Wednesday, March 05, 2003

---

Internetnews : Groove Banks $38M from Microsoft, Cuts Staff Groove spokesman Richard Eckel declined details on Microsoft's ownership position, which was less than 20 percent before the latest investment. "They (Microsoft) remain a minority investor. It is safe to say they led the round of financing," Eckel told internetnews.com

---

Press release : Groove Networks closes 38$ Million financing Groove Networks today announced it has closed a fifth-round financing of $38 million, with investments from all existing investors, including Microsoft Corp., Intel Capital, Accel Partners and private investors. With this financing, the company has now raised more than $155 million since its founding in October 1997 by CEO Ray Ozzie. Groove Networks also announced it has completed a restructuring of its sales, marketing and services organizations, resulting in the elimination of 58 positions, or 20 percent of its workforce. The majority of jobs eliminated are at the company's Beverly, Mass., headquarters. The company said the reorganization will reduce its sales and marketing costs, reflecting the current reality of extended Fortune 500 enterprise software sales cycles.