Ads and Venues

WSJ reports on jittery advertisers whose ads are being displayed next to risque content on platforms like MySpace and AOL, via ad aggregators and advertising networks such as Advertising.com.  Some examples are:

Last month, Verizon Communications Inc. was surprised to find one of its Internet ads on a MySpace.com page with photos of scantily clad women. Walt Disney Co. was unaware that its ad was next to an article about male sexual performance on About.com. Jobs Web site Monster.com
didn’t realize its spot was on a site that appeared to be offering
unauthorized downloads of copyrighted music and videos. Once they found
out, all three yanked their ads.

My guess is that we’ll see less and less of this type of complaint as companies eventually learn that the association between editorial and advertising content is not as strong on the internet as TV and print.  If a TV set is tuned to ESPN at a strip club, and you see an ad on TV for Toyota, you don’t think of Toyota as sponsoring (or condoning) strip clubs. (I am not suggesting that this will happen very quickly, though.)

The ad networks are making advertising (or getting attention) more efficient, so they will increase in volume.  It’s fun to see old media (read: WSJ in this case) take jabs at the forces looking to eat its lunch.

Movies to Keep

Further blurring the line between the living room TV set and the PC, and helping establish that how a bit enters your home is irrelevant, six major studios are beginning to offer movie downloads.

Starting today, nearly 300 films will go on sale through Movielink,
which until now has been largely an online rental site.

Another
movie site, CinemaNow, will start selling downloadable versions of
about 75 movies from Sony, MGM and Lions Gate, which owns a large stake
in CinemaNow. Curt Marvis, the chief executive of CinemaNow, said he
was talking to other studios about selling downloads.

TPG’s $14b New Baby

We keep hearing about the worldwide liquidity boom.  Then, you hear something so extraordinary that the size of this boom really sinks in.  This is one of those things:

Texas Pacific Group will this month tell investors it has raised more
than $14bn for its latest buy-out fund, the biggest single pool of
capital raised in global private equity.

That’s a lot of money to invest in a fund’s typical lifespan. 

Israel Envy

According to the IVC, Israel has:

4,563 High-Tech Companies, 166 VC Funds and 34 Incubators

Country PR aside, it’s serious that Israeli VC funds have raised $1.2 billion in 2005, and are projected to raise another $1b in 2006.  Therefore, it should not be surprising to see events like KinnerNet conference, pulling in about 150 thinkers and innovators to:

discuss topics and concepts that are of interest
to them,in fields such as Software development, internet culture, site
building, blogs, forums, social networks, chat rooms, instant messages,
P2P, search engines, web services, Wi-Fi, open source, Email,
Infrastructure services, Cellular services, Computer games, Interactive
T.V, VOIP, technological trends, Gadgets, Security and more,   to share
their thoughts , work-in-progress, show off the latest tech toys and
hardware hacks, and tackle challenging problems. together we will try
to figure where the internet is going and what are the prevailing
trends.

I am jealous as I read Mark, Tom and  Loic blog about it.  In contrast to the Israeli numbers, the Turkish VC raised in 2005 was $0.  In 2006, we expect it to be $0 again.  And, we will not have an event like this next year in Istanbul.

A few months ago, on a panel, Yigal Ehrlich had attributed Israel’s VC (and innovation) success to government action – resulting in Yozma.  As much as I hate looking towards the government (especially the Turkish government), I suspect early stage VC asset class can only be kick-started with a strong nod from the government.

MySpace Censorship

Nick Carr’s post alerted me to a purge going on at MySpace (reported by FT). 

MySpace, a division of media giant News Corp, has kicked some 200,000 "friends" off the site for posting objectionable material:

Ross Levinsohn, head of News Corp’s internet division,
said some of the material taken down contained “hate speech”. Some of
it, he said, was “too risqué”. “It’s a problem that’s endemic to the
internet – not just MySpace,” Mr Levinsohn said. “The site, in the last
two months, I think has become safer.”

Notwithstanding the operations challenge of policing such vast landscape, this move will act as a good test of the users’ perception of MySpace.  All of a sudden, the closed room where the youth goes to escape from authority (parents, teachers…), the authority is making its presence felt.  I doubt MySpace would have made such a move as an independent company.  The liability-conscious News Corp cannot face some of the risks that Intermix could have.

This fact can mean an inherent advantage for some of the scrappier independent platforms down the line.

Turkven Invests in Pronet

Pronet_tomb
Turkven, Turkey’s only independent private equity firm, announced its investment in Pronet on Monday.  The Turkven team and the CEO of Pronet are both friends.  To top it off, another friend, Aycan Avci advised Pronet on the deal. Pronet’s been an ideal candidate for PE for a while – enjoying rapid growth with a very visible cash stream.

This is Turkven’s sixth closing on its debut fund.  In a panel last week, Evren Unver mentioned that work’s about to begin on the second fund.

Sometimes, I feel like the entire deal scene in Turkey is rooting for the success of Turkven.  I am excited for them.