Silicon Valley Wire

Intel CTO Says Gap Between Humans, Machines Will Close by 2050

San Francisco -- Speaking on Thursday at a forum in San Francisco, the CTO of Santa Clara-based chipmaker Intel made the bold prediction that the gap between humans and machines will close by 2050. "The industry has taken much greater strides than anyone ever imagined 40 years ago," said Justin Rattner. "There is speculation that we may be approaching an inflection point where the rate of technology advancements is accelerating at an exponential rate, and machines could even overtake humans in their ability to reason, in the not so distant future." Rattner said that Intel's research labs already are looking at human-machine interfaces and examining future implications to computing. On the not-too-distant horizon are technologies that could wirelessly recharge a laptop battery and change the physical shape of a computing device to suit the specific needs of its user, as well as autonomous robots capable of recognizing faces and interpreting and executing commands.
http://www.intel.com/pressroom/archive/releases/20080821comp.htm

California Again Leads Nation with Most Firms on Inc. 500 List

Redwood City, Calif. -- Agistix, a Redwood City-based developer of web-based software designed to help companies manage logistics, is the highest-ranked local company on the newly released 2008 Inc. 500 list of the fastest growing companies in America. The five-year-old company, which has just 35 employees, saw three-year revenue growth of 5,215%, ranking it 22nd on the list overall, as well as No. 2 among software companies. Once again, California tops the list with the most companies of any state, 78, down three from last year. Other local tech firms high on the list include Palo Alto-based SolutionSet (No. 23, 5,169% growth) and Los Gatos-based StrataLight Communications (No. 24, 5,126%). The complete list, available at the link below, will be published in the September issue of Inc.
http://www.inc.com/inc5000/2008/the-full-list.html

Yahoo, Intel Partner on TV Widget Platform

Sunnyvale, Calif. -- Bay Area tech giants Yahoo and Intel have announced a partnership to jointly develop web widgets designed to bring interactive features to TV viewing. Under the deal, Santa Clara-based Intel will market a new computer chip to makers of televisions and set-top boxes. The chip will enable users to access widgets from Sunnyvale-based Yahoo that provide access to email, news, weather and sports scores. The companies will create a Widget Channel, accessible directly through TVs and set-tops, where users will be able to select and activate the widgets. Partners that have signed on to so far include Blockbuster, CBS, Disney-ABC, eBay, GE, Joost, MTV, Samsung, Toshiba and Twitter.
http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=328918

Hillcrest Labs Sues Nintendo Over Wii Controller

Rockville, Md. -- Hillcrest Labs, a Maryland-based developer of motion-sensing technology, said that it has filed suit against video game giant Nintendo, claiming that the controller for the company's mega-popular Wii system infringes on three of its patents. The complaint, filed in the U.S. District Court for Maryland, seeks an unspecified amount of monetary damages. Hillcrest also has filed a separate complaint with the U.S. International Trade Commission (ITC). Hillcrest said that it has licensed its technology -- which allows users to interact with digital media on television using motion-control and pointing techniques -- with several consumer electronics companies, but that Nintendo is not among them. "While Hillcrest Labs has a great deal of respect for Nintendo and the Wii, Hillcrest Labs believes that Nintendo is in clear violation of its patents and has taken this action to protect its intellectual property rights," the company said in a statement.
http://www.hillcrestlabs.com 
http://biz.yahoo.com/prnews/080820/aqw072.html?.v=64

Momentum Building for Aug. 27 "Power IT Down Day"

Two of the Bay Area's largest technology companies, Palo Alto-based HP and Santa Clara-based Intel, are teaming with Citrix Systems as part of an effort to have government workers reduce unnecessary power usage. The initiative, called "Power IT Down Day," aims to have employees power down their computers, monitors and printers as they leave work on Wednesday, Aug. 27, instead of allowing them to sit idle. So far, individuals from more than 100 unique federal, state and local government agencies have signed on. "The savings from avoiding unnecessary power to idle monitors, processors and peripherals is compelling," said Tom Simmons, area vice president of Citrix Federal. The companies estimate that if PC users were to incorporate power management techniques, such as turning off their computers for the evening, energy cost savings could reach more than $80 billion.
http://www.citrix.com/PowerITDown
http://www.citrix.com/English/NE/news/news.asp?newsID=1680247

FTC Approves Potential Merger of Electronic Arts, Take-Two

Redwood City, Calif. -- Two days after Redwood City-based Electronic Arts allowed its $2 billion takeover bid for rival game publisher Take-Two Interactive to expire, the Federal Trade Commission (FTC) on Wednesday indicated that it would not challenge a combination of the two companies, Reuters reported. "Upon further review of this matter, it now appears that no additional action by the commission is warranted at this time. Accordingly, the investigation has been closed," reads a note on the FTC's web site. Separately, each company received a letter from the FTC, indicating that an investigation into their possible merger had been performed and completed. EA initially made its $25.74-a-share offer for Take-Two, the publisher of "Grand Theft Auto," in February. Though that offer has expired, the two companies have indicated that they will continue talks about a possible deal.
http://biz.yahoo.com/e/080820/erts8-k.html
http://news.yahoo.com/s/nm/20080820/tc_nm/taketwo_ea_dc_3 

