Silicon Valley Wire

Mountain View-Based Google's Big Gains Fall Short of Expectations

Mountain View, Calif. -- Despite sharp gains in both revenue and net income, shares of Google fell as much as 19% in after-hours trading Tuesday after the Mountain View-based search giant reported quarterly results that fell short of lofty Wall Street expectations. Excluding one-time items, the company posted net income $469 million, or $1.54 a share, up from $204.1 million, or $0.71 a share, during the same period a year ago.  Analysts surveyed by Thomson First Call, however, had predicted earnings per share of $1.76. Revenue came in at $1.92 billion, nearly double the amount of a year ago, but only matched expectations after topping them for each of the previous five quarters since its IPO.
http://biz.yahoo.com/bw/060131/20060131006101.html?.v=1

Palo Alto-Based Agilent to Buy Remaining Stake in Joint Venture

Palo Alto, Calif. -- Agilent Technologies, the Palo Alto-based technology giant, said on Tuesday that it will buy the remaining stake in its joint venture with Japan's Yokogawa Electric. Under the deal, Agilent will pay $98 million to acquire the 49% of Yokogawa Analytical Systems that it doesn't already own. Yokogawa Analytical Systems was founded as a joint venture in 1992 by Agilent (then part of Hewlett-Packard) and Yokogawa. Yokogawa Analytical Systems makes an advanced analytical system used in gas chromatography for laboratory and other scientific applications. The company had sales of more than $160 million in fiscal 2005.
http://www.agilent.com/about/newsroom/presrel/2006/30jan-gp06003.html

Bay Area COOs Predict Improved Local Economy in 2006

San Jose, Calif. -- The Bay Area's economy will continue to strengthen in 2006, according to survey of 81 Northern California COOs surveyed by the COO Forum. In all, 93% of those surveyed predicted improvement, with 20% predicting a "much stronger" local economy and another 73% expecting it to be "stronger." The results are similar to a year ago, when 92% of the COOs in the survey projected growth in 2005. The majority of this year's respondents predicted improvement in areas such as employment and higher overall profits. Complete results can be found at the link below.
http://biz.yahoo.com/bw/060131/20060131005310.html?.v=1

America Online Teaming with ABC News for `State of the Union'

Dulles, Va. -- America Online said that it is teaming with ABC News on interactive coverage and analysis of Tuesday night's State of the Union address. Viewers will be able submit text and video comments on both President Bush's address and the Democratic response, with select portions airing throughout ABC's coverage of the event, which also will air on AOLNews.com. Online visitors can submit text comments to www.aol.com/news and video segments from cell phones and other wireless devices to www.abcnews.com. ABC News anchors will answer viewer questions through video responses to be posted on the web. Commentary from AOL users also will run on an ABC ticker, and they also will be able to participate in a variety of online surveys. "We are creating an electronic town square, where web users can offer real-time feedback," said Lewis D'Vorkin, the vice president and editor-in-chief of AOL News and Sports.
http://news.aol.com/dailypulse/013006?id=20060130110509990001

San Mateo-Based Sling Media Raises $46.6 Million in New Funding

San Mateo, Calif. -- Sling Media, a maker of devices that allow users to access their televisions from computers, PDAs or smartphones, said on Tuesday that it has raised $46.6 million I a new round of funding, co-led by  Goldman, Sachs, Liberty Media and Echostar Communications. Other participants included Allen & Co., DCM -- Doll Capital Management, Mobius Venture Capital, The Hearst Corporation and other undisclosed investors. Sling's initial product is a consumer electronics device that allows users to watch their living room TV programming through virtually any Internet-connected, Windows-based computer. The device redirects, or "placeshifts," a single live TV stream from a basic cable connection, cable box, satellite receiver or digital video recorder to the viewer's PC through the Internet.
http://biz.yahoo.com/bw/060131/20060131005437.html?.v=1

Mountain View-Based Hammerhead Systems Raises $30 Million

Mountain View, Calif. -- Hammerhead Systems, a Mountain View-based maker of data switches used to carriers to deliver Ethernet and existing legacy services, said on Tuesday that it has landed $30 million in its third round of venture capital funding, led by new investor Silver Creek Ventures. Another new investor, Apex Venture Partners, also participated, as did all of the company's previous investors. The company has now raised a total of $80 million since its inception, and plans to use the latest round to expand sales, marketing and customer support in North America and internationally.
http://www.hammerheadsystems.com/news/pr013106.php

