Business Tech

On2 Technologies has filed an update with the SEC on its proposed merger with Google, hoping to put to rest some key questions.

On2, which makes video compression software, announced Monday that the update includes certain key highlights about the merger and some frequently asked questions.

On2 agreed on August 5 to be acquired by Google for $106.5 million, a deal already approved by its board of directors. The terms call for each share of On2 to be exchanged for 60 cents worth of Google common stock.

With its board anxious for investors to approve the deal, On2 outlined some of the risks to itself and to shareholders if the acquisition is prevented. On2's merger-related expenses have already exceeded $2 million, an amount it would be responsible for if the deal is stopped, it said. With cash reserves of only $2.2 million, such a debt could certainly hurt the company.

Without Google's acquisition, On2 said it might have to grab additional financing to run its business, which could include the sale of certain assets, the issuing of debt, or the release of even more shares.

On2 also admitted that it's had trouble hiring and retaining skilled, qualified employees, a challenge that might be resolved if employees knew they'd be working for a Google instead. Otherwise, if the merger does not move forward, On2 believes its revenues would be impacted by its failure to attract or keep good employees.

To address any conflicts of interest, On2 said none of the members of its board would serve as directors, officers, or employees of Google or receive any money from Google in connection with the merger.

On2 also released an FAQ, hoping to address any concerns on the part of shareholders. Since the Google offer, the board has received no other offers or inquiries from other firms about an acquisition, the company said. The FAQ also goes into great detail about On2's board and key executives and their involvement in the merger.

On2's board has set a special meeting for December 18 for shareholders to vote on the deal, and is urging them to approve it. Proxy cards have also been sent out. If the majority of stockholders okay the merger and all other conditions are met, then it should become effective within two days after the meeting, said On2. Google has said it plans to make On2's technology part of its own Web platform.

The merger initially triggered some On2 shareholders to file lawsuits against the company in August, alleging that the deal undervalued On2 and that certain provisions prevented On2's board from considering other offers. But those suits were settled on October 26, though are currently awaiting final approval by the court.

Under terms of a memorandum of understanding in the settlement, On2 agreed to provide additional disclosures in its final proxy statement and prospectus. However, On2 said the settlement implied no wrongdoing on its part, there was no monetary damage, and the company would have released the same information in its proxy statement regardless of the lawsuits.

IBM will release a radical new chip next year that will go into a University of Illinois supercomputer in a quest to build what may become the world's fastest supercomputer.

That university's supercomputer center is a storied place, home to both famous fictional and real supercomputers. The notorious HAL 9000 sentient supercomputer in "2001: A Space Odyssey" was built in Urbana, Illinois, presumably on the University of Illinois Urbana-Champaign campus.

Though not aspiring to artificial intelligence, the IBM Blue Waters project supercomputer, like the HAL 9000 series, will be able to do massively complex calculations in an instant and, like HAL, be built in Urbana-Champaign. It is being housed in a special building on the Urbana-Champaign campus specifically for the computer that will theoretically be capable of achieving 10 petaflops, about 10 times as fast as the fastest supercomputer today. (A petaflop is 1 quadrillion floating point operations per second, a key indicator of supercomputer performance.)

Part of the National Center for Supercomputing Applications (NCSA) at the University of Illinois, it will be the largest publicly accessible supercomputer in the world when it's turned on sometime in 2011.

Supercomputers are essentially a large collection of microprocessors acting in concert on a complex problem. As processor designs go, the upcoming Blue Waters' IBM Power7 processor--due in the first half of 2010--is a big step for IBM: the processor integrates the features of a chip used in its "Roadrunner" supercomputer, which has often been ranked as the fastest supercomputer in the world. Power7 fuses the flagship Power chip design with key technology from a separate "Cell" processor--the latter was part of IBM's Roadrunner system at the Los Alamos National Laboratory, according to Bradley McCredie, an IBM Fellow in the Systems and Technology Group.

"We took some of that genetic material from the Cell program--ways to do floating point (calculations)--and embedded that right into the Power7 core," McCredie said in an interview with CNET.

But that's not the only thing that makes the Power7 chip special. It integrates eight processing cores in one chip package and each core can execute four tasks--called "threads"--turning an individual chip into a virtual 32-core processor. As a yardstick, Intel's high-end Xeon processors typically have two threads per processing core.

