Silicon Valley Wire

Cupertino-Based Apple Set to Release Highly Anticipated iPhone

Cupertino, Calif. -- Lines extending several hundred people deep were expected Friday night as Apple and AT&T retail stores began selling the highly anticipated iPhone. The handheld device, which combines a mobile phone, widescreen video iPod and Internet access tool, will go on sale beginning at 6 p.m. in each U.S. time zone. Apple said that it plans to keep each of its 164 retail stores open until midnight to handle the anticipated rush. A 4GB model will retail for $499, with an 8GB version selling for $599. At Apple's flagship retail store in New York, customers began lining up on Tuesday, hoping to be among the first to purchase the device first unveiled in January. In a surprise move, Apple CEO Steve Jobs has promised each of the company's more than 20,000 employees a free iPhone, a move that reportedly will cost more than $12 million.
http://www.apple.com/iphone/pr/20070628iphone.html 
http://www.apple.com/iphone/easysetup/getready.html

S.F.-Based Sugar Publishing Lands Investment from NBC Universal

San Francisco -- NBC Universal Digital Media has invested an undisclosed amount as part of San Francisco-based blog publisher and social network operator Sugar Publishing's second round of funding, the company said. Founded in 2006, Sugar Publishing operates a range of women-focused sites, including PopSugar, GeekSugar and FitSugar, which collectively draw 4.5 million unique visitors a month. As part of the agreement, the Sugar Network and NBCU's iVillage women's destination will share entertainment content, and NBCU's digital media sales team will be the exclusive sales agent for Sugar Publishing. Sugar previously raised $5 million last September from Sequoia Capital.
http://www.sugarpublishing.com
http://www.ivillage.com

Super Micro to Buy 90,000-Square-Foot Office Building in San Jose

San Jose, Calif. -- Super Micro Computer, a maker of serverboards, chassis and server systems, said on Friday that it will pay $11.3 million to buy a 90,000-square-foot office building adjacent to its corporate headquarters in San Jose. The property is also near two other buildings that the company owns. "This facility will allow Supermicro to expand our manufacturing facilities as well as provide additional office space for our growing R&D and SG&A needs," said Charles Liang, the company's president and CEO.
http://www.supermicro.com
http://biz.yahoo.com/bw/070629/20070629005126.html?.v=1

Searches for iPhone Spike as Apple Prepares to Release Device

Cupertino, Calif. -- The highly anticipated release of Cupertino-based Apple's iPhone on Friday night prompted Internet users to flood the web in search of information, according to new data released by comScore. Last week, American's conducts 1.2 million iPhone-related searches, up from an average of 80,000-200,000 in February through May, the firm said. Through June 24, nearly 6.9 million searches were conducted that included the term "iPhone."  Of those, the most common related topics involved the product's price and release date. The iPhone, a handheld device that combines a mobile phone, widescreen video iPod and Internet access tool, will go on sale Friday at 6 p.m. in each time zone through Apple and AT&T stores. A 4GB model retails for $499, with an 8GB model selling for $599.
http://www.comscore.com/press/release.asp?press=1518
http://www.apple.com/iphone/

Los Gatos-Based Netflix Settles Patent Dispute with Blockbuster

Los Gatos, Calif. -- Netflix, the Los Gatos-based provider of online DVD rental services, said that it has settled its patent litigation with rival Blockbuster. Terms of the settlement were not disclosed. Netflix sued Blockbuster last year for infringing two of its patents; Blockbuster responded with a counterclaim that alleged Netflix was in violation of antitrust laws. Blockbuster also announced plans to shutter 282 of its U.S. rental store locations, and spend more to build its online rental service. Meanwhile, Netflix on Thursday lowered the fee for its $14.99-a-month plan by $1, matching a similar price cut Blockbuster made for its plan that offers two DVDs out at a time.
http://biz.yahoo.com/e/070627/bbi8-k.html
http://www.blockbuster.com 
http://www.netflix.com 

San Ramon-Based AccountNow Raises $12.75 Million in Third Round

San Ramon, Calif. -- AccountNow, a San Ramon-based provider of prepaid credit cards for consumers with poor credit histories, said that it has raised $12.75 million in its third round of funding, led by Trident Capital. INVESCO Private Capital, Oak Hill Investment, VSP Capital, Grayhawk Venture Partners, Granite Hill Capital Ventures and CEO Tim Coltrell also participated. AccountNow said that it will use the funds to significantly expand its service offerings.
http://www.accountnow.net/about_us/FundingPR062807.aspx
http://www.accountnow.net/