Mountain View-Based Silver Peak Systems Lands $13 Million

Mountain View, Calif. -- Silver Peak Systems, a Mountain View-based developer of network acceleration appliances, said on Tuesday that it has secured $13 million in its second round of funding, increasing its total backing to $21.5 million. Duff Ackerman & Goodrich led the round, which also included investments from Benchmark Capital, Greylock Partners and Pinnacle Ventures. The company said that the new funding will provide it with working capital to grow all aspects of its business, including rapid market expansion in the U.S. and abroad. Silver Peak's appliances are used to centralize branch office infrastructure and improve application performance across a Wide Area Network. 
http://www.silver-peak.com/html/01312006_seriesb_funding.htm

Validity Sensors Raises $16 Million, Moves from Phoenix to Foster City

Foster City, Calif. -- Validity Sensors, a maker of fingerprint sensors, said on Monday that it has raised $16 million in a new round of funding led by TeleSoft Partners, and has moved its headquarters from Phoenix to Foster City. In addition, Arjun Gupta, a managing partner of TeleSoft Partners, has assumed the role of interim CEO until the company can hire a permanent CEO. Alex Erhart has become executive vice president of products and operations. The company, which has now raised a total of $35 million to date. Validity's fingerprint sensing technology defers from most of its counterparts because of its high durability, since users must only touch an outside material instead of actual silicon.
http://www.validityinc.com/news7.html

Palo Alto-Based Symphony Technology Acquires Metreo

Palo Alto, Calif. -- Symphony Technology Group (STG), a Palo Alto-based holding company for various software and services businesses, said on Monday that it has acquired Palo Alto-based Metreo, a maker of pricing intelligence software, for an undisclosed sum. Metreo will operate as a subsidiary of Symphony, which already has five other units that deal in various kinds of business software and services. Metreo's software is designed to help manufacturers and distributors with the pricing process.
http://www.symphonytg.com/

N8 Changes Name to Ravenflow, Moves from Berkeley to Emeryville

Emeryville, Calif. -- N8 Systems, a developer of validation tools for software developers, on Monday announced a series of moves designed to help it take better advantage of the fast-growing market. The company said that it has changed its name to Ravenflow -- a name patterned after its Requirements Authoring and Validation Environment (RAVEN) products -- and moved its corporate headquarters from Berkeley to a larger facility in Emeryville. The company also said that it has opened an office in London, and launched a redesigned web site to introduce its revamped corporate image. Its clients include ADP, Charles Schwab, Citco and Kaiser Permanente.
http://www.ravenflow.com/news/pr_013006a.shtml 

Mark Burnett to Produce New Reality Show for America Online

Dulles, Va. -- Making its move into the reality TV genre, America Online said on Monday that it has signed a major production deal with Mark Burnett Productions to develop a reality treasure hunt that will air exclusively on the AOL.com web site. Burnett is the producer of such reality TV hits as "The Apprentice" and "Survivor." Called "Gold Rush!," the new show will track real-life challengers searching for hidden treasure across the U.S. Clues will be placed throughout the AOL network, including websites such as AOL.com, AIM.com Moviefone.com and MapQuest.com. Financial terms of the deal were not disclosed.
http://media.aoltimewarner.com/media/newmedia/cb_press_view.cfm?release_num=55254517

Sunnyvale-Based Code Green Networks Raises $15 Million in Third Round

Sunnyvale, Calif. -- Code Green Networks, a Sunnyvale-based developer of security tools used to help companies lessen the risk of internal information leaks, said on Monday that it has raised $15 million in its third round of funding, led by Menlo Park-based Sierra Ventures. Cupertino-based Bay Partners, which led the company's previous $15 million roun d a year ago, also participated. All told, Code Green has now raised $32 million since its inception in 2004. The company's products are designed to allow management to track, analyze and protect confidential corporate data.
http://biz.yahoo.com/bw/060130/20060130005292.html?.v=1

Sunnyvale-Based Mu Security Lands $4 Million in First Round

Sunnyvale, Calif. -- Mu Security, a Sunnyvale-based start-up developing appliances designed to verify the security readiness of IP-based products and applications, said on Monday that it has raised $4 million in its first round of funding from Accel Partners and Benchmark Capital. The company plans to use the capital to emerge from stealth mode and officially launch operations. Mu said that its name stems from its methodology for analyzing how mutations in protocol behavior can be used to expose security vulnerabilities. Company co-founders Ajit Sancheti, the CEO, and Kowsik Guruswamy, the CTO, previously helped develop intrusion detection and prevention systems for OneSecure, a company acquired by NetScreen Technologies and now part of Juniper Networks.
http://www.musecurity.com/news.html

