Silicon Valley Wire

Nektar Therapeutics to Acquire Aerogen for $32 Million

San Carlos, Calif. -- Nektar Therapeutics, a San Carlos-based developer
of drug delivery technologies, said on Monday that it will acquire
Mountain View-based Aerogen, a maker of nebulizer products that treat
respiratory disorders, for $32 million in cash and stock. The deal consists
of about $8 million and cash and $24 million in stock. Nektar said that the
deal will add inhaleable liquid drug technology to its portfolio of
inhaleable powdered drug technologies.
http://biz.yahoo.com/bw/050815/155358.html?.v=1

Fremont-Based Cardima Secures $2 Million Credit Facility

Fremont, Calif. -- Cardima, a Fremont-based developer of microcatheter
systems for the treatment of atrial fibrillation, said on Monday that it has
signed a deal to receive up to $2 million under a new loan facility with
Apix International. Cardima already has received an initial $500,000 in
bridge financing, and used a portion of that to retire its outstanding
secured loan agreement with Agility. Under the agreement, the company
will receive another $500,000 by August 28, then the remaining $1
million in equal tranches in September and October.
http://biz.yahoo.com/bw/050815/155828.html?.v=1

3i, Sanderling Lead $3 Million Round for Triage Wireless

Menlo Park, Calif. -- 3i, a Menlo Park-based venture capital firm, said on
Monday that it and San Mateo-based Sanderling Ventures have co-led a
new $3 million funding round for San Diego-based Triage Wireless, the
developer of a technology platform that measures blood pressure along
with other vital signs without using a cuff. It was the company's first
round. The company said that it plans to use the funding to continue its
device development and pursue regulatory clearance from the FDA.
Triage's system measures a number of biometric parameters through a
disposable patch sensor, then uses the information to calculate blood
pressure and other vital signs
http://biz.yahoo.com/bw/050815/155210.html?.v=1

Study: 11% of Blog Readers Use RSS Technology to Manage Feeds

New York --About 11% of Weblog readers, blog site visitors who claim
to read blogs regularly or occasionally, use RSS (Really Simple
Syndication) to sort through the increasing number of blogs available,
according to a new study by Nielsen//NetRatings. The firm said that 5%
of blog readers use feed aggregation software and more than 6% percent
use a feed aggregating web site to monitor RSS feeds from blogs. “While
RSS is an established technology, the growing popularity of blogs has
catapulted RSS into the spotlight as a content personalization tool,” said
Jon Gibs, a senior research manager for Nielsen//NetRatings. The
majority of respondents to the survey were less familiar with RSS feeds.
Among the other respondents, 23% understood RSS but did not use it,
while two-thirds either did not understand the technology or had never
heard of it.
http://www.nielsen-netratings.com/news.jsp

Icahn Recommends that Time Warner Sell Cable Unit, Buy Back Stock

New York -- Billionaire financier Carl Icahn is recommending that media
giant Time Warner divest of its cable television business, but -- at least
publicly -- isn't putting pressure on the company to sell Dulles-based
America Online. In a statement released on Monday, Icahn and several
hedge funds, who collectively own 120 million shares of Time Warner,
said that Time Warner has "not moved quickly enough" on measures to
increase shareholder value. Icahn, who said that he plans to meet with
Time Warner CEO Dick Parsons, is recommending that the company
separate its cable business from its content businesses, and immediately
repurchase $20 billion in stock. Reports have circulated in recent days
that Icahn would recommend that Time Warner sell its cable, publishing
and AOL units.
http://biz.yahoo.com/prnews/050815/nym133.html?.v=17

Hewlett, Packard Head Class for This Year's CE Hall of Fame

Palo Alto, Calif. -- The late William Hewlett and David Packard, who
together founded  Palo Alto-based HP and considered among the
founding fathers of Silicon Valley, head this year's list of 11 industry
luminaries elected to the Consumer Electronics Hall of Fame. They will
formally be inducted at the Arlington-based Consumer Electronics
Association's (CEA) annual Industry Forum, October 17 in Las Vegas.
Joining Hewlett and Packard are four leaders of major consumer
electronics companies: Joseph Donahue of RCA; Harry Elias of JVC;
George Fezell of Magnavox and Masaharu Matsushita of Panasonic.
Association executive Saul Gold and retailer Jack Luskin also were
named to the Hall of Fame. Three other noteworthy individuals from the
industry were elected posthumously. They are journalist Art Levis,
inventor and entrepreneur John Winegard and retail pioneer Ken Crane.
The CEA created The Hall of Fame in 2000. Following this year's
induction, it will have 98 members.
http://biz.yahoo.com/bw/050811/115462.html?.v=1   

