Yahoo! Finance: Microsoft eyes Yahoo retention plan: court papers

"Microsoft Corp (NasdaqGS:MSFT - News) has considered earmarking $1.5 billion to retain Yahoo Inc (NasdaqGS:YHOO - News) employees if it acquires the company, according to court documents in a shareholder suit filed against Yahoo."

"The $1.5 billion figure was discussed in a communication between the general counsels of Microsoft and Yahoo, and came to light when a lawyer representing Yahoo mentioned the amount in a March 24 hearing in a lawsuit in Delaware Chancery Court.

Edward Welch, the lawyer representing Yahoo, also said during the hearing that 1,000 layoffs Yahoo made in February were the only job cuts the company planned to make. "There are no more reductions in force planned for the future," he said.

Two Detroit pension funds have filed the shareholder action against Yahoo and its board of directors asserting that the Silicon Valley company has failed Yahoo shareholders by not responding in good faith to Microsoft's takeover offer."

blog.pmarca.com: If Microsoft goes fully hostile on Yahoo

"We have seen extensive press coverage of Microsoft's pursuit of Yahoo over the last few months, including notably excellent coverage from Silicon Alley Insider and the Wall Street Journal. However, I have not seen a detailed analysis of how a full hostile takeover might play out -- the kind of analysis that you would be receiving if you were a Microsoft or Yahoo board member.

So I asked a pair of expert corporate attorneys -- Michael Sullivan and Ed Deibert at Howard Rice Nemerovski Canady Falk and Rabkin in San Francisco -- to work up such an analysis. What follows is their take blended with my commentary. (Any factual errors have been caused by my edits to their work. This is complex stuff -- if you are a corporate attorney or investment banker and notice any errors, please email me: pmarcablog (at) gmail (dot) com.)"

NYTimes: Tudou.com Takes Millions

"Tudou.com, a Chinese online video sharing site, has raised $57 million in Series D funding.

Participants in the round include previous investors IDG, Granite Global Ventures and General Catalyst.

Previous funding rounds raised $500,000, $8.5 million, and $19 million, respectively. The new investment totals $85 million, the company said, adding that the money will be used to increase bandwidth and add servers."

Reuters: Kleiner hires EA's creative head

"Kleiner Perkins Caufield & Byers, the venture capital firm that backed Google Inc (GOOG.O: Quote, Profile, Research) and Amazon.com Inc (AMZN.O: Quote, Profile, Research), has hired Electronic Arts Inc (ERTS.O: Quote, Profile, Research) veteran William "Bing" Gordon as a partner, Kleiner said on Monday.

Gordon has served as chief creative officer at EA, the largest U.S. videogame publisher by sales, for the past 10 years. He oversaw the creation of some of EA's most successful game franchises, including Madden NFL and Need for Speed.

Gordon, who will join Kleiner in June 2008, will focus on the venture capital firm's investments in consumer technologies.

"His success with dynamic and engaging digital entertainment and consumer media is invaluable for innovators in mobility, social networks, gaming and entertainment," Kleiner partner John Doerr said in a statement."

Tech Trader Daily: MSFT Slides; Betting Is They Won't Walk From YHOO

"Microsoft (MSFT) shares are sagging today amid a news vacuum on the company’s pending $31 a share bid for Yahoo (YHOO). To me, the fact that the stock is losing ground suggests investors are betting on one of of two scenarios that would be bearish for the stock. Here’s a look at the possibilities:

* Option 1: Microsoft could raise its bid. That would be consistent with a lower stock price.
* Option 2: Microsoft could pursue a hostile acquisition. That would likely result in a protracted fight, considerable expense, the departure of some Yahoo execs that they might otherwise want to keep around, and various other complications. Even with the bid price at the current level, the process will shrink the perceived value of the deal, and raise the perceived cost. Ergo, not so good for MSFT shares.
* Option 3: Walk away. If MSFT abandons its bid, the stock would likely rally, while Yahoo shares would tumble.

