Silicon Valley Wire

Broadcom to Acquire Sunnyvale-Based Dune Networks

Sunnyvale, Calif. -- Broadcom, the Irvine-based designer of communications chips, said on Monday that it will pay $178 million to acquire Sunnyvale-based Dune Networks, a developer of switch fabric used in data center networking equipment. The deal is expected to close by the end of March. Broadcom said that the acquisition will bolster its offerings for data centers. "[Dune's] technology is particularly well suited to meet the emerging requirements for cloud computing networks at a large scale, and will enable us to address new market applications for Ethernet in the data center," said Martin Lund, the vice president and general manager of Broadcom's network switching business. Founded in 2000, Dune previously had raised $45 million in funding from investors including U.S. Venture Partners, Alta Berkeley Ventures, Aurum Ventures, Cipio Partners, Jerusalem Venture Partners and Pitango Venture Capital.
http://www.dunenetworks.com/
http://www.dunenetworks.com/webSite/Modules/News/NewsItem.aspx?pid=355&id=110&ntype=2

Palo Alto-Based TechCrunch Says CrunchPad Tablet PC Hits Dead End

Palo Alto, Calif. -- Ten days after the scheduled debut of its tablet PC, Palo Alto-based technology blog TechCrunch said on Monday that its CrunchPad device, being developed with Singapore-based Fusion Garage, has hit a legal dead end. "The entire project self destructed over nothing more than greed, jealousy and miscommunication," TechCrunch founder Michael Arrington wrote in a blog post. The project, nearly a year and a half in development, was expected to feature a 12-inch touchscreen and proprietary operating system, allowing users with web access to browse the Internet, watch videos and edit documents at a relatively low cost. Arrington wrote that the project imploded when Fusion Garage's shareholders decided to sever ties with TechCrunch, moving forward on its own. "We jointly own the CrunchPad product intellectual property, and we solely own the CrunchPad trademark," wrote Arrington. "So it's legally impossible for them to simply build and sell the device without our agreement." He added that multiple lawsuits are expected to follow.
http://www.techcrunch.com/2009/11/30/crunchpad-end/

AOL to Unveil System that Will Tailor Content to Readers, Advertisers

New York -- Hoping to boost its fortunes as a stand-alone company, AOL is preparing to launch a new digital newsroom system that will use sophisticated algorithms to determine which types of online articles, photos and videos the company's editorial staff should produce, The Wall Street Journal reported on Monday. The system will collect data from various web searches in an effort to better tailor AOL's content to readers and advertisers. "Content is the one area on the web that hasn't seen the full potential," CEO Tim Armstrong told the paper. "Hopefully, we will spark a revolution of people doing content at a different scale." Once armed with the information, the company plans to churn out specific content from its 500-person editorial staff, as well as through a network of several thousands freelancers. AOL said that it will sell ads next to the content, as well as accept sponsorships of specific articles, such as stories about where to find particular types of merchandise. The company is planning to complete its spinoff from parent Time Warner on Dec. 9.
http://online.wsj.com/article/SB10001424052748703300504574565673001918320.html (subscription required)
http://paidcontent.org/article/419-aols-armstrong-orders-up-news-thats-automated-and-advertorial/

Redwood City-Based BaroSense Lands Investment from iNovia Capital

Redwood City, Calif. -- iNovia Capital, a Montreal-based venture Capital firm, said on Monday that it has invested an undisclosed amount in Redwood City-based medical device maker BaroSense as part of the company's second round of funding. Eight-year-old BaroSense, which focuses on the minimally invasive treatment of obesity, did not disclose other details. "This round should allow the company to complete U.S. clinical trials and obtain regulatory approval to commercialize its lead product," said Daniel Balbierz, the president and CEO of BaroSense.
http://www.barosense.com/
http://finance.yahoo.com/news/iNovia-Capital-Invests-in-prnews-2453463220.html?x=0&.v=1

Black Friday Online Spending Rises 11% from Last Year

Reston, Va. -- As bargain-hunting shoppers scoured the Internet for deals on "Cyber Monday," comScore reported that online sales on "Black Friday" were up 11% from a year ago. In fact, the $595 million in web sales made it the second highest online spending day in 2009. "Black Friday, better known as a shopping bonanza in brick-and-mortar retail stores, is increasingly becoming one of the landmark days in the online holiday shopping world," said Gian Fulgoni, the chairman of comScore. "While this acceleration in spending suggests the online holiday season may be shaping up slightly more optimistically than anticipated, it may also reflect the heavy discounting and creative promotions being put forth by retailers that now encompass the use of social networks such as Facebook and Twitter." comScore noted that the Internet increasingly has been an influential driver of "brick-and-mortar" retail stores, with shoppers doing diligent research before making purchases.
http://www.comscore.com/Press_Events/Press_Releases/2009/11/Black_Friday_Boasts_595_Million_in_U.S._Online_Holiday_Spending_Up_11_Percent_Versus_Year_Ago

Foster City-Based QuinStreet Files to Raise Up to $250 Million in IPO

Foster City, Calif. -- QuinStreet, a Foster City-based provider of online marketing services, has filed with the Securities and Exchange Commission (SEC) to raise up to $250 million in its initial public offering (IPO). The 10-year-old company, which had nearly 500 employees, has yet to determine other details of the offering, such as the number of shares to be sold or their expected price range. It plans to trade under the symbol "QNST." QuinStreet focuses its services on the education and financial services industries, making money from clients when people opt-in to specific online marketing programs. The company owns or partners with several vertical content web sites, driving people to the sites through pay-per-click ads on search engines.  Credit Suisse Securities, BofA Merrill Lynch and J.P. Morgan Securities are underwriting the IPO.
http://www.prweb.com/releases/2009/11/prweb3237044.htm
http://www.sec.gov/Archives/edgar/data/1117297/000095012309064388/f53797orsv1.htm

