<![CDATA[Valleywag: rumormonger]]> http://cache.gawker.com/assets/base/img/thumbs140x140/valleywag.com.png <![CDATA[Valleywag: rumormonger]]> http://valleywag.com/tag/rumormonger http://valleywag.com/tag/rumormonger <![CDATA[ Did Slide get rival RockYou's Facebook apps punished? ]]> Traffic to RockYou's popular Facebook widget Super Wall declined from 2.1 million to 600,000 daily users over the last few days, as Facebook blocked the widget from sending users notifications and messages, claiming RockYou had violated Facebook's privacy policies. RockYou CTO Jia Shen told Inside Facebook the allegations and their punitive response are "slightly debatable":

There are policies Facebook has issued, but there is always room for interpretation - and in light of current changes, the interpretation is a lot more stringent now in contrast to before.

Facebook's probably getting strict because its preparing for a relaunch of its design in July. Or — and this pure speculation — the third-party security firm Rock You's rival Slide hired to audit its own privacy might have gotten paid a little extra to take a close look at the competition and alert Facebook to any infractions. We wouldn't put it past hypercompetitive Slide founder Max Levchin and his crafty sidekick, Keith Rabois.

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Tue, 08 Jul 2008 14:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5022922&view=rss&microfeed=true
<![CDATA[ Twitter to buy Twitter search engine ]]> Twitter, an outage service provider, may buy Summize, a search engine which indexes Twitter updates. Or it may not. We're not sure, but we'll probably read about it on Twitter, if the site's up. [Josh Chandler's Blog]

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Mon, 07 Jul 2008 16:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5022748&view=rss&microfeed=true
<![CDATA[ Kevin Rose's latest romance splashed across the Web ]]> Kevin Rose has a new girlfriend, a slightly-more-than-slightly stalkerish tipster tells us. Who's the reported belle? Current TV's manager of online content, Melody McCloskey. The Digg founder and famed online Romeo disputes this, telling us: "I've known Melody for awhile, we're good friends." But we don't buy the "just friends" routine, not after seeing our tipster's evidence: A highly convincing series of Twitter messages, Vimeo videos and Flickr photos featuring the pair.

Melody and Kevin on Twitter

Rose wielded his power and influence, landing two tickets to a private Death Cab for Cutie show. Color McCloskey impressed.

First Rose bought her a drink. Then breakfast.

After reading these two messages, we're wondering if "ice cream" is a euphemism for something else these lovebirds might crave. Like an iPhone 3G?

Who can resist the old In-N-Out?

The clincher: what kind of girl Twitters about really fruity-sounding tea, unless she's dating Kevin Rose?

Wall-E + brunch = obviously dating.

Melody and Kevin on Vimeo

On her Tumblr, McCloskey introduces this video: "Such a good song. Also cute cameo at the end :)" Skip to 1:12 to see who she means. Here's a hint: It's Rose.
Melody and Kevin on Flickr

On Flickr, we find Melody and Kevin sharing a drink through two straws. Haven't we seen Rose pull this move before?

Yes, yes we have. Rose and New York dating columnist Julia Allison similarly shared a milkshake at the Future of Web Apps conference in Miami earlier this year. Rose ended that fling not long after it started. Apprised of Rose's latest, Allison told Valleywag: "He's missing out."

Missing out? Not judging by this final Flickr shot of the cute noncouple:

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Mon, 07 Jul 2008 14:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5022697&view=rss&microfeed=true
<![CDATA[ New Google skybridge will make New York look like it was supposed to ]]> In June, Google expanded its Chelsea offices in New York by leasing more space across the street. Since Google's precious employees — not even its acquired lot of DoubleClickers — should have to brave New York's muddy winters, rheumatic indigents, and aggressive newsmen, rumor has it Google plans to build a skybridge connecting the buildings. Leave it to the Valley's geeks to finally give New York's cityscape the future it was promised by images such as this one, a 1917 postcard titled "The City of Skyscrapers."

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Wed, 02 Jul 2008 08:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5021411&view=rss&microfeed=true
<![CDATA[ Engadget's top editor leaving for vague new startup ]]> Ryan Block Ryan Block, the perpetually-in-hyperdrive head of consumer electronics superblog Engadget, is quitting the site after two years to launch a new site with his predecessor, blog millionaire and RCRD LBL founder Peter Rojas. A TechCrunch report stops short of further facts, but correctly dismisses the notion that Block's plans can be reverse-engineered by looking up the 39 domain names he owns — do you really believe Mr Always-On didn't think of that angle?

Whatever Block does, he'll do it at full throttle. The guy pioneered live, realtime photo shoots from gadget industry events, uploaded while top mainstream media photgraphers puttered with their lens cases. Check out his first-onto-the-Internet photos of the iPhone's unveiling. Having worked both with and for him now and then at Engadget, I'm just glad I won't have to compete with Ryan Block anymore — as, I'm sure, are my colleagues at Gizmodo, the rival gadget blog owned by Valleywag publisher Gawker Media. Someone else is about to start losing a lot of sleep.(Photo by mroth )

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Tue, 01 Jul 2008 13:20:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5021199&view=rss&microfeed=true
<![CDATA[ FriendFinder Networks IPO delayed as developers mutiny ]]> What's going on over at FriendFinder Networks, née Penthouse Media Group? Apparently the effort to migrate into an online publishing and social networking powerhouse is being hampered by developers dissatisfied with working conditions and an inability to hire new staff — even though supervisor Anthony Previte threatened he could replace the disgruntled employees at a whim, according to a tipster. An internal email obtained by Valleywag features Previte scolding the mutineers for disappearing from work early and being insubordinate. This news might put off the investors necessary to bankroll the company taking itself public — assuming the rumor that the big money has already demurred, delaying the planned $250 million IPO, isn't true.