Palo Alto-Based HP Acquires Scitex Vision for $230 Million

Palo Alto, Calif. -- Hewlett-Packard, the Palo Alto-based technology
giant, said on Friday that it has signed an agreement to acquire most of
the assets of Scitex Vision, an Israeli developer of products used for
"super-wide" digital printing, from parent Scitex for $230 million. HP
said the acquisition will help it expand its presence in the industrial super-
wide printing market used for billboards, banners, street advertising and
packaging. Scitex is headquartered in Netanya, Israel, and had revenue of
$142 million last year. The deal is expected to close within 90 days, when
Scitex Vision will be integrated into HP's Imaging and Printing Group.
http://www.hp.com/hpinfo/newsroom/press/2005/050811a.html

Google Suspends Project to Digitize Copyrighted Library Books

Mountain View, Calif. -- Reacting to criticism from the publishing
industry, Mountain View-based search engine giant Google has
suspended its program to convert millions of books from the Harvard,
Michigan and Stanford university libraries into digital format, the
Associated Press reported on Friday. The company is now asking
publishers to tell it which copyrighted books they don't want included in
the program. The Association of American Publishers has expressed
serious concerns about the Google Print Library Project, fearing the
unauthorized duplication of books and Google's apparent unwillingness to
pay royalties to publishers. "Google's announcement does nothing to
relieve the publishing industry's concerns," said Patricia Schroeder, the
AAP's president and CEO. Google's project also includes books from the
New York Public Library and Oxford University, although those two
libraries are only providing the company with works no longer protected
by copyright.
http://www.publishers.org/press/releases.cfm?PressReleaseArticleID=275
http://biz.yahoo.com/ap/050812/google_library_copyrights.html?.v=2

Japanese Sony Artists Seek iTunes Listings Despite Licensing Issues

Cupertino, Calif. -- Despite the lack of a licensing deal between Sony
Music's Japanese division and Cupertino-based Apple's recently launched
iTunes Store in Japan, a number of Sony's Japanese artists are seeking to
place their music for sale on iTunes, the Associated Press reported. While
Sony recording artist Motoharu Sano has already made some of his songs
available on iTunes Japan, Amuse Inc., a large Japanese music
management firm with a number of Sony acts, said that it is also
interested in placing its artists' songs on iTunes against labels' wishes.
Apple said that it sold over one million songs in the Japanese iTunes
Store's first week of operation.
http://tinyurl.com/cqkea

Sunnyvale-Based Dune Lands Investment from Siemens VC

Sunnyvale, Calif. -- Dune Networks, a Sunnyvale-based a developer of
network traffic management technologies and switching fabrics, said on
Friday that it has received an undisclosed investment from Siemens
Venture Capital, the investment arm of the German technology giant.
Siemens currently uses the company's technology in several of its
products for the metro, core and edge markets. Dune, which also has a
research and development facility in Israel, said that the capital will allow
it to expand its sales, marketing and product development activities.
http://www.dunenetworks.com/news/news_aug_12_2005.html

California Ranks Fourth in Cost of Doing Business

Los Angeles -- Hawaii, New York and Massachusetts are the most
expensive states in the nation in which to do business, according to a new
study by the Milken Institute. Hawaii, which also topped last year's index,
has business costs that are 43% higher than the national average. Second-
place New York's costs are 30% higher and third-place Massachusetts has
costs that are 25% percent higher.  California is fourth and Connecticut is
fifth. The index measures wage costs, taxes, electricity costs and real
estate costs for industrial and office space. Connecticut has the nation's
highest wages, while New York has the highest office space costs. The
states with the lowest costs of doing business are South Dakota, North
Dakota and Iowa.
http://tinyurl.com/ddmgz

Report: 2005 Streaming Ad Revenue Expected to Rise 78%

Dublin -- Streaming audio and video ads will generate $343 million in
revenue this year, up 78% from last year, according to a report from
Dublin-based Research and Markets. The firm expects the market to
remain hot, with revenue growing another 47% in 2006 to $504 million,
In addition, revenue from streaming media subscription services will hit
$608 million in 2005, and is projected to rise 35% in 2006. All told, the
firm predicts that revenue from combined streaming media subscriptions
and downloads will reach $1.35 billion this year, significantly more than
last week's prediction of $950 million from fellow market research firm
AccuStream.
http://www.researchandmarkets.com/reports/c22346

