A little over a year ago, AOL agreed to
purchase The Huffington Post, which made Arianna Huffington the Editor-in-Chief of AOL media. This decision was controversial all over the Internet, but most famously through the TechCrunch space, who lost their founder, Mike Arrington, followed by an exodus of employees following behind him. Obviously the decision to make Huffington Czar of AOL has turned out well for the company, so long as their goal was to make all of their brands as irrelevant as AOL itself.
AOL's management seems to be a little less ostrich-like this week, pulling their head out of the sand long enough to scale Arianna's role in the company back. In fact, management has brought in former Time Inc. executive Ned Desmond to oversee everything that Arianna has ruined, including Engadget, Joystiq, TechCrunch and The Unofficial Apple Weblog (TUAW). While Arianna has tried to make it sound like it was her decision, it is clear to anyone with a brain that it was not; this might be why she thinks it is her decision. She has been banished back to the obscurity of HuffPo, where she can continue to oversee insanity and feel right at home.
AOL's management seems excited about this transition. Hit the break to hear what they have to say about it and what it could mean for some of the biggest tech blogs on the web.
Google and the government have a very sketchy relationship. They recently received a
$25,000 fine for the StreetView debacle, plus the impending anti-trust case, but that isn't their only current problem. They have also been under investigation over a violation of Internet privacy, overriding security settings on Apple's Safari web browser, and this fine won't be a slap on the wrist.
The issue revolves around Google planting cookies on the users computer, which allowed Google to bypass Safari's privacy settings. The cookies allowed Google to target ads to users on all platforms using Safari, including desktops, laptops, iPads and iPhones. As with the StreetView issue, they claimed it was an accident and that they removed the files. According to an anonymous source familiar with the issue, Google and the FTC are currently in discussions over the size of the fine for this breach of public trust. The numbers are currently topping out in the $10 million range.
Why is this breach of privacy going to cost so much more than the last? Hit the break for the details.
Sprint's 2012 has not quite been what they had hoped it would be, with the
termination of the LightSquared deal and having to dump piles of cash into Clearwire to keep their current 4G network alive. They have also had trouble in recent years with their government contracts - there was once a time when every government agent had a Nextel phone, but with the antique nature of the network, that has not lasted. This week, Sprint announced a partnership that will help with both of these situations.
The Western States Contracting Alliance (WSCA), a combination of 15 states who have pooled their purchasing power to get better rates for services, has signed a 4 year, $2 billion deal with Sprint to provide wireless services to healthcare, education, safety, utilities and non-profits across those 15 states. This deal marks one of Sprint's largest deals of the year, something they certainly need with all of the partner problems they have had.
Why did they choose Sprint and what does this mean for the company? Find out after the break.
Normally, before a company will start an initial public offering (IPO) they will go into a dark room and lock themselves in for a very long time. This is prevent statements intended to influence potential investors and valuation changes, as it is difficult for investors to hit a moving target.
Facebook's rumored IPO felt like it was going to happen any time now but then the company went ahead and purchased Instagram for $1 billion and then right after that spent $550 million on patents from Microsoft. You'd think they would have to take some time after these major purchases and restructure their offering.
Not Facebook. Reports have been flying all over the Internet this week that the company might be starting its rounds to investors as early as next week and will be scheduling their IPO around May 16th.
FCC's suspension of the waiver granted to LightSquared to deploy their own, privately funded 4G LTE Advanced network has led to an interesting turn of events in the tech world. LightSquared has since responded to the FCC, claiming the FCC has violates LightSquared's rights. Because of the suspension, Sprint had to look elsewhere for their 4G LTE network and has dumped truckloads of cash into Clearwire, who might have been their next option, only for the company to lose money in Q1 and Sprint had decided to build their own network anyway. Like I said, an interesting time it has been.
Now, Philip Falcone, CEO of LightSquared's top investor, Harbinger Capital, may end up resigning as the public head of the company.
With the launch of the upcoming
Wii U, Nintendo is hoping that this will help them recover from a couple of bad months of lackluster sales and 3DS price drops. However, bad news is still looming for Nintendo as they move into the E3 that will either make or break the company.
This week, for the first time in the history of Nintendo, they posted a net loss of $533 million. Wii sales haven't been very high as of late and has also caused them to post an operating loss of $460 million. This is very disheartening to learn about, as this is the same company that brought us the coveted
Mario and Zelda franchises that we all know and love.
Has Nintendo seen its hey-day finally fade into the 8-bit darkness from which it emerged?