In a research note this morning, Citigroup’s Mark Mahaney asserted that there is a 45% chance that they reach a deal at a higher price; a 40% chance MSFT goes hostile at the current offer of $31 a share in stock and cash; a 10% chance MSFT walks; and a 5% chance that they cut a deal at the current price.

MSFT today is down 73 cents, or 2.5%, at $29.10; YHOO is up 13 cents at $26.93."

Forbes.com: Apple Buys Chip Designer

"Late Tuesday, in response to questions from Forbes.com, an Apple spokesman said Apple has agreed to buy a boutique microprocessor design company called PA Semi. The company, which is known for its design of sophisticated, low-power chips, could spell a new future for Apple's flagship iPhone, and possibly iPod products as well.

The 150-person chip company, P.A. Semi, was founded in 2003 by Dan Dobberpuhl, who was a lead designer for the well-regarded Alpha and StrongARM microprocessors developed by Digital Equipment in the 1990s.

'Apple buys smaller technology companies from time to time, and we generally do not comment on our purposes and plans,' said Apple (nasdaq: AAPL - news - people ) spokesman Steve Dowling. He declined to comment on the value of the deal, which a person familiar with the deal suggested was done for $278 million in cash. Apple is due to announce its quarterly earnings Wednesday.
The decision to center the iPhone design around a chip that Apple could own marks a significant strategic choice by Apple Chief Executive Steve Jobs, and is aimed at ensuring Apple can continue to differentiate its flagship phone as a raft of competitors flood the market. According to a source affiliated with the chip company, Jobs and Senior Vice President Tony Fadell led the tiny group of executives who spearheaded the acquisition, which included negotiations that took place in Jobs' home."

paidContent.org: Sony Buys Media Metadata And Tech Firm Gracenote For $260 Million Plus

"So it has finally happened: Gracenote, the media metadata and tech firm which has been around since 1998, has been bought by Sony (NYSE: SNE) Corp of America, for about $260 million and more depending on earnout. The deal is expected to close in May.

Gracenote’s existing business will continue to operate separately, and will continue to develop new technologies in existing as well as new areas of operation, the companies said. The senior management team will remain with the company. The company’s tech and services are used in Apple (NSDQ: AAPL) iTunes, Winamp, Panasonic, Philips and Sony, and on the mobile music side by players such as from Samsung, Sony Ericsson (NSDQ: ERIC), and others.

Thus ends the era of any independents in the traditional music metadata space. AMG was bought by Macrovision (NSDQ: MVSN) late last year; Muze is owned by VC/PE firm Enterprise Partners Venture Capital.

Philips and Fraunhofer had equity position in Gracenote because of the technology that Gracenote either bought or licensed over the years. Other institutional investors over the years (over five rounds) included Sequoia Capital, Bessemer Venture Partners and others.

Updated: Some more background on this: Gracenote would probably bring in around $40 million in revenues this year (separate from its revenue bookings which could be much larger). Gracenote’s technology could easily be used across all of Sony’s divisions, though we know well, the synergy part within Sony is no always easy. Easy plugs-ins would be into Playstation group, Sony Ericsson (probably the most important part with mobile music and handsets, worldwide), and other multimedia devices out of Sony. "

WashingtonPost: eBay Finally Loses Cool: Sues Craigslist Over "Stake Dilution"

"eBay (NSDQ: EBAY) and Craigslist, never the happy brethren, have barely tolerated each other over the years since the former bought a stake in the online classifieds phenom in 2004. The two compete head on, after eBay started making a big push on classifieds with Kijiji.

Now, eBay has sued Craigslist, alleging the Craigslist board of directors had diluted eBay's 28.4 percent stake in the online classifieds site. The issues at stake:-- In 2004 eBay acquired a minority ownership interest in Craigslist of 28.4 percent, buying it from a former Craigslist executive who was seeking to sell his shares.-- According to the lawsuit, In January 2008, founder Craig Newmark and CEO Jim Buckmaster adopted measures that, among other things, "unfairly diluted eBay's economic interest in Craigslist by more than 10 percent," the company release says.-- eBay believes that Newmark and Buckmaster breached their fiduciary duties in violation of Delaware corporate law.-- The complaint is being filed under seal (meaning we can't access the lawsuit) because some of the "information about Craigslist contained in the complaint is governed by confidentiality restrictions".

