The Seattle-Search.com Blog

Yahoo is staking its claim to an expanded role in the Puget Sound thanks to former Microsoft Windows GM David Sobeski, a Yahoo senior VP, who is playing a formative role in formation of the new Yahoo office.

Sobeski disclosed to the Seattle P-I’s Todd Bishop the basics of the new office — 115,000 square feet at Bellevue’s One Twelfth @ Twelfth, enough space for 500 to 600 people — but declined to talk in detail about hiring plans or the work that will take place there.

Sobeski’s remarks on the region were particularly trenchant: “”You’ve got Microsoft, you’ve got Amazon, you’ve got Google, you’ve got Adobe. You’ve got all these guys up here. Now you have us, and you have a pretty good talent pool. You’ve got the University of Washington. … The Pacific Northwest actually has a huge concentration of engineers, of technical people. And it’s not the old COBOL kind of guys. It’s the guys who can go figure out these hard algorithms, be it search, be it contextual advertising, be it data mining, be it any of these things. Because what you really want are just smart algorithmic people. That’s what you’re going for. Is there any difference between writing Windows kernel and writing a great data algorithm? Well, yeah, I get that there’s a difference, but you know what? It’s those smart guys who can build those algorithms, who can do it efficiently, that you want.”

Making the first acquisition in its 11-year history, MSNBC.com, a joint venture between Microsoft and the NBC Universal division of GE, is diving into citizen journalism and social media by acquiring Newsvine.com, a six-employee startup that has helped pave the way in what is known as “participatory journalism.”

Newsvine CEO Mike Davidson will report to Charlie Tillinghast, president of MSNBC Interactive News and publisher of msnbc.com, but otherwise, Newsvine will continue to operate independently.

Tillinghast said msnbc.com was racing to foster a community among its readers and to exploit the power of unmoderated user commentary and ranking of the news. Ideally, he said in an interview, the site would design and build its own tools, but Newsvine, headquartered in downtown Seattle a few minutes from msnbc.com’s newsroom, “is just a great fit.”

Costco.com is the newest member of the online billion dollar sales club.

For the year Costco Wholesale Corp. grew its e-commerce sales by about 39% to $1.22 billion compared with web sales of $880 million in fiscal 2006.

At the same time total revenue rose by 7% and same store sales by 6%. The company, No. 21 in the Internet Retailer Top 500 Guide, reported net income of $1.08 billion on revenue of $64.4 billion for the 2007 fiscal year compared with net income of $1.1 billion on sales of $60.1 billion in the prior year. Amazingly, the Web still accounted for only 2% of total sales.