Details Emerge About AOL's Massive Workforce Reductions

New York -- A day after AOL announced plans to cut one-third of its workforce -- up to 2,500 employees -- details are beginning to emerge about specifics of the plan. The Wall Street Journal reported that employees who take "voluntary" layoffs beginning next month will receive 3-9 months of pay and other benefits, depending on their positions. Those who don't volunteer and are later let go only will receive up to four months. Workers also must apply for the voluntary layoffs, with no guarantee that their applications will be accepted, according to the blog Silicon Alley Insider. "This is lousy news for employees, who are faced with a 'jump now or wait to be pushed' decision, but it is designed to cheer investors," wrote Peter Kafka of AllThingsD. The company said in a memo that it will inform workers of its decision in an email between Dec. 16-Jan. 1. The moves will leave AOL about 4,400 employees, down from a high of more than 20,000, and save the company approximately $300 million a year. AOL is scheduled to officially spin out from parent Time Warner on Dec. 9.
http://finance.yahoo.com/news/AOL-Employees-Have-To-Apply-siliconalley-1965885163.html?x=0&.v=3
http://mediamemo.allthingsd.com/20091119/aol-we-need-to-fire-2500-volunteers/
http://online.wsj.com/article/SB10001424052748704204304574545450314795492.html?ru=yahoo&mod=yahoo_hs (subscription required)

Foster City-Based EFI Launches Tender Offer for Shares

Foster City, Calif. -- Electronics For Imaging (EFI), a Foster City-based developer of digital printing technology, said on Friday that it has launched a modified Dutch auction tender offer to buy back up to 4.5 million -- or about 9% -- of its shares. The company said that it will pay $11.25-$12.75 for each share under the offer, which is set to expire on Dec. 18. EFI plans to spend about $70 million in the deal, utilizing proceeds from the sale of real estate holdings earlier this year.
http://www.efi.com
http://www.businesswire.com/news/home/20091120005138/en

Senate Committee Approves Nominee for First Copyright Czar

Washington, DC -- The U.S. Senate Judiciary Committee on Thursday voted unanimously to approve Victoria Espinel as President Obama's nominee for the newly created position of intellectual property enforcement coordinator -- a role to be better known as the nation's copyright czar. Espinel has served as an advisor on intellectual property issues to the Senate's Judiciary and Finance Committees, as well as the House's Judiciary and House Ways and Means Committees. Most recently she was the founder and president of nonprofit group Bridging the Innovation Divide, as well as a visiting professor at the George Mason University Law School. Her nomination now will go before the full Senate for a vote. If approved, she will be tasked with overseeing the nation's enforcement of intellectual property laws, and with representing U.S. interested in such matters abroad. One of the first issues on her plate is expected to be balancing network neutrality and piracy protection.
http://judiciary.senate.gov/  
http://techdailydose.nationaljournal.com/2009/11/judiciary-panel-backs-ip-enfor.php   
http://www.wired.com/threatlevel/2009/11/copyright-czar-vote-heading-to-full-senate/   
http://www.broadcastingcable.com/article/389856-Commerce_Committee_Approves_Espinel_For_IP_Enforcement_Post.php  

Time Spent Watching Videos on Social Networking Sites Doubles in Year

New York -- Internet users now spend nearly double the amount of time watching videos on social networking sites than they did just one year ago, according to newly released figures from Nielsen. In October, people spent 999.4 million minutes watching videos on sites like Facebook and MySpace, up from 503.8 minutes during the same period in 2008. "During the past year, online video viewing has become central to the web experience," said Jon Gibs, Nielsen's vice president of media analytics. "In conjunction with this increase, we are seeing remarkable growth in video viewing on social networking sites and it is only natural that these two trends would converge in consumers' minds, making sites like Facebook and Myspace.com, increasingly important distribution points for both consumer and professionally generated video." Facebook was the No. 1 online social networking and blog destination in October, with 217.8 million total video streams viewed during the month. Myspace.com and Stickam were No. 2 and No. 3, with 85.2 million and 26.3 million video streams, respectively.
http://blog.nielsen.com/nielsenwire/online_mobile/time-spent-viewing-video-on-social-networking-sites-up-98-year-over-year-in-october/

Santa Clara-Based Chegg.com Lands $57 Million in Fourth Round

Santa Clara, Calif. -- Chegg.com, a Santa Clara-based online textbook rental company, said on Thursday that it has raised one of the largest funding rounds for a Silicon Valley tech company this year, landing $57 million in its fourth round.  Insight Venture Partners led the round, and also led a syndicate that provide the company with a $25 million credit facility. That's on top of $30 in debt financing that the company recently landed from Pinnacle Ventures and TriplePoint Capital. Chegg, whose service sometimes is referred to as Netflix for textbooks, said that it will use the proceeds to enhance customer service and forge more partnerships with publishers, wholesalers and colleges. The company, which landed previous backing from Kleiner Perkins Caufield & Byers, Gabriel Venture Partners, Primera Capital and Foundation Capital, said that it expects to double its workforce. Launched nationally in 2007, the company said that its service saves students 60%-75% off their textbook bills by renting instead of buying.
http://www.chegg.com
http://www.prnewswire.com/news-releases/cheggcom-secures-112-million-to-fund-explosive-growth-in-online-textbook-rentals-70526017.html

