Amazon and Google destined to do battle in 2013?

CB Insights notes that Tumblr, at $1.1 billion, is New York’s largest venture-backed exit of all time. The study doesn’t take into account Doubleclick, however, which was bought by Google for $3.1 billion, probably because Doubleclick was already public when it sold. [Source: CB Insights]

Marco Arment, David Karp’s right-hand man when Tumblr first began, weighs in on the Yahoo acquisition: “This is clearly what David believes is best for his product. On such big decisions, he hasn’t been wrong yet. This time, though, I don’t have any doubts.” [Source: Marco Arment]

New information released to NBC News reveals that the Department of Justice’s secret subpoena for AP phone records was even broader than initially reported, covering faxes and landlines as well. The AP is considering possible legal action against the DOJ. [Source: NBC News]

Microsoft wants the Xbox to be about more than just gaming; it’s working on its own in-house content like the upcoming TV show “The Music Room” which from the description sounds a bit like American Idol but for artists no one will ever hear of. [Source: Edge]

Last week, CNNMoney published an article with the headline, “Tesla sales beating Mercedes, BMW and Audi.” Audi has called foul on the headline, saying that while the Tesla Model S did outsell one of Audi’s luxury brands, Audi still sells over twice as many cars as Tesla. [Source: Audi]

To many, Yahoo’s acquisition of Flickr became a cautionary tale for small startups looking to get bought. Now, a day after its board approved the $1.1 billion acquisition of Tumblr, Yahoo has redesigned Flickr with bigger images and a more in-your-face Pinterest-y design, proving it hasn’t abandoned the photo-sharing network yet. [Source: Flickr]

Hackers who infiltrated Google’s network several years ago gained access to a database with information on US surveillance targets, the Washington Post reports. The purpose appears to have been finding out which Chinese intelligence operatives in the US may have been under surveillance by US law enforcement agencies. [Source: Washington Post]

The Cedar Rapids, Iowa-based startup, which aims to make it easier for businesses to find affordable Internet providers, was awarded the loan from the Iowa Economic Development Authority. The money will go to site updates. [Source: Silicon Prairie News]

The latest victim of the pro-Assad SEA is British newspaper the Daily Telegraph. According to reports, the Telegraph’s twitter handle began tweeting pro-regime messages. [Source: Business Insider]

Sensopia, the makers of the augmented reality software MagicPlan, has closed its latest round of funding at $1.2 million. In addition the company released a development kit today. [Source: VentureBeat]

Apple today released the text to Tim Cook’s upcoming senate testimony regarding the company’s tax practices. In the statement, Cook denies avoiding any taxes. [Source: The Verge]

Square has revealed a new product called Square Cash. While details about it are still nebulous, Cash will supposedly provide a platform for individuals to pay other individuals cash via email. [Source: TechCrunch]

In an attempt to build out its locations database, Facebook is now allowing users to submit and suggest photos for unadministered place pages. [Source: InsideFacebook]

Buyout firm Vista Equity Partners has acquired anti cyber and data theft software maker Websense. The deal came to about $1 billion. [Source: AllThingsD]

The latest update to Google Hangouts has removed the ability to make outbound calls. Users, however, are able to receive inbound calls. [Source: CNET]

After Google Hangout’s mobile launch, AT&T Android customers were unable to use its video chatting capabilities. Now AT&T has issued a statement saying it will be able to support any video chatting app by the end of the year. [Source: The Verge]