Cupertino-Based Apple Confirms iPhone Update Seeks to Improve 3G

Cupertino, Calif. -- After weeks of relative silence on the matter, Cupertino-based Apple has for the first time confirmed the existence of issues with reception on its new iPhone 3G, telling the Associated Press that its new 2.0.2 software update for the device "improved communication with 3G networks." Apple spokeswoman Jennifer Bowcock would not tell AP whether any problem was related to the antenna, amplifier, radio frequency receiver, baseband or other component. The company also did not specify what sort of improvements iPhone 3G users might expect after installing the update. CNET, which has been soliciting iPhone 3G users' comments on the matter, said that after updating their phones, some users did notice dramatically improved reception. Others, however, indicated that they are still having problems holding a 3G connection in places AT&T claims to provide excellent coverage.
http://ap.google.com/article/ALeqM5hja6TyixqXMRLs2FLfEI_kAQ0ZZwD92LLK080 http://news.cnet.com/8301-13579_3-10021065-37.html

Voxeo Acquires San Jose-Based Micromethod Technologies

San Jose, Calif. -- Voxeo, a Florida-based developer of interactive voice recognition and Internet phone platforms, said that has acquired Micromethod Technologies, a developer of communication and collaboration software with dual headquarters in San Jose and China. Financial terms of the deal were not disclosed. Voxeo said that the acquisition not only will bolster its portfolio of  products and services, but also serve as the foundation for its expansion into the Asia Pacific region. Micromethod's customers include large voice platform and online collaboration service providers, such as Tellme and GMarket, as well as video and wireless communication vendors.
http://www.voxeo.com
http://www.micromethod.com
http://www.voxeo.com/about/press_reader.jsp?date=081908_micromethod.jsp

Chip Equipment Orders Fall to Lowest Level Since 2003

San Jose, Calif. -- North America-based manufacturers of semiconductor equipment posted $905 million in orders during July, down 3% from the previous month and 36% from the previous year, according to new figures from San Jose-based industry association SEMI. They also recorded a book-to-bill ratio of 0.83, meaning that just $83 worth of new orders were received for every $100 of product billed for the month. "Orders for semiconductor equipment continue reflect the pronounced cutback in capital expenditures this year and are at the lowest levels since November of 2003," said Daniel Tracy, the senior director of industry research and statistics at SEMI. "Factory utilization levels, unit demand growth and planned fab projects suggest that new investment activity will resume in 2009."
http://wps2a.semi.org/wps/portal/_pagr/103/_pa.103/248?dFormat=application/msword&docName=P044439

Swimmer Michael Phelps Surpasses 1 Million Facebook Fans

Palo Alto, Calif. -- Fresh off his record-breaking performance at the Beijing Olympics, U.S. swimmer Michael Phelps also continues to make giant waves online. As of Tuesday morning, the 23-year-old's Facebook fan page had just over 1 million members. As the Baltimore Sun pointed out, that's second only to presidential candidate Barack Obama, who had 1.35 million Facebook fans. "So many comments poured in [Monday], part of his fan profile site temporarily crashed," The Sun reported, citing officials from Palo Alto-based Facebook. By comparison, Phelps -- who on Sunday broke Mark Spitz's Olympic record with eight gold medals in a single games -- had more fans than the two most popular bands on Facebook, Coldplay and Linkin Park, combined. 
http://www.facebook.com/michaelphelps?ref=pdb
http://www.baltimoresun.com/entertainment/custom/today/bal-te.to.facebook19aug19,0,5946897.story

S.F.-Based Slide to Base East Coast Internet Operations in Virginia

San Francisco -- Slide, a San Francisco-based developer of online photo slideshow widgets that claims more than 150 million users through social networks like Facebook and MySpace, has expanded its Internet operations to the East Coast through a major data center in Northern Virginia. The facility, operated by Foster City-based Equinix, also houses several of Slide's partners, allowing the companies to directly connect to one another, eliminating network bottlenecks and reducing transit costs. Ken Brownfield, Slide's director of operations, called Equinix's DC5 center "one of the most well connected data centers on the East Coast." Founded in 2005 by PayPal co-founder Max Levchin, Slide offers web-based tools that let users create photo and video slideshows from their photo collections, then embed them on web pages and social networks. The company in January raised $50 million in a new financing round that valued it at more than $500 million.
http://www.slide.com/
http://biz.yahoo.com/bw/080818/20080818005146.html?.v=1

SEC to Soon Require Companies to File Interactive Reports

Washington, DC -- The Securities and Exchange Commission (SEC) will soon require all publicly held corporations and mutual funds to file their financial reports using a new interactive online system, The Washington Post reported. The first filings, using a technology called XBRL (extensible business reporting language) will begin in December, and coincide with the SEC's plan to replace its document-based system, known as EDGAR, with a web-based platform known as IDEA (Interactive Data Electronic Applications). All firms will be required to file using the technology within two years. While EDGAR lists data only in blocks of text, the XBRL system, being developed by a nonprofit consortium, will allow users to more easily find data and download it into spreadsheets, The Post said.
http://www.washingtonpost.com/wp-dyn/content/article/2008/08/18/AR2008081802110.html?nav=rss_business

EA Lets Offer to Buy Take-Two Expire; Companies Remain in Talks

Redwood City, Calif. -- Electronic Arts (EA), the Redwood City-based developer and publisher of video games, said on Monday that it will let its tender offer for New York-based rival Take-Two Interactive expire at midnight. EA initially made its $2 billion bid for Take-Two, the publisher of "Grand Theft Auto," in February, and has since extended the expiration date on that $25.74-a-share offer several times. "Given the passage of time, we have to validate the assumptions used in the model to support our offer price of $25.74 per share in cash. In addition, we no longer believe we can integrate Take-Two ahead of the important holiday season," John Riccitiello, the CEO of EA, wrote in an open letter to Take-Two Chairman Strauss Zelnick. The two companies, however, remain in negotiations. Take-Two previously had said EA's offer undervalued the company, and aimed to take advantage of the impending release of its "Grand Theft Auto IV." "We have been willing to have EA participate in this process following the successful launch of GTA IV, and we are happy to include EA now," Zelnick wrote in response to Riccitiello's letter.
http://www.businesswire.com/news/home/20080818005383/en 
http://www.businesswire.com/news/home/20080818005662/en
http://www.ea.com

