Justin Bieber and Selena Gomez have broken up, reports say
















LOS ANGELES (Reuters) – Pop star Justin Bieber and his girlfriend, Selena Gomez, a Disney actress and singer, have broken up, ending a relationship that made them one of Hollywood’s most high-profile young couples, media reports said.


Bieber, 18, and Gomez, 20, disclosed their relationship in February 2011 when they appeared together at an Oscar night party after months of rumors of their dating.













E! Online late on Friday was the first to report the split, with other media outlets including US Weekly and People also saying the relationship was over. The reports cited unnamed sources close to the couple.


Representatives for Bieber and Gomez did not returns calls or emails on Saturday.


Bieber has released two No. 1 albums in just over a year – the holiday-themed “Under the Mistletoe” and his latest, “Believe.” In September, he topped Billboard’s “21 Under 21″ list of top young musical acts. It was his second year in a row with the title.


Gomez rose to fame as a teenager in the Walt Disney Co television series “Wizards of Waverly Place” and has enjoyed success as a pop singer.


(Reporting By Alex Dobuzinskis; Editing by Greg McCune and Peter Cooney)


Celebrity News Headlines – Yahoo! News



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Slipstream: Biometric Data-Gathering Sets Off a Privacy Debate





“PLEASE put your hand on the scanner,” a receptionist at a doctor’s office at New York University Langone Medical Center said to me recently, pointing to a small plastic device on the counter between us. “I need to take a palm scan for your file.”




I balked.


As a reporter who has been covering the growing business of data collection, I know the potential drawbacks — like customer profiling — of giving out my personal details. But the idea of submitting to an infrared scan at a medical center that would take a copy of the unique vein patterns in my palm seemed fraught.


The receptionist said it was for my own good. The medical center, she said, had recently instituted a biometric patient identification system to protect against identity theft.


I reluctantly stuck my hand on the machine. If I demurred, I thought, perhaps I’d be denied medical care.


Next, the receptionist said she needed to take my photo. After the palm scan, that seemed like data-collection overkill. Then an office manager appeared and explained that the scans and pictures were optional. Alas, my palm was already in the system.


No longer the province of security services and science-fiction films, biometric technology is on the march. Facebook uses facial-recognition software so its members can automatically put name tags on friends when they upload their photos. Apple uses voice recognition to power Siri. Some theme parks take digital fingerprints to help recognize season pass holders. Now some hospitals and school districts are using palm vein pattern recognition to identify and efficiently manage their patients or students — in effect, turning your palm into an E-ZPass.


But consumer advocates say that enterprises are increasingly employing biometric data to improve convenience — and that members of the public are paying for that convenience with their privacy.


Fingerprints, facial dimensions and vein patterns are unique, consumer advocates say, and should be treated as carefully as genetic samples. So collecting such information for expediency, they say, could increase the risks of serious identity theft. Yet companies and institutions that compile such data often fail to adequately explain the risks to consumers, they say.


“Let’s say someone makes a fake ID and goes in and has their photo and their palm print taken as you. What are you going to do when you go in?” said Pam Dixon, the executive director of the World Privacy Forum, an advocacy group in San Diego. “Hospitals that are doing this are leaping over profound security issues that they are actually introducing into their systems.”


THE N.Y.U. medical center started researching biometric systems a few years ago in an effort to address several problems, said Kathryn McClellan, its vice president who is in charge of implementing its new electronic health records system. More than a million people in the New York area have the same or similar names, she said, creating a risk that medical personnel might pull up the wrong health record for a patient. Another issue, she said, was that some patients had multiple records from being treated at different affiliates; N.Y.U. wanted an efficient way to consolidate them.


Last year, the medical center adopted photography and palm-scan technology so that each patient would have two unique identifying features. Now, Ms. McClellan said, each arriving patient has his or her palm scanned, allowing the system to automatically pull up the correct file.


“It’s a patient safety initiative,” Ms. McClellan said. “We felt like the value to the patient was huge.”


N.Y.U.’s system, called PatientSecure and marketed by HT Systems of Tampa, has already scanned more than 250,000 patients. In the United States, over five million patients have had the scans, said Charles Yanak, a spokesman for Fujitsu Frontech North America, a division of Fujitsu, the Japanese company that developed the vein palm identification technology.