Sunnyvale-Based Yahoo to Invest $1 Billion in China's Alibaba.com

Sunnyvale, Calif. -- Attempting to tap the enormous potential of the
burgeoning Chinese market, Sunnyvale-based Yahoo on Thursday said
that it will pay $1 billion to acquire a 40% stake in Alibaba.com, the
country's largest e-commerce company. Under the terms of the
agreement, Yahoo will add its Yahoo China brands to Alibaba.com , and
the two companies will work together to grow the Yahoo brand in China.
"Yahoo!'s investment underscores our long-term commitment to the
Chinese market," said Terry Semel, the chairman and chief executive
officer of Yahoo. "We believe the combination of Yahoo and Alibaba is
the best approach for Yahoo to win in this region." The deal comes just
days after the wildly successful IPO of Chinese search firm Baidu.com.
http://biz.yahoo.com/bw/050811/105946.html?.v=1

Menlo Park-Based Trinity Ventures Closes New $300 Million Fund

Menlo Park, Calif. -- Trinity Ventures, a Menlo Park-based investment
firm focused on early-stage information technology companies, said on
Thursday that it has closed a new $300 million fund. The firm said that
Trinity Ventures IX will invest in the software, networking systems and
services sectors with a particular emphasis on IT security, business and
consumer online services, digital media and mobile technology. The fund
raises Trinity's cumulative capital under management to $1.2 billion.
Larry Orr, the managing general partner at Trinity, said that the fund was
significantly oversubscribed and closed ahead of the anticipated schedule.
http://biz.yahoo.com/bw/050811/115474.html?.v=1

Shares of Alviso-Based TiVo Plunge on Report of DirecTV Pull-Out

Alviso, Calif. -- Shares of Alviso-based TiVo closed down 6% on
Thursday following a report that satellite television operator DirecTV, it's
largest customer, plans to stop marketing the company's digital video
recorders later this year. Chase Carey, the CEO of DirecTV, told Reuters
that his company -- which accounts for roughly two-thirds of TiVo's
subscriber base -- plans to instead begin offering technology developed
by News Corp., which holds a 34% stake in the company Analysts
believe that the move could be a big blow to TiVo, whose DVRs allow
subscribers to record programs onto a hard disc, and pause and rewind
live TV.
http://tinyurl.com/aljvy

Cupertino-Based Cortina Systems Lands $30 Million in Third Round

Sunnyvale, Calif. -- Cortina Systems, a Sunnyvale-based developer of
digital and analog chips, said on Thursday that it has raised $30 million in
its third round of funding, co-led by new investors Canaan Partners and
JAFCO Ventures. The round also included all of the company's previous
investors. Amir Nayyerhabibi, the president and CEO of Cortina, called
the funding a "strong endorsement of our technology," and said that it
will allow his company to expand its product portfolio. Cortina Systems
specializes in advanced port processors that integrate analog and digital
technology to support multi-service capabilities.
http://biz.yahoo.com/prnews/050810/sfw055.html?.v=22

S.F.-Based Vector Capital to Acquire Register.com for $200 Million

San Francisco. -- Register.com, the New York-based provider of Internet
domain name registration services, has agreed to be acquired for $200
million in cash by Vector Capital Corporation, a San Francisco-based
private equity firm. Under the terms of the agreement, Register.com
stockholders will receive $7.81 in cash for each share of Register.com
common stock. Register.com's board of directors has approved the deal,
which is still subject to shareholder approval. Founded in 1994,
Register.com has about 2.9 million domain names under management.
http://pressroom.register.com/ReleaseDetail.cfm?ReleaseID=170593

Manhattan Associates to Acquire S.F-Based Evant for $50 Million

San Francisco-- Manhattan Associates, an Atlanta-based provider of
supply chain management technology, said on Thursday that it will pay
about $50 million in cash to acquire Evant, a San Francisco-based
provider of supply chain planning and replenishment technologies. Evant
provides technology to more than 60 companies in the retail,
manufacturing and wholesale distribution industries, including many that
are joint Manhattan Associates clients, the company said. "We believe the
extension into supply chain planning and replenishment is a natural
evolution for Manhattan Associates," said Pete Sinisgalli, the CEO of
Manhattan Associates. The deal has been approved by both companies'
boards.
http://www.manhattanassociates.com/news/08112005.html

S.F.-Based Simple Star Lands $6.3 Million from Venrock

San Francisco -- Simple Star, a San Francisco-based developer of
imaging software and services, said on Thursday that it has secured $6.3
million in funding from Menlo Park-based Venrock Associates. Prior to
the investment, the company had operated only on its revenues and angel
funding. Simple Star's PhotoShow platform allows users to author and
view multi-media content on PCs, televisions and portable devices. The
company has licensed its products to companies including Eastman
Kodak, Comcast, Snapfish and Shockwave.
http://biz.yahoo.com/bw/050811/115194.html?.v=1

