On mobile, more than half of Tumblr’s users are using the mobile app and do an average of 7 sessions per day. Its tremendous popularity and engagement among creators, curators and audiences of all ages brings a significant new community of users to the Yahoo! network. The combination of Tumblr+Yahoo! is expected to grow Yahoo!’s audience by 50 percent to more than a billion monthly visitors, and to grow traffic by approximately 20 percent.

The deal offers unique opportunities for both companies. Tumblr can deploy Yahoo!’s personalization technology and search infrastructure to help its users discover creators, bloggers, and content they’ll love. In turn, Tumblr brings 50 billion blog posts (and 75 million more arriving each day) to Yahoo!’s media network and search experiences. The two companies will also work together to create advertising opportunities that are seamless and enhance the user experience.

Total consideration is approximately $1.1 billion, substantially all of which is payable in cash.

“Tumblr is redefining creative expression online,” said Yahoo! CEO Marissa Mayer. “On many levels, Tumblr and Yahoo! couldn’t be more different, but, at the same time, they couldn’t be more complementary. Yahoo is the Internet’s original media network. Tumblr is the Internet’s fastest-growing media frenzy. Both companies are homes for brands – established and emerging. And, fundamentally, Tumblr and Yahoo! are both all about users, design, and finding surprise and inspiration amidst the everyday.”

“I’ve long held the view that in all things art and design, you can feel the spirit and demeanor of the creator. That’s why it was no surprise to me that David Karp is one of the nicest, most empathetic people I’ve ever met. He’s also one of the most perceptive, capable entrepreneurs I’ve ever worked with,” continued Mayer. “David’s respect for Tumblr’s community of creators is awesome. I’m absolutely delighted to have him join our team.”

David Karp, CEO of Tumblr, addressed the Tumblr community, “Our team isn’t changing. Our roadmap isn’t changing. And our mission — to empower creators to make their best work and get it in front of the audience they deserve — certainly isn’t changing. But we’re elated to have the support of Yahoo! and their team who share our dream to make the Internet the ultimate creative canvas. Tumblr gets better faster with more resources to draw from.”

The transaction, which is subject to customary closing conditions, is expected to close in the second half of the year.

Conference Call

Yahoo! will host a conference call at 9:00 a.m. Eastern Time today to discuss this announcement. A live webcast of the conference call can be accessed through the company’s Investor Relations website at http://yhoo.client.shareholder.com/events.cfm?CalendarID=8. In addition, an archive of the webcast will be accessible for 90 days through the same link.

About Tumblr

Tumblr is a media network powered by an army of independent creators and home to an audience of more than 300 million unique visitors. Founded by David Karp in 2007, Tumblr is headquartered in New York City.

About Yahoo!

Yahoo! is focused on making the world’s daily habits inspiring and entertaining. By creating highly personalized experiences for our users, we keep people connected to what matters most to them, across devices and around the world. In turn, we create value for advertisers by connecting them with the audiences that build their businesses. Yahoo! is headquartered in Sunnyvale, CA, and has offices located throughout the Americas, Asia Pacific (APAC) and the Europe, Middle East and Africa (EMEA) regions. For more information, visit the pressroom (pressroom.yahoo.net) or the company’s blog (yahoo.tumblr.com).

This press release contains forward-looking statements that involve risks and uncertainties concerning Yahoo!’s proposed acquisition of Tumblr (including without limitation the statements contained in the quotations from management in this press release), as well as Yahoo!’s strategic and operational plans. Actual events or results may differ materially from those described in this press release due to a number of risks and uncertainties. The potential risks and uncertainties include, among others, the possibility that the transaction will not close or that the closing may be delayed; and that the anticipated benefits to Yahoo!, including projected growth in audience and traffic, and benefits to users and advertisers may not be realized. More information about potential factors that could affect Yahoo!’s business and financial results is included under the captions, “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, which are on file with the Securities and Exchange Commission (“SEC”) and available at the SEC’s website at http://www.sec.gov.

Article courtesy of TechCrunch

Some more consolidation afoot in the worlds of mobile marketing and mobile payments: Payvia, one of the many startups working in the area of carrier-based mobile billing, is buying Mogreet, a mobile marketing company that delivers campaigns via text, video and picture messaging services. Terms of the deal were not disclosed — although we have contacted the company to ask. Payvia says that the whole of the Mogreet team will be coming over, including Mogreet founder and CEO James Citron, who will become Payvia’s Chief Marketing Officer.

The move is an interesting one, in that it signals how Payvia, to differentiate itself from the pack, is creating applications itself that utilize its payment services.

“Our mobile payments offer resonates strongly with the market because it is built on our proprietary carrier connected technology that gives us a unique ability to understand consumer mobile usage,” said Darcy Wedd, CEO, payvia, in a statement. “Our clients have told us they also need a simpler way to link targeted mobile transactions to their marketing campaigns. By integrating Mogreet’s solutions on our platform we answer that need. As the only company to solve a known disconnect between traditional mobile commerce and engagement solutions, Payvia is well positioned to increase mobile’s share of the $252 billion* e-commerce market.”