Yet, unless patients at N.Y.U. seem uncomfortable with the process, Ms. McClellan said, medical registration staff members don’t inform them that they can opt out of photos and scans.


“We don’t have formal consent,” Ms. McClellan said in a phone interview last Tuesday.


That raises red flags for privacy advocates. “If they are not informing patients it is optional,” said Joel Reidenberg, a professor at Fordham University Law School with an expertise in data privacy, “then effectively it is coerced consent.”


He noted that N.Y.U. medical center has had recent incidents in which computers or USB drives containing unencrypted patient data have been lost or stolen, suggesting that the center’s collection of biometric data might increase patients’ risk of identity theft.


Ms. McClellan responded that there was little chance of identity theft because the palm scan system turned the vein measurements into encrypted strings of binary numbers and stored them on an N.Y.U. server that is separate from the one with patients’ health records. Even if there were a breach, she added, the data would be useless to hackers because a unique key is needed to decode the number strings. As for patients’ photos, she said, they are attached to their medical records.


Still, Arthur Caplan, the director of the division of medical ethics at the N.Y.U. center, recommended that hospitals do a better job of explaining biometric ID systems to patients. He himself recently had an appointment at the N.Y.U. center, he recounted, and didn’t learn that the palm scan was optional until he hesitated and asked questions.


“It gave me pause,” Dr. Caplan said. “It would be useful to put up a sign saying ‘We are going to take biometric information which will help us track you through the system. If you don’t want to do this, please see’ ” an office manager.


Other institutions that use PatientSecure, however, have instituted opt-in programs for patients.


At the Duke University Health System, patients receive brochures explaining their options, said Eliana Owens, the health system’s director of patient revenue. The center also trains staff members at registration desks to read patients a script about the opt-in process for the palm scans, she said. (Duke does not take patients’ photos.)


“They say: ‘The enrollment is optional. If you choose not to participate, we will continue to ask you for your photo ID on subsequent visits,’ ” Ms. Owens said.


Consent or not, some leading identity experts see little value in palm scans for patients right now. If medical centers are going to use patients’ biometric data for their own institutional convenience, they argue, the centers should also enhance patient privacy — by, say, permitting lower-echelon medical personnel to look at a person’s medical record only if that patient is present and approves access by having a palm scanned.


Otherwise, “you are enabling another level of danger,” said Joseph Atick, a pioneer in biometric identity systems who consults for governments, “instead of using the technology to enable another level of privacy.”


At my request, N.Y.U. medical center has deleted my palm print.


E-mail: slipstream@nytimes.com.



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Walmart Black Friday 2012 coming even earlier









Cierra Hobson is a die-hard Black Friday shopper.

Every year she queues in front of one of her favorite stores, where she waits, in her pajamas, in hopes of bagging a good deal.

This year, Hobson and other deal-seekers will find some twists on the post-Thanksgiving Day ritual: coupons delivered via mobile phones and deeper discounts, maneuvers designed to make shopping easier for consumers and to set retailers on a strong start to the biggest shopping period of the year. But perhaps the biggest change will be an earlier start to the holiday rush.

Black Friday historically launched the day after Thanksgiving. But in recent years, stores have opened at 4 a.m., then midnight. Last year, retailers created a stir by opening at 10 p.m. Thursday. This year, Sears and Wal-Mart announced plans to open at 8 p.m.

"The name of the game this holiday season is who can do it best," said National Retail Federation spokeswoman Kathy Grannis.

"When (early openings) started in 2009, things were a little bit worse off in terms of consumer confidence," Grannis added. "At that point it was very necessary for retailers to get out there before anybody else, and that literally meant before midnight."

This year, holiday spending is expected to rise 4.1 percent, according to the retail federation. Last year, more than 24 percent of Black Friday shoppers were out before midnight and nearly 39 percent of shoppers were in the stores before 5 a.m.

Wal-Mart plans to greet shoppers with the likes of $89 Wii consoles and a $38 Blu-ray player. At Sears, there will be perks on sale items for members of its shopper loyalty program.

