Category Archives: Acquisitions

What is the real reason Automattic bought Glavatar?

As some of you already know w2i (web2innovations.com) is keeping an internal archive of almost all funding and acquisition deals that happened over the past years on web. While we have the ambitions to report on all of them the deals are so many so that we end up only writing about some of the most interesting ones. The same is the case with Automattic when they bought Glavatar some months ago. We kept the news in our archive for quite long time trying to figure out ourselves what is the real motive behind the acquisition of Glavatar and since we came up to no particular synergy and reason we have decided today to simply write about.

First off Automattic is the company behind the popular blog software WordPress. The site is amongst the most popular on web with more than 90M uniques per month. When Matt Mullenweg, announced the deal on the Glavatar’s blog he wrote about so many improvements that Glavatar is going to face with its new owner. Such as scaling things up, they transferred the Rails application and most of the avatar serving to WordPress.com’s infrastructure and servers. Avatar serving was said is already more than three times as fast, and works every time. They’ve also moved Glavatar’s blog from Mephisto to WordPress, of course.

He further said “Basically, we did the bare minimum required to stabilize and accelerate the Gravatar service, focusing a lot on making the gravatars highly available and fast. However our plans are much bigger than that.” Among those are all of the Premium features have gone free, and refunding was offered to anyone who bought them in the last 60 days; gravatar serving moved to a Content Delivery Network (CDN) so not only will they be fast, it’ll be low latency and not slow down a page load; Merging the million avatars WordPress had with the 115,000 or so Glavatar brought on the table after the deal and make them available through the Gravatar API; integrate and improve templates and bring features like multiple avatars over; from WordPress.com, bring the bigger sizes (128px) over and make that available for any Gravatar (Gravatars are only available up to 80px); Adding Microformat support for things like XFN rel=”me” and hCard to all avatar profile pages (that is in particular an interesting move); develop a new API that has cleaner URLs and allows Gravatars to be addressed by things like URL in addition to (or instead of) email addresses and not last rewrite the entire application itself to fit directly into WordPress.com’s grid, for internet-scale performance and reliability.

These days after Yahoo announcing big plans of moving towards web semantics and adopting some of the microformats and hinting LinkedIn for possible better relations with their data set if they adopt them too is a clear signal that web is slowly moving towards semantically linking of data. Automattic is obviously looking forward to that time too with its plans to add microformats like XFN (XHTML Friends Network) and hCard (simple, open, distributed format for representing people, companies, organizations, and places, using a 1:1 representation of vCard (RFC2426) properties and values in semantic HTML or XHTML). An interesting example of contextually and semantically linked web data is LinkedWords and, as you can see, the way we use them to semantically and contextually link words across our texts and connect them to their contextual platform.

So far so good, but nothing from the above indicates what is the reason Automattic bought the site called Glavatar. It is definitely neither because of their user base (only 115K) nor because of the technology, obviously. Employment through acquisition? Not really, Tom Werner, the founder of Glavatar is being said to be a big Ruby guy and taking into consideration the fact Matt seems to be moving towards PHP with Glavatar it seems highly unlikely for Tom to stay with Automattic.

From everything being said publicly it turns out that Automattic has decided to help the small site work better, but no clear benefits are seen for their company from this deal, or at least not to us.

We do believe Matt where he says “our plans are much bigger than that”, but what those plans are? Building a social network upon the avatars and the profile data associated with or perhaps having an online identity service built upon. Or, perhaps, simply building a global avatar service (with in-depth profiles) makes more sense for a company that commands over 100M uniques per month rather than for a tiny web site like Glavatar.

Whatever the case is congratulations to the involved. Terms of the deal were not publicly disclosed.

More about Glavatar

The web is no longer about anonymous content generated by faceless corporations. It is about real people and the real content that they provide.

It is about you.

But as powerful as the web has become, it still lacks the personal touch that comes from a handshake. The vast majority of content you come across on the web will still be near-anonymous even though it may have a name attached. Without knowing the author behind the words, the words cannot be trusted. This is where Gravatar comes in.

Gravatar aims to put a face behind the name. This is the beginning of trust. In the future, Gravatar will be a way to establish trust between producers and consumers on the internet. It will be the next best thing to meeting in person.

Today, an avatar. Tomorrow, Your Identity–Online.

More

http://gravatar.com/
http://site.gravatar.com/site/about
http://automattic.com/
http://blog.gravatar.com/2007/10/18/automattic-gravatar/
http://www.readwriteweb.com/archives/automattic_acquires_gravatar.php
http://www.quantcast.com/p-18-mFEk4J448M
http://microformats.org/wiki/Main_Page
http://rubyisawesome.com/

22M uniques / mo site (Bebo) goes to AOL for $850M in all cash deal

Bebo, the global social network strong enough in UK and among the first in US, has quietly been up for sale for quite some time shopped around by the secretive investment firm Allen & Co. A number of potential acquires passed on a deal for Bebo, including News Corp., Microsoft and Google, sources tell. Yahoo is also rumored to may have also taken a long look. Until now when AOL has publicly announced they had acquired bebo.com for $850M in a deal all in cash off only $20M in revenues for 2007. AOL and Bebo have been in talks since September 2007. It is also publicly known fact that Bebo was looking for a price over $1B.

Launched in the middle of 2005 Bebo had quickly grown to millions of visitors per month and today stands at over 40M registered users as per company’s claims. Bebo has raised only (taking into consideration their exit number) $15M from Balderton Capital, which represents a very nice exit for the venture capitalists.  Competitors include MySpace, Facebook, Friendster, Piczo, Google’s Orkut, Flickr, and literally an endless army of social networking sites around the globe. Bebo has offices in the UK, San Francisco and Austin, TX with over 100 employees.

A quick look into the numbers reveals that AOL paid roughly $22 per registered user in Bebo’s acquisition. comScore reports for 22M unique visitors per month to bebo.com, which values each unique visitor at $39. Quantcast reports for less than 2M American visitors per month to bebo’s site but since the site appears to be not quantified we should not take these numbers for the correct ones.

Richard MacManus from RWW does not think this will make much headway for either company and calls it that way “Ultimately we’re talking about two middle of the road Web brands”. The Wall St Journal’s Kara Swisher has analyzed the deal and thinks in first place the numbers are not so big but sees that AOL is getting very attractive social-networking service and a very experienced exec who has been running it. According to the several sources, she quotes, who were privy to Bebo’s financials, for example, Bebo’s revenues for 2006 were only $7 million with $3 million in EBITDA. In 2007, the results are still small, with $20 million in revenues and $5 million in EBITDA. Using 2007 results, that means Time Warner’s (TWZ) AOL paid a handsome 42.5 times revenues and an incredible 160 times EBITDA.

Current President Joanna Shields (in the middle) is said will continue to run Bebo and will report to AOL President Ron Grant (in right) while the founders Michael Birch and Xochi Birch will shortly be leaving the startup, apparently.

Since its inception, Bebo has established a radical new vision for online media and engagement marketing, combining community, self-expression and entertainment, enabling its members to consume, create, discover, curate and share digital content in entirely new ways.  Bebo global users have high engagement levels spending an average of 33 minutes a day on the site. Its groundbreaking Open Media platform ushered in a new way for Bebo users to experience content online, while giving global media companies like MTV, CBS, BBC and more than 400 others, a new way to promote, distribute and monetize their programming. “Engagement Marketing,” is Bebo’s initiative for brands to build long-term relationships with their target audience.  Today, brands from Apple to Nike use Bebo as a platform to establish ongoing conversations with consumers. Bebo pioneered the blending of Web-native original content with interactivity in the social networking environment by co-producing “KateModern,” the most successful TV show on the Web, now in its second season, followed by the soon to be premiered “Sophia’s Diary,” and the upcoming “Gap Year.” In December 2007, Bebo opened its platform to external application developers becoming the first social network to embrace both Facebook and OpenSocial APIs. (a confusing signal, as up till then everyone had assumed that OpenSocial and Facebook platform were direct competitors.) To date, more than 1500 applications have joined the network.

Together with its AIM and ICQ personal communications network, the acquisition will give AOL a premier position in the fast growing world of social media with a network of approximately 80 million unique users.

With a total membership of more than 40 million worldwide, Bebo is a global social media network which combines community, self-expression and entertainment to enable its users to consume, create, discover and share content. Bebo is one of the leading social networks in the UK, and is ranked number one in Ireland and New Zealand, and number three in the U.S. in terms of engagement. Its users are heavily engaged and view an average of 78 pages per usage day.

The deal comes just one week after AOL’s launch of Open AIM 2.0, an initiative that allows the developer community greater freedom to access the AIM network and integrate AIM into its sites and applications, and the announcement by Apple of a downloadable AIM application for the iPhone.

“Bebo is the perfect complement to AOL’s personal communications network and puts us in a leading position in social media,” said Randy Falco, Chairman and CEO, AOL. “What drew us to Bebo was its substantial and fast-growing worldwide user-base, its vision of a truly social web, and the monetization opportunities that leverage Platform-A across our combined global audience. This positions us to offer advertisers even greater reach and marketers significant insights into the desires and needs of consumers.”

“AOL understands the shifting dynamics of the Web and has clearly demonstrated its commitment to leveraging the ever-increasing power of social networks,” said Bebo President, Joanna Shields. “With one and the same vision in this area, it was a natural progression for Bebo to join AOL, and we look forward to working together to continue to expand the online social experience globally.”

“Bebo’s dynamic management team recognizes that the Internet is less about destination and more about connecting people, culture and lifestyles,” said Ron Grant, President and COO, AOL.  “This acquisition supports our key objectives – accelerating the growth, engagement and monetization of one of the world’s most engaged online communities.” 

Analyst eMarketer predicts that by 2011, $4.1 billion will be spent worldwide for social network advertising – a dramatic increase from the $480 million spent in 2006.  In 2008 alone, global ad spend in the social networking arena is expected to increase 75% year over year, amounting to $2.1 billion.

In recent months, AOL has moved aggressively to bolster its position in areas critical to its emergence as a leading advertising-supported Web media and marketing company. Building on its number one position in third party display with Advertising.com, AOL has spent nearly $1 billion on online advertising acquisitions, including market leaders like ADTECH, buy.at, Lightningcast, Quigo, TACODA and Third Screen Media to create Platform-A. Platform-A is the top display ad serving network focused on helping marketers build brands that perform online.* In Web content, AOL’s revitalized network of sites has experienced five months of consecutive page view growth and key categories like Music, Television, Moviefone, TMZ, Money & Finance, News, Living and Body are all in the top four in their respective categories.

As part of its international growth plans, AOL has launched 17 international web sites over the last year and has plans to expand to 30 countries outside the U.S. by the end of 2008. In addition, AOL teamed up with HP last September to include localized versions of the AOL.com portal and other AOL services as the default setting on HP computers shipped in the United States and around the world. Bebo, which has announced plans to launch in five countries this year, will be featured prominently in AOL’s international expansion efforts after the deal is closed.

AOL was advised by Banc of America Securities LLC and Deutsche Bank Securities Inc. Bebo was advised by Allen & Co.

The deal is said to be subject to U.S. and EU antitrust regulations before it effectively closes.

More about AOL

A Global Ad-Supported Web Services Company

AOL is a leading global advertising-supported Web company, with the most comprehensive display advertising network in the U.S., a substantial worldwide audience, and a suite of popular Web brands and products.

The company’s strategy focuses on increasing the scale and sophistication of its advertising platform and growing the size and engagement of its global online audience through leading products and programming.

Core Statistics

  • 109 million – Average domestic monthly unique visitors to the AOL network of Web properties during the quarter ending December 31, 2007, according to comScore Media Metrix.
  • 49.2 billion – Domestic page views for the AOL network of Web properties during the quarter ending December 31, 2007, according to comScore Media Metrix.
  • 150 – Average monthly page views per unique visitor to the AOL network of Web properties, during the quarter ending December 31, 2007.

 A sophisticated advertising network

AOL offers advertisers access to the broadest display advertising network in the U.S. and some of the most sophisticated tools available to target and measure online advertising campaigns through AOL’s Platform-A business group. Platform-A consists of Advertising.com, which operates the largest third-party display networks; behavioral targeting leader TACODA; Third Screen Media, which operates one of the largest mobile media networks; market leading video ad serving platform Lightningcast; Quigo, which offers advertisers the ability to target ads based on the content of Web pages; and ADTECH‘s global ad serving platform.

In addition, Platform-A Marketing Solutions provides large brand customers with coordinated access to the full Platform-A product suite, enabling advertisers and agencies to more easily harness the full power of digital media.

Industry-leading products and programs

AOL’s network of Web properties is one of the top three in the United States, attracting an average of 109 million unique visitors each month during the quarter ending December 31, 2007, according to comScore Media Metrix, and many are leaders in their categories.

MapQuest, for example, is the leading U.S. provider of online maps and directions; AIM is the No. 1 messaging service in the U.S.; and TMZ, developed in partnership with Warner Bros.’ Telepictures Productions, is the No. 1 domestic entertainment news site on the Web. Other popular destinations include Black Voices, a premiere site for the African-American community, and AOL Latino, a leading bilingual portal for U.S. Hispanics.

In the past year, AOL has relaunched all its major programming channels, including News, Sports, Money & Finance, Living, and launched several new sites, including Switched.com, PopEater, Stylelist, DIYLife and Green Daily.

AOL also has been upgrading its product suite, including the new AOL.com home page, improved AOL Mail, the new AOL Desktop, Safety and Security and Parental Control tools, and the new Winamp player. In addition, AOL has launched breakthrough products such as BlueString, which lets users easily store and share their pictures and movies, and myAOL, which lets users easily customize their homepage.

AOL’s Truveo video search tool, the leading video search engine, continues to expand its reach. During 2007, Truveo’s index of searchable videos grew 20-fold to more than 100 million. Truveo tracks more than 500,000 new videos uploaded to the Web each day. Queries across the Truveo video search network increased 20 fold during 2007. Unique monthly visitors across the sites powered by Truveo exceeded 50 million. Truveo has also launched localized versions of its video search product in 16 countries.

Expanding worldwide

As part of its aggressive international growth plans, AOL launched portals in Austria, The Netherlands, India, Italy, Spain, Sweden, Switzerland, Poland and Belgium. In addition, AOL teamed up with HP – a leading PC maker in the U.S. – to include localized versions of the AOL.com portal and other AOL services as the default setting on HP computers shipped in the United States and more than two-dozen countries worldwide.

AOL continues to operate one of the largest Internet subscription businesses in the United States, with 10 million domestic subscribers at the end of the third quarter of 2007.

Meanwhile AOL seems to be looking for a buyer for … itself.

More

http://www.bebo.com/
http://developer.bebo.com
http://aol.com/
http://corp.aol.com/press_releases/2008/03/aol-acquire-global-social-media-network-bebo
http://developer.bebo.com/blog/index.php/2008/03/13/company-and-platform-newsjs-and-pre-load-sql-coming-soon/
http://www.techcrunch.com/2008/03/13/aol-buys-bebo-for-750-million/
http://mashable.com/2008/03/13/aol-bought-bebo/
http://www.readwriteweb.com/archives/aol_acquires_bebo.php
http://kara.allthingsd.com/20080313/bebo-by-the-not-so-big-numbers/
http://www.techmeme.com/080313/p77#a080313p77
http://www.techcrunch.com/2008/03/14/aol-on-a-bender-kickapps-may-be-next-acquisition/
http://www.techcrunch.com/2008/02/12/bebo-1-billion-acquisition-definitely-happened/
http://kara.allthingsd.com/20080314/is-kickapps-next-to-board-aols-gravy-train/
http://www.rev2.org/2007/07/31/bebo-an-in-depth-look/
http://www.lastpodcast.net/2008/03/13/thursday-night-thoughts/
http://www.crunchbase.com/company/bebo
http://www.centernetworks.com/bebo-aol-live-call
http://www.quantcast.com/bebo.com
https://web2innovations.com/money/2008/03/12/aol-is-offered-up-for-sale/

AOL is offered up for sale

Today is a sad day for AOL, which somehow contrasts to the big day the company had in 2000 when they merged with Time Warner in what was then the biggest deal for the dot com era. All indicates that AOL is offered up for sale.

AOL, which is a symbolic company for the Internet the has tried to reinvent itself many times. The latest effort, like those before it, does not seem to be going well.

On Tuesday, Jeffrey L. Bewkes, the chief executive of Time Warner, AOL’s parent company, acknowledged weakness in the business and said he was open to combining AOL with another company — “whatever configuration makes it the strongest and the most valuable.”

Could this be an indirect signal to Yahoo to join forces with AOL? Yahoo anyway lost News Corp for a possible partner and after turning Microsoft down they are left now in sort of hot water to deal with their angry shareholders. It is known fact that Time Warner explored merging AOL with Microsoft’s online operation two years ago and is now discussing a potential deal with Yahoo.

AOL has recently shifted the entire focus and is betting its future on a new strategy of selling advertising across the Internet and has spent more than $1 billion on related acquisitions. The company has acquired a massive number of ad-related companies like Quigo, Tacoda, Userplane, Truveo and their first one Advertising.com for $435M back in 2004.  

AOL appears to be very close to Yahoo by destiny and just like them it seems they are also going through bad times.  On Monday, the third of four top executives installed last summer to run the new advertising division, known as Platform A, left the company. The executive, Curtis G. Viebranz, was fired and replaced by the executive who had been battling his strategy through the fall, Lynda Clarizio.

Several recently departed executives contacted this week described the climate at AOL as acrimonious. They said there had been confrontational meetings of employees as well as screaming matches in offices, as senior executives worried about making their aggressive quarterly ad sales goals. Mr. Bewkes acknowledged Tuesday that revenue at AOL would be flat for at least another quarter.

