Nvidia says it sees revenue from cloud computing at $1 bln within two-three years

The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015.

/Robert Galbraith

Chipmaker Nvidia Corp (NVDA.O) said it expects cloud computing revenue to hit $1 billion in the next two to three years, as demand for big data analysis drives growth in graphics chips.Cloud computing is the company's fastest-growing segment, with revenue increasing at about 60-70 percent a year, CEO Jen-Hsun Huang told reporters a day before Computex, Asia's largest technology trade show, opens in Taipei.Nvidia makes chips for computing and gaming graphics, known as GPU, or graphical processing units. It has also been moving into automotive graphics in partnership with automaker Tesla Motors Inc (TSLA.O). Cloud computing allows people to play graphics-heavy games over the Internet, Huang said. He also noted that the company's GPUs can now be used for a wide variety of applications, such as voice commands like those used by Apple Inc's (AAPL.O) Siri. (Reporting by Michael Gold; Editing by Miral Fahmy)

China's 'Internet police' open a window on Web censorship

A picture illustration shows icons of WeChat and Weibo app in Beijing, December 5, 2013.

/Petar Kujundzic

The branch of China's police in charge of censoring "illegal and harmful" online information will make its efforts more visible to the public from Monday with the launch of their own social media accounts, the Ministry of Public Security said.The Chinese government aggressively censors the Internet, blocking many sites it deems could challenge the rule of the Communist Party or threaten stability, including popular Western sites like YouTube, Instagram and Facebook, as well as Google Inc's main search engine and Gmail service.Police in some 50 areas, from metropolises like Beijing and Shanghai to more obscure cities like Xuzhou in Jiangsu province, will open accounts on sites including Weibo, China's answer to Twitter, the ministry said late on Sunday.The move is a response to public concern about problems like online gambling and pornography and is aimed at increasing the visibility of the police presence online to "create a harmonious, cultured, clear and bright Internet", it said."The Internet police are coming out to the front stage from behind the curtains, beginning regular open inspection and law enforcement efforts, raising the visibility of the police online, working hard to increase a joint feeling of public safety for the online community and satisfy the public," the ministry said. The cyber police are working to root out "illegal and harmful information on the Internet, deter and prevent cyber crimes and improper words and deeds online, publish case reports and handle public tip-offs", it said.Problems such as fraud, defamation, gambling, the sale of drugs and guns, and "picking quarrels and provoking trouble" - a charge often used to lock up dissidents - have angered people and created a serious challenge to an orderly Internet, it said. The police would issue warnings to those involved in minor offences and go after more serious cases."Just like in the real world, law violations in cyberspace will not go unaccounted for," it said. The government has already deleted some 758,000 pieces of "illegal and criminal information" from the Internet and investigated more than 70,000 cyber crime cases since the start of this year, the ministry said. (Reporting by Ben Blanchard; Editing by Paul Tait)

U.S. Senate to let NSA spy program lapse, at least for now

A National Security Agency (NSA) data gathering facility is seen in Bluffdale, about 25 miles (40 km) south of Salt Lake City, Utah May 18, 2015.

/Jim Urquhart

The legal authority for U.S. spy agencies' collection of Americans' phone records and other data was set to expire at midnight on Sunday after the U.S. Senate failed to pass legislation extending the controversial powers.After debate pitting Americans' distrust of intrusive government against fears of terrorist attacks, the Senate voted to move ahead with reform legislation that would replace the bulk phone records program revealed two years ago by former National Security Agency (NSA) contractor Edward Snowden.But final Senate passage of the bill was delayed until at least Tuesday morning by objections from Senator Rand Paul, a libertarian Republican presidential hopeful who has fulminated against the NSA program as illegal and unconstitutional.As a result, the government's collection and search of phone records was set to terminate at midnight (0400 GMT on Monday) when provisions of a post-Sept. 11, 2001, law known as the USA Patriot Act expire.In addition, U.S. law enforcement and security agencies will lose authority to conduct three other programs.Those allow for "roving wiretaps" aimed at terrorism suspects who use multiple disposable cell phones; permit authorities to target "lone wolf" suspects with no connection to specific terrorist groups, and make it easier to seize personal and business records of suspects and their associates.Still, eventual resumption of the phone records program in another form, and the other government powers, appeared likely after the Senate voted 77-17 to take up the reform legislation, called the USA Freedom Act."This bill will ultimately pass," Paul acknowledged after the procedural vote.The Senate abruptly reversed course during a rare Sunday session to let the bill go ahead, after Republican Majority Leader Mitch McConnell reluctantly acknowledged that Paul had stymied his efforts to extend the Patriot Act.Intelligence experts say a lapse of only a few days would have little immediate effect. The Patriot Act allows the government to continue collecting information related to any foreign intelligence investigation that began before the deadline. President Barack Obama has strongly backed the Freedom Act, as have most in his Democratic Party. It passed the House on May 13 by an overwhelming 338-88 vote.But Republicans have been badly divided, delaying action on the issue, between security hawks like McConnell who wanted the NSA program to continue as is, and libertarians like Paul who want to kill it altogether.'DEMAGOGUERY AND DISINFORMATION'The Senate debate was angry. In an emotional speech, Paul said the Patriot Act provisions wasted time and money that would be better spent targeting those planning attacks. He even accused some of his critics of wanting an attack on the United States "so they can blame it on me."McConnell accused Paul, his fellow Kentucky Republican, and other Patriot Act opponents of waging "a campaign of demagoguery and disinformation" based on revelations from Snowden "who was last seen in Russia."McConnell has endorsed Paul for president. But he wanted to extend the Patriot Act provisions, unchanged, for five years, and agreed only reluctantly on Sunday to allow a vote on the Freedom Act despite what he called its "serious flaws."Several senators openly accused Paul of using the issue to raise money for his presidential campaign."He obviously has a higher priority for his fundraising and political ambitions than for the security of the nation," Senator John McCain, the 2008 Republican presidential nominee, told reporters.     The Senate came back early from its Memorial Day recess to resume consideration of the legislation at 4 p.m. EDT (2000 GMT) on Sunday, just as security officials said they had to begin shutting down the NSA program to meet the midnight deadline.The Freedom Act would end the spy agencies' bulk collection of domestic telephone "metadata" and replace it with a more targeted system.The telephone records would be held by telecommunications companies, not the government, and the NSA would have to get court approval to gain access to specific data. Neither the current or proposed new system gives the government access to the actual content of phone conversations.Many civil liberties groups feel the Freedom Act does not go far enough in protecting Americans' privacy."Congress should take advantage of this sunset to pass far reaching surveillance reform, instead of the weak bill currently under consideration," Michael Macleod-Ball, acting director of the American Civil Liberties Union's Washington Legislative Office, said in a statement.A review panel that Obama established in 2013 concluded that the telephone metadata collection program had not been essential to preventing any terrorist attack. Security officials counter that it provides important data that, combined with other intelligence, can help stop attacks.CIA Director John Brennan, appearing on CBS's "Face the Nation" program on Sunday, said data collection was "important to American lives" and that being without them could mean missing warning of a big attack on the United States. (Additional reporting by Douwe Miedema and Bill Trott; Editing by Eric Walsh and Sandra Maler)

Senate set to convene on future of U.S. telephone spying powers

A National Security Agency (NSA) data gathering facility is seen in Bluffdale, about 25 miles (40 km) south of Salt Lake City, Utah May 18, 2015.

/Jim Urquhart

The U.S. Senate is set to convene in a rare Sunday session in a last-ditch attempt to pass legislation to allow U.S. spy agencies to continue to sweep up information on Americans’ telephone calls and other business records.    Failure to pass such legislation would mean that key provisions of the USA Patriot Act would expire and, facing a midnight (0400 GMT Monday) deadline, the National Security Agency would have to shut off a vast surveillance system.    The Patriot Act was signed into law by Republican President George W. Bush after the Sept. 11, 2001 attacks on the United States and parts of it have been renewed under Democratic President Barack Obama.    But with the clock ticking on some sections of the act, efforts to renew them have stalled in the Senate, which also has failed to advance a compromise bill known as the USA Freedom Act that would reform the telephone data program.Libertarians want the program ended altogether, while security hawks want it extended, unchanged.     The Senate is scheduled to hold a special session to consider the legislation at 4 p.m. EDT (2000 GMT) on Sunday, just as security officials say they have to begin shutting down the NSA program to meet the midnight deadline.    The Freedom Act, which ends the spy agencies’ bulk collection of domestic telephone "metadata" and replaces it with a more targeted system, has already passed the House of Representatives by an overwhelming margin and has Obama's strong support.    Senator Rand Paul, a libertarian campaigning to become the Republican candidate in next year's presidential election, has vowed to block any extension of the program, calling it government intrusion on privacy rights.     It is unclear if supporters of the Freedom Act can get the 60 votes needed to move it forward in the 100-member Senate.    A previous attempt on May 23 fell three votes short and the bill's backers have been pushing hard to sway three more senators.    "I do believe we have the votes," Republican Senator Mike Lee told CNN's "State of the Union" program on Sunday. "It'll happen either tonight or it'll happen on Wednesday or sometime in between then." CIA Director John Brennan, appearing on CBS's "Face the Nation" program, said data collection was "important to American lives" and that being without them could mean missing warning of a big attack on the United States.     Under the USA Freedom Act, the telephone records would be held by telecommunications companies, not the government, and the NSA would have to query them to look for specific data.    The existence of the NSA program was revealed by former contractor Edward Snowden in 2013, prompting calls for reform. (Additional reporting by Bill Trott and Warren Strobel; Editing by Frances Kerry and Crispian Balmer)

