A couple of days ago, upon hearing that Microsoft had officially joined Twitter, the official Linux account sent out a tweet welcoming them. “Welcome to Twitter, @Microsoft!,” they said. The tweet sat unanswered for over a day, and it seemed like Microsoft may never answer. But about a few hours ago, they did. “@Linux thanks, nice to be here,” they replied.

Short, sweet, and to the point. A sign of peace in the operating system ecosystem? Probably not. But it’s something — just look at the shirts that were going around in this war just a few years ago (above).

Twitter is turning into quite the sanctuary for rivals to at least pretend to be nice to each other. Just look at Coke and Pepsi the other day.

[photo: flickr/will hybrid]

[Thanks Russell]

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One of his most popular ones was a video from 4 months ago in which he calls out rapper 50 Cent. Sexman wonders how 50 still has “street cred” after doing endorsements for Vitamin Water, makeup and dildos (I’m not kidding). “What else is he gonna do? 50 Cent diapers for your little gangsta?,” Sexman wonders at one point. He concludes that 50 Cent is “just a media whore!”

Well, 50 Cent has responded. Yesterday, the rapper posted a video alongside Sexman, who apparently flew from Canada to New York to meet up at the rapper’s request.

Pure. YouTube. Gold.

Here’s another old classic. Sexman’s review of the latest Rambo review.

[thanks Corentin]

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Despite our best intentions, it looks like the DEMO v. TechCrunch50 war will continue, even with DEMO under new management.

In 2007 we launched the first TechCrunch50 event - a place where companies can launch to rabid fans and tech press. These launching companies are the stars of the show, and they don’t pay a cent to attend. We thought DEMO’s longstanding policy of forcing launching companies to pay a $20,000 fee was ridiculous, and led the conference organizers to make decisions based not on the merits of the startups but simply on who was willing and able to pay. Not only do we let startups launch for free, we give the top one a $50,000 prize.

Our conference has grown rapidly - nearly 2,000 people attended TechCrunch50 last year while DEMO languished in San Diego with a paltry few hundred. To be fair, our events were on the exact same dates, so they were hit doubly hard. This year we moved our dates to give them some breathing room. We thought we were done battling DEMO.

But today DEMO announced that they’re giving away a “massive” prize - $2 million - to the top two startups at the event. The press is eating it up, saying that TechCrunch50 looks paltry in comparison.

Of course, there’s a catch. The “advertising” is remnant stuff on IDG properties (IDG owns DEMO) and will certainly be priced at rate card. They’ll also charge for creative and other expenses. Meaning there is very little actual value. I’m guessing that the amount of advertising actually delivered would be in the tens of thousands of dollars of value, at best. And, of course, every startup launching still needs to pay to launch.

But whatever. You want adverting? We’ll give you advertising.

DEMO says they’ll give away $2 million in advertising (it might be $1 million total, they aren’t very clear). We’ll double whatever they’re giving. We’ll give away $4 million in advertising if they’re giving $2 million. And if DEMO increases their number, we’ll increase ours to stay at 2x whatever they are at. Our ads will be on our various TechCrunch networks sites and via our terrific sponsors, who are going to be adding their own inventory as well. We’ll give half to the top two winners, and half to everyone else who launches.

We’ve always supported the startups that launch at TechCrunch50 in every way we can. Throwing in free advertising is easy.

Let’s just take a look at the two events for comparison purposes.

TechCrunch50: Free to launch, 2,000 attendees, $50,000 cash prize to winner. $4 million in free advertising. Awesomeness in a bottle.

DEMO: $20,000 to launch your startup, maybe 500 attendees, $1 million in remnant unsold advertising on IDG properties to each of top two startups.

The choice seems pretty clear to me.

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When we reported on Kiva.org’s decision to open up its micro-lending platform to U.S. entrepreneurs, Kiva CEO Premal Shah told us he was concerned about backlash in the community. Shah acknowledged that the decision to open lending to U.S. recipients may draw criticism because it goes against the idea on which Kiva was founded—lending to help development in third world countries where credit options are limited.

It looks like Shah’s prediction was correct. There is now a lending team on Kiva’s community platform titled “Unhappy Kiva Lenders.” The members, which total 375 lenders from around the world, are angry that Kiva is extending loans to U.S. entrepreneurs. The team’s page states that “including borrowers from the USA has undermined the very core of what made [Kiva] so unique and special; small, impactful contributions to entrepreneurs in impoverished situations in developing countries.”

The tirade on the page is harsh, calling the decision “shameful and disgraceful” and a deviation from Kiva’s core mission. The group cites an example of a recent Kiva loan request from a U.S. entrepreneur who had a college degree and a career in architecture who wanted to start a business in website design. The loan he requested was for $7000 to start the business, an amount the lenders suggest could help 7 to 10 different borrowers in other parts of the world.

