Apple has biggest impact on world consumers: survey

By Rachel Sanderson

LONDON (Reuters) - The Apple brand has the biggest impact on the world's consumers, while Microsoft and the United States nation brand are those considered most in need of a remake, a survey showed on Monday.

The poll by online magazine brandchannel.com asked its readers to identify the brands with the greatest impact on their lives, and say how they affected readers' behaviour and their view of the world.

The nearly 2,000 professionals and students who voted named Apple overwhelming winner. The creator of the iPod and Mac computer triumphed in six categories including most inspiring brand and the one readers cannot live without.

Microsoft, the world's largest software maker was also a winner, but it received the dubious honor of the brand most readers wanted to argue with, and the one they most wanted to revamp. Voted into second place in the category was brand USA.

"Apple has clearly captured the hearts and minds by leading across most categories. Others, such as the USA nation brand, which ranks highly as most in need of a rebrand, requires help according to our readers," said brandchannel editor Jim Thompson.

The poll does not take account of economic brand value, the murky science of assigning a financial value to brand, which regularly puts Coca-Cola Co's (KO.N) Coke in first place.

One of the more surprising results from the survey, was that few of the respondents -- who came from 107 countries -- thought that there was such a thing as a "green" brand.

The result comes despite millions of dollars spent by some of the world's biggest companies to rebrand themselves as "environmentally-friendly". Discussing Apple, one anonymous reader said there was "never a dull moment" with the company "reinventing itself all along and providing, over and over again, a new perspective on what we thought was carved in stone".

At the other end of the spectrum, Microsoft had "gone from innovative and bold to stodgy and follower," said another unnamed reader.

After Apple, the most inspiring brands were Nike, Coca-Cola, Google and Starbucks, the survey showed.

The same brands, except with Virgin in place of Starbucks, were the brands most readers would "like to sit next to at a dinner party".

The rankings by brandchannel.com were based on answers from almost 2,000 readers from 107 countries. The survey was conducted online from February 24 to March 9.

Indonesian Internet User cannot access porn site again !!!

Since (25/3/2008) Indonesian internet user cannot access porn site again because has been commited by indonesian parlemen an Regulations for Information and Electronic Transaction... after the parlemen commited that regulation many Internet Service Provider do blockade and filtering to they connectionfor the user which will access porn site.

Following is the quote of regulation ( in Indonesian language ) :

BAB VII
PERBUATAN YANG DILARANG

Pasal 27
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membuat dapat diaksesnya Informasi Elektronik dan/atau Dokumen Elektronik yang memiliki muatan
yang melanggar kesusilaan.

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Buyback programs turn electronic trash to cash

DENVER (Billboard) - Leave it to the gadget industry to turn concern over electronic waste into a sales opportunity. Simply put, they're offering to buy back old devices to recycle or resell, in return for cash or in-store credit.
Coming to consumer electronic retailers nationwide this spring is the ecoNEW program from NEW Customer Service Cos., the company that provides extended warranty plans and protection programs for such retailers as Best Buy and Wal-Mart.
Under the program, consumers can return any electronics products they own to participating retailers (which have not yet been announced) -- even if they weren't purchased at the store. In return they'll receive an in-store credit gift card for a predetermined amount based on the type and condition of the device. EcoNEW handles all the collection and evaluation details and issues the gift cards directly.
Another company, TechForward, offers a guaranteed buyback program similar to the optional extended warranty services offered by many consumer electronic retail stores. But instead of buying extra coverage in case the product breaks, the consumer buys insurance of sorts against future upgrades.
TechForward vice president of operations Marc Lebovitz says the program enjoys a 12 percent conversion rate on the devices covered. Close to 70 percent of the devices covered under the plan are returned for the agreed-upon fee.
Both ecoNEW and TechForward then evaluate the condition of the devices returned, wipe clean the hard drives and either resell the refurbished devices online via used MP3 sites or eBay or harvest the components and sell them as salvage parts.
The money gained from this process pays for the rewards given to the customer. While TechForward hopes the difference will make a tidy profit, ecoNEW will be happy to just break even.
"It's not necessarily the revenue opportunity, because frankly it's not that great," NEW senior VP of strategy and corporate development Kevin Porter says. "If you look at the margins ... they're razor thin. Until we have more experience on the flow rate of product, we're not quite sure yet if this will be a positive moneymaker. We're hoping to at least make it neutral." The benefit, ultimately, comes in encouraging more sales.
"It allows people to purchase now with more confidence," Lebovitz says. "Sometimes people will wait to make a purchase because they know a new device will come out in three or six months. This allows them to purchase now and know they can upgrade to the new one whenever they're ready."
But environmental responsibility is also a driving factor, and both companies are gambling that end-of-life programs like these will become more profitable in the years ahead as demand increases for safe disposal programs for consumer electronic products.
Following is a quick snapshot of companies providing buyback programs.
TechForward
How it works: Customers buy the plan at point of purchase for a guaranteed rate, then return the item using the program's free packaging and shipping.
Supporting stores: Los Angeles-area independent electronics stores
Cost to consumer: About $9 for MP3 players, more for other devices
Reward rate for an MP3 player: The guaranteed buyback on an iPod Touch is $240 for a 3-month-old device, $190 for up to six months and $160 for up to a year. Prices may vary if the units are damaged or inoperable.
ecoNEW
How it works: Customers fill out an online survey detailing what devices they want to get rid of and the condition of the product, and ecoNEW provides an estimate for the buyback, as well as free shipping.
Supporting stores: To be announced, but warranty clients include Best Buy and Wal-Mart
Cost to consumer: None
Reward rate for an MP3 player: $20-$60 range depending on model; in-store credit only
Apple
How it works: Customers can return iPods to any Apple store for a discount on a new iPod bought that day. Also offers a mail-in recycling program for iPods and mobile phones.
Supporting stores: All Apple retail locations
Cost to consumer: None
Reward rate for an MP3 player: 10 percent discount on new iPods when returning to the store. No reward if mailed in.
Reuters/Billboard

China in focus as Taiwan votes

TAIPEI (Reuters) - Taiwan went to the polls on Saturday to elect a president who could usher in a new era in relations with political rival China in one of the hottest potential flashpoints in Asia.

Taiwan's more than 17 million voters will choose a successor to President Chen Shui-bian, an anti-China firebrand who steps down in May and who has repeatedly angered Beijing with his pro-independence rhetoric.

China has claimed self-ruled Taiwan as its territory since the end of the Chinese civil war in 1949 and has pledged to bring it under its rule, by force if necessary.

Frank Hsieh's ruling Democratic Progressive Party favors formal independence while Nationalist Party candidate Ma Ying-jeou wants reunification once China embraces democracy.

"Whether you vote for Hsieh or for Ma, be sure to vote for Taiwan," Chen told reporters after voting with his wife. "...Don't let Taiwan become the next Hong Kong. Don't let Taiwan become the next Tibet."

The former British colony of Hong Kong returned to Chinese rule in 1997. Chinese troops marched into Tibet, the scene of anti-Chinese rioting last week, in 1950.