Oakland-Based Pandora Mulls Shutdown After Royalty Rate Hike

Oakland, Calif. -- Pandora, an Oakland-based streaming Internet radio service that claims about 1 million daily users, said that it may be forced to shut down following the recent doubling of royalty payments that it must pay copyright holders, The Washington Post reported. "We're approaching a pull-the-plug kind of decision," company co-founder Tim Westergren told the paper. "This is like a last stand for webcasting... We're losing money as it is. The moment we think this problem in Washington is not going to get solved, we have to pull the plug because all we're doing is wasting money." On the policy side, Rep. Howard Berman (D-Calif.) is attempting to broker a deal between webcasters and SoundExchange, the entity created by the labels to collect digital royalties, to lower the fees. But, as Berman told The Post, "Most of the rate issues have not been resolved." Pandora is expected to shell out 70% of its projected revenue of $25 million this year on fees it must pay each time someone listens to a song on its service.
http://www.washingtonpost.com/wp-dyn/content/article/2008/08/15/AR2008081503367.html
http://www.pandora.com

Former Viacom and Nextel Execs to Join Yahoo Board

Sunnyvale, Calif. -- Yahoo will add Frank Biondi Jr., the former CEO of Viacom, and John Chapple, the former CEO of Nextel Partners, to its board of directors, choosing the pair from a list of nine possible new members submitted by billionaire investor Carl Icahn. The moves are part of an agreement that Sunnyvale-based Yahoo made with Icahn -- who owns a 5% stake in the company -- to ward off a potential proxy fight. To make room, Robert Kotick, the CEO of video game maker Activision Blizzard has stepped down from the board after five years. Icahn's list of possible board members also included Mark Cuban, who sold Broadcast.com to Yahoo in 1999; venture capitalist Adam Dell; Harvard Law professor Lucian Bebchuk; and Robert Shaye, the co-CEO of New Line Cinema, according to the Associated Press.
http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=328217   
http://news.yahoo.com/s/ap/20080814/ap_on_hi_te/yahoo_board_12 
http://www.yahoo.com/ 

Mountain View-Based Google Continues Web Dominance in July

Mountain View, Calif. -- Google drew more than 141 million unique visitors to its sites in July, beating out rivals Yahoo and Microsoft as the most visited web property for the month, according to new figures from comScore Media Metrix. AOL landed in fourth place while Fox Interactive Media, owner of MySpace, was fifth. While Facebook is the fastest growing social-networking site, overall it landed at No. 16 with 39 million visitors. "Ground travel and cruise sites gained once again, as many Americans sought more budget-friendly ways to enjoy their summer vacations amid economic and fuel price concerns. Summer blockbusters and big celebrity news also provided a boost to the entertainment categories," said Jack Flanagan, executive vice president of comScore Media Metrix.
http://www.comscore.com/press/release.asp?press=2399
http://www.google.com

Best Buy to Become First Outside Retailer to Carry Apple's iPhone

Cupertino, Calif. -- Consumer electronics retailer Best Buy said that it will become the first U.S. chain to sell Cupertino-based Apple's iPhone 3G, which until now has been sold only at Apple and AT&T company stores, as well as online. The eight- and 16-gigabyte models of the devices will go on sale at nearly 1,000 locations beginning Sept. 7, selling for $199 and $299, respectively. Best Buy has been attempting to boost its share of the wireless market in recent months, upgrading the cell phone departments in its stores. "We had a lot of work to do, obviously, to get in a position where Apple and AT&T would feel good about Best Buy Mobile carrying it, and that's what we've done in the last 18 months," Shawn Score, the president of Best Buy Mobile, told the Associated Press.
http://www.bestbuy.com/site/olspage.jsp?id=pcmcat159300050006&type=category
http://biz.yahoo.com/ap/080812/tec_best_buy_iphone.html?.v=2

San Francisco-Based PlanetOut Faces Delisting from Nasdaq

San Francisco - PlanetOut, the San Francisco-based media and entertainment firm focused on the gay and lesbian market, said that it has received a delistment warning from the Nasdaq, stating that the company has failed to maintain the market's minimum market value of $5 million for the past 30 days. The struggling company now has until Oct. 30 to regain compliance or its shares will be delisted from the exchange. PlanetOut, which owns web sites including Gay.com and PlanetOut.com, said last month that its accumulated deficit had grown to nearly $100 million.The company sold off its RSVP cruise ship line for an undisclosed sum last year, and in April sold off its OUT and Advocate magazines to here Networks for $6 million.
http://www.planetoutinc.com 
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/08-11-2008/0004865674&EDATE=

