<![CDATA[Valleywag: eBay]]> http://cache.gawker.com/assets/base/img/thumbs140x140/valleywag.com.png <![CDATA[Valleywag: eBay]]> http://valleywag.com/tag/ebay http://valleywag.com/tag/ebay <![CDATA[ Google, HP and others form League of Extraordinary Patent Holders ]]> Tired of fielding lawsuits from patent trolls and scared of court injunctions like that faced by RIM which nearly shut down the company's BlackBerry service, Google, Hewlett-Packard, Cisco, Verizon and Ericsson are among the companies rumored to be behind the formation of the Allied Security Trust. Ponying up $250,000 down payments and $5 million in escrow to make purchases, the trust seeks to buy patents before they fall into the hands of patent trolls. (That's the polite name the group's founders use for companies which seek to make money litigating infringers rather than by create products.) But the real bogeyman here is the rise of a possible patent troll to rule all patent trolls, Intellectual Ventures, which has close ties to Microsoft.

The plan is for companies that buy into Allied Security to buy up unused patents, issue themselves nonexclusive licenses for a song and then sell the patents. While it's not clear if Allied Security is a nonprofit, former IBM veep Brian Hinman who heads up the organization asserts it's not a profit-making venture. IBM, of course, has done much to refashion itself as a promoter and producer of open-source software — something anathema to Microsoft's culture.

The same can't be said of Intellectual Ventures, which was founded by former Microsofties Nathan Myhrvold and Edward Jung, Intel's Peter Detkin, and Gregory Gorder of Seattle law firm Perkins Coie, which counts Microsoft as a top client. Myhrvold has been buying up patents left and right, and while his company has yet to sue anyone, he hasn't ruled it out. Microsoft executives have traditionally aped Bill Gates hard-line rhetoric when it comes to intellectual property, and there's little reason to believe Myhrvold and company are any different. While Google is also an investor in the fund (along with Apple and eBay), the Mountain View company must be worried enough about the fund's plans and ties to have helped create a potential competitor.

In other words, if Intellectual Ventures continued to aggregate patents in a competitive vacuum, it could become just as if not more dangerous a monopoly than Microsoft in the company's heyday by commanding premium royalties or denying access to patents entirely in order to hobble products and competitors. It's yet to be seen if Intellectual Ventures will carry water for the Redmond software giant in court, and for now, Allied Security is collection of legal documents and yet an actual owner of patents, but this could shape up to be one of the most boringly important battles in the coming years.

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Tue, 01 Jul 2008 09:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5020978&view=rss&microfeed=true
<![CDATA[ Louis Vuitton awarded $63 million in suit against eBay ]]> Luxury goods manufacturers have been increasingly protective of brands, and Parisian courts have sided with homegrown companies against eBay twice now with a ruling against the online auction site in the amount of €40 million ($63 million) for its role in facilitating the trade in knockoff Louis Vuitton handbags, luggage and other accessories. Christian Dior, another brand owned by Vuitton parent LVMH, had earlier won a small judgment against eBay in French courts for the unauthorized sale of Dior perfumes — the perfumes were real, but were in breach of exclusivity agreements Dior had signed with other retailers.

In its defense, eBay says this is simply an attempt to "to protect uncompetitive commercial practices at the expense of consumer choice and the livelihood of law-abiding sellers." The company's system by which manufacturers can flag suspicious and possibly fraudulent sales was not enough to mollify manufacturers or the French magistrate. It certainly sounds a lot like YouTube's laissez-faire approach to policing copyright on the video sharing site. But YouTube has the protection of the DMCA here in the United States and a broadly equivalent law, DADVSI, in France. There are no laws on the books in either country to protect eBay's right to operate like Los Angeles's Santee Alley or New York's Canal Street markets. (Photo by L. W. Yang)

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Mon, 30 Jun 2008 15:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5020877&view=rss&microfeed=true
<![CDATA[ Only five days left in eBay auction for man's entire life ]]> Ian Usher, the British ex-pat living in Australia who is selling his life on eBay, only has 5 more days with all his stuff. That's when his eBay auction ends and a winning bidder will take over Usher's motorbike, jet ski, bicycle, hobbies, friends, job and lifestyle. The latest bid values it all at $233,000. For pickup only.

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Mon, 23 Jun 2008 09:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5018747&view=rss&microfeed=true
<![CDATA[ Seller goes nuts at eBay Live ]]> EBay sellers don't like the fact that buyers can rate them, but they can't rate buyers. Especially since eBay charges sellers with low ratings more. At eBay Live in Chicago, this animosity spilled over as one seller, caught here on video, screamed at eBay employees on stage: "Open your eyes! Nobody's here! You're putting sellers out of business!" The clip, after the jump.

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Fri, 20 Jun 2008 13:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5018403&view=rss&microfeed=true
<![CDATA[ Would an in-house attorney keep Craigslist in line? ]]> Hookers and eBay, shares and cops. If Craig Newmark and Jim Buckmaster, had an attorney on staff with them, would that have prevented questionable legal moves by the founder and CEO of the world's most reliable housemates and hookups platform?