First, one anonymous tipster provides some background:

I heard that after friendfinder moved from palo alto, the executives managed to upset the whole operations team by seating them into a crappy fishbowl (semi-official name for the room). It is just a matter of time when the whole team leaves the company. Consdering their convoluted infrastructure, this will most likely hurt the operations and site availability a lot . They have been trying to hire new senior sys admins for months without success (see craigslist postings) and latest took months to ramp up at work. Mostly the issue was Tony Previtt's reluctance to hear the employee issues and comment about being able to replace the whole team in short notice.

That was followed shortly by a second source who sent us this email — which, eventually, the first forwarded as well, serving to corroborate their access to information. Sneakily, Previte only notified employees of the morning meeting the night before, and after business hours:

From: "Anthony L. Previte" <********@pmgi.com>
Date: Wed, 25 Jun 2008 21:24:23 -0400
Subject: Several Issues
To: **@friendfinderinc.com
CC: Natalie Cedeno <*******@friendfinderinc..com>,
Carmela Monti <******@pmgi.com>
Precedence: bulk
Thread-Topic: Several Issues

1) I noticed there were only two people in the operations center after 5:00 today. I also observed that several of you leave the building for long stretches of time, in some cases for three hours. I would like each of you to email Jourdan and me with your current working hours. Also, if you are going to leave the building for more than an hour during the day, please get either Jourdan or my permission in writing.

2) There is a mandatory meeting tomorrow at 10:30 AM PST tomorrow. I am going to have a discussion about workplace ethics and attitude. I have a zero tolerance for violation of company policy and insubordination. I want to make sure everyone is crystal clear about this.

3) I would like everyone to update the project board with what you are working on..

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Thu, 26 Jun 2008 17:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5020114&view=rss&microfeed=true
<![CDATA[ Will Flickr cofounders make a run for the border, or head for the Big Apple? ]]> Now that Caterina Fake has left Yahoo and Stewart Butterfield has tendered his abstract resignation letter, what will the widely beloved Flickr cofounders do? And where will they go? Brendon Wilson, who worked in the Valley himself before returning to his native Canada, pointed us to an effort by a group of geeks to convince Fake and Butterfield to come back to Vancouver, British Columbia, where Flickr was launched. The welcome wagon even turned out a video slideshow of Flickr photos to remind the couple just how beautiful the city can be. Look, a rainbow! And it may just be working — last night, Butterfield added himself to the Bring Stewart and Caterina Home! group on Facebook. Fake may have other plans, though.

She was recently spotted in New York's startup-laden Flatiron and Chelsea neighborhoods, making the rounds. New York VC Fred Wilsion is an unabashed fan, and the two have already invested alongside his Union Square Ventures in Etsy. Might the pair break hearts in both San Francisco and Vancouver by moving to Manhattan instead? As for New York, all I can say is been there, done that. Head back to Canada for Sonnet's sake, guys. American citizenship ain't what it used to be.

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Thu, 19 Jun 2008 14:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5018026&view=rss&microfeed=true
<![CDATA[ Report: Yahoo search scientist Qi Lu will leave next ]]> Now that Google is to run the most profitable parts of Yahoo search advertising, what's a Yahoo search scientist like Qi Lu to do? Leave the company. Sources tell BoomTown that Lu is also mapping his way out of Big Purple, following following the Flickr founders, Usama Fayyad and Jeff Weiner. It's a big blow. One former Yahoo employee who yawned over Fayyad's departure tells us: "Now Qi Lu, on the other hand. People would go to war for him."

We've heard Lu's been frustrated at Yahoo for some time now. Assigned to Project Apex, the advertising dashboard Yahoo wants investors to believe will save the company — Lu heavily recruited fellow Yahoo Eric Boyd to work on the effort. Didn't happen. Instead, in April, Boyd turned him down and joined ad startup Mochi Media. A blackjack star, Boyd has a knack for making good bets: Since then, the word has been that Apex is underfunded and undermanned — short on everything but flashy PowerPoint presentations.

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Thu, 19 Jun 2008 09:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5017906&view=rss&microfeed=true
<![CDATA[ Blake Commagere, RockYou ready to start biting over Vampires, Zombies, and Werewolves ]]> Blake CommagereWho owns the most annoying applications on Facebook? It seems incredible that anyone would want to take credit for Vampires, Zombies, and Werewolves, three of the most useless and yet most used applications on Facebook. And yet Blake Commagere, their developer, and RockYou, the company which markets those apps, and is happy to take credit for them when raising venture capital, are getting ready to deploy lawyers to settle the question over their ownership, we hear. Adonomics, the Facebook-app measurement firm, somewhat questionably estimates the three applications' value at $6.5 million — but attributes their ownership to Commagere.

Commagere, in the past, hasn't helped clarify matters. Last year, he told GigaOm that RockYou hosted his applications and provided some cross-promotion, then hastened to give the company more credit:

At this point I’ve partnered with them on the app and they are contributing far more resources than just infrastructure. It’s eased my pain of looking for more programmers and I’m now enjoying being able to focus more on the creative aspect of it.

He must now regret those comments, which won't help his case in breaking free from RockYou — if that's even his goal. Talk about your words coming back to bite you.

