Silicon Valley Wire

San Francisco-Based OpenTable Files for Rare IPO

San Francisco -- Becoming one of only a scant few private companies to explore such a move in recent months, San Francisco-based OpenTable on Friday filed with the Securities and Exchange Commission (SEC) for an initial public offering (IPO) of stock. The company, which provides online reservation services for diners as well as guest and table management systems for restaurants, said that it has not yet determined the number of shares to be offered or their expected price range. OpenTable's network includes approximately 10,000 restaurant. Since its inception in 1998, the company has taken reservations for about 90 million diners, generating $41.3 million in revenue and a net loss of $149,000 for the first nine months of 2008. 
http://www.opentable.com/
http://www.sec.gov/Archives/edgar/data/1125914/000104746909000513/a2190140zs-1.htm

S.F.-Based SocialMedia Networks Lands $6 Million in Second Round

San Francisco -- SocialMedia Networks, the San Francisco-based developer of an independent social media advertising network, said on Friday that it has raised $6 million in its second round of funding, co-led by IDG Ventures SF and previous investor Charles River Ventures. "We are in a great position to now work on corporate partnerships and grow our sales team," said Seth Goldstein, the company's co-founder and CEO. SocialMedia's network delivers ads within more than 5,000 applications running on Facebook, Bebo, Hi5 and MySpace. In most cases, a consumer interacts with an opt-in banner, where they answer a question or fill out a poll. The results of their interactions are then delivered to their friends through a "word of mouth" ad.
http://www.socialmedia.com/
http://media.prnewswire.com/en/jsp/myPRNJ.jsp?profileid=1140076&resourceid=3910062

Brisbane-Based Glam Media Acquires S.F.-Based AdaptiveAds

Brisbane, Calif. -- Glam Media, a Brisbane- and New York-based network of women's and men's web sites with more than 900 publishers, said that it has acquired AdaptiveAds, a developer of display ad targeting and optimization technology based in San Francisco and India. Financial terms of the deal were not disclosed. Samir Arora, Glam's chairman and CEO, said that adding AdaptiveAds to the fold will provide "insight into how ads behave with different audiences," while allowing brands to act on the knowledge. With the acquisition, Glam plans to open an office in Mumbai, India and establish an engineering presence in Pune, India. AdaptiveAds' U.S.-based employees will join Glam's ad products team in Brisbane. Glam expects a net addition of approximately 20 new employees, bringing its total to 200.
http://www.GlamMedia.com
http://www.glammedia.com/about_glam/news/2009/01/29/glam-media-acquires-adaptiveads

Netflix: More Users Streaming Movies Than Switching to Blu-ray

Los Gatos, Calif. -- New data from Los Gatos-based Internet movie rental service Netflix suggests that a larger percentage of its users are now downloading movies rather than switching to Blu-ray format. The company said that about 700,000 Netflix subscribers now are renting Blu-ray discs through the service, according to Sillicon Alley Insider. That represents almost an 30% increase from last September. At the same time, however, the company said that "millions" of subscribers used its streaming service in the last month. Some analysts believe that the quick adoption of digital delivery could be Blu-ray's biggest threat, never allowing the format to take off.
http://www.alleyinsider.com/2009/1/netflix-blu-ray-subscribers
http://www.netflix.com/

San Mateo-Based AdMob Adds $12.5 Million to Third Round

San Mateo, Calif. -- Four months after originally closing its third round of funding, San Mateo-based AdMob, developer of a mobile advertising marketplace, said on Thursday that it has added another $12.5 million from DFJ Growth Fund and Northgate Capital. The round has now re-closed at $28.2 million, and the company ahs raised $47.2 million in less than three years. "We believe that now is a critical moment for us to cement our leadership position by making the investments that will help us to come out of this challenging economic environment even stronger than when we went in," wrote CEO Omar Hamoui in a blog post. Since October, AdMob has begun hiring local staff in key worldwide markets, as well as adding new language interfaces, with an emphasis in Western Europe, India, South Africa and Japan. It also has deepened its investment in its mobile technology platform, including its targeting, optimization and ad serving algorithm.
http://www.admob.com/
http://blog.admob.com/2009/01/29/admob-raises-125-million-in-series-c-extension-round/

Redwood City-Based VirtuOz Raises $11.4 Million in Second Round

Redwood City, Calif. -- VirtuOz, a Redwood City-based developer of customer service technology that allows humans to interact with Internet-based virtual agents through chat and instant messaging, said on Thursday that it has raised $11.4 million in its second round of funding. Mohr Davidow Ventures led the round, which also included participation from Galileo Partners and Inventures Group. The company said that it will use the proceeds to scale its operations and advance product development. Alexandre Lebrun, the co-founder and CEO of VirtuOz, said that the funding "gives us the opportunity to deliver our technologies to a broader set of customers worldwide who are faced with sky-rocketing support costs." Current customers include online emarketplace eBay.fr, travel agency Voyages-sncf.com, telecom service provider AOL-Neuf, insurance group MMA.fr and financial services provider Banque Accord.
http://www.virtuoz.com
http://biz.yahoo.com/prnews/090129/aqth016.html?.v=78

