Category Archives: eBay

Since bought StumbleUpon’s traffic has dropped seriously down; now climbing back

Since the time StumbleUpon was bought by eBay for $75M in cash there was little to no news on the company until today. Apparently in a quest for media attention StumbleUpon (or eBay) has contacted TechCrunch with some new numbers to show off with. We are not sure what StumbleUpon is up to and why they need media coverage, but there must be something. It could be either some new plans or products in the pipelines for which they are seeking coverage or it could also be the fact that the site has just started to recover from a deep dive in the traffic late last year for which the company now wants to let the world know.

Obviously ignoring their drop in the traffic, according some traffic measurement companies, (including comScore), they seem to drag the attention of influential technology bloggers to the number of their registered users and the number of their stumbles.

After del.icio.us StumbleUpon seems to be the second popular web site from the web 2.0 generation that tries to undermine the factor unique visitors. Interestingly only companies that see decline in their traffic (the same is the case with del.icio.us) try to do that while other sites that keep on growing seem to love the unique visitor measurement standard.

They boast about already having close to 5 million registered users, but they do not clarify what is the number of the active users among them. During the first quarter of 2008 their users, they claim, have already stumbled more than one billion times and the site is on its way to reach its five billionth stumble in total somewhere during the next months. However, the truth about their unique visitors does not look that good.

At the time eBay acquired the company for $75M in cash the site had reportedly less than 2M uniques per month, which puts the value of each of their users at close to $38 or something. comScore’s number for the May 2007 was close to 4M uniques, while Compete reports for less than 1M for the same period. We don’t believe either of those numbers to be very accurate and since the company has no word on their actual traffic we are taking the average number of what is publicly available as information. Few months after the acquisition StumbleUpon’s traffic has significantly dropped down to just 1.8 million in December 2007, which in any way represents a serious and worrying decline for the eBay’s web property, which might explain their PR activity today. Since then the site’s traffic is slowly recovering and is now close to 3.2 million per month, which might still be below the traffic at the time the acquisition took place if we take the comScore’s numbers for real.

In matter of honesty one must pay attention to the fact that some users at StumbleUpon are using their site through browser add-ons and are not often visiting the site, just like what del.icio.us’s founder Joshua Schachter has explained a few weeks ago in a answer to a question why their site is declining in traffic.

Whatever the case with StumbleUpon might today be it still remains one of the few great examples for hefty exits that many of the newer web 2.0 sites try to repeat with little to no luck so far. Having raised only $1.5M in angel money StumbleUpon has managed to sell itself to eBay for $75M all in cash.

More

http://stumbleupon.com
http://www.quantcast.com/stumbleupon.com
http://siteanalytics.compete.com/stumbleupon.com/?metric=uv
http://www.techcrunch.com/2008/04/23/five-million-users-and-nearly-five-billion-stumbles-later/
http://www.crunchbase.com/company/stumbleupon
http://2008.thenextweb.org/agenda/
http://www.techcrunch.com/2006/11/14/stumbleupon-may-be-for-sale-50m/
http://www.techcrunch.com/2008/04/10/delicious-not-shrinking-but-another-problem-looms/ 
http://web2innovations.com/money/2007/12/31/some-of-the-web%e2%80%99s-biggest-acquisition-deals-during-2007/ 

Wall Street plunged but does it affect the Web 2.0

Wall Street plunged at the opening of trading Tuesday, propelling the Dow Jones industrials down about 300 points after an interest rate cut by the Federal Reserve failed to assuage investors fearing a recession in the United States.

U.S. markets joined stock exchanges around the world that have fallen precipitously in recent days amid concerns that a downturn might spread around the world. U.S. bonds were mixed, with investors seeking safer investments as stocks plummeted. The oil price, by contrast, fell amid expectations that a downturn would depress demand for energy.

The Fed’s decision to cut its federal funds rate to 3.50% and the discount rate, the interest it charges to lend directly to banks, came a week before the central bank’s regularly scheduled meeting, a sign that the Fed recognized the seriousness of the world financial situation. But there were already fears in the markets before the Fed move that an interest rate wouldn’t be enough to prevent a recession. The cut was the biggest one-day rate move by the Fed since it lowered rates by a full percentage point in December 1991, when the country was trying to emerge from recession.

In the first hour of trading, the Dow was down 293.70, or 2.43 percent, at 11,805.60. The Dow was last below 12,000 in March 2007. The broader Standard & Poor’s 500 index was off 32.49, or 2.45 percent, at 1,292.70, while the Nasdaq composite index fell 66.82, or 2.86 percent, to 2,273.20.

It was the first time the Fed altered the target federal funds rate between scheduled meetings since the markets reopened after the Sept. 11, 2001 terrorist attacks.

It’s been a black year so far for stocks. The SP 500 index, the broadest measure of the stock market, has suffered its worst annual start ever, giving up about 13 percent in just three weeks. The Dow is down about 12 percent since the beginning of the year, and the Nasdaq is down approximately 15 percent.

