New research from the University of California-Berkeley shows there's a pronounced class divide between those who frequent the popular social networks Facebook and MySpace. According to the report, Facebook users are more likely to be white, come from wealthier homes and attend college, while MySpace users tend to get jobs after finishing high school instead of continuing their education. Facebook got its start as a social network for high school and college students. Last fall, founder Michael Zuckerberg and co. open up its 9 million-strong user base to anyone, which means it's likely to see its exclusivity numbers drop. …

With the iPhone, Steve Jobs and Apple will take their second stab at reformatting an industry-mobile phone, which requires striking an even trickier balance between three distinct entities: wireless carriers, mobile phone makers, and increasingly, Hollywood. Apple enters the market as a handset maker in the unique position of having strong ties with Hollywood and Web content providers through its other consumer electronics devices. Because of this, the iPhone marks a significant power shift in the dynamics between the three disparate entities, uniting content owners and cell phone makers on one side, leaving big telecom on the other. …

As Rupert Murdoch patiently awaits Dow Jones' decision about News Corp.'s takeover offer, analysts -- expecting that deal to happen -- estimate that the media giant would allocate the expected $5 billion to further Internet acquisitions. "Rupert has a shopping list. Dow Jones is at the top of it, but it's not the end of the list," a source told the Financial Times. Near the top of that list, perhaps, is a deal that would involve the sale or a possible merger of its massive social network MySpace. At an estimated value of $10 billion, some feel …

The Web industry scoffed when Jake Winebaum and Sky Dayton bought the domain Business.com for $7.5 million in 1999. At that time, the purchase set a record as the highest for a domain name. The pair turned Business.com into a Web portal that receives conversion fees for sending traffic to sites selling real products and services. Now the duo are ready to sell, and sources say Business.com could fetch upward of $300 million. Not a bad return, even when you consider that the Santa Monica, Calif. company posted $15 million in earnings before taxes, interest, depreciation and amortization …

Are social networks running out of steam? Judging by the rapid resurgence of Facebook, not yet. But the manner in which users are change allegiances is worrying for advertisers and media partners. The movement of Silicon Valley contacts from one social network to another highlights the fickle nature of social media. First, it was Friendster, then it was Orkut, MySpace, LinkedIn and now, Facebook. Even MySpace apparently isn't hip anymore, according to industry bloggers, which leads to the conclusion that social networks are the Web's ultimate representation of flash mob mentality. The Internet is a place where …

The FBI hopes to deter bot-herders by warning consumers whose computers had been hijacked. After the recent indictment of three bot-herders revealed the IP addresses of more than 1 million users, the FBI decided to use the door-to-door approach to spur a public awareness movement, warning "botnets" pose a threat to national security. Witness the crippling denial of service attacks in Estonia. Still, regular users either don't know or don't care that their computer is under the control of some cyber-geek who wishes to exact revenge on a company. Moreover, the FBI's approach to solving the problem--asking users to …

They say any publicity is good publicity, and Yahoo is getting its fair share. Of course, the portrait of Yahoo's CEO switch as a temporary band-aid prior to a sale or merger isn't necessarily good publicity (except maybe for shareholders). Neither is the revelation that next quarter will likely be disappointing. If nothing changes by say, 2008, then one of a few takeovers become possibilities. Private-equity firms have shown they like an Internet fix-'em-upper, DoubleClick being the most famous example, and at 7-1 odds, Ka group of private investors would have their hands full dealing with Yahoo's corporate …

Anyone can syndicate their own celebrity on the Web through social networking profiles, blogs, photo-sharing sites and confessional online videos. And millions do. As Dave Wienberger, author of "Everything Miscellaneous: The Power of the New Digital Disorder," notes, this is the danger for future generations. As they grow up seeking jobs, especially public office, they may regret having left their digital footprint all over the Web. For example, George W. Bush and Bill Clinton may never have been elected president had camera phones and YouTube existed in their college days. Anyone and everyone is under surveillance now. …

A new report from PricewaterhouseCoopers claims that global Web spending will continue to grow by double digits through 2011, fueled by higher-speed Web connections and the increased adoption of the Web as an entertainment medium by consumers. The PwC Global Entertainment and Media Outlook report claims that spending across the globe will increase at an average clip of 10.7%, hitting $78.4 billion by 2011, a 60% rise from last year's $47.2 billion. The U.S. is currently the world's largest online ad market, and that should continue over the next four years, as Web spending rises to $35.4 billion, …

Jerry Yang has been steering the Yahoo ship for just one day, but the Yahoo board saw fit to go through with the acquisition of sports publisher Rivals.com, which focuses mainly on college and high school sports. Yahoo is currently ranked second in sports, with 15 million unique users behind ESPN.com with 17.5 million monthly users, according to comScore Media Metrix. Other major competitors include MSN/Fox Sports and AOL Sports. Rivals.com is 19th, with 1.4 million uniques. The acquisition is believed to be in the $100 million range. It looks like the Web giant has shifted its focus …