Redmond, Wash. - Continuing a recent flurry of acquisitions in the online ad space, Microsoft announced on Friday that it will acquire online advertising and marketing firm aQuantive for $6 billion. The deal is the largest-ever acquisition by Microsoft. [more..]

San Francisco - Spurred by continued strong sales of Nintendo's Wii and DS systems, U.S. video game sales were up 20% in April from the same period a year ago, Reuters reported, citing industry sales data compiled by market research firm NPD Group. [more..]

Washington - The Federal Communications Commission (FCC) has approved Apple's iPhone for sale in the U.S., clearing the way for the company's first mobile phone to be released in late June by AT&T/Cingular. [more..]

San Francisco - The founders of YouTube this week challenged the Pentagon's reasoning when it cited bandwidth constraints as a primary motive for blocking access to its website -- along with other video-sharing sites and social networks like MySpace -- from U.S. soldiers and others using its network, the Associated Press reported. [more..]

Washington - A non-profit trade group made up of 29 copyright-related organizations announced its launch this week on Capitol Hill, with a stated goal of "promoting the value of copyright as an agent for creativity, jobs and growth." [more..]

Washington - The Carlyle Group, the large DC-based private equity firm, may be preparing to sell New York-based cable operator Insight Communications, less than two years after acquiring the company in a $2.1 billion management buyout, TheDeal.com reported. [more..]

Silver Spring, Md. - Discovery Communications, the large television network, announced that it will close its 103 Discovery Channel Stores by the end of third quarter. [more..]

Tel Aviv, Israel - Hingi, a developer of mobile media ID and e-commerce technology, has raised $3.5 million in an initial round of financing, led by Opus Capital and a group of unnamed investors, Globes Online reported. [more..]

Redmond, Wash. - Microsoft has begun to lock out owners of illegally modified Xbox 360 consoles -- which can play pirated games -- from its Xbox Live online game service. "This is an important part of our efforts to try and maintain a fair gaming environment for the large majority of gamers that play by the rules," the company said on its Gamerscore blog. "These users will not have their account automatically banned from LIVE, but they will no longer be able to access the service from the console they modified." [more..]

Cupertino, Calif. - Coca-Cola and Apple this week announced a European promotion that will give away over 2 billion free song downloads on Apple's iTunes Store. Specially marked Coca-Cola products sold in 17 countries through August will feature codes redeemable for free songs, as well as chances to win iPods and concert tickets. [more..]

Los Angeles - National Lampoon this week announced the formation of a broadband video network that will distribute its programming with new partners including YouTube, Joost, Lycos, Veoh, GoFish, Handheld Entertainment and BiggyTV. The National Lampoon Video Network will supplement existing distribution partnership the company has with AOL Video and Brightcove, as well as its own NationalLampoon.com and TogaTV.com portals. [more..]

New York - Sona Mobile, a New York-based provider of software for gaming and entertainment applications, on Friday announced that it has received Nevada Gaming Commission approval, allowing the company to actively market and sell their products to gaming venues in the state of Nevada. Shares in Sona were trading up $0.04 at $0.52 on Friday, a gain of about 8%. [more..]