Silicon Valley Wire

Google-Yahoo Ad Pact Could be on Verge of Collapse

Mountain View, Calif. -- More than four months after signing a major advertising pact with Sunnyvale-based Yahoo, Mountain View-based Google may be on the verge of calling off the deal, Reuters reported on Friday. Under the partnership, which could increase Yahoo's cash flow by as much as $450 million in the first year, Google would sell advertising for some of Yahoo's web properties. The deal, however, has been heavily scrutinized by both advertisers and federal regulators, who are concerned about antitrust issues, since the two companies together control more than 80% of the web search market. "Are they more serious about walking away? Yes," an unnamed source told Reuters. "Have they decided? I'm not sure." Another source said that Google could announce the dissolution of the deal as early as Friday.
http://www.reuters.com/article/marketsNews/idINN3130476920081031?rpc=44

San Francisco-Based Syncplicity Raises $2.35 Million in Funding

San Francisco -- Syncplicity, a San Francisco-based developer of online data management tools for small and mdium-sized businesses, said on Friday that it has raised $2.35 million in a post-seed round of funding, led by True Ventures and other private investors. The company said that it will use the proceeds to accelerate enhancements and extend the functionality of its flagship offering, as well as speed the growth of its customer base. Syncplicity's web-based tools are designed to manage "active data" -- data and files that are constantly changing, frequently updated or simultaneously worked on by multiple users.
http://www.syncplicity.com
http://www.businesswire.com/news/home/20081031005199/en

Ketchum Acquires S.F.-Based Tech PR Firm Access Communications

San Francisco -- Ketchum, a New York-based public relations agency, announced that it has acquired Access Communications, a San Francisco-based firm that focuses on the high-technology and consumer-technology industries. Financial terms of the deal were not disclosed. Access is the fifth largest technology-focused PR firm in the U.S., according to Ketchum. The acquisition adds 75 staff members to the workforce of 120 in the Los Angeles and San Francisco markets that currently make up Ketchum West.
http://www.ketchum.com/access_communications_news_release 
http://www.accesspr.com

Report: More Lower Income Consumers Turning to iPhone

Cupertino, Calif. -- While 43% of iPhone owners earn in excess of $100,000 annually, the strongest growth in users is coming from those earning less than the median household income, particularly since the launch of the iPhone 3G, according to a new report from comScore. Among those earning between $25,000 and $50,000 a year, iPhone adoption has risen 48% since June. That's three times as high as those earning more than $100,000 a year. "As an additional household budget item, a $200 device plus at least $70 per month for phone service seems a bit extravagant for those with lower disposable income," said Jen Wu, a senior analyst at comScore. "However, one actually realizes cost savings when the device is used in lieu of multiple digital devices and services, transforming the iPhone from a luxury item to a practical communication and entertainment tool."
http://www.comscore.com/press/release.asp?press=2545

Redwood City-Based EA Posts Higher Loss, Plans Job Cuts

Redwood City, Calif. -- Responding to a significantly steeper net loss in the most recent quarter, Redwood City-based Electronic Arts (EA), the large developer and publisher of video games, on Thursday announced plans to cut 6% of its workforce. Despite a 40% jump in revenue, driven by increased sales of its top-selling "Madden NFL 09" and "Spore" titles, higher expenses led the company to post a net loss of $310 million, up from $195 million a year ago. "Considering the slow down at retail we've seen in October, we are cautious in the short term," said CEO John Riccitiello. "Longer term, we are very bullish on the game sector overall and on EA in particular. The industry is growing double-digits on the strength of three new game consoles and increases in the number of homes with broadband Internet connections." The company said that it expects to save $50 million a year as a result of the job cuts.
http://www.ea.com
http://biz.yahoo.com/bw/081030/20081030006325.html

Reports: AOL and Yahoo Readying for Potential Combination

Sunnyvale, Calif. -- Signaling the potential for a merger in the near future, Sunnyvale-based Yahoo and AOL have been examining each others books over the past couple weeks, a person familiar with the situation told Reuters. The unnamed source said that the talks are focused on integrating AOL's content and advertising business into Yahoo, with AOL parent Time Warner receiving a stake in the combined company. The two companies reportedly have engaged in various discussions for several months, beginning over the summer when Yahoo was looking to fend off Microsoft's $47.5 billion takeover bid. Another source, paidContent.org, however, reported that no deal is imminent. http://www.reuters.com/article/marketsNews/idINN2949534420081029?rpc=44
http://biz.yahoo.com/paidcontent/081029/1_329176_id.html

Alviso-Based TiVo to Stream Netflix Movies, TV Episodes

Alviso, Calif. -- TiVo, the Alviso-based provider of digital video recorders and related services, on Thursday announced a partnership with Los Gatos-based online DVD rental service Netflix that will provide TiVo users the ability to stream thousands of movies and TV episodes from Netflix directly to their televisions. The feature will be available at no additional charge to Netflix subscribers who also own a TiVo Series3, TiVo HD or TiVo HD XL. A subscriber's Netflix queue will automatically be displayed on television via the TiVo interface. Users then will be able to read synopses, play selections and rate movies. The companies plan to initially test the new capability in several thousand U.S. households, and expect to make it more broadly available in early December. Neflix currently offers its subscribers instant streaming of some 12,000 movies and TV episodes through the Internet.
http://www.tivo.com/abouttivo/pressroom/pressreleases/2008/pr2008-10-30.html 
http://www.tivo.com/netflix

