In This Update:
• Google, Verizon in Talks to Work on Phone Software
• Garmin Unveils Bid for Tele Atlas, Topping Offer From Rival TomTom
• Best Buy Teams with Mydeo on Video Service
• Casual Gaming Worth $2.25 billion, and Growing Fast
• OwnerIQ Raises $2mm for Online Owner Manual Network
• Google Sets Up Distribution Network for Social Networking Apps
• NBC Universal Expands Interests in Digital Media with IGA and 4INFO Deals
• Media M&A Slowing in Wake of Credit Crunch
• EveryScape Receives Funding for 3-D Mapping
• Prize-Based Sports Betting Site PicksPal Raises $3 Million Series C
• Congress Approves Seven-Year Internet-Tax Ban
• Study: People WILL Adopt Mobile Payments, it Just Takes Time

Google, Verizon in Talks to Work on Phone Software
BLOOMBERG
Google Inc. is in talks with Verizon Communications Inc., the second-largest U.S. telephone company, to work together on mobile-phone software and services, a person with knowledge of the discussions said. Google, owner of the world’s most popular Internet search engine, may build its own operating system software or programs for phones, said the person, who asked to remain anonymous because the talks are private. The Wall Street Journal reported that Google was also in talks with Sprint Nextel Corp., the third-largest U.S. phone company, about a partnership.
Source>

Garmin Unveils Bid for Tele Atlas, Topping Offer From Rival TomTom
WALL STREET JOURNAL
Garmin Ltd., the biggest U.S. maker of car-navigation devices, unveiled plans to offer $3.3 billion in cash for digital-map provider Tele Atlas NV, trumping a bid from rival TomTom NV. Felix Oberdorfer, an analyst with Fortis Bank, said he believes there is a “distinct likelihood” that TomTom will come back with a higher offer. “I think it’s in TomTom’s strategic interest to complete an acquisition. For Garmin, it’s more a defensive move,” he said.
Source>

Best Buy Teams with Mydeo on Video Service
REUTERS
Electronics retailer Best Buy Co launched an online service in partnership with video hosting site Mydeo on Tuesday, through which its customers can store and share home movies and videos via the Internet. Best Buy also said it will take a minority equity stake in UK-based Mydeo. The move was spurred by a rising demand for video services that offer privacy and ad-free sharing, particularly among families with children, said Best Buy Vice President Kevin Winneroski.
Source>

Casual Gaming Worth $2.25 billion, and Growing Fast
VENTUREBEAT
While the enthusiast gaming market is somewhat stagnant, the casual gaming market is on a spurt, growing 20 percent each year. Casual games are smaller and cheaper to develop than blockbusters like Halo, but also less lucrative. However, while the profits from casual games appear smaller, their low development costs and potentially high profit margins also provide a better opportunity for startups. “Casual gaming” is loosely defined as anything easy to learn that doesn’t require a big time commitment, like Solitaire, Bejeweled or Diner Dash. Games like those have 200 million active players, and pull in $2.25 billion yearly, according to a new Casual Gaming Association report.
Source>

OwnerIQ Raises $2mm for Online Owner Manual Network
ALARM:CLOCK
OwnerIQ has raised $2M from Atlas Venture, CommonAngels and the Massachusetts Technology Development Corporation. The company operates a network of Web sites that helps people find user manuals and other self-support information for consumer products. The company makes a living by selling advertising manufacturers and brand advertisers. OwnerIQ was founded by some of the management team from Bitpipe, an IT network that was sold to TechTarget (Nasdaq: TTGT) in late 2004. The OwnerIQ network has grown to more than 700K unique monthly visitors every month who come to access self-support information from more than 2,200 manufacturers.
Source>

Google Sets Up Distribution Network for Social Networking Apps
AP via PHYSORG
Google Inc. is setting up a distribution network for social networking applications, adding a new twist in the Internet search leader’s brewing rivalry with rapidly maturing startup Facebook Inc. Although Google confirmed its plans late Tuesday, its new social networking platform won’t be unveiled until later this week. Google hopes to build a one-stop shop for software developers who create tools that make it easier to share music, pictures, video and other personal interests on social networking sites like Facebook and News Corp.’s MySpace.com.
Source>

