Silicon Valley Wire

Intel Completes Deal for Infineon's Wireless Solutions Business

Santa Clara, Calif. -- Intel, the Santa Clara-based chip-making giant, said on Monday it has completed its acquisition of Infineon Technologies' Wireless Solutions (WLS) business. The all-cash deal was valued at $1.4 billion when it was first announced in late August. WLS, which provides cellular platforms to phone makers, will operate as a standalone business. Intel said the acquisition is part of its strategy to accelerate always-connected computing platforms that span a variety of device and market segments, including laptops, cars, smart phones, tablets and smart TVs. "As computing spreads across a range of connected devices, including new categories being created almost daily, we must be ready to support the next billion devices across multiple networks with smart, secure and seamless computing experiences," said Dadi Perlmutter, executive vice president and co-general manager of the Intel Architecture Group.
http://www.intel.com
http://newsroom.intel.com/community/intel_newsroom/blog/2011/01/31/intel-completes-acquisition-of-infineon-s-wireless-solutions-business?cid=rss-258152-c1-264093

White House Launches "Startup America" to Boost Entrepreneurship

Washington, DC -- The White House on Monday announced the launch of Startup America, a new program chaired by AOL co-founder Steve Case that aims to expand access to capital and other key resources for start-ups with the potential to create large numbers of jobs. The program already has garnered major commitments from several of the nation's largest tech companies, including a $200 million pledge by Intel to invest in start-ups, $150 million from IBM to fund programs that promote entrepreneurs and new business opportunities and a plan by Facebook to host "Startup Days," a series of 12-15 events designed to provide entrepreneurs with access to expertise, resources and engineers. "Those entrepreneurs who are intent on growing their businesses create the lion's share of these new jobs, in every part of the country and in every industry," the White House said in a statement. "Moreover, it is entrepreneurs in clean energy, medicine, advanced manufacturing, information technology, and other fields who will build the new industries of the 21st century, and solve some of our toughest global challenges."
http://www.whitehouse.gov/issues/startup-america
http://www.whitehouse.gov/blog/2011/01/31/are-you-ready-startup-america

Report: Android Smartphone Shipments Surpass Nokia's Symbian

Reading, U.K. -- Worldwide shipments of smartphones equipped with Mountain View-based Google's Android operating system surpassed those of Nokia Symbian handsets for the first time ever during the fourth quarter, according to a new report from market research firm Canalys. Android shipments totaled 32.9 million during the quarter, compared with 31 million for  Symbian. HTC and Samsung were the makers of nearly 45% of the Android-based handsets shipped. "The U.S. landscape will shift dramatically this coming year, as a result of the Verizon-Apple agreement," said Canalys analyst Tim Shepherd. "Verizon will move its focus away from the Droid range, but the overall market impact will mean less carrier-exclusive deals, while increasing the AT&T opportunity for Android vendors, such as HTC, Motorola and Samsung."
http://www.canalys.com/pr/2011/r2011013.html 

Mountain View-Based LinkedIn Files to Raise Up to $175 Million in IPO

Mountain View, Calif. -- LinkedIn, the Mountain View-based operator of a popular business-focused social network, has filed with the Securities and Exchange Commission (SEC) to raise up to $175 million in its initial public offering (IPO). The company, which has more than 90 million registered members and 990 employees, has yet to disclose other details, such as the number of shares to be sold or their expected price range. In its regulatory filing, the company disclosed that it generated $161.4 million in revenue for the first nine months of 2010, a little more than twice as much as the same period in 2009, with net income of $1.85 million. The IPO is expected to be the first of several among high-profile social networking companies in the coming months, with both Groupon and Facebook reportedly exploring similar moves. 
http://www.linkedin.com
http://www.sec.gov/Archives/edgar/data/1271024/000119312511016022/ds1.htm

S.F.-Based Plum District Lands $8.5 Million for Daily Deals Aimed at Moms

San Francisco -- Plum District, the San Francisco-based developer of a daily deals service focused on moms and their families, said it has raised $8.5 million in its first round of funding, led by Kleiner Perkins Caufield & Byers. General Catalyst Partners also participated. "The investment… will allow Plum District to grow our sales network of moms and meet the demand of our members by expanding our reach beyond the 20 districts we currently serve," said CEO Megan Gardner. Plum District currently operates its service in markets such as San Francisco, San Diego, Orange County, Los Angeles, Chicago, New York and Washington, DC, offering deals on items like groceries, spa treatments, family outings, children's classes and the like. 
http://www.plumdistrict.com 
http://www.plumdistrict.com/p/press_release_plum_district_raises_8_5_million

Palo Alto-Based Facebook Adds Optional Security Features

Palo Alto, Calif. -- Facebook has added the option for users to surf the site on a more secure encrypted connection, known as HTTPS. The encryption is the same used on shopping and banking websites to secure connections, as well as on Facebook when passwords are checked. "Starting today we'll provide you with the ability to experience Facebook entirely over HTTPS. You should consider enabling this option if you frequently use Facebook from public Internet access points found at coffee shops, airports, libraries or schools," the company said in a blog post. Facebook noted that the site may function more slowly using the setting, and some features, including many third-party applications, don't currently support HTTPS. In addition to the added encryption, Palo Alto-based Facebook said it will now also offer "social authentification," a unique form of the traditional "captcha" that will ask a user to identify Facebook friends from their photos.
http://blog.facebook.com/blog.php?post=486790652130  