Report: U.S. Video Game Industry Employs 39,700; 46% in California

San Francisco -- There are more than 39,700 people employed in the development or publishing of games in the U.S., with nearly half working in California, according to a new report from CMP Game Group's San Francisco-based Game Developer Research division. More than 46% of the jobs (18,300) are based in California, with Washington (11.6%) and Texas (7.4%) rounding out the top three states. The study included makers of casual, online and mobile, in addition to PC, handheld and console games,.
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/06-28-2007/0004617554&EDATE=
http://www.gamedevresearch.com 

Milpitas-Based LSI to Cut 900 Jobs, Sell Consumer Products Business

Milpitas, Calif. -- Shares of LSI Logic plunged 12% on Thursday after the Milpitas-based maker of data storage chips lowered its quarterly financial forecast and said that it will eliminate 900 jobs -- or about 13% of its non-production workforce -- in an effort to reduce its operating expenses. The company said that many of the cuts are related to its merger with Agere Systems in April. In a related move, LSI said that it will sell its consumer products business to Magnum Semiconductor for an undisclosed sum. The company said that the moves will save it between $255-$265 million in the third quarter. "Today's actions will position the company to improve our gross margins in our semiconductor business and to grow profitably in a competitive, fast-changing market," said Abhi Talwalkar, LSI's president and CEO. Talwalkar cited "greater than anticipated softness in our businesses" for the company lowering its second quarter to $650-$675 million from $715-$745 million. the company also said that it could record a loss of up to $0.03 after previously saying that it expected to record a profit of up to $0.03.
http://www.sec.gov/Archives/edgar/data/703360/000089161807000390/f31478exv99w1.htm http://www.lsi.com/news/corporate_news/2007/2007_06_27b.html

San Jose-Based Covad Communications to Cut 8% of Workforce

San Jose, Calif. -- Covad Communications Group, a San Jose-based provider of voice and data communications services, said on Thursday that it is cutting 8% of its workforce -- around 77 employees -- in an effort to improve the financial performance of some of its product lines. The company said that the move will save it approximately $4 million, after restructuring charges, in the second half of this year. "These actions help to position the company for improved financial results in the second half of 2007 and in 2008," said Charles Hoffman, Covad's president and CEO. Covad will announce its second quarter financial results on July 26.
http://www.covad.com
http://biz.yahoo.com/bw/070628/20070628005133.html?.v=1

Foster City-Based Equinix to Pay $482 Million for IXEurope

Foster City, Calif. -- Equinix, a Foster City-based operator of data centers and provider of Internet exchange services, said on Thursday that it will acquire IXEurope, a provider of colocation services in Europe, for about $482 million. The acquisition will allow Equinix to immediately expand into the European market. IXEurope's business includes 14 data centers comprising more than 380,000 square feet in London, Zurich, Frankfurt, Munich, Paris, Dusseldorf and Geneva. The company's more than 450 customers include Merrill Lynch, Avis Europe, Deutsche Boerse, Citigroup, Rackspace and SurfControl. Equinix said that it hopes to complete the deal by mid-September. The company's European regional headquarters will be located in London.
http://www.equinix.com/press/press/2007/06_27_07.html
http://www.ixeurope.com/

San Jose-Based Intacct Raises $14 Million in New Round of Funding

San Jose, Calif. -- Intacct, a San Jose-based provider of web-based financial software, said that it has raised $14 million in a new round of funding co-led by new investors Sigma Partners and Sutter Hill Ventures. Prior investor Emergence Capital Partners also participated. "The new capital will help us spread our story to the multitude of growing businesses that are ready to graduate from QuickBooks and other entry-level accounting software," said Mike Braun, the CEO of Intacct. The company provides financial management system applications for more than 2,000 small and midsize businesses.
http://us.intacct.com/news_events/2007/062707.php
http://us.intacct.com/

Santa Clara-Based PixSense Names Paul Singh as New President, CEO

Santa Clara, Calif. -- PixSense, a Santa Clara-based provider of mobile media management and convergence infrastructure, software and services to wireless carriers, on Thursday named Paul Singh as its new president and CEO. He replaces founding CEO Faraz Hoodbhoy, who will become executive vice president and CTO. The move comes a week after the company said that it raised an undisclosed amount in a new round of funding, led by Qualcomm Ventures. Singh was one of the founders of ipVerse/Veraz, and previously was the CEO and co-founder of Internetware.
http://beta.pixsense.com
http://biz.yahoo.com/bw/070628/20070628005229.html?.v=1