New York Times says that the company is still major player on Internet with a very prestigious brand name to an enormous revenue stream of $5.2B in 2007. AOL’s Web sites attract 112 million visitors per month and 9.3 million Americans still pay the company for Internet services. Yet the revenues are down 33% from 2006 and so their traffic too seems to be seriously declining over the past year as seen on Compete’s traffic graph. The company’s overall revenue was said has declined as it lost dial-up access subscribers while the advertising revenue totaled $2.2 billion in 2007, up 18 percent from the previous year, yet the pace of growth has slowed each quarter, too.

By contrast, if Facebook with their almost 100M uniques per month make even the half of what AOL is making off theirs the Facebook’s market value would then perhaps be justified at the $15B mark, but the “big” F is doing nothing compared to AOL’s revenues made from advertising alone.

It seems AOL is going to blindly follow the hot trend for today which is an ad network that sells ads on thousands of other sites. It is quite lazy and easy business, instead of building your own traffic, which is taking ages long to achieve you better attract third party sites to use their traffic to make money from. Perhaps this is the reason why we witness so many new ad networks lately.

“We were ahead of the curve in the creation of Platform A and remain in a great position to compete in this intensely competitive marketplace,” said Randy Falco, the chief executive of AOL. The management changes, he said, were necessary to be able to move quickly. After spending dearly to amass assets, “the trick was to get them working together and integrated in a very meaningful way.”

On Tuesday Mr. Bewkes, who spoke to analysts at a conference in Palm Beach, Fla., confirmed that AOL no longer saw a meaningful future for its dial-up Internet subscription service, which may be spun off.

The online advertising seems to be one of the most profitable niches over Internet commanding higher profit margins than any other business online. The leader on the market is Google with its AdWords/AdSense making over $10B per year by selling contextual ads on third party web publishers and there are literally thousands of smaller and more aggressive players in the space.

More about AOL

A Global Ad-Supported Web Services Company

AOL is a leading global advertising-supported Web company, with the most comprehensive display advertising network in the U.S., a substantial worldwide audience, and a suite of popular Web brands and products.

The company’s strategy focuses on increasing the scale and sophistication of its advertising platform and growing the size and engagement of its global online audience through leading products and programming.

Core Statistics

  • 109 million – Average domestic monthly unique visitors to the AOL network of Web properties during the quarter ending December 31, 2007, according to comScore Media Metrix.
  • 49.2 billion – Domestic page views for the AOL network of Web properties during the quarter ending December 31, 2007, according to comScore Media Metrix.
  • 150 – Average monthly page views per unique visitor to the AOL network of Web properties, during the quarter ending December 31, 2007.

 A sophisticated advertising network

AOL offers advertisers access to the broadest display advertising network in the U.S. and some of the most sophisticated tools available to target and measure online advertising campaigns through AOL’s Platform-A business group. Platform-A consists of Advertising.com, which operates the largest third-party display networks; behavioral targeting leader TACODA; Third Screen Media, which operates one of the largest mobile media networks; market leading video ad serving platform Lightningcast; Quigo, which offers advertisers the ability to target ads based on the content of Web pages; and ADTECH‘s global ad serving platform.

In addition, Platform-A Marketing Solutions provides large brand customers with coordinated access to the full Platform-A product suite, enabling advertisers and agencies to more easily harness the full power of digital media.

Industry-leading products and programs

AOL’s network of Web properties is one of the top three in the United States, attracting an average of 109 million unique visitors each month during the quarter ending December 31, 2007, according to comScore Media Metrix, and many are leaders in their categories.

MapQuest, for example, is the leading U.S. provider of online maps and directions; AIM is the No. 1 messaging service in the U.S.; and TMZ, developed in partnership with Warner Bros.’ Telepictures Productions, is the No. 1 domestic entertainment news site on the Web. Other popular destinations include Black Voices, a premiere site for the African-American community, and AOL Latino, a leading bilingual portal for U.S. Hispanics.

In the past year, AOL has relaunched all its major programming channels, including News, Sports, Money & Finance, Living, and launched several new sites, including Switched.com, PopEater, Stylelist, DIYLife and Green Daily.

AOL also has been upgrading its product suite, including the new AOL.com home page, improved AOL Mail, the new AOL Desktop, Safety and Security and Parental Control tools, and the new Winamp player. In addition, AOL has launched breakthrough products such as BlueString, which lets users easily store and share their pictures and movies, and myAOL, which lets users easily customize their homepage.

AOL’s Truveo video search tool, the leading video search engine, continues to expand its reach. During 2007, Truveo’s index of searchable videos grew 20-fold to more than 100 million. Truveo tracks more than 500,000 new videos uploaded to the Web each day. Queries across the Truveo video search network increased 20 fold during 2007. Unique monthly visitors across the sites powered by Truveo exceeded 50 million. Truveo has also launched localized versions of its video search product in 16 countries.

Expanding worldwide

As part of its aggressive international growth plans, AOL launched portals in Austria, The Netherlands, India, Italy, Spain, Sweden, Switzerland, Poland and Belgium. In addition, AOL teamed up with HP – a leading PC maker in the U.S. – to include localized versions of the AOL.com portal and other AOL services as the default setting on HP computers shipped in the United States and more than two-dozen countries worldwide.

AOL continues to operate one of the largest Internet subscription businesses in the United States, with 10 million domestic subscribers at the end of the third quarter of 2007.

More

http://aol.com
http://corp.aol.com/about-aol/company-overview
http://www.nytimes.com/2008/03/12/technology/12aol.html
http://www.aolmedianetworks.com/
http://www.techcrunch.com/2008/03/11/official-aol-on-the-table-for-a-deal/
http://www.crunchbase.com/company/aol
http://www.techmeme.com/080312/p43#a080312p43
http://www.alleyinsider.com/2008/3/jeff_bewkes_s_private_hell_twx_
http://www.paidcontent.org/entry/419-bewkes-shake-ready-to-do-an-aol-deal-twc-spinoff-and-other-options/
http://searchengineland.com/080312-091036.php
http://portalblog.aol.com/

Are Digg’s users the real reason nobody buys them?

While reading over our daily dose of web 2.0 news and stories across our favorite technology blogs, we came across a very interesting theory being discussed on a few of these blogs.

Based on what we have read, and understood, it might turn out that Digg has a track record of surrendering to the mob when things get really bad. Giving control of its users to what shows up on their home page as a story or news is perhaps what made Digg popular but ironically it plays, with the same degree, a very negative role in Digg’s attempt to sell itself out. While the rumors are spreading around Web that potential buyer of Digg might be Microsoft (although they decline that) angry digg users are taking on the site with the promise they never return to it if the Redmond’s giant gets its hands on the popular user generated news site. We have speculated a lot over the past months as to what might be the reason why such a mainstream-like popular site does not get its long-waited exit despite all of its attempts it seems what is attracting potential suitors to Digg (its massive number of users) is what might be scaring them away.

Here is an extraction, as found on Techrunch, of the comments on Digg’s page under the news that Microsoft might be the potential buyer of Digg. 

  • Don’t sell Digg Kevin! Digg this story he needs to know how we feel!
  • Why not sell digg when you don’t care about the community. Sell it and we will be happy.
  • Somehow i think if Microsoft manages to buy digg a larger revolt than 09 F9 11… will happen, at least i know what i will do
  • I would have to see how things went afterward. If Google tried to shoehorn their “style” in to Digg’s interfaces (see: Jotspot), or if Microsoft tried to turn it in to a Windows program, I would switch to Reddit. I like Digg more, but either of those scenarios would kill Digg for me.
  • If MS is in, I’m out.
  • OK guys, Kevin doesn’t give half a shit about you. He cares about what all americans care about: $500,000,000 in his pocket. Good old capitalism, eh?
  • Goodbye Digg… Its been good knowing you… too bad you were gobbled up by corporate america. I remember back in the day when you were a bastion of free speech and unfettered entertainment, but no longer. I guess I will have to revert back to the “best of” section of Craigslist. Don’t sell your soul.
  • As long as they lets us delete our accounts
  • I am new to digg.com and I really like it. If Microsoft were to buy it that would be it for me. I will remove it from my favorites and never come back.
  • Dude. If Microsoft gets its fucking hands on this site then you will definitely have one less viewer. Those fuckers taint everything they touch.
  • Is this for real come on Kevin don’t give up to digg to these huge companies. What makes digg so special and fun is that it’s independent this is not a good idea.
  • If Microsoft purchases this site, go ahead and make your last act to institute a ‘delete your account’ function.
    This is terrible news. Lets see if we can have yet another viable outlet bought up by huge conglomerates which try to feed us what we are allowed to think and censor our beliefs. I tell you what. If digg is sold, I’m not coming here anymore! Kevin please don’t let this happen. Tell us this is about more than money.

Digg’s saga continues.

More

http://blog.digg.com/?p=114
http://digg.com/tech_news/Google_Microsoft_Bidding_For_Digg
http://digg.com/
http://www.techcrunch.com/2008/03/09/digg-users-are-doing-their-best-to-kill-an-acquisition/
http://www.techcrunch.com/2007/05/01/digg-surrenders-to-mob/
http://www.techcrunch.com/2008/03/07/google-microsoft-bidding-for-digg/
https://web2innovations.com/money/2007/12/19/digg-guys-are-up-for-sale-again-quietly/
http://www.quantcast.com/digg.com
http://www.techcrunch.com/2007/12/17/for-sale-used-social-voting-site-asking-price-300-million-goes-by-the-name-of-digg/
http://www.hoovers.com/allen-&-company/–ID__51026–/free-co-factsheet.xhtml
http://www.techcrunch.com/2006/12/28/no-acquisition-for-digg-raise-series-b-round-instead/
http://www.techcrunch.com/2007/11/07/just-sell-digg-already-jay/
http://nextnetnews.blogspot.com/2006/12/why-nobody-buys-diggcom.html
http://venturebeat.com/2007/12/17/source-digg-hires-bank-hoping-to-sell-for-300-million-or-more/
http://nextnetnews.blogspot.com/2007/02/diggcom-fights-spam-scam-games.html
http://www.pronetadvertising.com/articles/latest-digg-payola-exposed.html
http://valleywag.com/tech/rumormonger/digg-close-to-a-300-million-sale-320145.php
http://valleywag.com/tech/sun-valley/whos-selling-whos-buying-at-the-allen-confab-276716.php
http://money.cnn.com/magazines/fortune/fortune_archive/2004/06/28/374371/index.htm

Pluck acquired by Demand Media

Demand Media, a major buyer and operator of Internet domain name companies, has announced just a few days ago it has acquired the Austin-based social media company Pluck after about reportedly two months of negotiations. The price is $75M in all cash deal. Pluck revenues are around $10 million/year and the company has raised $17 million in three rounds of funding, which makes the deal a nice exit for Pluck’s investors among which are Austin Ventures, Mayfield Fund, and Reuters. Michael Arrington from Techcrunch however does not seem to agree with that constatation and calls it that way: VCs who aim for 3x their money tend to go out of business.

Pluck, a provider of social media tools and technologies, is serving more than 200 media websites, which are reaching over 100M users, and serving over 1.5 billion interactions per month. The acquisition expands Demand Media’s social media platform beyond its owned network of web sites to power leading media properties and brands worldwide including Gannett/USA TODAY, Guardian Unlimited, Hearst Corporation, Fox, The Washington Post, Scotts and Circuit City.

“We founded the company with a vision for expanding social media beyond the traditional social networking portals. To that end, we have acquired and developed the components necessary to create, distribute and monetize web sites and content,” said Richard Rosenblatt, co-founder, CEO and chairman of Demand Media. “Now, we are ready to expand the platform and model beyond our proprietary network. Pluck provides the technologies, people and partners to accomplish this vision.”

Demand Media’s social media platform currently supports more than 64 million unique visitors per month according to the company’s own Google Analytics data from January 2008. The platform features multiple social media applications such as social Q&A and a vast wholly-owned and rights-cleared content library of Pro Amateur text and video. All this will be enhanced by Pluck’s widget and API-based social media technologies.

“This combination will allow us to provide our customers with an even broader suite of social media products and monetizable content,” said Dave Panos, CEO of Pluck and executive vice president for Demand Media. “The combined expertise of our two companies in platform technology development, content creation and community management is truly un-matched.”

Since its inception in May 2006, Demand Media has raised over $350 million in equity capital and pioneered a new formula for building an interactive media company. Through its social media platform, Demand Media has grown its vertical network into one of the Internet’s largest.

Pluck was founded in 2003 and built a world-class social media platform that enables leading publishers, brands, and retailers to grow their audiences by seamlessly integrating content, community and social media technologies directly into their existing web properties.

More about Pluck

A leader in social media software solutions, Pluck helps transform how publishers, retailers and major brands engage their audiences and customers to discover, create and distribute information online. Providing the technologies for content generation, syndication, social networking and news personalization, Pluck helps its customers more easily consume and leverage the new open content model that has emerged as the cornerstone of Web 2.0.

Products
If your goal is to drive brand recognition and revenue by leveraging the power of user contributions and interaction on your web site, Pluck offers a complete suite of rich Social Media products called SiteLife. Ready for embedding into any web site, SiteLife helps build vibrant communities of active bloggers, citizen journalists and consumers while driving the creation of new content, traffic and repeat visits.

For bloggers and publishers, Pluck offers BlogBurst, a syndication service that places blogs on top-tier online destinations. With BlogBurst, publishers weave the rich and diverse fabric of the blogosphere into their sites to drive site traffic, while bloggers gain visibility and grow their audience and reach.

Management Team

Pluck was co-founded in 2003 by Dave Panos and Andrew Busey, two executives with entrepreneurial experience in some of the industry’s earliest efforts in instant messaging, real-time collaboration, e-commerce, and e-learning. Meet the Pluck management team.

Dave Panos – Chief Executive Officer, Co-founder
 
A software industry veteran with more than 16 years of start-up experience, Dave has helped define new markets across a range of Internet and Enterprise sectors. He co-founded Pluck as a Venture Partner at Austin Ventures. Previously, he was a co-founder and executive vice president for B2B eCRM provider Question Technologies (sold to Motive). For seven years, he was vice president of marketing and business development at web collaboration pioneer DataBeam before their successful sale to Lotus/IBM. Previously, Mr. Panos ran product management at Easel Corporation, a popular software development tool company that went public. He earned his MBA from Harvard Business School and his undergraduate degree from Furman University.

Will Ballard – Vice President and CTO
 
In his role as Chief Technical Officer at Pluck, Will oversees a team of 20 engineers responsible for the company’s software architecture, design, development and quality assurance. He is also responsible for the design and operation of the growing data center that runs key aspects of site services for Pluck customers, including Hearst Magazines, WashingtonPost.com, TheStreet.com and Cox Newspapers. Prior to joining Pluck, Will served in a variety of software development leadership roles where he designed and managed the development of massively scalable, high-velocity software platforms at NetSpeed (now Cisco), the outsourced network management and security provider for more than 10,000 businesses; NetSpend, high availability provider of credit card transaction services for leading financial institutions; and Works.com (now Bank of America), the automated corporate purchasing solution for corporate treasury operations.

Ken Nicolson – Chief Marketing Officer
 
As Chief Marketing Officer, Ken leads market and product expansion for Pluck social media platforms to further serve the audience engagement and analytics needs of digital publishers and advertisers around the globe. Prior to joining Pluck, Ken served as president and CEO at Veridiem, a software firm that helped global brands plan, measure and optimize their return on marketing investments. Before joining Veridiem, Ken served as Vice President of Sales and Marketing at Alphablox Corporation, a leading provider of Web-based analytics applications. He has also served in executive marketing positions at Kiva Software, Red Brick Systems, Informix and IBM. Ken received an MBA from Harvard Business School and a BS in Electrical Engineering from Duke University.

Rachel Brush – Vice President of Operations and Content Services
 
As vice president of Operations and Content Services, Rachel oversees finance, legal and human resource operations for Pluck in the U.S. and Europe. She also leads the editorial and account management teams for the BlogBurst™ syndication network, which serves content from more than 4,000 top bloggers to leading media sites around the world. Before joining Pluck, Rachel spent eight years in leadership roles at Hoover’s, Inc., where she held various senior management positions, including serving as vice president of Content and vice president of Customer Operations and Quality. Previously Rachel worked in retail operations for industry giants, including Ann Taylor, LensCrafters and The Limited. Rachel holds a BA in English from The University of Texas at Austin and is pursuing an MBA in Operations and Business Management at St. Edward’s University. Rachel is also an Advisory Board Member of The Periwinkle Foundation, which provides summer camps and other activities for children with cancer.

Eric Newman – General Manager
 
Eric has a history of delivering successful embedded solutions for leading Internet and software companies. Prior to joining Pluck, Eric ran product management for data integration provider Pervasive (PVSW). He previously served as vice president of marketing at Powered, a provider of embedded internet marketing solutions. He was also director of portal solutions at AskJeeves (ASKJ) and served in various management roles at Lotus/DataBeam and Convergys. Eric earned his MBA from the Kellogg School of Management at Northwestern University and his undergraduate degree in Marketing and Management Information Systems from the University of Cincinnati.

Steve Semelsberger – Vice President, Sales & Business Development
 
Steve manages the team responsible for global revenue and partnerships. Prior to Pluck, he spent nearly six years with Motive (MOTV) in Director roles over Alliances, EMEA and Segment Marketing, helping the firm grow to ~$100M in revenue and complete an IPO in 2004. Previous experience in Steve’s 15-year career includes product management, marketing and sales positions with iChat, NetRatings and several media and services companies. He holds an MBA from Duke University’s Fuqua School of Business and Spain’s IESE, along with a BS in management from Binghamton University.

Stephanie Himoff – Vice President of UK Sales and Business Development
 
As vice president of UK sales and business development, Stephanie will direct UK and European sales operations. Stephanie brings to Pluck over a decade of experience spearheading the growth of Internet businesses in Europe. Most recently she worked with US-based travel search site, SideStep, on its expansion in the UK. Previously Stephanie served in executive management positions for European operations at DirectoryM, a premier online advertising network used by top publishers, including Newsweek and ZDNet. Stephanie also served as Managing Director in the UK and France for AltaVista, a web search company now owned by Overture, a division of Yahoo. She holds an MBA and a BA from the University of San Francisco as well as a masters in French from IESEG.

