Silicon Valley Wire

Google CFO Warns of Slowing Growth; Sparks Sell-Off

Mountain View, Calif. -- Shares of Mountain View-based Google closed down more than 7% on Tuesday after the Internet search giant's CFO warned an investor conference that the company's growth is slowing. George Reyes said that Google will need to begin finding new ways to boost its revenue, triggering a sharp sell-off of the stock, which at one point was down 10%. "Growth is slowing and now largely organic. The search monetization gains have now largely been realized," Reyes told attendees of a Merrill Lynch conference in New York. "I'm not turning bearish at all. I think we've got a lot of growth a head of us," he said. "It's a question of what rate."
http://us.ft.com/ftsuperpage/superpage.php?news_id=fto022820061626589064&referrer_id=yahoofinance
http://biz.yahoo.com/rb/060228/google.html?.v=7

San Francisco-Based PhoneBites Raises $7 Million in Second Round

San Francisco -- Phonebites, a San Francisco-based publisher of mobile entertainment, said on Tuesday that it has raised $7 million in its second round of funding, led by Menlo Park-based Mayfield Fund. Previous investors Cardinal Venture Capital, Garage Technology Ventures and Greenpark Capital also participated. Phonebites is the developer of a mobile audio distribution platform called the RAZZ, which allows users to interject sound clips directly into their phone conversations. The company raised $3 million in its first round in January 2005.
http://www.phonebites.com/press/?show=pr&id=30

Valuations of U.S. Venture-Backed Companies Reach Four-Year High

San Francisco -- The median premoney valuation of U.S. venture-backed companies -- or the values of businesses prior to receiving funding rounds -- hit its highest point in four years in 2005, reaching $15.2 million, according to a new report from San Francisco-based VentureOne.  The figure is $3 million higher than a year ago, the result of increased later-stage investing in information technology and the improved liquidity environment, VentureOne said. The last time the overall annual median premoney valuation was this high was in 2001, when it reached $16 million. "The improved climate for initial public offerings in Europe and the higher prices being paid in acquisitions in the United States is paving the way for higher valuations on company financings," said Steve Harmston, the director of global research for VentureOne.
http://www.ventureone.com/

Six Video Game Icons to Receive Stars on San Francisco's Walk of Game

San Francisco -- Six video game icons will be honored with stars on the Walk of Game, a year-old tribute to the gaming industry located inside the Metreon entertainment complex in Downtown San Francisco. New stars to be unveiled on March 16 includes lifetime achievement awards honoring Sid Meier, the creator of Civilization, Railroad Tycoon and Pirates, and John Carmack, the technical director of Doom and Quake developer id Software. Also receiving stars in the games and characters category will be Lara Croft of Tomb Raider, StarCraft, Final Fantasy and EverQuest. Each October, gamers worldwide cast their votes through paper ballots and online submissions during a month-long voting period. The top four games or characters and the top two lifetime achievers are then honored with a permanent 24-inch by 24-inch steel star on Walk of Game. Nominations for 2007 will be announced later this year.
http://www.walkofgame.com/

Report: Number of Residential VoIP Customers Triples in 2005

Arlington, Va. -- The number of residential Voice-over-Internet-Protocal (VoIP) customers, not including PC-to-PC services, more than tripled to 4.2 million last year, and is expected to reach 18 million by 2009, according to a new report from the Telecommunications Industry Association (TIA), an industry trade group. The TIA said that the market is being driven by a number of factors, most notably the lure of inexpensive voice communications and increasing broadband subscribership. . The organization said that VoIP carriers are now moving beyond the residential market, and are beginning to introduce services geared toward the small-business market.
http://www.tiaonline.org/business/media/press_releases/2006/PR06-19.cfm

Survey: Most Americans Prefer TV for National News, Newspapers for Local

Burlingame, Calif. -- Most Americans get their news from television, while newspapers continue to cede readership to the Internet, according to a new survey of 2,800 consumers from Burlingame-based research and advisory firm Outsell. Seventy-one percent of respondents said that they rely on network, cable and satellite TV as primary or secondary sources of national news, while only a third choose their local newspapers. Another 28% access sites like Google, Yahoo, MSN and AOL News, which aggregate national news articles from multiple major dailies and wire services, and just 11% rely on the web sites of their daily newspapers. The statistics show a generational chasm between older respondents, who prefer TV and newspapers, and younger, who prefer online access for their news and information. When it comes to local news, however, 61% of consumers still turn to their newspapers first.
http://www.outsellinc.com/outsell/press%20room/pr_release/pr20060228_01.htm

