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Seth MacFarlane is the genius behind News Corp.'s (NYSE: NWS) Family Guy animated television series. But why should News Corp. have all the fun programming cool content? That's apparently what Google Inc. (NASDAQ: GOOG) was thinking when it signed up Seth MacFarlane to produce a series of short animated clips for the Google Content Network.

According to The New York Times, MacFarlane has created something called Seth MacFarlane's Cavalcade of Cartoon Comedy. Little two-minute clips will be distributed to various websites that key in on the youthful male demographic which loves Family Guy. When users click on the clips, they will perhaps see an ad before the thing starts or some sort of banner attached to it. They might also simply see the name of the presenting sponsor before watching. Google will split monies generated by the ads with MacFarlane, the website that features the clip, and Media Rights Capital, the entity which sells the inventory.

I love the idea of the Google Content Network and I think that, over time, it should be a great success, but as with any novel platform, it all comes down to the word in the middle -- content. Google will live and die by the quality of the content because, although lesser-quality stuff might still find an audience in other mediums, the web has such intense competition for eyeballs that have minuscule attention spans. If the clips don't grab the viewer right away, then the ad inventory won't be as valuable to the buyers.

Yahoo's (NASDAQ: YHOO) embattled management and board have one month left to prove to shareholders that they made the right call in rejecting Microsoft's (NASDAQ:MSFT) bid. With shares trading at about $20, they are going to have to do some fancy footwork to show why rejecting a $31to $33 per share offer was actually good for shareholders.

Yahoo is trying to convince investors that a proposed 'search' deal with Google (NASDAQ:GOOG) will provide the growth needed to restore Yahoo to previous glory. According to an AP report: " By relying on Google's superior technology to show some of the ads alongside its search results, Yahoo believes it can increase its annual revenue by about $800 million and generate another $250 million to $450 million in annual cash flow."

Keep in mind that since the Microsoft deal fell apart, Yahoo has lost more than $16 billion in market cap. It is going to have to generate a lot more in revenues to show that they made the right choice.

My other problem is that I have many friends who over the last week have told me they can't access their Yahoo mail or open up their saved stock portfolio's on Yahoo Finance. I, personally, have been locked out for two days.

Warner Music Group (NYSE: WMG) has asked CBS Corporation's (NYSE: CBS) free on-demand music streaming service Last.fm to remove the label's music from the site "in an apparent dispute over compensation rates." Billboard reports that CBS is "currently negotiating a new agreement with Warner Music Group and are working hard to built the most comprehensive music service on the Web." Music from Universal Music Group, Sony BMG Music Entertainment, EMI Group, and various independent labels remains on Last.fm, and the site's Internet radio service still offers songs from WMG artists.

CBS purchased British-based Last.fm a year ago for $280 million, and WMG was the first major label to sign with Last.fm in February 2007. According to Billboard, WMG had continued to keep music with Last.fm "on a month-to-month basis" after the original deal lapsed. Unlike paid subscription-based services, Last.fm and other free services offer consumers music without charge, and are ad-supported. News Corp.'s (NYSE: NWS) MySpace will soon be starting it's own similar service, which will tap into the social networking site's large user base.

Billboard also reports that WMG had grown "disenchanted with Last.fm's compensation rates" after comparing the rates to other services like the forthcoming MySpace Music. In addition, WMG "owns equity stakes in MySpace Music" and "has been frustrated by Last.fm's failure to proceed with its plans to launch a music subscription service." Paid subscription services have been being pushed by the music labels over other sites and stores like Apple Inc.'s (NASDAQ: AAPL) iTunes Store because they offer better profits for the labels. Mobile phone services have started to tap into this very service, offering consumers music and players on new phones developed for that very purpose.

This post is part of a series on some of the most memorable companies that have disappeared.

What goes up, must come down. It was a cute ad. Who knew it would turn out to be so prophetic?

Pets.com will go down in history as a textbook example of dot-com flame-out, going from IPO to liquidation in nine short months.

Founded in 1998, the company, which had the bright idea of selling pet food and supplies to the public via the internet, went public in February 2000 and raised $82.5 million.

In a keynote presentation at the Music Matter conference in Hong Kong today, Billboard reports U2's longtime manager Paul McGuinness called for Internet service providers to stop "clinging to the past and preventing the music industry's future growth." He feels that ISPs and the music business should have "a real commercial partnership" where revenues and profits are "fairly shared" and actively prevent copyright infringement together. This is not the first time McGuinness has called out ISPs for detrimental actions toward the music industry. He used another keynote speech in January for this same theme: that ISPs work against the music industry by providing safe harbors for users who share music illegally.

In McGuinness's opinion, the music industry is charting a "way to the future" but the kind of future he describes is not too different from the music industry that caused piracy to become such a problem. Instead, he calls "Internet free-thinkers" today's business "dinosaurs" because they hold an apparently appalling view of copyright management. Above the lofty goal of eliminating piracy, these words still sound greedy and money-based before anything else.

