Silicon Valley Wire

S.F.-Based Ourmedia Merges with Los Gatos-Based Outhink Media

San Francisco -- Ourmedia, a San Francisco-based nonprofit that provides free video hosting and sharing services, said that it has merged with Outhink Media, a Los Gatos-based provider of services to independent digital media producers. Financial terms of the deal were not disclosed. Founded in 2005, Ourmedia offers video hosting and a social network for independent media producers that claims 145,000 registered members. Outhink previously had donated servers and development resources to Ourmedia, and also developed SpinXpress, a free peer-to-peer application that supports project collaboration though the sharing of large media files across a secure private network.
http://biz.yahoo.com/bw/071213/20071213006178.html?.v=1
http://www.ourmedia.org 
http://www.outhink.com 

"Green Monday" Shatters Online Retail Spending Record

San Jose, Calif. -- "Green Monday," a term recently coined by San Jose-based eBay to describe the second Monday in December as the heaviest online spending day of the season, lived up to its billing, according to new figures from Reston-based comScore. The firm said that U.S. online retail spending on Dec. 10 reached $881 million, setting a record as the heaviest online spending day in history. The figure was 33% higher than the same day in 2006. "Online spending is following the pattern it first established last year, namely an accelerating growth rate as the season progresses," said Gian Fulgoni, the chairmain of  comScore. "Consumers are clearly responding positively to the enticing promotions and discounts being offered by retailers this year,." comScore said that spending is currently on track to meet its forecast of $29.5 billion this holiday season.
http://www.comscore.com/press/release.asp?press=1967

U.S. Game Sales Leap 52% in November to $2.63 Billion

New York -- Buoyed by strong sales of the Nintendo Wii and Activision's  "Call of Duty 4" and "Guitar Hero 3" titles, U.S. video game sales shot up 52% to $2.63 billion in November, according to new figures released by NPD Group. Nintendo sold a record 981,000 Wii consoles last month, compared with 770,000 Microsoft Xbox 360s and 466,000 Sony PlayStation 3 consoles. Among handheld systems, Nintendo sold 1.53 million DS units, while Sony sold 567,000 PSPs. On the software side, Activision had the top-seller in "Call of Duty 4: Modern Warfare," which moved over 2 million units across all consoles. The publisher's "Guitar Hero 3" also sold 1.9 million copies across all platforms. NPD said that the industry had generated $13.1 billion in sales through the end of November -- already surpassing full-year sales tallies for all of 2006.
http://www.npd.com 

San Francisco-Based Jobvite Lands $7.2 Million in First Round

San Francisco -- Jobvite, a San Francisco-based developer of web-based recruiting tools for companies, said on Thursday that it has raised $7.2 million in its first round of funding, led by CMEA Ventures. The company said that it will use the proceeds to expand its product development, marketing and sales efforts. Jobvite's software is designed to manage the entire recruiting and hiring process, helping clients coordinate hiring activities and data across departments. Customers include TiVo, Infinera, SupportSoft, Mattson Technology and Tellme Networks.
http://biz.yahoo.com/iw/071213/0339571.html
http://www.jobvite.com

Report: San Francisco's Kyte.TV Service Lands $5.6 Million

San Francisco -- San Francisco-based start-up Decentral.tv, whose Kyte.tv service lets users create mobile streaming TV channels, has raised $5.6 million in new financing from Spanish telcom Telefonica, NewTeeVee reported. The company ear;lier this year also received investments from Nokia Growth Partners, Swisscom and Holtzbrinck Ventures. Kyte.tv allows users to create interactive TV channels populated with their own video content, which may be broadcast to any website, blog, social network or mobile phone. Interactive features include chatting and voting.
http://newteevee.com/2007/12/12/another-56-million-for-kytetv 
http://www.kyte.tv 

San Jose-Based SunPower to Acquire Italy's Solar Solutions

San Jose, Calif. -- SunPower, a San Jose-based maker of high-efficiency solar cells, solar panels and solar systems, said on Thursday that it will acquire Solar Solutions, a solar systems integration and product distribution company based in Italy. Financial terms of the deal, expected to close early next year, were not disclosed. Solar Solutions is a 14-employee division of Combigas, a petroleum products trading firm. The five-year-old company distributes components such as solar panels and inverters through a network of dealers throughout Italy, and has been a customer of SunPower's since last year. "We believe that this acquisition will provide an important platform for SunPower to address both the solar power plant and rooftop markets in Italy," said Marco Antonio Northland, the general manager of SunPower's European operations.
http://www.sunpowercorp.com
http://biz.yahoo.com/prnews/071213/aqth041.html?.v=38