Was Craigslist trying to raise a round that necessitated this dilution? Would be interesting to know? "

USATODAY.com: KP backs electric cars

Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers is joining with another clean-technology-focused venture capital firm and a Norwegian company to bring electric cars to the USA.
The joint venture's first product will be Think City, an emissions-free, 95% recyclable car with a maximum speed of 65 miles an hour.
Plans call for a U.S. launch in 2009. The cars will be priced below $25,000.
Kleiner Perkins is teaming with Boston-based RockPort Capital Partners and electric-carmaker Think Global to create a company called Think North America.
Now made in Norway, the Think City — about the size of a Toyota Yaris or Honda Fit — runs on sodium or lithium batteries and can travel up to 110 miles on one charge, making it viable for the average American, who commutes 30 miles a day."

Fortune: eSolar scores $130 million from Google, other investors

"PASADENA, Calif. — Solar power plant builder eSolar has raised $130 million from Google’s philanthropic arm, Google.org, and other investors.
That was the headline news that eSolar chairman and Idealab founder Bill Gross slipped to Green Wombat during dinner Sunday night as Fortune’s Brainstorm Green conference kicked off in Pasadena. The other investors include Idealab and Oak Investment Partners. Big numbers grab attention but the far more interesting angle is the technology that eSolar is developing. If it lives up to its claims, eSolar could help break the logjam that has put Big Solar on the slow track in California.
“We just completed tests at our test site this week and we will be able to produce electricity that is competitive with coal,” said an animated Gross Sunday evening.
That is the Holy Grail of renewable energy and the charge set out by Google founders Sergey Brin and Larry Page when they launched their green power initiative.

Venturebeat: Ning for $560M. bubble time

"Update: Marc Andreessen just emailed us. Here’s what he said:

The valuation was $500M pre-money, about $560M post-money.

The size of the round was the money we have raised minus a fee to Allen & Company. About $60M net.

We raised the money to enable us to keep scaling given our accelerating growth (over 230,000 networks on Ning now, growing at over 1,000 per day) and to make sure we have plenty of firepower to survive the oncoming nuclear winter. At current growth rates, we don’t need it to get to cash flow positive, but having lived through the last crunch, it’s good to be conservative with these things."

SFGate: Where in the world is Osama?

"In his new documentary, Morgan Spurlock sets out to succeed where the U.S. government has failed for seven years: finding the hiding place of Osama bin Laden.

Early in the movie, the filmmaker jokes that he was inspired by American action pictures, in which lone heroes solve the most enormous problems. So, with a camera crew, Spurlock travels to (mostly) Muslim countries, wanders the streets and villages, and asks people, "Do you know where Osama is hiding?" The result is called "Where in the World Is Osama bin Laden?"

The film is partly a gimmick - it envisions Spurlock's quest as something like a video game, complete with cartoon images of a hip-hopping Bin Laden. But it also has a profoundly serious side because the interviewees tell us a great deal about America's standing in the world after years of the so-called war on terror.

Spurlock decided to make the film when his wife became pregnant, and he tried to think of what he could do to ensure a safe future for his child. Putting an end to the world's biggest terrorist threat seemed like a good start. "

NYTimes: Tesla Sues a Competitor

"Tesla Motors, the Silicon Valley maker of electric sports cars, filed suit in San Mateo Superior Court on Monday against a competing company and two of its employees, saying they stole some of Tesla’s design ideas and trade secrets."

"The Tesla lawsuit contends that Mr. Fisker and his chief operating officer, Bernhard Koehler, doing business under the name Fisker Coachbuild, fraudulently agreed to take on Tesla’s $875,000 design contract to gain access to confidential design information and trade secrets, then announced a competing vehicle. Last fall Mr. Fisker founded Fisker Automotive, which is backed by the venture capital firm Kleiner Perkins Caufield & Byers."