It's the same old problem for the music industry and the managers of the artists in that business. The average consumer just wants an easy way to obtain and enjoy the product. Unfortunately, piracy has provided that method and only recently has the music industry started to understand and rethink business methods to combat the issue. McGuinness is at least correct in stating that artists should not be simple employees, but if their product is better managed by other methods, then why not leave the music industry behind? Touring promoter Live Nation (NYSE: LYV) is obviously charting a path outside the industry that is very lucrative for artists and their management. U2 recently signed a deal with the company for this very reason.

Live Nation (NYSE: LYV) has secured a deal with Facebook and created an application for the social-networking site to sell concert tickets and promote concerts that may interest users. In addition, according to Variety, the application brings the "My Live Nation" global concert search engine into Facebook and allows users to sync the new application with their music library to receive concert updates automatically. Wired reports that the Live Nation application does not, however, link directly with your Apple Inc. (NASDAQ: AAPL) iTunes library or another third-party program, instead giving the user the option of pointing toward a library or not.

It's no surprise that one of the largest concert promoters has moved in with one of the top social-networking sites. Given that Live Nation is no stranger to wide exposure, the number of users on Facebook who may already be familiar with the promoter is likely to be significant. Instead, the aspects of Live Nation's application that allow users to share upcoming concerts and shows they are either attending or would like to attend should increase awareness of local and regional concerts -- at least on Facebook.

Not a bad idea in the end, even if it is some form of viral marketing like the cited Wired and Variety articles claim. It's not like Facebook is not already being used to market and sell music in other forms; the TuneSocial program basically advertises albums users are listening to, and iLike streams tracks that users enjoy. Live Nation offers the next logical step with concerts but directly connects users with the ability to purchase tickets and boast or share with friends.

In what looks to be a pretty desperate attempt to revive its failing business, Borders Group Inc. (NYSE: BGP) has officially cut its ties with Amazon.com (NASDAQ: AMZN) and launched its own e-commerce website. Under the previous arrangement, shoppers at Borders.com had their orders fulfilled by Amazon, with Borders taking a small commission.

Check out the site here. It offers some great incentives to switch over from Amazon -- like free shipping on orders over $25! Oh wait. Amazon and Barnes & Noble (NYSE: BKS) already offer the exact same deal. Never mind.

Borders invested a lot of money in developing a site with no particular competitive advantages. Most Amazon customers are pretty happy with the service they get, and I just don't see any reason for anyone to switch. The duplication of effort probably makes Borders less attractive to potential strategic buyers like Barnes & Noble, which might have preferred that the company pay down debt instead of building another website.

So the big news on Thursday was CBS' (NYSE: CBS) hefty $1.8 billion purchase of CNET (NASDAQ: CNET). Douglas McIntyre already explained why this was such a "weird deal" in an excellent article that you can read here. I'd like to expand on that thinking a bit by asking if it should have been Viacom (NYSE: VIA), as opposed to CBS, in the buying seat.

Remember "old Viacom"? Old Viacom was composed of CBS and "new Viacom", the latter being the Viacom of today. I know, confusing, but that's how things are when a big media conglomerate splits in two. Anyway, there was a general mandate given to both companies, one that basically stated the logic of CBS being an entity that focuses on cash flows and dividend increases while new Viacom would focus on acquisitions to promote capital appreciation of the company's stock. Sure enough, the yield on CBS tells the tale perfectly.

So, I have to ask, what gives? I mean, a check of CBS' latest 10K shows that the broadcaster generated $2.2 billion in operational cash flow in 2007. I think paying $1.8 billion for anything, let alone a questionable asset vis a vis CBS' core media competencies, might be too much given CBS' mission to return a lot of value to shareholders over the long-term in the form of dividends.

It's pretty rare that a victory in a $230 million lawsuit is only a moral victory, but Myspace, which is owned by News Corp. (NYSE: NWS), has won just such a case.

The company sued Sanford Wallace and Walter Rines for spamming the social networking site's users with phishing schemes and links to websites offering merchandise for sale or paid advertising. A federal judge in Los Angeles ruled in favor of MySpace after the con-men failed to show up for a hearing.

Why are the damages so high? CAN-SPAM, a 2003 law, entitled providers to $100 in damages for every spam message sent -- and the amount triples when the spam is sent "willfully and knowingly."

Perhaps this will send a message to would-be spammers that they shouldn't mess with MySpace. But the spammers are nowhere to be found, and it's hard to imagine that they have anything like $230 million to pay the judgment, or even the $4.7 million in attorneys fees that the judge awarded MySpace.

The BBC reported on Saturday that demands are being made for careful government scrutiny of any potential alliances between Internet giants Yahoo Inc. (NASDAQ: YHOO) and Google Inc. (NASDAQ: GOOG).