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Tue, 17 Jun 2008 15:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5017361&view=rss&microfeed=true
<![CDATA[ Wired relaunching HotWired as a social network? ]]> Chris Anderson, Wired's waggle-eared rock-star editor, has been dropping hints left and right about the relaunch of HotWired, a faded Web property Conde Nast picked up along with Webmonkey last month. The rumor we've heard: That Wired is relaunching the site as a news-focused social network like Digg. (Conde Nast already owns Digg competitor Reddit, whose engineers are likely involved in the project.) It's a sensible brand extension for Wired, but a far cry from HotWired's early ambitions, described in a 1994 email as "live, twitching, the real-time nervous system of the planet." Here's the HotWired FAQ, which reads like it was just unearthed from a time capsule:

HotWired FAQ

What Is HotWired?
HotWired is new thinking for a new medium. We call it a cyberstation, a suite of vertical content streams about the Digital Revolution and the Second Renaissance with an integrated community space. While HotWired is currently bound by technological limitations that restrict bandwidth, it represents the genetic blueprint that will evolve into the overarching media environment of the next century.

At the core of HotWired's editorial is point of view. We are not in the content business, we are in the context business. People today don't have the time or inclination to make sense of the data flood. HotWired is Wired's answer to the need for professionalism in a new medium that has been filled until now with something that resembles public access television programming.

HotWired is live, twitching, the real-time nervous system of the planet.

What Does HotWired Look Like?
HotWired is a stunning reinterpretation of the World Wide Web. Developed by Creative Director Barbara Kuhr of the award-winning design firm Plunkett + Kuhr, HotWired's look is clean and bright, filled with playful logos by Dutch designer Max Kisman and bursting with world-beat colors.

HotWired can be accessed on the Internet via the World Wide Web and a client application such as Mosaic or NetScape (though be warned, NCSA Mosaic for Windows has a bug which makes it unusable).

How Is HotWired Different?
HotWired doesn't look like any online service out there - it zigs where all the others zag. (HotWired's unofficial design watchword was "war on bevelled edges.") Its content and perspective are as innovative as those of its mothership, Wired magazine, while at the same time being utterly different. Its community space is technologically unrivalled - the first graphical conferencing system for the World Wide Web.

Isn't Advertising Anathema on the Net? The Net community does indeed react negatively to invasive advertising - the kind of spamming conducted recently by the Arizona lawyers Canter and Siegel, which elicited a massive rejection by the Net's immune system. The advertising on HotWired is the opposite of invasive.

Each advertiser is accessible only through a single discreet banner at the head of a content section. Most advertising is 90 percent persuasion and 10 percent information; advertising on HotWired reverses this ratio. And the privacy of members is guaranteed by HotWired's unqualified commitment to never divulge a member's personal information to advertisers.

Why HotWired, Why Now?
Because while Big Media and the telecom behemoths have been busy forming "strategic alliances" to build the "information superhighway" and sending out press releases about the tests they're launching any day now, thousands of companies and millions of people have quietly built a new interactive medium called the Internet.

This medium is not magazines with buttons, any more than television was radio with pictures. It's a new medium with a new aesthetic, a new commercial dynamic.

Many media companies shovel their leftovers into the online world and call it content. HotWired is not one of them.

Where Wired is a clear signpost to the next level, HotWired is operating from that next level. HotWired is a constantly evolving experiment in virtual community. It's Way New Journalism. It's Rational Geographic.

Today is like 1948; a new medium has reached critical mass. We're trying to help define the future of that medium before it ends up like television.

So if you're looking for the soul of our new medium in wild metamorphosis, our advice is simple. Get HotWired.

What Does HotWired Cost?
HotWired is free to members. HotWired's revenue model is similar to broadcast media - content supported by sponsors. HotWired's sponsors are some of the bluest chip advertisers in America, including IBM, AT&T, Volvo, Sprint, MCI, Zima (Coors), Internet Shopping Network (Home Shopping Network), Club Med, etc.

What Hotwired Is Not HotWired is not Wired magazine with another name (Wired works perfectly well in print, thank you). It's not a so-called online magazine (print content reduced to ASCII and shoveled into another medium, narrowband interactive). It's not video-on-demand (a pie-in-the-sky marketing concept created by out-of-touch old-media executives to justify their headlong rush into a new medium they don't understand, broadband interactive). It's not an online service like Prodigy or AOL (now rendered obsolete by the explosion of interest in the Internet and the development of the Web and graphical browsers).

And like Wired before it, HotWired is not a cold, marketing concept, but the heartfelt expression of the passion of its creators.

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Mon, 16 Jun 2008 18:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5017019&view=rss&microfeed=true
<![CDATA[ Microsoft and Yahoo's last negotiations leave Yahoo board members ready to quit ]]> Yahoo and Microsoft negotiators met for the last time on June 8 at Mineta San Jose International Airport. There, Microsoft executives told Yahoo's that it was definitively not interested in acquiring the entire company. But sources told News.com's Ina Fried, that in addition to a search outsourcing deal similar to Google's, Microsoft offered $35 per share for 16 percent of the company. Yahoo negotiators told Microsoft it could acquire the entire company or none of it. Microsoft rejected the offer. Ina Fried's Beyond Binary and Kara Swisher's BoomTown both report that one or more Yahoo board members are planning their departures, upset with the way negotiations turned out.

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Fri, 13 Jun 2008 10:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5016161&view=rss&microfeed=true
<![CDATA[ Is Yahoo's Jeremy Zawodny going to FriendFeed? ]]> Jeremy Zawodny After Yahoo database expert Jeremy Zawodny announced he was leaving the company, a Hacker News commenter speculated that he'd go work for Twitter. "A few months ago Twitter may have been interesting, mostly for the technical challenges," Zawodny responded. "But now I'd rather hack on FriendFeed." FriendFeed, the latest fixation of the Web set, has a redeeming quality for hardcore geeks: The mounds of useless yet constantly updated personal trivia it aggregates from Flickr, Twitter, and other narcissism-enabling Web services makes for one heck of a database to keep online.