Adam Weinroth – Director of Product Marketing
 
Leading product marketing for Pluck, Adam plays a central role in formulating the vision, definition and delivery of the company’s syndication and publisher software services including the groundbreaking BlogBurst syndication network and SiteLife Social Media Suite. Adam joined the company in 2005 when Pluck acquired Easyjournal, a community blog publishing platform which Adam founded and grew to more than 100,000 registered users. Prior to creating Easyjournal in 2002, Adam held leadership roles in new product development and technology marketing with Mediatruck and IntelliQuest. Adam has a BBA in Marketing and an MBA focusing on Technology Marketing Strategy from The University of Texas at Austin.

Pluck is headquartered in Austin, Texas, and has received funding from Austin Ventures, Mayfield Fund, and Reuters. Company was more known as rss software focused one when they started back in 2003.

More about Demand Media, Inc.

Demand Media™ is a leading social media company that provides an interactive, personalized and vertically-focused media experience for over 64 million unique users. By using its proprietary social media tools and the unique distribution platform of the world’s second largest domain registrar, the company connects content creators and audiences to grow its network of vertical media web properties. The privately held company was founded in May 2006 and is based in Santa Monica, CA, with offices in Bellevue, WA, Austin, TX and San Francisco, CA.

Demand Media was founded by former MySpace CEO Richard Rosenblatt. The company has been buying content sites and is rumored to be in preparations for a possible 2009 IPO, if and when the economy recovers. Their last round, $100M, was announced in September 2007. They’ve raised a total of more than $350M to date.

More

http://www.demandmedia.com/
http://www.pluck.com/
http://www.pluck.com/press/PluckPR-030408-Acquisition.html
http://www.techcrunch.com/2008/03/04/demand-media-buys-pluck-for-50-million-to-60-million/
http://www.quantcast.com/pluck.com
http://siteanalytics.compete.com/pluck.com/?metric=uv
http://www.austinventures.com/
http://www.mayfield.com/
http://www.reuters.com/
http://riverace.statesmanblogs.com/
http://www.crunchbase.com/company/pluck
http://www.demandmedia.com/demand-media-executives.asp
http://www.richard.tv/
http://www.reuters.com/article/internetNews/idUSWEN431620080305

Digg is likely to make a nice exit soon

Digg, the user generated news site, has been pretty serious on getting itself sold for quite long time now. Just late last year they have hired Allen & Company to shop the site for what rumors claim to be anything in the $300 million range. There were literally millions of speculations around the blogosphere why Digg cannot sell so far, some of them summarized can be read over here.

Today we are reading they are about to finally make their long waited exit. Rumored bidders are, of course, Google and Microsoft, among a couple of media type of companies, no names quoted. This time however the price is being said to be way below the price tag of $300M Digg has put on its site last year – in the $200-$225 million range.

According to Quantcast, which we believe is very accurate, Digg.com is hugely popular site and is already reaching more than 25 million unique visitors per month. Just like a couple of months ago, here we again think Digg does worth more than $300M at the very current moment, with or without steady revenues, simply because of its popularity, leadership, reach and target audience. 25 Million unique visitors per month is almost a mainstream site and we have seen sites with less that traffic getting acquired in the 10 digit range.

Taking into consideration the fact that in case Microsoft does not buy the site they are likely to terminate the ad agreement they have with Digg, it seems that other bidders are not including the Microsoft revenues in Digg’s valuation.

More about Allen & Company

Investment bank Allen & Company has been involved in a number of high profile mergers and acquisitions in the past. Interesting for the Allen & Company is the privacy the investment firm seems to be working in as argument for which is the absence of even a basic site for the company on Web. Perhaps they don’t like publicity. Yet, we have found the firm’s contact details, which can be found among the other links on the end of the story’s page.

For Allen & Company, there’s no business like financing show business. The investment bank serves variously as investor, underwriter, and broker to some of the biggest names in entertainment, technology, and information. Viewed as something of a secret society, the firm has had a quiet hand in such hookups as Seagram (now part of Vivendi) and Universal Studios, Hasbro and Galoob Toys, and Disney and Capital Cities/ABC. The firm’s famous annual retreat in Sun Valley, Idaho, attracts more moguls than a double-black ski run (Warren Buffet, Bill Gates, and eBay CEO Meg Whitman have attended). Brothers Herbert and Charles Allen founded the company in 1922.

Key people and executives for Allen & Company LLC are as follows:

  • Non-Executive Chairman Donald R. (Don) Keough
  • President, CEO, and Director Herbert A. (Herb) Allen
  • Managing Director and CFO Kim M. Wieland

More

http://digg.com/
http://www.techcrunch.com/2008/03/07/google-microsoft-bidding-for-digg/
https://web2innovations.com/money/2007/12/19/digg-guys-are-up-for-sale-again-quietly/
http://www.quantcast.com/digg.com
http://www.techcrunch.com/2007/12/17/for-sale-used-social-voting-site-asking-price-300-million-goes-by-the-name-of-digg/
http://www.hoovers.com/allen-&-company/–ID__51026–/free-co-factsheet.xhtml
http://www.techcrunch.com/2006/12/28/no-acquisition-for-digg-raise-series-b-round-instead/
http://www.techcrunch.com/2007/11/07/just-sell-digg-already-jay/
http://nextnetnews.blogspot.com/2006/12/why-nobody-buys-diggcom.html
http://venturebeat.com/2007/12/17/source-digg-hires-bank-hoping-to-sell-for-300-million-or-more/
http://nextnetnews.blogspot.com/2007/02/diggcom-fights-spam-scam-games.html
http://www.pronetadvertising.com/articles/latest-digg-payola-exposed.html
http://valleywag.com/tech/rumormonger/digg-close-to-a-300-million-sale-320145.php
http://valleywag.com/tech/sun-valley/whos-selling-whos-buying-at-the-allen-confab-276716.php
http://money.cnn.com/magazines/fortune/fortune_archive/2004/06/28/374371/index.htm

Taylor Nelson Sofres buys Compete.com

Compete, which started out in 2000 as an Idealab company, raised over $40M in funding to date, incurred $4.5M losses for the last year off $15M revenues and had hard time lately to compete with Quantcast has its exit day today. Compete has been acquired by the market research leader Taylor Nelson Sofres (TNS) for $75M plus another earn-out $75M through out 2008-2010 if certain conditions are met. Total acquisition price could possibly reach $150M. Compete.com calls that brilliant in their blog, which might be true taking into consideration that they have clearly lost the battle with Quantcast in the free traffic measurement space online. According to Compete’s own stats, it attracts about the same number of U.S. visitors a month as Alexa (727,000 for Compete versus 758,000 for Alexa), but Quantcast is the leader with more than double that (1.9M uniques). The deal and its price tag could also be called brilliant for Compete when compared to the comScore’s current market capitalization – $570M.

Since 2006 Compete tried almost everything on the PR front to gain popularity, create buzz, and increase its service awareness, but it had little to no success at all. In many aspects Compete’s traffic measurement, just like Alexa btw, is way inaccurate and incomplete when compared to quantified sites at Quantcast and perhaps TNS decided to buy the third or forth in the market due to a possible higher price Quantcast is currently looking for (or being not for sale) and the current market value comScore has. Both of them have been M&A targets for a while although no public facts are available as to whether TNS has been one of the suitors for either of the companies mentioned. By comparison, in 2007 Experian Group Ltd. paid $240 million to acquire another leading Web intelligence company, Hitwise Pty Ltd., which made money and had annual revenues of roughly $40 million. In other words, at a price tag of $75 million TNS is offering roughly 5 times Compete’s revenue, and it will pay 10 times sales if the target reaches the financial milestones stipulated under the earn-out clause. Experian paid a multiple of only 6 times sales for Hitwise.

One of the company’s latest developments was the partnership they made with Ask.com to provide compete data for sites on ask.com’s binoculars.

TNS is acquiring Compete primarily from a consortium of private venture capital companies. Compete is said it will continue to operate as a stand-alone company, but it has already identified stellar new product opportunities to develop with the TNS media intelligence and custom research teams.   

In additional to Idealab, Compete’s other investors include Charles River Ventures, Commonwealth Capital Partners, North Hill Ventures, Split Rock Partners, and William Blair Capital Partners. Total funding to date is $43M. Their investors were undoubtedly probably hoping for a much better outcome, but a solid double is better than nothing.

This acquisition brings together the global market information strength of TNS with Compete’s digital intelligence products and capabilities.  Digital intelligence combines data on user behavior and interactions on the internet with demographic and competitive information, to help businesses and marketers make critical, strategic and tactical business decisions. 

Through this acquisition, TNS will provide clients with new and valuable insights into how online consumer behavior affects purchasing decisions, enabling clients to improve their marketing effectiveness, both online and offline. Together, TNS and Compete will provide consumer, brand and media research and measurement services that will help businesses succeed in the digital marketing environment.

Compete conducts continuous analysis of internet clickstream data from close to 2 million people, weighted to match the US online population.  This information is used to measure how consumers consider, engage with and buy a client’s products or services online, relative to those of its competition.  This ability to analyze online behavior before a purchase is made enables Compete to advise clients on how to target online communications to individual consumers, to influence both their online and offline purchasing behavior.

As internet usage and e-retailing increases, clickstream data is expected to become a significant information source around which market research and analysis is based.  Recent estimates suggest that the US market in which Compete operates will grow from $325 million in 2007 to $500 million in 2009.  (Morgan Stanley research and Jupiter Research estimates of on-demand US web analytics market)

TNS will apply Compete’s ability to profile, measure and segment the online behavior of consumers to its own 6th dimension access panels.  This will start in the US, where TNS has a fully managed access panel of more than one million people and will then be extended across its network.  This will give TNS an unmatched ability to provide insight based on online and offline behavior and on consumer attitudes. 

David Lowden, Chief Executive of TNS, said: “This acquisition is an important move for TNS that builds on our ability to help clients understand consumer behavior in the new and highly complex digital world.  Compete has built a world-class digital intelligence capability that delivers multiple perspectives on how consumers engage with brands online. Its strength lies in its ability to provide competitive analysis of individuals’ online behavior, a rapidly growing section of the market that has enormous potential. 

“TNS will enhance this offering by putting it together with the understanding of consumer attitudes and behavior that we gain from our access panels.  We will use our network to offer this powerful combination to clients across the globe.  In the longer term, we will look at the opportunities to add further value by using our Worldpanel, Retail & Shopper and audience measurement capabilities to integrate data on purchasing and viewing behavior with internet search and shopping behavior.  We believe this will allow TNS to develop new syndicated and custom products, unique in our industry.”

Donald McLagan, Chairman and CEO of Compete, said: “We welcome this exciting opportunity to join one of the world’s most respected market information and insight groups.  Whether consumers buy online, or simply research online as they reach a purchasing decision, the marketing platforms they encounter bring major opportunities for brands.  Companies need to understand how the internet affects consumer preferences, attitudes, knowledge, understanding and motivation.  They also need help in maximizing the new online sales and marketing opportunities to target their prospective customers more effectively.  For the first time, we have given clients the opportunity to measure their effectiveness across all their marketing programmes.  This ability will be greatly enhanced when we are part of TNS.”

More about Compete

Compete, Inc. is a provider of analytics, research, and business intelligence. Compete gathers web behavior information from users who sign up at their site, then analyzes these data to create customized reports for client companies. Compete also offers a free web analytics tool for the general public at Compete.com.

Compete was founded in 2000 and is based in Boston, Massachusetts.  It analyses internet clickstream information received from its own panel and from internet service providers.  Compete uses proprietary data methodologies to normalize this data, making it representative of the entire US online market place. It specializes in the telecoms, media, automotive, financial services and travel industries, with a sector-based organization mirroring that of TNS.  It also has expertise in the field of online search evaluation.  Current management will remain with the company.  Clients, who include some of the world’s best-known brands, are engaged on a subscription basis, with analysis provided weekly or monthly.  The company has won a range of awards, including the Deloitte Technology Fast 50 two years in a row, the US Advertising Research Foundation David Ogilvy Award and the AdAge Power 150. Bill Gross is the company’s founder who had previously helped create the search engine that became Overture and later was acquired by Yahoo!.  

Compete has several competitors in enterprise-level web analytics and market research, including Nielsen/NetRatings, Hitwise, comScore, Amazon’s Alexa and Quantcast.

More about TNS

TNS is the third-largest market research firm across the globe (Honomichl)
TNS is the biggest provider of online market information in the world
TNS does more custom market research than any other firm worldwide
TNS Media Intelligence is the top-ranked ad spend measurement company
The TNS 6th Dimension access panels reach over two million consumers globally

The 1960s saw the creation of five of the market research companies that are at the heart of the Taylor Nelson Sofres (TNS) group today:

  • Intersearch in the USA in1960
  • AGB in UK in 1962
  • Sofres in France in 1963
  • Frank Small Associates in Australia in 1964
  • Taylor Nelson in UK in 1965
  • But the very first seeds had been sown in the USA in 1946, when NFO (National Family Opinion) opened for business.

In the 60s, 70s and 80s, all these companies grew significantly, introducing a wide and increasingly sophisticated range of research solutions and using the latest technological developments. And as they and their clients grew, they started to create their international networks:

Sofres opened offices in six European countries, the US and 12 countries in Asia Pacific
 
Taylor Nelson and AGB each developed a UK network of offices and began to acquire businesses in Europe

NFO grew to become the by-word for managed access panels in the USA
It soon became clear that brands were becoming global, and brand owners would need global market information partners.

In the 1990s, the market research industry started to consolidate, as major clients demanded an increasingly international service.

NFO made a series of acquisitions around the world and the companies that now form TNS responded to the changing market by joining forces, enabling them to deliver consistently high quality services to customers around the world.

  • Sofres acquired Secodip (1992)
  • Taylor Nelson joined with AGB  (1992)
  • Sofres combined with FSA (1995)
  • Sofres acquired Intersearch (1997)
  • Taylor Nelson AGB and Sofres merged (1997)
  • TNS acquired NFO (2003)

More
 
http://www.tnsglobal.com/
http://www.tnsglobal.com/investor-relations/news/news-E4DA1FFE67594CB6A72742C5A415BD1B.aspx
http://blog.compete.com/2008/03/03/tns-acquires-compete/
http://www.compete.com/
http://www.competeinc.com/
http://blog.compete.com/
http://www.techcrunch.com/2008/03/03/tns-buys-compete-for-75-million/
http://www.crunchbase.com/company/compete
http://www.quantcast.com/
http://www.alexa.com/
http://www.comscore.com/
http://www.thealarmclock.com/mt/archives/2007/08/compete_ups_ant.html
http://www.competeinc.com/news_events/pressReleases/114/
http://blog.compete.com/2008/02/11/press-release-compete-celebrates-fifth-straight-year-of-record-growth/
http://www.paidcontent.org/entry/419-compete-bought-by-tns-for-up-to-150-million/
http://www.centernetworks.com/tns-acquires-compete
http://www.thealarmclock.com/mt/archives/2007/08/compete_ups_ant.html
http://www.centernetworks.com/ask-partners-with-compete-binoculars
http://www.techconfidential.com/money-out/blog/money-out/british-market-research-firm-t.php
http://blog.arhg.net/2008/03/competecom-bought-for-75m.html
http://mashable.com/2008/03/03/compete-acquired/
http://searchengineland.com/080303-105153.php

Technorati is rumored to be in preparation of Blogger Ad Network

Rumors online claim Technorati is in serious preparation to lunch soon its own advertising network aimed at bloggers. The online advertising market, as we said a few times in our blog posts so far, is perhaps the hottest thing on web over the past 2 years and 2008 appears to be giving no signals of slowdown in the space. Basically there are many ad network players in the blogging space on Web like, of course, Google, AdBrite, FM Publishing, Glam Network, ReviewMe, and not last the controversial PayPerPost (now Izea) but from sentimental point of view Technorati has the best chances to make a bloggers ad network due to its first-to-market factor (Technorati was the first company to search in and deal with blogs anyway), devotion and dedication to the Bloggers on Web. Technorati is currently tracking 112.8 million blogs and over 250 million pieces of tagged social media so it makes sense to us if they can in one way or another turn those blogs into quiet participants into the newly planned bloggers ad network by Technorati. Many newly launched ad networks try to focus on relevancy and targeting technologies but, in our view, they are missing the core factor of being successful in running an ad network on Web – the amount of money you are going to pay your web publishers (bloggers). And the amount of money you pay is correlative to the amount of money you earn. In that parameter Google remains unbeaten at this moment with almost $4B pay out for the 2007.
 
Technorati is being said to be pitching venture capitalists on another round of financing since from what they took back in 2006 there might be little to nothing left over to keep their company and 25 employees alive. Another rumor claims the company has hired an investment bank in an attempt to shop itself around for potential buyers, simultaneous to their funding pitches.

The network is rumored to be something like a self-serve ad exchange for bloggers as well as for advertisers, perhaps something like bloggers ad exchange. Ad units will include both display and text ads, and will allow units to be charged on both a CPM and CPC basis.

Whatever the case is it is an interesting and predictable move for Technorati but the online ad market is getting more and more crowed. May be it has something to do with the most recent online ad data released by IAB putting the total number for the entire market at more than $21B for 2007.

More about Technorati

Technorati is currently tracking 112.8 million blogs and over 250 million pieces of tagged social media.

Technorati is the recognized authority on what’s happening on the World Live Web, right now. The Live Web is the dynamic and always-updating portion of the Web. We search, surface, and organize blogs and the other forms of independent, user-generated content (photos, videos, voting, etc.) increasingly referred to as “citizen media.”

But it all started with blogs. A blog, or weblog, is a regularly updated journal published on the web. Some blogs are intended for a small audience; others vie for readership with national newspapers. Blogs are influential, personal, or both, and they reflect as many topics and opinions as there are people writing them.