IBM is also using novel memory technology. Widely used "static" RAM memory, used as the on-chip memory in almost all processors today, can add as much as a billion transistors to high-end processors. IBM wanted to avoid these ballooning--and costly--chip counts and elected to use a technology called E-DRAM, keeping the total number of transistors to 1.2 billion. "The equivalent number of transistors if we had done all of the cache in (static RAM) is well in excess of two billion," McCredie said.

And the chip's speed? Between ... Read more

The trend-setting MacBook Pro and Air both now face tough competition from Hewlett-Packard, which has the resources to match, and in some cases exceed, Apple laptop designs.

I will expand very briefly on a previous post where I compared, on technological merits, the 13-inch Apple MacBook Pro and Air laptops with an HP Envy 13 in response to some of the comments attached to the post.

I had stated, as an opinion, that the aluminum-clad HP Envy 13 had eclipsed Apple MacBooks technologically in some crucial areas. Namely, processors offered, screen resolution, graphics, and battery life.

The assertion that the HP Envy 13 has surpassed, in some important respects, the MacBook Air and 13-inch MacBook Pro in technology shouldn't be that surprising considering the financial and technological resources that HP has.

Companies like HP and Dell bifurcate their lineups into inexpensive (typically retail consumer models) and more expensive (often business models). Some models are of decidedly lower quality than Apple--as many comments quickly point out--but some are equal to or better than a roughly equivalent Apple laptop both in quality and technology.

The Envy 13--which is HP's entry into the luxury laptop category--falls into the better-than-Apple-laptop-technology category, in my opinion. The luxury Adamo line from Dell is also making a play to, at the very least, achieve parity with Apple's MacBook line.

Again, this is an opinion, not a be-all, end-all verdict on the fate of Apple. And not a review per se that gets into benchmarks. I'm just looking at the raw technology.

Opinion pieces invariably elicit strong counter arguments--not to mention strong opinions (or invective). Especially when Apple is involved.

You wouldn't necessarily expect it, but Avast and Google Chrome might be the next peanut butter-and-jelly combo in the software world. Google's nascent browser has paired with one of the most popular free security programs in the world so that when users run the Avast installer on a computer that has neither Chrome nor Avast, they'll be offered a chance to install Chrome simultaneously. This is the first such bundling for Avast in its 21-year existence.

The Chrome option in the Avast installer does two things differently from the more familiar opt-out user experience that many programs provide in an installer in exchange for financial sponsorship. For one thing, the Chrome window only turns up if you don't already have it installed, but more importantly, it forces users to actively choose installation. Neither the "yes, install" nor the "no, don't install" radio buttons are checked by default. Of course, users are forced to check off "no" if they don't want it, but this should dramatically cut down on the incidence of accidental installations that tend to plague otherwise-similar piggybacking installs.

The Avast/Chrome combo may strike some as an odd couple, or at least more beneficial for Avast than for Chrome, but keep in mind that Avast has more than double the users that Chrome does. Google's Vice President of Product Management Sundar Pichai said Chrome had more than 40 million users at the Chrome OS press conference at the end of October, and the end of November saw NetApplications peg Chrome at 3.93 percent of the browser market, a 0.35 percentage point increase. Meanwhile, on Avast's Web site, the Czech Republic-based security vendor is preparing to fly its 100 millionth user to Prague on an expenses-paid trip.

A Google spokesman indicated that other deals might be in the works. "Users' response to Google Chrome has been outstanding, and we're continuing to explore ways to make Chrome accessible to even more people. This could potentially include distribution via a number of channels, such as the distribution we are currently doing with Avast."

CNET News staff writer Stephen Shankland contributed to this report.

Intel said Friday that its Larrabee graphics processor will initially appear as a software development platform only.

This is a blow to the world's largest chipmaker, which was looking to launch its first discrete (standalone) graphics chip in more than a decade.

"Larrabee silicon and software development are behind where we hoped to be at this point in the project," Intel spokesman Nick Knupffer said Friday. "As a result, our first Larrabee product will not be launched as a standalone discrete graphics product," he said.