A $100,000 check awaits mystery recycler of rare Apple 1 computer

A $100,000 check is waiting for a mystery woman who donated a rare Apple 1 computer to a Silicon Valley recycling firm.CleanBayArea in Milpitas, California, said on its web site that a woman in her 60s dropped off some electronic goods in April, when she was cleaning out the garage after her husband died.The boxes of computer parts contained a 1976 Apple 1, which the recycling firm sold for $200,000 in a private auction. The recycler's policy is to split the proceeds 50-50 with the person who donated the equipment. Apple co-founder Steve Wozniak built the computers in 1976 and sold them for $666.66 each. Only a few dozen of the groundbreaking home computers are known to still exist."We thought it was fake. It was real," CleanBayArea Vice President Victor Gichun told NBC news. He said he remembers what the donor looks like and all she has to do is show up. "Tell this lady to please come over to our warehouse in Milpitas again," Gichun said. "And we'll give her a check for $100,000." (Reporting by Fiona Ortiz in Chicago; Editing by Rosalind Russell)

U.S. to bring Japan under its cyber defense umbrella

The United States will extend its cyber defense umbrella over Japan, helping its Asian ally cope with the growing threat of online attacks against military bases and infrastructure such as power grids, the two nations said in a joint statement on Saturday. "We note a growing level of sophistication among malicious cyber actors, including non-state and state-sponsored actors," they said in a statement released by the U.S.-Japan Cyber Defense Policy Working Group, which was established in 2013.Cybersecurity is a key area where Japan and the United States are deepening their military partnership under a set of new security guidelines released in April, that will also integrate their ballistic missile defense systems and give Tokyo a bigger security role in Asia as China's military power grows. Both the United States and Japan are wary of cyber threats, including potential attacks from China or North Korea. While the United States is investing heavily in building a force to counter and retaliate against online attacks, Japan, which hosts the biggest U.S. military contingent in Asia, has been slower to buttress its cyber defenses. The Japanese military's cyber defense unit has around 90 members, compared to more than 6,000 people at the Pentagon, a Japanese Defense Ministry official said at a briefing on Thursday. Japan is trying to catch up as it prepares to host the 2020 Olympics in Tokyo and with cyber attacks on the rise. Assaults on government websites are now being detected ever few seconds, according to Japanese cyber defense experts. In the statement on Saturday, Japan's defense ministry pledged to "contribute to join "efforts for addressing various cyber threats, including those against Japanese critical infrastructure and services utilized by the Japan Self-Defense Forces and U.S. Forces." U.S. Defense Secretary Ash Carter, who met his Japanese counterpart Gen Nakatani at the Shangri-La Dialogue in Singapore on Saturday, unveiled a more muscular military cyber strategy in April that stressed an ability to retaliate with cyber weapons. That strengthened deterrence comes in the wake of high-profile attacks against corporations including the hacking of Sony Pictures Entertainment last year, which the U.S. blamed on North Korea.China's Defense Ministry expressed concern about the new strategy saying it would worsen tension over Internet security. China is frequently accused by the U.S. of being engaged in widespread hacking attacks, charges Beijing denies. (Reporting by Tim Kelly; Editing by Rachel Armstrong)

Rollback of U.S. spy powers would mark post-9/11 watershed

A National Security Agency (NSA) data gathering facility is seen in Bluffdale, about 25 miles (40 km) south of Salt Lake City, Utah May 18, 2015.

/Jim Urquhart

At 3:59 p.m. EDT on Sunday, the National Security Agency and telecommunications companies will begin mothballing a once-secret system that collected Americans' bulk telephone records, shutting down computers and sealing off warehouses of digital data.If the U.S. Congress fails to act, key provisions of the USA Patriot Act will lapse in a watershed moment in the post-Sept. 11, 2001, era. Intrusive government powers, created and wielded in the name of preventing another mass-casualty terrorist attack, would be at least partly scaled back, proponents and critics of the surveillance say.The Federal Bureau of Investigation, for instance, will no longer be able to employ "roving wiretaps" aimed at terrorism suspects who use multiple disposable cell phones, and will have more difficulty seizing such suspects' and their associates' personal and business records."We're past the immediate aftermath of the 9/11 attack. And we can look at these issues more calmly," said Peter Swire, who served on a review panel appointed by President Barack Obama after former contractor Edward Snowden's 2013 revelations of vast NSA surveillance.With the clock ticking, a coalition of Senate Republican libertarians and security hawks has blocked action on new legislation known as the USA Freedom Act that would reform the bulk telephone data program but not kill it.Libertarians want the program ended altogether, while the hawks argue it should be maintained as it is now.Currently, telecom providers are legally required to send phone records to the government. The USA Freedom Act would require private firms to hold the data, which the NSA could search with court authorization.The U.S. Senate is scheduled to hold a special session to consider the legislation at 4 p.m. on Sunday - just as security officials say they have to begin shutting the NSA program down to meet a midnight deadline. The USA Freedom Act already has passed the House of Representatives and has Obama's strong support.It is unclear if supporters of the Freedom Act can get the 60 votes needed in the Senate to move forward. A previous attempt on May 23 fell short, 57-42, but the bill's backers have been pushing hard to win over three more senators.How badly U.S. counter-terrorism efforts would be disrupted by even a temporary suspension of the telephone data collection and other legal authorities is disputed.The Obama administration is issuing increasingly dire warnings, sometimes citing Islamic State's calls on its supporters to conduct attacks wherever they live. "The intelligence community will lose important capabilities," Director of National Intelligence James Clapper said in a statement. "At this late date, prompt passage of the USA Freedom Act by the Senate is the best way to minimize any possible disruption of our ability to protect the American people."But many experts and civil liberties advocates say that U.S. intelligence and law enforcement authorities have other powerful - and less objectionable - tools to investigate and prosecute militant plots. Those include court orders, subpoenas and other forms of electronic surveillance."The government still has expansive ... law enforcement tools that will remain in place," said Anthony Romero, executive director of the American Civil Liberties Union. Groups as diverse as the left-leaning ACLU and the conservative Tea Party Patriots argue the telephone data program in particular is unconstitutionally broad, targeting the communications of millions of innocent Americans. Earlier this month, a federal appeals court ruled the program was illegal, going beyond what the Patriot Act authorized. The court declined to halt the program, saying it would give Congress a chance to act. "COLLECTING THE DOTS"The bulk telephone records program, first exposed to journalists by Snowden, collects metadata - data that provides information about other data - about U.S. citizens' phone calls. This includes the number dialed and time and length of the call but not the content of the conversation.Senior U.S. officials have said the surveillance fills a critical gap, determining whether a militant overseas is communicating with someone inside the United States.Swire, a privacy and cyber security expert and a professor of law and ethics at the Georgia Institute of Technology, said the 2013 presidential panel he served on "looked at the classified file and concluded that telephone metadata had not been essential to preventing any attack." Current and former U.S. intelligence officials say that is the wrong yardstick to use."Very seldom do we have one (single) piece of information" that prevents a terrorist attack, said Richard Schaeffer, a former top NSA official. "It is literally collecting the dots" and piecing them together, he said.Current U.S. officials seem even more chagrined about losing other powers that could expire at midnight Sunday. Those, they argue, were never controversial but have been caught up in the backlash against government intrusion.One, known as the "lone wolf" provision, allows the FBI to seek a wiretap on an individual if that person is suspected of terrorist activity, even if the individual cannot be linked to a specific group. Law enforcement officials have never used that power. But, a senior U.S. official said, "this is not a tool that we want to see go away." The provision giving the FBI expanded powers to seek a terrorism suspect's records such as hotel stays and car rentals is used about 200 times per year, officials said.The roving wiretap provision, in which a court authorizes tapping an individual's communications regardless of the device used, rather than a specific phone number, has been used most commonly in law enforcement rather than terrorism cases, said Stewart Baker, a former top Homeland Security official."But it's not an authority we would want to lose," he said. (Additional reporting by Patricia Zengerle and Richard Cowan; Editing by Leslie Adler)

Cypress ups ISSI buyout offer to $20.25 per share, beats Uphill deal

Cypress Semiconductor Corp raised its offer to buy Integrated Silicon Solution Inc to $20.25 per share, beating Uphill Investment Co's increased offer made earlier on Friday. The offer is the latest step in a battle to acquire ISSI.Uphill had raised its original offer to $20 per share from $19.25, to which ISSI had agreed.That bid came after ISSI had announced it received an offer from Cypress earlier this month for $19.75 per share. Cypress, in a letter to ISSI's board, said it looks to compete better with full service global memory chip manufacturers following the deal. ISSI had originally agreed in March agreed to be acquired by a Chinese consortium led by Summitview Capital for $19.25 per share. ISSI's shares closed at $20.52 share on the Nasdaq on Friday. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Leslie Adler)