According to the BBC report, a coalition of activist groups including the Black Leadership Forum, the League of Rural Voters, the National Black Chamber of Commerce, and the American Agriculture Movement, is concerned that allowing any kind of unregulated working relationship between Yahoo and Google could put Internet neutrality in serious jeopardy. Gary Flowers, representing the Black Leadership Forum, is quoted by BBC as stating, "We all suffer in such mega mergers." He further stated that the nature of such a partnership could "condense competition, increase prices and limit new business opportunity on the Internet."

The BBC indicates that the Justice Department is already in the process of reviewing joint operation trials that the two companies have engaged in. However, the department seems to be down playing the citizen coalition's demands, citing that the two companies have no working agreements to address. At a recently held Google shareholders meeting the matter was addressed by Chairman Eric Schmidt who stated, "If there were a deal [with Yahoo], we would anticipate structuring the deal to address the antitrust concerns that have been widely discussed."

I would tend to echo the valid concerns of Gary Flowers: too much control over Internet communications by any one particular entity or alliance would inevitably be bad for all of us. I think the matter needs to be taken to a broader base of examination than the justice department alone can provide.

The dust is settling after the withdrawn purchase offer of Yahoo Inc. (NASDAQ: YHOO) by Microsoft Corporation (NASDAQ: MSFT). During that fascinating process, speculation ran high as to why Steve Ballmer chose the strategy that he did. People were asking what the probable outcomes could be and what would possibly be created by the acquisition. What I have found to be lacking in the realm of the public keyboard is a synopsis of what exactly Steve Ballmer has accomplished through this seemingly fruitless process.

Industrial progressive rock band Nine Inch Nails have made another album available to fans and listeners for free this morning. The Slip, the band's first new album in two months, and third in the past year, was posted on a new website for fans to download free of charge. The move comes directly from front man Trent Reznor as a thank you to fans for their "continued and loyal support over the years."

Billboard called the release "a surprise move" but given Reznor's stance in the last year about the music industry and dislike of overpricing it is not all that surprising. It's also not the first time he has released an album this way. In March, Ghosts I-IV was released nearly identically as The Slip. The new album will also only initially be available from the band's website, but will see a future "traditional" physical release on CD and vinyl. Ghosts I-IV was released on CD and other physical formats about a month after it was first released in early March.

I have to say once again (like so many of the other recent Internet only album releases) that this is another great thing for the music industry. Although Reznor and NIN are essentially independent artists now without the backing of a major labor group, it does show that music does not have to be about making as much money as possible. At the end of the day though, neither Reznor nor NIN are probably going to suffer financially from the move, but that might just show us how much the music industry does not have to lose.

Once again investors get left holding the bag.

Microsoft (NASDAQ: MSFT) shareholders should breathe a sigh of relief for not overpaying for an internet search company, Yahoo (NASDAQ: YHOO) where CEO Jerry Yang let his ego get in the way of handsome profits. Yang rejected the $47.5 billion offer that Microsoft put on the table. Why? Because he thought the company is worth more than $50 billion. As reported by the AP: "Clearly there's frustration," said Darren Chervitz, co-manager of the Jacob Internet Fund, which owns Yahoo stock. "I am not even sure if Yahoo cares about its shareholders because they didn't show much regard for shareholders' best interests in this process."

Yang actually thinks that a more sophisticated advertising platform is the secret sauce needed to produce a spike in revenue growth. Keep in mind that revenue grew by only 12% last year, and there is no indication that that number is going to be much higher in '08. Yang thinks that he will be able to grow revenue's by 25 percent in 2009 and 2010. Uh Huh!

I think that today's selloff in Yahoo stock will be an indication of what the public thinks of Yang's plan.

Could it be that in the long run he will be proved correct? I doubt it but only time will tell.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 5/5/08.

Microsoft (NASDAQ: MSFT) may be much better off by not overpaying for Yahoo! (NASDAQ: YHOO). To pay almost $45 billion for a company that's really struggling seems extreme -- especially since I think Time Warner (NYSE: TWX) will spin out AOL in a few months. Microsoft could buy AOL much, much cheaper than Yahoo.

AOL brings to the table both traffic and many properties, including BloggingStocks! The problem is that revenue is declining and so are unique visitors, down from 110 million average unique visitors in the fourth quarter, to 109 million in Q1.

I think that with Microsoft's focused management, it could achieve the same turnaround at AOL that it is anticipating achieving with Yahoo, only it would not have to spend $45 billion.

Some analysts have said that AOL is a consolation prize for the loser in the Yahoo! battle. I think Yahoo! is the booby prize and AOL might just be the better deal.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 5/1/08

The recently reported three day e-mail blackout experienced by the consumer internet customers of Hughes Communications Inc. (NASDAQ: HUGH) has ended. Although the system has not swung over to its new enhanced version, it appears that Hughes technical staff has opted to reawaken the previous e-mail application to restore that service to its customers. Personal comment from the company regarding this situation was unavailable as of this writing.

What little preview I received of the attempted e-mail upgrade by HughesNet was enticing. It looked streamlined, intuitive and was definitely appealing to the eye. When the company completes its adjustments and makes the hoped for upgrade available, I'll provide my full assessment of the new service for our readers.