"Rather, it will be used as a software development platform for internal and external use," he added. Intel is not discussing what other versions may appear after the initial software development platform product, or "kit," is launched next year.

Graphics chip analyst Jon Peddie, president of Jon Peddie Research, said Intel is not hitting performance targets and this became apparent at the SC09 supercomputing conference last month.

"Justin Rattner (Intel Senior Fellow) demonstrated Larrabee hitting one teraflop, which is great but you could walk across the street and buy an ATI graphics board for a few hundred dollars that would do five teraflops." A teraflop is 1 trillion floating point operations per second, a key indicator of graphics chip performance.

Larrabee, a chronically delayed chip, was originally expected to appear in 2008. It was slated to compete with discrete graphics chips from Nvidia and Advanced Micro Devices' ATI graphics unit.

Intel would not give a projected date for the Larrabee software development platform and is only saying "next year."

Intel says its plans are unchanged to deliver this month the first chip with graphics integrated onto the CPU. This new Atom processor is referred to as "Pineview" (the platform is called "Pine Trail") and will be targeted at Netbooks.

Updated at 4 p.m. PST throughout.

Updated on December 7 at 1:05 p.m. PST: adding comments about actual teraflops versus theoretical teraflops: The one teraflop cited by Rattner was actual, measured teraflops. Whereas the teraflops number that AMD has cited was theoretical. So, a straight comparison cannot be made.

A cable giant becomes an entertainment star, while a search giant gets into the DNS business and a software titan becomes map maker.

Comcast, the nation's largest cable company, is buying a controlling stake in the TV network and movie studio NBC Universal in a deal valued at $37 billion. The deal will make Comcast a major media player with several very profitable cable channels, including USA, CNBC, MSNBC, and Bravo. It will also have control over NBC's broadcast networks and TV stations, its film studio, and its amusement parks.

The deal is likely to be scrutinized by government regulators, namely the U.S. Department of Justice and the Federal Communications Commission. A marriage between the nation's largest cable and Internet service provider and one of the nation's three broadcast TV stations could ignite old fights over media ownership, a la carte billing, retransmission consent, and cable prices.
•  Can Comcast-NBC play nice with Hulu?

Google wants to unclog Net's DNS plumbing

The Net giant, ever eager for a faster Internet, debuts its Google Public DNS service. With it, Google could become even more central to the Net.

Microsoft Bing Maps Beta adds much richer images

New enhancements for Bing Maps include a Silverlight-powered Web application that brings very detailed satellite and street-level imagery to Bing, along with other tweaks.
• Bing Maps Beta: Cool, but limited
• Google Earth peers into California's eco-future

More headlines

ComScore: So far, online holiday sales are up

Company releases metrics for Cyber Monday and the holiday season to date. And like statistics from other research firms, the numbers are heartening for retailers.
• Study: Cyber Monday sees strong gains
• Cyber Monday bargain hunters out earlier
• Tools for creating holiday-shopping lists
• Study: Sites to bring in billions in holiday donations

In nod to media, Google News policy limited

Google's "First Click Free" policy allowed Google News and search users to discover news articles behind paywalls, but it was easy to abuse. Now, there are limits.

Fake CDC vaccine e-mail leads to malware

AppRiver warns of scammers preying on public interest in the H1N1 vaccine through an e-mail purporting to come from Centers for Disease Control and Prevention.
• Microsoft: November security updates are fine

AT&T gives up on Verizon ad lawsuit

AT&T has dismissed its lawsuit against Verizon Wireless for running advertisements it claimed confused customers about its 3G network.
• Verizon nixes holiday ads to continue AT&T-bashing

Microsoft actively urges IE 6 users to upgrade

A shopping video and eBay promotion are part of Microsoft's effort to give IE 6 users a reason to upgrade. The company also is trying to move corporate customers away.
• Dell brings Chrome OS to its Netbook
• Latest Firefox beta gets file-handling feature

Barnes & Noble Nook to hit stores later than expected

B&N says it will have the e-readers in some stores on December 7, a week later than expected, because the company is prioritizing delivery to customers who preordered.
• Spring Design Nook injunction denied, but battle's still on

Psystar ceases sales of Mac clones

Following a settlement agreement with Apple, Psystar's Mac OS-loaded hardware is no longer available on its site.

