Silicon Valley Wire

Valuations of Venture-Backed Companies Reach Highest Level Since

San Francisco -- Buoyed by later-stage investing in the information
technology and health care sectors, valuations of U.S. venture-backed
companies hit their highest level in four years during the most recent
quarter. Overall, their medium pre-money valuation reached $16.8
million, about $4 million higher than this time a year ago, according to
new figures released by Dow Jones Newswires' VentureOne. It marks the
highest median pre-money valuation since the second quarter of 2001,
when the figure reached $17.4 million. The trend was particularly strong
in the IT sector, where the median valuation for companies rose to $18.4
million, the highest level since 2000, and the median amount paid for a
company was $59.5 million, nearly $25 million more than a year ago.
http://www.ventureone.com/

Sunnyvale-Based IMI Raises $8.8 Million in Second Round

Sunnyvale, Calif. -- Integrated Materials Inc. (IMI), a Sunnyvale-based
manufacturer of silicon products used in the semiconductor diffusion
process, said that it has raised $8.8 million in its third round of funding,
led by American River Ventures. Previous investors Alloy Ventures,
Labrador Ventures and Rocket Ventures also participated. Tom Cadwell,
IMI's president and CEO, said that the funding will allow his company to
"establish a second manufacturing site in Asia and expand its market
penetration worldwide." IMI raises $8.5 million in its second round in
May 2004.
http://biz.yahoo.com/bw/051129/20051129005655.html?.v=1

Redwood City-Based Nominum Lands Investment from T-Com

Redwood City, Calif. -- About eight months after raising $16 million in
its fourth round of funding, Nominum, a Redwood City-based maker of
IP name and address management software, said on Wednesday that it
has added an additional investment from the T-Com Venture Fund, the
investment arm of Deutsche Telekom. Nominum's products are designed
to help organizations more easily roll out and manage large-scale IP
networks and services such as Voice over Internet Protocol and video on
demand. Customers include British Telecom, Samsung Networks, NTL
and Telewest.
http://www.nominum.com/popupPressRelease.php?id=362

Judge's Ruling Puts U.S. BlackBerry Service in Jeopardy

Richmond, Va. -- In a decision that could lead to the shuttering of the
BlackBerry service in the U.S., a federal judge in Virginia on Wednesday
ruled that a $450 million settlement agreement between the maker of the
popular device and Virginia-based NTP is not valid. The ruling is a major
win for NTP, and a blow to Research in Motion (RIM), the Canadian
company that operates the popular BlackBerry service. NTP, which
contends that the technology behind the Blackberry infringes on its
patents, argued successfully that a tentative settlement reached earlier this
year with RIM was never finalized. Some analysts now believe that RIM
could be forced to pay NTP as much as $1 billion -- or face an injunction
that could force it to shut off the service in the U.S., where most of its
3.65 million customers are based. Asked about the likelihood of the
service being halted, James Wallace Jr., an attorney for NTP, told the AP
that RIM officials "own the keys to their own jail."
http://www.usatoday.com/money/industries/technology/2005-11-30-blackberry-battle_x.htm

Los Gatos-Based iWatt Acquires IKOR from Advanced Energy

Los Gatos, Calif. -- IWatt, a Los Gatos-based developer of semiconductor
and power system products, said on Wednesday that it has acquired the
IKOR division of Colorado-based Advanced Energy Industries. Financial
terms of the deal were not disclosed. IKOR will become a subsidiary of
iWatt, with product development activities continuing at the companies'
respective locations. The companies said that the deal will allow both of
them to enhance and augment their individual technologies. Curtis Davis
will continue as the president and CEO of iWatt, and John Wagner will
remain in his current position as the president of IKOR.
http://www.iwatt.com/news/pr/11.30.05.asp

Report: Google, Yahoo in Talks to Sponsor Manchester United

London  -- The Manchester United, a popular U.K. soccer club, is in
"advanced" talks with a number of international technology giants,
including Mountain View-based Google and Sunnyvale-based Yahoo,
about possibly replacing Vodafone Group as its jersey sponsor, the
Observer reported. Vodafone caught many analysts, investors and
football fans by surprise last week when it cancelled its four-year, $62
million contract with the United two years early. The Glazer family,
which owns the team, said that the club is in talks with such heavy hitters
as Google, IBM and Yahoo. Other non-technology brands rumored to be
in similar talks include Coca-Cola and Levi Strauss.
http://makeashorterlink.com/?J20B31C3C   

