Archive for: acquisition
Several hundred thousand palates can’t be wrong. With this, Tsavo Media announced that it has acquired Open Source Food (OSF) from Egg & Co., a venture of Tokyo-based web producer Jon Anthony Yongfook Cockle.
With the acquisition, OSF has been renamed NibbleDish and will join Tsavo’s new network of content sites for consumers, currently in development.
Yongfook will remain with the company. A serial web-app builder, Yongfook is also responsible for the popular lifestreaming software Sweetcron and analytics tool Gumtrail. From his base in Tokyo, he works with various Japanese companies as an outside consultant, building web apps and overseeing production.
Financial details of the acquisition were not disclosed.
Are Live Nation and Ticketmaster planning to merge? According to a Wall Street Journal report emerging Tuesday evening, the answer is yes. The paper noted that the pair are “close to a merger,” citing “people familiar with the matter”. The tie-up would effectively combine the largest live concert conglomerate with the biggest ticketing company, resulting in a massive conglomerate. The deal, expected to be cashless, could be announced in a matter of weeks, according to the report.
Sounds like a big deal, though regulators could hold up the marriage. That is no small consideration, especially in light of the massive delays experienced by recent newlyweds Sirius Satellite and XM Satellite Radio. Those partners required both the approval of the US Department of Justice and Federal Communications Commission (FCC), though the Justice approval on its own was quite lengthy.
Other issues are also worth noting. Live Nation just launched a homegrown ticketing service; a merger could effectively nix that attempt. Moreover, it remains unclear which party is actually acquiring, and where the top executives would land.
I have been receiving a lot of emails lately from webmasters using Technorati Media as their ad network. Techn0rati is a blog search engine which launched an ad network back in June last year. At the time it was very big news, because Technorati was losing its way a little bit and also traffic at the same time. Thus, they launched Technorati Media which would open up a new revenues stream. At the same time Technorati purchased AdEngage which would be the backbone of the Technorati Media platform. AdEngage is a basic self service advertising platform which deals in CPC display advertising.
Anyways, Technorati Media launched their ad network with a lot of media attention and were offering some amazing CPM rates, in which was going to entice a huge amount of small and medium blogs. However, now since the economy is in a bit of a decline ad revenues have dropped but this is nowhere near the amount Technorati Media’s CPM rates have dropped.
I’m not too sure what Technorati Media is trying to achieve because using the current model they have for advertising, I’m sure they will be in a huge amount of trouble come the end of 2009. The economic crisis is not going to be fixed over night and it will take a couple of years to sort itself out, so Technorati please think of another advertising solution. CPC campaigns are great for advertisers because they get an instant return on investment for their money, but CPM is great for publishers because they can see a return on their investment. Technorati Media is struggling even to sell CPC campaigns even with some great sites on board, so this spells big trouble!
Disclosure: Im CEO of Adphilia which is a site representation company.
There is another music streaming service that we didn’t mention in our Top 10 free music streaming services and that is Spiral Frog. Spiral Frog is an ad-supported music download service which has had a huge amount of hype since launch.
Today it has been reported that Spiral Frog might be in a bit of trouble and heading towards the deadpool. These reports come from executives within the struggling company. Why is Spiral Frog in trouble? When launching Spiral Frog was in a growing advertising market in which was still yielding good CPM (cost per 1000 ads) rates, however now in the economic downturn these rates are quickly dropping. Therefore, companies need to keep increasing pageviews and presence to stay ahead of the curve. Spiral Frog has been losing a lot of traffic of late and this combined with the big licensing fees they had to pay upfront for major label catalogues means their in a lot of trouble.
There are only a couple of options that will save Spiral Frog. Firstly, a miracle could happen and they could turn around the traffic and the revenues, but that’s not going to happen. Secondly, they could get more funding and sell part of the shares, but they are running out of shares so I don’t think this would happen either. Finally, the only real option is for someone to step in and purchase the company just before they run out of money and get a bargain basement price.
To be fair in the past Spiral Frog has had a lot of issues and they have been in trouble a couple of times. This is probably what has lead to Spiral Frog getting a lot of media attention. I think Spiral Frog will be acquired by the end of 2009, its the only decent option of the company.
A couple of months ago CD Baby, one of the largest online sellers of music for indie bands, was acquired by Disc Makers. At that time the price was not disclosed, but now the founder Derek Sivers has disclosed to VentureVoice that the sale price was $22 million. Sivers owned 100 percent of the company he founded in 1998.
A lot of people are talking about a good winfall for Sivers, but Im really too sure what numbers they are looking at. Cd Baby published a report stating their sales from January to July 07, which made up of $21m in revenues, thus by the end of the year Im sure they would have around $50m in revenues. From what I have seen of web based enterprise acquisitions lately, they are normally around 5x revenues, thus placing Cd Baby around the $250m mark. Therefore selling at $22m is just a crazy cheap price and not a winfall!
Digg has to be one of the biggest web properties currently on the internet, with one of the most loyal communities. However, they seem to be able to grow the community, add on new features, turnover good revenue figures and get millions of pageviews, but they simply can’t sell their company to anyone!
