Silicon Valley Wire

White House Announces Plans to Strengthen Nation's Cyber Security

Washington, DC -- Calling this "a transformational moment" for the U.S., President Obama on Friday announced plans to significantly beef up the nation's cyber security, starting with the appointment of a new cyber czar, who he expects to name in the coming weeks. "In short, America's economic prosperity in the 21st century will depend on cybersecurity," said Obama. "It's now clear this cyber threat is one of the most serious economic and national security challenges we face as a nation. It's also clear that we're not as prepared as we should be, as a government or as a country." The remarks followed a 60-day review of the nation's communications and information infrastructure by the National Security Council and Homeland Security Council. Among the findings were the need for better government leadership, as well as expanded partnerships between the government and private sector and the development of an information sharing framework to improve incident response.
http://www.whitehouse.gov/CyberReview/
http://www.whitehouse.gov/the_press_office/Remarks-by-the-President-on-Securing-Our-Nations-Cyber-Infrastructure/
http://www.whitehouse.gov/assets/documents/Cyberspace_Policy_Review_final.pdf (PDF)

EFF Launches "Teaching Copyright" Curriculum, Web Site

San Francisco -- The Electronic Frontier Foundation (EFF), a digital civil liberties advocacy group based in San Francisco, said that it has launched a new "Teaching Copyright" curriculum and web site. Responding to educational campaigns from copyright interests, the EFF said that its goal is "to help educators give students the real story about their digital rights and responsibilities on the Internet and beyond." "Kids are bombarded with messages that using new technology is illegal," said the EFF's Richard Esguerra. "Instead of approaching the issues from a position of fear, Teaching Copyright encourages inquiry and greater understanding. This is a balanced curriculum, asking students to think about their role in the online world and to make informed choices about their behavior."
http://www.teachingcopyright.org
http://www.eff.org/press/archives/2009/05/27 

Facebook Names Winners of App Funding Contest

Palo Alto, Calif. -- Social networking giant Facebook has announced the 20 applications that will receive investments through its fbFund program, with winning developers landing about $25,000 each and participating in a 10-week incubation program in Palo Alto, where the company is based. Facebook also will take up to a 5% stake in each venture. The company created its $10 million fbFund in conjunction with Accel Partners and Founders Fund. Winners include dating application Frintro; avatar-based social networking app Funji; Gameyola, a monetization platform for Flash games; digital media sharing app Photos I Like; and non-profit microlending app Vittana. The complete list of winners is available at the link below.
http://developers.facebook.com/news.php?blog=1&story=249

Google to Introduce "Wave" Web Communication Platform

Mountain View, Calif. -- Google said that it plans to launch a new tool combining email, chat and content-sharing in a single interface. The Mountain View-based company called the platform, to be known as Google Wave, "equal parts conversation and document, where people can communicate and work together with richly formatted text, photos, videos, maps and more." One feature highlighted in numerous press reports has been Wave's real-time display, including the ability to see participants in a conversation adding their comments character-by-character. The service still is in the relatively early stages of development, with the company planning to open Wave's APIs to developers on Friday, according to TechCrunch. Google said that it does not have a specific timeframe for public release of the product.
http://wave.google.com
http://googleblog.blogspot.com/2009/05/went-walkabout-brought-back-google-wave.html
http://www.techcrunch.com/2009/05/28/google-wave-drips-with-ambition-can-it-fulfill-googles-grand-web-vision/

Redwood Shores-Based GreenRoad Raises $15 Million in Funding

Redwood Shores, Calif. -- GreenRoad, a Redwood Shores-based developer of technology designed to improve driving behavior, said on Thursday that it has raised $15 million in a new round of funding, led by DAG Ventures. Previous investors Benchmark Capital, Virgin Green Fund, Amadeus Capital and Balderton Capital also participated. "This investment of capital will enable GreenRoad to accelerate its expansion with fleet customers and partners," said CEO Dan Steere. GreenRoad's automated service integrates real-time, in-vehicle feedback with coaching, reporting and risk analysis tools to help drivers improve their performance on the road.
http://www.greenroad.com
http://www.greenroad.com/press-releases/pr-52809.html

Redwood City-Based Trilliant to Acquire Santa Clara's SkyPilot Networks

Redwood City, Calif. -- Trilliant, a Redwood City-based developer of hardware, software and services used by utilities to deliver advanced metering and smart energy grids, said on Thursday that it has acquired Santa Clara-based SkyPilot Networks, a maker of long-range wireless mesh broadband equipment. Financial terms of the deal were not disclosed. Andy White, the president and CEO of Trilliant, said that the acquisition will allow his company to offer utility clients "high-speed functionality at a reasonable cost, regardless of geography and topology." Nine-year-old SkyPilot currently has more than 500 customers, including utilities, wireless Internet service providers and municipal agencies. \
http://www.trilliantinc.com
http://www.trilliantinc.com/5_Nws/_PR/05-28-09.html

