Silicon Valley Wire

CEA, Consumer Advocacy Groups to Launch "Digital Freedom Campaign"

Washington, DC -- The Consumer Electronics Association (CEA), a trade group for consumer electronics makers and other technology firms, said that it will team consumer advocacy groups Public Knowledge and the Media Access Project to launch a campaign that aims to unite innovators, artists and consumers to "reassert technology rights." The groups said that their Digital Freedom Campaign will "empower innovators, students, artists and consumers to create and make lawful use of new technologies free of unreasonable government restrictions and without fear of costly and abusive lawsuits." Representatives from all three organizations are scheduled to be on hand at a press conference in Washington, DC next Wednesday to announce further details about the campaign.
http://biz.yahoo.com/prnews/061018/dcw039.html?.v=73   
http://www.ce.org

San Jose-Based Atrenta Raises $16 Million in Fourth Round

San Jose, Calif. -- Atrenta, a San Jose-based maker of design analysis tools for chip designers, said on Thursday that it has raised $16 million in its fourth round of funding, led by Investor Growth Capital. Samsung Ventures and Hercules Technology Growth Capital also joined previous investors Venrock Associates, TL Ventures, Smart Technology Ventures, Investcorp Technology Ventures and Finaventures in the round. The company said that it will use the new capital to expand its product offerings in chip design software, as well as its sales and support activities. Atrenta has over 100 customers, including the world's 10 largest semiconductor companies.
http://www.atrenta.com/Links/Company_Atrenta_News_Details.aspx?strNAID=NA00000051

Pleasanton-Based Sub-One Technology Lands $7 Million in Second Round

Pleasanton, Calif. -- Sub-One Technology, a Pleasanton-based developer of technology for the exploration, storage and transportation of liquids such as oil, ethanol and natural gas, said on Thursday that it has raised $7 million in its second round of funding. Advanced Technology Ventures (ATV) led the round, with previous investors Chevron Technology Ventures and ITI Energy also participating. Sub-One said that it will use the financing to further develop its interior-surface coating technology, known as InnerArmor, which is designed to protect the insides of pipes, valves, chambers and cylinders from corrosion.
http://biz.yahoo.com/prnews/061019/sfth036.html?.v=82
http://www.sub-one.com/

San Jose-Based Adobe Systems Acquires Serious Magic

San Jose, Calif. -- Looking to augment its video software offerings, San Jose-based Adobe Systems, the large developer of web publishing and business software, said on Thursday that it has acquired Serious Magic Inc., a Folsom, Calif.-based maker of video software and communications tools. Financial terms of the deal were not disclosed. Adobe plans to continue to sell Serious Magic's products, as well as integrate the acquired company's technology into own products. Mark Randall, CEO of Serious Magic, will become Adobe's chief strategist of dynamic media.
http://www.adobe.com/aboutadobe/pressroom/pressreleases/200610/101906SeriousMagic.html

Angel Investor Eric Di Benedetto Launches S.F.-Based Active Starts

San Francisco -- Venture capitalist and angel investor Eric Di Benedetto said that he has launched Active Starts, a San Francisco-based angel investment firm focused on California-based software startups. The firm initially will have a portfolio of 11 investments in the social web, mobility services and on-demand applications. Recent investments include ActiveWeave, Plastyc, RapLeaf, Before The Call, Chegg, ClairMail, GoFish, Kalat, Real Travel, Visible Path and Xactly. Di Benedetto has more than 15 years of Silicon Valley venture capital experience as an investor in software, mobile applications and digital media.
http://www.prweb.com/releases/2006/10/prweb451951.htm
http://activestarts.com/default.aspx

Apple: Some Video iPods Shipped With Windows Virus

Cupertino, Calif. -- Cupertino-based Apple has confirmed that a malicious Windows-based code has shipped on a number of its Video iPods. The company said that the RavMonE.exe worm is not considered a serious threat, but can lower the security settings on Windows computers. The problem affects less than 1% of video iPods shipped after Sept. 12, and Apple has so far seen less than 25 reports concerning the problem. The company added that iPod nano and shuffle models, and the Mac OS X are not affected by the malicious code. "As you might imagine, we are upset at Windows for not being more hardy against such viruses, and even more upset with ourselves, for not catching it," Apple said on a support page of its web site. Anti-virus firm McAfee has released a software tool that removes the worm.
http://www.apple.com/support/windowsvirus    http://biz.yahoo.com/prnews/061017/sftu132.html?.v=50