Silk Road website creator gets life term for drug plot

The accused mastermind behind the Silk Road underground website was sentenced on Friday to life in prison for orchestrating a scheme that enabled more than $200 million of anonymous online drug sales using the digital currency bitcoin.Ross Ulbricht, 31, was sentenced by U.S. District Judge Katherine Forrest in Manhattan after a federal jury in February found him guilty of charges including distributing drugs through the Internet and conspiring to commit computer hacking and money laundering."What you did was unprecedented," Forrest said. "And in breaking that ground as the first person, you sit here as the defendant having to pay the consequences for that."Ulbricht stood silently as Forrest announced the sentence, which also included an order to forfeit $183.9 million.Outside of court, Joshua Dratel, his lawyer, promised an appeal, calling the sentence "unreasonable, unjust and unfair."A sniffling Ulbricht, who had admitted to creating Silk Road but denied wrongdoing at trial, told the judge before being sentenced that, contrary to what the prosecutors argued, he did not build Silk Road out of greed."I wanted to empower people to make choices in their lives and have privacy and anonymity," he said.Serrin Turner, a prosecutor, said Ulbricht was like any drug other kingpin, having fantasized about becoming a billionaire through his criminal enterprise and taking extreme steps, including soliciting murders, to protect it. "This was not some disinterested do-gooder," he added.Silk Road operated for more than two years, allowing users to anonymously buy drugs and other illicit goods and generating over $214 million in sales in the process, prosecutors said.They said Ulbricht ran Silk Road under the alias Dread Pirate Roberts, a reference to a character in the 1987 movie "The Princess Bride."The website relied on the Tor network, which lets users communicate anonymously, and accepted bitcoin as payment, which prosecutors said allowed users to conceal their identities and locations. Prosecutors said Ulbricht, who grew up in Austin, Texas, took extreme steps to protect Silk Road, soliciting the murders of several people who posed a threat. No evidence exists the murders were carried out.The online black market was shutdown in October 2013, when authorities seized the website and arrested Ulbricht at a San Francisco library.Prosecutors say Silk Road became a blueprint for other so-called "dark market" websites that allow illegal drug sales, a phenomenon law enforcement agencies continue to battle."Ulbricht went from hiding his cybercrime identity to becoming the face of cybercrime and as today’s sentence proves, no one is above the law," Manhattan U.S. Attorney Preet Bharara said in a statement. At trial, Dratel said his client had indeed created what he intended to be a "freewheeling, free market site" where all but a few harmful items could be sold.Dratel said Ulbricht handed off the website to others after it became too stressful, and was lured back toward its end to become the "fall guy" for its true operators.Ahead of sentencing, prosecutors urged Forrest to take into account how at least six people died from overdoses on drugs linked to Silk Road. The parents of two of them spoke at the hearing.One was a man who identified himself only as Richard, whose son, named Bryan B. in court papers, overdosed in Boston in 2013 using heroin authorities said was bought on Silk Road."He did not consider the impact on society of the expansion of the market for deadly drugs," the father told Forrest.Ulbricht, who appeared in court in blue jail clothing, apologized to the families, saying he never wanted to harm anyone. He said he had ruined his life."I wish I could go back to convince myself to take a different path," he said. "But I can't do that."The case is U.S. v. Ulbricht, U.S. District Court, Southern District of New York, No. 13-06919.

Silk Road website creator gets life in prison for drug plot

The homepage to Silk Road 2.0, allegedly an underground drug market, is seen in a screenshot after it was closed by U.S. authorities November 6, 2014.

/Staff

The accused mastermind behind the underground website Silk Road was sentenced on Friday to life in prison for orchestrating a scheme that enabled more than $200 million of anonymous online drug sales using the digital currency bitcoin.Ross Ulbricht, 31, was sentenced by U.S. District Judge Katherine Forrest in Manhattan three months after a federal jury found him guilty of charges including conspiracy to commit drug trafficking, money laundering and computer hacking."There must be no doubt that lawlessness will not be tolerated," Forrest said about Ulbricht, who was also ordered to forfeit $183.9 million.Ulbricht had admitted to creating Silk Road, but denied wrongdoing. He is expected to appeal.Ulbricht, who sniffled while speaking, told the judge that, despite the government's contention, he did not build Silk Road for greed."I wanted to empower people to make choices in their lives and have privacy and anonymity," he said.However, he recognized he had ruined is life by breaking the law, even if he disagreed with it "I wish I could go back to convince myself and take a different path," he said. "But I can't do that."Serrin Turner, a prosecutor, had sought a lengthy prison sentence above the 20 year mininum. While he acknowledged Ulbricht's politics might have factored into his motivations, Turner said "he did not do it for idealistic motive," but to make money. "This was not some disinterested do-gooder," he said. "What he did was allow anyone anywhere in the world to obtain any drug they wanted as long as they had a computer and shipping address."If he wanted to pursue a political agenda, he could have done so through the political process." Silk Road operated for more than two years, allowing users to anonymously buy drugs and other illicit goods and generating over $214 million in sales in the process, prosecutors said.The online black market was shutdown in October 2013, when authorities seized the website and arrested Ulbricht at a San Francisco website.Prosecutors said Ulbricht operated the website under the alias Dread Pirate Roberts, a reference to a character in the 1987 movie "The Princess Bride."The website relied on the Tor network, which lets users communicate anonymously, and accepted bitcoin as payment, which prosecutors said allowed users to conceal their identities and locations. Prosecutors said Ulbricht, who grew up in Austin, Texas, took extreme steps to protect Silk Road, soliciting the murders of several people who posed a threat. No evidence exists the murders were carried out.At trial, Joshua Dratel, his lawyer, said Ulbricht had indeed created what he intended as a "freewheeling, free market site" where all but a few harmful items could be sold.Dratel said Ulbricht handed off the website to others after it became too stressful, and was lured back toward its end to become the "fall guy" for its true operators.In a letter filed in court last week, Ulbricht asked for a sentence that would leave a "small light at the end of the tunnel.The case is U.S. v. Ulbricht, U.S. District Court, Southern District of New York, No. 13-06919. (Editing by Andre Grenon)

TCV seeks to sell stake in marketing firm Merkle: sources

Technology Crossover Ventures (TCV) is exploring a sale of its minority stake in Merkle Inc, in a deal that could value the fast-growing marketing technology company at more than $1 billion, according to people familiar with the matter.Boutique advisory firm Evercore Partners Inc has been hired to assist on the sale, the people said this week, asking not to be named because the matter is private. Merkle has around $80 million in annual earnings before interest, taxes, depreciation, and amortization, the people added. The exact size of TCV's stake in Merkle could not be learned, but two of the people said it accounted for more than a quarter of the company's equity. Merkle's management has owned most of the company since 1988.A spokesman for TCV, a late-stage venture capital firm, declined to comment. Merkle and Evercore did not respond to requests for comment. Columbia, Maryland-based Merkle consults companies on how to reach their customers better through digital strategy, measuring marketing data and providing customer insights. It counts Dell Inc, GEICO, DirecTV, Google Inc, Microsoft Corp, Nestle's Nespresso and Hearst among some of its clients. Merkle recorded $382 million in revenue last year, up from $315 million in 2013, according to its website. Chief Executive David Williams told the publication Advertising Age in April that the company is aiming to generate $500 million in revenue this year. TCV invested $75 million in Merkle in 2010, according to a filing at the time. (Reporting by Liana B. Baker and Greg Roumeliotis in New York; Editing by Christian Plumb)

Airbus Group starts $150 million venture fund, Silicon Valley base

People are silhouetted past a logo of the Airbus Group during the Airbus annual news conference in Colomiers, near Toulouse January 13, 2015.

/Regis Duvignau

Airbus Group announced the creation of a $150 million venture capital fund and said it had hired a Google executive to run a new center in Silicon Valley as it seeks to wave a digital wand over its heavy-manufacturing culture.The planemaker said on Friday that Airbus Group Ventures would invest in "disruptive and innovative" technologies worldwide. It will be headed by Tim Dombrowski, 54, formerly a partner at venture capital firm Andreessen Horowitz.The European group also said it had recruited Google executive and former U.S. aeronautics researcher Paul Eremenko, 35, to run an innovation center in Silicon Valley.Airbus Group Chief Executive Tom Enders announced the center's creation on Wednesday, saying it would provide promising avenues for technology it might otherwise miss.It is the latest evidence of efforts by planemakers to woo technologists as potential partners and comes weeks after Enders took the company's top management team to California to see what lessons could be learned from the digital revolution. Enders was quoted as saying after a previous visit to Silicon Valley last year that the aerospace industry must work more closely with high-tech companies - some of which, like Google, are encroaching on its turf through drone projects.Boeing's Chief Executive Jim McNerney said last year it wanted it to be more like Apple in the way it innovates, rather than doing a "moonshot" development every 25 years. Both planemakers have talked of the need to introduce improvements more quickly, without waiting for all-new plane developments that take years and cost around $15 billion.Though the highly safety-regulated and capital-intensive aerospace industry will always be conservative about the major bets that drive plane developments, Enders wants Airbus to learn to act "more quickly and with more courage", an aide said.Aerospace companies say they are increasingly thinking about software rather than hardware throughout their businesses. Although next month will still see hundreds of jet orders at the Paris Airshow, the focus of competition between Airbus and Boeing is shifting quickly towards the way they build planes now that each has almost a decade's worth of orders to fulfill.On Thursday, Airbus presented to journalists its plans for a futuristic factory in which humans, robots and cobots - or collaborative robots - interact to make planes more smoothly and cheaply, but acknowledged it would not happen overnight. (Editing by Pravin Char)

Vodafone, Wind sign letter of intent for Italy fiber-optic network

Vodafone branding is seen outside a retail store in London November 12, 2013.