Kiva’s stated mission is “to connect people through lending for the sake of alleviating poverty.” The anti-U.S. lenders claim that lending to U.S. entrepreneurs doesn’t alleviate poverty because Americans aren’t living in true poverty, compared to people in underdeveloped countries.

**US borrowers do not have to pay to send their kids to elementary school. **They don’t have to build their own house. **They don’t have to walk miles to get the bare minimum of medical care….if needed they can access FREE, generally high quality medical care. **They have a system of laws and courts in place that work. **They enjoy police and fire protection. **They generally have access to inexpensive and dependable public transportation. **They take for granted electricity, clean water, inspected food and indoor toilets. **

Some of that may be true. On the other hand, Shah makes a compelling case for the need for a micro-lending platform in the U.S. He says more than 10 million U.S. business owners face difficulty obtaining capital—even before the credit crisis and economic slowdown which made lending tight. And there’s no doubt that with the credit crunch creating a drought of lending, small businesses in the U.S. are finding it tough to find funds, especially if their financial history isn’t stellar. Finally, there is nothing wrong with giving U.S. lenders the opportunity to boost entrepreneurship at home, especially at a time where jobs created by small businesses can help lift the economy out of a recession.

It seems to me like the angry protests are misdirected. Kiva’s lending program has long been hailed as one of the more innovative platforms on the web and its ambitions have always been towards helping foster entrepreneurship (as well as alleviating poverty) in various areas of the world. Kiva’s decision to offer microlending to U.S. entrepreneurs reflects a genuine need for additional lending in the U.S. economy. And who knows? Kiva’s policy may attract a new crop of lenders who want to help at home first, and once they get hooked, spread capital overseas as well. The more capital that goes into the Kiva system, the more chance borrowers everywhere will have to eventually tap into it because many Kiva lenders simply recycle their loans as they are paid back.

We’ve contacted Kiva.org for a formal response.

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Start Mobile

Apparently, Apple doesn’t like the way one piece of art in the app depicts President Obama. Is it out of line or tasteless? Well, you can determine for yourself, because you’ve undoubtedly seen the art in question before: It’s Shepard Fairey’s famous “HOPE” image of Obama that was everywhere during his Presidential campaign.

So why on Earth would this be rejected? Well, here’s the wording in the rejection:

It contains content that ridicules public figures and is in violation of Section 3.3.12 from the iPhone SDK Agreement which states: “Applications must not contain any obscene, pornographic, offensive or defamatory content or materials of any kind (text, graphics, images, photographs, etc.), or other content or materials that in Apple’s reasonable judgement may be found objectionable by iPhone or iPod touch users.”

“Ridicules public figures”? This image is hanging in the National Portrait Gallery at the Smithsonian — yet, Apple apparently finds it inappropriate.

To be clear, the app in question is a free demo app of Start Mobile’s galleries and contains a dozen images, but Apple is clearly just unnerved by the Obama one as you can see in the correspondence below which the developer has shared.

Here’s Apple’s initial rejection letter:

Subject: Start Mobile Wallpaper Gallery 1.0: Application Submission Feedback
Date: Tue, 19 May 2009 12:27:02 -0700 (PDT)
From: iPhone Developer Program
To: XXXXX@XXXXXXX.com, XXXXX@XXXXXXX.net

Please include the line below in follow-up emails for this request.
Follow-up: 74455381
Dear START MOBILE, INC.,

Thank you for submitting Start Mobile Wallpaper Gallery to the App Store. We’ve reviewed Start Mobile Wallpaper Gallery and determined that we cannot post this version of your iPhone application to the App Store because it contains content that ridicules public figures and is in violation of Section 3.3.12 from the iPhone SDK Agreement which states:

“Applications must not contain any obscene, pornographic, offensive or defamatory content or materials of any kind (text, graphics, images, photographs, etc.), or other content or materials that in Apple’s reasonable judgement may be found objectionable by iPhone or iPod touch users.”

An example of a public figure is attached.

If you believe that you can make the necessary changes so that Start Mobile Wallpaper Gallery does not violate the iPhone SDK Agreement we encourage you to do so and resubmit it for review.

Regards,

iPhone Developer Program
****************************

Here’s Start Mobile’s follow-up trying to explain why the image is not ridiculing a public figure:

Subject: [Fwd: Start Mobile Wallpaper Gallery 1.0: Application Submission Feedback]
Date: Tue, 19 May 2009 21:56:29 -0700
From: John Doffing
To: iPhone Developer Program

Follow-up: 74455381

Apple Developer Program:

The attached image is most certainly NOT content that ridicules a public figure, nor is it in any way “obscene, pornographic, offensive or defamatory”.

The attached image is an iconic portrait by globally acclaimed artist SHEPARD FAIREY, and is actually included in the National Portrait Gallery!

