Icahn stock buy gives Yahoo shares a boost

Billionaire investor Carl Icahn spurred a rally in Yahoo shares today after he disclosed that he had increased his stake in the struggling Internet company.

Shares surged nearly 9% in the shortened trading session after Icahn, a Yahoo board member who has been pushing a strategy shift or a sale to Microsoft, said he had bought about 6.8 million Yahoo shares. A Securities and Exchange Commission filing showed that Icahn had paid an average of $9.88 per share from Monday through Wednesday, boosting his holdings by about $67 million. The purchases gave Icahn a nearly 5.5% stake in Yahoo worth around $870 million based on today's closing price of $11.51.

This is the first time that he has significantly upped his stake in Yahoo. Icahn, who couldn't be reached for comment, is one of the loudest voices calling for a change in the company's direction. He and two of his picks became directors in an August settlement that ended a bruising proxy fight.

The activist investor began buying Yahoo shares this spring while the Sunnyvale, Calif., company was in merger talks with Microsoft. After Yahoo rejected the deal, Icahn tried to oust Chief Executive Jerry Yang and to get the two sides back to the bargaining table. Microsoft CEO Steve Ballmer says he is no longer interested in buying Yahoo, though he has expressed interest in snapping up its search business.

Earlier this month, Yang said he would step down as head of the company he co-founded as soon as his successor is found. So Icahn's stock purchases are likely to fuel speculation over Yahoo's search-in-progress for a new CEO. The board has begun to interview potential candidates.

Motley Fool analyst Rick Munarriz said Icahn was trying to recover from a nearly $1-billion loss on his original Yahoo stock-buying spree. Earlier this year, Icahn bought about 69 million shares of Yahoo for an average of about $25 a share.

"It makes perfect sense: At this price, Yahoo is ridiculously low," Munarriz said. "He’s try to correct his mistake at this point."

The market will pay heed, Munarriz added. "Now he knows the company from the inside. If he's spending more money, it's an encouraging sign for Yahoo investors."

-- Jessica Guynn

Photo: Carl Icahn. Credit: Jeremy Bales / Bloomberg News

Around the Web 11.28.08: Black Friday gadget deals, Thanksgiving 'Rickroll', Mumbai terror attack tweets

-- Hey, Macy's Thanksgiving Parade, you've been "Rickrolled"! NewTeeVee

-- Now that he's been elected president, has Barack Obama's social networking effort already run its course? Top of the Ticket

-- A list of the best Black Friday deals on gadgets. Gizmodo

-- The Pentagon's computers are besieged by malicious software, known as agent.btz, that spreads via flash drives. LAT

-- So much for the spam slowdown. Volumes of unwanted commercial e-mail are picking up again. CNet

-- Social media users were quick to report on the Mumbai terror attacks, spreading eyewitness accounts, pleas for blood donations and lists of the dead and injured. CNN

-- Not this too: Newspapers, which are reeling from declining print subscriptions and advertising, say their online ad revenue is also dropping. PaidContent.org

-- Game review: Resistance 2 for the PlayStation 3 gets an A-plus rating, sets a new bar for video games. LAT

-- Hi, Granny, can you see me now? Video calling brings families together. NYT

-- Another Yahoo exec splits: Toby Coppel, an executive vice president and managing director of Europe and Canada. BoomTown

-- Carl Icahn bets on Yahoo, buys 7 million more shares. Silicon Alley Insider

-- What happens to Dr. Pepper's website when it offers everyone in America a free bottle of soda? Royal Pingdom

-- Deconstructing the Brash Entertainment meltdown. Variety

-- Why the DVR isn't killing "Heroes." Show Tracker

-- Chris Gaither

In the wake of MySpace verdict, could social networks do more to protect consumers?

A federal jury in Los Angeles today delivered a mixed verdict in the MySpace cyber-bullying trial, convicting a Missouri woman of three misdemeanor charges of computer fraud for creating a phony account on the social networking site that prosecutors said drove a teenage girl to suicide. Lori Drew, 49, faces up to three years in prison and $300,000 in fines but was acquitted of the most serious charges against her.

But the jury is still out on whether social networks are doing enough to protect consumers on their sites, say technology and safety experts.

Social networks are a vulnerable place for children, with cyber-bullying becoming increasingly prevalent, technology consultant Rob Enderle said. One-third of U.S. teenagers have been victims of it, according to a Pew Internet Project study released last year. About 39% of social network users reported being bullied in some way, compared with 22% of teens who did not use social networks.

Social networks have security and safety personnel who scour their sites for inappropriate content. "But the reality is that children are at risk on these sites," Enderle said. "Sites do what they can to mitigate those risks. But without becoming incredibly invasive, it would be very difficult for the sites to monitor this kind of behavior and prevent it."

In fact, Enderle said, social networks kept a close eye on the Drew case, hoping for ...

