Tag Archive for AOL

Web Pioneers AOL and Yahoo Liquidated by Verizon

Web Pioneers AOL and Yahoo Liquidated by VerizonWeb pioneers AOL and Yahoo have been sold. Verizon sold the two early Internet powerhouses to the private equity firm Apollo Global Management. For these once tech titans, the deal represents a failure to adapt and thrive as the internet evolved. A history of missteps and bad timing leads both AOL and Yahoo to be sold for 10% of their peak values

America Online

AOL, founded in 1991 as a BBS for Commodore 64 computers, went public in 1992. Estimates put AOL’s value at $226 billion by 2001. Over 35 million users accessed the Internet via AOL. The firm had a history of preventing users from canceling their subscriptions. In 2001 America Online bought Time Warner for $182 billion in cash and stock. The move buried the company in debt just before the dotcom bubble burst and the rise of broadband made AOL’s dial-up services virtually obsolete. AOL languished until Verizon bought the property in 2015 

Yahoo

Yahoo (YHOO), founded in 1994 had 3 billion users at its peak. It had total revenue of over $1.8 billion at its peak in 2008. Yahoo has a history of misses as well. In 1999 it spent nearly $10 billion to buy GeoCities and Broadcast.com, both of which the company eventually shut down. It spent $1.1 billion on Tumblr in 2013 and sold it for less than $3 million in 2019. The Internet pioneer rejected a $44.6 billion takeover offer from Microsoft in 2008, only to sell to Verizon for 10% of that value less than ten years later. Yahoo has the dubious honor of enabling the largest know data breach – leaking all 3 billion accounts. Verizon bought Yahoo in 2017 for $4.5 billion.

Verizon (VZ) sold the Verizon Media group for $4.25 billion in cash and a 10% stake in the new company. The former internet empires will be rebranded “Yahoo,” according to the announcement. Verizon said they expect the sale to close in the second half of 2021. The sale includes online news outlets TechCrunch, Yahoo Finance, and Engadget.

Verizon is cutting its losses

The deal values the former powerhouse businesses at significantly lower prices than Verizon paid just a few years ago.

David Sambur, co-head of private equity at Apollo, said in a statement that touted the company’s strong recent recovery from last year’s lows in CEO-speak;

We are big believers in the growth prospects of Yahoo and the macro tailwinds driving growth in digital media, advertising technology, and consumer internet platforms.

The deal is Verizon’s latest step toward exiting the media market. Verizon sold HuffPost to BuzzFeed last year. it also shut down other popular properties including Yahoo Answers.

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Call me cynical, but what happens to the few remaining staff? The PE playbook says to remove assets and pump in debt to either spin out the remains in an IPO or go bankrupt and write off the debt in a fire sale. Meanwhile, Verizon Media CEO Guru Gowrappan gets to keep his CEO position at the new Yahoo.

Hopefully, Verizon will focus on its core wireless networks business and other internet provider businesses. Opensignal reports that 5G connections are still rare for U.S. consumers. They found that users connected to mmWave 5G less than 1% of the time. Verizon was the “best” for a time connected – a whopping 0.8%, compared to 0.5% for both AT&T and T-Mobile users. 

Yahoo and AOL were early tech titans as the consumer internet formed, but have now fallen into the hands of private equity.

Stay safe out there!

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

RIP Yahoo Messenger

Do yRIP Yahoo Messengerou remember Yahoo Messenger? It was popular in the late ’90s and early 2000s when there were only two messengers to communicate with your friends and family. Well … the remnants of Yahoo nee Verizon recently announced the end of Yahoo Messenger. Verizon (VZ)/Yahoo announced that they will disable the Yahoo Messenger service after July 17th, 2018. (rb- yes Yahoo Messenger was still a thing – in the face of Apple‘s (AAPL) FaceTime, Telegram, Snapchat, and Facebook‘s (FB) WhatsApp).

Yahoo MessengerAccording to the Oath website, YIM had 122.6 million users at its peak. In the FAQ announcing the shutdown, Yahoo said, “We know we have many loyal fans who have used Yahoo Messenger since its beginning  … As the communications landscape continues to change over, we’re focusing on building and introducing new, exciting communications tools that better fit consumer needs.” If you’re looking for a Messenger replacement from Yahoo, they recommend Squirrel, which is in closed beta and by invite only. But why?

