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Web 3.0 & McClatchy (Part 3)

Posted on Wednesday, Oct 3rd 2007

Web 3.0 Framework discussion

Below is a quick overview of the Web 3.0 framework for the McClatchy sites. We have not gone into the details of all the properties, but you can review the Web 3.0 section of this site for detailed discussions on each vertical category. This segment also includes an overview of the prevalent business models in the McClatchy properties.

If you are looking for an apartment or a roommate in any of the top cities in the US, then is definitely the place. I found the Moving Center on very helpful as it provides very good information on packing and moving starting from truck rentals to moving quotes.

I also like the Research section on It allows users to research new and used car before they actually make the purchase. Side-By-Side Comparison on allows users to compare cars.

CareerBuilder scores high on contextual navigation within the Jobs category. Broad job categories like College and Interns, Non Profits, etc. are well articulated.

Most of McClatchy’s Internet properties are co-owned with Belo Corporation, Gannett, Tribune and The Washington Post Company and the strength of these old media companies in delivering high quality content is evident in sites like CarrerBuilder,,, ShopLocal, Topix, etc. >>>

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Yaniv Ben-Saadon, CEO of FixYa: Using the Social Web for Technical Support (Part 2)

Posted on Tuesday, Oct 2nd 2007

SM: Where did you get the idea for your current venture? What is your domain experience in the segment?

YB: Like any other consumer out there, I had a hard time finding relevant and updated support information for my products, and therefore decided to create this site.

As for experience in the industry, I have managed the dating business unit at and before that co-founded the gaming portal

SM: What was the market landscape like when you founded the company? Competition? Competitive Positioning? >>>

Online Video Beneficiaries: Akamai

Posted on Tuesday, Oct 2nd 2007

In my series on Online Video Beneficiaries, I have covered the network players like Cisco. In this post, I will look at the application acceleration angle. Gartner estimates that the market for application acceleration will exceed $3 billion by 2010. There has been a meteoric rise of online traffic with the online broadcast of live events and the popularity of devices like iPods and iPhones and the resulting boom in downloading as well as uploading of music and videos. A major beneficiary of this surge in online traffic and multimedia activity that requires fast and reliable transfers is Akamai.

Akamai Technologies(NASDAQ: AKAM) is the leading content delivery network (CDN) provider that accelerates the delivery of content and applications over the Internet. With the Internet playing a major role in everyday life and applications, Akamai’s business is booming. Its annual sales in 2006 went up 51% to $428.7 million and have more than doubled over 2004. It acquired one of its biggest competitors, Speedera in June, 2005. It followed this up with Nine Systems in December 2006 to build out its video serving capability. In March 2007, it acquired Netli to expand its application acceleration technology as well as its presence in the Software-As-A-Service (SAAS) market. In April 2007, it bought Red Swoosh to enhance its distributed Internet presence. >>>

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Web 3.0 & McClatchy (Part 2)

Posted on Tuesday, Oct 2nd 2007

Vertical Strategy

McClatchy, in partnership with Belo Corporation, Gannett, Tribune and The Washington Post Company owns Classified Ventures. Classified Ventures’ objective is to collectively capitalize on the revenue growth in the online classified advertising categories of automotive, apartments, and real estate. McClatchy’s various positions in the verticals are sometimes held by the company itself, often in collaboration with Gannett, Tribune, and other newspaper companies, and sometimes held by Classified Ventures. In this section, we will take stock of what they own in which vertical, and how those online properties are doing.

CareerBuilder founded in 1995, is owned by Gannett, Tribune, and McClatchy. It is a job site where users can search or post jobs and resumes, gather information about companies and seek career related advice from experts. The site has 400 million monthly page views and over 21 million monthly unique visitors. The site averages more than 1.5 million job postings per month. Microsoft bought a minority stake in the company in May 2007.

The site has 1200 partners and is the number one job site in the US. CareerBuilder places help-wanted ads in Europe and Asia, as well as in U.S. markets. McClatchy owns 14.4% of CareerBuilder.