Accel-KKR Buys Majority Stake of Systems & Software

Menlo Park, Calif. -- Accel-KKR, a Menlo Park-based private equity firm
that invests in software and technology businesses, said on Thursday that
it has bought a majority stake in Systems & Software (S&S), a Vermont-
based developer of software for the utility industry.Financial terms of the
deal were not disclosed. Founded in 1973, S&S makes software that helps
utility companies build and manage the usage, payment, credit and
contact profiles of their service customers. The company currently has
water, wastewater, gas and electric utility customers located in 17 states
and multiple major metropolitan areas, including Detroit, Minneapolis,
Atlanta, and Denver. Burt Willey will continue to serve as S&S's CEO.
http://biz.yahoo.com/bw/050811/115141.html?.v=1

Former WorldCom CFO Sentenced to Five Years in Prison

New York -- Scott Sullivan, the former CFO of WorldCom who served as
the government's chief witness against former company head Bernard
Ebbers, on Thursday was sentenced to five years in prison. U.S. District
Judge Barbara Jones called Sullivan "the architect" of WorldCom's $11
billion accounting scandal, but chose to sentence him to far less than the
maximum 25 years before of his cooperation with the government and the
fact that his wife is seriously ill, the Associated Press reported. Ebbers
was sentenced to 25 years in prison last month. Sullivan became the fifth
and final former WorldCom executive to be sentenced in connection with
the scandal. He must report to a federal prison in Pensacola, Fla., near his
home, on November 11. WorldCom is now known as MCI and is based in
Virginia. 
http://tinyurl.com/9vzpv
http://tinyurl.com/8xog2

Bay Area CEOs to Continue Hiring Trend; Few Layoffs Planned

San Francisco -- Despite the recent spate of high-profile layoffs
announced by local companies,  38% percent of Bay Area CEOs and top
business executives surveyed by the Bay Area Council maintain that they
will continue increasing their Bay Area workforce in the next six months.
Another 51% say that they will keep their current regional workforce
stable and only 8% plan layoffs. The council said that the trends may
show that the layoffs at companies like Hewlett-Packard and the former
PeopleSoft are aberrations, not a general marketplace phenomenon.
"What is important to note in this survey is that for the second quarter in a
row very large, medium and small companies are all planning significant
hiring," said Jim Wunderman, the president and CEO of the Bay Area
Council. "That bodes well for a region still struggling from an economic
earthquake that happened four years ago."
http://biz.yahoo.com/bw/050810/105147.html?.v=1

Pleasanton-Based Tentoe Secures $7.2 Million in Second Round

Pleasanton, Calif. -- Tentoe, a Pleasanton-based developer of software
designed to speed product and promotional information to sales and
marketing channels, said on Wednesday that it has raised $7.2 million in
its second round of venture capital funding from Menlo Ventures. The
company said that it will use the funds to continue its aggressive product
development, as well as to add an undisclosed number of employees to
help it expand its market presence. Tentoe's manufacturer clients include
Canon, Epson, Fuji and Panasonic. The data  is then accessed daily by
such Amazon, CompUSA, Office Depot and Wal-Mart.
http://tinyurl.com/7u5kk

CEO Of Cisco Calls Acquisition of Nokia "Extremely Unlikely"

San Jose, Calif. -- John Chambers, the CEO of Cisco Systems,
downplayed a possible acquisition of Nokia by Cisco, calling such an
action "extremely unlikely" and labelling the recent press speculation as
"rumours." On Sunday, The Business newspaper in Britain reported that
Cisco Systems, the large networking company, was considering an
acquisition of Finnish wireless technology company Nokia. However,
during interviews on Wednesday, Chambers discounted any possible
acquisition, saying Cisco generally acquires small companies with a niche
technology. "If I was betting on it, I'd bet against it," Chambers told
CNBC.
http://tinyurl.com/aarob

Blockbuster Raises Online DVD Rental Prices in Line with Netflix

Los Gatos, Calif. -- Blockbuster on Tuesday raised the price for its online
DVD rental service from $14.99 to $17.99 per month, bringing it back in
line with pricing at its main competitor, Los Gatos-based Netflix. The
move came as the company reported a loss for the recent quarter that was
double analysts' estimates, blamed on weak rentals of new releases and its
decision to eliminate late fees. Blockbuster said that its online DVD
rental service now has more than 1 million members, and that it added the
same number of net new subscribers during the first half of 2005 as did
Netflix. The company expects to claim 2 million subscribers by the end of
the first quarter.
http://biz.yahoo.com/prnews/050809/nytu092.html