Intel to Open Chinese Net Cafes With Public Music Studios

Santa Clara, Calif. -- Intel, the Santa Clara-based chip-making giant, has
announced plans to open a series of Internet cafes in China featuring
studios that will let aspiring musicians record their own songs using the
company's digital home entertainment equipment. Intel said that it has
partnered with Chinese wireless Internet firm TOM Online to provide
technology for the launch of the Intel i-Café Music Studio in Zhengzhou,
the first of 13 such venues planned. The cafes will allow musicians to
directly upload recorded tracks to TOM Online's Wanleba music
platform.
http://biz.yahoo.com/prnews/051129/cntu008.html?.v=14

Cupertino-Based Tropian Raises New Round of Funding

Cupertino, Calif. -- Tropian, a Cupertino-based developer of
semiconductors used in  advanced wireless devices, said on Tuesday that
it has raised an undisclosed amount in its fifth round of venture capital
financing, led by Woodside-based Crosspoint Ventures. The remainder
came from the company's previous investors. Tropian said that it plans to
use the new funding to boost its ability to execute to keep up with
increasing demand from the wireless handset industry. The company
develops multi-mode radio technology for the cellular handset market.
http://biz.yahoo.com/bw/051129/20051129005232.html?.v=1

Palo Alto-Based Agilent Acquires Molecular Imaging Corp.

Palo Alto, Calif. -- Agilent Technologies, the Palo Alto-based
measurement technology giant, said on Tuesday that it has acquire
Arizona-based Molecular Imaging Corp., a maker of nanotechnology
measurement tools, for an undisclosed sum. Molecular Imaging is known
for its atomic force microscopes, used by researchers working in
nanotechnology. Agilent said that the acquisition will strengthen its
market position in nanomeasurement market. Stuart Lindsay and Tianwei
Jing from Arizona State University founded Molecular Imaging in 1993.
The company has had a continuous relationship with ASU and its Lindsay
Laboratory since then. Agilent said that it has no plans to move the
company's operations from the Tempe area.
http://biz.yahoo.com/bw/051129/20051129005783.html?.v=1

San Mateo-Based Sanderling Leads $6.5 Million Round for Naviscan

San Mateo, Calif. -- Naviscan PET Systems, a maker of positron emission
tomography (PET) scanners used in difficult radiological and surgical
procedures, said that it has raised $6.5 million in its second round of
funding, led by San Mateo-based Sanderling Ventures, and relocated its
headquarters from Maryland to San Diego. Mayo Medical Ventures also
participated. Paul Grayson, the newly appointed president and CEO of
Naviscan and a managing director of Sanderling. said that a key reason
for the relocation was San Diego's "enormously talented labor pool within
the life science and high technology arena." Naviscan is the first company
to obtain FDA clearance of a high-resolution PET scanner designed to
image small body parts.
http://www.naviscanpet.com/pr04.htm 
http://www.naviscanpet.com/pr06.htm

"Cyber Monday" Traffic to Retail Sites Beats "Black Friday" Figures

New York -- About 27.7 million U.S. Internet users visited retail web
sites on "Cyber" Monday, eclipsing the traffic those sites saw on the
previous "Black" Friday by 15%, according to new figures released by
Nielsen//NetRatings. "'Cyber Monday' brought a surge of traffic to many
online retailers as shoppers returned to work following the holiday
weekend ready to tackle their holiday gift lists," said Heather Dougherty,
a senior retail analyst for Nielsen//NetRatings. the firm said that shoppers
were enticed to the sites by steep discounts on merchandise and free
shipping offers. The top five online shopping destinations on Monday
included eBay, Amazon, Wal-Mart, Target and Overstock.com.
http://www.nielsen-netratings.com/

British Entrepreneur Ends Battle with Apple for Control of iTunes.co.uk

Cupertino, Calif. -- British dot-com entrepreneur Ben Cohen has abandoned his
protracted attempt to regain the iTunes.co.uk domain name he registered before
Cupertino-based Apple, the U.K.'s Register reported. The dispute began in 2000
when Cohen registered the domain name 10 days after Apple applied for a
trademark for the name "iTunes" on Oct. 27, 2000. A judge dismissed the case
after noting that Cohen's company, Cyberbritain Group, could have used the
appeals process that forms part of the DRS, but failed to do so. Cyberbritain
initially sought a further hearing, but has since withdrawn the request and
dropped the case altogether.
http://www.theregister.co.uk/2005/11/25/cohen_itunes/
http://www.nominet.org.uk/DisputeResolution/Decisions/Drs02223Itunes.html

TiVo to Launch Targeted Advertising Service for Subscribers

Alviso, Calif. -- TiVo, the Alviso based provider of digital video recorders and
subscription services, said that it plans to launch a service next spring that will
let its 3 million subscribers search a library of on-demand ads, and also allow
advertisers to target ads based on the interests users submit in personal profiles.
TiVo said that it partnered with several advertising agencies, including
Interpublic Media, OMD, Starcom Mediavest Group and The Richards Group,
as well as the advertising sales division of cable TV giant Comcast, on the new
service. The opt-in service will let TiVo subscribers search for ads by category -
- in sectors such as automotive, travel, telecommunications, and consumer
packaged goods -- as well as by keyword.
http://biz.yahoo.com/prnews/051128/sfm048.html?.v=32

