HandHeld Entertainment Acquires

San Francisco-based HandHeld Entertainment said Tuesday that it has acquired Seattle-based, a provider of a user-generated video sharing web site, in a deal worth $1.5M. provides an online service for user-generated entertainment videos. HandHeld Entertainment is a manufacturer of portable media players. According to HandHeld, the deal is comprised of $500K in cash plus a five year $1M note convertible to common stock.