San Jose-Based Brocade Reaches Revised Deal for Foundry Networks

San Jose, Calif. -- Three months after first agreeing to merge, San Jose-based Brocade, a maker of data center networking equipment, said on Thursday that it has reached a revised deal to acquire Santa Clara-based Foundry Networks for $2.6 billion -- $400 million less. Shareholders of Foundry will receive $16.50 in cash for each of their shares. Brocade initially announced the deal for Foundry, a maker of switching, routing, security and Internet traffic management products, in July. Since then, however, shares of Foundry have fallen nearly 30%.
http://www.brocade.com
http://www.foundrynet.com.
http://biz.yahoo.com/prnews/081029/aqw142.html

Palo Alto-Based Accel Leads Funding Round for SportsBlogs Nation

Palo Alto, Calif. -- SportsBlogs (SB) Nation, a new network of sports-related blogs, has raised a "mid-seven-figure" sum of venture capital financing, led by Palo Alto-based Accel Partners, SportsBusiness Journal reported. Other investors included Allen & Co.; Ted Leonsis, the vice chairman emeritus of AOL; Brent Jones, the managing director of Northgate Capital; former Yahoo executives Dan Rosensweig and Jeff Weiner; and several former executives from Providence Equity Partners. The year-old start-up, based in Virginia, counts more than 150 local team sites, which are operated by local writers. The company's model gives writers equity stakes in SB Nation and a share of ad revenue, in return for the rights to their content and related assets. SB Nation is headed by chairman Jim Bankoff, the former chief of programming at AOL, and president Tyler Bleszinski, whose Athletics Nation blog was a template for the company, according to SportsBusiness Journal.
http://www.sbnation.com /
http://www.sportsbusinessjournal.com/article/60379  
http://blog.sbnation.com/2008/10/29/649137/sportsblogs-nation-gets-fu

Worldwide Chip Sales Continue Growth, But at Slower Rate

San Jose, Calif. -- Worldwide sales of semiconductors increased 1.6% to $23 billion in September, compared with the same period in 2007, according to new figures released by the San Jose-based Semiconductor Industry Association (SIA).The rate of sales growth, however, slowed from previous months, as the industry began to feel the effects of the turmoil in world financial markets. "We face a near-term period of uncertainty with a steep decline in consumer confidence and caution in the enterprise segment." said George Sclae, president of the SIA, adding that the picture is somewhat brighter in emerging markets. "Sales of personal computers and cell phones -- the two largest drivers of semiconductor sales -- remain strong in these emerging markets, driven by growing consumer populations and rising income levels coupled with more affordable pricing."
http://www.sia-online.org/cs/papers_publications/press_release_detail?pressrelease.id=1507

Logitech to Acquire Berkeley-Based SightSpeed for $30 Million

Fremont, Calif. -- Logitech International, the Swiss maker of personal peripherals with U.S. headquarters in Fremont, said that it will pay $30 million in cash to acquire Berkeley-based SightSpeed, a provider of Internet video communications services. The deal is expected to close in early November. Logitech said that the acquisition will provide it with video calling technology, as well as a development team that can be focused on future video calling initiatives. "We are significantly augmenting our current video R&D resources to help us move more quickly toward our goals for video services that complement the way people socialize, communicate and enjoy entertainment," said Junien Labrousse, the executive vice president of Logitech's Products group. Founded in 2001, SightSpeed has approximately 25 employees.
http://www.logitech.com
http://www.sightspeed.com/
http://www.logitech.com/index.cfm/172/5237&&cl=us,en

Google Settles With Authors, Publishers; Will Pay $125M

Mountain View, Calif. -- Google has announced a landmark settlement agreement with authors and publishers over its mammoth book-scanning project, which calls for the Mountain View-based company to make payments totaling $125 million in exchange for significantly expanded access to published works. Reached after two years of negotiations, the agreement will resolve both a class action copyright lawsuit brought by book authors and the Authors Guild, as well as a separate lawsuit filed by five large publisher members of the Association of American Publishers (AAP). Under the terms, Google Book Search will gain access to millions of additional in-copyright works, and the company will help create a not-for-profit Book Rights Registry to distribute payments earned from online access to published works. The Book Rights Registry will additionally "locate rightsholders, collect and maintain accurate rightsholder information, and provide a way for rightsholders to request inclusion in or exclusion from the project." Google Book Search will also create additional ways to purchase copyrighted books; offer institutional subscriptions for U.S. colleges and other organizations; and provide free access from U.S. libraries.
http://www.google.com/intl/en/press/pressrel/20081027_booksearchagreement.html http://books.google.com/booksrightsholders