Time Warner to Spin Off AOL by Year's End

New York -- Marking what may be the final chapter in a business relationship that never delivered on its initial promise, media giant Time Warner announced on Thursday that it will spin off AOL into an independent, publicly traded company. The move is expected to be completed by the end of this year, with Time Warner also buying back a 5% stake in AOL that it previously had sold to Mountain View-based Google. "We believe that a separation will be the best outcome for both Time Warner and AOL," said Jeff Bewkes, the chairman and CEO of Time Warner. AOL will continue to run its advertising and Internet content businesses, as well as its trademark dial-up Internet access service, which still counts around 6.3 million subscribers. Calling the move "a great opportunity for AOL, our employees and our partners," AOL Chairman and CEO Tim Armstrong, a former executive at Google, said that becoming a standalone company "positions AOL to strengthen its core businesses, deliver new and innovative products and services and enhance our strategic options." The news comes eight years after the two companies completed a ballyhooed $147 billion merger that they promised would reshape the media landscape. The deal, however, quickly lost its luster, with AOL losing the bulk of its dial-up subscribers -- which once numbered 26.7 million -- to faster broadband connections. The combined company has since been forced to write down million of dollars to account for the declining value of AOL's assets.
http://corp.aol.com/press-releases/2009/05/time-warner-inc-announces-plan-separate-aol

Report: Head of Yahoo's Video Division to Resign

Sunnyvale, Calif. -- In the wake of major layoffs at Sunnyvale-based Yahoo's video division, Satish Menon, vice president of the company's consumer platforms group, is planning to step down, the blog NewTeeVee reported. Menon told NewTeeVee that he plans to embark on a project that will "introduce community into online education using online social tools." "Time for a change," Menon said. "I am going to apply everything I have learned last 25 years or so to see if we can reinvent education... especially online education."
http://newteevee.com/2009/05/26/head-of-yahoo-video-division-to-leave/  

Blockbuster to Test Online Video Game Rental Service

Dallas -- Looking to ramp up the competition against chief rival Netflix, video rental giant Blockbuster said that it will launch a pilot program of its planned online video game rental service on June 30 in the Cleveland, Ohio area, before expanding nationwide before the end of the year. "This pilot allows us to test a variety of implementation details and gather invaluable key learnings and consumer insights before finalizing and launching a national online game rental offering," said Bob Barr, the vice president and general manager of Blockbuster.com. The test will be open to existing subscribers of Blockbuster's online movie rental service, and will allow customers to add Wii, PS2, PS3 and Xbox 360 games to their rental queues for an incremental monthly fee.
http://www.blockbuster.com
http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/05-27-2009/0005033035&EDATE=

Livermore-Based UltraCell Lands $3.8 Million in New Funding

 Livermore, Calif. -- UltraCell, a Livermore-based maker of fuel cells for mobile devices, said that it has raised $3.8 million in a new round of funding, which the company plans to use to expand production at its Ohio manufacturing facility. Previous investors BASF Venture Capital, OnPoint Technologies, Espirito Santo Ventures and Miami Valley Venture Fund participated in the round, which increased the company's backing to $30 million since its founding in 2002. UltraCell also plans to use a portion of the new funds to expand sales, marketing and field trial testing of its flagship product, the UltraCell XX25 portable fuel cell, which is designed to run a ruggedized laptop computer for up to eight hours on a single cartridge. "Our founding vision was to bring fuel cells out of the labs and into mass manufacturing -- and we're thrilled to be succeeding in this goal," said UltraCell CEO Keith Scott. "This new funding will help us expand our market presence significantly."
http://www.ultracellpower.com/
http://finance.yahoo.com/news/UltraCell-Adds-38-Million-in-iw-15344431.html

San Jose-Based ActiveVideo to Acquire Avinity Systems

San Jose, Calif. -- In a marriage of interactive TV platform developers, San Jose-based ActiveVideo Networks said on Wednesday that it will acquire Netherlands-based Avinity Systems for an undisclosed sum. ActiveVideo said that the deal, combining companies that by the end of 2009 will have deployed interactive services to more than five million homes worldwide, will strengthen its technology and application offerings. "The two companies were pursuing the same vision on different continents," said Gary Lauder, the chairman of ActiveVideo Networks. "Fortunately, their strengths and technological assets are very complementary." Lauder said that all employees from both companies are expected to be retained. Once the deal is completed, ActiveVideo will have deployments with service providers such as Oceanic Time Warner Cable and Grande Communications in the U.S., Tele2 and Reggefiber in Europe and PCCW in Hong Kong.
http://www.activevideo.com/
http://finance.yahoo.com/news/ActiveVideo-Networks-Acquires-prnews-15353592.html?.v=1

Redwood City-Based Good Technology Acquires Intercasting

Redwood City, Calif. -- Good Technology, a developer of mobile messaging software formerly known as Visto, said on Wednesday that it has acquired Intercasting, a San Diego-based developer of social networking connectivity technology. Financial terms of the deal were not disclosed. Good said that the addition of Intercasting's Anthem platform will allow it to extend its reach beyond the smartphone market, enabling a "smartphone" experience for the billion-plus feature phones currently in use. Carriers currently using platform include Alltel, AT&T, Sprint, T-Mobile, Verizon Wireless and Virgin Mobile USA. The deal comes nearly three months after Visto completed its acquisition of Sunnyvale-based Good Technology from owner Motorola. The combined company retained the Good Technology name.
http://www.good.com/
http://www.good.com/corp/int_news.php?id=pr_090527