Sunnyvale-Based GetQuik Raises $200,000 in Seed Funding

Sunnyvale, Calif. -- GetQuik, a Sunnyvale-based developer of online restaurant ordering technology and services, said on Thursday that it has raised $200,000 in a seed round from Mark Coker, a Silicon Valley angel investor and entrepreneur, and Sam Ryu,the  CEO of Texas-based computer products reseller Computize. The company said that tit will use the funds to expand its product development, sales and customer service operations. GetQuik first began processing online restaurant orders in November 2006, and now operates its restaurant ordering network at more than 150 locations throughout Northern California. The company  plans to expand to other major metro regions in 2008.
http://www.getquik.com
http://biz.yahoo.com/prnews/071213/aqth034.html?.v=31

AOL Reveals Top Web Searches of 2007

Dulles, Va. -- For the second straight year, weather was the most popular search term on AOL Search during 2007, while WWE wrestler Chris Benoit, the Apple iPhone and Britney Spears topped AOL's News, Gadget and Celebrity search lists, the company said on Wednesday. American Idol once again topped the company's most-searched TV shows list, and Hillary Clinton emerged as the front-runner on the Top Politicians list. "Search results provide a unique snapshot of what's on the minds of millions of people from around the world, over the course of a year," said John Kannapell, Senior Vice President, AOL Search. The complete list is available at the link below.
http://press.aol.com/article_display.cfm?article_id=1364

Digital TV Converter Coupons to Become Available Jan. 1

Washington, DC -- Beginning Jan. 1, the estimated 13-21 million U.S. households that rely on antennas to receive analog TV signals will be able to ask the government for two $40 coupons toward the purchase of digital converters, the Associated Press reported. The converters will be needed to view digital TV signals once analog broadcasts are discontinued in 2009. Congress has allotted $1.5 billion for the program, with converters from DigitalSTREAM, Zenith, Magnavox and Philco already having been certified. The converters will be sold at retailers including Best Buy, Wal-Mart, Target, Kmart and RadioShack. Those interested in the coupon program can apply at DTV2009.gov, which will go live on Jan. 1.
http://www.ntia.doc.gov/ntiahome/press/2007/DTVretailers_121107.html  http://www.latimes.com/technology/la-fi-boxes12dec12,1,3848218.story
http://www.dtvtransition.org/

San Jose-Based eBay Ordered to Pay $30 Million to MercExchange

San Jose, Calif. -- eBay will have to pay $30 million in damages to Virginia-based MercExchange, following a ruling late Tuesday. The damages stem from a 2003 patent infringement verdict in the U.S. District Court in Norfolk, Va., which found that eBay had intentionally infringed a patent held by MercExchange involving some of the technology behind the online auction giant's "Buy It Now" feature. The court also could force eBay to pay additional damages to account for revenues since the verdict. "eBay was found to be a willful infringer of our patents over four and one-half years ago, and we are now proceeding to the conclusion of their expensive legal delays," said Thomas Woolston, the president of MercExchange. eBay has vowed to appeal. "In its ruling, the court concluded that it did not have the legal right to consider the merits of our arguments concerning the [patent], but rather was required to reject our motions based on the procedural posture of the case," said eBay. "We intend to appeal the court's ruling on the procedural issues and remain confident that… the court will consider our arguments on their merits." eBay also has won several decisions in the ongoing legal battle. The U.S. Court of Appeals has invalidated another one of MercExchange's patents and The Supreme Court  has decided in eBay's favor on MercExchange's request for an injunction.
http://www.MercExchange.com
http://biz.yahoo.com/bw/071212/20071212005726.html?.v=1

Santa Clara-Based Intelleflex Lands Investment from Motorola

Santa Clara, Calif. -- Intelleflex, a Santa Clara-based developer of radio frequency identification (RFID) technology, said on Wednesday that it has landed an unspecified investment from wireless device giant Motorola as part of a larger partnership between the two companies. Motorola's venture capital arm, Motoroloa Ventures, has co-led the company's third round of funding, along with new investor Arcapita Ventures. In conjunction with the investment, the RFID division of Motorola's Enterprise Mobility business will work with Intelleflex to develop new RFID products to be released in 2008. The products will feature capabilities such as larger user memory, longer range operation, advanced security architectures,  performance in difficult RF environments and sensors for environmental data capture.
http://www.intelleflex.com/
http://www.motorola.com/mediacenter/news/detail.jsp?globalObjectId=9028_8957_23