San Jose-Based DFine Raises $30 Million in Fourth Round

San Jose, Calif. -- DFine, the San Jose-based developer of a minimally invasive medical system for treating spinal disorders, said that it has secured $30 million in its fourth round of funding, co-led by BBT Fund and Highland Capital Management. Other investors included Prospect Venture Partners and Vanguard Ventures. DFine's system is designed to help physicians deliver ultra-high viscosity bone cement to fractures of the spine in an effort to relieve pain and improve patient outcomes. "With this investment, we will be able to commercialize the StabiliT Vertebral Augmentation System, which we believe will redefine the way vertebral compression fractures are treated," said Csaba Truckai, the company's president and CEO.
http://www.dfineinc.com
http://biz.yahoo.com/prnews/081028/latu508.html?.v=22

S.F.-Based Bleacher Report Gets $3.5M for User-Generated Sports Writing

San Francisco -- Bleacher Report, a San Francisco-based site that lets sports fans post their own sports-related news and commentary, has raised $3.5 million in its second round of funding, TechCrunch reported. Investors included Hillsven Capital, Gordon Crawford, SoftTech VC and Vimeo founder Jacob Lodwick. Bleacher Report counts more than 2 million unique monthly visitors to its site, which offers over 400 articles daily from a stable of around 7,500 writers. The company's content is now syndicated by media partners including CBS Sports and Fox Sports.
http://bleacherreport.com
http://www.techcrunch.com/2008/10/28/bleacher-report-hunkers-down-with-35-million-more/

San Francisco-Based Zuora Lands $15 Million in Second Round

San Francisco -- Zuora, the San Francisco-based developer of a web-based subscription billing and payment service, said on Tuesday that it has raised $15 million in its second round of funding. Shasta Ventures and Lehman Brothers Venture Partners co-led the round, with previous investors Benchmark Capital and Marc Benioff also participating. The company, which now has raised $21.5 million since its inception, plans to use the proceeds to fuel customer acquisition and new product development. "Our vision is to build the PayPal for the subscription world, so that our customers can focus on their core business, not on their infrastructure," said Tien Tzuo, the CEO of Zuora. The company launched its first product, a billing application designed specifically for subscription companies known as Z-Billing, in May 2008. It subsequently launched its second product, Z-Payments, and now has more than 45 clients, including Cloud9 Analytics, Marketo and Box.net.
http://www.zuora.com
http://biz.yahoo.com/bw/081028/20081028005482.html?.v=1

Saratoga-Based Roku Lands New Funding from Menlo Ventures

Saratoga, Calif. -- Roku, the Saratoga-based digital media technology firm that recently released a digital video player in partnership with Netflix, said on Tuesday that it has raised an undisclosed amount in its third round of funding from Menlo Ventures. he news comes just nine months after the company landed its second-round investment from Netflix. The company's Netflix Player, introduced in May, allows Netflix subscribers to instantly download movies and TV episodes over the Internet to their televisions. The popular box sells for $99.99. The company said that it will use the proceeds to further develop its position in the growing market for devices that stream media to the television.
http://www.roku.com
http://www.roku.com/netflixplayer/
http://biz.yahoo.com/bw/081028/20081028005633.html?.v=1

San Francisco-Based WideOrbit Raises $10 Million in Funding

San Francisco -- WideOrbit, a San Francisco-based developer of revenue management systems for the media industry, said on Tuesday that it has raised $10 million in a new round of funding, led by Mayfield Fund. Previous investors Khosla Ventures, Greycroft Partners and the Hearst Corporation also participated in the round, which the company will use to invest "more aggressively" in the creation of new products and services. WideOrbit's sales, traffic and billing software is used by more than 1,200 television stations, radio station, and cable networks. Clients include Gannett, Hearst, McGraw Hill, NBC, the New York Yankees, Fox Sports Net and Madison Square Garden.
http://www.wideorbit.com/
http://www.businesswire.com/news/home/20081028005653/en

Google Seeks BayTSP Records in $1 Billion Viacom Suit

Mountain View, Calif. -- Google has demanded records from anti-piracy firm BayTSP as part of its defense against the $1 billion copyright infringement lawsuit filed by Viacom over its YouTube site, MarketWatch reported. Mountain View-based Google believes the documents will refute Viacom's argument that it is unable to police its own content on YouTube. The company said that the records will, in fact, show that Viacom has asked BayTSP to ignore the legitimate content it posts to YouTube, while at the same time flagging infringing content for removal. "BayTSP will possess a trove of documents reflecting this 'viral' or 'stealth' marketing of videos," Google said in the filing, according to MarketWatch. Google has argued that YouTube is entitled to the safe harbor provision of the Digital Millennium Copyright Act, which says that service providers are not liable for infringing materials posted by end users. YouTube also provides copyright holders with tools to flag unauthorized videos posted by users for removal, as stipulated under the DMCA. Viacom argues that Google does not do enough to prevent unauthorized copyrighted content from being posted to YouTube, and that it should not have to police the site to request removal of its copyrighted content.
http://www.baytsp.com
http://www.marketwatch.com/news/story/google-opens-new-front-battle/story.aspx?guid=%7B4E4E1A05%2D3606%2D4DCA%2DB000%2D30D3C2CCDF7A%7D&siteid=yhoof