Law.com went to a handful of lawyers to the startup stars to get their unofficial advice on how Craigslist could might have behaved better with counsel in-house, such as wrestling with eBay over the status of the few shares not held by Newmark and Buckmaster. Mike Godwin, general counsel to the Wikimedia Foundation, offered that at his organization no one would blog about a lawsuit in progress, as Buckmaster did. Yes, take a lesson from a lawyer who represents the organization founded by über-slut Jimmy Wales: no matter how nutty Craig and Jim's actions are, having a legal team on the payroll to answer for them is the solution. (Photo: miketippett)

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Fri, 20 Jun 2008 13:00:00 PDT Melissa Gira Grant http://valleywag.com/index.php?op=postcommentfeed&postId=5018436&view=rss&microfeed=true
<![CDATA[ Skype 4.0 Beta: It's all about telemarketing ]]> The acquisition of Skype has been something of an albatross around eBay's neck — what, exactly, does an auction site need voice-over-IP and chat software for? With the new release, it's starting to make a bit more sense. Not as a chat client for early-adopter technology fetishists, but as a telemarketing tool. Here's how!

With video and text chat allowing managers to check in on employees and feed them scripts, as well as cheap international calling and archiving conversations, it can work as a cheap and easy tool for managing remote customer-service centers to close those deals made on eBay and keep the credit card charges flowing into PayPal. In other words, it's about lubricating "transaction friction" by increasing buyer confidence and decreasing credit card charge-backs and complaints. Now if only there was a country with lots of English speakers and really low wages.

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Wed, 18 Jun 2008 12:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5017620&view=rss&microfeed=true
<![CDATA[ Heard this one before? eBay announces developer platform, Project Echo ]]> Wall Street has long sought an eBay site redesign. Finally, eBay has a plan to get one . The company announced Project Echo, a software platform for third-party developers whom the company hopes will do the heavy lifting to get such a redesign done. "Rather than having eBay try to build every feature, we should open up the platform and integrate others' work," eBay exec Max Mancini told reporters. Project Echo is the perfect name, if only because we've heard all this before.

These days Facebook, MySpace, Google, Apple, Salesforce.com and LinkedIn all call themselves platforms and hope third-party developers will believe it. One reason eBay stands a chance: Like all of those services, it has millions of users; unlike most of those services, all of eBay's users visit the site to spend or make money. If a developer can build an app to "reduce the friction" in an eBay transaction — as an MBA might put it — then there's a chance they could get away with taking a tiny cut for themselves. Already, outside developers have built 12,000 programs, accounting for a quarter of all eBay listings.

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Tue, 17 Jun 2008 08:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5017150&view=rss&microfeed=true
<![CDATA[ Auction site eBay gets out of brokering TV and radio ads ]]> While the occassional videoblogger might put up sponsorships for sale through eBay's auction site, networks and radio stations weren't so interested, so eBay is cutting its few deals with cable networks loose and ending its partnerships with Bid4Spots in brokering AM and FM ads. Which is a shame, because I was totally going to buy some radio ads right after I purchased some Beanie Babies. [Industry Standard]

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Thu, 12 Jun 2008 14:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5015919&view=rss&microfeed=true
<![CDATA[ Facebook profiles for sale on eBay ]]> An eBay seller going by the handle pseudopr415 is offering 10 Facebook profiles, each with a minimum of 200 friends, for sale in an eBay auction that closes June 14. The seller writes: "I currently am testing the waters, and would like to see if any marketers are interested in using these." Facebook makes a lot of noise about how its users trust the site so much, they'll often supply their cell phone numbers, email and home addresses for their friends and contacts to see. Access to that information could be worth plenty to spammers as well as identity thieves. The product description pseudopr415 created — including a five-step fake profile plan, descriptions of the characters he's created for the 10 profiles and, in case you have any questions, an email to contact the sneaky bastard — below:

I am the owner of ten Facebook profiles. Every single one of my profiles has at minimum 200 friends. I have aggregated the friends for each persona organically. I will briefly mention the manner in which I compiled a list of genuine friends for each persona.



Step 1: Develop a persona with an intense interest on specific subjects/topics
Step 2: Integrate that individual into communities/forums based on their interests
Step 3: Stimulate conversation inside communities/forums and interact with other users
Step 4: Establish the persona inside the communities/forums
Step 5: Begin to add friends organically



The ten profiles I have are as follows, and can be sold separately if requested:

  • Samantha (age 19) – loves music, makes art, and enjoys the outdoors
  • John (age 35) – health purist, into yoga, active runner, amateur cyclists, and into healthy eating.
  • David (age 23) – Computer programmer, big gamer, into the latest gadgets, and is a blogger
  • Michael (age 42) – Intellectual, reads books, enjoys poetry, has a weakness for fast food, and loves his two kids
  • Carrie (age 26) – Fashionista, craves gossip magazines, doodles potential outfits, and follows celebrity developments
  • Erik (age 29) – Big beer drinker, watches a ton of sports, likes sports cars, and likes to cook
  • Holly (age 18) – Big into volunteering, loves reading, loves school, and interested in travelling abroad
  • Peter (age 19) – Athlete, big into college life, likes drama and mystery movies, and can’t live without mac and cheese
  • Shannon (age 33) – Design aficionado, into exploring a city’s culture, active artist, and
    is latched onto her iPhone
  • Kristin (age 40) – Live at home mom, loves cooking for her family, wishes she had a new car, wants a vacation to the beach, and is really into gardening




These personas are geographically dispersed, and they all live in major cities across the United States. I am leaving the last name of the profiles absent, as not to be identifiable by Facebook employees. I am not providing a screenshot of the profiles either, but they are available if a serious request is made.



All of these Facebook personas engage on a daily basis with other Facebook members, they share content, and they update their status. They have a variety of applications installed on their Facebook page, and they have a substantial amount of comments left on their wall. Additionally, these personas post pictures they find interesting on their Facebook page.



I currently am testing the waters, and would like to see if any marketers are interested in using these. Under the right conditions and for a fair price you will receive full control of these personas, as well as associated emails. A walk through each of the characters is possible if an individual is serious about their interest, and is willing to assign a value to the persona ahead of time.



