Silicon Valley Wire

Sourcefire Rejects Takeover Bid by Barracuda Networks

Campbell, Calif. -- Sourcefire, a Maryland-based developer of open source intrusion detection technology, said that its board of directors has rejected an unsolicited takeover bid by Campbell-based Barracuda Networks, a maker of email and web security appliances. Barracuda late Thursday revealed an offer to acquire the company for $7.50 a share, or about $187.5 million. "We hope to work together with Sourcefire and its board of directors to negotiate a mutually beneficial agreement for our respective stakeholders," said Dean Drako, Barracuda's president and CEO. In a letter to Sourcefire CEO Wayne Jackson and the company’s board, Drako said that a recent decline in the price of the Maryland firm's stock -- which closed on Thursday about $10 off its 52-week high -- reflects "execution challenges" faced by its management, as well as its "inaction" in dealing with looming litigation from Trend Micro. "Barracuda Networks is uniquely positioned to address and remedy both of these conditions," said Drako. In response, however, Sourcefire said that the offer "substantially undervalues" the company.
http://biz.yahoo.com/bw/080529/20080529006386.html?.v=1
http://biz.yahoo.com/bw/080530/20080530005275.html?.v=1
http://www.sourcefire.com/

Welocalize Acquires Pleasanton-Based Transware

Pleasanton, Calif. -- Welocalize, a Maryland-based provider of services that help clients localize content and software for international markets, said that it has acquired Pleasanton-based counterpart Transware for an undisclosed sum. Founded in 1996, Transware specializes in the translation and localization of media-rich content such as web sites and e-learning applications. The company, which also has operations in Ireland, boasts a client list that includes Cisco, Dell, Guidant, Raytheon and Harvard Business School Publishing. Smith Yewell, the CEO of Welocalize, said that his company plans to make a "significant investment" to expand the capabilities of Transware's translation process automation technology.
http://www.transware.com
http://www.welocalize.com/english/news/DR.php3?Article=release064.html

Blockbuster to Test In-Store Movie Download Kiosks

Dallas, Texas -- Blockbuster, the chief rival of Los Gatos-based online DVD service Netflix, said that it will begin testing in-store kiosks that will allow customers to download full-length movies to portable devices, the Associated Press reported. The kiosks, developed by NCR, can deliver movies to portable devices in about two minutes -- a wait the company hopes to reduce to 30 seconds. Initially, only Archos portable devices will be supported, though Blockbuster said that it is aiming to make the kiosks compatible with many devices. The test is expected to launch in the next three weeks.
http://biz.yahoo.com/ap/080528/blockbuster_kiosk.html 
http://www.blockbuster.com 

San Carlos-Based Natus Raises $84.3M, Acquires Sonamed

San Carlos, Calif. -- Natus Medical, a San Carlos-based maker of medical devices for newborn care, said on Thursday that it has raised $84.3 million through a public offering. The company also has paid $9 million in cash to acquire Massachusetts-based Sonamed, a manufacturer of technology that helps medical practitioners screen for hearing loss in newborns. Jim Hawkins, the president and CEO of Natus, said that he expects Sonamed's Clarity Screener to "further fill out our product line in newborn hearing screening." Natus last week priced 4.6 million of its shares at $19.50 each in the offering.
http://investor.natus.com/phoenix.zhtml?c=129675&p=irol-newsArticle&ID=1151067&highlight=
http://investor.natus.com/phoenix.zhtml?c=129675&p=irol-newsArticle&ID=1151812&highlight=
http://www.natus.com/

comScore Acquires M:Metrics for $44.3 Million

Reston, Va. -- comScore, the Virginia-based provider of Internet audience measurement services, said that it has paid $44.3 million in cash to acquire Seattle-based M:Metrics, a provider of mobile web measurement services. Both companies have offices in the Bay Area, with comScore's in South San Francisco and M:Metrics' in San Francisco. M:Metrics offers three primary measurement products to its 180 clients, including a syndicated monthly online survey that captures overall mobile phone usage, an on-device meter that measures the mobile Internet behavior and media consumption of smartphone users and a tracking service for mobile advertising. "With the substantial growth of 3G devices and Internet friendly handsets, we believe we are now at an inflection point in Internet usage on mobile devices," said Magid Abraham, comScore's president and CEO. "Our acquisition… makes comScore an immediate market leader in this space." M:Metrics co-founders Will Hodgman Seamus McAteer will join comScore's  management team.
http://www.mmetrics.com/
http://www.comscore.com
http://www.comscore.com/press/release.asp?press=2244