Blogs are powerful because they allow millions of people to easily publish and share their ideas, and millions more to read and respond. They engage the writer and reader in an open conversation, and are shifting the Internet paradigm as we know it.

On the World Live Web, bloggers frequently link to and comment on other blogs, creating the type of immediate connection one would have in a conversation. Technorati tracks these links, and thus the relative relevance of blogs, photos, videos etc. We rapidly index tens of thousands of updates every hour, and so we monitor these live communities and the conversations they foster.

The World Live Web is incredibly active, and according to Technorati data, there are over 175,000 new blogs (that’s just blogs) every day. Bloggers update their blogs regularly to the tune of over 1.6 million posts per day, or over 18 updates a second.

Technorati. Who’s saying what. Right now

Technorati Management Team

Richard Jalichandra
President & Chief Executive Officer
Richard is a veteran Internet executive whose media experience includes leadership roles across the media spectrum: as a client, at an agency, as a publisher, and with an advertising network. Most recently, he worked as an M&A and strategy consultant for several Internet properties and investment firms, and also served as SVP of Corporate Development for Exponential Interactive, Tribal Fusion’s parent company. Previously, he was SVP of Business Development for Fox Interactive Media, and was the Vice President of Business & Corporate Development at IGN Entertainment (acquired by Fox Interactive), where he led the company’s M&A, business development and international activities. Before joining IGN, Richard led national accounts sales at Lycos, was Vice President of Business Development at Neopost Online, served as Senior Vice President/Managing Director of Answerthink, and founded K23 Creative Services in Singapore. His early career included management roles for Ford, IBM and Siemens, and he has a B.S. in business administration from the University of Southern California and an M.B.A. from the University of Washington.

Dorion Carroll
Vice President of Engineering
Dorion Carroll is a 20-year veteran engineer with deep experience developing product and services in areas including search, email processing, e-commerce, personalization, ad targeting, CRM, data warehousing, order management and financial services. Prior to joining Technorati, Dorion was director of engineering at Postini, Vice President of Engineering and General Manager of Neomeo (which was acquired by Postini), Technologist-in-Residence at Softbank Venture Capital, and Senior Director of Engineering at Excite@Home, among other roles. Dorion has a Bachelor of Arts from Pitzer College, with four years Mathematics / Computer Science at Harvey Mudd College, in Claremont, California.

Peter Hirshberg
Chairman of the Executive Committee & CMO, Technorati Inc.
Peter Hirshberg is an entrepreneur and marketing innovator who has led emerging media and technology companies at the center of disruptive change for more than 20 years. As Chairman & Chief Marketing Officer of Technorati, he oversees the company’s sales, marketing and business development activities as well as its partnerships with the media, entertainment and marketing industries. Previously Hirshberg served as president and CEO of Gloss.com, the online prestige beauty business co-owned by Estee Lauder Companies, Chanel and Clarins; he was Chairman of Interpacket Networks, the global leader in Internet-by-satellite (sold to American Tower in 2000), and was founder and CEO of Elemental Software (sold to Macromedia in 1999). Peter was at Apple Computer for nine years where he held a number of leadership positions, including Director of Enterprise Markets. He is a Trustee of The Computer History Museum and a Henry Crown Fellow of the Aspen Institute. Peter earned his bachelor’s degree at Dartmouth College and his MBA at Wharton.

Joi Ito
Vice President of International Business and Mobile Devices, Technorati Inc.
Joichi Ito is in charge of international and mobility development for Technorati. He is founder and CEO of Neoteny, a venture capital firm which is the lead investor in Six Apart, and is on the board of Creative Commons. He has created numerous Internet companies including PSINet Japan, Digital Garage, and Infoseek Japan. In 1997, Time Magazine ranked him as a member of the CyberElite. In 2000 he was ranked among the “50 Stars of Asia” by Business Week and commended by the Japanese Ministry of Posts and Telecommunications for supporting the advancement of IT. In 2001 the World Economic Forum chose him as one of the 100 “Global Leaders of Tomorrow” for 2002. He was appointed as a member of Howard Dean’s Net Advisory Net during the Dean campaign.

Teresa Malo
Chief Financial Officer
Teresa is a CPA with over 17 years experience in finance and operations, and she’s responsible for Technorati’s financial, legal, and HR organizations. She has worked with technology startup companies such as Calico Commerce and Zambeel, as well as with established companies, including Arbor Software and Silicon Graphics. Teresa started her career as an accountant with Pannell, Kerr, Forster, a national public accounting firm. She holds Bachelor’s degrees in Accounting and Computer Information systems from Arizona State University and the University of Washington.

Technorati Board of Directors

David L. Sifry
Founder & Chairman of the Board, Technorati, Inc.
David Sifry is a serial entrepreneur with over 20 years of software development and industry experience. Before founding Technorati, Dave was cofounder and CTO of Sputnik, a Wi-Fi gateway company, and previously, he was cofounder of Linuxcare, where he served as CTO and VP of Engineering. Dave also served as a founding member of the board of Linux International and on the technical advisory board of the National Cybercrime Training Partnership for law enforcement. He has a Bachelor’s degree in Computer Science from Johns Hopkins University. Dave can often be found speaking on panels and giving lectures on a variety of technology issues, ranging from wireless spectrum policy and Wi-Fi, to Weblogs and Open Source software.

Peter Hirshberg
Chairman of the Executive Committee & CMO, Technorati Inc.

Joi Ito
Vice President of International Business and Mobile Devices, Technorati, Inc.

Ryan McIntyre
Principal, Mobius Venture Capital
Ryan McIntyre joined Mobius Venture Capital in 2000 as an Associate Partner and was promoted to Principal in 2001. Prior to joining the firm, Mr. McIntyre co-founded Excite in 1993, which went public in 1996 and later became Excite@Home (Nasdaq:ATHM) following the merger of Excite and @Home in 1999. There he held the role of Principal Engineer and was a key technological contributor to the company’s search engine and content management systems, and also led the design and implementation of Excite’s community and commerce platforms. Mr. McIntyre holds a Bachelor of Science degree in Symbolic Systems with a concentration in Artificial Intelligence from Stanford University. While at Stanford, he published research on genetic algorithms in the The First IEEE Conference on Evolutionary Computation, and studied at Stanford’s overseas campus in Berlin, Germany.

Sanford R. Robertson
Principal, Francisco Partners
Sanford R. Robertson is a principal of Francisco Partners, one of the world’s largest technology buyout funds. With a focus on structured investments in technology and technology-related businesses, Francisco Partners is a pioneer in the private equity category of Technology Buyouts. Prior to founding Francisco Partners, Mr. Robertson was the founder and chairman of Robertson, Stephens & Co., a leading technology investment bank formed in 1978, and sold to BankBoston in 1998. Mr. Robertson was also the founder of Robertson, Colman, Siebel & Weisel, later renamed Montgomery Securities, another prominent technology investment bank. He has had significant financing involvement in more than 500 growth technology companies throughout his career, including 3Com Corporation (Nasdaq: COMS), America Online, Inc., Applied Materials, Inc. (Nasdaq: AMAT), Ascend Communications Inc., Dell Computer Corporation (Nasdaq: DELL), E*Trade Securities, Inc. (Nasdaq: ETFC), Siebel Systems, Inc. and Sun Microsystems, Inc. (Nasdaq: SUNW). Mr. Robertson received both a B.A. and an M.B.A. with Distinction from the University of Michigan.

Andreas Stavropoulous
Managing Director, Draper Fisher Jurvetson
Mr. Stavropoulos focuses primarily on software investments (enterprise infrastructure and consumer/Internet), wireless networking, and technology-enabled services. Prior to joining DFJ, Mr. Stavropoulos was with McKinsey & Company’s San Francisco office, where he worked with senior management teams of corporate clients with an emphasis on information technology. Prior to McKinsey, he was a Senior Analyst at Cornerstone Research, a financial and economic consulting firm that helps resolve complex issues arising in high-profile business litigation. Mr. Stavropoulos holds Bachelor’s and Masters degrees in computer science from Harvard University, and an MBA from Harvard Business School, where he was a Baker Scholar and graduated first in his class.

More

http://technorati.com/
http://technorati.com/weblog/
https://web2innovations.com/money/2008/01/13/technorati%e2%80%99s-total-funding-revealed-216-to-date-in-3-rounds/
http://www.techcrunch.com/2008/02/29/technorati-to-launch-blogger-advertising-network/
http://www.sifry.com/alerts/
http://www.techcrunch.com/2007/12/04/exclusive-technorati-relaunches-to-focus-on-core-blogging-audience/
http://www.crunchbase.com/company/technorati
http://www.niallkennedy.com/blog/2006/12/google-blog-search-technorati-market-share.html
http://www.techcrunch.com/2007/11/05/technorati-drops-content-older-than-6-months-old/
http://www.techcrunch.com/2006/12/28/google-v-technorati-and-hitwise-v-comscore/
http://www.centernetworks.com/why-comparing-technorati-to-google-blog-search-is-not-valid
http://en.wikipedia.org/wiki/Category:Blog_search_engines
http://www.sifry.com/alerts/archives/000492.html
http://www.techcrunch.com/2007/04/03/technoratis-mating-dance/
http://www.sifry.com/alerts/archives/000492.html
http://atomicbomb.typepad.com/
http://www.centernetworks.com/web-apps-customer-service-face-off#technorati
http://www.time.com/time/specials/2007/article/0,28804,1638266_1638253_1638241,00.html
http://www.techcrunch.com/2007/10/01/new-technorati-ceo-has-a-challenge-ahead/
http://www.breitbart.com/article.php?id=prnw.20071001.AQM180&show_article=1&lsn=1
http://www.techcrunch.com/2007/08/16/watching-technorati-and-podtech-fall-apart/
http://www.techcrunch.com/2007/09/30/techmeme-leaderboard-to-launch-attacking-technoratis-last-stronghold/
http://www.linkedin.com/pub/0/2/9a2 (Richard Jalichandra)
http://www.chicagotribune.com/business/chi-thu_tagsjun14,0,3843733.story?coll=chi-business-hed
http://valleywag.com/tech/rumormonger/technoratis-search-247549.php
http://markevanstech.com/2007/04/03/talking-up-technorati/
http://www.guardian.co.uk/weekend/story/0,,1937507,00.html
http://www.time.com/time/globalbusiness/article/0,9171,1565540,00.html
http://sramanamitra.com/2006/02/23/technorati-valuation-without-revenue/
http://www.iac.com/businesses.html
http://mysqluc.com/presentations/mysql06/carroll_dorion.ppt

Snocap has been acquired by Imeem

Snocap was known to be searching for a new home for quite some time and it seems they have shopped themselves successfully as Imeem has bought them last month. Snocap is digital music wholesaler and Imeem is music streaming site so the synergy seems quite logical here. Terms were not disclosed publicly.

Snocap was founded in 2002 by Napster creator Shawn Fanning and Jordan Mendelson.  Ron Conway is perhaps their angel investor. The company is known to have taken $10M million from Conway, Morgenthaler Ventures and WaldenVC. Just like Imeem’s deal with Universal Snocap has also signed a distribution deal with MySpace. In fact Imeem and Snocap have also partnered in the past where Imeem used Snocap’s digital fingerprinting technology to track how many times any particular song is streamed on its site so that it can allocate a portion of its advertising dollars to the major music labels.

It seems Imeme was in desperate need from the Snocap’s technology while Snocap needed a new home, which surely helped the deal happen.
 
Snocap has gone through significant layoffs and was rapidly heading towards major failure. The company’s key person Shawn Fanning was also planning to leave the company and deal with his new creature Rupture.

More about Imeem

Imeem is an online community where artists, fans & friends can promote their content, share their tastes, and discover new blogs, photos, music and video. Here are some of the things you can do on imeem:

Discover
-Enjoy the latest videos, music, photos, or blogs posted on imeem.
-Stay up-to-date with your personal network of fans and friends with “What’s New” notifications.
-Get in-depth stats for all your content and track their popularity.

Interact
-Tag, comment, rate, and share any of your friends’ cool (or embarrassing) content.
-Create or join groups for your favorite band, event, topic, and more!
-Start discussions with other imeem users and make new friends.
 
Share
-Embed your media on other pages (such as your blog, Bebo, etc.).
-Recommend stuff to your friends or add it to your “Favorites” list.
-Easily add media to your Del.icio.us, WordPress, Blogger, or Typepad.

Imeem is hoping to make money from advertisers, a portion of which will be shared with its music partners. It has signed up Puma, Nike and Microsoft among others, though it does not disclose revenues.

This is Imeem’s second acquisition after they acquired Anywhere.FM in January. Imeem has raised two rounds of capital, although the size of the second round was not disclosed.

Imeem is based in San Francisco and takes its name from “meme” – a term coined to describe the ideas that communities, adopt, and express. Dalton Caldwell is the CEO of the company and the co-founded together with Jan Jannink. The company used to be in Palo Alto and is known to have launched in 2004. Known investors in the company are Morgenthaler (Series A founding) and Sequoia Capital, the venture capital fund that supported Google and YouTube.

It is interesting to know what Imeem’s total funding is considering the fact Snocap has raised $10M. Imeem’s first round was only for $750K. Imeem does not disclose revenues.

Some competitors and similar companies include Skreemr, Seeqpod, Deezer, Pandora, Lala, MOG, we7 and Wixi.

More

http://snocap.com/
http://Imeem.com
http://www.crunchbase.com/company/imeem
http://www.techcrunch.com/2008/02/13/imeem-acquires-snocap/
https://web2innovations.com/money/2007/12/10/exclusive-imeem-inks-a-deal-with-the-worlds-largest-record-company/
http://www.techcrunch.com/2006/09/02/myspace-gets-into-music-biz/
http://www.techcrunch.com/2007/06/20/imeem-now-officially-legitimate/

Stock photography and video footage leader sold out for $2.4B

Getty Images Inc. the world’s leading creator and distributor of visual content and other digital media announced today that it has entered into a definitive merger agreement to be acquired by affiliates of the private equity firm Hellman & Friedman LLC in a transaction valued at approximately $2.4 billion, including the assumption of existing debt.

Under the terms of the agreement, Getty Images stockholders will receive $34.00 in cash for each outstanding share of common stock they own. This price represents a premium of approximately 55 percent over the closing price on January 18, 2008, the last trading day before the Company announced that it was exploring strategic alternatives. Based on Getty’s 61 million fully diluted shares, the cash offer is worth almost $2.1 billion. The buyer is also assuming about $300 million in debt, pushing the total value of the transaction to $2.4 billion. The company’s shares have immediately jumped $7.22, or 29.5 percent, to $31.67 Monday. The company had more than $850M revenues for 2007.

Ten-year-old Getty, whose nearest competitor is privately held Corbis Corp., put itself up for sale in January after taking a beating on Wall Street for two years. After reaching a high above $94 per share in November 2005, Getty’s shares tumbled 77 percent to $21.80 in Jan. 18 of this year, as higher costs ate away at profits. Four days later, the Seattle-based company said it would consider strategic alternatives to boost shareholder value.

The Board of Directors of Getty Images has approved the merger agreement and resolved to recommend that Getty Images’ stockholders approve the transaction. Completion of the transaction is subject to shareholder approval and other customary closing conditions. The transaction is not subject to a financing condition and is expected to close in the second quarter of 2008.

“Our Board of Directors has thoroughly evaluated strategic alternatives for Getty Images and has determined that this outcome is in the best interests of our stockholders as it provides them with superior and certain value. Furthermore, Hellman & Friedman brings specific industry expertise and support for the vision of the Company’s management team that will benefit our employees, customers and partners,” said Jonathan Klein, co-founder and chief executive officer of Getty Images. “Just over a decade ago we started Getty Images with little more than a vision and have achieved industry leadership due to the extraordinary talent, effort and commitment of our employees and partners. We are enthusiastic about entering the next phase of Getty Images’ evolution by partnering with Hellman & Friedman as we continue to provide innovative offerings to businesses and consumers in a very dynamic digital media environment.”

Andy Ballard, managing director of Hellman & Friedman, said, “Getty Images is the leader and pioneer in the visual content and digital media business. We believe in the vision and execution capabilities of Jonathan Klein and his team, and share their commitment to the Company’s stakeholders and customers. We look forward to working with all of Getty Images’ employees to realize the full potential of its traditional businesses while furthering the evolution of Getty Images into a global digital media company.”

Financing commitments have been provided by Barclays Capital, GE Commercial Finance and RBS Greenwich Capital. In addition, Getty Investments and certain related parties, including the co-founder and chairman, Mark Getty, who collectively hold approximately 15 percent of the Company’s shares, have agreed to vote in favor of the transaction and rollover their shares into the acquiring entity.

Goldman, Sachs & Co. was the financial advisor to Getty Images. Barclays Capital and RBS Greenwich Capital are acting as financial advisors to Hellman & Friedman. Weil Gotshal & Manges LLP and Simpson Thacher & Bartlett LLP are serving as legal advisors to Getty Images and Hellman & Friedman, respectively.

Troy Mastin, an analyst at William Blair & Co., said Getty’s core business of selling more-expensive photographs to newspapers and magazines had declined as those media struggled with the rise of Internet content. Sales to direct mail and brochure customers also cooled.

At the same time, though, Getty’s newer businesses grew faster. The company bought iStockPhoto.com, which sold images for as little as $1 for unlimited use, in 2006. Mastin said customers who once bought the low end of Getty’s core stock photos moved over to buy the even cheaper royalty-free photos.

The company has also bought Pump Audio last summer, and bought Scoopt about a year ago. They have strengthened their positions in  both the music and citizen journalism business with both acquisitions, as well as being a solid friend to the independent and freelance journalist with their wire service.

While Getty didn’t give a specific reason for its January decision to seek a buyer, Mastin said it was likely because Getty felt Wall Street was paying more attention to the stagnating core business than to its emerging segments.

It has probably also something to do with the rapidly emerging web 2.0 companies within the space.

More about Getty Images

Getty Images creates and distributes the world’s best and broadest imagery collections, making them available in the most accessible and usable way — 24 hours a day, every day. From contemporary creative imagery to news, sports, entertainment and archival imagery, our products are found each day in the full range of traditional and digital media worldwide.