AOL to Cut One-Third of Staff; Voluntary Layoffs to Begin Dec. 4

New York -- Needing to drastically trim costs as it prepares to separate from parent Time Warner, AOL said on Thursday that it plans to trim its workforce by about one-third -- approximately 2,300 workers -- through a combination of voluntary and involuntary layoffs. The company said that the goal of the restructuring is to reduce its annual operating costs by $300 million. In a note to employees, published by the blog Silicon Alley Insider, CEO Tim Armstrong said that voluntary layoffs will be offered Dec. 4-11, with involuntary cuts to follow if the number of takers falls short. Armstrong also reportedly will give up his 2009 bonus, expected to be about $1.5 million. The moves will cost AOL around $200 million in one-time charges. Time Warner announced on Monday said that it plans to complete the spinoff on Dec. 9. AOL currently has about 6,900 employees.
http://www.sec.gov/Archives/edgar/data/1468516/000119312509238010/d8k.htm
http://finance.yahoo.com/news/AOL-Asks-2500-Employees-To-siliconalley-2344103485.html?x=0&.v=17

Reports: MySpace to Acquire San Francisco-Based imeem

San Francisco -- Online social network MySpace has agreed to acquire San Francisco-based streaming music service imeem for about $1 million, plus several million more in potential earn-outs, according to several industry blogs. At least half of San Francisco-based imeem's 55 staff will be laid off as a result of the acquisition, sources told CNET. The streaming music service, which started in 2003 as a music-focused social networking application, will likely remain a standalone service for a while, but a source told CNET that imeem may eventually be folded into MySpace Music.
http://www.imeem.com
http://news.cnet.com/8301-31001_3-10401292-261.html
http://www.techcrunch.com/2009/11/18/myspace-signs-agreement-to-acquire-imeem/
http://mediamemo.allthingsd.com/20091118/done-deal-myspace-buys-imeem-for-up-to-10-million/

Mountain View-Based NeoEdge to Merge with Offspring

Mountain View, Calif. - NeoEdge, a Mountain View-based provider of in-game video ad insertion services, said on Thursday that it will merge with Offspring, a casual and social games company founded and headed by former Pogo.com executives Lesley Mansford, Andrew Pedersen, Karen Schulman and Todd Heringer. Financial  terms of the deal were not disclosed. Mansford will become the new CEO of the combined company, which will maintain its in-game ad service, while also developing its own casual and social games. NeoEdge raised $4 million in its first round of financing in September.
http://www.neoedge.com
http://news.yahoo.com/s/prweb/20091119/bs_prweb/prweb3232374_1

San Francisco-Based Terracotta Acquires Quarts Job Scheduler

San Francisco -- Terracotta, a San Francisco-based developer of infrastructure software, said on Thursday that it has acquired Quartz, the privately held open source job scheduling software. Financial terms of the deal were not disclosed. The company said that Quartz has "tens of thousands" of deployments at companies such as Vodafone, Level 3, Cisco and Adobe, and also is built into products made by companies such as Atlassian, SpringSource and Red Hat. Terracotta said that it now plans to integrate the software into its own platform.
http://www.terracottatech.com
http://www.quartz-scheduler.org/
http://www.businesswire.com/news/home/20091119005335/en

San Francisco-Based IPWireless Lands $15.5 Million in First Round

San Francisco -- IPWireless, a San Francisco-based developer of mobile broadband and broadcast technology, said on Wednesday that it has raised $15.5 million in its first round of funding, led by Boston-based Spark Capital. The company plans to use the proceeds to expand its platform into both the government and commercial markets. IPWireless makes chipsets, devices and software that allow the 3GPP mobile standard to support a new range of applications and spectrum bands. Clients, including T-Mobile and New York City's Department of Information Technology and Telecommunications, use the products to deliver new wireless services.
http://www.ipwireless.com
http://www.ipwireless.com/news/pressreleases/press111809

Milpitas-Based FireEye Lands New Investment from CIA-Backed In-Q-Tel

Milpitas, Calif. -- FireEye, a Milpitas-based developer of malware protection systems, said on Wednesday that it has landed a new investment as part of a larger technology development deal with In-Q-Tel, the Virginia-based venture fund backed by the Central Intelligence Agency (CIA). Financial terms of the deal were not disclosed. FireEye's technology is designed to detect advanced malware by replaying suspicious web and network traffic flows through virtual machines. The results allow customers to properly secure their networks. The latest deal will allow the company to extend those capabilities. FireEye previously had raised $34.5 million since its inception in 2004, including a $14.5 million round led by DAG Ventures in May 2008.
http://www.iqt.org
http://www.fireeye.com/
http://www.businesswire.com/news/home/20091118005766/en

S.F.Based 1020 Placecast Lands $5M for Location-based Marketing

San Francisco -- 1020 Placecast, the San Francisco-based developer of a location-based marketing system, said on Wednesday that it has raised $5 million in its second round of funding. Investors included Quatrex Capital, as well as previous backers Onset Ventures and Voyager Capital. 1020 Placecast's platform is designed to use digital marketing on the web and mobile to drive consumers into physical environments. The company plans to use the proceeds to drive the adoption of feature that lets clients connect with consumers' mobile phones, based on their specific location. Current partners include NAVTEQ and Alcatel-Lucent, and marketers include FedEx Office, Avis and Budget Rental Cars and Hyatt Hotels.
http://www.placecast.net
http://www.prweb.com/releases/2009/11/prweb3222984.htm

