Silicon Valley Wire

Death of Michael Jackson Inundates Major News Sites

San Mateo, Calif. -- As news spread about Michael Jackson's death on Thursday, fans and curiosity seekers inundated the Internet for information, slowing several major news sites to a crawl, according to San Mateo-based Keynote Systems. The firm, which measures web site performance, said that during the early evening hours, sites including ABC, CBS, the L.A. Times and AOL became nearly unavailable (down to nearly 10% availability). "Beginning at 5:30pm (EDT), the average speed for downloading news sites doubled from less than four seconds to almost nine seconds," said Shawn White, Keynote's director of external operations. "During the same period, the average availability of sites on the index dropped from almost 100% to 86%. The index returned to normal by 9:15pm (EDT)."
http://www.keynote.com

Cupertino-Based Apple Triples Stake in Imagination Technologies

Cupertino, Calif. -- British chipmaker Imagination Technologies said on Friday that Cupertino-based Apple has nearly tripled its stake in the company to 9.5%. The company disclosed in a regulatory filing that Apple acquired 2.2 million more of its shares for about $5.2 million. The move comes about six months after Apple initially acquired a 3.6% stake in Imagination, which develops mobile graphics technology and also makes digital radios. Another local company, Santa Clara-based Intel, also increased its sake in Imagination to 16% earlier this week.
http://www.imgtec.com
http://www.imgtec.com/corporate/newsdetail.asp?NewsID=473

Bay Area Companies, Executives Win National Stevie Awards

New York -- Several Bay Area companies and executives earlier this week were named winners of the 2009 American Business Awards, known as the Stevies, during an event in New York. Winners included: Mountain View-based Tumri (Advertising); Sunnyvale-based Lending Club (Web Site or Blog); Santa Clara-based Billeo (Web Site or Blog); Earl Fry, the CFO of Redwood City-based Informatica (Finance Executive); Campbell-based YouSendit (Company - Up to 100 Employees - Computer Software & Services); San Francisco-based Gallagher Group Communications (Communications or PR Campaign); Palo Alto-based HP (Communications or PR Campaign); San Francisco-based Attack! Marketing (Marketing Department); San Jose-based Samsung Semiconductor (New Product or Service - Computer Hardware or Services); Redwood City-based Sentilla (New Product or Service - Computer Software); Sunnyvale-based SiBEAM (New Product or Service - Media & Entertainment); and David Perlmutter, executive VP and GM of Santa Clara-based Intel's Mobility Group (Product Development/Management Executive). A complete list of winners and finalists is available at the link below.
http://www.stevieawards.com/pubs/awards/403_2183_19888.cfm

Spire Corp. Secures $8 Million Expanded Credit Facility with SVB

Santa Clara, Calif. -- Spire Corp., a Massachusetts-based provider of solar factories and equipment for manufacturing photovoltaic modules and solar systems, announced that it has increased its revolving credit facility with Santa Clara-based  Silicon Valley Bank (SVB). The company said that it has added another $5 million to the facility, upping it to $8 million. Spire recently dissolved its solar systems integration joint venture with Gloria Solar, and formed a new unit that will provide those services in the U.S.
http://www.spirecorp.com/
http://www.businesswire.com/news/home/20090625005948/en

Report: Sunnyvale-Based Yahoo Planning Major Rebranding

Sunnyvale, Calif. -- Looking to reshape its image, Sunnyvale-based Yahoo is at work on a major rebranding campaign that may be tied to the expected launch of its redesigned home page this fall, The Wall Street Journal's AllThingsD blog reported. The project, being spearheaded by new CMO Elisa Steele, is an effort to steal some momentum from market-leader Google, as well as hold off Microsoft's newly launched Bing search engine. The blog said that Steele has hired brand consulting firm Landor Associates and outside consultant Penny Baldwin to help guide the effort.
http://kara.allthingsd.com/20090624/exclusive-yahoo-working-on-major-brand-overhaul-please-no-more-yodeling/

Palo Alto-Based Varian Acquires Assets of IKOEmed and IKOEtech

Palo Alto, Calif. -- Varian Medical Systems, a Palo Alto-based maker of medical devices and software used to treat cancer and other conditions, said on Thursday that it has paid $2.2 million to acquire the assets of Houston-based IKOEmed and IKOEtech, suppliers of software used in the planning of radiotherapy and radiosurgery treatments. Varian said that the deal will allow it to offer hospitals and clinics an additional software tool to automate a time-consuming portion of the treatment planning process, which typically takes anywhere from 30 minutes to 4 hours. Varian plans to sell the software initially in the U.S. as a standalone product, and eventually integrate it with its own Eclipse treatment planning software for radiotherapy, radiosurgery and brachytherapy.
http://www.varian.com
http://varian.mediaroom.com/index.php?s=43&item=689