Icahn Hires Lazard to Examine Reshaping Time Warner

New York -- Billionaire financier Carl Icahn has hired financial advisory firm
Lazard to look into various strategic alternatives that would maximize the value
of media giant Time Warner. Some of those alternatives could include selling
off pieces of the company, streamlining its corporate structure and launching a
major share repurchase plan. Icahn has been a major proponent of spinning off
the company's cable unit and launching a $20 billion stock buyback -- $7.5
billion more than the program currently in place. Icahn's group, which also
includes Franklin Mutual Advisers, Jana Partners and S.A.C. Capital, holds 135
million shares of Time Warner. "We continue to believe that Time Warner's
stock is greatly undervalued and that the company is in need of a major
restructuring," said Icahn.
http://biz.yahoo.com/prnews/051129/nytu136.html?.v=34

FCC Reverses Stance on A La Carte Cable Programming

Washington, DC --  In a reversal of course, the Federal Communications
Commission (FCC) on Tuesday backed a plan that calls for cable television
providers to offer viewers the option of subscribing to individual channels, The
Wall Street Journal reported in its online edition. The notion is a radical
departure from current practices, in which cable companies offer bundled
packages of channels. In a Senate Commerce Committee hearing, however,
FCC Chairman Kevin Martin said that a la carte programming "could be
economically feasible and in consumers' best interests." The FCC can't force
cable companies to make the change, but its position could become a driving
force in the debate and potentially spur the creation of new legislation. While
the move is seen as a positive for consumers, who could lower their overall bills
by dropping channels they don't watch and be able to better protect their
children from "objectionable programming," cable providers say it could
ultimately reduce the choices for viewers. 
http://www.fcc.gov/
http://online.wsj.com/home/us

ESA: Next-Generation Game Consoles to Ship with Parental Controls

Washington, DC -- All three next-generation video game consoles -- the
Microsoft Xbox 360, the Sony PlayStation 3 and Nintendo Revolution -- will
feature parental controls, the Entertainment Software Association (ESA) said.
Similar to the "V-Chip" that was federally mandated to ship with all new
televisions, the game consoles will let parents determine which games their kids
will be able to access, based on the game ratings defined by the Entertainment
Software Ratings Board (ESRB). Microsoft's Xbox already ships with the
controls, and Sony implemented them with the release of its PSP handheld
system. "With the average age of game players now 30, our industry naturally
creates content appropriate for a wide range of audiences," said Doug
Lowenstein, the president of the ESA. The Xbox 360 was released last week,
and the PlayStation 3 and Revolution are each due for release next spring.
http://www.theesa.com/archives/2005/11/all_new_video_g.php

Supreme Court to Hear eBay-MercExchange Patent Case

San Jose, Calif. -- The U.S. Supreme Court on Monday agreed to hear an appeal
by San Jose-based eBay, two years after a federal court ruled that the online
auction giant infringed on e-commerce patents held by Virginia-based
MercExchange. At issue is the technology that eBay uses for its fixed price and
"Buy it Now" sales, which together make up about a third of its total sales. In
2003, the District Court found that eBay was infringing on MercExchange's
patents, awarded the company $35 million in damages, but declining to issue a
permanent injunction. While the amount was later lowered to $25 million, an
appeals court ruled that the lower court should have issued a permanent
injunction -- a decision that eBay is now appealing. "The bottom line is whether
we will be able to obtain a permanent injunction on eBay's buy-it now
operations or whether the court will force a compulsory license," said Scott
Robertson of Hunton & Williams, the lead attorney representing
MercExchange. EBay, however, had a somewhat different view. "We have
believed all along that MercExchange -- which does not practice its own patents
and only exists to sue others -- should not be entitled to an injunction," said
eBay in a statement. .
http://biz.yahoo.com/bw/051128/20051128005609.html?.v=1
http://biz.yahoo.com/bw/051128/20051128005740.html?.v=1

Arcwave Relocates to Larger Headquarters in Los Gatos

Los Gatos, Calif. -- Arcwave, a maker of wireless products for the cable
industry, said on Monday that it has hired three new employees to its
sales management and technical support teams, moved from Campbell to
a new larger corporate headquarters in Los Gatos and opened new sales
offices in Atlanta and Detroit. The new personnel additions include Steve
Davidson, who was named senior applications engineer; Cliff Simpson,
senior director of sales; and Kevin Orzatti, senior sales engineer. The
move allows Arcwave to double the size of its headquarters to more than
10,000 square feet.
http://biz.yahoo.com/bw/051128/20051128005175.html?.v=1