S.F.-Based Pay By Touch Adds Another $60 Million in Funding

San Francisco -- Just three months after raising $130 million in funding, Pay By Touch, a San Francisco-based developer of biometric payment technologies, said that it has raised another $60 million from hedge funds Plainfield Asset Management and Scout Capital, as well as several private investors. As part of the financing, the company said that its previous round of convertible notes was converted to stock. Pay By Touch's biometric payment products allow shoppers to pay for purchases or cash checks using a finger scan linked to their personal identification information, financial accounts and loyalty programs. In October, the company sold $75 million in senior notes and landed major investments from Och-Ziff Capital Management and Farallon Capital Management. Since then, Pay By Touch has completed the acquisitions of CardSystems Solutions, BioPay, Capture Resource, 7th Street Software and Convena.
http://www.paybytouch.com/news/pr_01-26-06.html

Redwood City-Based Informatica Acquires Similarity for $55 Million

Redwood City, Calif. -- Informatica, a Redwood City-based developer of data integration software, said that that it has acquired Irish data-quality software firm Similarity Systems for $55 million in cash. The company said that it plans to incorporate Similarity's data quality technology into its own data integration software. Under the terms of the deal, Similarity CEO Garry Moroney will manage Informatica's new data-quality division.
http://www.informatica.com/news/press_releases/2006/01262006b_similarity.htm

Shareholders Approve Saba's Acquisition of Centra Software

Redwood Shores, Calif. --  Saba, a Redwood Shores-based maker of human resource management software, said that shareholders from both companies have approved its $60 million acquisition of Massachusetts-based Centra Software, a maker of online learning and training software. Saba said that the deal should strengthen its position in the corporate learning software market. The combined company will have about 1,100 clients. The deal, first announced in October, is expected to close by the end of January.
http://www.saba.com/news_events/press_releases/2006/news_012606.htm

Study: Clarity of Internet Phone Audio Still Needs Improvement

San Mateo, Calif. -- While the reliability of Internet telephone services has generally improved over the past several months, the major providers still have plenty of room to improve in terms of audio clarity, according to a new study by San Mateo-based Keynote Systems. The firm measured 11 service providers on several performance factors. Though the top providers had improved the quality of their call audio since Keynote's initial study in June, the firm said that it found no significant change in the amount of audio delay present in the calls -- a factor that it said "can lead to conversational disruption." Keynote, in fact, said that Internet phones continue to have up to twice as much audio delay as calls placed on traditional phones. Time Warner Digital Phone ranked first in both reliability and audio clarity in its study conducted in November and December, edging out Vonage and AT&T CallVantage.
http://www.keynote.com/news_events/releases_2006/06jan25.html

Santa Clara-Based Applied Materials to Sell Five Facilities

Santa Clara, Calif. -- Applied Materials, a Santa Clara-based supplier of equipment and services to the semiconductor industry, said on Friday that it plans to sell five facilities that it either leases or owns, including one in Hayward. The other facilities are located in Oregon; Massachusetts; South Korea and Japan. The company, which expects to save an average of $29 million a year through 2014, said that all the properties were acquired "either as part of a merger or under business conditions that have changed." The moves will result in pretax charges of about $212 million in the current quarter. The company did not disclose how many jobs would be affected.
http://biz.yahoo.com/bw/060127/20060127005188.html?.v=1

Yahoo, Linksys Partner on At-Home Wireless Song Streaming

Sunnyvale, Calif. -- Sunnyvale-based Yahoo said that it has partnered with Linksys, a maker of routers and other home networking products, to allow users to stream songs from Yahoo through their home networks. A new $99 device from Linksys is the first capable of accessing songs from users' own collections through a music subscription from Yahoo
http://biz.yahoo.com/prnews/060126/lath068.html?.v=39   