Local Firms Dominate Entrepreneur List of Top VCs of '06

Menlo Park, Calif. -- Draper Fisher Jurvetson, the Menlo Park-based venture capital firm, ranked second in the nation last year in early-stage investments, according to a new list of the top venture capital firms by Entrepreneur magazine. DFJ made 19 early-stage investments, trailing only the Maryland Technology Development Corp., which made 22. Local firms dominated the list, which also included Menlo Park's Khosla Ventures and Sequoia Capital (12 each), Menlo Park's Band of Angels and Redwood City's Omidyar Network (nine each) and Menlo Park's Foundation Capital, Santa Clara's Intel Capital and Menlo Park's Mohr Davidow Ventures (eight each), to name a few. Sequoia Capital also tied for third in late-stage investments with five, with Menlo Park's Benchmark Capital and Redpoint Ventures tying with four each. Both lists are available at the link below.
http://www.entrepreneur.com/vc100/index.html

Data Domain Raises $110.85 Million in IPO, Shares Surge 66%

Santa Clara, Calif. -- Shares of Data Domain, a Santa Clara-based maker of storage appliances used for backup and disaster recovery, surged 66% on their first day of trading on Wednesday after the company raised $110.85 million in its initial public offering (IPO). The company priced its 7.39 million shares at $15 each, well above its expected price range of $11.50-$13.50. Its shares, trading on the Nasdaq Global Market under the symbol "DDUP." closed at $24.95. Data Domain said that its appliances reduce the storage of redundant copies of data, as well as associated storage costs, and are an alternative to tape-based storage systems.
http://www.datadomain.com/news/press_rel_062707.html
http://www.datadomain.com/

Palo Alto-Based Neopolitan Networks Raises $3.17 Million in First Round

Palo Alto, Calif. -- Neopolitan Networks, a Palo Alto-based provider of Ethernet network services, said on Wednesday that it has raised $3.17 million in its first round of venture capital financing. Topspin Partners and OakStone Ventures co-led the round, which the company will use to launch new service offerings and move into additional markets. Neopolitan delivers WAN and MAN communications services to businesses.
http://www.neopolitan.com/press/articles/06_27_2007.html
http://www.neopolitan.com

San Jose-Based U-Systems Raises $16.5 Million in New Funding Round

San Jose, Calif. -- U-Systems, a San Jose-based developer of automated breast ultrasound systems, said on Wednesday that it has raised $16.5 million in a new round of funding led by Siemens Venture Capital. Previous investors Sycamore Venture Capital, MDS Capital, Radius Ventures, Kinetic Capital and United Investments and new investors President International Development, iD Innovation, China Investment & Development and TSC Bioventures also participated. "This funding will enable us to expand our sales and marketing organizations as well as continue our investment in product development and clinical investigations," said Joseph Pepper, the president and CEO of U-Systems. Launched in 1997, the company makes automated ultrasound systems to assist healthcare providers in the early detection of breast cancer.
http://www.u-sys.com/
http://biz.yahoo.com/bw/070627/20070627005010.html?.v=1

Nielsen to Acquire San Francisco-Based Telephia

San Francisco -- Nielsen, the New York-based media and information firm, said on Wednesday that it will acquire San Francisco-based Telephia, a provider of syndicated consumer research to the telecom and mobile media markets. Financial terms of the deal were not disclosed. Nielsen said that the acquisition will allow it to offer measurement services to the mobile sector. Telephia serves more than 100 clients in the U.S., Canada and Europe, providing technology-based measurements of consumer behavior, product quality and consumer attitudes to mobile operators, device manufacturers and retailers, among others.
http://www.nielsen.com/media/pr_070627.html
http://www.telephia.com/

S.F.-Based Embarcadero Goes Private Through Acquisition

San Francisco -- Completing a deal first announced last September, San Francisco-based Embarcadero Technologies, a maker of software designed to improve the management and security of corporate data, said on Wednesday that it has been acquired by private equity firm Thoma Cressey Bravo. Embarcadero, now a privately held company, said that the $200 million deal gives it the "resources and flexibility" to accelerate the development of its database marketing tools. Embarcadero was founded in 1993 and went public in April 2000. The company now serves more than 12,000 customers internationally. Embarcadero also said that it has promoted Raj Sabhlok to president and CEO. Sabhlok joined the company in 2000, and most recently served as its senior vice president of operations.
http://www.thomacressey.com/current_news.php
http://www.embarcadero.com/

Redwood City's Shutterfly Acquires Customized Children's Book Firm

Redwood City, Calif. -- Shutterfly, the Redwood City-based photo sharing site, said on Wednesday that it has acquired Make it About Me, a publishing company that produces customized children's books including My Adventure on Sesame Street and My Amazing Alphabet Adventures. Financial terms of the deal were not disclosed. Shutterfly said that the acquisition, its first this year, will allow it to offer services in which parents can integrate their children's photos into a book's illustrations and storyline. The service will allow parents to create personalized and professionally-bound hardcover books featuring their kids. The company already licenses content and themed characters from Thomas and Friends, Clifford the Big Red Dog and Angelina Ballerina, and now will add Sesame Street to that list.
http://ir.shutterfly.com/releasedetail.cfm?ReleaseID=251150
http://www.shutterfly.com/personalized_childrens_adventure_books/?