Brisbane-Based XDx Lands $12.5M Loan from GE Capital Healthcare

Brisbane, Calif. -- XDx, the San Francisco-based developer of a diagnostic gene expression test designed to monitor organ transplant rejection and autoimmune diseases, said on Friday it has landed a a $12.5 million term loan from GE Capital, Healthcare Financial Services, a Maryland-based investment firm focused on the healthcare industry. XDx said it will use the financing for working capital, as well as to expand the commercialization of its AlloMap molecular diagnostic test and developer other gene expression-based tests for autoimmune diseases such as lupus. GE Capital, Healthcare Financial Services has over $17 billion invested in more than 30 sub-sectors, including senior housing, hospitals, pharmaceuticals and medical devices.
http://www.xdx.com/
http://gecapital.com/healthcare
http://www.genewscenter.com/content/Detail.aspx?ReleaseID=11842&NewsAreaID=2  

S.F.-Based Storenvy Secures $1.5 Million for Social Web Store Tools

San Francisco -- Storenvy, the San Francisco-based developer of a social marketplace and provider of online store-building tools for indie brands, said on Thursday it has raised $1.5 million in a new round of funding, led by Spark Capital and First Round Capital. Kleiner Perkins Caufield and Byars, Charles River Ventures and angel investors including David Cohen, John Maloney, David Cancel, David Hauser and Siamak Taghaddos also participated. Storenvy provides a free platform that independent merchants can use to build online stores on social networks. The platform has been used to create 2,800 online stores, and counts a community of 60,000 shoppers. The company will use the funds to expand its team.
http://www.storenvy.com
http://www.marketwire.com/press-release/Storenvy-Secures-15-Million-Funding-Fuel-Growth-Its-Social-Online-Store-Shopping-Community-1386691.htm

San Jose-Based Cypress to Sell Unit to ON Semiconductor

San Jose, Calif. -- ON Semiconductor, an Arizona-based supplier of chips for energy efficient electronics, said on Thursday it will pay $31.4 million in cash to acquire the CMOS Image Sensor unit of San Jose-based Cypress Semiconductor. The deal is expected to close by the end of the first quarter. Cypress's CMOS image sensors are used in multi-megapixel digital photography and cinematography, machine vision, linear and two dimensional (2D) bar code imaging, medical x-ray imaging, biometrics and aerospace applications. The unit will be integrated into ON's Digital, Military/Aerospace and Image Sensor (DMI) division. "The sale of our image sensor business will enable Cypress to continue to focus on programmable products," said T.J. Rodgers, Cypress's president and CEO. "We believe that ON Semiconductor represents the right home for the business, and that the sale, upon its completion, represents the best possible outcome for our existing customers."
http://www.cypress.com
http://www.onsemi.com
http://www.businesswire.com/news/home/20110127005411/en/Semiconductor-Signs-Definitive-Agreement-Acquire-CMOS-Image

Palo Alto-Based Altamont Capital Partners Closes First Fund at $500M

Palo Alto, Calif. -- Altamont Capital Partners, a Palo Alto-based private equity firm formed last year by private equity veterans from Golden Gate Capital and Bain & Company, said on Thursday it has closed its first fund with $500 million of capital. The firm, founded by Jesse Rogers, Randall Eason and Keoni Schwartz, plans to invest $10-$75 million in middle market businesses across a range of industries. "We are particularly drawn to companies that are constrained from realizing their full potential, and we have significant experience working with management teams to build success stories across a range of industries and transaction types," said Rogers.
http://www.altamontcapital.com 
http://www.prnewswire.com/news-releases/altamont-capital-partners-closes-first-fund-with-500-million-114721459.html

Redwood Shores-Based Smaato Lands $7 Million in Funding

Redwood Shores, Calif. -- Smaato, a Redwood Shores-based provider of mobile advertising optimization services, said on Wednesday it has raised $7 million in a new round of funding, led by Singapore's EDBI. Previous investors including Aeris Capital also participated. Founded in 2005, Smaato counts more than 11,000 publisher clients, and is managing close to 20 billion mobile ad requests a month. The company said it will use the new funds to fuel international expansion, particularly in Asia. "Singapore has proven to be an excellent location to expand our Asian business," said co-founder and CEO Ragnar Kruse. "This new round of funding will help us improve our reach, foster product innovation and grow the Smaato team worldwide."
http://www.smaato.com 
http://www.smaato.com/blog/2011/01/26/edbi/

San Francisco-Based Crowd Factory Raises $6.5 Million

San Francisco -- Crowd Factory, a San Francisco-based developer of social marketing applications, said on Wednesday it has raised $6.5 million in a new round of funding, led by new investor Storm Ventures. Previous backers, including Hummer Winblad, Peninsula Ventures and several angels, also participated. Founded in 2009, Crowd Factory helps clients embed social elements into marketing messages,and counts HBO, Sony and Universal McCann among its customers. The company said it will use the new funds to support development and marketing of its social marketing applications.
http://www.crowdfactory.com 
http://crowdfactory.com/press_releases/54-social-marketing-company-crowd-factory-secures-6-5-million-in-funding