Rocket Software to Acquire Cupertino-Based NetManage

Cupertino, Calif. -- Rocket Software, Massachusetts-based developer of infrastructure software, said on Wednesday that it will acquire NetManage, a Cupertino-based developer of software for corporate information systems, for about $69 million. The deal, expected to be completed by the end of February, comes a year after NetManage rebuffed acquisition overtures from stockholders Riley Investment Management and Zeff Capital Partners. "We feel confident this is the right strategy for our shareholders, customers and employees and that Rocket will continue to build on our legacy," said Zvi Alon, the chairman and CEO of NetManage. NetManage, which has about 200 employees and $33.8 million in annual revenue, makes software for integrating, web enabling and accessing large information systems,
http://www.rocketsoftware.com
http://www.netmanage.com/
http://biz.yahoo.com/bw/071212/20071212005372.html?.v=1

Teradyne to Acquire San Jose-Based Nextest Systems

San Jose, Calif. -- Teradyne, a Massachusetts-based supplier of automatic test equipment for complex electronics, on Wednesday announced it will pay $325 million in cash to acquire Nextest Systems, a San Jose-based manufacturer of automatic test equipment for flash memory and system-on-chip semiconductors. Teradyne said that the deal will allow it to expand into the "fast-growing" flash memory test segment, estimated to be worth more than $700 million in 2006, according to the company. Of Nextest's $95.8 million in revenue in 2006, flash memory tester sales totaled $80 million. The acquisition is expected to close in the first quarter of 2008.
http://biz.yahoo.com/bw/071212/20071212005464.html?.v=1
http://www.teradyne.com
http://www.nextest.com

YouTube Expands Ad Revenue-Sharing to Popular Users

San Bruno, Calif. -- Google's YouTube video-sharing site has announced the expansion of its YouTube Partner Program, which will now enable YouTube users in the U.S. and Canada to earn a cut of revenue generated from ads placed alongside their videos. The company said that users eligible for the service will have built a "significant audience," as measured by video views and number of subscribers, and will have consistently complied with the company's terms of service. Partners will be able to decide which of their videos they would like YouTube to run ads against. The company said that over 100 users have been added to the program so far, including "tayzonday," whose videos include "Chocolate Rain," which counts over 12 million views.
http://www.youtube.com/press_room_entry?entry=2vouE85O_qI 
http://www.youtube.com/partners 

Information Technology Employment Rises Slightly in November

Alexandria, Va. -- Following declines in August, September and October, IT employment reversed that trend by adding 6,600 workers nationally in November, according to new figures released by the National Association of Computer Consultant Businesses (NACCB). The figure represents a gain of 0.2% from the previous month. Mark Roberts, the CEO of NACCB, said that IT employment has essentially remained unchanged over the past 1 ½ years, despite continued strong demand for qualified IT professionals. "We attribute the continued absence of growth in IT workforce in the face of demand to a shortage of qualified workers," said Roberts.
http://www.naccb.org/employment-index/index.cfm

Milpitas-Based JDSU to Acquire American Bank Note Holographics

Milpitas, Calif. -- JDS Uniphase (JDSU), a Milpitas-based provider of communications test and measurement equipment and optical products, said on Tuesday that it will acquire New Jersey-based American Bank Note Holographics (ABNH) for $138 million in cash and stock. ABNH develops holograms for security applications and supplies optical security devices to the transaction card market. JDSU said that the acquisition, expected to close by the end of March, will expand its offerings for brand protection and transaction card-based commerce. ABNH, which has 110 employees, will become part of JDSU's Advanced Optical Technologies business segment.
http://www.jdsu.com
http://www.abnh.com
http://biz.yahoo.com/prnews/071211/aqtu107.html?.v=29

STMicroelectronics to Acquire Santa Clara-Based Genesis Microchip

Santa Clara, Calif. -- Swiss chipmaker STMicroelectronics said on Tuesday that it will acquire Santa Clara-based Genesis Microchip through a cash tender offer worth about $336 million. Genesis, which generated revenue of $191 million for the year ending Sept. 30, is a developer of image and video processing systems used in flat-panel TVs and a variety of consumer and PC-display products. The tender offer, in which Genesis shareholders will receive $8.65 a share, is expected to commence by Dec. 18. STMicroelectronics said that the acquisition will enhance its technological capabilities in the $1.5 billion digital TV market. Upon closing, Genesis will become part of STMicroelectronics' Home Entertainment & Displays Group. Elias Antoun, the president and CEO of Genesis, will lead STMicroelectronics' television and display initiatives.
http://www.gnss.com
http://phx.corporate-ir.net/phoenix.zhtml?c=78051&p=irol-newsArticle&ID=1086005

nCipher Acquires Milpitas-Based NeoScale for $1.95 Million

Milpitas, Calif. -- nCipher, a Massachusetts-based developer of data protection technology, said on Tuesday that it has acquired NeoScale Systems, a Milpitas-based maker of encryption and key management products for the storage security industry, from private equity firm Hercules Technology for about $1.95 million. NeoScale makes a series of appliance-based encryption products under the CryptoStor brand. Its technology is designed to protect information to avoid concerns over data privacy in the event that back-up tapes are stolen or misplaced. nCipher said that it has recruited key members of the NeoScale team and plans to continue operations from the same Milpitas facility.
http://www.ncipher.com/company/news/news.php
http://www.neoscale.com/