Mountain View-Based Skyfire Labs Raises $13 Million in Second Round

Mountain View, Calif. -- Skyfire Labs, the Mountain View-based developer of a mobile browser that lets users experience the PC web on their handsets, said on Wednesday that it has raised $13 million in its second round of funding, led by Lightspeed Venture Partners. Previous investors Matrix Partners and Trinity Ventures also participated in the round, which the company will use to continue the rollout of its flagship browser. "With these funds, we are poised to bring Skyfire to a large number of handsets and launch outside the U.S.," said CEO Nitin Bhandari. First introduced in January, Skyfire's free downloadable browser, currently in private beta, allows users to view the full versions of sites like YouTube, Facebook and Last.fm from their mobile phones, at speeds comparable to the PC. Skyfire Labs was founded by Bhandari and CTO Erik Swenson in 2006, and had been in stealth mode under the name DVC Labs until January. The company now has raised $17.8 million in venture capital to date.
http://www.skyfire.com

Palo Alto-Based VMware to Acquire San Mateo's B-hive Networks

Palo Alto, Calif. -- VMware, a Palo Alto-based developer of virtualization software, said on Wednesday that it will acquire B-hive Networks, a San Mateo-based maker of software designed to help users manage the performance of applications. Financial terms of the deal, expected to close after mid-year, were not disclosed. VMware said that the acquisition will allow it to offer proactive performance management and service level reporting for applications running within virtual machines, on both servers and desktops. Earlier this year, VMware also acquired Thinstall, a San Francisco-based developer of application virtualization software.
http://www.b-hivenetworks.com/
http://www.vmware.com
http://www.vmware.com/company/news/releases/bi_hive.html

San Mateo-Based RockYou Raises $1 Million in Funding

San Mateo, Calif. -- RockYou, a San Mateo-based developer of social applications and widgets that enable photo slideshows, glitter text, voicemail and other features, has raised $1 million in new financing from Doll Capital Management (DCM), VentureBeat reported. RockYou reportedly was seeking up to $70 million at a $400 million valuation, but has temporarily settled for the $1 million infusion while it ponders whether to pursue a larger funding round or sell the company. Founded in 2006, RockYou claims more than 35 million users, and serves over 180 million widget views a day. The company has to date raised a total of $13.5 million, including an $11 million round last year.
http://www.rockyou.com 
http://venturebeat.com/2008/05/24/big-widget-company-rockyou-raises-a-mere-1m-takes-stock/

Alviso-Based TiVo to Deliver Disney Movies Directly to TVs

Alviso, Calif. -- TiVo, the Alviso-based provider of digital video recorders and programming services, announced on Wednesday that it will make Disney movies available for download to broadband-connected TiVo digital video recorders directly through the television. The movies will be available for 24-hour rentals beginning later this year through an agreement between Disney-ABC and CinemaNow, an online movie download service that has a DVR download deal with TiVo. TiVo offers more than 30,000 video titles for download to its set-tops over a broadband connection, from partners including Amazon Unbox, Music Choice and some 50 others.
http://biz.yahoo.com/prnews/080528/aqw056.html?.v=54   
http://www.tivo.com

Report: 10M Homes "Completely Unready" for DTV Transition

New York -- Ten million U.S. households are "completely unready" for next year's transition to digital television, and nearly 25 million will have at least one TV that will stop functioning, The New York Times reported, citing new data from Nielsen Media Research. Analog TVs not attached to a cable or satellite service will lose their signals next February, unless they are hooked to special digital converters. The report found that Hispanics, African-Americans and younger households are expected to be disproportionately affected by the transition, while secondary sets, in the bedroom or kitchen, are more likely to be unready.
http://www.nytimes.com/2008/05/27/business/media/27adcol.html 
http://www.nielsenmedia.com 
http://www.dtv2009.gov 

Menlo Park-Based Openlane Raises $25 Million in Funding

Menlo Park, Calif. -- Openlane, the Menlo Park-based developer of an online auction site where automotive dealers buy and sell wholesale vehicles, said on Monday that it has raised $25 million in a new round of funding, led by Meritech Capital Partners. Previous investors August Capital, RPM Ventures and Zilkha Venture Partners also participated. The nine-year-old company, which until March was known as ATC-Onlane, said that it will use the proceeds to expand in line with growing demand for its online wholesale auction services. Openlane said that it sold more than 270,000 vehicles online in last year, growing its revenue 60% over 2006.
http://www.openlane.com/
http://biz.yahoo.com/bw/080527/20080527005289.html?.v=1

Report: San Mateo-Based Akimbo Shutting Down

San Mateo, Calif. -- Akimbo, a San Mateo-based maker of broadband set-top boxes that deliver video to televisions, has terminated most of its staff and is shutting down, VentureBeat reported. The company recently had raised $4 million in new funding to help take it in a new direction. According to a report in Demo.com, however, it was unable to raise another $4 million from outside investors, and had laid off 14 employees while it hunts for a buyer. "We went to market in February with a new strategy that was very exciting and very well received," Akimbo CFO Peter Shantel told Demo.com. "But the [video-on-demand] market is very crowded and there's a credit crunch. The board thought because we couldn't raise additional funds that we need to look for a strategic partner to buy us." Founded in 1999, Akimbo started off selling set-tops, but recently switched gears to become a white label video provider. The company had to date raised around $47 million in financing.
http://venturebeat.com/2008/05/22/akimbo-online-video-delivery-company-throws-in-towel-for-good/
http://www.demo.com/community/?q=node/72626 
http://www.akimbo.com 