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Thu, 12 Jun 2008 20:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5016096&view=rss&microfeed=true
<![CDATA[ Is Google about to swallow up Digg? ]]> Google's cupcake princess, Marissa Mayer, and Kevin Rose, the playboy of the Webhead world, would make an awfully cute couple. Not romantically — the two are dating other people at the moment. But we hear Mayer is pushing hard for an acquisition of Rose's Digg, for a price below $200 million. Kara Swisher hinted a few days ago that the social news site, on which users "digg" or "bury" their favorite news headlines, might be on Google's shopping list. Mayer's goal: to use what Digg has learned to fix Google News which, while popular, doesn't make Google any money. (Digg CEO Jay Adelson would not comment on the sale rumor, but did disclose that he was having a "delicious" In 'N' Out burger for lunch.)

What's interesting is the timing. A source familiar with the talks says Google and Digg reached an agreement last month; it's not clear whether the offer was verbal or a formal termsheet. So why the delay? One possibility: Digg may have been exploring whether it could hire a rock-star CEO and raise more money. Adelson has long been flying cross-country, twice a month, to San Francisco from his upstate New York home, and privately complains about the commute to friends. But so far, I've heard nothing about Digg raising a new venture-capital round, or Adelson making way for a higher-profile hire.

Of Digg's possible acquirers, Google is the company's most natural home — despite Digg having a multiyear advertising contract with Microsoft. Google desperately wants to get a handle on social networking; it has struggled to sell ads profitably on News Corp.'s MySpace. More importantly, Digg could help Google improve the relevancy of its search results, especially with the news articles Digg readers vote on and discuss so vociferously. That might be worth more to Google than any ads it might manage to sell on the site.

The deal may not happen. Insiders are already mystified by its lack of progress since word first started spreading last month. As Sarah Lacy revealed in Once You're Lucky, Twice You're Good, Digg has held a series of deal discussions that never came to fruition. That history makes it hard to take any new Digg-sale rumor seriously. But we hear these discussions are close enough to take seriously. Cupcakes, anyone?

Diggcake

(Photo of Rose by Brian Solis/Bub.blicio.us; cupcakes by a_cooper)

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Thu, 12 Jun 2008 17:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5016035&view=rss&microfeed=true
<![CDATA[ Usama Fayyad out as Yahoo's data-miner-in-chief ]]> It shouldn't take a rocket scientist to catch up with Google in online advertising. And yet, for years, that's who Yahoo's put on the job: Usama Fayyad, a veteran of the Jet Propulsion Laboratory. We hear Fayyad is on his way out as Yahoo's "chief data officer," the man tasked with extracting value from the massive amount of data generated by Yahoo's users. Fayyad has long talked about how Yahoo can, in theory, extract insights from this data. "In theory" being Yahoo's eternal problem, and, if the rumor of his exit is true, the likeliest reason why the company is dispensing with him.

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Wed, 11 Jun 2008 11:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5015505&view=rss&microfeed=true
<![CDATA[ VC firms offer Weiner a chance to bail on Yahoo ]]> Venture capital firms Accel Partners and Greylock Partners, both laden with ex-Yahoos, and with plenty of consumer Internet startups in their portfolio, have offered Yahoo's Jeff Weiner a chance to bail on the company. Kara Swisher cites VC sources, who say Weiner could very well turn his extended paternity leave into a departure from Yahoo altogether. Unusually, the firms are said to be offering Weiner a chance to split his time as an entrepreneur-in-residence at both firms.

Last we heard from him, he was explaining how Yahoo planned to turn its morass of personalized properties into a single user profile. You know, just like Friendster! Weiner also ranked high on ex-Yahoo Bradley Horowitz's goodbye thank-you list — a list, we noted, that's filled with ex-Yahoos. (Photo by Yodel Anecdota)

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Wed, 11 Jun 2008 09:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5015399&view=rss&microfeed=true
<![CDATA[ Twitter tries to steal Apple's spotlight ]]> How sly: Twitter's Biz Stone posted over the weekend that "there's going to be some very interesting breaking news happening on Twitter." By which Stone means that people are going to be using Twitter to report on Steve Jobs's keynote at Apple's WWDC event today. Jobs is expected to announce a new version of the iPhone, but only after boring the bejeezus out of everyone who's not a developer with a lot of inane news about software — not that that will stop Apple transcriptionists from Twittering Jobs's every exhalation.

Clever of Stone, in a post promising increased Apple-related Twitter usage won't bring the site down, to suggest that Twitter and Apple are up to something together. Especially after past hints of a Twitter-Apple collaboration had the companies' mutual fanboys so revved up.

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Mon, 09 Jun 2008 08:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5014594&view=rss&microfeed=true
<![CDATA[ Facebook employees lived in San Francisco while collecting Palo Alto rent subsidy ]]> Facebook employees who have lost a $600/mo. housing subsidy for living in Palo Alto may want to point the finger at their new adult supervision, COO Sheryl Sandberg, but a tipster tells us they only have themselves to blame:

A friend of mine who works at Facebook told me that they have recently revoked the $600/mo. subsidizing of rent in Palo Alto because too many employees were banding together in groups of 4 or 5, renting a "chill pad" in Palo Alto, and pocketing the rest. Some pocketed as much as $300/mo. My friend told me the bandits [were] actually living in SF.