Google to Hire More Than 6,200 New Employees in 2011

Mountain View, Calif. -- Google said it plans to hire more than 6,200 new employees this year, marking the company's largest year of expansion to date. "We'll hire as many smart, creative people as we can to tackle some of the toughest challenges in computer science: like building a web-based operating system from scratch, instantly searching an index of more than 100 million gigabytes and even developing cars that drive themselves," wrote Alan Eustace, the company's senior vice president of engineering and research. Mountain View-based Google said it hired more than 4,500 new employees last year, primarily in engineering and sales, which was second only to 2007, when it hired over 6,000. The news comes on the heels of a monster year for the company, which generated $29.3 billion in revenue and $8.5 billion in net income.
http://google.com/jobs
http://googleblog.blogspot.com/2011/01/help-wanted-google-hiring-in-2011.html

Sunnyvale-Based Yahoo to Lay Off Another 140 Staff; 1% of Workforce

Sunnyvale, Calif. -- A month after the company laid off around 600 employees, Sunnyvale-based Yahoo plans to lay off another 140 employees, or 1% of its total workforce, The New York Times reported. The paper cited an unnamed source, who said the current cuts will be focussed on Yahoo's marketing team. "The personnel changes we are making are part of our ongoing strategy to best position Yahoo for revenue growth and margin expansion and to support our strategy to deliver differentiated products and experiences to the marketplace," the company said. "We'll continue to hire on a global basis to support our key priorities."  
http://bits.blogs.nytimes.com/2011/01/25/yahoo-to-let-140-employees-go 

Santa Clara-Based Intel to Invest $100 Million in University Research

Santa Clara, Calif. -- Intel, the Santa Clara-based chip-making giant, said on Wednesday it will invest $100 million over the next five years to open Intel Science and Technology Centers across several U.S. universities. The centers will focus on projects in technology areas that align with the company's research agenda, such as visual computing, mobility, security and embedded solutions. Intel Labs also announced that Stanford University will be the hub for the first center, which will focus on improving visual computing experiences. "Intel Labs has long been a significant investor in university research and this program is the next step in that critical investment," said Intel CTO Justin Rattner.
http://newsroom.intel.com/community/intel_newsroom/blog/2011/01/26/intel-labs-to-invest-100-million-in-us-university-research?cid=rss-258152-c1-263978

Cupertino-Based Ongo Launches Premium Online News Service

Cupertino, Calif. -- Backed by $12 million in funding from Gannett, The Washington Post and The New York Times, Cupertino-based Ongo on Tuesday formally launched its paid digital news service. The service charges $6.99 a month for access to select articles from the AP, Washington Post, USA Today, New York Times and Financial Times. Subscribers can add one title of their choice from a list of selected publications as part of the subscription package, with additional titles available starting at $0.99 a month. The service debuts with more than a dozen publications, which all display articles using the company's own interface through computers, smart phones and tablets. Specialized tools are designed to customize articles to a reader's preferences, as well allow subscribers to share content through discussion groups. At launch, Ongo is offering a free one-month trial to those who create accounts, as well as a free "day pass" that doesn't require credit card information.
http://www.ongo.com/
http://www.ongo.com/press-room.php

Facebook Acquires Hyperlocal Mobile Ad Start-up Rel8tion

Palo Alto, Calif. -- Facebook has acquired Seattle-based Rel8tion, a nine-month-old start-up developing a hyperlocal mobile advertising service, All Things D reported. Financial terms of the deal were not disclosed. "We're excited to confirm that we recently completed a talent acquisition of Rel8tion, a stealth-mode startup in Seattle. The engineering team will join our growing Seattle office, and we're looking forward to having them on board," Palo Alto-based Facebook said in a statement. Rel8tion was co-founded by Peter Wilson, who is also helping Facebook launch its Seattle office.
http://www.rel8tion.com 
http://emoney.allthingsd.com/20110125/facebook-acquires-mobile-advertising-company-out-of-stealth-mode/

Pleasanton-Based Fulcrum BioEnergy Raises $75M for Biofuels Plant

Pleasanton, Calif. -- Fulcrum BioEnergy, a Pleasanton-based developer of technology that converts waste products into biofuels, said on Tuesday it has raised $75 million in its third round of funding. Names of the investors were not disclosed. The company said it will use a portion of the funds to help build its Sierra BioFuels Plant, a commercial-scale production facility in Reno, Nev. designed to convert household garbage to ethanol, renewable electricity and other chemicals. "We are excited to be starting construction on this milestone project which will demonstrate the tremendous future potential of our business," said James Macias Fulcrum's president and CEO. Fulcrum, which has been working with Fluor on engineering services for the $120 million project, expects to begin construction this summer. Construction is expected to be complete by late 2012.
http://www.fulcrum-bioenergy.com
http://www.fulcrum-bioenergy.com/documents/SeriesCFinancingFINAL01-25-11.pdf (PDF)

Livermore-Based Solar Universe Raises $7 Million in Second Round

Livermore, Calif. -- Solar Universe, a Livermore-based provider of residential and small business solar installations, said on Tuesday it has raised $7 million in its second round of funding, led by RockPort Capital Partners. The company plans to use the proceeds to expand its business into new geographies and product offerings. Solar Universe also has named Kevin Daughtery as its executive vice president of operations and Laurie Anthony Baggio as its chief development officer. Daugherty most recently served as the vice president of operations at Solar City, while Baggio, a long-standing investor in the company, served as COO of 1-800-GOT-JUNK?.
http://www.solaruniverse.com
http://www.prnewswire.com/news-releases/solar-universe-raises-70-million-and-grows-team-to-continue-expansion-across-north-america-114558054.html