Leahy Seeks Info on Bush Administration Google Search Subpoena

Mountain View, Calif. -- Sen. Patrick Leahy (D-Vt.), the ranking Democrat on the Senate Judiciary Committee, has sent a letter to Attorney General Alberto Gonzales requesting information on the Bush administration's subpoena of Google's search engine records. Federal prosecutors have subpoenaed the search engine records of America Online, Yahoo, Microsoft and Google while preparing a legal defense of the Child Online Protection Act (COPA), intended to restrict minors' access to online pornography. Only Mountain View-based Google has refused, saying instead it will fight the request to protect its customers' privacy. "I am interested in learning more about the extent to which the Department of Justice is relying upon data mining of the Internet search queries made by law-abiding American citizens to support its efforts under COPA and how the department is addressing the privacy and civil liberties concerns raised by the collection, storage and use of that data," Leahy said in a statement.
http://leahy.senate.gov/press/200601/012506.html

Study: 35% of Parents Play Computer and Video Games

Washington, DC -- About 35% of American parents say they play computer and video games, according to the results of a new survey released by the DC-based Entertainment Software Association (ESA), the trade group representing U.S. computer and video game publishers. Among them, eight of 10 say that they play video games with their children, and two-thirds feel that playing games has brought their families closer together. "The data provide further evidence dispelling the myth that game playing is dominated by teens and single twenty-somethings," said Douglas Lowenstein, the president of the ESA.
http://www.theesa.com/archives/2006/01/new_study_shows_1.php

Mountain View-Based MAP Pharmaceuticals Raises $25.25 Million

Mountain View, Calif. -- MAP Pharmaceuticals, a Mountain View-based developer of inhaled drug therapies, said that it has raised $25.25 million in its third round of funding, led by Brookside Capital. All of the company's previous investors including the Perseus-Soros Biopharmaceutical Fund, Pequot Ventures, Bay City Capital and Skyline Ventures, also participated. MAP said that it plans to use the proceeds to further the development of its two top drug candidates for the treatment of asthma and migraines.
http://www.mappharma.com/news/index.html

San Francisco-Based Riverbed Launches Operations in Japan

San Francisco -- Riverbed Technology, a San Francisco-based provider of wide-area data services and appliances, said on Thursday that it has launched operations in Japan with the opening of a new unit, Riverbed Technology K.K. The company said that the decision was driven by strong demand from many of its customers and partners. Riverbed has appointed computing industry veteran Shoji Inoue as its country sales manager, leading the new office. Inoue previously served as the managing director of Mirapoint Japan, K.K. "Japan represents a strategic market for Riverbed," said Inoue. "We plan to grow our presence in the country."
http://biz.yahoo.com/bw/060126/20060126005318.html?.v=1

Netflix Subscribers Hit 4.2 Million; Profits Rise Six-Fold

Los Gatos, Calif. -- Netflix, the Los Gatos-based online DVD rental service, said that it surpassed its 2005 goal of surpassing the 4 million subscriber mark, and saw its fourth quarter profits rise six-fold. The company said that it now has 4.2 million customers, and raised this year's goal to 5.9 million, up from 5.65 million. Netflix still expects to have 20 million subscribers by 2010. The company also posted quarterly net income of $38.1 million, up from $5.6 million a year ago.
http://www.netflix.com/PressRoom?hnjr=3

West Virginia P.E. Classes to Include Konami's "Dance Dance Revolution"

Redwood City, Calif. -- Japanese video game publisher Konami, which has its U.S. headquarters in Redwood City, has announced a three-year partnership with the state of West Virginia that will bring its "Dance Dance Revolution" dancing-based video game to all 765 of the state's public schools. Nidia Henderson, the wellness director of the West Virginia Public Employees Insurance Agency, said that the deal is an attempt to fight the epidemic of childhood obesity. "DDR offers West Virginia a unique opportunity to turn 'screen time' into active time while allowing children residing in even the most rugged terrain an opportunity for physical activity," said Henderson. The state plans to develop a school-based DDR curriculum and collect data to analyze the benefits of the game's use in schools.
http://biz.yahoo.com/bw/060125/20060125005316.html?.v=1

Los Altos-Based WisdomArk Raises $6.3 Million in First Round

Los Altos, Calif. -- WisdomArk, the Los Altos-based developer of a consumer web service aimed at helping people collaborate to preserve life stories, said that it has raised $6.3 million in its first round of funding. Investors included El Dorado Ventures, Venrock Associates and Benhamou Global Ventures. The year-old company's service is currently in early user testing in preparation for public launch at a later date. WisdomArk is led by CEO Andy Halliday, the former vice president and general manager of Excite's Electronic Commerce Group and COO of In-Q-Tel, a venture capital group launched by the CIA.
http://www.wisdomark.com/
http://biz.yahoo.com/iw/060124/0107187.html