Macrovision Sells TV Games Network to Betfair for $50 Million

Santa Clara, Calif. -- Macrovision, the Santa Clara-based provider of copy-protection technology and media databases, said that it has sold its TV Games Network (TVG) interactive TV horserace wagering service to U.K.-based Betfair for $50 million in cash. The deal comes just weeks after Macrovision agreed to sell its TV Guide Network to film studio Lionsgate for $255 million. TVG is the official TV and interactive wagering partner of the National Thoroughbred Racing Association, offering advance deposit wagering services in the U.S. Fred Amoroso, the president and CEO of Macrovision, said that the sale will help focus his company around its goal of "powering a uniquely simple home entertainment experience."
http://www.tvg.com
http://www.macrovision.com
http://www.businesswire.com/news/home/20090127006426/en  

Redwood Shores-Based Omnitura to Raise $24 Million

Redwood Shores, Calif. -- Omnitura Therapeutics, a Redwood Shores-based biopharmaceutical company developing drugs to treat cancer, said that it has signed a deal to raise $24 million through a private placement. Under the agreement, the firm will get $8 million by March 31, another $8 million by Dec. 31 and the final $8 million by the end of 2010. "We anticipate that these funds will cover Omnitura's operations for three years and enable us to proceed with Phase I and Phase II clinical development of Aneustat our lead multivalent cancer therapy," said Jeff Dao, the company's president and COO.
http://www.omnitura.com
http://biz.yahoo.com/prnews/090129/sf64296.html?.v=1

Los Gatos-Based TriCipher Raises $12 Million in Third Round

Los Gatos, Calif. -- TriCipher, the Los Gatos-based developer of an authentication system designed to help companies secure access to online applications, said that it has raised $12 million in its third round of funding, Though the company did not reveal specific investors in the round, previous investors have included ArrowPath Venture Capital, EPIC Ventures, Intel Capital, RBC Technology Ventures and Trident Capital. TriCipher said that it has added 100 new clients over the past nine months, including companies that are launching new web-based services to their customers and organizations providing remote access to applications to their employees and partners.
http://www.tricipher.com/
http://www.tricipher.com/news/tricipher_secures_12M.html

San Jose-Based Bookham to Merge with Fremont's Avanex

San Jose, Calif. -- Bookham, a San Jose-based maker of optical components and subsystems, said that it has agreed to merge with Fremont-based Avanex, a developer of technology designed to improve the performance of fiber optic communications networks. Under the all-stock deal, Avanex shareholders will receive 5.4 shares of Bookham's stock for each of their shares, and will own about 46.8% of the combined company. The companies said that the move will generate $7 million of quarterly cost savings. "The combination of Bookham and Avanex creates synergies that we expect will significantly improve financial performance faster than either of the two companies could accomplish on a stand-alone basis," said Alain Couder, the president and CEO of Bookham, who will lead the combined company. The merger is expected to be completed within 3-6 months.
http://www.bookham.com/
http://www.avanex.com/
http://www.irpage.net/bkhm/index.html

HealthCentral Acquires San Mateo-Based Wellsphere

San Mateo, Calif. -- HealthCentral, a Virginia-based operator of several dozen health-related web sites and its own advertising network, said that it has acquires San Mateo-based health technology company Wellsphere. Financial terms of the deal were not disclosed. Wellsphere operates an online community that consists of more than 1,500 health and wellness bloggers, and includes technology designed to deciphers highly specific health information. The technology powers Stanford University's BeWell@Stanford site. HealthCentral said that the acquisition adds nearly four million unique monthly visitors to its online audience. "This is a significant combination of quality audience and content with one-of-a-kind technology and scale," said Christopher Schroeder, the CEO of HealthCentral. Wellsphere's operations will remain in San Mateo.
http://www.HealthCentral.com
http://www.Wellsphere.com
http://www.thehealthcentralnetwork.com/news/20090128.html

TechCrunch Founder to Reassess Career Following Incident

Atherton, Calif. -- Michael Arrington, the founder and co-editor of Atherton-based TechCrunch, a popular blog focused on Internet products and companies, said on Wednesday that he plans to take off most of February to reassess his future following an incident on Tuesday in which someone deliberately spat in his face at an event in Germany. "In the past I’ve been grabbed, pulled, shoved and otherwise abused at events, but never spat on," wrote Arrington in a blog post. "I think this is where I'm going to draw a line… It's one step away from something far more violent." Arrington also revealed that he and his family received death threats over the summer, and paid more than $2,000 a day for private protection. So real were the threats that he resorted to hiding out at his parents' home. "We write about technology and entrepreneurship," Arrington wrote. "These things are important, but not so important that we should fear for our safety or the safety of our families."
http://www.techcrunch.com/2009/01/28/some-things-need-to-change/