/Toby Melville

Britain's Vodafone and Vimpelcom's Italian mobile phone unit Wind have signed a letter of intent with shareholders of broadband firm Metroweb to build a fiber optic network in Italy, the companies said in a joint statement.The project is open to other phone operators and investors ready to pursue the goals the Italian government has set in a multi-billion euro plan to roll out a broadband network across the country, they said in the statement on Friday.A deal would put pressure on Telecom Italia, which is going ahead with its own investment plan to upgrade its copper network and bring faster Internet connections to Italian consumers. (Reporting by Danilo Masoni, editing by Valentina Za)

Apple buys German augmented-reality software maker Metaio

A man looks at his Apple iPad in front an Apple logo outside an Apple store in downtown Shanghai March 16, 2012.

/Aly Song

Apple Inc (AAPL.O) has acquired Metaio, a German company whose software melds the physical world and computer-generated elements into video displays, according to a corporate filing that surfaced on Thursday. The terms were not disclosed. Metaio's augmented-reality software is used in applications in retail, industrial and automotive markets. It is found in virtual product showrooms and in manuals by retailers such as IKEA [IKEA.UL]. It has also created visual guides for repairing complex industrial or automotive equipment.Augmented reality is software that overlays text or graphics on real-life images and objects, typically in video. The result can be viewed on television displays, smartphones, tablets or dedicated eye-goggles. It differs from virtual reality, which replaces real-world views with more or less completely simulated ones. A document filed with a Munich court showed that Apple is now the company's sole shareholder. Metaio's previous investors included Westcott LLC, the investment vehicle of entpreneur Carl Westcott, the founder of floral delivery firm 1-800-Flowers (FLWS.O), and Atlantic Bridge, a Silicon Valley-based growth equity technology fund. Neither firm was immediately available to comment. Metaio executives didn't respond to requests for comment and Apple declined to comment. "Apple buys smaller technology companies from time to time, and we generally do not comment on our purpose or plans," the company said in a statement.The roots of Munich-based Metaio go back to German carmaker Volkswagen (VOWG_p.DE), where Thomas Alt, its co-founder and chief executive, began developing augmented-reality applications in 2000. Analysts at Juniper Research expect that augmented-reality technology used in enterprises will increase tenfold to $2.4 billion from $247 million last year. Other companies in the emerging field include France's Total Immersion and UK-based Blippar, which last year bought Layar from the Netherlands. (Editing by Eric Auchard, Larry King)

Mobile apps turn bedroom traders into star professionals

When Noa Strijbos picks a financial asset to trade on her smartphone while taking her dog for a walk, almost 26,000 people pay close attention.The 30-year-old Dutchwoman is among the top-ranked traders on eToro.com, one of several mobile apps and websites that allow budding investors to copy the most successful trades out there rather than come up with their own.About 25,900 people follow her profile on eToro, which has 4.5 million members overall, while nearly 5,000 have signed up to become her "copiers" – essentially creating a giant investment club - routing funds directly in the hope of profiting automatically from her trades.Like any investment, this phenomenon has its risks and the stars of the apps can also lead people into losses, however good their records may appear.Regulators are cracking down on the murkier parts of tech-driven trading, and recently a trader from the London suburbs has been accused of helping to trigger the 2010 "flash crash" on the U.S. stock market. The trader says he did nothing wrong. Still, the story of Strijbos shows how the spread of smartphones has revolutionized trading for those who believe more in the wisdom of their peers than of fund managers who charge heavy fees. This trend should also open up investment decisions to the public, rather than keeping them hidden.eToro members can see each investment decision that Strijbos makes using the site. "Every bit of trading I do is online," said Strijbos, who pocketed nearly 600 percent profits last year. "The Internet has helped me in transforming myself into becoming a professional trader from an amateur observer in a few years."Online copy trading is growing fast but remains a niche in the overall retail trading market which, according to research and advisory firm Aite, is worth $2.8 trillion in the United States - with close to a quarter of U.S. adults who have Internet access trading online. Some industry estimates put the volume of retail trading in Britain at about $700 million a day. Online trading and information providers including Zulu Trade, Ayondo, Tradency and FxPro's Super Trader have popularized concepts such as "copy trading", all having a basic idea that investors can profit from the apparent wisdom and talent of others.Sites typically highlight their most successful members whose strategies others would want to copy. Less prominent are the members who have failed badly, possibly leading others astray.On the eToro network, investors can search and select other traders by assets, countries or performance etc., while another website gurufocus.com offers people the option to choose trading strategies of famous and successful fund managers.Even the professional asset-management industry is starting to take copycat trading strategies seriously, at a time when active fund managers face competition from passive exchange-traded funds that track market indexes for lower fees. One top European wealth management firm recently back-tested the investment strategies of star investors such as Warren Buffett, with a view to possibly incorporating them into their investments. "The (copycat) strategy often works," said a source familiar with the study.MULTIPLIER EFFECTMarket professionals naturally warn of the risks, with some saying amateurs copying trades of other novice players were prone to heavy losses because of the volatile nature of the markets. A bad decision by a top-ranked trader could have a multiplier effect on followers and spread losses far and wide."In some ways these tools help in democratizing market access, but equally there are inherent dangers in people trading underlying securities which they don’t really understand," Peter Dixon, equity strategist at Commerzbank, said. "People may get sucked into these kinds of trades and get their fingers badly burnt."However, top officials of many trading sites said they had safeguards in place. AlphaClone's chief executive Mazin Jadallah said it employed a hedging mechanism that is automatically triggered when an index falls below some technical levels, while eToro's founder and CEO Yoni Assia said it asks investors to specify in advance the percentage of losses they could bear.The relatively new trading apps and websites have grown rapidly. AlphaClone, which runs an exchange-traded fund (ETF) and also enables investors to invest in strategies derived from the holdings of top managers, has expanded five fold in the past 15 months and says JP Morgan, Constellation Wealth, Raymond James and RBC are its clients.Emails sent by to these companies asking their business ties with AlphaClone.com remained unanswered.Modern technology is increasingly being used to create new products for both novice and experienced investors. John Fawcett, founder and chief executive of Quantopian.com - which provides a platform to build, back-test against live or 13 years of data and execute algorithms - said its users included a defense contractor, a hedge fund executive and a telecom engineer.Careers as professional quantitative analysts, who use mathematics and statistics to come up with trading strategies, may even beckon. "We've even seen an industry outsider score a job as a 'quant' at a top hedge fund with his Quantopian track record," said Fawcett. (Editing by Lionel Laurent and David Stamp)

Alibaba courts more China bad debt managers for online auctions

The logo of the Alibaba Group is seen inside the company's headquarters in Hangzhou, Zhejiang province November 11, 2014.

/Aly Song

Huarong Asset Management Co Ltd is poised to become the second Chinese bad loan firm to auction soured loans online amid a push by the government to settle these debts as the economy slows, an executive at e-commerce giant Alibaba Group Holding Ltd said.Huarong is China's biggest bad loans firm by assets and one of four companies the government set up about a decade ago. China Cinda Asset Management Co, the second largest, earlier this year launched online auctions, selling some 24 million yuan of bad debts on Alibaba's online marketplace Taobao.Lu Weixing, who manages auctions on Taobao, said Huarong had also signed an auction agreement, and that the platform was also in talks with the other two asset managers - Orient Asset Management Co and Great Wall Asset Management Co."The market for asset management is booming," Lu told . China's economy is set to grow at its slowest pace in a quarter of a century, heightening the government's concern about bad debts especially in the banking sector, where non-performing loans are rising at their fastest rate since 2004, data from the China Banking Regulatory Commission shows.Commercial banks and asset management companies are "under huge pressure" to settle the debt pile, Lu said. On Thursday, Cinda offered nearly $7 billion in soured loans to investors in its largest ever public sale.At least 14 financial institutions, including China Merchants Bank Co, China Minsheng Banking Corp and Tianjin Financial Assets Exchange use Taobao to sell cars, real estate, wineries, factories, corporate shareholding, and land, the website shows. Courts and local authorities are also using the platform to sell assets: this month, the Shaanxi provincial government sold 171 cars confiscated in a nationwide corruption crackdown for just under 9 million yuan. The sale attracted nearly 7,000 bids.Earlier this month, Taobao also put up for auction a 16-century Italian castle and 103 apartments in Milan as part of a joint-effort between Alibaba and the Italian government. "The Chinese always like to buy real estate overseas," said Lu, adding Taobao was targeting more global auctions this year. (Additional reporting by Paul Carsten in BEIJING; Editing by Miral Fahmy)

Sany says diversifying into smartphones, as machinery demand slips

A man walks past a logo of Sany Group during a news conference in Beijing, October 18, 2012.