Sunnyvale-Based AMD to Raise $500M in Offering, Buy Back Notes

Sunnyvale, Calif. -- AMD, the Sunnyvale-based chip-maker, said on Wednesday that it plans to raise $500 million through a private offering of senior notes due in 2017. The company will use the proceeds, plus cash on hand, to buy up to $1 billion of convertible senior notes due in 2012. Part of the money to buy back the notes will come from the $1.25 billion that AMD received in its recent settlement with Santa Clara-based rival Intel.
http://www.amd.com/us/press-releases/Pages/amd-announces-500-mil-of-sr-nts2009nov18.aspx
http://www.amd.com/us/press-releases/Pages/amd-commences-convrtble-notes2009nov18.aspx

Area Venture Capitalists Dominate Inaugural AlwaysOn VC 100 List

San Francisco -- Seven venture capitalists from Menlo Park-based Sequoia Capital and five from Palo Alto's Accel Partners head the inaugural AlwaysOn VC 100 list. which aims to recognize venture capitalists with the most exit success over the past four years. To compile the list, San Francisco-based media firm AlwaysOn culled data from research partners Morgan Stanley, VentureDeal and the 451 Group, sorting through more than 700 active venture capitalists, 1,400 VC investments and 1,000 technology liquidity events. The winners were selected based on total number and dollar amounts of successful M&A and IPO deals from their portfolio companies. AlwaysOn said that the list represents the best opinion of its editors, since much of the information needed to make it truly accurate remains private. The complete list is available at the link below.  
http://alwayson.goingon.com/permalink/post/34032

Redwood City-Based RockYou Lands $50 Million in Funding

Redwood City, Calif. -- RockYou, a Redwood City-based developer of social network applications and advertising technology, has raised $50 million in its fourth round of venture capital financing, coming entirely from previous investor Softbank. The company now has raised $118 million since its inception in 2005. RockYou develops social networking applications, and also serves ads within its own and other developers' applications. RockYou claims 213 million unique users a month on its social media ad network, which include the company's popular photo slideshow for MySpace and Facebook's Superwall. The news comes a year after the company closed its third round at $52 million, including a $35 million tranche led by DCM. Other backers include Sequoia Capital, Partech International and Lightspeed Venture Partners.
http://www.rockyou.com
http://www.prnewswire.com/news-releases/rockyou-secures-50-million-in-series-d-funding-from-returning-investor-softbank-70314117.html

Santa Clara-Based Applied Materials to Acquire Semitool

Santa Clara, Calif. -- Applied Materials, the Santa Clara-based developer of equipment, services and software used to make semiconductors, said on Tuesday that it will pay approximately $364 million in cash to acquire Montana-based Semitool, a supplier of electrochemical plating and wafer surface preparation equipment used by chip packaging and chip making companies. Under the deal, approved by the boards of both companies, Applied Materials will launch a cash tender offer, paying $11 a share. The company said that the acquisition will give it a broader range of products, as well as expands its reach to a new set of customers in the semiconductor packaging industry. Semitool will be operated as a business unit of Applied’s Silicon Systems Group.
http://www.appliedmaterials.com/
http://www.businesswire.com/news/home/20091117005719/en

Report: MySpace in Talks to Acquire Music Streamer imeem

San Francisco -- Online social network MySpace is in "late stage negotiations" to acquire San Francisco-based music streaming service imeem, TechCrunch reported, citing multiple unnamed sources. Founded in 2003, imeem started as a music-focused social network application, but more recently has concentrated on music streaming. imeem has raised at least $25 million in funding, with its service attracting 16 million unique visitors in September, according to comScore. Should the deal go through, it would mark MySpace's second major streaming music service acquisition of the year, following its deal for iLike three months ago.
http://www.imeem.com
http://www.techcrunch.com/2009/11/16/myspace-close-to-acquiring-imeem/
http://mediamemo.allthingsd.com/20091117/confirmed-myspace-looking-to-buy-imeem/

S.F.-Based Zynga Raises $15.1M for Casual Social Games

San Francisco -- Zynga, a San Francisco-based publisher of casual games on social networks, has raised $15.1 million in its third round of funding, PEHub.com reported, citing a regulatory filing. Investors include Kleiner Perkins Caufield and Byers, Foundry Group and Reid Hoffman. Zynga's casual game titles include "Mafia Wars" on Facebook. Earlier this month, the company acquired virtual pets firm GoPets, following its earlier acquisition of virtual world firm MyMiniLife. To date, the company has raised over $54 million in financing.
http://www.zynga.com
http://paidcontent.org/article/419-zynga-adds-15.1-million-more-in-funding/

Redwood City-Based Bigfoot Networks Raises $8 million

Redwood City, Calif. -- Bigfoot Networks, a Redwood City-based maker of gaming network cards, said on Tuesday that it has raised $8 million in its second round of funding, co-led by previous investors North Bridge Venture Partners, Palomar Ventures and Raven Venture Partners. The company, which now has raised $20.75 million since its inception, said that it will use the proceeds to fund product development, as well as expand its go-to-market capabilities. Bigfoot also has named former Polycom executive Wayne Dunlap as its vice president of engineering and added veteran consumer technology executive Greg Ballard to its board of directors. Bigfoot Networks currently sells gaming network cards inside PCs from Dell and Alienware, as well as rigs from several specialized gaming PC manufacturers. Its cards also are sold as a separate add-in product for gamers through e-tail and retail channels.
http://www.bigfootnetworks.com
http://www.bigfootnetworks.com/bigfoot-networks-secures-8-million-series-b-funding/