San Jose-Based Talari Networks Lands $6.2 Million in Funding

San Jose, Calif. -- Talari Networks, a San Jose-based developer of networking technology, said that it has landed $6.2 million in a new round of funding led by Menlo Ventures. Several previous private investors also participated in the round, which the company will use to significantly expand its research and development operations in North Carolina's Research Triangle area. Talari's adaptive private networking technology is designed to help clients build wide-area networks (WANs).
http://www.talarinetworks.com
http://www.talarinetworks.com/55.html

Palo Alto-Based NVP Invests $4.2 Million in Appnomic Systems

Palo Alto, Calif. -- Norwest Venture Partners (NVP), a Palo Alto-based venture capital firm, said on Wednesday that it has invested $4.2 million in Appnomic Systems, an India-based provider of infrastructure management services, previously known as Vitage Technologies. Appnomic, which has operations in India, the Middle East and Africa, said that it will use the funding to strengthen its existing market presence, expand into the U.S. and build out its product and service offerings. As part of the investment, Promod Haque, managing partner at NVP, will join the company's board of directors.
http://www.appnomic.com/
http://www.nvp.com/news/nvppressDrill.aspx?prID=154

San Jose-Based Novafora Completes Acquisition of Transmeta

San Jose, Calif. -- Novafora, a San Jose-based developer of video processors, said on Wednesday that it has completed its acquisition of Transmeta, a Santa Clara-based developer of microprocessor and semiconductor technologies. The deal, first announced in November, was finalized upon the approval of Transmeta's shareholders. Financial terms were not disclosed. "The addition of Transmeta's power management technology to our video processor will enable us to target Novafora's products to the broadest range of video-oriented devices," said Zaki Rakib, the CEO of Novafora.
http://www.novafora.com
http://biz.yahoo.com/bw/090128/20090128005408.html?.v=1

Mountain View-Based Carrier IQ Raises $20M in Third Round

Mountain View, Calif. -- Carrier IQ, a Mountain View-based developer of software that give mobile carriers, phone manufacturers and service providers detailed metrics on service quality and usage, said on Tuesday that it has raised $20 million in its third round of funding. Investors included Intel Capital and Presidio Ventures. The company said that it will use the proceeds to fuel product development and expansion, including strengthening its geographical reach in both Europe and the Asia Pacific region. Carrier IQ's software, which consists of embedded software on mobile devices and server-side analytics applications, is designed to help users understand in detail a wide range of performance and usage characteristics of mobile services and devices. The software currently is embedded in 35 million mobile handsets worldwide.
http://www.carrieriq.com
http://www.realwire.com/release_detail.asp?ReleaseID=11138

Campbell-Based Barracuda Networks Acquires Yosemite Technologies

Campbell, Calif. -- Barracuda Networks, a Campbell-based maker of email and web security appliances, said on Tuesday that it has acquired Fresno-based Yosemite Technologies, a developer of data backup and disaster recovery products. Financial terms of the deal were not disclosed. Barracuda said that it already has incorporated Yosemite's backup technology into its own backup service. Barracuda also said that it will continue to sell and support Yosemite's products as part of its new BarracudaWare software group.
http://www.barracudanetworks.com
http://www.barracudanetworks.com/ns/news_and_events/index.php?nid=329

Report: AOL Could be Preparing to Sell Bebo Social Network

New York -- Just 10 months after acquiring U.K.-based Bebo for $850 million, AOL may now be on the verge of selling the online social network, according to TechCrunch. Citing sources "intimately acquainted" with the company, the news site reported that AOL is quietly pitching Bebo for $200 million following its poorer-than-expected performance in the midst of the recession, as well as its overall change in editorial focus. AOL has denied the report. "AOL is indeed quietly pondering a sale after watching Bebo perform much worse than it had hoped," TechCrunch reported. "That, combined with an advertising market buffeted by the waves of the economic downturn, means Bebo's days at AOL could be numbered."
http://www.techcrunch.com/2009/01/27/a-year-later-aol-is-contemplating-a-bebo-sale/

Mozilla Makes $100K Grant for Development of Open Source Video

Mountain View, Calif. -- Mozilla, the Mountain View-based developer of the Firefox web browser and other open source software projects, announced that it has made a $100,000 grant to the Wikimedia Foundation, earmarked for the development of open source video technology. Third party developers will be able to apply for funds to work on a free, open source video encoding platform called Theora. "We believe that Theora is the best path available today for truly open, truly free video on the Internet," Mozilla's Melissa Shapiro wrote in a blog post. "We also believe that it can be improved in video quality, in performance, and in quality of implementation, and Mozilla is proud to be supporting the development of Theora software with a $100,000 grant."
http://blog.mozilla.com/blog/2009/01/26/in-support-of-open-video/