California Remains No. 4 in Milken State Technology and Science Index

Los Angeles -- California has held onto its No. 4 ranking in the Milken Institute's 2010 State Technology and Science Index, released on Tuesday. The index, last released in 2008, ranks each state's tech and science capabilities, as well as their success in converting them into companies and high-paying jobs. Massachusetts again tops the list, followed by Maryland, Colorado, California and Utah. "States that got a head start on building their tech and science assets prior to the economic downturn now have healthier, more diversified economic growth engines," said Ross DeVol, executive director of economic research at the Milken Institute. The report credits California for its "considerable strength in the newly emerging fields of nanotechnology, clean technology and green technology," and pegs it as a "leading innovator in public policy to support these areas." The complete report is available at the link below.
http://www.milkeninstitute.org/pdf/STSI_exec.pdf (PDF)

Palo Alto-Based Auditude Raises $11 Million, Hires New CEO

Palo Alto, Calif. -- Auditude, the Palo Alto-based developer of an online video management and advertising platform, said on Monday it has raised $11 million in its second round of funding, and named Jeremy Helfand as its CEO. Granite Ventures led the round, which also included new investor Silicon Valley and previous backers Greylock Partners and Redpoint Ventures. The company, which previously raised $10.5 million in a round that closed in early 2009, also hired Helfand, the former president of United Online Media Group and senior vice president and general manager at Advertising.com, now a unit of AOL. He succeeds Adam Cahan, who has served as CEO for 3 ½ years and will continue to serve as an advisor. Auditude's platform currently manages billions of monthly premium video impressions for clients such as Comcast, Dick Clark Productions, Fox News, Major League Baseball, Sony Music, Universal Music Group, World Wrestling Entertainment and Yahoo.
http://www.auditude.com
http://www.businesswire.com/news/home/20110124005380/en/Auditude-Enters-2011-Continued-Momentum-Raises-11

San Francisco-Based Zynga Acquires Developer Area/Code

San Francisco -- Zynga, the San Francisco-based developer of social games such as FarmVille and Mafia Wars, said it has acquired New York-based social and mobile game developer Area/Code. Financial terms of the deal were not disclosed. Founded in 2005, Area/Code has published titles such as "CSI: Crime City" and "Parking Wars." The studio will maintain its operations and become Zynga's New York office. Frank Lantz, the firm's creative director and co-founder, will remain as creative director, while Demetri Detsaridis, its general manager and executive producer, will remain general manager.
http://zyngablog.typepad.com/zyngacom/2011/01/new-year-new-team-new-york.html
http://areacodeinc.com/2011/01/areacode-becomes-zynga-new-york 

Report: Twitter Revenues to Reach $150 Million This Year

San Francisco -- Twitter will generate a projected $150 million in revenues this year, up from $45 million in 2010, according to a report from eMarketer. By 2012, the firm predicts revenue for San Francisco-based Twitter will reach $250 million. "If Twitter can grow its user base and convince marketers of its value as a go-to secondary player to Facebook, it will succeed in gaining revenue," said eMarketer analyst Debra Aho Williamson. "In 2011 it must work overtime to give its early advertisers a positive experience." While Twitter's revenues are small compared to Facebook, eMarketer expects the company to generate more advertising dollars than MySpace by next year. Twitter overtook MySpace in unique monthly visitors in August 2010.
http://www.emarketer.com/Article.aspx?R=1008192 

Sunnyvale-Based Rambus Acquires Technology from Imagine Designs

Sunnyvale, Calif. -- Rambus, a Sunnyvale-based technology licensing firm, said on Monday it has acquired the lighting and display portfolio of Campbell-based Imagine Designs Inc. Financial terms of the deal were not disclosed. The acquired technology includes general lighting, LCD backlighting and micro-electromechanical system (MEMS) displays. Imagine Designs' founder and principal inventor, Brian Richardson, will join Rambus as a technical director in its Lighting and Display Technology business.
http://imaginedesignsinc.com/
http://www.rambus.com/us/news/press_releases/2011/110124.html

Fremont-Based vMobo Lands Funding for Text Message Marketing

Fremont, Calif. -- vMobo, a Fremont-based provider of text message-based marketing services, has raised $690,000 in equity funding for its interactive direct marketing application, according to a filing with the Securities and Exchange Commission. Six investors took part in the round. vMobo currently offers its services in India and the UAE, and plans next to expand into the Indonesian market.
http://www.vmobo.com
http://sec.gov/Archives/edgar/data/1510675/000144693311000001/xslFormDX01/primary_doc.xml