* http://news.bbc.co.uk/1/hi/entertainment/arts_and_culture/7817466.stm

According to the BBC:

“When people think of a portrait of Obama, they think of this image.”
Fairey’s works are also in the collections of the Museum of Modern Art in New York, the Los Angeles County Museum of Art and the Victoria and Albert Museum in London.

Thank you in advance for your time and consideration.

–

THANK YOU!

Best,
John

Now, lest you think Apple is possibly rejecting the app because Start Mobile doesn’t have permission to use the artist’s work, Start Mobile has three other apps featuring the work of Shepherd Fairey that are already in the App Store.

Okay, so maybe Apple’s isn’t comfortable with the bit of legal wrangling that is taking place over the artwork? That’s possible, but that’s not what it says in the rejection. And there are other applications like this one that use the image in question. And, you’ll notice, that’s not even the real version of the image, and it’s being used in the app’s icon. Why Apple would let that slip by and not this app? I have no idea.

And further, Start Mobile actually has another app that also features an Obama image that has been sitting around waiting to be approved for 2 months now, presumably for the same reason. That app features artwork from urban artist Justin Bua, and contains the image of Obama shown on the right.

So why doesn’t the developer just remove the offending images and get these apps approved? Well, because he doesn’t think he should have to, and believes this is just another case of the App Store approval process gone off the tracks.

“You notice that my original email to you didn’t scream CENSORSHIP or anything like that. I am quite sure that this is simply what amounts to a clerical error. A billion apps sold. 50k apps. etc etc. So this is just growing pains on their part. But unfortunately, it effected us directly, and had we not done SOMETHING, the end result would have been what amounts to accidental censorship,” Start Mobile’s John Doffing told us over email.

He goes on to note that he spoke with someone in developer relations a few weeks ago about the rejection, and they indicated that any apps that contain images of Obama may simply be getting rejected outright because there was a lot of “incendiary political content” that was coming through the App Store approval process around the time of the election. Sometimes “‘the baby is thrown out with the bathwater,” is what Doffing was told.

Doffing said that openness about what was going on made him hopeful that the app would find its way to the App Store, but that apparently didn’t change anything.

Sadly, this looks like yet another ridiculous App Store rejection. While Apple has no shortage of developers wanting to make apps for the platform, at some point, all of these ridiculous rejections run the risk of turning developers away.

Apple badly needs to straighten out its policies and get a team in place that doesn’t make dozens of silly mistakes with regards to app approvals and denials. The system continues to be broken.

Sure, Apple can do what it wants, but it’s asking developers to make apps for its store, which move iPhone and iPod touch units and make Apple all that money. Increasingly, the promise is that developers can earn a living off of the platform, or at least supplement their income. But they can’t do that if Apple keeps rejecting their apps for no apparent reason.

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One of the most effective ways to amplify your message on Twitter is to get your followers to retweet it to their followers. Retweeting is also becoming a popular way to pass links around Twitter. They are becoming the new currency of the Web because of the power of passed links. One service in particular, Tweetmeme, is cornering the market on retweets by making it easy for blogs and other sites to add a retweet button to every page. You can see one at the bottom of this post, or the one at right. Just click on it, and it will take you to your Twitter account and populate a message with a “RT,” the headline, and a short link. Go ahead, do it now. Do it again. Okay, thanks.

Lots of sites use Tweetmeme’s retweet button, and it drives a lot of its overall traffic. Nick Halstead, the CEO of Fav.or.it (Tweetmeme’s parent company) says that the buttons are so widespread right now that they are generating 196 million impressions a week month. In other words, that is how many pages load with the buttons every month week, and some portion of those result in actual retweets. Halstead is making some improvements to the retweet buttons. Before each retweet generated by the button would include a promotional “via @tweetmeme.” That has now removed to make more room for the actual headline and link. Next week he is going to introduce an image button which can be included in RSS feeds and emails to spread the retweet love even further. And sites will be able to embed a retweet counter to show how many overall retweets they get every week.

More importantly, the retweet buttons will begin supporting URL shortening service other than bit.ly, and will include an option for sites to choose their own custom short URL. (For instance, we use http://tcrn.ch). Tweetmeme will also offer analytics for site owners to see how their retweets are spreading. Basic data will be free, and Tweetmeme will likely charge for more detailed analyticss. All of this, of course, also turns into valuable data for Tweetmeme to determine the most popular links and stories on Twitter, and makes Tweetmeme itself a better news aggregation site.

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Does embattled music streaming site imeem think it can take on iTunes? For the most part, nearly every streaming song on the site has a download button which links to both iTunes and the Amazon MP3 store. But it is quietly testing its own music download store which bypasses iTunes and Amazon and sells MP3s directly. For instance, this is the case with some Sub Pop artists, such as Iron and Wine and The Shins. When you hit the download button on songs for those artists, a window pops up showing the album where that song came from with with the option to download the entire album or any individual song for $0.99 (see screenshot above). You can then pay imeem directly by credit card or Paypal and download the song to your computer.