San Francisco-Based Terracotta Raises $13.5 Million in Second Round

San Francisco -- Terracotta, a San Francisco-based developer of caching and clustering software, said on Monday that it has raised $13.5 million in its second round of funding led by Goldman Sachs. New investor Presidio STX and previous investors Benchmark Capital and Accel Partners also participated. The company said that the new capital will help it to accelerate the launch of its first products for application developers and operators, particularly within the financial services and telecom sectors.
http://www.terracottatech.com/press_2_27_06_goldman.shtml

San Jose-Based Cisco Completes $6.9 Billion Acquisition of Scientific-Atlanta

San Jose, Calif. -- Cisco Systems, the San Jose-based network equipment giant, said on Monday that it has completed its $6.9 billion acquisition of Scientific-Atlanta, a Georgia-based provider of digital video delivery equipment. Cisco said that the deal, first announced in November, will give it a stronger presence in the home entertainment market. Earlier this month, Cisco announced plans raise $5.5 billion in a new debt offering, with plans to use a portion of the proceeds to fund the acquisition.
http://newsroom.cisco.com/dlls/2006/hd_022706.html?CMP=ILC-001

Burlingame-Based MeeVee Raises $6.5 Million in Second Round

Burlingame, Calif. -- MeeVee, a Burlingame-based provider of free online guides for local TV listings, said on said on Monday that it has raised $6.5 million in its second round of funding, led by Labrador Ventures. Other participants includes WaldenVC, Edmond de Rothschild Venture Capital Management and DEFTA Partners. MeeVee's guides feature show summaries and episode trailers for TV shows on ABC, CBS, NBC and FOX, as well as hundreds of other cable and satellite channels. Michael Raneri, the president of MeeVee, said that the round will allow his company to "almost immediately" add more functionality to its products.
http://www.meevee.com/
http://biz.yahoo.com/bw/060227/20060227005177.html?.v=1

San Jose-Based Nextest Systems to Price IPO Shares at $14-$16

San Jose, Calif. -- Nextest Systems, a San Jose-based maker of automated test equipment systems for the semiconductor industry, said that it will price its upcoming initial public offering (IPO) of 5.4 million shares at between $14-$16 each, with the company raising up to $99.36 million. The company, which plans to list its stock on the Nasdaq National Market under the symbol "NEXT," had filed to raise up to $80 million in December. It originally filed for an IPO in April of 2004, but withdrew the offering the following January. Nextest's systems are predominantly used by customers to test semiconductors found in a range of consumer products, such as portable music players, cell phones, digital cameras and USB flash drives.
http://ipoportal.edgar-online.com/ipo/displayFundamentals.asp?cikid=98878&fnid=47582&IPO=1&coname=NEXTEST+SYSTEMS+CORP

Menlo Park-Based Lightspeed to Partner with Gemini on Israeli Investments

Menlo Park, Calif. -- Lightspeed Venture Partners, a Menlo Park-based seed and early stage venture capital firm, said that it has teamed with Israeli counterpart Gemini Israel Funds to create a jointly led "Lightspeed -- Gemini Internet Lab." The two funds said that they plan to support 7-10 emerging Internet companies -- who have some operations in Israel -- with an initial investment of up to $1 million each. Investments will focus on technologies related to the Internet and Web 2.0. Jake Seid, a general partner at Lightspeed, said that his firm has been investing in Israel for 10 years, and is "excited to expand our activity" in the country.
http://biz.yahoo.com/bw/060227/20060227005651.html?.v=1
http://www.lightspeedvp.com/

Berkeley-Based PINC Solutions Lands Second Round of Funding

Berkeley, Calif. -- PINC Solutions, a Berkeley-based developer of radio-frequency identification (RFID) software used to locate and track items in yards and warehouses, said on Monday that it has raised an undisclosed amount in its second round of financing from Sutter Hill Ventures. PINC was launched in 2004 and incubated by Siemens, which provided the company with its initial seed capital. The company said that it will use the new funds to accelerate the development and commercialization of its product portfolio. It is planning to begin customer trials during the second quarter.
http://www.thepinc.com/
http://biz.yahoo.com/bw/060227/20060227005310.html?.v=1