Google: Viacom's YouTube Suit Threatens Internet Freedom

Mountain View, Calif. -- Lawyers for Mountain View-based Google said that media conglomerate Viacom's $1 billion lawsuit against the company "threatens the way hundreds of millions of people legitimately exchange information," the Associated Press reported. Google is claiming that its YouTube online video unit should not be held liable for what its users post, and should be protected under the same "safe harbor" provision of the Digital Millennium Copyright Act (DMCA) that applies to Internet service providers. The company also said that YouTube "goes far beyond its legal obligations in assisting content owners to protect their works." For its part, Viacom said that it found more than 150,000 unauthorized clips of its content on YouTube, including bits of "South Park," "MTV Unplugged" and the documentary "An Inconvenient Truth."
http://ap.google.com/article/ALeqM5gFJIDFx4LzK1pGKWT0NpWgkN-6mQD90THHMO0
http://arstechnica.com/news.ars/post/20080527-youtube-viacom-dumping-piranhas-in-our-safe-harbor.html

San Francisco-Based Ecast Raises $12.3 Million

San Francisco -- Ecast, a San Francisco-based maker of broadband digital jukeboxes found in bars and restaurants, has secured $12.3 million in its fourth round of venture capital financing, PEHub.com reported. The company reportedly is planning to cap the round At $18.6 million. Shareholders in the company include Focus Ventures, Mobius Venture Capital, Crosslink Capital, DCM and El Dorado Ventures. Ecast has to date deployed its touchscreen jukeboxes in over 10,000 U.S. locations. The devices also are capable of displaying interactive advertising, and have been used by record labels for such promotions as pre-release distribution of new singles.
http://www.pehub.com/article/articledetail.php?articlepostid=12324 
http://www.ecastnetwork.com   

Dan Coury Departs as CEO of Santa Clara-Based LiveDeal

Santa Clara, Calif. -- LiveDeal, the Santa Clara-based developer of a combined local online classifieds and yellow pages marketplace, said on Tuesday that Dan Coury has departed as its CEO, and named company founder Rajesh Navar as its chairman of the board. The company said that it has launched a search for a replacement for Coury. It offered new official explanation for his departure. LiveDeal also named Mike Edelhart, the founder and managing director of First 30 and former CEO of Inman News, and Gregory LeClaire, the CEO of Clearone Communications, to its board.
http://www.livedeal.com
http://www.businesswire.com/news/home/20080527005702/en

San Jose-Based Altierre Adds Another $8 Million to Third Round

San Jose, Calif. -- Two months after initially announcing $22 million in its third round of funding, San Jose-based Altierre, a developer of wireless technology that allows retailers to more easily manipulate prices and shelf promotions, said on Friday that it has raised another $8 million, completing the round at $30 million. Previous investors the D. E. Shaw group and Labrador Ventures participated in the second tranche, which increased the company total backing to $60 million since its inception in 2003. "We are seeing substantial customer interest in our solution, and this additional funding will further enable us to scale toward multiple implementations in the near future," said Sunit Saxena, the company's chairman and CEO. Altierre has been co-developing its hardware and software platform, which utilizes radio frequency identification (RFID) technology and electronic labels, with several of the country's largest grocery chains.
http://www.altierre.com
http://www.altierre.com/pr_fundingclose.html 

29 Finalists Named for Northern Calif. Entrepreneur Of The Year

San Francisco -- Executives from such local technology companies as Abraxis, eHealth and Telegent Systems are among the 29 finalists for Ernst & Young's 2008 Northern California Entrepreneur Of The Year awards. An awards ceremony to announce the winners -- in nine categories -- is scheduled for June 21 in San Francisco. Winners will be eligible for consideration in Ernst & Young's national Entrepreneur of The Year program. The complete list of finalists is available at the link below.
http://www.ey.com/global/content.nsf/US/SGM_-_EOY_-_Regional_-_PNW_-_Northern_California_-_Overview

Palo Alto-Based HP Overtakes IBM in Server Market

Palo Alto, Calif. -- Palo Alto-based Hewlett-Packard overtook IBM in worldwide server market share during the first quarter, according to a new study by research firm Gartner. HP booked $4 billion in server revenue during the quarter, for a 29.6% market share, 0.7% ahead of IBM, which recorded $3.9 billion. The numbers flip-flopped from a year ago, when IBM held a 1.5% lead over HP. Gartner said that HP saw increases in both its ProLiant and HP Integrity brands, offsetting some revenue declines in its other brands. HP's revenue share in the blade server market increased by over 13%,  compared to the same quarter last year. Dell and Sun Microsystems ranked third and fourth, respectively, though well behind the two market leaders.
http://www.gartner.com/it/page.jsp?id=677010