Scientific-Atlanta Faces Lawsuits Regarding Cisco Acquisition

San Jose, Calif.. -- Scientific-Atlanta, the maker of television set-top boxes, said
that it is facing at least two class action lawsuits related to its announced
acquisition by San Jose-based Cisco Systems. Cisco announced earlier this
month that it plans to acquire Scientific-Atlanta for about $6.9 billion in cash.
The lawsuits, which name both Scientific-Atlanta and its directors as
defendants, allege that the company's directors and officers breached fiduciary
duties to shareholders in connection with the merger. In a statement, Scientific-
Atlanta said that it believes that the lawsuits "are without merit and intends to
defend the actions vigorously."
http://biz.yahoo.com/prnews/051123/clw022.html?.v=33

Google Donates $3 Million to Library of Congress

Mountain View, Calif. -- The Library of Congress said that it has received a $3
million gift from Mountain View-based search engine giant Google, earmarked
for a project that aims to digitize and make available online works from the U.S.
and around the world. The public-private World Digital Library will focus on
"rare and unique cultural materials held in U.S. and Western repositories," while
also incorporating materials from other cultures.  The Library of Congress
recently collaborated with Google on the digitization of about 5,000 books in
the public domain.
http://www.loc.gov/today/pr/2005/05-250.html 

Online Retailers See 29% Surge in `Black Friday' Visitors

New York -- Web traffic to online retailers on Black Friday -- the traditional start
of the holiday shopping season -- shot up 29% from a year ago, according to
new figures from Internet research firm Nielsen//NetRatings. The firm said
that its 100 representative online retailers brought in 17.2 million unique
visitors, up from 13.3 million a year ago. "While many shoppers headed out to
the stores over the weekend, the majority first turned to the Internet to check
prices and product availability," said Heather Dougherty, a senior retail analyst
with Nielsen//NetRatings. EBay was the top online retailer, with 9.5 million
unique visitors, followed by Amazon and Wal-Mart Stores, which drew 4.6
million and 3.4 million unique visitors, respectively. Target and BestBuy.com
rounded out the top five. Target, Wal-Mart and Circuit City, which offered deep
discounts on selected items on Friday,  saw traffic to their sites more than
double from the previous Friday. 
http://www.nielsen-netratings.com/news.jsp?section=new_pr

Report: U.S. Satellite Radio Sales to Reach 55 Million Units by 2010

New York - The U.S. market for satellite radios is expected to grow from an
installed base of 12 million units this year to 55 million units by 2010,
according to a new report from market research firm JupiterResearch. The
report predicts that two-thirds of satellite radios sold this year will be portable
handheld or plug-and-play units, with in-car radios accounting for another 2.5
million units. The growth potential for both kinds, however, is enormous. 
"Twenty-three percent of online consumers we surveyed demonstrated a strong
interest in the service, but overall only 6% of online consumers have satellite
radio," said Michael Gartenberg, a vice president and research director at
JupiterResearch. The firm also said that Washington, DC-based XM Satellite
Radio and New York-based rival Sirius should both look to expand their
services into mobile markets, where the Internet streaming versions of their
satellite radio stations can be distributed to cell phones.
http://biz.yahoo.com/bw/051122/20051122005085.html?.v=1

Newark-Based CopperGate Raises $14.5 Million in Third Round

Newark, Calif. -- CopperGate Communications, a Newark-based supplier of
multimedia chips with roots in Israel, said on Tuesday that it has raised $14.5
million in its third round of funding, led by new investor Carmel Ventures.
Previous investors Tamir Fishman Ventures and the Challenge Fund also
participated. The company said that it plans to use the capital to accelerate its
expansion into international markets, as well as to increase its product
development and customer support capacity. Founded in 2000, CopperGate
addresses the emerging Internet television market with its home networking
distribution technology.
http://biz.yahoo.com/bw/051122/20051122005419.html?.v=1

Sunnyvale-Based SonicWall Acquires Lasso Logic and enKoo

Sunnyvale, Calif. -- SonicWall, a Sunnyvale-based developer of security, mobility
and productivity software, said that it has acquired San Francisco-based data
backup company Lasso Logic and San Jose-based remote access technology firm
enKoo for an undisclosed sum. Lasso makes appliances that allow businesses to
continuously back-up important data. EnKoo's products, meanwhile, allow remote
employees to access email, files and applications located on their PC or company
server. SonicWall said that the acquisitions will allow it to address growing
demand for remote access, backup technologies that don't require tape and the
ability to recover data in the event of a disaster.
http://www.sonicwall.com/company/11182005acquisition.html