Time Warner To Spin Off AOL on Dec. 9 with Valuation of $3.5B

New York -- Time Warner announced on Monday evening that it plans to spin off its AOL unit on Dec. 9. Shareholders of Time Warner will be given one share of AOL stock for every 11 shares of Time Warner they own. Time Warner said in a statement that the spinoff "will result in the complete legal and structural separation of the two companies." After the transaction, AOL -- which has a growing presence in Mountain View -- will have a market value of about $3.5 billion, based on current share prices. AOL's shares will trade on the New York Stock Exchange under the ticker symbol "AOL" beginning Dec. 10. TMZ, the popular Hollywood gossip blog that is one of AOL's most successful media assets, will not be part of the spinoff, but instead will remain part of Time Warner.
http://www.timewarner.com/corp/newsroom/pr/0,20812,1939809,00.html

Fremont-Based QuorumLabs Secures $5.3 Million in First Round

Fremont, Calif. -- QuorumLabs, a Fremont-based developer of business continuity tools for small and midsize businesses, said on Tuesday that it has raised $5.3 million in its first round of funding. The company said that the lead investor in the round also was the lead backer of Themis Computer, the company that incubated QuorumLabs for three years before spinning it out in 2008. The company plans to use the funds to expand its reseller channel, increase its profile and continue expansion into the U.S. market. QuorumLabs now has received more than $10 million in funding, including its incubation period.
http://www.quorumlabs.com
http://www.quorumlabs.com/pr_2009-11-17/

Popularity of Entertainment Subscriptions Stays Strong, Despite Economy

Port Washington, N.Y. -- While fewer Americans subscribe to newspapers and magazines, the subscription model is continuing to maintain popularity in areas such as television, music, games and mobile services, according to a new report from market research firm NPD Group. As of August, 81% of U.S. households subscribed to a pay-TV service, while 76% paid for  Internet access, 17% subscribed to satellite radio or an online music service and 14% paid for online game services. Overall per-capita spending by U.S. consumers on entertainment-related subscriptions rose to $115 this year, an increase of 7% over 2008 levels. "Despite concerns that the recession would cause consumers to reduce spending on entertainment subscription services, most forms of subscription entertainment are doing just fine," said NPD analyst Russ Crupnick. "Consumers are clearly looking to the value offered by entertainment subscriptions and like what they get for their money; plus, new technologies and products have helped bolster data plans and other newer kinds of subscription-based services."
http://www.npd.com
http://www.businesswire.com/news/home/20091116005957/en

Mountain View-Based Playdom Acquires Green Patch, Trippert Labs

Mountain View, Calif. -- On the heels of landing $43 million in new funding, Mountain View-based Playdom, a developer of online games for social networks, said late Thursday that it has acquired Palo Alto-based Green Patch and Menlo Park-based Trippert Labs. Financial terms of the deals were not disclosed. The company said that Green Patch, the maker of resource management game (Lil) Farm Life, will increase its user base on Facebook by more than 30%, while Trippert Labs has created dozens of successful iPhone apps, including several titles that reached No. 1 in the free app category. "Playdom has aggressive plans to expand our social gaming footprint in 2010," said CEO John Pleasants. "The addition of Green Patch and Trippert Labs will significantly enhance our development throughput and help fuel Playdom's game pipeline." Playdom earlier this week announced a new $43 million round of funding, led by New Enterprise Associates (NEA), as well as the opening of its 10,000-square-foot facility in San Francisco and its first game studio in Eugene, Ore.
http://www.playdom.com
http://www.businesswire.com/news/home/20091112006337/en  

Pleasanton-Based Microchip Biotechnologies Raises $18.1 Million

Pleasanton, Calif. -- Microchip Biotechnologies Inc. (MBI), a Pleasanton-based developer of life science systems for microsample preparation and analysis, said that it has raised $18.1 million in its second round of funding led by Domain Associates. Samsung Ventures, Western Technology Investment Inc. (WTI) and other individual investors also joined previous backers Rona Syndicates and In-Q-Tel in the round. The company plans to use the proceeds to commercialize its Apollo 100 System, a sample preparation system for DNA cycle sequencing, and well as to develop a related platform.
http://www.microchipbiotech.com
http://finance.yahoo.com/news/Microchip-Biotechnologies-prnews-3413109994.html?x=0&.v=1

Santa Clara-Based Intel Names Douglas Melamed as General Counsel

Santa Clara, Calif. -- Intel, the Santa Clara-based chip-making giant, on Friday named Douglas Melamed as its senior vice president and general counsel, responsible for overseeing all of the company's legal matters, as well as corporate and government affairs. He will maintain offices at Intel headquarters in Santa Clara, as well as in Washington, DC. Melamed most recently served as a partner at law firm WilmerHale, where he was a leader in its Regulatory and Government Affairs Department and served as a member of its Antitrust and Competition Practice Group in Washington, DC. He joined the firm in 1971. He also served in the Department of Justice from 1996-2001 as acting assistant attorney general in charge of the Antitrust Division, as well as principal deputy assistant attorney general. Melamed replaces Bruce Sewell, who left the company in September to become the general counsel at Cupertino-based Apple.
http://www.intel.com/pressroom/archive/releases/2009/20091113corp.htm?iid=pr1_releasepri_20091113r