I would love to hear from you. Please contact me at: pseudopr@gmail.com for questions
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Thu, 12 Jun 2008 14:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5015883&view=rss&microfeed=true
<![CDATA[ Tech's 10 worst-rated CEOs, according to their employees ]]> Benchmark-backed Glassdoor.com popped out of stealth mode as a site that lets users find out what employees think of their employers. As a part of the ratings, company CEO's get a grade. Some, such as Cisco's John T. Chambers and Apple's Steve Jobs fared very well — coming away with 93 percent and 95 percent approval ratings. Others, including Microsoft's Steve Ballmer and Yahoo CEO Jerry Yang, did not. The ten worst-rated CEO's and what employees told Glassdoor they think about them, below.

VeriSign chairman Jim Bidzos
An employee's advice to senior management:

Don't drag out the divestiture process in an effort to get a few extra bucks. And if you're going to kill the whole thing, be honest with employees about opportunities.

AMD chairman and CEO Hector Ruiz
An employee's advice to senior management:

AMD needs to go back to basics. What business is AMD in, who do you need onboard to lead the company in that business, who do you need that can create demand for the product, and what do the customers want? Ignore the "how" and focus on the "who." Stop treating employees like costs and more like assets. Threatening cubical hoteling and pushing the "do more with less" story is oppressive, not inspiring. The most marketable talent will leave first.

EMC CEO and chairman Joe Tucci
An employee's advice to senior management:

Senior management needs to respect its employees, listen to feedback and not bury its head in the sand as it relates to issues of sexism and lack of diversity. The culture continues to be predominantly young white men and this is largely because people hire who they know. "Breaking the glass ceiling" requires a lot of sacrifice! They will cite a few examples of high profile women, but these are the exception, not the rule. Work/life balance is not a priority in this company. Most of the highest ranking professional women in this organization are unmarried or do not have children. They need to recognize the need for more flexible work options that promote the importance of family. And most importantly, there need to be consequences for illegal and unethical behavior, regardless of who commits it! People cannot be protected from this. There are too many blind eyes turned when sexual harassment, illegal business practices, or other unethical acts occur.

Yahoo CEO Jerry Yang

An employee's advice to senior management:

Be more open to the workforce opinions. Be more humble. Be less political. Listen more, do more, and quickly.

eBay CEO John Donahoe
An employee's advice to senior management:

Streamline the process so people can focus more on getting their work done. Share more of the details of the vision for eBay and the competition of eBay.

Symantec CEO John Thompson
An employee's advice to senior management:

Open your eyes to how the actually successful companies are doing it. Use your talent pool and clear the way to innovate internally. Shift the focus from salesmanship to inherent quality. Build products that sell themselves rather than needing an aggresive sales cycle to move.


Hewlett-Packard chairman, president and CEO Mark Hurd

An employee's advice to senior management:

Stop screwing the employees. Stop reducing benefits every week. Stop saying you plan to invest in research and development when you are actually reducing everything except your bonuses. Start treating people as people. Get some moral fiber.


EDS chairman, president and CEO Ron Rittenmeyer

An employee's advice to senior management:

As I said above, either learn to trust the junior leadership you put into place or replace them. Set goals and then GET OUT OF THE WAY and allow the leadership the flexibility to execute to them. If they don't perform, release them. The micromanagement culture has to stop.

IBM chairman, president and CEO Sam Palmisano
An employee's advice to senior management:

One thing is missing though, an acceptance of the fact that there are "superstars" in the world, and that these superstars perform several orders of magnitude better than regular employees. What is missing within IBM is the ability to seek out, and nourish these superstars. Over time superstars will leave IBM because they will get much more recognition in other organizations. This has an impact on IBM's ability to deliver some things.

Microsoft CEO Steve Ballmer
An employee's advice to senior management:

There is a severe lack of leadership in the company. With so many things going on it takes executives too long to commit to business decisions and too long to pick up on competitive responses to disruptive technologies.Microsoft promotes based on 2 facets - technical knowledge and political saavy. What Microsoft does not promote based on is leadership ability, managerial ability or business saavy.

(Photo of Ballmer by AP/Sarbach)

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Thu, 12 Jun 2008 08:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5015455&view=rss&microfeed=true
<![CDATA[ Google forcing App Engine developers to use Checkout? ]]> Developers who jumped on the Google App Engine bandwagon have gotten an unpleasant surprise. Those who create Web applications using Google's computing infrastructure have found that the Mountain View advertising broker is not-so-subtly asking them to use Google Checkout to accept payments and not rival online transaction processing PayPal, an eBay subsidiary. Valid PayPal domains "accidentally" got caught up in Google's anti-phishing efforts, according to Googler Marzia Niccolai.

Kind of like that anonymous complaint about eBay's anticompetitive practices in Australia "accidentally" displaying data which identified Google as the author. If the conspiracy theorists are right about Google blocking access to PayPal through App Engine intentionally, then why not just say that turnabout is fair play after eBay pulled similar stunts to keep Google Checkout off the auction site? That seems easier.