Google Reportedly to Launch Rival to Groupon, LivingSocial

Mountain View, Calif. -- Unable to reach a deal for Groupon, Mountain View-based Google is now preparing to launch a rival group buying service of its own. Mashable reported that the company is now courting businesses for Google Offers, a local deal-of-the-day service similar to Groupon and LivingSocial. Subscribers will receive daily emails with substantial offers to local restaurants and businesses, which will go into effect once a minimum number of deals are sold. "Google is communicating with small businesses to enlist their support and participation in a test of a pre-paid offers/vouchers program," Google wrote in a statement, published by Mashable. "This initiative is part of an ongoing effort at Google to make new products, such as the recent Offer Ads beta, that connect businesses with customers in new ways." The news comes weeks after Google ended its pursuit of Groupon, after offering a reported $6 billion for the company. Instead, Groupon is preparing to file for an initial public offering (IPO) that could value the company as high as $15 billion.
http://mashable.com/2011/01/20/google-offers/

San Jose-Based Presto Engineering Raises $6 Million in Funding

San Jose, Calif. -- Presto Engineering, a provider of product-engineering services to semiconductor makers, said on Friday it has raised $6 million in a new round of funding, led by CM-CIC Capital Prive. Previous backer Masseran Gestion also participated in the round, which the company will use to support its expansion and future growth. "We see this as a strong endorsement of our labless strategy and will assist us as we expand our services model to the major semiconductor regions around the globe," said Michel Villemain, the founder and CEO of Presto Engineering. The company, which operates out of hubs in Silicon Valley and France, said it plans to further strengthen its services for RF and 3-D semiconductor integration.
http://www.presto-eng.com
http://www.businesswire.com/news/home/20110121005012/en/Presto-Engineering-Receives-Funding-Fuel-Growth-Service

BAE Systems to Acquire Milpitas-Based Fairchild Imaging

Milpitas, Calif. -- BAE Systems, the U.S. unit of the British defense and aerospace giant, said on Friday it will acquire Milpitas-based Fairchild Imaging, a maker of solid-state electronic imaging components, cameras and systems. Under the deal, expected to close by midyear, BAE will pay $86 million in cash to acquire the remaining 91.3% of the company it doesn't already own. Fairchild, which has approximately 150 employees, will become part of BAE's Electronic Solutions sector, headquartered in Nashua, N.H. BAE said the acquisition will complement its current electro-imaging capabilities, technologies and product offerings. "The addition of Fairchild Imaging's advanced electronic imagery technology will support enhanced night vision capability for both airborne and land forces applications," said Linda Hudson, the president and CEO of BAE Systems.
http://fairchildimaging.com/
http://www.baesystems.com/
http://www.baesystems.com/Newsroom/NewsReleases/autoGen_111021111227.html

The Bay Citizen Lands $10 Million in New Funding Commitments

San Francisco -- The Bay Citizen, a San Francisco-based nonprofit news organization that launched last May with a $5 million contribution from the Hellman Family Fund, said it has raised an additional $10 million in multi-year funding. The new backing included $1 million gifts from the Evelyn & Walter Haas Jr. Fund, the Mimi and Peter Haas Fund, the Fisher Family Fund, the Elizabeth and William Patterson Foundation, Jeff and Laurie Ubben and Diane Wilsey. The organization said it will use the funds to ramp up its editorial, technology and membership building efforts. "We have ambitious goals for 2011, including expanding our coverage, driving development of interactive web applications and building relationships with more content partners so that we can better serve our readers," said CEO Lisa Frazier. The Bay Citizen has 28 full-time employees, and traffic to baycitizen.org averaged 150,000 unique visitors a month.
http://www.baycitizen.org
http://www.prnewswire.com/news-releases/the-bay-citizen-raises-10-million-in-additional-multi-year-funding-114293164.html

Annual VC Investments Increase for First Time Since 2007

Washington, DC -- Venture capital investments in the U.S. last year increased for the first time since 2007, according to a new report by PricewaterhouseCoopers and the National Venture Capital Association (NVCA). All told, investors sunk $21.8 billion into 3,277 deals in 2010, up 19% in dollars and 12% in deals over the prior year, based on data from Thomson Reuters. Double-digit increases were spread across almost every industry, including the Clean Technology and Internet-Specific sectors. "The venture capital community found itself in a better position at the end of 2010," said Mark Heesen, president of the NVCA. "We were clearly in recovery mode with investment levels reflecting the economic reality of our business. Increased investment across a diverse range of sectors highlighted those areas where the greatest opportunities lie, particularly within the Internet, software and clean technology industries." Of particular note, there were nearly 30% more new companies receiving venture capital for the first time in 2010 than in 2009.
http://www.marketwire.com/press-release/Annual-Venture-Investment-Increases-First-Time-Since-2007-According-MoneyTree-Report-1383603.htm
http://www.nvca.org/index.php?option=com_content&view=article&id=182&Itemid=142

Google Makes Surprise Switch at the Top; Page to Take Over as CEO

Mountain View, Calif. -- In a surprise announcement, Mountain View-based Google said on Thursday that co-founder Larry Page will replace Eric Schmidt as CEO, beginning April 4. Schmidt will assume the role of executive chairman, focusing on deals, partnerships and broader business relationships, while co-founder Sergey Brin will focus on new products. Google said the moves will streamline decision making and create clearer lines of responsibility and accountability at the top of the company. "We've been talking about how best to simplify our management structure and speed up decision making for a long time," said Schmidt. "By clarifying our individual roles we'll create clearer responsibility and accountability at the top of the company." Schmidt has served as CEO since 2001, when he took over for Page. The news came as Google reported fourth-quarter net income of $2.5 billion on revenue of $8.4 billion.
http://investor.google.com/earnings/2010/Q4_google_earnings.html
http://googleblog.blogspot.com/2011/01/update-from-chairman.html

