Silicon Valley Wire

Mountain View-Based Google in "Advanced" Talks to Acquire Yelp

Mountain View, Calif. -- Google is in advanced negotiations to acquire San Francisco-based user-generated reviews service Yelp for at least $500 million, TechCrunch reported, citing multiple unnamed sources. Founded in 2004, Yelp counts around 9 million monthly unique visitors, according to comScore data. The company has to date raised $31 million in venture capital from investors including DAG Ventures, Benchmark Capital and Bessemer Venture Partners. Mountain View-based Google offers its own service that lets users create reviews of local businesses, and both services display star-based ratings in Google search results. The New York Times noted that "the two companies have had conversations for several years, but a more serious round of acquisitions talks began two months ago."
http://www.yelp.com
http://www.techcrunch.com/2009/12/17/google-acquire-buy-yelp/
http://dealbook.blogs.nytimes.com/2009/12/18/google-is-in-talks-to-buy-yelp/

San Mateo-Based Tioga Energy Lands $20 Million in Second Round

San Mateo, Calif. -- Tioga Energy, a San Mateo-based provider of renewable energy services, said on Friday that it has raised $20 million in the initial closing of its second round of funding, which the company will use to build and develop solar projects. Investors included MEMC Electronic Materials, NGEN Partners, Nth Power and Draper Fisher Jurvetson. "This financing round will provide the operating capital to rapidly grow our business and accelerate the development of our growing project pipeline," said Paul Detering, the CEO of Tioga Energy. Tioga maintains and operates solar systems on behalf of its customers, allowing them to avoid the up-front costs of buying their own systems.
http://www.tiogaenergy.com
http://finance.yahoo.com/news/Tioga-Energy-Completes-20M-bw-2172469176.html?x=0&.v=2

Napa-Based Inertia Beverage Group Raises $14 Million in Funding

Napa, Calif. -- Inertia Beverage Group (IBG), a Napa-based provider of direct sales technology and services to the wine industry, said on Friday that it has raised $14 million in a new round of funding. New investor PEI Funds joined previous backers Allegis Capital and Sid R. Bass Associates in the round, which the company will use to bolster its core services of fulfillment, winery-direct ecommerce and compliance. "We now have access to all of the necessary resources to execute our vision," said Ted Jansen, the president and CEO of IBG. The news comes five months after the company acquired the fulfillment assets of New Vine, including a 136,000-square -foot fulfillment center in American Canyon. Also on Friday, IBG named Dave Manougian, the former CEO of The Golf Channel, as its chairman.
http://www.inertiabev.com
http://finance.yahoo.com/news/Inertia-Beverage-Group-Raises-bw-256911172.html?x=0&.v=1

Santa Clara-Based Applied Materials Completes Tender Offer for Semitool

Santa Clara, Calif. -- A month after first announcing the deal, Santa Clara-based Applied Materials, a developer of equipment, services and software used to make semiconductors, said on Friday that it has completed its tender offer for Montana-based Semitool, a supplier of electrochemical plating and wafer surface preparation equipment used by chip companies. The company said that more than 94% of Semitool's shares have been tendered. Applied Materials, which is paying $11 a share, said that it now plans to complete a second-step merger by Monday. The company said that the acquisition will expand its capability to address opportunities in the wafer packaging market, while also providing complementary systems and technology for advanced semiconductor manufacturing. Semitool will be operated as a part of Applied's Silicon Systems Group.
http://www.businesswire.com/portal/site/appliedmaterials/?ndmViewId=news_view&newsId=20091218005132&newsLang=en

HHS Announces $60M Program to Increase Adoption of Health IT

Washington, DC -- The Department of Health and Human Services (HHS) on Friday unveiled a new $60 million program aimed at increasing the adoption of health IT. The funding, authorized by the American Recovery and Reinvestment Act, will be used to support projects focused on improving the security of health IT, making the technology more patient-friendly, developing new architectures to handle the exchange of health information and finding ways to use that information to improve the overall quality of health care. Applications for funding are due on Jan. 25, with awards expected to be announced in March. David Blumenthal, the national coordinator for health IT at HHS, said that the program -- known as Strategic Health IT Advanced Research Projects (SHARP) -- "will bring together some of the best and brightest minds in the nation" to "increase the meaningful use of health IT."
http://www.hhs.gov
http://www.businesswire.com/news/home/20091218005539/en