Mountain View-Based Kosmix Raises $10 Million in Funding

Mountain View, Calif. -- Kosmix, a Mountain View-based developer of search engine technology, said that it has landed $10 million in a new round of funding from new investor DAG Ventures and previous investors Accel and Lightspeed. The company said that it will use the funds to accelerate its growth. Kosmix's health consumer site, www.righthealth.com, now receives over 3.9 million unique visitors a month according to Quantcast, and its newly released consumer auto site, www.rightautos.com, attracts more than 2 million unique visitors a month. The company said that its goal is to eventually create a "start page for every topic on the web." Kosmix said that its algorithm-based categorization engine has been in development for three years.
http://www.kosmix.com
http://www.kosmix.com/html/pr/120507.html

San Mateo-Based MixerCast Lands $4.25 Million

San Mateo, Calif. -- MixerCast, the San Mateo-based developer of an online media-sharing service, has received $4.25 million of a planned $5.6 million second round of funding, PEHub.com reported. Intel Capital and previous investor ComVentures participated in the round. MixerCast's service allows users to add images, audio and video to web-based slide shows, then update the shows through RSS feeds. Users also can share in revenue generated when content featured in their shows is purchased through an attached widget. The company previously raised $2.6 million in December 2005.
http://www.pehub.com/article/articledetail.php?articlepostid=9254 
http://www.mixercast.com 

San Francisco-Based Adknowledge Acquires Cubics

San Francisco -- Adknowledge, the San Francisco-based operator of a behavioral targeting online ad network, said that it has acquired Cubics, the Canadian developer of an online ad network for the Facebook developer community. Financial terms of the deal were not disclosed. Cubics said that it now represents the ad inventory for over 500 Facebook application developers. The company also recently added support for Friendster, and plans to add Bebo in the coming weeks. Adknowledge said that the acquisition will allow it enter the social media space.
http://www.adknowledge.com/press120607.php 
http://www.cubics.com 

Study: Airlines Will Need to Upgrade Data Services to Retain Travelers

Arlington, Va. -- Airline passengers will send more than 60 million text messages in 2010, according to a new study by Freesky Research. "In flight messaging tools will soon be an essential component of serving business travelers, and airlines will ultimately be forced to improve cabin data services in order to retain business customers," said the firm. Study author David Gross said that large airlines will feel pressure from low cost carriers, many of which currently are developing text and email services, as well as from large business jet owners, many of which already offer their employees Internet access on board company planes. Freesky also said that airlines are likely to develop new pricing models for in-flight connectivity, such as plans that are pre-paid with frequent flier models and offered with annual subscriptions. 
http://www.freeskyresearch.com
http://media.prnewswire.com/en/jsp/myPRNJ.jsp?profileid=1140074&resourceid=3625162

Sunnyvale-Based Mobius Microsystems Raises $10.22 Million

Sunnyvale, Calif. -- Mobius Microsystems, a developer of precision timing integrated circuits, said on Monday that it has raised $10.22 million in its second round of funding from previous investors Foundation Capital, Menlo Ventures and RPM Ventures. The company said that it will use the proceeds to expand its operations in support of the release of its CMOS Harmonic Oscillator -- a timing device Mobius said will replace quartz-based crystals and crystal oscillators. "We’re on track to introduce our disruptive technology in early 2008, and move aggressively into the commercialization phase," said Ashok Dhawan, the CEO of Mobius.
http://www.mobiusmicro.com/
http://biz.yahoo.com/bw/071210/20071210005255.html?.v=1

Palo Alto-Based HP to Acquire NUR Macroprinters for $117.5 Million

Palo Alto, Calif. -- Looking to broaden its presence in the wide-format printing market, Palo Alto-based Hewlett-Packard (HP) said on Monday that it will pay $117.5 million to acquire Israel's NUR Macroprinters, a manufacturer of industrial wide-format digital inkjet printers. The company's printers are used by commercial printing companies, sign printers, screen printers, billboard and media companies, photo labs and digital print service providers. HP said that the acquisition will expand its graphic arts portfolio. "This acquisition marks another milestone in HP's growth strategy to ignite the transition from converting analog pages to digital pages," said Vyomesh Joshi, the executive vice president of HP's Imaging and Printing Group.
http://www.hp.com/go/graphicarts
http://www.hp.com/hpinfo/newsroom/press/2007/071210d.html