Apple to Provide Canadians With "iPod Tax" Refunds

Cupertino, Calif. -- Cupertino-based Apple said that it will provide a
refund of the "iPod tax" charged to its Canadian customers, in light of a
Supreme Court of Canada ruling last week that overturned the tax. The
iPod tax had been seen as a means of compensating artists and copyright
holders for potential losses due to their ability to house pirated music.
Canada charges similar taxes on the sale of blank cassettes and CDs. The
Canadian Private Copying Collective had collected about $4 million CDN
since Dec. 2003, when the government added a tax of between $10 CDN
and $25 CDN on the iPod and other portable music players. Apple said
that it will soon announce a claims process so that Canadian customers
may request a refund for the iPod tax.
http://tinyurl.com/72kun 
http://tinyurl.com/8g4h5

Report: U.S. Ringtone Downloads Up Fourfold in the Past Year

New York -- Nearly one-quarter (23%) of American cell phone owners
have downloaded ringtones to their handsets over the past year, up from
just 5% during the previous year, according to a report from market
research firm Ipsos-Insight. Over half of Americans ages 12-24 have now
downloaded a ringtone. "What we're now witnessing in the mobile arena
is similar to what has already occurred in many places outside the U.S.,
and represents yet another opportunity for industries looking to monetize
U.S.-based digital music distribution," said Matt Kleinschmit, a vice
president with Ipsos. The study additionally found that 6% of U.S. cell
phone owners have downloaded a full-length song to their handsets, while
3% have downloaded a short video clip and 2% have downloaded a music
video.
http://www.ipsos-na.com/news/pressrelease.cfm?id=2750

Survey: U.S. Video Gamers Number 76.2 Million, Up 11.4%

New York -- The number of U.S. video game players has increased to
76.2 million, up more than 11% from a year ago, according to a survey of
1,500 households conducted by Ziff Davis Media. "We're seeing a
broadening of the gamer base as gaming goes more mainstream, and
simultaneously a heightening of intensity among core gamers," said John
Davison, the vice president and editorial director of Ziff Davis's Media
Game Group. The study also found that 24% of gamers reduced their TV
watching over the last year, watching on average 16 hours per week
compared with 18 hours per week in 2004. Also, 62.6 million households
currently play console games, compared with 56.6 million who play PC
games.
http://gamegroup.ziffdavis.com/presscenter/pr20050809.html

Pleasanton-Based Polycom to Buy Up to $250 Million of its Stock

Pleasanton, Calif. -- Shares of Pleasanton-based Polycom rose nearly 2%
on Tuesday after the maker of conferencing and collaboration software
announced plans to buy back up to $250 million of its stock. "We believe
the prices at which our stock has recently traded do not reflect the long-
term value of Polycom," said Robert Hagerty, the president and CEO of
Polycom. The company's stock has lost about a third of its value since
December, when it peaked at more than $24 a share. Polycom said that
the new program supersedes an earlier buyback program announced in
August 2004.
http://biz.yahoo.com/bw/050809/95223.html?.v=1

New Leaf Venture Partners Raises $310 Million Healthcare Fund

Menlo Park, Calif. -- New Leaf Venture Partners (NLV Partners), a
venture capital firm with dual headquarters in Menlo Park and New York,
said on Tuesday that it has closed a new $310 million investment fund
dedicated to healthcare technologies. The firm said that will invest
primarily in firms focused on clinical-stage biopharmaceutical products,
early-stage medical devices and molecular diagnostics. The firm also
manages the existing $800 million healthcare technology portfolio of
Sprout Group.
http://biz.yahoo.com/bw/050809/95170.html?.v=1

Spammers Increasingly Pushing Goods Related to Safety

Redwood City, Calif. -- Spammers are increasing attempting to exploit
the fears of e-mail users, with unsolicited emails promoting goods
associated with personal or family safety beginning to flood inboxes,
according to a monthly report on spam by Redwood City-based
Clearswift. The firm said that this new wave of emails now offer a range
of security kits, emblazoned with alarmist headlines such as "Protect your
child from sex offenders! Download now!" and "You can't see it, but it
can see you." "Historically, spammers have generally tried to lure us in
under the false pretence that they are trying to help, offering
antidepressants, enhancement pills and cheap loans," said Alyn Hockey,
Clearswift's director of research. "This shift toward a very calculated
attempt to frighten consumers into making purchases is very well timed."
Financial spam and suspect healthcare offers last month accounted for
36% and 40% of all unsolicited emails, respectively.
http://biz.yahoo.com/bw/050809/95744.html?.v=1