Sunnyvale-Based SST Looking to Go Private Through Sale

Sunnyvale, Calif. -- Silicon Storage Technology (SST), a Sunnyvale-based developer of flash memory semiconductor products, said that it has agreed to be acquired by Prophet Equity and company management in a deal that would take the company private. Under the deal, Prophet will pay $2.10 a share for all of the company's stock, except for shares owned by Bing Yeh, SST's chairman and CEO, and Yaw Wen Hu, its executive vice president and COO. The two will trade their shares for shares in the resulting privately held company. The agreement contains a provision that lets a special committee solicit competing offers for 45 days. "We believe that this transaction provides the greatest likelihood of achieving the highest value for the company's shareholders, and that this is also in the best interest of our customers, partners and employees," said Yeh. "We believe the added flexibility of being a private company will help us to focus on delivering innovative memory and non-memory solutions to our customers and supporting their needs with the highest levels of service that they have come to expect."
http://www.sst.com/
http://www.sst.com/about_sst/news/detail.dot?crumbTitle=NewsDetail&id=423

Milpitas-Based Sigma Designs Acquires CopperGate Communications

Milpitas, Calif. -- Sigma Designs, a Milpitas-based developer of system-on-chip devices used to deliver multimedia entertainment, said on Thursday that it has completed its  acquisition of CopperGate Communications, an Israeli maker of chipsets North and South American operations based in Newark. Under the deal, first announced last month, Sigma paid $116 million in cash, as well as another 3.9 million shares of its stock. "The combination of Sigma and CopperGate creates a leading provider of networked home entertainment semiconductor solutions," said Thinh Tran, Sigma's CEO. CopperGate's employees, including CEO Gabi Hilevitz, have joined Sigma.
http://www.copper-gate.com/
http://www.sigmadesigns.com/
http://www.businesswire.com/news/home/20091112005346/en

Palo Alto-Based HP to Acquire 3Com for $2.7 Billion

Palo Alto, Calif. -- Looking to significantly expand its networking business, Palo Alto-based technology giant Hewlett-Packard (HP) said that it will acquire Massachusetts-based 3Com in a deal worth $2.7 billion. HP will pay $7.90 s share for 3Com, which makes switching, routing and security products, with the combined company expected to pose a serious threat to market leader Cisco Systems. It will greatly expand HP's Ethernet switch and router offerings, as well as strengthen the company's presence in China, where 3Com markets its H3C networking products. "Based on our experience and extensive testing of 3Com’s products, we are planning to undertake a global rollout within HP as soon as possible after the completion of the acquisition," said Randy Mott, HP's executive vice president and chief information officer. The deal is expected to close by mid-2010.
http://www.hp.com
http://www.3com.com/ 
http://h30261.www3.hp.com/phoenix.zhtml?c=71087&p=irol-newsArticle&ID=1354389&highlight=

Intel to Pay AMD $1.25 Billion to Settle Legal Disputes

Sunnyvale, Calif. -- In a move that aims to end years of legal disputes between the rival chip-makers, Santa Clara-based Intel agreed on Thursday to pay Sunnyvale-based AMD $1.25 billion in exchange for the company dropping all pending litigation and regulatory complaints. "While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes and enables the companies to focus all of our efforts on product innovation and development," the companies said in a joint statement. Under terms of the agreement, AMD and Intel each obtain patent rights from a new five-year cross license agreement. Intel has also agreed to abide by a set of business practice provisions.
http://www.intel.com/pressroom/archive/releases/2009/20091112corp_a.htm?iid=pr1_releasepri_20091112ra

Mountain View-Based Playdom Raises $43 Million in First Round

Mountain View, Calif. -- Playdom, a Mountain View-based developer of online games for social networks, has raised a $43 million in its first round of funding, led by New Enterprise Associates (NEA). Lightspeed Venture Partners, Norwest Venture Partners and Playdom chairman Rick Thompson also participated in the round. Playdom said that more than 28 million people a month play its 13 games, such as "Mobsters," on platforms including MySpace, Facebook and the iPhone. The company plans to use the proceeds for acquisitions, as well as to expand game development. The news comes in the same week that one of the company's top competitors, Playfish, was acquired by Electronic Arts (EA) for $400 million.
http://www.playdom.com
http://finance.yahoo.com/news/Playdom-Raises-43-Million-in-bw-158072339.html?x=0&.v=1

San Mateo-Based Caring.com Raises $10 Million in Second Round

San Mateo, Calif. -- Caring.com, the San Mateo-based developer of a web community for people caring for aging parents, said on Thursday that it has raised $10 million in its second round of funding, led by new investor Shasta Ventures. Previous backers DCM and Split Rock Partners also participated, along with several individual investors. The company said that it will use the proceeds to further develop its site and its recently acquired Gilbert Guide eldercare services directory, as well as to hire new employees. Caring.com draws more than 1 million unique visitors a month to its ad-supported site, which launched two years ago after raising $6 million in its initial round. 
http://www.caring.com
http://www.caring.com/about/news-room/caring-com-closes-10-million-in-series-b-financing.html

