Silicon Valley Wire

Shares of Redwood City-Based Shutterfly Rise Following $81 Million IPO

Redwood City, Calif. -- Shares of Shutterfly rose nearly 4% on the their first day of trading after the Redwood City-based online photo service raised about $80.9 million in its initial public offering (IPO). The company priced its 5.8 million shares at $15 each, at the top of its expected range. The seven-year-old company, which lets users upload, edit and share digital photos, is trading on the Nasdaq Global Market under the symbol "SFLY." Since launching its service in late 1999, Shutterfly has fulfilled more than 11 million orders, sold approximately 350 million prints and stored more than 900 million customer photos in its image archives. Shares of the company closed at $15.55.
http://ir.shutterfly.com/releasedetail.cfm?ReleaseID=212704

San Francisco-Based VideoEgg Raises $12 Million in Third Round

San Francisco -- VideoEgg, a San Francisco-based provider of online video-sharing technology, said that it has raised $12 million in its third round of venture capital financing. Maveron led the round, with previous investors August Capital and First Round Capital also participating. VideoEgg provides an online video player, similar to the player on YouTube, that allows users of sites like Bebo, Hi5, AOL, Dogster, Tagged and Current TV to upload and embed their personal videos. The company said that it will use the funds for product development, as well as to expand its recently launched advertising network, the Eggnetwork.
http://biz.yahoo.com/prnews/060928/neth013.html?.v=73
http://www.videoegg.com

Palo Alto-Based HP to Acquire Gaming Computer Maker VoodooPC

Palo Alto, Calif. -- Looking to capture a larger slice of the gaming market, Hewlett Packard, the Palo Alto-based technology giant currently embroiled in a boardroom spying scandal, said that it has signed a deal to acquire Calgary-based VoodooPC, a maker of high-performance gaming computer systems. Financial terms of the deal, expected to close in November, were not disclosed. Hp said that it plans to form a separate business unit within its Personal Systems Group focused on the gaming industry, with VoodooPC co-owners Rahul Sood and Ravi Sood becoming the unit's chief technologist and director of strategy, respectively. HP plans to maintain VoodooPC's current distribution model and brand name along with its marketing, sales, support and development operations. HP, which already makes workstations for game development and powers online game services, said that the deal help it increase its strength in the gaming customer segment.
http://www.hp.com/hpinfo/newsroom/press/2006/060928c.html

Palo Alto-Based HP Extends Tender Offer for Mercury Interactive

Palo Alto, Calif. -- Hewlett-Packard, the Palo Alto-based technology giant currently embroiled in a boardroom spying scandal, said on Friday that it has extended its tender offer for shares of Mountain View-based Mercury Interactive until Oct. 13. The tender offer had been set to expire at midnight Thursday. In July, HP agreed to pay $52 a share, or about $4.5 billion, for Mercury, a provider of IT management software and services. As of Thursday night, about 71.8 million of the company's shares had been tendered and not withdrawn. HP is expecting the deal to increase the revenue of its HP Software business by 10%-15% in fiscal 2008.
http://www.hp.com/hpinfo/newsroom/press/2006/060929a.html

Sunnyvale-Based Yahoo Acquires San Francisco-Based Jumpcut

Sunnyvale, Calif. -- Sunnyvale-based Yahoo said that it has acquired Jumpcut, a San Francisco-based developer of online video editing tools. Financial terms of the deal were not disclosed. Launched earlier this year, Jumpcut offers a web-based application that lets users make basic edits and add some professional features to personal videos, often before uploading them to blogs or video-sharing sites like YouTube.
http://blog.jumpcut.com/2006/09/27/jumpcut-joins-the-yahoo-family
http://www.jumpcut.com 

WebMethods Completes Acquisition of Cupertino-Based Infravio

Cupertino, Calif. -- WebMethods, a Virginia-based maker of business integration and optimization software, said that it has completed its $38 million cash acquisition of Infravio, a Cupertino-based provider of service-oriented architecture (SOA) registry and governance software. Infravio's flagship product allows organizations to deliver software as a service and business services both internally and to customers, suppliers and partners. webMethods said that it plans to integrate Infravio's software with its own by later this year. Infravio has about 65 employees, including 50 developers in its development facility in India. 
http://www.webmethods.com/About/News/PressReleases/Details?pressReleaseDetails_param0=6973