YIM leaves a dubious security legacy, as all “free” web products do. In 2007 there were reports that up to 75%  of the users in Yahoo Messenger were SPAMBots. In 2010 all Yahoo systems and customer email accounts were hacked by the Chinese military in “Operation Aurora.” In Operation Aurora the Chinese also attacked Adobe (ADBE)Dow Chemical, Google (GOOG) Juniper Networks (JNPR)Morgan Stanley, Northrop Grumman (NOC)Rackspace (RAX), and Symantec (SYMC).

In 2014 The Guardian reported that The British intelligence agency Government Communications Headquarters (GCHQ)’s secret mass surveillance program Optic Nerve and National Security Agency (NSA) were indiscriminately collecting still images from Yahoo webcam streams from millions of mostly innocent Yahoo webcam users, among other things creating a database for facial recognition for future use. Optic Nerve takes a still image from the webcam stream every 5 minutes. Also in 2014 Yahoo was also hit by a hack that affected around 500 million people.

mass surveillanceIn September 2016, The New York Times reported that Yahoo’s security team, had pressed for Yahoo to adopt end-to-end encryption sometime between 2014 and 2015, but senior leadership resisted, “…because it would have hurt Yahoo’s ability to index and search message data.”

In 2017 Yahoo announced that all of its customer’s accounts were compromised. Allegedly Yahoo did not detect the full extent of the 2013 hack until  4 years later. In 2017, Yahoo announced that all 3 billion accounts were compromised.

YouYahoo can download your chat history for the next 6 months at this download request site. Yahoo will email your chats to you. If you have anything you want to save from Yahoo Messenger, it’s a good idea to get a copy, because users will be unable to sign in to the service after July 17th.

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YIM is not the first long-standing chat app to shut down – AOL Instant Messenger shut down December 15, 2017. But Yahoo Messenger was one of the few old-school messaging services left.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedIn, Facebook, and Twitter. Email the Bach Seat here.

OMG Texting b 25 !

OMG Texting b 25 !This week marks the 25th birthday of text messages. Texting is more properly known as SMS. On Dec. 3, 1992, 22-year-old Sema Group software architect Neil Papworth typed the first SMS (Short Message Service) message, “Merry Christmas” on a computer and sent it over a  GSM network in the UK, to an Orbitel 901 handset owned by then-Vodafone director Richard Jarvis.

 SMS serviceIn 1993, a year after the first text message was sent, Nokia (NOK) set up the first commercial SMS service in Finland. Nokia was the first handset manufacturer whose total GSM phone line supported users sending SMS text messages. In 1997, Nokia became the first manufacturer to produce a mobile phone with a full keyboard: the Nokia 9000i Communicator.

Texting adoption

SMS adoption was slow at first, with only 0.4 text messages sent per month in 1995. The fact that UK users could only send SMS messages to those on the same network was a big problem until the restriction was lifted in 1999.  However, as smartphone technology developed and text messages became easier to use, SMS popularity ballooned. As mobile phones became more popular, texting skyrocketed. By 2007, the Brits were sending 66 billion SMS messages a year and in 2012, they sent 151 billion texts.

Nokia 9000i CommunicatorIn the U.S. SMS was slower to catch on, mainly because mobile operators charged more for texts and less for voice calls, and because of the popularity and availability of PC-to-PC instant messaging or IM. However, in the United States, 45 billion text messages were sent per month in 2007, a figure that became 167 billion per month in 2011. In June 2017, 781 billion text messages were being sent in the United States per month according to the experts.

U.S. Texts Sent

MonthNumber of Text Messages Sent Each MonthIncreased Number of Text Messages Sent YoY% Increased Number of Text Messages Sent YoY
June 2017
781.000,000,000147,000,000,000431.3%
June 2016634,000,000,00073,000,000,000768.5%
June 2014561,000,000,00063,000,000,000790.5%
June 2013498,000,000,00075,000,000,000564.0%
June 2012423,000,000,00056,000,000,000655.4%
June 2011367,000,000,000126,000,000,000205.8%
June 2010247,000,000,00086,000,000,000187.2%
June 2009161,000,000,00086,000,000,00087.2%
June 200878,000,000,00030,000,000,000150.0%
June 200745,000,000,00032,500,000,00038.5%
June 200612,500,000,0005,250,000,000138.1%
June 2005
7,250,000,0004,390,000,00065.1%
June 20042,860,000,0001,660,000,00072.3%
June 20031,200,000,0002270,000,000344.4%
June 200133,000,00021,000,00057.1%
June 200012,000,000
Text Message Statistics – United States from Statistic Brain (www.statisticbrain.com)