The polls close at 0800 GMT and a result is expected a few hours later.

The election has drawn keen international attention, with the United States, Russia and Britain criticizing a referendum on U.N. membership, to be held alongside the vote, which they believe could upset the delicate balance with China.

Whatever the referendum result, U.N. membership is out of the question with just 23 countries recognizing Taiwan, and with China a veto-wielding permanent member of the U.N. Security Council.

The United States switched diplomatic recognition from Taiwan to China in 1979, recognizing "one China", but remains the island's biggest ally.

Two U.S. aircraft carriers are in the region for training exercises. China fired missiles into the Taiwan Strait in 1996, trying to intimidate voters during an election.

"China hopes the United States and Japan will carry out their promises of not supporting 'Taiwan independence' or Taiwan authority's proposed 'referendum on U.N. membership'," Chinese Foreign Minister Yang Jiechi said in an interview with Russia's Interfax news agency.

In Taiwan, a faltering economy is a priority with voters.

"Domestic issues, such as the economy and corruption, are bigger than China or foreign policy," said Ralph Cossa, president of the U.S.-based think tank Pacific Forum CSIS.

The two candidates have toughened their stances on China following Beijing's crackdown in Tibet, but to help the economy, both advocate more direct flights, tourism and investment opportunities between Taiwan and China.

Ma advocates a common market with China.

"I'd like to see us become the Switzerland of the east, not the Cuba of the east," he told a campaign rally late on Friday.

Hsieh says that could cause Taiwan to be flooded by Chinese laborers and shoddy products, and the island may end up suffering the same fate as Tibet.

On the campaign trail, both camps have marshaled tens of thousands of people at noisy rallies up and down the island.

Both have trotted out groups of attractive young women to get attention and have run television commercials that play on voter fears such as China or a government fractured by bickering.

Yet voters are smarter, more practical and more fatigued than ever by politicking, analysts say.

"For me, the key topic is economic improvement," said Taiwan voter Mei Yi-ying, 60. "Most of us at our age want to work."

Afghans chant death to Danish, Dutch in protest

By Ahmad Masood

KABUL (Reuters) - Some 5,000 Afghans chanted "death to Denmark" and "death to the Netherlands" in Kabul on Friday, protesting against the reprinting of a cartoon of the Prophet Mohammad in Danish newspapers and a Dutch film on the Koran.

Sporadic demonstrations have sprung up across the deeply conservative country in recent weeks against the cartoons and the film with protesters demanding Danish and Dutch troops be withdrawn from Afghanistan and their embassies shut down.

Protesters gathered around a mosque in the west of the Afghan capital after Friday prayers chanting "death to Denmark", "death to the Netherlands, "death to America" and "death to Jews".

Demonstrators burned Danish and Dutch flags and also an effigy of Dutch right-wing politician Geert Wilders, who is due to release a film thought to be critical of the Koran later this month. Wilders has given few details of the film, but in the past he has called Islam's holy text a "fascist" book that "incites violence".

One unidentified speaker addressing the angry crowd through a megaphone from the back of a truck said the Afghan government should expel Danish and Dutch troops and close their embassies within two days or "we will take action".

The Netherlands has some 1,650 troops, mainly in southern Afghanistan and 14 Dutch soldiers have been killed fighting Taliban militants. Denmark, meanwhile, has 550 troops in northern and southern Afghanistan and 11 of its soldiers have been killed.

Al Qaeda leader Osama bin Laden this week warned that Europe would be punished for the cartoons, first published by a Danish paper in September 2005. The images ignited violent protests across the world, including in Afghanistan, when newspapers around the world reprinted them the following year.

Last month, some Danish newspapers reprinted one of the cartoons in solidarity with the cartoonist after three men were arrested on suspicion of plans to kill him, sparking more anger.

Many Muslims consider any depiction of the Prophet as offensive.

Resentment is growing against the presence of more than 50,000 foreign troops in Afghanistan.

Many Afghan are frustrated at poor security and the slow pace of development more than six years after U.S.-led and Afghan forces toppled the Taliban after the hardline Islamist movement refused to hand over bin Laden in the wake of the September 11 attacks on the United States.

Tibet riot death toll at 19

BEIJING (Reuters) - Eighteen civilians and a policeman were killed in anti-Chinese rioting that rocked the Tibetan capital of Lhasa last week, the regional government said.

The official death toll in the violence, which China has blamed on the region's exiled spiritual leader, the Dalai Lama, had been 13. Exiled Tibetans say as many as 100 people died.

Tibetans in China's tense southwestern province of Sichuan said they believed police had killed several people in anti-Chinese riots there this week, disputing official claims that none died.

The unrest has alarmed China, keen to look its best in the run-up to the August 8-24 Olympic Games in Beijing when it hopes to show the world that it has arrived as a world power.

In the rioting in Lhasa, "241 police officers were injured, 23 critically, and one police officer was killed by the mob," the government in a statement carried by Xinhua.

The number of injured civilian rose to 382 from 325. Some 58 were seriously wounded.

Police in Tibet issued a notice last Saturday, urging rioters to give themselves up. The number had climbed to 183 by Friday.

The Public Security Bureau of Lhasa has issued a "most wanted" list for 21 suspects and posted their pictures on the Internet.

Tensions remain high in Tibet, Sichuan and other neighboring areas where the government has poured in troops.

Gibson sues MTV, EA over "Guitar Hero"

By Ilaina Jonas

NEW YORK (Reuters) - Gibson Guitar said on Friday that it filed a patent infringement lawsuit against Viacom Inc's MTV networks and Harmonix as well as Electronic Arts relating to the wildly popular "Guitar Hero" video games.

The lawsuit, filed in Federal District Court in Tennessee, relates to the same patent involved in another suit Gibson filed earlier against various retailers, the Tennessee-based guitar maker said in a statement.

The "Guitar Hero" series has sold more than 14 million units in North America and raked in more than $1 billion since its 2005 debut.

Gibson said the games, in which players use a guitar-shaped controller in time with notes on a television screen, violate a 1999 patent for technology to simulate a musical performance.

Harmonix developed the first "Guitar Hero" game and was later bought by MTV. Electronic Arts and another company, Activision Inc, as well as several retailers, either develop, distribute or sell one or several of the games in the "Guitar Hero" series.

"This lawsuit is completely without merit and we intend to defend it vigorously," Harmonix said in a statement.

A spokesperson for Electronic Arts could not be reached for comment.

Earlier this month, Activision filed a preemptive suit against Gibson, which had complained that the games infringe upon one of its patents.

Activision filed a lawsuit asking the U.S. District Court for Central California to declare Gibson's patent invalid and to bar it from seeking damages.

Gibson, whose electric guitars are used by legendary blues and rock artists such as Eric Clapton, B.B. King and Slash, has been a high-profile partner in the "Guitar Hero" games.

Activision licensed the rights to model its video controllers on Gibson guitar models and to use their likenesses in the game.

Activision has said that by waiting three years to raise its claim, Gibson had granted an implied license for any technology.