"Bandits" indeed. The whole point of the Facebook housing subsidy was to foster community by keeping Facebook employees living near each other in Palo Alto, in walking distance of headquarters. Ganging together to rent small apartments in Palo Alto while living in San Francisco is fraud, plain and simple.

But should we be shocked it happened? Many Facebook employees, some of whom make as little as $34,500 per year, are cash poor, and even the better-paid employees can hardly afford a Palo Alto mortgage. Zuckerberg's resistance to selling out has kept the company independent, but it also means employees' shares are only worth something on paper. Keeping Facebook independent may validate Zuck in his quest for peace in the Middle East, but some of his overeducated, underpaid, Camus-reading troops would prefer that their Meursault just shoot the Arab.

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Tue, 03 Jun 2008 09:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5012642&view=rss&microfeed=true
<![CDATA[ Apple created temporary store on Warner Bros. lot ]]> A tipster reports that Apple admen at TBWA/Chiat/Day built a full-size replica of an Apple Store on the Warner Bros. lot, in total secrecy, over the Memorial Day weekend to film a commercial that will air for Steve Jobs's keynote June 9 at Apple's Worldwide Developers Conference. Why build a fake store when Apple has so many real ones it could film in for free? (Shown here, Apple's latest store design.) Shutting down a real store, as Apple did recently in Manhattan, likely draws too much attention. If true, this rumor goes to show the price Steve Jobs is willing to pay to stage a surprise. The tip:

Seen over Memorial Day weekend, Apple built a full scale store on a sound stage at the Warner Bros. lot in Los Angeles. On Memorial Day they proceeded to shoot a commercial that will be part of Steve's announcement on June 9, a la Steve's favorite team at TBWA/Chiat/Day. This was no small feat. This was a full scale and fully operable store, complete with laptops, iMacs, the kids pod, software and accessories on the shelf, functional genius bar. Everything you'd see at at the Apple store, was on the lot/soundstage (same one that The Perfect Storm was filmed on) in working order. The store took 2 days to build. Tear down was complete Monday evening (memorial day). Only a handful of people were allowed to stay for the shoot and no extras/actors were seen in the "store" when the shooting commenced.

(Photo by ifoApplestore.com)

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Mon, 02 Jun 2008 12:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5012369&view=rss&microfeed=true
<![CDATA[ Is Google helping Apple launch Me.com? ]]> Apple and Google are already quite cozy — but could they be getting even closer over Apple's rumored Me.com Web services? A source close to Google says the company is about to make a big announcement with Apple, likely in conjunction with Apple's Worldwide Developers Conference next week. It could be nothing more than integration of a new iPhone's GPS features with Google Maps. But our source thinks more is at stake.

Through its .Mac subscription service, Apple currently offers Mac-only versions of email, bookmarks, file storage, and photo sharing. Google offers all the same services for free, though it charges for extra storage. Apple might well hand its Web businesses over to Google, in exchange for a share of the revenue. Competing with Google, Yahoo, and Microsoft in online applications would seem like a fool's game.

Why it might not happen: Steve Jobs has long bragged about being the only company that "makes the whole widget," by which he meant hardware and software. Nowadays, the whole widget means hardware, software, and services. Apple has proved it can develop software for Windows with iTunes; ceding the Web to Google might be too much of a blow to the corporate ego.

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Mon, 02 Jun 2008 11:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5012282&view=rss&microfeed=true
<![CDATA[ Kevin Rose pumps his own Apple stock with $200 iPhone rumor ]]> Digg founder Kevin Rose is back with another iPhone rumor. This time, the shaggy entrepreneur declares that part of the expected June 9 announcement will be an entry-level model priced at $200. Which jibes with other rumors that Apple and AT&T were considering subsidizing the iPhone, as most other carriers do. Or Apple's just looking to dump unsold stock. Either way, expect the customers who have been waiting in lines for current models priced at $399 to be nonplussed. Apple fans never learn, do they?

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Mon, 02 Jun 2008 10:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5012301&view=rss&microfeed=true
<![CDATA[ Apple replacing .Mac Web services with Me.com ]]> Most of Apple's customers have never touched a Mac. By the numbers, Apple has reached far more people with the iPod and iPhone. Yet Steve Jobs's sole venture onto the Web, .Mac, is designed to work with Mac hardware. That could change, now that it's registered the domain Me.com. In 2005, Apple patented a service called "Mobile Me," and last week a programmer noticed it was already using that name in new iPhone software. When the new iPhone is announced — as soon as this week, according to rumors — we may see it linked up not with .Mac, a name meaningless to most iPhone buyers, but with Me.com instead.

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Mon, 02 Jun 2008 08:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5012273&view=rss&microfeed=true
<![CDATA[ Ad network Glam Media turns down $1.3 billion buyout ]]> A source close to Glam Media — the ad network that rounds up websites for women and then resells their ad inventory at higher prices to advertisers targeting the demographic — told VentureBeat the company has turned down a $1.3 billion acquisition offer. Glam turned down the offer because it expects a "bigger opportunity" down the road — perhaps an IPO. One of Glam's own partners tells us it'd be "crazy of them if they did." And likewise, we've never taken much stock in Glam's business model. (Disclosure: Our parent company, Gawker Media, owns Jezebel, which competes with some sites in Glam's network.)

Publishers rarely stick with ad networks when they reach a certain size, and Glam has a reputation for signing up new sites with expensive guarantees. (A Glam spokesperson claims it's not seeing sites leave after the guarantees expire.) Ultimately, though, Glam's sites have two fates: Either they never get large enough to matter, or they grow too big for Glam to justify its cut of sales. At that point, they'll likely leave or get bought outright by Glam — a considerable future liability for shareholders.

