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ZYB, a mobile social network that we gave high marks to in August 2007, has been acquired by Vodafone for €31.5 million, or about $50 million. The company had raised just €3 million in venture capital.

ZYB was smart in how they built their service. At first they were a simple address book backup-to-web service. But they realized they had a very complete social graph from the data (who’s closer to you than the people you call frequently on your mobile phone)? So they launched a mobile social network on the back of the original service.

We’ve continued to write about ZYB in comparison to competing mobile social networks (an area we’ve taken a special interest in). Last month. ZYB acquired one of those competitors, Imity.

The press release is below:

Vodafone Announces the Acquisition of ZYB

16 May 2008

Vodafone* today announces that it has agreed to acquire 100% of ZYB, a privately-owned company based in Denmark which operates a social networking and online management tool enabling mobile phone users to back-up and share their handsets’ contact and calendar information online. The acquisition will be made for a cash consideration of Eur31.5 million.

The acquisition of ZYB is a further advance in the implementation of Vodafone’s Total Communications strategy which is delivering new revenue growth around fixed broadband, mobile advertising and a rich set of internet services that integrate the mobile and PC customer experience. ZYB fits into this strategy by enhancing the range of communications services Vodafone can provide to its customers.

ZYB is unique amongst social networking sites as it is designed with the mobile device at its heart, allowing customers to share information and messages between their friends and colleagues who are held in their mobile phone’s address book.

ZYB increases communication choices for customers enabling them to send messages and images from their PC to multiple mobile devices in their mobile community, as well as taking advantage of the functionality of an instant messaging service.

Pieter Knook, Internet Services Director for Vodafone Group, said: “Vodafone understands that the core of any customer’s personal and business network is the set of contacts they hold on their mobile phone.

“Using a web portal as a link between the PC and the mobile device, ZYB provides an interactive way for people to nurture, contact and develop their relationships with their most important friends and colleagues and builds links with those contacts’ wider networks. This is Web 2.0 in action.

“This acquisition is consistent with our strategy of delivering products and services which meet our customers’ total communications needs.”

Tommy Ahlers, CEO of ZYB, added: “I am delighted that ZYB is to join Vodafone, the world’s largest international mobile community.

“Vodafone and ZYB share the same vision: to create a new mobile experience that builds on the convergence between the mobile and PC – and one which works on both platforms.

“By joining a company with Vodafone’s global reach, ZYB has more opportunities to bring to the mobile a further advance to the rich and interactive communications experience which people already recognise via the internet on their PC.”

ZYB will remain based in Denmark and upon acquisition will be incorporated into Vodafone’s Internet Services Division.

* The purchaser of ZYB is Vodafone Europe BV, a holding company of Vodafone Group, based in The Netherlands.

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The scuffle today between Facebook and Google has very little to do with user privacy and everything to do with user control. A huge battle is underway between Google, MySpace and Facebook around control of user profiles and, therefore, users themselves. And their three new products, Data Availability, Facebook Connect, and Friend Connect, are all designed to further that goal.

Internet giants know that the days of getting you to spend all of your time inside their walled gardens are over. So the next best thing is to at least maintain as much data about the user as possible, and make sure they identify with your brand while they are out there not being on your site. The most valuable information a user has is his or her identity (that’s why the big guys are so eagerly adopting the issuing side of OpenID so you log in with, say, your Yahoo account on other sites), as well as their friend list (valuable, plus users hate to keep redoing it all over the Internet) and other information.

The companies with the profiles (mostly MySpace and Facebook) know this. And they know that to keep users happy, and to stop them from entering in all that friend data into other sites, they need to make their data at least somewhat portable. Not too portable, mind you. That means they’d lose control. But just portable enough. That’s why they are launching their products, and that’s why they are being justifiably criticized by people like David Recordon, who says this is not real data portability.

Google is a little different. They don’t have a social networking presence in the U.S., so they are trying to get in the middle between the guys with the profiles (like Facebook) and the sites that want the data. Their Friend Connect product does just that, and makes them an important data middle man. That position can later be leveraged intensely. In fact, in many ways Google can become the most important social network without actually having a social network. Facebook, of course, doesn’t want this. And that’s the real reason why they blocked them today (although the rumor is that they two companies are talking tomorrow about some sort of compromise).