Obama wins Gov. Richardson backing

By Matthew Bigg

PORTLAND, Oregon (Reuters) - Sen. Barack Obama won a coveted endorsement from New Mexico Gov. Bill Richardson on Friday while the State Department apologized that employees snooped into the Illinois Democrat's passport files and those of his two main White House rivals.

The backing from the Hispanic governor and former presidential contender is a victory for Obama and could improve his chances of winning over Latino voters who have leaned toward New York Sen. Hillary Clinton.

A Clinton adviser dismissed the endorsement as not significant at this stage in the race.

Obama and Clinton are in a heated battle to represent the Democrats against the presumptive Republican nominee, Sen. John McCain of Arizona, in the November 4 presidential election to succeed U.S. President George W. Bush.

In an embarrassment to the Bush administration, the State Department revealed on Friday that the passport records of all three major candidates had been improperly viewed by three contract employees and by a regular department staffer.

Secretary of State Condoleezza Rice called Obama, Clinton and McCain to apologize and the State Department said it was conducting an investigation and would look at how to tighten its systems to prevent such privacy violations.

"It is deeply disturbing, what's happened," Obama told a news conference.

"When you have not just one but a series of attempts to tap into people's personal records, that's a problem not just for me but for our health in this country and so I expect a full and thorough investigation."

Clinton, who was spending the Easter holiday at home off the campaign trail, said in a statement she would follow the probe closely.

The incident revived memories of the political firestorm that erupted in 1992 after State Department officials searched former President Bill Clinton's passport and citizenship files when he was a Democratic presidential candidate.

HELPING WITH HISPANICS?

Richardson, who served as U.S. ambassador to the United Nations and energy secretary during the Clinton administration, chose to abandon the former president and his wife, saying it was time for a new generation to lead.

"Your candidacy is a once-in-a-lifetime opportunity for our nation and you are a once-in-a-lifetime leader," Richardson said as he stood next to Obama in Oregon.

Richardson also ran for the Democratic nomination but abandoned his bid in January, stating he lacked the funds to continue after finishing fourth in voting in Iowa and New Hampshire.

Clinton and Obama had cultivated Richardson's backing in part because he could garner support among the Hispanic community, the fastest-growing segment of the electorate and a potentially vital voting bloc.

Richardson praised a speech Obama gave on race earlier this week and said it touched him as a Hispanic. "This is a man who understands us and who will respect us," he said in Spanish.

Hispanics largely backed Clinton in nominating contests on "Super Tuesday," with polls showing her winning two-thirds of the Latino vote in several states, and it was unclear whether they might shift to Obama because of Richardson's endorsement.

Clinton's chief strategist, Mark Penn, on a conference call with reporters, dismissed Richardson's potential impact this far into the race. "I think that, you know, perhaps the time when he could have been most effective has long since passed," he said.

"We both have our endorsers, but I don't think that it is a significant endorsement in this environment."

While saying his "great affection and admiration for Senator Clinton and President Clinton will never waver," Richardson, 60, added, "It is now time for a new generation of leadership to lead America forward."

A skilled negotiator and diplomat, the popular governor has been mentioned as a possible vice presidential candidate or secretary of state in a Democratic administration.

He is also among the superdelegates whose votes could be crucial in the nominating contest if neither Obama nor Clinton wins enough delegates during the primaries.

Obama leads Clinton in the state-by-state contest to amass delegates who will formally select the Democrat to face McCain.

The Arizona senator, who pulled ahead of both Obama and Clinton in some national polls this week, was finishing up an overseas trip with a congressional delegation that visited Iraq, Israel, Jordan, France and Britain.

(Additional reporting by Arshad Mohammed; Writing by Arshad Mohammed and Jeff Mason; Editing by Sandra Maler and Peter Cooney)

Google says Microsoft's Yahoo buy might hurt Internet

BEIJING (Reuters) - Google Inc, the world's leading search engine, said on Monday it was concerned about the free flow of information on the Internet if Microsoft Corp were to succeed in acquiring Yahoo Inc.

Last month, Microsoft proposed buying Yahoo in a deal originally worth $44.6 billion, but Yahoo's board has rejected the offer, saying it was too low.

"We would be concerned by any kind of acquisition of Yahoo by Microsoft," Chief Executive Eric Schmidt told reporters.

"We would hope that anything they did would be consistent with the openness of the Internet, but I doubt it would be."

Schmidt pointed to Microsoft's past history and "the things that it has done that have been so difficult for everyone", but he did not elaborate.

Last year, a European court upheld a landmark 2004 decision that Microsoft abused the near-monopoly power of its Windows operating system to damage competitors, along with a 497 million euro ($695 million) fine.

"We are concerned that there are things Microsoft could do that would be bad for the Internet," said Schmidt.

Microsoft Chief Executive Steve Ballmer pledged earlier this month that his company would gain market share against Google in online advertising and Web searching, even if led to his "last breath" at the company.

In a Reuters poll of financial analysts, the overwhelming majority said they believed Microsoft would eventually succeed in buying Yahoo, but many said they felt it may not be the best use of its ample cash reserves.
($=7.09 yuan)

JPMorgan to buy Bear, Fed opens lending to Wall St

NEW YORK (Reuters) - JPMorgan Chase & Co set a deal to buy stricken rival Bear Stearns for a rock-bottom price, while the U.S. Federal Reserve expanded lending to securities firms for the first time since the Great Depression to prop up the financial system.

The shock news, the biggest sign yet of how devastating the credit crisis is for Wall Street, slammed the U.S. dollar to a record low against the euro, pummeled Asia stock markets and boosted gold and low-risk bonds.

The Fed also made an emergency quarter-point cut in its discount rate and agreed to finance up to $30 billion of Bear's assets as U.S. Treasury Secretary Henry Paulson pledged the U.S. government is prepared to do "what it takes" to maintain the stability of the financial system.

"The fear is how many more skeletons in the closet are still there in the global credit markets?" said David Cohen, economist at Action Economics in Singapore.

"This is another effort by the Fed to calm things down, but the cloud on the horizon is just how much more of these credit issues are still out there."

Faced with an economy that may already be mired in recession, the Fed is expected to pull another tool out of its box on Tuesday by slashing its key benchmark overnight interest rate by as much as 1-¼ percent.

It has already cut the rate by a total of 2-¼ percentage points to 3 percent since mid-September -- putting downward pressure on the U.S. dollar.

The Fed's latest moves were seen as an attempt to prevent others from suffering the same fate as Bear, the fifth-largest U.S. investment bank. Bear in essence faced Wall Street's version of a run on the bank as customers stopped trading with the firm and demanded their cash late last week.

On Friday, shares of rival Lehman Brothers were battered on fears it might lose investor confidence next, though a half-dozen hedge funds Reuters spoke to were trading with Lehman and Lehman insisted it was in good shape.

Bear's predicament shows how fast things can change on Wall Street.

JPMorgan is paying just $2 a share for Bear, or a total of $236 million, although the bank put a total $6 billion price tag on the deal including litigation and severance costs.