Video Game Industry Details New, Leaner Annual E3 Trade Show

Washington, DC - The Entertainment Software Association (ESA), a video game industry trade group, has announced plans for the pared-down version of its annual video game trade show that will replace its mammoth E3 event. The ESA said that game publishers and retailers wanted to change the format of E3, which had grown so large and costly to produce that many publishers felt they were unable to actually conduct business. The new, invitation-only E3 Media and Business Summit will be held July 11-13, 2007, in various hotels in Santa Monica, Calif., with a game demo showcase to be held at a nearby sound stage called Barker Hangar. "The new E3 is first and foremost about getting business done," said Doug Lowenstein, president of the ESA. The news comes as the Consumer Electronics Association (CEA), a trade group that annually produces the International Consumer Electronics Show, said that it will not launch a
2007 video game trade show. The group had explored the possibility following the demise of E3.
http://www.theesa.com/archives/2006/10/entertainment_s_6.php

Fremont-Based W5 Networks Raises $12 Million in Second Round

Fremont, Calif. -- W5 Networks, a Fremont-based provider of wireless technology for the retail industry, said on Wednesday that it has raised $12 million in its second round of funding, led by Frazier Technology Ventures. Previous investors including Thomas Weisel Venture Partners and U.S. Venture Partners also participated in the round, which increased the company's total backing to $22 million. W5 recently launched a system that allows supermarkets to wirelessly update shelf price labels. The company said that the new capital will allow it to further develop and enhance the system.
http://www.w5networks.com/press/10.17.06.php

Strong iPod, Mac Sales Boost Cupertino-Based Apple

Cupertino, Calif. -- Buoyed by strong sales of its iPod digital music players and Macintosh computer, Cupertino-based Apple on Wednesday posted better-than-expected quarterly results, including a 27% jump in net income. The company said that it sold 8.7 million iPods during the quarter, up 35% from a year ago, and had its best quarter ever in terms of Mac sales, with 1.6 million. As a result, its net income rose to $546 million from $430 million during the same quarter a year ago, and revenue climbed 32% to $4.84 billion. Both figures eclipsed estimates that the company issued in July.
http://www.apple.com/pr/library/2006/oct/18results.html

Santa Clara-Based Tvia Names Keith Yee New CFO After Resignation

Santa Clara, Calif. -- Tvia, a Santa Clara-based maker of of digital display processors for flat-panel TVs and monitors, said on Wednesday that CFO Diane Bjorkstrom has resigned from the company to "pursue other opportunities." The company has named Keith Yee as her replacement. Yee previously served as the director of finance at Atheros Communications, where he was responsible for SEC reporting, regulatory compliance and financial planning and analysis. He also previously held controller positions with Tripath Technology, Synnex and Adaptec.
http://www.tvia.com/index.cfm?page=body&crid=17&contentid=233

KeyEye Communications Lands $16 Million in New Funding Round

Sacramento -- KeyEye Communications, a Sacramento-based maker of semiconductor transceivers with a development center in San Jose, said on Wednesday that it has raised $16 million in a new round of funding and hired Chuck Fox as its president and CEO. The round was co-led by American River Ventures, Menlo Ventures, Blueprint Ventures and Western Technology Investment.  The company said that it will use the proceeds to  complete its product development and support customer engagements. Most recently, Fox served as the president and CEO of Chameleon Systems, and also was the vice president of marketing at Cradle Technologies.
http://www.keyeye.net/

San Jose-Based Genesis Microchip Settles Patent Suit with MStar

San Jose, Calif. -- Genesis Microchip, a San Jose-based developer of image processing technologies for flat-panel TVs and monitors, said on Wednesday that it has settled its patent infringement suit against MStar, a Taiwan-based developer of chip design and image processing technologies for LCD flat panel television and computer monitors. Under the deal, MStar has licensed patents from the company in exchange for undisclosed running royalties. This license allows MStar to ship the infringing products into the U.S. The U.S. International Trade Commission (ITC) had previously ruled that certain controllers and related products made by MStar infringed on Genesis's patents, excluding them from being sold in the U.S.
http://phx.corporate-ir.net/phoenix.zhtml?c=78051&p=irol-newsArticle&ID=918231&highlight=

San Jose-Based Validity Sensors Raises $20 Million in New Funding

San Jose, Calif. -- Validity Sensors, a San Jose-based biometric company specializing in durable fingerprint sensors, said on Tuesday that it has raised $20 million in a new round of funding, led by TeleSoft Partners. The round also included a substantial investment from Qualcomm Ventures, as well as additional participation from VentureTech Alliance and several private investors. Validity's durable fingerprint sensors allow users to swipe their finger over a durable plastic surface, rather than type in usernames and passwords.
http://www.validityinc.com/news15.html