So when Robert Scoble wrote this evening that Google is in the wrong, I disagree. I think Facebook’s intentions aren’t to let users get data out of the network until Facebook is absolutely forced to do so, and then only on Facebook’s terms (see Facebook Connect). The fact is, this isn’t Facebook’s data. It’s my data. And if I give Google permission to do stuff with it, I’m damned well within my rights to do so. By blocking Google, Facebook has blocked ME. And that, frankly, kind of frustrates me.

Let me put this another way. How dare Facebook tell ME that I cannot give Google access to this data!

Scoble has been on the wrong side of this issue before, when he tried to scrape his friend’s contact information out of Facebook and export it to Plaxo. In that case, it wasn’t his data and he didn’t have the right to make it portable. It’s MY data, once again, and only I should be allowed to make that decision. He thinks his new position shows that he gets the importance of privacy, but once again he isn’t thinking in terms of who really owns the data and should be allowed to make decisions around it.

Ultimately I hope that I can keep my identity, friend list, photographs, videos and everything else that constitutes the (de)Centralized Me at any service provider that I trust (meaning I trust them to protect that data, but never go against my wishes and try to keep it to themselves if that isn’t what I want), and just tell sites like Facebook and everyone else where to grab it.

So far, none of the services do that or have announced plans to do that. But someone will, eventually, and in the process of freeing my data they will likely make a big boatload of money, too.

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With LiMo’s recent announcement that Verizon had hopped onto their Board of Directors, things are starting to heat up between the LiMo platform and Google’s competing product, Android. Both are open-source Linux-based platforms, and both are aiming to rock the handset market sometime in the next year or so.

LiMo is Linux-based. Android is Linux-based. But they’re far from the same. Below, I’ll try to explain some of the key differences without going too heavy on the tech jargon. (Fiiine. It gets a bit heavy for a paragraph or two. But I’ll avoid it where possible.)

Read the rest of this entry »

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He was pretty careful about what he would and wouldn’t talk about, but former Twitter Chief Architect Blaine Cook bravely faced the Gillmor Gang today to talk about the challenges facing Twitter, the feasibility of a decentralized Twitter competitor, and other Twitter related issues. The timing is perfect, as big media is starting to take notice of Twitter and its passionate users. Google engineer Bob Lee also joined the show.

The most interesting thing Blaine said in my opinion was that as of late 2007 Twitter had just three engineers (including himself) and one operations guy. No wonder they couldn’t keep the fast growing service online.

Listen to the show here. A transcript will be up shortly.

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[Link: Bill O'Reilly's producer.]

Today Plazes CEO Felix Petersen gave us a peek at iPlazer, the upcoming iPhone client for the geo-tagging social networking site. The app will be available when Apple’s official App Store launches in mid June. Plazes has been around for a while - it was one of the first companies to be covered on TechCrunch. Since then it has switched gears a couple of times, but it’s best described as Twitter with geotagging, points of interest, and social networking features.

Right now iPlazer seems like a combination of Twitter and Dopplr. The phone detects the user’s location through the iPhone API, then presents the user with a number of suggested descriptions (for example, opening Plazes from our office presented us with choices of “TechCrunch HQ” and “The Mansion”, both of which were assigned to the coordinates by previous visitors).

After choosing a location label, the user is prompted to send “activity” messages to their friends (it’s basically a tweet tagged with location information). These activity messages are compared by the server, and Plazes notifies you if you’re in the same neighborhood as one of your friends. You can get a feel for the app in the screencast below.

Plazes is also launching a new version of their main site, which will enter private beta next week. Most notable about the launch is the introduction of Twitter integration, which is strange because Plazes seems to mimic Twitter in some ways. For the time being Plazes stands to gain by allowing Twitter users to send geo-tagged tweets, but things may work out differently in the long term. The new version of the site also introduces a Dopplr-esque nearby friend notification system and support for iCal integration. You can request an invite here.

Readers may remember Felix Petersen as the guy who got busted by his own product. Petersen backed out of a speaking gig at a conference, telling them that one of his kids was sick, then proceeded to party at a different event (while Plazes told the world). The whole thing was overblown, but it was amusing nonetheless.

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A source has informed us that Google plans to announce the replacement of its Mini Search Appliance with a new enterprise search solution called Hosted Site Search in the next few days.

We hear it will be a for-pay product that, as the name suggests, will allow businesses to search their websites and other data stores in the cloud. In addition to moving this type of search off-premise (the Mini sits behind the firewall), the Hosted solution will differentiate itself by automatically including organizations’ webpages in the Google index. This feature, however, is said not to affect anyone’s page rank.