Paid Content: Video Processor RGB Networks Raises $20 Million At $200 Million Valuation; Wants IPO In ‘09

"RGB Networks, a provider of video processing technology for MSOs, has raised $20 million led by Institutional Venture Partners, along with previous backers Accel Partners, Comcast (NSDQ: CMCSA) Interactive Capital, Kleiner Perkins Caufield & Byers and Focus Ventures. The raise values the Sunnyvale, CA-based company at $200 million, which, the company notes, is 82 percent higher than its previous $110 million valuation, when it raised $20 million in 2006 (the company makes a habit of giving this info out… last time it said its valuation was a 150 percent increase from the time before that). All told, it has raised over $52 million, having raised $12 million from Comcast in 2005. The company’s technology makes it easier for operators to manage bandwidth while delivering more customized, revenue-generating services to users. Release.

MultiChannel News reports that the company has sales of $31 million in 2007 and is targeting $50 million for 2008, which cwould work out to about 66 percent growth. It’s also targeting a mid-2009 IPO—an IPO now is out of the question given the weak IPO market. "

SA: RBC Analysts: Stay Long Yahoo As Its Possibilities Grow

"Testing search ads for Google Inc. (GOOG) and merger negotiations with News Corp. (NWS) and Time Warner Inc.’s (TWX) AOL unit are just some of the ways Yahoo! Inc. (YHOO) management is trying to expand the range of possible alternatives to Microsoft Corp’s (MSFT) $42.4-billion takeover bid in an effort to get more for its shareholders. Meanwhile, News Corp. is reportedly in negotiations with Microsoft to join in its bid.

Is it clear than leaks to the press have become a major factor in these negotiations. So much so, that even seemingly unrealistic options are rumoured to be on the table.

As for what is known, the outsourcing deal with Google has a net benefit for Yahoo of around $500-million, or $5-billion in enterprise value and roughly $5 per share, according to RBC Capital Markets analysts. Yahoo was trading under $19 per share before Microsoft’s bid emerged, while the cash and stock offer is worth around $29 these days. So Yahoo is essentially trying to make the case that half of the remaining premium between these two prices could theoretically be matched instantly, the analysts said in a report."

NYTimes: Microsoft Introduces Tool for Avoiding Traffic Jams

The new service’s software technology, called Clearflow, was developed over the last five years by a group of artificial-intelligence researchers at the company’s Microsoft Research laboratories. It is an ambitious attempt to apply machine-learning techniques to the problem of traffic congestion. The system is intended to reflect the complex traffic interactions that occur as traffic backs up on freeways and spills over onto city streets.

The Clearflow system will be freely available as part of the company’s Live.com site (maps.live.com) for 72 cities in the United States. Microsoft says it will give drivers alternative route information that is more accurate and attuned to current traffic patterns on both freeways and side streets.

A system for driving directions that Microsoft introduced last fall was limited, because without Clearflow there was no information available about traffic conditions on city streets adjacent to the highways. Because the system assumed that those routes would be clear, drivers were on occasion sent into areas that were more congested than the freeways.

Chnlove.com: Leading Chinese dating and marriage website

"Chnlove.com is a leading Chinese dating and marriage website that helps singles find their ideal mate in China. If you are a man who appreciates the beauty, elegance and fidelity of Chinese women, you are in the right place to find your perfect match."

Hmmmmmmm....

Tech Startups 3.0: Goldman Sach's HudsonStreet.com launches with iSuppli

Goldman's Hudson Street Services just launched a new website.