Sunnyvale-Based AMD Completes Sale of Digital TV Business

Sunnyvale, Calif. -- Two months after first announcing the deal, Sunnyvale-based AMD said on Tuesday that it has completed the $141.5 million sales of its digital TV processor business to Irvine-based Broadcom. AMD said that the sale is part of a larger plan to strengthen its balance sheet, lower its breakeven point and hone its focus. Broadcom said in August that the acquisition will expand its customer base, and allow it to offer a product line that covers all segments of the digital TV market. The company said at the time that it planned to retain more than 530 AMD employees across six of the company's design centers.
http://www.amd.com/us-en/Corporate/VirtualPressRoom/0,,51_104_543~128680,00.html

Sunnyvale-Based ZeroG Lands $17 Million in Second Round

Sunnyvale, Calif. -- ZeroG Wireless, a Sunnyvale-based developer of semiconductors for Wi-Fi devices, said on Monday that it has landed $17 million in its second round of funding, led by Battery Ventures. Greylock Partners, Morgenthaler Ventures and Miven also participated. ZeroG's products are designed to allow low-cost Wi-Fi connectivity for nearly any system, regardless of architecture. The company was founded by Thomas Lee, who previously co-founded Matrix Semiconductor, which was acquired by SanDisk in 2006. "We are on the edge of a dramatic shift in how people connect with 'things,'" said John Cummins, the company's CEO. "In five years it will be hard to find an electronic device that is not connected to the internet. This funding will enable ZeroG to deliver products that will connect billions of new devices to the massive Wi-Fi infrastructure."
http://www.zerogwireless.com/ 
http://www.zerogwireless.com/press-room/releases/20081027_funding.html

TranSwitch Completes Deal for Fremont-Baaed Centillium Communications

Fremont, Calif. -- TranSwitch, a Connecticut-based developer of semiconductors, announced on Monday that it has completed its acquisition of Fremont-based Centillium Communications, a developer of communications processing technology for systems vendors. Under the agreement, TranSwitch has issued 25 million shares of stock and paid $15 million in cash. "The combined companies will have greater scale, a significantly improved expense structure and a truly global reach," TranSwitch said in a statement. The company expects to save $10.5 million a year as a result of cost synergies.
http://www.transwitch.com/news/article/index.jsp?news=450

Sunnyvale-Based PLX Names Ralph Schmitt as New President, CEO

Sunnyvale, Calif. -- PLX Technology, a Sunnyvale-based maker of I/O interconnect semiconductors, on Monday named Ralph Schmitt as its new president and CEO, effective Nov. 3. He will succeed Mike Salameh, who has served as president and CEO since co-founding the company in 1986. Schmitt most recently consulted with a variety of venture capitalists, as well as acted as the CEO of Legend Silicon. From 2005-2007, he served as the CEO of Sipex, which merged with Exar in 2007. Upon the completion of the merger, he was appointed chief executive officer of Exar, a position he held until the end of 2007.
http://www.plxtech.com
http://www.businesswire.com/news/home/20081027006296/en

S.F. Chronicle Posts 7% Drop in Circulation, Mercury News 1.9%

San Francisco -- Mirroring a national trend, the San Francisco Chronicle saw its daily circulation drop 7% during the six-month period ending Sept. 30, according to new figures from the Audit Bureau of Circulation. The Chronicle's circulation dropped to 339,000, while the San Jose Mercury News dropped 1.9% to 224,000. Overall, average weekday circulation across the nation fell 4.6%. USA Today, the national daily published by Gannett, remained the top-selling newspaper in the U.S. and was the lone paper among the nation's 25 largest to show an increase -- albeit miniscule. USA Today's daily circulation was 2.29 million, topping the Wall Street Journal (2.01 million).
http://biz.yahoo.com/prnews/081027/dc41724.html?.v=1
http://www.mediaweek.com/mw/content_display/news/magazines-newspapers/e3i69a1fca74124be46a544757d7fcda200

Report: Venture Capital Performance Declines in Second Quarter

New York -- Though still showing positive returns across all investment horizons, venture capital performance declined during the second quarter, according to a new report from Thomson Reuters and the National Venture Capital Association (NVCA). Hurt primarily by the stagnant market for initial public offerings (IPOs), investment returns over a one-year span declined 8.2% from the previous quarter to 5.1%. Returns over three-. five- and 10-year spans also showed more modest declines. "We have yet to see the full impact of the capital markets crisis in the venture capital performance numbers," said Mark Heesen, president of the NVCA. "We will likely begin to see pressure on both short and long term returns in the next several years as the highly prosperous years of 1998 and 1999 fall out of the ten-year numbers and are replaced with
most recent years when the IPO window has been sealed shut."
http://www.nvca.org
http://www.magnetmail.net/images/clients/NVCA/attach/Q208VCPerformanceRelease.pdf (PDF)

San Rafael-Based Autodesk to Acquire Softimage from Avid Technology

San Rafael, Calif. -- Autodesk, a San Rafael-based developer of design software, said that it will pay $35 million to acquire the Softimage unit from Massachusetts-based Avid Technology, a maker of software and hardware used to produce and distribute  digital media content. Founded in 1986 and headquartered in Montreal, Softimage develops 3D animation technology for the film, television and games industries. Upon completion of the deal, Softimage will become part of Audodesk's Media & Entertainment unit. Marc Petit, the unit's senior vice president, said that the move will "help us accelerate the work of our Games Technology Group, as we build the next-generation of real-time, interactive 3D authoring tools for games, film and television."
http://usa.autodesk.com/adsk/servlet/item?id=12022457&siteID=123112
http://www.avid.com/company/releases/2008/081023_Q2Earnings_avid.html