Suppliers who help Google manufacture the Mini apparently have been told to reduce their shipment forecasts for the product because it will be shelved soon. The shift in strategy is also understood as a response to Microsoft’s gains in the appliance-based search market.

The Mini is a less powerful version of Google Search Appliance, which can index millions of documents and 220 file types. The Mini, by contrast, can only search up to 300,000 documents and is therefore meant for smaller businesses.

It’s not exactly clear what this decision means for the enterprise search industry, but it won’t be surprising if Google does indeed come out with a cloud-based solution.

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One thing Citi analyst Kevin Mahaney didn’t know about earlier this week in his very optimistic sales estimates for the Kindle: Jennifer Aniston is apparently a fan. At least, that’s what it looks like in the picture above published by US Weekly (that is the first time and also the last time that publication will be mentioned here on TechCrunch, promise).

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Next month GigaOM will hold Structure 08, a conference centered on the changing face of computing infrastructure. The event will discuss the wave of cloud computing technology that has been driving a revolution in web applications and has started to overthrow the notion of conventional servers.

Structure 08 will feature a workshop on Google App Engine, along with keynote presentations from Werner Vogels (Amazon), Greg Papadopoulos (Sun), and James Crowe (Level 3). You can see a full schedule here.

We’re giving away five tickets to the event, so leave a comment telling us why you’re too financially impaired to pay for a ticket and we’ll pick the best responses.

Structure 08 will be held on June 25th at San Francisco’s Mission Bay Conference Center. TechCrunch readers who register by May 20 can get a 10% discount on registration here.

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One Laptop Per Child will ship a special version of Windows on their low cost laptops for poor children, the two companies announced this afternoon. Previously the laptops, which to date have been tested in a number of countries, ran only Linux. Trials of the Windows version of the machines will begin in June in “key emerging markets.” OLPC is also working with third parties to port its user interface, called Sugar, to Windows, and is hoping to have a machine with dual boot options to allow “users” to choose between operating systems.

There are no financial terms being disclosed, although it wouldn’t be dumb to assume that not only is the software being supplied for free, but Microsoft made a healthy donation to the organization as well. The last thing Microsoft wants is for anyone who’s computer literate to think that a world without Microsoft Windows is possible.

On the upside, though, the pain of having to deal with Windows crashes may make some of these kids excellent technical support people over time. They’d just get lazy with Linux being so stable all the time.

If it isn’t obvious from what I’ve written above, I’m not impressed. OLPC is in danger of becoming a celebrity cause rather than a real attempt to bridge the digital divide. My guess is Linux worked just fine as an operating system for these machines.

Next up: Google Tools and AOL Dial Up service pre-installed on OLPCs?

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More details on Facebook’s banning of Google Friend Connect from the Facebook API earlier today. I spoke with Facebook Chief Privacy Officer Chris Kelly and Google’s Director of Engineering David Glazer about the banning to get a fuller picture of the conflict.

Here’s an example of how Friend Connect (more details) works in practice. A third party site may want to add social elements to their service. They can integrate with Friend connect and allow users to sign in. Those users choose a social network where they keep their profile (Orkut, Hi5, GTalk and, until today, Facebook) and log in via the social network’s API. They then become “members” of the site, using Google’s terminology. If any of their friends from their social network also become members of that site, those friends are shown on the site and you can interact with them. To see it for yourself, click “log in” at the top of this sample site, IngridMichaelson.

Kelly says the issue comes down to the fact that Google Friend Connect users don’t have control over data pulled from Facebook. In particular, Facebook is concerned that they have no relationship to the end site where the data is presented (in the example above, IngridMichaelson). Instead, Google has inserted itself as a middleman in the process.

Also, Kelly says, once permission is granted to share data, the user has no way to revoke that permission from their Facebook account. Facebook has a privacy control panel that lets users set and change privacy setting over time, including the removal of applications. With Google in the middle, Facebook has no way to stop the flow of data to these third parties.

Google’s Glazer counters that they have a very effective method for unlinking to a site that a user has given permission to, so users will be just fine. In the screen shot below, Google gives an option to “Unlink” the specific social network from the site (on right) or change the data that’s shared from the social network (on left). Kelly is correct that you can’t trigger the unsubscribe from Facebook.com, but Glazer says that’s because Facebook’s API has no way of telling Facebook about the third party site the data has been passed off to.