San Jose-Based Business Objects Wins Patent Dispute with MicroStrategy

San Jose, Calif. -- Business Objects, a San Jose-based developer of business intelligence software, has won a legal victory in its two-year patent dispute with Virginia-based MicroStrategy. A U.S. District Court judge in Delaware on Tuesday ruled that Business Objects did not infringe on one of MicroStrategy's patents, and ruled two other patents invalid. All three claims have now been dismissed, and Business Objects said that it may go forward with a countersuit in a trial scheduled to begin in late May. The case started in late 2003, when MicroStrategy sued Crystal Decisions, which a day later was acquired by Business Objects.
http://biz.yahoo.com/bw/060124/20060124006179.html?.v=1

Menlo Park-Based Accel-KKR Invests in Saber Consulting

Menlo Park, Calif. -- Accel-KKR, a Menlo Park-based private equity firm focused on technology companies, said on Wednesday that it has made an undisclosed investment in Saber Consulting, an Oregon-based provider of software to state and local governments. Nine-year-old Saber, which also has an office in Sacramento, offers software and services that address such issues as voter registration, election management and forms processing. The company currently has customer relationships with more than 13 state and local government entities. Under the terms of the deal, Nittin Khanna will continue to serve as Saber's president and CEO, and Karan Khanna will continue as its COO. In addition, Accel-KKR's Rob Palumbo, Ben Bisconti and Tom Barnds will join the company's board of directors.
http://www.saberconsulting.com/press-room.htm

Sony Computer Entertainment America Acquires Zipper Interactive

Foster City, Calif. -- Sony Computer Entertainment America, the Foster City-based developer and marketer of PlayStation products in the North American market, said that it has acquired Zipper Interactive, the Redmond, Wash.-based studio behind the "SOCOM: U.S. Navy SEALs" game franchise. Financial terms of the deal were not disclosed. The companies have collaborated since 1999, with worldwide SOCOM title sales recently surpassing seven million units. Sony's acquisition of Zipper follows its purchase of developer Guerilla B.V. in December.
http://www.us.playstation.com/PressReleases.aspx?id=322

S.F.-Based PlanetOut Acquires RSVP Productions for $6.5 Million

San Francisco - PlanetOut, the gay-focused, San Francisco-based media company that owns Gay.com and publishes the magazines Out and The Advocate, said that it has agreed to acquired RSVP Productions, a marketer of gay and lesbian travel events, for $6.5 million in cash plus up to $3 million in additional considerations. Minnesota-based RSVP, which has 12 employees, posted $8.3 million in revenue for the first nine months of 2005. PlanetOut said that the deal "substantially increases" its position in the $65 billion gay and lesbian travel market. RSVP offers a range of distinctive travel packages, including cruises, land tours and resort vacations geared toward a gay and lesbian audience. Since 1985, RSVP has booked more than 80,000 guests.
http://www.planetoutinc.com/press/releases/?sernum=281

Los Gatos-Based Netflix to Stock HD DVD, Blu-ray Titles at Launch

Los Gatos, Calif. -- Netflix, the Los Gatos-based online DVD rental firm, said that it will carry the first movie titles available on HD DVD when the new high-definition format developed by Toshiba launches in late March. The company also will stock titles in Sony's rival Blu-ray Disc format when they become available later this year. "For those subscribers who have an immediate interest in renting movies in high-def, we're committed to making the full range of titles available at Netflix the moment they're introduced," said Reed Hastings, the CEO of Netflix.
http://www.netflix.com/PressRoom?id=5312

Disney Inks $7.4 Billion Deal to Acquire Emeryville-Based Pixar

Emeryville, Calif. -- Walt Disney on Tuesday announced a deal to acquire Emeryville-based Pixar, the computer-generated film studio headed by Apple founder Steve Jobs, for $7.4 billion in stock. Under the deal, Jobs, Pixar's CEO, will become Disney's largest individual shareholder, and will take a seat on the company's board. Ed Catmull, the president of Pixar, will become the president of the companies' combined animation business. Disney has distributed each of Pixar's six films, starting with "Toy Story" in 1995. Other Pixar films have included "Monsters, Inc.," "Finding Nemo" and "The Incredibles."
http://biz.yahoo.com/bw/060124/20060124006101.html?.v=1