Report: Android Quickly Challenging iPhone in Smartphone Market

Reston, Va. -- Though only a few months old, Google's Android smartphone operating system already is making a significant impact on the U.S. mobile market, according to a new report from Reston-based comScore. Among American consumers in the market for a smartphone, 17% now say they are considering buying an Android-supported device in next three months, compared with 20% who plan to purchase an iPhone. The firm said that consumer awareness of Android is growing rapidly, due in large part to Verizon's Droid ad campaign. "With handsets on multiple carriers, from multiple manufacturers, and numerous Android device models expected to be in the U.S. market by January, the Android platform is rapidly shaking up the smartphone market," said Mark Donovan, comScore's senior vice president of mobile. "While iPhone continues to set the bar with its App Store and passionate user base, and RIM [Blackberry] remains the leader among the business set, Android is clearly gaining momentum among developers and consumers."
http://www.comscore.com/Press_Events/Press_Releases/2009/12/Android_Crashing_the_Smartphone_Party

Palo Alto-Based kaChing Raises $7.5 Million in First Institutional Round

Palo Alto, Calif. -- kaChing, the Palo Alto-based developer of a money management site that lets users mirror the trades of those identified as skilled investors, said that it has raised $7.5 million in its first round of institutional funding, led by DAG Ventures. The company, which bills itself as a  "compelling alternative" to mutual funds, said that it will use the proceeds to fuel growth and infrastructure expansion. Site users have invested $4.5 million through kaChing's platform since its launch in late October. The company identifies skilled investors, called Geniuses, and allows anyone to follow and manually emulate their trades for free. It also charges a fee -- averaging about 1.25% annually -- for those who want the convenience of automatically mirroring the trades in their brokerage account. The company earlier attracted $3 million in funding from individual investors.
http://www.kaching.com
http://www.kaching.com/company/press/kaching-secures-7.5-million-in-financing

Report: Russia's Digital Sky Increases Stake in Facebook

Palo Alto, Calif. -- Russian investment firm Digital Sky Technologies (DST) has purchased additional shares of Palo Alto-based social networking site Facebook, pushing its stake in the company to more than 5%, according to Russian newspaper Kommersant, CNET reported. Earlier this year, DST invested $200 million in Facebook for a 1.96% stake, The firm is acting as a "passive investor," meaning it has not sought a seat on the company's board. The news comes a day after DST led a $180 million investment in San Francisco-based social games firm Zynga. The company also is reportedly in talks to purchase instant messaging service ICQ from AOL.
http://dst-global.com
http://news.cnet.com/8301-13577_3-10417209-36.html
http://blog.quintura.com/2009/12/17/dst-raises-stake-in-facebook-to-more-than-5/

Emeryville-Based RepairPal Lands $4 Million in First Round

Emeryville, Calif. -- RepairPal, an Emeryville-based online publisher of auto repair and maintenance information, said that it has raised $4 million in its first round of funding, led by Tugboat Ventures. Several individual investors also participated, including Rick Keister, the former CEO of Keystone Automotive Industries, David Strohm, a partner at Greylock Partners; Mark Goines, a former Intuit executive; and Michael Torres, the CEO of Adelante Capital Management. David Sturtz, the CEO of RepairPal, said that the funding will allow his company to "significantly advance our roadmap." The company's site and iPhone app deliver free, instant repair estimates based on vehicle type and zip code, as well as a directory of auto repair facilities.
http://repairpal.com
http://finance.yahoo.com/news/RepairPal-Raises-4-Million-iw-2463843140.html?x=0&.v=1