Menlo Park-Based Conor Medsystems Acquires Phytogen Life Sciences

Menlo Park, Calif. -- Conor Medsystems, a Menlo Park-based developer of drug
delivery technologies, said on Tuesday that it has acquired Phytogen Life
Sciences for approximately $3.8 million. Phytogen filed for bankruptcy in July.
Prior to that, however, it supplied Conor with paclitaxel, a drug used to treat
certain types of cancer. Conor said that it plans to sell most of the assets acquired
in the deal, except for an amount of finished paclitaxel that it needs to meet its
investigational and commercial needs for "many years."
http://biz.yahoo.com/prnews/051122/sftu082.html?.v=36

Report: Apple iTunes Store Cracks List of Top 10 Music Retailers

Cupertino, Calif.. - For the first time, Cupertino-based Apple's iTunes Store has
entered the top 10 list of leading music retailers, coming in seventh and ahead of
Tower Records, Sam Goody and Borders during the third quarter, according to a
report from market research firm NPD Group. "With the growing interest in
digital music, forecasts of more iPod demand this holiday, plus the stocking-
stuffer appeal of iTunes gift cards, we can expect Apple to increase its share even
more by year's end," said Russ Crupnick, an analyst with NDP. The iTunes Store
commands 70% of all U.S. digital music download sales, while the iPod accounts
for around 90% of all digital music player sales, according to NPD. Music
retailers still bettering Apple in sales during the third quarter included Wal-Mart,
Best Buy, Target, Amazon.com, FYE and Circuit City.
http://www.npd.com/dynamic/releases/press_051121a.html

TiVo to Let Subscribers Transfer TV Shows to Portable Devices

Alviso, Calif. - TiVo, the Alviso-based provider of digital video recorders and
subscription services, said that its subscribers will soon be able to transfer
recorded TV programs to their Apple iPod or Sony PSP portable devices. TiVo
subscribers can already use the TiVoToGo feature to transfer recorded TV shows
to a PC or laptop, as well as to portable devices that support Microsoft's Portable
Media Center software. With the new feature, however, consumers will be able to
purchase software that allows them to automatically transfer recorded shows to an
iPod or PSP overnight via a PC. TiVo, which will embed watermarks on the
transferred programs as a means of anti-piracy, plans to begin testing the feature
in the coming weeks, with availability for all TiVo Series2 subscribers expected
in early next year. The company had 3.85 million subscribers as of October.
http://biz.yahoo.com/prnews/051121/sfm033.html?.v=30   

Report: 2005 Internet Ad Sales Expected to Hit Record $12 Billion

New York - Internet ad sales are expected to hit another all-time high of over $12
billion this year, up from last year's record $9.6 billion, according to a new report
from PricewaterhouseCoopers and the Interactive Advertising Bureau (IAB).
Third-quarter sales of $3.1 billion were up more tha a third over a year ago,
boosted by sponsored ads on search engine results. “The third quarter figures are
the most impressive we’ve seen yet," said David Silverman, a partner at
PricewaterhouseCoopers. "Clearly advertisers are realizing the benefits of shifting
more of their total advertising budgets to online."
http://www.iab.net/news/pr_2005_11_21.asp

Palo Alto-Based TCV Closes New $1.4 Billion Technology Fund

Palo Alto, Calif. -- Technology Crossover Ventures (TCV), a Palo Alto-based
venture cap[ital firm focused on technology, said on Monday that it has closed a
new $1.4 billion fund. The firm said that TCV VI is the largest technology
focused venture capital fund closed this year, and increases its total capital under
management to $4.7 billion. TCV said that it will continue to follow its core
strategy of expansion and later-stage investment in technology companies.
Founded in 1995, TCV has invested in more than 150 companies.
http://www.tcv.com/news/tcvvi.html

San Mateo-Based Enkata Acquires Assets of Mountain View's ePeople

San Mateo, Calif. -- Enkata, a San Mateo-based maker of software designed to
help businesses increase customer loyalty while reducing costs, said on Monday
that it has acquired certain technology assets from ePeople, a Mountain View-
based email management firm that recently ceased operations. Financial terms of
the deal were not disclosed. The acquisition will allow Enkata to add several
components of ePeople's software, including collaboration and email integration,
into future versions of its products. Enkata said that it plans to offer ePeople's
technology as an add-on for customers in early 2006, with full integration planned
after mid-year.
http://www.enkata.com/news/2005/11-21-05ePeople.html

