Google sours on $1 billion AOL investment

The search giant said in a filing with the Securities and Exchange Commission that its $1 billion investment for a 5 percent stake in Time Warner’s Web unit “may be impaired” and that it may have to take a charge in the future:

Based on our review, we believe our investment in AOL may be impaired…We will continue to review this investment for impairment in the future. There can be no assurance that impairment charges will not be required in the future, and any such amounts may be material to our Consolidated Statements of Income.

Google didn’t estimate in its filing what AOL might be worth today, but observers have suggested a figure closer to $10 billion.

The December 2005 investment secured a renewal of Google’s search advertising deal with AOL, preventing its largest ad partner from defecting to Microsoft. The deal gave AOL a valuation of $20 billion at the time.

Google’s deal allows it to demand that Time Warner spin off AOL in an initial public offering of stock or buy back its stake, which would result in a $500 million loss for Google.

Google acknowledged late Thursday that it may have made a bad bet on AOL.

Time Warner, perhaps signaling its intention to dispose of AOL to focus on its media business, announced Wednesday that it will split AOL’s dial-up unit from its advertising business by early 2009.

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Don’t get burned by Windows Update

The first thing I noticed afterward was that IE 7 turned on the language bar toolbar on the task bar. It doesn’t take up much room, but I have no interest in the language features and the fewer things running the better.

I use
Firefox for pretty much everything, so my main desktop and laptop (both running Windows XP) still had Internet Explorer version 6 until recently. I also run Windows Update manually, so keeping IE 7 off my machine involved nothing more than unchecking a box once a month. But now that IE 7 has been out for roughly a year, and I’m addicted to tabs, I finally got around to installing the browser.

It’s the very definition of irony: bugs in the application designed to install bug fixes. Such is Windows Update, which in the two instances described below installs known buggy software–and tells you that all is well when it is not.

Installing IE7

All seems well at this point, but it’s not. A critical bug fix having to do with something called VML is missing. The fix goes by the names KB938127 and MS07-050 (see Critical Vulnerability in Vector Markup Language Could Allow Remote Code Execution) and dates back to August 2007. Yes, Microsoft has had eight months to make Windows Update smart enough to install this critical bug fix when it installs IE 7. Or, at the least, warn us to run Windows Update again. But no, it instead installs known buggy software.

.Net Framework Version 2

Though all seems well, I ran Windows Update again. Sure enough, the just-installed .Net framework needed updating. And not just one bug fix; it was missing an entire service pack (KB110806). Installing the service pack was uneventful other than the required reboot.

Since I was up-to-date on bug fixes, IE 7 was the only thing Windows Update had to install. The installation process includes the option shown below about installing “the latest updates for Internet Explorer,” which I did. All went well, at least according to Windows Update.

To get rid of the language bar, go to the Control Panel, click on Regional and Language Options (the globe), then click on the Languages tab, then the Details button, then the Advanced tab. Finally, put a check in the box to “Turn off advanced text services”.

The same thing happens when you install version 2 of the .Net framework. There are three versions of the .Net framework, and all are optional–until, that is, you try to install software that requires it.

See a summary of all my Defensive Computing postings.

Back to Windows Update and, finally, everything is up to snuff.

There is no excuse for a software update application, such as Windows Update, to install known buggy software. No excuse, but there is a reason: either incompetence or a corporate laziness that sets in when a company is not challenged in the marketplace. I am not sure which applies in this case.

Again, I started with a Windows XP system that was up-to-date on all bug fixes and installed nothing but version 2 of the .Net framework using Windows Update. As before, I ran Windows Update manually (Tools -> Windows Update in IE) and opted for a Custom install. All went well, and I rebooted afterwards, just for good luck.

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Apple’s Jobs PA Semi to design iPhone chips

It’s well known that Apple has played an active role in the design of chips that go into its system for years, but the acquisition of Dan Dobberpuhl’s PA Semi team means it will apparently play an even more active role in the future. Jobs has previously said that Apple acquired PA Semi for its talent and patents–not its products–but had not shared many details about its plans for that talent.