Sundaresh Resigns as CEO of Milpitas-Based Adaptec, Company Seeks Sale

Milpitas, Calif. -- Adaptec, a Milpitas-based developer of storage technology for data centers that is attempting to sell its operations, said on Thursday that Sundi Sundaresh, its president and CEO since 2005, will leave the company effective Jan. 4. Adaptec said that Sundaresh will continue as a consultant, assisting with the sale. The company has named board member John Quicke to serve as interim president and CEO. He is a managing director and operating partner of Steel Partners. "The board has the upmost confidence that John Quicke as Interim CEO can lead the company through the sale process," said Chairman Jack Howard. Adaptec also said that it has hired Blackstone Advisory Partners to assist in the sale.
http://www.adaptec.com
http://investor.adaptec.com/phoenix.zhtml?c=97782&p=irol-newsArticle&ID=1367092&highlight=

Milpitas-Based Nanometrics to Raise $20.6 Million Through Offering

Milpitas, Calif. -- Nanometrics, a Milpitas-based supplier of advanced process control metrology systems used to make semiconductors, solar photovoltaics and high-brightness LEDs, said on Thursday that it plans to raise $20.6 million through a public offering, pricing more than 2 million shares at $11 each. Vincent Coates, the company’s founder, also is selling 675,000 shares at the same price. The offering is expected to close on Tuesday, with Nanometrics using $2 million of the proceeds to repay debt related to its June acquisition of certain assets of Zygo.
http://www.nanometrics.com
http://www.businesswire.com/news/home/20091217005607/en

FTC Files Suit Against Chipmaker Intel, Alleges Anticompetitive Tactics

Santa Clara, Calif. -- The Federal Trade Commission (FTC) on Wednesday filed suit against Santa Clara-based chip giant Intel, charging that the company illegally has used its dominant market position for a decade to stifle competition and strengthen its monopoly. In its complaint, the FTC alleges that Intel has "waged a systematic campaign to shut out rivals' competing microchips by cutting off their access to the marketplace." "It's been running roughshod over the principles of fair play and the laws protecting competition on the merits," said Richard Feinstein, director of the FTC's Bureau of Competition. In response, Intel called the suit "misguided," and "based largely on claims that the FTC added at the last minute and has not investigated." The complaint charges that Intel used a series of threats and rewards to influence which chips computer manufacturers such as Dell, HP and IBM used in their products. The FTC said that the company also "secretly redesigned" key software, known as a compiler, to deliberately stunt the performance of competitors' chips. The suit does not seek monetary damages, but rather to change the company's conduct, officials said. The news comes a month after Intel agreed to pay $1.25 billion to Sunnyvale-based rival AMD to settle suits relating to its business practices.
http://www.ftc.gov/opa/2009/12/intel.shtm
http://finance.yahoo.com/news/Intel-Comments-on-FTC-bw-112159620.html?x=0&.v=1

S.F.-Based Zynga Lands $180M Round, Led by Facebook Backer DST

San Francisco -- In a development highlighting the growing importance of social media, San Francisco-based Zynga, a publisher of social networking games such as FarmVille and Mafia Wars, on Wednesday announced a $180 million round of funding, led primarily by Facebook investor Digital Sky Technologies (DST). New backers Andreessen Horowitz and Tiger Global, and previous investor Institutional Ventures Partners also participated. The bulk of the funds, however, came from DST, a Russian firm that earlier this year invested $200 million into Palo Alto-based Facebook. "Our earlier investment in Facebook and now in Zynga underscores our premise that social networking and social entertainment will define the next generation of the web," said Yuri Milner, the CEO of DST. Zynga said that it will use a portion of the proceeds to fuel growth, while utilizing the remainder to facilitate liquidity for employees and investors. Zynga claims over 230 million monthly active users for its games, which include FarmVille, Cafe World, Zynga Poker, Mafia Wars, YoVille, FishVille and the recently announced PetVille. The company makes the bulk of its revenue when players purchase virtual goods.
http://www.zynga.com/
http://blog.zynga.com/2009/12/zynga-receives-investment-from-digital-sky-technologies-.html