On the other side the government bond prices surged as stocks fell and investors fled to safer securities. The yield on the benchmark 10-year Treasury note, which moves opposite its price, sank to 3.53 percent from 3.63 percent late Friday.

Both Asian and European markets have also fallen seriously where the Asian market was hit harder. Japan’s Nikkei stock average closed down 5.65 percent — its biggest percentage drop in nearly a decade. The German’s DAX for instance fell to the level of mid 2007, yet higher than the levels of January 2007.

Did the crisis affect the major Internet players anyway?

Below is a quick outlook of some of the more important Internet players and how their stocks performed for today. Clearly everything was colored in red.

Company / Stock Symbol / Last Trade / Change / Mkt Cap

  • Microsoft Corporation  MSFT  32.05   -0.96 ( -2.91% )  299.84B
  • Google Inc.  GOOG  590.14   -10.11 ( -1.68% )   184.62B
  • News Corporation  NWS.A  18.59   -0.10 ( -0.54% )  58.05B
  • Time Warner Inc.  TWX  15.07   -0.47 ( -3.02% )  54.62B
  • eBay Inc.  EBAY  27.13   -1.20 ( -4.24% )  36.68B
  • Amazon.com, Inc.  AMZN  77.62   -2.14 ( -2.68% )  32.31B
  • Yahoo! Inc.  YHOO  20.02   -0.76 ( -3.66% )  26.78B
  • Baidu.com, Inc. (ADR)  BIDU  270.40   -2.64 ( -0.97% )  9.12B
  • IAC/InterActiveCorp  IACI  24.14   +0.02 ( 0.08% )  6.85B
  • SINA Corporation (USA)  SINA  38.95   -0.26 ( -0.66% )  2.13B
  • Sohu.com Inc.  SOHU  39.99   -2.06 ( -4.90% )  1.49B
  • CNET Networks, Inc.  CNET  7.78   -0.38 ( -4.66% )  1.18B 

Alibaba.com Corp., yet another major Internet player, which is traded on the Honk Kong stock market, has today lost 8.91% from its market capitalization.

From all the companies we took a look at only IAC seems to be the winner for today (at the moment we checked them out) – having its stock price colored green.

The big loser could be Answers Corporation which got its stock smashed on Friday, dropping more than 23%. Answers’ plunge jeopardizes Lexico acquisition, which they were hoping to buy for $100M, a deal we have reported a few weeks ago. It is hard to believe that answers.com is attracting more than 34M unique visitors per month and the entire company is today worth less than $30M. The company once was over $140M worth when its stock was close to $18.

The venture capital market

Reporters went public today on the venture capital market released from PricewaterhouseCoopers and the National Venture Capital Association. Total venture funding for the year were up 10.8 percent to $29.4 billion, and up 11.5 percent for the fourth quarter of 2007 to $7 billion. That makes it the fourth straight quarter where VC deals were above the $7 billion mark, and the highest yearly total since 2001. 2007 was a year of steady gains for VC investing, the highest since the $40.6 billion invested in 2001 (and still well-below the $105 billion in 2000).

What about the new entrants from the web 2.0 age?

Facebook the most buzzed web 2.0 company seems to be rethinking the perfect time for their IPO and rumors are they are going to postpone it to at least 2009 or even 2010 if markets recover. Digg, yet another popular web site from the web 2.0 age, is trying to shop itself for months now at the $300M range but we hear no any news for potential acquisition of the social news site.

Despite all talks for possible recession in US and despite all huge losses the major banks in US have incurred, the web 2.0 deals appear to be more than ever before. For example only today [January 22, 2008] we have read about 10 deals at least where the average funding figures where close to $15M. Over the past 30 days, no matter we were in holiday season we have written down to report later more than 100 VC deals for web 2.0 companies, most of them start-up, and at least 20 acquisition and buy out deals with in the sector. Almost half of the deals reported on that particular day were acquisitions. Also today a major VC player has raised $577M late stage growth fund for. The web 2.0 market is going crazier from day to day and the peak seems not reached yet. Based on what we are witnessing the major credit and financial crisis in the states is not affecting the relatively small web 2.0 sector. All the VC activity within the sector gives no signals about crisis or any major slow down in the web 2.0 market, at least for now.
More

http://biz.yahoo.com/ap/080122/wall_street.html
http://www.nyse.com 
http://www.nasdaq.com
http://www.techcrunch.com/2008/01/21/venture-fundings-hit-294-billion-in-2007-the-year-in-charts/
http://finance.google.com/finance?q=GOOG
http://stocks.us.reuters.com/stocks/overview.asp?symbol=1688.HK
http://finance.google.com/finance?q=ANSW
http://www.bloggingstocks.com/2008/01/20/dilution-is-not-the-answers-com/
http://www.globes.co.il/serveen/globes/docview.asp?did=1000299719&fid=942

Proximic lands deals with Yahoo! and Shopping.com, said to be taking on AdSense, which is bad PR approach!