Sunnyvale-Based Stretch Inc. Raises $15 Million in Second Round

Sunnyvale, Calif. -- Stretch Inc., a Sunnyvale-based developer of software configurable processors, said on Monday that it has raised $15 million in its second round of funding, co-led by Worldview Technology Partners, Oak Investment Partners and Menlo Ventures. Stretch said that it will use the proceeds to support increased volume manufacturing of its products. "With many customers in volume production of our silicon and board-level solutions, we are in a strong financial position to meet their increasing quantity requirements," said Bob Beachler, the company's vice president of marketing. 
The company, which has more then 60 employees, said that its products, used in video processing, machine vision and wireless applications, are the first to embed programmable logic within the processor.
http://www.stretchinc.com
http://biz.yahoo.com/iw/090126/0468565.html

Report: S.F.-Based Twitter to Secure New Funding at $250M Valuation

San Francisco -- Twitter, the popular San Francisco-based microblogging service, has signed a term sheet with Institutional Venture Partners to raise a new round of funding at a $250 million valuation, TechCrunch reported, citing two unnamed sources. The company most recently raised $15 million last June from investors including Spark Capital and Bezos Expeditions. Twitter also reportedly turned down a $500 million buyout offer from Palo Alto-based online social network Facebook in November. TechCrunch said that Twitter is likely to raise more through this new financing than the $20 million it's received in its two previous rounds.
http://www.techcrunch.com/2009/01/24/twitter-raising-new-cash-at-250-million-valuation/

Los Altos-Based Talend Lands $12 Million in Third Round

Los Altos, Calif. -- Talend, a Los Altos-based developer of open source data integration software, said on Monday that it has secured $12 million in its third round of funding, co-led by Balderton Capital and AGF Private Equity. The company, which now has raised more than $20 million since its inception, said that it will use the proceeds to expand into key markets in the Americas, Asia-Pacific and Europe, the Middle East and Africa. "The additional funding will allow us to expand our development teams, broaden the functional coverage of our technologies and provide more advanced products and features to our community and customers," said Fabrice Bonan, Talend's co-founder and COO.
http://www.talend.com
http://www.businesswire.com/news/home/20090126005265/en

Santa Clara-Based SpectraLinear Raises $10 Million in Third Round

Santa Clara, Calif. -- SpectraLinear, a Santa Clara-based developer of timing technologies for the consumer, computer and communication markets, said on Monday that it has raised $10 million in its third round of funding, led by new investor Horizon Ventures. Previous investors InterWest Partners, Norwest Venture Partners, Velocity Interactive Group and ComVentures also participated in the round, which the company will use for working capital and to develop new programmable products. "We can now further accelerate our market progress," said Ilhan Refioglu, the company's president and CEO.
http://www.spectralinear.com
http://spectralinear.com/company/press_releases/press_release_012609.php

L.A. Times: Google to Begin Pushing Agenda with New Administration

Mountain View, Calif. -- One of the top overall contributors to the Obama campaign and inauguration, Internet search giant Google now plans to begin wielding some of its new-found influence in Washington, the Los Angeles Times reported. The Mountain View-based company plans to push for the expansion of high-speed Internet access, allowing more people to utilize its services, as well as network neutrality, which would keep service providers from charging sites to deliver their content more quickly. "This administration is more focused on science and technology," Google CEO Eric Schmidt told the paper. "That's positive for all of technology, and particularly Google." Schmidt was one of four Google executives on Obama's transition team, and the company last month formally opened its new office in Reston, to focus on business with the federal government.
http://www.latimes.com/news/nationworld/nation/la-fi-google24-2009jan24,0,5255660.story

San Mateo-Based Lucid Imagination Launches with $6 Million

San Mateo, Calif. -- Lucid Imagination, a San Mateo-based distributor and supporter of the widely installed Apache Lucene/Solr search technology, said on Monday that it has officially launched operations with $6 million in new funding from Granite Ventures and Walden International. The company said that it will use the funds to expand its technical staff, as well as grow its sales and marketing functions. "The strength of the Lucene community demonstrates that open source search technology is a viable, cost effective alternative to expensive proprietary technology," said Eric Gries, the company's CEO. "When search application developers think of Lucene and related projects, we want them to view Lucid Imagination as their destination for expertise and resources." Current clients include AOL, Apple, Comcast and Zappos.
http://www.lucidimagination.com/
http://www.lucidimagination.com/index.php?option=com_content&task=view&id=121&Itemid=35

Campbell-Based Coulomb Technologies Lands $3.75 Million

Campbell, Calif. -- Coulomb Technologies, a Campbell-based developer of products and services providing a plug-in vehicle charging infrastructure, said on Monday that it has landed $3.75 million in its first round of funding, led by Germany's Estag Capital. The company said that that the cash infusion will allow it to continue aggressively rolling out its smart networked charging stations. Coulomb also plans to boost its engineering, marketing and business development activities, as major auto manufacturers prepare to deliver electric vehicles in the coming months.
http://www.coulombtech.com
http://biz.yahoo.com/bw/090126/20090126005471.html?.v=1