comScore Nets $73.7 Million from IPO; Stock Rises 42%

South San Francisco -- Shares of comScore rose more than 42% in their first day of trading Wednesday, hours after the Virginia-based provider of Internet audience measurement services, which bases its West Coast operations out of South San Francisco, netted $73.7 million in its initial public offering (IPO). The company late Tuesday priced 5.3 million shares, including 300,000 from selling stockholders, at $16.50 each, above their anticipated price range of $14-$16. The offering raised a total of $87.45 million, before expenses. comScore's stock is now trading on the Nasdaq Global Market under the symbol "SCOR." comScore collects data from more than 2 million Internet users, who have granted the company permission to measure their Internet usage patterns, buying behavior and other activities. The company then uses its statistical methodologies to project consumers' online behavior for the total online population. In 2006, comScore generated revenue of $66.3 million, primarily from subscription fees.
http://www.comscore.com/press/release.asp?press=1507
http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001158172&owner=include&count=40

Menlo Park-Based Stion Raises $15 Million in Second Round

Menlo Park, Calif. -- Stion, a Menlo Park-based developer of thin-film solar modules, said on Tuesday that it has raised $15 million in its second round of funding, led by Lightspeed Venture Partners. New investor General Catalyst Partners also participated, as did previous investors Khosla Ventures, Braemar Energy Ventures and Moser Baer Photovoltaic. Stion said that its technology will minimize the total installed system cost of solar electricity. "Our technology is primed for the next phase of development, and the proceeds from this round will take us to early commercialization phase," said Chet Farris, Stion's president and CEO.
http://www.stion.com/
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070626005760&newsLang=en

Santa Clara-Based Applied Materials to Acquire HCT Shaping Systems

Santa Clara, Calif. -- Applied Materials, a Santa Clara-based provider of nano-manufacturing equipment, service and software products to the electronics industry, said on Tuesday that it will pay $475 million in cash to acquire Switzerland's HCT Shaping Systems, a supplier of wafering systems used to manufacture crystalline silicon (c-Si) substrates for the solar industry. Applied said that the deal is part of its strategy to reduce the cost of photovoltaic (PV) cell manufacturing, making solar energy more competitive with grid electricity. "This acquisition aligns well with our overall strategy to drive down the cost-per-watt of solar power for c-Si and thin film applications," said Mike Splinter, the president and CEO of Applied Materials. The deal is expected to close by the end of October.
http://biz.yahoo.com/bw/070626/20070626005588.html?.v=1
http://www.appliedmaterials.com

FIS Acquires San Francisco-Based Applied Financial Technology

San Francisco -- Fidelity National Information Services (FIS), a Florida-based provider of core processing services for financial institutions, said that it has acquired Applied Financial Technology (AFT), a San Francisco-based provider of predictive risk analytics, analysis and data for the mortgage industry. Financial terms of the deal were not disclosed. The deal will allow FIS to offer AFT's modeling product, which helps mortgage-backed securities traders improve the accuracy of their mortgage default and pre-payment predictions. The technology allows for "a granular and realistic modeling" of portfolio, securities and individual loan risk characteristics, the company said.
http://www.fidelityinfoservices.com/FNFIS/NewsRoom/20070625.htm

SBT Acquires Mountain View-Based Quixit, Renames it HAPPYneuron

Mountain View, Calif. -- Scientific Brain Training (SBT), a France-based developer of programs for developing and maintaining mental and cognitive capacity, said on Tuesday that it has acquired Mountain View-based Quixit, a distributor of casual online games developed specifically for cognitive training. Financial terms of the deal were not disclosed. SBT, which had been a minority shareholder of Quixit, said that it will rename the company HAPPYneuron. Quixit's games are designed to be played online for 5-10 minutes each, with the assistance of software that acts like a personal coach. The games are developed to focus on training specific cognitive functions such as memory.
http://www.jlhalsey.com/
http://biz.yahoo.com/bw/070626/20070626006138.html?.v=1

