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Mini-Links let you track your followers (New York Times)

May 4, 2009
Mini-Links to Web Sites Are Multiplying
By JENNA WORTHAM
If you have spent any time on the Internet in the last few months, chances are you have clicked on a shortened link Web address.

URL shorteners, which abbreviate unwieldy Web addresses into bite-size links, have been around for years. The most popular service, TinyURL.com, was started in 2002 by a unicyclist named Kevin Gilbertson.

But the tools have soared in popularity recently, in part because of microblogging sites like Twitter and Facebook, where messages are limited in length and every character counts.

URL shorteners are easy to build, and dozens of competitors have proliferated, with minimalist, character-conserving names like Bit.ly, Is.gd and Tr.im. Most of them are simple tools created as a labor of love with no real business model behind them.

Shorteners, however, could have real value beyond making Web addresses more manageable, said Danny Sullivan, editor of the blog Search Engine Land.

They have the ability to keep track of use — how many times a particular link was clicked and the geographic location of the clickers — which could be valuable to marketers, news outlets and companies looking to measure the impact of a link, tweet or mention online.

“The tracking element is very important,” said Mr. Sullivan. Some tools even highlight comments posted to Facebook or FriendFeed about a particular link — features that standard tools like Google Analytics may not be able to provide.

One popular link shortening service, Bit.ly, is trying to build a business around that kind of data.

Betaworks Studios is a New York technology incubator that has invested in Tumblr, a microblogging tool; OMGPOP, a social gaming site; and Outside.in, a hyperlocal news aggregator. It developed Bit.ly as an internal tool for its portfolio of companies to use.

“It emerged as much more than that,” said John Borthwick, the chief executive of Betaworks. “Everyone from Dell to Demi Moore is on Twitter and could want to track their emerging social system.”

Since Bit.ly was introduced last year, its volume has soared. The company says that now 50 million Bit.ly links are clicked each week — more than double the rate of early April. “And next week, we’re expecting to hit 60 million,” said Andrew Weissman, the chief operating officer of Betaworks.

The growth has attracted venture financing. Bit.ly recently announced that it had raised $2 million from investors that included Alpha Tech Ventures, the software industry pioneer Mitch Kapor and the early Google investor Ron Conway.

“The Web has been devoid of a feedback loop for a while,” said Christopher Sacca, an investor who has financed several Web start-ups, including Bit.ly, Twitter and Photobucket.

Because Bit.ly tracks its clipped URLs in real time, no matter where they are posted — instant messages, Twitter, Facebook, blogs or e-mail — the service could become “a real source for extracting information about how people are using the Web,” Mr. Sacca said.

In addition to tracking links, Bit.ly uses a service called Calais, developed by Thomson Reuters, that can extract semantic terms from the Web pages that Bit.ly users are redirected to. This allows Bit.ly track the most popular topics being shared across the Web, as well as zero in on a specific category like finance or health care and retrieve the most popular Web sites shared on that subject in the last 24 hours.

The company hopes that being able to track the “social distribution of information in real-time,” as Mr. Borthwick describes it, could potentially be relevant to the future of Web search.

Although Bit.ly is not yet sure how to make money from all this data, “there’s a business model here,” Mr. Borthwick said. “We can smell it.”

For all the convenience of short URLs, some Internet security experts worry that they could be used to camouflage spam and phishing attacks and redirect people to malicious Web sites.

“People have no way to know where they’re going,” said Patrik Runald, chief security advisor at F-Secure Security Labs, a maker of security software. “These services are great and they serve a purpose, but at the same time, there is a darker side.”

And if a shortening site shuts down, any links funneled through it would be lost forever, Mr. Runald said.

Bit.ly says it is developing an archive system to keep links from decaying and employs several filters and a preview function in Firefox and TweetDeck, a desktop application for Twitter, to help cut back on spam.

Given the ease of use, the bigger threat to start-up companies like Bit.ly is that major corporations will create their own custom URL shorteners to bolster their brands. Digg, StumbleUpon and FriendFeed recently unveiled shortening services, and it would be easy for the big social networks, like Facebook or Twitter, to create their own. And there is always the chance that a heavyweight like Google will step in and obliterate the competition.