Santa Clara-Based Intel Capital Invests in iBiquity Digital

Santa Clara, Calif. -- IBiquity Digital, a Maryland-based developer of technology
that lets radio stations broadcast a digital signal alongside their analog signals,
said on Monday that Santa Clara-based Intel Capital, the investment arm of chip-
making giant Intel, has made an undisclosed investment in the company. Robert
Struble, the president and CEO of iBiquity, said that the relationship will help his
company to "accelerate the commercialization" of its HD Radio technology,
"particularly in the area of portable HD Radio devices." Struble said that iBiquity
plans to eventually move into new portable digital media devices, including
mobile phones and digital media players. The technology is designed to transmit
CD-quality sound, while virtually eliminating the static and hiss typically
associated with analog radio. It also gives stations the ability to roll out new
services, such as scrolling text onto receiver display screens; delivering real-time
traffic updates to vehicles and broadcasting up to eight digital channels of
programming over a single frequency.
http://biz.yahoo.com/prnews/051121/dcm030.html?.v=31

Report: VC Investing Maintains Strong Momentum in 2005

New York -- Following an active year in 2004, venture capital investing sustained
the momentum in 2005 in the U.S., Europe and Israel, according to year-end
analysis by Ernst & Young and Dow Jones VentureOne. According to the report,
fund raising by venture-capital firms reached its highest level since 2001, while
mergers and acquisitions and initial public offerings (IPOs) by venture-backed
companies also showed continued strength. Though investments in venture-
backed companies remained about the same as a year ago, the firms said that there
was a stronger trend toward later-stage financings, suggesting that investors are "
confident in the prospects of their portfolio companies and optimistic in regard to
exit opportunities."
http://www.dowjones.com/
http://www.ey.com

San Jose-Based Cisco Acquires Digital Fairway Assets for $15.25 Million

San Jose, Calif. -- Cisco Systems, the San Jose-based maker of networking
equipment, said on Monday that it has acquired intellectual property and other
assets from Toronto-based Digital Fairway for $15.25 million in cash. Under the
deal, Cisco purchased the company's Internet telephony product and licensed
other software assets. Cisco said that they will form the foundation for its new
Internet communications provisioning product, to be released in 2006. Selected
members of Digital Fairway's software development team will become Cisco
employees in its Network Management Technology Group.
http://newsroom.cisco.com/dlls/2005/corp_112105.html

XM Launches New Online Music Service with Napster

Washington, DC -- XM Satellite Radio, a provider of satellite radio services with
more than 5 million subscribers, said on Monday that it has launched a test
version of its new music service developed in conjunction with Napster. The
service, known as XM + Napster, allows XM subscribers to listen to more than 70
XM channels online, then purchase and download music that is playing on the air.
It also will feature music recommendations from Napster's music programmers.
"It takes the promotional impact of radio and puts it on steroids," said Hugh
Panero, the president and CEO of XM. The co-branded service is part of a long-
term partnership between Napster and XM, and will be marketed by both
companies.
http://biz.yahoo.com/prnews/051121/dcm022.html?.v=31

Report: Despite Ad-Skipping, DVR's Expected to Increase TV Viewership

New York - Allaying earlier fears that the ability to skip commercials by using
digital video recorders like TiVo would negatively impact TV networks, the six
major networks have issued a new report predicting that the technology actually
will increase viewership, Reuters reported. "For most of the top television
programs, the audience will be greater for these programs as DVR penetration
increases," David Poltrack, head of ratings research for CBS, told Reuters. "The
DVR is going to increase viewership to major network television programs." The
report, issued by CBS, ABC, NBC, Fox, the WB and UPN, found homes with the
devices watched an average of 5.7 hours of television daily, compared with 5.1
hours for homes without digital video recorders. About 90% of DVR owners said
that they skipped all or most commercials, 58% paid attention to them while fast-
forwarding and 53% went back to view an ad of interest.
http://tinyurl.com/df7bb

New York - Allaying earlier fears that the ability to skip commercials by using
digital video recorders like TiVo would negatively impact TV networks, the six
major networks have issued a new report predicting that the technology actually
will increase viewership, Reuters reported. "For most of the top television
programs, the audience will be greater for these programs as DVR penetration
increases," David Poltrack, head of ratings research for CBS, told Reuters. "The
DVR is going to increase viewership to major network television programs." The
report, issued by CBS, ABC, NBC, Fox, the WB and UPN, found homes with the
devices watched an average of 5.7 hours of television daily, compared with 5.1
hours for homes without digital video recorders. About 90% of DVR owners said
that they skipped all or most commercials, 58% paid attention to them while fast-
forwarding and 53% went back to view an ad of interest.
http://tinyurl.com/df7bb