None of this means Glam won't sell. Glam CEO Samir Arora sold a majority stake in his startup NetObjects to IBM in 1997. Four years later, IBM sold the company off in parts for a pittance. Glam backer Tim Draper of Draper Fisher Jurvetson profitably sold similar lemons — Hotmail to Microsoft, and Skype to eBay. We doubt Glam's viability. We don't doubt Glam's backers ability to sell the company. To suckers.

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Thu, 29 May 2008 08:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=393930&view=rss&microfeed=true
<![CDATA[ Microsoft board nixes $550 million bid for Spot Runner ad agency ]]> spotrunner.pngHaving walked away from Yahoo, Microsoft is supposedly eager to buy a passel of online-advertising startups. Los Angeles-based Spot Runner is a natural target; it uses Microsoft technologies, has hired Microsoft executives, and was founded by Nick Grouf, who sold a startup to Microsoft a decade ago. Spot Runner's business, creating and placing ads on hard-to-buy, hard-to-sell cable-TV spots, is an area where Google is not at all entrenched. But we now hear a rumor that Microsoft's board has nixed a $550 million deal for Microsoft to buy Spot Runner. Spot Runner just raised $51 million in venture capital, which makes the price tag seem plausible, if hard for Microsoft to swallow. Why the deal fell apart at such a late stage, and in such an embarrassing way — it's rare for boards to oppose management on deals of this size — are unknown. Heard anything more? Spot us a tip.

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Wed, 28 May 2008 14:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=393826&view=rss&microfeed=true
<![CDATA[ Zuckerberg returns to California to find employees irked over axed $600 housing subsidy ]]> Mark Zuckerberg must be glad he's at the D6 conference in Carlsbad, where he has nothing to fear besides running into my boss. We've heard one of the reasons Zuckerberg left town in the first place was that he didn't want to be around when the company eased out CTO Adam D'Angelo, a high school friend of Zuckerberg's. Another the sensitive CEO skipped town? He may not have wanted to see the disappointment when his employees learned that the company would revoke a cherished $600 housing subsidy for those living near Facebook's downtown Palo Alto headquarters. Since reporting the news yesterday, more tipsters tell us the subsidy slash is real. According to one, new employees will get no housing subsidy and as soon as current employees sign new leases with their landlords or decide to move, they lose theirs too. "Something is going on at Facebook and it isn't good," observed commenter sggrf afer yesterday's news.

First they raise way more than any private Internet company —- ever! Then, they pre-announce via some strange conference call that they will have a flat to down revenue year, now they are cutting these rent subsidies.

Something is wrong with this picture. Does anyone recall these types of occurences as Google was making their climb? Nope, me neither.

My guess is that their expenses are running way ahead of plan and their revenues are way behind. Why? Because Beacon failed, which is probably why Owen [Van Natta] got fired, and they have no viable back-up plan. They also have a very high strike price so it's hard to raise traditional VC money at this point. Watch these guys closely —- their revenue and overall story doesn't match their growth/traffic numbers. Something is broken IMHO!
We should note that sggrf has several facts wrong; he persists in trotting out this notion that Facebook will have a "flat to down revenue year," which is not what Zuckerberg announced to employees earlier this year. (In fact, Zuckerberg said revenues will roughly double from 2007 to 2008.) But he's right in this much: Something has been going on at Facebook since COO Sheryl Sandberg joined. ]]>
Wed, 28 May 2008 10:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=393694&view=rss&microfeed=true
<![CDATA[ Paula Abdul to get her game on at D6 conference ]]> CARLSBAD, CA — The hot gossip this morning at the Wall Street Journal's D6 conference: American Idol judge Paula Abdul, seen here in the video for "Dance Like There's No Tomorrow," is in the building. My bet: something to do with Activision CEO Bobby Kotick's appearance, since his company's music game, Guitar Hero, was advertised heavily on the show's final week. Could a new American Idol videogame — one that's not utterly horrible, like the one released last year — be on deck? Update: A tipster inside the ballroom reports:

Lame lame lame Guitar Hero world tour demo ... Paula Abdul is judge
So much for that theory! ]]>
Wed, 28 May 2008 09:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=393687&view=rss&microfeed=true
<![CDATA[ Facebook employees to lose their $600 per month housing subsidy ]]> FBMILF.jpgGoogle may have its free food and massage parlors, but Facebook pays its employees a $600 per month housing subsidy as long as they live near the company's headquarters in Palo Alto. At least, for now it does. "Yeah, they're talking about getting rid of the subsidy," a disgruntled Facebook employee told a local gossip who passed word onto us. Our source blames new Facebook COO Sheryl Sandberg — the ex-Googler picture on the right, who when hired "came and kicked everybody in the ass and said this is going to be hard," according to Facebook HR chief Christopher Cox.

Rumor has it Sandberg was also the one who forced Facebook to drop out of a scheduled beer pong game against CollegeHumor. Poor Facebookers. On one hand, they've got a CEO in Zuckerberg who won't take Microsoft's $10 billion because he wants to keep the company independent until a magical IPO in 2011 or 2012. And on the other, there's Sandberg who's taking all fun out of being an independent company. Surely, you people need to vent. We're here to listen.

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Tue, 27 May 2008 12:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=393434&view=rss&microfeed=true
<![CDATA[ Revolution Health lays off an entire business unit ]]> Revolution Health, the company founded by former AOL Time Warner chairman Steve Case, has laid off its entire business-to-business unit, according to a tipster. In the rest of Revolution Health, there's little sign of its original mission — helping consumers lower healthcare costs. Instead, it's operating a series of vaguely health-related websites, and selling banner ads against them, a push for traffic for traffic's sake which began last year. But most recently, another source tells us, Revolution's pageview games have started to look desperate:

According to my sources, Steve Case's Revolution Health has signed a deal to act as the exclusive ad rep for DailyStrength.org and its 40 MM+ pageviews with minimum quarterly revenue guarantees. The deal reportedly includes traffic assignation in comScore.