Both retailers are touting in-store pickup, allowing customers to buy items online and pick them up at the store, avoiding checkout lines.

The Disney Store plans to begin offering Black Friday deals on the Monday before Thanksgiving, though Disney stores will open at midnight in some markets and 5 a.m. in others. Ads leaked to Internet deal sites say Target stores will open at 9 p.m. on Thanksgiving.

Last year, Wal-Mart recorded its most customer traffic at 10 p.m. on Thanksgiving night, said spokesman Steven Restivo, adding that the retailer relied on focus groups, online surveys and other feedback to help it decide to open two hours earlier this year. "Our customers told us they loved our Thanksgiving event last year and wanted it again."

At Sears, staying open 26 consecutive hours through Black Friday gives its customers the flexibility they want and makes good business sense, said spokesman Brian Hanover.

"There's a segment of Sears customers who want that thrill of holiday shopping to start as soon as their Thanksgiving dinner ends," he said. "Traditionalists," he added, can wait for door busters at 4 a.m.

Despite discounts that often go beyond 50 percent, stores still make money on the sales, retail experts say. That's because shoppers in physical stores tend to spend more than they planned, said Sanjay Dhar, professor of marketing at the University of Chicago Booth School of Business.

In the store, "you end up making purchases that aren't as marked down, in addition to the door-buster deals," he said.

Opening earlier and staggering door-buster deals is not only a good way to make money, but it's also necessary for crowd control, retail watchers say. In 2008, a store employee was trampled to death in a Black Friday door-buster stampede at a Long Island, N.Y., Wal-Mart.

Hobson said she doesn't plan to start shopping Thanksgiving night, but she said she'll be up before dawn to catch sales at Express, a clothing store.

"Just knowing that everybody is doing the same thing I'm doing on the same day feels like the beginning of Christmas," she said.

Others worry that super-early openings could backfire.

Sheri Petras, CEO of CFI Group, a Michigan-based consultancy, said store employees grumpy from having to leave their Thanksgiving festivities will take out their anger on customers.

"Consumers will not spend as much with cranky employees," she said.

Some employees at Wal-Mart, Sears and Target say they'd like the day off.

Change.org, an activist website, said Friday that more than 20 new petitions were submitted by employees and consumers asking retailers to reconsider their Thanksgiving evening openings.

It's the second year the website has administered petitions calling for retailers to stick to traditional Black Friday openings.

In a statement distributed by OUR Walmart, a labor rights group, Wal-Mart employee Mary Pat Tifft, of Wisconsin, said she would be "devastated" if she had to work on Thanksgiving, because she is expecting her son home from Afghanistan for the holiday.

"This early opening is one more example of Walmart's disconnect with the workers who keep its stores running and disregard for all of our families. As the largest employer in the country, Walmart could be setting a standard for businesses to value families, but instead, this is one more Walmart policy that hurts the families of workers at its stores," she said.

crshropshire@tribune.com

Twitter @corilyns



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CIA Director David Petraeus quits post over affair












David Petraeus, the retired four-star general renowned for taking charge of the military campaigns in Iraq and then Afghanistan, abruptly resigned Friday as director of the CIA, admitting to an extramarital affair.

The affair was discovered during an FBI investigation, according to officials briefed on the developments. They spoke on condition of anonymity because they were not authorized to publicly discuss the matter.









Petraeus carried on the affair with his biographer and reserve Army officer Paula Broadwell, according to several U.S. officials with knowledge of the situation. They spoke anonymously because they were not authorized to discuss the investigation that led to the resignation publicly.

The FBI discovered the relationship by monitoring Petraeus' emails, after being alerted Broadwell may have had access to his personal email account, two of the officials said.

Broadwell did not respond to voice mail or email messages seeking comment.

Petraeus' resignation shocked Washington's intelligence and political communities. It was a sudden end to the public career of the best-known general of the post 9/11 wars, a man sometimes mentioned as a potential Republican presidential candidate. His service was effusively praised Friday in statements from lawmakers of both parties.

Petraeus, who turned 60 on Wednesday, told CIA employees in a statement that he had met with President Barack Obama at the White House on Thursday and asked to be allowed to resign. On Friday, the president accepted.