VC Investments Shrink to Five-Year Low; Clean Tech Grows

Arlington, Va. -- Venture capitalists invested $28.3 billion in 3,808 deals in 2008, marking the first yearly decline of total investments since 2003, according to a new report from PricewaterhouseCoopers and the National Venture Capital Association (NVCA). The figures represented an 8% decrease in dollars and a 4% drop in deal volume from 2007. Investments in the fourth quarter totaled $5.4 billion, the lowest amount since the first quarter of 2005 and a 26% drop from the prior quarter. The notable exception, however, came in the clean technology sector, which saw a 50% increase in investment dollars last year. Seed stage companies also received more money, reaching the highest level seen since 2000. "The stability of seed and early-stage deals as a percentage of total deal volume suggests that venture capitalists are continuing to fund very young companies, giving credence to the philosophy that an economic downturn is a time ripe with opportunity," said Mark Heesen, president of the NVCA. 
http://www.nvca.org/ffax.html
http://www.nvca.org/pdf/08Q4MTReleaseFINALwires.pdf (PDF)

San Francisco-Based Social News Site Digg to Cut 10% of Staff

San Francisco -- Digg, the San Francisco-based social news aggregation site that lets users vote on what they think are the most important news stories, said on its blog that it is planning an unspecified round of layoffs. All Things D reported that the company, which raised $28.7 million in its third round of funding last September, plans to cut about 10% of its staff of 75. "Given the current economic climate, we've made the decision to take a more conservative approach to our expansion plans and aggressively focus on reaching profitability within the year," wrote Digg CEO Jay Adelson. "We'll be taking proactive measures to manage our costs including a headcount reduction in certain areas that are less core to this year's objectives while continuing to hire for roles that will help build on our leadership position and get us to profitability faster. This includes hiring a direct sales team, in addition to other targeted hires in 2009."
http://blog.digg.com/?p=516
http://kara.allthingsd.com/20090122/digg-to-cut-10-percent-of-employees-says-it-will-try-to-be-profitable-in-2009-the-entire-blog-post/

Intel Chairman Craig Barrett to Retire in May

Santa Clara, Calif. -- Intel, the Santa Clara-based chipmaker, said on Friday that Craig Barrett will retire as its chairman in May. Barrett joined the company in 1974,serving as its CEO from 1998 through 2005. He also currently chairs the U.N. Global Alliance for Information and Communications Technology and Development. "His legacy spans the creation of the best semiconductor manufacturing machine in the world, leading Intel for seven years as we emerged into a global powerhouse, and most recently as our industry's senior statesman and ambassador," said Paul Otellini, Intel's president and CEO. Independent director Jane Shaw, who joined the company's board in 1993, will replace Barrett as non-executive chairman beginning in May.
http://www.intel.com/pressroom/archive/releases/20090123corp_a.htm?iid=pr1_releasepri_20090123ra

San Jose-Based Xactly Acquires Former Rival Centive

Lowell, Mass. - Xactly, a San Jose-based developer of sales performance management software, said that it has acquired former rival Centive, a Massachusetts-based maker of sales compensation and sales performance management software. Financial terms of the all-stock deal were not disclosed. Xactly said that Centive's employees will join the combined company, which will support both companies' product platforms for a minimum of 18 months. The company will be led by Xactly's management team, and will maintain its headquarters in San Jose.
http://www.xactlycorp.com/
http://www.centive.com/news/item/type/news/year/2009/item/146

Report: YouTube to Expand Ad Program for Media Partners

San Bruno, Calif. -- YouTube, the San Bruno-based online video site owned by Google, plans to expand a program that lets media firms sell ads against their videos on the site, TechCrunch reported, citing "industry sources." CBS already sells ads against the videos it posts on the site, in addition to the videos of CBS-owned content that ordinary users upload. These videos are caught by YouTube's Content ID system, which identifies when certain videos under copyright are uploaded,then either blocks them or attaches ads from which the copyright holders then take a cut of the revenue. TechCrunch posited that this expansion of the ad program will likely not be offered to popular users who are part of YouTube's Partners Program, but will instead benefit the company's thousands of traditional media partners.
http://www.techcrunch.com/2009/01/21/exclusive-youtube-will-soon-let-big-content-partners-bring-their-own-ads/