EFI to Sell Part of Foster City Campus to Gilead Sciences

Foster City, Calif. -- EFI, a Foster City-based developer of digital printing technology, said that it has reached a deal to sell a portion of its Foster City campus to biopharmaceutical firm Gilead Sciences for $137.5 million. The deal is expected to close in January. The move comes five months after EFI hired Jones Lang LaSalle to explore the possibility of selling part of the campus, which consists of two buildings and approximately 35 acres of land. Under the agreement with Gilead, EFI will retain ownership of the 295,000-square-foot building it currently occupies along with the related land. EFI will sell the second 163,000-square-foot building, as well as approximately 30 acres. EFI said that it will use a large portion of the proceeds to fund a share repurchase program. "We believe this is an efficient means for expanding our Foster City campus to create flexibility and to accommodate planned long-term growth," said John Milligan, the president and COO of Gilead.
http://www.efi.com/
http://www.businesswire.com/news/home/20081023006364/en

S.F.-Based Martini Lands Funding for Online Ad Network

San Francisco -- Martini Media Network, a San Francisco-based online ad network that targets affluent consumers, has raised an undisclosed amount of first round funding from Venrock, Dow Jones' VentureWire reported. The company also has named Skip Brand as its CEO; Brand previously held senior sales and business development positions at Yahoo, Cox and Excite@Home. Martini has established a network of over 70 publishers that reaches affluent individuals through their leisure pursuits -- such as sailing, equestrian sports, private aviation, wine, golf, classic cars and cigars. The company's flagship MartiniLife.com site features content from its publishing partners and other sites.
http://www.venturewire.com 
http://www.businesswire.com/news/google/20081023005167/en 
http://www.martinimedianetwork.com 

Sunnyvale-Based AMD to Expand Roles of Two Executives

Sunnyvale, Calif. -- Advanced Micro Devices (AMD), the Sunnyvale-based chip-making giant, said that CFO Bob Rivet will assume the roles of COO and chief administrative officer. In addition, Emilio Ghilardi, the company's senior vice president and general manager of sales for Europe, the Middle East and Africa, will assume the role of chief sales officer at the beginning of 2009. "Placing these proven, experienced leaders in expanded roles will strengthen our customer relationships, enhance our execution and drive progress against our corporate objectives," said Dirk Meyer, AMD's president and CEO. Rivet will continue in his role as CFO until a replacement is announced. Ghilardi will replace Gustavo Arenas, who will move into a new role focused on further strengthening AMD's customer and strategic relationships.
http://www.amd.com
http://www.amd.com/us-en/Corporate/VirtualPressRoom/0,,51_104_543_15434~128659,00.html

Co-Founder of San Mateo-Based Picateers Resigns as CEO

San Mateo, Calif. -- Picateers, a San Mateo-based online portrait company that helps schools raise funds through picture days, said on Friday that co-founder Lawrence Jacobs has resigned as its CEO to pursue other opportunities. Jacobs, who led the company for four years and will remain on its advisory board, will be replaced on an interim basis by former Intuit executive Dan Levin. Levin previously held several senior leadership roles at Intuit, including senior vice president and general manager of the company's QuickBooks Group. He also has been the CTO and senior vice president of corporate development and strategy at ReplayTV. Schools that participate in Picateers' program have volunteer photographers take the photo, then keep 50% of portrait package sales. The company said that a typical elementary school can raise about $5,000 through one of its picture days.
http://www.picateers.com
http://www.businesswire.com/news/home/20081024005673/en

San Jose-Based Immersion Promotes Christophe Ramstein to CTO

San Jose, Calif. -- Immersion, the San Jose-based developer of touch-feedback (haptic) technology used in many video games, said on Friday that it has promoted Christophe Ramstein to the role of CTO. Ramstein had been serving as the company's senior vice president of research and engineering. In 1995, he founded Haptic Technologies, which was acquired by Immersion in 2000. He has since led the development of the company's touch-feedback technology for touchscreens, mobile phones and rotary controls.
http://www.immersion.com/
http://ir.immersion.com/releasedetail.cfm?ReleaseID=342923

Mountain View-Based LinkedIn Raises Another $22.7 Million

Mountain View, Calif. -- Just four months after raising $53 million in its fourth round of funding, Mountain View-based LinkedIn, developer of the popular online professional network, said on Thursday that it has raised another $22.7 million. Participants included Goldman Sachs, The McGraw-Hill Companies and SAP Ventures, in addition to previous investor Bessemer Venture Partners. The valuation for the round was just over $1 billion. LinkedIn's network currently include more than 30 million professionals, including executives from each of the Fortune 500 companies. While standard LinkedIn accounts are free, the company earns revenue through advertising, premium subscriptions, corporate tools and job listings. 
http://www.linkedin.com/
http://www.businesswire.com/news/home/20081023005368/en

