Silicon Valley Wire

Foster City-Based EFI Opens New Inkjet R&D Center in Israel

Foster City, Calif. -- EFI, a Foster City-based developer of color digital print servers, superwide format printers and print management software, said that it has opened a state-of-the-art inkjet research and development design center in Israel. EFI said that the new facility includes office space as well as research labs, and will house an expanding number of the company's projects focused on inkjet technology. The company has named Eli Shalev as the facility's general manager. shalev previously served as the general manager of Scitex product divisions, and was the COO of Nur Macroprinters.
http://www.ir.efi.com/phoenix.zhtml?c=117454&p=irol-newsArticle&ID=1033430&highlight=

Palo Alto-Based Technology Partners Closes New $300 Million Fund

Palo Alto, Calif. -- Technology Partners, a Palo Alto-based venture capital firm investing in cleantech and life sciences, said on Tuesday that it has closed a new $300 million fund. The fund, known as Fund VIII, will be equally directed toward cleantech and life sciences companies in seed, early and later stages. The firm said that its cleantech investments primarily focus on energy technology, water technology and advanced materials, while its life science investments focus on opportunities in neuroscience and lifestyle therapies ranging from aesthetics to obesity to women's health. Technology Partners said that it already has invested Fund VIII in four companies, including Tesla Motors, Nfocus NeuroMedical, SpectraGenics and a stealth solar company.
http://www.technologypartners.com/
http://news.yahoo.com/s/prweb/20070731/bs_prweb/prweb543656_1

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

Palo Alto, Calif. -- Qlusters, a Palo Alto-based provider of data center technology and services, said on Tuesday that it has raised $10 million in its third round of funding. All of the company's previous investors -- including Benchmark Capital, Israel Seed Partners, Duff Ackerman & Goodrich and Charles River Ventures -- participated in the round, as well as an unnamed investor from the storage space. Qlusters has raised over $33 million since its founding in 2001. The company has developed open source systems management and provisioning software that is currently in use by several large data centers.
http://www.qlusters.com/
http://biz.yahoo.com/bw/070731/20070731005395.html?.v=1

Apple's Wozniak Among Backers of Berkeley-Based Start-up Hotswap

Berkeley, Calif. -- Hotswap.com, a Berkeley-based Internet video start-up founded by three former University of California grad students, has raised an undisclosed amount of funding from backers including Apple co-founder Steve Wozniak and Clear Channel co-founder Red McCombs, Reuters reported. Hotswap has developed video compression technology it says can transform the lower-quality digital camera clips uploaded to sites like YouTube into high-definition-like video. Currently, the company hosts user-generated videos from consumers looking to sell their used cars. Customers of the service include AutoNation and Hotswap investor Red McCombs' San Antonio-based chain of auto dealerships."I like what they're doing. It's definitely a step forward," Wozniak told Reuters.
http://www.reuters.com/article/internetNews/idUSN2724266220070727
http://www.hotswap.com 

CNN, YouTube May Reschedule GOP Debate to Attract Participants

Mountain View, Calif. -- The CNN/YouTube Republican presidential debate may be rescheduled to accommodate candidates including Rudy Giuliani and Mitt Romney, who have said they can't make the event currently slated for Sept. 17 in Florida, according to The Hollywood Reporter. So far, only Ron Paul, John McCain and Tommy Thompson have signed on for the debate. "We're still in discussions with the campaigns to resolve scheduling issues," CNN Washington bureau chief David Borman told THR. All eight Democratic candidates participated in the first CNN/YouTube debate, largely due to the endorsement of the Democratic National Committee.
http://www.hollywoodreporter.com/hr/search/article_display.jsp?vnu_content_id=1003618651

San Jose-Based Photon Dynamics Acquires Salvador Imaging

San Jose, Calif. -- Photon Dynamics, a San Jose-based supplier of yield management systems for the flat panel display market, said on Monday that it has acquired Colorado-based Salvador Imaging, a supplier of high-performance digital cameras, for $20 million. Under the deal, the company paid $8 million in cash, with the remainder in stock. Photon Dynamics said that it will operate Salvador Imaging, as a subsidiary, retaining the company’s employees. David Gardner, the founder and CEO of Salvador Imaging, will become  president of the subsidiary. Earlier this year, the two companies formed a joint venture called Salvador Systems, which focuses on low light visible digital imaging applications for the defense and security markets.
http://biz.yahoo.com/iw/070730/0283735.html
http://www.photondynamics.com

Santa Clara-Based Aerohive Networks Raises $20 Million in Second Round

Santa Clara, Calif. -- Aerohive Networks, a Santa Clara-based developer of wireless LAN architecture, said on Monday that it has raised $20 million in its second round of funding, led by Kleiner Perkins Caufield & Byers. Previous investors Northern Light Venture Capital and Lightspeed Venture Partners also participated. To date, the year-old company has raised more than $24 million in venture capital, and plans to use the latest round to  expand its sales and marketing capabilities and continue developing its products. Aerohive's wireless LAN equipment eliminates the need for centralized wireless LAN controllers.
http://www.aerohive.com/company/press_events/2007/070730.html 
http://www.aerohive.com/