Petraeus told his staffers he was guilty of "extremely poor judgment" in the affair. "Such behavior is unacceptable, both as a husband and as the leader of an organization such as ours."

He has been married for 38 years to Holly Petraeus, whom he met when he was a cadet at the U.S. Military Academy at West Point, N.Y. She was the daughter of the academy superintendent. They have two children, and their son led an infantry platoon in Afghanistan.

Obama said in a statement that the retired general had provided "extraordinary service to the United States for decades" and had given a lifetime of service that "made our country safer and stronger." Obama called him "one of the outstanding general officers of his generation."

The president said that CIA Deputy Director Michael Morell would serve as acting director. Morell was the key CIA aide in the White House to President George W. Bush during the Sept. 11, 2001, terror attacks.

"I am completely confident that the CIA will continue to thrive and carry out its essential mission," Obama said.

Administration officials said the White House was first notified about the Petraeus affair on Wednesday, the day after the election. Obama, who returned to the White House that evening after spending Election Day in Chicago, wasn't informed until Thursday morning.

The Senate and House intelligence committees were briefed on Petraeus' resignation only after the news was reported in the media, said a congressional staffer, speaking anonymously because the staffer was not authorized to publicly discuss the sensitive briefings.

The resignation comes at a sensitive time. The administration and the CIA have struggled to defend security and intelligence lapses before the attack that killed the U.S. ambassador to Libya and three others. It was an issue during the presidential campaign that ended with Obama's re-election Tuesday.

The CIA has come under intense scrutiny for providing the White House and other administration officials with talking points that led them to say the Benghazi attack was a result of a film protest, not a militant terror attack. It has become clear that the CIA was aware the attack was distinct from the film protests roiling across other parts of the Muslim world.

Morell rather than Petraeus now is expected to testify at closed congressional briefings next week on the Sept. 11 attacks on the consulate in Benghazi.

For the director of the CIA, being engaged in an extramarital affair is considered a serious breach of security and a counterintelligence threat. If a foreign government had learned of the affair, the reasoning goes, Petraeus or Broadwell could have been blackmailed or otherwise compromised. Military justice considers conduct such as an extramarital affair to be possible grounds for court-martial.

Failure to resign also could create the perception for the rank and file that such behavior is acceptable.

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Spotify to raise $100 million at $3 billion valuation – report
















(Reuters) – Spotify is in the middle of a $ 100 million financing round that could value the music streaming company at just over $ 3 billion, the Wall Street Journal reported citing sources.


The Journal said Spotify would raise the fresh capital from multiple investors including Goldman Sachs. The WSJ report did not name any other investors.













Spotify has raised capital from outside investors several times since it set up shop in 2006, and was earlier reported to have been looking to secure a capital boost of about $ 200 million, at a valuation of about $ 4 billion.


Kleiner Perkins Caufield & Byers, Accel Partners and others have invested about $ 189 million in the company in its prior financing rounds.


The company has over 15 million active users and 4 million paying subscribers, for its on-demand service, which offers unlimited music streaming of some 18 million tracks.


(Reporting by Himank Sharma in Bangalore)


Internet News Headlines – Yahoo! News



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Philip Roth says he’s done writing
















NEW YORK (AP) — Exit, Philip Roth? Having conceived everything from turning into a breast to a polio epidemic in his native New Jersey, Roth has apparently given his imagination a rest.


The 79-year-old novelist recently told a French publication, Les inRocks, that his 2010 release “Nemesis” would be his last. Spokeswoman Lori Glazer of Houghton Mifflin Harcourt said Friday that she had spoken with Roth and that he confirmed his remarks. Roth’s literary agent, Andrew Wylie, declined comment.













Roth certainly produced, completing more than 20 novels over half a century and often turning out one a year. He won virtually every prize short of the Nobel and wrote such classics as “American Pastoral” and “Portnoy’s Complaint.”


His name will remain on new releases, if only because the Library of America has been issuing hardcover volumes of his work. Roth also is cooperating with award-winning biographer Blake Bailey on a book about his life.