Apple may have taken a look at the future of mobile chip development and decided to forge its own path.

The New York Times scored an interview with Apple CEO Steve Jobs following Monday’s Worldwide Developers Conference keynote, and buried inside a rambling exchange about parallel processing and Mac OS X Snow Leopard was this little nugget about PA Semi, the chip company Apple acquired in April. “PA Semi is going to do system-on-chips for iPhones and iPods,” Jobs told the Times.

(Credit:
Apple)

System-on-chips, or SOCs, are pretty much what they sound like: complete computer systems on a single chip, including the processor, memory, graphics, networking, and all the regulator chips needed to manage things like power consumption. ARM’s licensees, such as Texas Instruments, Samsung, and Nvidia build SOCs around ARM’s processor cores for smartphones such as the
iPhone, and Intel wants to head down this path with its Atom processor family.

The companies that license ARM’s instruction set are increasingly butting heads with Intel as the ARM community tries to move up from smartphones into more powerful mobile computers, and Intel tries to shoehorn its PC processing know-how into a mobile environment. There has been much speculation over the past year or so that Apple will one day add processors for mobile devices to the invoices orders it sends Intel every quarter for
Mac processors, but the PA Semi acquisition apparently means Apple is prepared to go it alone.

Future successors to the iPhone 3G might use a chip completely designed by Apple.

In an interview with Nvidia CEO Jen-Hsun Huang last week, we got to talking about mobile processors and the evolution of that market, and he insisted that Samsung, widely thought to be the processor supplier inside the iPhone, merely “fabbed” the chip. In his view, Apple was the chief designer of the ARM-based processor that’s used to run the iPhone–and presumably the iPhone 3G unveiled Monday–with Samsung just providing the factory. The PA Semi engineers would allow Apple to draw up a complete design in-house and take it to a chip foundry without having to let any other mobile processor companies in on its plans, Huang said.

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Stimulate this Buy American-made audio with your

The Federal Economic Stimulus program checks are in the mail. When you get yours try and be a good consumer and spend it right away. That’ll help our economy and remember the checks will do the most good if they’re spent on made in America products. One of my favorite high-value, high-end audio brands, Outlaw Audio, would be a good place to start. Its multi-channel home theater power amplifiers are in fact proudly made in the USA. Outlaw sells direct on its website and all of their amps are now on sale–with free FedEx Ground shipping! If you’re single and getting the $600 check you might want to pick up the $599 Model 7075. If you’re married and lucky enough to get a $1,200 check the $899 Model 7125 would be even better. Hey, it’s practically your patriotic duty to buy American audio.

Your rebate can buy all American audio like this

(Credit:
Outlaw Audio)

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T-Mobile’s RIM BlackBerry 8820 is all about busine

Spring has arrived and the flowers are blooming, and apparently so are the BlackBerrys. Just last week, RIM released the BlackBerry Pearl 8120 for AT&T, and now T-Mobile is getting the RIM BlackBerry 8820. It isn’t the freshest model on the market; in fact, AT&T has had this model for a few months. However, it does present T-Mobile customers with a better-equipped business smartphone than the current RIM BlackBerry 8830, since it brings the addition of Wi-Fi and support for the carrier’s HotSpot@Home service. It also continues to offer Bluetooth, GPS, and of course, e-mail capabilities. Our minor gripes with the phone include a kludgey Web browser and design flaws, but overall, the BlackBerry 8820 will serve mobile professionals well. Read our full review to get all the juicy details.

RIM BlackBerry 8820 for T-Mobile

(Credit:
Corinne Schulze/CNET Networks)

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U.S. military enlists iPod Touch for battlefield

The hottest new battlefield weapon in Baghdad is also a hot item on the home front.

(Credit:
Apple)

Apple’s iPod Touch is proving to be a valuable tool to members of the U.S. military, according to a report in Newsweek.