Still, the per-share payout is just one-fifteenth of Bear's stock price on Friday and miles off its record share price of $172.61 last year.

That means Bear's shareholders, including British billionaire Joseph Lewis and Bear Stearns' Chairman Jimmy Cayne, will have their holdings wiped out by the deal.

"It's scary for what it says about the value of financial assets, if a company is worth only a small percentage of book value," said Emanuel Weintraub, managing director of Integre Advisors, a New York-based money management firm.

APOCALYPSE NOW

Bear Stearns, which has more than 14,000 employees, trades interest-rate swaps, credit default swaps, and other derivatives with dozens of banks globally. If Bear Stearns went bankrupt, its trading partners could face big losses and stop lending, paralyzing the global financial system

"It wouldn't just be Bear's problem, it would be everyone's problem," said Marino Marin, an investment banker at Gruppo, Levey & Co who has restructured banks in the past but is not involved in this deal. "It would be apocalyptic."

That's why policymakers moved swiftly on Sunday.

The Fed cut its discount rate to 3.25 percent from 3.5 percent and unveiled a new lending facility at the discount rate for primary dealers -- big Wall Street firms with which it deals directly in financial markets.

"Desperate times need desperate measures. The Federal Reserve is doing what it takes to restore stability and it means cutting the discount rate on a Sunday night in the U.S., then so be it," said Craig James, the chief equities economist at CommSec in Sydney.

Bear Stearns, one of 20 primary dealers, had been unable to borrow directly from the window, because it had previously been open only to deposit-accepting banks.

JPMorgan wrapped up the deal in record time. It said the boards of the two companies had unanimously approved the deal that gives Bear shareholders 0.05473 shares of JPMorgan Chase for every share.

For JPMorgan and its CEO Jamie Dimon, the deal may turn out to be a rare opportunity, some analysts said.

"JPM is getting the number three prime broker, a solid merchant banking portfolio, a good high net worth business and a mortgage servicing business for well below its market value. But BSC has no choice but to sell," said Bernstein Research analyst Brad Hintz.

Dimon is known as a details man, a whiz at numbers and has a track record of fixing up major banks. By working with the authorities to rescue a financial institution, he is following a JPMorgan tradition begun by J.P. Morgan himself in 1907, when he rescued the New York Stock Exchange and other institutions.

The potential downside: Bear Stearns has hard-to-value mortgage bonds and credit derivatives on its books. It may also face legal liability from soured subprime mortgage bonds and other instruments it sold, analysts said.

CRISIS OF CONFIDENCE

Investors lost confidence in Bear in recent weeks because it is the smallest of the major investment banks and was known as as an aggressive trader in credit and mortgage markets.

Bear generates a much bigger percentage of its revenue from the U.S. fixed income markets than its competitors, giving it few other businesses to lean on amid the global credit crisis.

Much like to depositors lining up to pull money from bailed-out British bank Northern Rock, many traders stopped doing business with Bear because they feared the firm might go bust. That drained Bear's cash and made a collapse all the more likely.

Following previous crises, famous firms such as Kidder Peabody, Salomon Brothers and First Boston were forced to seek buyers with robust balance sheets.

JPMorgan, which will guarantee Bear's trading obligations and provide management oversight, expected to close the deal by the end of the second quarter as it already got fast-track approvals from the Fed and other federal regulators.

"This deal had to happen, and JPMorgan is the best candidate for this because their capital position is stronger and their sources of funding are stronger," Weintraub said. "I do think this is the best possible scenario for financial markets."

China says using restraint to quell Tibet unrest

By Chris Buckley and Lindsay Beck

BEIJING (Reuters) - China said on Monday it had shown great restraint in the face of violent protests by Tibetans, which it said were orchestrated by followers of the Dalai Lama seeking to wreck the Beijing Olympics in August.

But even as the governor of Tibet said no guns were used against protesters in the regional capital, Lhasa, troops poured into neighboring areas to enforce control after violent ethnic Tibetan protests.

And Lhasa counted down to a midnight deadline for protesters to give themselves up or face tougher punishment.

The developments underscore how, even as China asserts iron control, the violence will hang over the country, with foreign protests, pleas for leniency and China's crackdown weighing uncomfortably on the build-up to the Games.

Tibet governor Qiangba Puncog said the protests were ignited by supporters of the Dalai Lama just for that end.

"This time a tiny handful of separatists and lawless elements engaged in extreme acts with the goal of generating even more publicity to wreck stability during this crucial period of the Olympic Games -- over 18 years of hard-won stability," he said.

An ethnic Tibetan in Sichuan's Aba prefecture said fresh protests flared near two Tibetan schools on Monday, with hundreds of students facing off against police and troops.

The resident, who asked not be identified, said 18 people, including Buddhist monks and students, were killed when troops opened fire with guns on Sunday. Earlier a policeman was burnt to death, he said. His account could not be immediately verified.

Exiled representatives of Tibet in Dharamsala, India, on Sunday put the protest death toll at 80.

But Qiangba Puncog said only 13 "innocent civilians" had been killed and dozens of security personnel injured in Lhasa when several days of monk-led protests broadened into riots in which houses and shops were burned and looted on Friday.

"I can say with all responsibility we did not use lethal weapons, including opening fire," he said in Beijing, adding that only tear gas and water cannon had been used to quell the region's worst protests in nearly two decades.

He said three fleeing rioters had jumped from roofs, but gave no other details about the fate of protesters possibly killed or arrested. "We will handle this strictly according to the law," he said, vowing severe punishment for the worst rioters.

Peng Xiaobo, who sells clothes in Lhasa, told state television that seven family members were forced to leap from an upper floor when a mob set his ground-floor shop on fire.

His uncle and cousin were burnt to death, while his wife suffered serious injuries, CCTV said. "My cousin only turned 18 in December. She didn't dare jump when the stairs below were burning," Peng said in tears.

The Dalai Lama fled Tibet after a failed uprising against Chinese rule in 1959 and set up a government-in-exile in Dharamsala. Beijing reviles him as a separatist though he says he only wants more autonomy for the region, which Communist troops entered in 1950. The last major rioting in Tibet was in 1989.

MIDNIGHT DEADLINE

Tibet is one of several potential flashpoints for the ruling Communist party at a time of heightened attention on China ahead of the Olympic Games.

The government is worried about inflation and wealth gaps eroding social stability, and this month it said it had foiled two plots by the members of the Muslim Uighur population in the northwestern region of Xinjiang, including one seeking to disrupt the Olympics.

Residents contacted in Lhasa said the city was under tight police watch ahead of a Monday midnight deadline for protesters to give themselves up. Qiangba Puncog said calm was returning.

Foreign reporters are barred from traveling to Tibet without official permission and tourists have been asked to leave. Over a dozen Hong Kong journalists were forced out of Lhasa on Monday after being accused of illegal reporting.

The Tibetan "government-in-exile" in northern India said armed police were carrying out house-to-house searches in Lhasa and had arrested former "political prisoners" in the clampdown.