Santa Clara-Based BridgeWave Communications Lands $7.8 Million

Santa Clara, Calif. -- BridgeWave Communications, a Santa Clara-based supplier of gigabit wireless products, said on Monday that it has landed $7.8 million in its third round of funding. Participants included new investors SDL Ventures and Intel Capital, as well as several of the company's previous investors. The company said that it will use the proceeds to expand its sales, marketing, service and manufacturing functions. Launched in 1999, BridgeWave makes high-speed wireless communications links that provide an alternative to installing fiber cabling to connect local area networks between buildings, as well as to connect buildings to network backbones.
http://www.bridgewave.com/company/pressreleases_073007.cfm
http://www.bridgewave.com/

San Jose-Based Zippi Networks Signs $10 Million Financing Deal

San Jose, Calif. -- Zippi Networks, a San Jose-based provider of products, services, drop off stations and merchandising systems used by eBay sellers, said that it has signed a deal for up to $10 million in convertible financing from Palm Valley Capital. The specific amount of the funding hinges on the company's ability to reach specific milestones related to the completion of its products. Zippi so far has been able to access $1 million of the money. Zippi's offerings, including its toll-free pickup-and-sell service, are designed to simplify the process of selling items online.
http://www.zippi.com
http://biz.yahoo.com/bw/070730/20070730005390.html?.v=1

S.F.-Based Social Network and Blogging Service Twitter Raises Funds

San Francisco -- Twitter, a San Francisco-based social networking and blogging service that uses mobile phones, instant messaging and email, said that it has raised an undisclosed sum in a new round of funding. Investors included Union Square Ventures, Charles River Ventures and angel investors including Marc Andreessen, Dick Costolo, Ron Conway and Naval Ravikant. Twitter was launched in March 2006 by Obvious Corp., an Internet start-up incubator started by Evan Williams, whose other ventures have included Blogger and Odeo. "The capital we are investing will go to making Twitter a better, more reliable and robust service," Fred Wilson of Union Square Ventures wrote, in his blog.
http://twitter.com/blog/2007/07/taking-bite-out-of-big-apple.html
http://www.unionsquareventures.com/2007/07/twitter.html

Menlo Park-Based Cnano Technology Raises $6 Million in Funding

Menlo Park, Calif. -- Cnano Technology, a Menlo Park-based maker of carbon nanotubes with a variety of applications, said on Monday that it has raised $6 million in a new round of funding, co-led by CMEA Ventures and Pangaea Ventures. WI Harper also participated. Carbon nanotubes are nanotechnology materials that exhibit unique electrical, thermal, and mechanical properties, and are expected to be used across broad market segments, including energy and environmental, specialty materials and electronics. Cnano, which was launched last year, said that its mass production technology can reduce the normally high cost of producing the nanotubes.
http://www.cnanotechnology.com/
http://au.biz.yahoo.com/070730/43/1c34k.html

Former SCEA Developers Launch New Game Studio: Eat, Sleep, Play

Foster City, Calif. -- A group of former executives from Foster City-based Sony Computer Entertainment America said that they have launched a new game studio called Eat, Sleep, Play. The Utah-based company was created by David Jaffe, a former creative director for SCEA's Santa Monica Studios; and Scott Campbell, the founder of Sony's Incognito Entertainment studio -- who together worked on titles such as "Twisted Metal" and "Calling All Cars." The new company said that it has signed a multi-year, multi-title deal to create titles for the PlayStation family of products, and will also be creating "Twisted Metal: Head On" for PlayStation 2, which is scheduled to be released this winter.
http://biz.yahoo.com/prnews/070727/aqf023.html?.v=20

Medtronic to Acquire Sunnyvale-Based Kyphon for $3.9 Billion

Sunnyvale, Calif. -- Medtronic, the Minnesota-based medical technology giant, said on Friday that it will pay $3.9 billion in cash to acquire Sunnyvale-based Kyphon, a maker of medical devices designed to restore and preserve spinal function and diagnose the source of low back pain. The deal is expected to close in the first quarter of next year. "We expect our combination with Kyphon to help accelerate the growth of Medtronic's existing spinal business by extending our product offerings into some of the fastest growing product segments," said Art Collins, the chairman and CEO of Medtronic. The company also expects the deal to yield significant revenue, cost and tax synergies. Medtronic primarily serves orthopaedic and neurological surgeons who specialize in spinal surgery. While Kyphon also serves many of those same physicians, it also has a  significant customer base with radiologists and neuroradiologists.
http://www.kyphon.com
http://biz.yahoo.com/bw/070727/20070727005170.html?.v=1