Digg has been trying to sell for the last 6 months and yet no one is actually biting. They currently have a Microsoft as an investor and running their ad campaigns, plus they have been in talks with Google for an acquisition, but how come they cant finalise anything?
Is it because the $300 million price tag they are after, it just too out of reach? Is it because the big conglomerates aren’t too sure how they are going to fit the Digg technology into their search engines or portals? Is it because Digg has such a strong community base, any acquisition will just kill the site?
Im hoping to find out why the average person think Digg cant sell.
Buzznet have been definitely on a buying spree lately, especially after obtaining $25 million in funding from companies such as Universal. Previously, Buzznet purchased Stereogum, Idolator, Qloud and started Videogum. This time they have purchased another music site, Absolutepunk.net.
Personally, im not too sure about the approach of Buzznet. Buzznet are trying to position themselves as the one stop music destination. Instead of maximising their own site first, they have received funding and are trying to buy marketshare. Why not simply find a better monetization strategy then just Google Adsense!! Im sure Buzznet will not be receiving a high click through rate with Adsense, so why not try to find a premium CPM based network instead?
Well im sure that everyone has already heard, but if not Microsoft has today withdrawn their proposal to acquire Yahoo! Yahoo have issued a press release and Roy Bostock, Chairman of Yahoo! Inc., issued the following statement today in response to Microsoft Corporation’s announcement that it has withdrawn its proposal to acquire Yahoo!:
“We remain focused on maximizing shareholder value and pursuing strategic opportunities that position Yahoo! for success and leadership in its markets. From the beginning of this process, our independent board and our management have been steadfast in our belief that Microsoft’s offer undervalued the company and we are pleased that so many of our shareholders joined us in expressing that view. Yahoo! is profitable, growing, and executing well on its strategic plan to capture the large opportunities in the relatively young online advertising market. Our solid results for the first quarter of 2008 and increased full year 2008 operating cash flow outlook reflect the progress the company is making. Today, Yahoo! has:
– a refined strategic focus to drive enhanced volume and yield;
– reorganized to focus its efforts on its most promising products and services;
– invested in innovations designed to revolutionize display advertising and facilitate closing the competitive gap in search; and
– enhanced expense and resource management to support improved profitability.”
Here are also some of the thoughts from around the web:
AOL has acquired Sphere. Sphere is a technology that increases the relevant articles, blog posts and content to websites, via their widget. Sphere will operate as a wholly owned subsidiary of AOL, the company said in a statement, part of the programming division led by Executive Vice President Bill Wilson. AOL–along with Newsweek, Time, Reuters, GigaOM, The Wall Street Journal, and other sites–already was a Sphere partner.
This is a very interesting acquisition, because the Sphere technology can be very useful for the larger conglomerates and because Google and Yahoo already have this kind of technology, that only left AOL and possibly Amazon left. The deal im sure will see more AOL content floating across it, while AOL will also be using the technology in amongst their services and finally, Platform-A will have some more ad inventory to sell.
The soap opera that is Microsoft bid for Yahoo is continuing. Firstly it is reported by the WSJ that Yahoo is closing in on a merger with AOL. If the deal goes through, the two companies would combine their web and internet based services. Yahoo! would reportedly use some of the revenue from a merger with Time Warner/AOL to buy back a whole bunch of stock which woudl help the company fend off any further unwanted advances from Microsoft.
While at the same time it is reported that Yahoo has begun testing out Search Ads from Google. Then Microsoft hit back with the following statement about the search testing:
From Brad Smith, Microsoft’s General Counsel:
“Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.â€
Well, what can I see happening? I expect that AOL and Yahoo will potentially merge, but this it might happen in about 6 months time. In terms of search advertising between Google and Yahoo, im sure this cant continue because of the amount of marketshare they will have between them. Finally, Microsoft have no chance of purchasing Yahoo, I cant see it happening because Yahoo shareholders and directors would have already agreed if there was something that was going to happen.
More news from around the world.
Seesmic which claims to be the Twitter for video has just acquired Twhirl. Although Seesmic is still in Alpha this seems to be a good purchase on the outside. Twhirl is one of the most popular Adobe AIR apps and allows users to post to their Twitter, Jaiku and Pownce accounts. This is the first acquisition ever of a pure AIR application and im sure it wont be the last.
For other coverage on this acquisition take a look at BlogHerald and Mashable. Im also interested to see what Arrington has to say about the acquisition, because he is an investor in Seesmic, however Mark Hendrickson did the review for Techcrunch of the story.
paidContent.org have reported that Buzznet has raised $25 million in a third round of funding. Additionally, it was learned that Universal Music-owned Interscope has invested a few million in it. It hasnt been confirmed who the other investors are, but im guessing some of the funding would have come from previous investors such as Redpoint Ventures and Anthem Venture Partners.
Also, recently, investors Bob Pittman, of the Pilot Group and Sling Media’s Jason Hirschhorn traded their equity stakes in the influential indie music blog Stereogum for an ownership percentage of BuzzNet. Thus, it has been confirmed that Stereogum is now fully owned by Buzznet. Today it has also be reported that Buzznet has now acquired Qloud. Has this new $25 million gone to the acquisition or has it been raised to make Buzznet more like mainstream media.