House Committee Grills HP Executives on Leak Investigation Tactics

Washington, DC -- Testifying on Thursday before the House Energy and Commerce Committee, former Hewlett-Packard chairman Patricia Dunn expressed "deep regret" about methods used to collect phone records as part of an internal leak probe. Dunn was one of several current or former HP executives, including CEO Mark Hurd, to appear before the committee concerning the actions of investigators, who allegedly masqueraded as HP employees, directors and journalists to obtain their phone records. Dunn denied being involved in conversations regarding the tactics, known as "pretexting," but said that she was assured that the methods being used were legal. Hurd said that he was not personally involved in the investigation, but knew about it through conversations with Dunn. Ten other people called to testify asserted their Fifth Amendment right against self-incrimination, refusing to answer questions. "We have before us witnesses from Hewlett-Packard to discuss a plumbers operation that would make Richard Nixon blush were he still alive," said Rep. John Dingell (D-Mich.). "It's a sad day for this proud company," said Rep. Diana DeGette (D-Col.). "Something has really gone wrong at this institution." HP is based in Palo Alto.
http://biz.yahoo.com/ap/060928/hewlett_packard_directors.html?.v=21
http://biz.yahoo.com/cnnm/060928/092806_hp_hearing.html?.v=3

San Bruno-Based InsideView Raises Round of Angel Funding

San Bruno, Calif. -- InsideView, a provider of sales intelligence services, said on Thursday that it has raised an unspecified amount of angel funding, co-led by JDM Capital and Rembrandt Venture Partners. The round also featured several private investments from Silicon Valley executives, including Rob DeSantis, the co-founder of Ariba, and Pete Goettner, a general partner at Worldview Technology Partners and former CEO DigitalThink. InsideView plans to use the funding to staff key management positions and provide the necessary infrastructure to maintain sustainable growth. InsideView is a provider of on-demand sales intelligence about key managers, strategic initiatives, corporate pain points and competitors.
http://www.insideview.com/news05.html

San Jose-Based KLA-Tencor to Restate Financial Results

San Jose, Calif. -- KLA-Tencor, a San Jose-based maker of yield management and process control tools for semiconductor manufacturers, said on Thursday that it will restate its financial results over a five-year period to correct its past accounting for stock options. The company's board concluded that incorrect measurement dates for certain stock option grants were used for financial accounting purposes, principally from mid-1997 through mid-2002. As a result, the company will be required to record non-cash charges for compensation expenses relating to those grants.
http://biz.yahoo.com/bw/060928/20060928005393.html?.v=2

S.F.-Based Golden Gate Capital Lands Funding Round for SignStorey

San Francisco -- Golden Gate Capital, a San Francisco-based venture capital firm, has led a new round of funding for SignStorey, a Connecticut-based provider of in-store media networks for the grocery industry. The size of the round was not disclosed. SignStorey's network is installed in about 1,300 stores and six retail chains in the U.S. It has partnerships with content providers that include CBS, Epicurious.com and Meredith Publishing, publisher of Better Homes & Gardens.
http://www.signstorey.com/news.htm

PayPal Settles with 28 States; Agrees to Terms in Class Action Suit

San Jose, Calif. -- PayPal, the online payment arm of San Jose-based eBay, on Thursday announced a settlement with 28 states in which it, among other things, has agreed to shorten and streamline its user agreement and communicate more information relating to its protection programs. The company also will pay the states a total of $1.7 million to cover costs of their investigations. PayPal also said that it has agreed to pay another $3.5 million to settle a class action suit against the company pending in U.S. District Court in Brooklyn. The suit, filed in 2005, alleges that the company did not clearly communicate information about some of its consumer protection programs.
http://www.shareholder.com/paypal/releaseDetail.cfm?ReleaseID=212605&Category=US

Merck to Acquire Stake in FoxHollow, Provide $100 Million in Funding

Redwood City, Calif. -- FoxHollow Technologies, a Redwood City-based developer of minimally invasive devices designed to remove plaque from arteries, said on Wednesday that pharmaceutical giant Merck & Co. will acquire a $95 million stake in the company and provide it with $100 million in funding. Shares of FoxHollow rose more than 20% on the news. Under the deal, Merck will own about 11% of FoxHollow, and also pay it $40 million over four years in exchange for FoxHollow's agreement to collaborate exclusively with Merck in specified disease areas. In addition, the drug maker will provide a minimum of another $60 million in funding to FoxHollow over the first three years of the deal. The agreement expands an ongoing working relationship between the two companies. FoxHollow's system is a minimally invasive method of removing obstructive plaque and restoring blood flow to the legs and feet.
http://investor.foxhollowtech.com/ReleaseDetail.cfm?ReleaseID=212329