Layoffs Hit Electronic Arts' "Madden NFL" Studio

Redwood City, Calif. -- Electronic Arts (EA), the Redwood City-based developer and publisher of video games, has laid off an undisclosed number of staff from its Tiburon studio in Florida, which develops the popular "Madden NFL" franchise, the Orlando Sentinel reported. The cuts are part of the company's previously announced plan to trim expenses by cutting 10% of its staff, or about 1,000 workers. The restructuring, expected to save EA $120 million a year, also calls for consolidation or closure of at least nine studio and publishing locations.
http://blogs.orlandosentinel.com/etan_on_tech/2009/01/layoffs-hit-electronic-arts-tiburon-in-maitland.html

comScore: Global Internet Audience Surpasses One Billion

Reston, Va. -- The global Internet audience for the first time surpassed 1 billion people in December, according to new figures released by comScore. The Asia-Pacific region accounted for the highest share at 41%, followed by Europe (28%), North America (18%), Latin-America (7%) and the Middle East and Africa (5%)."Surpassing one billion global users is a significant landmark in the history of the Internet," said Magid Abraham, the president and CEO of comScore. "It is a monument to the increasingly unified global community in which we live." In terms of nations, China had the largest online audience with 179.7 million users, followed by the U.S., with 163.3 million.
http://www.comscore.com/press/release.asp?press=2696

Palo Alto-Based IMVU Raises $10M for 3D Virtual Community

Palo Alto, Calif. - IMVU, the Palo Alto-based developer of a 3D virtual community for consumers, announced on Thursday that it has landed $10 million in its fourth round of funding, led by Best Buy Capital. Previous backers Menlo Ventures, Allegis Capital and Bridgescale Partners also participated in the round, which the five-year-old  company plans to use to continue developing its virtual community. Though still in public beta, the community counts more than 30 million registered users and 100,000 registered developers. The company said that it is currently generating $1 million in revenue monthly, chiefly from the sale of virtual credits used to purchase digital products.
http://www.imvu.com
http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/01-22-2009/0004958822&EDATE=

San Mateo-Based 4Info Lands $20 Million in Equity, Debt Financing

San Mateo, Calif. -- 4Info, a San Mateo-based developer of ad-supported text message services, said on Thursday that it has raised $20 million in a new round of equity and debt funding, co-led by Peacock Equity and Gannett. Previous investors U.S. Venture Partners, Draper Fisher Jurvetson and Sand Hill Capital, as well as new investor Selby Ventures, also participated. The company said that it will use the proceeds to continue forging traditional media partnerships for integrated mobile campaigns, as well as to further develop its technology and services. 4Info's service delivers more than 80 million user-requested answers and alerts through text message each month. The company's ad network exceeds 16 million users.
http://advertising.4info.net/
http://biz.yahoo.com/iw/090122/0467943.html

Sega of America Confirms 30 Layoffs in San Francisco

San Francisco -- Video game publisher Sega has confirmed that it has laid off 30 employees from its Sega of America headquarters in San Francisco, gamesindustry.biz reported. "Sega of America has grown at pace with the booming videogame industry," the company said in a statement. "But at this time of economic recession, harsh retail landscape, and the reality of business challenges to profitability, we must take steps to reduce our cost structure and ensure long-term success. The decision to lay off staff was a difficult one, and we thank these employees for their contributions and wish them well in their future endeavours."  The layoffs follow similar staff reductions at fellow game companies, including Electronic Arts and THQ.
http://www.gamesindustry.biz/articles/sega-cuts-us-staff-by-30 
http://www.sega.com 

Linden Lab Acquires Two Virtual Goods Marketplaces

San Francisco - Linden Lab, the San Francisco-based developer of the "Second Life" virtual world, said that it has acquired two web-based marketplaces for virtual goods, Xstreet SL and OnRez. Financial terms of the deals were not disclosed. Linden Lab said that it plans to consolidate the two marketplaces on the Xstreet SL platform. Residents of Second Life bought and sold more than $360 million worth of virtual goods and services in 2008. There currently are more than 680,000 Second Life goods currently listed for sale online, including apparel, animations, vehicles, buildings and furniture.
http://biz.yahoo.com/bw/090121/20090120006310.html?.v=1
http://blog.secondlife.com/2009/01/20/xstreet-sl-and-onrez-to-join-linden-lab 

Mountain View-Based Google Shutters Newspaper Ad Sales Program

Mountain View, Calif. -- As part of a wider cost-cutting initiative, Mountain View-based Google has decided to shutter its two-year-old program that sells ads in print newspapers through an online marketplace. Around 800 newspapers had been participating in the program, which put unsold ad inventory in their pages up for auction on Google Print Ads. "While we hoped that Print Ads would create a new revenue stream for newspapers and produce more relevant advertising for consumers, the product has not created the impact that we -- or our partners -- wanted," Spencer Spinnell, the director of Google Print Ads, wrote in a blog post. Spinnell noted that the company "will continue to devote a team of people to look at how we can help newspaper companies." Google Print Ads will be officially discontinued on Feb. 28.
http://google-tmads.blogspot.com/2009/01/turning-page-on-print-ads.html