Twitter Teams with Production Companies on Reality TV Series

San Francisco - Twitter, the popular San Francisco-based microblogging service, has partnered with production companies Reveille and Brillstein Entertainment to develop a reality TV series that will "put ordinary people on the trail of celebrities in a revolutionary competitive format," Variety reported. "We've found a compelling way to bring the immediacy of Twitter to life on TV," Brillstein Entertainment's Jon Liebman told Variety. Additional details were not provided for the series, which reportedly was conceived by novelist and screenwriter Amy Ephron ("A Cup of Tea").
http://www.variety.com/article/VR1118004136.html 

Google to Pay $20 Million to Settle Suit with AdWords Clients

Mountain View, Calif. -- Google has agreed to pay $20 million to settle a class-action suit brought by several customers of its AdWords search advertising service, who among other claims alleged the Mountain View-based company breached contracts and falsely advertised. A federal court in San Jose has given preliminary approval to the settlement, which will be considered for final approval in September. The plaintiffs alleged that Google had been charging AdWords advertisers more than their per day daily budget. "The settlement is a great outcome for the class," said Steve Susman, of lead counsel Susman Godfrey.
http://media.prnewswire.com/en/jsp/myPRNJ.jsp?profileid=1140076&resourceid=3990964

Suntech Power to Raise $250 Million in Public Offering

San Francisco -- Suntech Power, a Chinese maker of crystalline silicon photovoltaic (PV) modules with U.S. headquarters in San Francisco, said on Friday that it plans to raise $250 million through a follow-on public offering. The company said that it will sell 20 million shares for $12.50 each, also granting underwriters the option to buy another 3 million shares to cover over-allotments. Suntech said that it will use the proceeds for capital expenditures, working capital and to repurchase and redeem existing securities. The company's solar products are used to generate electric power in the residential, commercial, industrial and public utility sectors.
http://www.suntech-power.com
http://phx.corporate-ir.net/phoenix.zhtml?c=192654&p=irol-newsArticle&ID=1291435&highlight=

Redwood City-Based Host Analytics Raises Second Round of Funding

Redwood City, Calif. -- Host Analytics, a developer of web-based corporate and financial performance management software, said on Thursday that it has raised its second round of funding worth "multiple millions of dollars." Previous investors Advanced Technology Ventures (ATV) and Trident Capital joined new investor StarVest Partners in the round, which the company will use to expand its product offerings and implement aggressive new sales and marketing programs. "We are confident that this latest round will help us more rapidly grab market share and more quickly achieve our goal of attaining profitability," said CEO Jon Kondo. Founded in 2000, Host Analytics currently has more than 8,000 paying clients using its budgeting, revenue planning, financial consolidation and balanced scorecard tools.
http://www.hostanalytics.com
http://finance.yahoo.com/news/Host-Analytics-Secures-Series-iw-15314642.html

San Jose-Based LogLogic Completes Deal for Mountain View's Exaprotect

San Jose, Calif. -- LogLogic, the San Jose-based developer of a platform for collecting, storing and reporting IT log data, said on Thursday that it has completed its acquisition of Mountain View-based partner Exaprotect, first announced in April. Financial terms of the deal were not disclosed. Exaprotect's software is designed to automatically establish a link between business policies and specific network configurations, helping companies meet compliance requirements and remediate security threats. LogLogic said that the acquisition will significantly increase its market presence, increasing its customer base to more than 1,100, and add security configuration change management to its offerings.
http://www.loglogic.com
http://www.loglogic.com/news/news-releases/2009/05/loglogic-completes-acquisition-of-exaprotect/

Time Names YouTube, Palm Among "10 Biggest Tech Failures" of Decade

New York -- Time magazine has labeled San Bruno-based online video site YouTube and Sunnyvale-based PDA-maker Palm to its list of the "10 Biggest Tech Failures of the Last Decade," alongside HD DVD, Microsoft Vista and the Segway. The list, compiled by 24/7 Wall St., includes products and companies that "clearly miss the mark of living up to the potential that its creators expected." The magazine said that it included YouTube, which was purchased by Google for $1.65 billion in 2006, for thus far failing to "come up with a model to make money by either selling advertising or charging for premium content, even though it has an a enormous audience and library of content." The magazine also called out Palm, once among the market leaders in smartphones, for losing significant ground to devices such as the iPhone and Blackberry. "Palm, one of the earliest makers of smartphones, was unable to follow up its success in the personal organizer business. Analysts pointed to the fact that the company was slow to realize that consumers wanted wireless voice and data from the same device," the magazine wrote.
http://www.time.com/time/specials/packages/article/0,28804,1898610_1898625_1898631,00.html
http://www.time.com/time/specials/packages/article/0,28804,1898610_1898625_1898634,00.html
http://www.time.com/time/specials/packages/completelist/0,29569,1898610,00.html (complete list)

Greylock Partners Moving Headquarters to Silicon Valley

Menlo Park, Calif. -- Forty-four years after its founding in the Boston area, Greylock Partners, one of the oldest venture capital firms in the U.S., announced that it is relocating its headquarters, including administrative and back office functions, to Silicon Valley. As part of the move, the firm has leased a new office, now under construction, in Menlo Park. Graylcok, whose current West Coast office is located in San Mateo, has been steadily expanding its West Coast presence over the past 10 years, adding partners and making investments in the area. Now, it plans to add several new positions, including partners, to its Silicon Valley office in the coming year. The firm said its Boston office will remain a key location and the firm plans to continue to invest in the area.
http://www.businesswire.com/news/home/20090519005426/en
http://www.greylock.com