FCC Rules Telcos Need Not Share DSL Lines With Competitors

Washington, DC -- The Federal Communications Commission (FCC) has
ruled that telephone companies that provide DSL Internet access no
longer have to lease their high-speed broadband lines to competitors.
Some analysts believe that the FCC's 4-0 vote could force many smaller
Internet service providers out of business, while others like EarthLink and
AOL could be forced to pay more to telephone companies to use their
lines. The ruling won't go into effect for one year, so that ISPs can inform
customers of the changes and make preparations. The FCC's DSL ruling
follows a recent Supreme Court decision that similarly said that cable TV
providers do not have to open their high-speed networks to competition.
FCC chairman Kevin Martin called the ruling "an explicit recognition that
the telecommunications marketplace that exists today is vastly different
from the one governed by regulators over 30 years ago." Consumer
groups worried the ruling will lead to higher broadband prices.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-260433A1.doc 
http://tinyurl.com/czay9 

Yahoo Among First to Adopt More Accurate Ad Measurement System

Sunnyvale, Calif. -- Sunnyvale-based Yahoo said that it has begun using a
new advertising measurement and reporting system, which will for the
first time count only ads that have been delivered to users. Unlike most
other ad reporting technologies, which count an impression once an ad
leaves the advertiser's server, Yahoo's will now only count ads once
graphics contained in them are displayed on a user's computer. Graphics
contained in pop-up ads blocked by a user's computer, for instance, will
not be counted under the new system. The new system is based on
guidelines developed by the Interactive Advertising Bureau's (IAB)
Global Internet Ad Impression Measurement task force. Other sites that
have completed implementation of the new system include CNET
Networks, Weather.com and Univision.
http://biz.yahoo.com/bw/050808/85436.html 
http://www.iab.net/news/pr_2005_8_08.asp

Online Advertising Market to Reach $18.9 Billion by 2010

New York -- The online advertising market will continue its steady
growth over the next five years, by 2010 reaching $18.9 billion -- more
than double its current level -- according to a new forecast from
JupiterResearch. Search engine advertising is expected to generate more
revenue than standard display advertising by 2010, with classified
advertising growing by nearly 10%. At the same time, advertisers will
also take advantage of the growing number of broadband-connected
households to deliver rich and streaming media advertisements:
JupiterResearch predicts that rich media spending will grow at a 25%
compound annual growth rate and streaming media at a 30% rate over the
next five years.
http://JuipterOnlineAds.notlong.com

Redwood City-Based PacketHop Raises $10 Million in Third Round

Redwood City, Calif. -- PacketHop, a developer of mobile mesh
networking software and multimedia applications for instant wireless
group communications, said on Monday that it has landed $10 million in
its third round of financing and relocated its headquarters from Belmont
to Redwood City. This round was led by GF Private Equity Group, along
with previous investors, including U.S. Venture Partners, Mayfield and
ComVentures. To date, the company has raised $25 million. Michael
Howse, the president and CEO of PacketHop, said that the company's
mobile mesh networks and server-less applications will initially be
deployed by public safety and homeland security agencies, closely
followed by the consumer and corporate markets.
http://www.packethop.com/corporate/pr_15.html

Philips Medical Systems Acquires Stentor for $280 Million

Brisbane, Calif. -- Philips Medical Systems said on Monday that it has
completed its acquisition of Brisbane-based Stentor, a provider of
technology for the distribution and storage of digital medical images.
Philips paid about $280 million in cash for Stentor, which will become
the centerpiece of Philips' overall picture archiving and distribution
business. Stentor expects 2005 revenue to grow to about $50 million and
projects its 2006 revenue annual growth at 50%. The company's business
model is based on a "pay-per-study" business model, in which customers
pay a fee to view, distribute and store medical images rather than
purchasing an in-house system.
http://www.stentor.com/news/pressRelease.php?id=143

Redwood City-Based Funambol Raises $5 Million in First Round

Redwood City, Calif. -- Funambol, a Redwood City-based developer of
mobile open source software, said on Monday that it has raised $5 million
in its first round of funding, co-led by San Francisco-based Walden
International and Miami-based H.I.G. Ventures. Funambol said that it
plans to use the capital expand its engineering, sales and marketing
operations. The company is a commercial provider of mobile open source
software targeting the $300 billion mobile market, and said that its Sync4j
mobile application server is downloaded more than 18,000 times a month.
http://biz.yahoo.com/prnews/050808/nym064.html?.v=14