However, word is that Revolution may not issue a press release on the deal because they may be afraid ComScore is looking at whether Revolution really fits within the Health category. The representation of advertising and traffic for Daily Strength, a social networking platform that could be best described as a "feel good Facebook-lite," isn't likely to help their case.

A ComScore rep says that DailyStrength is still categorized in "Health," so what Revolution is doing is legitimate, barely. But advertisers are skeptical of the value of social-network traffic. While the deal could boost Revolution's traffic figures, the guarantees will likely prove costly, which could lead to another round of pink slips. And it's never a good sign for a Web startup when developers bail. I really hope the rest of the workforce has put money tax-free into healthcare savings accounts, and read up on Cobra law. That is, if Revolution Health even offers those programs to employees. It only recently started offering group healthcare to employees, we hear. (Photo by Christopher Carfi) ]]>
Thu, 22 May 2008 10:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=392741&view=rss&microfeed=true
<![CDATA[ News Corp. wants to buy videogame website Newgrounds ]]> Slide executive Keith Rabois isn't the only one who sees serious cash in silly games. To get more in on the action, News Corp. property IGN is trying to acquire Tom Fulp's Newgrounds, a Flash videogame portal that specializes in violent games like The Last Stand 2, featured in the video embedded above. A sale could be lucrative for Fulp.

A source tells us that the site's founder, who's never taken funding and brags on the Newgrounds "about page" that "we're still 100 percent independent and love what we do," is said to be happy collecting "millions" in revenue and is uninterested in a sale. According to Quantcast, Newgrounds sees about 1.5 million monthly uniques.

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Tue, 20 May 2008 10:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=392054&view=rss&microfeed=true
<![CDATA[ Facebook-Microsoft? No deal ]]> Just say noA Facebook sale to Microsoft is practically taken for granted by whipped-up bloggers, wishful thinkers, and tech pundits. By everyone, in short, except for those who would actually decide such matters. Kara Swisher says a sale is unlikely. My sources are more definite: Microsoft has asked if Facebook would sell, and gotten an unequivocal "no." Founder Mark Zuckerberg controls three out of five potential Facebook board seats, and he doesn't want to sell.

And there's no sign of ongoing talks after Microsoft's bankers were rebuffed. Microsoft CEO Steve Ballmer was recently spotted walking down University Avenue in Palo Alto, mere blocks away from Facebook headquarters. "He never called to say he'd be in the neighborhood," a Facebook insider told us. If he were actively courting Facebook, don't you think he would have at least dropped by for a round of Xbox?

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Mon, 19 May 2008 14:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=391842&view=rss&microfeed=true
<![CDATA[ CBS CEO Les Moonves to visit CNET next Tuesday ]]> After buying CNET for $1.8 billion, CBS CEO Les Moonves is getting around to inspecting his new property next Tuesday, we hear. Moonves is visiting CNET's San Francisco headquarters to address the troops. So far, beaten-down CNETters, weary of the fight with hedge fund Jana Partners, seem mostly supine in CBS's embrace. Show some spirit, guys! We suggest testing your new CBS overlords' sense of humor by wearing some 2006-vintage "I Hate Les Moonves" T-shirts, from the days of his tussles with Howard Stern. Ironically retro, of course.

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Fri, 16 May 2008 15:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=391357&view=rss&microfeed=true
<![CDATA[ Helio-Virgin deal might involve multibillion-dollar Sprint investment ]]> Helio.jpgHelio backer SK Telecom, the Korean wireless giant, is in negotiations to purchase Virgin Mobile USA. The plan: combine the two properties and then invest enough in Sprint Nextel to get all three companies working together. Sprint already runs the network over which Helio and Virgin run their cell-phone services. Complicating the deal: T-Mobile's rumored interest in buying Sprint. "Part of something is better than all of nothing," a source close to Helio tells us.

Helio wants the deal because it will put them into the prepaid market and Virgin wants the deal because it will put them in the subscription market. They also feel that a combined company will give them more clout with Sprint — or T-Mobile if Sprint get purchased. If Sprint is not purchased, look for the combined company to inject a few billion into Sprint and also giving them a 20-30 percent stake in the new firm.
We've not seen a deal so complicated since Park Place was on the table for all the railroads and free rent on Boardwalk for 10 turns, but given Sprint's vulnerable position these days, and the fact that Sprint uses the same technology, CDMA, as SK Telecom — a rarity — there's logic to the deal. ]]>
Fri, 09 May 2008 11:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=389049&view=rss&microfeed=true
<![CDATA[ Helio, Virgin Mobile in merger talks ]]> vmusahelio.gifSK Telecom, the backer of money-losing wireless startup Helio, could buy out Virgin Mobile USA and combine it with Helio. [MocoNews.net]

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Thu, 08 May 2008 14:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=388720&view=rss&microfeed=true
<![CDATA[ New iPhone will hit stores June 12, feature improved speakers and camera ]]> AppleLogo.jpgA source tells us that "someone who designed part of the iPhone UI, who generally has access to new hardware locked down in a room to play with, " told him that the new iPhone will run on faster 3G networks, as expected; feature new, improved speakers on the bottom; and an improved camera. It will hit stores June 12. Our source warns us: "The person has mixed details before." Our guy puts his friend's trustworthiness at an 8 out of 10.

