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The Term Sheet – Wed. July 16th

RANDOM RAMBLINGS

Bleary-eyed greetings from Aspen, where Fortune Brainstorm Tech is heading into its final morning. This morning’s line-up includes Daniel Ek (Spotify CEO), Adam Brotman (Starbucks chief digital officer), Dan Kaufman (DARPA), Jennifer Hyman (Rent the Runway CEO) and Javier Olivan (VP of growth and analytics for Facebook). You can watch the live-stream beginning at 11am ET at http://www.fortune.com/brainstormtech2014

Today’s big deal is that 21st Century Fox last month offered to buy Time Warner for approximately $80 billion, at a share price that would have represented around a 25% premium to where Time Warner was trading at the time. Time Warner, however, rejected the deal.

When Time Warner CEO Jeff Bewkes was asked at Sun Valley last week by a Variety reporter about rumors that 21st Century Fox and Google both were eyeing his company, Bewkes replied: “I know nothing about it.” Or, put more simply, he lied. Still no formal statement this morning from Time Warner, although 21st Century Fox has confirmed its approach (which first was reported by the NY Times).

Quick question: Didn’t Time Warner have a fiduciary obligation to disclose this offer to shareholders? Seems fairly material. If not, why not?

No deal: There were reports earlier this week that Yahoo may be circling AOL, based on a Sun Valley sighting of Marissa Mayer chatting with Tim Armstrong. But during an M&A panel yesterday, Yahoo chief development officer Jackie Reses said that no such deal would be happening. After I asked her during a “yes/no” rapid-fire if AOL would be bought within two years she said: “Not by us.”

Reses also explained why Yahoo doesn’t have an in-house venture capital arm: “Yahoo is in a transformation and in order to transform the company, we all need to focus on the things that really matter and drive them to be successful. We need 100% of our attention on our core business… Venture investing, to me, is a hobby. If we had the time to have a hobby and we could set up a separate venture arm. But that hobby also takes the time of executives… Right now we prefer our executive team to focus on the business and growing that, as opposed to making small investments that we own a piece of.”

Box CEO Aaron Levie seemed to acknowledge some IPO timing mistakes, during a 1-on-1 interview. Not only because Box filed just as many of its listed peers were having their stock prices slashed, but also because of Box’s own internal positioning: “If you look at the S-1 itself, it was over last year which happened to be a year of very high growth and very high investment in the future of our business. And that didn’t tell exactly the best story, probably from what’s the leverage that you get with a recurring revenue model at scale and how over time does that become more efficient and how you get more leverage from the customers we’re signing on.”

You can watch the full video of our conversation by going here.

• Price talk: The largest settlement in the private equity bid-rigging case so far was $67 million, but I’m hearing that the remaining four defendants – Blackstone, Carlyle, KKR and TPG – likely will need to pay at least $80 million to avoid trial in November.

Market timing: Two different CEOs with companies in registration for IPO (no, not Levie) have told me that they’re waiting until after Labor Day because they don’t want to risk running into the Alibaba juggernaut. Not only because of media attention, but also because of fears that Alibaba may soak up some of their potential investments. Word continues to be that Alibaba plans to list on Friday, August 8. Also heard bankers are saying that the offering likely will account for over half of 2014 IPO volume.

Today’s big deal is that 21st Century Fox last month offered to buy Time Warner for approximately $80 billion, at a share price that would have represented around a 25% premium to where Time Warner was trading at the time. Time Warner, however, rejected the deal.

THE BIG DEAL

Time Warner (NYSE: TWX) rejected an $80 billion takeover offer from 21st Century Fox (Nasdaq: FOX) last month, as first reported by the NY Times. Fortune 

VENTURE CAPITAL DEALS

IIX Inc., a Palo Alto, Calif.–based provider of network peering and Internet exchange solutions, has raised $10.4 million in Series A funding from New Enterprise Associates. www.iixinc.com

Plastiq, a Boston-based provider of online credit card payment processing services, has raised $10 million in Series B funding. Khosla Ventures led the round, and was joined by return backers Atlas Venture and Flybridge Capital Partners. www.plastiq.com