'PG Porn' matches lady porn stars with leading men

In "Nailing Your Wife," the first episode of "PG Porn," a new Web series for Spike TV, actor Nathan Fillion plays Chris, a construction worker who gets a surprise visit from his boss' wife, Mrs. Grimes, played by the adult actress Aria Giovanni.

"Is Norman here?" inquires Mrs. Grimes, referring to her husband.

"Do you mean Norman Grimes, the foreman of this construction site?" replies Chris dumbly.

It's the first line of a truly bravura performance by Fillion, perhaps one of the best in the history of the porn satire genre.

"Mmm-hmm," Mrs. Grimes answers.

Having established that Grimes is not on-site, Chris and Mrs. Grimes cut right to the chase. Director James Gunn bedazzles the short episodes with static and amateur-looking titling, in a successful attempt to send up '80s-era VHS porn, of which he is obviously a dedicated student.

Porn is a tough thing to parody, because, well, how do you parody it without graphic sex? Apparently that's the question at which this show is taking direct aim. So far, it seems like it might work.

The money shot in this first episode is a bit of a shock. I won't give it away, but suffice to say that Mrs. Grimes and Chris were just not meant to be.

Gunn ("Slither," "Dawn of the Dead") has five more episodes in the hopper, each of them featuring famous adult actresses, and some of them well-known actors. In an upcoming episode of "PG Porn," Michael Rosenbaum of "Smallville" plays Charlie Brown to the Lucy of pornstress Beladonna -- the episode is entitled "Peanus." Ha.

The shows will be airing over the next few weeks.

— David Sarno

Sony movies trickling into Xbox 360 via Netflix Instant Watch

Last week, we reported that Sony had balked at letting its movies and TV shows be streamed by Netflix to Microsoft's Xbox 360 game console.

That was then. Now it seems that a number of titles from Sony and its subsidiaries have found their way to the 360 via the Netflix Instant Watch service -- but not all.

"A few titles that were not available last week have come," said Netflix spokesman Steve Swasey, who declined to say which of the several hundred movies affected are now viewable. "But others have not."

Netflix streams about 12,000 movies and television shows free to its subscribers, who can view them on their computers or on their TVs via devices such as the Roku Netflix Player, TiVo digital video recorder, Samsung Blu-ray player, LG Blu-ray player and the Xbox 360. The Sony titles were available on all those devices except the Xbox 360.

"We hope to have all available titles on all devices soon," said Swasey, who declined to specify a time frame. Just not instantly.

-- Alex Pham

Photo by Netflix

Missouri mom escapes felony conviction in MySpace case

The jury has reached a verdict in the MySpace cyber-bullying case: Lori Drew was found guilty on three misdemeanor charges but acquitted of felony computer hacking.

Drew, a 49-year-old Missouri mom, was accused of creating a fake MySpace page and using it to harangue Megan Meier, a 13-year-old girl who later hanged herself. The 12-person jury found that Drew had gained unauthorized access to the site but that she did not violate the Computer Fraud and Abuse Act. The jury deadlocked on a conspiracy account. L.A. Times staff writer Scott Glover, who has been covering the case, writes:

Prosecutors sought to portray Drew as a callous and reckless woman who gleefully took part in the hoax on Meier, despite knowing the girl had struggled with depression for years and had a vulnerable psyche. Among the government's witnesses were a close friend of Drew's, a business associate and her hairdresser, each of whom testified that Drew had admitted playing a role in the hoax.

Steward accused the government of engaging in a misguided prosecution that was meant to exact revenge for the tragic death of a pretty young girl, even though Drew was not charged with her killing. He also sought to cast Meier as a deeply troubled teen who had already considered suicide and who was taking an antidepressant medication, which warned of suicidal tendencies as a potential side effect.

Drew's attorney, H. Dean Steward, said, "The U.S. attorney's office never should have brought this case, and I think that was the message from the jury."

Wired.com said the case was decided by the jury's rejection of a novel argument by prosecutors: that violating MySpace's terms of service to inflict emotional distress on someone was tantamount to computer hacking.

The slap-on-the-wrist verdict is a partial rebuke to federal prosecutors, who chose to charge Drew federally even after authorities in Missouri — where the hoax unfolded — found that Drew's behavior did not violate any state laws at the time. Some legal experts and civil libertarians decried the prosecution as an abuse of computer-crime laws.

In a statement issued shortly after the verdict, Beverly Hills-based MySpace, which is owned by media giant News Corp., said: "MySpace does not tolerate cyberbullying and has cooperated fully with the U.S. Attorney in this matter. MySpace respects the jury's decision and will continue to work with industry experts to raise awareness of cyberbullying and the harm it can potentially cause."