San Francisco-Based Healthline Lands $14 Million in New Funding

San Francisco -- Healthline, a San Francisco company that operates a search engine dedicated to consumer healthcare, said on Tuesday that it has secured $14 million in a new round of funding, led by VantagePoint Venture Partners. Other investors included Reed Elsevier Ventures, Mitsui & Co. and JHK Investments also participated. Since its beta launch late last year, Healthline has attracted nearly 1.5 million unique visitors. The company said that the new capital will help it to continuing an aggressive growth strategy.
http://www.healthline.com/corporate/news/healthline_funding_press_release.html

San Francisco-Based Splunk Raises $10 Million in Second Round

San Francisco -- Splunk, a San Francisco-based  developer of search software for IT data, said on Tuesday that it has secured $10 million in its second round of funding, led by JK&B Capital. Previous investors August Capital and Sevin Rosen Funds also participated. Splunk said that more than 15,000 system administrators, developers and support engineers have downloaded its software since its launch in August. The software is designed to more quickly troubleshoot problems, improve service quality and reduce the cost of responding to incidents.
http://www.splunk.com/index.php/articles/news/200

Clinical Data Inc. and Emeryville Subsidiary Land $11.7 Million Grant

Emeryville, Calif. -- Clinical Data Inc., a Massachusetts-based provider of molecular development services and clinical diagnostics technology, announced on Tuesday that, along with its Emeryville-based subsidiary, IO Informatics, it has received an $11.7 million grant from the National Institute of Science and Technology (NIST) to develop software tools that support the discovery of drugs and diagnostics. The program will use IO Informatics' database technology, designed to transform specific parts of data into objects that scientists can describe and share. "The [technology] has the potential to transform data management in the same way that PDFs have transformed file sharing," said Patricia Rougeau, the CEO of IO Informatics.
http://biz.yahoo.com/bw/060124/20060124005181.html?.v=1

Santa Clara-Based Clearwell System Launches with Funding from Sequoia

Santa Clara, Calif. -- Clearwell Systems, a Santa Clara-based developer of software designed to find, organize and analyze information contained in emails, said that it has launched with an investment from Sequoia Capital. The amount of funding was not disclosed. The company said that its platform, meant to replace the time-consuming act of manually reviewing hundreds of emails, can help businesses in areas such as regulatory compliance, legal discovery and customer management. Clearwell claims that its technology can significantly lessen the time companies spend analyzing email, as well as reduce operational costs.
http://www.clearwellsystems.com/news/pr_01_23a_2006.php

MoneyTree Survey: Venture Capital Investing Increases Slightly in 2005

San Francisco -- Venture capital investing increased slightly last year, with companies raising a total of $21.7 billion in 2,939 deals, according to the newly released MoneyTree Survey from PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association. The $21.6 billion invested in 2004 had marked the first increase in venture capital investing after three straight years of declines. Investments in the fourth quarter were down slightly from the prior quarter. The trend was similar locally, with Silicon Valley companies raising $1.8 billion, down from $2.1 billion the previous quarter and $1.95 billion the previous year.
http://www.nvca.org/
http://biz.yahoo.com/prnews/060124/nytu009.html?.v=32

Newark-Based Payment Processing Inc. Acquires Paradata Systems

Newark, Calif. -- Payment Processing Inc. (PPI), a Newark-based provider of payment processing services to software developers and merchants, said on Tuesday that it has acquired British Columbia-based Paradata Systems for an undisclosed sum. Founded in 1995, Paradata is the developer of a payment system used by businesses in the U.S. and Canada. PPI, which added 15 employees through the deal, said that the deal will help it to enhance its 10-month-old payment gateway, and allow it to add Canadian processing support. PPI's payment gateway currently supports over 500 software developers and more than 10,000 merchants. Last year, the company processed nearly $3 billion in Visa and MasterCard payments.
http://biz.yahoo.com/bw/060124/20060124005617.html?.v=1
http://www.paypros.com/

Redwood City-Based EA Publishes First Game Under Deal with ESPN

Redwood City, Calif. -- One year after agreeing to a long-term development and marketing pact with the cable sport giant, Redwood City-based Electronic Arts, the large developer and publisher of video games, said on Tuesday that it has published its first game that includes integrated content from ESPN. EA's "MVP 06 NCAA Baseball" title, now in stores, is the first in what's expected to be many in the collaboration of the two companies. Another game, "Fight Night Round 3," is due out in stores this spring. The companies agreed to team in January 2005. The agreement gives EA access to ESPN's programming and personalities, with ESPN also marketing the games through its various TV, web and print properties.
http://info.ea.com/news/pr/pr730.htm