Judge Declines to Issue Injunction Against BlackBerry Maker; Urges Settlement

Richmond, Va. -- BlackBerry users throughout the U.S. are breathing a sigh of relief after a federal judge in Richmond, Va. on Friday declined to issue an injunction in the continuing patent dispute between NTP and BlackBerry-maker Research In Motion (RIM) that could have shuttered the popular email devices. U.S. District Judge James Spencer urged both sides to reach a settlement on their own, or face the consequences of an "imperfect" legal ruling that may not please either side. Analysts believe that a potential settlement could cost RIM as much as $1 billion. Lawyers for NTP reportedly asked Spencer for $126 million in damages, in addition to royalty payments, and an injunction against RIM. NTP has contended since 2001 that the technology behind the Blackberry -- which counts most of its 3.6 million users in the U.S. -- infringes on its patents. Most analysts, however, believe that the service won't go dark, with RIM either reaching a settlement or introducing new software that won't conflict with any patents.
http://biz.yahoo.com/ap/060224/blackberry_battle.html?.v=8

Google, National Archives Team to Put Historic Films Online

Mountain View, Calif. -- The National Archives and Mountain View-based Internet search giant Google on Friday announced the launch of a pilot program that will digitize and make historic films  available for free online. Under a non-exclusive deal, researchers and the general public will be able to access a collection of 103 historic movies, documentaries and other films from the National Archives through Google Video (http://video.google.com/nara.html) as well as the National Archives website (http://www.archives.gov). "For the first time, the public will be able to view this collection of rare and unusual films on the Internet," said Allen Weinstein, archivist of the United States. The National Archives and Google said that they are exploring the possibilities of expanding the online film collection and making the Archives' extensive textual holdings available through the Internet, as well.
http://www.archives.gov/press/press-releases/2006/nr06-64.html

Apple's iTunes Surpasses 1 Billion Song Downloads

Cupertino, Calif. -- Cupertino-based Apple said that one billion songs have now been downloaded from its iTunes Music Store since it was launched less than three years ago. The billionth song, "Speed of Sound," was purchased as part of Coldplay's X&Y album by Alex Ostrovsky from West Bloomfield, Mich. Apple said that iTunes currently features more than two million songs, as well as 35,000 podcasts, 16,000 audiobooks, 3,500 music videos and a variety of short films and TV shows.
http://www.apple.com/pr/library/2006/feb/23itms.html

Report: Few U.S. Homes Expected to Add Internet Access in 2006

Dallas -- Only 2 million of the estimated 39 million U.S. homes without Internet access, said that they are planning to subscribe this year, according to a report from market research firm Parks Associates. If the numbers hold true, the overall rate of Internet adoption in the U.S. would grow just 1% to 64%. The firm said that only 8 million of the homes without Internet access even own a computer, although 14 million reported having access to the Internet at work or other locations. Some 300,000 households said they might subscribe if services were cheaper. "We are clearly facing a problem of demand, not supply," said John Barrett, the research director at Parks.
http://www.parksassociates.com/press/press_releases/2006/nat-scan_pr1.html

Report: Homeland Security to Get Nearly Half of New Federal IT Dollars

Reston, Va. -- With the war on terror in full swing, the Department of Homeland Security (DHS) will get nearly half of all new federal information technology dollars under President Bush's fiscal 2007 budget, according to a new report from research firm INPUT. The firm said that the DHS will see 21% increase in its IT budget to $4.4 billion, landing 44% of all new money added to federal IT spending. Overall, 21 of 27 civilian agencies received an IT budget increase, with federal agencies planning to spend $64.3 billion on IT in fiscal '07, a 3% increase over the prior year.
http://www.input.com/corp/press/detail.cfm?news=1150

Sunnyvale-Based mBlox Lands $25 Million in New Funding Round

Sunnyvale, Calif. -- MBlox, a Sunnyvale-based provider of mobile transaction services, said on Thursday that it has landed $25 million in a new round of funding, led by new investor Trident Capital of Palo Alto. Previous investors BA Venture Partners, Norwest Venture Partners, Novus Ventures and Avanti Capital also participated in the round, which the company plans to use to accelerate the rollout of new products and extend its global footprint with acquisitions in Europe and Asia. mBlox provides message delivery and mobile billing services to business, processing over 1 billion mobile business transactions worth approximately $400 million last year.
http://www.mblox.com/mblox/news/p_022306.asp