Ex-TiVo CFO Steve Sordello Named CFO of Mountain View's LinkedIn

Mountain View, Calif. -- Steve Sordello, who last week resigned as the CFO of Alviso-based TiVo, on Tuesday was named the new CFO of Mountain View-based LinkedIn, operator of an online business network that includes more than 11 million professionals. "I felt the upside opportunity offered to me was just too compelling to pass up," said Sordello, upon his resignation from TiVo, a company he had joined last August following a stint as CFO of Ask Jeeves. LinkedIn said that it expects to double in size over the course of the next year.
http://biz.yahoo.com/bw/070626/20070626005508.html?.v=1
http://www.linkedin.com/

Thousands of Webcasters Go Silent to Protest Higher Royalty Rates

Washington, DC -- Thousands of U.S. webcasters on Tuesday went silent, staging a day-long blackout in protest of sharply higher music royalty rates set to take affect on July 15. Many smaller webcasters have warned that the 300% rate increase will put them out of business, unless Congress intervenes through the proposed "Internet Radio Equality Act." Among those participating in the blackout were Yahoo, Live 365, Rhapsody, MTV Online, Pandora and AccuRadio, as well as scores of others at the local and national level. On July 15, Internet-only webcasters and broadcasters that simulcast online could be forced to pay 17 months worth of retroactive royalty payments at the higher rates following a recent decision by the Copyright Royalty Board (CRB). "During the National Day of Silence webcasters will urge their listeners to contact their congressional representatives and ask them to support the Internet Radio Equality Act and preserve the future of Internet radio," said Jake Ward, a spokesperson for the SaveNetRadio Coalition.
http://www.savenetradio.org/
http://media.prnewswire.com/en/jsp/search.jsp?searchtype=full&option=headlines&criteriadisplay=show&resourceid=3502006

Cupertino-Based Apple, AT&T Announce iPhone Service Plan Pricing

Cupertino, Calif. -- With the launch of its highly anticipated iPhone just three days away,  Cupertino-based Apple and AT&T on Tuesday announced pricing of service plans for the device. Ranging from $60-$100 a month, the plans require a two-year contract with AT&T. All plans include visual voicemail, unlimited data for the Internet and email and 200 text messages a month. The iPhone, a handheld device that combines a mobile phone, widescreen video iPod and Internet access tool, goes on sale Friday through Apple and AT&T stores. A 4GB model will retail for $499, with an 8GB model  selling for $599.
http://www.apple.com/iphone/easysetup/rateplans.html   
http://www.apple.com/iphone/usingiphone/guidedtour.html

Alviso-Based Palo Alto Networks Raises $18 Million in Second Round

Alviso, Calif. -- Palo Alto Networks, a San Jose-based developer of firewalls that let companies set and enforce application usage policies, said on Monday that it has raised  $18 million in its second round of funding, led by Globespan Capital Partners. Previous investors Greylock Partners and Sequoia Capital also participated in the round, which increased the company's total backing to $28 million. Palo Alto Networks said that it will use the new funds to expand its sales, marketing and engineering initiatives.
http://www.paloaltonetworks.com/press_releases/seriesbfinancing.html
http://www.paloaltonetworks.com/

S.F.-Based Revision3 Lands $8 Million in Second Round of Funding

San Francisco -- Revision3, a San Francisco-based Internet television network featuring original music, science, technology and comedy programming, said on Monday that it has raised $8 million in its second round of funding, led by Greylock Partners. The company said that it will use the proceeds to expand its mix of hip, geek and pop culture-oriented programming aimed at 18-34 year-olds. The site, formally launched last fall by the founders of social news site Digg.com, currently received more than 2 million downloads a month. Programming features original Internet TV shows such as "Diggnation," "Systm,"” "The Totally Rad Show," "iFanboy" and "InDigital." Advertisers include Sony, Netflix, Microsoft, WebEx, Verizon, Adobe and GoDaddy.
http://www.revision3.com/
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070625005499&newsLang=en

San Jose-Based Covad Promotes Justin Spencer to CFO

San Jose, Calif. -- Covad Communications Group, a San Jose-based provider of voice and data communications services, said on Monday that it has promoted Justin Spencer to the role of CFO. Spencer, formerly the company's vice president of finance, had served as its acting CFO since April 11, when Chris Dunn resigned. He originally joined Covad in late 2002, and previously served in key strategy and product management roles at Hewlett-Packard, focused in the wireless and wireline telecommunications sector.
http://www.covad.com/
http://biz.yahoo.com/bw/070625/20070625006096.html?.v=1

S.F.-Based Yamas Controls Group to Sell Six Units to TAC

San Francisco -- Yamas Controls Group, a San Francisco-based provider of systems integration and building management systems, said on Monday that it will sell six of its business units to TAC, a Dallas-based provider of building automation, security systems and energy technology. Financial terms of the deal were not disclosed. The companies said that the units -- which include Yamas Controls in San Francisco -- have combined revenue of more than $40 million and a workforce of 225 employees. Four of the other locations are located in the Carolinas, and the other is based in Las Vegas.
http://www.tac.com/Content?contentId=document/19835

