Google Pulls The Plug On Yahoo Advertising Deal

After vowing repeatedly to go through with its search advertising deal with Yahoo no matter what the Justice Department does, Google reversed course today and pulled the plug on the deal. Chief legal counsel David Drummond writes:

. . . after four months of review, including discussions of various possible changes to the agreement, it’s clear that government regulators and some advertisers continue to have concerns about the agreement. Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners. That wouldn’t have been in the long-term interests of Google or our users, so we have decided to end the agreement.

We’re of course disappointed that this deal won’t be moving ahead. But we’re not going to let the prospect of a lengthy legal battle distract us from our core mission. That would be like trying to drive down the road of innovation with the parking brake on.

Apparently, the recent revision of the deal’s terms to cap the amount of Yahoo’s revenues generated by Google at 25 percent was not enough to satisfy the Justice Department. And Google threw up its hands, giving up the fight.

The intransigence of the DOJ made the deal untenable. There was no longer enough upside to put up with all of the antitrust scrutiny the deal would continue to bring.

And then there is the Microsoft factor. The only reason Google offered the deal in the first place was to help Yahoo fend off Microsoft’s takeover advances earlier in the year. It is a different world now. Microsoft seems to have moved on. The financial markets have collapsed. Yahoo is going to have to fix its own problems.

Interestingly, Yahoo’s stock is up nearly 5 percent to $14 on the news (while Google’s is down 2 percent to $358). Is that because Yahoo’s destiny is once again in its own hands, or because Microsoft can now make another run at the company?

Microsoft was the biggest opponent of the deal, and its lobbying efforts seem to have paid off. It can now buy Yahoo for a much cheaper price than it originally offered (one analyst suggests $20 a share, compared to the $33 Microsoft once offered), and Yahoo has nowhere else to turn (except AOL, which isn’t doing so great).

http://www.techcrunch.com/

Microsoft offers free software for start-ups

LOS ANGELES–In its boldest bid yet to win the affections of emerging businesses, Microsoft on Wednesday announced a program that will allow some start-ups to use its server software free of charge.

Dubbed BizSpark, the program will be open to private companies that have been in business for fewer than three years and have less than $1 million in yearly revenue. Companies will also have to be recommended by one of Microsoft’s many for-profit, nonprofit, government, or academic partners.
Dan’l Lewin, the former Apple executive who heads Microsoft’s efforts to reach out to start-ups, said the fact that the program comes as the economy is slowing is a coincidence.

“There’s plenty of lore about all the great companies that have been started in a down economy,” Lewin said. “I think the good companies will hunker down and do well. We’ll do our best to help them.”

In addition to getting free software, participating companies will be able to take part in an online directory of start-ups so they can network and reach potential customers, Lewin said.

Those selected for the program will be able to get access to a range of products, Lewin said, from Visual Studio to Windows Server, SQL Server and SharePoint, among others. Microsoft’s customer relationship management software will soon be an option as well.

That said, Lewin said it isn’t an all-or-nothing offer. He said that companies can choose a mix of Microsoft and other software, including open-source products.

“They don’t have to only build on our stuff,” Lewin said.

Companies will get Microsoft’s software free of charge for three years and will have to pay the then-prevailing licensing costs thereafter, Lewin said.

To beat my readers to the punch, yes, I’m familiar with the phrase “the first hit is free.”

That said, I’m curious what readers–and particularly start-ups–think of the program.

http://news.cnet.com

IPv6 and Linux

This article discusses the advantages of IPv6, which in addition to a larger address space promises to increase standby time in devices, and improve performance in routers. Along with IPv6 technology, it discusses how IPv6 has been implemented in the Linux kernel.

The article was written by Rami Rosen, a Computer Science graduate of The Technion Israel Institute of Technology in Haifa, Israel. Rosen works as a Linux kernel programmer for a networking startup.

Rosen begins with a brief history of IPv6, which evolved from IPng (Internet Protocol, next generation). He discusses the benefits of IPv6’s larger address space, such as eliminating NAT (network address translation) for easier “end-to-end” VoIP phone configuration and reduced Keep Alive traffic.

Next, Rosen describes how IPv6 addresses work, before comparing IPv4’s ARP broadcast neighboring system to IPv6’s ICMPv6 multicast neighboring system. He then describes how IPv6 host routing daemons like RADVD and Quagga dynamically configure stateful or stateless routes, without any prior configuration on the client side.

Finally, Rosen concludes with a description of IPv6 packet headers, and how DNS and ad hoc IPSec work differently in IPv6, compared to IPv4. Along the way, it becomes clear that IPv6 promises to deliver a bounty of improvements, beyond simply supporting a larger address space.

Click below to read the full article.

IPv6 in Linux

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