New York - AT&T said it activated 146,000 accounts for new owners of Apple's iPhone in the two days after its launch on June 29, a number that was fewer than had been forecasted and which sent shares of AT&T down slightly and Apple shares 6% lower on Tuesday. [more..]

San Francisco - U.S. video game sales rose 31% in June from a year ago, to $1.1 billion, buoyed by strong sales of next-generation consoles from all three major players, Reuters reported, citing data from market research firm NPD Group. [more..]

London - A Belgian Internet service provider that was ordered by a court earlier this month to block all peer-to-peer trading of copyrighted files on its network has appealed the landmark European ruling, Out-Law.com reported. [more..]

Dulles, Va. - Looking to lure a larger number of display ads to its network, AOL said on Tuesday that it will acquire New York-based Tacoda, a developer of technology that lets advertisers target consumers based on their online behavior. [more..]

New York - Hearst Corporation, which owns major interests in a variety of newspapers, TV stations and cable networks, announced on Tuesday that it has acquired UGO Networks, a network of entertainment sites targeting young men. [more..]

Espoo, Finland - Finnish cell phone maker Nokia announced on Tuesday that it has acquired Twango, the provider of a media sharing service for photos, videos and other personal media across desktop and mobile devices. [more..]

San Diego - DivX, a developer of video compression technology and related services, announced on Tuesday that it plans to spin-off its Stage6 video-sharing site into a separate company. [more..]

Vancouver, Canada - Adzilla, a developer of online advertising technology, has raised $10 million in its first round of funding, PEHub.com reported, citing a regulatory filing. [more..]

San Mateo, Calif. - MotionDSP, a developer of video enhancement technology, announced on Tuesday that it has received an undisclosed investment from In-Q-Tel, an investment firm that identifies innovative technology solutions to support the mission of the CIA and broader U.S. intelligence community. [more..]

Greenville, S.C. - Zipit Wireless, a developer of wireless instant messaging devices, has raised $4.7 million in its first round of venture capital, from Windspeed Ventures, SunBridge Partners and Meritus Ventures. [more..]

Cambridge, Mass. - GuildCafe Enertainment, an online social networking site for online gamers, has raised an undisclosed amount of funds in its first round of venture capital, led by IDG Ventures, according to a report on Tuesday in PE Week Wire. [more..]

San Francisco - Respectance, an online social community focused on sharing memories of lost loved-ones, said on Tuesday that it has landed $1.5 million in its first round of funding. [more..]

Santa Monica, Calif. - Transpera, a developer of mobile video technology, announced on Tuesday that it has raised an undisclosed sum in its first round of venture capital financing, from First Round Capital, IDG Ventures and Intel Capital. [more..]

Scott Karp interviews Larry Allen, SVP, Business Development and Marketing at the ad network Tacoda, that just got acquired by AOL. [more..]

Jay Baage blogs about how the most memorable pictures of Hollywood celebrities are not taken by Annie Leibovitz or paparazzi, they are taken by the police. [more..]

Tim Berry is president of Palo Alto Software, the principal creator of Business Plan Pro, and the author of a blog called Planning, Startups, Stories. [more..]

Alviso, Calif. - TiVo on Tuesday introduced a new high-definition digital video recorder that will sell for $299, a significant drop from the original $799 TiVo Series3 HD Digital Media Recorder. [more..]

New York - MusicNet, which is the now the music unit of recently renamed digital entertainment services provide MediaNet Digital, announced on Tuesday that it has signed agreements with EMI Music and several independent labels that will allow it to offer over one million DRM-free tracks to its partners. [more..]

Los Angeles - Txttunes, the provider of a text-message-based music distribution and social networking service, on Tuesday announced the launch of its offering in the U.S. [more..]

London - Major record label EMI Music on Tuesday announced that it has partnered with Chicago-based digital music marketing agency VerveLife, on a promotion that will give away EMI artist song downloads free of digital rights management (DRM) to Burger King customers in the U.K. [more..]

Mexico City - News Corp.'s MySpace online social network on Tuesday announced the official launch of its localized site for Mexico. [more..]

Novato, Calif. - Sonic Solutions, a developer of digital media software, said that the Nasdaq Listing and Hearing Review Council has decided to stay a previous decision that gave the company until Friday to file past-due financial statements, or face delistment. [more..]

Washington - The Open Mobile Video Coalition (OMVC), an association of television broadcasters looking to accelerate development of mobile digital broadcast TV in the U.S., announced on Tuesday that nine additional broadcast station groups have joined its ranks. [more..]

Centennial, Colo. - National CineMedia (NCM), a provider of in-theater digital programming and advertising, said on Tuesday that it has signed an agreement with movie exhibitor National Amusements, to offer live and pre-recorded events in 25 of its theaters in multiple U.S. markets. [more..]

Orlando, Fla. - ClearSky Mobile Media, a distributor of mobile entertainment, said on Tuesday that it has licensed thousands of master recording ringtones from Universal Music Group, for sale through its carrier partners. [more..]

Irvine, Calif. - Vivendi's Blizzard Entertainment games studio announced on Tuesday that its massively multiplayer online game "World of Warcraft" has now surpassed nine million paying subscribers worldwide. [more..]

Brighton, England - Mobile game developer Digital Chocolate said on Tuesday that it signed an agreement with Nokia to publish a variety of its titles for the N-Gage platform launching in the fall. [more..]