MediaFile

How about Hightail-ing it?

Silicon Valley startup YouSendIt, which began as a file sharing and storage company, is getting a corporate makeover. YouSendIt comes off, and Hightail gets papered on.  

 And that’s not the only change Chief Executive Brad Garlinghouse is making as he competes more directly with larger startups Dropbox and Box. Hightail will now offer unlimited storage for its paying customers, 90 percent of which are corporations and small businesses.

Garlinghouse decided to get a jump on competition with the new offer as he feels storage is fast becoming a commodity. Also, the former Yahoo executive  had seen this game played in the email space year ago when Google’s gmail robbed Yahoo mail of its momentum – by offering far more storage.

Hightail is also considering partnering with some of the larger companies — many of which have reached out to him –to expand its reach. Garlinghouse, however, would not name any of them. 

With 43 million users and $57 million in revenue, the rebranding better reflects the firm’s expanded suite of products that goes well beyond  just filesharing and storage. said Garlinghouse, who has overseen a 35 percent to 40 percent growth in users since he joined Hightail just over a year ago.

How Tumblr might ‘screw up’ Yahoo

There’s a lot to unpack in Yahoo’s reported $1.1 billion deal for Tumblr, but much of the reporting today is focused on the rather bland challenge of turning Tumblr into a profitable company. Forcing Tumblr to make money will eventually become an important mission for Yahoo, but for now it’s far from the point.

This deal’s most pressing issue isn’t what will come of balance sheets, it’s what will come of each organization’s corporate culture. Marissa Mayer has promised, in her post on the deal, “not to screw it up.” She’s talking about Tumblr. But that’s just Mayer’s very smart way of inverting what she must be hoping Tumblr becomes for Yahoo: a threat to its older, established, some might say calcified culture that has been short on innovation, creativity and user-focused design for many years now. Tumblr, indeed, will be far from “screwed up” as it gets used to its new home under Yahoo. Tumblr seems to have a bright future as something like a design lab and an already-functioning charter city under the aegis of the Yahoo brand. It will be, and already is, something Mayer will point at to tell her team, “why don’t you do it that way?”

When Mayer was at Google and led all product management and design efforts, she famously relied on data about user behavior to inform her “design” choices for Google’s products. At the time, some argued that her method of, for example, choosing one shade of blue over another because it made users fractionally more likely to click wasn’t really design at all.

The future of search only cost $30 million

On the surface, Nick D’Aloisio’s story is the kind tech lives for, and sometimes regrets. It’s the tale of a kid selling an obscure startup for an inflated price, and then it becomes as irrelevant as Netscape, and its buyer’s remorse is part of the company’s enduring legacy.

But the story of Summly, a startup whose app appeared in the Apple Store only five months ago and was purchased on Monday by Yahoo for a reported $30 million, isn’t part of this trite arc.

This isn’t a boilerplate tale about a youngster hitting the jackpot, a former Internet giant trying to buy a relevance makeover, or even about an intriguing programmatic way to summarize news. It is about the future of search. 

Have AOL and Yahoo picked up the pieces?

“There are no second acts in American lives.” — F. Scott Fitzgerald

Good thing Fitzgerald didn’t live long enough to tell that to AOL and Yahoo, which are confounding wet blankets with sparks of renewed life and relevance. The bit of renaissance for these Internet pioneers comes when Google and Apple are in a bit of a rut and Facebook seems to have found its bottom. (The one constant: Groupon and Zynga are still floundering.)

None of these things are related, of course. There is no astrology of technology, aligning the stars in such a way as to favor some and deny others. Tech success isn’t a zero-sum game, especially when valuations aren’t everything. Just look at Apple’s rise and fall and rebirth.

Mayer can’t save Yahoo – because Yahoo can’t be saved

Yahoo eats CEOs. The perennially ailing company lures talented managers into the corner suite of its Silicon Valley headquarters, then it sucks their good reputations out of their veins and casts them aside. They inevitably pass through the revolving door an empty shell of their former selves.

Terry Semel, Jerry Yang, Carol Bartz, Scott Thompson. All took the CEO helm with visions of invigorating Yahoo into an Internet leader for the 21st century. Most became mired in Yahoo’s stubbornly byzantine culture. And all probably collected their severance checks wishing to themselves they’d never heard of the company with its stupid hillbilly name and its superfluous punctuation mark.*

Now it’s Marissa Mayer’s turn. Mayer – an early Google hire who instrumentally forged its successes in search, maps and online email – has become such a positive, likable presence in Silicon Valley that I actually felt sorry for her when I heard it was her time to be Yahoo’s help. A failed tenure as Yahoo’s CEO couldn’t happen to a better-qualified candidate.