San Francisco-Based CNET, CEA Launch Consumer Technology Indexes

San Francisco -- The Consumer Electronics Association (CEA) said that it has teamed with San Francisco-based technology media firm CNET to launch new indexes measuring consumers' confidence about the economy and expectations about consumer electronics and technology. The organizations said that their CEA-CNET Index of Consumer Expectations (ICE) and Index of Consumer Technology Expectations (ICTE) will be updated on a monthly basis through consumer surveys. "For the first time, we have a tool that allows economists and business leaders to track a sector that is expected to exceed $173 billion in U.S. factory sales this year," said Claudia Haase, the director of research at CNET.
http://www.ce.org/Press/CurrentNews/press_release_detail.asp?id=11552
http://www.ce.org/Research/ceacnetindexes.asp

Fans Flock to Internet to Discuss Olympic Swimmer Michael Phelps

New York -- As U.S. swimmer Michael Phelps continues to rack up gold medals at the Summer Olympics in Beijing, fans increasingly have taken to the Internet to discuss his accomplishments on blogs and message boards. According to an analysis of online discussion from Nielsen Online, Phelps was the most "buzzed-about" athlete competing in the Olympics between Aug. 4-10, topping basketball players Yao Ming, Kobe Bryant and LeBron James. Phelps, who currently has five gold medals, is attempting to break Mark Spitz' Olympic record of seven. Another Baltimore-area swimmer, Katie Hoff, ranked ninth. Overall, the subject of Olympic swimming captured a greater percentage of the online discussion (46%) than basketball (38%), with gymnastics lagging well behind. "It appears that swimming is benefiting from a number of interesting stories this year, including Michael Phelps' race for gold, Dara Torres' return to the games and Park Tae-Hwan's win to bring home South Korea's first-ever gold medal in swimming,” said Jon Gibs, the vice president of media analytics at Nielsen Online.
http://biz.yahoo.com/iw/080812/0424486.html
http://www.michaelphelps.com/

Madden Day: EA Releases 20th Anniversary Edition of Madden NFL

Redwood City, Calif. -- In what's become one of the most anticipated days of the year for U.S. gamers, Redwood City-based Electronic Arts (EA) on Tuesday released Madden NFL 09, the 20th anniversary edition of a sports franchise that has sold more than 70 million units since its inception. This year's version features 85 new features and enhancements, including one designed to continuously assess a player's skills and correspondingly adjust the difficulty of the game. The game also introduces a new broadcast presentation package featuring Cris Collinsworth and Tom Hammond, as well as online leagues. One thing that couldn't be updated in time was the game's cover, which features newly anointed New York Jets quarterback Brett Farve, wearing the uniform of his former team, the Green Bay Packers. EA said that an updated cover shot and roster update are available on its web site. The game, developed by EA's Orlando-based Tiburon studio, is available for all major consoles, as well as the Nintendo DS and PSP handhelds.
http://www.madden09.com
http://biz.yahoo.com/bw/080812/20080812005790.html?.v=1

Return Path to Acquire Mountain View-Based Habeas

Mountain View, Calif. -- Return Path, a New York-based provider of tools and services designed to help clients ensure the deliverability of their email, said on Tuesday that it will acquire Mountain View-based counterpart Habeas for an undisclosed sum. The deal, expected to close Aug. 18, combines two of the industry's largest third-party email whitelists, with more than 1,500 clients globally. Return Path said that it plans to maintain its Sender Score Certified whitelist and the Habeas SafeList as separate programs. "Now we can combine our complementary approaches to ensure trusted email delivery regardless of fraud, spam and virus challenges," said Matt Blumberg, the chairman and CEO of Return Path. Return Path will retain Habeas' office in Mountain View, Calif., as well as most of its staff.
http://www.returnpath.net
http://www.habeas.com/
http://biz.yahoo.com/bw/080812/20080812005331.html?.v=1

Google: $1 Billion AOL Investment "May Be Impaired"

Mountain View, Calif. -- Nearly three years after first buying a 5% stake in AOL, Mountain View-based Google disclosed that its $1 billion investment in the Time Warner unit "may be impaired," adding that it potentially could have to take a charge on its books to account for the company's declining value. "There can be no assurance that impairment charges will not be required in the future, and any such amounts may be material," Google said in an SEC filing. Google initially bought its stake in AOL in late 2005, a move believed to have been motivated by its desire to retain a search advertising partnership with the company, while simultaneously blocking a deal with rival Microsoft. Last week, however, Time Warner said that it would split AOL's dial-up Internet business from its online products and services, a move that eventually could lead to the sale of part or all of the company. Analysts cited by the Associated Press estimated that Google could lose as much as $500 million if AOL is spun off.
http://www.sec.gov/Archives/edgar/data/1288776/000119312508170309/d10q.htm http://news.yahoo.com/s/nm/20080808/tc_nm/google_aol_dc_6 

S.F.-Based Blinkx Bids $41 Million for Ad Network MIVA

San Francisco -- Blinkx, the San Francisco-based operator of a web video search index, said that it has made a $41 million bid to acquire Florida-based MIVA, the operator of a pay-per-click ad network as well as a network of consumer destination sites and interest-specific toolbars. Blinkx has worked with MIVA as a customer for a number of years. Suranga Chandratillake, the founder and CEO of Blinkx, said that his company's "positioning in the area of performance-based advertising" has encouraged us to "consider opportunities to accelerate our growth." Blinkx said that both companies could benefit from the combination of its technology and MIVA's distribution network.
http://www.blinkx.com/article/blinkx-proposes-acquisition-miva-120-per-share-cash~813
http://www.miva.com