Los Gatos-Based NeoGuide Raises $25 Million for Colonoscopy Technology

Los Gatos, Calif. -- NeoGuide Systems, a Los Gatos-based developer of technology used to prevent and treat colorectal cancer, said that it has raised $25 million in its third round of funding. The round was led by the London-based Advent Venture Partners, with a long list of previous investors also participating. NeoGuide is developing a computer-assisted colonoscopy system designed to enhance physician control of the colonoscope. The company received FDA clearance of its system earlier this year and expects to begin commercialization in 2007. It plans to use the new capital to ramp up manufacturing, as well as expand its sales and service organizations. Colorectal cancer is the second leading cause of cancer deaths in the U.S.
http://www.neoguidesystems.com/article_04.html

Foster City-Based EFI to Acquire Jetrion for $40 Million

Foster City, Calif. -- EFI, a Foster City-based maker of digital controllers, superwide format inkjet printers and inks, said on Wednesday that it has agreed to acquire Michigan-based Jetrion for about $40 million in cash. Jetrion, a unit of Flint Group, is a developer of inkjet printers, inks and custom printing systems for the label and packaging industries. The company has approximately 50 employees. Guy Gecht, the CEO of EFI, said that the acquisition will help the company to expand its presence in the industrial inkjet market. The deal is expected to close by year's end.
http://www.ir.efi.com/phoenix.zhtml?c=117454&p=irol-newsArticle&ID=909608&highlight=

Mountain View-Based SpinalMotion Raises $20 Million in Third Round

Mountain View, Calif. -- SpinalMotion, a Mountain View-based developer of investigational artificial discs for treating patients with degenerative disc disease, said on Wednesday that it has raised $20 million in its third round of funding reported that it has closed a Series C round of financing, raising $20 million of additional capital. Skyline Ventures led the round, joined by MedVenture Associates and previous investors  Thomas Weisel Healthcare Ventures and Three Arch Partners. SpinalMotion currently has more than 1,500 of its discs implanted in patients, mostly in South Africa.
http://biz.yahoo.com/bw/060927/20060927005375.html?.v=1
http://www.spinalmotion.com

San Jose-Based Ario Lands $8 Million in New Funding Round

San Jose, Calif. -- Ario, a San Jose-based developer of bladed storage technologies, said that it has landed $8 million in a new round of funding, increasing its total backing to $44 million. The round was co-led by Clearstone Venture Partners and Partech International, with participation from Mellon Ventures, Evercore Partners, Anthem Venture Partners and Sunsino Ventures. The company is targeting fast-data-growth businesses in fields such as healthcare, energy and surveillance.
http://biz.yahoo.com/prnews/060926/sftu140.html?.v=36
http://www.ariodata.com/

Sunnyvale-Based AMD Opens Colorado Development Facility

Sunnyvale, Calif. -- AMD, the Sunnyvale-based chipmaker, said on Wednesday that it has opened a microprocessor development facility in Fort Collins, Colorado. Dubbed the "Mile High Design Center," the facility will serve as the latest in the company's network of chip design hubs, and will be used to accelerate the introduction of next-generation microprocessors. Mark Porter of AMD was officially named the facility's site leader. Most recently, Porter served as the leader of the company's cross-site Design Program Management team, and also served as the interim lead of its CAD development organization. AMD also operates microprocessor design centers in Sunnyvale' Austin, Tex; Foxborough, Mass.; Bangalore, India; and Dresden, Germany.
http://www.amd.com/usen/Corporate/VirtualPressRoom/0,,51_104_543~112927,00.html   

Internet Ad Revenue Spikes 37% in First Half of 2006

New York -- Internet advertising revenue rose 37% in the first half of 2006, compared with the same period a year ago, according to a new report from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers. Revenue of $7.9 billion for the second quarter also eclipsed $4 billion for the first time and represented the seventh straight quarter of growth for the online ad market. "While search advertising remains the largest format in terms of revenues, we expect to see new formats like video ads to continue to emerge as advertisers seek to leverage the branding opportunities afforded by the growing installed base of broadband users," said David Silverman, a partner in the entertainment and media practice at PricewaterhouseCoopers.
http://www.iab.net/news/pr_2006_09_25.asp

Google to Add Univ. of Madrid Library Texts to Book-Scanning Project

Mountain View, Calif. -- Mountain View-based Google said that the University of Madrid has agreed to add titles from its Compultense library -- which houses 3 million works -- to Google's controversial project that aims to scan every book in print into a searchable index. While the New York Public Library, Harvard, Oxford, Stanford and the Universities of California and Michigan have also signed on to the project, Google is facing a copyright infringement suit from a number of publishers and authors associations, which claim that the company doesn't have the right to use their works. Google has said that it will only publish public domain works in their entirety in the index, and that only a few pages from works currently under copyright will be included. The agreement with the University of Madrid marks the first non-English-speaking library to be added to the project.
http://www.ucm.es/UCMD.html
http://books.google.com/googleprint/library.html