Meebo hires adult supervision from Warner Music Group

"Multiple platform instant messaging web service Meebo has hired Carter Brokaw as their Chief Revenue Officer. Meebo launched in September 2005 with investment from Sequoia Capital and Draper Fisher Jurvetson.
Meebo has been popular because it can let people chat online, in most cases even if a firewall would block IM. Translation - you might be able IM on your college network or at work.
Meebo has focused on raising revenues and capital. First, they looked for a buyer, Techcrunch says the rumor is Meebo was hoping to be bought, with a $250 million valuation. Even though their revenues are said to be around $1 million. So rather than sell, they’re getting another round of capital - this time with a valuation of between $175 - $200 million.
Brokaw was vice president of digital media at Warner Music Group for about a year and before that spent over ten years as the vice president of corporate sales at CNET. He’ll head Meebo’s advertising sales and monetization strategy.
Ealier this week Meebo signed on with Brightcove to stream Internet TV on the site."




Who's rich...bitch?

John McCain Linkedin profile!

John McCain’s Summary
Thank your for visiting the official John McCain Linked In Profile! "I am running for President of the United States because I believe in the greatness of this nation as a beacon of goodwill throughout the world. My friends, each and every one of us has a duty to serve a cause greater than our own self-interest."

John McCain’s Specialties:
Straight Talk, Politics, History

Current: Candidate for President of the United States at John McCain 2008
Senator from Arizona at United States Congress

Yahoo! Finance: Google using Quattrone as merger adviser

"Former star technology investment banker Frank Quattrone is advising Google Inc as the Web search leader mulls its strategy amid Microsoft Corp's move to buy Yahoo Inc, a source familiar with the arrangement said on Thursday."

"Last month, Quattrone announced that he and some former colleagues had started Qatalyst Group, a tech-focused investment banking boutique based in San Francisco, to provide merger and corporate finance advice to technology companies.

"I look forward to working with him again and am very enthusiastic about Qatalyst's prospects for success," Google Chief Executive Eric Schmidt was quoted as saying in the press release announcing the opening of Quattrone's new firm.

"He is advising the company," the source said on Thursday of Google's decision to hire him, offering no further details."

War: YHOO vs MSFT

"Yahoo and Time Warner’s AOL are negotiating a deal to combine their Internet operations, a source told Fortune.

The news was initially reported in the Wall Street Journal, which stated that Time Warner (TWX) would fold AOL into Yahoo and make a large cash investment for a 20% stake of the combined company. In return, Yahoo would repurchase several billions of its shares in the mid-$30 range. Time Warner is also the parent company of Fortune and CNNMoney.com.

For Microsoft, this means war. The Journal and New York Times have also reported that Microsoft (MSFT) is now in talks with News Corp. (NWS) for a joint bid for Yahoo. Last Saturday, Microsoft CEO Steve Ballmer sent a strongly-worded letter to Yahoo’s shareholders that it should accept its offer within three weeks or face a proxy fight to nominate a new board of directors.

Yahoo is also looking at a possible advertising deal with Google (GOOG). Just hours before the news leaked of Yahoo’s advanced talks with AOL, the Internet portal announced that it would run a preliminary two-week test to run Google’s search advertising.

Yahoo, which has rejected Microsoft’s bid worth $31 a share, is hoping that a partnership with AOL and a possible advertising deal with Google, will be a more attractive offer to its shareholders. There’s no guarantee that Yahoo’s shareholders will go along with the deal if Microsoft comes back with a higher offer."

VentureBeat: TechCrunch, VentureBeat in merger talks

"We hear Michael Arrington is in advanced talks to acquire VentureBeat, a smaller tech blog which, like Arrington's TechCrunch, is trying to expand from the niche of covering startups. When Arrington issued a rant about the dangers of tech blogs raising venture capital, it was easy to dismiss his talk of a blog rollup as drunken fantasy. Arrington's concern: That his competitors, by raising money one by one, would make it financially impossible to assemble a "dream team" of bloggers. But why on earth would anyone accept a lower valuation just to be part of Arrington's team? Arrington, we're told, has tentatively secured venture backing from Eric Chin of Bay Ventures, a longtime business associate. That would give him the capital to buy up at least some of his rivals."