Worldwide Wi-Fi Hotspots Top 100,000 Mark; S.F. with 801

San Francisco -- The number of worldwide Wi-Fi hotspots has now surpassed the 100,000 mark, according to new statistics from San Francisco-based JiWire, a provider of Wi-Fi hotspot information and services. The company defines a hotspot as a physical address where people can connect to a public wireless network, such as a cafe, hotel or airport. JiWire said that Seoul (2,056) has the greatest number of hotspot locations, followed by Tokyo (1,802) and London (1,627). The top domestic Wi-Fi cities are San Francisco (801), New York (643) and Chicago (501). "In just this past year, we've seen almost 100% growth in the number of hotspots around the world," said Kevin McKenzie, the CEO of JiWire. 
http://biz.yahoo.com/bw/060124/20060124005423.html?.v=1

StubHub: Super Bowl Tickets Selling for Average of $3,054 on Site

San Francisco -- StubHub, the San Francisco-based online marketplace dedicated to tickets, said on Tuesday that tickets to Super Bowl XL on its site have so far sold for an average of $3,054, about $400 more than a year ago. The company said that the most expensive ticket sold to date on StubHub has been $6,500 for a seat on the 50-yard line. Tickets on its site have so far attracted buyers from 28 states, with 22% from Pennsylvania, home of the AFC champion Pittsburgh Steelers, and another 13% from those in Michigan, the state that will play host to the game. Only 4% of its tickets have been sold to fans in Washington state, home of the NFC champion Seattle Seahawks. The
http://biz.yahoo.com/bw/060124/20060124005440.html?.v=1

Sunnyvale-Based AMD Names New President, Plans to Raise $500 Million

Sunnyvale, Calif. -- Advanced Micro Devices (AMD), the Sunnyvale-based chip maker, on Monday named a new president and announced plans to raise $500 million through a stock offering. AMD said that Dirk Meyer, most recently the president and COO of its Microprocessor Solutions Sector business, has been promoted to president and COO of the company. He will take over for chairman and CEO Hector Ruiz, who will relinquish the president title. Meyer, 44, joined AMD in 1995. As for the offering, the company said that it will use $226 million of the proceeds to pay off debt, with the remainder going toward capital expenditures, working capital and other corporate purposes.
http://www.amd.com/us-en/Corporate/VirtualPressRoom/0,,51_104_543~104556,00.html
http://biz.yahoo.com/bw/060123/20060123006001.html?.v=1

Menlo Park-Based 3i Invests $23 Million in Switzerland's Webpay

Menlo Park, Calif. -- 3i, a private equity firm with U.S. headquarters in Menlo Park, said on Monday that it has invested $23 million in Switzerland's Webpay AG, whose Click & Buy online payment system is used by more than 5 million consumers in Europe. Webpay International opened a New York office in 2004, and has plans to further expand into other markets in the U.S., as well as in Canada, South America, Asia and Eastern Europe. The company said that it will use part of the funding to expand into the U.S. publishing, games and online music industries. The software allows merchants to outsource the complex billing of content, services and physical goods, as well as the processing of local currency and credit cards, to Webpay. "We believe this will take Click & Buy's leadership position in Germany and Europe to an international level," said Robin Murray, a partner at 3i US.
http://biz.yahoo.com/prnews/060123/nym228.html?.v=23

IBM to Form Instant Messaging Link with AOL, Yahoo, Google

Armonk, N.Y. -- In a major move to integrate instant messaging platforms, technology giant IBM said on Monday that the new version of its secure IM platform for businesses will allow users to connect to popular messaging applications from America Online, Sunnyvale-based Yahoo and Mountain View-based Google. IBM's Lotus Sametime has 15 million corporate users, mainly at large companies. IBM rival Microsoft will not be included in the deal. Once the software is released around mid-year, Sametime users will be able to chat with those using AOL's various instant messengers, including AIM and ICQ, as well as Yahoo Messenger and Google Talk.
http://biz.yahoo.com/iw/060123/0107081.html