Palo Alto-Based Smule Raises $8 Million in New Funding

Palo Alto, Calif. -- SonicMule (Smule), a Palo Alto-based developer of music applications for the iPhone, said on Wednesday that it has raised $8 million in a new round of funding led by Shasta Ventures. Previous backers Bessemer Venture Partners and Granite Ventures also participated. Smule is the creator of iPhone music apps such as Leaf Trombone: World Stage and I Am T-Pain. The company said that it has sold more than 2.4 million downloads from Apple's App Store since its first product was released in September 2008 . 
http://www.smule.com

Sunnyvale-Based AlikeList Lands $5M for Local Business Reviews

Sunnyvale, Calif. -- AlikeList, the Sunnyvale-based developer of a new social site that features user-generated local business reviews, said that it has raised $5 million in its first round of funding from Syncom Venture Partners. The company, whose competitors in the space include Yelp and CitySearch, plans to use the funds for product development, as well as to build its user base and expand its executive team. AlikeList lets users create reviews of local establishments, list businesses they wish to visit and share their referrals with friends. Users may also choose to share their reviews with the entire AlikeList community.
http://www.alikelist.com
http://www.prnewswire.com/news-releases/alikelist-secures-5-million-in-series-a-funding-from-syncom-venture-partners-79288917.html

Report: MySpace in Talks to Buy San Francisco-Based Flixster

San Francisco -- Fresh off of its recent acquisitions of music services iLike and imeem, social networking giant MySpace is in talks to acquire San Francisco-based Flixster, a movie-focused social media site, according to a report in All Things D. Citing several unnamed sources, the blog reported that MySpace would combine Flixster with Rotten Tomatoes, the film reviews aggregator operated by News Corp.'s IGN. Founded in 2006, Flixster counts some 50 million users of its service, and claims the top movie-related application for Apple's iPhone. The company has raised $7 million to date from backers including Lightspeed Venture Partners, Pinnacle Ventures and Reid Hoffman.
http://www.flixster.com
http://kara.allthingsd.com/20091214/exclusive-myspace-eyes-flixster-for-acquisition/

Redwood City-Based Silver Spring Networks Raises $100 Million

Redwood City, Calif. -- In one of the largest funding rounds for a U.S. technology company this year, Redwood City-based Silver Spring Networks, a developer of technology that allows utilities to transmit and receive information from the electric grid, said on Tuesday that it has raised $100 million in new preferred equity financing. Participants included previous backers Google Ventures, Foundation Capital, Kleiner Perkins Caufield & Byers and Northgate Capital. The company, which has raised more than $267 million since its inception, plans to use the proceeds to develop new smart grid applications, as well as for job growth and the continued expansion of its global footprint. "We have a terrific opportunity to accelerate the development and deployment of next generation smart grid initiatives," said CFO Warren Jenson. Silver Spring provides hardware, software and services that allow utilities to deploy advanced applications, such as smart metering and demand response, over a single, unified network. Clients include Florida Power & Light, Pacific Gas & Electric, Pepco Holdings, Jemena Electricity Networks and United Energy Distribution.
http://www.silverspringnetworks.com
http://finance.yahoo.com/news/Silver-Spring-Networks-bw-638930472.html?x=0&.v=1

WSJ: Google Testing Own Phone; Will Sell Direct to Consumers

Mountain View, Calif. -- Google currently is testing a new mobile phone that the company designed and plans to begin selling directly to consumers, perhaps as early as next year, The Wall Street Journal reported. According to people familiar with the matter, the new "Nexus One" phone is being developed by HTC, which also makes two other handsets that run Google's Android mobile operating system. This time, however, Mountain View-based Google was directly involved in all aspects of creating the software experience on the phone, and plans to sell the device online, rather than going through a wireless carrier. The blog All Things D also reported that Google is in talks with T-Mobile USA to sell the phone at a discount to the carrier's subscribers.
http://online.wsj.com/article/SB10001424052748704121504574594012027538086.html (subscription required)
http://mediamemo.allthingsd.com/20091213/google-pals-up-with-t-mobile-to-push-its-nexus-one-phone/
http://googlemobile.blogspot.com/2009/12/android-dogfood-diet-for-holidays.html