This imeem music store is obviously an experiment. The vast majority of songs still direct users to iTunes or Amazon for downloads, and you’d expect imeem to provide its own lightweight desktop client to manage and store the downloads, or at least place them directly into iTunes instead of a download folder on your computer. But it is also likely a sign of things to come. After nearly running out of cash because it was paying out too much money to the music labels for streaming rights, imeem went through a sever recapitalization. Warner Music ended up taking a $20 million hit to write down its investment and bad debt from imeem. Instead of walking away, however, Warner renegotiated its deal with imeem to get new shares without putting in any new money.

Imeem is doing everything it can right now to cut costs and find new sources of revenue. Last week, it announced it will soon stop storing user’s photos and videos, an expensive remnant from its earlier strategy to compete with Facebook and MySpace as a larger social network. Now, imeem is focusing on being a music site. It was one of the first sites to strike streaming deals with all the major labels and for the most part has renegotiated those on more favorable terms. Its iPhone and Android apps, which also offer streaming music, are taking off and driving even more downloads.

And that’s where the imeem music store comes in. Currently, imeem gets a dinky 5 percent affiliate fee for every song its users buy from iTunes or Amazon. As part of its renegotiations with the music labels, it is getting download rights along with its streaming rights I’ve been able to confirm. Instead of getting a few pennies for each song from iTunes and Amazon, imeem can capture the roughly $0.30 per song that doesn’t go to the labels. What is more likely, however, is that it is giving the labels more than the 70 percent cut they get from Apple. Even if it splits its share with the labels and takes only $0.15 per song, imeem still stands to triple its download revenue. Add in ringtone sales and its existing advertising revenues (imeem attracted 25 million unique visitors worldwide in May, according to comScore), and imeem might just have a chance to survive. But if it does survive, it probably won’t be because of its advertising model alone. It will be because the free music is driving enough sales of actual music downloads.

Update: Imeem has confirmed that it is planning to roll out this store more broadly, but says that when it does it will continue to offer iTunes and Amazon downloads as an option.

Below are screenshots of the new post-payment window for songs imeem sells itself and the regular affiliate link window which still pops up for most downlods:

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It’s unclear when the downtime started exactly, but the consensus is somewhere between 5 and 7 hours at this point (11 AM Eastern), with e-commerce vendors desperately looking for ways to contact the company or get any first-hand information about what’s going on and when the problems will be resolved. Twitter, meanwhile, is buzzing with the news as the United States wakes up (hashtag #authorizenet).

According to some threads in hosting forums, which remain unverified for the moment, there was a fire at a Seattle datacenter during this U.S. holiday weekend which caused a massive technical failure.

We’re trying to get more information about the situation.

Update: nobody is picking up the phone at the U.S. offices of CyberSource, the holding company of Authorize.net. Someone I talked to at their UK offices couldn’t help me and told me I should keep trying the U.S. office.

Update 2: Nathan Cheeley writes:

A fire in Fisher Plaza, Seattle has cause a massive power outage causing leading IP-based payment gateway solution Authorize.Net to go down around approximately 11:15pm PST (last night).

A traffic reporter for KOMO News that operates out of Fisher Plaza tweeted that a fire set off the sprinkler system which fried the generators.

Update 3: Authorize.net has set up a brand new Twitter account to keep everyone updated, confirming the cause of the failure was a fire but also stating an ETA for resolution is not available at this time.

Update 4: a new tweet says backup was in place but that datacenter was impacted as well.

Update 5: tweet number 4 says “transaction processing is back up, with the exception of Global processing.” (12 AM Eastern)

Update 6: Or not. (12:30 AM Eastern)

Update 7: Authorize.net reports that full transaction processing has now been restored with Concord EFS.

(Thanks to everyone who sent this in)

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It’s a rag-tag group that includes Craig Newmark of Craigslist, Meghan Asha of Nonsociety, Robert Scoble of everywhere, videographer JD Lasica and many other fine geeks you can read all about at the link above.

As a Sarah-Lacy-bonus-feature I’m sticking around London an extra week, mostly to do some interviews for my book. But I’ll also be meeting with companies, handing out an award at the TechCrunch Europas Awardsfor European startups, hosted by our network site TechCrunch Europe, and—yes, Arrington—writing some posts as well on what I find.

We’re kicking the whole trip off with a Tweet-Up this Sunday night. I think we’ve got about 50 slots left if you act quickly! Yes, there’s a fee to get in, but it comes with free drinks, food and all the Scobleizer you can handle. And, if that’s not enough for you Euro-techies, Intel is giving away a few laptops. (Intel is a sponsor for the trip. For more on sponsors and our ethics statement go here.) Discount code and other details are here.

Hope to see you all there or at the Europas!