Report: iTunes Store Now Third-Largest U.S. Music Retailer Overall

Cupertino, Calif. -- Cupertino-based Apple's iTunes Store is now the third-largest overall retailer of music in the U.S., behind only Wal-Mart and Best Buy, according to a report from market research firm NPD Group. During the first quarter, Wal-Mart claimed 15.8% of total music sales, followed by Best Buy (13.8%) and iTunes (9.8%). Amazon.com and Target rounded out the top five. Physical CDs still dominate downloads, accounting for 86.2% of all music purchases. The firm attributed Apple's success to strong sales of its iPod players during the holiday season.
http://www.npd.com

Mountain View-Based Google Widens Lead in Internet Search Market

Mountain View, Calif. -- Mountain View-based Google widened its lead against competing search engines in May, capturing 50.7% of the market, according to new research from comScore. The firm said that Google gained a full percentage point from the prior month to further outdistance Yahoo (26.4%), Microsoft (10.3%), Ask Network (5%) and Time Warner (4.6%). comScore said that Americans conducted 7.6 billion searches online in May, up 11% compared with the prior year.
http://www.comscore.com/press/release.asp?press=1494 

San Jose-Based Danal Raises $9.5 Million in New Funding Round

San Jose, Calif. -- Danal Inc., the San Jose-based U.S. unit of South Korean mobile payments company Danal Co., said that it has received $9.5 million in a new round of venture financing, led by Morgenthaler Ventures. The company's South Korean parent  also contributed. Danal allows consumers to purchase goods and services online by charging them to their mobile phone bills. The service has seen wide adoption in Asia, where last year South Koreans charged more than $1 billion worth of transactions, representing 70% of all digital content purchased online, to their mobile phone bills. The company said that it will use the proceeds to add employees, commercialize its service in the U.S. and strengthen its relationships with mobile carriers and merchants.
http://www.danalcorp.com/
http://www.danalcorp.com/news/d_news_01.asp

San Jose-Based SiRF to Acquire Centrality Communications for $283 Million

San Jose, Calif. -- SiRF Technology Holdings, a San Jose-based developer of semiconductor and software products that utilize GPS and other location technologies, said that it will pay $283 million in cash and stock to acquire Redwood City-based Centrality Communications, a developer of navigation processors for mobile devices. The deal is expected to close next quarter. Founded in 1999, Centrality has developed a range of system on a chip (SoC) offerings for mobile navigation and multimedia products. The company has more than 190 employees, also maintaining its main development center in China and branch offices in Taipei, Seoul and Brussels.
http://www.sirf.com/PressRoom/Press.aspx?PressId=130&Home=true
http://www.centralitynav.com

Steve Sordello Resigns as CFO of Alviso-Based TiVo

Alviso, Calif. -- TiVo, the Alviso-based provider of digital video recorders and programming services, said that Steve Sordello has resigned as its CFO to take the same role at a late stage venture funded company in Silicon Valley. "I felt the upside opportunity offered to me was just too compelling to pass up," said Sordello. It was a short tenure for Sordello, who joined TiVo last August following a stint as CFO of Ask Jeeves. He also previously held senior positions at Adobe Systems and Syntex. TiVo said that it has launched a search for his replacement.
http://biz.yahoo.com/prnews/070621/aqth168.html?.v=1
http://www.tivo.com

Fremont-Based Oplink Communications Says CFO Bruce Horn Resigns

Fremont, Calif. -- Oplink Communications, a Fremont-based maker of optical networking components, said that Bruce Horn has resigned as its CFO and treasurer to "pursue other interests." The company also said that it has promoted its controller, Shirley Yin, to the roles of vice president of finance and acting CFO, and has launched a search for a permanent replacement. Yin has worked closely with Horn over the past five years, the company said.
http://investor.oplink.com/releasedetail.cfm?ReleaseID=250581

San Ramon-Based SBE Regains Compliance with Nasdaq Rules

San Ramon, Calif. -- SBE, a San Ramon-based maker of IP storage systems serving remote back-up and disaster recovery applications, said on Friday that it has officially regained compliance with Nasdaq listing rules. In January, the company received notice from the market that its stock failed to meet the $1 minimum bid price, as well as another rule requiring at least $2.5 million of stockholders' equity, $35.0 million market value of listed securities or $500,000 of net income for the most recently completed fiscal year or two of the past three. .
http://www.sbei.com
http://biz.yahoo.com/bw/070622/20070622005396.html?.v=1