The U.S. military has found the iPod Touch to be a valuable battlefield tool for soldiers.

The report notes that the iPod performs many functions in this time of “networked warfare,” enabling soldiers to be linked with other soldiers, as well as intelligence resources, such as aerial images from drones and translation software.

Updated at 1:25 p.m. PDT to clarify that apps being developed for
iPhone as well.

Soldiers can use applications to add translated phrases to maps and photos, as well as show villagers video messages from local leaders. A new program called Vcommunicator translates spoken and written Arabic, Kurdish, as well as two Afghan languages.

Oh yeah, this rugged device, which retails for less than $230, was developed in the private sector without taxpayer money. Considering the military’s history of being charged for $435 hammers, $640 toilet seats, and $7,600 coffeemakers by contractors, this is a great deal.

Another application developed for the iPhone allows soldiers to take a photo of a street sign, upload it, and immediately receive intelligence on the local area, such as water and sympathizers. Because new recruits are already familiar with how the iPod and iPhone work, it’s also easier to train soldiers on loading content, the report notes.

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AT&T to offer live mobile TV in May

Lombardi said the service could be sold much like satellite radio, which allows people to subscribe to a monthly service for about $10 per month. If subscribers want satellite radio service on additional devices, they get a slight discount on the monthly subscription for the second and third device.

Jacobs blames the carriers for not advertising the service enough. He said that carriers might be waiting for MediaFlo to increase its coverage, which he said will happen in February 2009 when TV broadcasters will transition to digital TV, the article said.

AT&T first announced its partnership with MediaFlo in February 2007. Back then it said it expected the service to begin by the end of 2007. AT&T spokesman Mark Siegel told Reuters the company waited until May to offer the service because it was “a brand new service on a brand new network, and two brand new devices.”

If consumers don’t fall in love with live mobile TV it could spell trouble for Qualcomm’s MediaFlo USA, which has spent millions of dollars acquiring spectrum and building the network. Right now the company wholesales the service to mobile operators. But Verizon and AT&T are currently its only customers.

MediaFlo USA is a subsidiary of wireless chipmaker Qualcomm. Using analog broadcast TV wireless spectrum it bought several years ago, MediaFlo has built a wireless network to deliver broadcast TV service to mobile devices.

The new service will operate on two new handsets, the LG Vu and the Samsung Access. Subscribers will get access to eight channels of live TV plus two exclusive channels. AT&T said it would make pricing information available in May when the service officially launches.

Lombardi said the company is in talks with other wireless operators in the U.S. But the company is also considering offering its service on any device with a small screen.

AT&T said Thursday that it will start offering live mobile TV service from MediaFlo in May, but will anyone be watching?

“We’ve had a lot of interest from
car manufacturers,” she said. “We’ve even had refrigerator manufacturers ask if we could provide TV service to the tiny screens they put on refrigerators.”

But some mobile experts question whether people really want to watch TV on their phones. Verizon is charging $15 a month extra for eight channels of live TV. Perhaps the price point is still too expensive for consumers who on average spend about $40 to $50 a month on cell phone service. And as the economy dips further into a recession, I question how willing people will be to spend extra money on what I’d consider an unnecessary service like mobile TV.

“We are looking into all of these options,” she said. “If there’s interest, we don’t want to turn away from any opportunity knocking at our door.”

Verizon Wireless, which was the first wireless provider to work with MediaFlo, has been offering the service for more than a year. Verizon hasn’t published specific subscriber numbers, but Qualcomm’s CEO Paul Jacobs said during a speech at the Tech Policy Summit in Hollywood on Wednesday that the uptake has been going slower than the company would like, according to RCR Wireless News.

Qualcomm, which owns spectrum for the analog TV Channel 55, has had to negotiate with broadcasters in each market to be able to use the spectrum that some of them have used to broadcast TV. The network is currently operating in about 55 markets and is available to about 130 million people, said Gina Lombardi, president of MediaFlo USA. Markets where MediaFlo has launched include Los Angeles, New York, Chicago, Dallas, Orlando, and Philadelphia.