San Jose-Based Adobe to Lay Off 680 Employees; 9% of Workforce

San Jose, Calif. -- Adobe Systems, the San Jose-based maker of Web and desktop publishing software, plans to lay off 680 employees, or about 9% of its total workforce, the company said in a regulatory filing. The cuts mark the second round of layoffs at Adobe in the past year, following the elimination of 600 jobs in December. "Adobe is restructuring its business to align costs with its fiscal 2010 operating plan and budget, the company's three-year strategic priorities, and the realities of the business environment, as well as to ensure its ability to continue investing in long-term growth opportunities," the company said in a statement.
http://www.adobe.com
http://www.sec.gov/Archives/edgar/data/796343/000110465909064037/a09-33303_18k.htm

Current Media Lays Off 80, Shifts to More Outsourced Content

San Francisco -- Current Media, the San Francisco-based pay-TV and web video news outlet co-founded by former Vice President Al Gore, said that it has laid off 80 employees, and will shift away from short-form and daily in-house production to "proven 30-60 minute formats." Current said in a statement that the layoffs did not result from a need to cut costs, as the company "will have its most profitable year," but rather are about "re-allocating resources in order to put further emphasis on areas of the business believed to best position Current Media for continued long-term growth." The company will be eliminating programs including "Current Tonight," "Current Takeover" and "Current Exposed," and consolidating its TV production and programming development under one roof in Los Angeles. It also plans to create new executive positions and teams in program development, licensing and acquisitions, talent management, research, marketing, affiliate relations and advertising sales.
http://www.current.com

Redwood City-Based EA to Cut 1,500 Jobs; 17% of Workforce

Redwood City, Calif. -- Looking to sharpen its focus on game titles with opportunities for higher margins, Redwood City-based Electronic Arts (EA), the large developer and publisher of video games, said that it plans to cut about 1,500 jobs -- about 17% of its workforce -- while closing several facilities. The company said that it expects to save at least $100 million a year under the plan, which should be completed by March 31. EA will incur charges of $130-$150 million as a result. Earlier this year, EA also laid off 1,100 employees as part of a restructuring.
http://www.ea.com
http://finance.yahoo.com/news/EA-Reports-Record-Q2-NonGAAP-bw-3099558659.html?x=0&.v=1

Santa Clara-Based SandForce Raises $21 Million in Third Round

Santa Clara, Calif. -- SandForce, a Santa Clara-based maker of solid state drive processors used in data storage, said on Tuesday that it has raised $21 million in its third round of funding, led by new investor TransLink Capital. New investors UMC Capital, LSI, Red Maple Ventures, Darwin Ventures and A-Data Technology also joined previous backers DCM and Storm Ventures in the round. "This new funding will help us through our expansion phase as well as accelerate our new products development," said Alex Naqvi, the president and CEO of SandForce.
http://www.sandforce.com/
http://www.sandforce.com/userfiles/file/downloads/SFI_SeriesC_PR_Final.pdf (PDF)

Report: Google Acquires San Deigo-Based Gizmo5 for $30 Million

Mountain View, Calif. -- Mountain View-based Google as paid about $30 million in cash to acquire San Diego-based Gizmo5, a developer of Internet telephony technology, TechCrunch reported, citing multiple sources with knowledge of the deal. Gizmo5 was founded in 2003 by Michael Robertson, the digital music pioneer who launched MP3.com. The company has to date raised $6 million in outside venture capital. TechCrunch reported that Gizmo5 also previously was in talks to be acquired by Skype, but that last week's settlement of litigation between parties looking to acquire Skype from eBay left Gizmo5 to look elsewhere.
http://gizmo5.com
http://www.techcrunch.com/2009/11/09/exclusive-google-has-acquired-gizmo5/

AOL Reportedly Cuts 100 Jobs as Prelude to Mass Layoffs

New York -- AOL was expected to cut about 100 jobs on Tuesday, in what several industry blogs are calling just a prelude to mass layoffs expected to occur once the company completes its spinout from parent Time Warner next month. The moves reportedly are part of CEO Tim Armstrong's "Project Everest" initiative, which aims to trim costs throughout the company. AllThingsD wrote that Armstrong is "seriously considering" offering voluntary buyouts as a way to limit the number of cuts. Time Warner last week announced that AOL's revenue dropped 23% during the third quarter, as subscription and ad revenue both fell by double digits. AOL is based in new York, but has a growing presence in Mountain View.
http://valleywag.gawker.com/5400813/aol-layoffs-tomorrow-to-kick-off-depressing-holiday-season
http://kara.allthingsd.com/20091110/aol-small-layoff-today-a-voluntary-buyout-and-then-the-big-one/?reflink=ATD_yahoo_ticker

Clearwire Raises Another $1.6 Billion, Led by Sprint Nextel

Kirkland, Wash.  -- Giving it more ammunition to roll out its high-speed wireless (WiMax) network in more cities across the U.S. Kirkland, Wash.-based Clearwire said on Tuesday that it has raised another $1.6 billion, including a $1.2 billion investment from partner Sprint Nextel. Time Warner Cable, Santa Clara-based Intel, Eagle River Holdings and Bright House Networks also participated. Noticeably absent from the list was Mountain View-based Google, which played a major role in the company's $3.2 billion funding last year. Sprint Nextel owns a majority stake in Clearwire, and has rolled out the company's high-speed service, branded as Sprint 4G, in several of its markets. 
http://www.clearwire.com/
http://newsroom.clearwire.com/phoenix.zhtml?c=214419&p=irol-newsArticle&ID=1353599&highlight=