Palo Alto-Based Project Playlist Buys TotalMusic

Palo Alto, Calif. -- Project Playlist, a Palo Alto-based social music site that lets users create and share song playlists, said that it has acquired the assets and employees of TotalMusic, a digital catalog management and reporting system. Financial terms of the deal were not disclosed. TotalMusic was an initiative conceived by Sony BMG and Universal Music Group, which acquired campus music streaming firm Ruckus last year, but then shut it down in February before launching any service. Project Playlist said that the deal will allow it to host a streaming music service, and help with e-commerce and a set of APIs. As a result of the acquisition, an undisclosed number of employees from both companies are being laid off. Project Playlist, which counts 45 million registered users, also announced on Tuesday that it has signed licensing deals with Sony/ATV Music Publishing and EMI Music Publishing.
http://www.playlist.com 
http://www.playlist.com/blog/entry/12417807875

Pleasanton-Based Bivio Networks Acquires FlowInspect

Pleasanton, Calif. -- Bivio Networks, a Pleasanton-based developer of networking systems key to network security and control, said that it has acquired Milan-based FlowInspect, a developer of software that allows customers to deploy deep packet inspection (DPI)-enabled applications and services. Financial terms of the deal were not disclosed. The move comes five months after Bivio raised $15.8 million in a new round of funding led by Silver Creek Ventures. Founded in 2003, FlowInspect has a client list that includes service providers, national network operators and government agencies throughout Europe and the Middle East. The two companies had partnered since 2006. Bivio expects to announce specific product offerings related to the acquisition later this year.
http://www.bivio.net/
http://www.bivio.net/news_releases/051809-fiacq.htm 

Intel Capital Invests in Two Jordanian Digital Content Firms

Santa Clara, Calif. -- Intel Capital, the investment arm of Santa Clara-basedchipmaker Intel, said that it will invest in two digital content companies based in Jordan -- Jeeran and ShooFeeTV. Financial terms of the investments, from Intel Capital's $50 million Middle East and Turkey Fund, were not disclosed. Jeeran is a user-generated content site, reaching 1 million members and 7 million unique monthly visitors. ShooFeeTV is a content provider and aggregator of Arab satellite channel listings, in addition to celebrity news, pictures and video clips. The funding will be used to help both companies pursue regional growth and development plans, and to extend product offerings.
http://www.intel.com/capital
http://www.ameinfo.com/196852.html

Sunnyvale-Based Palm Says Pre to Go On Sale June 6

Sunnyvale, Calif. -- Palm, the Sunnyvale-based maker of smartphones and PDAs, said that its Palm Pre smartphone will go on sale in the U.S. on June 6 with a price tag of $199, after a $100 rebate and two-year contract with Sprint. Touted as the company's answer to Cupertino-based Apple's iPhone, the Pre will be sold in Sprint stores, as well as from Best Buy, Radio Shack and select Wal-Mart stores.
http://blog.palm.com/palm/2009/05/palm-pre-availability.html 
http://www.sprint.com/palmpre

Bay Area's TechCrunch, GigaOm Head List of Top Technology Blogs

Atherton, Calif. -- Atherton-based TechCrunch, San Francisco-based GigaOM and Engadget are the top technology blogs, according to a new survey of nearly 250 technology PR professionals by PRSourceCode. The Firm's "Best of the Blogs" study also cited Michael Arrington of TechCrunch, Om Malik of GigaOM and Robert Scoble of Scobleizer at the top bloggers, and The Wall Street Journal's Business Technology Blogs, The New York Times' Bits Blog and CNET Blogs at the top blogs of tech publications. The study found that 96% of PR professionals include blogs as part of their media relations efforts at least some of the time, and 89% of those surveyed sometimes or always track, count and measure blog coverage the same as traditional publication coverage. The complete rankings in each category are available at the link below.
http://finance.yahoo.com/news/New-PRSourceCode-Research-bw-15301579.html?.v=1

AOL's Platform-A Heads List of Top 25 Online Ad Networks

Reston, Va. -- AOL's Platform-A remains the nation's largest Internet ad network, based on the number of U.S. Internet users reached in April, according to new figures released by comScore. During the month, Platform-A reached nearly 176.5 million U.S. Internet users, or 91.5% of the total audience, followed by Yahoo Network (167.1 million) and Google Ad Network (164.5 million). Several ad networks in the top 25 achieved double-digit growth during the past year, led by Turn Inc. (up 121%), CPX Interactive (up 88%) and 24/7 Real Media (up 48%). "Each of the top 25 ad networks has expanded its reach during the past year," said Jack Flanagan, an executive vice president at comScore. "It almost seems that new ad networks are emerging every day." The complete rankings are available at the link below.
http://www.comscore.com/Press_Events/Press_Releases/2009/5/Top_25_US_Ad_Networks