Sunnyvale-Based Yahoo to Acquire AdInterax; Invests in Right Media

Sunnyvale, Calif. -- In a pair of major deals in the Internet advertising space, Sunnyvale-based Yahoo on Tuesday announced an agreement to acquire AdInterax, a New York-based provider of rich media advertising technology to online publishers, as well as an investment in New York-based Right Media, operator of an open media exchange. The company will pay an undisclosed amount for AdInterax, and plans to offer its rich media creative assembly and campaign management tools directly to marketers at no charge as part of its graphical advertising offerings. The AdInterax tracking and reporting module tracks traditional metrics including impressions, clicks, and reach and frequency, in addition to other key branding and direct marketing data. Yahoo also has purchased a 20% stake in Right Media, operator of an online exchange that allows ads to be auctioned to the highest bidder. More than 2 billion impressions are traded daily on the exchange, which Yahoo, itself, plans to join. Right Media raised a total of $45 million in its second round.
http://yhoo.client.shareholder.com/press/ReleaseDetail.cfm?ReleaseID=214937
http://yhoo.client.shareholder.com/press/ReleaseDetail.cfm?ReleaseID=214938

Pleasanton-Based Five9 Acquires Eco NN; Names New CTO

Pleasanton, Calif. -- Five9, a Pleasanton-based provider of call center technology for telemarketing, telesales and customer service. said on Tuesday that it has acquired Eco NN, a Russian developer of Internet voice and call center applications. Financial terms of the deal were not disclosed. Five9 said that it has retained the company's 60 developers, who will continue to work out of an office about 250 miles east of Moscow. With the move, the company also has named Jim Dvorkin as its CTO. Dvorkin most recently headed up salesforce.com’s call center initiative, and previously served as the CTO for Echopass, White Pajama and NextAge Technologies.
http://www.five9.com/news/press_release.cfm?articleid=138

Apple CEO Steve Jobs Critical of Microsoft's Zune Music Player

Cupertino, Calif. -- Cupertino-based Apple does not fear competition from Microsoft's new Zune music player, CEO Steve Jobs said in an interview in this week's edition of Newsweek. In the article, Jobs referred to demonstrations he has seen of Zune's interface, calling it complicated and not user friendly, particularly when it comes to sharing music wirelessly between Zune users. "I've seen the demonstrations on the Internet about how you can find another person using a Zune and give them a song they can play three times. It takes forever," Jobs told Newsweek. "By the time you've gone through all that, the girl's got up and left! You're much better off to take one of your earbuds out and put it in her ear. Then you're connected with about two feet of headphone cable."
http://www.msnbc.msn.com/id/15262121/site/newsweek
http://www.microsoft.com/presspass/presskits/zune/default.mspx

Kenneth Levy Retires as Chairman of KLA-Tencor Following Options Probe

San Jose, Calif. -- KLA-Tencor, a San Jose-based developer of yield management and process control technologies for semiconductor manufacturers, on Tuesday announced the retirement of company founder and chairman Kenneth Levy following the completion of an internal investigation into the company's past stock option practices. As a result, the company said that it will re-price all outstanding retroactively priced options held by Levy and certain other former and current executives. Edward Barnholt, the former president and CEO of Agilent Technologies, will succeed Levy as chairman, serving in a non-executive capacity. The news comes a day after the company severed ties with Kenneth Schroeder, its former president and COO, and Stuart Nichols, its general counsel.
http://www.kla-tencor.com/j/servlet/NewsItem?newsItemID=223

Hercules Provides $20 Million in Debt Financing to Portola Pharmaceuticals

Palo Alto, Calif. -- Hercules Technology Growth Capital, a Palo Alto-based provider of debt and equity growth capital to technology and life science companies, said on Tuesday that it has provided $20 million in debt financing to South San Francisco-based biotechnology firm Portola Pharmaceuticals. "This financing will bolster Portola’s cash position as we move toward a number of exciting near-term milestones," stated Charles Homcy, the CEO of Portola. The company is developing cardiovascular and vascular disease therapies, and currently has two drug candidates in clinical development.
http://www.portola.com/
http://biz.yahoo.com/prnews/061017/sftu045.html?.v=72