San Jose-Based Cisco to Invest $150 Million in Palo Alto-Based VMware

San Jose, Calif. -- Cisco Systems, the San Jose-based networking equipment giant, said that it will invest $150 million in Palo Alto-based VMWare, a unit of EMC that makes software for managing IT systems. As a result, Cisco will own about 1.6% of VMware's outstanding stock. Cisco said that the move is designed to accelerate customer adoption of VMware's virtualization products with Cisco's networking infrastructure. The two companies also have entered into a collaboration agreement to expand joint development and marketing initiatives.
http://newsroom.cisco.com/dlls/2007/corp_072707.html
http://www.vmware.com/

Oakland-Based TeleBlend Acquires Some Assets of SunRocket

Oakland -- Less than two weeks after Virginia-based Internet phone provider SunRocket suddenly ceased its operations, leaving more than 200,000 subscribers in the lurch, Oakland-based counterpart TeleBlend said on Friday that it has signed a deal to acquire some of the company's assets. Financial terms of the deal, expected to close shortly, were not disclosed. With the deal, former SunRocket customers who choose to switch to TeleBlend will be able to maintain continuity of service during the process. "With this agreement in place, former SunRocket customers… have a seamless way to transition their service while continuing to use their existing equipment and phone number," said Michael Morrison, the general manager of TeleBlend. Palo Alto-based Sherwood Partners is handling SunRocket's liquidation. SunRocket, the nation's second-largest Internet phone start-up behind Vonage, had more than 200,000 subscribers when it closed in mid-July.
http://myteleblend.net/
http://biz.yahoo.com/bw/070727/20070727005143.html?.v=1

S.F.-Based Linden Lab Bans Online Gambling in "Second Life" Virtual World

San Francisco -- San Francisco-based Linden Lab's online virtual world, "Second Life," has banned its residents from participating in any forms of online gambling, several months after saying it would no longer accept any classified ads or event listings related to "simulated casino" activity. The ban covers both wagers in real and "Linden dollars," the virtual currency in Second Life. "Because there are a variety of conflicting gambling regulations around the world, we have chosen to restrict gambling in Second Life," reads a post on the Second Life blog. Linden Lab said in April that it had invited FBI investigators to tour the popular virtual casinos within Second Life, "and raise any concerns they like."
http://blog.secondlife.com/2007/07/25/wagering-in-second-life-new-policy 

Following Netflix's Lead, Blockbuster Cuts Online DVD Plan Prices

Los Gatos, Calif. -- Days after Log Gatos-based rival Netflix announced subscription price cuts at its online DVD rental service, video rental giant Blockbuster said that it has lowered the cost of several of its online subscription plans. The company's Total Access Premium DVD plan, which allows up to three DVDs out at a time, will now cost $16.99, down from $24.99. The price of Blockbuster's $9.99 Total Access plan was reduced to $7.99, while its Blockbuster By Mail plan now will cost $4.99 per month, down from $8.99. Blockbuster said that it counted about 3.6 million online subscribers as of July 1, while Netflix this week reported its first quarterly subscriber loss, and now counts 6.7 million subscribers.
http://biz.yahoo.com/prnews/070726/lath125.html?.v=16 
http://www.netflix.com   
http://www.blockbuster.com

Nasdaq Continues to Slide; Down Nearly 5% Since Beginning of Week

San Francisco -- Following sharp declines earlier this week, most local technology stocks continued to decline on Thursday with the Nasdaq composite index closing down 1.8%.  So far this week, the Nasdaq is down almost 5% amid concerns on Wall Street that increased defaults on mortgage loans -- and a weakened housing market -- could depress the overall economy. Strong third quarter results by Cupertino-based Apple -- which saw its share price jump by 6% on Thursday -- was unable to lift the overall technology sector. Local tech stocks that saw sharp declines on Thursday included: AMD (down 5.5%), Logic Devices (down 6.5%), Mattson Technology (down 10%) and Micrel (down 22%).

Sunnyvale-Based Harmonic Acquires Rhozet for $15.5 Million

Sunnyvale, Calif. -- Harmonic, a Sunnyvale-based provider of broadcast and on-demand video delivery technology, said that it will pay $15.5 million to acquire Santa Clara-based Rhozet, which develops universal transcoding technology for the creation of multi-format video for Internet, mobile and broadcast applications. Rhozet's transcoding technologies are used by customers including Amazon.com, MSN and Yahoo. Harmonic said the addition of Rhozet's technology will enable its broadcast, cable, satellite and telco customers to create and deliver Internet and video programming.
http://www.harmonicinc.com/ah_press_release_text.cfm?ID=683
http://www.rhozet.com 