It will be interesting to see AT&T’s customers’ response to the live TV service. AT&T already offers an on-demand video service to customers who buy certain 3G data packages.

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Report Google, Microsoft, and two media companies

TechCrunch reported early on Friday that four companies are in the running to place bids on Digg–Microsoft, Google, and two unidentified “media companies”–and that a sale may happen soon. It’ll likely be less than the $300 million that Digg was once rumored to go for; TechCrunch’s Michael Arrington cited sources who said that Google is prepared to bid $200 million to $225 million and that Microsoft, which currently serves ads on Digg, is aiming slightly lower. That’s a good bit less than the $300 valuation that was floating around when Digg reportedly hired investment bank Allen & Co. to shop it around.

In an interview several weeks ago, Digg founder Kevin Rose told CNET News.com that he thought selling the company to a big buyer could get in the way of running it efficiently.

As for the media companies, no specifics are given, but keep in mind that Digg has deals with several traditional media companies’ online arms, like CBS and News Corp.

One TechCrunch commenter noted, “Good for them, but Diggers will complain either way,” referring to the site’s active and opinionated crowd of regular users. “There’s no pleasing them.”

If every blog rumor were to be believed, social news site Digg would have been bought a dozen times over by now, so take the latest one with the requisite grain of salt.

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Opera mobile browsers swap Yahoo for Google

Update 6:30 p.m. PT: I added Yahoo’s comment that it chose not to continue the partnership and edited wording accordingly.

Google search will be presented on the Opera browsers’ start pages–except in Russia and other former Soviet republics, Opera said.

In January 2007, Yahoo and Opera announced that Yahoo would be the default search engine on Opera Mobile and Mini. Now, though, the mobile versions are getting what the desktop version of Opera has had for seven years–a built-in Google default.

Opera has switched out Yahoo and made Google the default search engine for its Opera Mobile and Opera Mini Web browsers designed for mobile devices.

(Credit:
Opera)

Yahoo said the change was on its own initiative, though it didn’t offer details on what exactly it didn’t find desirable about having its OneSearch mobile search service be selected by default.

Opera Mobile is getting Google as its default search option.

Opera Mini can be downloaded for free on mobile phones, and Opera Mini users collectively browse 1.7 billion Web pages per month, the Oslo, Norway-based company said.

“Yahoo has elected not to continue its mobile search partnership with Opera at this time,” the company said in a statement. Yahoo has 29 carrier partnerships, and its “ability to partner with leading mobile operators and handset manufacturers enables us to lead and further the global mobile ecosystem.”

Opera and Google “are extending this collaboration to give our users immediate access to the quality and convenience of Google’s search results,” Opera Chief Executive Jon von Tetzchner said in a statement Wednesday.

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A Hello Kitty assault rifle that actually exists

(Credit:
RifleGear.com)

Unfortunately, according to certain other people who write for this blog, Hello Kitty won’t make an assault rifle any less terrifying. Apparently, that cat is trying to take over the world.

Awhile back we were treated to a hilarious Photoshop job called the HK-47–an assault rifle decorated with images of everybody’s favorite nonpornographic, nontentacled Japanese import, Hello Kitty. We were sad to learn that it was, well, Photoshopped.

But now, out of nowhere, here’s a real one. As a protest against assault weapons bans, one rifle enthusiast in California decided to create a weapon that would “alleviate the fears of (his) fellow citizens and gun-banning legislators when (he) put together a new AR-15 for (his) wife.” So he modded the AR-15 to make it baby-pink with an image of Hello Kitty holding a weapon, as well as some extra-cute cartoon flowers! Brilliant!

This was sent to us by a tipster. I don’t normally spend my time reading RifleGear.com, but from the likes of this item, maybe I should.

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