Mountain View-Based Virsto Software Raises $7 Million in First Round

Mountain View, Calif. -- Virsto Software, a Mountain View-based developer of storage technology for virtual servers, said on Thursday that it has raised $7 million in its first round of funding, led by August Capital. Canaan Partners. a seed investor in Virsto last year, also participated. The company said that it will use the proceeds to launch its new storage software, as well as focus on expanding its roster of customer and partners. Founded in 2007, Virsto said that it plans to address the growing need for storage in virtualized data centers. The company said that most data storage systems in use today were designed before server virtualization came about. "The assumptions that were true for physical servers are not true for virtualized servers," said Mark Davis, the CEO of Virsto. "Current storage systems weren't built for this reality and as a result, storage for virtualized data centers is broken."
http://www.virsto.com
http://www.virsto.com/062509-funding.html

Santa Clara-Based Nokeena Networks Raises $6.5 Million in Second Round

Santa Clara, Calif. -- Nokeena Networks, the Santa Clara-based developer of a software appliance designed to improve the storage and distribution of online video, said on Thursday that it has raised $6.5 million in its second round of funding, led by Mayfield Fund. Several previous investors also participated in the round, which increased the company's total backing to $15 million since its founding in Feb. 2008. "The additional financing marks a significant milestone as we enter the next phase of company growth,” said company co-founder and CEO Rajan Raghavan. Nokeena's Media Flow Director is designed to reduce infrastructure costs for media publishers and distributors, while also enabling a TV-like viewing experience. Clearstone Venture Partners and Trinity Ventures co-led the company's first round in August 2008.
http://www.nokeena.com
http://www.nokeena.com/news-events/press-release-folder/nokeena-funding

Apple CEO's Liver Transplant Confirmed; "Excellent Prognosis"

Cupertino, Calif. -- Apple CEO Steve Jobs is "recovering well and has an excellent prognosis" after receiving a liver transplant, according to a statement by the Methodist University Hospital Transplant Institute in Tennessee. While the hospital did not disclose when the operation took place, The Wall Street Journal, which was the first to report on the matter, said it was about two months ago. "[Jobs] received a liver transplant because he was the patient with the highest MELD [Model for End-Stage Liver Disease] score of his blood type and, therefore, the sickest patient on the waiting list at the time a donor organ became available," the hospital added. Jobs announced in January that he would take a medical leave of absence from Apple, and expected to return to work at the end of June.
http://www.methodisthealth.org/methodist/About+Us/Newsroom/News/Steve+Jobs+Receives+Liver+Transplant

AOL Relaunches Cleaner Truveo Video Search Site

San Francisco -- Following six months of design, AOL said on Thursday that it has relaunched a less-cluttered version of its San Francisco-based Truveo video search site in 17 countries. The new site will feature an index of more than 350 million online videos, as well as a cleaner homepage and easier navigation than its predecessor. "We want to improve the user experience on the site first and foremost," CEO Pete Kocks told paidContent. Truveo stands second only to Google in both the U.S. and worldwide online video search markets.
http://www.truveo.com/
http://www.businesswire.com/news/google/20090624006128/en
http://paidcontent.org/article/419-aol-video-search-site-truveo-relaunches-in-17-nations-lands-deal-with-u

Palo Alto-Based ooma Reportedly Raises Another $14 Million

Palo Alto, Calif. -- ooma, the Palo Alto-based developer of a device that gives consumers unlimited telephone service in the U.S. with no monthly fees or contracts, has raised another $14 million in funding, the blog TechCrunch reported, citing multiple sources. Previous investor Worldview Technology Partners reportedly led the new round, which -- combined with strong sales of its devices at retailers such as Best Buy -- should help the once-struggling company reach profitability. ooma's system consists of a hub device linked to a broadband connection and a primary phone. The company, which now has raised $56 million since its inception, also makes another device that ties the system to additional phone jacks in the home.
http://www.ooma.com/
http://www.techcrunch.com/2009/06/23/ooma-gets-14-million-survival-looks-like-a-real-possibility/

Mountain View-Based LinkedIn Names Jeff Weiner as New CEO

Mountain View, Calif. -- LinkedIn, the Mountain View-based developer of an online professional network with more than 42 million members, on Wednesday named Jeff Weiner as its new CEO, replacing company founder Reid Hoffman, who will remain executive chairman. Weiner,a former executive-in-residence at executive in residence at Accel Partners and Greylock Partners, had served as LinkedIn's interim president since January. "Over the past six months, Jeff has done an exceptional job leading the company and I look forward to continuing the work that we have begun together," said Hoffman. LinkedIn has secured more than $100 million in funding since its inception, and posted a profit in 2008.
http://www.linkedin.com/in/jeffweiner08
http://www.businesswire.com/news/home/20090624005921/en

