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Low blood sugar brought down Rackspace websites

Jordan Golson · 11/13/07 06:06PM

After Rackspace experienced two power issues Sunday and Monday, a truck collided with a power transformer on the side of its Dallas-area data center in Grapevine, Texas. As a result, power was lost again. Two of the chillers that keep the servers cool failed to restart and a number of servers were taken offline to prevent heat damage. As far as we know, all servers are back up and functioning and Rackspace is very apologetic. Now, everyone is asking "how did this happen?" The short answer: Low blood sugar. Find out more sweet details after the jump.

Pay By Touch CEO a convicted felon

Nicholas Carlson · 11/12/07 02:04PM

Pay By Touch CEO John Rogers is more than just financially and morally bankrupt. He's also a convicted felon. It's a tiny little fact Rogers never managed to tell Pay By Touch's investors, raising the possibility he could be convicted of fraud. Here are his conviction papers, provided by a tipster. We're also hearing that Rogers might have had an addiction that kept him out of the office for weeks at a time, but we're still looking for the smoking gun on that. Let us know if Rogers buried it in your back yard.

Screenshots of first Googlephone app

Owen Thomas · 11/07/07 08:25PM

Remember WhatsOpen.com, the stealth search startup that piqued Google cofounder Sergey Brin's interest last month? Brin was so intrigued he told the founders to keep the company hush-hush. Now, however, a source has leaked screenshots of WhatsOpen's secret project. The company has a Web application which shows users nearby stores and their operating hours — "what's open." Click to viewBut I'm told by a source that WhatsOpen has also written the first wireless app for Google's new Android operating system. (You may know Android better as the software behind the still-mythical Googlephone.) Demo screenshots after the jump.

Digg close to a $300 million sale?

Owen Thomas · 11/07/07 04:43PM

Digg is close to announcing its sale to a major media player for $300 million to $400 million, according to sources close to the company, I hear. When I floated this Digg rumor past some knowledgeable friends, several scoffed: "When isn't Digg up for sale?" It's true: The news-discussion site is perpetually in talks — but we hear the price tag always sinks potential deals before they're consummated. CBS, for example, backed off, with effervescent dealmaker Quincy Smith citing the media company's bubbly $280 million purchase of Last.fm as the reason it couldn't bid a high price for Digg. Things are different now, though.

Google CEO sells a jet — and eyes two more

Owen Thomas · 11/05/07 09:58AM

Google CEO Eric Schmidt has apparently sold a Gulfstream V jet recently listed for sale on Aviationbusinessindex.com. Could Schmidt at last be shrinking the grotesquely conspicuous fleet he owns with Google cofounders Larry Page and Sergey Brin? Hardly. Sources in the private-jet industry tell Valleywag that he's buying another Gulfstream V to replace that one. And, more incredibly, he's said to be have his eye on a Boeing 787 Dreamliner, possibly through the auspices of the International Lease Finance Corp. ILFC has ordered 74 hard-to-get Dreamliners for delivery starting in 2010. If Schmidt, Page, and Brin get their hands on one, they'll be flying the 787 long before some of the largest airlines in the world.

Facebook SocialAds launch time and place — revealed!

Nicholas Carlson · 11/01/07 02:58PM

A source tells us Facebook will launch SocialAds next Tuesday, November 6 at a swanky little event hall called "Loft Eleven." The event goes "all afternoon," so until we hear otherwise, we're presuming it will be a five-hour forced march through the land of social-network ads, starting at noon. The loft features a 360-degree view of lovely Midtown Manhattan, exposed brick walls, smokers' terrace and "beautifully arched entrances," according to the proprietors. OMG! Good thing those arched entrances are beautifully arched. 'Cause just plain "arched"? Lame. OK, so here's what the place looks like.