Mark Getty and Jonathan Klein founded Getty Images in 1995 with the goal of turning a disjointed and fragmented stock photography market into a thriving, modernized industry able to meet the changing needs of visual communicators. We were the first company to license imagery via the web, moving the entire industry online.

Today, gettyimages.com serves an average of 3.2 billion thumbnails, 7.3 million visits and 4 million unique users in addition to an average of 175 million page views each month. Nearly 100 percent of the company’s visual content is delivered digitally.

The company frequently receives industry recognition for both its photography and its business accomplishments. In 2005, American Photo Magazine acknowledged the company’s commitment to the photography industry, naming Getty Images’ co-founders Jonathan Klein and Mark Getty as number one of “The 100 Most Important People in Photography.”

We believe our success comes from our focus on the areas that matter most to our customers:

Simplicity. We built a one-of-a-kind platform to help customers find and manage the right images, and in a few short years it has become the industry standard. We provide the most accessible and reliable way to search, download, license and manage the broadest and deepest selection of relevant still images and film clips.

Expedience. To serve the demands of a fully digital publishing industry, we provide instantaneous feed of news, sport and entertainment images as well as painstaking archival research. We also offer a full-service photo assignment service that can be tailored to your exact photographic needs.

Relevance. We are the first imagery company to employ creative researchers to analyze demographics, sales data and behavioral trends to anticipate the visual content needs of the world’s communicators.

Experience. Our photographers are subject-matter specialists with years of experience, not generalists — a distinction that helps ensure that our images capture defining moments and deep insights.

About Hellman & Friedman

Hellman & Friedman LLC is a leading private equity investment firm with offices in San Francisco, New York and London. The Firm focuses on investing in superior business franchises and serving as a value-added partner to management in select industries including media and marketing services, financial services, professional services, information services, healthcare and energy. Since its founding in 1984, Hellman & Friedman has raised and, through its affiliated funds, managed over $16 billion of committed capital and is currently investing its sixth partnership, Hellman & Friedman Capital Partners VI L.P., with over $8 billion of committed capital. Representative investments in media and marketing services include: DoubleClick Inc., Catalina Marketing Corporation, Young & Rubicam Inc., Digitas Inc., The Nielsen Company, and Axel Springer AG.

The private equity group has invested in other rapidly changing digital businesses, including online advertising company Digitas, acquired by Publicis Groupe, and DoubleClick, whose buyout by Google Inc. is pending regulatory approval in Europe.

Hellman & Friedman LLC has also some recent acquisitions of non-tech companies like Saipem SA, which is oil and gas related organization, and a number of smaller private equity firms.

More

http://www.gettyimages.com/
www.hf.com
http://corporate.gettyimages.com/source/about/
http://corporate.gettyimages.com/source/investors/index.aspx?pageID=financialReleases&shPage=releaseDetail.cfm&ReleaseID=295764
http://finance.google.com/finance?q=GYI+&hl=en
http://en.wikipedia.org/wiki/Mark_Getty
http://en.wikipedia.org/wiki/Jonathan_Klein_%28Getty_Images%29
http://www.guardian.co.uk/media/2008/feb/25/mediabusiness.digitalmedia?gusrc=rss&feed=media
http://mashable.com/2008/02/27/getty-images-buyout/
http://www.boston.com/business/articles/2008/02/26/getty_images_accepts_buyout/
http://www.macworld.com/article/132247/2008/02/getty.html
http://www.cnn.com/2008/BUSINESS/02/25/getty.images.ap/index.html
http://seattletimes.nwsource.com/html/businesstechnology/2004199788_apgettyimagessale25.html
http://www.msnbc.msn.com/id/23333922/
http://biz.yahoo.com/ap/080225/getty_images_sale.html
http://seattlepi.nwsource.com/business/352615_getty26.html
http://mashable.com/2007/03/12/scoopt-acquired-by-getty-images/
http://www.pehub.com/article/articledetail.php?articlepostid=10502
http://mashable.com/2007/06/20/getty-images-acquires-pump-audio/
http://www.newratings.com/en/main/company_headline.m?section=company&option=headline&id=1703741

Ancestry.com has been bought out by a private equity firm, preparing for an IPO

One of the few dot com success stories Ancestry.com and their parent company The Generations Network has entered into a private buyout, a couple of months ago, with the private equity firm Spectrum Equity Investors for a reportedly $300M acquisition deal. Private equity buyouts have been a serious, if not the only, alternative of IPOs these past years.

Spectrum Equity Investors has led the investment of $300 million to purchase a majority interest in the company. Spectrum is a private equity firm based in Menlo Park and Boston and has been a shareholder in The Generations Network since 2003. Following the transaction, Vic Parker and Ben Spero from Spectrum will serve on the company’s new board of directors, along with Tim Sullivan, President and CEO of The Generations Network. Additional terms of the transaction were not disclosed but the investment was said will support and accelerate the company’s “strategic direction and growth plan”.

This is being said to be a liquidity event for most of TGN’s shareholders, although it was said that the deal does not represent a complete buyout. Employees and possibly some outside shareholders still have equity in the entity, which is almost certainly preparing for an IPO or other larger liquidity event. The company is said to be making over $150M in revenues per year and is reported to be hugely profitable according to online sources. The company’s current management team will continue to lead the company.

The Generations Network (formerly MyFamily.com Inc) is a genealogy discovery company which helps you map your family tree. The Generations Network, Inc. provides people the content, community, and technology to empower them to find the people most important to them — and discover and share their unique family stories. The company’s most popular brand is Ancestry.com, which has more than 5 billion names and 23,000 searchable databases for family history information, including the web’s largest collection of historical records.

The Generations Network operates a number of popular sites among which ancestry.com, ancestry.com.uk, ancestry.com.au, ancestry.ca, ancestry.de, ancestry.se, ancestry.fr, ancestry.it, myfamily.com, genealogy.com, rootsweb.com, familytreemaker.com, ancestrymagazine.com.

In late 2007 the company has launched DNA Ancestry — a new service combining the precision of DNA testing with Ancestry.com’s unrivaled collection of 5 billion names in historical records and the site’s unmatched online family history community.

This DNA testing service provides Ancestry.com’s growing network of more than 15 million users a tool that helps solve family-tree mysteries through science. By taking a simple cheek-swab test and comparing DNA test results in DNA Ancestry’s expanding results database, individuals may be able to extend the branches of their family trees, prove (or disprove) family legends, discover living relatives they never knew existed and find new leads where traditional paper trails dead end.

“DNA testing in family history is reaching critical mass,” said Megan Smolenyak, Chief Family Historian for Ancestry.com and co-author of the no. 1 selling book on genetic genealogy, Tracing Your Roots with DNA. “As more people add their results, the DNA Ancestry database becomes a powerful asset for users to make connections and discover their family tree. Already, many people have taken a simple DNA test to uncover genetic cousins and tap into their research, gathering names, dates, places and stories for their own family tree.”

DNA Ancestry offers Y-DNA and mtDNA tests — the two types of DNA tests most useful in family history, ranging in price from $149 to $199. The Y-DNA test analyzes the DNA in the Y chromosome, which is passed virtually unchanged from father to son. Test results can help users identify living individuals who share Y-DNA as well as predict ancient ancestors’ origins. Women can benefit from Y-DNA by having their father or other related male take the test. The mtDNA test analyzes DNA in an individual’s mitochondrial DNA, which passes from a mother to her children. Test results predict ancient ancestors’ origins and migration route from Africa and can aid in identifying living cousins.

Ancestry.com has also recently introduced the largest collections of U.S. military records and African-American historical records.

According to Quantcast, the company’s main site Ancestry.com is reaching 3M uniques per month but the site is not reported quantified so we can easily assume the site’s real reach is larger. Comscore, by contrast, says TGN’s group of sites had 8.2 million unique worldwide visitors in August 2007 (the only public date we have discovered online).

The Generations Network properties have more than 900,000 paying subscribers off the 8.2 million worldwide unique visitors per and in the last 18 months the company has solidified its position as one of the largest and most profitable subscription businesses online with success in several areas:

  • Ancestry.com is the world’s leading online family history resource, with more than 5 billion names from historical records, unmatched and proprietary search technologies and an engaged and passionate community f more than 2.5 million active members.
  • A redesigned Ancestry.com experience has transformed an online research tool into a platform for aggregating the world’s family history memories. Since late July 2006, more than 3.8 million family trees have been created on Ancestry.com, over 330 million names added to Ancestry Family Treesâ„¢, and more than 3.5 million individual photos, stories, or scanned documents have been uploaded by members.
  • Ancestry.com now boasts the only completely indexed online U.S. Federal Census Collection (1790-1930), the most comprehensive online compilation of U.S. ship passenger lists (1820-1960), the largest online collection of African American historical documents and the most comprehensive online collection of U.S. military records.
  • Beyond the United States, the Ancestry global network now includes local country sites for the United Kingdom, Canada, Australia, Germany, Italy, France and Sweden.
  • The recent launch of DNA.ancestry.comâ„¢ now extends the Ancestry service into the rapidly growing field of genetic genealogy.
  • AncestryPressâ„¢, a digital publishing platform integrated into Ancestry.com, now gives every family the ability to create completely unique, professionally printed family history books.
  • Family Tree Maker® 2008, the No. 1-selling family history software package, is now available online and in major retail stores throughout North America and Europe.
  • The redesigned myfamily.com site now has new features, providing families everywhere a safe, private, and free family home on the Web.

“Spectrum Equity has been an incredibly supportive and strategic-minded investor in our company for several years, so I am thrilled to have them acquire this majority interest in The Generations Network,” said Tim Sullivan, company President and CEO. “2007 has been the company’s most successful and profitable year to date, and 2008 looks even more promising as we grow our core businesses further, expand our global presence, and innovate with new products and services that help us realize our mission to connect families across distance and time. I appreciate Spectrum’s vote of confidence in our direction and vision, and I am excited to work even more closely with Vic Parker and Ben Spero to continue to transform this amazing and unique business into a truly great company.”

Lehman Brothers acted as financial advisor to The Generations Network, Inc. in the transaction.

The Generations Network, Inc. has been founded in 1983 as a print publishing company called Ancestry and is based in Provo Utah. They’ve raised $95 million to date, although the last round of financing was closed back in 2001.

About Spectrum Equity Investors

Spectrum Equity Investors is a private equity firm focused on investing in profitable, growing services businesses. Founded in 1994 with offices in Menlo Park and Boston, Spectrum manages over $4 billion in capital across five funds. The firm’s investment team has deep experience in information services and online media, including investments in Demand Media, Interbank FX, iPay Technologies, NetQuote, Mortgagebot, RiskMetrics Group, Seisint (acquired by Reed Elsevier PLC) and WorldCheck.

The company’s web sites compete with a number of web 2.0 start ups that have aggressively entered the space one of which is Geni. Other companies include MyHeritage, familytreemaker.com, Story Of My Life, Our Story and 23andMe, founded by one of the Google’s founders, which competes with TGN’s DNA unit, among others. 

More

http://www.tgn.com/
http://www.ancestry.com/
http://www.spectrumequity.com/
http://dna.ancestry.com/
http://www.ancestry.com.uk
http://www.ancestry.com.au
http://www.ancestry.ca
http://www.ancestry.de
http://www.ancestry.se
http://www.ancestry.fr
http://www.ancestry.it
http://www.myfamily.com/
http://www.genealogy.com/
http://www.rootsweb.com/
http://www.familytreemaker.com/
http://www.ancestrymagazine.com/
http://blogs.ancestry.com/
http://blogs.ancestry.com/circle/?p=1960
http://tgn.mediaroom.com/index.php?s=43&item=111
http://tgn.mediaroom.com/index.php?s=43&item=110
http://www.techcrunch.com/2007/10/16/private-buyout-of-ancestrycom-for-300-million/
http://www.crunchbase.com/company/thegenerationsnetwork
http://www.techcrunch.com/2007/03/05/100-million-valuation-for-geni/
http://www.quantcast.com/ancestry.com
http://www.news.com/Google-invests-3.9-million-in-biotech-start-up/2100-1014_3-6185860.html
http://www.news.com/Ancestry.com-parent-sold-for-300-million/2100-1038_3-6214028.html?tag=resourceshelf
http://www.searchengineworld.com/tech/3456440.htm
http://www.topix.com/com/spectrum-equity-investors/2007/10/ancestry-com-parent-sold-for-300-million
http://www.reuters.com/article/technologyNews/idUSN1729430020071017

Microsoft’s stock has fallen 13% since its offer for Yahoo

We have read tons of stories and points of views about the potential deal between Microsoft and Yahoo over the past weeks. We guess all people did. Everything seems already being said about the deal. Yet, something interesting popped up in the news today. It turns out that Microsoft is the big loser from the situation with Yahoo’s acquisition because it has lost 13% of its market capitalization since it has announced its bid to buy Yahoo almost a month ago.

After Microsoft’s stock has fallen 13% since its offer for Yahoo, the Microsoft’s offer price seems to have also been reduced to $29 – $41.7B as of today. Yahoo shares, by contrast, closed at $29.66 on the NASDAQ on Friday, indicating that investors’ expectations are for Microsoft to raise its bid.

While the software giant’s founder and chairman has taken a back seat to CEO Steve Ballmer in the Yahoo bid, Gates wasted no time in tempering expectations if Microsoft failed in its effort to buy Yahoo.

Chairman Bill Gates said yesterday that they are not planning to raise the bid for Yahoo and called the current offer “very fair.” Instead Bill Gates said they are having plans to invest heavily — and they said they can afford it — in anything but web search to compete against Google, with or without Yahoo. Just like what we have always been thinking — it is all about Microsoft vs. Google and Yahoo was only an instrument — Gates’s statement reconfirms it: “Google is the only company with “critical mass” in Web search.”

Yet, he admits that they’d get there faster if the great engineering work that Yahoo has done and the great engineers there were part of the common effort

“There is nothing new in terms of the process. We’ve sent our letter and we’ve reinforced that we consider that it’s a very fair offer,” said Gates, who remains the public face of Microsoft, even though he plans to switch to a part-time role at the company in June to focus on his philanthropic work.

What will happen with the stock prices of both companies if a deal does not go thru? We think both companies will get punished by the public market and have their stock prices reduced. Yahoo’s hit is expected to be stronger. 

More

http://finance.yahoo.com/q?s=MSFT
http://finance.yahoo.com/q?s=yhoo
http://uk.reuters.com/article/technology-media-telco-SP/idUKN1819990520080219
http://news.zdnet.com/2100-9588_22-6231021.html
http://mashable.com/2008/02/18/bill-gates-were-not-raising-the-yahoo-bid/
https://web2innovations.com/money/2008/02/01/yes-we-were-right-yahoo-was-seriously-undervalued-microsoft-offers-446b-for-the-company-a-62-premium-over-their-value-from-yesterday/
https://web2innovations.com/money/2008/02/02/is-google-going-to-be-the-winner-from-the-microsoft-yahoo-deal/
https://web2innovations.com/money/2008/02/04/google%e2%80%99s-chief-legal-officer-vs-microsoft%e2%80%99s-general-counsel/
https://web2innovations.com/money/2008/02/08/one-after-another-the-potential-competitive-bidders-for-yahoo-drop-off-is-yahoo-going-to-surrender-to-microsoft/
https://web2innovations.com/money/2008/02/09/end-of-speculations-yahoo-rejected-microsoft%e2%80%99s-offer/
https://web2innovations.com/money/2008/02/11/yahoo%e2%80%99s-official-response-to-microsoft%e2%80%99s-offer-no/
https://web2innovations.com/money/2008/02/12/and-here-is-what-microsoft-has-to-tell-yahoo/
http://biz.yahoo.com/prnews/080211/aqm241.html
http://finance.yahoo.com/q?d=t&s=msft
http://money.cnn.com/2008/02/09/magazines/fortune/yahoo_rejects_bid_report.fortune/?postversion=2008020914
http://www.ft.com/cms/s/0/fffc1006-d5e8-11dc-bbb2-0000779fd2ac.html?nclick_check=1
http://blogs.barrons.com/techtraderdaily/2008/02/05/yahoo-the-five-scenario-analysis/
http://www.techcrunch.com/2008/02/08/yahoo-board-to-determine-fate-of-company-today/
http://www.techmeme.com/080201/p78#a080201p78
http://www.mercurynews.com/ci_8149194
http://www.businessweek.com/technology/content/feb2008/tc2008021_885192.htm?chan=rss_topStories_ssi_5
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/02/AR2008020200568.html
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/02/MN8OUQGNB.DTL&type=tech
http://kara.allthingsd.com/20080201/microsoft-to-yahoo-two-days-to-respond-or-else/
http://www.alleyinsider.com/2008/02/hold-everything-we-may-get-another-yhoo-bidder.html
http://www.techcrunch.com/2008/02/01/what-would-a-combined-microsoft-yahoo-look-like/
http://www.techcrunch.com/2008/02/01/ballmers-internal-e-mail-to-the-troops-explaining-the-yahoo-acquisition/
http://www.techcrunch.com/2008/02/02/news-corp-scrambles-to-bid-for-yahoo/
http://www.alleyinsider.com/2008/02/microsoft-yahoo-combined-financials.html
http://www.informationweek.com/news/showArticle.jhtml?articleID=206107168
http://mashable.com/2008/02/10/yahoo-aol-merger/
http://www.techcrunch.com/2008/02/10/wait-yahoo-and-aol-i-was-looking-forward-to-something-moreintelligent/
http://www.techcrunch.com/2008/02/09/microsofts-80-billion-and-growing-yahoo-headache/
https://web2innovations.com/money/2008/02/09/end-of-speculations-yahoo-rejected-microsoft%e2%80%99s-offer

Revver, the video-revenue sharing site finally sells out, but the price is not hefty

The site best known as the first video site that started to split the ad revenue with publishers and video creators and producers on a 50/50 basis is being reported sold. The troubled video site Revver was bought by Brad Greenspan’s LiveUniverse for what is rumored on several tech blogs to be under $5 million. No more public information at this hour is available but the price seems quite low taking into consideration the huge amount of money the company has taken so far. Revver is known to have raised $12.7 million from Comcast, Turner, Draper Fisher Jurvetson, Bessemer Venture Partners, Draper Richards and William Randolph Hearst III. Checking on Revver’s blog gave us no further details on the deal.