San Jose-Based Bay Microsystems Raises $16 Million in Funding

San Jose, Calif. -- Bay Microsystems, a developer of programmable network processors, said on Thursday that it has raised $16 million in a new round of funding, co-led by new investors Quicksilver Ventures and W Capital. Previous investors Selby Venture Partners, Needham Capital, Pacifica Fund, Glenbrook Capital, Crossbridge Partners and Franklin Park Investment Partners also participated in the round, which the company will use to enhance its operations and continue its expansion in North America and Europe. Bay Microsystems' products allow service providers and other clients to deliver converged voice, video, data and multimedia. .
http://www.baymicrosystems.com/news_and_events/press_releases/bay-microsystems_newfunding.php 
http://www.baymicrosystems.com 

Mountain View-Based Google to Team with Sprint Nextel on WiMAX Portal

Mountain View, Calif. -- Wireless giant Sprint Nextel said on Thursday that it is working with Mountain View-based Google to create a new WiMAX mobile Internet portal. The companies said that the site will feature search, interactive communications and social networking tools. The news comes a week after Sprint Nextel announced plans to partner with rival Clearwire to jointly construct a national WiMAX network, offering consumers wireless Internet access at speeds comparable to wireline broadband services. Now, the company said that the new portal will "help spur new mobility and location-assisted services," while establishing an "Internet destination" for user-generated content and multimedia offerings. Sprint Nextel is planning to test the WiMAX network in DC, Baltimore and Chicago by the end of this year, with the service officially launching in parts of the country next spring.
http://www2.sprint.com/mr/news_dtl.do?id=17560

San Francisco-Based Curse Inc. Raises $5 Million in First Round

San Francisco -- Curse Inc., a San Francisco-based gaming portal dedicated to massively multiplayer online games (MMOG) and their fan communities, said on Thursday that it has raised $5 million in its first round of funding from French venture capital firm AGF Private Equity and angel investors. The company said that the terms of the funding will allow it to retain operational and creative control. Launched in 2005, by founder Hubert Thieblot, Curse offers video and screenshot sharing, wikis, databases, add-on downloads, social bookmarking, blogging, forums and guild web site hosting. The company also raised more than $800,000 through an angel round of funding in December.
http://www.curse.com
http://biz.yahoo.com/bw/070726/20070726005293.html?.v=1

S.F.-Based EFF Sues Universal Over YouTube Baby Dancing Video

San Francisco -- The Electronic Frontier Foundation (EFF), a San Francisco-based digital civil liberties group, has filed suit against Universal Music Publishing Group after the company ordered a home video removed from YouTube that showed a baby dancing to a clip of Prince's song "Let's Go Crazy." Stephanie Lenz told the EFF she posted the 29-second video of her son Holden to share with family and friends. The EFF says in its lawsuit that Lenz's video -- which has since been reposted on YouTube -- makes "fair use" of the copyrighted song. It also seeks damages and injunctive relief restraining Universal from bringing further claims in connection with the video. "Copyright abuse can shut down online artists, political analysts, or -- as in this case -- ordinary families who simply want to share snippets of their day-to-day lives," said Marcia Hofmann, an attorney with the EFF.
http://www.eff.org/news/archives/2007_07.php#005376
http://www.eff.org/legal/cases/lenz_v_universal/lenz_complaint_final.pdf (PDF)
http://www.youtube.com/watch?v=N1KfJHFWlhQ

San Jose-Based KLA-Tencor Settles with SEC Over Options Backdating

San Jose, Calif. -- KLA-Tencor, the San Jose-based semiconductor firm, said on Wednesday that it has reached a settlement with the Securities and Exchange Commission (SEC) over charges that the company and former CEO Kenneth Schroeder backdated stock option grants. Under the settlement, the company consented to a permanent injunction against future violations, and agreed to more stringent internal controls. KLA-Tencor will not be required to pay any civil penalty, fine or money damages. The SEC alleged that since 1997 KLA concealed more than $200 million in stock option compensation. Schroeder is accused of repeatedly backdating options, mainly between 1999-2002. "KLA dramatically overstated its reported financial results, depriving investors of accurate information about the company's compensation costs and financial performance," said Linda Chatman Thomsen, the SEC's director of enforcement. "It is especially troubling for a public company to engage in such misconduct even after being cautioned that these practices were impermissible."
http://biz.yahoo.com/bw/070725/20070725006073.html?.v=1
http://www.sec.gov/news/press/2007/2007-143.htm

Palo Alto-Based Facebook Hires Former YouTube Exec as New CFO

Palo Alto, Calif. -- Raising suspicions that the company is preparing for an initial public offering (IPO), Facebook, the Palo Alto-based online social network, has named former YouTube finance chief Gideon Yu as its new CFO. Yu replaces Michael Sheridan, who is leaving the company for unspecified reasons. He joined San Mateo-based YouTube last September, shortly before the company was acquired by Mountain View-based Google. The move is the second major personnel coup for Facebook in as many weeks. Last week, the company acquired Parakey, a Mountain View-based startup run by Blake Ross and Joe Hewitt, the co-founders of open-source web browser Mozilla Firefox. Ross and Hewitt will join Facebook to work on the development of the company's platform, as well as its web site.
http://www.facebook.com/