Facebook’s passive-aggressive friendship

We are witnessing a fascinating changing-of-the-guard moment in tech. The old Internet, represented this week by once-mighty Yahoo, is fumbling with another leadership crisis it must solve before it can even think about restoring some semblance of relevance. The new Internet, Facebook, is ruled by a young man in a hoodie who is on the verge of creating a massive public company that, as was the nascent Yahoo back in the early ’90s, will be an Internet darling longer on potential than track record, but running hard on an open field.

The common thread might seem to be the “If it’s big, it’s gotta be BIG” illusion that got us all in trouble at the turn of the millennium, when Internet investment hysteria equated today’s eyeballs with tomorrow’s profits. But it’s always about the profits, and the people who promise them. This time that person is Mark Zuckerberg, who as the books on the Facebook IPO closed Tuesday, well in advance of Friday’s first trade, seems to have convinced Wall Street that his seven-year-old company could be worth more than $100 billion — the richest-ever launch in Silicon Valley.

When you value your company at 100 times revenues, investors are banking on the belief that Zuckerberg has perfected the unstable compound that is social abandon and advertiser hunger.

Yahoo CEO Scott Thompson’s forgivable sin

We’ve all had a little time to breathe after the disclosure last week that Yahoo CEO Scott Thompson embellished his resume. Despite saying he received an undergraduate computer science degree, he in fact did not. And while rising through several positions of increasing responsibility for years, he allowed those vetting his suitability to believe otherwise.

So far Yahoo has said Thompson was guilty of an “inadvertent error” and that it was reviewing the matter. Third Point, the activist shareholder who revealed what had apparently been hiding in plain sight and is trying to grab spots on Yahoo’s board, is now demanding that Yahoo fire Thompson.

Is this what’s best for Yahoo? I doubt it. Is Scott Thompson what’s best for Yahoo? I don’t know. It’s too early to say. And that’s the point.

Psssttt, Hey you, at Yahoo – You wanna make 25 grand?

Here’s one good thing about being a Yahoo employee: if you quit and join Yammer, a social networking service for businesses, in the next 60 days you’ll pocket a $25,000 signing bonus.

That’s the offer that was tweeted on Thursday by Yammer CEO David Sacks.

“They’ve got a lot of great engineers there,” Sacks said in an interview with Reuters. “The talent has been misused by senior management which has made a lot of bad decisions.”

Of course, when Sacks (whose credits include producing and financing the 2005 film Thank You For Smoking)  isn’t whispering sweet come-ons to Yahoo employees, he’s holding a gun to their heads. Infuriated by Yahoo’s controversial decision to sue Facebook for patent infringement, he vowed a day earlier that he would never hire another Yahoo employee that doesn’t leave the company in the next 60 days.

Boohoo for Yahoo

Yahoo is taking on Facebook — but it’s not vying for the hearts and minds of the Internet cool kids. It’s for licensing fees over some patents. This is not how it was supposed to be.

No, I’m not naive. But I am a bit of a romantic. Thing is, I remember when Yahoo was an upstart with two crazy awkward college kids who came up with something that the search giants of the time — Lycos and Alta Vista — could not withstand. Yahoo’s scrappiness was part of a long tradition of Silicon Valley startups that came before (and would come after). Like Bill Hewlett and Dave Packard, the elder statesmen of Silicon Valley who began their iconic company in a now iconic garage, Jerry Yang and David Filo started with nothing but an idea in a dorm room and changed everything. Yahoo’s blazing success in search and (the now-quaint notion of) cataloging the Web begs comparison to two other crazy awkward college kids who started a search engine. That search engine, of course, killed Yahoo. It had an equally kooky name — Google.

Now Yahoo, as part of its effort remake itself after a decade of decline, is said to be wielding a new weapon: a patent trove. The stellar DealBook blog of the New York Times, which first reported this story, couldn’t get anyone to disclose the particulars, but it quotes “people briefed on the matter” as saying Yahoo is threatening lawsuits and is in the midst of negotiations with a pretty big fish. “Yahoo is seeking to force Facebook into licensing 10 to 20 patents over technologies that include advertising, the personalization of Web sites, social networking and messaging,” DealBook reports.

Trolling for a tech showdown

The scene: A federal courtroom in Tyler, Texas.

The drama: A lawsuit by a patent troll who said he owned the rights to the “interactive web.” The troll says he’s owed some back rent for owning the Web we all use every day.

Dramatis persona: Tim Berners-Lee. Perhaps you’ve heard of him. He invented the World Wide Web.

Oh, to have been in Tyler. It was the stage for a showdown in one of the most bizarre patent troll cases ever, pitting (metaphorically if not in fact) expert witness Berners-Lee against some punk who wanted to make his name by taking out a very, very big gun in a shootout. The plaintiff, Eolas, claimed it owned patents that entitled it to royalties from anyone whose website used “interactive” features, like pictures that the visitor can manipulate, or streaming video. The claim, by Eolas’s owner, Chicago biologist Michael Doyle, was that his was the first computer program enabling an “interactive web.”