Palo Alto-Based True Ventures Leads $2M Round for Reductive Labs

Palo Alto, Calif. -- True Ventures, a Palo Alto-based venture capital firm focused on early-stage technology companies, said that it has led a new $2 million round of funding for Portland-based Reductive Labs, a developer of tools designed to improve the automation and management of IT operations. Other private investors also took part in the company's first round. Reductive's Puppet framework is currently in use by several large clients, including Google, Digg, Twitter, the New York Stock Exchange and Stanford.
http://www.trueventures.com
http://www.reductivelabs.com
http://news.yahoo.com/s/prweb/20090623/bs_prweb/prweb2564724_1

Santa Clara-Based Tensilica Lands New Round of Funding, Led by Docomo

Santa Clara, Calif. -- Tensilica, a Santa Clara-based developer of processor cores used in mobile devices, said that it has raised an unspecified amount through a new round of funding led by Docomo Capital, the venture arm of Japanese wireless carrier NTT Docomo. Previous investors Foundation Capital, Meritech Capital Partners, Oak Investment Partners and Worldview Technology Partners also participated. "Tensilica’s high-performance DPUs for audio, video and baseband functions will be key enablers for new capabilities and increased battery life in future mobile telephones," said Tomoya Hemmi, the president and CEO of  Docomo.
http://www.tensilica.com
http://www.tensilica.com/news/288/330/Tensilica-Announces-Strategic-Investment-by-DOCOMO-Capital.htm

T-Mobile to Launch Second Google Phone This Summer

Mountain View, Calif. -- Wireless carrier T-Mobile said that it plans to launch its second smartphone featuring Mountain View-based Google's Android operating system later this summer. The HTC myTouch will sell in the U.S. for $199. The device features a 3.2-inch touch screen, virtual keyboard and an upgradable 4GB memory card, with users also able to customize the applications on their phones through the Android Market. T-Mobile previously launched the T-Mobile G1, the first smartphone to run Google's Android mobile operating system. Existing T-Mobile customers will be able to purchase the myTouch starting on July 8, while new customers will have to wait until August.
http://www.t-mobile.com/company/PressReleases_Article.aspx?assetName=Prs_Prs_20090622&title=T-Mobile%20USA%20Unveils%20the%20T-Mobile%20myTouch%203G%20with%20Google%20Featuring%20Personalization%20Front%20and%20Center 

MySpace Cuts Two-Thirds of Intl Staff, Will Shut Some Offices

Los Angeles -- Following the trimming of 30% of its U.S. staff last week, News Corp.'s MySpace social network announced on Tuesday that it will additionally lay off two-thirds of its international workforce and close at least four of its offices abroad. The company, which recently saw its monthly traffic fall below that of Palo Alto-based rival Facebook for the first time, will now count around 150 employees outside of the U.S. MySpace said that its offices in Argentina, Brazil, Canada, France, India, Italy, Mexico, Russia, Sweden are now under review for possible closure. MySpace China and the company's joint venture in Japan will not be affected. "As we conducted our review of the company, it was clear that internationally, just as in the U.S., MySpace's staffing had become too big and cumbersome to be sustainable in current market conditions," said CEO Owen Van Natta.
http://www.myspace.com
http://www.businesswire.com/news/google/20090623005497/en

San Francisco-Based thisMoment Launches, Reportedly Raises $3M

San Francisco -- thisMoment, the San Francisco-based developer of a web platform for people to share moments through photos, video, blogging and social networking, said on Tuesday that it has officially launched its public site. Dow Jones' VentureWire also reported that the company has raised $3 million from angel investors. The site, founded by CEO Vince Broady, has signed content licensing deals with The New York Times, the Time Inc. Lifestyle Group and Road & Track, and also is integrated with social media sites such as Flickr, YouTube, Photobucket and Facebook.
http://www.thismoment.com
http://www.thismoment.com/i/press/thisMoment-Launch-Release.pdf (PDF)