San Jose-Based KLA-Tencor to Acquire ADE for $488 Million

San Jose, Calif. -- KLA-Tencor, a San Jose-based maker of semiconductor manufacturing equipment, has agreed to pay $488 million in stock to acquire ADE, a Massachusetts-based supplier of metrology and inspection systems for the semiconductor industry. Under the deal, which has been approved by the boards of directors of both companies and is expected to close shortly after mid-year, each share of ADE will be exchanged for 0.64 shares of KLA-Tencor.
http://www.ade.com/news/index.shtml#news18

Millbrae-Based PowerReviews Raises $6.25 Million to Launch Service

Millbrae, Calif. -- PowerReviews. a Millbrae-based provider of consumer product review services for retailers, said on Thursday that it has raised $6.25 million in its first round of funding, and has now officially launched its service. Silicon Valley venture capital firms Menlo Ventures and Draper Richards participated in the financing. Andy Chen, the CEO of PowerReviews, said that he and co-founder Robert Chea formed the company to make reviews accessible to retailers who haven't yet added them to their web sites. Chen said that their company doesn't charge retailers for the service, which uses advertising and licensing to monetize the reviews. In 1994, Chen and Chea founded online sporting-goods retailer Fogdog.com, and have since worked on e-commerce platforms for over 50 major brands, including Gloss, Palm, Linens 'n Things and Kmart.
http://www.powerreviews.com/corporate/about_press.html

Judge Rules that Google's Thumbnail Images Violate Copyrights

Mountain View, Calif. -- A federal judge in Los Angeles has ruled that Google, the Mountain View-based Internet search giant, is violating copyright laws by displaying thumbnail images of a pornographer's nude photos in its image search engine, CNET News.com reported. U.S. District Judge A. Howard Matz ruled that Google is infringing on the copyrights of California-based Perfect 10, and plans to issue an injunction against the company. Matz said that Google shared in advertising revenue with sites that used pirated versions of Perfect 10's images, which appeared in its image index. Google, which plans to appeal the ruling to the 9th Circuit Court of Appeals, said that it will not affect any images in its archive other than those from Perfect 10.
http://news.com.com/Nude-photo+site+wins+injunction+against+Google/2100-1030_3-6041724.html

Redwood City-Based EA Slashes Some New Game Prices by 20%

Redwood City, Calif. -- Electronic Arts, the Redwood City-based developer and publisher of video games, said that it plans to introduce a number of anticipated new titles at a 20% discount off the industry standard pricing for new games. EA's "Godfather" and "Black" will go on sale for PlayStation 2 and Xbox at $39.95, rather than the typical $49.95 price for new titles. A number of game publishers have taken similar steps to discount titles, both in light of sagging sales and in anticipation of the release of next-generation consoles. New games for Microsoft's new Xbox 360 console typically cost $59.95.
http://biz.yahoo.com/bw/060220/20060220005094.html?.v=1

The Wall Street Journal to Combine Print, Online Operations

New York - Dow Jones & Company, publisher of The Wall Street Journal, said that it plans to combine the print and online operations at the paper into a single operating unit. Known as The Consumer Media Group, the unit will include The Wall Street Journal print and online editions, Barron's, MarketWatch and other consumer sites. Dow Jones also has named L. Gordon Crovitz, formerly head of The Journal's online operations, as the paper's new publisher. Richard Zannino, the CEO of Dow Jones, said that the moves are designed to improve efficiency, reduce costs and better position the company to "exploit growth opportunities in the consumer, enterprise and local media markets." The new structure is expected to save $8 million a year, largely through eliminating about 20 jobs.
http://biz.yahoo.com/bw/060222/20060222005523.html?.v=1 

Milpitas-Based Rackable to Sell Another 7.5 Million shares in Offering

Milpitas, Calif. -- Just three months after raising $46.4 million in a public offering, Rackable Systems, a Milpitas-based maker of servers and storage products for data centers, on Wednesday announced plans to offer another 7.5 million shares in a public offering that could raised more than $260 million. The company said that it will sell about 3.35 million of the shares it owns, with selling shareholders offering the remainder. Rackable has seen the value of its stock triple since raised $75 million in its initial public offering in mid-2005. Its customers include Microsoft, Dell, Sun and IBM.
http://www.rackable.com/#
http://biz.yahoo.com/bw/060222/20060222005321.html?.v=1