/Jason Lee

Chinese construction machinery maker Sany Group, which has been impacted by a sustained market slowdown, said it is venturing into smartphones, as part of a plan to diversify away from heavy machinery.Sany is the latest among several companies jumping into the local smartphone market. They include Chinese video site LeTV, Qihoo 360 Technology Co Ltd and Gree Electric Appliances Inc of Zhuhai.Plans by Sany to launch the SANYV8Pioneer 4G model were first revealed by users of WeChat, a popular social messaging app, this week, with sales of the 1,699 yuan ($273.97) handset to start on June 8. Xiang Wenbo, president of Sany Heavy Industry Co Ltd, which is part of Sany Group, confirmed the launch date and the pricing via his personal Weibo microblog account on Wednesday. He didn't reveal whether the Changsha-based firm would manufacture the handset itself, or the quantum of investment. Sany executives could not be reached on Friday for comment.Sany, Zoomlion Heavy Industry Science and Technology Co Ltd and other heavy equipment makers are diversifying into sectors unrelated to their core businesses as a slowing Chinese economy curbs demand for their products. Sany, which has already opened a bank, also has been investing in marine and port machinery, a sector now dominated by Shanghai Zhenhua Heavy Industry Co Ltd. Its sprawling marine machinery industry park in south China started operations earlier this month. (Reporting by Fang Yan and Matthew Miller in BEIJING; Editing by Muralikumar Anantharaman)

Toshiba says third-party accounting probe to take until mid-July

The logo of Toshiba Corp is seen at the company's Hydrogen Energy R&D Center during its opening ceremony in Tokyo April 6, 2015.

/Toru Hanai

Japanese industrial conglomerate Toshiba Corp said on Friday that an ongoing independent investigation into accounting irregularities was likely to last until mid-July, and that it was asking the government for an extension to the standard legal deadline for filing its annual report.Toshiba has not been able to close its books for the year that ended in March because of the investigation into its book-keeping, which it says likely led to profits being overstated by at least $415 million in recent years. The company's results for the full fiscal year would normally have been reported by mid-May, and the standard deadline for filing annual reports is end-June. It said it now expects to submit its annual report in August and announce its fiscal first-quarter results by September 14, a month later than the standard deadline for April-June earnings reports. The company plans to hold an annual general meeting on June 25 for shareholders to vote on appointing its board of directors, as well as an extraordinary meeting of shareholders after the third-party investigation is over, it said. (Reporting by Ritsuko Ando; Editing by Kenneth Maxwell)

Fingerprint Cards shares at record after Google tie-up

Swedish fingerprint sensor firm Fingerprint Cards said it had cooperated with Google on fingerprint recognition in the new Android software platform, as the U.S. software group looks to boost the use of fingerprint sensors on mobile phones.Fingerprint shares jumped to a record high and were up 5.1 percent by 0724 GMT. Google on Thursday previewed its new Android software for smartphones, tablets, watches and TVs at its annual developer conference in San Francisco. The new OS will be released later this year.Fingerprint said it had provided prototype devices, based on its FPC1020 and FPC1025 touch sensors, supporting Google in developing and integrating the capability into Android M. "It's a big step for the industry as there will be standardized support in phones for fingerprint sensors," Fingerprint Chief Executive Jorgen Lantto said. Such sensors could allow a phone user to avoid having to input a passcode while also increasing security as phones are increasingly used in retail and financial transactions.Lantto said Android M will mainly boost the market for fingerprint sensors in 2016 but could give some positive impact earlier. "This will not impact the market in the second quarter, but might give impact in the third quarter and the fourth quarter, but mainly in 2016 the market will become bigger," Lantto said.He repeated Fingerprint's forecast of revenue exceeding 1.5 billion Swedish crowns ($177 million) in 2015. ($1 = 8.4696 Swedish crowns) (Reporting by Olof Swahnberg; Editing by David Holmes)

Equinix agrees to buy Telecity Group for 2.35 billion pounds

U.S. data center company Equinix Inc (EQIX.O) said on Friday it had agreed to buy British peer Telecity Group (TCY.L) in a deal worth 2.35 billion pounds ($3.60 billion), creating the largest data center player in Europe.Equinix said the deal would see each Telecity Group shareholder receive 572.5 pence in cash for each share, a 27.3 percent premium to the firm's closing price on May 6 before talks were announced, as well as 0.0327 new Equinix Shares.Following completion of the deal Telecity Group shareholders will hold 10.1 percent of the combined company. (Reporting by Neil Maidment. Editing by Jane Merriman)

Vivendi to book 4.2 billion euro pre-tax gain on GVT sale

A woman walks walk past the main entrance of the entertainment-to-telecoms conglomerate Vivendi's headquarters in Paris April 8, 2015.

/Gonzalo Fuentes

French media group Vivendi said on Friday it would book a 4.2 billion euro ($4.6 billion) pre-tax gain from the sale of Brazilian telecommunications company GVT, which would help it pay interim dividends.The company said it had also received a 12 percent stake in Telefonica Brazil's Vivo and would exchange 4.5 percent for 8.3 percent of Telecom Italia's ordinary shares in the coming weeks."The closing of the sale of GVT and of the 20 percent interest in Numericable-SFR enables the Vivendi management board, in accordance with its commitment, to authorize in principle the payment of two interim ordinary dividends, each in the amount of 1 euro per share, in respect of 2015," Vivendi said in a statement. Vivendi sold its 20 percent stake in Numericable-SFR to billionaire Patrick Drahi earlier this year, via his holding company Altice and Numericable-SFR itself. (Reporting by Leigh Thomas; Editing by James Regan)

Creator of Silk Road website faces sentencing for drug scheme

A Bitcoin (virtual currency) paper wallet with QR codes and a coin are seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, May 27, 2015.

/Benoit Tessier

The accused mastermind behind the underground website Silk Road will be sentenced on Friday for orchestrating a scheme that enabled more than $200 million of anonymous online drug sales using the digital currency bitcoin.Ross Ulbricht, 31, faces up to life in prison after a federal jury in Manhattan found him guilty in February of charges including conspiracy to commit drug trafficking, money laundering and computer hacking.Prosecutors are seeking a sentence "substantially above" the 20-year mandatory minimum that U.S. District Judge Katherine Forrest must impose on Ulbricht, who admitted to creating Silk Road but denied wrongdoing.Ulbricht is expected to appeal his conviction. His lawyer declined comment ahead of sentencing. Silk Road operated for more than two years, allowing users to anonymously buy drugs and other illicit goods and generating over $214 million in sales in the process, prosecutors said. The online black market was shutdown in October 2013, when authorities seized the website and arrested Ulbricht at a San Francisco website.Prosecutors said Ulbricht operated the website under the alias Dread Pirate Roberts, a reference to a character in the 1987 movie "The Princess Bride."The website relied on the so-called Tor network, which lets users communicate anonymously, and accepted bitcoin as payment, which prosecutors said allowed users to conceal their identities and locations. Prosecutors said Ulbricht, who grew up in Austin, Texas, took extreme steps to protect Silk Road, soliciting the murders of several people who posed a threat. No evidence exists the murders were carried out.At trial, Joshua Dratel, his lawyer, said Ulbricht had indeed created what he intended as a "freewheeling, free market site" where all but a few harmful items could be sold.Dratel said Ulbricht handed off the website to others after it became too stressful, and was lured back toward its end to become the "fall guy" for its true operators. In a letter filed in court last week, Ulbricht urged Judge Forrest in sentencing him to leave a "small light at the end of the tunnel" and said he recognized Silk Road was a "very naive and costly idea.""In creating Silk Road, I ruined my life and destroyed my future," he wrote.The case is U.S. v. Ulbricht, U.S. District Court, Southern District of New York, No. 13-06919. (Editing by Andre Grenon)

Intel nears $15 billion deal to buy Altera: NY Post

The sign hanging outside the Intel booth is seen at the International Consumer Electronics show (CES) in Las Vegas, Nevada January 6, 2015.

/Rick Wilking (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY LOGO) - RTR4KAVS

Intel Corp (INTC.O) is close to a deal to buy smaller chip maker Altera Corp (ALTR.O) for about $15 billion, the New York Post reported.The deal price could be as much as $54 a share, a 15 percent premium over Altera's Thursday closing price of $46.97, the New York Post reported, citing a source close to the situation. (bit.ly/1Fk3FL4)"A deal is likely by the end of next week," the newspaper quoted the source as saying. The source also cautioned that the talks could still fall apart.Intel signed a standstill agreement earlier this year with Altera that expires on June 1, giving the world's largest chipmaker the option to launch a hostile bid after that, reported in April, citing sources. Altera in April rejected an unsolicited $54 per share offer from Intel following months of negotiations, the sources told .Avago Technologies Ltd (AVGO.O) agreed on Thursday to buy Broadcom Corp (BRCM.O) for $37 billion in the largest merger of chipmakers ever. The merger is the industry's second megadeal this year and is unlikely to be the last, analysts told .Intel and Altera could not be reached immediately for comments outside regular business hours. (Reporting by Subrat Patnaik and Rishika Sadam in Bengaluru; Editing by Anupama Dwivedi)

Daum Kakao buys Path assets for Indonesia growth, stock soars

South Korean messaging app operator Daum Kakao Corp said it has acquired social networking assets from U.S.-based Path Inc, giving it a strong presence in Indonesia and sending its shares surging 10 percent on its push to expand globally.While Daum Kakao owns South Korea's dominant chat app KakaoTalk, investors have been worried that KakaoTalk's global user base lags far behind rivals like Facebook Inc's WhatsApp and compatriot Naver Corp's Line."This acquisition marks the first of the many global business approaches Daum Kakao will take in the coming years," the company said in a statement, adding that in addition to acquisitions it would also explore investment and partnership opportunities.Daum Kakao will purchase social networking service Path which has 10 million monthly active users, most of them in Indonesia, making it one of the top three SNS services in the Southeast Asian country. It will also buy messaging app Path Talk. Terms of the deal were not disclosed."This deal establishes a new stronghold country and could generate further growth momentum in nearby countries," said Kyobo Securities analyst Lee Seong-bin. Efforts by Daum Kakao to date to grow in markets like Indonesia, the Philippines and Malaysia had failed to gain traction.In addition to strong position in Indonesia, Path has also been growing rapidly in Saudi Arabia. Daum Kakao's shares were trading at 117,700 won in afternoon trade. At one stage, it rose 12 percent to its highest level in more than two months. (Reporting by Se Young Lee; Editing by Edwina Gibbs)

Exclusive: FCC poised to side with Verizon, AT&T in airwaves spat

The Federal Communications Commission (FCC) logo is seen before the FCC Net Neutrality hearing in Washington February 26, 2015.