Palo Alto-Based HP to Acquire Colubris Networks

Palo Alto, Calif. -- Looking to expand its wireless technology offerings, Palo Alto-based Hewlett-Packard (HP) said on Monday that it will acquire Massachusetts-based Colubris Networks, a maker of intelligent wireless networking products for large clients and service providers. Financial terms of the deal, expected to close by the end of October, were not disclosed. HP said that it will integrate Colubris' product line into its ProCurve Networking product portfolio, expanding ProCurve's reach into markets such as hospitality, transportation, healthcare and education. Marius Haas, the senior vice president and general manager of HP ProCurve, said that the acquisition will strengthen the hardware, management platform and services offered by the division, "significantly improving the overall performance capabilities of both wired and wireless networks."
http://www.hp.com/hpinfo/newsroom/press/2008/080811b.html
http://www.colubris.com/

Google Sells Performics Search Marketing Unit to Publicis Groupe

Mountain View, Calif. -- Mountain View-based Google said that it will sell its Performics search marketing business to France's Publicis Groupe. Financial terms of the deal, expected to close in the third quarter, were not disclosed. Launched in 1998, Chicago-based Performics offers a range of services designed to help improve the performance of advertisers' investments and maximize campaign effectiveness. Publicis said that the deal will strengthen its VivaKi unit, launched last June, which includes performance marketing assets Phonevalley, Webformance, Click2Sales and iBase. "We believe Performics' growing business will benefit from being part of [Publicis]," said Eric Schmidt, Google's chairman and CEO. "We look forward to working with Performics as a partner." 
http://www.google.com/intl/en/press/pressrel/20080806_performics.html  http://www.publicisgroupe.com 
http://www.performics.com 

San Mateo-Based Wize Launches Product Recommendation Site

San Mateo, Calif. -- San Mateo-based Wize has announced the beta launch of its new search platform for consumer products. The site asks users to enter the product they are looking for and how they plan to use it, then uses semantic technology to produce a personalized list of the most relevant products. The company said that the list is based on the needs of individual consumers, rather than technical product features. "As consumers, we think in terms of `I want a new digital camera for my vacation,' but a retail database doesn’t think in terms of uses or needs. It only knows how to generate facts like product specs and pricing," said Tom Patterson, the company's president and CEO. "Wize solves that disconnect problem and gives relevant product recommendations to consumers based on human thinking." Wize is backed by the Mayfield Fund and Bessemer Venture Partners.
http://wize.com/
http://biz.yahoo.com/bw/080731/20080731006088.html?.v=1

S.F.-Based YouNoodle Launches "Startup Predictor" Tool

San Francisco -- YouNoodle, the San Francisco-based developer of an online platform for the entrepreneurial community, said on Thursday that it has launched its new "Startup Predictor" tool, which the company said analyzes data on early-stage startups and generates a scientific prediction of their future outcomes. The first version of the tool is now available as a free, web-based service. It allows users to enter information -- such as  details about key employees or advisors, relationships between team members, products, patentable technology and capital invested by the founders -- through an online test. The tool then generates an estimate of the company's valuation in three years, as well as a "YouNoodle Score" -- a number similar to a credit rating, based on a 1,000-point scale, that gauges the "feasibility and promise" of the company's future. YouNoodle then matches users with other members that could be of value, such as potential employees, advisors and business partners.
http://www.younoodle.com
http://younoodle.com/static/press/Startup_Predictor_Launch_August_7_2008

Tessera Names Hank Nothhaft to Replace Bruce McWilliams as CEO

San Jose, Calif. -- Tessera Technologies, a San Jose-based provider of miniaturization technologies for the electronics industry, said on Wednesday that Bruce McWilliams will step down from his roles as president and CEO. He will be replaced by Hank Nothhaft, current vice chairman of the board. McWilliams, who has held the roles of president and CEO since 1999, will remain chairman, and also become the company's chief strategy officer. "This transition of roles… comes as the company recognizes the need for operational excellence coupled with a stronger focus on long-term strategy, to further develop and grow these businesses at a rapid rate," the company said in a statement. Nothhaft previously served as the chairman and CEO of Danger Inc., a wireless software and services firm acquired by Microsoft in early 2008 for $500 million. He also was the  chairman, president and CEO of Concentric Network.
http://www.tessera.com
http://www.tessera.com/news/press_releases/?releaseId=1184138

Friendster Raises $20 Million, Names Former Google Exec as CEO

San Francisco -- Friendster, the San Francisco-based online social network, said that it has raised $20 million in a new round of funding, led by IDG Ventures, and named former Google executive Richard Kimber as its new CEO. Previous backers Kleiner Perkins Caufield & Byers, Benchmark Capital, DAG Ventures and Founders Fund also participated in the round, which will be used to further expand the company's presence in the Asia Pacific region -- where 55 million of Friendster's 75 million registered members reside. The company's new CEO was previously the regional managing director of South Asia at Google. Former Friendster CEO Kent Lindstrom, who served in the position for the past 2 1/2 years, will remain with the company during the transition and continue focusing on key operations of the business.
http://www.prnewswire.co.uk/cgi/news/release?id=234097 
http://www.friendster.com 

Report: iTunes Top U.S. Music Retailer in First Half of '08

Cupertino, Calif. -- Apple's iTunes Store retained its position as the op U.S. music retailer during the first half of 2008, followed by Wal-Mart, Best Buy, Amazon and Target, according to a new report from market research firm NPD Group. Cupertino-based Apple overtook Amazon for third place in the first quarter of 2007, then hurdled Best Buy and Target in February of this year before toppling Wal-Mart to take the lead in April. "We expect Apple will consolidate its lead in the retail music market, as CD sales continue to slow," said NPD Group entertainment analyst Russ Crupnick.
http://www.businesswire.com/news/home/20080805005606/en
http://www.npd.com 