Santa Clara-Based Coherent to Acquire Excel Technology for $376 Million

Santa Clara, Calif. -- Coherent, a Santa Clara-based provider of photonics technologies for the commercial and scientific research markets, said that it will pay $376 million in cash to acquire Excel Technology, a New York-based maker of laser systems and electro-optical components. "Over the last several months, we have been highlighting the long-term growth potential of the materials processing market as well as the need for consolidation in the photonics industry," said John Ambroseo, the president and CEO of Coherent. "The acquisition of Excel Technology addresses both points." The deal is expected to close by midyear.
http://www.coherentinc.com/investors/index.cfm?fuseaction=Popups.ViewRelease&ID=653

Pleasanton-Based Aesthera Raises $11 Million in Third Round

Pleasanton, Calif. -- Aesthera, a Pleasanton-based developer of light-based aesthetic treatment systems, said on Wednesday that it has secured $11 million in its third round of venture funding, led by Kleiner Perkins Caufield & Byers. Previous investors MedVenture Associates and Adams Street Partners also participated. Aesthera's technology is used in hair removal, as well as the treatment of vascular and pigmented lesions. The company said that its method is pain-free and up to seven times faster than traditional treatment methods.
http://www.aesthera.com/default/about_us/news/aesthera_corp_secures_11_million_in_venture_funding_led_by_kleiner_perkins_caufield__byers/index.cfm

San Jose-Based Avago Technologies to Sell Printer Chip Business to Marvell

San Jose, Calif. -- Avago Technologies, a privately held maker of semiconductors, said that it will sell its printer chip business to Santa Clara-based Marvell for $240 million in cash. The deal is expected to close within 60 days. Under the terms, Marvell could also pay up to $35 million more, based on the amount of revenue generated by the business. Avago said that the deal will allow it to concentrate its resources on growing markets, as well as its core business. The company plans to use the proceeds to further reduce the debt related to its buyout from Agilent Technologies in December.
http://www.avagotech.com/about/press/press-view.jsp?id=1581

San Jose-Based Covad Completes Acquisition of NextWeb

San Jose, Calif. -- Covad Communications Group, a provider of voice and data communications services, said that it has completed its $23.7 million acquisition of NextWeb, a broadband wireless carrier operating in California and Nevada. Charles Hoffman, the president and CEO of Covad, said that the deal compliments his company's exisitng network footprint. NextWeb provides business-class wireless broadband service to nearly 3,000 business customers in the San Francisco Bay area, Los Angeles, Orange County, Santa Barbara and Las Vegas. The deal was first announced in October.
http://www.covad.com/companyinfo/pressroom/pr_2006/022106_news.shtml

Petaluma-Based Calix Completes Acquisition of Optical Solutions

Petaluma, Calif. -- Calix, a Petaluma-based supplier of telecom equipment for broadband service delivery, said that it has completed its acquisition of Optical Solutions. Financial terms of the deal were not disclosed. Calix said that it already has fully integrated the operations of Optical Solutions, which will maintain a development center in Minneapolis. Optical Solutions makes access systems that help service providers deploy broadband services. Calix now has approximately 340 North American customers.
http://www.calix.com/news/press_releases/CalixPressRelease20060221b.html

San Jose-Based eBay Taps EDS Veteran Bob Swan as New CFO

San Jose, Calif. -- Bob Swan, the former CFO of Electronic Data Systems, has been named as the new CFO of San Jose-based eBay, the online auction giant said on Tuesday. Starting March 16, Swan will replace Rajiv Dutta, who will complete the transition to his new role as the president of Skype, eBay's nearly acquired online telephone business. Prior to EDS, Swan served as the CFO of TRW, and also has held executive-level positions at Webvan and General Electric.
http://investor.ebay.com/ReleaseDetail.cfm?ReleaseID=188146&FYear=

Palo Alto-Based Solidcore Raises $10 Million in Third Round

Palo Alto, Calif. -- Solidcore Systems, a Palo Alto-based maker of information technology control systems, said on Tuesday that it has secured $10 million in its third round of funding, which included participation from previous investors Matrix Partners, Menlo Ventures and Sevin Rosen Funds. The company said that it will utilize the capital to expand its product deployment, customer support and channel capabilities. Solidcore also announced on Tuesday that it has surpassed the 50-customer milestone. The company's products are designed to help clients to more effectively control their IT operations.
http://www.solidcore.com/news/release26.html