Content-delivery network Proximic, which has a unique contextual matching system, now has ads to sell that can help bloggers and others monetize their sites. The Munich Germany based start-up has signed deals to syndicate product listings from both eBay’s Shopping.com and Yahoo’s Shopping Network as contextual ads on other Websites. What other web sources claim the company is going to have more than 50 million product ad units in its data base coming in from both Yahoo! Shopping and eBay’s Shopping.com. Proximic estimates that Google, in contrast, has an inventory of about one million unique ads. Proximic’s ad network based on this massive inventory will launch at the end of January or early February 2008.

Web publishers are going to be offered with a way to place a widget on their sites, which Proximic is later going to use to serve ads on. Web site participating in the network are going to be later indexed and served up with contextually matching products as text ads along with contextually relevant content links. The ads and contextual links can also appear in a sidebar for anyone who has downloaded the Proximic Firefox add-on.

Proximic is neither matching context based on the keywords nor on the context itself. The company also says it doesn’t use semantic or statistical methodologies to understand the page’s meaning. “Semantic systems are not able to scale,” claims Proximic co-founder and CTO Thomas Nitsche. He also adds “If you hold more than one million documents, you run into a problem,”. Semantic search, he thinks, is too slow at this point for ad serving. Instead of keyword, semantic, or statistical approaches, Proximic uses proximity analysis to determine the page’s context. There is no much information publicly available as to how exactly it works, but from what we know and have read Proximic’s algorithm is translating each body of text into a pattern of characters that then becomes represented by a mathematical vector. Matches are done through traditional vector analysis. The company gives the following explanation:

We look at patterns of letters. We get a profile. The profile is a vector. We compare two vectors, and compute proximity by pattern distance. We can generate proximity between texts. The text can be one word, two words, 15 words, or a complete page.

We have read on other blogs claims of the sort Proximic is taking on Google AdSense, which has provoked us to give our 2 cents too and we think that such claims are, if anything, too boostful and not serious in any way and could be more harmful to the image of Proximic rather than brining anything like positive PR at the end of the day…

Ok, here we go with several potential problems, as we see them, Proximic is going to face and needs to deal with.

First
First off no site running Google AdSense is going to give up on its Google ads and earnings and replace them with an unknown start up that has little to no advertisers on its network. Why? Simply because Google does not allow your site or blog to run third party contextual ads (no matter what technology is used to match the context) on a page where their AdSense ad units run, which leaves little to no chance for Proximic’s contextual ads to stand off the ground any soon or at least not on sites that are currently Google AdSense publishers. There is clearly going to be a conflict of the two contextual ad units and Google is not going to be the one who will be dropped off by the web publishers.

Second
If Proximic is indexing each page, as we read above, that becomes part of its network then they would also need 600,000 servers to get any closer to what Google is today (check the link for more info about the Google’s computation expenditures).

Third
Revenue sharing with web publishers is not going to be very favorable for the web publishers who are going to participate in Proximic’s ad network after eBay, Yahoo! and Proximic itself all get their cut. We have read on Web that Proximic plans on giving participating websites 70 percent of any revenues after eBay and Yahoo! take their cut, which clearly leaves the publishers with a very small piece of the pie. On the other side, if they want to spread around Web, the way Google did, they have to pay web publishers serious money, lots of money, before even starting to think on competing with Google AdSense. Let’s put it that way: we see no way for Proximic to reach the payout Google achieved – $3.5B paid to web publishers in the first 3 quarters of 2007…

Forth
Proximic is not the first third party company to serve ad units from Yahoo! Shopping and eBay’s shopping.com. Even today you can sign up for Shopping.com or Yahoo! Shopping’s developer program and get listings up by next week. There are a number of other shopping engine syndication programs and most of them allow you to target to some extent. One of which is Shopzilla, among others, and Proximic is going to face fierce competition for the love of eBay and Yahoo!.

Fifth
In tests, Nitsche says Proximic is seeing click-through rates as high as 1.5 percent, which is much greater than the 0.25 percent or less that is typical for an AdSense campaign. That’s simply not true. We have been Google AdSense publisher since 2004 and our average click-through ratio has always been way above 1.5%, so speaking for precise targeting we’ll have to wait and see what Proximic is capable of.

Sixth
Proximic claims to be showing relevant results based on the content one is reading by gathering results from multiple sources, including Wikipedia but a weak point here is that they are not maintaining their own index massive, unlike Google. Just like with their third party sources of the information they deliver the same is with their product ads too, they are not theirs, which simply turns Proximic into an affiliate (middleman) company. Either way the company is vulnerable in case any of the third party information/ads providers leaves the game. 

Proximic is a privately funded company based in Munich, Germany and Palo Alto, California. Investors include Wellington Partners and the Holtzbrinck Group, the publisher of numerous publications including Scientific American. The company is said to have 14 employees.

Other players on the contextual arena include Amazon, LinkedWords, Turn, Tumri, Shopzilla, Vibrant Media and Kontera and BlogRovr, among others.