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While Placemaker does not serve as a geocoder and thus does not perform address recognition on street-level, it is perfectly capable of geo-extracting and indexing documents or atomic units of text, giving third-party developers the means to mark-up and index Web content geographically in a globally-aware, locally-relevant, and language-neutral manner (and Geo Microformats-compatible, too). But the process of parsing the data could sure have been made a lot easier, and if you weren’t a developer there wasn’t really any use for the tool at all.

Enter GeoMaker, a fresh project by the hands of Yahoo developer Chris Heilmann that aims to make the whole process more user-friendly. Now it just takes three easy steps to copy-paste content either by directly entering data or by fetching it from a Web address and create a map based on the places the underlying software can identify. It even comes with its proper API.

To see it in action, jump to this non-embeddable Flickr video that shows you how it works.

To test it, I entered the URL for a post I wrote yesterday about the apparent geographical differences in terms of level of engagement with social networking services. I don’t have access to a free map developer key, or I would have been able to replace the YMAPPID in the embed code with the key and embed the map, but here’s a screenshot of how it came out:

I can see a couple of uses for this, but it’s worth noting Christian is asking for feedback at this stage, which he intends to use to refine and improve GeoMaker prior to making it available as an open-source project on GitHub.

(Hat tip to Programmable Web)

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The object was to shoot and destroy masses of rock and the occasional flying saucer while avoiding smashing into both, so we suspect it will not turn out to be romantic comedy.

Matthew Lopez will write the script for the feature adaptation, which will be produced by Lorenzo di Bonaventura, the producer of both Transformers movies as well as the 2005 adaptation of the Doom game.

Also wondering how you could possibly build a script around the simple game? Universal is just going to try and see if it sticks:

“As opposed to today’s games, there is no story line or fancy world-building mythology, so the studio would be creating a plot from scratch.”

(Hat tip to The Register, which offers some advice for a story line and potential cast)

Asteroids made by Neave Games

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Guilty of this hideous crime (I kid, I kid) is Google India, who apparently ordered some targeted quarter-page advertisements to appear in a variety of city supplements of The Times Of India, the leading English-language daily newspaper in the country.

According to PluGGd.in - who we can also credit for taking the picture of the ad - this isn’t exactly the first time Google India has advertised services in dead tree form. They apparently also ran a print campaign to promote the company’s SMS search service back in November 2008.

But this could well be the first time the Internet behemoth feels the need to pimp its search service in print. Or is it?

Have you ever heard about other countries where Google advertises its search engine in printed publications? Let us know in comments.

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George Hotz, the 20-year old hacker who originally unlocked the iPhone, has released a jailbreaking application for the iPhone 3GS codenamed “purplera1n.” It’s currently Windows-only (Windows 7 not supported), and requires the latest iTunes installed, and an iPhone 3GS with the 3.0 firmware.

Hotz mentions in a blog post that the jailbreak for Mac is “coming soon.” The iPhone Dev Team did release a unlock for 3.0 which did not work on the iPhone 3GS, but Hotz’s version does (although it doesn’t free you from your current carrier).

Hotz goes over the process of the jailbreaking on his blog:

Connect your iPhone normally. Click “make it ra1n”. Wait. On bootup, run Freeze, the purplera1n installer app.

Hotz does warn users that you’ll need to backup your data just in case, and emphasizes that the tool is still in beta. Hotz also mentions that normally he does not make tools for the public, and rather have the iPhone Dev Team figure out the unlock process. Hotz continues by explaining that Apple will probably find a fix for the loophole, release an update, and he will go back to work on finding the next loophole.

Update: John Biggs over at CrunchGear goes through the process of jailbreaking his iPhone 3GS using Hotz’s program.

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On Wednesday I spoke with antitrust attorney Gary Reback, the man who spearheaded the push to break up Microsoft in the nineties. The event was hosted by HBSTech at the Computer History Museum in Silicon Valley.

If anyone in the world can make antitrust law interesting, it’s Reback.

Much of the hour plus conversation focused on the history of antitrust law and Reback’s experience in big antitrust cases from his new book, Free the Market!: Why Only Government Can Keep the Marketplace Competitive (buy it here). But we also spoke about current events and his concerns that lax antitrust enforcement has led to less competition today in tech than is optimal.

We spent a lot of time on Google. His chief concern is Google Books (jump to the 30 minute mark), and he argues that a DOJ investigation is appropriate. I’m more concerned with competition in search and search marketing, and we spoke about this as well.

One interesting insight from the conversation: I ask Reback if he thinks we’d be in a better world if Microsoft had in fact been broken up into two or more companies as was originally ordered. His response - “no.” The investigation and lawsuits themselves, he said, did enough to force Microsoft’s hand and allow browsers like Firefox, Chrome and others to blossom.