The author chose an unexpected forum to break the news, but he has been hinting at his departure for years. He has said that he no longer reads fiction and seemed to say goodbye to his fictional alterego, Nathan Zuckerman, in the 2007 novel “Exit Ghost.”


Retirement is rarely the preferred option for writers, for whom the ability to tell stories or at least set down words is often synonymous with life itself. Poor health, discouragement and even madness are the more likely ways literary careers end. Roth apparently is fit and his recent novels had been received respectfully, if not with the awe of his most celebrated work.


“I don’t believe it,” Roth’s friend and fellow writer Cynthia Ozick said upon learning the news. “A writer who stops writing while still breathing has already declared herself posthumous.”


His parting words from “Nemesis”: “He seemed to us invincible.”


Roth’s interview appeared in French and has been translated, roughly, by The Associated Press. He tells Les inRocks that “Nemesis” was “mon dernier livre” (“My last book”) and refers to “Howard’s End” author E.M. Forster, and how he quit fiction in his 40s. Roth said he doesn’t plan to write a memoir, but will instead go through his archives and help ensure that Bailey’s biography comes out in his lifetime.


Explaining why he stopped, Roth said that at age 74 he became aware his time was limited and that he started re-reading his books of the past 20-30 years, in reverse order. He decided that he agreed with what the boxer Joe Louis had said late in life, that he had done the best he could with what he had.


Entertainment News Headlines – Yahoo! News



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Malaria Vaccine Candidate Produces Disappointing Results in Clinical Trial


The latest clinical trial of the world’s leading malaria vaccine candidate produced disappointing results on Friday. The infants it was given to had only about a third fewer infections than a control group.


But researchers said they wanted to press on, assuming they keep getting financial support, because the number of children who die of malaria is so great that even an inefficient vaccine can save thousands of lives.


Three shots of the vaccine, known as RTS, S or Mosquirix and produced by GlaxoSmithKline, gave babies fewer than 12 weeks old 31 percent protection against detectable malaria and 37 percent protection against severe malaria, according to an announcement by the company at a vaccines conference in Cape Town.


Last year, in a trial in children up to 17 months old, the same vaccine gave 55 percent protection against detectable malaria and 47 percent against severe malaria.


The new trial “is less than we’d hoped for,” Moncef Slaoui, chairman of research and development at Glaxo, said in a telephone interview. “But if a million babies were vaccinated, we would prevent 260,000 cases of malaria a year. This is a disease that kills 655,000 babies a year — 31 percent of that is a very large number.”


The company, which has already spent more than $300 million on the vaccine, wants to keep forging ahead, Mr. Slaoui said, “but it is not just our decision.”


It also depends on the PATH Malaria Vaccine Initiative, which has put more than $200 million of its Bill and Melinda Gates Foundation financing into the vaccine, and on the World Health Organization, which has helped talk seven African countries into allowing the vaccine to be tested on their children.


The Gates Foundation declined to say how much money it was ultimately prepared to spend on an imperfect vaccine; this set of trials is set to go into 2014.


“The efficacy came back lower than we had hoped, but developing a vaccine against a parasite is a very hard thing to do,” Bill Gates said in a prepared statement. “The trial is continuing, and we look forward to getting more data to help determine whether and how to deploy this vaccine.”


All the families in the trial were given insecticide-treated mosquito nets and encouraged to use them; 86 percent did, so the vaccine’s results were achieved on top of other anti-malaria measures.


RTS, S contains a protein found on the parasite’s surface that provokes an immune reaction. It was first identified decades ago by two New York University scientists, Ruth and Victor Nussenzweig. The vaccine was developed by Glaxo in Belgium and initially tested on American volunteers by the Walter Reed Army Institute of Research.


When the Gates Foundation began focusing on global health in the early part of this century, it was one of the first projects the foundation adopted. Different ways to make the vaccine more effective, including adding different boosters and giving more shots, are being experimented with. Other vaccines using different ways to provoke an immune reaction exist, but none are as far along in clinical trials.