TCS Acquires Former Autodesk Business LocationLogic

San Rafael, Calif. -- TeleCommunication Systems, (TCS), a Maryland-based developer of wireless communications technology, said that it has paid $25 million to acquire the assets of LocationLogic, which until recently was the location services business of San Rafael-based Autodesk. Under the deal, TCS paid owners Hale Capital Partners and Hale Global $15 million in cash and another 1.4 million shares of stock. The private equity firms earlier this year had acquired the company from Autodesk. LocationLogic provides infrastructure, applications, content provisioning and integration services used by carriers to deploy and maintain location-based services, such as messaging, mapping and mobile search.
http://www.telecomsys.com  
http://phx.corporate-ir.net/phoenix.zhtml?c=123361&p=irol-newsArticle_Print&ID=1290022&highlight=

Sunnyvale-Based Unity Semiconductor Raises $22 Million in Third Round

Sunnyvale, Calif. -- Unity Semiconductor, a Sunnyvale-based semiconductor memory start-up, said on Tuesday that it has raised $22 million in its third round of funding from previous backers August Capital, Lightspeed Venture Partners and Morgenthaler Ventures. An unnamed "major" manufacturer of hard disk drives also participated in the round, which increased the company's total funding to nearly $75 million. Founded in 2002 by Darrell Rinerson, a former executive at Micron Technology and AMD, Unity is in the process of completing the development of its non-volatile memory technology, known as CMOx, and integrating it into high-volume manufacturing. The company said that it expects CMOx to yield products with four times the density and 5-10 times the write speed of current NAND flash products.
http://www.unitysemi.com
http://www.businesswire.com/news/home/20090519005135/en

Report: Facebook Turns Down Funding at $8 billion Valuation

Palo Alto, Calif. -- Facebook, the online social network with more than 200 million members, earlier this month turned down funding that would have valued the company at $8 billion, the blog TechCrunch reported on Tuesday, citing a source "with direct knowledge of the proposed transaction." The company reportedly turned down the $200 million in proposed funding because of a stipulation that would have required it to give up a board seat, with founder Mark Zuckerberg intent on keeping control of the board, according to TechCrunch. The blog also reported that "investors are now being told the company expects $550 million in 2009 revenue," well above previous projections of up to $400 million.
http://www.facebook.com
http://www.techcrunch.com/2009/05/19/facebook-turns-down-8-billion-valuation-term-sheet-claims-2009-revenues-to-be-550-million/

San Francisco-Based VoxPop.TV Lands $1.5 Million in Second Round

San Francisco -- VoxPop.TV, a San Francisco-based developer of pop-culture games, said that it has raised $1.5 million in its second round of funding, led by Hearst Interactive Media. Previous investor True Ventures, which led the company's initial round in 2007, also participated. The company said that it will use the proceeds to accelerate the product and market development of its gaming platform. Founded in 2006 by Bill Armistead, Mike Derezin and Michael Hoffman, VoxPop is the developer of an online platform designed to let publishers rapidly convert their existing content into online games focused around current events and topics. Clients include CNN, Entertainment Weekly, MTV and Wired Magazine.
http://www.voxpop.tv
http://sev.prnewswire.com/entertainment/20090518/SF1892718052009-1.html

Accel-KKR Raises Bid for Mountain View-Based SumTotal Systems

Mountain View, Calif. -- The on-again, off-again acquisition of Mountain View-based SumTotal Systems by Menlo Park's Accel-KKR is now on again, the company announced on Tuesday. The maker of talent development software said that the private equity firm has raised its bid for the company from $3.80 to $4.80 a share. That trumps an offer for $4.75 announced last week by San Francisco-based Vista Equity Partners. The company still plans to solicit other offers until May 24. Under a merger agreement signed in April, it would need to pay a termination fee of $6.67 if it accepts an offer other than from Accel-KKR.
http://www.accel-kkr.com
http://www.sumtotalsystems.com/press/index.html/2009/05/19/1

Craigslist Faces Criminal Probe in S.C. Over Erotic Ads

San Francisco - The South Carolina Attorney General has launched a criminal investigation into San Francisco-based Craigslist, alleging that the classifieds site failed to remove ads for prostitution and graphic pornography by a Friday deadline, according to published reports. After meetings with a group of state attorneys general last week, Craigslist took the drastic step of eliminating its "Erotic Services" section entirely, and said that it would manually monitor all ads placed in a new "Adult Services" section. Unsatisfied, South Carolina Attorney General Henry McMaster gave the site his ultimatum. Replying in a blog post, Craigslist CEO Jim Buckmaster demanded an apology from McMaster, also pointing out that many other web sites in South Carolina currently host a greater number of explicit ads than Craigslist. He also called the charges threatened by McMaster "unconstitutional and barred by federal law." "We're willing to accept our share of criticism, but wrongfully accusing Craigslist of criminal misconduct is simply beyond the pale," Buckmaster wrote in the blog post. "We would very much appreciate an apology at your very earliest convenience."
http://blog.craigslist.org/2009/05/target-practice/
http://news.cnet.com/8301-1023_3-10243187-93.html 
http://www.scattorneygeneral.org 
http://www.techcrunch.com/2009/05/18/stand-firm-craig-and-jim/

S.F.-Based Scribd Debuts Digital Publishing Service for Writers

San Francisco -- Scribd, the San Francisco-based developer of a site that lets users share text documents, has launched a new service that lets publishers charge for their documents and keep 80% of the revenue, The New York Times reported. The Scribd Store also will allow publishers to set their own prices, as well as options for digital rights management (DRM). Currently, works range in price from $1 to about $5,000. By comparison, Amazon.com takes 70% of revenue from sales of works posted to its Kindle e-book store by writers, and also controls pricing. Scribd said that it is addressing the issue of users posting copyrighted works without permission by creating a database of published works to cross-reference against uploads.
http://www.scribd.com
http://www.nytimes.com/2009/05/18/technology/start-ups/18download.html 