ShopLocal is the leading multi-channel marketplace, which links potential customers and the product sellers. Gannett, Tribune and McClatchy own it. ShopLocal LLC is growing at 30% a year and planning innovative offerings for retail advertisers. It offers a wide range of products from various large retailers like Target, Sears, The Home Depot, JC Penny and Best buy. ShopLocal has less than $100 million in revenue but has built a strong Web presence. According to Nielsen/NetRatings, ShopLocal’s home page attracted 9 million unique visitors, in March 2007 up 26% from the previous year. >>>

Bootstrapping is One Answer

Posted on Tuesday, Oct 2nd 2007

The VC-Entrepreneur Compensation Disbalance post has generated great discussion. In it, a theme that emerges over and again, is Bootstrapping.

You have read a few of my prior writings on Bootstrapping [Is Bootstrapping Becoming Sexy and Again? and Protect Your Dilution]. There is no doubt at all anymore that bootstrapping is, indeed, becoming sexy again.

Unlike the mid-late nineties, when Powerpoint Financing was in vogue, and VCs fell all over each other financing half-baked ideas, today, entrepreneurs are no longer really seeking financing for the ideation / experimentation phase. In contrast, in 1999, all of us raised funding on Powerpoints. Experienced entrepreneurs included.

Today, many entrepreneurs are not seeking financing at all, choosing to go straight to exit (eg. Joe Kraus sold JotSpot to Google with no VC money).

An even more interesting model is what Sridhar Vembu has done with Zoho. He has built the company to $10M+ in revenues, and has no plan of selling it ever. His sweet sauce is using a smaller “cash cow” network tools business to get into something much bigger and potentially more ambitious and disruptive, ie. On-Demand Office and CRM. >>>

Yaniv Ben-Saadon, CEO of FixYa: Using the Social Web for Technical Support (Part 1)

Posted on Monday, Oct 1st 2007

How often have you bought a new DVD Player, and have had difficulty making it work with your existing TV set-up? In our Entrepreneurship Case Studies series, this week, we talk with Yaniv Ben-Saadon, founder and CEO of Fixya, a community site focused on providing after sales technical support on consumer products.

SM: Please describe your personal background : Family, upbringing, early career, etc. leading up to this venture.

YB: I was born and raised in Jerusalem, Israel; the oldest of three children to young parents that immigrated from Morocco. After graduating tech high school, I joint the Israeli Air Force and became an officer soon after that. Overall I served 6 years in the military, and in 1994 jumped on a plane and came to the US. >>>

Web 3.0 & McClatchy (Part 1)

Posted on Monday, Oct 1st 2007


The McClatchy Company is the third largest newspaper company in the United States. The Company publishes 31 daily newspapers and approximately 50 non-dailies across 29 locations in the United States. The prominent newspapers from the Company include the Miami Herald, the Kansas City Star, the Charlotte Observer and the Sacramento Bee. McClatchy also owns some of the leading local websites in each of its daily newspaper markets. The Company through its sites offer users information, comprehensive news, advertising, e-commerce and other services. McClatchy Interactive provides content for websites, software development and publishing tools.

McClatchy operates Real Cities, the largest national advertising network of local news sites and owns 14.4% of CareerBuilder, the nation’s largest online job site. The Company also owns 25.6% of Classified Ventures, a newspaper industry partnership that offers classified sites such as the nation’s number two online auto site,, and the number one rental site,

In 2Q07, 84% of the Company’s revenues came from advertising and 12% of the revenues came from circulation. Run-of-press or ROP contributed 37% to the advertising revenue, while classified advertising contributed 33% and 8% came from national advertising. However, there is a continuous shift from ROP to preprint and online advertising.

The Company’s consolidated advertising revenues in August 2007 decreased 9.2% and total revenues were down 8.4% to $144 million from $158 million in August 2006. Year-to-date advertising revenues declined 8.0% and total revenues were down 7.1% on a pro forma basis. Advertisement revenues from the classified category fell 17.3%. However, what is worrying for the Company is the fact that online advertising revenues fell by 3.1% in August 2007 compared to August 2006. Year-to-date online advertising revenues have risen by a meager 1.7%. >>>

Nokia Buys Navteq, “Place” Becomes Key

Posted on Monday, Oct 1st 2007

I had written earlier about Navteq (Navteq: Bright Future If Managed well and Place and Location Services Growth Fuels Navteq).

Well, this morning, Nokia is announcing that they are acquiring Navteq for $8.1 Billion in cash. Navteq’s stock had risen steadily recently upon acquisition speculation. Since I last wrote about Navteq on August 2, the stock has gone from $65.99 to $79.27, and is trading at $76.79 right now. >>>