Glazer says that they have been in “constant contact” with Facebook over the Friend Connect product, and are still trying to work with Facebook to get access to the API again. But Facebook has their own competing product to Friend Connect, called Facebook Connect. The longer the ban, made under the banner of protecting user privacy, remains in place, the stronger Facebook’s position will be competitively. My guess is they’re in no hurry to get through this conflict any time soon.

The fact is that Google is taking perfectly adequate steps to protect user privacy with their Friend Connect product, and it is a useful product for users. After talking with both sides, it seems to me that Facebook is relying on a very convenient catch-22 to stay out of Google’s network. They are the ones in control of their own API functionality, and they could add features that fix this problem. Until they do, there’s nothing Google can do to remedy the “problem,” and the walls around the Facebook garden get ever higher.

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Last month we ran a brief post introducing Spellr.us, a service that monitors websites for spelling errors. Little was known about the site at the time - all we had to go by was a teaser splash page. The site has finally entered a private beta, and it shows a lot of potential. For those looking to try it out for themselves, you can grab one of 150 invites here.

Spellr.us monitors webpages by running site-wide spell checks at regular intervals. Results are presented as snapshots of pages, with errors highlighted in bright boxes (a mouse-over displays suggested corrections). Members can also choose to have errors sent to them in RSS feeds - a feature that will be especially handy for large sites that make frequent posts. Besides the visual snapshots, Spellr.us can list misspelled words according to their frequency across the site. This means that words like TechCrunch or Flickr, which are commonly used but aren’t in the dictionary (yet), can be quickly found and added to a custom dictionary.

I ran TechCrunch.com through a trial run, and the results were promising. Error flagging worked very well, with different colors to distinguish between possible errors and obvious typos. And the site’s main dashboard, which links to each error, made navigating across hundreds of pages surprisingly painless.

Unfortunately the site is still very much a beta, so we won’t be implementing the service any time soon. Custom dictionaries don’t work yet, and the system doesn’t offer any way to omit user comments from the search (we wound up with over 20,000 flagged errors because of this, though we made a few mistakes ourselves…). Spellr.us says that all of these features will be introduced by the general release. Grammar checking is also on the horizon, though a concrete date hasn’t been established.

Other players in this space include web tool supplier NetMechanic and TextTrust, which uses a combination of human and automated spellcheckers.

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CrunchGear’s Doug Aamoth is currently liveblogging from the Apple Store on Commonwealth Avenue in Boston. The line is now a mile long and growing. Yes, folks: This is a line to go into an Apple store in Boston. They’re not even announcing a 3G iPhone. More as we get it.

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Yeah that’s right. I have a puppet parody now, too. This is pretty tame stuff compared to the hit job Loren did on Shel israel. Before you hit play, note that there is some offensive language in the video, referring to our recent dispute with Wired.

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Internet marketing is big money, and so is the $12 million recently raised by HubSpot, a consultancy and software provider for sites looking to improve their visibility online.

The Series B round led by Matrix Partners comes on top of the $5 million raised from General Catalyst Partners last September, bringing the company’s grand total to over $17 million.

In addition to providing paid SEO services, HubSpot offers a free search optimization tool called Website Grader that will automatically assess your website, score it on a 1-100 scale, and show you where to make changes that will get it in front of more eyeballs. The tool claims to have assessed over 300,000 sites, and your score on the 1-100 scale represents the percentage of those sites that your site tops (kind of like the SAT).

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Israeli startup PopTok has done a brave thing. It’s created a plugin that combines emoticons and movie quotes (which, used in excess, are two of the most annoying things known to man). The plugin is currently Windows only, offering support for AIM and MSN Live Messenger with more protocols on the way.

The JVP Studio-funded startup wants to replace emoticons as we know them with short snippets of Hollywood movies, television, and music videos. After downloading the PopTok client, users can choose from hundreds of clips which have been culled from such quotable classics as “The 40 Year-Old Virgin” and “Austin Powers”. The site has formed partnerships with a number of studios, so all of this is done legally.

Unfortunately, PopTok is going to run into a number of problems. Only users that have installed the PopTok plugin can see clips immediately - everyone else just gets a link to a page that shows the movie. It’s unlikely that many people will take the time to open their browsers for a three second payoff, so the program is going to have a hard time gaining traction.