S.F.-Based Craigslist Agrees to Remove "Erotic Services" Section

San Francisco -- Craigslist, the San Francisco-based online classifieds site, has agreed to remove its "Erotic Services" section following complaints from a raft of state attorneys general that it was a haven for soliciting prostitution. Under the agreement, Craigslist has agreed to create a new "Adult Services" section, where every post will be manually reviewed, and nude or graphic photos will not be permitted. Posts for erotic services also now will require a valid phone number and credit card information. "It's clear to everyone that Craigslist's erotic services section was nothing more than an Internet brothel," said Illinois Attorney General Lisa Madigan. "I'm encouraged that Craigslist has agreed to fundamentally change how they operate and monitor their site. The steps they're taking are the only effective way to prevent the exploitation of women and children."
http://www.illinoisattorneygeneral.gov/pressroom/2009_05/20090513.html  http://blog.craigslist.org/2009/05/striking-a-new-balance/ 

Palo Alto-Based Aha Mobile Raises $3 Million in First Round

Palo Alto, Calif. -- Aha Mobile, the Palo Alto-based developer of technology designed to connect drivers with relevant information, said on Thursday that it has raised $3 million in its first round of funding firm Venrock. The company said that it has developing its technology since last fall, and plans to launch its first iPhone application this summer. "We all know that looking up information with a device while driving is a dangerous habit, but people do it anyway because they need to make quick decisions on the road," said Robert Acker, the president and CEO of Aha. "Our goal is to safely provide drivers with just the relevant pieces of information they need, letting them focus their attention on driving." The company said that it currently is looking for drivers around the country to test a beta version of its application.
http://www.ahamobile.com
http://www.businesswire.com/news/home/20090514005206/en

Santa Clara-Based DayStar to 30% of Staff; CEO Resigns

Santa Clara, Calif. -- DayStar Technologies, a Santa Clara-based developer of solar photovoltaic products, has announced plans to cut 30% of its workforce -- about 32 employees -- as part of a large plan to reduce expenses. The company also said that CEO Stephan DeLuca has resigned "at the request of the board of directors," with Chairman Robert Aldrich taking on his role. Aldrich joined the company as a director in 2003, and was elevated to chairman in September. DayStar said that it plans to complete its job cuts during the current quarter. "We continue to face a challenging operating environment that requires us to make difficult decisions," said Aldrich. "We believe the workforce reduction announced today, coupled with our ongoing focus on expense control, will help us accomplish our objectives and conserve cash."
http://www.daystartech.com
http://finance.yahoo.com/news/DayStar-Technologies-prnews-15234607.html?.v=1

San Jose-Based Avago Technologies to Cut Up to 200 More Jobs

San Jose, Calif. -- Avago Technologies, a San Jose-based developer of analog semiconductor devices, said on Thursday that it plans to cut as many as 200 more jobs as part of its ongoing restructuring. The company already has cut its workforce by 475 -- or about 13% of its total payroll -- since the beginning of this fiscal year. Avago expects to record $8-$10 million in charges as a result of the latest moves.
http://www.avagotech.com/
http://www.avagotech.com/pages/en/investor_comms/news/avago_technologies_finance_announces_continued_workforce_reductions

SumTotal Determines Vista's Takeover Bid Superior to Accel-KKR's

Mountain View, Calif. -- SumTotal Systems, a Mountain View-based maker of talent development software used by companies to accelerate performance and profits, said on Thursday that its board has determined a newly sweetened takeover offer from San Francisco-based Vista Equity Partners to be superior to an earlier offer it accepted from Accel-KKR. Vista on Wednesday raised its offer for the company to $4.75 a share, well higher than an earlier $4.80 offer from Accel-KKR. SumTotal said that it now will give Accel three days to raise its bid. If it chooses Vista's offer, the company would then be required to pay $6.67 million to terminate the previous deal. Vista already is the company's largest shareholder, with a 13% stake.
http://www.sumtotalsystems.com  
http://www.sumtotalsystems.com/press/index.html/2009/05/14/1 

Santa Clara-Based Intel Hit with Record $1.45 Billion Fine in Europe

Santa Clara, Calif. -- Culminating an eight-year investigation, the European Commission on Wednesday ordered Santa Clara-based chipmaker Intel to pay a record $1.45 billion in fines for engaging in what it called illegal practices designed to exclude competitors -- most notably Sunnyvale-based AMD -- from the market for computer chips. According to the organization, those activities included giving hidden rebates to computer makers for using Intel's chips, paying a major retailer to stock only computers containing the chips and paying computer manufacturers to halt or delay the launch of products using competitors' chips. "Such rebates and payments effectively prevented customers -- and ultimately consumers -- from choosing alternative products," the EC said in a statement. Intel plans to appeal. "We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace," said CEO Paul Otellini. "There has been absolutely zero harm to consumers."
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/745&format=HTML&aged=0&language=EN&guiLanguage=en http://finance.yahoo.com/news/EC-Ruling-Statement-by-Intel-bw-15226234.html?.v=1