FCC to Examine Handset Exclusivity Deals with Carriers

Washington, DC -- The Federal Communications Commission (FCC) said that it will launch formal proceedings to examine the exclusive deals made between cell phone makers and wireless network operators. Some have argued that the deals -- such as those between AT&T and Apple's iPhone, and Sprint and Palm's Pre -- go too far in limiting the choices of consumers. The FCC said that its proceeding, which follows a Senate subcommittee hearing last week, will attempt to "determine whether some of these arrangements adversely restrict consumer choice or harm the development of innovative devices." "We must ensure that consumers are able to reap the benefits that a robust and innovative competitive marketplace can bestow," said Michael Copps, the FCC's acting chairman.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-291492A1.pdf (PDF)

WSJ: Apple CEO Steve Jobs Had Liver Transplant

Cupertino, Calif. -- Steve Jobs, the CEO of Apple on medical leave since January, received a liver transplant in Tennessee this spring, The Wall Street Journal reported over the weekend. Neither the company nor Jobs had publicly disclosed the exact reason for his absence. Jobs, who reportedly has remained involved in the company's activities on a limited basis, remains on track to return later this month, though it would likely be on a part-time basis at first. Should that be the case, Apple COO Tim Cook would take on a "more encompassing role," including possibly taking a seat on Apple's board of directors, the Journal reported. Jobs, a survivor of pancreatic cancer, first announced in January that he was suffering from a treatable hormone imbalance, but a week later acknowledged that his health problems were "more complex" than initially thought.
http://online.wsj.com/article/SB124546193182433491.html#mod=djemalertTECH (subscription required)
http://www.reuters.com/article/marketsNews/idINN2047408620090620?rpc=44

Apple Sells 1 Million New iPhones in First Three Days

Cupertino, Calif. -- Just three days after launching its new iPhone 3GS model, Cupertino-based Apple said on Monday that it already has sold more than 1 million of the smartphones. In addition, the company said that over 6 million customers have downloaded its new iPhone 3.0 software ion the first five days of its release. The launch wasn't without hiccups, however, as some customers reportedly faced long waits when trying to activate their new phones on AT&T's wireless network, and some remain unable to use their new purchases. To compensate, Apple will offer affected customers a $30 iTunes Store credit, TechCrunch reported. "We are still resolving the issue that was encountered while activating your iPhone with AT&T," Apple wrote in an email to affected customers. "On Monday, you'll receive an email from Apple with an iTunes Store credit in the amount of $30. We hope you will enjoy this gift and accept our sincere apologies for the inconvenience this delay has caused."
http://www.apple.com/pr/library/2009/06/22iphone.html 
http://www.apple.com/iphone/softwareupdate/ 
http://www.techcrunch.com/2009/06/21/apple-stuck-apologizing-for-att-yet-again-with-a-30-itunes-credit/   

Mountain View-Based Tumri Lands $15M, Major Investment from Time Warner

Mountain View, Calif. -- Tumri, the Mountain View-based developer of a display ad platform, said on Monday that it has raised more than $15 million in new financing, including over $10 million in equity funding from Time Warner Investments. Previous investors Accel Partners, Shasta Ventures and Tenaya Capital also participated. The company, which also received a $5 million loan from Silicon Valley Bank, plans to use the capital to expand all aspects of its business. Founded in 2004, Tumri is the developer of AdPod, a platform designed to let advertisers target their messages to consumers on the fly. The company in 2007 also raised $10 million in its second round of funding, led by Lehman Brothers Venture Partners.
http://www.tumri.com/
http://www.tumri.com/about/press-releases/06-22-09-funding.html

Menlo Park-Based Redpoint Ventures Leads $10 Million Round for 2tor

Menlo Park, Calif. -- Redpoint Ventures, a Menlo Park-based venture capital firm, said that it has led a new $10 million round of funding for New York-based 2tor, a developer of online degree programs for universities such as USC. Novak Biddle Venture Partners and City Light Capital also participated in the company's first round, which it plans to use to increase its student recruitment and marketing efforts. Greg Martin, a partner with Redpoint Ventures, will join the company's board of directors.
http://www.2tor.com
http://www.redpoint.com/
http://sev.prnewswire.com/education/20090622/NY3587222062009-1.html

JibJab Premiers Obama Musical Parody Video

Venice, Calif. -- JibJab, the Venice-based creator of political parity cartoon videos, on Saturday premiered its first satire of the Obama administration at the 65th Annual Radio and Television Correspondents Dinner, with the President, himself, in attendance. The 2-minute musical video, entitled "He's Barack Obama," portrays Obama as a super hero battling challenges such as the economy, foreign policy and pirates -- all to a heavy metal rendition of "When Johnny Comes Marching Home." In a departure from its banjo-centric musicals of the Bush era, the company recruited musicians from bands such as the Foo Fighters and Jane's Addiction to take part in the project, which can be viewed at the link below.
http://sendables.jibjab.com/originals/hes_barack_obama