Amazon is also employing the same in-text contextual approach with their in-text linked words where once you mouse over them a JavaScript pop up message appears containing contextual web information and product ads from the huge data base of the shopping company.  

LinkedWords is yet another, already fairly popular, company known to deal with the contextual aspect of Web and is known to be the pioneer of the in-text linked words approach, been around even before Amazon adopted this interesting approach for spreading its products among third party web sites’ context. It runs a massive contextual platform built upon tens of millions of English words and phrases, which web publishers are using to get contextually linked to each other through their platform by using in-text linked words, as the company’s name implies itself. (Disclosure: we are using LinkedWords)

Other ad companies that are known to have tried the same are Turn and Tumri, among others.

More

http://www.proximic.com/
http://www.news.com/8301-10784_3-9850877-7.html?tag=nefd.blgs
http://www.news.com/8301-10784_3-9788569-7.html
http://web2innovations.com/money/2008/01/10/can-google-lead-amid-its-ever-growing-infrastructure-and-computation-expenditures/
http://www.techcrunch.com/2008/01/15/proximic-signs-deals-with-yahoo-and-ebay-to-turn-product-listings-into-contextual-ads-taking-on-adsense/
http://venturebeat.com/2008/01/16/proximic-signs-contextual-ad-deals-with-yahoo-shoppingcom-aims-for-adsense/
http://blog.express-press-release.com/2007/10/02/proximic-takes-on-google-but-overlooks-sphere-linkedwords-kontera-vibranmedia-and-others/
http://www.calacanis.com/2007/12/21/ads-as-content-or-testing-google-and-shopzilla/
 

From Half.com to FirstRound Capital

When Josh Kopelman has sold his company half.com to eBay for $350M back in 2000 he most probably did not know that in few years he would manage a small VC firm called FirstRound Capital and that his young venture capital firm would be at the center of nearly every hot trend in Silicon Valley. Fortune has recently named Josh and their VC firm as one of the top 6 innovation leaps for the 2007.

Some of the more popular start-ups they have invested in are LinkedIn, del.icio.us, 1-800-FREE411, Aggregate Knowledge, Powerset, Inc., Eventful, Like.com, Mint Software, Inc., RockYou, Wikia, VideoEgg, Yapta, among others.

His new company, FirstRound, makes relatively small commitments to entrepreneurs with big ideas – usually in the $250,000 to $750,000 range, which is generally too small and risky for Sand Hill Road – and sticks with them long enough to determine which business plans will work and which should be taken out back and shot. The company is not afraid of investing in pre-revenue companies.

In fact, FirstRound may prove to be a sign of things to come. Tech startups, especially in software, don’t need as much cash to get rolling these days. Since Kopelman’s firm is relatively small, investing smaller amounts can still generate meaningful returns — something the larger firms are struggling with. More important than all that, however, is Kopelman’s knack for picking winners. FirstRound has made great exits in companies like StumbleUpon (bought by eBay for $75 million), Voicestar (phone-to-web system; Marchex; $28 million), and Snapcentric (digital security; Verisign; $12 million).

More about First Round Capital

First Round Capital is an early stage venture capital firm managed by Joshua Kopelman, Chris Fralic, Rob Hayes and Howard Morgan. We look to partner with entrepreneurs to build innovative technology companies.

We are seed stage investors, often providing a company’s first outside capital, and are not afraid of investing in pre-revenue companies. We understand the challenges of launching a new product. We look to take an active role in most of the companies we invest in. We believe our experience, insight and expertise are far more valuable than our capital — and we look for entrepreneurs who feel the same.

We recognize that time is an extremely valuable resource for an entrepreneur — and seek not to waste it. We operate as an entrepreneurial shop and are able to make quick decisions. No investment committees. No months of negotiations. If we’re going to invest, we usually decide within days.

The firm is having offices in both West Conshohocken Philadelphia and San Francisco, California.     
   
More about Josh Kopelman

Josh has been an active entrepreneur and investor in the Internet industry since its commercialization. In 1992, while he was a student at the Wharton School of the University of Pennsylvania, Josh co-founded Infonautics Corporation – an Internet information company. In 1996, Infonautics went public on the NASDAQ stock exchange.

Josh founded Half.com in July of 1999, and led it to become one of the largest sellers of used books, movies and music in the world. Half.com was acquired by eBay in July 2000 — and Josh remained with eBay for three years, running the Half.com business unit and growing eBay’s Media marketplace to almost half a billion dollars in annual gross merchandise sales.

In late 2003 Josh helped to found TurnTide, an anti-spam company that created the world’s first anti-spam router. TurnTide was acquired by Symantec just six months later.

In addition to being an active angel investor, Josh has served as an Entrepreneur-in-Residence at Comcast Interactive Capital – a $350 million venture capital fund affiliated with Comcast Corporation.