Earlier this month Revver was put up for sale where the price tag was set to be $1.5 million or less in cash and debt assumption. CNET was among the first media to report on the potential deal between LiveUniverse and Revver, though they did say the deal had fallen apart.

A person from inside the company has commented on the deal that way: “I wouldn’t say anyone got rich, but everybody was happy.”

Many independent creators still prefer the service, though web video stars Ze Frank, Ask a Ninja, Lonelygirl15, and Invisible Engine have discontinued using it as their main platform.

Perhaps everything boils down to the simple fact it is pretty hard to monetize video site. Even though the traffic is perhaps playing little to no role for Revver’s business model it is interesting to note their visitors are not that much – below 1M unique visitors per month as reported on Quantcast.

The Revver team has indicated they plan to work under the new ownership, and no lay off plan has been announced for the video sharing company at present.

The buying company LiveUniverse is probably most popular with the fact it has been founded by one of the founders of MySpace – Brad Greenspan. With over 55M monthly unique visitors, LiveUniverse is one of the world’s largest online entertainment networks. They operate several successful and popular websites across three core verticals: Video, Social Networking & Music. LiveVideo is one of their sites, which about a year ago instigated a scandal on YouTube when it reportedly paid top YouTube users to come to its platform. LiveUniverse founder Brad Greenspan, who was involved with MySpace early on, is perhaps best known for his lawsuits protesting the company’s sale to News Corp.

Additionally in 2006, Greenspan also initiated a lawsuit and activism site against his former company, MySpace, calling attention to the fact they were censoring widget makers and software service providers using MySpace as a development platform.

More about Revver

Revver is a video-sharing platform built the way the internet really works. We support the free and unlimited sharing of media. Our unique technology tracks and monetizes videos as they spread virally across the web, so no matter where your creativity travels, you benefit.

Revver is also the viral video network that pays. We connect video makers and sharers with sponsors in a free and open marketplace that rewards them for doing what they do best.

Revver is committed to the artist. You have something to say and we built our network to empower you to say it.

How does it work?

  1. Upload your video.
  2. We pair your video with a targeted advertisement.
  3. Share your video across the web. The more people see it, the more money you can make.
  4. We split the ad revenue with you 50/50.
  5. Sharers earn money too! Help spread Revver videos and earn 20% of the ad revenue. The remaining money is split 50/50 between the creator of the video and Revver.

We’ve built all sorts of cool and easy sharing tools to help you make your work go viral and earn more money. Share and shared alike. Can you feel the love?

Revver API
Attention developers! Want to build your own video-sharing site like Revver.com? You can use our API to do it. The Revver API includes all the tools you need to create your own video portal complete with user accounts, uploading, sharing tools and access to the full Revver library of videos. Revver covers the bandwidth and shares all ad revenue with you and the video makers.

More

http://revver.com/
http://liveuniverse.com/
http://mashable.com/2008/02/14/liveuniverse-buys-revver/
http://newteevee.com/2008/02/14/liveuniverse-buys-revver-for-more-than-a-song/
http://blog.revver.com/
http://mashable.com/2008/02/06/revver-for-sale/
http://www.contentinople.com/author.asp?section_id=429&doc_id=142633
http://nalts.wordpress.com/2007/02/07/livevideo-vs-youtube-2/
http://mashable.com/2006/11/02/myspace-founder-sues-news-corp-over-censorship/
http://livevideo.com/
http://www.news.com/8301-10784_3-9865731-7.html?part=rss&subj=news&tag=2547-1_3-0-20
http://en.wikipedia.org/wiki/William_Randolph_Hearst_III
http://www.dfj.com/
http://www.bvp.com/
http://www.draperrichards.com/
http://www.quantcast.com/revver.com

InfoSpace has sold its mobile unit for $135M to Motricity, the second prepares to go public

One of the Internet’s oldest companies InfoSpace is probably not performing well since they are largely selling out their businesses. With its switchboard and local directory business having already been sold to Idearc for reportedly $225M, what’s left of InfoSpace was the mobile services division, which serves up managed services infrastructure for mobile carriers. This involves the technology needed for mobile search, storefronts, messaging services and portals. This sale appears to leave InfoSpace with only its Dogpile and other desktop search properties, which have a very small market share. One can’t help but think that CEO Jim Volker and his team are selling off the company piece by piece — because that’s literally what seems to be happening.

InfoSpace Inc. is publicly traded company on NASDAQ with $346M market capitalization where the 52 week high / low is $27.76 and $8.14 respectively. The revenues have dropped to $140.54M for 2007 from $153.80M in 2006. During the first weeks of the current year the InfoSpace’s shares have slightly grown up on 4Q results rise from year ago on the assets sale.

A couple of months ago Motricity, a mobile content solutions service, has acquired the mobile services business unit of InfoSpace for what is said to be $135M in an all cash transaction. From what we have found out it seems the acquisition is being funded largely by Carl Icahn and Advanced Equities since the company has then announced the completion of its $185M a round of funding, which was led by Advanced Equities, Inc., Carl Icahn and New Enterprise Associates, Inc.

Ryan Wuerch is said will stay on as Chairman and CEO of Motricity and Steve Selman, the current executive vice president of InfoSpace’s mobile services business unit, will be appointed as President, Chief Operating Officer of Motricity. With the deal, Motricity will gain access to InfoSpace’s clients, which already includes AT&T, Verizon, Sprint, T-Mobile, Alltel, and more.

“Two of the best companies in the industry are now being integrated to create the premier provider of mobile platform infrastructure,” said Ryan Wuerch, chairman and CEO of Motricity. “We have unparalleled experience in mobile platform development, systems integration, innovation and building world class technology with a proven ability to scale – powering the mobile marketplace including the largest operators and media companies in North America and Europe.”

The acquisition expands Motricity’s customer base to include 11 of the top 13 carriers in North America including AT&T, Verizon Wireless, Sprint, T-Mobile, Bell Mobility, Tracfone and Alltel. Motricity’s managed service infrastructure powers storefronts and communities for 9 of the top 13 carriers in North America and has generated over $1 billion of gross content sales to date. Motricity now powers 5 of the top 6 carrier “start screens” with its mobile portal product which will support billions of page views this year alone. The transaction enhances Motricity’s FuelTM platform, which is a unified suite of solutions that includes content storefront, portal, search, community and messaging services. In addition, it expands Motricity’s international presence by adding offices in the U.K., Paris, and the Netherlands and leading customers throughout Europe including Virgin UK, KPN and Vodafone.

Experts are saying the company is in preparation to go public at near future and such consolidation of their core business in terms of more mobile content, more carriers signed up, more revenues and the reach is perhaps the key towards that direction.

More about InfoSpace Inc.

InfoSpace, Inc. [NASDAQ:INSP] s a developer of tools and technologies that assist consumers with finding content and information on the Internet or mobile phone. The Company uses its technology, including metasearch, to power its own branded Websites and provide private-label online search and directory services to distribution partners. In addition, its mobile applications provide programming and sales opportunities to the Company’s mobile carrier partners, while providing consumers with relevant mobile functionality and mobile media content, including ringtones, graphics and games. The Company operates through two units: Online, which comprises the Company’s search and directory properties, as well as its private label distribution service, and Mobile services, including portal, storefront, messaging and mobile search. InfoSpace maintains facilities in the Los Angeles, California; Westborough, Massachusetts; Woking and Eastleigh, United Kingdom, and Papendrecht, The Netherlands.

Our mission is to make the discovery of information faster, easier, and more relevant. We’ve been doing it for over 10 years. Now, with more than 100 distribution partners and proven relationships with Google, Yahoo!, Ask, and Windows Live Search, InfoSpace is uniquely equipped to be a leader in the rapidly growing Internet search market. In fact, the recent sale of our Mobile and Directory divisions has solidified our focus and leadership solely in the online space.

Better Results with Metasearch Technology
By delivering best-of-the-best results from the Internet’s top search engines, our metasearch technology separates us from competitors and provides an experience that users prefer. Research backs it up.

For the second consecutive year, our leading metasearch site, Dogpile, has been awarded “Highest in Customer Satisfaction Among Internet Users with Primary Search Engines/Functions.” And when users are presented with more meaningful information, they’re more likely to click a result—which leads to increased revenue for advertisers and listings partners.

We have established offerings in two different areas:

Consumer Products
Our four branded search sites include our flagship metasearch engine, Dogpile, as well as MetaCrawler, WebCrawler, and WebFetch.

Our metasearch technology delivers end users the most relevant results on the Web by searching more than 12 of the top search engines, including Google, Yahoo!, Ask, Windows Live Search, and more.

Business Solutions
We provide customized metasearch solutions, downloadable toolbars, and portal services for destination sites, Internet service providers, and international news organizations.

Our private-label solutions help partners quickly and cost-effectively tap into the profit potential of search and online local advertising by providing search capabilities and services under their own brand.

More about Motricity

Motricity is a leading provider of mobile content services and solutions that enable consumers to receive the right content at the right time, every time. The company’s offerings span the content delivery chain, enabling compelling end user experiences and delivering profitable and reliable mobile content offerings for mobile operators, media and entertainment companies, mobile specialists and more. Motricity’s customers include 11 of the top 13 carriers in North America and 20 of the top television networks with marquee partners such as MTV, BET, Turner, AT&T, Alltel, Bell Mobility and others. Products and services range from mobile portals and storefronts to messaging aggregation with access to more than 200 million mobile subscribers.

Motricity now emerges as the only company with proven and scalable offerings across multiple key mobile content solution categories, including: storefronts, search, managed-web, portals, messaging, content aggregation, marketing campaign management and community solutions. By offering these world-class services, Motricity is able to create compelling user experiences and deliver profitable mobile content services to companies seeking to leverage the emerging mobile channel, interact with consumers and build brand loyalty.

In addition, Motricity operates a network of consumer Web sites that offer applications for mobile devices, including: eReader.com, PalmGear.com, Pocketgear.com, Smartphone.net, SymbianGear.com and Mobile2day.de, and powers similar web sites for customers such as the Sony Ericsson application shop, the Palm Software Connection and the PalmSource shop.

The company is headquartered in Durham, N.C., with offices in Bellevue, Los Angeles, London, Paris, Munich and the Netherlands.

Motricity was formed in 2001 by Ryan Wuerch and has since become a leading provider of mobile content services and solutions.

In 2001, Wuerch founded Nashville, Tennessee-based PowerByHand, which would soon become the leading global provider of information, entertainment and education content for handheld and mobile devices. PowerByHand acquired a number of leading commercial Internet sites, including PalmGear.com in October 2002, eReader.com in September 2003 and PocketGear.com and Smartphone.net in March 2004.

In April, 2004, PowerByHand merged with Pinpoint Networks, a provider of software and services for the management and delivery of mobile data services, based in Research Triangle Park, North Carolina. The new company combined PowerByHand’s consumer reach and strong content and developer partnerships with Pinpoint’s carrier-grade technology and international wireless carrier experience, creating the market leader for integrated mobile content solutions.

In October, 2004, the company changed its name to Motricity and announced the acquisition of European mobile content portal Mobile2Day.de. The Mobile2Day.de acquisition complemented Motricity’s content base of more than 60,000 applications by adding an additional 6,000 Symbian applications and localized cross-platform content for the European market while expanding our network of online mobile content storefronts. Throughout 2005, Motricity generated tremendous momentum and excitement, announcing a number of major customer and financial wins while also expanding globally and successfully entering new markets. In October 2004, Motricity closed $27 million in venture funding led by Silicon Valley-based Technology Crossover Ventures (TCV).

In July, 2005, Motricity closed its second major private funding round by collecting $30 million from Chicago-based Advanced Equities Inc., as well as such existing investors as Technology Crossover Ventures, New Enterprise Associates and Intel Capital.

In August, 2005, Motricity announced the acquisition of M7 Networks, the leading provider of advanced wireless services that connect wireless operators, content providers and end users around mobile content based communities, such as games and music. This acquisition strengthened Motricity’s mission to accelerate the adoption of mobile content worldwide.

In April, 2006, Motricity secured its third major round of funding of $40 million to fuel the company’s aggressive expansion in the mobile content industry. This third round was led by Advanced Equities Inc. with participation from other existing investors including New Enterprise Associates and Technology Crossover Ventures.

In July, 2006, Motricity announced the acquisition of GoldPocket Wireless, the leading provider of mobile technology solutions for media and entertainment companies. GoldPocket extended Motricity’s content distribution capabilities and enhances Motricity’s award-winning Fuelâ„¢ platform with a distribution gateway that connects more than 200 million subscribers and a mobile marketing campaign manager that has been chosen by over 20 television networks and 45 media companies to power large scale interactive campaigns with real-time requirements. The deal gave Motricity an unmatched customer footprint and positions the company as the leading provider of on-deck and off-deck solutions for mobile operators and media & entertainment companies.

In August, 2006, Motricity received an additional $32 million in funding, led by Advanced Equities Inc. with participation from other existing investors. In February 2007, Motricity received $50 million in equity funding from Carl Icahn. This brings the company’s total funding to over $200 million.

In December, 2007, the company acquired the Seattle-based mobile services business unit of InfoSpace, Inc. (NASDAQ: INSP), a leading developer of mobile technologies and infrastructure services and raised more than $180 million to complete the all cash transaction.

The acquisition expands Motricity’s customer base to include 11 of the top 13 carriers in North America including AT&T, Verizon Wireless, Sprint, T-Mobile, Bell Mobility, Tracfone and Alltel. Motricity’s managed service infrastructure powers storefronts and communities for 9 of the top 13 carriers in North America and has generated over $1 billion of gross content sales to date. Motricity powers 5 of the top 6 carrier “start screens” with its mobile portal product which will support billions of page views this year alone. The transaction enhances Motricity’s FuelTM platform, which is a unified suite of solutions that includes content storefront, portal, search, community and messaging services. In addition, it expands Motricity’s international presence by adding leading customers throughout Europe including Virgin UK, KPN and Vodafone.

Motricity has received numerous awards and constant recognition honoring the commitment and leadership that the company continues to exhibit, including:

  • 2007 North Carolina Technology Association (NCTA) Private Company of the Year
  • 2006 GSM Association Award for Best Service Delivery Platform
  • 2006 Mobile Entertainment’s Award for Best Content Service Delivery Platform
  • 2005 Frost & Sullivan Award for Premium Mobile Content Platform of the Year
  • 2005 Red Herring 100 Private Companies of North America

Today, Motricity has the support of strong institutional and strategic investors and the industry’s leading customers, including CBS, Turner, CNN, Fox, the NBA, AT&T, Sprint, Alltel, Virgin Mobile, Leap, Mobilcom, BET, Palm and Sony Ericsson.

More

http://motricity.com/
http://www.motricity.com/press/releases.php?rID=07_1228_motricity
http://www.infospaceinc.com/
http://mashable.com/2007/10/15/motricity-infospace/
http://searchengineland.com/071015-132510.php
http://www.idearc.com/
http://searchengineland.com/070917-073055.php
http://finance.google.com/finance?q=NASDAQ:INSP
http://www.forbes.com/markets/feeds/afx/2008/02/06/afx4622765.html
http://moneycentral.msn.com/inc/news/providerredir.asp?feed=AP&date=20080206&id=8148999
http://stocks.us.reuters.com/stocks/fullDescription.asp?rpc=66&symbol=INSP.O
http://www.advancedequities.com/
http://en.wikipedia.org/wiki/Carl_Icahn

Yahoo makes an acquisition of its own – the online video platform Maven Networks

Undeterred by the threat of a hostile takeover Microsoft imposed over them a couple of weeks ago Yahoo seems to have completed an acquisition of its own Tuesday by buying online video service Maven Networks Inc. for $160 million.

The deal marks Yahoo’s latest attempt to expand its online advertising network and more concrete its online video advertising in particular. Yahoo plans to use Maven’s technology to host video for media partners and incorporate Maven’s video-ad insertion technology into its overall advertising platform.

The talks to buy Cambridge, Mass.-based Maven began before Microsoft announced its bid Feb. 1, said Tim Cadogan, Yahoo’s senior vice president of marketing products. Maven helps television and movie studios find Web sites to show their videos and manage the accompanying advertisements. The six-year-old startup works with a wide range of media outlets, including CBS Sports, Gannett Co., News Corp., Hearst Corp. and Sony Pictures.

“We think video is going to become the third leg of the advertising stool,” said Cadogan. Ads tied to search requests is currently the Internet’s biggest moneymaker, followed by so-called display ads featuring photos, illustrations and other images.

As of December, Yahoo held a 3.4 percent share of the U.S. online video market, lagging far behind Google, whose ownership of industry leader YouTube.com gave it nearly one-third of the market, according to comScore Inc.

Yahoo plans to retain Maven’s roughly 70 employees even as it completes plans to lay off 1,000 workers in other divisions as part of a plan announced two days before Microsoft’s bid.

More about Maven Networks

Maven Networks is an online video platform provider with end-to-end video syndication, content management and advertising solution. Maven helps media companies create, distribute and profit from direct-to-consumer Internet TV channels and networks. The Maven Internet TV Platform(TM) is used by organizations such as CanWest, CBS Sports, CBC, CNET, Gannett, The Financial Times, Fox Business Network, Fox News, Hearst, MediaNews Group, Ogilvy, Scripps Networks, Sony BMG, Sony Pictures Television, and TV Guide.