In Aba, two ethnic Tibetans said hundreds of People's Liberation Army vehicles moved in overnight after unrest in which police said a crowd of protesters had hurled petrol bombs, torching a police station and a market.

Matt Whitticase, spokesman for the London-based Free Tibet Campaign, said a monk in Aba saw members of the People's Armed Police dropping from helicopters.

In Machu, in the province of Gansu, a crowd of 300-400 carried pictures of the Dalai Lama as they marched on government buildings, breaking windows and doors and setting fire to Chinese shops and businesses, the Free Tibet Campaign said.

Speaking from his home in India's Himalayan foothills on Sunday, the Dalai Lama called for an investigation into what he called cultural genocide in Tibet.

Xinhua news agency quoted Tibetan officials as saying the charge was "downright nonsense".

"Idol" fans sing a loud "Hallelujah"

By Geoff Mayfield

LOS ANGELES (Billboard) - A cover of a song written by a composer who's now 73 and performed by a singer who died more than 10 years ago may not sound like the ingredients of a top-selling download. But when the straw that stirs is "American Idol," throw out the recipes.

Contestant Jason Castro delivered "Hallelujah" on the top-rated Fox juggernaut -- not a version reminiscent of the original take by its author, new Rock and Roll Hall of Fame inductee Leonard Cohen, but one that paid homage to second-generation musician Jeff Buckley, who drowned in 1997.

Castro's performance obviously struck a chord with viewers, as Buckley's version tops Hot Digital Songs with 178,000 downloads sold, the largest song spike yet from an "American Idol" performance.

"Idol" has created ripples on the Top Pop Catalog Albums chart since the show's early days and on Hot Digital Songs since that list was launched, but this is by far the biggest impact that an oldie download has derived from the talent contest.

The week after a themed episode of the show in 2007, five Bon Jovi songs charted, including the band's then-new "(You Want To) Make a Memory," which drew 51,000 during the week. Of the four Bon Jovi oldies to make that week's chart, the biggest performer was "Wanted Dead or Alive," which scored 39,000 downloads to rank at No. 20. Until Castro's performance of "Hallelujah," that had been the biggest digital week for an "Idol"-juiced oldie.

Combined sales of all five charting Bon Jovi songs that particular week fell more than 4,000 downloads shy of what Buckley's "Hallelujah" achieves by itself this week. All this for a song that never appeared on any Billboard chart when Buckley was alive. The song, previously used on TV drama "The OC," placed one week in May 2004, at No. 42 on Hot Digital Tracks.

The album that hosted the track, "Grace," also gets a lift this week, bowing on the Top Pop Catalog list at No. 10, selling almost 7,000 copies, more than 13 times its prior-week sales. All but 38 percent of the album's sales come from digital downloads.

Despite press speculation earlier this year that this might be the season Fox's hit franchise starts to fade, the show has bounced back from an opening-week ratings dip. It remains the only current show to draw the kinds of numbers that hit TV shows drew in the '70s, back when many viewers had only three to five channels to choose from.
Still, the music industry can't expect this sort of sales reaction in every subsequent week. Castro obviously touched viewers, as he did "Idol" judge Simon Cowell.

Less clear is the matter of how many downloads Castro's own version of "Hallelujah" sold. Contestant downloads sold via Apple's iTunes Music Store do not appear on Nielsen SoundScan, a stipulation imposed by the show's producers.

L.A. hospital may fire staff over Spears

LOS ANGELES (Reuters) - The hospital where pop star Britney Spears was hospitalized in late January for psychiatric evaluation has suspended some employees and may fire others for looking at the singer's medical records, a source familiar the situation said on Friday.

The UCLA Medical Center, where Spears was under observation, issued a statement saying that all staff must sign confidentiality agreements and the hospital has "stringent policies to protect patient" privacy.

"When possible confidentiality breaches arise, UCLA immediately launches a1n investigation and appropriate disciplinary action would then be initiated," said the statement. "Due to the confidential nature of both patient and personnel issues, no further information is available."

The Los Angeles Times on Friday said UCLA has taken measures to fire at least 13 employees, discipline as many as six more and could take action against six doctors for accessing computers to search through Spears' medical records.

The source, who asked to remain anonymous, did not know the number of employees affected but said the Times story appeared to be accurate.

The Times cited an organizer for a hospital employees union as saying the group was representing three UCLA Medical Center workers who were told they would be fired.

A UCLA Medical Center spokeswoman said the Times' source did not come from hospital, but she declined to comment beyond the hospital's statement.

Under federal law, only doctors and medical staff directly involved with a patient may work with records.
Spears, 26, was hospitalized twice in January and placed under psychiatric observation both times, but her condition remains a mystery.

Early in the month, Spears was taken to Cedars-Sinai Medical Center after going into a fit of hysterics when representatives of her ex-husband tried to retrieve their two children after a weekend visit with Spears.

The second hospitalization at UCLA Medical Center occurred in late January after police were called to her house, but the reason she was taken to the hospital was never revealed.

Since then, a Los Angeles family court has given her father Jamie Spears control of her personal and business affairs, and she has had only limited visitation with her two sons, Sean Preston, 2, and Jayden James, 1.

But while she is considered unable to care for herself by the court, this week the pop singer has worked on a U.S. television program, "How I Met Your Mother," and released an animated video of her latest single, "Break the Ice."

On Monday a hearing in Los Angeles will look into a temporary restraining order against her former, self-styled manager Sam Lutfi.

India says not considering banning BlackBerry

NEW DELHI (Reuters) - India is not considering banning Research In Motion's (RIM.TO: Quote, Profile, Research) (RIMM.O: Quote, Profile, Research) BlackBerry services at this point of time, the top official in the telecoms ministry said on Friday.

Security agencies have raised concerns the service posed a risk as emails sent using it could not be traced or intercepted.

"There is no question of banning at this point," Telecoms Secretary Siddhartha Behura told reporters on the sidelines of an industry conference.

"We are not interested that we say BlackBerry will not used in this country," he said, adding the telecoms department was "very keen" the services should continue.

"The interactions are going on with various stakeholders including the home ministry ... I do believe it will be resolved," Telecoms Minister Andimuthu Raja said.

The department of telecoms has told RIM officials of the concerns and on Friday evening will meet representatives of the four mobile phone service providers who offer BlackBerry in India, Behura said.

Sector leader Bharti Airtel Ltd (BRTI.BO: Quote, Profile, Research), No. 2 Reliance Communications Ltd (RLCM.BO: Quote, Profile, Research), Vodafone Plc- (VOD.L: Quote, Profile, Research) controlled Vodafone Essar Ltd and privately held BPL Mobile provide the service in India.

"We want operators to talk to BlackBerry people and put pressure on them to provide the necessary and satisfactory answers to security agencies. That is what we are talking to them," Behura said.

China sets deadline for rioters to surrender

BEIJING (Reuters) - China set a "surrender deadline", listed deaths and showed the first extensive television footage of rioting in Lhasa on Saturday, signaling a crackdown after the worst unrest in Tibet for two decades.