PopTok is fun at first, but I’m afraid it has the potential to be one of the more annoying plugins on the web (if any of my friends start to use it often, I’ll probably block them). That said, I’m probably not the program’s target audience. Instead, PopTok seems geared towards the tween and teen markets, which are far more likely to embrace this sort of thing. If the program can get a sizable user base in the youth market then it stands a chance at saying, “Show me the money!”, otherwise I’m afraid it’ll be “Hasta la vista, baby.”

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Update: More details here.

Facebook is all about openness and data portability, as long as that doesn’t involve openness or portability of data, it seems.

Today they wrote a long 7 paragraph blog post to get a single point across: Facebook has banned Google’s Friend Connect access to the Facebook API:

Now that Google has launched Friend Connect, we’ve had a chance to evaluate the technology. We’ve found that it redistributes user information from Facebook to other developers without users’ knowledge, which doesn’t respect the privacy standards our users have come to expect and is a violation of our Terms of Service. Just as we’ve been forced to do for other applications that redistribute data in a way users might not expect or understand, we’ve had to suspend Friend Connect’s access to Facebook user information until it comes into compliance. We’ve reached out to Google several times about this issue, and hope to work with them to enable users to share their data exactly when and where they choose.

This of course has nothing to do with the fact that Facebook launched their own nearly identically named product called Facebook Connect three days before Google’s Friend Connect.

It’s not clear exactly what features of Friend Connect justified the ban, since it is so similar to what Facebook announced on Friday. Both products allow the export of profile and friend list data to third party websites.

In the last paragraph of the blog post, Facebook says they want to work with everyone: “We think MySpace’s Data Availability, Google Friend Connect, and Facebook Connect can be part of a great movement in the industry to give users a better and safer experience online, while respecting user privacy. We look forward to working with our developer community and everyone else in the industry to help all of our users take their information, and their privacy, with them wherever they go.” If that’s the case, this sure is an interesting start to a healthy working relationship with Google. Next up on the block list: MySpace and their Data Availability malware product, no doubt.

Thanks for the tip, Jesse.

Update: Facebook PR is pointing out Sections 2B(4), 2B(5) and 2A9(vi) of the Developer Terms of Service:

4) You may not store any Facebook Properties in any Data Repository which enables any third party (other than the Applicable Facebook User for such Facebook Properties) to access or share the Facebook Properties without our prior written consent.

5) You may not sell, resell, lease, redistribute, license, sublicense or transfer all or any portion of the Facebook Properties, or use or store any Facebook Properties for any purpose other than as specifically authorized herein.

You will not use Facebook Platform or any of your Facebook Platform Applications, and your Facebook Platform Application will not be designed…(vi) to request, collect, solicit or otherwise obtain access to usernames, passwords or other authentication credentials from any Facebook Users, or to proxy authentication credentials for any Facebook Users for the purposes of automating logins to the Facebook Site.

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• 1999: CNET is a $12 billion company
• January 2000: CNET Aquires MySimon for $700 million
• October 2000: CNET Acquires Ziff Davis (ZDNet) for $1.6 billion (after the March 2000 stock crash)
• July 2004: CNET Acquires Webshots for $70 million
• October 2007: CNET Sells Webshots for $40 million
• May 2008: CBS Acquires CNET For $1.8 billion

CNET announced its sale to CBS, a $16.5 billion company, today for $1.8 billion. In late 1999, though, CNET was a $12 billion company. They subsequently acquired MySimon for $700 million and ZDNet for $1.6 billion, and it’s been all downhill for CNET’s market cap since then.

So why didn’t CNET continue to grow and ultimately take over a media dinosaur like CBS, instead of the other way around? Perhaps it was because they did deals like buying Webshots for $70 million and then a couple of years later selling Webshots for $40 million. Or perhaps it was because they failed to realize the importance of blogs until 2007. Whatever the cause, or causes, CNET failed to disrupt the old guard, and will find itself to be a footnote in Internet history rather than the headline it should have been.

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Israeli paper The Marker is reporting (in Hebrew) that one of the Metacafe founders who recently cashed out and left has turned his attention to business recruitment technology.

Arik Czerniak is now working on Clear Applications, a company that he co-founded seven months ago with two other Metacafe ex-employees, Oren Blatt and Gil Solomon. The startup is developing analytics tools that will help medium and large-sized businesses filter through thousands of job applications and identify those candidates with the best personal and cognitive skills.

Blatt, a former fighter pilot for the Israeli air force, holds the position of CEO. The company reportedly has six employees and is self-funded. No word yet on when they might launch their product, but it’s definitely not imminent; the Clear Applications website still points to a parked page.

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