“That’s always a risk, but we’re racing to establish ourselves in the market,” said Mr. Weissman. “We’re willing to bet that innovation comes from weird little corners of the Internet, like this.”

GM Bondholders Group loses Loomis Sayles (Bloomberg)

Loomis Sayles Sells Its GM Bonds,

By Caroline Salas

May 6 (Bloomberg) -- Loomis Sayles & Co. sold all of its General Motors Corp. notes and quit the bondholder group that’s trying to improve the automaker’s debt-exchange offer.

Loomis Sayles, which manages more than $107.7 billion, was part of the original committee of GM bondholders that formed last year after the Detroit-based automaker received federal loans conditioned on a restructuring. Loomis Sayles sold its GM bonds last month and is no longer on the committee, said Erin Heard, a spokeswoman for the Boston-based firm. She declined further comment.

GM and its bondholders are at odds over $27 billion in claims ahead of a June 1 deadline. The bond group called GM’s April 27 offer to swap their claims for a 10 percent equity stake “neither reasonable nor adequate” and asked to be treated more equitably with labor unions. The counter-proposal by bondholders hasn’t been adopted.

GM’s offer is “grossly unfair to the point of abusive,” Glenn Reynolds, chief executive officer of CreditSights Inc. in New York, wrote in a report this week. “Politics remains an overriding factor in the equation and has been decidedly unfriendly to the interest of bondholders in a contest with the disproportionately outsized power of organized labor and other Washington-heavy constituencies and interest groups.”

CreditSights recommends bondholders reject GM’s debt exchange and expects the offer to fail.

Firm’s Holdings

Given the Obama administration’s willingness to place Chrysler LLC into court protection after an impasse with its lenders, GM may also have to file for bankruptcy in order to restructure, said Martin Fridson, CEO of New York-based credit investment firm Fridson Investment Advisors.

Loomis Sayles owned more than $113 million of GM bonds at the end of March, including over 7 percent of GM’s $1.25 billion of 8.25 percent debt due in 2023, according to data compiled by Bloomberg.

The 2023 notes fell 1.3 cent to a record low of 6.9 cents on the dollar at 3:11 p.m. in New York to yield 115 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The debt has tumbled from 20 cents at the start of the year and 72 cents in April 2008.

President Barack Obama blamed “a group of investment firms and hedge funds” for tipping Chrysler into bankruptcy and said he didn’t “stand with those who held out when everybody else is making sacrifices.” The lenders include OppenheimerFunds Inc., Stairway Capital Management LP and Group G Capital Partners LLC, according to court documents filed today.

‘Strange Approach’

Chrysler’s dissident lenders lost a fight to keep their identities secret, revealing themselves after U.S. Bankruptcy Court Judge Arthur Gonzalez ordered the disclosure, overruling concerns about death threats and allegations that Obama’s criticism of their stance would damage the lenders’ reputations.

“The attack on institutional investors by the administration in this process is a very strange approach and borders on demagoguery,” CreditSights’ Reynolds wrote in the report. “The bondholders are being painted into a corner and will have no chance but to stand and fight. You can call them names as long as they get treated fairly. Offer them virtually nothing and then call them names? Now that’s just cold.”

Bondholders met with the Obama administration’s auto task force on April 30 and proposed they get a 58 percent ownership stake in GM in exchange for their claims. The creditor group objected to the automaker’s proposal they get a 10 percent share while a union health fund would get $10 billion in cash and as much as a 39 percent stake for $20 billion in unsecured claims.

GM offered bondholders 225 shares of stock for each $1,000 of principal. At least 90 percent must accept the exchange for the automaker’s debt-reduction plan to work.

Nevin Reilly, a spokesman for the ad hoc committee of GM bondholders, declined to immediately comment.

To contact the reporter on this story: Caroline Salas in New York at csalas1@bloomberg.net
Last Updated: May 6, 2009 15:35 EDT