San Mateo-Based MotionDSP Lands Investment from CIA Arm

San Mateo, Calif. -- MotionDSP, a San Mateo-based developer of video enhancement technology, announced on Tuesday that it has received an undisclosed amount of funding through a new investment by In-Q-Tel, an investment firm backed by the Central Intelligence Agency (CIA). MotionDSP's technology can be used by mobile carriers and Internet video sites to improve the quality of video captured by consumer video devices like mobile phones and webcams. The company also markets a video forensic tool to the security market. As part of the deal, MotionDSP also signed a technology advancement agreement with In-Q-Tel. Troy Pearsall, the executive vice president of technology transfer at In-Q-Tel, said that the company's technology "will radically enhance the way any organization -- commercial or government -- processes video images."
http://www.in-q-tel.org 
http://www.motiondsp.com   
http://biz.yahoo.com/prnews/070724/aqtu173.html?.v=11

AT&T Activates Fewer iPhones Than Expected in Days After Launch

Cupertino, Calif. -- AT&T said that it activated 146,000 accounts for new owners of Cupertino-based Apple's iPhone in the two days after its launch on June 29, a number that was fewer than had been forecasted. The figures, however, could be misleading, both because of confirmed activation problems early on and consumers looking to resell the devices. "They likely sold many more phones than they activated," Cross Research analyst Shannon Cross told Reuters. "That being said, the Street was probably around 250,000, so it's maybe a bit light."
http://today.reuters.com/news/articleinvesting.aspx?type=marketsNews&storyID=2007-07-24T140037Z_01_N24419219_RTRIDST_0_AT-T-RESULTS-UPDATE-2.XML

CADNA Launching Campaign Against Cybersquatting

Washington, DC -- The Coalition Against Domain Name Abuse (CADNA) said that it has launched a national campaign against cybersquatting -- the fraudulent abuse of domain name registration. The organization said that sophisticated cybersquatters are increasingly exploiting a flaw in the domain name registration process that allows them to register domain names derived from famous brands, then test their profitability during a five-day grace period before dropping them. CADNA said that most domain names kept by cybersquatters are used to post pay-per-click advertisements, bringing in $100-$125 million in annual revenue for criminals and profiteers, while costing brand owners more than $1 billion a year in diverted sales and enforcement expenses. Through its efforts, CADNA said that it plans to pursue congressional legislation that would increase the penalties of the existing Anti-Cybersquatting Consumer Protection Act, as well as work with the World Intellectual Property Organization (WIPO) to introduce an international anti-cybersquatting treaty. CADNA has 10 charter members, including Dell, Hilton, Marriott, Verizon and Yahoo.
http://www.cadna.org/press-release-july-24.html
http://www.cadna.org

Redwood Shores-Based cFares Raises $4.5 Million, Names President

Redwood Shores, Calif. -- cFares, a Redwood Shores-based travel site launched in 2005, said on Tuesday that it has raised $4.5 million in its first round of funding, led by Oakland-based Claremont Creek Ventures. Previous investor Garage Technology Ventures also participated. The company also named Naren Nath, the former chairman of GeoPassage senior vice president of Trilogy Software, as its president, and industry veteran Michael Gunn as a member of its advisory board. cFares' membership site offers consumers cheap airline tickets by tapping sources such as consolidators and wholesalers.
http://www.cfares.com
http://biz.yahoo.com/bw/070724/20070724005573.html?.v=1

San Francisco-Based GuardianEdge Raises $13.5 Million

San Francisco -- GuardianEdge, a San Francisco-based developer of endpoint data protection software, said that it has raised $13.5 million, including $10 million in its second round of funding and another $3.5 million in debt financing. Cargill Ventures led the round, which also included participation from Thomvest Ventures, Altos Ventures and Cardinal Venture Capital. All told, the company has raised $20 million to date. GuardianEdge's platform is designed to protect corporate data either resting on hard drives, moving across ports and portable storage devices or stored on unneeded PCs.
http://biz.yahoo.com/prnews/070723/aqm017.html?.v=22
http://www.guardianedge.com/

Santa Clara-Based Plato Networks Raises $20 Million in Second Round

Santa Clara, Calif. -- Plato Networks, a Santa Clara-based developer of networking products for data centers,  said that it has raised $20 million in its second round of funding, led by Granite Ventures. STIC International and previous investor Crosslink Capital also participated in the round, which the company plans to use to accelerate the development of its ultra low-power 10Gbps Ethernet products. Plato was founded in 2004.
http://www.platonetworks.com
http://biz.yahoo.com/bw/070723/20070723006349.html?.v=1