/Yuri Gripas

U.S. telecoms regulators are leaning toward rejecting a T-Mobile U.S. Inc (TMUS.N) request that more airwaves be set aside for smaller wireless companies like itself to bid on during a government auction next year, according to people familiar with the matter.Such a decision, which could be finalized in coming weeks, would end months of speculation and vigorous lobbying by the nation's No. 4 cellular operator, which wants the Federal Communications Commission to further limit how much spectrum dominant U.S. carriers Verizon Communications Inc (VZ.N) and AT&T Inc (T.N) can buy in the auction.The FCC voted last year to restrict the participation of Verizon and AT&T in the 2016 spectrum sale by reserving a piece of each market's airwaves for non-dominant carriers, but not to the extent sought by T-Mobile.The vote was something of a compromise among the FCC's Democrats, who wanted to give smaller carriers a leg up but also to ensure that restrictions on the big carriers would not cut the proceeds of the auction, expected to be the agency's largest.Though no recommendation has yet been prepared and the deliberations could still shift, the FCC staff's current thinking is that an adequate amount of spectrum has already been set aside for smaller carriers, according to the people familiar with the matter. Regardless, FCC Commissioner Jessica Rosenworcel, often the FCC's swing vote in the three-member Democratic majority, appears disinclined to revisit the current plan, those and other people also said. All sources spoke anonymously because the matter is not yet public. FCC spokesman Neil Grace said the FCC staff are working on various auction-related matters: "At this time, that preparatory work is active, remains ongoing, and no decisions have been made."For its part, T-Mobile is confident that the FCC "will do the right thing by consumers in this auction and make sure AT&T and Verizon don't further consolidate their control over wireless access to the Internet," Andy Levin, T-Mobile's senior vice president of government affairs, said in a statement.The auction will be a landmark one for the U.S. wireless industry as it will give participants their first chance since 2008 to buy low-frequency airwaves, highly prized for their ability to carry heavy data over long distances and through obstacles such as buildings. That capability makes them particularly attractive for companies trying to satisfy growing consumer demand for data-guzzling devices and applications.Last year's FCC vote largely limits Verizon and AT&T, which the telecoms watchdog estimates control almost two-thirds of the low-band spectrum across the country. The resulting rules reserve up to 30 megahertz, or less than half, of the spectrum in each market for non-nationwide carriers or companies with less than one-third of low-band spectrum there, such as Sprint Corp (S.N) and T-Mobile.T-Mobile, in a recently formed coalition with Sprint, Dish Network Corp (DISH.O) and advocacy and trade groups, has been pushing the FCC to raise that reserve to 40 megahertz, or at least half of the spectrum, arguing that larger blocks of frequencies are critical for them to compete with bigger rivals. Cable broadband company Charter Communications Inc (CHTR.O) has made a similar request to the coalition's, according to a regulatory filing disclosed this week. AT&T and Verizon have fought against the proposed change.Another FCC airwave auction in January raised more than $40 billion, setting a record and showcasing the wireless industry's hunger for spectrum. That auction surprised investors with a strong showing by Dish, whose partners scooped up $13 billion worth of spectrum.AT&T and Verizon spent the most in the sale, more than $18 billion and $10 billion, respectively.Dish and T-Mobile have both pledged to participate in next year's auction; however, Sprint's Chief Financial Officer Joe Euteneur earlier this month indicated that the company may decide to skip it, according to reports from a J.P. Morgan industry conference. (Reporting by Alina Selyukh, Editing by Soyoung Kim and Christian Plumb)

Exclusive: Equinix nears deal for Telecity - sources

U.S. data center company Equinix Inc is nearing a deal to acquire British peer Telecity Group Plc, according to people familiar with the matter, in a tie-up that would create the largest data center player in Europe. A deal could be announced as early as Friday, one of the people said. The negotiations are in the final stages but could still fall apart, the people added.The deal price could not be learned. Equinix had previously offered 2.3 billion pounds ($3.5 billion) to convince Telecity to enter into negotiations. Telecity shares ended trading in London at 1,090 pence on Thursday, giving it a market capitalization of $2.2 billion pounds. The sources asked not to be identified because the negotiations are confidential. Equinix declined to comment, while Telecity did not immediately respond to a request for comment.Founded in 1998, Equinix operates more than 100 data centers in 33 markets in five continents. It previously said that buying Telecity would give it more locations in Britain, including central London. It would also expand its footprint in cities such as Dublin, Milan, Istanbul, Stockholm, Helsinki and Warsaw. Telecity in February said it would buy Dutch rival Interxion Holding NV in a $2.2 billion all-stock deal. Equinix said earlier this month that acquiring Telecity would create a more compelling combination than the proposed merger with Interxion and would deliver greater value for Telecity shareholders.Based in Redwood City, California, Equinix spent $482 million on buying IXEurope, a European colocation company, in 2007. Equinix received a nod from the U.S. Internal Revenue Service on May 20 that it could convert into a real estate investment trust. (Reporting by Liana B. Baker in New York; Editing by Leslie Adler)

Avago, Broadcom deal could put pressure on Qualcomm

A man walks past Qualcomm stand while attending the Mobile World Congress in Barcelona March 3, 2015.

/Albert Gea

Avago Technologies Ltd's (AVGO.O) $37 billion deal to buy chipmaker Broadcom Corp (BRCM.O) creates new competitive challenges for Qualcomm and may force the world's largest mobile chip maker to radically rethink its own strategy.Qualcomm Inc (QCOM.O), which has dominated the market for connectivity chips on smartphones, has been looking to extend its reach into data centers and network infrastructure, but may find its way blocked by an enlarged competitor combining Avago's strength in storage and Broadcom's power in networking."Qualcomm has aspirations of moving into Intel's data center processor incumbency that the Avago storage and now enterprise networking (from Broadcom) capability directly overlays," said Drexel Hamilton analyst Richard Whittington. That could result in Qualcomm creating some sort of partnership with Intel Corp (INTC.O), he said, to combat the reach of the new company.Wall Street analysts generally cheered the deal on Thursday, despite some fretting about price, saying Broadcom's strength in wireless networking, WiFi and Bluetooth chips is a good complement to Avago's presence in industrial and wired devices.That presents a challenge to Qualcomm, which finds itself in a tough spot in the maturing microprocessor business, as smartphone makers such as Samsung (005930.KS), Apple Inc (AAPL.O) and Huawei 002502.SZ put more effort into producing their own chips. Now a Avago/Broadcom tie-up - which will take the name of Broadcom - potentially gives handset makers another viable supplier, giving them more leverage and putting even more pressure on Qualcomm, said IDC analyst Mario Morales."The other material impact will come from the adjacencies that Qualcomm is trying to enter now, the data center, infrastructure and the consumer area," he added. "We see a lot of synergy in the technology they (Avago) are buying."Qualcomm has hinted that it is looking at new areas. "I think there's going to be a tremendous amount of growth in computing and resources dedicated to supporting the cloud," Qualcomm chief executive Steve Mollenkopf said at last year's Consumer Electronics Show. "We look at that as an opportunity for a company like ours."The company did not immediately reply to a request for comment on its strategic plans in response to the Broadcom deal on Thursday.Avago/Broadcom is just the latest in a wave of heavyweight mergers and acquisitions reshaping the chip industry. NXP Semiconductors (NXPI.O) unveiled a deal in March to buy smaller peer Freescale Semiconductor Ltd (FSL.N). In the same month, reported that Intel was in talks to buy chipmaker Altera Corp (ALTR.O), which many investors expect to result in a deal soon.That backdrop of consolidation may force Qualcomm's hand."Either divest themselves of the business that they are in that is in direct competition with Broadcom - and now Avago - or find a way to grow their presence," said Chris Geier, partner-in-charge of Sikich Investment Banking, assessing Qualcomm's options. "They are going to have to do one or the other. The status quo for them at this point won't work." (Reporting by Bill Rigby, editing by G Crosse)

Google shows off virtual reality collaboration with GoPro

A GoPro Hero 3+ camera is seen at the Nasdaq Market Site before before GoPro Inc's IPO in New York City, June 26, 2014.