Billionaire Google sales exec's in-house romance

Owen Thomas · 11/01/07 02:19PM

Affairs of the heart are never easy for outsiders to understand. But when they stray into the office, they, alas, become everyone's business. Which is why we asked, a while back, which Googler had put his marriage at risk over an affair with a coworker. As commenter notelling correctly guessed after we ran a blind item, it's Omid Kordestani, Google's top sales executive. Kordestani's no mere sales guy, however. For one, he's worth $2.2 billion, thanks to his Google shares. And inside the Googleplex, he's referred to as the company's "business founder," responsible for the fabulously successful money machine that is AdWords. With his stunningly beautiful and intelligent wife, Bita, shown above to the left, Kordestani might seem to have it all. But all was not enough.

Fortune editor censors Larry and Lucy's wedding date

Megan McCarthy · 10/31/07 03:20AM

Which is mightier, the pen or the search engine? On October 19, Fortune editor Andy Serwer blogged a short-lived rumor that Google cofounder Larry Page will marry girlfriend Lucy Southworth on December 7. Short-lived, because the passage about the smooch-prone couple's happy news quickly disappeared from the page:

Facebook employees know what profiles you look at

Nick Douglas · 10/27/07 03:00PM

"My friend got a call from her friend at Facebook, asking why she kept looking at his profile," says a privacy-conscious source at a major tech company. Turns out Facebook employees can (and do) check out anyone's profile. Not only that, but they also see which profiles a user has viewed — a major privacy violation. If you've been obsessed with a workmate or classmate, Facebook employees know. If Barack Obama's intern has been using the campaign account to troll for hotties, Facebook employees know. Within the company, it's considered a job perk, and employees check this data for fun.

"Hulusers" agonize on conference call

Owen Thomas · 10/25/07 06:17PM

The website for Hulu, NBC and News Corp.'s online-video joint venture, looks pretty. But the reality of getting ready for next week's launch? Very messy. A tipster tells us that a dozen members of the Hulu launch team are stuck on an agonizing "all-night" conference call. Also on the call: Executives from distribution partners including AOL and Yahoo. The topic of discussion? No doubt the fact that the site, days away from launch, isn't quite ready. Poor, unlucky souls. No wonder their old-media colleagues have nicknamed them "Hulusers." And I suppose that makes the videos on the YouTube-notgonnabe website Huluser-generated content.

Yahoo's dwindling PR strategy

Owen Thomas · 10/24/07 12:41AM

Is it any wonder why Yahoo's image is so unpolished? The ranks of top PR people available to buff it have been rapidly shrinking. And with CEO Jerry Yang all but hiding in a cave, there's been little for the survivors to do. The latest departure: Joanna Stevens, to parts unknown. That Stevens, an eight-year Yahoo veteran, would leave on such short notice, without another job lined up, is telling. It means, in short, that this ultimate Yahoo loyalist has finally tired of the company's mismanagement. Before new PR chief Jill Nash came on board, Stevens briefly ran the department, and she was close to former CEO Terry Semel (shown here with Stevens and Tom Cruise). When even the company's designated cheerleaders are turning in their pom-poms, you know the team is losing. (Photo by Joanna Stevens)

Facebook all-hands set for Tuesday

Owen Thomas · 10/20/07 09:28PM

Microsoft, Google, and Yahoo — as well as a host of freelance moneybags — continue to press their offers to shower Facebook, the hot social network, with dollars and ads. And last Wednesday at San Francisco's Web 2.0 Summit, CEO Mark Zuckerberg said his company was close to clinching a deal. When Friday came and went without a deal, though, conference attendees where whispering about what might have gone wrong. The latest rumor, though, is that Facebook will have an announcement to make on Tuesday. How do we know that? The company has scheduled an all-hands meeting for that day.

Sergey, Facebook investor up to ... what?

Owen Thomas · 10/18/07 11:41PM

THE PALACE HOTEL, SAN FRANCISCO — Thursday evening, Google cofounder Sergey Brin strode down the main hallway of this historic hotel. Pacing him step for step was Google executive Megan Smith, part of the team negotiating a fraught deal with Facebook. A Valleywag spy camera caught the pair heading into Maxfield's for dinner with an associate from Greylock closely involved in the firm's investment in Facebook. The meeting was hastily arranged only hours after Brin participated in Google's quarterly earnings call, with Brin rushing up to San Francisco. Why the hurry?

Has Microsoft snagged a Facebook stake?

