San Francisco - Online social network Facebook has been valued at $6.5 billion for a transaction that will see Russia's Digital Sky Technologies purchase some $100 million worth of employees' shares in the company for $14.77 per share, Reuters reported. [more..]

London - Microsoft is preparing to launch a streaming music service similar to the popular European ad-supported service Spotify, the Daily Telegraph reports. [more..]

Baltimore - As the ongoing recession continues to take its toll on advertising, Baltimore-based Sinclair Broadcast Group said in a filing with the Securities and Exchange Commission that it may be forced to file for Chapter 11 bankruptcy protection. [more..]

Auckland, New Zealand - The government of New Zealand has introduced a revised version of its controversial "three-strikes" law, which now includes a mediation and tribunal process before repeat file-swappers would potentially see their Internet accounts suspended, according to published reports. [more..]

New York - TMZ.com, the celebrity news website owned by Time Warner's AOL, is dropping AOL's Platform-A online ad sales team and taking the business in-house, PaidContent reported. [more..]

New York - The Associated Press announced that it has settled a lawsuit filed against AHN Media over the use of AP content on its websites. [more..]

Santa Clara, Calif. - Wireless HD chipmaker Amimon announced on Tuesday that it has raised $10 million in a fourth round of funding, led by Stata Venture Partners. [more..]

Redwood City, Calif. - Vindicia, the developer of a payments platform for online merchants, said that it has raised $7.5 million in its fourth round of funding, led by ONSET Ventures. [more..]

San Francisco - Outspark, a publisher of online multiplayer games that generate revenue through microtransactions, announced on Tuesday that it has closed an $8.3 million third round of financing, led by Syncom Venture Partners. [more..]

Fremont, Calif. - Nexage, a provider of mobile advertising services, said on Tuesday that it has raised $4 million in first round funding, from BlackBerry Partners Fund and GrandBanks Capital.
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Santa Monica, Calif. - Generate, an online video production firm with talent management and branded entertainment divisions, has added $2 million to its first round of financing, which now totals $8 million, PaidContent reported. [more..]

As a top 5 site with 3.45% of all U.S. Internet visits, MySpace remains a massive force to be reckoned with. However, as the two charts above illustrate, the site has become increasingly removed from Entertainment and Music traffic, blogs Bill Tancer. [more..]

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Dallas - Video rental giant Blockbuster announced on Tuesday that it has partnered with electronics maker Samsun to make its OnDemand service available on select Samsung HDTVs, home theater systems and Blu-ray players. [more..]

Philadelphia - Cable TV provider Comcast has added 17 new networks to the pilot test of its On Demand Online service, which will provide free online access to pay-TV television channels to its subscribers. [more..]

Cupertino, Calif. - Apple said on Tuesday that customers have now downloaded more than 1.5 billion applications from its App Store in a year. [more..]

New York - Video game publisher Take-Two Interactive saw its stock price tumble 10% on Tuesday, a day after the company announced that it would delay the release of a key title, "BioShock 2," from the fall of this year until sometime in 2010. [more..]

San Francisco - Universal Music's Interscope Geffen A&M label group said on Tuesday that it has partnered with mobile entertainment firm Moderati to launch Romplr, an iPhone application that lets fans create their own remixes and share them with friends. [more..]

Denver - To celebrate the 60th anniversary of the 45-single, Warner Music Group's Rhino Records is releasing a series of digital singles, which include the song, its B-side, original sleeve and other artwork, Billboard reported. [more..]