Samsung Withdraws $5.85 Billion Bid for Milpitas-Based SanDisk

Milpitas, Calif. -- Korean electronics giant Samsung has withdrawn its $5.85 billion offer to acquire Milpitas-based SanDisk, the maker of memory cards and MP3 players. "After nearly six months of efforts to pursue a transaction with no meaningful progress, we are withdrawing our proposal to acquire SanDisk," Yoon Woo Lee, the vice chairman and CEO of Samsung Electronics, said in a statement. "I am disappointed that we have been unable to reach an agreement on our proposal." For its part, SanDisk has maintained that Samsung's offer of $26 a share undervalues the company. "From the start of this process SanDisk's board has remained open to a transaction that recognizes SanDisk's long-term value and contains the right protections for SanDisk's shareholders," the company said in a statement. "We repeatedly outlined a clear path to hold further discussions, including most recently in our letter on September 15, and Samsung consistently chose to ignore that path and, in fact, never contacted SanDisk regarding their proposal after we delivered our letter. We believe this raises questions about the real motivations behind Samsung's offer."
http://www.businesswire.com/news/google/20081021006764/en 
http://www.samsung.com 
http://www.sandisk.com

Report: S.F.-Based Imeem Laying Off 25% of Staff; Exploring Sale

San Francisco -- Imeem, the San Francisco-based online social network focused on music, is laying off 25% of its 80-person staff -- roughly 20 employees -- and has hired investment bank Montgomery and Co. to explore a possible sale of the company, PaidContent reported. The company confirmed layoffs for Silicon Alley Insider, but would not comment on the sale rumor. To date, Imeem has raised over $50 million in funding, from investors including Sequoia Capital and Warner Music Group. The company, which counts 30 million registered users, has licenses from all four major labels and many independents to offer free, ad-supported streaming music.
http://www.imeem.com
http://www.paidcontent.org/entry/419-music-social-network-imeem-in-play-does-25-percent-layoffs/
http://www.alleyinsider.com/2008/10/music-site-imeem-laying-off-25-reportedly-putting-itself-up-for-sale

Apple iPhone Outsells BlackBerry in Most Recent Quarter

Cupertino, Calif. -- Apple is now the third-largest mobile phone company in the world, behind only Nokia and Samsung, and its iPhone outsold RIM's BlackBerry during the recent quarter, the company revealed in its earnings statement. Cupertino-based Apple sold 6.9 million of its iPhone 3G devices in the quarter ended Sept. 27, compared with 6.1 million BlackBerry units sold by RIM. The company also noted that it has already surpassed its previously stated goal to sell 10 million iPhones during 2008. The iPhone sales generated $4.6 billion for Apple during the quarter, representing 39% of its overall revenue. In addition to iPhones, Apple also sold 11 million iPods in the quarter.
http://www.apple.com/pr/library/2008/10/21results.html

ESA to Hold Expanded E3 Video Game Expo in 2009

Los Angeles -- After experimenting with a smaller event the past two years, the Entertainment Software Association (ESA), a trade group of U.S. video game developers and publishers, said that it will host an "expanded" Electronic Entertainment Expo (E3) at its former home in the Los Angeles Convention Center next year. The ESA said that next year's E3 "will welcome all qualified computer and video game industry audiences, including international and U.S.-based media, analysts, retailers, developers and business partners to preview the latest in interactive entertainment and technology." The event drew over 70,000 attendees back in 2006, but many in the industry thought E3 had grown too big and expensive to produce, so a scaled-back version was held at a smaller location in 2007 -- when just 4,000 were invited. This year, the event returned to the Los Angeles Convention Center, but attendance was still strictly limited. "Video games are the fastest growing and most compelling sector of the entertainment industry," said Michael Gallagher, the CEO of the ESA. "This upgraded event will reflect the growth."
http://www.theesa.com/newsroom/release_detail.asp?releaseID=38

CEA Inducts 12 into Consumer Electronics Hall of Fame

Las Vegas -- Martin Cooper and Donald Linder, developers of the world's first cell phone, were among 12 prominent industry leaders who have been inducted into the Consumer Electronics Hall of Fame, the Consumer Electronics Association (CEA) announced. They joined 121 other inventors, engineers, retailers, journalists and executives who have been inducted since 2000. Other new members include Jewel and David Abt, founders of Abt Electronics; Joe Clayton, the chairman, former president and CEO of Sirius Satellite Radio; Dean Dunlavey, the attorney who argued the Sony "Betamax" case before the Supreme Court; Hans Fantel, the founding editor of Stereo Review and New York Times columnist; Eddy Hartenstein, the founder and chairman of DirecTV; Ken Kutaragi, lead developer of the Sony PlayStation gaming console; Warren Lieberfarb, who helped to broker a DVD format while president of Warner Home Video; Fritz Sennheiser, the founder of Sennheiser; and Richard Sharp, the former chairman and CEO of Circuit City. The inductees were chosen by a panel of judges from nominations submitted by industry professionals.
http://www.CE.org
http://www.ce.org/Press/CurrentNews/press_release_detail.asp?id=11617

San Mateo-Based AdMob Raises $15.7 Million in Third Round

San Mateo, Calif. -- AdMob, the San Mateo-based developer of a mobile advertising marketplace, said on Wednesday that it has secured $15.7 million in its third round of funding, led by Sequoia Capital's Growth Fund. Previous investor Accel Partners also participated in the round, which the company will use to hire local staff in key markets, add new language interfaces and expand its offerings to publishers and advertisers. AdMod said that over the past year it has more than tripled the number of ads served on a monthly basis to 4.5 billion in September. The company also said that its publisher network now includes more than 6,000 partners, including 2008 additions MySpace and MovieTickets.com.
http://www.admob.com
http://www.businesswire.com/news/home/20081021006756/en