S.F.-Based LookSmart Names Stephen Markowski as New CFO

San Francisco -- LookSmart, the San Francisco-based developer of online search advertising services and technology, on Tuesday named Stephen Markowski as its CFO, effective Aug. 20. Markowski has more than 25 years of senior corporate finance, accounting and tax experience in the technology industry, most recently as the vice president of finance and chief accounting officer at Symantec. He replaces Brian Gibson, who has served as acting CFO the past eight months.
http://www.looksmart.com
http://biz.yahoo.com/bw/080805/20080805006542.html?.v=1

S.F.-Based MoneyBackJobs Launches Incentive-Laden Career Site

San Francisco -- MoneyBackJobs, a San Francisco-based startup founded earlier this year by Mark Thomas, said on Tuesday that it has launched its new career site, which promises to pay users up to 7.5% of their starting salary for landing a new job. The site, MoneyBackJobs.com, gives all users 5% of their starting salary for accepting a job through the site, then offers other promotions that can further boost the percentage. It also offers similar incentives for employers who keep their listings exclusive to the site. "The challenge with creating a new job board is to do more than simply add new jobs or attract new candidates," said Thomas, "The vision with MoneyBackJobs.com is to fundamentally improve the connection between job seekers and employers in the hiring process by incentivizing both parties to make a greater commitment to be involved." Thomas previously founded San Francisco-based executive staffing agency Thomas Executive Resources in 2005.
http://www.MoneyBackJobs.com
http://www.businesswire.com/news/home/20080805005408/en

San Jose-Based Cypress Semiconductor to Acquire Simtek

San Jose, Calif. -- Cypress Semiconductor, a San Jose-based maker of programmable chips, said that it will pay $46 million in cash to acquire Colorado-based Simtek, a large supplier of random access memory (RAM) chips. The deal, structured as a cash tender offer, is expected to close by the fourth quarter. Cypress already owns a 4% stake in the company, and has been marketing and licensing its technology since early 2006. Cypress said that Simtek's chips provide the high-speed memory access of standard static RAM chips, but retain data when power is turned off. "We are looking to integrate this technology into many of our products," said Ahmad Chatila, the executive vice president of Cypress's Memory and Imaging Division.
http://www.cypress.com
http://www.simtek.com
http://biz.yahoo.com/bw/080801/20080801005817.html?.v=1

Redwood City-Based Amphire Solutions to Acquire barbox

Redwood City, Calif. -- Amphire Solutions, a Redwood City-based developer of web-based software for the foodservice and hospitality industries, said on Monday that it will acquire barbox. a U.K.-based online ordering service for the licensed beer, wines and spirits trade. Financial terms of the deal were not disclosed. Amphire said that the addition of barbox, a joint venture between Coors Brewers and Scottish & Newcastle, will give it an additional platform to expand its business into another large sector of the global foodservice market. barbox is the developer of free trade web site, barbox.com, which has nearly 15,000 registered outlets and takes up to $16 million in orders a week.
http://www.amphire.com
http://biz.yahoo.com/bw/080804/20080804005388.html?.v=1

Time Warner to Block Jon Miller's Appointment to Yahoo Board

Sunnyvale, Calif. -- Time Warner plans to block the possible appointment of Jon Miller, the former chairman of AOL, to Sunnyvale-based Yahoo's board of directors, TechCrunch reported. Citing unnamed sources, the web site reported that Miller would require Time Warner's approval to serve on the board, since he remains under a non-compete agreement with AOL. Yahoo must select its new board members by Aug. 15. The news comes as a blow to Yahoo executives, including CEO Jerry Yang, who are attempting to install several qualified outsiders to the board as part of an agreement with activist investor Carl Icahn. Reports have circulated of late that Time Warner is in discussions to possibly sell AOL to Yahoo.
http://www.techcrunch.com/2008/08/01/time-warner-nixes-jonathan-millers-appointment-to-yahoo-board-pokes-potential-aol-buyer-in-the-eye/

World Semiconductor Sales Grow 5.4% in First Half of '08

San Jose, Calif. -- Global sales of semiconductors grew 5.4% to $127.5 billion in the first half of 2008, according to figures released on Monday by the San Jose-based Semiconductor Industry Association (SIA). June sales of $21.6 billion were up by 8% from a year ago, and half a percent from May. "Thus far increased energy costs have had little impact on demand for electronic products that drive semiconductor demand," said the SIA. The group said that personal computers and mobile phones continued to show double-digit unit growth during the period.
http://www.sia-online.org/pre_release.cfm?ID=492

San Jose-Based Veraz Networks Cuts 160 Jobs

San Jose, Calif. -- Looking to return to profitability, San Jose-based Veraz Networks, a developer of application, control and bandwidth optimization products, said on Thursday that it has cut 160 jobs, or about 35% of its workforce. The company, which said that the move will "significantly" lower its break-even point, will be left with about 300 employees. "While these workforce reductions are difficult for all involved, today's actions are necessary in light of the challenging business environment," said Doug Sabella, the president and CEO of Veraz. "We believe that these restructuring initiatives will allow us to return to profitability while taking advantage of growth opportunities." The company will take a restructuring charge of $1.2-$1.5 million as a result of the cuts. Veraz is expected to report its quarterly results on Aug. 6. Earlier this month, the company said that it expects to record revenue of $15-$17 million, about half as much as a year ago.
http://www.veraznetworks.com
http://biz.yahoo.com/bw/080731/20080731006399.html?.v=1