San Carlos-Based Natus Medical Prices $78 Million Offering

San Carlos, Calif. -- Natus Medical, a San Carlos-based maker of medical devices for  newborn care, said on Friday that it will make around $78 million through a public offering. The company has priced 4 million shares at $19.50 each in a deal expected to close next Wednesday. The news sent company shares up more than 6% in Friday's late trading on the Nasdaq.
http://biz.yahoo.com/bw/080523/20080523005069.html?.v=1
http://www.natus.com/

Redwood City-Baaed Flock Raises $15 Million in Fourth Round

Redwood City, Calif. -- Flock, the Redwood City-based developer of a social web browser built on Firefox architecture, said on Thursday that it has raised $15 million in its fourth round of funding, led by Fidelity Ventures. All of the company's previous lead investors, including Bessemer Venture Partners, Catamount Ventures and Shasta Ventures, also participated. The company said that it will use the proceeds to expand its research and development and marketing activities, as well as to expand into new international markets. Led by former Yahoo executive Shawn Hardin, who serves as the company's CEO, Flock has seen its user base grow by more than 250% since January. The company also won a Webby Award in the Social Networking category, beating out Facebook and Bebo. 
http://www.flock.com
http://biz.yahoo.com/bw/080522/20080522005246.html?.v=1

Redwood City-Based EA to Acquire Hands-On Mobile Korea

Redwood City, Calif. -- Electronic Arts (EA), the Redwood City-based developer and publisher of video games, said on Thursday that it will acquire the assets of Hands-On Mobile Korea, the Korean mobile game development unit of the U.S.-based company. Financial terms of the deal were not disclosed. Hands-On Mobile Korea, best know for its mobile roleplaying title, "Heroes Lore," will become EA Mobile Korea and play a key role in EA's mobile development and publishing growth plans in Asia. The company's U.S. parent, Hands-On Mobile, was established in 2001 and distributes mobile content to over 200 carriers in 60 countries.
http://biz.yahoo.com/bw/080521/20080521006382.html?.v=1
http://www.handson.com

Apple Reportedly to Launch 3G iPhone on June 9

Cupertino, Calif. -- Apple will simultaneously announce and launch its next-generation 3G iPhone worldwide on June 9, according to a report in Gizmodo, citing "someone very, very close" to the situation. CEO Steve Jobs is scheduled to deliver the keynote address at Apple's WorldWide Developer Conference in San Francisco that day. Another source told Gizmodo that the new model no longer will tie carriers and retailers to a fixed price point. 
http://gizmodo.com/391960/iphone-3g-launch-date-confirmed 
http://developer.apple.com/wwdc 

CityMint Launches Online and Mobile Food Ordering Service in S.F.

San Francisco, Calif. -- CityMint, a start-up co-founded by cousins Frank Kuo and David Chang, said on Thursday that it has launched a new service allowing users to order food from 80 San Francisco restaurants either online or through a mobile phone. Customers set up an account online, then search by cuisine or delivery area. When ready to order, they use interactive menus and click on the food items they desire. Each order is then verified, with the diner receiving confirmation and approximate time for food pickup or delivery. Payment is automated through the service. Pasadena-based CityMint said that it plans to continue adding area restaurants, as well as expand to additional metro areas later this year.
http://www.citymint.com/
http://biz.yahoo.com/iw/080522/0400038.html 

San Jose-Based Arteris Secures $7.5 Million in Third Round

San Jose, Calif. -- Arteris, a San Jose-based developer of technology designed to improve the performance of system-on-chip (SoC) architectures for multimedia, telecom and mobile applications, said on Wednesday that it has landed $7.5 million in its third round of funding, increasing its total backing to $25 million. New investor DoCoMo Capital joined previous investors Crescendo, Synopsys, TVM Capital and Ventech in the round, which the company will use to further its sales and marketing reach and deploy its on-chip interconnect product.
http://www.arteris.com
http://biz.yahoo.com/bw/080521/20080521005620.html?.v=1

Burlingame-Based ANTs Raises $7.5M to Pay for Acquisition

Burlingame, Calif. -- Just days after announcing plans to acquire Inventa Technologies, Burlingame-based ANTs software, a developer of database management systems, on Wednesday unveiled a way to pay for the deal. The company said that it has raised $7.5 million through a private offering of stock to accredited investors, with the bulk of the proceeds going to finalize the acquisition. ANTs on Monday said that it would pay $3 million in cash, as well as a $2 million promissory note and 20 million shares of its stock, for New Jersey-based Inventa, a provider of application and database managed services.
http://www.ants.com
http://biz.yahoo.com/bw/080521/20080521005428.html?.v=1