Redwood City-Based Lands $30 Million in Third Round

Redwood City, Calif. -- Kabam, a Redwood City-based developer of massively multiplayer social games, said on Thursday it has raised $30 million in its third round of funding, co-led by Redpoint Ventures and Intel Capital. Previous backer Canaan Partners also participated in the round, which the company will use to expand its studios and make targeted acquisitions. Kabam said it is developing social games that cater to a more core gamer demographic, rather than the casual titles that predominate. Its games include "Kingdoms of Camelot" and "Glory of Rome." The company has grown from 20 employees at the beginning of 2010 to more than 200 today, and recently added studios in San Francisco and China.
http://www.kabam.com
http://www.businesswire.com/news/home/20110120005398/en/Kabam-Raises-30-Million-Fuel-Growth-Massively

Palo Alto-Based Qwiki Raises $8 Million in First Round

Palo Alto, Calif. -- Qwiki, the Palo Alto-based developer of a service that generates interactive video content on-the-fly from audio, text and animated photos sourced from the web, said on Thursday it has raised $8 million in its first round of funding. Participants included several high-profile individual investors, led by Facebook co-founder Eduardo Saverin. YouTube co-founder Jawed Karim and Juniper Networks co-founder Pradeep Sindhu also participated, as did institutional investors Lerer Media Ventures, Tugboat Ventures and Contour Venture Partners. Qwiki now has raised $9.5 million since its founding in 2009. The company, whose service is still in private alpha, will use the funding to bolster technology development and launch publicly on multiple platforms.
http://www.qwiki.com 
http://www.marketwire.com/press-release/Qwiki-Raises-8-Million-in-Series-A-Funding-1383140.htm

 

Pleasanton-Based Five9 Lands $8.6 Million in New Funding

Pleasanton, Calif. -- Five9, a Pleasanton-based developer of hosted virtual call center software, said on Wednesday it has raised $8.6 million in a new round of funding, led by Adams Street Partners. Previous backers Hummer Winblad Venture Capital and Partech International also participated in the round. The news comes as Five9 closes out a three year period that saw the company triple its revenue and its customer base. Five9 said it will use the new funding, which brings its total backing to more than $37 million, to accelerate growth plans. "As more and more enterprise call centers are shifting away from premise-based solutions and toward cloud-based solutions like Five9, we are uniquely positioned to capture a growing share of this market," said CEO Mike Burkland.
http://www.five9.com 
http://www.businesswire.com/news/home/20110119005373/en/Five9-Announces-8.6-Million-Financing-Led-Adams

Alameda-Based Vook Raises $5.25 Million in First Round

Alameda, Calif. -- Vook, an online publisher of "mixed-media" content, said it has raised $5.25 million in its first round of funding from investors including VantagePoint Venture Partners and Floodgate. The company will use the funds to accelerate sales and invest in technology to support growth. Vook's multimedia format combines video, text, images and social sharing features in a package optimized for tablets, smartphones and e-readers. The company has partnered with authors including Deepak Chopra, Seth Godin and Anne Rick to publish Vook content.
http://vook.com
http://www.marketwire.com/press-release/Digital-Publisher-Vook-Closes-525-Million-Financing-1381673.htm

Santa Clara-Based Agilent to Acquire Assets of A2 Technologies

Santa Clara, Calif. -- Agilent Technologies, the Santa Clara-based developer of communications, electronics, life sciences and chemical analysis technology, said on Wednesday it has signed a deal to acquire assets of Connecticut-based A2 Technologies, including all of the company's intellectual property, technology, employees and spectroscopy product portfolio. Financial terms of the deal, expected to close in mid-February, were not disclosed. A2 Technologies focuses on Fourier transform infrared (FT-IR) technology for lab and field use, making spectrometers for the petrochemical, environmental, aerospace, art conservation, academia and geosciences markets. Agilent said the acquisition will expand its spectroscopy business, which it added with its 2009 acquisition of Varian.
http://www.agilent.com
http://www.agilent.com/about/newsroom/presrel/2011/19jan-gp11002.html

San Jose-Based Mixbook Acquires S.F.-Based Scrapblog

San Jose, Calif. -- Mixbook, the San Jose-based developer of an online photo publishing service, said it has acquired San Francisco-based Scrapblog, operator of an online scrapbooking service. Financial terms of the deal were not disclosed. Mixbook said the acquisition will bolster the product offerings for its customer base, which now will number more than 5 million. "Digital scrapbooking has surged in popularity over the past few years," said Andrew Laffoon, the CEO of Mixbook. "Scrapblog's users will now have access to an improved user experience." Both companies were founded in 2006.
http://www.mixbook.com
http://www.scrapblog.com
http://www.marketwire.com/press-release/Mixbook-Acquires-Scrapblog-1381277.htm 