Josh is an inventor on five U.S. Patents for his work in Internet technology. In June 2000, he was awarded Ernst and Young’s prestigious “Entrepreneur of the Year” award  
for the Greater Philadelphia region. Josh has also been recognized as one of the “10 Most Influential People in Philadelphia Technology” by the Philadelphia Inquirer, one of the “76 Smartest Philadelphians” by Philadelphia Magazine and as one of forty individuals under the age of forty who have made the biggest impact on the Philadelphia region by the Philadelphia Business Journal.

Josh is often quoted in industry trade journals and national newspapers, has appeared on numerous national television shows, and is a frequent speaker at industry-wide conferences on entrepreneurship, Internet marketing and the future of Internet services.

In 2001 Josh and his wife created the Kopelman Foundation, a non-profit organization focused on angel philanthropy to provide “start-up” grants to social entrepreneurs. He currently serves on the Board of Directors of Main Line Health, suburban Philadelphia’s most comprehensive healthcare resource, operating four of the region’s most-respected hospitals. He also serves on as a member of the advisory boards for Wharton Entrepreneurial Center and the Weiss Tech House at the University of Pennsylvania.

Josh earned a Bachelor of Science degree cum laude in Entrepreneurial Management and Marketing from The Wharton School of the University of Pennsylvania. 

More

http://www.firstround.com/
http://redeye.firstround.com/
http://money.cnn.com/galleries/2007/fortune/0712/gallery.sixleaps.fortune/5.html
http://www.linkedin.com/in/jkopelman
http://www.kopelman.org/

Some of the web’s biggest acquisition deals during 2007

As the end of the year approaches us we would like to briefly sum up some of the web’s biggest acquisition deals for the 2007, as we know them. 

All deals will logically be ranked by their sizes and less weight will be put on the time the deal happened through out the year. Deals from all IT industry sectors are considered and put in the list, from Web and Internet to the Mobile industry as well. The size’s criterion for a deal to make the list is to be arguably no less than $100M unless the deal is symbolic in one way or another or either of the companies involved was popular enough at the time the deal took place. Otherwise we think all deals are important, at least for its founders and investors.

Under no doubt the year we will remember with the number of high-profile advertising company acquisitions for large-scale companies like DoubleClick, aQuantive, RightMedia, 24/7 Real Media, among others. Putting all acquisition deals aside, one particular funding deal deserves to be mentioned too Facebook raised $240 million from Microsoft in return of just 1.6% of its equity. The Honk Kong Billionaire Li Ka-shing later joined the club of high-caliber investors in Facebook by putting down $60M for unknown equity position.  

Other remarkable funding deals include: Alibaba.com raised $1.3 Billion from its IPO; Kayak raised $196 Million; Demand Media took $100 Million in Series C; Zillow totaled $87 Million in venture capital funding; Joost announced $45 million funding from Sequoia, Index, CBS & Viacom, among others. 

Yet another noteworthy deal is the Automattic (wordpress.org) turning down a $200 Million Acquisition Offer. 

And the 2007 Web 2.0 Money winner is… Navteq for its deal with Nokia for $8B. Apparently Microsoft has this year lost the crown of being named the deepest pocket buyer.

Nokia Buys Navteq For $8 Billion, Bets Big On Location-Based Services

Nokia (NOK), the Finnish mobile phone giant with nearly a third of the global handset market, has decided to bet big on location based services (LBS), and is buying Chicago-based digital map company NAVTEQ (NVT) for $8.1 billion. That works out to about $78 a share. This is one of Nokia’s largest purchases to date — the Finnish mobile giant has a mixed track record when it comes to acquisitions. This is also the second megabillion dollar buyout in the maps (LBS) space.

SAP Germany makes its biggest deal ever – acquires Business Objects for 4.8B EURO (around ~$6.8 billion)

SAP, the world’s largest maker of business software, has agreed to acquire Business Objects SA for €4.8 billion euros, which was around ~$6.8 billion at the time the acquisition deal was announced. The deal is amongst the largest for 2007 alongside with Oracle’s Hyperion deal for over $3.3B and the Nokia’s Navteq for over $8B. [more]

Microsoft to buy Web ad firm aQuantive for $6 Billion

Microsoft Corp. acquired aQuantive Inc. for about $6 billion, or $66.50 a share, an 85 percent premium to the online advertising company’s closing price at the time the deal was publicly announced. Shares of aQuantive shot to $63.95 in pre-opening trade, following news of the deal. The all-cash deal tops a dramatic consolidation spree across the online advertising market sparked when Google Inc. agreed to buy DoubleClick for $3.1 billion.

Oracle to buy Hyperion in $3.3 Billion cash deal

Oracle Corp. has acquired business intelligence software vendor Hyperion Solutions Corp. for $3.3 billion in cash. Oracle has agreed to pay $52 per share for Hyperion, or about $3.3 billion, a premium of 21% over Hyperion’s closing share price at the time of the deal. Oracle said it will combine Hyperion’s software with its own business intelligence (BI) and analytics tools to offer customers a broad range of performance management capabilities, including planning, budgeting and operational analytics.