S.F.-Based Music Intelligence Solutions Lands $7 Million from Angels

San Francisco -- Music Intelligence Solutions, a developer of technology designed to enhance digital music and video through discovery, automated programming, market prediction and community networking tools, said that it has raised $7 million in a new round of funding led by angel investors. CEO David Meredith said that the funding will support the global rollout of the company's technology. The news comes a month after Music Intelligence Solutions hired Meredith, a former senior vice president and general manager at VeriSign.
http://www.uplaya.com
http://www.uplaya.com/news.html

New Enterprise Associates Invests in TechForward

Menlo Park, Calif. -- Venture capital firm New Enterprise Associates (NEA) said on Monday that its Menlo Park office has invested an undisclosed amount in Los Angeles-based TechForward, a provider of financial services within the consumer electronics industry. The company said that it will use the funds to promote its Guaranteed Buyback program with retailers and manufacturers. The program allows consumers to lock in trade-in values for their electronics, then later return their devices to the point of purchase for cash or store credit that can be applied to a future purchase.
http://www.nea.com
http://biz.yahoo.com/bw/071210/20071210006160.html?.v=1

S.F.-Based Recurrent Energy Closes $200 Million Solar Energy Fund

San Francisco -- Recurrent Energy, a San Francisco-based builder, owner and operator of solar power systems on clients' rooftops, said on Monday that it has closed a new $200 million staged solar project fund with Morgan Stanley. The fund will finance $100 million in solar power projects in 2008, as well as another $100 million in 2009. Recurrent sells solar electricity from its projects to institutional property owners and their tenants.
http://www.recurrentenergy.com
http://biz.yahoo.com/bw/071210/20071210005217.html?.v=1

San Jose-Based Global Semiconductor Alliance Names Award Winners

San Jose, Calif. -- The San Jose-based Global Semiconductor Alliance (GSA), an industry association known until recently as the Fabless Semiconductor Association, has announced the winners of its 2007 awards. The awards, including Most Respected Private Company, Emerging Public Company and Public Fabless Company, were selected by members. There were nearly a dozen awards, in all. A complete list of winners is available at the link below.
http://www.gsaglobal.org/news/article.asp?article=2007/1210

Macrovision to Acquire Gemstar-TV Guide in $2.8 Billion Deal

Santa Clara, Calif. -- Shares of Santa Clara-based Macrovision plunged 21% on Friday after the developer of media anti-piracy and distribution technologies said that it will acquire Los Angeles-based Gemstar-TV Guide in a cash and stock deal worth $2.8 billion. Under the deal, expecting to close early in the second quarter, a new holding company will own both companies, with Macrovision stockholders owning approximately 53% and Gemstar-TV Guide stockholders owning 47%. Gemstar-TV Guide, the publisher of TV Guide and provider of electronic TV listings, has struggled financially in recent years, and announced last summer that is would review its strategic alternatives. The companies said that they now will be able to offer combined products that, for instance, allow consumers to pull up a guide on their TV and receive information about their favorite TV shows, read movie reviews, view personal photos or tap into their music libraries. "Users today are demanding an open, easy to use and integrated set of capabilities that deliver on the promise of the digital home," said Fred Amoroso, the president and CEO of Macrovision. "We are now in a position to accelerate our vision."
http://www.macrovision.com/company/newscenter/pressreleases/1434_7820.htm http://www.macrovision.com
http://www.gemstartvguide.com/

S.F.-Based Music Intelligence Solutions Raises $7 Million

San Francisco -- Music Intelligence Solutions, a San Francisco-based developer of digital music and media discovery services, said that it has raised $7 million in a new round of funding from angel investors. The company said that it will use the proceeds to roll out its services worldwide, as well as to launch personalization and community networking capabilities. Led by CEO David Meredith, Music Intelligence makes consumer software for music and media discovery, and provides services for artists and marketers. One of its services, called Hit Song Science, attempts to predict the commercial success of music by comparing attributes with a proprietary database.
http://www.marketwire.com/mw/release.do?id=799618 
http://www.uplaya.com 

California Names Teri Takai as First Cabinet-Level CIO

Sacramento, Calif. -- Gov. Arnold Schwarzenegger has named Teri Takai as California's first cabinet-level CIO. Since 2003, Takai had served as director of the Michigan Department of Information Technology (MDIT), where she also served as that state's CIO. The appointment was applauded by AeA, the nation's largest high-tech trade association, which sponsored a bill that led to the creation of the position. AeA said that the position will its members, including many long frustrated by their inability to offer IT products and services to the state government.
http://www.aeanet.org/PressRoom/prac_120607_CAstateCIO.asp