Redwood Shores-Based Oracle to Buy Virtual Iron Software

Redwood Shores, Calif. -- Oracle, the Redwood Shores-based business software giant, said on Wednesday that it will pay an undisclosed sum to acquire Virtual Iron Software, a Massachusetts-based developer of server virtualization management software. The deal is expected to close this summer. "Industry trends are driving demand for virtualization as a way to reduce operating expenses and support green IT strategies without sacrificing quality of service," said Wim Coekaerts, Oracle's vice president of Linux and virtualization engineering. "With the addition of Virtual Iron, Oracle expects to enable customers to more dynamically manage their server capacity and optimize their power consumption."
http://www.virtualiron.com/
http://www.oracle.com/us/corporate/press/018535

Jim Safka to Step Down as CEO of Oakland-Based Ask.com

Oakland -- Citing personal reasons, Jim Safka plans to step down as the CEO of Oakland-based Ask.com, the Wall Street Journal reported. "This choice was not made lightly," Safka wrote in a note to the company's staff, publish by paidContent. "When my brother John passed away unexpectedly less than a month ago, I began re-evaluating my personal and professional priorities and decided it was the right time for me to make a change." Safka, who joined the company in January 2008 after previously serving as the CEO of Match.com, another business owned by IAC, said that his next endeavor will be "smaller and more local, enabling me to have a better personal balance." Scott Garell, the current president of Ask.com, will assume Safka's duties under the title of president of Ask Networks.
http://www.ask.com
http://online.wsj.com/article/SB124216318526012325.html (subscription required)
http://www.paidcontent.org/entry/419-industry-moves-jim-safka-steps-down-as-asks-ceo/

Emeryville-Based Lyris Acquires U.K. Partner Facultas

Emeryville, Calif. -- Lyris, the Emeryville-based developer of a technology platform for online marketers, said on Wednesday that it has acquired long-time partner Facultas, a U.K.-based provider of online marketing services. Financial terms of the deal were not disclosed. Lyris said that the acquisition significantly expands its global footprint, as well as its ability to extend full-service offerings to multinational customers. The company said that it plans to open a new office in central London, led by Donna McNicholas, who recently was named sales director for Lyris U.K. Andrew Robinson, the former managing director and owner of Facultas, will become the company's director of international professional services. Facultas has resold Lyris's email marketing products in Europe since 2004. Clients include the British Museum, Hand Picked Hotels and Kitbag.com.
http://www.lyris.com/
http://www.lyris.com/company/news/2009/Lyris-Acquires-UK-Email-Marketing-Consultancy-Facultas-4054/

San Jose-Based Cisco Teams with Clearwire on Mobile WiMAX

San Jose, Calif. -- Cisco Systems, the San Jose-based networking equipment giant, said on Wednesday that it has struck a deal to help build out Clearwire's new mobile WiMAX service to major metropolitan areas across the U.S. Clearwire currently offers its Clear 4G service in Baltimore and in Portland, Ore., and plans to launch it in more than 80 new markets by the end of 2010. Under the deal, Cisco will provide core infrastructure for the service, as well as develop new mobile WiMAX devices for consumers. Cisco also recently announced that it is supplying mobile WiMAX infrastructure to Russian wireless Internt provider Scartel, Georgian mobile operator MagtiCom and AsiaBell's mobile WiMAX service in central Kazakhstan.
http://www.clearwire.com/
http://newsroom.clearwire.com/phoenix.zhtml?c=214419&p=irol-newsArticle&ID=1287837&highlight=

Owner of Bay Area Papers Plans to Begin Charging for Online Content

Denver -- MediaNews Group, the Colorado-based newspaper publisher which owns about a dozen publications in the Bay Area, plans to begin charging for much of its online content, according to an internal memo published by Editor & Publisher. "We will begin to move away from putting all of our newspaper content online for free," said the memo from CEO William Dean Singleton and President Jodi Lodovic. "Instead, we will explore a variety of premium offerings that apply real value to our print content. We are not trying to invent new premium products, but instead tell our existing print readers that what they are buying has real value, and to our online audience (who don't buy the print edition), that if you want access to all online content, you are going to have to register, and/or pay." As part of the plan, non-subscribers will need to either register or pay to have full access to content, and the company plans to begin differentiating its sites from its newspapers, focusing on strategies designed to reach younger audiences. Some MediaNews properties in the Bay Area include the Alameda Times-Star, The Argus (Fremont), The Daily Review (Hayward), the Contra Costa Times, the Milpitas Post, the Monterey County Herald, the Oakland Tribune, the San Jose Mercury News, the San Mateo County Times and the Tri-Valley Herald (Pleasanton).
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1003972193
http://www.medianewsgroup.com/

Fremont-Based Quantenna Communications Names David French as CEO

Fremont, Calif. -- Quantenna Communications, a Fremont-based developer of chipsets for wireless high definition video home networking, on Tuesday named 30-year semiconductor industry veteran David French as its new CEO. He succeeds company founder Behrooz Rezvani, who will continue in his roles of president and chairman. The news comes just two weeks after Quantenna announced that it raised $13.85 million in its third round of funding, led by new investor Southern Cross Venture Partners. Most recently, French served as the president and CEO of Cirrus Logic, a fabless semiconductor firm that he originally joined as president and COO in 1998. He also has held management positions at Analog Devices, Fairchild Semiconductor and Texas Instruments
http://www.quantenna.com
http://www.quantenna.com/pressrelease-05_12_09.html