Yahoo and CBS TV Partnering to Deliver Local News Video

Sunnyvale, Calif. -- CBS and Sunnyvale-based Yahoo said that they have formed an exclusive partnership to make local news video from 16 CBS-owned stations available on Yahoo. Through the deal, visitor to Yahoo will have access to 10-20 local news video stories a day from each of the 16 markets. The video will include breaking news stories, as well as other local features and reports. CBS and Yahoo will share revenue from advertising sold on the site, the companies said.
http://www.cbscorporation.com/news/prdetails.php?id=1123

Santa Clara-Based McAfee Acquires Onigma for $20 Million

Santa Clara, Calif. -- McAfee, the large maker of Internet security products, said on Monday that it has acquired Israeli data protection software maker Onigma for $20 million in cash. Onigma's technology is designed to monitor, report and prevent confidential data from leaving an organization. Christopher Bolin, McAfee's CTO, said that the deal will allow his company to offer clients protection against the loss of confidential data and intellectual property. The deal follows last week's retirement of George Samenuk as McAfee's chairman and CEO, and the termination of Kevin Weiss as its president following an internal probe into e company's stock option practices.
http://www.mcafee.com/us/about/press/corporate/2006/20061016_052000_u.html

San Jose-Based Fat Spaniel Raises $7 Million in First Round of Funding

San Jose, Calif. -- Fat Spaniel Technologies (FST),  a provider of data communications and monitoring infrastructure for the distributed generation industry, said on Monday that it has raised $7 million in its first round of funding, led by DFJ Element. Menlo Park-based DFJ Element initially invested $3.5 million in the company in April, and recently increased its stake in the company along with Chrysalix Energy.Fat Spaniel's information services are designed to help clients monitor and verify their renewable energy system performance from remote locations. The company specializes in the monitoring and management of solar electric, wind, fuel cell and other renewable energy systems.
http://www.fatspaniel.com/
http://biz.yahoo.com/prnews/061016/sfm071.html?.v=67

Los Altos, Calif. -- FreeHand Systems, a Los Altos-based provider of digital sheet music products and services, said on Monday that it has completed its acquisition of Illinois-based Electronic Courseware Systems (ECS), a privately held computer software developer and publisher of music and music education products. Financial terms of the deal were not disclosed. ECS was founded in 1981 to make music software available to teachers and students on low-cost home computers. The company now has more than 40,000 customers, including schools, private teachers, students and home users. The company has previously developed software for companies such as Roland, Yamaha, IBM, Baldwin Piano and Organ, as well as major textbook and music publishers. The technology will be a nice fit for FreeHand, which manufacturer a digital music tablet that lets users display and publish digitally delivered sheet music. The company also operates a web site that offers more than 85,000 titles for digital download, which can then be transferred to the tablet.
http://www.freehandmusic.com/
http://biz.yahoo.com/bw/061016/20061016005363.html?.v=1

Palo Alto-Based HP Again Extends Tender Offer for Mercury Interactive

Palo Alto, Calif. -- Palo Alto-based Hewlett-Packard said on Monday that it has again extended its tender offer for shares of Mountain View-based Mercury Interactive for two more weeks, with the offer now set to expire at midnight, October 27. As of October 13, approximately 81.5 million shares had been tendered and not withdrawn. In July, HP agreed to pay $52 a share, or about $4.5 billion, for Mercury, a provider of IT management software and services. 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/2006/061016a.html 

Google Faces YouTube Copyright Fight from Time Warner

Mountain View, Calif. --  Dick Parsons, the chairman and CEO of Time Warner, said that his company plans to pursue copyright infringement litigation against San Mateo-based YouTube, the video sharing site acquired by Mountain View-based Google last week for $1.65 Billion. "You can assume we're in negotiations with YouTube," Parsons said in an interview with the U.K. Guardian, "and that those negotiations will be kicked up to the Google level in the hope that we can get to some acceptable position." He said that Google's acquisition of YouTube was not the deciding factor in his decision to take heightened action, adding that he would be interested in Time Warner's content being displayed on YouTube for a price. "We'd like to have our content displayed on these platforms, but on a basis that it respects our rights as the owner of that content," he said. Warner Music, Sony BMG, and CBS have all made recent deals with YouTube to allow their content to be used in return for revenue sharing.
http://business.guardian.co.uk/story/0,,1921154,00.html
http://video.google.com   