Entertainment and Media Biz Projected to Hit $103 Billion by 2011

New York -- The global entertainment and media business is expected to grow to $103.3 billion by 2011, up from $81.2 billion last year, according to a report from PricewaterhouseCoopers. Digital music and digital cinema in the U.S. are expected to experience significant growth during the period, with digital music overtaking physical distribution in 2010. Also within the next five years, broadband households are expected to grow by 300 million to 540 million subscribers, and wireless subscribers will increase by 1.1 billion to 3.4 billion. The full report is available at the link below.
http://www.pwc.com/extweb/ncpressrelease.nsf/docid/E042C329AE028974852573010051F342 

Report: 72% of U.S. Online Adults Listen to Audio on Home PCs

Arlington, Va. -- Nearly three-quarters of U.S. online adults listen to audio on their home computers, according to a new study from the Consumer Electronics Association (CEA). Despite the high number, however, just 9% have configured their systems so they can play music stored on their computers over home stereo systems, Although CDs remain the primary source, Internet and digital file listening have increased in popularity. "The PC has claimed its place as a hub of audio content procurement and playback in the home," said Steve Koenig, the CEA's senior manager of industry analysis. "The next step is to allow consumers to see the benefits of connecting their PC to their existing home audio system."
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070621005599&newsLang=en
http://www.ce.org

Sunnyvale-Based Yahoo Acquires Sports Site Rivals.com

Sunnyvale, Calif. -- Sunnyvale-based Yahoo announced on Thursday that it will acquire online college and high school sports site Rivals.com. Though financial terms of the dealwere undisclosed, PaidContent.org reported that Yahoo paid about $100 million. Founded in 2001, Tennessee-based Rivals.com offers editorial content, college message boards and recruitment news on a network of more than 150 web sites, which attract a combined 2 million unique visitors a month. Yahoo said that the deal will significantly expand its community offerings and open publishing capabilities of Yahoo Sports. It also will bring new revenue opportunities to the company's advertising and subscription businesses. "College sports engagement is primarily driven by community, and adding Rivals.com to Yahoo Sports creates tremendous opportunities for us to connect our sports fans with the right sports content at the right time," said James Pitaro, the vice president and general manager of Yahoo Sports.
http://biz.yahoo.com/prnews/070621/nyth054.html?.v=91
http://www.paidcontent.org/entry/419-its-official-yahoo-acquires-rivalscom http://www.rivals.com 

Report: News Corp. Ponders Swap of MySpace for Yahoo Stake

Sunnyvale, Calif. -- News Corp. has held talks with Sunnyvale-based Yahoo about swapping its MySpace unit for a 30% stake in Yahoo, the Times Online reported. The article said that the tentative discussions could break down following the resignation of Yahoo CEO Terry Semel earlier this week, and did not provide an indication of Yahoo's interest in the offer. News Corp. paid $580 million to acquire MySpace in 2005; Based on its current share pcie, about 30% of Yahoo would be worth approximately $11 billion.
http://business.timesonline.co.uk/tol/business/industry_sectors/media/article1957867.ece

Berkeley-Based Wesabe Raises $4 Million in First Round of Funding

Berkeley, Calif. -- Wesabe, a Berkeley-based developer of a web-based financial management tool, said that it has raised $4 million in its first round of funding, led by New York-based Union Square Ventures (USV). O'Reilly AlphaTech Ventures, the company's lead seed round investor, also participated. The company plans to use the funding to expand product development and marketing. In November, Wesabe launched its tool, which is designed to give members a better understanding of how they spend and links them to a community aimed at helping them get more for their money. The tool aggregates and analyzes financial transaction data from members' bank and credit card accounts, and delivers money-saving tips based on actual purchases.
http://biz.yahoo.com/prnews/070620/aqw065.html?.v=16
http://www.wesabe.com/

Google Lands License to Provide Internet Content in China

Mountain view, Calif. -- Mountain View-based Google has been granted preliminary approval by the Chinese government to provide Internet content in the country, Reuters reported. A license from China's Ministry of Information and Industry will allow the company to provide news content to Chinese Internet users, and likely improve its ability to attract online advertising there. Baidu, currently the largest search provider in China, won a similar content license from the Chinese government earlier this year.
http://www.reuters.com/article/internetNews/idUSSHA25270720070620