Report: World Video Game Market to Reach $44 Billion in 2011

San Diego -- The worldwide video game and interactive entertainment industry is expected to grow from about $29 billion in 2005 to $44 billion by 2011, according to a new report from market research firm DFC Intelligence. The firm said that while any of the next-generation consoles -- Sony's PlayStation 3, Microsoft's Xbox 360 or Nintendo's Wii -- could emerge as the market leader, none is likely to see the market dominance held by the PlayStation 2. "At its peak PlayStation 2 software alone accounted for about 30% of worldwide interactive entertainment revenue," said report author George Chronis. "By 2011, we forecast that all console software combined will only account for about a third of worldwide sales." The firm said that competition for the major consoles will come from both the handheld and online game markets.
http://biz.yahoo.com/bw/060926/20060926005230.html?.v=1
http://www.dfcint.com

Report: 60% of U.S. Internet Users Streamed or Downloaded Video in July

Reston, Va. -- About three out of every five U.S. Internet users either streamed or downloaded video during the month of July, according to new figures released by comScore Media Metrix. All told, 7.2 billion videos were streamed or downloaded by U.S. Internet users, which means that the typical video streamer viewed an average of more than two streams a day. Sunnyvale-based Yahoo ranked as the top web property by attracting 37.9 million unique U.S. streamers, followed by MySpace and San Mateo-based YouTube. MySpace, however, led the way in terms of individual videos streamed, capturing 20% of the U.S. market share.
http://www.comscore.com/press/release.asp?press=1015

San Francisco-Based Ecast Raises $20 Million in New Funding

San Francisco -- Ecast, a San Francisco-based maker of Internet-connected digital jukeboxes for bars and restaurants, said that it has raised $20 million in a new round of venture capital financing. Focus Ventures led the investment round, with previous investors Mobius Venture Capital, Crosslink Capital, DCM and El Dorado Ventures also participating. Founded in 1999, Ecast operates a network of more than 8,000 Internet-connected digital jukeboxes. The company will use the funds to expand its sales channel, target new markets, increase research and development and supplement its sales and marketing efforts.
http://biz.yahoo.com/prnews/060925/nym039.html?.v=62
http://www.ecastnetwork.com

San Jose-Based Cisco to Invest $275 Million in Turkey Over Five Years

San Jose, Calif. -- Cisco Systems, the San Jose-based networking equipment giant, said ion Tuesday that it will invest up to $275 million over the next five years in Turkey. As part of the plan, Cisco plans to develop a technology innovation center, establish an institute to teach skills for opening and running small businesses and boost its overall headcount in the country from 80 to 400. Cisco first established operations in Turkey in 1996 and currently maintains offices in Istanbul and Ankara.
http://newsroom.cisco.com/dlls/2006/corp_092606.html

San Mateo-Based GuardID Systems Raises $5 Million in First Round

San Mateo, Calif. -- GuardID Systems, a developer of software designed to protect consumers against online identity theft and fraud, said on Tuesday that it has secured $5 million in its first round of funding from Menlo Park-based Trinity Ventures. GuardID's core product, known as ID Vault, allows consumers to store all of their usernames and passwords on a portable USB smart card, and access them with a single PIN. The company also operates a service designed to authenticate thousands of financial institution web sites, protecting users from identity theft.
http://guardidsystems.com/main.php?Page=1002&action=newsitem&id=29

S.F.-Based Sharper Image Names Turnaround Specialist as New CEO

San Francisco -- Sharper Image, the San Francisco-based retailer of specialty technology products, said on Tuesday that its board has appointed turnaround specialist Jerry Levin, as its chairman and CEO. Levin, the chairman and CEO of JW Levin Partners and a board member since July, replaces company founder Richard Thalheimer, who has stepped down. The board has engaged JW Levin for one year to help address Sharper Image's operating issues. Levin previously has served as the chairman and CEO of American Household (formerly Sunbeam) and CEO of Revlon and The Coleman Company. The board will launch an executive search to find a new full-time CEO.
http://biz.yahoo.com/bw/060926/20060926005361.html?.v=1
http://www.sharperimage.com/

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

Menlo Park, Calif. -- Leader Ventures, a Menlo Park-based private investment firm, said on Tuesday that it has launched a new $300 million fund to provide debt and equity funding to venture-backed information technology and life sciences companies. Leader, which since 2001 has worked closely with venture lending firm Dominion Capital Management, said that it will continue to invest in companies at all stages of development, primarily in the U.S. Portfolio companies include AdvancedMD, Enpocket and Vocera. The firm also has offices in Atlanta and Boston.
http://www.leaderventures.com
http://biz.yahoo.com/prnews/060926/sftu098.html?.v=69