WSJ: Google Planning to Launch Venture Capital Arm

Mountain View, Calif. -- Following the lead of other technology firms such as Intel and Motorola, Mountain View-based Google is planning to launch a new venture capital arm, The Wall Street Journal reported on Thursday. Citing several people knowledgeable about the situation, the paper said that the company has hired former entrepreneur William Maris to help set up the venture, which will be led by David Drummond, Google's senior vice president of corporate development and chief legal officer. Details, such as the kind of investments the group will make, remain unclear. The company last year unveiled plans to invest several hundred million dollars in renewable energy projects through its philanthropic arm.
http://online.wsj.com/article/SB121747323523899779.html?mod=2_1571_topbox&apl=y&r=87682 (subscription required)
http://biz.yahoo.com/rb/080731/google_vc.html?.v=2
http://www.google.com

Facebook to Use Intel Chips to Beef Up Datacenter Infrastructure

Santa Clara, Calif. -- Intel, the Santa Clara-based chipmaker said on Thursday that it has signed a deal with Palo Alto-based Facebook to help optimize the social network's hardware and software as the company builds out its datacenter infrastructure. Facebook said that it plans to deploy thousands of Intel Xeon processor-based servers over the next year to help it meet the processing needs of its increasingly rich media applications that span videos, music and photos. Facebook said that it has been testing a number of different server platforms and scenarios over the past several months. The company, which counts more than 90 million members, now has begun deploying the new Intel chips.
http://www.intel.com/pressroom/archive/releases/20080731comp.htm
http://www.facebook.com

San Jose-Based RFI Cracks List of Top 100 Security Systems Integrators

San Jose, Calif. -- San Jose-based RFI Communications and Security Systems is the top-ranked state firm on Security Distributing & Marketing (SDM) Magazine's newly released annual ranking of the nation’s top 100 security systems integrators, based on 2007 revenue. RFI came in at No. 18 with revenue of $40.6 million. Launched in 1979, the firm has 221 full-time employees and handled more than 1,500 new projects last year. The report ranks the nation's largest firms that contract electronic security projects, such as access control, video surveillance, alarms, perimeter security and other network-based technologies. The complete list, which includes a half dozen other state companies, is available at the links below.
http://www.sdmmag.com/SDM/Home/Files/PDFs/Integrators.pdf (PDF)
http://www.sdmmag.com/Articles/Cover_Story/BNP_GUID_9-5-2006_A_10000000000000375514

WSJ: Earthlink May Pursue Bid for AOL's Dial-Up Business

New York -- The CEO of Earthlink told The Wall Street Journal on Wednesday that his company is contemplating a possible bid for the dial-up Internet business of AOL. "We think it's worth aggressively pursuing," Rolla Huff told The Journal, adding that such a bid would depend on the outcome of recent talks between AOL parent Time Warner and potential suitors Microsoft and Sunnyvale-based Yahoo. "There's a lot of things in play here that are moving around." Both dial-up businesses have experienced sharp losses in subscribers in recent years, with the emergence of faster broadband services. During Earthlink's quarterly earnings conference call on Tuesday, Huff said that his company is "best positioned to be the consolidator in this industry." Huff declined to reveal whether Earthlink currently is in talks with Time Warner. AOL has sharply deemphasized its dial-up business in recent months in favor of a more lucrative online advertising model.
http://online.wsj.com/article/SB121736759842294717.html?mod=yahoo_hs&ru=yahoo (subscription required)
http://www.marketwatch.com/news/story/earthlink-shares-fall-aol-bid/story.aspx?guid=%7BEE00CEF1%2DBB58%2D4433%2DB1AF%2D0C47B0E0653A%7D&siteid=yhoof
http://seekingalpha.com/article/87752-earthlink-inc-q2-2008-earnings-call-transcript?source=yahoo

"Scrabulous" Knock-off Game Removed from Facebook

Palo Alto, Calif. -- "Scrabulous," the popular Internet knock-off of Hasbro's official "Scrabble" game that recently was targeted with a copyright infringement lawsuit, has been removed from the U.S. and Canadian versions of Palo Alto-based online social network Facebook. "In response to a legal request from Hasbro, the copyright and trademark holder for Scrabble in the U.S. and Canada, the developers of Scrabulous have suspended their application in the U.S. and Canada until further notice," a Facebook representative told CNET News.com. Hasbro sued the makers of Scrabulous last week, shortly after its official online Scrabble game, developed by Redwood City-based Electronic Arts (EA)  became available on Facebook. The company also sent a cease-and-desist to Facebook, asking the company to remove the game from its sites. The knock-off game was counting over 500,000 daily active users on Facebook as of last week.
http://news.cnet.com/8301-13577_3-10001319-36.html
http://www.scrabulous.com

Local Companies Well Represented in 2008 CRN Fast Growth 100 List

San Francisco -- Bear Data Systems, a San Francisco-based provider of IT infrastructure services, leads several local companies on Everything Channel's newly released 2008 CRN Fast Growth 100 list. The list ranks U.S. companies that derive a majority of their revenue from IT services, based on their rate of revenue growth between 2005-2007. Bear Data Systems ranked No. 20 with growth of (190.5%). Other locals on the list include San Francisco-based FusionStorm (No. 29, 146.6%), Campbell-based Groupware Technology (No. 35, 125%), Santa Clara-based Infoyogi (No. 48, 99.7%) and Livermore-based AMS.Net, (No. 54, 94.1%). The complete list is available at the link below.
http://www.crn.com/crn/fastgrowth/fg_2008.jhtml