San Francisco-Based Mocana Raises $7 Million in Second Round

San Francisco -- Mocana, a developer of security software designed to protect devices such as PDAs, routers, printers and iPods, said on Wednesday that it has raised $7 million in its second round of funding, led by Southern Cross Venture Partners. The company's only previous institutional investor, Shasta Ventures, also contributed, increasing its total backing to $12.1 million, Mocana said that it will use the proceeds to expand its product lines, build out its international presence and increase its marketing activities. The six-year-old company's software and services help secure communications to and from any device connected to a network, as well as the data and applications residing on those devices. Customers include Philips, Dell, Cisco, Nortel Networks and Honeywell.
http://www.mocana.com/ 
http://biz.yahoo.com/bw/080521/20080521005662.html?.v=1

Menlo Park-Based Moblyng Raises $5.7 Million in Funding

Menlo Park, Calif. -- Moblyng, a Menlo Park-based developer of technology that can detect and "mobilize" photo and slide show widgets and online video from any social media page or URL, said on Wednesday that it has raised $5.7 million in funding from Mohr Davidow Ventures and Deep Fork Capital. The company, formerly known as Fliptrack, also announced the beta launch of its software, which allows consumers to share media with friends using their mobile devices. The software works on most phones that display photos or videos, including mobile phones that do not otherwise permit Flash-based content, such as the iPhone.
http://www.Moblyng.com
http://biz.yahoo.com/bw/080521/20080521005308.html?.v=1

Los Gatos-Based Netflix Unveils Device to Stream Movies to TV Sets

Los Gatos, Calif. -- Netflix, the Los Gatos-based online DVD rental service introduced a $100 set-top box made by Roku that lets subscribers stream some of the company's library of films and TV episodes directly to their televisions. The device, known as the Netflix Player, currently offers access to 10,000 titles, or about 10% of Netflix's total catalog. Netflix subscribers paying at least $8.95 a month get unlimited streaming at no extra charge. The Associated Press reported that Netflix paid $6 million for an undisclosed stake in Roku earlier this year. Two other Netflix players with added features like DVD or Blu-ray playback are expected to launch in the second half of 2008 from manufacturers including Korea's LG Electronics.
http://biz.yahoo.com/prnews/080520/aqtu037.html?.v=51 
http://biz.yahoo.com/ap/080520/netflix_tv.html
http://www.roku.com/netflixplayer

Santa Clara-Based Mimosa Systems Raises $17 Million in Funding

Santa Clara, Calif. -- Mimosa Systems, a Santa Clara-based developer of information management software for email, files and instant messages, said on Tuesday that it has raised $17 million in a round of mezzanine funding, led by Focus Ventures. Previous  investors August Capital, Clearstone Venture Partners, JAFCO Ventures and Mayfield Fund also participated. Mimosa is the maker of NearPoint content archiving software, which is used by hundreds of customers in North America, Europe, Japan and the Asia Pacific region. The company, which 13 months ago raised $17 million in its third round, said that it will use the proceeds to fuel its next stage of growth.
http://www.MimosaSystems.com
http://www.mimosasystems.com/html/news_PR_52008.htm

Redwood City-Based EA Again Extends Deadline on Take-Two Offer

Cupertino, Calif. -- Electronic Arts (EA), the Redwood City-based developer and publisher of video games, said that it has again extended its $2 billion takeover bid for New York-based Take-Two Interactive, though the publisher of Grand Theft Auto remains steadfast in its opposition to the deal. It marks EA's third extension of the offer, which now runs through June 16. So far, only 8% of Take-Two's shares have been tendered. Take-Two CEO Ben Feder said that the unsolicited offer undervalues the company, and "fails to compensate our stockholders" adequately.
http://biz.yahoo.com/bw/080519/20080519005878.html?.v=1 
http://www.take2games.com 
http://www.ea.com 

Fremont-Based U4EA Acquires NextHop Technologies

Fremont, Calif. -- U4EA Technologies, a Fremont-based developer of technology for converged communications, said on Tuesday that it has acquired Mountain View-based NextHop Technologies, a supplier of wireless 802.11 software. Financial terms of the deal, which calls for NextHop to change its name to U4EA Wireless, were not disclosed. PG Menon, Nexthop's vice president of marketing, will become the unit's vice president and general manager. NextHop's products includes Wi-Fi controllers and access point software. U4EA said that the acquisition will expand its portfolio of communications products aimed at the small and medium-sized business markets.
http://www.nexthop.com/
http://www.u4eatech.com
http://www.u4eatech.com/news_press_NextHop

Report: Apple, Labels in Talks on Mobile Music, iTunes Pricing

Cupertino, Calif. -- Apple is in talks with some of the major labels on offering a wider selection of ringtones and a mobile music delivery service, The New York Times reported. At the same time, the labels reportedly are pressing Cupertino-based Apple to budge on its $0.99 song pricing at the iTunes Store. The Times said that the company is very interested in offering ringback tones, as well as over-the-air song downloads to the iPhone -- both of which are traditionally priced higher than regular ringtones and PC-based song downloads, respectively. Apple has stood firm on its iTunes download pricing, while the labels have continually pushed for more flexible, variable pricing. Apple is widely expected to introduce a next-generation 3G iPhone at an event on June 9. The Times also reported that Universal Music Group is also still pitching Apple on offering a digital music subscription service, where an iPod would come pre-loaded with music and allow unlimited downloads in exchange for a monthly fee.
http://bits.blogs.nytimes.com/2008/05/19/apple-wants-more-mobile-music-from-labels/index.html
http://www.apple.com/itunes/overview/