Owen Thomas · 10/17/07 06:00PM

WEB 2.0 SUMMIT — On stage, Facebook CEO Mark Zuckerberg tells an audience of hundreds that his company is "happy" with its Microsoft relationship. That, of course, would be the relationship where Microsoft has exclusive control of Facebook's display-ad inventory — the relationship that Facebook, insiders say, is desperate to wriggle out of. There's only one logical reading of this response: Microsoft and Facebook have renegotiated their ad deal, allowing Facebook to sell its own ads in the U.S. — most likely in exchange for letting Microsoft take a stake in the company, shutting out Google and Yahoo. Could this really be the end of Facebook's big-money drama? (Photo by AP/Paul Sakuma)

Bram Cohen's violent imaginings catch up with him

Tim Faulkner · 10/17/07 02:04PM

Bram Cohen, the founder of file-sharing software startup BitTorrent, has stepped down as chief executive and will assume the role of chief scientist. Why did the inventor of today's most popular peer-to-peer file sharing technology remove himself? Was it because, as many had predicted, inventor founders do not lead their own companies successfully through growth phases? Or did BitTorrent's investors get wind of his frighteningly violent body of writings?

Three term sheets to the wind

Owen Thomas · 10/15/07 10:52AM

By all rights, Facebook CEO Mark Zuckerberg ought to be feeling drunk with power right now. He has, I'm told, term sheets in his hands from the three giants bidding for a small piece of his startup: Microsoft, Google, and Yahoo. All three, I understand, meet his demands for a staggeringly high valuation on the company — $10 billion or more. Piled up behind them are countless offers from venture capitalists and private-equity players who would be content merely to have their funds' names attached to the untouchably hot social network. So who will Zuckerberg choose?

AOL layoff details revealed

Owen Thomas · 10/15/07 07:38AM

VIENNA, VA. — A source close to AOL's upcoming layoffs has shared numbers exclusively with Valleywag. The expected body count? 4,000 — a third of the estimated 12,000-person staff of the pain-wracked Internet giant. (Update: In a companywide email, CEO Randy Falco now says 2,000 employees out of a shrunken staff of 10,000 will be laid off.) The Dulles, Va. headquarters alone will see 400 jobs eliminated. Member Services, the organization responsible for AOL's rapidly defecting dialup customers, may get cut by as much as 90 percent. A data center in Reston, Va. is closing, with the facility up for sale, and another one in nearby Manassas could be on the block in the future. As deep as those cuts go, however, they may not be all. Remember the old adage "Measure twice, cut once?" Don't worry — neither do AOL CEO Randy Falco and COO Ron Grant.

Steve Ballmer and Mark Zuckerberg set hotel rendezvous

Owen Thomas · 10/12/07 06:53PM

MENLO PARK, CA. — It's hardly a secret that Microsoft and Facebook are negotiating over the purchase of a high-valued stake in the hot social network. But why would Facebook CEO Mark Zuckerberg and Microsoft CEO Steve Ballmer be so foolish as to pick the Stanford Park Hotel as their meeting place for a final round of negotiations? The hotel, practically at the intersection of El Camino Real, the Main Street of Silicon Valley, and Sand Hill Road, the center of venture capital, is as public a spot as one could choose. And hotel-staff gossip, according to a Valleywag informant, has it that Ballmer and Zuckerberg were set to meet there this afternoon. A manager, when asked, said "important people" were meeting in the hotel's boardroom. Another source says that Ballmer was so eager to clinch the deal that he offered to head straight from the airport to Facebook's Palo Alto headquarters — an option dismissed for the more-private hotel. Oops.

Facebook tries to escape the Microsoft trap

Owen Thomas · 10/11/07 01:49PM

Everyone wants a piece of Mark Zuckerberg's baby: Microsoft, Google, and now Yahoo, according to Kara Swisher. It's widely known that Zuckerberg, CEO of the hot social network, and his backers are asking for a high price on a small stake — selling 3 to 5 percent of the company at a valuation as high as $15 billion. But what no one seems to understand is the hold Microsoft has on the company, through an exclusive advertising deal that runs through 2011 — and how eager Facebook is to get out of that deal.