New York - Take-Two Interactive chairman Strauss Zelnick responded to a fourth extension of Electronic Arts' offer to acquire the game publisher on Tuesday by stating that "their proposal still significantly undervalues Take-Two, a fact that is reflected in the overwhelming number of stockholders who still have not tendered their shares." [more..]

London - A new survey of U.K. youth ages 14-24 found that 80% who use peer-to-peer networks to download music would pay for a legal file-sharing service. [more..]

Bethpage, N.Y. - Cable TV service provider Cablevision's Rainbow Media Holdings announced on Tuesday that it has completed its $496 million acquisition of Sundance Channel from previous owners NBC Universal, Showtime Networks and entities controlled by Sundance founder Robert Redford. [more..]

Seattle - Online retail giant Amazon.com on Tuesday began publicizing a pair of ongoing promotions that offer customers deeply discounted albums from its MP3 store. [more..]

New York - The principals at New York-based music marketing firm Cornerstone Promotion have created a network of music blogs -- including their own TheFader.com, TheTripwire.com and 1200squad.com -- and Gizmodo founder Pete Rojas' RCRD LBL, that is now attracting blue-chip advertisers, Fortune reports. [more..]

New York - Digital music service eMusic on Tuesday announced a "modest price increase for some of its users," which will see the cost of its monthly Basic Plan raised from $9.99 to $11.99. [more..]

New York - Answers Corporation, the company behind reference sites Answers.com and WikiAnswers.com, announced on Tuesday that it has secured up to $13 million through a private placement of shares and warrants with venture capital firm Redpoint Ventures. [more..]

Florham Park, N.J. - Roundbox, a provider of mobile broadcast applications, has called down $12 million of a $20 million third round of financing, PEHub.com reported, citing a regulatory filing.
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New York - Glam Media, an online publishing network for women that counts 42 million unique U.S. visitors, announced on Tuesday that it has acquired U.K.-based online media sales firm Monetise. [more..]

New York - A majority (52%) of venture capitalists said in a recent survey that they believe venture capital investment in digital content creation will increase over the next two years, and 25% said they expect investments to rise more than 20%. [more..]

Sausalito, Calif. - ImageSpan, a provider of enabling infrastructure for digital content licensing, announced on Tuesday that it has raised $11 million in its second round of financing, led by Bertelsmann Digital Media Investments. [more..]

Berkeley, Calif. - Social networking application developer i2we has landed $750,000 in a first round of funding led by IDG Ventures San Francisco, PEHub.com reported, citing a regulatory filing. [more..]

The more traffic Hulu generates, the more money it makes. The more traffic Youtube generates, the more money it loses, blogs Mark Cuban. [more..]

New York - Hulu, the advertising-supported online video joint venture between NBC Universal and News Corp., has begun "politely" asking viewers watching TV shows and other content on the site to disable ad-blocking software, Silicon Alley Insider reports. [more..]

San Francisco - Blog search engine Technorati on Tuesday launched its own blog advertising network, Technorati Media, TechCrunch reported. [more..]

New York - Major record label Universal Music Group on Tuesday announced a deal with CBS-owned Last.fm that will make UMG's music video catalog available for free, on-demand streaming on the social music discovery service. [more..]

New York - WeMix.com, an online community of music makers and user-generated record label backed by hip-hop artist Ludacris, announced a partnership with VoodooVox that will allow the WeMix community to use any phone as a microphone to submit original vocals, tracks and beats to the site. [more..]

Barcelona, Spain - Independent digital music distributor IODA on Tuesday announced a deal with Telefonica, that will see the Spain-based telecom make the IODA catalog of over 1 million tracks available to its subscribers in 24 countries. [more..]

Ann Arbor, Mich. - Media retail store chain Borders on Tuesday announced a deal with Michael Eisner's Vuguru digital content studio, to distribute "Robin Cook's Foreign Body: The Prequel" on Borders.com. [more..]

Redwood City, Calif. - Electronic Arts on Tuesday announced the release of its "Spore Creature Creator," a standalone product that allows users to create their own creatures that will feature in its forthcoming title "Spore," due in September from "Sim City" creators Maxis [more..]