San Francisco-Based Cloud Engines Lands $3 Million in Funding

San Francisco -- Cloud Engines, a San Francisco-based developer of technology that lets users access their hard drives remotely, has raised the first $3 million of a planned $4 million round of equity funding, according to a filing with the Securities and Exchange Commission (SEC). Names of the investors were not disclosed. Founded in 2007, Cloud Engines is the developer of Pogoplug, a device that connects users' USB drives to the Internet, allowing them to remotely share and access files. The company also has developed an application that lets users tap their hard drives from their iPhones. The news comes seven months after Cloud Engines raised an undisclosed amount of funding from The Foundry Group. 
http://www.pogoplug.com
http://www.sec.gov/Archives/edgar/data/1392084/000139208409000005/xslFormDX01/primary_doc.xml

Los Altos-Based Rambus Acquires Technology, Patents from GLT

Los Altos, Calif. -- Rambus, a Los Altos-based developer of of high-speed memory architectures, said that it has paid $26 million to acquire technology and a portfolio of advanced lighting and optoelectronics patents from Ohio-based Global Lighting Technologies (GLT). Rambus said that the acquisition, which includes MicroLens light distribution technology, broadens its offerings for computing and consumer electronics. As part of the deal, 12 employees from GLT, including co-founder and former CEO Jeff Parker, will join Rambus. Parker will lead the company’s new Lighting Technology Division. "Through the work of Jeff Parker and his team, we will continue to enhance the display of games, movies and images on computers and consumer electronic products," said Harold Hughes, the president and CEO of Rambus.
http://www.rambus.com
http://www.glthome.com
http://www.glthome.com/index.htm

Milpitas-Based FireEye Opens Federal Government Practice

Milpitas, Calif. -- FireEye, a Milpitas-based developer of malware protection systems, said on Tuesday that it has opened a new office near Washington, DC to cater to federal clients, and named Gene Skiba as the vice president of its federal sector. The move comes just a month after the company landed a new investment as part of a larger technology development deal with In-Q-Tel, the venture fund backed by the Central Intelligence Agency (CIA). Skiba most recently served as vice president of the U.S. Public Sector at BlueCat Networks, and previously was the vice president of federal sales and operations at F5 Networks. 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.
http://www.fireeye.com
http://finance.yahoo.com/news/FireEye-Expands-Federal-bw-473231379.html?x=0&.v=1

Apple's Steve Jobs Among Finalists for Time's Person of the Year

Cupertino, Calif. -- Steve Jobs, the CEO of Cupertino-based Apple, is among seven finalists for Time magazine's "Person of the Year," the publication announced on Monday. Other finalists include Federal Reserve Chairman Ben Bernanke, Speaker of the House Nancy Pelosi, Jamaican sprinter Usain Bolt, U.S. Army General Stanley McChrystal, President Barack Obama and the "increasingly influential" Chinese worker. Obama received the honor last year. Jobs, the influential co-founder of Apple, returned to work in July following a six month leave of absence, during which he underwent a successful liver transplant. The winner will be announced during Wednesday's Today Show on NBC. Voting is being conducted at the link below.
http://today.msnbc.msn.com/id/34367161/ns/today-today_people/

San Mateo-Based Clarizen Lands $8 Million in Third Round

San Mateo, Calif. -- Clarizen, a San Mateo-based developer of online work and project management software, said on Monday that it has raise $8 million in its third round of funding, led by DAG Ventures, Benchmark Capital and Carmel Ventures. The company said that it will use the proceeds to expand its marketing and sales operations while also bolstering product development. Founded in 2005, Clarizen is the maker of web-based software designed to give clients real-time visibility into their business processes. The company current boasts more than 500 customers.
http://www.clarizen.com
http://finance.yahoo.com/news/Clarizen-Secures-8M-in-iw-3963998611.html?x=0&.v=1