Mountain View-Based Google Reverses Stance, Publishes Court Ruling

Mountain View, Calif. -- Mountain View-based Google has changed its stance on a Belgian court ruling that it contested and complied with an order to publish the ruling on its Belgian news site, Reuters reported. The court ordered Google to remove snippets of French- and German-language news articles from its Google News site in Belgium. The company promptly complied, but said as recently as Friday that it would not post the ruling on its web site -- an act of defiance that carried with it a $640,900 daily fine. Google is still seeking to have the Belgian court's ruling cancelled. "We are pleased that a judge has given Google the opportunity to appeal the substance of this case. This will be heard in November," a Google spokeswoman told Reuters. Google was also sued in U.S. court by French news organization Agence France Presse over its use of snippets of AFP news articles on its Google News site, and complied with calls to remove the articles.
http://news.google.com
http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-09-23T141441Z_01_L23816924_RTRIDST_0_MEDIA-GOOGLE-BELGIUM.XML&rpc=66&type=qcna

Redwood City-Based Trion to Publish Games, Entertainment for Broadband

Redwood City, Calif. -- A number of game industry veterans from Electronic Arts and other firms have announced the launch of Trion World Network, a Redwood City-based company that will develop and publish games and original entertainment for broadband platforms. Founders of Trion include Lars Buttler, former vice president of global online at Electronic Arts, and Jon Van Caneghem, the founder and former president of New World Computing and creator of the "Might and Magic" and "Heroes" game franchises. The company said that it has received an undisclosed sum of initial funding from Doll Capital Management and Trinity Ventures.
http://www.trionworldnetwork.com/
http://biz.yahoo.com/bw/060925/20060925005515.html?.v=1

Palo Alto-Based PortAuthority Technologies Raises $18 Million

Palo Alto, Calif. -- PortAuthority Technologies, a Palo Alto-based developer of products designed to control the unauthorized distribution of sensitive information, said on Monday that it has raised $18 million in a new round of funding, led by New Enterprise Associates (NEA). Previous investors Sequoia Capital, Greylock Partners and Lexington Ventures also participated. The company said that its technology stops information leaks by continually monitoring internal and outbound communications and delivering policy enforcement. PortAuthority said that it will use the funds to expand its sales and marketing activities.
http://www.portauthoritytech.com/news/releases/pr_092506_funding.html

Sausalito-Based Triton Distribution Systems Lands $3 Million Private Placement

Sausalito, Calif. -- Triton Distribution Systems, a Sausalito-based provider of web-based travel distribution services, said on Monday that it has raised $3 million through a private placement of stock. The company said that it sold 3.45 million of its shares to Kuwait-based Al-Deera Holding, as well as another 288,000 to Kuwait-based Univest Consultancy Group. Univest also will become Triton's exclusive distributor in the Middle East and North Africa, South Africa and Sri Lanka regions. Triton electronically distributes travel inventory from airlines, car rental companies, hotels, tour and cruise operators and other travel sellers to travel agencies and their clients.
http://www.tritonds.com/press/press-060925-aldeera.html

Google Loses Appeal in Belgium; Must Post Ruling to Web Site

Mountain View, Calif. -- Mountain View-based Google must post a court ruling on its web site ordering the company to remove certain Belgian newspaper story snippets from its Google News service, Reuters reported. Google, which had been appealing the Belgian court's decision, also remains responsible for fines of nearly $641,000 a day for every day after Sept. 5 that it hasn't posted the ruling on its site. Google previously lost a case in U.S. court brought by Agence France Presse, and removed articles from the French news organization from Google News.
http://today.reuters.com/news/articlenews.aspx?type=internetNews&storyID=2006-09-22T150649Z_01_L22779113_RTRUKOC_0_US-MEDIA-GOOGLE-BELGIUM.xml

Santa Clara-Based OpSource Names New Presdent, COO

Santa Clara, Calif. -- OpSource, a Santa Clara-based provider of infrastructure management services designed to help clients deploy applications more quickly, on Monday named Ray Solnik as its new president and COO. Previously, Solnik served as the chief development officer of New Edge Networks, prior to the sale of the company to EarthLink. He also has served as the president of AT&T Worldnet, AT&T's consumer Internet company.
http://www.opsource.net/news/press/060925.shtml