iPhone Security Hole Uncovered by Baltimore IT Firm

Cupertino, Calif. -- Researchers at a Baltimore-based computer security firm have uncovered a flaw in Cupertino-based Apple's iPhone that could allow hackers to take over the device, The New York Times reported. Baltimore-based Independent Security Evaluators said that hackers could use either a Wi-Fi connection or web site with malicious code to retrieve users' personal information -- including email, text messages and phone numbers -- or even use the commandeered iPhone to make calls. "We just wanted to see how secure these things were," Charles Miller, the firm's principal security analyst, told The Baltimore Sun. "Should people feel safe with them? People are carrying their whole life around on them." No evidence exists that the flaw has been exploited. "Apple takes security very seriously and has a great track record of addressing potential vulnerabilities before they can affect users," Apple spokeswoman Lynn Fox told The Times. "We're looking into the report submitted by I.S.E."
http://www.nytimes.com/2007/07/23/technology/23iphone.html   
http://www.baltimoresun.com/technology/bal-te.bz.iphone24jul24,0,3988659.story?coll=bal_tab01_layout   
http://securityevaluators.com   

San Francisco-Based Hi5 Raises $20 Million in Funding

San Francisco -- Hi5, a San Francisco-based social networking site, said on Tuesdya that it has raised $20 million in a new round of venture capital financing led by Mohr Davidow Ventures. The company, which said that it has operated profitably for the past two years, said that it will use the funding to expand its services and move into new international markets. Founded in 2003, Hi5 claims more than 60 million registered members for its social network, which is popular in many Latin American countries, as well as in Portugal and Jamaica.
http://www.hi5.com
http://biz.yahoo.com/bw/070724/20070724005562.html?.v=1

Sunnyvale-Based VaST Systems Technology Raises $12 Million

Sunnyvale, Calif. -- VaST Systems Technology, a Sunnyvale-based maker of tools used to create virtual systems prototypes, said on Tuesday that it has raised $12 million in its fourth round of funding, led by ZenShin Capital. Previous investors Allen Buckeridge, Foundation Capital and Mohr Davidow Ventures also participated. "This new funding will drive further product and market expansion," said Alain Labat, the company's president and CEO. VaST's technology allows designers of architecture, hardware and software to create accurate software models of systems that operate at near real-time speeds under actual software loads. The company said that using the technology can cut 6-12 months off development cycles. Customers include developers of semiconductors, automotive electronics, wireless devices and consumer electronics.
http://www.vastsystems.com
http://biz.yahoo.com/bw/070724/20070724005510.html?.v=1

Terabeam Raises $7.5 Million, Restructures Engineering Operations

San Jose, Calif. -- Terabeam, a San Jose-based provider of equipment and services used in broadband municipal wireless networks, said on Tuesday that it has raised $7.5 million through a private placement of stock, selling 4.3 million shares for $1.75 each. Terabeam, which operates under its Proxim Wireless and Ricochet Networks subsidiaries, said that it will use the proceeds for working capital and general corporate purposes. The company also has announced a series of cost-cutting measures designed to reduce future operating expenses, as well as the cost of its products. As part of the plan, Terabeam said that it has restructured its engineering operations, shifting additional research and development activities to its India facility. "The combination of our recently completed financing and our significant cost-savings measures create a firm foundation upon which Terabeam can build profitable growth," said Robert Fitzgerald, Terabeam's CEO.
http://www.terabeam.com
http://biz.yahoo.com/bw/070724/20070724005203.html?.v=1
http://biz.yahoo.com/bw/070724/20070724005210.html?.v=1

Netflix Lowers Subscription Prices $1, Posts Lower Earnings Outlook

Los Gatos, Calif. -- Netflix, the Los Gatos-based online DVD rental service, said that it will lower the prices of its two most-popular subscription plans by $1, in part to counter price cuts at the online service of rival Blockbuster. The company's $9.99 monthly plan is being reduced to $8.99, while a $17.99 plan -- which allows three DVDs out at a time --will be reduced to $16.99. Netflix already lowered the cost of its $5.99 and $14. plans by $1 in February and June, respectively. Along with its subscription prices, Netflix also lowered its earnings outlook for the second half of the year, largely due to costs associated with the price cuts. The company now expects 2007 profits of $42.4-$52.4 million, down from an earlier projection of $55-$60 million.
http://biz.yahoo.com/prnews/070722/aqsu001.html?.v=9 
http://www.netflix.com

San Francisco-Based Respectance Raises $1.5 Million, Launches Site

San Francisco -- Respectance, a San Francisco-based online social community focused on sharing memories of loved-ones, said on Tuesday that it has landed $1.5 million in its first round of funding. Solid Ventures and Big Bang Ventures co-led the round, will be used to continue development and expand the site's international presence. The company also said that it has formally launched its site, which allows family and friends to share memories of lost loved ones by creating multimedia tributes. The company, which offers features such as photo, music and video uploading, said that its site is more appropriate for personalized tributes than all-purpose social networking sites like MySpace or Facebook.
http://www.respectance.com
http://biz.yahoo.com/bw/070724/20070724005402.html?.v=1 