Report: SEC Investigating Apple Over Jobs' Medical Disclosures

Cupertino, Calif. -- The Securities and Exchange Commission (SEC) is investigating whether Cupertino-based Apple misled investors with its disclosures about the faltering health of CEO Steve Jobs, Bloomberg reported, citing "a person familiar with the matter." Both Apple and the SEC declined to comment, and the SEC is only required to disclose an investigation if it decides to take enforcement action. After Jobs -- who battled pancreatic cancer in 2004 -- began to appear more gaunt over the summer, the company announced that he would not deliver his trademark keynote at the Macworld conference earlier this month. As the conference was set to kick off, Jobs disclosed that a "hormone imbalance" was the cause of his weight loss, and that doctors said he should be back to normal by spring. Then, last week, Jobs announced that he would take a six-month medical leave of absence, stating that his health issues were "more complex than I originally thought." "The good news flipped by the bad news makes one wonder what Apple knew," Duke University law professor James Cox told Bloomberg.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aqanZoV6soWY&refer=home

S.F.-Based OneSeason.com Raises $3.5 Million in First Round

San Francisco -- OneSeason.com, the San Francisco-based developer of a virtual goods marketplace and social gaming platform for sports enthusiasts, said on Wednesday that it has raised $3.5 million in its first round of funding, led by Charles River Ventures (CRV). The company said that it will use the proceeds to build out its marketplace and network. Founded in mid-2007 by Mike Sroka and based next to AT&T Park in downtown San Francisco, OneSeason.com lets users showcase their sports knowledge and allegiances by acquiring and trading virtual shares of their favorite players using real money.
http://www.oneseason.com
http://biz.yahoo.com/iw/090121/0467518.html

S. F.-Based Riverbed to Acquire Mazu Networks for $25 Million

San Francisco -- Riverbed Technology, a San Francisco-based developer of wide-area network (WAN) optimization technology, said that it will acquire Mazu Networks, a Massachusetts-based provider of tools for managing business software applications, for $25 million in cash. Founded in 2000, Mazu offers software that analyzes network traffic and provides information about the interactions and dependencies between users, applications and systems. Riverbed said that the acquisition will extend its suite of WAN optimization products to include global application performance, reporting and analytics.
http://www.riverbed.com/company/news/press_releases/press_012009a.php

Bigfoot Networks Hires Howse as New CEO, Plans Move to San Jose

San Jose, Calif. -- Bigfoot Networks, a developer of gaming network cards, said on Wednesday that it will move its headquarters from Texas to San Jose after hiring Silicon Valley veteran Michael Howse as its new president and CEO. Howse replaces company founder Harlan Beverly, who will move into the roles of CTO and vice president of engineering. Howse most recently served as the president and CEO of PacketHop, and previously held executive roles at Creative Labs, S3 and 3dfx. Bigfoot's Killer network interface cards are designed to improve network performance for online gamers. The company plans to maintain its technology development operations in Austin, Texas.
http://www.killernic.com/
http://news.yahoo.com/s/prweb/20090121/bs_prweb/prweb1894074_2

Sunnyvale-Based AMD Sells Handheld Assets to Qualcomm

Sunnyvale, Calif. -- AMD, the Sunnyvale-based chipmaker, said on Tuesday that it has sold the basis of its handheld business to San Diego-based handset maker Qualcomm. Under the deal, Qualcomm acquired certain handheld graphics and multimedia assets from AMD in exchange for $65 million in cash. "With the sale of these handheld technology assets and resources to Qualcomm, we are better able to focus on our core business and leverage our unique position as a leader in both x86 computing and high-end graphics," said Robert Rivet, AMD's chief operations and administrative officer, as well as its CFO. Qualcomm said that the acquisition will enhance its multimedia capabilities, among other things giving it graphics cores that it has been licensing for several years.
http://www.amd.com
http://www.qualcomm.com 
http://www.amd.com/us-en/Corporate/VirtualPressRoom/0,,51_104_543_15944~129931,00.html

ThreatMetrix Moves from Australia to Los Altos, Hires New CEO

Los Altos, Calif. -- ThreatMetrix, a provider of services designed to help companies control online fraud and abuse, said that it has relocated from Australia to new headquarters in Los Altos. The company, which recently raised $7 million in its first round of funding from CM Capital and Technology Venture Partners, said that it will maintain its research and development operations in Australia, where it had been based since 2005. The company also has named Reed Taussig, the former president and CEO of Vormetric. Callidus Software and inquiry.com, as its new president and CEO. ThreatMetrix's technology profiles devices used in an online transaction, helping companies to determine whether the users are fraudsters or customers.
http://www.threatmetrix.com
http://biz.yahoo.com/iw/090120/0466807.html