Velti Acquires San Francisco-Based Ad Infuse

San Francisco -- Velti, a U.K.-based provider of mobile marketing and advertising services, said on Tuesday that it has acquired Ad Infuse, a San Francisco-based provider of personalized mobile advertising services. Financial terms of the deal were not disclosed. Velti, which saw $70 million in sales in 2008, said that the acquisition will strengthen its position in the U.S. market. The company plans to integrate Ad Infuse's management team and technology into its global operations, which will count more than 400 employees. Brian Cowly, the CEO of AdInfuse, will become the general manager of Velti North America.
http://www.adinfuse.com
http://www.velti.com/index.cfm?page=1467

San Francisco-Based TimeBridge Raises $5 Million in Second Round

San Francisco -- TimeBridge, the San Francisco-based developer of an online personal scheduling tool, said that it has raised $5 million in its second round of funding, co-led by Mayfield Fund and Norwest Venture Partners. The news comes on the heels of a year that his seen the company's user base increase from 30,000 to 350,000. TimeBridge's technology is designed to give busy professionals a faster, more efficient way to schedule their time. The company's one-step scheduling system helps users schedule meetings with large groups or individuals across time zones, calendaring systems and companies, and connects directly with calendars including Outlook, Google Calendar and Apple iCal.
http://www.timebridge.com
http://www.timebridge.com/press110509.php

S.F.-Based Prosper Voluntarily Shuts Down While Awaiting SEC Approval

San Francisco -- Prosper, on online people-to-people lending marketplace co-founded by E-Loan co-founder Chris Larsen, said that it has voluntarily shut down its operations while it seeks regulatory approval for its platform from the Securities and Exchange Commission. "Due to regulatory concerns, and in the interest of working toward getting our registration statement effective as soon as possible, we are discontinuing our California intrastate offering at this time," the company said on its web site. The news comes days after Prosper announced that it had resumed business following six months while attempting to gain SEC approval. The company said that it won't accept any new loans or commitments while in what it is calling a "quiet period," though borrowers with existing loans will be unaffected. "We want to assure you that Prosper is looking forward to being able to offer a transparent, durable and participatory lending institution very soon," the company said. Prosper has raised more than $40 million since its inception in 2006.
http://www.prosper.com
http://www.prosper.com/help/topics/quiet_period.aspx

Fremont-Based Rackable Completes Deal for SGI; Changes Name

Fremont, Calif. -- Rackable Systems, a Fremont-based maker of servers and storage products for large data centers, said that it has completed its $42.5 million acquisition of Sunnyvale-based Silicon Graphics Inc. (SGI), which in March filed for Chapter 11 bankruptcy protection. The company also will change its corporate name to SGI, with its president and CEO, Mark Barrenechea, retaining those same roles. The move comes two weeks after Rackable received court approve to consummate the deal. SGI, which makes server, visualization and storage products, reported $390.5 million in assets and $526.5 million in debts in its bankruptcy filing. The new SGI will have a customer base of over 5,000 in more than 25 countries and approximately 1,350 employees worldwide. The company will maintain its corporate headquarters in Fremont.
http://www.rackable.com  
http://www.sgi.com  
http://www.rackable.com/news/pressrelease.aspx?prid=699

S.F.-Based Vista Equity Sweetens Offer for SumTotal Systems

San Francisco -- Vista Equity Partners, a San Francisco-based private equity firm, said on Monday that it has sweetened its offer for Mountain View-based SumTotal Systems to $4.50 a share in cash. The deal, which values the developer of talent and learning management software at $146 million, is significantly higher that Vista's original offer in April, which valued SumTotal at $103 million, as well as a subsequent $124 million offer from Accel-KKR. "We believe that the terms of our proposal present a superior alternative for the Company's stockholders and trust that the SumTotal board of directors will agree," said Robert Smith, managing principal of Vista Equity Partners. Vista already is the company's largest shareholder, with a 13% stake.
http://www.sumtotalsystems.com
http://www.sumtotalsystems.com/press/index.html/2009/05/06/1
http://finance.yahoo.com/news/Vista-Equity-Partners-prnews-15198246.html?.v=1

Cleantech Funding Slows Markedly in Quarter; Uptick Seen Ahead

San Francisco -- Cleantech companies received markedly less funding during the first quarter than previous quarters, with the global economic downturn catching up with investors across the sector, according to a new report from Ernst & Young based on data from Dow Jones Venture Source. The $277 million raised in 24 deals represents a 63% decrease in terms of capital and 48% decline in deals, compared with the previous year. Despite the figures, authors of the report see reason for optimism, particularly with economic stimulus money on the horizon. "While the timing of the receipt of government funding is uncertain, we expect that loan guarantees and other government financing structures, as well as corporate adoption rates of clean technologies, will be early indicators of an upward investment cycle," said Joseph Muscat, the Americas director of cleantech, at Ernst & Young. One winning segment in the industry was energy storage, where investments in battery storage and fuel cell companies more than doubled.
http://sev.prnewswire.com/publishing-information-services/20090511/NY1440511052009-1.html