ZoomInfo Spins off San Francisco-Based Advertising Unit

San Francisco -- ZoomInfo, a Massachusetts-based provider of business information services, said on Tuesday that it has spun off its "bizographic" advertising unit into a new San Francisco-based company, to be known as Bizo. The newly formed company's platform targets advertising based on people's "business demographics." Former ZoomInfo general manager and senior vice president Russell Glass will lead Bizo as its CEO. ZoomInfo first unveiled plans to launch the advertising platform in October, and since then has been operating the unit in stealth mode, building its technology platform and signing partnership agreements with advertisers and publishers. The spinoff is being completely funded by ZoomInfo, making company investors such as Venrock, Flagship and Vulcan significant shareholders in the new unit.
http://www.bizo.com/
http://www.prweb.com/releases/2008/05/prweb957594.htm

Burlingame-Based ANTs software to Acquire Inventa Technologies

Burlingame, Calif. -- ANTs software, a Burlingame-based developer of database management systems, said on Monday that it will acquire Inventa Technologies, a New Jersey-based provider of application and database managed services. Under the deal, expected to close by May 30, ANTs will pay $3 million in cash, issue a $2 million promissory note and issue 20 million shares of its stock. Inventa will become a subsidiary of ANTs, retaining its name. ANTs said that the acquisition will give it an experienced professional services team to complement its engineering team.
http://www.ants.com
http://www.ants.com/index.php?option=com_content&task=view&Itemid=29&id=728

Mountain View-Based Goodmail Names Peter Horan as New CEO

Mountain View, Calif. -- Goodmail Systems, a Mountain View-based developer of technology designed to let consumers easily identify authentic email messages from legitimate commercial and nonprofit senders, on Monday named Peter Horan as its new CEO. Horan most recently served as the CEO of IAC Media and Advertising, and previously was the CEO of Allbusiness.com, About.com and DevX.com. "Peter has a proven track record pioneering new advertising platforms and creating innovative ways of driving online consumer engagement," said Daniel Dreymann, the president and co-founder of Goodmail. Horan will lead the introduction of the company's new advertising platform for email inboxes.
http://www.goodmailsystems.com
http://www.goodmailsystems.com/news/press_releases/2008/20080519-Peter-Horan-Joins-Goodmail-As-CEO.php

Napa-Based Inertia Names Former Expedia Exec. Ted Jansen as New CEO

Napa, Calif. -- Inertia, a Napa-based developer of web-based technology used by wineries to manage direct sales and marketing, on Monday named former Expedia executive Ted Jansen as its new CEO. he will succeed company founder Paul Mabray, who remains in the role of chief strategy officer. Jansen most recently served as the senior vice president of product and retail at Expedia.com, and previously was a vice president at Walt Disney
http://www.inertiabev.com
http://www.businesswire.com/news/home/20080519006397/en

Sunnyvale-Based Mu Dynamics Secured $10 Million in Third Round

Sunnyvale, Calif. -- Mu Dynamics, a Sunnyvale-based developer of software appliances designed to identify hard-to-detect sources of potential downtime within IP services, applications and underlying networks, said on Monday that it has raised $10 million in its third round of funding, led by Focus Ventures. Previous investors Accel Partners, Benchmark Capital and DAG Ventures also participated. The company, which currently has more than 100 active deployments, said that it will use the proceeds to accelerate its market expansion, particularly among large network operators and their vendors.
http://www.mudynamics.com/
http://www.mudynamics.com/news/press/pr051908a.html

Redwood City-Based JellyCloud Lands $11.5 Million in First Round

Redwood City, Calif. -- JellyCloud, the seven-month-old Redwood City-based developer of an online ad network utilizing behavioral targeting and web analytics, said that it has raised $11.5 million in its first round of funding. US Venture Partners, SoftBank, Sand Hill Capital and Crosslink Capital participated. The company said that it will use the proceeds to continue the growth of its network and expand into Europe, Australia and Asia. JellyCloud's technology processes data from sources such as publisher web beacons, software and Internet service providers to create anonymous user profiles, then uses that data to deliver targeted advertising.
http://jellycloud.com/news.html
http://jellycloud.com/ 