WebEX, AOL to Develop Instant Messaging Tool for Businesses

Santa Clara, Calif. -- Attempting to tap into a potentially lucrative market, America Online said on Tuesday that it has teamed with Santa Clara-based -based WebEx Communications to develop a more secure, feature-laden version of AOL's popular AIM instant messenger for businesses and IM users at work. Codenamed "AIM Pro," the new jointly developed service, to be released in versions for both small and large businesses, will allow users to securely chat, launch conference calls, online meetings and live demonstrations with any AIM user. It also will include additional security features, as well as voice, video and web collaboration capabilities. The service is expected to be available by mid-year. According to media reports, a monthly subscription fee is likely.
http://media.aoltimewarner.com/media/newmedia/cb_press_view.cfm?release_num=55254534

San Francisco-Based Vizu Raises $1 Million in First Round of Funding

San Francisco -- Vizu, a San Francisco-based developer of technology that allows organizations and individuals to create their own online polls, said on Tuesday that it has raised $1 million in its first round of funding, led by San Francisco-based WR Hambrecht + Co. Amicus Capital and several angel investors also participated. Individuals can use Vizu to create polls on any topic, and can monitor or share content via email, RSS, instant messaging or by exporting polls to blogs, web sites or other social networking sites.
http://www.vizu.com
http://biz.yahoo.com/bw/060221/20060221005199.html?.v=1

Viisage Completes Acquisition of Martinez-Based SecuriMetrics

Martinez, Calif. -- Viisage Technology, a Massachusetts-based provider of identity-authentication technology, said that it has completed its $28 million acquisition of SecuriMetrics, a Martinez-based provider of handheld iris, face and finger recognition devices. SecuriMetrics' business operations will remain at their current location, Viisage said. The acquisition is being funded from a $100 million investment that L-1 Investment Partners made in Viisage last year.
http://viisage.com/ww/en/pub/home.cfm

Report: Online Auto Insurance Industry Grows Sharply in 2005

Reston, Va. -- Consumers flocked online to research and purchase auto insurance last year, according to a new report from comScore Networks. The firm said that the total number of auto insurance quotes submitted online increased by 24% in 2005, with insurance policy purchases jumping by 29%. "The auto insurance sector has been slow to find its footing online, but grew faster in 2005 than any other financial services category," said Nicolas Tabbal, the vice president of comScore's Financial Services division.  Tabbal said that the better numbers reflect consumers' "increased comfort in conducting complex financial transactions online."
http://www.comscore.com/press/release.asp?press=759

Wireless Industry Hails 28% Drop in Complaints About Service

Washington, DC -- In a report being trumpeted by the wireless industry, the Federal Communications Commission said over the weekend that consumer complaints about wireless service tumbled by 28% in the most recent quarter. The FCC revealed that there were 4,956 wireless complaints in the fourth quarter, down from 6,873 in the third quarter. That means that just 24 of every 1 million wireless subscribers officially filed a complaint. "What is abundantly clear is that the overwhelming majority of wireless consumers are satisfied with their service," said Steve Largent, the president and CEO of the CTIA, an international association for the wireless telecommunications industry.
http://www.ctia.org/news_media/press/body.cfm?record_id=1582

Mountain View-Based Podbridge Launches with $10-$12 Million in Funding

Mountain View, Calif. -- Podbridge, a Mountain View-based provider of targeted ad delivery technology for podcasts, said that it has officially launched its service. The company's founder and CEO, Murgesh Navar, told Dow Jones' VentureWire that it has raised between $10- $12 million in venture capital funding, from Mayfield Fund and Worldview Technology Partners. Podbridge said that it already has partnered with the BBC, Military.com and several Clear Channel radio stations, which will be able to track ad listens, place ads by demographics and location, rotate multiple ads and manage budgets. The company said that Ronning Lipset Radio has signed on to be its exclusive third-party agent, charged with selling audio spots on the Podbridge network.
http://www.podbridge.com/home/news.html