/Mike Segar

Action camera maker GoPro Inc and Google Inc introduced a virtual reality system using 16 cameras and Google software, sending GoPro shares up nearly 7 percent on Thursday. GoPro's helmet- and body-mounted video cameras are popular with adventure sports enthusiasts, and the new GoPro system will use Google’s new Jump technology to help create a 360 degree view. Google showed off the GoPro system at its developer conference in San Francisco. It did not say when the system will go on sale.Google also announced a new Photos app that helps users store and organize their images. Set to be released on Thursday, the app will let users back up and store unlimited photos and videos for free, said Anil Sabharwal, Google’s director of product management. The app also makes it easy for users to post their photos through social media and messaging services such as Twitter and WhatsApp.“We firmly believe you should be able to share photos and videos any way you want,” Sabharwal said. Available on Apple’s iOS system, Google’s Android system and the web, the app automatically organizes photos by the people, places and things depicted and also helps users create collages and movies. Google shares were nearly unchanged, down 7 cents to $554.18, while GoPro shares rose 6.6 percent to $56.81. (Additional reporting by Dan Levine; Editing by Christian Plumb)

GameStop revenue rises 3.2 percent

GameStop Corp, the world's largest retailer of video game products, reported a 3.2 percent rise in quarterly revenue, helped by the releases of games such as "Evolve" and "Mortal Kombat X". Net income rose to $73.8 million, or 68 cents per share, in the first quarter ended May 2, from $68 million, or 59 cents per share, a year earlier. Global sales rose to $2.06 billion from $2.00 billion. Comparable-store sales rose 8.6 percent. (Reporting By Lehar Maan and Anya George Tharakan in Bengaluru; Editing by Don Sebastian)

Vodafone investors open to Liberty deal

A truck carrying cars speeds past the headquarters of Vodafone in Madrid March 17, 2014.

/Susana Vera

Some of the biggest investors in Vodafone say they are open to a European tie-up with Liberty Global, as the British company is now in a stronger position to negotiate a deal with John Malone's cable group. Shares in the world's second largest mobile operator hit a 14-year high last week after Liberty's billionaire chairman Malone said a much-mooted union would be a "great fit" for his company.The positive reaction stands in contrast to previous occasions when talk of a deal sent shares in Vodafone tumbling on fears that it, as the suitor, would overpay in order to snare Liberty, Europe's biggest cable operator. "There is a strategic rationale to the combination of the assets," one top 10 shareholder in Vodafone told on condition of anonymity. "And until last week, the market assumption had been that Vodafone was coming from a position of weakness. What has changed with John Malone’s comments is that the conversation between the two parties might actually be a more equal one."Vodafone, which has 446 million mobile customers in countries ranging from Albania to Ireland, Qatar, India, South Africa and New Zealand, has lost ground to some rivals in an industry-wide trend to provide internet broadband, TV, home phone and mobile services in one bundled product, known as quad-play.It has already bought cable networks in Spain, Germany and Britain, with the higher-capacity network also helping to carry its mobile traffic. But some analysts believe a purchase of Liberty Global could enable the two companies to create the leading network in Europe in one go. Liberty has also recently bought a mobile operator in Belgium, in a change of strategy after previously suggesting it did not need to own its own mobile operations and could instead rent capacity from rivals. Liberty has a market capitalization of about $49 billion and Vodafone's is around 67.3 billion pounds.Analysts estimate that a deal could result in gross synergies of around 16 billion pounds ($24 billion). Malone's comment, in an interview to Bloomberg, that there would be "very substantial synergies" if they could find a way to combine the businesses "with respect to western Europe" has also sparked speculation that Vodafone could demerge its faster-growth emerging market operations to make it happen. Two top 20 investors at Vodafone and four smaller investors said they would not want to see the group feel pressured to offload assets quickly and cheaply to hold Malone's interest. "Liberty are still fractionally more in the driving seat but the deal makes strategic sense for both parties ... For the perfect quad play, they need Vodafone as much as Vodafone needs them," one investor said, who declined to be named in line with his firm's media policy."There's no way Vodafone should let go of the AMAP business purely in the hope of striking a deal. Everything would have to happen together," the investor said, in reference to Vodafone's Africa, Middle East and Asia Pacific business.BIG BARRIERS Some shareholders, who said they had raised the merger idea directly with the company in recent weeks, said executives were surprisingly open to talking about its merits and drawbacks. There are many barriers to the deal. The two companies only have overlap in a few countries, including Britain, Ireland, the Netherlands and Germany and of those, only two are big enough to warrant such a deal.Malone himself also noted that there are philosophical issues with the way the firms are run, with Vodafone relatively lowly leveraged and paying dividends, while Liberty has high debt and prefers buybacks. Vodafone, with its relatively corporate brand, also likes to tout its broad geographical spread to enable it to offer global coverage to multinational firms. Still, investors say Vodafone is looking at its options after Malone signaled the change of tone. If a full merger proved too complicated, the two sides could look at country by country deals such as in Britain where Vodafone could partner with Liberty's Virgin Media. "I would say that this has been prime focus in the Vodafone boardroom for some time now," said David Lis, chief investment officer in equities and multi assets at top 20 shareholder Aviva Investors. "They must have done a huge amount of work understanding Liberty. It is an open secret, it is much discussed that they are the last people who could do a deal if Vodafone are to bring their business to a wider platform."Given Vodafone's strategic challenges, dividend fans in its shareholder base are unlikely to oppose a sensibly structured deal that offers some token income, the investors said, confounding earlier speculation that many could balk at Liberty's high leverage and preference to reward with buybacks instead."It is starting to look like a company that is under a bit of pressure and a merger might alleviate some of that pressure," said Chris White, head of UK equities at Premier Asset Management, which is a Vodafone shareholder."But it would probably be dressed up with a dividend cut, in other words, Vodafone would start to be looked at as an equity growth company rather than an dividend income story."Vodafone declined to comment. ($1 = 0.6548 pounds) (Reporting By Sinead Cruise.; Writing by Sinead Cruise and Kate Holton. Editing by Jane Merriman)

Exclusive: FCC leans against new limits for Verizon, AT&T in 2016 U.S. auction

The Federal Communications Commission (FCC) logo is seen before the FCC Net Neutrality hearing in Washington February 26, 2015.

/Yuri Gripas

U.S. telecoms regulators are leaning toward rejecting a T-Mobile US Inc (TMUS.N) request that more airwaves be set aside for smaller wireless companies like itself to bid on during a government auction next year, according to people familiar with the matter.Such a decision, which could be finalized in coming weeks, would end months of speculation and vigorous lobbying by the nation's No. 4 cellular operator, which wants the Federal Communications Commission to further limit how much spectrum dominant U.S. carriers Verizon Communications Inc (VZ.N) and AT&T Inc (T.N) can buy in the auction.The FCC voted last year to restrict the participation of Verizon and AT&T in the 2016 spectrum sale by reserving a piece of each market's airwaves for non-dominant carriers, but not to the extent sought by T-Mobile.The vote was something of a compromise among the FCC's Democrats, who wanted to give smaller carriers a leg up but also to ensure that restrictions on the big carriers would not cut the proceeds of the auction, expected to be the agency's largest.Though no recommendation has yet been prepared and the deliberations could still shift, the FCC staff's current thinking is that an adequate amount of spectrum has already been set aside for smaller carriers, according to the people familiar with the matter. Regardless, FCC Commissioner Jessica Rosenworcel, often the FCC's swing vote in the three-member Democratic majority, appears disinclined to revisit the current plan, those and other people also said. All sources spoke anonymously because the matter is not yet public. FCC spokesman Neil Grace said the FCC staff are working on various auction-related matters: "At this time, that preparatory work is active, remains ongoing, and no decisions have been made."For its part, T-Mobile is confident that the FCC "will do the right thing by consumers in this auction and make sure AT&T and Verizon don't further consolidate their control over wireless access to the Internet," Andy Levin, T-Mobile's senior vice president of government affairs, said in a statement.The auction will be a landmark one for the U.S. wireless industry as it will give participants their first chance since 2008 to buy low-frequency airwaves, highly prized for their ability to carry heavy data over long distances and through obstacles such as buildings. That capability makes them particularly attractive for companies trying to satisfy growing consumer demand for data-guzzling devices and applications.Last year's FCC vote largely limits Verizon and AT&T, which the telecoms watchdog estimates control almost two-thirds of the low-band spectrum across the country. The resulting rules reserve up to 30 megahertz, or less than half, of the spectrum in each market for non-nationwide carriers or companies with less than one-third of low-band spectrum there, such as Sprint Corp (S.N) and T-Mobile.T-Mobile, in a recently formed coalition with Sprint, Dish Network Corp (DISH.O) and advocacy and trade groups, has been pushing the FCC to raise that reserve to 40 megahertz, or at least half of the spectrum, arguing that larger blocks of frequencies are critical for them to compete with bigger rivals. Cable broadband company Charter Communications Inc (CHTR.O) has made a similar request to the coalition's, according to a regulatory filing disclosed this week. AT&T and Verizon have fought against the proposed change.Another FCC airwave auction in January raised more than $40 billion, setting a record and showcasing the wireless industry's hunger for spectrum. That auction surprised investors with a strong showing by Dish, whose partners scooped up $13 billion worth of spectrum.AT&T and Verizon spent the most in the sale, more than $18 billion and $10 billion, respectively.Dish and T-Mobile have both pledged to participate in next year's auction; however, Sprint's Chief Financial Officer Joe Euteneur earlier this month indicated that the company may decide to skip it, according to reports from a J.P. Morgan industry conference. (Reporting by Alina Selyukh, Editing by Soyoung Kim and Christian Plumb)