World Cup Soccer Expected to Generate $6.35 Billion in Mobile Revenue

San Francisco - The month-long 2006 World Cup soccer tournament is expected to generate $6.35 billion in mobile revenue through text-messaging, ringtones, gambling, video clips and mobile games, according to a new report from San Francisco market research firm Visiongain. The tournament, which launches in June in Germany, is also expected to be a testing ground for live mobile TV services. "The telecoms industry has the potential to generate significant revenue from the 2006 World Cup," said Visiongain's Adam Walkden. "However, operators aiming to utilize the tournament's popularity to push 3G at the expense of more traditional services will miss out. The key revenue generators will be tried and tested text services, ringtones and logos."
http://www.visiongainintelligence.com/pressReleaseDetail.aspx?pressReleaseId=1040

Redwood City-Based Electronic Arts Discounts Game Titles

Redwood City, Calif. -- Electronic Arts, the Redwood City-based developer and publisher of video games, has cut prices on its games by $10-$20 in North America in a bid to increase slumping sales, GamesIndustry.biz reported. Forty-eight of EA's titles for current-generation game consoles will be discounted, including its top-selling "Madden NFL 06," which will drop from $39 to $29. Some premium-priced titles, like "Need for Speed: Most Wanted," also will be slashed. "We expect more price cuts to come from other publishers, and believe very few new current gen releases will be able to charge a premium price," said Banc of America Securities in a research note.
http://www.gamesindustry.biz/news.php?aid=14204

Bay Area Companies Raise $1.94 Billion in Fourth Quarter

San Francisco -- Bay Area companies raised $1.94 billion in 199 rounds of venture capital during the fourth quarter, according to new data released by Dow Jones VentureOne and Ernst & Young. The dollar figure was down slightly from a quarter ago, but up nearly $100 million from the same period in 2004. While funding for healthcare companies rose 40%, however, area information technology firms received about 25% less than a quarter ago. Three of the region's largest deals, in fact, occurred in the biopharmaceutical sector, where Mountain View-based Perlegen Sciences raised $50 million, and South San Francisco-based Raven Biotechnologies and Portola Pharmaceuticals raised $48.3 million and $46 million, respectively. Nationally, there were 588 VC deals in the quarter -- the most in a single quarter this year -- with $5.31 billion invested, up 3% from the year before. For the year,  VC investing in the U.S.rose to its highest level since 2001.

http://biz.yahoo.com/bw/060123/20060123005209.html?.v=1

Redwood Shores-Based StrongMail Raises $9.5 Million in Funding

Redwood Shores, Calif. -- StrongMail, a Redwood Shores-based developer of email infrastructure software, said on Monday that it has raised $9.5 million in its second round of funding, led by Palo Alto's Globespan Capital Partners. Previous investors Sequoia Capital and Evercore Ventures also participated. The company said that it will use the funds to expand its operations in response to growing customer demand for its products. Last quarter, StrongMail said that its client list grew by 51%, with new customers like Citrix Online, BrassRing and HouseValues coming on board. The company's software is designed to help clients use email in increasingly complex ways to improve their businesses.
http://www.strongmail.com/
http://biz.yahoo.com/bw/060123/20060123005412.html?.v=1

Los Altos-Based Rambus to Buy Back 5 Million More Shares

Los Altos, Calif. -- Rambus, a Los Altos-based a licensor of high-speed chip interfaces, said on Monday that it has received approval from its board to buy back another 5 million shares of company stock over an undefined period of time. That's on top of the 1.6 million shares the company can still repurchase under its current plan. "Our strong balance sheet and cash generation capability allow us to simultaneously invest in our current business and repurchase stock," said Harold Hughes, the president and CEO of Rambus. Since late 2001, Rambus has repurchased 12.5 million shares of its stock at an average price of $13.05. The company's stock opened on Monday at $34.04 a share.
http://www.rambus.com/news/pressrelease.aspx?id=108

Geac Shareholders Approve Acquisition by S.F.-Based Golden Gate Capital

San Francisco -- Geac Computer, a Massachusetts-based maker of financial management software, said on Friday that its shareholders have approved the company's planned acquisition by Golden Gate Capital, a San Francisco-based private equity firm. Geac's board of directors agreed last November to Golden Gate's buyout offer of about $1 billion. Currently traded on the Nasdaq, Geac offers software designed specifically to support the operations of corporate CFOs. The company had revenue of $103.7 million and a profit of $11.3 million in the most recent quarter.
http://www.geac.com/object/pr011906.html