Micron Buys Idaho Facility from San Jose-Based ZiLOG for $5 Million

San Jose, Calif. -- Micron Technology, a large maker of semiconductor components and memory modules, said on Friday that it has paid $5 million to buy a wafer fabrication facility and surrounding land in Idaho from San Jose-based ZiLOG, a supplier of microcontrollers and universal remote control components. Micron plans to use the facility for the final stages of image sensor production and other fabrication processes. Micron said that it plans to invest in facility improvements and expects to bring the facility online by the end of the year. Micron also expects to hire operators, technicians and support staff at the facility.
http://www.micron.com/news/corporate/2006-02-17_micron_zilog.html

WSJ: Carl Icahn Giving Up Battle for Control of Time Warner

New York -- Billionaire financier Carl Icahn has ended his battle to gain control of Time Warner, and is now in talks with the media giant about a potential settlement, The Wall Street Journal reported on Friday. Icahn, whose group owns about 6% of Time Warner, had been seeking to gain control of the company's board with the goal of breaking it into four separate companies to increase its value to shareholders. But Icahn , who has been unable to gain much traction with other large shareholders, on Thursday backed down from his original goal by nominating only five candidates for the board, which has 14 seats. "Many shareholders want change on the board, but they feel a full slate would be disruptive," Icahn told the Journal "I agree it's disruptive, which is why we're cutting down the slate."
http://online.wsj.com/article/SB114010945965176010.html?mod=home_whats_news_us (subscription required)
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B7D08F68B%2D3449%2D49EC%2D8739%2D9C45AB50A4ED%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

Report: Nearly 18 Billion Videos Streamed Online in 2005

Monterey, Calif. -- There were 17.95 billion Internet video streams served in 2005, up 50% from the previous year, according to a new report from Monterey-based market research firm AccuStream Research. The firm also said that surfers also spent 43% more time tuned into streaming web radio stations, Music was again the top video category online again in 2005, accounting for 45% of all video streams served. In addition to traffic generated by new independent streaming video sites, like Break.com, StupidVideos.com, Roo and VideoDetective, the largest streaming video networks remained large portals like AOL, Yahoo and RealNetworks, AccuStream said.
http://www.accustreamresearch.com/news/feb-16-06.html

Report: U.S., Europe Lag Behind Asia in Mobile Gaming Adoption

Dallas, Texas -- Mobile phone users in the Asia-Pacific region are more avid consumers of mobile games than their European and North American counterparts, according to a new report from market research firm Parks Associates. A survey found that 28% of consumers in the Asia-Pacific region played single-player mobile games on a weekly basis, compared with 13% in Europe and 8% in North America. In the nascent market for mobile multiplayer games, the survey found 7% played them weekly in the Asia-Pacific region, versus just 2% in both Europe and North America. "Cellular operators in North America and Europe are lagging behind their Asia-Pacific counterparts in mobile gaming, but they are starting to increase their focus on this area," said Michael) Cai, an analyst for Parks Associates.
http://www.parksassociates.com/press/press_releases/2006/gaming_pr2.html

Menlo Park-Based KPCB Forms New $600 Million Fund

Menlo Park, Calif. -- Kleiner Perkins Caufield & Byers (KPCB), a Menlo Park-based venture capital firm focused on technology, said on Thursday that it has formed a new fund that will invest $600 million over the next three years. KPCB XII will primarily back entrepreneurs in information technology and life sciences. In addition, KPCB announced a new $100 million initiative in "green technologies," such as biofuels, energy storage and energy conservation. "Greentech could be the largest economic opportunity of the 21st century," said John Doerr, a partner in KPCB XII.
http://www.kpcb.com/news/articles/2006_02_16a.html

Shares of Palo Alto-Based Hewlett-Packard Soar to Four-Year High

Palo Alto, Calif. -- Shares of Palo Alto-based Hewlett-Packard surged to a four-year high on Thursday after the technology giant, buoyed by strong sales of notebook computers and cost cutting measures, posted better-than-expected earnings. For the quarter ending Jan. 31, HP reported net income, excluding one-time items, of $1.39 billion, up from $1.08 billion for the same quarter a year ago. On a per share basis, the company earned $0.48, beating consensus Wall Street expectations by $0.06, according to a survey of analysts by Thomson First Call. The news sent company shares soaring more than 7% on Thursday, closing up $2.35 to $34.02.
http://biz.yahoo.com/bw/060215/20060215006091.html?.v=1