San Francisco-Based CNET Launches Video Site, Signs Verizon Deal

San Francisco -- CNET, the San Francisco-based technology media company, on Monday nnaounced the official launch of its video destination, CNET TV, as well as a partnership with Verizon to distribute CNET's video through on-demand television. Launched earlier this year, CNET TV is a repository for all of CNET's videos, and also makes a selection of the site's popular video content available for distribution on television. The partnership with Verizon follows similar deals with Cox Communications and TiVo. Verizon, which currently offers its FiOS TV service in seven states, will make CNET's video content available to its on-demand subscribers. The content includes product reviews, help and how-to videos, and commentary on breaking news.
http://www.cnettv.com/
http://biz.yahoo.com/bw/061016/20061016005541.html?.v=1

Report: Cancer Sufferers Turning to Internet for Information, Options

Reston, Va. -- People who research cancer online turn to the Internet predominantly for information on treatment options, which they subsequently validate through discussions with physicians, family or friends, according to new research from comScore Pharmaceutical Solutions. In addition, more than more than two-thirds of online cancer researchers visit a web site providing information on a specific cancer-related drug. Breast cancer was the most frequently researched form of the disease online, followed by skin cancer and colon/rectal cancer.  "Not surprisingly, online cancer researchers are a highly involved group, focused mostly on finding information on available treatments and seeking to understand the symptoms, but also looking to understand the causes of their condition," said Carolina Petrini, the vice president of comScore Pharmaceutical Solutions.
http://www.comscore.com/press/release.asp?press=1026

San Francisco-Based Greystripe Raises $1.2 Million in First Round

San Francisco -- Greystripe, the San Francisco-based developer of a service that distributes free, ad-supported mobile games, said that has raised $1.2 million in its first round of venture capital financing, VentureWire reported. Investors participating in the round included Incubic Venture Fund, Monitor Ventures and WS Investment Company. Greystripe's AdWRAP network sources ads from advertisers and delivers them through its network of mobile games, which includes titles from publishers like 3D Arts, Big Blue Bubble, Blastone, Cellufun, Chakra Interactive and HandyGames.
http://www.venturewire.com
http://www.greystripe.com

Sunnyvale-Based Tzero Lands Investment from Miven Venture Partners

Sunnyvale, Calif. -- Tzero Technologies, a Sunnyvale-based developer of ultra wideband (UWB) wireless technology, said on Thursday that it has received an unspecified investment from Miven Venture Partners, extending the company's second round of funding. Tzero, whose technology enables broadcast-quality video over wireless networks, initially had raised $25.5 million in the round, which first closed in June. Tzero said that it will use the new capital to expand its business opportunities and bring new products to market. The company also said that Victor Tsao, the founding general partner of Miven Venture Partners, as well as a cofounder of Linksys and a senior vice president of Cisco Systems, will act as an advisor.
http://www.tzerotech.com/site/content/pr_141.html

Hercules Provides $7 Million in Debt Financing to Los Gatos-Based iWatt

Palo Alto, Calif. -- Hercules Technology Growth Capital, a Palo Alto-based specialty finance firm catering to technology and life science companies, said on Thursday that it has provided $7 million of mezzanine debt financing to Los Gatos-based iWatt, a developer of semiconductors and power subsystems used in computers, communications and consumer electronic equipment. Curtis Davis, the president and CEO of iWatt, said that the financing "will enable continued product design and commercialization efforts." iWatt is backed by venture capital firms including Horizon Ventures, PTI Ventures, Sigma Partners and VantagePoint Venture Partners.
http://biz.yahoo.com/bw/061012/20061012005100.html?.v=1
http://www.iwatt.com/

San Jose-Based KLA-Tencor Closes $474 Million Acquisition of ADE

San Jose, Calif.. -- KLA-Tencor, a San Jose-based maker of yield management and process control tools for semiconductor manufacturers, said that it has closed its $474 million acquisition of Massachusetts-based ADE, a supplier of metrology and inspection systems. The deal, first announced in February, had been put on hold after German authorities launched a "Phase II investigation" of the proposed acquisition, but received German clearance last week. Rick Wallace, the CEO of KLA-Tencor said that the acquisition strengthens his company's inspection and metrology product portfolio.
http://www.kla-tencor.com
http://biz.yahoo.com/bw/061012/20061012005339.html?.v=1