Sunnyvale-Based SiliconBlue Lands $24 Million in Second Round

Sunnyvale, Calif. -- SiliconBlue, a Sunnyvale-based developer of memory technology for consumer applications, said on Wednesday that it has raised $24 million in its second round of funding, led by New Enterprise Associates (NEA). Previous investors BlueRun Ventures and Crosslink Capital also participated. SiliconBlue, which previously raised $16 million in 2006, plans to use the funding to expand its sales operations globally in support of new customers. "Within a short period of three months we have over 70 customer engagements [and] tools installations," said Kapil Shankar, the CEO of SiliconBlue. "This funding will help us build our sales channel and drive revenue effectively."
http://www.siliconbluetech.com   
http://biz.yahoo.com/bw/081022/20081022005376.html?.v=1

San Francisco-Based Brightstorm Raises $6 Million in First Round

San Francisco -- Brightstorm, a San Francisco-based Internet startup, said that it has raised $6 million in its first round of funding from KTB and launched its new online learning network for teens. The network offers video-based courses designed and taught by classroom teachers from across the U.S. "Great learning happens because of great teachers," said Jeff Marshall, the CEO and co-founder of Brightstorm. "By giving teachers a new channel to reach millions of teens… we're creating a new model for learning opportunities to flourish." Courses cover a variety of subjects, including math, writing, history and AP and SAT test prep. Teens can choose their own teacher and teaching style for each subject, and take courses at their own pace. The service also features interactive elements and bonus materials, including practice problems, quizzes, study guides and forums.
http://www.brightstorm.com
http://biz.yahoo.com/iw/081021/0444769.html

Google, Yahoo Extend Deadline for Antitrust OK on Ad Deal

Mountain View, Calif. -- Mountain View-based Google and Sunnyvale-based Yahoo have extended Wednesday's deadline to give federal regulators time to examine their proposed online advertising partnership. Reuters reported that Google CEO Eric Schmidt told reporters in Florida after a campaign appearance with Sen. Barack Obama that the company has agreed to extend its discussions with the Justice Department. The companies initially had planned to hold off launching the partnership until Oct. 8 to give regulators time to examine the terms. That deadline was then extended to Oct. 22. Under the proposed deal, Google would serve ads against some Yahoo search results. Opposition to the deal has been voiced by large advertisers, who fear that it may result in Google controlling too large a share of the online advertising market.
http://www.reuters.com/article/mergersNews/idUSN2131148320081021

Palo Alto-Based Lala Launches Ad-Free Streaming Music Service

Palo Alto, Calif. -- Lala has launched what it says is the first free digital music streaming service that is also free of advertising. In addition to streaming any of the service's more than 6 million songs from all four major labels and over 170,000 independents one time for free, users can pay $0.10 a song to add them to a "web collection," where they can then stream them an unlimited number of times from any Internet-connected device. Songs can also be purchased outright in the DRM-free MP3 format for $0.79 -- or $0.89 if a user has not already paid the $0.10 fee. "Right now, if you're a consumer, you can get free music. The problem is, the free music comes at the cost of advertising," Lala founder Bill Nguyen told Wired.com. "It doesn't work right, because for someone like MySpace or Imeem, they pay for every single play and then they have the burden of getting advertising to pay for it. So their goal is to create as many ads in front of you as they possibly can before they play the song... The concept was, we can create a great service with your music and new music all in a web page -- no ads."
http://www.lala.com 
http://www.lala.com/#press
http://blog.wired.com/music/2008/10/lala-how-does-1.html

Census: State and Local Government Employment Rises 4.5%

Washington, DC -- The nation's nearly 90,000 state and local governments employed 16.4 million full-time workers in 2007, up 4.5% from 2002, according to new figures from the U.S. Census Bureau. Most of the employees worked in education (8.8 million), hospitals (989,000), police protection (933,000) and corrections (731,000). The bureau said that it has launched a new online tool, known as Build-a-Table, to help users search for employment and payroll data by state, level of government and function.
http://www.census.gov/govs/www/apes.html
http://www.census.gov/Press-Release/www/2008/cb08-157table.pdf (PDF)

Sunnyvale-Based Yahoo to Cut More than 1,400 Jobs by Year's End

Sunnyvale, Calif. -- As widely expected, Sunnyvale-based Yahoo on Tuesday announced plans to reduce its global workforce by "at least" 10% by year's end. For a company that currently employs about 14,300 workers, that means more than 1,400 job cuts. Yahoo, which also announced another major round of layoffs earlier this year, said that it hopes to reduce its current annualized cost run rate of approximately $3.9 billion by more than $400 million before the end of 2008. The company added that it plans to implement "additional cost-cutting measures aimed at achieving additional structural efficiencies" over the next year. The news came as Yahoo reported net income of $54.3 million for the quarter, down 64% from the $151.3 million it earned during the same period a year ago.
http://biz.yahoo.com/bw/081021/20081021006571.html?.v=1