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Tue, 10 Jun 2008 14:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5015174&view=rss&microfeed=true
<![CDATA[ Amazon.com and Google to rule Web, according to Wall Street's Captain Obvious ]]> Yahoo, IAC and eBay are in for rough sailing, but Google and Amazon.com should cruise smoothly and emerge as the big winners in the coming years, according to analyst Jeffrey Lindsay of Wall Street research firm Sanford C. Bernstein in a 310-page report published yesterday titled "U.S. Internet: The End of the Beginning." Tellingly, there's no mention in the summary article of Facebook CEO Mark Zuckerberg's plans for a totes awesome IPO. [Reuters]

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Wed, 04 Jun 2008 09:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5013011&view=rss&microfeed=true
<![CDATA[ Bid for relevance ]]> Through higher fees and other changes, eBay is trying to push auctioneers off its site, as consumers favor fixed-price purchases. [BusinessWeek]

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Tue, 03 Jun 2008 11:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5012699&view=rss&microfeed=true
<![CDATA[ Google's anti-eBay subterfuge exposed ]]> GoogleWhoMe.jpgeBay plans require its Australian buyers and sellers to complete all their transactions through its PayPal payments service. The only holdup? A 38-page, anonymous filing to an Australian regulatory agency, claiming the real purpose of eBay's rule change "is to substantially lessen competition in the Market for Online Payment Processing Services." The fighting-words filing isn't so anonymous anymore. An AuctionBytes reader discovered the 38-page PDF filing was created by Google.

The file had an electronic stamp showing it was generated from a Microsoft Word document titled ""ACCC Submission by Google re eBay Public 2.DOC." So much for the secret jab. Google runs its own payments service, Google Checkout, and the PayPal rivalry is often intense. Last summer, Google planned a Boston Tea Party to promote Checkout to merchants during the eBay Live conference in Boston. eBay complained and, even though Google canceled the event, eBay pulled its advertising from the site for several weeks.

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Thu, 29 May 2008 09:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=393946&view=rss&microfeed=true
<![CDATA[ PayPal closes the border ]]> Prohibited!When Peter Thiel launched PayPal a decade ago, he had a vision of a global payments mechanism which would accelerate the withering-away of the nation-state. And then he sold it to eBay. eBay's latest failure to transform the international monetary system is quite literal; for almost two weeks, PayPal has had a bug which prevents it from collecting cross-border payments for subscriptions — this while its new president, Scott Thompson, has been touring the globe. The error: a bit of code in a drop-down menu. Subscriptions are a small part of PayPal's business, though vital to the complaint-prone blogging class. Regardless, it's a trivial bug that should have taken minutes, not weeks, to fix; that eBay has not yet done so would seem to speak to a profound rot in its technical organization — which Thompson headed up as CTO before his promotion.

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Mon, 26 May 2008 13:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=393214&view=rss&microfeed=true
<![CDATA[ Zuckerberg follows Jobs, Page, Skoll to ashram ]]> neem_karoli_baba.jpgIn the latest installment of "Where in the World is Mark Zuckerberg," one stop on his tour to the subcontinent was to the favored ashram of Larry Brilliant, director of Google's entrepreneurial philanthropy project, Google.org. This would presumably be the one run by Neem Karoli Baba which Apple CEO and co-founder Steve Jobs has also visited. Brilliant has said he also brought Google cofounder Larry Page and eBay cofounder Jeff Skoll there.

Baba's teachings include the precept that showing kindness to others is the highest form of devotion to God, and writings compiled by noted mystic Ram Dass in the book Miracle of Love. It's an opportunity for Zuckerberg to appear deep when discoursing on management philosophy. More importantly, he can now share the experience with other tech titans as a sort of rite of passage in the tightknit world of the Valley's ultrarich. (Photo by Ken Wieland)

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Thu, 22 May 2008 17:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=392845&view=rss&microfeed=true
<![CDATA[ Craigslist CEO an expert time-waster ]]> BuckmasterJim Buckmaster, the suspiciously tall CEO of Craigslist, hates meetings. "I've always found them to be at best unproductive and boring, and at worst toxic and destructive," he tells FT Deutschland. "The people who want to show off do, the brown-nosers brown nose, everyone else wastes their time. I also think the larger the meeting, the worse it is." Buckmaster prefers to email or IM, even while in the same room as his electronic correspondents. When forced to attend a meeting, he finds ways to kill time: "Meetings are excellent for doodling. I can remember doing some really, really spectacular doodles." Doesn't this explain so much about how eBay's relationship with Craigslist soured?

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Wed, 21 May 2008 16:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=392573&view=rss&microfeed=true
<![CDATA[ Chicago gets in on tax racket, sues StubHub over lost revenues ]]> CubsTickets.jpgThe city of Chicago filed suit against eBay subsidiary StubHub for failing to pay taxes. Chicago alderman Edward Burke says the city loses as much as $16 million a year by not collecting taxes on StubHub's online transactions. In response, eBay said it intends to lobby Washington, D.C. to pass legislation banning the collection of Internet taxes as too onerous for small Internet businesses. The "businesses" in question here are the scalpers whose sales StubHub facilitates, not eBay itself. In April, eBay reported that its first quarter-revenues rose 24 percent to $2.19 billion. (Photo by veganstraightedge)

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Wed, 21 May 2008 09:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=392367&view=rss&microfeed=true
<![CDATA[ Repair your F-14 with parts from eBay ]]> The United States Armed Forces no longer use the F-14 fighter jet, which can make it a real pain for armies that do, such as the Iranian air force, to repair theirs. Fortunately, there's eBay and Craig Newmark's Internet-based love-in, Craigslist. The U.S. Government Accountability Office reports that F-14 spare parts and troop equipment such as night vision goggles can be found and purchased from both sites. "Many of the sensitive items we purchased could have been used directly against our troops and allies, or reverse engineered to develop counter measures or equivalent technologies," read the GAO report. Another instance when a few buyer ratings could go a long way. (Photo by James Gordon)

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Mon, 19 May 2008 10:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=391622&view=rss&microfeed=true
<![CDATA[ Man puts cheating wife up for auction on eBay ]]> ebaywifeauction.jpgPaul Osborn of the U.K. suspected his wife was having an affair, so he put her for sale on eBay. Bids for the goods, listed as ""cheating, lying, adulterous slag of a wife" reached $961,700 before the 44-year-old man decided to pull the auction. Good thing he did: eBay's terms of use forbid the sale of humans, in whole or in part.