Fremont-Based Solaria Raises $50 Million in Third Round of Funding

Fremont, Calif. -- Solaria, a Fremont-based developer of solar technology, said on Monday that it has raised $50 million in its third round of funding, led by Germany-based Q-Cells, the world's second largest solar cell manufacturer. Q-Cells, which now owns a 33% stake in the company, was joined in the round by previous investors Sigma Partners, NGEN and Moser Baer. Solaria, which raised $22 million in its second round last September, said that its technology platform enables the solar industry to produce two to three times the number of photovoltaic (PV) modules from the same amount of silicon material used in today's conventional modules.
http://www.solaria.com/index.php?command=news&sub=4
http://www.solaria.com/

Palo Alto's HP to Pay $1.6 Billion for Opsware, $214 Million for Neoware

Palo Alto, Calif. -- In a pair of key acquisitions announced on Monday, Palo Alto-based Hewlett-Packard said that it will pay $1.6 billion for Sunnyvale-based Opsware and $214 million for Pennsylvania-based Neoware. The company said that adding Opsware will instantly give it a strong foothold in the fast-growing market for data center automation software. The acquisition, which will be conducted through a tender offer is expected to close by year's end.  Meanwhile, the acquisition for Neoware will expand HP's capabilities in Linux software, client virtualization and customization, while also widening its regional sales footprint. That acquisition, as well, should close by the end of 2007.
http://www.hp.com/hpinfo/newsroom/press/2007/070723xa.html
http://www.hp.com/hpinfo/newsroom/press/2007/070723xb.html

San Mateo-Based Cloud 9 Analytics Raises $5 Million in First Round

San Mateo, Calif. -- Cloud9 Analytics, a San Mateo-based provider of web-based software specifically designed for clients of Salesforce.com, said on Monday that it has raised $5 million in its first round of funding. InterWest Partners led the round, with participation from Leapfrog Ventures. The company said that the financing will enable it to bring to market a family of on-demand applications in the sales performance management category. The software is designed to help sales teams learn from the past to better predict future performance.
http://www.cloud9analytics.com
http://biz.yahoo.com/bw/070723/20070723005341.html?.v=1

Bay Area IT firms Raise 40% More Venture Capital in Second Quarter

San Francisco -- Bay Area information technology companies raised nearly 40% more venture capital during the second quarter than the quarter before, according to figures release on Monday by Ernst & Young and VentureOne. Local IT firms raised $1.65 billion through 153 deals, up from $1.2 billion in 137 deals during the first quarter, though the numbers still lag slightly behind the figures from the same quarter in 2006. All told, area companies raised $2.5 billion during the quarter, the highest figures in three quarters. Some of the largest local rounds were raised by Milpitas-based SoloPower ($30 million), Redwood City-based Obopay ($29 million) and San Jose-based U-Systems ($16.5 million), while both Sequoia Capital and New Enterprise Associates led venture capital firms by participating in 11 rounds each. Nationally, the amount of VC raised increased 8% from the same period a year ago to $7.4 billion.
http://www.ventureone.com/
http://biz.yahoo.com/prnews/070723/nem036.html?.v=14

Aruba Acquires Wireless Security Business of Network Chemistry

Sunnyvale, Calif. -- Aruba Networks, a Sunnyvale-based developer of technology designed to provide secure access to data, voice and video applications across corporate networks, said on Monday that it has acquired the wireless security business of Palo Alto-based Network Chemistry. Financial terms of the deal were not disclosed. The security products acquired are designed to automatically detect network vulnerabilities, intrusion attempts and policy violations, complimenting Aruba's own product lines. Network Chemistry said that the sale will allow it to focus solely on its fast-growing IT management business.
http://www.arubanetworks.com/company/news/release.php?id=25
http://www.networkchemistry.com/pressreleases/pr-20070723.php

San Jose-Based Cisco Invests Undisclosed Amount in Optier

San Jose, Calif. -- OpTier, a New York-based developer of software designed to help clients better manage business transactions, on Monday announced that it has received an undisclosed amount through a new investment from San Jose-based Cisco. The investment follows on the heels of OpTier's recent $15 million third round of funding from Gemini Israel Funds, Pitango Venture Capital, Carmel Ventures and Lightspeed Venture Partners. OpTier’s flagship product, CoreFirst, links business services to IT infrastructure in a way that the company says assures service delivery and optimizes IT resources. http://www.optier.com
http://www.optier.com/Site/News_Events/pr_content.asp?news_id=181&cat_id=1

Report: 72% of U.S. Adults Now Have Broadband Access

Arlington, Va. -- Seventy-two percent of U.S. adults have access to a broadband connection and more than half of American households now subscribe to broadband, according to new research by the Consumer Electronics Association (CEA). The organization said that 57.8 million U.S. households subscribe to broadband at home, an increase of 21% from a year ago. "With 20% of non-broadband subscribers expecting to adopt this service in the next two years, future growth looks strong," said Gary Shapiro, the president and CEO of the CEA.
http://www.ce.org/Press/CurrentNews/press_release_detail.asp?id=11319

