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Take-Two Acquires Sega's Visual Concepts, Kush Games for $24 Million

Authored by Mark Hefflinger on January 25, 2005 - 7:05am.
New York -- Video game publisher Take-Two Interactive, developer of the "Grand Theft Auto" franchise, announced on Tuesday that it has acquired two game studios owned by Japan's Sega -- Visual Concepts Entertainment and Kush Games -- for $24 million in cash. Visual Concepts develops Sega's "2K" series of sports video games, including its Major League Baseball titles; yesterday, Take-Two announced an exclusive deal with MLB to publish official baseball video games. Under the deal, Sega will publish 2K and other Take-Two titles in Japan and other Asian markets. "These studios and their unrivaled talent represent a significant addition to Take-Two's internal development capabilities, which are now approaching 1,000 people worldwide," said company president Paul Eibeler. New York-based Take-Two also formed a new publishing label, 2K Games, which will incorporate Visual Concepts and Kush, in addition to Take-Two's Indie Built, Venom Games, PopTop Software and Frog City Software studios. The 2K Games label will publish the 2K sports titles as well as titles due for release on Take-Two's Global Star label.
tags: Take-Two | Acquisition | Acquires | Sega's Visual Concepts | Kush Games |

Bush's Top Lawyer, Christian Coalition Side with RIAA in File-Sharing Appeal

Authored by Mark Hefflinger on January 25, 2005 - 7:01am.
Washington -- A number of conservative groups, including the Christian Coalition, joined the Bush administration's Solicitor General and the Business Software Alliance in filing "friend of the court" briefs in support of the movie and music industries' appeal of a file-sharing case to the U.S. Supreme Court. The RIAA and MPAA have appealed a landmark ruling, which said providers of file-sharing software cannot be held liable for copyright infringement committed by end-users, to the Supreme Court. While the U.S. Solicitor General admitted that peer-to-peer networks can be used for legitimate purposes, his brief argued that the file-sharing firms being sued in MGM v. Grokster "have built their particular P2P networks around the 'draw' of massive copyright infringement." Conservative groups including the Christian Coalition, Concerned Women for America and Morality in Media -- which are usually railing against indecency in movies and music -- sided with the RIAA and MPAA in their brief, deriding the "untraceable peer-to-peer networks that facilitate crimes against children." A group of technology firms and public interest groups yesterday filed their own brief with the Supreme Court, criticizing the use of file-sharing for copyright infringement while maintaining that outlawing all such technology would stifle innovation. The Supreme Court will hear oral arguments in MGM v. Grokster on March 29, with a decision expected by the end of July.
tags: Law | RIAA | File-Sharing Appeal | Bush's Top Lawyer | Christian Coalition |

Google, Yahoo Launch Free Video Search Services

Authored by Mark Hefflinger on January 25, 2005 - 6:58am.
Mountain View, Calif. -- Search engine giant Google on Tuesday launched a new service that allows users to search the content of TV programs. The Google Video beta lets users search across the closed captioning content of TV programs from providers including PBS, the NBA, Fox News and C-SPAN. Mounatin View, Calif.-based Google, which began indexing content for the service in December, said features will include a preview page, list of upcoming episodes, search within the show, and the ability to find when a program will air locally according to zip code. For the time being, the free service will not include Google AdWords advertising or playback options. On the same day, rival Yahoo launched a similar service that allows users to search video from providers including Bloomberg TV, BSkyB and the BBC.
tags: Launches | Yahoo | Video Search | Google |

Electronic Arts Completes Tender Offer for Swedish Developer DICE

Authored by Mark Hefflinger on January 25, 2005 - 6:56am.
Redwood City, Calif. -- Video game publisher Electronic Arts announced on Tuesday that it has tendered its final offer to shareholders in its bid to acquire Swedish game developer Digital Illusions CE (DICE), creator of the "Battlefield" franchise. EA already holds about 20% of DICE, but an earlier offer to acquire the remaining shares of the company was rejected by DICE shareholders. The company said that 32% of DICE shareholders now accept its offer, and with another 8.9% of shares it has acquired in the market, it now holds a 59.8% controlling interest in DICE. EA further declared the conditions for its offer have been met, and expects to close the transaction by Jan. 27. Separately, Redwood City, Calif.-based EA on Tuesday shipped its "Oddworld Stranger's Wrath" for Xbox to retailers. The title is the latest in the series developed by San Luis Obispo, Calif.-based Oddworld Inhabitants. EA also said that it will bundle the Super Nintendo title "Super Punch-Out" on its upcoming "Fight Night Round 2" title for Nintendo GameCube.
tags: Electronic Arts | DICE | Tender Offer | Swedish Developer |