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Thu, 15 May 2008 17:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=390757&view=rss&microfeed=true
<![CDATA[ Craigslist whines like a toddler in countersuit against eBay ]]> Craigslist has filed suit against eBay in San Francisco County Superior Court, alleging trademark infringement, breach of fiduciary duty, anti-competitve trade practices and deceptive advertising. Why California? Because the state has some of the strictest antitrust and competition trade laws in the country. Craigslist is asking the court to award damages and force eBay to divest from the online classifieds site. Also alleged? That eBay was a big meanie. The best parts:

When eBay's then-CEO Meg Whitman was wooing Craigslist founder Craig Newmark and CEO Jim Buckmaster, she was so nice! She even promised that they'd get lots of playdates on the board with dreamy eBay founder Pierre Omidyar, and Newmark and Buckmaster believed her when she said Omidyar held the same Sunday-school values they did:

Mr. Newmark and Mr. Buckmaster were impressed by Ms. Whitman's presentation; most notably the importance to eBay of its community and eBay's dedication to Pierre Omidyar's Community Values — particularly the values that "We believe that people are basically good;" "We believe than an honest, opn environment can bring out the best in people;" and "We encourage you to treat others the way you want to be treated." These were very similar to craigslist's own principles and, in reliance on eBay's expressed commitment to these principles, along with Ms. Whitman's representations, craigslist agreed to resume discussions.
Newmark even put up a blog post about how much fun it was going to be to work with eBay, but eBay didn't link back to his blog — I know, how mean is that!
At the time, eBay did not disagree with Craig's impression, but instead enthusiastically embraced it. For example, when Mr. Price [Ed. Note: Garrett Price, VP of new ventures] of eBay (who witnessed virtually all of the negotiations involving the transaction) was provided a late draft of Craig's blog entry, his response was "[I] Love it." However, eBay did not post a link to Craig's blog entry on its own website once the transaction had closed, as eBay had promised it would.
And that was only the start of eBay's bullying behavior. Included in the complaint is a screenshot of text ads on Google that Craigslist offered as evidence of eBay's trademark infringement, false advertising and anti-competitive practices.
craigslist_ebay_kijiji.jpg
Of course, none of this will be settled any time soon — a case management conference isn't scheduled until October 10. And based on how nasty this is getting, I doubt a settlement — at least one not involving lollipops — will be reached anytime soon.(Photo by AP/Jeff Chiu)
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Tue, 13 May 2008 14:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=390100&view=rss&microfeed=true
<![CDATA[ Facebook making sure there's nowhere on the Web to hide ]]> Facebook's formal announcement of Facebook Connect is at once a transparently timed response to MySpace's announcement of partnerships with eBay and Twitter yesterday and the culmination of things the social network has been working on for ages. Facebook Connect, at its simplest, lets websites like Digg and Twitter integrate their users' activity into Facebook users' News Feeds. Those two companies, as well as Yahoo's Flickr and Google's Picasa, have been using Facebook Connect well before it was unveiled under that name. It cements Facebook's role as a central place to keep up with one's friends. Yet I'm not sure how I feel about it.

Facebook evangelist Dave Morin touts the ability to take one's real identity from Facebook to other websites. And indeed, that's one reason why I mocked MySpace's move; its users' pseudonymous logins have no particular value as sources of identity.

But do I really want to interconnect all my online identities? That's the premise of the "data portability" movement — that we really want nothing more than to take our friends with us from one website to another. And yet I'm content to segregate, say, the work acquaintances I have on LinkedIn from the more personal relationships I track on Facebook. Would Valleywag's commenters want to have their real names attached to their accounts? Some are happy to, while for others, that's a deal-breaker — and the site would be the lesser if it lost them.

Mark Zuckerberg's original, brilliant insight — to connect Facebook's identities to real names, schools, and workplaces — is its advantage over rival social networks like Bebo and MySpace. But I'm not sure I want a Web with non anonymity. Morin and others will hasten to note Facebook's privacy options — but surely they realize that when others give up their anonymity, there will be peer pressure for most to do so.

Real identity has value, say, when conducting commerce, which is why it's laughable that eBay partnered with MySpace and not Facebook — just another sign of that company's clueless technological leadership. But anonymity has its benefits. Facebook Connect threatens the anonymous Web. For that reason, I can't wish Facebook Connect anything more than partial success.

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Fri, 09 May 2008 13:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=389131&view=rss&microfeed=true
<![CDATA[ B is for Botha, who sold YouTube big ]]> ROELOF_BOTHA.jpgFew people outside Silicon Valley have heard of Roelof Botha. But the former CFO of PayPal is famous here. His two claims to fame: negotiating that company's $1.5 billion sale to eBay, and later, as a partner at Sequoia Capital, investing in YouTube and quickly flipping the startup to Google for $1.65 billion. Is it a coincidence that that figure is 10 percent higher than his PayPal score? Few insiders think so. Botha gets four pages in Sarah Lacy's Once You're Lucky, Twice You're Good — more than Google cofounder Sergey Brin. Other figures who appear on the second page of her Web 2.0 book's index: John Battelle, Ning CEO Gina Bianchini, Facebook board member Jim Breyer, blog blowhard Jason Calacanis, and YouTube cofounder Steve Chen, whom Botha made quite wealthy.