XM, Sirius to Offer A La Carte Pricing Following Merger

New York -- Trying to appease federal regulators, XM Satellite Radio and rival Sirius said on Monday that they will allow customers to purchase subscriptions on an a la carte basis following their planned merger. One option will allow subscribers to choose 50 channels for $6.99, about $6 less than the price to purchase either the standard XM or Sirius service. Under the plan, customers will be able to add additional channels starting at $0.25 each a month. A second a la carte option will allow subscribers to choose 100 channels for $14.99 a month. The combined company plans to offer several other new programming packages, including two "family-friendly" options that will block adult-themed programming and cost $1 less than a regular package. The companies, which announced their $4.7 billion merger in February, said that they will begin offering a la carte programming within a year of the deal's closing, with other programming options beginning within six months.
http://www.xmmerger.com   
http://biz.yahoo.com/prnews/070723/nym051.html?.v=93

Price Protectr Officially Launches Retail Pricing Notification Service

Palo Alto, Calif. -- Price Protectr, a Palo Alto-based startup, said on Friday that it has officially launched its web site, www.priceprotectr.com, following several months in beta mode. The free service sends registered users an automated message when the price drops on something they've purchased from any of 33 national retailers, including Amazon, Best Buy, Sears and Staples. "The majority of consumers don't even know about price protection policies and the money they can save," said CEO James Wallace. If the price goes down after someone buys an item from one of Price Protectr's retailers, registered users get an email with instructions on how to get some money back from the store.
http://www.priceprotectr.com/
http://biz.yahoo.com/prnews/070720/nef032.html?.v=13

S.F.-Based Video Aggregation Service VodPod Secures Funding

San Francisco -- VodPod, a San Francisco-based service that lets users collect and organize videos from more than 1,000 video-sharing sites, has raised an undisclosed sum in its first round of venture capital financing from True Ventures, PaidContent.org reported. Launched in June 2006, VodPod now counts over 50,000 registered members, who collect online videos and can then embed a player featuring the assorted videos on their web sites, blogs or social network profiles. The company was founded by Mark Hall, formerly the vice president of international at RealNetworks.
http://www.vodpod.com
http://www.paidcontent.org/entry/419-online-video-aggregator-vodpod-gets-first-round-funding/

Palo Alto-Based Facebook Acquires Parakey; Firefox Founders Join Staff

Palo Alto, Calif. -- In its first-ever acquisition, Palo Alto-based social networking site Facebook said that it has acquired Parakey, a Mountain View-based startup run by Blake Ross and Joe Hewitt, the co-founders of open-source web browser Mozilla Firefox. Financial terms of the deal were not disclosed. Ross and Hewitt will join Facebook to work on the development of the company's platform, as well as its web site. Firefox has been downloaded more than 300 million times since its inception. Hewitt went on to build popular web development tools such as Firebug, and in early 2006 again teamed with Ross to found Parakey, develop of a web-based interface designed to make it easier for people to transfer content from their desktop to the Internet.
http://parakey.com/
http://www.facebook.com/press.php

Google to Spend $4.6 Billion in Spectrum Auction if FCC Adopts Rules

Mountain View, Calif. -- Even as its stock fell sharply on Friday following weaker-than-expected quarterly earnings, Mountain View-based Google said that it will spend at least $4.6 billion in the federal government's upcoming auction of wireless spectrum if the FCC agrees to certain rules that could spur more broadband competition. In a filing with the FCC on July 9, Google urged the FCC to require the adoption of four types of "open" platforms as part of the license conditions, which the company said would best serve consumers' interests. The company has argued that such conditions are necessary to prevent a small group of telephone and cable giants from simply outbidding smaller rivals, while spurring additional competition from software applications providers, content providers, handset makers and ISPs. In a letter sent Friday to FCC Chairman Kevin Martin, Google CEO Eric Schmidt said that should the FCC adopt his company's requests, "Google intends to commit a minimum of $4.6 billion to bidding in the upcoming auction."
http://googleblog.blogspot.com/2007/07/our-commitment-to-open-broadband.html
http://www.google.com/intl/en/press/pressrel/20070720_wireless.html

House, Senate Subcommittees Plan Hearings on Google-DoubleClick Deal

Mountain View, Calif. -- Subcommittees in both the House and Senate are planning hearings into antitrust and privacy issues raised by Mountain View-based Google's proposed $3.1 billion purchase of online advertising company DoubleClick, The New York Times reported. Google executives are expected to be called to testify before Congress, with the Federal Trade Commission already investigating the deal. A subcommittee of the Senate Judiciary Committee, as well as the House Energy and Commerce Committee's subcommittee on consumer protection, reportedly have hearings on the proposed acquisition in the works, although no dates have been set. The companies first announced the deal in April.
http://www.nytimes.com/2007/07/19/technology/19google.html
http://www.house.gov/apps/list/press/il01_rush/rushgoogleletter.html 
http://www.doubleclick.com