Group Led by S.F.-Based Hellman & Freeman to Buy Datatel

San Francisco -- Datatel, a Virginia-based provider of administrative software systems and e-marketing tools to colleges and universities, said on Monday that San Francisco-based private equity firm Hellman & Friedman will buy the company from its current investor group, led by Thoma Bravo. Under the deal, Hellman & Freeman, JMI Equity and Datatel's management and employees will pay an undisclosed sum. Datatel's current management will remain in place, led by John Speer, its president and CEO. The news comes more than four years after the company's management teamed with an investor group led by Thoma and Trident Capital to acquire the firm from its founders. Datatel, which has focused exclusively on higher education since 1979, said that its technology now is used by nearly 800 institutions.
http://news.datatel.com
http://www.hf.com
http://news.datatel.com/news/datatel+new+financial+sponsor.htm

San Jose-Based RPO Raises $19.3 Million for Touch-Screen Technology

San Jose, Calif. -- RPO, a San Jose-based developer of optical touch technology, said on Monday that it has raised $19.3 million in its third round from several previous backers, as well as one new investor. Names of the investors were not disclosed. The company said that it will use the funding to launch high-volume manufacturing of its Digital Waveguide Touch (DWT) technology in 2010. The company said that DWT, which provides touch interaction with objects such as pens, fingers and gloved fingers, has widespread applications in products such as cell phones, cameras, netbooks, car navigation systems, e-books and laptop computers. "Over the coming months, RPO will be aggressively expanding its engineering and manufacturing capabilities, and will be seeking to recruit highly skilled engineers and business professionals in both the U.S. and Australia," said Malcolm Thompson, the company's chairman and CEO.
http://www.rpo.biz
http://www.businesswire.com/news/home/20091109005547/en

Redwood City-Based EA Buys Social Games Firm Playfish for $400M

Redwood City, Calif. -- Electronic Arts, the Redwood City-based developer and publisher of video games, said n Monday that it has acquired Playfish, a U.K.-based creator of social network games, for about $275 million in cash, with an additional $25 million in equity retention arrangements. The value of the deal could rise as much as $100 million, depending on the performance of Playfish through 2011. Founded in 2007, Playfish makes social network games, including "Pet Society" and "Who Has the Biggest Brain," that have been installed more than 150 million times. The company counts over 60 million monthly active players across its 10 game titles, and over 1 billion game play sessions monthly. "Social gaming, with its emphasis on friends and community, is seeing tremendous growth and this is the right time to invest to strengthen our participation in this space," said Barry Cottle, the senior vice president and general manager of EA Interactive. Investors in Playfish included Accel Partners and Index Ventures.
http://www.ea.com
http://www.playfish.com
http://www.businesswire.com/news/home/20091109005868/en

Google to Acquire San Mateo-Based AdMob for $750 Million

Mountain View, Calif. -- Looking to deepen its offering in the mobile ad space, Mountain View-based Google said on Monday that it will pay $750 million in stock to acquire San Mateo-based mobile display advertising provider AdMob. Founded in 2006, AdMob offers self-service tools that advertisers can use to target their mobile ads, as well as mobile ad platforms for the iPhone and more recently, Google's own Android operating system for mobile phones. The company also publishes reports on mobile advertising trends. "Mobile advertising has enormous potential as a marketing medium and while this industry is still in the early stages of development, AdMob has already made exceptional progress in a very short time," said Susan Wojcicki, vice president of product management at Google. "AdMob is the quintessential Silicon Valley startup."
http://www.admob.com
http://www.google.com/press/admob/
http://www.google.com/intl/en/press/pressrel/20091109_admob.html
http://googleblog.blogspot.com/2009/11/investing-in-mobile-future-with-admob.html

Skype Litigation Settled; Sale by eBay to Investors to Proceed

San Jose, Calif. -- eBay, the San Jose-based Internet auction giant, announced on Friday that litigation between an investor group looking to acquire its Skype unit and the creators of the Internet telephone service has been settled, with its sale of a majority stake in the company set to move forward. The acquisition has been restructured, with Skype creators Niklas Zennstrom and Janus Friis joining the investor group, led by Silver Lake, and making a "significant capital investment" in exchange for a 14% stake in Skype. In total, the investor group -- which also includes Andreessen Horowitz and the Canada Pension Plan Investment Board -- will hold 56% of Skype, while eBay will retain 30%. The deal will still see eBay receive about $1.9 billion in cash. The investor group will notably no longer include Index Ventures, whose recently-added partner, Mike Volpi, was sued by Zennstrom and Friis. The Skype inventors, who also developed web TV service Joost -- alleged that Volpi used his knowledge of Skype-related technology as former head of Joost to boost the previous investor group's chances.
http://www.ebayinc.com/news#20091106005379

Santa Clara-Based Applied Materials Acquires Advent Solar

Santa Clara, Calif. -- Applied Materials, a Santa Clara-based developer of equipment, services and software used to make semiconductors, said on Friday that it has acquired New Mexico-based Advent Solar, a developer of silicon based solar technology. Financial terms of the deal were not disclosed. Founded in 2002, Advent has developed high-performance crystalline photovoltaic (PV) solar cells and modules. "We believe the acquisition of Advent Solar will increase our opportunities to provide innovative solutions for reducing module production costs," said Mark Pinto,the CTO and general manager of Applied's Energy and Environmental Solutions Group.
http://www.adventsolar.com/
http://www.appliedmaterials.com
http://www.businesswire.com/news/home/20091106005730/en