S.F.-Based Adteractive Secures $5.1 Million in New Funding

San Francisco -- Adteractive, a San Francisco-based provider of online advertising lead generation services, has raised $5.1 million in new round of funding, the company revealed in a filing with the Securities and Exchange Commission (SEC). Five unnamed investors took part in the round. Founded in 2000, Adteractive uses its proprietary technology to deliver more than 1.5 million customers and leads to clients each month. clients include Netflix, Esurance, Quicken Loans, QameFly and the University of Phoenix.
http://www.adteractive.com 
http://www.sec.gov/Archives/edgar/data/1286922/000128692211000004/xslFormDX01/primary_doc.xml

Apple Posts Record Profit; iPad Sales Surpass Projections

Cupertino, Calif. -- Apple posted a record profit of $6 billion in the final three months of 2010, generating $26.7 billion in revenues on sales of 16.2 million iPhones, 7.3 million iPads, 19.5 million iPods and 4.1 million Macs. The iPhone sales figure is an 86% increase over the same period in 2009. "We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales," said CEO Steve Jobs, who earlier this week began a medical leave of absence. "We are firing on all cylinders and we've got some exciting things in the pipeline for this year." All told, Apple also sold nearly 15 million iPads in 2010, blowing away analysts' estimates. IDC said the iPad represented nearly 90% of media tablets shipped in the third quarter, and predicts that 70.8 million media tablets will be shipped in 2012.
http://www.apple.com/pr/library/2011/01/18results.html 
http://www.idc.com/about/viewpressrelease.jsp?containerId=prUS22660011

Apple Shares Fall After Jobs Announced Medical Leave of Absence

Cupertino, Calif. -- Nervous stockholders sent shares of Cupertino-based Apple down more than 2% on Tuesday, a day after CEO Steve Jobs announced he'd be taking another leave of absence to address an unspecified medical condition. "I will continue as CEO and be involved in major strategic decisions for the company," wrote Jobs in a statement. Apple COO Tim Cook, who many see as the eventual successor to Jobs, will handle the company's day-to-day operations in his absence. It was just about two years ago when Jobs, a survivor of pancreatic cancer, first took medical leave with what he called a "hormone imbalance." Months later, reports surfaced that he had actually undergone a liver transplant. "I love Apple so much and hope to be back as soon as I can," Jobs wrote. "In the meantime, my family and I would deeply appreciate respect for our privacy."
http://www.apple.com/pr/library/2011/01/17advisory.html

S.F.-Based Scribd Raises $13 Million in Third Round

San Francisco -- Scribd, the San Francisco-based developer of a site that lets users share text documents, said on Tuesday it has raised $13 million in its third round of funding, co-led by MLC Investments and SVB Capital. Previous backers Redpoint Ventures, Charles River Ventures and Kinsey Hills Group also participated. Founded in 2007, Scribd is attracting 60 million monthly unique users to its site, which lets users upload and share text documents. The company said its HTML5 document reader technology allows anyone to easily upload and share their work in any file format. Scribd will use the funds to grow its engineering staff and accelerate product development, including mobile applications.
http://www.scribd.com
http://www.scribd.com/doc/47101019/Series-C-Press-Release 

San Jose-Based Adobe Acquires Demdex to Boost Online Marketing

San Jose, Calif. -- Adobe, the San Jose-based web publishing software giant, said on Tuesday it has acquired New York-based data management platform company Demdex.  Financial terms of the deal were not disclosed. Adobe said the acquisition will bolster its online marketing suite, helping advertisers and publishers consistently deliver more relevant digital experiences to their customers. "Our customers rank among the world's largest advertisers and publishers and they have been asking us to help them optimize how they buy and sell online ads," said Brad Rencher, the vice president and general manager of Adobe's Omniture unit.
http://www.adobe.com/
http://www.adobe.com/aboutadobe/pressroom/pressreleases/201101/011811AdobeDemdex.html

Goldman Restricts Facebook Offering to Foreign Investors

Palo Alto, Calif. -- After initially offering the opportunity for its wealthy U.S. client base to invest in Palo Alto-based Facebook, Goldman Sachs has now rescinded that offer, opting instead to restrict the offering to foreign investors to avoid breaching U.S. securities laws, The Wall Street Journal reported. In connection with a $500 million investment deal that gave Facebook a $50 billion valuation, Goldman said it would raise an additional $1.5 billion for the company by courting its client base for investments. Last week, reports emerged that the Securities and Exchange Commission (SEC) was investigating the arrangement -- which reportedly was already oversubscribed. Goldman said in a statement that it had "concluded the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law," which prohibits advertising or promotion of such private placements.
http://www.goldmansachs.com/
http://online.wsj.com/article/SB10001424052748703396604576087941210274036.html (subscription required)

TrafficTalk Launches Service in San Francisco

San Francisco -- More than a year after initially launching its free traffic information  service in Northern Virginia, Virginia-based TrafficTalk said on Tuesday it has rolled out the service in 20 U.S. markets, including San Francisco. The service brings drivers on mobile phones together into localized "communities," where they can share live information with one another about traffic conditions and alternate routes. The company said the idea is to take the power of CB radio and enhance it with mobile technology to give commuters a more timely and accurate source of traffic information than can be found on radio. More cities are expected to be added over the next year. The company also has hired several "hosts" to help facilitate conversation when call volumes are high, collecting information from drivers, recapping what is known and providing recommendations about possible alternate routes. "During our test, users understood immediately that the service was about helping one another -- they eagerly shared information on traffic conditions," said co-founder and CEO Larry Greenfield. "One driver passing an accident would help dozens or hundreds of others, while another person testing an alternate route told everyone whether it was really any quicker."
http://www.traffictalk.info
http://www.prweb.com/releases/2011/01/prweb4947834.htm

