Google, Microsoft hiring under scanner

The US Justice Department is probing possible collusion in hiring by Microsoft Corp, Google Inc and Yahoo! Inc and several other compa nies, said two people familiar with the investigation.

The investigation may include a dozen technology companies, said the people, who spoke on condition of anonymity.

The Justice Department faces the difficult task of proving that there is an explicit agreement between the companies that they wouldn't hire employees from their rivals, said David Balto, a former antitrust attorney with the Federal Trade Commission.

The investigation adds to the scrutiny of technology companies under President Barack Obama's administration. The makeup of Google's and Apple's boards has already drawn the scrutiny of the U.S. Federal Trade Commission, and the Justice Department is looking into a settlement with publishers over Google's book-scanning project.

Google, based in Mountain View, California confirmed it has been contacted by the Justice Department and is cooperating with the investigation, said spokesman Adam Kovacevich. Yahoo, based in Sunnyvale, California, is also cooperating, said company spokeswoman Kim Rubey. Microsoft spokesman Jack Evans, declined to comment.

Justice Department spokeswoman Gina Talamona declined to comment.

Technology companies often trade workers as they seek to lure the best talent, and sometimes end up in conflict. In 2005, Microsoft, the world's largest software maker, sued after Google lured away Kai-Fu Lee to run a development center in China. The companies settled the suit.

Satyam may lay off 5,000

full board meeting of Satyam Computer is likely to be held on June 11 after its new owner Tech Mahindra assumed charge and the boar d may draw a consensus on the sensitive issue of laying off as many as 5,000 employees in phases.

Sources said the meeting is scheduled to be held on next Thursday or Friday and for the first time the full board -- six government-nominated members and four member from Tech Mahindra (through its arm Venturebay Consultants) -- will discuss the business strategies.

A company spokesperson said as and when the meeting takes place, there will be comprehensive discussions on all related issues. He, however, did not divulge details of the agenda or whether or not the meeting would look at ways on how to rationalise the employee strength.

Sources said given the sensitivities of the situation, the board is likely to draw a consensus on the 'lay offs' to be undertaken which may take the shape of keeping 5,000-10,000 people on the bench (reserve).

Tech Mahindra CEO Vineet Nayar had recently said Satyam has 10,000 surplus staff and the company would look at the 'least painful' ways to handle the situation.

"It is a question of revival and viability", they said. Last week, Corporate Affairs Minister Salman Khurseed had said the government will not turn a blind eye to any lay offs in Satyam.

Google launches 'Google Squared'

Google, already the king of Internet search, rolled out an experimental new search product called "Google Squared."

Google Squared does not provide a list of links to Web pages, like with a traditional Google search, but presents information derived from a query in a spreadsheet-like grid called a "square."

Users of google.com/squared can then build, modify and refine their "square" through further Web searches.

"Unlike a normal search engine, Google Squared doesn't find webpages about your topic -- instead, it automatically fetches and organizes facts from across the Internet," Google said in a preview of the product last month.

In a blog post on Wednesday, Google said Google Squared could be useful when a user needs to make multiple searches to find the information they want.

"It essentially searches the Web to find the types of facts you might be interested in, extracts them and presents them in a meaningful way," Google said.

"If your square isn't perfect at the beginning, it's easy to work with Google Squared to get a better answer," Google added.

The Mountain View, California-based Internet search giant cautioned that Google Squared remains experimental and the technology behind it "is by no means perfect."

Yahoo, eBay look to sell start-ups

Many Internet and media companies that were busy buying start-ups in the boom years could shed assets they no longer deem central to the ir business, as the recession imposes an age of frugality.

Scathed by the heavy losses they incurred when the dotcom bubble burst in 2000, tech companies moved quickly to cut costs and focus on staying profitable as the current recession hit.

Now, as the doldrums linger, many are taking a hard look at the start-ups they bought during the good times, many of which were never a good fit. Some of those acquisitions could wind up right back on the sales block.

Venture capitalists, who invest in start-ups and recover their money by taking them public or selling them, say the dealmaking has already begun. Many expect more sales and spin-offs in the next few months as companies squeeze their assets for cash and reassess business strategies.

"In good times, companies acquire, in bad times, they divest," said Todd Dagres, a venture capitalist whose firm Spark Capital funded hot microblogging site Twitter.

Dagres and other venture capitalists said companies increasingly are seeking out private investors to gauge their interest in dealmaking. The talks usually center on small units that don't carry their own weight, or are no longer considered strategic.

"What you're seeing is very active triage," said Dan Nova, a venture capitalist at Highland Capital Partners. "As Fortune 500 companies focus or refocus their core strategic mission, they're deciding if those acquisitions are still consistent with that mission," Nova said. "If they're not, (they will) try to sell or shut them down."

In recent months, top Web companies like Yahoo Inc and eBay Inc have begun cleaning out their closets. As part of a turnaround strategy under its new chief executive, Carol Bartz, Yahoo has begun axing money-losing properties, such as Geocities, which it acquired in 1999.

Online auction giant eBay recently said it would spin off Skype, the popular Web-based phone company it bought for $2.6 billion in 2005. eBay also sold back StumbleUpon, a start-up that helps people discover online content, to its founders and venture capitalists, two years after buying it for $75 million