But a source close to the Tibetan self-proclaimed government-in-exile suggested China's official death toll of 10, which comes just months before the Beijing Olympics, may not tell the full story.

Xinhua news agency said the 10 "innocent civilians" died in fires that accompanied bitter clashes in the remote, mountain capital on Friday. It said no foreigners died but gave few other details, and the report could not be verified.

The source close to the Tibetan exile administration in India said at least five Tibetan protesters were shot dead by troops, and other groups supporting Tibetan independence have claimed many more may have died.

"Law enforcement authorities in China's Tibet Autonomous Region issued a notice on Saturday ... demanding the lawbreakers to give themselves in by Monday midnight, and promised that mitigation and leniency would be given to those who surrender," Xinhua said.

China has accused followers of Tibet's exiled spiritual leader, the Dalai Lama, of masterminding the rioting, which has scarred its image of national harmony in the build-up to the Beijing Olympics and already sparked talk of a boycott.

The Olympic torch is to arrive in Lhasa in a matter of weeks.

Tibetan crowds in the remote mountain city attacked government offices, burnt vehicles and shops and threw stones at police on Friday in bloody confrontations that left many injured.

A Reuters picture showed a protester setting fire to bicycles and a Chinese national flag. Another depicted security personnel shielding themselves against rocks hurled by protesters.

Television footage showed plumes of smoke rising over Lhasa and individual buildings ablaze.

Qiangba Puncog, chairman of the Tibet Autonomous Regional Government, told reporters in Beijing that Tibetan authorities had not fired any shots to quell the violence in Lhasa, which Xinhua said had "reverted to calm".

But the International Campaign for Tibet, a group that supports demands for Tibetan autonomy, cited unconfirmed reports of scores of Tibetans killed and hundreds of local university students arrested.

John Ackerly of the group said in an e-mailed statement he feared "hundreds of Tibetans have been arrested and are being interrogated and tortured".

Residents of Lhasa waited anxiously in homes and closed shops on Saturday, wondering if the day would bring fresh confrontation.

"It's quite tense still," said one hostel manager who requested anonymity, as did other residents spoken to.

"We don't dare go outside, so I can't tell you what's happening," said one.

Xinhua said its reporters in Lhasa on Friday saw many rioters "carrying backpacks filled with stones and bottles of inflammable liquids, some holding iron bars, wooden sticks and long knives, a sign that the crowd came fully prepared and meant harm"."It's quite tense still," said one hostel manager who requested anonymity, as did other residents spoken to. "We don't dare go outside, so I can't tell you what's happening," said one.

NO CHANGE OF POLICY

The riots emerged from a volatile mix of pre-Olympics protests, diplomatic friction over Tibet and local discontent with the harsh ways of the region's Party leadership.

China has chided the leaders of the United States and especially Germany in past months for hosting the Dalai Lama, saying such acts boost what they call his "separatist" goals. It has also urged India to stop protests there by exiled Tibetans.

While it was uncertain whether the clashes would flare again over the weekend, Beijing has already made clear it saw no reason to change its policies in Tibet, where many locals resent the presence of the Han Chinese, China's biggest ethnic group.

"We are fully capable of maintaining the social stability of Tibet," Xinhua quoted an official as saying in a statement repeated across Chinese state media on Saturday.

But already the protests have become an international issue in relation to Beijing's Games, which it hopes will showcase China's economic progress and social harmony.

The Games should be boycotted if Beijing mishandles the protests, Hollywood actor and Tibetan activist Richard Gere said.

But asked whether he thought the unrest in Tibet would affect the torch relay, Sun Weide, spokesman for the Beijing Organizing Committee for the Olympic Games, said no.
"The preparations for the Torch relay in Tibet and taking the flame up Mount Qomolangma have been progressing smoothly," he said. Mount Qomolangma is better known as Mount Everest.

Cuba lifts ban on computer and DVD player sales

By Marc Frank

HAVANA (Reuters) - Communist Cuba has authorized the unrestricted sale of computers and DVD and video players in the first sign that its new president, Raul Castro, is moving to improve Cubans' access to consumer goods.

An internal government memo seen by Reuters on Thursday said the appliances long desired by Cubans can go on sale immediately, although air conditioners will not be available until next year and toasters until 2010 due to limited power supplies.

Only foreigners and companies can buy computers in Cuba at present, while DVD players were seized at the airport until last year, when customs rules were eased.

Now Cubans will be able to buy them freely, paying for them in hard currency CUCs, or convertible pesos, worth 24 times more than the Cuban pesos state wages are paid in.

"Based on the improved availability of electricity, the government at the highest level has approved the sale of some equipment which was prohibited," the memo said.

It also listed television sets, which were already on sale, electric pressure cookers and rice cookers, electric bicycles, car alarms and microwave ovens.

Raul Castro, 76, has led Cuba since July 2006 when his older brother Fidel Castro provisionally handed over power after intestinal surgery from which he has not fully recovered.

The younger Castro was formally named president on February 24, becoming Cuba's first new leader in almost half a century, and he promised to ease some of the restrictions on daily life.

"The country's priority will be to meet the basic needs of the population, both material and spiritual," he said as he replaced Fidel Castro, a staunch critic of capitalist consumer society.

Last year, under Raul Castro's provisional government, customs regulations were eased to allow Cubans to bring in some electronic equipment and car parts.

AIR CONDITIONERS AND TOASTERS

The new memo circulated within the state-run retail system said Cubans will have access to a second group of products in 2009, including air conditioners, which are much in demand to help endure the hot summer days in the tropical country.

If Cuba's electricity supplies permit, additional appliances to be sold freely in 2010 include toasters and electric ovens, the memo said.

Cubans were delighted with the prospect of being able to buy items such as microwave ovens and air conditioners that were previously only available as stolen goods on the black market.

Shop attendants in central Havana had not heard about the measure but said there was great demand for the items.

"That's great. I hope this is the necessary start along a new path," said second-hand clothes vendor Maritza Hernandez, eager to see further reforms to Cuba's command economy.

The sale of many electric appliances was banned in the 1990s when the collapse of the Soviet Union deprived Cuba of billions of dollars in subsidies and oil supplies, resulting in an energy crunch and daily blackouts of as long as 18 hours.

Cuba put an end to power cuts in 2006 by importing hundreds of electricity generators run on fuel supplied by Venezuela, its main foreign ally.

Raul Castro has encouraged debate of Cuba's economic woes and has received a torrent of complaints focusing mainly on poor wages and limited access to consumer goods that are priced in hard currency.

In December, he said Cuba had too many restrictions and last month, formally assuming leadership, he vowed "in the next few weeks we shall start removing the most simple of them."

Many Cubans expect the state to soon allow them to buy cellular telephones. While they will now be able to buy computers, access to the Internet remains controlled by the government.

Nine Inch Nails album earns $1.6 million on Web

DENVER (Billboard) - The online release of the new Nine Inch Nails album, "Ghosts I-IV," resulted in just under 800,000 transactions in its first week, totaling $1.6 million in revenue, the industrial-rock band has revealed.