Los Altos-Based NearbyNow Raises $11.75M in Third Round

Los Altos, Calif. -- NearbyNow, the Los Altos-based developer of a service that allows users to search inventory at local stores and reserve items to pick up, said on Monday that it has raised $11.75 million in a its third round of funding, led by Norwest Venture Partners (NVP). Previous investor Draper Fisher Jurvetson also participated. The company said that it will use the funds to expand its Internet and mobile local shopping services. The company also said that it has partnered with TheFind, developer of a shopping search engine for lifestyle goods. Under the deal, users of TheFind.com will be able to reserve products at select local retailers. Additionally, NearbyNow has revealed a sneak preview of its new mobile service for the Apple iPhone that allows shoppers to graphically navigate a shopping center, search local inventory and reserve items for pick up.
http://www.nearbynow.com/pr15.html
http://www.nearbynow.com

AOL Completes $850M Acquisition of Online Social Network Bebo

San Francisco -- Two months after first unveiling the deal, AOL said on Monday that it has completed its $850 million acquisition of Bebo, a U.K.-based online social network with more than 40 million members. Bebo, currently the third largest social network in the U.S. -- well behind Facebook and MySpace -- will form the centerpiece of AOL's newly created People Networks unit, which also will include other community platforms such as instant messaging services AIM and ICQ, widget technology company Goowy Media and social search question and answer service Yedda. Joanna Shields, the CEO of Bebo, will head the unit as its executive vide president. Randy Falco, the chairman and CEO of AOL, said that the acquisition will help his company better capitalize on the fast-growing social media space. Bebo has about 100 employees operating in offices in the U.K., San Francisco and Austin, Texas.
http://www.bebo.com/
http://corp.aol.com/news/aol-completes-acquisition-bebo

Menlo Park-Based Sierra Ventures Invests Another $9M in Razorsight

Menlo Park, Calif. -- Sierra Ventures, a Menlo Park-based venture capital firm, said on Monday that it has invested another $9 million in Razorsight, a Virginia-based provider of web-based financial business intelligence software to communications, media and entertainment companies. The company said that it will use the proceeds to expand its product offerings and accelerate its international expansion following two recent carrier wins in Europe. Sierra initially invested $10 million in the company in 2006. Razorsight's software uses data capture technology to mine information from paper and electronic financial records, helping companies to better manage their accounts. Clients include Verizon, Time Warner and Comcast.
http://www.razorsight.com
http://www.sierraventures.com/
http://biz.yahoo.com/bw/080519/20080519005896.html?.v=1

Microsoft Re-Opens Talks Regarding New"Transaction" with Yahoo

Sunnyvale, Calif. -- Following three months of failed attempts to buy Sunnyvale-based Yahoo, Microsoft said that it is has resumed talks with the company regarding an alternative "transaction," not involving a full-fledged acquisition. "Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place," Microsoft said in a statement. In response, Yahoo said that it is continuing to consider "a number of value maximizing strategic alternatives." The Wall Street Journal reported that the proposed deal involves advertisements that run next to Internet search results. "The move by Microsoft appears to be an attempt to stop Google from entering a search-related deal with Yahoo that's now under discussion and could be announced in coming days," The Journal reported. Following multiple rejections from Yahoo's board of directors, Microsoft earlier this month pulled its $47.5 billion takeover offer. Angered by the turn of events, Yahoo shareholder Carl Icahn last week launched a battle for control of the board.
http://biz.yahoo.com/prnews/080518/clsu018.html?.v=1
http://biz.yahoo.com/bw/080518/20080518005102.html?.v=1
http://online.wsj.com/article/SB121114039708401745.html?mod=hps_us_whats_news (subscription required)

Yahoo Responds to Icahn, Claims Financier Misunderstands Facts

Sunnyvale, Calif. -- Responding to a letter from rogue shareholder Carl Icahn blasting the company for failing to accept Microsoft's $33-a-share takeover offer and threatening a proxy fight for control of its board, Sunnyvale-based Yahoo late Thursday fired back, saying that Icahn's view "reflects a significant misunderstanding of the facts." "We do not believe it is in the best interests of Yahoo stockholders to allow you and your hand-picked nominees to take control of Yahoo for the express purpose of trying to force a sale of Yahoo to a formerly interested buyer who has publicly stated that they have moved on," the company wrote. Yahoo said that it was prepared last month to accept a deal from Microsoft at $37-a-share, but that the software giant instead chose to "walk away from the negotiating table." "What Yahoo's independent board refused to do was to allow control of this company to be acquired for less than its full value," the company said. Icahn on Thursday said that the company had acted "irrationally" by rejecting Microsoft's offer, and named 10 people he plans to put up for Yahoo's board of directors.
http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=310754

Newark-Based Novasys Medical Lands $49.5 Million in Fourth Round

Newark, Calif. -- Novasys Medical, a Newark-based developer of therapies focused on women's health, said that it has secured $49.5 million in its fourth round of funding, led by Versant Ventures. New investors ThreeArch Partners and Skyline Ventures, and previous investors Affinity Capital Management, Alloy Ventures, Delphi Ventures, GBS Venture Partners, INVESCO Private Capital, JP Morgan Partners and ONSET Ventures also participated. Novasys is currently developing a non-surgical approach to the treatment of female stress urinary incontinence (SUI). Debra Reisenthel, the company's president and CEO, said that the funding will allow it to  continue its clinical studies, as well as secure reimbursement for the procedure.
http://www.novasysmedical.com   
http://biz.yahoo.com/prnews/080515/aqth525.html?.v=8