Investments in Bay Area Companies Hit Lowest Level Since 2005

San Francisco -- Bay Area companies raised $1.93 billion in venture capital during the fourth quarter, the lowest total since the first quarter of 2005, according to new figures  from Dow Jones VentureSource. The largest chunk of that funding, about $837.2 million, went to companies in the information technology sector, though some of the largest rounds went to renewable energy firms. Those included Fremont-based Solyndra ($219.2 million), Sunnyvale-based CaliSolar ($51.9 million) and Mountain View-based SolFocus ($47.5 million). The lower overall numbers mirrored a national trend, which saw U.S. companies raise $5.5 billion during the quarter, 30% less than the prior year. "The data confirms what we've being hearing anecdotally for some time that many venture capital firms are circling the wagons to weather the downturn and are focusing more on the health and vitality of current portfolio companies rather than new investments," said Jessica Canning, the director of global research for Dow Jones VentureSource.

http://www.venturecapital.dowjones.com
http://biz.yahoo.com/prnews/090117/ph60055.html?.v=1

Friendster Opens U.S. Headquarters in Mountain View

Mountain View, Calif. -- Five months after raising $20 million in a new round of funding, online social network Friendster said that it has opened new U.S. headquarters in Mountain View. The company, which has the bulk of its users in the Asia-Pacific region, also said that it has opened new offices in  in Singapore and Sydney, with the latter serving as the base for company CEO Richard Kimber. Friendster said that the Mountain View office will house members of its executive staff, along with employees in all departments. IDG Ventures led the company's funding round in August. 
http://www.friendster.com
http://biz.yahoo.com/prnews/090119/aqm033.html?.v=71

Sunnyvale-Based AMD to Cut 1,100 Jobs, Reduce Salaries

Sunnyvale, Calif. -- AMD, the Sunnyvale-based chipmaker, said on Friday that it plans to cut 1,100 jobs -- around 9% of its staff -- in a move to slash expenses in the face of waning demand. "As a result of the continuing global economic downturn, we have determined that we need to take difficult but prudent actions designed to reduce our costs," said AMD in a statement. "Beginning in February, we are undertaking several steps to lower costs, including temporarily reducing employee base pay and suspending some benefits programs." In another cost-cutting move, the company said that its chairman, Hector Ruiz, and CEO  Dirk Meyer will temporarily take 20% salary cuts, while U.S. and Canadian executives holding the title of at least vice president will take 15% cuts. Other salaried workers will take a 10% cut, while hourly workers will see their wages trimmed 5%. All of those cuts are temporary, the company said.
http://www.amd.com

San Francisco-Based InsideView Raises $6.5 Million in Second Round

San Francisco -- InsideView, a San Francisco-based developer of sales intelligence software, said that it has raised $6.5 million in its second round of funding, co-led by previous investors Emergence Capital Partners and Rembrandt Venture Partners. The four-year-old company, which now has raised $14 million to date, said that it will use the proceeds to expand sales and marketing operations and further develop its platform. InsideView's software, known as SalesView, is designed to scope out sales opportunities across both traditional editorial sources and social media.
http://www.insideview.com/
http://www.insideview.com/NEWS-PRESS/press-01152009-secondround.html

Electronics Retailer Circuit City to Liquidate All 567 U.S. Stores

Richmond, Va. -- Unable to secure either a buyer or additional funding, consumer electronics retailer Circuit City on Friday reached a deal to liquidate the remaining merchandise at its 567 U.S. stores, including about 20 in and around the Bay Area. "We are extremely disappointed by this outcome," said James Marcum, the vice chairman and acting president and CEO of Circuit City. "The company had been in continuous negotiations regarding a going concern transaction. Regrettably… we were unable to reach an agreement with our creditors and lenders. "The news comes less than a week after Circuit City, which filed for Chapter 11 bankruptcy protection in November, said that it was in "significant" talks with two "highly motivated and interested parties." Last spring, movie rental giant Blockbuster made a bid to acquire the chain for more than $1 billion, but later withdrew its offer, citing market conditions. Circuit City, which currently has more than 30,000 employees, has hired Great American Group, Hudson Capital Partners, SB Capital Group and Tiger Capital Group to assist in the liquidation.
http://www.circuitcity.com 
http://media.prnewswire.com/en/jsp/myPRNJ.jsp?profileid=1140074&resourceid=3900634 

Sunnyvale-Based Avantis Medical Lands $10 Million

Sunnyvale, Calif. -- Avantis Medical Systems, a Sunnyvale-based developer of visualization technology aimed at improving the detection of cancers of the gastrointestinal (GI) tract, said on Friday that it has raised $10 million in its third round of funding. MC Silicon Valley/Mitsubishi International led the round, which also included participation by previous investors Montreux Equity Partners, Thomas Fogarty and CN Investment Partners. Avantis said that it will use the proceeds to establish selected "Centers of Excellence" across the U.S., as well as to fund sales and marketing efforts. The company makes an imaging device used in conjunction with a standard colonoscope that provides a backward view of the colon, complimenting the forward view of the colonoscope.
http://www.avantismedical.com
http://media.prnewswire.com/en/jsp/myPRNJ.jsp?profileid=1140076&resourceid=3900691