Times Online: Joost is struggling

"JOOST, the online television service launched with a fanfare last year by the founders of internet telephony firm Skype, is preparing for a major retrenchment after failing to attract enough users and top-flight broadcasting rights.
The company is expected to rein in its global ambitions to focus solely on the US market.
Set up as an antidote to YouTube by Niklas Zennstrom and Janus Friis after they sold Skype to online auctioneer Ebay, Joost has been overshadowed by the success of the BBC’s iPlayer, and in America, Hulu, a collaboration between NBC and News Corporation, the ultimate owner of The Sunday Times.
It has struggled to convince media and sports companies to sell it global rights, which are normally parcelled out to broadcasters country by country.
Joost has also suffered from senior defections. Chief technology officer Dirk-Willem van Gulik jumped ship for the BBC earlier in the year.
The company raised £23m last May from backers including CBS, Viacom, Index Ventures and Sequoia Capital.
A spokeswoman insisted most of the cash was still in the bank.
“We are not shedding staff,” she said. “There are some situations where staff have been rea-ligned to better fit our needs.”
Zennstrom told The Sunday Times a year ago: “We want to change the way people watch television . . . liberating people from the programme guide.”
Joost is unlikely to close, however. “There are too many egos involved,” said one former employee."

Forbes: Dangerous Curves - Success of Penthouse

"Playboy is something of a flop as a public company. What would make Penthouse any different?"

"There's a lot of airbrushing under way. Penthouse is the tame front for a racy collection of 27 social-networking Web sites that Bell and Daniel Staton, company chairman, bought late last year for $500 million in cash and stock. The sites, previously owned by a Palo Alto, California company that carried the plain-brown-wrapper name Various, have turned Penthouse Media Group into the world's largest adult entertainment company.
The biggest site by far is the very X-rated AdultFriendFinder. With 22 million active members, the site is a Match.com for people who want to find bedmates. There's nothing subtle here, especially in the photography members send in. Special-interest groups include folks who like orgies in central New York State. There are listings from around the world. Kazakhstan has 2,644 swingers.
Fees from 1.2 million paying members of this site, who shell out an average $25 a month for full access, brought in $285 million last year, or 85% of the total from all the social networking sites Penthouse Media Group acquired. Last month AdultFriendFinder got 8 million unique visitors, who lingered an average 16 minutes on the site, says Nielsen Online. Playboy.com attracted only 1.3 million unique visitors, who dropped by for just more than 5 minutes."

“Can you hear me? I’m on the train!!”

"New research reveals that indiscreet public conversations are a threat to company security

“Can you hear me?” – the refrain familiar to anyone used to traveling on a commuter route – could start to become a thing of the past as Vodafone UK announces that it has teamed up with Virgin Trains to deliver improved mobile phone coverage within carriages. The new ‘repeater’ technology, which retransmits 2G and 3G within carriages, will be installed on all 52 of Virgin’s high speed Pendolino trains on the London to Glasgow route by November 2008 and has already improved the number of calls completed without interruption by around 60%.

But the news also comes with a warning that companies need to advise their colleagues to be more discreet – and use alternative forms of communication when discussing sensitive information. New research commissioned by Vodafone UK has found that more than 70% of all workers talk business on their mobile phones in public, with one-in-five talking about business-critical subjects such as sales leads, and 15% admit to openly discussing confidential new products or services whilst traveling. More than a quarter of workers (26%) even confessed to following up on a lead they have overheard in someone else’s phone conversation.*

“This research shows that people need to consider which contact method they use when communicating sensitive information on the move – whether that be voice, text or email,” says Mark Bond, Director of Enterprise, Vodafone UK. “Vodafone provides customers with access to many forms of communication on the move, allowing business people, when necessary, to switch to more discrete methods such as text or mobile email.”

Over half of the mobile phone users surveyed say they always talk business on the phone in public and never switch to a more private communication channel such as email or text. And only 6% of people use code names for people, places or projects when talking in public.

And it’s not just company security that employees should be aware of. The research also shows that mobile phone users admit to discussing their love lives and even sex lives, as well as those of other people, while talking on the phone in public – unwittingly compromising friends and colleagues in it in the process. While only one in five of us will discuss our own love lives – health, careers and children being more popular conversation topics – six out of ten are quite happy to discuss the private lives of our pals. Over a third 16-24 year olds will also happily share details of their sexual conquests.