Like an H.I.V. vaccine, one against malaria has proved an elusive goal. The parasite morphs several times, exhibiting different surface proteins as it goes from mosquito saliva into blood and then into and out of the liver. Also, even the best natural “vaccine” — catching the disease itself — is not very effective. While one bout of measles immunizes a child for life, it usually takes several bouts of malaria to confer even partial immunity. Pregnancy can cause women to stop being immune, and immunity can fade out if someone moves away from a malarial area — presumably because they no longer get “boosters” from repeated mosquito bites.


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Bargains disappearing for distressed properties, Zillow says









Bargains on bank-owned homes are quickly vanishing in the country's most competitive markets.

Since the start of the mortgage meltdown, repossessed homes have been considered the discount aisles of real estate. Now competition among investors and first-time home buyers for affordable digs is making those distressed properties less affordable, a new analysis by Zillow.com shows.

"They will get somewhat of a deal, depending on the market," Zillow chief economist Stan Humphries said. "But, just generally, you are going to get less of a deal today than you would have gotten in late 2009 or early 2010."





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The shrinking discounts underscore how real estate has recovered this year as low interest rates and high affordability have sucked buyers back into the market. The number of for-sale homes has also fallen to levels not seen since the housing boom as foreclosures ease and homeowners — many who still owe more on their properties than they are worth — hold off on listing their houses for sale.

Zillow looked at sale prices of bank-owned homes and used a model to determine what that property would have brought if it had not been sold by a bank. In Las Vegas and Phoenix, for instance, a foreclosed home in September sold for the same price as a regular property.

Discounts were also marginal on bank-owned homes in the Inland Empire and the Sacramento region, 1.8% and 0.7%, respectively, according to the analysis. Both of these areas have grown increasingly competitive after being savaged by the housing bust. In the Los Angeles area, the foreclosure discount was 4.2% in September, Zillow said.

Certain Midwest and East Coast cities appeared to have the biggest foreclosure discounts. The Pittsburgh area had a discount of 27.4%, with Cleveland at 25.8%, Cincinnati 20.2% and Baltimore 20%.

Analysts figured the national foreclosure discount at just 7.7%. That's a big difference from the dog days of the housing bust, when people snapping up foreclosures could expect a discount of 23.7%, Zillow said.

Home shoppers looking for dime-store values now face a frustrating hunt. Gary K. Kruger, a real estate agent in Hemet, has seen buyers consistently bid on homes above the asking price and still struggle to make deals. One of his clients, a first-time buyer looking for a home in Vista, has bid on three properties — one a regular sale, one a bank-owned home and one a short sale — and lost each time.

Properties that are good for rentals or first-time buyers, along with properties priced in the lower-end of the move-up market, are "very, very hot," Kruger said.

"I have not had a successful person purchase a foreclosed home that was not an investor for months," he said. "Things are selling so quickly."

The story is similar in the Las Vegas region, said Keith Lynam, a real estate agent and chairman of the Nevada Assn. of Realtors' legislative committee. The number of foreclosed homes on the market in the Las Vegas area has dwindled to less than 300, compared with about 7,000 at its peak, Lynam said.

One of his clients, a potential buyer with a sizable down payment, has made half a dozen unsuccessful offers in the last six months.

"There is just zero inventory," Lynam said.

Experts are also revisiting the notion that foreclosed homes really drag down property values. A working paper by the Federal Reserve Bank of Atlanta published in August found that although the homes of troubled borrowers did drag down values of surrounding homes, the effects were small.

That paper also found that the worst declines occurred before the home was repossessed, indicating that the declines stemmed from people abandoning their homes or letting them fall into disrepair.

Sean O'Toole, a real estate investor and founder of the website ForeclosureRadar.com, agreed with the Zillow analysis. Previous studies failed to take into account the nature of most foreclosures and their geography, he said. Typically, and particularly during the last five years, foreclosures have been concentrated in more traditionally affordable areas. So comparing the median home price of all foreclosed homes during the bust with the median home price of non-foreclosed homes results in an apple-to-oranges comparison, he said.

"The results that Zillow got make perfect sense to me, because there is actually more demand for REO and foreclosures, because people believe they are a deal," O'Toole said, using shorthand for the term "real estate owned," which is how banks refer to the properties on their books. "There is more demand for those."

