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INTERNET SPACE
Internet safe spot planned at ".secure" domain
by Staff Writers
San Francisco (AFP) May 11, 2012

Facebook buy of Instagram scrutinized
San Francisco (AFP) May 11, 2012 - Facebook's billion-dollar deal to buy the startup behind photo-sharing smartphone application Instagram has evidently caught the eye of US regulators.

The hefty price tag qualified it for a review by the US Federal Trade Commission (FTC), which remained mum on the subject despite a Financial Times report on Thursday saying that a probe was underway.

A Facebook spokesman contacted by AFP said the California-based company would not comment on reports of a FTC probe of the Instagram acquisition.

The impetus of an FTC investigation was considered routine given the price tag on the deal, but such a probe could threaten to complicate the social network's plan for an initial public offering (IPO) of stock next week.

"It takes 12 months to undergo review and the acquisition can't close until the FTC finishes," said independent analyst Rob Enderle of Enderle Group in Silicon Valley.

"Now Facebook has an open acquisition during an IPO and that could be a problem."

Takeovers under review by regulators tend to spook potential investors because of uncertainties regarding how they may play out.

Facebook last month announced a deal to buy the startup behind smartphone photo sharing application Instagram.

The big ticket purchase was seen by some as a move by Facebook to strengthen defenses against Google and blazingly hot newcomer Pinterest in the weeks ahead of what promises to be a history-making stock market debut.

Top executives at the world's leading social network this week kicked off their all-important road show on Wall Street -- an intense marketing drive ahead of the company's expected trading launch on the tech-heavy Nasdaq on May 18.

In a filing with the US Securities and Exchange Commission, Facebook set a price range of $28 to $35 for its shares, which would value the firm at between $70 billion and $87.5 billion.

Based on the estimated market value, Facebook would rank behind Amazon and Cisco, each worth over $100 billion, but ahead of Hewlett-Packard ($48 billion) and struggling Yahoo! ($19 billion).

If all stock options that could be exercised in the next one to two years are taken into account, the value would rise to between $91 billion and $97 billion -- or up to 26 times the turnover Facebook posted in 2011.


Internet security specialists have applied for a ".secure" domain that they plan to turn into an online safe zone where bad guys aren't allowed.

San Francisco-based Artemis was awaiting word Friday from the Internet Corporation for Assigned Names and Numbers (ICANN) on whether it was approved to host websites with ".secure" addresses.

"We are creating a safe neighborhood where you know people follow the rules and you can rely on them to do things securely," Artemis chief technical officer Alex Stamos told AFP.

"There is not going to be typo squatting or malware... We are going to make it really air tight so even if you were in Syria the Syrian government couldn't hijack you."

Commonly available, but typically unused, technology tools for thwarting online hackers, viruses, snoops, spies and scammers will be mandatory at websites with .secure addresses.

"The idea is to make it effortlessly secure for individuals," Stamos said.

"In the end, the actual technical security tactics are things (websites) should be doing anyway. We are just making it a requirement."

Plans for .secure were part of an Internet domain name "revolution" that remained on hold due to a flaw that let some aspiring applicants peek at unauthorized information at the ICANN registration website.

ICANN intends to resume taking applications on May 22 from those interested in running new generic top-level domains (gTLDs) online, with the window staying open for about five days.

ICANN said that it has so far received 2,091 applications from 1,268 organizations, some of which are vying for the same word as the end to a domain name.

In January, ICANN began taking applications from those interested in operating Internet domains that replace endings such as .com or .org with nearly any acceptable words, including company, organization or city names.

Outgoing ICANN president Rod Beckstrom has championed the change as a "new domain name system revolution."

Shifty characters are bound to take advantage of the change by "squatting" on website addresses based on popular words or on common misspellings, according to Stamos.

"There are all kinds of shenanigans people pull with domain names," Stamos said.

"There will be all kinds of people squatting over the domain space and we are just not going to let that happen."