Cisco Buys WebEx for $3.2 Billion

Cisco has agreed to acquire WebEx for $3.2 billion in cash. In 2006, WebEx generated nearly $50 million in profit on $380 million in revenue. They have $300 million or so in cash on hand, so the net deal value is $2.9 billion.

DoubleClick Acquired by Google For $3.1 Billion In Cash

Google reached an agreement to acquire DoubleClick, the online advertising company, from two private equity firms for $3.1 billion in cash, the companies announced, an amount that was almost double the $1.65 billion in stock that Google paid for YouTube late last year. In the last month for this year the US Federal Trade Commission has granted its approval for Google to purchase DoubleClick.

TomTom Bought Tele Atlas for $2.5 Billion

It took $2.5 Billion dollars for TomTom to buy mapping software company TeleAtlas, this will set the stage for TomTom to be big rival of Garmin across Atlantic. Tele Atlas went public in 2000 on the Frankfurt Stock Exchange, and last year, it bought another mapping firm, New Hampshire-based GDT.

Naspers acquires yet another European company – Tradus for roughly $1.8 Billion

Simply put a fallen dot com star with eBay ambitious, once worth more than 2B British pound (around $4B) and collapsed down to £62M at the end of 2000 is now being basically said rescued by the South African media company Naspers that is spending money at breakneck pace. The offered price is £946M (more than $1.8B) based on just £60M annual revenues. [more]

HP acquired Opsware For $1.6 Billion

HP has acquired IT Automation company Opsware for $1.6 billion. Whilst any acquisition of this size is interesting in itself, the back story to Opsware is even more so; Opsware was originally LoudCloud, a Web 1.0 company that took $350 million in funding during the Web 1.0 boom.

AOL acquired TradeDoubler for $900 Million

AOL has acquired Sweden-based TradeDoubler, a performance marketing company, for €695 million in cash, which was about US$900 million at the time the deal took place.

Microsoft acquired Tellme Networks for reportedly $800 Million

Microsoft Corp. has announced it will acquire Tellme Networks, Inc., a leading provider of voice services for everyday life, including nationwide directory assistance, enterprise customer service and voice-enabled mobile search. Although the price remains undisclosed, it is estimated to be upwards of $800 million.

Disney acquires Club Penguin for up to $700 Million

Club Penguin, a social network/virtual world that has been on the market for some time, was acquired by The Walt Disney Company. An earlier deal with Sony fell apart over the Club Penguin’s policy of donating a substantial portion of profits to charity. The company, which launched in October 2005, has 700,000 current paid subscribers and 12 million activated users, primarily in the U.S. and Canada.The WSJ says the purchase price is $350 million in cash. Disney could pay up to another $350 million if certain performance targets are reached over the next couple of years, until 2009.

Yahoo acquired RightMedia for $680 Million in cash and stock

Yahoo has acquired the 80% of advertising network RightMedia that it doesn’t already own for $680 million in cash and Yahoo stock. Yahoo previously bought 20% of the company in a $45 million Series B round of funding announced in October 2006. The company has raised over $50 million to date.

WPP Acquires 24/7 Real Media for $649 Million

Online advertising services firm 24/7 Real Media was acquired by the WPP group for $649 million. The old time internet advertising firm had its origins serving ads for Yahoo! and Netscape in 1994 and was formerly founded the following year as Real Media. After numerous acquisitions it took its current name and grew to have 20 offices in 12 countries, serving over 200 billion advertising impressions every month.

Google bought the web security company Postini for $625M

Google has acquired e-mail security company Postini for $625 million, a move intended to attract more large businesses to Google Apps. More than 1,000 small businesses and universities currently use Google Apps, but ‘there has been a significant amount of interest from large businesses,’ Dave Girouard, vice president and general manager of Google Enterprise, said in a Monday teleconference.

EchoStar Acquires Sling Media for $380 Million

EchoStar Communications Corporation, the parent company for DISH Network, has announced its agreement to acquire Sling Media, creator of the Sling suite, which lets you do things like control your television shows at any time, from their computers or mobile phones, or record and watch TV on your PC or Windows-based mobile phone. The acquisition is for $380 million.

ValueClick acquired comparison shopping operator MeziMedia for up to $352 Million

ValueClick has acquired MeziMedia for up to $352 million, in a deal consisting of $100 million in upfront in cash, with an additional sum of up to $252 million to be paid depending on MeziMedia’s revenue and earnings performance through to 2009.

Yahoo Acquires Zimbra For $350 Million in Cash

Yahoo has acquired the open source online/offline office suite Zimbra. The price: $350 million, in cash, confirmed. Zimbra gained wide exposure at the 2005 Web 2.0 Conference. Recently they has also launched an offline functionality.

Business.com Sells for $350 Million

Business.com has closed another chapter in its long journey from a $7.5 million domain name bought on a hope and a prayer, selling to RH Donnelley for $350 million (WSJ reporting up to $360 million). RH Donnelley beat out Dow Jones and the New York Times during the bidding.