We’re giving away 15 autographed copies of Reback’s book. We’ll determine the winners in the same way we did with Sarah Lacy’s book - retweet this post using the green button below. We’ll select the winners randomly from retweets that occur by midnight California time on July 3rd.

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More on that later.

Now that Linden Lab has been around for nearly 10 years, and with its product Second Life celebrating its sixth birthday since launching publicly in June 2003, we thought it would be a good idea to take a close look at the report and see how the company’s doing according to the analysts.

First of all, you may be wondering if anyone is still using Second Life at all. The answer is yes, and users are very active on there. During the past 30 days, one million users logged in, according to Second Life’s own statistics. In average time spent per user per week, Second Life in fact trounces all other MMORPGs, including World of Warcraft and Civilization IV. In another testament to the service’s apparent stickiness, the number of hours users spend on Second Life has been increasing steadily and is currently at historic highs, totaling approximately 124 million hours in the first quarter of this year.

More importantly, Next Up says in-world transactions have recovered after a significant drop in September 2007 - when gambling was banned in the virtual world - and has been steadily increasing ever since December 2007.

Which brings us to the valuation, or at least the estimated value Next Up claims Linden Lab is worth after running a couple of calculations. Using publicly-traded online gaming companies as a proxy, Next Up pegs the median enterprise value (EV)/ Revenue multiple for that group at 7.2x off of 2009 revenues. Subsequently applying this self-proclaimed “conservative” multiple of 7x to the estimated revenue of Linden Lab ($100 million for this year), the current target valuation amounts up to $700 million.

That seems like a stretch. In November 2007, the last time we asked ourselves how much Second Life is worth, we came out somewhere between $500 million and $1 billion. The current estimated enterprise value calculated by Next Up falls pretty much right into the middle of that range.

Next Up defends the 7x multiple variable by referring to a two-year-old M&A deal. When Disney acquired Club Penguin for $350 million in cash back in August 2007, it paid out at least a comparable multiple based on Vlub PEnguin’s projected revenue for the year (between $50 and $65 million), despite the fact that it reaches a narrower demographic profile. But things have changed since then: stocks have tanked, valuations have dropped, the IPO market has pretty much dried up and VC-backed liquidity is at a record low. So that implies a major discount, with a valuation between $300 million to $500 million, which is decent but not spectacular, assuming Next Up’s revenue projection is accurate.

Here’s what else Next Up says could have a negative impact on Second Life’s valuation:

- the aging population of its main target markets (U.S. and Europe) and less of a presence in developing nations where its main target audience (people from 13 to 45) is quickly gaining in size.
- limited amount of premium subscriptions (about 1% or 170,000 users)
- possible taxation on virtual monetary transactions in a variety of countries
- cost and complexity of running the technical infrastructure behind the virtual world

If you’re interested in the virtual worlds or Linden Lab in particular, there’s a ton of information and speculation about the market to be found in the report, even if we focus mostly on the financial side of things. To conclude, here are two charts from the report, one on the estimated valuations based off of different calendar years and one on the post-money valuations after the various funding rounds raised by the company.

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Google received some unfortunate news today, with the U.S. Department of Justice formally announcing the investigation of the $125 million settlement Google made with the Author’s Guild to pay authors a nominal fee for copyrighted works it has scanned and made available on the Web. The settlement has drawn its fair share of critics, including Jeff Bezos. But Google keeps on plugging away, making its book search better and better.

For instance, Google Books recently launched a plethora of new and innovative features to make the product easier for consumers to use, such as embeddable previews and better in-book search. Today, it added one more useful feature relating to search: a visual cue on the right margin showing the pages throughout a book where a search term appears.

When you search within a book, a page appears in a window, with a scrollbar on the right. Little rectangles will appear in the margin beside the scrollbar to show you where your results are located. When your mouse hovers over one of the rectangles indicating where a search term can be found in the book, you’ll get a preview of the search results and the option of jumping directly to that respective page by clicking on the rectangle.

With the previous search function, it wasn’t as easy to find the exact location of the results in a book. With this simple tweak, Google has improved the visual display of search functions, helping users navigate results in a more organized and efficient way. The DOJ will probably hold that against it.

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The “Change your number” functionality, as spotted today by Boy Genius Report, is great news for users like me. Unfortunately, it will cost you to change it. There’s a one-time $10 fee, which in my mind is well worth it. Best of all, Google Voice will activate your new number right away and still keep your old one active and forwarding to the new one for three months.

What’s also nice is that in picking your new number, you can search by area code and by a word that you want your number to contain. So for example if I search for area code 408 and the word “tuna,” I can get a 408 number that ends in 8862 (”T-U-N-A” on a keypad).

Here are the details:

There is a $10 one-time fee to change your Google Voice number. Here is how it works:

• Pick a new number in the area codes we have.
• Pay $10 with Google Checkout, using your credit card.
• Your new number becomes active right away.
• Calls to your old number will keep coming to your Google Voice account for three months, so you have time to tell everyone about your new number.