Apple iPhone to Feature One-Touch YouTube Access

Cupertino, Calif. -- Cupertino-based Apple has revealed that the previously announced "mystery application" for its iPhone will be one-touch access to Google's YouTube video-sharing site. The "special YouTube player…can launch right from the home screen," Apple said on its iPhone site. The announcement comes in the same week that both AT&T and YouTube launched mobile video services that won't be compatible with the iPhone, each running on faster 3G networks rather than the slower EDGE network used by Apple device, which is scheduled for release June 29.
http://www.apple.com/iphone/internet/?feature=feature05   

imeem Launches Ad-Supported Music Service Compensating Musicians

San Francisco -- San Francisco-based social media network imeem said that it has launched a new service with music technology firm Snocap that will compensate artists when their music is streamed. First announced in March, the service launches with three million tracks, including music from  record labels such as Nettwerk, Beggars Group, Matador Records, Om Records, and XL Recordings. The service automatically identifies uploaded content, determines if the content owner has permitted streaming and then distributes a pro-rata share of the advertising revenue to the proper recipient. The site has been available for artists to share and promote their work for the past year. Now, the site boasts an active user base of more than 16 million.
http://www.imeem.com/
http://www.imeem.com/press/imeemsnocap-06202007.aspx

Webcasters to Protest Higher Rates Tuesday with Day of Silence

San Francisco -- Facing significantly higher royalty rates that threaten to financially cripple a large segment of their industry, thousands of webcasters are planning to protest by shuttering their stations for a day next week. The Radio and Internet Newsletter reported that some of the largest Internet radio providers, including Live 365 and AccuRadio, will go silent on Tuesday in an event being dubbed "Day of Silence." The Wall Street Journal also said that Yahoo and Pandora Music plan to take part, but AOL plans to skip the protest, fearing that it will impact the "consumer experience." Instead of silence, some webcasters plan to link to a one-hour forum in which webcasters will discuss the impact of higher rates. Many webcasters have warned that the Copyright Royalty Board's new rates, set to take effect July 15, will force them out of business. Earlier this month, a group of large and small webcasters -- including NPR and those represented by the Digital Media Association (DiMA) -- asked the U.S. Court of Appeals for the DC Circuit to delay the implementation of new, higher rates until the court hears their appeal.
http://www.kurthanson.com/archive/news/062007/index.shtml 
http://online.wsj.com/article/SB118237834051942601.html?mod=googlenews_wsj  (subscription required)

Palo Alto-Based PGP Lands $27.3 Million in Third Round of Funding

Palo Alto, Calif. -- PGP, a Palo Alto-based developer of email and data encryption software designed to protect critical data, said on Wednesday that it has raised $27.3 million in its third round of funding. New investors Intel Capital and D. E. Shaw group participated, as did previous investors DCM and Venrock. The company said that it will use the proceeds accelerate its technology development, as well as further fund its channel expansion. PGP said that its products are now in use at 95% of the 2006 Fortune 100 companies.
http://www.pgp.com/newsroom/mediareleases/funding.html
http://www.pgp.com/

San Francisco-Based Prosper Lands $20 Million in Third Round

San Francisco -- Prosper, on online people-to-people lending marketplace co-founded by E-Loan co-founder Chris Larsen, said on Wednesday that it has raised $20 million in its third round of funding, co-led by DAG Ventures and Meritech Capital Partners. Previous investors Accel Partners, Benchmark Capital, Fidelity Ventures and Omidyar Network also participated in the round, which increased the company's total backing to $40 million. Since launching in early 2006, Prosper's membership has grown to over 330,000 individuals with $70 million in loans funded its marketplace. The company's online auction platform allows people to list and bid on loans. People who want to borrow create loan listings for up to $25,000 and set the maximum rate they are willing to pay a lender. Lenders then bid down the interest rate. Prosper handles all loan administration tasks, including loan repayment and collections, on behalf of the matched borrowers and lenders.
http://www.prosper.com
http://biz.yahoo.com/bw/070620/20070620005272.html?.v=1

Fremont-Based Oplink to Acquire Remaining Stake in OCP

Fremont, Calif. -- Two months after acquiring a majority stake in the company, Fremont-based Oplink Communications, a maker of optical networking components, said on Wednesday that it will acquire the remaining 42% of Woodland Hills-based Optical Communication Products (OCP) from owner Furukawa Electric. Oplink said that it will pay $1.65 a share in cash for the rest of OCP, which designs and manufactures fiber-optic communication components and subsystems. Upon completion of the deal, expected to occur by September, OCP -- which is currently traded on the Nasdaq Global Market -- will become a privately held company. "As a combined company, we will meaningfully broaden our portfolio of offerings and expand our addressable market and customer base," said Joe Liu, the president and CEO of Oplink
In April, the company acquired 58% of OCP for $84.2 million in cash, as well as another $1.2 million in stock.
http://www.oplink.com/
http://biz.yahoo.com/bw/070620/20070620005441.html?.v=1