Santa Clara-Based Tvia Says Shareholder Lawsuit Without Merit

Santa Clara, Calif. -- Tvia, a Santa Clara-based chipmaker for next-generation digital televisions, said that a shareholder class action lawsuit filed against the company, alleging violations of federal securities laws, is without merit. Filed in U.S. District Court in Northern California, the suit seeks unspecified damages for those who purchased Tvia stock between Aug. 8 and Sept. 27, and alleges that the company artificially inflated the market price of its shares. Tvia said that it will seek a dismissal of the suit. The company's shares plunged 57% in late September after it cut its second quarter outlook to revenue of $300,000 to $400,000, down from first quarter revenue of $5.1 million. Tvia attributed the lowered projections to a shortage of LCD panels and other digital TV products.
http://biz.yahoo.com/prnews/061010/sftu121.html?.v=61
http://biz.yahoo.com/prnews/061010/datu054.html?.v=42

Teens Migrate from Buddy Icon Sites to Those Helping Them Build Profiles

New York -- Over a three-year period, the top sites among teens 12-17 have shifted from those offering a selection of instant messaging buddy icons to those providing assistance with social networking profiles and page layouts, according to a new report from Nielsen//NetRatings. In September, sites offering tools to improve social networking profiles with song lyrics, pictures, quotes and layout designs -- led by PLyrics.com -- ranked among the most popular with the age group. In fact, nine out of the top 10 teen sites either offered content or tools for social networking site profiles, or were social networking sites themselves. That compares with three years ago, when the top teen sites included Originalicons.com, Buddy4u.com and Badass Buddy. Ken Cassar, chief analyst at Nielsen//NetRatings, said that while it's no surprise that teens are actively engaged in social networking sites like MySpace and YouTube, "What is surprising, however, is the extent to which a wide array of supporting web sites has developed in conjunction with these bigger, more well-known web destinations."
http://netratings.com/press.jsp?section=new_pr&theyear=2006&country=United%20States&themonth=9

Shelby Bonnie Steps Down From CNET Due To Back-Dating of Options

San Francisco -- The share price of San Francisco-based CNET Network, the online technology publisher, fell 7% on Wednesday after Shelby Bonnie, the company's chairman and CEO, resigned because of his involvement in the backdating of stock options at the company. Neil Ashe was named as the new CEO; Jarl Mohn was named the non-executive chairman. The company also announced lower-than-expected revenue guidance for the third quarter, and said that it would delay the filing of its quarterly report because of the stock options probe. "I apologize for the option-related problems that happened under my leadership," said Shelby Bonnie. "I believe that the company has come a long way since 2003 in addressing these deficiencies, but am deeply disappointed it happened nonetheless."
http://biz.yahoo.com/bw/061011/20061011005343.html?.v=1

Santa Clara-based McAfee Names New CEO and President

Santa Clara, Calif. -- Following an internal probe of the company's stock option practices, Santa Clara-based McAfee, the Internet security company, announced on Wednesday that its board of directors has named Dale Fuller as interim CEO and president. The company's stock price rallied on the news, jumping 3%. The appointment follows the retirement of George Samenuk as the company's chairman and CEO, and the termination of Kevin Weiss as the company's president.
http://www.mcafee.com/us/about/press/corporate/2006/20061011_183020_c.html

Live TV Mobile Games Firm AirPlay Raises $14 Million

San Francisco -- AirPlay, a developer of interactive TV games for mobile phones, announced that it has secured $14 million in its second round of venture capital financing. Participating in the round were Qualcomm, Motorola, JK&B Capital, Onset Ventures and Redpoint Ventures. Founded in 2004, San Francisco-based AirPlay develops games that enable viewers to use their mobile phones to play along with live TV programs. Its applications include Emmys AirPlay Live from Sprint, which enabled viewers to predict winners and losers, view commentary and answer trivia questions during the Emmy awards broadcast.
http://biz.yahoo.com/prnews/061009/sfm131.html?.v=3

Ruckus Wireless Raises $16 Million for "Smart Wi-Fi" Products

Sunnyvale, Calif. -- Ruckus Wireless, a developer of "smart Wi-Fi" technology and products, announced that it has raised $16 million in new financing, led by Motorola Ventures. New investors including T-Online Venture Fund and Firelake Capital Management also participated, along with existing investors Sequoia Capital, Sutter Hill Ventures, Investor AB and WK Technology Fund. Founded in 2004, Sunnyvale-based Ruckus currently supplies its MediaFlex smart Wi-Fi system to more than 75 broadband providers. The technology lets providers remotely view and manage Wi-Fi networks in consumers' homes.
http://biz.yahoo.com/prnews/061009/sfm050.html?.v=65