Web 2.0, A-C

Previously:

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Thu, 08 May 2008 15:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=388567&view=rss&microfeed=true
<![CDATA[ MySpace to eBay, Twitter, and Yahoo: Thanks for the add! ]]> MySpaceWho are these people? That's the problem I've long had with sites like Twitter and eBay, which offer anonymous user names and little else to go by. And that's been the charm of Facebook, which aims to tie online identities with real ones by asking for work and school information, which is harder to fudge than a screen name. Had eBay and Twitter announce a partnership to share data with Facebook, I'd be impressed. Instead, they, as well as Yahoo, have partnered with MySpace instead to share profile data. Buffoonish technopundits are hailing this as an "advance in data portability." But what does it really mean? Now, in addition to a login like "awesomeguy1980," I'll get to see drunken party snapshots of someone before I reject their Twitter follower request.

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Thu, 08 May 2008 13:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=388690&view=rss&microfeed=true
<![CDATA[ AT&T plots Skype rival ]]> AT&T and as many as 15 other big phone companies are planning to launch a rival to Skype in 2009. Why don't they just buy it from eBay? That seems easier. [GigaOm]

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Thu, 08 May 2008 08:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=388456&view=rss&microfeed=true
<![CDATA[ Responding to eBay, Craigslist CEO digs hole deeper ]]> jim.caricature.jpgJim Buckmaster has just set himself up for a messy court fight. Responding to eBay's lawsuit against Craigslist and its board — the board being Buckmaster and founder Craig Newmark — he has claimed that he and Newmark issued additional shares in the company to themselves "for the sake of protecting the long term well-being of the Craigslist community." Let's leave aside the question of how the community benefits from Buckmaster and Newmark increasing their ownership. Craigslist is registered as a for-profit company; as such, its only legal responsibility is to its shareholders, not its users.

Buckmaster may win points in the court of public opinion. Ordinary Craigslist users may well believe his spin, that eBay is the bad guy in this fight for seeking to protect its rights to a stake in the company it bought fair and square (and at a substantial profit to Buckmaster and Newmark).

But the complaint eBay filed makes clear what happened. Newmark and Buckmaster, upset that eBay had launched a competitive classifieds site, Kijiji, invoked a provision that cancelled a right of first refusal they held over eBay's shares — a right that forced eBay to offer its shares first to Craigslist, should it wish to sell. They landed in trouble with eBay by trying to force it to sign a new right-of-first-refusal agreement.

Newmark and Buckmaster, in short, are idiots. In a snit over Kijiji, they cancelled a valuable power they held over eBay. They are now engaging in what appear to be dirty boardroom tricks to reinstate that power, using means eBay finds questionable. It is understandable that they dislike eBay's competition. But had they just kept quiet about it, Newmark and Buckmaster could have kept eBay at bay indefinitely, and kept raking in the lion's share of Craigslist's profits. The trouble they are in now is entirely of their own making.

(Ilustration by Ismael Rodan/WSJ via Craigslist)

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Thu, 01 May 2008 12:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=386262&view=rss&microfeed=true
<![CDATA[ Looking for a neo-Nazi's armored car? Buy it now on eBay ]]> Far-right French politician Jean-Marie Le Pen once called the Holocaust "just a detail" — worth maybe 10 to 15 lines in a 1,000-page book about World War II. The comments cost him a $284,033 fine. Now Le Pen is out of cash. To make some, he's auctioning his armored 1992 Peugot 605 on eBay. The latest bid: 10 million euros. The Peugot has a full leather interior and a CD player, but it's probably not worth that much. Still, if that sounds like a bargain for your very own piece of revisionist history, you've got until May 10 before eBay's auction closes.

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Thu, 01 May 2008 08:59:59 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=386079&view=rss&microfeed=true
<![CDATA[ Why Craig Newmark had better not piss off Jim Buckmaster ]]> Craig and Jim see eye to eye, for noweBay's lawsuit against Craigslist, alleging that founder Craig Newmark and CEO Jim Buckmaster conspired to squeeze eBay out of the company, is fascinating for many reasons. It reveals Buckmaster and Newmark's naked greed: They issued shares of the company to themselves to increase their stakes and decrease eBay's.But it also shows how tight the two have been with Craigslist's workers. eBay owns, or owned 28.4 percent of the company, a stake acquired from early Craigslist employee Philip Knowlton. Knowlton sold his shares in part because Buckmaster and Newmark were trying to squeeze him out, too. (Are you beginning to see a pattern?) The two, acting as Craigslist's board of directors, issued themselves one new share for every five they already owned, a move which pushed eBay's ownership stake down to 24.85 percent — a level which, among other things, eliminated eBay's ability to elect a director for the company. Do the math, and it becomes clear that Craigslist's other shareholders — presumably its employees — own about 3.3 percent of the company. That's a miserably small portion of equity to give employees of a tech startup; normally, about 20 percent of a company's equity is reserved for employees.

But Newmark and Buckmaster have always operated Craigslist more as their private money machine than a real company. That they issued shares to themselves without discussing the matter with eBay, a major shareholder, is merely typical for them.

Here's one more thing that's interesting. A source familiar with Craigslist's stock ownership told me that, of the shares left over after eBay's stake, Newmark owned roughly 60 percent of the remaining shares, and Buckmaster 40 percent. That means Newmark's owns 41 percent of Craigslist, and Buckmaster 27 percent. Here's a disturbing thought: If Buckmaster were ever to switch his loyalties, he and eBay combined own enough of the company to outvote Newmark.