Michael Jackson tops Google, Yahoo search in 2009

That No. 1 ranking should come as no surprise. Web traffic surged on word of the singer's death in June--so much that Google initially suspected an attack.

Google hosts energy experts amid climate talks

Next week, the international community plans to discuss climate change and green energy, and U.S. energy experts kicked things off at Google's offices.

Also of note

• Google runs a fade pattern on home page
• Mark Zuckerberg's grand missive: The translation
• Defense Dept. pulls software over privacy issues

Apple on Friday quietly updated its high-end Mac Pro computer with an option for a faster processor.

First noted by AppleInsider, the 3.33GHz quad-core Intel Xeon option will add $1,200 to the price of the base configuration, which currently sells for $2,499. An option for the 2.93GHz processor, introduced in March, is still available for an extra $400 over the base model.

The current Mac Pro base configuration ships with a 2.66GHz quad-core Intel Xeon "Nehalem" processor.

The custom configuration options for the Mac Pro also enable buyers to add up to 16GB of RAM, as many as four 2-terabyte hard drives, and a variety of graphics cards, in additional to other components and software.

When it introduced the Intel Xeon-based Mac Pro in March, Apple added options for the Nvidia GeForce GT 120 and the ATI Radeon HD 4870 graphics cards, as well as three channels of memory designed to cut latency by up to 40 percent on the machines.

While Apple's iMac and Mac Mini are recognized by most consumers for their design, the Mac Pro is the machine of choice by many IT, graphics, and audio pros for its superior power.

In its quest to acquire Tandberg, Cisco is close...but no cigar yet.

The network giant has won 89 percent of the outstanding shares of Tandberg, a healthy amount, but still 1 percent short of the 90 percent needed under Norwegian law to close the deal. The company had issued a deadline of December 3 to capture the required shares or it said it would walk away.

But as of Friday, Cisco is giving every indication that it will forge ahead, citing tendered shares that would put it over the 90 percent mark.

Looking to capture the growing videoconferencing market, Cisco has been aggressive in its pursuit of Tandberg. Based in Oslo, Norway, and New York, Tandberg sells a range of low-cost and high-end videoconferencing tools and systems to companies large and small.

After initially offering $3 billion for Tandberg on October 1, a bid that received a thumbs down from the Norwegian company's shareholders, Cisco bumped its price to $3.41 billion on November 16. Cisco said it still expects the deal to close in the first half of 2010.

In a press release issued Friday, Cisco confirmed that 99.8 million Tandberg shares had been tendered, representing 89.1 percent of all outstanding stock. It also said that additional shares, tendered on November 18 and 20, amount to an extra 2 percent, totaling 91.1 percent of all shares. Though Cisco may see that as a done deal, tendered shares essentially mean that it has gotten a promise to receive those remaining shares at a certain time--they're not in Cisco's pocket just yet.

Assuming Cisco scoops up the necessary shares to satsify Norwegian law, the company still faces regulatory approval from the U.S. Department of Justice. The company said Friday that it has received a Request for Additional Information, or a "second request," from the Justice Department on its purchase of Tandberg. This type of request is not uncommon among mergers of this scope. But it requires a prompt response from Cisco to present specific information to the government, which may be concerned about potential anti-competitive effects of the deal.

Cisco said it intends to respond expeditiously to the Justice Department's request and continue to work with the agency in connection with the agency's review.

Staples is selling a big-screen laptop with robust features that belie its low price.

As 17-inch laptops go, it's a lot of laptop for the money, compared with higher-priced systems from vendors such as Hewlett-Packard. Big-screen, 17-inch-class laptops priced a couple of hundred dollars above the Acer typically offer slightly faster processors and higher-performance graphics. But for the average user, there's not much difference.

And what do you get for $479? The Acer Aspire AS7736Z-4809 comes with Microsoft Windows 7 Home Premium 64-bit, a dual-core Intel Pentium Processor T4300 (2.1GHz), 4GB of memory, a 320GB hard disk drive, 8X DVD double-layer optical drive, a Webcam, and a 17.3-inch LED display with 1600 x 900 resolution.

A 17-inch laptop with high-definition screen resolution and plenty of memory to run 64-bit Windows 7--that's nothing to sniff at.