With 25 years under its belt, many people wonder if the end of the line is near for SMS. This is because apps such as Apple‘s (AAPL) iMessage, Google‘s (GOOG) Hangouts, Facebook‘s (FB) Messenger, WhatsApp, and SnapChat have become very popular.

Closed systems

Chat applicationThese new chat applications also marked a more fundamental shift away from an open standard that anyone could use (even if your operator charged you) to closed messaging systems controlled by technology giants. Text messages, however, might not be going away soon. SMS is a very practical and easy-to-use communication method, especially for areas and countries that do not have reliable internet connections.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Chatbot Risks

Chatbot RisksChatbots are the latest rage on social media. As Time explained, they have been around since the 1960s. That’s when MIT professor Joseph Weizenbaum created a chatbot called ELIZA. Chatbots found a home on desktop messaging clients like AOL Instant Messenger. Chatbots went dormant as messaging transitioned away from desktops and onto mobile devices.

Sophiscated botBut they’re poised for a resurgence in 2016. There are two reasons for this. First, artificial intelligence and cloud computing has gotten better thanks to improvements in machine learning. Second, bots could be big money.

Tech titans have chatbots on social media

All the tech titans have released social bots on the web; Apple’s (AAPL) Siri, Facebook’s (FB) “bots on Messenger“, Google’s (GOOG) Allo, and Microsoft’s (MSFT) ill-fated Tay. They believe there’s a buck to be made here, and they’re scrambling to make sure they don’t get left out.

Social botThe July issue of the Communications of the ACM included an article, “The Rise of Social Bots,” which lays out social bots’ impact on online communities and society at large. The authors define a social bot as a computer algorithm that automatically produces content and interacts with humans on social media, trying to emulate and possibly alter their behavior.

The Business Insider published this infographic about the social bot ecosystem.

Business Insider infographic

Chatbots can be deceptive

The ACM article argues that social bots populate techno-social systems; they are often benign, or even useful, but some are created to harm by tampering with, manipulating, and deceiving social media users. The article offers several examples of how social bots can be a hindrance. The first example involves the Twitter (TWTR) posts around the Boston Marathon bombing. The researcher’s analysis found that social bots were automatically retweeting false accusations and rumors. The researchers argue that forwarding false claims without verifying the false tweets granted the false information more influence.

bots can artificially inflate political candidatesThe ACM article also discusses how social bots can artificially inflate political candidates. During the 2010 mid-term elections some politicians used social bots to inject thousands of false tweets to smear their opponents. This type of activity puts the integrity of the democratic process at risk. These types of attackers are also called astroturfing, or twitter-bombs.

Anti-vaxxer chatbots

The article offers another example of the use of social bots to influence an election in California. During the recent debate in California about a law on vaccination requirements there appears to be widespread use of social bots by opponents to vaccinations. This social bot interference puts an unknown number of people at risk of death or disease.

bot provoked stock market crashGreed is the most likely use of social bots. One example from the article is the April 2013 hack of the Twitter account of the Associated Press. In this case, the Syrian Electronic Army used the hacked account to posted a false statement about a terror attack on the White House which injured President Obama. This false story provoked an immediate $136 Billion stock market crash as an unwarranted result of the widespread use of social bots to amplify false rumors.

Chatbots manipulate social media reality

Research has shown that human emotions are contagious on social media. This means that social bots can be used to artificially manipulate social media users’ perception of reality without being aware they are being manipulated. The article says the latest generation of Twitter social bots has many “human-like” online behaviors that make it difficult to separate bots from humans. According to the authors, social bots can:

  • Search the web to fill in their profiles,
  • Post pre-collected content at a defined time
  • Engage in conversations with people,
  • Infiltrate discussions and add topically correct information.