Jerome Perez Resigns as President of Emeryville-Based LeapFrog

Emeryville, Calif. -- LeapFrog, an Emeryville-based maker of technological education products, said on Thursday that Jerome Perez has resigned as its president. Thomas Kalinske, the company's CEO, will assume the role in addition to his current responsibilities. Perez had served as the company's president, as well as on its board of directors, since February 2004. LeapFrog cited "a continuing desire to streamline operations and decision-making" as a major reason for the move, which sent company shares down nearly 10% in Thursday's trading.
http://biz.yahoo.com/prnews/060216/sfth047.html?.v=45

Cisco Buys 9.7% Stake in Chinese Games Firm Shanda for $104 Million

San Jose, Calif. - Cisco Systems, the San Jose-based networking equipment maker, said in an SEC filing that it has indirectly purchased a 9.7% stake in Shanda Interactive Entertainment, an operator of online games in China, for about $104 millionm the Associated Press reported. Shanda operates online games including "The Legend of Mir" and "Ragnarok Online." The company also partnered with Intel on a PC-based entertainment system called the EZ Pod, which features access to video games, a web browser, and music downloads from providers including EMI Music.
http://biz.yahoo.com/ap/060215/shanda_cisco.html?.v=1
http://www.cisco.com 

Visa to Equip AT&T Park with Contactless Payment Terminals

San Francisco -- Credit card giant Visa said on Thursday that it will equip AT&T Park, home of the San Francisco Giants, with 100 special terminals that will accept the company's new contactless payment cards. The terminals, being installed by Phoenix-based Hypercom, are designed to help speed up lines at food and merchandise counters throughout the park. Cardholders simply hold their cards a short distance from the terminals, eliminating the need to physically hand them to cashiers. The cards then wirelessly transmit payment information to the terminals. Signatures won't be required for purchases of $25 or less. Visa said that transactions with the special cards proved to be about 25% faster than using cash during trials. 
http://biz.yahoo.com/bw/060216/20060216005197.html?.v=1

Palo Alto-Based Netli Raises $18 Million in New Funding Round

Palo Alto, Calif. -- Netli, a provider of services designed to accelerate applications and content over the Internet, said on Wednesday that it has raised $18 million in a new round of funding to fuel expansion. Menlo Park-based Granite Global Ventures led the round, which also included participation by previous investors Alta Partners, Bessemer Venture Partners, BlueRun Ventures, Leapfrog Ventures, Morgenthaler Ventures and Reed Elsevier Ventures. Netli provides network infrastructure as a service, and boasts a customer base that includes Motorola, Samsung, Toyota, Dell and Hewlett-Packard.
http://www.netli.com/pressreleases/PreRel_45.shtml

Hayward-Based Acologix Adds $4.5 Million to Third Round

Hayward, Calif. -- Acologix, a Hayward-based biopharmaceutical company, said that it has added about $4.5 million in the second closing of its third round of funding. The round, which the company initially closed in December, now stands at $30 million. Acologix plans to use the majority of the funding for late-stage clinical development of its drug candidate for the treatment of uremic pruritus in dialysis patients. The company  has raised approximately $77 million to date through three rounds of financing.
http://www.acologix.com/news/2006/021406.html

Redwood Shores-Based Oracle Acquires Sweden's Hotsip

Redwood Shores, Calif. -- Oracle, the Redwood Shores-based based business software giant, said that it has acquired Hotsip, a Sweden-based maker communications infrastructure software, for an undisclosed sum. Hotsip is a developer of telecommunications infrastructure software and applications for IP telephony, presence, messaging and conferencing on new converged networks. To date, the company has raised more than $18 million in venture capital from the likes of 3i Group, Arganor Wireless Ventures, GO Capital and Ledstiernan.
http://biz.yahoo.com/prnews/060215/sfw102.html?.v=33

Mountain View-Based VeriSign Acquires Austria's 3United

Mountain View, Calif. -- VeriSign, the Mountain View-based provider of infrastructure services for Internet and telecommunications networks, said on Thursday that it will acquire 3United, an Austria-based mobile-content firm, for approximately $65.5 million. VeriSign said that the deal will expand its portfolio of content services for communications providers in Eastern Europe. Privately owned 3United has offices in Austria, Croatia, the Czech Republic, Romania, Russia and the Ukraine. VeriSign said that it expects to close the deal by the end of the first quarter.
http://biz.yahoo.com/prnews/060213/nym114.html?.v=39