The tally includes free and paid downloads, as well as advance orders for physical configurations like various limited-edition vinyl releases, CDs, and a boxed set.

"Ghosts I-IV," the band's first release since becoming a free agent last October, went on sale March 2 at its Web site, www.nin.com. Fans can receive the first nine songs from the 36-track project for free, or can pay $5 for the entire digital album.

NIN will not release traditional sales figures to SoundScan, whose data are used to compiled the Billboard 200 albums chart.

A $10 double-CD set will reach stores on April 8. A $70 deluxe edition and a $300 autographed version will ship May 1.

After Nine Inch Nails' contract with Interscope expired, the label released a remix album, "Y34RZ3R0R3MIX3D." The band's last studio release, "Year Zero," debuted at No. 2 on the Billboard 200 last April with 187,000 copies.

Reuters/Billboard

Microsoft and Yahoo met to discuss merger

NEW YORK (Reuters) - Microsoft Corp (MSFT.O: Quote, Profile, Research) and Yahoo Inc (YHOO.O: Quote, Profile, Research) met on Monday to discuss Microsoft's takeover offer for the Internet company, the Wall Street Journal reported on Friday, citing people familiar with the matter.

The meeting was said to be the first since Microsoft made its unsolicited offer for Yahoo, worth nearly $42 billion, on January 31. Yahoo rejected the offer as inadequate last month.

The Journal said the meeting wasn't a negotiation and that no bankers were present.

The session was intended to allow Microsoft to present its vision of a combined company, and Yahoo executives mostly listened, the Journal quoted one of the sources as saying.

Microsoft and Yahoo spokesmen declined to comment.

source : www.reuters.com

Beavers, sheep explore sandbars left by Grand Canyon flood

PHOENIX, Arizona (AP) -- The Grand Canyon boasts new sandbars ranging in size from small nooks and crannies to ones as large as football fields, the results of a manmade flood designed to nourish the ecosystem of the Colorado River, an official said.

New sandbars, some as large as football fields, have been formed from manmade flooding in the Grand Canyon.

"On a couple of big sandbars, there were already beaver tracks, bighorn sheep tracks," Grand Canyon National Park Superintendent Steve Martin said. "You could see the animals already exploring new aspects of the old canyon."

The three-day flood last week was designed to redistribute and add sediment to the 277-mile river in the Grand Canyon, where the ecosystem was forever changed by the construction of a dam more than four decades ago.

The sediment provides a habitat for plants and animals, builds beaches for campers and river runners and helps protect archaeological sites from erosion and weathering.

But since 1963, the Glen Canyon Dam just south of the Arizona-Utah state line has blocked the sediment from the Colorado downstream, turning the once muddy and warm river into a cool, clear environment that helped speed the extinction of four fish species and push two others near the edge.

Martin, who returned on Tuesday from a five-day trip down the river to see the initial impacts of the flood, said even the ambience of the canyon has changed. View photos of flooding »

"It changes the feeling of the canyon as you see the sediment along the shoreline from a feeling of increased sterility to one of a greater amount of vibrance," he said. "The benefits are substantial."

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• Grand Canyon flood aimed at nourishing ecosystem

During the flood, flows in the Grand Canyon increased to 41,000 cubic feet per second for nearly three days -- four to five times the normal amount of water released from the Glen Canyon Dam. Water levels along the river rose between 2 and 15 feet and left sediment behind when the four giant steel tubes releasing the water from the dam were closed.

Officials released similar manmade floods into the canyon in 1996 and in 2004.

But those floods actually resulted in a net reduction in overall sandbar size because they were conducted when the Colorado River was relatively sand-depleted, according to the U.S. Geological Survey. Officials believe this year's flood will be beneficial because sand levels in the river are at a 10-year high and are three times greater than 2004 levels.

Whatever benefits come from this year's flood, however, will be eroded within 18 months without additional floods every year to 18 months depending on the amount of sediment available, Martin said.

In its environmental assessment on Glen Canyon Dam releases, the U.S. Bureau of Reclamation calls for no other high-flow releases until after 2012.

The Grand Canyon Trust, a Flagstaff-based group that has been critical of the bureau's management of the dam, is calling for more regular high flows and plans to legally challenge the bureau's environmental assessment in federal court.

"It's kind of like when President Bush landed a jet on the aircraft carrier and held up a banner that said `Mission Accomplished,"' said Nikolai Lash, senior program director at the trust. "Reclamation has come in with a lot of show and fanfare from last week's event and we're seeing the benefits of doing these high flows. But we know that they're short-lived and the Grand Canyon deserves long-lived benefits, long-lived restoration."

Scientists will collect data on the flood's effects through the fall. Initial reports will be available late this year or early next year. A complete synthesis of the results, which will include comparisons to the 1996 and 2004 floods, will be finished in

Iraq archbishop kidnappers wanted $1 million

MOSUL, Iraq (Reuters) - Kidnappers of a Chaldean Catholic archbishop found dead in the northern Iraqi city of Mosul had demanded a $1 million ransom, a senior police official said on Friday.

Paulos Faraj Rahho, the archbishop of Mosul, 390 km (240 miles) north of Baghdad, was abducted on February 29 after gunmen attacked his car and killed his driver and two guards.

Rahho's body was found in an empty lot in eastern Mosul on Thursday and is due to buried on Friday. Iraqi Prime Minister Nuri al-Maliki has blamed al Qaeda for his death.

"Reports reached us that there were talks between the kidnappers and relatives of the kidnapped archbishop ... we heard that a ransom demand reached $1 million," said Brigadier-General Khaled Abdul Sattar, the police spokesman for Nineveh province, of which Mosul is the capital.

Andraws Abuna, assistant to the Chaldean patriarch of Baghdad Cardinal Emmanuel III Delly, said there had been talks between Christian officials and the kidnappers but he did not know about the ransom.

The U.S. military also said it had no details about the ransom but U.S. commanders in northern Iraq have said the kidnappers may have wanted money.

Abuna said the Church in Mosul had received a call on Thursday telling them Rahho was dead.

Church members found his half-buried body in an empty lot and took it to Mosul morgue, Abuna said, adding he did not know who made the call.

Chaldeans belong to a branch of the Roman Catholic Church that practices an ancient Eastern rite and form the biggest Christian community in Iraq.

Rahho's death drew condemnation from the Vatican, President George W. Bush and Maliki.

Police said it was not clear whether Rahho, 65, had been killed or died of other causes. He appeared to have been dead a week and had no bullet wounds, police at the morgue in Mosul said. He was dressed in black trousers and a blue shirt.

Sattar said the body showed signs of decomposition.

A number of Christian clergy have been kidnapped and killed and churches bombed in Iraq since the 2003 U.S.-led invasion. A former archbishop of Mosul, Basile Georges Casmoussa, was kidnapped in 2005 but was released after a day in captivity.