SEC Requests Information on Electronic Arts Stock Option Grants

Redwood City, Calif. -- Electronic Arts, the Redwood City-based developer and publisher of video games, has joined the ranks of fellow publishers THQ, Take-Two and Activision, who have all received requests from the SEC for information regarding their granting of stock options to employees. The SEC is investigating more than 100 firms that may have "backdated" stock options, or changed the date on which they were granted in order to increase their value for employees. EA said in July that its own internal review of its stock options granting practices revealed no irregularities. The company separately announced that a lawsuit filed by a pension fund against EA, alleging improprieties in its stock options grants, has been voluntarily dismissed by the plaintiff.
http://biz.yahoo.com/e/060920/erts8-k.html

Redwood City-Based Nextance Names Bill Wagstaff to New COO Role

Redwood City, Calif. -- Nextance, a Redwood City-based maker of contract management software for large companies, on Monday named Bill Wagstaff to the newly created role of COO and Sig Lackner as its vice president of professional services. Both recently had similar responsibilities at IBM. Wagstaff led worldwide strategy and market management for IBM's Business Intelligence and Analytics business, and previously was the senior vice president and CTO of Alphablox. Lackner most recently led the professional services organization within the Information Management division of IBM's Software Group, and earlier was the vice president of professional services at Alphablox.
http://www.nextance.com/news/press_releases/pr_092506.shtml

Milpitas-Based Phoenix Technologies to Cut 14% of Workforce

Milpitas, Calif. -- Phoenix Technologies, a Milpitas-based maker of core system software, said on Friday that it will cut its workforce by 14%, from 471 employees to 403, in an effort to further reduce expenses. The company said that most of the cuts will relate to its enterprise applications business, and will include employees in all regions. Combined with other cost reductions, the company said that it expects to cut its operating expenses by 24% in the third quarter.  The move comes as Phoenix slashed its revenue guidance for the fourth quarter from $12.5-$14.5 million to $8-$9 million. Woody Hobbs, the company's new president and CEO, attributed the shortfall to earlier decisions by management. "We have made the decision to eliminate the use of fully paid up licenses and the associated price discounting and this has impacted our fourth quarter revenues," said Hobbs.
http://investor.phoenix.com/en/about+phoenix/investors/news+releases/ReleaseDetail.cfm?ReleaseID=211964&Year=2006

Hewlett-Packard CEO to Testify Before House Subcommittee

Palo Alto, Calif. -- With published reports linking him more closely with his company's ongoing spying scandal, Mark Hurd, the CEO of Palo Alto-based Hewlett-Packard, has agreed to testify before a House subcommittee, MarketWatch reported. Hurd reportedly will appear at Thursday's hearing before the House Energy and Commerce Committee's Subcommittee on Oversight and Investigations. "He wants to apologize publicly and talk about how we are ensuring that these events will not happen again," HP spokesman Ryan Donovan told MarketWatch. Both The New York Times and The Wall Street Journal reported that Hurd may have been informed of the investigative tactics earlier this year. HP Chairman Patricia Dunn, general counsel Ann Baskins and outside counsel Larry Sonsini already had agreed to testify. California's attorney general is looking into whether investigators working for HP broke state laws by lying to obtain the phone records of nine reporters as they tried to locate the source of internal news leaks. Dunn already has announced her resignation as chairman, effective January.
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BE603FCE8%2D49ED%2D4607%2D9538%2D8C224F1543D9%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

Palo Alto's VPSA Sells Stakes in 14 Companies to TempoVest Fund II

Palo Alto, Calif. -- VPSA, a private investment firm with dual headquarters in Palo Alto and Paris, said that it has sold its V2 FCPR venture capital portfolio to London-based TempoVest Fund II for an undisclosed sum. The sale included holdings in 14 companies, including OneAccess Networks, TES Electronic Solutions, Webify, Neophotonics and Infusio. Philippe Charquet, the former president of VPSA, has joined Tempo as a managing partner and will play a leading role in managing the assets of the fund. VPSA, formerly known as Viventures Partners, was previously the venture capital and private equity division of Vivendi Universal.
http://www.vpsa.com/
http://biz.yahoo.com/bw/060921/20060921006030.html?.v=1

Commerce Department Says Over 1,100 Laptops Lost Since 2001

Washington, DC -- The Department of Commerce revealed late Thursday that it has lost track of more than 1,100 laptops since 2001, including 249 containing personal information. The department, which has had more than 30,000 laptops in its inventory over the period, said that the missing units, mostly belonging to the Census Bureau, were either lost or stolen. A separate review found that the department has had sensitive personal information either lost or compromised nearly 300 times since 2003. "The amount of missing computers is high, but fortunately, the vulnerability for data misuse is low," said Commerce Secretary Carlos Gutierrez. "While we know of no instances of personal information being improperly used, we regret each instance of lost material and believe the volume of lost equipment is unacceptable."
http://www.commerce.gov/opa/press/Secretary_Gutierrez/2006_Releases/September/21_Commerce_Review.htm