The company is based in Cambridge, MA. Maven had some high-profile investors, including Accel Partners‘ Jim Breyer, who also is a board member and large investor in Facebook, Walmart Stores, Inc.  and Marvel Entertainment. Accel is known to have been investing heavly in video for almost 20 years now. The firm’s more popular participations include Macromedia, Real Networks, among others. Current investments include user-generated video-sharing site MetaCafe, peer-to-peer file-sharing service BitTorrent and Brightcove.

The Market

Video advertising is promising to be huge opportunity online and the sector is extremely competitive with new players entering every couple of weeks. Venture capitals also do think the online video advertising holds the chances to be the next big thing on Internet to bring billions of revenues in and are pouring big money into start-ups with the hope they come up to the groundbreaking technology that might shake the sector and make them the huge ROI.   

No matter what standard for video ads the sector might adopt – pre-roll ads, mid-roll ads, post-roll ads, watermark ads, viral ads or overlay ads, the undisputed leader remains Google’s YouTube with its huge number of eyeballs. That’s why the smaller players are focusing not on the reach but on different approaches and technologies to more effectively serve, track and measure these video ads. The video ads are in their infancy on Web and there is plenty of room for innovation and growth and all those small start-up companies hold their good chances for success.

Some companies, as we know them, include BlackArrow, BrightRoll, XillianTV, Podaddies, VMIX and MeeVee. BrightRoll video ad network itself has raises $5 Million while VMIX, yet another video network company has also raised a whopping amount of money $16.5M to expand its business. Other video advertising players include Revver, VideoEgg’s TheEggNetwork, ScanScout, Adap.tv, AdBrite’s InVideo platform, BroadRamp and Blinkx.

eMarketer predicts online video advertising to nearly double in 2008 to $1.3 billion and $4.3B by 2011, but no one’s really nailed a scalable ad platform for video. However, Google’s been quietly testing their own system and there are a bunch of other startups tackling it as well.

Meanwhile the Microsoft / Yahoo saga is continuing.

The common expectations of the most likely outcome from the situation are that Microsoft is going to increase its bid to as much as $35 thus effectively raising their bid to $50B.

“We think (Microsoft) will have to enhance its offer if it wants to complete a deal,” wrote Bill Miller, a respected fund manager for Legg Mason Inc., which owns more than 80 million Yahoo shares.

Like many other industry analysts, Miller predicted Yahoo ultimately will end up in Microsoft’s clutches.

“We think it will be hard for (Yahoo) to come up with alternatives that deliver more value than (Microsoft) will ultimately be willing to pay,” he wrote.

Miller also wrote that he has already met with Steve Ballmer, Microsoft’s chief executive, and spoken to Jerry Yang, Yahoo’s CEO and co-founder, to share his views.

Microsoft, on the other side, so far has indicated it’s not budging from its original offer, calling the proposal “full and fair.” Analysts believe the tense mating dance will last at least a few more weeks.

Yahoo has been discussing a search advertising partnership with the market leader, Google Inc., as a way to boost its profits and thwart Microsoft’s bid. But a deal between Google and Yahoo would face significant antitrust hurdles because it would meld the two largest search advertising networks, causing more analysts to conclude an alliance is unlikely.

On the other side it seems that News Corp. is going to enter the bidding war for Yahoo! despite some analyses from earlier this week predicting News Corp. is facing hard time to find enough money to accomplish this major deal. The current debt markets in US were to be blamed.

Today we have found on multiple news sources online that Yahoo and News Corp. are in the middle of series of discussions. The potential deal structure would spin off Fox Interactive Media (MySpace, IGN, Scout Media, Photobucket, Fox Sports, AmericanIdol.com, Flektor, Ksolo; investments in Hulu, Simply Hired and Snocap) into Yahoo, along with a big cash injection from News Corp. and an unnamed private equity fund. The total investment would be valued in the $15B range.

Yahoo would be valued at somewhere around $50 billion before the transaction, north of Microsoft’s $44.6 billion bid. That would leave News Corp., plus the private equity group, with more than 20% of the combined entity. They’d be the largest single stockholder and effectively in control of the combined Yahoo/FIM entity and their nearly 150 billion monthly page views. That amount of traffic/reach would put the combined entity on the globe’s second sport after Google and before Microsoft’s web properties.

In related news Bradley Horowitz, head of Yahoo’s Advanced Technology Division has accepted a position with Google, and have left Yahoo for good. He will be working with Joe Kraus, director of product management and head of Google’s OpenSocial initiative. Bradley joined Yahoo in May 2004 as Director of Multimedia Search, and later worked on Yahoo Desktop Search and the Yahoo Toolbar. He has also played a key role in getting the Flickr acquisition done.

More

http://www.maven.net/
http://www.maven.net/blog/
http://news.yahoo.com/s/ap/20080213/ap_on_hi_te/yahoo_acquisition_8;_ylt=AkolBf3dTEHaJIbfAWroBXbZa7gF
http://www.techcrunch.com/2008/01/31/rumor-yahoo-to-announce-large-video-acquisition-today/
http://www.techcrunch.com/2008/02/12/yahoo-confirms-maven-networks-acquisition/
http://www.techcrunch.com/2008/02/12/yahoo-exec-bails-bradley-horowitz-leaves-for-google/
http://www.techcrunch.com/2008/02/12/yahoo-and-news-corp-continue-marathon-discussions-possible-bid-to-counter-microsoft/
http://www.alleyinsider.com/2008/2/yahoo__news_corp__deal_still_in_the_works_
http://yhoo.client.shareholder.com/press/releasedetail.cfm?ReleaseID=293433
http://www.crunchbase.com/company/maven-networks
http://venturebeat.com/2008/02/12/qa-with-jim-breyer-maven-networks-online-video-opportunities-and-facebook/
http://venturebeat.com/2008/01/31/yahoo-buying-maven-networks-to-serve-online-video-ads-for-big-media/
http://www.elatable.com/blog/about/

And here is what Microsoft has to tell Yahoo!

The saga continues. Following the firm “NO” of Yahoo as of yesterday, Microsoft has put up today an official press release responding to the Yahoo!’s NO with “Reiterates Full and Fair Proposal for Microsoft-Yahoo! Combination”

REDMOND, Wash., Feb. 11 — Microsoft Corp. (Nasdaq: MSFT) today issued the following statement in response to the announcement by Yahoo! Inc. (Nasdaq: YHOO) that its Board of Directors has rejected Microsoft’s previously announced proposal to acquire Yahoo!:

It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties. We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market. A Microsoft-Yahoo! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a    compelling number two competitor for Internet search and online advertising. The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.

On February 1, 2008, Microsoft announced a proposal to acquire all the outstanding shares of Yahoo! common stock for per share consideration of $31 representing a total equity value of approximately $44.6 billion and a 62 percent premium above the closing price of Yahoo! common stock based on the closing prices of the stocks of both companies on Jan. 31, 2008, the last day of trading prior to Microsoft’s announcement. Microsoft’s proposal would allow the Yahoo! shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock, with the total consideration payable to Yahoo! shareholders consisting of one-half cash and one-half Microsoft common stock.

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This material is not a substitute for the prospectus/proxy statement Microsoft Corporation would file with the SEC if an agreement between Microsoft Corporation and Yahoo! Inc. is reached or any other documents which Microsoft Corporation may file with the SEC and send to Yahoo! shareholders in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF YAHOO! INC. ARE URGED TO READ ANY SUCH DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

Investors and security holders will be able to obtain free copies of any documents filed with the SEC by Microsoft Corporation through the web site maintained by the SEC. Free copies of any such documents can also be obtained by directing a request to Investor Relations Department, Microsoft Corporation, One Microsoft Way, Redmond, Washington 98052-6399.

Microsoft Corporation and its directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Microsoft Corporation’s directors and executive officers is available in its Annual Report on Form 10-K for the year ended June 30, 2007, which was filed with the SEC on August 8, 2007, and its proxy statement for its 2007 annual meeting of shareholders, which was filed with the SEC on September 29, 2007. Other information regarding the participants in a proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in any proxy statement filed in connection with the proposed transaction.

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as Microsoft Corporation’s ability to achieve the synergies and value creation contemplated by the proposed transaction, Microsoft Corporation’s ability to promptly and effectively integrate the businesses of Yahoo! Inc. and Microsoft Corporation, the timing to consummate the proposed transaction and any necessary actions to obtain required regulatory approvals, and the diversion of management time on transaction-related issues. For further information regarding risks and uncertainties associated with Microsoft Corporation’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft Corporation’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft Corporation’s Investor Relations department at (800) 285-7772 or at Microsoft Corporation’s website at http://www.microsoft.com/msft.

All information in this communication is as of the date hereof. Microsoft Corporation undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

While reading over different blogs and news stories we came across an interesting view.

Some experts do not accept the fact that people think Yahoo has little to no options left but to accept Microsoft’s offer. The first group says it is not true – Yahoo is having plenty of options to pursue.

It seems like the most obvious “option” would be for Yahoo to ship great products and radically improve the experience of its customers — this is essentially the process the executive team was busy with before this unsolicited bid came on the scene.

While it may be hard for some to imagine that Yahoo would suddenly get its groove back, Apple fought back from a much worse position (remember $6/share?). For all the posturing on both sides, the real underlying question is which ownership configuration would create the most value for customers and communities on a long term run. It would be tragic for a myopic push for short-term shareholder value (and/or acquisition price) to eclipse that more fundamental discussion.
If Yahoo is “massively undervalued,” it’s because its board believes that an independent company has much more long term potential than a combined company would. Microsoft clearly disagrees, and on a financial basis, their “premium” looks impressive, but imagine the world if Microsoft had swooped in and purchased Apple when they were hurting at $6/share… Would that be a better world?

That’s the question we should all be asking — not what sale price is fair.

On the other hand other people claim that Yahoo’s execs had enough time to prove themselves. That said the similarity with Apple ends at comparison of share price. Apple grew their customer base as a result of their actions and that ultimately led to their resurgence. Even though it wasn’t long ago, it was a different time, different place, different environment, and ultimately different people.

If there is a clear monetization plan for products that bring value over what MS is offering, then the Yahoo team should bring that front and center. It sounds as though the Yahoo exec team is saying “just give us more time, and we’ll get it figured out”.

Given how long they’ve been in play, I think the confidence from shareholders in this team to execute on a plan that brings more value than a MS merger is a tough sell right now.

If one takes a look from different perspective if Yahoo! thinks for itself of being “massively undervalued” then it turns out that Yahoo thinks the market was wrong. Some are even going further by asking is Yahoo! arrogant? ‘Massively undervalued’ – Compared to what? Are they that arrogant that they claim that the ‘actual value’ of the company is ANYTHING else than the value assigned by the stock market? It is pretty ballsy to claim that a bid 30% over market value is an under valuation and could basically mean ‘Our company is worth more but we are so bad at making the value visible that no one understands it’

Some of these thoughts were shared with the public on one of the popular tech blogs and credits were to be given if the commentators were not anonymous.

More

https://web2innovations.com/money/2008/02/11/yahoo%e2%80%99s-official-response-to-microsoft%e2%80%99s-offer-no/
http://biz.yahoo.com/prnews/080211/aqm241.html
http://finance.yahoo.com/q?s=yhoo
http://finance.yahoo.com/q?d=t&s=msft
http://money.cnn.com/2008/02/09/magazines/fortune/yahoo_rejects_bid_report.fortune/?postversion=2008020914
http://www.ft.com/cms/s/0/fffc1006-d5e8-11dc-bbb2-0000779fd2ac.html?nclick_check=1
http://blogs.barrons.com/techtraderdaily/2008/02/05/yahoo-the-five-scenario-analysis/
http://www.techcrunch.com/2008/02/08/yahoo-board-to-determine-fate-of-company-today/
https://web2innovations.com/money/2008/02/02/is-google-going-to-be-the-winner-from-the-microsoft-yahoo-deal/
https://web2innovations.com/money/2008/02/04/google%e2%80%99s-chief-legal-officer-vs-microsoft%e2%80%99s-general-counsel/
https://web2innovations.com/money/2008/02/01/yes-we-were-right-yahoo-was-seriously-undervalued-microsoft-offers-446b-for-the-company-a-62-premium-over-their-value-from-yesterday/
http://www.techmeme.com/080201/p78#a080201p78
http://www.mercurynews.com/ci_8149194
http://www.businessweek.com/technology/content/feb2008/tc2008021_885192.htm?chan=rss_topStories_ssi_5
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/02/AR2008020200568.html
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/02/MN8OUQGNB.DTL&type=tech
http://kara.allthingsd.com/20080201/microsoft-to-yahoo-two-days-to-respond-or-else/
http://www.alleyinsider.com/2008/02/hold-everything-we-may-get-another-yhoo-bidder.html
http://www.techcrunch.com/2008/02/01/what-would-a-combined-microsoft-yahoo-look-like/
http://www.techcrunch.com/2008/02/01/ballmers-internal-e-mail-to-the-troops-explaining-the-yahoo-acquisition/
http://www.techcrunch.com/2008/02/02/news-corp-scrambles-to-bid-for-yahoo/
http://www.alleyinsider.com/2008/02/microsoft-yahoo-combined-financials.html
https://web2innovations.com/money/2008/02/08/one-after-another-the-potential-competitive-bidders-for-yahoo-drop-off-is-yahoo-going-to-surrender-to-microsoft/
http://www.informationweek.com/news/showArticle.jhtml?articleID=206107168
http://mashable.com/2008/02/10/yahoo-aol-merger/
http://www.techcrunch.com/2008/02/10/wait-yahoo-and-aol-i-was-looking-forward-to-something-moreintelligent/
http://www.techcrunch.com/2008/02/09/microsofts-80-billion-and-growing-yahoo-headache/
https://web2innovations.com/money/2008/02/09/end-of-speculations-yahoo-rejected-microsoft%e2%80%99s-offer

Yahoo’s official response to Microsoft’s offer: NO!

After we reported the strong NO of Yahoo! to Microsoft over the weekend (Saturday) here is the official response of the Yahoo!’s board of directors.

Yahoo! Board of Directors Says Microsoft’s Proposal Substantially Undervalues Yahoo!

SUNNYVALE, Calif., Feb 11, 2008 — Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet company, today said the Yahoo! Board of Directors has carefully reviewed Microsoft’s unsolicited proposal with Yahoo!’s management team and financial and legal advisors and has unanimously concluded that the proposal is not in the best interests of Yahoo! and our stockholders.

After careful evaluation, the Board believes that Microsoft’s proposal substantially undervalues Yahoo! including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments. The Board of Directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximize value for all stockholders.

Goldman, Sachs & Co., Lehman Brothers and Moelis & Company are acting as financial advisors to Yahoo!. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor to Yahoo!, and Munger Tolles & Olson LLP is acting as counsel to the outside directors of Yahoo!.

About Yahoo! Inc.

Yahoo! Inc. is a leading global Internet brand and one of the most trafficked Internet destinations worldwide. Yahoo! is focused on powering its communities of users, advertisers, publishers, and developers by creating indispensable experiences built on trust. Yahoo! is headquartered in Sunnyvale, California. For more information, visit pressroom.yahoo.com.

Yahoo! and the Yahoo! logos are trademarks and/or registered trademarks of Yahoo! Inc. All other names are trademarks and/or registered trademarks of their respective owners.

Meanwhile speculations and rumors about potential major merger between Yahoo! and AOL emerged today. This appears to us to be more as incentive for Microsoft to increase its offer for Yahoo! rather than anything real behind. We see little to no synergies between Yahoo! and AOL, aside a few such as instant messaging or the combined eyeballs and the potential deal does not address the major problem of Yahoo!, which is Google.

More

http://money.cnn.com/2008/02/09/magazines/fortune/yahoo_rejects_bid_report.fortune/?postversion=2008020914
http://www.ft.com/cms/s/0/fffc1006-d5e8-11dc-bbb2-0000779fd2ac.html?nclick_check=1
http://blogs.barrons.com/techtraderdaily/2008/02/05/yahoo-the-five-scenario-analysis/
http://www.techcrunch.com/2008/02/08/yahoo-board-to-determine-fate-of-company-today/
https://web2innovations.com/money/2008/02/02/is-google-going-to-be-the-winner-from-the-microsoft-yahoo-deal/
https://web2innovations.com/money/2008/02/04/google%e2%80%99s-chief-legal-officer-vs-microsoft%e2%80%99s-general-counsel/
https://web2innovations.com/money/2008/02/01/yes-we-were-right-yahoo-was-seriously-undervalued-microsoft-offers-446b-for-the-company-a-62-premium-over-their-value-from-yesterday/
http://www.techmeme.com/080201/p78#a080201p78
http://www.mercurynews.com/ci_8149194
http://www.businessweek.com/technology/content/feb2008/tc2008021_885192.htm?chan=rss_topStories_ssi_5
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/02/AR2008020200568.html
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/02/MN8OUQGNB.DTL&type=tech
http://kara.allthingsd.com/20080201/microsoft-to-yahoo-two-days-to-respond-or-else/
http://www.alleyinsider.com/2008/02/hold-everything-we-may-get-another-yhoo-bidder.html
http://www.techcrunch.com/2008/02/01/what-would-a-combined-microsoft-yahoo-look-like/
http://www.techcrunch.com/2008/02/01/ballmers-internal-e-mail-to-the-troops-explaining-the-yahoo-acquisition/
http://www.techcrunch.com/2008/02/02/news-corp-scrambles-to-bid-for-yahoo/
http://www.alleyinsider.com/2008/02/microsoft-yahoo-combined-financials.html
https://web2innovations.com/money/2008/02/08/one-after-another-the-potential-competitive-bidders-for-yahoo-drop-off-is-yahoo-going-to-surrender-to-microsoft/
http://www.informationweek.com/news/showArticle.jhtml?articleID=206107168
http://mashable.com/2008/02/10/yahoo-aol-merger/
http://www.techcrunch.com/2008/02/10/wait-yahoo-and-aol-i-was-looking-forward-to-something-moreintelligent/
http://www.techcrunch.com/2008/02/09/microsofts-80-billion-and-growing-yahoo-headache/
https://web2innovations.com/money/2008/02/09/end-of-speculations-yahoo-rejected-microsoft%e2%80%99s-offer

End of speculations: Yahoo rejected Microsoft’s offer

Internet giant Yahoo’s board has decided to reject Microsoft’s takeover bid, saying its 44.6 billion dollar offer “massively undervalues” Yahoo, the Wall Street Journal reported earlier today.