Missouri Governor Bans Video Games for Prison Inmates

Authored by Mark Hefflinger on January 25, 2005 - 6:54am.
Jefferson City, Mo. -- Missouri governor Matt Blunt has announced a ban on video games within the state's prisons, labeling them "a luxury that inmates should not be allowed to enjoy," the Associated Press reported. The video game ban, which is also in effect in 47 other states, followed a Dec. 2004 story in The Kansas City Star that revealed inmates were playing violent titles like "Hitman: Contracts." The governor had previously removed 35 violent titles from prisons, but this week expanded the ban to all video games. "Our penitentiaries are punitive institutions where those who have committed crimes against society are sent to pay for their actions. They are not meant to be arcades," said Blunt, in a statement.
tags: Missouri Governor | Bans Video Games | Prison Inmates |

French Mobile Game Publisher In-Fusio Acquires Developer Thumbworks

Authored by Mark Hefflinger on January 25, 2005 - 6:52am.
Los Angeles -- French mobile game publisher In-Fusio announced on Tuesday that it has acquired Tustin, Calif.-based wireless entertainment developer Thumbworks. Financial terms of the transaction were not disclosed. In-Fusio said Thumbworks president Craig Holland will become head of In-Fusio's U.S. operations. Thumbworks has created branded games for clients including Jeep, Honda, Wilson and Paramount Pictures, in addition to a streaming animation service called CellToons for Sprint. "The merger is a definitive step for expanding In-Fusio's publishing expertise and technological capabilities, positioning the company as a leading mobile entertainment entity in North America," said In-Fusio co-CEO and president Gilles Raymond.
tags: In-Fusio | Acquires | French Mobile Game Publisher | Developer Thumbworks |

Venture Capital Reverses Three-Year Trend; Rises in 2004

Authored by Mark Hefflinger on January 25, 2005 - 6:49am.
Arlington, Va. -- Venture capitalists reversed a three-year downward trend by investing $20.9 billion into nearly 2,900 deals last year, according to a new report from PricewaterhouseCoopers, Thomson Venture Economics and the National Venture Capital Association. The annual investment level had fallen each year beginning in 2001, culminating in a six-year low of $18.9 billion in 2003. According to the report, the increase in 2004 was due largely to a sharp increase in late-stage investments, from $4.9 billion to $7.2 billion. "The strengthening IPO and acquisitions markets clearly helped fuel late stage financings in 2004," said Mark Heesen, president of the National Venture Capital Association. "Now, as venture capitalists are beginning to invest their new funds, we may well see a shift in focus back to early stage companies in the coming year."
tags: VC | hree-Year Trend | Reverses | Rises |

Peer-to-Peer Internet Radio Firm Mercora Raises $5 Million

Authored by Mark Hefflinger on January 25, 2005 - 6:48am.
Santa Clara, Calif. -- Mercora, a start-up whose technology allows users to offer their own Internet radio stations and listen to others' stations on their PCs, said on Monday that it has raised more than $5 million in its second round of funding, led by Norwest Venture Partners. Mercora's service combines peer-to-peer and Internet streaming technologies to allow users to webcast their music on the Internet without breaking licensing rules. The company claims to have more than 300,000 registered users, offering 21 million songs on over 2,000 stations.
tags: VC | Mercora | Peer-to-Peer Internet Radio |

StreamBase Systems Raises $11 Million in Second Round

Authored by Mark Hefflinger on January 25, 2005 - 6:46am.
Lexington, Mass. -- StreamBase Systems, a developer of software for processing high-performance streaming applications, has raised $11 million in its second round of venture capital, led by Bessemer Venture Partnersand Highland Capital Partners. StreamBase Systems, which was formally known as Grassy Brook, was founded in 2003 to commercialize a software platform developed by a team of 30 professors and students from M.I.T., Brown University and Brandeis University. The company's initial product version was delivered to early adopter customers in 2004 in the financial services industry.
tags: VC | Second Round | StreamBase Systems |