Report: Web 2.0 Companies Gaining Momentum in Venture Capital Market

San Francisco -- The newest wave of Internet start-ups, dubbed Web 2.0, are gaining momentum at a substantial pace in the U.S. venture capital market, according to a new research study from San Francisco-based Dow Jones VentureOne. The firm said that 49 Web 2.0 companies have been funded in the first half of this year, raising a total of $262.3 million in equity capital. That compares with 51 deals and $199.1 million invested into similar companies in all of 2005. While the investment levels are growing, so far the data shows that Web 2.0 is a relatively small portion of the U.S. venture capital market, which saw $13 billion going to more than 1,200 companies in the first half of this year.
http://www.ventureone.com/
http://biz.yahoo.com/pz/060921/105548.html

Report: Web 2.0 Companies Gaining Momentum in Venture Capital Market

San Francisco -- The newest wave of Internet start-ups, dubbed Web 2.0, are gaining momentum at a substantial pace in the U.S. venture capital market, according to a new research study from San Francisco-based Dow Jones VentureOne. The firm said that 49 Web 2.0 companies have been funded in the first half of this year, raising a total of $262.3 million in equity capital. That compares with 51 deals and $199.1 million invested into similar companies in all of 2005. While the investment levels are growing, so far the data shows that Web 2.0 is a relatively small portion of the U.S. venture capital market, which saw $13 billion going to more than 1,200 companies in the first half of this year.
http://www.ventureone.com/
http://biz.yahoo.com/pz/060921/105548.html

Shares of S.F.-Based Riverbed Soar Following $85.8 Million IPO

San Francisco -- Shares of Riverbed Technology rose 57% on Thursday after the San Francisco-based maker of appliances designed to improve the performance of wide-area networks raised $85.8 million in its initial public offering (IPO). The company sold 8.7 million shares for $9.75 each, above its expected price range of $7-$8.50. Riverbed said that it will use the proceeds to finance our growth, develop new products and fund capital expenditures, in addition to possibly repaying its credit facility with Lighthouse Capital Partners V or making acquisitions. The company said that its appliances typically increase transmission speeds on wide-area networks by 5-50 times. Its shares, trading on the Nasdaq under the symbol "RVBD," closed at $15.30 on Thursday.
http://phx.corporate-ir.net/phoenix.zhtml?c=198235&p=irol-newsArticle&ID=907665&highlight=
http://ipoportal.edgar-online.com/ipo/displayFundamentals.asp?cikid=706119&fnid=49544&IPO=1&coname=RIVERBED+TECHNOLOGY%2C+INC%2E

WSJ: Facebook in Talks With Yahoo on Potential $1 Billion Sale

Sunnyvale, Calif. -- Sunnyvale-based Yahoo is in talked to acquire Palo Alto-based Facebook, the second-largest online social network with 9.5 million members, for a sum approaching $1 billion, The Wall Street Journal reported on Thursday. Facebook has previously held negotiations with both Microsoft and Viacom -- which also bid on MySpace, but lost out to News Corp.'s $580 million winning bid. BusinessWeek reported in March that Facebook rejected a $750 million buyout offer, hoping to see a $2 billion asking price.
http://online.wsj.com/article/SB115880835590769754.html?mod=yahoo_hs&ru=yahoo (subscription required)
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060921:MTFH01186_2006-09-21_08-17-05_N21275291&type=comktNews&rpc=44

Sunnyvale-Based Vitria Technology to be Acquired by CEO, Board Member

Sunnyvale, Calif. -- Vitria Technology, a Sunnyvale-based maker of business process integration products, said on Thursday that it has agreed to be acquired by a new corporation owned by CEO Dale Skeen and board member JoMei Chang for about $66 million. Under the deal, which will take the company private, the new entity will be $2.75 a share for each of Vitria's shares not already owned by Chang and Skeen, who together own a 29% stake in the company. The deal culminates an eight-month process in which a special board committee held discussions with more than 55 potential acquirers. Vitria has 11 offices and a client bases that includes AT&T, BellSouth, British Telecom, Nissan and the Departments of Defense and Veterans Affairs.
http://www.vitria.com
http://biz.yahoo.com/prnews/060921/sfth045.html?.v=71