Some bots garner attention.Some bots work to gain greater status by searching out and following popular or influential users or taking other steps to garner attention. Other bots are identity thieves, adopting slight variants of user names to steal personal information, picture, and links.

Strategies to thwart bad chatbots

The authors review several attempts to thwart these growing sophisticated bots.

1. Innocent-by-association – This theory measured the number of legitimate links vs. the number of social bots (Sybil) links a user has. This method was proven to be flawed. Researchers found that Facebook users are pretty indiscriminate when adding users. The article says that 20% of legitimate Facebook users accept any friend request and 60% accept friend requests with only one contact in common.

2. Crowdsourcing – Another approach to stop social bots is crowdsourcing. The crowdsourcing approach would rely on users and experts reviewing an account. The reviewers would have to reach a majority decision that the account in question was a bot or legit. The authors pointed out some issues with crowdsourcing.

  • It will not scale to large existing social networks like Facebook or Twitter.
  • “Experts” need to be paid to check accounts.
  • It exposes user’s personal information related to the account to unknown users and “experts.”

3. Feature-based detection is the third method the researchers noted by the authors. Feature-based bot detection uses behavior-based analysis with machine learning to separate human-like behavior from bot-like behavior. Some of the behaviors that these types of applications include:

  • The number of retweets.
  • Age of account.
  • Username length.

4. Sybil until proven otherwise – The Chinese social network RenRen uses the fourth method noted by the author. This network uses a “Sybil until proven otherwise” approach. According to the article, this approach is better at detecting unknown attacks, like embedding text in graphics.

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Use your brainWhile people’s ability to critically assimilate information, is beyond technology, the authors call for new ways to detect social bot-generated spam vs. real political discourse.

The researchers speculate there will not be a solution to the social bot problem. The more likely outcome is a bot arms race, like what we are seeing in the war on SPAM and other malware.

Related articles
  • Man vs. Machine: What do Chatbots Mean for Social Media? (blogs.adobe.com)

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Email Etiquette is Good For You

Email Etiquette is Good For YouWho remembers when email was a new and exciting technology that the Intertubes brought us? Did AOL’s You’ve Got Mail! Make you giddy? They made a whole chick-flick about it starring Tom Hanks and Meg Ryan. I am pretty sure that thrill has worn off by now. According to marketing researchers, the Radicati Group predicts that by 2015 the average email user will send or receive 125 emails a day. Many of the emails are loaded with threats as I have pointed out here again and again. The ubiquity of email has caused some users to take email for granted and let their guard down.

2015 the average email user will send or receive 125 emails a dayRelaxed vigilance has led to some high-profile incidents where sensitive business information was exposed via email. Research indicates that at least 22% of companies have experienced an accidental or malicious leak of sensitive or confidential information by employees through email in the past 12 months. While it is may be bad for the firm, it could cost you your job. Here are some tips which will make your emails more effective and more secure:

Treat emails like business letters

It’s better to be more formal than too casual when you want to make a good impression. For example, use a person’s surname until they respond by signing their email with their first name. Never write anything in an email message that you wouldn’t want both your boss and your mom to read!

Company email is never private

If you want to Treat emails like business letterssend someone confidential or time-sensitive information, use the phone or meet in person. Emails can be duplicated, forwarded, and printed; anything unfortunate you write could come back to haunt you or your employer. Never use your employer’s email system to look for your new job. That move could cost your current job and the next one too.

Be cautious about the “reply all” feature

If you receive an email that was sent to a multitude of people, including yourself, reply only to those who need a response. Hit “reply all” only if it is crucial that every person on the distribution list see your response. In many cases, the sender is the only person who requires a response. Misuse of “reply all” is a key way in which sensitive business data slips outside the network.

Take care with email attachments

Never open attachments from unknown sourcesNever open attachments from unknown sources. And before sending attachments yourself, find out if the recipient wants them. Bogus attachments remain one of the most popular ways for cyber-attackers to gain a foothold in business networks, and it’s very easy for hackers to imitate legitimate email addresses.

This infographic includes some pretty amazing stats about email. Did you know?

  • The average user creates 5,000 email attachments every year?
  • There are 6 copies of each attachment made?
  • The government reads over 250 million emails annually?

That is why email etiquette is important.

Data Running Wild Infographic

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.