We’re still waiting on number portability (the ability to use your existing numbers as Google Voice numbers), but this is a nice start.

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Until the release of the iPhone 3.0 software update, developers were unable to access the phone’s music library. In order to play music as you ran, you’d have to first open up the phone’s iPod application, pick a playlist, then switch over to the excercise app. Once there, you could use your headphone’s multifunction button to execute some basic commands (next song, pause, and previous song), but if you wanted to switch playlists you were out of luck.

Fitnio breaks down this barrier, allowing you to browse through your iTunes playlists and queue one up for the next time you begin a jog. It may not sound like a big deal, but it’s certainly a very welcome change. Unfortunately there’s still no way to jump to a specific album or artist’s songs, but developer Robby Walker says that those will be coming in the future.

Fitnio is a pretty barebones app, without the nice visualizations you’ll see on RunKeeper (it also doesn’t have voice overs announcing your progress, which some people may miss). But it gets the job done, tracking your movements while biking or running using the phone’s integrated GPS, and it’s only a fifth of the price of RunKeeper’s Pro app, coming in at $1.99.

Of course, Fitnio’s musical advantage over the competition will likely be short-lived. Given that all developers have access to the new features in the iPhone 3.0 software update, you can expect similar apps to include this feature very soon. That said, if you’re looking for a fix right now, Fitnio is worth checking out.

Crunch Network: CrunchBoard because it’s time for you to find a new Job2.0

After months of dismal unemployment numbers, this morning’s continued growth in the unemployment rate from 9.4% in May to 9.5% for the month of June reinforces the fact that the U.S. is still very much in the midst of recession. Additionally, the U.S. Department of Labor reported today that employers cut 467,000 jobs in June, compared to 322,000 jobs in May. Unfortunately, the tech industry is still feeling the heat of the recession, with the rate of available jobs not improving much from the past few months, according to technology jobs site Dice.com.

Tom Silver, senior vice president of Dice.com, told us this morning that Dice.com is reporting a 44% year-over-year drop in job listings for the month of June. May’s year-over-year decline hovered around 45%. And Silver also points to a rise in the Department of Labor’s unemployment rate for the “Computer and Mathematics sector,” (the area best associated with the tech sector). June’s unemployment rate for the tech sector almost tripled year-over year, from 1.9% in June of 2008, to 5.4% in June of 2009. While Silver says that the tech job market is certainly better than during the fourth quarter of 2008 and the first quarter of 2009, the number of job opportunities have remained stagnant over the course of the past few months.

According to the TechCrunch layoff tracker, layoffs in the tech sector may be slowing down, which we reported in May. Layoffs are still taking place—the tracker has increased by 10,000 lost jobs over the past two months to a total of 340,000 individual layoffs. But there is a marked difference in the pace of layoffs from late 2008 and the first quarter of 2009, when layoffs were increasing by 100,000 every few weeks For instance, it only took three weeks for cumulative tech layoffs to go from 200,000 to 300,000 in February and five weeks for layoffs to go from 100,000 to the 200,000 mark before that in January.

Though companies are cutting back and limiting hiring for the near future, Silver says that there are still certain jobs within the tech sector that are in demand. Developers who are skilled in the areas of virtualization and IT security are among those in high-demand. And Silver maintains that tech companies are always in need of talented and skilled programmers. But for all the marketing and business development folks out there, demand usually picks up in line with the economy.

You can check out CrunchBoard for tech job listings.

Photo Credit: Flickr/Lisa Brewster

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From the Dovecote Blog:

Woman: “Who the FUCK are you? And why are you eating our pizza?”

Kosuke and Paul look confused.

Kosuke: Are you joking? Is this a joke?

Woman: No this is definitely NOT a joke. I want to know who you are and why you’re eating our pizza.

Kosuke: Well our friend came in and told us there was free pizza at the bar. We are. So. Sorry. It was a misunderstanding.

Woman: (with unbridled entitlement) This is a company party our CEO is here and you STOLE our pizza. Are you from out of town? Because let me tell you, NOTHING is free in New York City. Nothing is free… well maybe except for the condoms in Times Square.

Paul and Kosuke continue apologizing. They offer to pay for the two slices.

Woman: (didactically snobbish) We don’t want your money. No. Enjoy the pizza, but you can’t steal other people’s things. You can’t take what’s not yours

Again the duo continues their apologies. Kosuke tries to turn the situation around and befriend them.

Kosuke: What company do you guys work for?

Woman: We work for Limewire.

Kosuke’s eyes go wide. Anger festers in his pupils.

Kosuke: Oh ok. Well I work at a record label so fuck you. You’ve stolen from us enough. (Bites pizza. Begins to walk away.)