To us, the details seem obvious. New Macs always have better speakers and better cameras, don't they? But perhaps the rumor's very obviousness lends it more credibility. You have exactly 37 days to discuss, oooh and ahhh about it. (Photo by Andrew*)

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Tue, 06 May 2008 12:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=387728&view=rss&microfeed=true
<![CDATA[ Report: LinkedIn seeks funding to set value at $1 billion ]]> linkedin.jpgLinkedIn has hired investment bank Allen & Co. to help it raise a round of funding that would set the company's value at $1 billion. Last fall, LinkedIn CEO Dan Nye said the company would sell itself outright only for a "a lot more" than $1 billion. In January, he told a reporter "an IPO is by far and away the most likely outcome." But that was January. While the public markets are rough, private equity remains flush, making it a safer bet for raising money. We hear LinkedIn takes a tidy profit, selling advertisers on its 41-year-old, six-figure-making average user and earning $45 CPMs on ads in the process.

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Tue, 06 May 2008 08:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=387567&view=rss&microfeed=true
<![CDATA[ Angry board members, shareholders forced Yang to backpedal ]]> WorriedYang.jpgSuddenly, Yahoo CEO Jerry Yang is telling reporters he's "willing to listen" to Microsoft offers below $37 a share. Why the change of heart? Because Yang had a bad day Monday. Major Yahoo shareholders slammed him in the press. Employees were angry and the Yahoo board took heat, too. "I'm extremely disappointed in Jerry Yang," Capital Research Global Investors portfolio manager Gordon Crawford told the Wall Street Journal. "I think he overplayed a weak hand." Crawford also directed his ire at Yahoo's board of directors: "The independent directors were not responsive to the needs of independent shareholders." A very tenuous source tells us at least one Yahoo board member got the message and was heard venting over the phone about Yang's performance, saying, "I'm done with this ego trip shit, he's out."

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Tue, 06 May 2008 05:34:37 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=387492&view=rss&microfeed=true
<![CDATA[ LinkedIn board raising more cash ]]> At careerist social network LinkedIn, a marathon board meeting has sparked speculation about a new financing round. LinkedIn, often mentioned as an IPO candidate, has raised $27.5 million to date. [VentureBeat]

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Mon, 05 May 2008 15:10:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=387388&view=rss&microfeed=true
<![CDATA[ Will the last Akimbo employee please turn out the lights ]]> akimbo_logo.jpgAkimbo has laid off nearly everyone except for its executives, according to a tip we just received. An early entrant in the TV-over-Internet field, Akimbo saw its original CEO Joshua Goldman leave for the luxury of investing in other video startups. The company dumped its set-top box business to sell Internet video-on-demand software to other hardware manufacturers. So far $47 million has been poured into the company by the likes of Cisco Systems, Draper Fisher Jurvetson and Kleiner Perkins' William R. Hearst III, who serves on Akimbo's board. Any Akimbo employees out there want to confirm or contradict our tipster's impression that CEO Tom Frank and COO Neil Goldberg are mismanaging the aging startup?

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Thu, 01 May 2008 16:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=386384&view=rss&microfeed=true
<![CDATA[ Viacom offers $10 million to buy music blog aggregator Hype Machine? ]]> AnthonyVolodkin.jpgA tipster tells us Hype Machine founder Anthony Volodkin has a "$10 million Viacom offer floating around." Hype Machine, a website which aggregates music uploaded to blogs, has grown 125 percent in the last year, with 127,000 monthly visitors, according to Compete.com. Another source familiar with Volodkin's plans for Hype Machine can't confirm Viacom's offer, but said an acquisition would be the next logical step. Volodkin has been very careful to avoid taking venture capital, "despite VCs going hard after him," this second source tells us. Update: A third source says Hype Machine has been sold, but not for $10 million and not to Viacom. Whoever the buyer is, the sale rumor, if true, captures a frustrating state of affairs for technology's financiers.

Fred Wilson of Union Square Ventures once described Hype Machine as "the best thing to happen to music since the Rolling Stones!" But for a founder like Volodkin, taking nearly all of a $10 million offer must surely seem more attractive than rolling the dice by taking venture capital and trying to get a smaller slice of a larger jackpot. Some VCs have resorted to bribing founders — buying shares outright, rather than just increasing their paper wealth — to dissuade them from selling, as Automattic's investors did with Matt Mullenweg. VCs like to talk about making entrepreneurs wealthy. But they like to arrange things so they hitch a ride to the payday.

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Tue, 29 Apr 2008 15:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=385323&view=rss&microfeed=true
<![CDATA[ Anne Wojcicki and Sergey Brin begin baby-making beta test, results expected in 9 months ]]> Google cofounder Sergey Brin and his wife of nearly a year, Anne Wojcicki are expecting their first child, the New York Post screams. We're confident Wojcicki's easy access to DNA materials at her biotech firm 23andme will assure the creation of a much more attractive child than the one we've imagined here.

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Fri, 18 Apr 2008 09:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=381443&view=rss&microfeed=true
<![CDATA[ Julia Allison's reality show gets greenlit? ]]> We heard from a tipster that Julia Allison's reality show has been given the go-ahead to begin production. No word from JA herself though, just a mysterious blog post. I tried to call Julia for comment, but like every other time I try to call her, some guy asked me 'pick-up or delivery'? I guess she lost her cell phone again. Update: Julia called back. She says she hasn't heard anything about the show and her blog post is about her new website that's launching next month. False alarm.

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Tue, 15 Apr 2008 14:20:00 PDT Jordan Golson http://valleywag.com/index.php?op=postcommentfeed&postId=380150&view=rss&microfeed=true