Report: Justice Dept. Mulling Block of Google's Acquisition of ITA Software

Washington, DC -- The Justice Department is considering blocking Mountain View-based Google's planned $700 million acquisition of Massachusetts-based ITA Software, a developer of software used to organize flight information by most major airlines and travel distributors. Citing a person with knowledge of the matter, The Washington Post reported that the department is examining whether the deal, first announced in July, will give Google too much power in the travel search market. Under federal law, the government has 30 days to attempt to quash a deal once a company has stopped cooperating with its information requests. The Post reported that the Justice Department is preparing its court case for when Google closes the deal, which could happen at any time. ITA's software is used by airlines such as American, Continental, Southwest, United, US Airways and Virgin Atlantic, as well as online travel sites including Hotwire, Kayak, Orbitz and TripAdvisor. The company was founded by computer scientists from MIT.
http://investor.google.com/releases/2010/0701.html
http://www.washingtonpost.com/wp-dyn/content/article/2011/01/13/AR2011011306057.html?wprss=rss_technology/techpolicy

eBay Completes $200M Acquisition of Germany's brands4friends

San Jose, Calif. -- eBay, the San Jose-based online auction giant, said on Friday it has completed its $200 million acquisition of brands4friends, a German online shopping club for fashion and lifestyle. The all-cash deal was originally announced in mid-December. Launched in 2007, brands4friends has approximately 3.5 million registered club members in Germany, with international operations in Austria, the U.K. and Japan. The company features limited daily offers on more than 600 fashion and lifestyle brands -- including Buffalo, Calvin Klein and Diesel -- at significantly reduced prices. eBay said the move is designed to strengthen its position as an online fashion destination in Europe.
http://www.brands4friends.de/
http://www.ebayinc.com
http://www.ebayinc.com/news#20110114005534

S.F.-Based Index Publications Raises New Round of Funding

San Francisco -- Index Publications, a San Francisco-based independent provider of news, analysis and events in the exchange-traded fund space, said on Friday it has raised an undisclosed amount in a new round of funding. The round was led by Charter Financial Publishing Network, the publisher of Financial Advisor magazine; investment bank Credit Suisse and investment firm Bendigo Partners. The company said it will use the proceeds to expand its offerings in the realm of ETF analytics and data, as well as to fuel its growth in Europe. Index operates a number of publications in the field of ETFs and index-related investments, including IndexUniverse.com and Inside ETFs.
http://www.indexuniverse.com
http://www.businesswire.com/news/home/20110114005598/en/Index-Publications-Closes-Strategic-Investment

Redwood City-Based RockYou Acquires Social Games Developer Playdemic

Redwood City, Calif. -- RockYou, the Redwood City-based publisher of social games and a complementary ad network, said on Thursday it has acquired U.K.-based social games developer Playdemic. Financial terms of the deal were not disclosed. Playdemic will operate as an independent RockYou studio, and continue to develop games such as "Gourmet Ranch" for Facebook. That title currently counts over half a million monthly active players. "Playdemic will retain their culture and creative control, as they bring their significant game industry experience to making social games," said Jonathan Knight, RockYou's senior vice president of games. RockYou's titles and applications count 200 million monthly unique visitors and 15 billion monthly global impressions.
http://www.rockyou.com 
http://www.businesswire.com/news/home/20110113005387/en/RockYou-Acquires-Social-Game-Developer-Playdemic

S.F.-Based ShopSocial Raises $1 Million for Social Commerce Service

San Francisco -- ShopSocial, the San Francisco-based developer of a social marketing and commerce service, has raised the first $1 million of a planned $1.2 million round of funding, according to a filing with the Securities and Exchange Commission (SEC). Five investors have so far participated in the round, including Metamorphic Ventures, X/Seed Capital and several angel investors, according to the blog TechCrunch. ShopSocial was founded in 2010 by BuzzLogic co-founder Todd Parsons. The platform reportedly will let brands include buttons on display ads and product pages that let consumers "share" particular items on Facebook and other social services. Consumers who share a deal in turn receive rewards, such as gift cards.
http://www.shopsocial.com/ 
http://www.sec.gov/Archives/edgar/data/1508058/000150805811000001/xslFormDX01/primary_doc.xml
http://techcrunch.com/2011/01/13/shopsocial-funding/

Menlo Park-Based Siolver Lake Sumeru Invests in PrimeSense

Menlo Park, Calif. -- Silver Lake Sumeru, the middle market tech-focused investment fund of Menlo Park-based Silver Lake, said it has invested in Israel-based PrimeSense, a developer of sensing and recognition technologies for consumer markets. Financial terms of the deal --Silver Lake's first in Israel's technology sector -- were not disclosed. PrimeSense's technology enables 3D mapping and gesture recognition capabilities in consumer electronics such as televisions, gaming systems and personal computers. Paul Mercadante, managing director of Silver Lake Sumeru, will join the company's board of directors.
http://www.primesense.com
http://www.silverlake.com
http://www.silverlake.com/pdfs/silver_0.lake.sumeru_primesense_press.release.pdf (PDF)