San Francisco-Based CNET Networks Acquires Metacritic

San Francisco -- CNET Networks, the San Francisco-based technology
focused media company, said on Monday that it has acquired  Metacritic
and its metacritic.com web site.Metacritic.com provides weighted
"Metascores" and summaries of what the top critics are saying about the
latest films, videos, music, games and books. CNET said that the deal
was not material in terms of financial impact or audience size. CNET said
that the metacritic.com web site will continue to be run by its founders,
and the company also plans to integrate relevant content into its games
and entertainment properties, including GameSpot and MP3.com,
initially. Metacritic.com is visited by nearly 170,000 unique visitors a
month.
http://biz.yahoo.com/bw/050808/85307.html?.v=1

Report: Nearly 50 Million Americans Visited Blogs in First Quarter

Reston, Va. -- Nearly 50 million Americans -- or about 30% of the total
U.S. Internet population -- visited weblogs, or "blogs," during the first
quarter, according to a new report from comScore Networks. The number
of visitors increased 45% from the previous year. "The fact that we found
30% of the online population to have visited blogs clearly underscores the
commercial importance of consumer generated and driven media," said
Dan Hess, senior vice president of comScore Networks. The firm said
that blogs of a political nature were generally the most popular, followed
by "hipster" lifestyle blogs, tech blogs and blogs authored by women. The
report also found that, compared with the average Internet user, blog
readers are       significantly more likely to live in wealthier households,
be younger and access the web on high-speed connections
http://www.comscore.com

Report: Cisco Considering Possible Acquisition of Nokia

San Jose, Calif. -- The Business newspaper in Britain reported on Sunday
that San Jose-based Cisco Systems, the large networking company, is
considering an acquisition of Finnish wireless technology company
Nokia. Reuters quoted a Nokia executive who called the report "pure
fabrication based on rumors on the Internet." The report caused both
companies' stock price to rise modestly on Monday amid speculation of a
possible deal. Without naming its sources, the article reported that John
Chambers, the CEO of Cisco, is interested in merging his company with a
major wireless infrastructure company. The U.K. newspaper reported that
Nokia has been identified as the most likely target. Various stock analysts
have discounted the report, noting that Cisco traditionally acquires niche
companies, rather than major technology platform providers.
http://biz.yahoo.com/ap/050808/nokia_cisco.html?.v=3

Survey: Federal IT Managers Leaning Toward Open Source

Potomac, Md. -- An increasing number of government agencies are
choosing open source architecture when upgrading their information
technology systems, according to a new report from Larstan Business
Reports. According to a survey of IT managers in the civilian and defense
sectors, 63% of respondents either agreed or strongly agreed that
architecture with "open" (or accessible) source code should be adopted by
their organization. In addition, 60% agreed or strongly agreed that Unix
and Microsoft environments can be "expensive to deploy and maintain
and can limit overall flexibility."
http://www.larstan.net/linux.htm

Novato-Based SpatiaLight Raises $2.7 Million in Equity Offering

Novato, Calif. -- SpatiaLight, a Novato-based manufacturer of liquid
crystal on silicon microdisplays, said on Friday that it has raised $2.7
million by selling 500,000 of its shares to institutional investors for $5.40
each. Each of the purchasers was an investor in SpatiaLight's November
private placement of convertible notes. The company said that it plans to
use the proceeds for working capital and other general corporate
purposes. Specifically, the company said that the infusion will help it
support LG Electronics' launch of high-definition televisions
incorporating the company's technology.
http://biz.yahoo.com/prnews/050805/sff011.html?.v=22

Hayward-Based Kosan Biosciences to Offer 4.5 Million Shares

Hayward, Calif. -- Kosan Biosciences, a Hayward-based
biopharmaceutical firm developing anti-cancer agents, said that it plans to
offer 4.5 million shares under its existing shelf registration statement.
Underwriters, led by Credit Suisse First Boston, also are expected to be
granted an over-allotment option for up to 575,000 more shares. Kosan is
developing several drugs based on polyketides, a class of natural products
that have yielded numerous pharmaceuticals for the treatment of cancer,
infectious diseases, high cholesterol, transplant rejection and other
diseases.
http://biz.yahoo.com/prnews/050804/sfth070.html?.v=22

Shares of Hayward-Based Impax to Be Delisted from Nasdaq

Hayward, Calif. -- Impax Laboratories, a Hayward-based specialty
pharmaceutical firm, said on Friday that said that it has received notice
from the Nasdaq that its stock will be delisted as of Monday. The
company said that it has been unable to file its annual report for 2004 and
its quarterly report for the first quarter of 2005, both in violation of
Nasdaq compliance rules. The stock could be relisted if Impax becomes
current with its filings within 90 days. In the meantime, the company
expects to list its stock on the Pink Sheets, where subscribing dealers can
submit bid and ask prices on a daily basis, beginning Monday. The
company develops controlled-release and specialty generics, as well as
branded drug products
http://biz.yahoo.com/bw/050805/55098.html?.v=1 .