San Jose-Based Cisco to Acquire Scientific-Atlanta for $6.9 Billion

San Jose, Calif. -- Cisco Systems, the San Jose-based network equipment
giant, said that it will pay $6.9 billion in cash to acquire Scientific-
Atlanta, a Georgia-based maker of digital content distribution systems.
Cisco said that the deal gives it transmission networks for broadband
access to the home, digital interactive set-top boxes and subscriber
systems designed for video, high-speed Internet and Internet telephone
networks. The acquisition  is expected to close by the end of April, when
Scientific-Atlanta will become a division of the company's Routing and
Service Provider Technology Group. Scientific-Atlanta has more than
7500, and had revenue of $1.91 billion last fiscal year.
http://www.scientificatlanta.com/newscenter/newsreleases.asp?target=http://www.scientificatlanta.com/newscenter/releases/05Nov18-1.htm

Greylock Partners Raises $500 Million for New Investment Fund

San Mateo, Calif. -- Greylock Partners, a San Mateo venture capital firm,
said on Friday that it has raised its 12th fund, which closed at $500
million. Founded in 1965, Greylock is one of the largest venture capital
firms in the world. The firm also maintains a major office in
Massachusetts. Since its founding, Greylock's investments have included
Ascend Communications, Continental Cable, DoubleClick, Legato,
Millennium Pharmaceuticals and Red Hat.
http://www.greylock.com/news/newsGreylock_release.cfm?Id=29

Intervoice to Pay $33.5 Million for Santa Clara-Based Edify

Santa Clara, Calif.-- Intervoice, a Dallas-based provider of integrated
voice and data software, has agreed to pay $33.5 million to acquire Santa
Clara-based Edify, a developer of interactive voice response technology,
from parent S1 Corp. Intervoice said that the acquisition will strengthen
its position in the voice automation market. Over the past 12 months,
Intervoice and Edify had combined revenue of about $200 million. The
combined company is expected to have about 850 employees.
http://www.s1.com/

Mountain View-Based Hansen Medical Raises $30 Million

Mountain View, Calif. -- Hansen Medical, a Mountain View-based
developer of robotic technology used in therapeutic cardiac procedures,
said that it has raised $30 million in its third round of funding, led by
Vanguard Ventures. Previous investors Prospect Venture Partners,
Skyline Venture Partners, Thomas Weisel Healthcare Venture Partners,
De Novo Ventures and Sapient Capital also participated in the round,
which increased the company's total funding to more than $58 million.
Hansen said that the new capital will be used to fund its ongoing research
and development efforts, as well as the launch and commercialization of
its robotic catheter system into the electrophysiology market next year.
http://www.hansenmedical.com/news/051117-finalC.aspx

Dispute May Force HP to Back Both Blu-ray, HD DVD Formats

Palo Alto, Calif. -- Hewlett-Packard, the Palo Alto-based technology
giant, may end up supporting competing next-generation DVD formats, in
light of a recent decision by the Blu-ray Disc Association to exclude
certain interactive features that will be standard with the rival HD DVD
format, Reuters reported. Toshiba's HD DVD format will allow users to
copy DVDs so that they can be played over a home media network, and
offer several other interactive features. HP made a request that Sony's
Blu-ray include the same features. "We are taking their request seriously,
but are not willing to delay the launch," Blu-ray spokesman Andy Parsons
told Reuters. HP hinted that the move may cost Blu-ray its exclusive
support. "If they are unable to incorporate technologies we think are
critical for the PC architecture, we'll be more neutral. We'll think of cost
and implementation across the board. Potentially, we could support both
HD DVD and Blu-ray," Maureen Weber, the general manager of personal
storage in HP's personal systems group, told Reuters.
http://tinyurl.com/brnvt

San Francisco's Walk of Game to Induct Six New Members

San Francisco - Sony has unveiled a list of six new inductees that it plans
to honor with stars on the "Walk of Game" outside of its Metreon arcade
in San Francisco. John Carmack ("Doom") and Sid Meier ("Civilization")
were selected in the Lifetime Achievement category, along with games
and characters "EverQuest," "StarCraft," "Final Fantasy" and Lara Croft
from "Tomb Raider." Gamers voted online and through paper ballots
during October. An official induction ceremony will take place at the
Metreon next spring.
http://www.walkofgame.com

g thereStudy: More Than One-Third of Mobile Game Downloads Are Free

tinSan Francisco -- About two-thirds (64%) of all mobile games downloaded last quarter
cost money, while the remaining one-third was free, according to a new study by San
Francisco-based Telephia. The company said that puzzle and strategy mobile games
have the highest percentage of free downloads (48%), while consumers paid an average
of $4.29 to download action and adventure games, the most of any category. "At this
early stage of the game, publishers are employing different strategies with pricing and
promotional incentives to learn what will gain the most traction with consumers and
deliver the best revenue performance outcome," said Kanishka Agarwal, Telephia's vice
president of new products.
http://biz.yahoo.com/bw/050926/265597.html?.v=1

Oakland's Claremont Creek Ventures Launches with $130 Million Fund

Oakland, Calif. -- Claremont Creek Ventures, a new Oakland-based
investment firm specializing in start-up information technology and
biotech companies, said on Thursday that it has closed its first fund with
$130 million in committed capital. The firm said that it hopes to fill a gap
in funding for start-ups in the East Bay region; as well as the broader gap
between angel or seed funding and typical early stage venture capital.
"We're bridging the 'Valley of Death' in venture capital -- the period
where entrepreneurs can't get more money from family or angels, but are
still too small for most venture firms," said Nat Goldhaber, who is a
founding partner along with John Steuart and Randy Hawks. Claremont
Creek's strategy will be to fund what it considers "high-potential
candidates" valued at $2-$7 million. Investments will range from
$100,000 to as much as $2-$3 million.
http://www.claremontvc.com/.