British Telecom Acquires Mountain View-Based Ribbit

Mountain View, Calif. -- British Telecommunications (BT), the U.K. telecommunications giant, said on Tuesday that it paid $105 million in cash to acquire Mountain View-based Ribbit, developer of an open platform that allows users to combine telephony and Internet technologies to create new voice applications and services. BT said that the acquisition will accelerate its strategy to transform into a platform-based, software-driven services company. "With Ribbit, not only do we extend our presence in the Valley, but we also gain a groundbreaking platform, a growing community of developers and a world-class team that share a common vision," said JP Rangaswami, the managing director of service design at BT. Using Ribbit's platform, developers are able to add voice and automation features to virtually any web-based application or community. Ribbit was founded in early 2006 and funded by venture capital firms Alsop Louie Partners, Allegis Capital, KPG Ventures and Peninsula Ventures.
http://www.ribbit.com
http://www.bt.com/aboutbt
http://biz.yahoo.com/iw/080729/0419882.html

HP, Intel and Yahoo Team on Cloud Computing Project

Three of the Bay Area's technology giants, Palo Alto-based HP, Santa Clara-based Intel and Sunnyvale-based Yahoo, said on Tuesday that they have partnered to create an open source test bed aimed at advancing cloud computing research and education. The companies said that the project will provide a large-scale testing environment designed to encourage research on the software, data center management and hardware issues associated with cloud computing. Other partners in the project include the Infocomm Development Authority of Singapore (IDA), the University of Illinois at Urbana-Champaign and the Karlsruhe Institute of Technology (KIT) in Germany. The test bed initially will consist of six "centers of excellence" -- each hosting a cloud computing infrastructure, largely based on HP's hardware and Intel's processors. The locations are expected to be fully operational and made accessible to researchers through a selection process later this year. "To realize the full potential of cloud computing, the technology industry must think about the cloud as a platform for creating new services and experiences," said Prith Banerjee, the senior vice president of research at HP and director of HP Labs. "This requires an entirely new approach to the way we design, deploy and manage cloud infrastructure and services."
http://biz.yahoo.com/bw/080729/20080729005585.html?.v=1
http://www.intel.com
http://www.yahoo.com
http://www.hp.com

Mountain View-Based Actel Acquires Pigeon Point Systems

Mountain View, Calif. -- Actel, a Mountain View-based developer of power-efficient chips, said on Tuesday that it has acquired Scotts Valley-based Pigeon Point Systems, a supplier of components for the management of telecommunications computing architecture. Financial terms of the deal were not disclosed. The acquisition, which builds on an existing partnership between the companies, gives Actel 140 customers, including several of the top communications equipment manufacturers. Actel said that the companies' combined portfolio of reference designs, development kits, development environments and design services gives designers the capability to address system and power management issues throughout the design process.Pigeon Point will become an Actel subsidiary, continuing to operate out of its current headquarters.
http://www.pigeonpoint.com
http://www.actel.com
http://biz.yahoo.com/prnews/080729/aqtu030.html?.v=63

Foster City-Based EFI Acquires Pace Systems Group

Foster City, Calif. -- Electronics For Imaging (EFI), a Foster City-based maker of color digital print servers and superwide format printers, said on Tuesday that it has paid $21 million in cash to acquire Pace Systems Group, a Florida-based developer of print management software. The value of the deal could rise if Pace achieves certain performance milestones. Pace, which has approximately 80 employees, makes software appliances used by printing, bindery and prepress trade service companies for estimating, scheduling, production, accounting and e-commerce. EFI said that it had been working on a browser-based, integrated system to serve the mid-sized commercial market, but "we decided the best solution for our clients was to acquire this proven platform and add to it some of our latest technology."
http://www.ir.efi.com/phoenix.zhtml?c=117454&p=irol-newsArticle&ID=1180652&highlight=
http://www.efi.com/

Mountain View-Based Quova Acquires Pleasanton's Verifia

Mountain View, Calif. -- Quova, a Mountain View-based provider of a service that allows online businesses to instantly identify where a visitor to their site is geographically located, said on Monday that it has acquired Verifia, a Pleasanton-based developer of geolocating software. Financial terms of the deal were not disclosed. Quova plans to integrate NetGeo's analysis and data collection technology into its current offerings. The company said that the move will enable additional data fields, such as cyber café locations and end-organization domain names. Quova said that its customers use this information to detect card-not-present fraud, comply with local regulations and localize online ads and content. Quova said that it has retained all of Verifia's employees. Verifia's customers include American Express, Boots and the British Columbia Lottery.
http://www.quova.com
http://biz.yahoo.com/iw/080728/0419351.html

Washingtonpost.com Adds Online Prediction Tool from Predictify

Redwood City, Calif. -- Washingtonpost.com, the web site of The Washington Post, said that it has added a new feature allowing site visitors to debate and predict future news events related to politics, sports, business and local issues. The site's newly launched Prediction Center, powered by Silicon Valley-based Predictify, scores and ranks the predictions based on accuracy. The tool then aggregates them into forecasts used on the site. Jim Brady, the executive editor of washingtonpost.com, said that the technology "provides our readers with a dynamic forum to interact with the news in a fun and competitive environment." Since its launch in October, Predictify also has partnered with The New York Times, the San Francisco Chronicle, Freakonomics, Mashable and ReadWriteWeb.
http://predictify.washingtonpost.com/
http://www.predictify.com
http://www.prweb.com/releases/predictify/washingtonpost/prweb1150454.htm