San Francisco-Based Red Room Raises $1.25 Million in Funding

San Francisco -- Red Room Omnimedia has raised $1.25 million from angel investors including Craigslist founder Craig Newmark and Chronicle Books CEO Nion McEvoy, and launched a private beta test of its new social network for authors, Red Herring reported. The company said that the site will feature "all the world's greatest writers in one room -- from Pulitzer Prize-winning authors to the editors of groundbreaking underground literary journals." Initial participants will include Maya Angelou, Amy Tan, Alice Walker, James Patterson, Salman Rushdie and Norman Mailer, who approved the partnership before his death, according to Red Herring.
http://www.redherring.com/Home/23248 
http://www.redroom.com 

Dun & Bradstreet Acquires AllBusiness.com for $55 Million

San Francisco -- Dun & Bradstreet (D&B), the New Jersey-based provider of business information, announced that it has acquired AllBusiness.com, a San Francisco-based online media and e-commerce company, for $55 million. D&B said that the acquisition will help it to expand its Internet business. AllBusiness generates Internet traffic by publishing content and offering engine optimization services. The company has an existing base of more than 2 million unique monthly visitors and is supported through online display advertising. AllBusiness is expected to generate about $10 million of revenue for D&B in 2008.
http://investor.dnb.com/phoenix.zhtml?c=123817&p=irol-newsArticle&ID=1084117&highlight=
http://www.allbusiness.com

Palo Alto-Based Pelikan Raises $69M, Secures $20M Loan

Palo Alto, Calif. -- Pelikan Technologies, a Palo Alto-based developer of hand-held medical diagnostic and monitoring devices, said on Thursday that it has raised $69 million in its sixth round of funding, led by Clarus Ventures. Other investors included HBM BioVentures, Global Life Science Ventures, Mannheim Holdings and Bio*One Capital. In addition to the equity financing, Pelikan said that it has been approved for a $20 million venture loan facility from General Electric Capital Corporation and Oxford Finance. The company said that it will use a portion of the proceeds to commercialize its electronic lancing device. The device already has been launched in Australia and Europe, and will be launched in the U.S. early next year.
http://www.pelikantechnologies.com/
http://biz.yahoo.com/prnews/071206/aqth013.html?.v=31

Cupertino-Based Verigy to Acquire Pleasatnon-Based Inovys

Cupertino, Calif. -- Verigy, a Cupertino-based maker of test systems used by flash memory and system-on-chip manufacturers, said on Thursday that it will acquire Pleasanton-based Inovys, a developer of yield enhancement, failure analysis and design debug tools for the semiconductor industry. Financial terms of the deal, expected to close in 30-60 days, were not disclosed. Launched in 1999, Inovys currently has more than 50 customers.
http://www.inovys.com
http://www.verigy.com
https://www.verigy.com/portal/page/portal/Internet%20Highlights/Highlights%20(Final)/Press%20Release%20Repository/Verigy%20Signs%20Agreement%20to%20Acquire%20Inovys

Telefonica Invests in Sunnyvale-Based GestureTek

Sunnyvale, Calif. -- GestureTek, a Sunnyvale-based developer of gesture-recognition technology used in camera phones for navigation and gaming applications, said that it has received a minority investment from Spanish telecom giant Telefonica. The companies also will work together to further develop and commercialize GestureTek's applications, for both mobile and other platforms. GestureTek's EyeMobile software uses a mobile phone's camera to recognize and respond to hand and body movements, allowing users to navigate menus and play games by tilting or moving their phones. The technology also powers the EyeToy USB camera accessory for Sony's PlayStation consoles. The company said that it will use the new investment to finance business expansion and market growth.
http://www.gesturetek.com
http://biz.yahoo.com/cnw/071205/ca_gesturetek_telefon.html?.v=1

Palo Alto-Based Facebook to Alter Controversial Marketing Tool

Palo Alto, Calif. -- Facebook, the Palo Alto-based online social network, said that it will make its controversial Beacon marketing feature completely optional for the service's 55 million members. A number of user expressed privacy concerns about the feature, which announces members' purchases made at partner retail sites to friends on their network. Several advocacy groups also had complained to the Federal Trade Commission. "We've made a lot of mistakes building this feature, but we've made even more with how we've handled them," Facebook co-founder and CEO Mark Zuckerberg wrote on the company's blog. "We simply did a bad job with this release, and I apologize for it." The company has released a privacy control tool (available at a link below), which Facebook members can use to "turn off Beacon completely."
http://blog.facebook.com/blog.php?post=7584397130 
http://www.facebook.com/privacy.php?view=unconfirmed_actions 