Mountain View-Based Agiliance Closes $6.5 Million in Second Round

Mountain View, Calif. -- Mountain View-based Agiliance, a provider of risk management software, announced that it has closed $6.5 million in its second round of funding. The investment was led by Walden International with participation from Red Rock Ventures. The company said its technology "enables organizations to analyze and decrease security risk, achieve continuous visibility of risk and compliance, and significantly reduce the cost of compliance with internal and external requirements." In connection with the financing, Agiliance added two new members to its board of directors -- Mary Coleman of Walden International and Kip Myers of Red Rock Ventures.
http://www.agiliance.com/events/series_b_funding.php

San Jose-based Novx Acquired by MKS Instruments

San Jose, Calif. -- MKS Instruments, a Massachusetts-based provider of technology for semiconductor manufacturers, has acquired Novx, a privately held, San Jose-based provider of electrostatic charge monitoring technology for semiconductor, data storage, telecommunication, medical device and other markets. Novx, which has 14 employees, will be integrated into MKS' Ion Systems product group, based in Alameda. Terms of the acquisition were not disclosed.
http://www.mksinst.com/PRnovx1CORP.html

Fiber-to-the-Home Reaches One Million Households and Businesses

Washington, DC -- Two national telecommunications industry organizations -- the Fiber-to-the-Home Council and the Telecommunications Industry Association --  announced that the number of homes and businesses in the United States directly connected by fiber optic connections now exceeds one million. Fiber optic connections are much faster than standard Internet broadband connections. The organizations said the growth rate in new subscribers has increased by 50% in the last six months. "Surveys of early fiber-to-the-home users show that they are highly satisfied with the service attributes such as increased Internet speed, on-demand video and HDTV, as well as online gaming," said Michael Render of RVA Market Research. "However, there is also increased interest in applications that affect health and education as information becomes available about services and distance learning available through the Internet."
http://www.tiaonline.org/business/media/press_releases/2006/PR06-jointPR_TIA-FTTHCouncil.cfm

CNET Announces Call for Entries for ''Best of CES'' Awards

San Francisco -- San Francisco-based CNET is now accepting submissions for the Annual "Best of CES" Awards at the 2007 International Consumer Electronics Show in Las Vegas. The awards -- chosen by CNET's editorial team -- recognize the hottest products at the show. Awards are given in 10 categories, including Best of Show and the People's Voice, which is chosen by CNET's online audience. More information on applying for the awards is available at the link below.
http://bestofces.cnet.com

CMP Technology Acquires Events Producer The Game Initiative

San Francisco - CMP Technology, a unit of United Business Media and the parent company of the Game Developers Conference, announced on Monday that it acquired The Game Initiative, a producer of video game industry conferences including the Austin Game Conference. Financial terms of the transaction were not disclosed. This year's Austin Game Conference, held in September, drew 2,400 attendees and 150 vendors. CMP said the deal will expand its events in areas like online game development and casual games.
http://biz.yahoo.com/prnews/061009/lam016a.html?.v=2

Google To Acquire YouTube for $1.65 Billion in Stock

Mountain View, Calif. -- Mountain View-based Google announced on Monday that it has agreed to acquire San Mateo-based YouTube, the online video hosting company, for $1.65 billion in stock. Google said YouTube will continue to operate independently "to preserve its successful brand and passionate community." The acquisition was a major win for Sequoia Capital, which invested $11.5 million in YouTube's first and second round of venture capital to help the company build-out its data centers. Google is expected to use its extensive advertising network to eventually monetize the massive traffic on the YouTube network. "Our community has played a vital role in changing the way that people consume media, creating a new clip culture," said Chad Hurley, CEO and co-founder of YouTube. "I'm confident that with this partnership we'll have the flexibility and resources needed to pursue our goal of building the next-generation platform for serving media worldwide."
http://www.google.com/press/pressrel/google_youtube.html

San Francisco-Based Revcube Raises $14 Million in Third Round

San Francisco -- Revcube, a San Francisco-based company that makes software to improve the relevancy of online marketing, announced on Tuesday that it has secured $14 million in its third round of funding. The round was led by VantagePoint Venture Partners. Previous investors in the company include Generation Partners and Transcosmos. The company said that VantagePoint Managing Director and DoubleClick Founder David Carlick will join its board of directors.
http://www.revcube.com/releases/2006-10-09.html