Mountain View-Based Cobalt Biofuels Raises $25 Million

Mountain View, Calif. -- Cobalt Biofuels, a Mountain View-based developer of a next-generation biofuel called biobutanol, said that it has raised $25 million in its third round of funding, co-led by LSP and Pinnacle Ventures. Other participants included previous investors Vantage Point Venture Partners, The Malaysian Life Sciences Capital Fund and @Ventures, as well as new investor Harris and Harris. The company said that it will use the proceeds to lerate the commercialization of biobutanol, which can be used as a standalone transportation fuel, an additive to gasoline or diesel fuel or an additive to improve the properties of ethanol. Cobolt said that the fuel burns cleaner and costs less than current alternatives.
http://www.cobaltbiofuels.com
http://www.cobaltbiofuels.com/news/news-item/series-c-round/

San Jose-Based Intransa Raises $15 Million in Funding

San Jose, Calif. -- Intransa, a San Jose-based developer of external IP storage systems used in video surveillance, said on Tuesday that it has raised $15 million in a new round of funding, led by Rho Ventures. Entrepia Ventures, Guggenheim Venture Partners, Menlo Ventures and US Venture Partners also participated in the round, which the company will use to accelerate its sales, marketing and research and development efforts. Intransa has been shipping IP storage systems since 2003, when itr spun out from 3Com.
http://www.intransa.com/
http://www.intransa.com/news/releases/2008/1021.html

Intel to Invest $120 Million in Society for Science & the Public

Santa Clara, Calif. -- Intel, the Santa Clara-based chipmaker, said that it will invest $120 million over the next 10 years in its long-time science competition partner, the Washington, DC-based Society for Science & the Public. The funding will help support the annual Intel Science Talent Search and Intel International Science and Engineering Fair, as well as create a youth outreach program and online science community and science fair alumni network. "I can’t think of a more critical time to invest in math and science education," said Will Swope, the vice president and general manager of Intel's corporate affairs group. "We will work with districts, schools and teachers around the world to help get students excited and engaged in math and science -- subjects that provide the foundation for innovation." The $120 million is the largest single commitment in the history of the Intel Foundation. It extends its title sponsorships of the Intel Science Talent Search, which began in 1998, through 2016, and the Intel International Science and Engineering Fair, which began in 1996, through 2019.
http://www.societyforscience.org/
http://biz.yahoo.com/bw/081020/20081020005263.html?.v=1

Redwood City-Based Replay Solutions Lands New $2M Investment

Redwood City, Calif. -- Two months after initially closing its second round of funding, Redwood City-based Replay Solutions, a developer of tools designed to help software developers more easily find and fix bugs, said on Tuesday that it has received a new $2 million investment from UV Partners. The firm joins Hummer Winblad, Partech International and Sigma Partners, who collectively invested $11 million in August. Replay's technology allows users to record their software applications and servers at any stage of development, then -- much like a DVR -- fast-forward directly to any errors.
http://www.replaysolutions.com
http://biz.yahoo.com/prnews/081021/aqtu505.html?.v=23

Google CEO Eric Schmidt Backs Obama; Will Hit Campaign Trail

Mountain View, Calif. -- Eric Schmidt, the CEO of Mountain View-based Google, has announced that he will back Sen. Barack Obama in the race for president, planning to join him on the campaign trail starting with an event in Florida on Tuesday, The Wall Street Journal reported. "I'm doing this personally," Schmidt told The Journal, adding that "Google is officially neutral" in the campaign. To this point, Schmidt has not donated money to either campaign, although Google staffers have contributed $487, 355 to Obama and $20,600 to Sen. John McCain. Schmidt has been unofficially advising the Obama campaign on technology and energy issues. The Journal cited "some tech and media executives" who speculate that Schmidt may be interested in a role in a potential Obama administration, such as the chief technology officer post that Obama has alluded to creating.
http://online.wsj.com/article/SB122446734650049199.html?mod=googlenews_wsj (subscription required)
http://news.cnet.com/8301-13578_3-10069998-38.html 

San Jose-Based IDT Acquires Technology from Silicon Optix

San Jose, Calif. -- Integrated Device Technology (IDT), a developer of mixed signal semiconductor used in digital media, said on Tuesday that it has acquired video processing technology and related assets from Silicon Optix. Financial terms of the deal were not disclosed. The assets include the Hollywood Quality Video (HQV) brand and the Reon product line, as well as related employees. IDT plans to operate the business as part of its video and display operation. The new division will be primarily located in Silicon Optix's existing Toronto facility.
http://www.IDT.com
http://www.idt.com/?id=5182

Menlo Park-Based U.S. Venture Partners Leads $6M Round for Trusteer

Menlo Park, Calif. -- U.S. Venture Partners, a Menlo Park-based venture capital firm focused on the technology sector, has led a new $6 million round of funding for New York-based Trusteer, a developer of online consumer protection software. It was the company's second round. Trusteer's software is designed to help online businesses establish secure communications with their customers over the Internet. Its flagship product, Rapport, allows online banks, brokerages, retailers, and healthcare organizations to protect their customers from identity theft and financial fraud.
http://www.businesswire.com/news/home/20081021005007/en
http://www.trusteer.com