Global VC Investments On Pace for Highest Total in Six Years

San Francisco -- Venture capital activity so far this year in the U.S., Europe, China and Israel is on pace to post its highest annual total since 2001, according to a new report from Dow Jones VentureOne and Ernst & Young. VCs had invested more than $30 billion through the first nine months of 2007, and analysts predict that figure will reach $40 billion by year's end. The increase has been driven by strong growth in the cleantech and medical device markets. Investments in medical device companies already have surpassed the previous annual record of $3.4 billion, with investments in cleantech rising 44% fro a year ago. "The healthy exit environment, both for IPOs and for mergers and acquisitions, is spurring investment in a number of areas," said Gil Forer, the global director of Ernst & Young's Venture Capital Advisory Group.
http://www.ventureone.com/
http://biz.yahoo.com/prnews/071205/new106.html?.v=25

Report: Mobile to Account for 30% of Music Retail Value by 2011

Los Angeles -- Music delivered to mobile phones through operators' networks will grow to represent almost 30% of global recorded music retail value by 2011, according to a new report firm Understanding & Solutions. Currently, the firm estimates that mobile music represents around 13% of global recorded music retail value. "Alongside online, mobile music is essential to the future of the music industry," said David Sidebottom,a consultant for the firm. Most new handsets feature music functionality, but interfaces and software still need improvement, the firm said.
http://www.uands.com/downloadarticle.asp?id=57 (PDF)

San Mateo-Based NetSuite to Raise Up to $99.2 Million in IPO

San Mateo, Calif. -- NetSuite, a San Mateo-based provider of web-based enterprise resource planning (ERP) and customer relationship management (CRM) software to small and medium-sized businesses, said on Wednesday that it plans to raise up to $99.2  million in its forthcoming initial public offering (IPO). In an amended registration with the SEC, the company said that it plans to sell 6.2 million shares for $13-$16 each, listing its stock under the symbol "N" on the New York Stock Exchange. NetSuite, which  offers its software as part of a subscription service, said that it generated $76.8 million in revenue during the first nine months of this year, up from $67.2 million for all of last year and $17.7 million three years ago.
http://www.netsuite.com
http://www.sec.gov/Archives/edgar/data/1117106/000119312507259118/ds1a.htm

Nokia Acquires Palo Alto-Based Mobile PC Access Firm Avvenu

Palo Alto, Calif. -- Nokia, the Finnish mobile equipment giant, said that it will acquire Palo Alto-based Avvenu, developer of a service that offers mobile access to personal files stored on a PC, including iTunes music libraries. Financial terms of the deal were not disclosed. Founded in 2004, Avvenu lets users search, access and share PC files remotely, even when the PC is not on or connected to the Internet. Nokia said that the acquisition will extend its mobile services for businesses beyond email.
http://www.nokia.com/A4136001?newsid=1172938 
http://www.avvenu.com

Fremont-Based NET Acquires Quintum Technologies

Fremont, Calif. -- Network Equipment Technologies (NET), a Fremont-based provider of voice and data communications equipment used in multi-service networks, said on Wednesday that it has acquired New Jersey-based Quintum Technologies, a developer of Internet telephone switches and gateways, for $41 million in cash and stock. NET said that the acquisition broadens his company's Internet telephone portfolio. "Quintum's technology and product offerings enhance our ability to satisfy the requirements of enterprise and government customers, and to address the converged unified messaging and unified communications markets," said Nicholas Keating Jr., the president and CEO of NET.
http://www.quintum.com/
http://www.net.com/news_events/0e63f60a-1468-4b83-8aff-66cb85f70203.shtml

San Jose-Based Altera to Cut 65 Jobs as Part of Restructuring

San Jose, Calif. -- Altera, a San Jose-based developer of programmable computer chips, said on Wednesday that it plans to cut 65 jobs -- about 2% of its staff -- as part of a larger restructuring. The company said that it expects to incur $4-$6 million in charges as a result of the moves, but estimates they will save it about $10 million a year. The moves come as Altera expects fourth-quarter sales to be as much as 4% lower than last quarter, "Sales into the communications market are somewhat stronger than earlier guidance, while sales into the consumer market are somewhat weaker than anticipated," the company said in a statement.
http://biz.yahoo.com/bw/071205/20071205005940.html?.v=1
http://www.altera.com