Cupertino-Based Apple Launches iTunes Music Store in Japan

Cupertino, Calif.-- Cupertino-based Apple has launched an iTunes Music
Store in Japan, offering a library of 1 million songs for about $1.35 each.
The store opened following difficult licensing negotiations with Japanese
record labels, with major label Sony Music yet to license the company its
songs. "We are in talks with Apple, but we have not reached an
agreement at this time," Sony Music Entertainment spokeswoman Kiyono
Yoshinaga told The Associated Press. Apple's iPod player, which
commands 70% of the worldwide MP3 player market, claims just 36% of
the Japanese market. With the Japanese launch, Apple now operates a
total of 20 iTunes stores worldwide. Digital music rival Napster also has
announced plans to launch a joint venture digital music service in Japan
with Tower Records within the next year.
http://biz.yahoo.com/ap/050803/japan_itunes.html

Report: One in Seven Mobiles Become Faulty in First Year

London -- About one of every seven mobile phones become faulty within
just one year of purchase, according to a new report by consumer
watchdog group Which? Of those phones that develop a problem, about
70% do so within six months, the report said. "A one-in-seven chance
your phone's going to develop a fault is way too high," said Malcom
Coles, the editor of Which? "Not only that, but retailers who should be
bending over backwards to help customers who've already suffered the
inconvenience of a fault aren't giving people the help they need." The
firm said that handsets made by Motorola and Sony Ericsson were the
most likely to malfunction, with approximately 20% of owners
reporting faults, while Nokia and Samsung were considered the most
reliable.
http://makeashorterlink.com/?Y5E913F8B

SumTotal Systems to Acquire Pathlore Software for $48 million

Mountain View, Calif. -- SumTotal Systems, a Mountain View-based
maker of learning and business performance management software, said
that it has agreed to acquire Ohio-based counterpart Pathlore Software for
$48 million. Under the deal, SumTotal will pay about $29 million in cash
and 4 million shares of its stock. Pathlore's customer base includes
DaimlerChrysler, Delta Air Lines, Novartis and PNC Bank, as well as
over 100 healthcare organizations and government agencies in 38 states.
Last year, Pathlore reported revenue of $23.9 million, about half of the
revenue reported by SumTotal. The combined company expects to save
$8-$10 million a year in cost synergies.
http://www.pathlore.com/news/detail.asp?numID=139

General Dynamics to Acquire Itronix from Golden Gate Capital

San Francisco -- General Dynamics, the Virginia-based defense
contractor, said that it has agreed to acquire Spokane, Wash.-based
Itronix, a maker of wireless, rugged mobile computers, from Golden Gate
Capital, a San Francisco-based private equity investment firm. Financial
terms of the deal were not disclosed. Itronix offers a range of wireless,
rugged field computing systems, including handhelds, laptops and tablet
PCs. The company, which has about 450 employees at facilities in the
U.S., Canada, Europe and Asia, will become part of General Dynamics'
C4 Systems business unit, which specializes in secure communication
and information systems. Golden Gate Capital and management had
acquired Itronix in late 2003. The deal is expected to close by the end of
September.
http://generaldyn.notlong.com

Infosys to Invest $65 Million in Chinese Development Centers

Fremont, Calif. -- Infosys Technologies, a Fremont-based provider of
information technology services, said on Thursday that it wil invest $65
million over the next five years to set up a pair of software development
centers in China. The new centers, to be located in Shanghai and
Hangzhou, eventually will accommodate 6,000 engineers. The facilities,
expected to start construction by January, will have state-of-the-art
technological infrastructure for software services and recreational
facilities for employees, the company said. Infosys currently has 250
employees in China.
http://biz.yahoo.com/bw/050804/36040.html?.v=1

Mountain View-Based Simpy Hired Raises $3 Million from Angels

Mountain View, Calif. -- Simply Hired, a Mountain View-based search
engine with more than 3.5 million job listings, said on Thursday that it
has raised $3 million in its second round of angel financing. Lead
investors include Rajeev Motwani, a Stanford University computer
science professor and technical advisor for Google, Ron Conway, founder
of Angel Investors and an early investor in both Google and Ask Jeeves,
Kanwal Rekhi, the former CTO of Novell and Garage Technology
Ventures. The company said that it will use the funds to continue product
development and market expansion. Simply Hired aggregates and indexes
data from a variety of sources including job boards, newspaper and
classified listings and company web sites. Earlier this week, the company
launched SimplyFired.com, a web site for fired and laid off workers to
share and submit their stories.
http://biz.yahoo.com/bw/050804/45722.html?.v=1