Yahoo’s board also believes the Microsoft offer, at 31 dollars per share, does not account for risks facing Yahoo if it pursues a deal that might be ultimately blocked by government regulators.

“Yahoo’s board believes that Microsoft’s is trying to take advantage of the recent weakness in the company’s share price to ‘steal’ the company,” the board further said.

“Yahoo’s board appears to be betting that Microsoft doesn’t want to ‘go hostile’ and try to acquire the company against the wishes of management and the board,” it also said.

Reports today lacked some facts, but they are not totally off mark. A couple of days ago we were researching online for information and commentaries on the scenarios most possible for the outcome of the Microsoft/Yahoo deal and Citigroup’s Mark Mahaney has speculated with several possible roads for Yahoo to take. Aside other speculative scenarios he played with 40% (the highest) weight was given for the chance Yahoo rejecting the Microsoft’s offer with the only mission to have the offer increased with a few dollars per share, which according to him is the most likely outcome. He was right but is he also right for the reason Yahoo is today rejecting the Microsoft’s bid.

Is there any chance for Microsoft to increase its offer?

On February 1 Microsoft unveiled its 44.6 billion dollar offer to take over Yahoo, in an effort to merge the world’s biggest software company with a major Internet player to take on search and advertising juggernaut Google.

Microsoft proposed 31 dollars per share to Yahoo’s board, a 62 percent premium above its closing price the previous day.

Microsoft said a combination of the companies would lead to cost savings of a billion dollars per year.

But Yahoo chief executive Jerry Yang sent a message to employees on Wednesday, assuring them the firm’s leaders were exploring ways to avoid a Microsoft takeover.

“Our board is thoughtfully evaluating a wide range of potential strategic alternatives in what is a complex and evolving landscape,” Yang wrote in the email.

“What’s become clear in the past few days is how much people care about this company. I’ve heard from many of you, and from other friends and colleagues from around Silicon Valley and across the globe, that we need to do what’s best for Yahoo and our shareholders.”

Google earlier condemned Microsoft’s effort as an attack on the very independence of the Internet.

“Microsoft’s hostile bid for Yahoo raises troubling questions,” said David Drummond, Google’s senior vice president for corporate development and chief legal officer, in a statement Sunday.

“This is about more than simply a financial transaction, one company taking over another. It’s about preserving the underlying principles of the Internet: openness and innovation.”

Update: A few people asked us why the logo of Microsoft/Google appears on the story and not a combined one of Microsoft/Yahoo? Because it is all about the battle between Microsoft and Google and Yahoo! appears to be an instrument. Congrats to Yahoo! though for firmly opposing the MS’s hostile bid!

 

More

http://money.cnn.com/2008/02/09/magazines/fortune/yahoo_rejects_bid_report.fortune/?postversion=2008020914
http://www.ft.com/cms/s/0/fffc1006-d5e8-11dc-bbb2-0000779fd2ac.html?nclick_check=1
http://blogs.barrons.com/techtraderdaily/2008/02/05/yahoo-the-five-scenario-analysis/
http://www.techcrunch.com/2008/02/08/yahoo-board-to-determine-fate-of-company-today/
https://web2innovations.com/money/2008/02/02/is-google-going-to-be-the-winner-from-the-microsoft-yahoo-deal/
https://web2innovations.com/money/2008/02/04/google%e2%80%99s-chief-legal-officer-vs-microsoft%e2%80%99s-general-counsel/
https://web2innovations.com/money/2008/02/01/yes-we-were-right-yahoo-was-seriously-undervalued-microsoft-offers-446b-for-the-company-a-62-premium-over-their-value-from-yesterday/
http://www.techmeme.com/080201/p78#a080201p78
http://www.mercurynews.com/ci_8149194
http://www.businessweek.com/technology/content/feb2008/tc2008021_885192.htm?chan=rss_topStories_ssi_5
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/02/AR2008020200568.html
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/02/MN8OUQGNB.DTL&type=tech
http://kara.allthingsd.com/20080201/microsoft-to-yahoo-two-days-to-respond-or-else/
http://www.alleyinsider.com/2008/02/hold-everything-we-may-get-another-yhoo-bidder.html
http://www.techcrunch.com/2008/02/01/what-would-a-combined-microsoft-yahoo-look-like/
http://www.techcrunch.com/2008/02/01/ballmers-internal-e-mail-to-the-troops-explaining-the-yahoo-acquisition/
http://www.techcrunch.com/2008/02/02/news-corp-scrambles-to-bid-for-yahoo/
http://www.alleyinsider.com/2008/02/microsoft-yahoo-combined-financials.html
https://web2innovations.com/money/2008/02/08/one-after-another-the-potential-competitive-bidders-for-yahoo-drop-off-is-yahoo-going-to-surrender-to-microsoft/
http://www.informationweek.com/news/showArticle.jhtml?articleID=206107168


 

One after another the potential competitive bidders for Yahoo drop off; is Yahoo going to surrender to Microsoft?

A few days ago we were trying to analyze who is going to eventually make a counter offer to match or outbid the Microsoft’s $46B offer for Yahoo!.

By that time multiple sources were reporting counter offers are in preparation by competitive bidders trying to snatch Yahoo! before Microsoft does it. We then exclude Google from the list of potential bidders for Yahoo! because some experts cited a 75 percent market share in the paid-search advertising market worldwide if Google/Yahoo deal happens and therefore Google is prevented by antitrust laws from buying Yahoo.

Another rumor was that a big private equity firm from New York is going to enter the bidding war for Yahoo!. No more news for that mystical white knight from New York has ever appeared publicly, so we put that aside. 

Another potential bidder being rumored on a few blogs was the New York-based Quadrangle Partners. Yahoo’s former president, Dan Rosensweig recently joined the firm to open the Silicon Valley office and Quadrangle also has deep media expertise. Yahoo! is after all more like a major media company with Internet nuance rather than pure technology company like, for example, Google.

Nothing happened here and we can clearly erase that bidder from the list too.

Other sources were reporting that News Corp is also frantically trying to put together a competing bid, with the help of private equity firms. This makes sense, given News Corp’s previous interest in trading MySpace for a big Yahoo equity stake. News Corp can’t afford to do the whole deal, but it could certainly provide some funding in exchange for some equity.

Nothing happened here too so we do assume News Corp has given up to fight for Yahoo! – Microsoft has simply put the price tag too high and is effectively preventing other players from offering anything even nearly close to their bid.

Today we learn that Softbank, the Japanese telecommunications and internet group, yesterday said it had no intention of selling its 41 per cent stake in Yahoo Japan after Microsoft’s bid for Yahoo. They also stated they have no intention of selling our Yahoo Japan stake. Mr. Masayoshi Son also said that Softbank, which owns 3.9 per cent of Yahoo, had no plans to take part in a counter-bid for the US company, which owns 33 per cent of Yahoo Japan.

Japan, by the way, is one of the few markets in which Yahoo remains the dominant search engine. Yahoo Japan also operates the country’s leading auction site Ebay.

Clearly Softbank is out of the game too. Anyone else? We hear and read nobody is proposing any counter bid for Yahoo!, so we have only Microsoft left in the game. A few days ago Citigroup’s Mark Mahaney has speculated with several possible roads for Yahoo to take. Aside other speculative scenarios he played with 40% (the highest) weight was given for the chance Yahoo rejecting the Microsoft’s offer with the only mission to have the offer increased with a few dollars per share, which according to him is the most likely outcome.

We have read over a few blogs that Yahoo has scheduled a special board of directors meeting on Friday, which we guess is to finally decide on what the company’s course is going to be. After a though week of dramatic events and speculations, it’s clear that no one is going to step in with a competing acquisition so we are getting nearer to witness a major deal between Microsoft and Yahoo!.  We guess we all learn more in the next few days.

Update: A few people asked us why the logo of Microsoft/Google appears on the story and not a combined one of Microsoft/Yahoo? Because it is all about the battle between Microsoft and Google and Yahoo! appears to be an instrument. Congrats to Yahoo! though for firmly opposing the MS’s hostile bid!

 

More

http://www.ft.com/cms/s/0/fffc1006-d5e8-11dc-bbb2-0000779fd2ac.html?nclick_check=1
http://blogs.barrons.com/techtraderdaily/2008/02/05/yahoo-the-five-scenario-analysis/
http://www.techcrunch.com/2008/02/08/yahoo-board-to-determine-fate-of-company-today/
https://web2innovations.com/money/2008/02/02/is-google-going-to-be-the-winner-from-the-microsoft-yahoo-deal/
https://web2innovations.com/money/2008/02/04/google%e2%80%99s-chief-legal-officer-vs-microsoft%e2%80%99s-general-counsel/
https://web2innovations.com/money/2008/02/01/yes-we-were-right-yahoo-was-seriously-undervalued-microsoft-offers-446b-for-the-company-a-62-premium-over-their-value-from-yesterday/
http://www.techmeme.com/080201/p78#a080201p78
http://www.mercurynews.com/ci_8149194
http://www.businessweek.com/technology/content/feb2008/tc2008021_885192.htm?chan=rss_topStories_ssi_5
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/02/AR2008020200568.html
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/02/MN8OUQGNB.DTL&type=tech
http://kara.allthingsd.com/20080201/microsoft-to-yahoo-two-days-to-respond-or-else/
http://www.alleyinsider.com/2008/02/hold-everything-we-may-get-another-yhoo-bidder.html
http://www.techcrunch.com/2008/02/01/what-would-a-combined-microsoft-yahoo-look-like/
http://www.techcrunch.com/2008/02/01/ballmers-internal-e-mail-to-the-troops-explaining-the-yahoo-acquisition/
http://www.techcrunch.com/2008/02/02/news-corp-scrambles-to-bid-for-yahoo/
http://www.alleyinsider.com/2008/02/microsoft-yahoo-combined-financials.html

An acquisition within the 3-D modeling space

While everybody is waiting to see what is going to happen between Microsoft and Yahoo, the first made yet another technology acquisition – bought the 3D modeling and animation software company called Caligari to further improve its Virtual Earth. Caligari appears to be not the typical web 2.0 company one might think of at first reading – they have been established back in 1986. Terms, typically for Microsoft’s small buys, were not disclosed.

Roman Ormandy, the CEO of Caligari (he has personally very interesting story which you can ready below), stated in a post yesterday in his company’s online forum that his staff as well as the people tasked with building Virtual Earth since the start are committed to a vision ensuring a “long-term commitment to the 3D Web.”

Caligari offers a range of products for 3D enthusiasts and illustrators, researchers and design engineers. All of Caligari’s products feature an immersive real-time interface that allows users to intuitively and directly manipulate objects in a fully-rendered 3D space, thus enhancing and accelerating the overall design process.

The motivation behind this deal seems quite clear – competing with Google and its popular Google Earth/Maps developments.

Interesting fact to note is that in a similar move Google has acquired a similar company back in 2006 called SketchUp, which is also 3-D modeling software that is now used to place 3-D objects inside Google Earth.

The company is based in Mountain View, CA.

The company was founded in 1986 by Roman Ormandy. A prototype 3D video animation package for the Amiga Computer, which led to the incorporation of Octree Software in 1986. From 1988 to 1992, Octree released several software packages including Caligari1, Caligari2, Caligari Broadcast, and Caligari 24. Caligari wanted to provide inexpensive yet professional industrial video and corporate presentation software. In 1993 Octree Software moved from New York to California and became known as Caligari Corporation. In 1994 trueSpace 1.0 was introduced on the Windows platform.

Interesting videos for trueSpace can be seen on YouTube.

More about Caligari Corporation

Founded in 1986, Caligari Corporation is one of the pioneers of 3D modeling and animation. Throughout our history, Caligari has focused on providing powerful, intuitive and affordable tools that enable users to communicate visually, whether the end product is a web page, a fully-rendered image, a 3D model or an interactive simulation. Today, we continue to drive innovation to the 3D authoring process in markets that range from design and engineering to biomedicine and entertainment. The release of trueSpace7 has opened new doors in 3D by providing our users with something that no other 3D company has ever offered: real-time collaborative authoring.

Caligari offers a range of products to satisfy everyone from 3D enthusiasts to illustrators, researchers and design engineers. All of Caligari’s products feature an immersive real-time interface that allows users to intuitively and directly manipulate objects in a fully-rendered 3D space, thus enhancing and accelerating the design process.

In January of 2006, after 20 years of uninterrupted development, Caligari released the 12th generation of its flagship product, trueSpace. Not only has Caligari enhanced the award-winning modeling, surfacing and rendering capabilities of trueSpace; we have revolutionized the way 3D content is created, communicated and shared with others. trueSpace7 is the only 3D authoring product on the market to offer all aspects of real-time design, modeling and animation within a virtual 3D space shared by remote participants over the broadband internet. trueSpace7’s easy-to-use authoring tools are seamlessly integrated into the underlying collaborative process. The trueSpace7 collaboration server enables multiple participants to connect to a shared 3D space to create and manipulate shared content in real-time.

Other products include gameSpace and iSpace. gameSpace offers game artists high-end 3D authoring capabilities at a low-end price. gameSpace provides all the tools game artists need for modeling, texturing, animating, UV mapping, and more; and comes with the built-in ability to export content to multiple game engine formats.

iSpace is an innovative 3D web graphics solution that allows web developers to easily create stunning 3D web pages in HTML and Macromedia Flash format. With iSpace, web designers can import existing 2D HTML pages, convert them into 3D and enhance their layout with easy-to-use styles and graphical elements such as buttons, lights, animations and 3D text. iSpace is also a complete assembly platform, allowing the user to combine .jpg, .gif, and Flash files in the same workspace to quickly and easily create integrated HTML outputs.

The Founder

Born in 1955 in Czechoslovakia, Roman Ormandy obtained an advanced degree in Computer science from Komensky University in Bratislava in 1980. He then undertook post-graduate studies in artificial intelligence, psychology and linguistics at Charles University in Prague. In 1981, he received a research fellowship in the University’s Laboratory for Computational Linguistics.

Later that same year, Ormandy defected to Italy while on “holiday” in Yugoslavia. He spent several months in an Italian refugee camps while his wife, Bibiana, was still in Czechoslovakia. A year later Ormandy was joined in America by Bibiana and their 18-month old son, whom he had never seen, after their dramatic flight across the Yugoslavian border.

Ormandy’s first job in the United States was in a suitcase factory making cases for Apple IIC computers. He then worked in the computer lab of Lexington School for the deaf while attending the graduate program in Computer Science at City University in New York. In 1983, he landed a job programming IBM graphics software for educational applications for Classroom Consortia Media. While here, he authored two educational applications and BrainChild, a software game design for the IBM PC Jr. In 1985, Ormandy became a computer graphics consultant for Edwin Schlossberg Inc., designing interactive laser disc applications and other components of the information system for Manhattans’ World Financial Center.

Ormandy began working on the prototype for a 3D video animation package for the Amiga computer in 1985. The prototype generated intense interest following a preview of Siggraph ’86 Conference. In the fall of 1986, Ormandy incorporated Octree Software, initially working part-time to get his new company off the ground. In 1988 he switched to full-time with the introduction of Caligari, aimed at the industrial video, design and corporate presentation markets. Ormandy grew very interested in creating a more realistic user interface to optimize human physiology and inspired by the belief that creativity would be radically increased if the designer was given direct contact with 3D objects in the workspace.

Two years later, Caligari Broadcast was introduced, offering professional quality 3D animation at a fraction of the cost of comparable systems. Because of its real-time, direct manipulation of objects in real-life perspective, Caligari allowed the computer user to transcend the 2D environment and explore new creative territory of its own.

In April, 1994, Caligari further revolutionized the 3D market by introducing trueSpace 1.0 for Windows, a powerful, usable 3D modeling, rendering and animation package that combined real-time direct manipulation of objects and professional-quality output with an easy-to-learn, icon-based interface. trueSpace’s affordable price, seamlessly integrated organic modeling, photorealistic ray-tracing, broadcast-quality animation and unprecedented ease-of-creation modeling tools created a phenomenon of response in the adolescent 3D market. Its highly usable VR-style immersive interface encouraged experimentation, stimulated creativity and gave users the ability to create stunning renderings and animation easily.

Today the award-winning trueSpace legacy continues unbroken, with the latest version, trueSpace7, still based on the same principles of making professional power available to users while keeping the software easy to use and affordable. Caligari has also expanded the product range to include gameSpace, which allows users to create 3D content for games, and truePlace, an on-line meeting place for social networking, distance learning, and collaboration.

Roman Ormandy and Caligari’s introduction of trueSpace helped redefine how people can create and communicate in media. He believes one of the most far-reaching possibilities is the creation of a new form of knowledge repository based not on symbols, but living, breathing 3D objects encapsulating knowledge into code and shared in collaborative on-line environments.

More

http://www.caligari.com/
http://forums1.caligari.com/truespace/showthread.php?p=59557#post59557
http://mashable.com/2008/02/07/microsoft-acquires-caligari-3d/
http://virtualearth.spaces.live.com/blog/cns!2BBC66E99FDCDB98!11432.entry
http://www.techcrunch.com/2008/02/07/microsoft-buys-caligari-to-pimp-up-virtual-earth/
http://www.caligari.com/Gallery/Animations/2007/jan/anim/2912.wmv
http://sketchup.google.com/
http://www.engadget.com/2007/03/07/playstation-home-revealed/
http://redmondspy.blogspot.com/2008/02/microsoft-kauft-3d-experten-caligari.html
http://en.wikipedia.org/wiki/TrueSpace
http://www.youtube.com/results?search_type=search_videos&search_query=truespace&search_sort=&search_category=0&page=4
http://lunadude.com/rsrc_trueSpace.htm