Don Wood Named Managing Director of Draper Fisher Jurvetson

Menlo Park, Calif. -- Menlo Park-based Draper Fisher Jurvetson, a technology venture capital firm, announced on Tuesday that Don Wood has joined the firm as managing director. Wood spent the last eight years at Vanguard Ventures where he led investments such as ZipRealty, Vocera, and Sylantro. Prior to Vanguard, he was president of Metricom where he led the creation of the metro wireless Internet service called Ricochet.
http://biz.yahoo.com/bw/061010/20061010006211.html?.v=1

San Francisco-Based FusionStorm Acquires Sunnyvale-Based Jeskell

San Francisco -- San Francisco-based FusionStorm, an IT integrator, announced that it has acquired Sunnyvale-based Jeskell, Inc., a provider of IT services. "We spent the time and researched hundreds of IT solution providers serving the Federal and Public Sector market and we chose Jeskell because we saw them as the biggest and best IBM Government and Education IT solution provider around," said John Varel, CEO of FusionStorm. FusionStorm said Jeskell will continue its exclusive alignment with IBM products and its focus on the government market. Javed Khan is expected to remain the president of Jeskell.
http://biz.yahoo.com/bw/061009/20061009005687.html?.v=1

NYT Report: DOJ Looking into Possible Collusion By Private Equity Firms

Washington, DC -- The New York Times DealBook publication reported on Tuesday that the U.S. Justice Department has sent letters to major private equity firms in a possible inquiry into anticompetitive activity. The article said that the "the delicate dance among buyout firms, who compete in some deals and work side-by-side on others, is drawing some unwanted attention." Amid a surge in private equity in recent years, the funds have become an increasingly important driver of merger and acquisition activity by public companies. The article added, "In private, some buyout executives concede that firms' cooperation, often in the form of 'club deals,' can have the effect of lowering prices for the companies they are acquiring."
http://dealbook.blogs.nytimes.com/?p=8170

San Mateo-Based Smalltown Raises $3 Million in First Round of Funding

San Mateo, Calif. -- San Mateo-based Smalltown, a new user-generated content site focused on geographic communities, announced on Tuesday that it has launched from stealth operations and raised $3 million in its first round of funding from Formative Ventures. The company's first sites will focus on Burlingame and San Mateo. "There really isn't one generalized platform where people in a local community can find and share information about all things local -- nannies, items for sale or exchange, local events, merchant coupons, weekend activities, you name it," said Hal Rucker, CEO and co-founder of Smalltown. "Smalltown is building a platform for the Local Web, a network of hundreds of hyper-local sites that have the granularity to address the needs of local economies."
http://www.smalltown.com/about.html

WSJ: Mountain View-Based Google in Talks to Buy San Mateo-Based YouTube

Mountain View, Calif. -- Google is in talks to acquire San Mateo-based video-sharing site YouTube for about $1.6 billion, The Wall Street Journal reported in its online editions Friday. Citing a "person familiar with the matter," the paper said that talks are still in the "sensitive" stages and could break off. Both companies declined to comment. If the deal transpires, it would give Mountain View-based Google a huge lift in the online video space. In August, YouTube drew 46% of all visits to U.S. video sites, compared with just 10% for Google Video, according to market research firm Hitwise.
http://online.wsj.com/article/SB116014813857884917.html?mod=technology_main_whats_news (subscription required)
http://biz.yahoo.com/rb/061006/media_google_youtub.html?.v=5

San Francisco-Based Yelp Raises $10 Million in New Funding

San Francisco - Yelp, a San Francisco-based site that publishes reviews of local businesses, said that it has raised $10 million in new financing from Benchmark Capital. Yelp said that it receives thousands of new user-generated reviews of restaurants and other local businesses each day, and has large online communities in Boston, Chicago, New York, Los Angeles and Seattle. The site attracted 1.5 million unique visitors in September. The company said that it will use the funds to expand its offering in major metropolitan areas across the country.
http://biz.yahoo.com/prnews/061005/sfth019.html?.v=69
http://www.yelp.com

San Francisco-Based Avolent Raises $9 Million in New Funding Round

San Francisco -- Avolent, a San Francisco-based maker of self-service electronic billing and payment software, said that it has raised $9 million in a new funding round led by RBC Technology Ventures. Previous investors including Columbia Capital, Constellation Ventures and Rho Ventures also participated. The company said that it will use the new capital to expand its footprint in Europe and Asia, investing in partner relationships and expanding its sales and marketing programs. Avolent's customers include AT&T, MasterCard, Office Depot, and Wells Fargo.
http://www.avolent.com/
http://biz.yahoo.com/pz/061005/106288.html