Michael Novak-Smith, a real estate agent in the Riverside area who specializes in listing foreclosures for banks, said the market has reached a frenzy few would have expected so soon after the bust. One bank-owned home he listed about two weeks ago in Fontana for $145,000 attracted 157 offers. The seller took an all-cash offer.

"That is really telling, because a lot of these buyers think they'll just go out and get a repo," Novak-Smith said. "But buyers need to come in strong with their best offers, because you will get beat right out. An entry-level house with 157 offers? That's just mind-boggling to me."

alejandro.lazo@latimes.com





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Groupon lays off 80 sales employees









Chicago-based Groupon Inc. said Thursday it laid off 80 sales employees this week, reflecting ongoing efforts to automate some sales functions.

"Groupon announced several months ago it would be using technology to increase productivity through automation," the company said in a brief statement. "This week we reduced the sales team by approximately 80 members as part of that effort. We will always aim to optimize business operations wherever opportunities are identified."

While the daily deals company did not disclose where the affected employees were based, most of its sales staff is in Chicago. Groupon employed 11,866 people as of the third quarter. Of this, 5,087 employees were in sales, meaning the cuts represent less than 2 percent of its sales force. Compared with the second quarter, however, Groupon's sales staff has shrunk. In the second quarter, the company employed 5,587 people in sales out of a total headcount of 12,820.

In a conference call to discuss third-quarter earnings results, Chief Executive Andrew Mason said the company has spent six to nine months looking at technology tools that can replace inefficient manual processes, particularly in sales functions. Groupon had rapidly added headcount to keep pace with its supercharged growth in its early years and is now turning to automation, Mason said. For example, an internal tool used to personalize deals for consumers can also be used to predict the value of different leads in Groupon’s merchant database.

 "We've seen just in the last several months the productivity of our sales force improve, increasing the number of deals that a single sales person can close because of the new tools that we've released," Mason said, adding: "Those sorts of things are allowing us to increase productivity and continue to scale without adding the same headcount as we have in the past."

Groupon's third-quarter earnings, reported after the market closed, missed Wall Street expectations and prompted a sharp decline in the company's stock in after-hours trading.

wawong@tribune.com | Twitter @VelocityWong

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Exclusive: Google Ventures beefs up fund size to $300 million a year

SAN FRANCISCO (Reuters) - Google will increase the cash it allocates to its venture-capital arm to up to $300 million a year from $200 million, catapulting Google Ventures into the top echelon of corporate venture-capital funds.


Access to that sizeable checkbook means Google Ventures will be able to invest in more later-stage financing rounds, which tend to be in the tens of millions of dollars or more per investor.


It puts the firm on the same footing as more established corporate venture funds such as Intel's Intel Capital, which typically invests $300-$500 million a year.


"It puts a lot more wood behind the arrow if we need it," said Bill Maris, managing partner of Google Ventures.


Part of the rationale behind the increase is that Google Ventures is a relatively young firm, founded in 2009. Some of the companies it backed two or three years ago are now at later stages, potentially requiring larger cash infusions to grow further.


Google Ventures has taken an eclectic approach, investing in a broad spectrum of companies ranging from medicine to clean power to coupon companies.


Every year, it typically funds 40-50 "seed-stage" deals where it invests $250,000 or less in a company, and perhaps around 15 deals where it invests up to $10 million, Maris said. It aims to complete one or two deals annually in the $20-$50 million range, Maris said.


LACKING SUPERSTARS


Some of its investments include Nest, a smart-thermostat company; Foundation Medicine, which applies genomic analysis to cancer care; Relay Rides, a carsharing service; and smart-grid company Silver Spring Networks. Last year, its portfolio company HomeAway raised $216 million in an initial public offering.


Still, Google Ventures lacks superstar companies such as microblogging service Twitter or online bulletin-board company Pinterest. The firm's recent hiring of high-profile entrepreneur Kevin Rose as a partner could help attract higher-profile deals.


Soon it could have even more cash to play around with. "Larry has repeatedly asked me: 'What do you think you could do with a billion a year?'" said Maris, referring to Google chief executive Larry Page.


(Editing by Muralikumar Anantharaman)


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