Microsoft Said to Consider “Surface Phone” as Plan B

While testifying to the Senate Judiciary Committee on Wednesday, FBI Director Robert Mueller confirmed that the agency owns and operates drones for domestic surveillance, describing their use “very seldom.” The laws governing operation such usage have not yet been established. [Source: Mashable]

Many startups are adjusting their Q3 roadmaps in light of the newly announced iOS 7 update, and according to CrunchFund partner Michael Arrington Android is the big loser. Several companies in Arrington’s portfolio and others he has spoken to have temporarily shelved their Android development plans and redeployed resources to focus on updating their apps ahead of the fall iOS launch. [Source: Uncrunched]

Apple has expanded the programming available to owners of its Apple TV set top boxes, adding HBO GO and WatchESPN, as well as Sky News, Crunchyroll, and Qello. [Source: Apple]

Tesla announced a partial recall late last night involving Model S sedans delivered to customers in May and June of this year due to an issue involving potential weakness in the rear seat mounts. The announcement states that there have been no related incidents, complaints, injuries, or regulatory involvement, and that the recall is voluntary and proactive. [Source: Tesla]

The LA Unified School district has signed a $30 million contract with Apple to provide an iPad to every student across 47 campuses. But by naming Apple its preferred and exclusive vendor, the district will likely spend hundreds of millions over the coming years to equip all 640,000 students across 1,087 schools. Apple will charge $678 per tablet and will pre-load the devices with educational software. [Source: LA Times]

Digital sleuths looking into the beta release code for iOS 7 have spotted clues of LinkedIn “deep integration,” similar to that currently offered around Facebook and Twitter. Such integration would allow users to easily post content to the social network and log into other apps using LinkedIn credentials. [Source: 9to5Mac]

ThousandEyes, a provider of provides IT performance management services, has raised $5.5 million in Series A funding from Sequoia Capital and angel investors. The company also emerged from stealth mode today. [Source: ThousandEyes]

Talent acquisition software company Entelo has raised $3.5 million new funding led by Battery Ventures with participation from Menlo Ventures. Tech companies such as Box, Groupon, Square and Yelp use Entelo’s tools for recruiting. [Source: Entelo]

Nextt, a private social network, raised $700,000 in seed funding led by Venture Investors and Great Oaks Venture Capital. The Wisconsin-based company was founded by Mark McGuire, who previously founded include NameProtect.com, which sold to Corporation Service Company and Jellyfish.com, which sold to acquired by Microsoft. [Source: Nextt]

Card Scanning Solutions, a provider of software which reads data on ID cards and official documents raised new funding of an undisclosed amount from Insight Venture Partners, Red Oak Growth Partners, and Egis Capital Partners. [Source: Card Scanning Solutions]

Scribble Technologies, a provider of “real-time engagement management solutions,” whatever that means, has raised $8 million in a new round of funding led by Georgian Partners with participation from Export Development Canada, Summerhill Venture Partners and Rogers Venture Partners. [Source: Scribble Technologies]

TripAdvisor has acquired GateGuru, a mobile app for flight and airport information. GateGuru, based in New York, has raised more than a million in seed funding from Allen Morgan of Mayfield Fund, Chamath Palihapitiya of Social+Capital Partnership, Former Thomson Reuters CEO Tom Glocer, founder of Gerson Lehrman Group Thomas Lehrman, founder of Seatguru.com Matthew Daimler, and BVH founder Bradley Harrison, along with Dave Morgan and Zachary Aarons. [Source: GateGuru]

Backed by $15 million in funding from Andreessen Horowitz, Battery Ventures, Peter Wagner and four of the original VMware founders, Cumulus Networks today emerged from stealth mode and launched Cumulus Linux, a Linux operating system for datacenter networking. [Source: Cumulus Networks]

Fab has raised $150 million in new funding from new investors Tencent and Itochu, alongside previous backers Atomico, Andreessen Horowitz, Menlo Ventures, RTP Capital, Pinnacle Ventures, Lars Hinrichs, and Docomo Capital. The new round values Fab at $1 billion. The company plans hit $200 million to $300 million in sales this year 2013, which is twice last year’s revenue. A source familiar with the situation told PandoDaily that Fab lost $90 million last year and will lose somewhere in the ballpark of $50 million this year. The company plans to raise another $50 million to $100 million in the next year. [Source: Bloomberg]

Rolling Stone and Buzzfeed reporter Michael Hastings died early this morning in a car accident at the age of 33. Hastings’ uncompromising 2010 profile of General Stanley McChrystal led to the general being recalled to Washington by President Obama and resigning shortly thereafter. [Source: Buzzfeed / Rolling Stone]

The same day Carl Icahn proposed that Dell offer to buy back as many as 1.1 billion shares at $14 a share, Dell’s special committee struck down the proposal, saying it’s “not, in its present state, a transaction that the special committee could endorse or execute.” [Source: AllThingsD]

According to a White House statement, the US and Russia have reopened a Cold War era hotline to help prevent cyberwar. The countries will use the hotline to share information about hacking attacks. [Source: Verge]