AOL acquired online advertising company Quigo for $350 Million

AOL announced plans to buy Quigo and its services for matching ads to the content of Web pages. The acquisition follows AOL’s September purchase of Tacoda, a leader in behavioral-targeting technology, and comes as AOL tries to boost its online advertising revenue to offset declines in Internet access subscriptions.

eBay bought StubHub For $310 Million

eBay has acquired the San Francisco-based StubHub for $285 million plus the cash on StubHub’s books, which is about $25 million.

Yahoo! Agreed to acquire BlueLithium for approximately $300 Million in cash

Yahoo! Inc. has entered into a definitive agreement to acquire BlueLithium, one of the largest and fastest growing online global ad networks that offers an array of direct response products and capabilities for advertisers and publishers. Under the terms of the agreement, Yahoo! will acquire BlueLithium for approximately $300 million in cash.

CBS to buy social network Last.fm for $280 Million

CBS is known to have paid $280 million for the Last.fm site, which caters to music fans. CBS Corp bought the popular social networking website organized around musical tastes for $280 million, combining a traditional broadcast giant with an early leader in online radio. Last.fm, claims more than 15 million monthly users, including more than 4 million in the U.S.

AOL Acquired Tacoda, a behavior targeting advertising company for reportedly $275 Million

AOL has announced the acquisition of New York-based Tacoda earlier this year, a behavior targeting advertising company that was founded in 2001. The deal size, which we haven’t had confirmed, is likely far smaller than Microsoft’s $6 billion for aQuantive , Yahoo’s $680 million for RightMedia , or Google’s $3.1 billion for DoubleClick. The price might be low enough that it isn’t being disclosed at all.Jack Myers Media Business Report has confirmed the $275 million price tag

MySpace to acquire Photobucket For $250 Million

MySpace has acquired Photobucket for $250 million in cash. There is also an earn-out for up to an additional $50 million. Oddly enough MySapce has dropped Photobucket off its social networking platform. The dispute that led to the Photobucket videos being blocked on MySpace letter also led to acquisition discussions, and the block was removed. They have hired Lehman Brothers to help sell the company. They were looking for $300 million or more, but may have had few bidders other than MySpace.

Hitwise Acquired by Experian for $240M

Hitwise, the company that performs analysis of log files from 25 million worldwide ISP accounts to provide relative market share graphs for web properties, has been acquired by Experian for $240 million.

$200+ Million for Fandango

Comcast paid $200 million or perhaps a bit more. Fandango revenue is said to be in the $50m/year range, split roughly evenly between ticket sales and advertising. Wachovia Securities analyst Jeff Wlodarczak estimated the multiple-system operator paid $200 million for Fandango, whose backers include seven of the 10 largest U.S. movie exhibitors.

Intuit Acquires Homestead for $170 Million

Small business website creation service Homestead, started out in the web 1.0 era, announced tonight that it has been acquired by Intuit for $170m. In addition to Intuit’s personal and small business accounting software, and the company’s partnership with Google to integrate services like Maps listing and AdSense buys, Intuit customers will now presumably be able to put up websites quickly and easily with Homestead. [more]

Naspers Acquired Polish based IM Company Gadu Gadu (chit-chat) for reportedly $155 Million

South Africa’s biggest media group Naspers Ltd offered to buy all outstanding shares in Polish Internet firm Gadu Gadu S.A. ( GADU.WA ), a Polish IM service, for 23.50 zlotys ($8.77) per share. The current majority shareholder of Gadu Gadu has agreed to tender its 55% shareholding in the public tender offer. The price is $155M. [more

Studivz, a Germany Facebook clone, went for $132 Million

German Facebook clone Studivz has been sold to one of its investors, Georg von Holtzbrinck GmbH, a German publishing group, for €100 million (about $132 million). Other investors of Studivz include the Samwer brothers, founders of ringtone company Jamba (sold for €270M) and Alando (sold to eBay for €43M in 1999).

Feedburner goes to Google for $100 Million

Feedburner was acquired by Google for around $100 million. The deal is all cash and mostly upfront, according to sources, although the founders will be locked in for a couple of years.

Answers.com has purchased Dictionary.com for reportedly $100 Million

Question and answer reference site Answers.com has acquired Dictionary.com’s parent company, Lexico Publishing, for $100 million in cash. Lexico can really serve all your lexical needs because it also owns Thesaurus.com and Reference.com.

Yahoo Acquires Rivals for $100 Million

Yahoo has acquired college sports site Rivals.com, reported the Associated Press in a story earlier this year. The price is not being disclosed, although the rumor is that the deal was closed for around $100 million. Rumors of talks first surfaced in April 2007.

UGO Acquired By Hearst for reportedly $100 Million

Hearst has acquired New-York based UGO. Forbes reported the price should be around $100 million. UGO is a popular new media site that was founded in 1997 and, according to Forbes, is generating around $30 million/year in revenue. UGO media is yet another web 1.0 veteran and survivor.