NBC Universal Expands Interests in Digital Media with IGA and 4INFO Deals
CLICKZ NEWS
While the industry’s eyes are on the beta launch of Hulu.com, the News Corp. and NBC Universal joint venture video platform, the peacock is also venturing to other digital platforms, namely in-game advertising and mobile. NBC Universal made 4INFO its preferred SMS and text messaging partner for ad-supported mobile messaging. In another move, NBC said it will sell dynamic in-game advertising inventory for IGA Worldwide as part of its TV 360 approach. 4INFO, mobile SMS and text message content advertising provider, becomes NBC Universal’s preferred mobile SMS advertising partner through an equity-based investment announced today. The deal includes 4INFO running ads on interactive SMS voting, fan clubs, and alerts for entertainment, news, local, sports, and cable entertainment properties.
Source>

Media M&A Slowing in Wake of Credit Crunch
ONLINE MEDIA DAILY
The mortgage crisis and resulting credit crunch haven’t impacted valuations yet, but have led to a slowdown in media M&A activity, according to a group of top industry dealmakers. Speaking Tuesday on a panel at the Future of Business Media conference in New York hosted by ContentNext Media, David Levin–CEO of the U.K.-based United Business Media–told conference-goers that while pricing of media deals hadn’t changed recently, spillover from the mortgage meltdown has diminished the “volume and velocity” of dealmaking. “Deals are getting stretched out and not completed as quickly,” said Levin, whose firm has handled 43 mid- to-small acquisitions in the last two years.
Source>

EveryScape Receives Funding for 3-D Mapping
NORTH EAST VENTURE CAPITAL
EveryScape, a Waltham-based developer of interactive, local search using 3D mapping and digital photography, on Monday announced the launch of “The Real World Online,” which allows users to explore recreations of cities created using stitched-together digital photos. Initially, EveryScape offers recreations of New York, Boston, Miami and Aspen, Colo. The company’s service lets users explore city landmarks, travel any street, find businesses by category or name, and look up any location, with links to complementary sites like Yelp, Flickr, YouTube, Wikipedia and Yahoo Local. EveryScape said it has received venture capital from Draper Fisher Jurvetson, Draper Fisher New England, Draper Atlantic and Launchpad Venture Group.
Source>

Prize-Based Sports Betting Site PicksPal Raises $3 Million Series C
PULSE2.0
PicksPal is a website where users predict the winners of sporting events and win free prizes by doing so. Essentially it is a fantasy football, baseball, basketball, and other sports website. Except in this case, users have an incentive to participate here rather than other websites.The company is based in Mountain View, Calif. PicksPal was founded by Tom Jessiman, a former CBS SportsLine.com, Sports.com, and Ziff-Davis senior executive. Since the company started in September 2005, they have raised $9 million. The first round of investment at $2 million was provided by Canaan Partners. The second round was $4 million and was provided by Canaan Partners and Bay Partners. And the most recent funding at $3 million was provided by Canaan Partners and Bay Partners once again.
Source>

Congress Approves Seven-Year Internet-Tax Ban
INFORMATIONWEEK
With only two days to spare, the U.S. House of Representatives voted 402-0 on Tuesday morning to extend the moratorium on state and local Internet taxes. The measure now goes to President Bush, who is expected to sign it in time to meet Thursday’s deadline. The move was applauded by Internet service providers, wireless carriers, and other Web companies that said that prices for Web access could shoot up as much as 17% without it. Originally passed as the 1998 Internet Tax Freedom Act, the ban was extended to Nov. 1, 2007 as the Internet Tax Nondiscrimination Act of 2004. The new bill prohibits “bit taxes” and the like through 2014.
Source>

Study: People WILL Adopt Mobile Payments, it Just Takes Time
INTOMOBILE
New forecasts from Juniper Research reveal people will adopt mobile payment systems, it just takes time. According to the research company, around 52 million consumers will utilize such technologies as NFC (Near Field Communication) and other physical mobile payment methods to pay for everyday goods and services by 2011, driving the mobile payments market to $11.5bn. By 2011, around 12% (nearly 470 million) of the total mobile phones in circulation will be NFC-enabled, thereby providing a significant marketplace for retailers to offer goods via mobile payment applications. So far, industry players in Far East and the U.S. have been most receptive to the idea of using RFID or NFC to facilitate mobile payments for physical goods and services.
Source>

Tags: Boston, Brand, CBS, Facebook, Google, Halo, Hulu, Local, Massachusetts, Music, MySpace, NBC, New England, RIM, Social Networking, Sprint, VC, Venture Capital, Verizon, Video, Yahoo, YouTube