Cupertino-Based TuVox Lands $20 Million in Funding

Cupertino, Calif. -- TuVox, a Cupertino-based developer of web-based speech applications used to improve customer service, said on Tuesday that it has raised $20 million in a new round of funding, which the company plans to use to both accelerate the expansion of its core business and invest in new areas of growth. Participants included new investor Glynn Capital Management and previous investors Norwest Venture Partners, Foundation Capital, Granite Ventures and Adobe Ventures. "Having achieved positive cash flow, this new financing will take us to the next level as we continue to explore and capitalize on opportunities to expand our market presence," said Larry Miller, the company's president and CEO. TuVox's customers include 1-800-Flowers.com, American Airlines, Apple, AMC Theatres, Canon, Virgin America and Wachovia.
http://www.tuvox.com/
http://www.tuvox.com/press_center/IVR/ivr_solutions/voice_self_service/press_releases/TuVox_Raises_$20_Million_of_Expansion_Capital.html

Cupertino-Based Adomo Raises $15 Million in First Round

Cupertino, Calif. -- Adomo, a Cupertino-based developer of unified messaging platforms for large organizations, said on Tuesday that it has raised million in its first round of funding, co-led by Menlo Park-based Menlo Ventures and Storm Ventures. The company said that it will use the proceeds to expand its product development, marketing and sales efforts. Adomo said that its technology is built to work on existing infrastructure, including any telephony or data networks.
http://www.adomo.com/
http://biz.yahoo.com/iw/071204/0335650.html

Sunnyvale-Based VirtualLogix Lands Investment from TI

Sunnyvale, Calif. -- Five months after raising $16 million in its second round of funding, Sunnyvale-based VirtualLogix, a developer of virtualization technology for connected devices, said on Tuesday that it has landed an unspecified equity investment from Texas Instruments (TI). The investment is part of a larger collaboration between the two companies, with VirtualLogix aligning its software roadmap with TI's multicore semiconductors technology. The deal underscores a trend in which virtualization is moving from the data center to everyday connected devices such as wireless infrastructure communications products, media gateways, digital video and mobile devices. VirtualLogix's other investors include Atlas Venture, Cisco Systems, DFJ Esprit, Index Ventures and Intel Capital.
http://www.virtuallogix.com/
http://biz.yahoo.com/bw/071204/20071204005357.html?.v=2

San Francisco-Based Zipidee Acquires TotalVid.com

San Francisco -- Zipidee, the San Francisco-based developer of a digital content marketplace where users and media companies sell original video, audio, e-books and mobile content, announced on Tuesday that it has acquired TotalVid.com from Landmark Communications. Financial terms of the deal were not disclosed. Henry Wong, the CEO of Zipidee, said that the acquisition gives his company "the largest digital library of educational, instructional and hard-to-find enthusiast videos, as well as a dedicated customer base of paying, content hungry consumers." Zipidee said that it now offers more than 10,000 titles for sale in more than 100 categories like action sports, martial arts, instructional, anime and travel. Zipidee will maintain the current subscription pricing model for existing customers of TotalVid.com and VideoWaza.com, while content from those services will also be made available for rental or download at Zipidee.com.
http://www.totalvid.com 
http://www.zipidee.com
http://biz.yahoo.com/bw/071204/20071204005123.html?.v=1

San Francisco-Based WebSky Sells Argentine Unit to NextWave

San Francisco -- WebSky, a San Francisco-based developer of broadband spectrum, said on Tuesday that it has sold its Argentine subsidiary to San Diego-based NextWave Wireless, a provider of mobile broadband products and technologies. Financial terms of the deal were not disclosed. WebSky Argentina operates Infotel Argentina and Callbi, companies whose assets include telecommunications licenses and an aggregate of 42 MHz of spectrum covering the Buenos Aires metro region. WebSky also said that it has signed a deal with NextWave Argentina to support its operations in the country.
http://www.websky.us/
http://au.biz.yahoo.com/071204/43/1inoe.html

Palo Alto-Based StemCells Considering Acquisition of Progenitor

Palo Alto, Calif. -- StemCells, a Palo Alto-based biotechnology company, said that it is exploring the acquisition of Progenitor Cell Therapy (PCT), a New Jersey-based provider of cell processing services. StemCells said that the companies are currently negotiating terms for a possible deal. The company also has agreed to make a secured loan of $3.8 million to PCT "to bridge some of its planned capital needs as it pursues its own growth strategy."
http://www.stemcellsinc.com
http://www.progenitorcelltherapy.com

San Francisco-Based Consorte Media Lands $7 Million

San Francisco - Consorte Media, a San Francisco-based provider of online marketing services for the Hispanic market, announced on Monday that it has raised $7 million in its second round of venture capital financing, led by new investor Sutter Hill Ventures. Previous investor Mayfield Fund also participated. Consorte said that its ad platform, which serves customers including Best Buy, Monster, SendMe Mobile and Dealix, has surpassed 1 billion impressions and traffic of 18 million unique visitors a month.
http://www.prweb.com/releases/consorte/advertising/prweb573497.htm 
http://www.consortemedia.com