Then things really got out of hand. One of the Dovecote guys grabbed a whole pizza and tried to run away with it. A Limewire engineer pursues and pours beer on him:

Paul’s anger builds. He stands up. Puts his bag on runs out the door, taking an entire pizza box with him. Matt T., a software developer at Limewire, tries to stop Paul by grabbing him and pouring beer all over his shirt, backpack, laptop, and pants.

We usually side against the labels on just about everything, but in this case we’re with Dovecote. Limewire is a mess and everyone knows it.

Whatever happens in the future with the battle between users and labels, we know one thing. July 1, 2009, the date of the Infamous 2009 LimeWire Pizza Fiasco, was when it wasn’t just about words and lawsuits any more. On that day, the music wars turned humorously physical.

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You may have noticed that Twitter has started hyperlinking hashtags. Those are words preceded by a “#” which denote what the Tweet is about and makes it easier to search for Tweets about specific topics and events. For instance, try searching for #realtimecrunchup. Now that they are hyperlinked, when you click on a hashtag, you are led to the search result page for the specific hashtag. Others have been implementing this; FriendFeed (big surprise) has been doing this for awhile. Some of the Twitter clients, including the desktop versions of Tweetie and Seesmic Desktop also provide hyperlinks to hashtags.

For Twitter, search is a navigation tool, and this functionality is yet one more way to allow people to easily discover new Tweets outside their group of followers. This trend started when they added the search box to everyone’s home page last April.

Real-time search is heating up. Just earlier today, FriendFeed launched its own real-time search. By linking to hashtags, Twitter is giving people another entry point into its existing search. Now, if you could only track mentions of specific hashtags over time.

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Hewitt just started working on the feature yesterday, thinking it would be something that would come in the next release, after this one. But he was surprised at how quickly he was able to get it up and running and so he tweeted out today, “3GS video uploading for the Facebook iPhone app is a go — didn’t plan to include it in the 3.0 update, but it was really easy to code.”

This is excellent news as it gives iPhone 3GS owners another easy outlet to upload video to. We’ve already detailed how simple it is to upload to YouTube from the device, and how doing so from the new Kyte app gives you great video quality. The iPhone 3GS is simply awesome as a mobile video device, and Facebook is an excellent platform for sharing video amongst friends.

Additionally, we’ve heard talk the new iPhone 3.1 beta software which was just released to developers the other day, has some new functionality that should make video uploads even easier. Apparently, the device will be able to change the quality of the video getting uploaded based on your available bandwidth to optimize for the uploads.

Crunch Network: CrunchGear drool over the sexiest new gadgets and hardware.

That said, it has been missing some key features. For one, there hasn’t been a good way to track breaking news stories as they happen — generally stories only pop up as they gain momentum and are written about by multiple sites, which can take quite a while (relatively speaking). There also hasn’t been a way to subscribe to a feed of the latest stories via RSS, which nearly every other similar site offers.

Today, Blog Search is finally adding these features. Each feed now offers its own RSS/Atom feeds, as well as an iGoogle gadget that integrates new top stories into your Google homepage. Finally, the site has added sections for both ‘Hot Queries”, which shows the most popular search terms, and “Latest Posts”, an unfiltered view of the latest blog posts indexed by the search engine. These last two features could be quite useful for tracking breaking news, especially given how fast Blog Search is at finding new blog posts.

Unfortunately, they’re not quite there yet. My biggest gripe is that the ‘hot queries’ and ‘latest posts’ sections are not category-specific. In other words, when I’m browsing through the Technology section of Blog Search, I’m still being shown new posts about McDonalds, Exxon, and Asteroids. The Hot Queries section is equally irrelevant. This is especially strange given that Google is already categorizing the blog posts into different sections based on their topic, and I’m hoping that Google will at least offer a filtered view as an option.

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Enter any query into FriendFeed’s search box and you’ll see a constantly updating stream of items related to it. It works for advanced searches too. Best of all, it also searches through comments left below items. And these results can even be embedded in other blogs, as you can see right now on the FriendFeed blog (or below in this post).

It will be interesting to see if FriendFeed uses this functionality in a business sense. Given that it is now possibly the most compelling way to in real-time search streams of hugely popular services like Twitter, YouTube, Flickr, Digg, various blogs — and all the comments related to those — a paid search model would seem to be an obvious choice. So far, FriendFeed has shied away from any business model, but has shown possible hints of what’s to come with its “Shameless Self-Promotion” banners.

And FriendFeed still has a few more things in store, including, yes, track for topics (it already has it for people and groups). “We’re also working on allowing you to subscribe to saved searches, add them to your friend lists, and even get notifications based on search keywords. So stay tuned,” writes Jim Norris today.

The timing of this announcement is also perfect considering our own real-time event is coming up a week from tomorrow. And yes, FriendFeed will be a part of it, along with the other major players in the field.

Below is an example real-time search embed to see what people are saying about TechCrunch in real-time.

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