Boomerang Commerce, a Santa Clara, Calif.-based retail price optimization startup, has raised $8.5 million in Series A funding from Trinity Ventures and Madrona Venture Group. www.rboomerang.com

JFrog Ltd., an Israeli provider of software development solutions, has raised $7 million in new VC funding from VMWare and return backer Gemini Ventures. www.jfrog.com

Autobutler, an online platform for car maintenance and servicing, has raised €5.8 million in VC funding. Index Ventures led the round, and was joined by Dawn Capital and Creandum. The company has an initial focus on the UK and Germany. www.autobutler.com

Nosto Solutions, a Finland-based provider of e-commerce personalization solutions, has raised $5.5 million in new VC funding. Wellington Partners led the round, and was joined by Open Ocean Capital, SanomaVentures and Tekes. www.nosto.com

Conversocial, a London-based provider of social customer service solutions, has raised $5 million in new Series A funding (bringing the round total to $9.4 million). Octopus Ventures led the round, and was joined by fellow return backers like DFJ Esprit. www.conversocial.com

Data3Sixty Inc., a cloud-based data governance startup, has raised an undisclosed amount of initial funding led by Breton Capital Management. The company is based in Westwood, Mass. www.data3sixty.com

PRIVATE EQUITY DEALS

Emergency Communications Network LLC, a portfolio company of The Riverside Co, has acquired PearServe, a Louisville, Ky.-based provider of time-sensitive warnings and other information about natural disasters. No financial terms were disclosed.   www.ecnetwork.com

Frontenac Company has sponsored a majority recapitalization of Cloud Star Corp., a San Luis Obispo, Calif.-based maker of dog and cat treats and other pet products. No financial terms were disclosed. www.frontenac.com

KKR will receive a $400 million dividend from drug capsule maker Capsugel, as part of a refinancing of  $1 billion in leveraged loans, according to the WSJ. KKR purchased Capsugel from Pfizer for nearly $2.4 billion in 2011.   www.kkr.com

Oaktree Capital Management and The Blackstone Group each are in talks to acquire the mortgage portfolio of state-owned Spanish lender Catalunya Banc, according to Reuters.   www.catalunyacaixa.com

IPOs

•  Bio Blast Pharma Ltd., an Israel-based drug company focused on genetic and metabolic diseases, has set its IPO terms to 3.33 million shares being offered at between $11 and $13 per share. It would have an initial market cap of approximately $172 million, were it to price in the middle of its range. The company plans to trade on the Nasdaq under ticker symbol ORPN, with Oppenheimer & Co. and Roth Capital Partners serving as lead underwriters. www.bioblast-pharma.com

•  Innocoll GmbH, an Ireland-based developer of biodegradable surgical implants, has set its IPO terms to 5.353 million shares being offered at between $13 and $15 per share. It plans to trade on the Nasdaq under ticker symbol INNL, with Piper Jaffray and Stifel serving as lead underwriters. Shareholders include Cam Investment *(28.7% pre-IPO stake), Morgan Stanley (23.6%), NewSmith Opportunities Private Equity Fund (12.7%) and ACL Investments (8%).  www.innocollinc.com

EXITS

•  Microsoft Corp. (Nasdaq: MSFT) is in talks to acquire Aorato Ltd., an Israeli cybersecurity startup that has developed a directory services application firewall, according to the WSJ. The deal could be valued at around $200 million. Aorato has raised around $10 million in VC funding from Accel Partners, Innovation Endeavors, Glilot Capital Partners and Mickey Boodaei (co-founder of Imperva and Trusteer).   www.aorato.com

FIRMS & FUNDS

•  Tower Arch Capital, a Salt Lake City-based private equity firm focused on the lower middle markets, has closed its debut fund with $272 million in capital commitments.   www.towerarch.com

•  Summit Partners has closed its second senior credit fund with $1 billion in capital commitments.  www.summitpartners.com

MOVING IN, UP, ON & ON

• The Gores Group has promoted Jon Gimbel to managing director of its small-cap group. He originally joined the firm in 2003. www.gores.com