Businesses registering .secure websites will be required to verify their identity and accurately represent what they do.

"If you use the word 'bank' or 'brokerage,' you will have to prove that is what you are," Stamos said. "You can't just grab that domain and sit on it."

Those running .secure websites would need to install safeguards, such as data encryption and guard against viruses that could be passed on to visitors.

"If you launch a website and two days later there is malware on it, we are taking it down and you will have to come to us and explain," Stamos said.

Artemis did not disclose how much it planned to charge for .secure Web addresses, but expected the amount to be significantly more than the $13 or so typically charged for .com.

Registering a gTLD with ICANN costs $185,000 with a $25,000 annual fee after that.

Artemis, part of Britain-based NCC Group, also had to show ICANN that it could operate .secure for three years without taking in any revenue.

The hope was to have .secure among the first wave of new gTLDs, which are expected to go live on the Internet in the middle of next year.

"If companies go through a little bit of pain to run on .secure, in the end they have done themselves and their customers a great service," Stamos said.

"If you want to be lazy, you should not apply for a .secure domain."

More information about .secure was available online at artemis.net.

Artemis is also assembling an industry group to develop "domain policy framework" for making websites safer no matter what their addresses.

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Facebook co-founder Saverin gives up US citizenship
Washington (AFP) May 11, 2012 - One of Facebook's co-founders, Eduardo Saverin, who stands to make a bundle in the social network's share offering has renounced his US citizenship, records showed.

The move by Saverin, who lives in Singapore, could save the Brazilian native a bundle in US taxes.

Saverin, whose public spat with Mark Zuckerberg was featured in the 2010 film "The Social Network," is on a list of names published April 30 by the US Internal Revenue Service of those renouncing US citizenship.

His stake in Facebook after a losing a power struggle with Zuckerberg is believed to be between two and four percent. The website "Who Owns Facebook?" said his share would be worth around $3.4 billion.

Bloomberg News cited a spokesman for Saverin saying he had decided to renounce US citizenship because he intended to stay in Singapore, where he has invested in several startups.

"Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time," said Tom Goodman, a spokesman for Saverin, in an e-mailed statement to Bloomberg, which said Saverin renounced US citizenship last September.

US citizens normally pay taxes on all their worldwide income, regardless of where they live. But Saverin would likely escape much of those taxes because Singapore does not tax foreign-sourced income.

Facebook takes small step into cloud storage
San Francisco (AFP) May 11, 2012 - Facebook is slowly moving into the cloud.

The social networking giant confirmed Friday it was rolling out a storage service for users, creeping into the territory of Dropbox, Google and others, which offer free or paid storage of files that can be accessed from a variety of devices.

The move could give Facebook, which is launching a massive public offering next week, another service for its 900 million members worldwide.

"Yesterday, we started to roll out a new feature that lets people share files within groups," spokeswoman Meredith Chin said.

"We first introduced this feature a few months ago with Groups at Schools. Now, we're making it more widely available. It'll roll out to more groups over the course of the coming days and all groups should have it soon."

Facebook will limit file sizes to 25 megabytes and will not allow certain items such as music, which could be subject to copyright. Other potentially "malicious" file types will also be excluded.

Last month, Google launched its long-anticipated "Drive" service that lets people store photos, videos, and other digital files in the Internet cloud.

The booming trend of smartphones or tablets being at the center of mobile lifestyles is prompting the storage of more data in the cloud, prompting services from firms such as Apple, Dropbox and others.

Many of the services offer a limited amount of storage for free and allow users to upgrade to a paid service for more space.



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San Francisco (AFP) May 10, 2012
Microsoft on Thursday said that it is weaving insights from user's Facebook friends into Bing results as part of the biggest revamp of the search engine since its launch three years ago. A new version of Bing will be rolled out in the weeks ahead and was to be widely available in the United States in early June. "Increasingly, the Web is about much more than simply finding information by ... read more


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