* Survey of 2,053 mobile phone users (666 business users) carried out by TNS between 21.02.08 and 25.02.08."

Yahoo: Microsoft Gives Yahoo Deadline on Offer

"Microsoft Corp. sent a letter to the Yahoo Board of Directors Saturday setting a three-week deadline for moving forward on its more than $40 billion buyout offer.
The letter signed by Microsoft CEO Steve Ballmer said Microsoft will take its case directly to Yahoo shareholders and work to elect a new slate of directors, if the board doesn't respond by the deadline by April 26."

New York Times: Mobile Phone Industry Takes Aim at the iPhone

" Last year, the wireless industry obsessed over the iPhone. This year, the industry is buzzing about how to beat it."

Hey Craig are you worth $5B?

Valleywag:
"Disgraced stock analyst Henry Blodget pauses to dream up a fantasy valuation for Craigslist, and comes up with $5 billion. The numbers he relies on are faulty, starting with Craigslist's revenues. Blodget relies on a recent report by Classified Intelligence, which pegs its revenues for 2008 at an estimated $81 million. That's extremely low; insiders tell me the real figure for last year was in the range of $100 million to $150 million."

YahooL Jay-Z Nears Huge Business Deal

"Jay-Z is close to reaching a $150 million deal with Live Nation Inc. that will give the concert promoter a stake in virtually every aspect of the rapper and entrepreneur's career, according to news reports.

The contract covers Jay-Z's music and music-related businesses for the next 10 years, the New York Times and Wall Street Journal reported on their Web sites late Wednesday, citing sources familiar with the agreement.

An after-hours call to a Live Nation spokesman seeking comment was not immediately returned late Wednesday.

As part of the arrangement, Jay-Z would get a $25 million upfront payment, plus advance payments of $10 million per album for a minimum of three albums and $25 million toward concert tours. The company would also pay $20 million in exchange for publishing, licensing and other rights.

Live Nation was also expected to commit $50 million to finance Jay-Z's investments and his entertainment venture, to be called Roc Nation, which is expected to include his own record label, music publishing, talent consulting and managing projects.

"I've turned into the Rolling Stones of hip-hop," Jay-Z told the Times.

Jay-Z, whose real name is Shawn Carter, plans to leave Def Jam for the deal, but he still owes his longtime record label one more studio album."

Red Herring: GridPoint Gets $15M and Big-Name Advisers

"GridPoint, a Red Herring 100 company whose platform drives more efficient use of the electrical grid, said Thursday it raised $15 million in funding and announced the appointment of several high-profile individuals to its board of advisors.
Those named to GridPoint's advisory board include Robert N. Danziger, founder of Sunlaw Energy Corp.; Paul J. Feldman, chairman of the Midwest Independent System Operator; T.J. Glauthier, former Deputy Secretary of Energy; R. James Woolsey, former director of the CIA; and Pulitzer Prize winner Daniel Yergin.
The Washington D.C. startup (previous coverage here, here) has raised $102 million since its 2003 founding, and this latest announcement underscores the growing enthusiasm for technology that helps build so-called smart grids.
GridPoint’s system helps convert energy from solar, wind, and other sources—installed at homes or businesses—into usable electricity, and automatically sells excess electricity to utilities at opportune times.
Using software and communications with GridPoint’s network operations center, the energy management system can use weather forecasts, as well as time-based pricing, to make decisions about when to buy or sell.
The system also enables utilities to balance supply and demand"

ChinaView.cn: China venture capital investment up 12.9% in Q1

"The 73 venture capital (VC) investment deals completed in China in the first quarter were valued at 585 million U.S. dollars, up 12.9 percent from the same period last year, said a report released on Tuesday by ChinaVenture.
The report said the number of deals completed was basically flat for the first quarter. For the same period in 2007, 72 deals were completed.
The average deal size was 8.02 million U.S. dollars, up 11.3 percent.
The medical and healthcare sectors remained the most popular among investors with seven deals completed. They were valued at 83.99 million U.S. dollars.
Since the fourth quarter of 2007, the sector has been much chased by investors while the once-popular Internet service sector has seen a shrinking number of deals.
ChinaVenture is a consulting firm that provides services for VC investors, investment banks and entrepreneurs both at home and abroad.