Google Appeals Belgian Court Ruling, Fines Over Use of News Clips

Mountain View, Calif. -- Google, the Mountain View-based Internet search giant, has appealed a Belgian court ruling barring it from publishing snippets of news stories from the country's French- and German-language newspapers on its Google News web site, Reuters reported. The company has also asked for a suspension of part of the ruling that fines the company the equivalent of $636,000 a day, beginning Sept. 5, for not posting the ruling on its site, an action Google has still not taken. "We argued that posting the link on the home page in Belgium is unnecessary given how much publicity this court case and the judge's decision have received," Google spokeswoman Rachel Whetstone told Reuters. The company has, however, removed all of the news story snippets in question from the Belgian version of Google News, and said that it will do the same for any publisher upon request. Belgian newspaper copyright agency Copiepresse initially sued Google for copyright infringement, arguing that the company should compensate the publishers for using their headlines and fragments of lead sentences on the site.
http://today.reuters.co.uk/news/articlenews.aspx?type=internetNews&storyID=2006-09-20T154838Z_01_L20280358_RTRIDST_0_OUKIN-UK-MEDIA-GOOGLE-BELGIUM.XML

Sunnyvale-Based Yahoo Launches Co-Branded Online TV Network

Sunnyvale, Calif. -- Sunnyvale-based Yahoo said that it has partnered with Current TV, the viewer-created content network founded by former Vice President Al Gore, to launch a new co-branded online TV network. The company said that its Yahoo Current Network will offer Current TV's mix of user-submitted and professional, studio-produced content on specialized channels for action sports, cars, travel and current events. A total of eight channels are scheduled to launch by the end of 2007. Each week, the best user-submitted video from each channel will air on Current's television broadcast, and its producer will be paid $500 by Current TV.
http://biz.yahoo.com/bw/060920/20060920005333.html?.v=1
http://video.yahoo.com/currenttv

Report: Angel Investment in U.S. Increased by 15% in First Half of 2006

Durham, N.H. -- Investments by U.S. angel investors increased by 15% to $12.7 billion in the first half of 2006, according to the latest research from the Center for Venture Research at the University of New Hampshire. At the same time, the number of entrepreneurial businesses receiving angel funding decreased by 6%. Together the numbers reflect a 22% increase in the average deal size. Healthcare services, medical devices and equipment, in addition to software remained the sectors of choice for investors.
http://wsbe.unh.edu/cvr/

Campbell-Based SoonR Raises $6 Million in First Round of Funding

Campbell, Calif. -- SoonR, the Campbell-based developer of a service that allows mobile phone users to access applications and data from their Internet-connected computers, said on Wednesday that it has raised $6 million in its first round of funding, led by Clearstone Venture Partners. Intel Capital and private investors also participated. The company said that it will use the funding to grow its service, which works across carriers and on any handset operating system, including Palm, Microsoft, Blackberry and Symbian. The company's basic service is free.
http://www.soonr.com/web/front/press_release.jsp?pressrelease=10

Honda Invests $5 Million in Sunnyvale-Based Canesta

Sunnyvale, Calif. -- Canesta, a Sunnyvale-based developer of technology that allows machines, vehicles and electronic devices to perceive and react to objects or individuals in real time, said on Wednesday that Honda Motor Co. has invested more than $5 million in the company. The investments, which have occurred over the past three years, are helping the company develop new automotive safety applications based upon its technology. Toshinori Arita, the head of Honda Strategic Venturing, said that one potential application would be to use Canesta's 3-D sensors concealed within vehicles to develop systems for occupant sensing, parking assistance, pedestrian detection and collision avoidance.
http://www.canesta.com
http://biz.yahoo.com/bw/060920/20060920005094.html?.v=1

San Francisco-Based IODA to Acquire U.K.-Based Uploader

San Francisco -- IODA, a San Francisco-based provider of digital distribution, marketing and technology services to the independent music industry, said on Wednesday that it has agreed to acquire Uploader, a London-based digital music distributor. Financial terms of the deal were not disclosed. The acquisition will add 150 labels representing more than 50,000 tracks to IODA's catalog, and Uploader's staff will run the company's operations in Europe, the Middle East and Africa. Uploader was founded in early 2005 by independent music pioneer Martin Goldschmidt, the owner of Cooking Vinyl, one of Europe's oldest independent record companies.
http://www.iodalliance.com/press.php

Santa Clara-Based Packet Island Raises First Round of Funding

Santa Clara, Calif. -- Packet Island, a Santa Clara-based developer of Voice-over-Internet Protocol (VoIP) management software, said on Wednesday that it has raised an undisclosed amount in its first round of funding from a group of venture capital firms led by Startup Capital Ventures. Other participants included Garage Technology Ventures and Rincon Ventures. Founded in 2004, the company ahs developed a platform that delivers remote network management services to small businesses.
http://www.packetisland.com/