The two appear utterly sympatico, so a Buckmaster defection seems unlikely. But Buckmaster has taken the lead in Craigslist's dealings with eBay. The auction giant, so far, has been the target of Buckmaster's Machiavellian scheming. But he is the swing vote. If Buckmaster turned against Newmark, Craigslist would no longer be Craig's.

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Wed, 30 Apr 2008 22:52:17 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=385983&view=rss&microfeed=true
<![CDATA[ Details of eBay's complaint against Craigslist revealed ]]> craigslist_vs_ebay.jpgThe text of eBay's complaint filed in a Delaware court [PDF] has made its way online, and in it, eBay "seeks equitable and legal relief" from Craigslist CEO Jim Buckmaster and founder Craig Newmark for:
[B]reaching their fiduciary duties of care, loyalty, and good faith by implementing certain self-dealing transactions challenged herein which were designed specifically to benefit themselves to the detriment of eBay.
Allegedly Buckmaster and Newmark attempted to issue themselves new shares in order to keep more of the profits to themselves, instead of sharing the 28.4 percent eBay can demand for their stake in the company, as Valleywag predicted. After the jump, the blow-by-blow account as detailed by the Wall Street Journal.


  • In 2005, Buckmaster complained that eBay's unfortunately-named classified service Kijiji competed directly with Craigslist, telling then CEO Meg Whitman "we are no longer comfortable having eBay as a shareholder."
  • Whitman responded that eBay loved Craigslist, and that "we would welcome the opportunity to acquire the remainder" of the company.
  • In October of 2007, Buckmaster and Newmark met with lawyer Edward Wes, and issued themselves "reorganization shares" which diluted eBay's stake under the 25 percent threshold that gave eBay special rights in the election of board members.
  • They further tried to poison the share well through right of first refusal clauses that eBay alleges would "make Newmark, Buckmaster, or the Company they control the only possible acquirers of eBay's shares."
  • Newmark and Buckmaster didn't bother to tell eBay about these moves, as well as changes to the corporate charter, until January 3rd of 2008. Now eBay wants the moves overturned in the courts.

As for Craigslist's response, Buckmaster writes on the official blog that "every measure we have taken has been for the sake of protecting the long term well-being of the craigslist community." By "community" we assume he means "our pecuniary self-interest."

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Wed, 30 Apr 2008 18:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=385945&view=rss&microfeed=true
<![CDATA[ Meg Whitman cleans house, but not at eBay ]]> Meg Whitman, optimisticMeg Whitman isn't losing any sleep over eBay's role in prepping Virginia Tech gunman Cho Seung-Hui for his rampage that left 33 dead. Asked what was her worst moment at eBay, Meg confides to confides to Portfolio: "The site outage in 1999," adding that she had to sleep on a cot "for multiple nights." Whitman goes on to give eBay kudos for being "incredibly vigilant around trust and safety and keeping the .01% [of customers who aren't 'basically good'] in line," a boast made all the more ridiculous by the company's recent defense of its sale of combustion-enhancing fertilizer to troubled teen Ryan Schallenberger. (The gist of eBay's defense: Ammonium nitrate isn't just used to blow up high schools and federal buildings.) Seeking Alpha has a complete transcript of the interview, in which you'll find these nuggets Portfolio's editors skipped:

  • Jeffrey Dahmer drove Whitman out of the "murderabilia' business: " I had gotten emails from customers not only about Dahmer's refrigerator but autopsy photos - the whole category of items around murders — so-called 'murderabilia.' And we heard from victim's families. The team talked about it and decided we don't want to go there."
  • Bored eBay users emailed Whitman because they were lonely: " I can get anywhere from 50 to thousands of emails a day. And because we are the locus of their economic life and also in some ways their social life, there is lots of commentary on almost anything that we do."
  • Whitman may have camped out with the technology team during the 1999 outage, but she all but admits she did so as a media stunt: "There was nothing I could do other than be a cheerleader and a coach to the technology team.... We had CNN parked outside the building wanting an update on the status every 60 minutes.... Every hour I had to go out, looking more tired each time.So it was in some ways just leadership by being there."
  • Whitman is now spending her time cleaning out her house. She started with the garage.

(Photograph by Art Streiber)

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Thu, 24 Apr 2008 11:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=383687&view=rss&microfeed=true
<![CDATA[ After Craigslist CEO Jim Buckmaster flexes muscles at eBay, fan offers to rub away the soreness ]]> Jim Buckmaster toplessCraigslist CEO Jim Buckmaster fired back at eBay on the official Craigslist blog last night, asserting that the auction giant, the owner of a large stake in Craigslist, didn't bother to contact anyone at the company before filing suit. eBay's action, wrote Buckmaster, "hints at ulterior motives." Dozens of commenters left notes in support of the online classifieds site. My favorite is from one Genevieve McGill:
Dear Craig's List, I LOVE U VERY MUCH!!! PRETTY-PLEASE let me know if I can do ANYTHING to support you. I am a Powerful,Licensed Massage therapist in FL who will use ALL of My intellectual BICEPS & anything I've got to be your dutiful minion.
And I bet she's only one of many fans who'd be happy to help release the hunky Buckmaster's eBay-taunting tension.