Food supply fears whet appetite for Dutch farm technology

From the rooftops of Amsterdam to the expanses of Kazakhstan, Dutch technology is helping food producers to meet the needs of both gourmets and growing populations facing uncertain supplies.One of the most densely populated countries in the world, the Netherlands has long learnt to squeeze the maximum out of its limited farmland, making it the second-largest agricultural exporter after the United States.But now its exports of farm technology ranging from advanced greenhouse lighting and irrigation systems to drought-resistant seeds are also growing strongly. These are satisfying demand from countries which may be suffering shrinking water resources or energy shortages, or simply want to produce more of their own food rather than rely on imports in a turbulent world.Such technology is at work in some unlikely spots.When Chris Naylor needs some fresh ingredients for his Amsterdam restaurant, he heads upstairs to the roof garden far above the city's canals. There he collects herbs and vegetables sprouting from pre-planted trays, delivered weekly as seedlings and then watered by a computer-controlled irrigation system."We don't need to worry about weeding or planting," said Naylor, head chef at the Michelin-starred Restaurant Vermeer, where an average meal costs 125 euros (nearly $140). "We just get the fresh produce."Naylor's roof garden grows food for a demanding but small clientele. But Visser, the private company behind the irrigation system, is just one of a host of Dutch high-tech engineering firms that helped the country to produce agricultural exports worth 80.7 billion euros ($88 billion) last year.The Dutch began exporting tulip bulbs in the 17th century and more recently they developed expertise in eking high yields out of their scarce, low-lying land. The discovery of huge natural gas reserves in the late 1950s provided cheap energy to heat industrial-sized greenhouses.Today, many among the Dutch population of 17 million are skeptical about genetically-modified crops imported from the United States, and yet the country has enthusiastically embraced other advanced growing technologies.YIELDS JUMP Dalsem, another private Dutch firm, designs complete greenhouses, kitted out with lighting, climate control and power systems, allowing farmers to become ever more productive.Tomato yields in modern Dutch greenhouses can be 20 times higher than in the open field, up to 90 kg per square meter a year, according to Rabobank economist Cindy van Rijswick.However, many farm businesses are burdened with heavy debts after investing in ever more advanced, industrialized crop cultivation while their cost savings have often been passed on to powerful buyers such as supermarkets."Dutch farmers are very focused on efficient production," said van Rijswick. "But it's not always an advantage. You lower your cost price - but the customer also knows."With the pace of investment slowing at home, leading farm technology firms are seeking new business abroad.They are succeeding, albeit on a more modest scale than the food producers themselves. Exports of agricultural machinery have risen fourfold since 1996, reaching 1.8 billion euros ($1.95 billion) last year, with particularly strong sales to Iran, Brazil and Russia. Similar technology to that used on Naylor's roof garden is applied on a grander scale aboard. Customers include Russia and Saudi Arabia, which both want to grow more food locally.Moscow has responded to Western sanctions imposed on its oil, defense and financial industries over the Ukraine crisis by banning many food imports from the European Union and United States. Riyadh, perched in a region of deep instability, wants to ensure its supplies."In future we have to feed more people, and agriculture is becoming part of geopolitics," said Krijn Poppe, an economist at Wageningen University, a Dutch agricultural college."You see in a lot of countries there is interest in local production. In Russia it's influenced by a self-sufficiency policy," he said. "With Saudi Arabia it's driven by food security."PERMANENT SPRING Outside Wim Peters's greenhouses near the southeastern city of Eindhoven, the day is overcast and chilly but inside his tomatoes grow under dazzling lighting, with the climate controls permanently set at early spring. Bees from the greenhouses' hive flit from plant to plant, pollinating them.Energy saving, multi-colored LED lights made by Dutch company Philips accelerate growth and allow customized plant cultivation. "Red light is very important for photosynthesis and growth," Peters said. "But you need blue light to give the tomato a good shape."Produce ripens year-round in this environment, helping to make the Netherlands the world's second-largest exporter of tomatoes after Mexico, with nearly 20 percent of global trade.Abroad, tomatoes can grow in very different hostile environments using hi-tech greenhouses. In the Gulf, specialist glass protects plants from the desert sun while carbon dioxide from generator exhausts is piped to crops during the long nights of a north Russian winter, accelerating their growth.In 2000, the Netherlands exported just 6 million euros' worth of agricultural machinery to Russia. Exports peaked at 252 million euros before the global financial crisis hit Russia, pushing sales down to about 85 million last year.Exports to some Gulf and central and southern American countries have jumped as much as tenfold this century.Dalsem, the greenhouse maker, is doing far more business in central Asia too, building a five-hectare (12 acre) greenhouse in Kazakhstan in 2013 where vegetables can grow, no matter how extreme the weather outside."Our expertise extends beyond mere understanding the different climate zones and different crop types," said Pieter Dalsem, grandson of the company's founder. "We design and manufacture the greenhouse and all associated systems ourselves."($1 = 0.9218 euros) (Editing by Anthony Deutsch and David Stamp)

Food supply fears whet appetite for Dutch farm technology

From the rooftops of Amsterdam to the expanses of Kazakhstan, Dutch technology is helping food producers to meet the needs of both gourmets and growing populations facing uncertain supplies.One of the most densely populated countries in the world, the Netherlands has long learnt to squeeze the maximum out of its limited farmland, making it the second-largest agricultural exporter after the United States.But now its exports of farm technology ranging from advanced greenhouse lighting and irrigation systems to drought-resistant seeds are also growing strongly. These are satisfying demand from countries which may be suffering shrinking water resources or energy shortages, or simply want to produce more of their own food rather than rely on imports in a turbulent world.Such technology is at work in some unlikely spots.When Chris Naylor needs some fresh ingredients for his Amsterdam restaurant, he heads upstairs to the roof garden far above the city's canals. There he collects herbs and vegetables sprouting from pre-planted trays, delivered weekly as seedlings and then watered by a computer-controlled irrigation system."We don't need to worry about weeding or planting," said Naylor, head chef at the Michelin-starred Restaurant Vermeer, where an average meal costs 125 euros (nearly $140). "We just get the fresh produce."Naylor's roof garden grows food for a demanding but small clientele. But Visser, the private company behind the irrigation system, is just one of a host of Dutch high-tech engineering firms that helped the country to produce agricultural exports worth 80.7 billion euros ($88 billion) last year.The Dutch began exporting tulip bulbs in the 17th century and more recently they developed expertise in eking high yields out of their scarce, low-lying land. The discovery of huge natural gas reserves in the late 1950s provided cheap energy to heat industrial-sized greenhouses.Today, many among the Dutch population of 17 million are sceptical about genetically-modified crops imported from the United States, and yet the country has enthusiastically embraced other advanced growing technologies.YIELDS JUMP Dalsem, another private Dutch firm, designs complete greenhouses, kitted out with lighting, climate control and power systems, allowing farmers to become ever more productive.Tomato yields in modern Dutch greenhouses can be 20 times higher than in the open field, up to 90 kg per square metre a year, according to Rabobank economist Cindy van Rijswick.However, many farm businesses are burdened with heavy debts after investing in ever more advanced, industrialised crop cultivation while their cost savings have often been passed on to powerful buyers such as supermarkets."Dutch farmers are very focused on efficient production," said van Rijswick. "But it's not always an advantage. You lower your cost price - but the customer also knows."With the pace of investment slowing at home, leading farm technology firms are seeking new business abroad.They are succeeding, albeit on a more modest scale than the food producers themselves. Exports of agricultural machinery have risen fourfold since 1996, reaching 1.8 billion euros ($1.95 billion) last year, with particularly strong sales to Iran, Brazil and Russia. Similar technology to that used on Naylor's roof garden is applied on a grander scale aboard. Customers include Russia and Saudi Arabia, which both want to grow more food locally.Moscow has responded to Western sanctions imposed on its oil, defence and financial industries over the Ukraine crisis by banning many food imports from the European Union and United States. Riyadh, perched in a region of deep instability, wants to ensure its supplies."In future we have to feed more people, and agriculture is becoming part of geopolitics," said Krijn Poppe, an economist at Wageningen University, a Dutch agricultural college."You see in a lot of countries there is interest in local production. In Russia it's influenced by a self-sufficiency policy," he said. "With Saudi Arabia it's driven by food security."PERMANENT SPRING Outside Wim Peters's greenhouses near the southeastern city of Eindhoven, the day is overcast and chilly but inside his tomatoes grow under dazzling lighting, with the climate controls permanently set at early spring. Bees from the greenhouses' hive flit from plant to plant, pollinating them.Energy saving, multi-coloured LED lights made by Dutch company Philips accelerate growth and allow customised plant cultivation. "Red light is very important for photosynthesis and growth," Peters said. "But you need blue light to give the tomato a good shape."Produce ripens year-round in this environment, helping to make the Netherlands the world's second-largest exporter of tomatoes after Mexico, with nearly 20 percent of global trade.Abroad, tomatoes can grow in very different hostile environments using hi-tech greenhouses. In the Gulf, specialist glass protects plants from the desert sun while carbon dioxide from generator exhausts is piped to crops during the long nights of a north Russian winter, accelerating their growth.In 2000, the Netherlands exported just 6 million euros' worth of agricultural machinery to Russia. Exports peaked at 252 million euros before the global financial crisis hit Russia, pushing sales down to about 85 million last year.Exports to some Gulf and central and southern American countries have jumped as much as tenfold this century.Dalsem, the greenhouse maker, is doing far more business in central Asia too, building a five-hectare (12 acre) greenhouse in Kazakhstan in 2013 where vegetables can grow, no matter how extreme the weather outside."Our expertise extends beyond mere understanding the different climate zones and different crop types," said Pieter Dalsem, grandson of the company's founder. "We design and manufacture the greenhouse and all associated systems ourselves."($1 = 0.9218 euros) (Editing by Anthony Deutsch and David Stamp)