On Semiconductor to Acquire Milpitas-Based California Micro Devices

Milpitas, Calif. -- California Micro Devices (CMD), a Milpitas-based developer of analog and mixed signal chips for the mobile handset, consumer electronics and personal computer markets, said on Monday that it has signed a deal to be acquired by Arizona-based ON Semiconductor. ON will pay $4.75 a share through a cash tender offer, making the deal worth about $108 million. "The acquisition of California Micro Devices will significantly strengthen our offering of application specific integrated passive (ASIP) devices to protect products in the wireless, computing and consumer electronics end-markets," said Keith Jackson, the president and CEO of ON Semiconductor. The deal is expected to close in the first quarter of 2010.
http://www.cmd.com
http://www.businesswire.com/news/home/20091214005425/en

Fremont-Based ActivIdentity to Acquire CoreStreet for $20 Million

Fremont, Calif. -- ActivIdentity, a Fremont-based developer of authentication and credential management technology, said on Monday that pay approximately $20 million to acquire CoreStreet, a maker of certification, credentialing and physical access products with offices in Massachusetts and Washington, DC. The deal, expected to close before year's end, consists primarily of cash, but also includes stock and warrants. ActivIdentity said that the acquisition will strengthen its authentication and credential management offerings, which are designed to establish a person's identity when interacting digitally. "This deal represents the first piece in our growth strategy going forward," said ActivIdentity CEO Grant Evans.
http://www.actividentity.com/
http://www.corestreet.com
http://www.corestreet.com/about/news_events/pr/2009/2009_12_14.html

Monotype Imaging Acquires Redwood Shores-Based Planetweb

Redwood Shores, Calif. -- Monotype Imaging, a Massachusetts-based developer of text imaging technology, said that it has acquired Planetweb, a Redwood Shores-based maker of user interface software. Financial terms of the deal were not disclosed. Monotype said that the move will allow it to offer manufacturers of consumer electronics products that integrate its font technologies with Planetwebs graphical user interface tools. Monotype said that several key members of Planetweb's executive team will remain with the company.
http://www.planetweb.com
http://www.planetweb.com/mti-announce.html

Mountain View-Based Hansen Settles Litigation with Luna Innovations

Mountain View, Calif. -- Clearing a major hurdle in its bid to emerge from Chapter 11 bankruptcy protection, Virginia-based Luna Innovations, a developer of sensing, instrumentation and nano-medicine technologies, said on Monday that it has settled its litigation with Mountain View medical robotics firm Hansen Medical. The news comes nine months after a Santa Clara County jury ordered Luna to pay Hansen $36 million to settle a contract dispute -- a move that eventually forced the company's bankruptcy in July. With the settlement in place, Luna has filed a new reorganization plan, which includes paying all of its outstanding claims while allowing stockholders to retain their shares. It also includes a deal for Hansen to use Luna's fiber optic shape sensing technology in its medical robotic instruments, as well as a $5 million promissory note payable over four years from Luna to Hansen.
http://www.lunainnovations.com/
http://www.businesswire.com/news/home/20091211005725/en

WSJ: AOL in Talks to Sell ICQ Instant Messaging Business

New York -- Newly independent AOL is in early talks to potentially sell its ICQ instant-messenger business to Russia's Digital Sky Technologies in a deal that could be worth up to $300 million, The Wall Street Journal reported on Monday. ICQ, which is most popular with Internet users in Germany and Russia, is among a handful of AOL assets, along with social networking site Bebo, that AOL reportedly is attempting to shed. A person familiar with the matter told the Journal that AOL also has had initial talks with other potential suitors about the business. The news comes just five days after AOL completed its spinout from parent Time Warner.
http://online.wsj.com/article/SB10001424052748703442904574594390157672818.html?mod=WSJ_hps_sections_tech (subscription required)
http://www.nytimes.com/2009/12/14/technology/companies/14aol.html?partner=yahoofinance