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Wed, 23 Apr 2008 15:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=383318&view=rss&microfeed=true
<![CDATA[ eBay sues Craig Newmark as Craigslist tries to squeeze it out ]]> Jim Buckmaster and Craig NewmarkExpect a rash of headlines accusing auction giant eBay of bullying saintly Craig Newmark. eBay has sued Newmark, his business partner Jim Buckmaster, and Craigslist. The charge? Craigslist has allegedly diluted eBay's 28.4 percent stake in the company, which the auction giant acquired from a former Craigslist employee. The part of the story Newmark and Buckmaster don't want anyone to hear: The pair made about $16 million in the process of letting eBay buy the stake in their company. The deal included a shareholder-rights agreement which ought to prevent Craigslist from diluting eBay's stake in the company, people familiar with the deal have told Valleywag. By squeezing out eBay, Newmark and Buckmaster appear to be having their cake and eating it too. Relations between the companies had already deteriorated: eBay had a seat on the Craigslist board, at one point occupied by founder Pierre Omidyar, until last year.

Why, precisely, is Craigslist trying to dilute eBay's stake? Silicon Alley Insider's Peter Kafka speculates that Craigslist is looking for an outside investor. Nonsense; as Kafka himself points out, Craigslist doesn't need the money. Far more likely: Newmark and Buckmaster are angling to issue more shares to themselves so they don't have to share as much of the company's profits with eBay.

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Tue, 22 Apr 2008 13:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=382765&view=rss&microfeed=true
<![CDATA[ Your loss is eBay's gain ]]> ebay_john_donahoe.jpgIn today's quarterly earnings call, when asked how eBay's business would fare in the oncoming recession, CEO John Donahoe remarked that the company is "a place where you can turn assets into cash in seven to fourteen days." Good times are here again! (Photo AP/Douglas C. Pizac)

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Wed, 16 Apr 2008 18:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=380689&view=rss&microfeed=true
<![CDATA[ Everything but auctions boosts eBay's bottom line ]]> Recently anointed eBay CEO John Donahoe thumped his chest over the auction giant's first-quarter earnings. He praised a "diverse portfolio of businesses" as revenues jumped 24 percent to $2.19 billion and earnings rose 22 percent to $459.7 million. The problem: Younger businesses like Skype and PayPal aren't as profitable as eBay's core e-commerce business, which is why profit margins dropped. [WSJ]

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Wed, 16 Apr 2008 14:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=380624&view=rss&microfeed=true
<![CDATA[ Australians question eBay's PayPal-only policy ]]> PayPalYears ago, PayPal was an independent company which fought constantly with eBay to be allowed on the site as a way to settle accounts after an auction was won. Now, years after eBay bought PayPal, the payments service is elbowing out all manner of competition. In Australia, eBay is limiting purchases to either PayPal or cash on delivery — no checks or money orders allowed, let alone rival electronic payment methods. In the U.S., eBay was sued last year for tying PayPal too closely to its online marketplace. How soon they forget: PayPal is aiming to quash an economic freedom its founders, including noted libertarian Peter Thiel, fought for.

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Tue, 15 Apr 2008 20:30:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=380235&view=rss&microfeed=true
<![CDATA[ Startup employee retirement plan: sell toast on eBay ]]> texas_toast_ebay.jpgA friend of an animator laid off from a recently imploded East Bay videogames startup writes to pimp the newly unemployed buddy's latest venture: selling toast on eBay. But not just any toast — it's toast that will be lovingly sculpted into the shape of each of America's 50 great states. First up? Texas. You laugh now, but you won't think it's such a terrible idea when the recession has you out on the street and your options underwater.

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Thu, 10 Apr 2008 18:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=378510&view=rss&microfeed=true
<![CDATA[ Man plans to sell his entire life on eBay ]]> IanUsher.jpgAustralian resident Ian Usher plans to sell his entire life on eBay, including his house, car, motorbike, job, and friends. Opening bid on eBay: $1. But buyer beware. Usher hates the goods so much he's prepared to leave them all behind with only his clothes on his back, he told the Sydney Morning Herald. The auction starts June 22.

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Wed, 02 Apr 2008 14:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=375188&view=rss&microfeed=true
<![CDATA[ Ada Lovelace portrait from 1820 found on eBay ]]> Ada Lovelace Original Portrait from 1820U.S. Army Master Sergeant Robert McLaughlin's obsession with Augusta Ada, Countess of Lovelace paid off when he found an original watercolor of the young noble, daughter of the poet Lord Byron, for sale on eBay. Widely credited with having created the first computer program, a system of calculating Bernoulli numbers for Charles Babbage's steam-powered Analytical Engine, "The Enchantress of Number" is a dashingly romantic figure. She's made numerous appearances in novels, including steampunk ur-text The Difference Engine by William Gibson and Bruce Sterling.

Depicted in the portrait as a charming toddler, she grew into quite the Lady before being bled to death by her doctors at age 36. The amount and nature of her contribution to computing is controversial, with rumors attributing her with everything from substance abuse and gambling to manic depression and delusions of grandeur. Which tells me not much has changed in the developer community over the past two centuries.

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Tue, 25 Mar 2008 12:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=371837&view=rss&microfeed=true
<![CDATA[ eBay, PayPal layoffs confirmed by CNN ]]> Oh, look, Valleywag's tipsters came through — 125 laid off at eBay worldwide. [CNNMoney]

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Thu, 20 Mar 2008 20:30:06 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=370501&view=rss&microfeed=true
<![CDATA[ Goldman Sachs is now 10 percent less impressed with Internet ]]> GSPriceTargetsMarch.jpgCiting a more challenging consumer environment, greater customer-acquisition costs and investor reluctance to pay above-market prices for shares, Goldman Sachs today cut price targets for Internet stocks including Google, eBay, and Amazon by 10 percent. For more reasons why Wall Street is suddenly less impressed with your tech stock portfolio, see Goldman's entire report, embedded here:

Read this doc on Scribd: Goldman downgrades tech

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Thu, 20 Mar 2008 09:20:26 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=370219&view=rss&microfeed=true