WSJ: Venture Activity Hit by U.S. Slowdown

"The nation's economic slowdown is starting to dent, or at least delay, profits for venture capitalists.

Only five companies backed by venture capitalists -- investors who back young companies and hope to make money later when the firms go public or are sold -- staged initial public offerings in the just-ended first quarter, according to the National Venture Capital Association and Thomson Financial. It was the lowest number of venture-backed IPOs since the second quarter of 2003, when there were two deals.

Similarly, only 56 companies backed by venture investors merged with other companies or were acquired for the period ended March 31. While the deals were valued at about $2.5 billion, it was the lowest number of venture-related M&A deals since the late 1990s, according to the venture-capital association.

"As far as we're concerned, the capital markets are closed until further notice," said Paul Maeder, a partner with Highland Capital Partners in Lexington, Mass. He said Highland is encouraging all of its companies to be frugal and to try to become profitable soon, rather than simply burning through cash.

The lackluster deal activity comes on top of the recent implosion in U.S. credit markets and stock-market troubles that have spooked investors and prompted calls for a financial-regulation overhaul.

"If the world is in turmoil, people don't know what's going to happen -- everybody freezes," says Alain Harrus, a partner with Crosslink Capital in San Francisco. That makes companies and bankers less likely to complete deals, he says.

Still, venture capitalists continue to fund new companies. U.S. venture investors raised $34.7 billion last year, the most since 2001, and now need places to deploy that cash."



Other Sources:
IPOs at lowest level since dot-com rebound Seattle Post Intelligencer
Economic woes sour start-ups market Boston Globe
VC-Backed IPOs Hit a Brick Wall Red Herring

BREAKING NEWS: Google acquires Microsoft consolidating tech industry

GOOGLE expanded its power in online advertising today when it completed its takeover of DoubleClick, a move which increases the pressure on rival Microsoft to win its hostile bid for Yahoo.

The merger of the world's top online search firm with the industry leader in matching ads to people's internet activities came after European regulators signed off on the deal, and strengthened Google's domination of the lucrative online ad business.

"We are thrilled that our acquisition of DoubleClick has closed,'' Google chairman and chief executive Eric Schmidt said in a written statement shortly after European antitrust regulators cleared the deal.

"Google now has the leading display ad platform.''

The European Commission said an investigation opened in November 2007 concluded the transaction "would be unlikely to have harmful effects on consumers''. US regulators approved the deal last year.

Google ended a bidding war with Microsoft in April 2007 by agreeing to pay $US3.1 billion ($3.4 billion) to add DoubleClick to its internet money-making arsenal.

"It's part of Google's desire to control most of the online ad revenue,'' said analyst Rob Enderle of Enderle Group in Silicon Valley.

"Google is trying to become a one-stop shop for ads.''

Google's purchase of DoubleClick is likely among the reasons Microsoft is now trying to buy Yahoo for $US44.6 billion in cash and stock, analysts said.

APRIL FOOLS

BBC: Flying Penguins

"The BBC will today screen remarkable footage of penguins flying as part of its new natural history series, Miracles of Evolution.
# Telegraph TV: Watch footage of the flying penguins

Camera crews discovered a colony of Adélie penguins while filming on King George Island, some 750 miles south of the Falkland Islands"

"The programme is being presented by ex-Monty Python star Terry Jones, who said: "We'd been watching the penguins and filming them for days, without a hint of what was to come.

"But then the weather took a turn for the worse. It was quite amazing. Rather than getting together in a huddle to protect themselves from the cold, they did something quite unexpected, that no other penguins can do."