Payvia says that it has the largest direct carrier connected messaging and mobile payments platform in the U.S., covering 120 million unique mobile users and processing billions of mobile messages every year. The company says it has paid out to merchants and developers worldwide more than $2 billion in global mobile commerce revenues. (There are other carrier billing platforms that will claim they are bigger, but the qualification here seems to be around the messaging platform that Payvia does this through.)

The trick with carrier billing services is that they give publishers, developers, and in this case brands and marketers, ways of offering goods and services to consumers on mobile devices, letting them complete purchases by charging those goods/services directly to their mobile bills. Services like these mean more seamless payments because they do not require users to enter credit card details, which can be painful to do on handsets and in some markets are a dead end because of the low penetration of payment cards. Other carrier billing companies like Bango claim that as a result carrier billing services are a more lucrative channel overall for getting users to pay for things on mobiles.

Last year, Payvia hit the news when it won a deal to power mobile/SMS-based donations for the Obama re-election campaign: a more classic example of how many mobile payments companies generate revenues, as the backend provider for services created by others, and also a sign of how Payvia was already formulating services that basically let users make transactions from within messages.

What the Mogreet acquisition will give Payvia is the ability to apply this to a wider variety of messages, and also a client base. Current customers of Mogreet’s include Cox Media Group, Emmis Communications and Gamefly.

The acquisition also signals a potentially new phase in the development of mobile marketing campaigns. While Mogreet’s services up to now have been more focused on encouraging people to click through to mobile web sites, or to enter short codes to receive further information, this potentially could mean that now marketers could create campaigns that encourage purchases from within the message.

Payvia is backed by Silver Lake Sumeru, Montgomery & Co., and Trinity Ventures (amount undisclosed), while Mogreet has raised some $14 million from DJF Frontier, Black Diamond and others.

More to come.

Article courtesy of TechCrunch

A new report commissioned by research giant GfK claims that the growth of the high density cluster of technology companies in East London (dubbed Tech City by the UK government) is being “stunted” by a talent shortage and lack of access to capital. The ‘Tech Futures Report’ – commissioned by publishing company TechCityInsider and sponsored by accountant Grant Thornton, recruitment firm Vitamin T, City University London and Digital Shoreditch is based on 141 interviews of ‘tech’ company senior management. In fact, only less than half of these admitted to developing technology products and platforms. It’s simply the latest in a long line of reports that conflate consultants and digital advertising agencies with technology companies, leading to yet more confusion about the state of the cluster.

When quizzed by TechCrunch, the reports authors admitted that only 41% of those surveyed made apps, while 21% did social networking, 17% retailing/ecommerce, 12% publishing, 12% IT consulting and services, 8% data processing/management and 7% were in gaming – though it’s not clear whether than meant games or gambling. And of those 141, only 77% of respondents were CEO/Founders of the business they represented.

As a result of this over-sight, an important opportunity has been missed to find out more of the needs of real high-growth technology companies in the cluster, rather than normal growth advertising agencies.

But for what it’s worth we present the rest of the reports findings below. Make of them what you will.

Among the reports key findings:

• Nearly a half (44%) find a shortage of skilled workers is the biggest challenge they face
• Over three quarters (77%) say a lack of skilled workers is restricting their growth
• A third (33%) believe a lack of access to capital is hindering their business.
• In terms of the businesses represented, 30% had an annual turnover of <£200k, 34% £200,000-£999,000, 17% £1-£5m, 7% £5-£10m and 12% over £10m. 24% said their main location of business was London, 44% UK, 17% Europe 14% North America and 1% ROW.

The report says the 141 executives surveyed had “mixed feelings” about the the effectiveness of government support, with some liking it, others not. Not eactly ground breaking news then.

Clearly, despite the 'glass half empty' tone, the situtation is in flux. Ryan Garner, Research Director for GfK said: “Our research shows Tech City is at a tipping point, and hopefully this report will help it find its way in spearheading that economic growth.” Indeed, the reports authors could equally have spun the situation as a 'tech hiring boom'.

Unfortunately, the report struggles with some of the common terms of the technology world. The top skills most in demand are said to be “coders and developers” and something called “research and development” leading one to wonder if the reports authors could possibly be more vague. The others skills said to be in short supply (again, not news) are marketing and PR, business development, web design and user experience specialists. Someone is hiring. Hold the front page.

The report claims that staff retention remains a challenge, though is not clear on whether that is because it's a booming startup market generating more spin-out startups, or if people are leaving for big corporate jobs.

As for accessing capital, a third of those surveyed said their businesses are hindered by a lack of capital, whether sourced from investors or banks. Once again, because the report conflates technology businesses that might be fundraising with digital agencies that might just want a bank loan, the picture here is vague. Of course, it's common knowledge that most startups fail to raise external funding anyway.

If there is a gem of new information here it's in the finding – which has been largely anecdotal till now – that there is a growing gap for businesses requiring investment of £500,000 to £2 million. The “Series A gap”.

However, the report mistakenly thinks that all startups which can't raise a Series A in London will skip of to bag “the Silicon Valley dollar” when doing so is far from a simple move or likely.

TechCrunch is hereby placing a ban on all reports about London's Tech City from now on unless they actually talk to 100% tech companies with an actual product or platform. Not guys coming up with a new hip flash site for Coca Cola or selling tech support to banks.

Article courtesy of TechCrunch