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NetFlix garners $30 million investment
The Los Gatos-based online DVD rental store NetFlix landed a $30 million investment from Group Arnault, an international luxury products group.
The investment is the largest in the firm. NetFlix.com plans to use the investment to fund marketing and branding initiatives. The company already has distribution and promotional relationships with a number of big-name corporations, including Sony Corp. and Amazon.com Inc.
"The open DVD marketplace is stronger than ever as evidenced by the widespread consumer adoption, as well as the recent discontinuation of the Divx format," said NetFlix CEO Reed Hastings in a statement.
"Recognizing the market potential in addition to our aggressive business plan and vision, Group Arnault has dedicated a significant investment, which will allow us to become one of the best-known sites on the Web and elevate NetFlix.com to the next phase of our future growth."
With investments in Cisco Systems Inc., Excite@Home, eBay Inc. and other Internet companies, Group Arnault is positioning itself as one of the most active Internet and e-commerce investors in the world.
NetFlix also attracts customers with features on its Web site, which enables customers to search for movies by actor, director, title or genre.
The 45-employee NetFlix is privately funded by individual investors and some venture capital financing.
Cypress buys Arcus Technology
San Jose-based chipmaker Cypress Semiconductor Corp. has acquired Arcus Technology of Fremont for $20 million in cash and stock
Arcus, a privately held company, provides equipment data for telecommunications.
3Com opens East Coast base ...
Santa Clara-based networking company 3Com Corp. has opened its new East Coast base of operations, a 128-acre campus in Marlborough, Mass.
As part of the company's opening celebration, CEO Eric Benhamou donated $2 million to the Massachusetts Institute of Technology for research and teaching in computer communication compatibility.
... and names Palm Computing leader
3Com Corp. has named Alan Kessler, a 13-year company veteran, president of its fastest-growing business: the Palm Computing unit.
The Palm is the best-selling handheld organizer in the world, and that business accounts for more than 10 percent of 3Com's sales, which totaled $5.8 billion for its fiscal year ended in May.
Mr. Kessler, 41, succeeds Robin Abrams, 47,...