-- Chris Gaither

Photo: From left, Sarah and Lori Drew arrive at federal court in Los Angeles today. Credit: Nick Ut / Associated Press

Around the Web 11.26.08: Tomb Raider down, digital music sales up and online gambling cheaters caught

-- Eidos tries to shoot down negative reviews of the latest adventures of Lara Croft in Tomb Raider Underworld. CrunchGear

-- If you can't squelch them, bribe them. An iPhone app developer is paid for positive reviews. Ars Technica

-- Atlantic Records became the first major label to see digital music sales eclipse CD sales. NYT

-- Gotcha! Journalists devised way to catch online gambling cheaters. CNet

-- MTV's Courtney Holt is finally named president of MySpace Music. LAT

-- Google admits breaking the rules in creating iPhone apps. CNet

-- Safari, Google Chrome gain Web browser market share. MacWorld

-- Sling opens its video streaming box to take on Hulu and Joost. TechCrunch

-- Got gadgets for the juice-box set? LAT

-- Kids too wired? Unplug them with (gulp) books. BoingBoing

-- Pwnd! Let's just be thankful we have colleagues who'd never, ever do these sorts of things. DarkRoastedBlend

-- Alex Pham

Photo: Image of Tomb Raider Underworld. Credit: Eidos Interactive

Super Obama World: If only his job were this easy

Winning this game is probably much simpler than fixing the economic meltdown: It's Super Obama World, an online game, patterned after the legendary title Super Mario World, that features President-elect Barack Obama. As Mark Milian writes over at Top of the Ticket:

Just because the election is over doesn't mean the political jabs have to end. You'll find plenty of Gov. Sarah Palin parody to tickle your funny bone, as you guide Obama around six levels, set in Alaska.

Burning books at the Wasilla library, a seemingly endless Bridge to Nowhere, a jab at Sen. Ted Stevens' "series of tubes" comment and a boss battle versus a snowmobile-riding Palin are among the game's humorous highlights.

You can read the full post about Super Obama World for more details about the setting of the game's next version (think John McCain's home turf).

-- Chris Gaither

Appiphilia: Review of iPhone apps for storing memories, movie reviews, workouts and conversions

By now, you most certainly know that the iPhone firmware upgrade is out. Among the many changes and useful little features is the ability to tap the home button and return to the first screen. Completely helpful for those of us determined to fill out the nine pages we're permitted -- or restricted to, depending on your perspective -- in going from app No. 144 back to app No. 1.

In the spirit of the upcoming Thanksgiving holiday, a musical dedication (to the tune of "My Favorite Things") to the apps I'm most thankful for. Feel free to sing along:

Pandora for music and Evernote for memos;
iMapMyRide so tracking's no problemo;
With Units, I can convert with a series of taps;
These are a few of my favorite apps.

I promise we won't continue with a complete Rogers and Hammerstein tribute. For this week's Appiphilia, I'd like to pause a moment and reflect on those things that make life with an iPhone a little bit easier. The everyday apps.

In no particular order, these five apps are free and fully functional.

Evernote (free)

What it is: For nearly every way you might want to memorialize something, this popular app makes it possible. There is a desktop download for Windows and Mac operating systems, as well as for a Web-clipping version for most popular browsers. You can sync your notes -- photo, audio or text -- over the air. Users get 40 MB per month. That breaks down to about 20,000 text notes, 400 mobile pics, 270 Web clips, 40 audio notes and 11 high-res pics, according to the Evernote site. There's a for-fee upgrade available.

What sizzles: Being able to sync notes from iPhone to computer without a cable is exceptionally convenient. For those making the transition from a PDA to a smartphone, this app makes that shift a little easier.

Evernote also offers image and text recognition, meaning that you can search for ...

Around the Web 11.25.08: Beatles can't work it out with iTunes, Japanese robots get prizes

-- The Beatles aren't coming to iTunes anytime soon -- talks have stalled. They need help! AP via Yahoo

-- Cisco is closing down for four days at the end of the year to save money. GigaOM

-- The release of the Kindle 2 is delayed until next year. Guess you'll just have to read real books till then. TechCrunch

-- Craigslist founder Craig Newmark talks to the L.A. Times editorial board about the future of newspapers. LAT

-- T-Mobile's G1 is selling better than expected. Guess people need their Google fix even in a slow economy. TG Daily

-- If you just bought a G1 and kind of wish you'd gotten an iPhone instead, here’s some gear that can make your new phone a little bit cooler. CNet

-- Could Google's Eric Schmidt be leaving for better things? (Wait, there are better things than Google?) Silicon Alley Insider

-- Economic turmoil may be a good thing for all those people inventing the next Google in their garages. Wired

-- If your search for “stomach pain” on the Internet convinces you that you have cancer, you may have cyberchondria. NYT

-- Dancing on graves won’t help the environment. But solar panels on graves may. Wired

-- Japan's government gives prizes to what it considers top robots of the year. They include one that
turns pages in books and one that transplants rice. Tech On

-- Alana Semuels

Photo: Lego model of the Beatles Abbey Road cover. Credit: Dunechaser via Flickr