Silicon Valley Wire

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 

Palo Alto's Anita Borg Institute Honors "Women of Vision"

Palo Alto, Calif. -- The Palo Alto-based Anita Borg Institute for Women and Technology recently handed out its 2009 Women of Vision Awards, which annually honor women making "significant contributions" to technology in the areas of innovation, leadership and social impact. More than 650 attendees turned out in San Jose to honor the accomplishments of Mitchell Baker of Mozilla (Leadership category), Yuqing Gao of IBM Research (Innovation category) and Jan Cuny of the National Science Foundation (Social Impact category). Padmasree Warrior, the CTO of Cisco, delivered the keynote address.
http://anitaborg.org/
http://www.businesswire.com/news/home/20090511005292/en