San Francisco-Based OQO Raises $20 Million in Fourth Round

San Francisco -- OQO, a San Francisco-based manufacturer of handheld
PCs, said that it has raised $20 million in its fourth round of funding, led
by Washington DC-based Paladin Capital Group. Other participants
included Azure Capital Partners and AsiaTech Management, as well as
new investor Motorola Ventures. The company said that it will use the
proceeds to accelerate its research and development efforts, as well as for
sales and marketing. OQO developed the first pocket-sized Windows XP
personal computer to his the market, and recently released its upgraded
model. The company has more than 400 corporate and government
clients.
http://www.oqo.com/company/news/releases/show/pr0015

Nokia to Buy San Jose-Based Intellisync for $430 Million

San Jose, Calif. - Mobile phone maker Nokia said on Thursday that it has
agreed to acquire Intellisync, a San Jose-based software vendor, for
approximately $430 million. Analysts say the deal marks a bold move for
Nokia into the corporate mobile market, which has been dominated by
Canada's Research In Motion (RIM). The Finnish firm has been
hampered by the fact that its offerings work only with Linux servers and
Nokia devices. By acquiring Intellisync, which makes wireless email,
synchronisation and device management software, Nokia said that it
hopes to better compete with RIM's Blackberry and improve the overall
connectivity of its devices.
http://press.nokia.com/PR/200511/1021663_5.html

Intel Capital Launches $50 Million Middle East Tech Fund

Santa Clara, Calif. -- Intel Capital, the investment arm of the Santa Clara-
based chip-making giant, said that it has launched a $50 million venture
capital fund to invest in technology companies in Turkey and the Middle
East. Intel said that the fund will focus on companies developing
hardware, software and services, particularly those related to broadband
infrastructure and WiMax technologies. Arvind Sodhani, the president of
Intel Capital, said that his firm has been working in the region for some
time, and sees a strong demand for broadband and mobile services
technologies. "That demand, combined with a measurable increase in
entrepreneurial activity and some of the world's fastest growing
economies, indicates that the time is right to begin investing in the
region," said Sodhani. 
http://makeashorterlink.com/?H5BD21C2C

Mountain View-Based BroadLight Lands $10 Million in Fourth Round

Mountain View, Calif. -- BroadLight, a Mountain View-based maker of
semiconductors, software and transceivers for fiber-to-the-premises
deployments, said on Thursday that it has raised $10 million in its fourth
round of funding, led by Motorola Ventures. Previous investors Azure
Capital Partners, Broadcom, Delta Ventures, Israel Seed Partners,
Siemens Venture Capital, Star Ventures and Tellabs also contributed.
Andrew Vought, the CEO of BroadLight, said that his company will use
the additional capital to increase its research and development, sales and
marketing efforts.
http://biz.yahoo.com/bw/051117/20051117005206.html?.v=1

Santa Rosa-Based Sensor Platforms Raises $6.6 Million in Funding

Santa Rosa, Calif. -- Sensor Platforms, a Santa Rosa-based developer of
integrated circuits for the sensor industry, said on Thursday that it has
raised $6.6 million in a new round of venture capital funding. ArrowPath
Venture Partners and Newbury Ventures co-led the round, which the
company plans to use for product development and market expansion.
The company is targeting sensor application developers in the wireless,
automotive and  consumer electronics markets, as well other high volume
markets. Sensor Platforms said that its chip can directly interface with
and drive most types of sensor elements, including pulse, voltage, current,
inductive, capacitive and resistive.
http://www.sensorplatforms.com/press_releases.php

IBM Acquires Redwood City-Based Software Firm Collation

Redwood City, Calif. -- Information technology giant IBM said on
Thursday that it has acquired Collation, a Redwood City-based maker of
software for managing IT resources such as servers, applications and
databases. Financial terms of the deal were not disclosed. Collation's
software automatically captures information about IT resources and
displays it on a detailed map. IBM said that acquisition will expand its
capabilities for automating and simplifying the way companies manage
their infrastructures.
http://www-306.ibm.com/software/tivoli/features/collation/