Fotolog Acquired by Hi Media, French Ad Network for $90 Million
 
New York-based Fotolog been acquired by Hi Media, a Paris-based interactive media company for roughly $90 million – a combination of cash and stock, according to well-placed sources. 

Online Backup Startup Mozy Acquired By EMC For $76 Million

Online storage startup Mozy, headquartered in Utah, has been acquired by EMC Corporation, a public storage company with a nearly $40 billion market cap. EMC paid $76 million for the company, according to two sources close to the deal.

eBay Acquiring StumbleUpon for $75 Million

The startup StumbleUpon has been rumored to be in acquisition discussions since at least last November (2006). The small company had reportedly talks with Google, AOL and eBay as potential suitors. At the end of the day the start-up got acquired by eBay. The price was $75 million, which is symbolic with the fact the site had only 1.5m unique visitors per month at the time the deal took place. The company was rumored to be cash-positive.

General Atlantic Has Acquired Domain Name Pioneer Network Solutions

General Atlantic has acquired Network Solutions from Najafi Companies. Network Solutions was founded decades ago in 1973 and had a monopoly on domain name registration for years which led Verisign to pay billions to buy it. Najafi Companies purchased NS from VeriSign in November 2003 for just $100M. No financial terms were disclosed for the deal and no price tag is publicly available, although we believe it is way over $100M, but NS made our list due to its mythical role for the Internet’s development. That deal is symbolic for the Internet. 

MSNBC made its first acquisition in its 11-year history, acquired Newsvine

In a recent deal the citizen journalism startup Newsvine has been acquired by MSNBC, the Microsoft/NBC joint venture, for an undisclosed sum. Newsvine will continue operating independently, just as it has been since launching in March of 2006. The acquired company also indicated there would be little change in the features of the site.  We think the price tag for the Newsvine is anywhere in the $50/$75M range, but this is not confirmed. [more]

Google to buy Adscape for $23 Million

After some rumors of a deal earlier this year, Google has expanded its advertising reach by moving into video game advertising with their $23 million acquisition of Adscape.

Disney buys Chinese mobile content provider Enorbus for around $20 Million

Disney has bought Chinese mobile gaming company Enorbus , for around $20 million, MocoNews.net has learned. Financial backers in the company included Carlyle and Qualcomm Ventures.

BBC Worldwide Acquires Lonely Planet

BBC Worldwide, the international arm of BBC, has acquired Lonely Planet, the Australia-based travel information group. The amount of the deal was not disclosed, but Lonely Planet founders Tony and Maureen Wheeler get to keep a 25% share in the company. We truly believe this deal is in the $100M range, but since no confirmation was found on Web and therefore we cannot put a price tag for the sake of the list. Even though a global brand their site is getting just 4M unique visitors per month.

AOL Acquires ADTECH AG

AOL has acquired a controlling interest in ADTECH AG, a leading international online ad-serving company based in Frankfurt, Germany. The acquisition provides AOL with an advanced ad-serving platform that includes an array of ad management and delivery applications enabling website publishers to manage traffic and report on their online advertising campaigns. No details about the acquisition price were found on Web but we would suspect a large-scale deal and rank it very high. 

Amazon Acquires dpreview.com

Amazon have announced the acquisition of the digital camera information and review site dpreview.com. UK based dpreview.com was founded in 1998 by Phil Askey as a site that publishes “unbiased reviews and original content regarding the latest in digital cameras. Dpreview.com has in excess of 7 million unique viewers monthly. The value of the deal was not disclosed but we believe the purchase price should be in the $100M range (not confirmed).

HP Acquired Tabblo

HP announced the acquisition of Cambridge, Massachusetts based Photo printing site Tabblo this morning. The price was not disclosed.

eBay Gets Stake in Turkish Auction Market

eBay announced yesterday that it has acquired a minority stake in Turkish-based GittiGidiyor.com, an online marketplace structured in a similar manner to eBay. GittiGidiyor reportedly has more than 400,000 listings and 17 million users, which is a considerable percentage of the Turkish population. With the stake in GittiGidiyor, eBay now has the opportunity to enter the Turkish market via a system that’s already similar to theirs in functionality and purpose. Istanbul-based GittiGidiyor.com was founded in 2000. GittiGidiyor is Turkish for Going, Going, Gone. Terms of the deals were not found publicly available. Looking at the size of the Turkish site and the buying habits and history of eBay, the price should be considerably high, at least for the region.

Microsoft Acquiring ScreenTonic for Mobile Ad Platform

Microsoft is acquiring ScreenTonic, a local-based ads delivery platform for mobile devices, for an undisclosed amount. Paris-based ScreenTonic was founded in 2001, and has created the Stamp platform to deliver text or banner links on portals, text message ads and mobile web page ads, that vary depending on the recipients’ geographical location in a so called geo-targeting approach. 

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