BUSINESS CLIPS

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IAC GETS CUTE

Barry Diller's IAC/InterActiveCorp will launch Zwinky Cuties, a new virtual world for preteen girls ages 6 and up, on Tuesday in New York. One of its first major launches since IAC's split into five separate companies, the virtual world will be formally unveiled at a news conference in Times Square. Walt Disney's Hollywood Records pop star Jordan Pruitt will be on hand to provide musical entertainment. The virtual world will feature games and interactive activities.

litvack on yahoo's case

The Justice Department has hired former Disney vice chairman Sanford Litvack to take a closer look at Yahoo's plan to boost profit via an online advertising partnership with rival Google. Litvack served as chief of the Justice Department's antitrust division during the Carter administration.

U-VERSE ADDS ROOMS

AT&T's U-verse video service will let subscribers watch recorded TV shows on as many as eight TV sets in an upgrade designed to make the service more competitive.

O'NEIL TUNES FOR ASTRAL

Canadian broadcaster Astral Media on Tuesday hired veteran ad executive Sherry O'Neil to run its Toronto radio stations. Montreal-based Astral named O'Neil, who was managing director of OMD Canada, vp and GM of Toronto market stations and chief planning officer for the Astral Media Radio division. Astral became Canada's top radio broadcaster this year after acquiring rival Standard Broadcasting.

BRADFORD to YAHOO

Yahoo has appointed former Microsoft online ad sales executive Joanne Bradford to boost its sales team. David Karnstedt, the firm's former senior vp U.S. sales, has left Yahoo. Bradford had a stint at online TV spot service provider Spot Runner.

MICROSOFT SOLID

Microsoft has not seen a slowdown in consumer spending from the slumping U.S. economy at its entertainment and devices division, which includes the Xbox and Zune businesses, the unit's president, Robbie Bach, said Tuesday. He added that he expects Xbox to have a strong holiday shopping season, and he touted new Zune features.
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