You Tube lets developers to build their own youtubes

SAN FRANCISCO (Reuters) - YouTube, Google Inc's popular video sharing site, is giving away tools that let Web developers tap the underlying database functions of YouTube, in effect allowing users to build their own YouTubes.

The Silicon Valley-based video-sharing site said on Wednesday that it is providing wholesale access to YouTube's extensive video library, global audience, and the underlying video hosting and streaming network that powers YouTube.

The move goes significantly beyond the current access to YouTube videos in which any Web user can copy and embed selected videos onto their own Web pages.

YouTube said its latest customization offerings allow anyone building a Web site or Internet-connected software program to upload videos straight to YouTube. They can fetch video feeds, comments, responses or playlists from YouTube.

What YouTube is offering parallels an earlier move by Yahoo Inc to open up the ability of its Flickr photo-sharing site to provide deep access to Web developers in order to embed underlying features of Flickr in other sites.

Web site developers can let users rate videos or add them to a favorites list embedded within their own sites. They can also customize and control the Adobe Systems Inc Flash video playing software through which videos are viewed.

The expansion of what is known in technical jargon as APIs, or Application Programmer Interfaces, lets developers build a so-called "chromeless" Flash player -- a video-viewing window that is stripped of formatting such as title bar, browser buttons or status bars so they can create their own players.

These free customization features can be used in conjunction with the existing APIs which launched last year and which provide the ability to view videos on other sites and to search for videos on YouTube.

By adding underlying features and functions of YouTube, developers can enable users to publish videos directly from their mobile phone devices or encourage new users to share videos to the Web site, as if they were on YouTube itself.

AOL to buy Bebo social network for $850 million

NEW YORK (Reuters) - Time Warner Inc's AOL Internet division said on Thursday it will buy social network Bebo for $850 million in cash, bolstering its consumer Internet offerings even as the media conglomerate mulls splitting off the business.

Bebo, which claims a global membership of about 40 million users, is the top social network in Britain, Ireland and New Zealand, it said. It is No. 3 in the United States behind News Corp's MySpace and Facebook.

"Bebo's dynamic management team recognizes that the Internet is less about destination and more about connecting people, culture and lifestyles," AOL President Ron Grant said in a statement.

Bebo President Joanna Shields will continue to run Bebo and will report to Grant after the transaction closes.

China overtakes U.S. as top Web market

SHANGHAI (Reuters) - China has surpassed the United States to become the world's largest Internet market by number of users, a research firm said on Thursday. The estimate by Beijing-based BDA was based on data from China Internet Network Information Center which indicated that the country's Internet users totaled 210 million at end-2007.

Nielsen/NetRatings put the United States Web population at 216 million for the same period, BDA said.

"Based on these sources and the assumption that these markets have continued to grow in 2008 to date at the same rates that they grew in 2007, we can conclude that China has by now comfortably surpassed the United States as the world's largest Internet population," analyst Bin Liu said in a statement.

BDA added that it expected e-commerce to become the next boom sector in China, as businesses take advantage of the mass market of consumers already online.

Google to unveil new ad service for publisher

NEW YORK (Reuters) - Web search giant Google Inc plans to unveil a new service that Web publishers can use to manage their online ad sales and serve up ads each time a consumer pulls up a Web page, the Wall Street Journal reported on Thursday.

The new Ad Manager service will provide the ad service free, said the Journal.

Google is hoping that Ad Manager users will agree to carry some ads Google sells in any vacant ad spots on their own Web sites, and Google would take a commission on revenue from any ads it sells, said the report.

A Google spokesperson was not immediately available.

Spitzer's escort: 'I love who I am'

NEW YORK (CNN) -- When the Emperors Club VIP said it was sending Kristen, a call girl it described as a "petite, very pretty brunette, 5 feet 5 inches, and 105 pounds," Client 9 was pleased.

Ashley Alexandra Dupre writes on her MySpace page: "I have been broke and homeless."

"Great, OK, wonderful," he told the escort service's booking agent, according to a federal affidavit.

Client 9, later revealed to be New York Gov. Eliot Spitzer, was caught arranging the liaison on a federal wiretap. It was the beginning of the end for him.

For the woman at the heart of the prostitution scandal, it was just another step on what she calls an "odyssey" of degrading abuse and high aspirations.

Court documents reportedly identified Ashley Youmans -- now known as Ashley Alexandra Dupre -- as Kristen, the high-priced prostitute who met with Spitzer at the Mayflower Hotel in Washington on February 13.

Dupre is a 22-year-old would-be singer from New Jersey, the New York Times reported Wednesday.

She has not been charged with any crime.

Dupre made a brief appearance Monday in U.S. Magistrate Court as a witness against four people charged with operating Emperor's Club VIP, the prostitution ring, the Times said.

Spitzer announced his resignation Wednesday as governor of New York, two days after reports of his connection to the Emperors Club VIP emerged

Take Two is offered by EA ( Electronic Arts )

SAN FRANCISCO (Reuters) - Electronic Arts Inc (ERTS.O: Quote, Profile, Research) on Thursday launched a tender offer for rival video game maker Take-Two Interactive Software Inc (TTWO.O: Quote, Profile, Research) at $26 a share, indicating its $2 billion bid is turning hostile.

Take-Two, publisher of the popular "Grand Theft Auto" video games, last month rejected EA's unsolicited all-cash offer at the same price. The bid represents a 64 percent premium over Take-Two's closing stock price on February 15, the last trading day before EA sent the proposal to the company.

"We believe Take-Two investors will see our tender offer as the best way to maximize the value of their investment in Take-Two," EA Chief Executive John Riccitiello said in a statement.

Take-Two Chairman Strauss Zelnick has said the bid was "the wrong price and the wrong time," arguing that EA was trying to buy his company on the cheap just before the April 29 launch of "Grand Theft Auto 4."

Take-Two this week forecast quarterly earnings above Wall Street estimates, saying orders for "Grand Theft Auto 4" were better than expected.

Earlier this week, Take-Two's two biggest shareholders disclosed that they had drastically cut their stakes, potentially undermining management's stance that the $1.9 billion buyout offer was too low.

U.S. mutual fund company Oppenheimer Funds, Take-Two's biggest shareholder, halved its holdings to 8.8 million shares, reducing its stake to 11.5 percent from 23 percent, according to U.S. regulatory filings.

FMR LLC, the parent company for the Fidelity mutual funds and the second-largest owner of Take-Two shares, reported that it had slashed its stake to 2.75 percent from 14.7 percent.

But Zelnick said earlier in the week that the big stock sales did not cause executives to reconsider their rejection of EA's offer.

"It certainly doesn't put any pressure on us," Zelnick said. "Who owns your shares isn't really the issue; after all, we're here for all the shareholders."

Take-Two shares closed up 1 percent at $24.91 on Wednesday, but have fallen from a high of $27.61 set on February 28, shortly after EA announced its offer.

EA's tender offer will expire at midnight on April 11, but could be extended. Take-Two's annual meeting is scheduled for April 10.

Morgan Stanley & Co Inc is dealer manager for the tender offer, for which Georgeson Inc is information agent.

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