ChipVision Design Systems Raises $4.5 Million in Second Round

San Jose, Calif. -- ChipVision Design Systems, a German developer of electronic design automation (EDA) software tools with U.S. headquarters in San Jose, said on Friday that it has raised $4.5 million in its second round of funding from Target Partners and BayTech Venture Capital. The company said that it will use the funds to introduce its new power optimization design tools to market, as well as to expand its research and development efforts. ChipVision's software helps semiconductor developers to estimate and optimize energy dissipation in critical blocks of their designs.
http://www.chipvision.com
http://www.businesswire.com/news/home/20080516005027/en

San Francisco-Based Aragon Consulting Lands $2.5M in First Round

San Francisco -- Aragon Consulting Group (ACG), a San Francisco-based provider of  information technology consulting services, said that it has raised $2.5 million in its first round of funding from Tracer Capital. The firm said that it will use the proceeds to expand its services. Formed in 2005, ACG helps companies develop software products at a lower cost and shortened time-to-market than they could have on their own. The company maintains a development center in China.
http://www.aragoncg.com/
http://www.aragoncg.com/news/21/

Sausalito-Based Glassdoor.com Lands $3M, Launches Private Beta Test

Sausalito, Calif. -- Glassdoor.com, a Sausalio-based consumer technology startup that remains largely in stealth mode, revealed that it has raised $3 million in its second round of funding, led by Benchmark Capital. The company, which previously had been funded by co-founders Robert Hohman (CEO) and Rich Barton (non-executive chairman), recently launched a private beta test of its service, and expects to officially launch it in the coming months. Barton and Hohman, who also serves as the chairman and CEO of Zillow.com, previously worked together at Expedia, which Barton founded in 1994, and also Microsoft, where they both began their careers. The company's other co-founder is Tim Besse, who serves as vice president of product and marketing. Other initial board members include Erik Blachford, the CEO of TerraPass and former president and CEO of
Expedia; Stephen Kaufer, the president and CEO of TripAdvisor; and Rusty Rueff, the former CEO of SNOCAP.
http://www.glassdoor.com/
http://biz.yahoo.com/prnews/080514/aqw094.html?.v=46

Oakland-Based Ask.com to Acquire Lexico Publishing Group

Oakland -- Ask.com, the Oakland-based provider of Internet search services, said on Thursday that it will acquire Long Beach-based Lexico Publishing Group, the owner of Dictionary.com, Thesaurus.com and Reference.com, for an undisclosed amount of cash. Ask said that the acquisition will grow its network user base to more than 145 million unduplicated monthly users  worldwide. It would rank Ask as the ninth largest web property, ahead of such prominent names as Apple and Facebook. "More than 30% of all searches conducted on Ask.com are in the reference category," said Jim Safka, the CEO of Ask.com. "At the same time, Lexico's consumers frequently seek out a search engine immediately before and after using one of Lexico's sites."
http://biz.yahoo.com/prnews/080515/aqth083.html?.v=50
http://www.ask.com

Comcast Acquires Mountain View-Based Social Network Plaxo

Mountain View, Calif. --  Cable giant Comcast has acquired Mountain View-based social networking service Plaxo, according to a post on Plaxo blog. While financial terms of the deal were not disclosed, TechCrunch reports that the purchase price is around $175 million. Founded in 2001, Plaxo offers an online address book service that can automatically update contact information, and last August debuted a more traditional social networking service called Plaxo Pulse. The company will remain an independent operation within Comcast Interactive Media, and begin to integrate its services on Comcast.net and entertainment sites Fancast and Fandango. Plaxo and Comcast already have been working as partners for more than a year. "Together, we intend to deliver on a vision of making 'social media' a natural part of the lives of regular people, not just early-adopters," Plaxo said in its blog.
http://blog.plaxo.com/archives/2008/05/post.html
http://www.techcrunch.com/2008/05/14/confirmed-comcast-bought-plaxo-deal-closed-today/
http://www.comcast.com 

New YouTube Service Lets Advertisers Target "About-to-Go-Viral" Videos

San Bruno, Calif. -- Google's YouTube has introduced a new advertising product called "buzz targeting," which allows advertisers to target videos that are expected to "go viral." The company said that it has created an algorithm that "determines which YouTube partner videos are quickly becoming popular on the site," then allows advertisers to target their ads specifically to these videos. Lionsgate was the first advertising partner to test the service, using buzz targeting to promote the release of its movie "The Forbidden Kingdom" against more than 500 popular videos, including content from major music labels. Shiva Rajaraman, a product manager at YouTube, said that the new service allows advertisers to "associate their brand with the hottest content of the day, while reaching the most engaged users in our community."
http://www.youtube.com/press_room_entry?entry=l4x8umycLHk