Articles of the Week
Why Google Wants Microhoo To Happen - Tech blogger Robert Scoble says that everyone has missed the key points about how a Microsoft-Yahoo merger would affect Google. Far from being afraid of a Microhoo, Google would welcome this merger with open arms. Indeed, Google’s recent claim that the merger is “troubling” is just delaying tactics, as “every month longer that this deal takes is tens of millions in Google’s pockets.”
Yahoo To Float Asian Assets? - Yahoo, in the wake of Microsoft’s unsolicited takeover bid, is considering ways to better monetize its investment in Alibaba and Yahoo Japan–the idea being to appease shareholders inclined to accept Microsoft’s offer.
Microsoft To Issue Debt For Yahoo Acquisition - Microsoft revealed it would finance a portion of its $44.6 billion offer for Yahoo. This would mark the first time in history that Microsoft would borrow money to fund an acquisition — if the deal goes through.
Integrating Ad Systems Key To Merger Success - The key to making a Microsoft-Yahoo deal work is to combine all or at least parts of the companies’ ad delivery systems as soon as possible. Otherwise, Google will be able to take advantage of the halt in progress.
Industry Moves: CNET’s M&A Head Lurie Appointed As New CFO - CNET (NSDQ: CNET) Networks, in the middle of a proxy fight for control of its board, has just announced Q407 earnings (which we’re covering separately), has appointed a new CFO: its lead M&A head Zander Lurie will be the new CFO, starting March 7. Current CFO George Mazzotta is resigning.
Chinese Authority Provides Leeway for Online Video Sharing Sites - At the end of 2007, China’s Ministry of Information Industry (MII) issued a law requiring online video sharing sites to have controlling interests owned by state enterprises.
Self-Promotion Site CornerWorld Offers $30 Million To Acquire Sway - CornerWorld, an online video site that caters to musicians, filmmakers, political candidates and other self-promoters, has said it intends to acquire social marketing company Sway Inc. for $30 million in cash and stock.
Burst To Launch CDKitchen Ad Network - Burst annouced the launch of a new ad network today, Online Media Daily has learned. The network will focus on all things food-related, and was built in partnership with Burlington, Mass.-based Burst Network’s food site, CDKitchen.com. The CDKitchen Cooking Network is made up of 30 food-focused Web sites drawing more than 4.3 million visitors and delivering more than 23.5 million page impressions monthly.
Newspapers Turn to Online Networks for Display Ads - Local newspaper websites are seeking safety in numbers and convenience, joining large networks for online display ads. These networks are proving to be a key part of online strategy for newspapers, which must build their display ad revenues to offset slowing growth in online classifieds.
Google-AOL: Bewkes: “Fine If They Were To Act’ On Selling Stake” -The future of Google’s (NSDQ: GOOG) five percent stake in the Time Warner (NYSE: TWX) unit, acquired for $1 billion as part of the search renewal, is one of the footnotes to any AOL discussion.
Analysts: Google Happily Out of Spectrum Race - Google has been dominating U.S. spectrum related headlines for months, the Web giant is bowing out of the auction. Analysts speculate that Google put up the required $4.6 billion for the “C” portion of spectrum that ensures the creation of an “open” broadband network for handset makers and software developers. Some industry watchers claim that that’s all Google really wanted–to see those auction rules put into place. After making the initial bid, it looks like Google’s off the hook; the company won’t be stuck shelling out billions to create a nationwide wireless network.
A YouTube For “How To” - Howcast, a New York City startup founded by former Googlers, wants to be the YouTube of “how to” videos. The Web site launches today with JetBlue as its first sponsor; it’s also announcing a fresh round of $8 million in series A financing, led by Tudor Investment Corp. Howcast isn’t just a Web site, it’s also a syndicated content provider. The company has its own YouTube channel and has other distribution deals in place with MySpace, Joost, ROO and on Verizon’s VCast phones, as well as FiOS TV. However, Howcast isn’t the only player in the “how to” space. The company faces competition from Expert Village, 5min, and Instructables, which uses step-by-step images more than video.
Google Apps Team Edition Emulates Social Networking Model - Google on Thursday plans to offer a new social version of its online Google Apps application suite. Google Apps Team Edition is more or less identical to the standard version of Google Apps in function; it differs in that it’s designed to spread virally and to encourage collaboration. Upon logging in to Google Apps Team Edition, a user can identify other Google Apps users in his or her organization and can easily invite colleagues to share documents and calendars. Google Apps, in other words, has gained the makings of a rudimentary social graph, as social network friend lists are called.
Time Warner To Divide AOL - AOL’s U.S. dial-up access and advertising businesses will finally be divided, according to Jeff Bewkes, Time Warner’s recently appointed CEO. During Time Warner’s fourth-quarter earnings call on Wednesday, Bewkes laid out his vision for the future of the company, including the possibility of spinning off its cable division.
Online Social Media Cheap Alternative In Face Of Recession - Faced with a looming recession, marketers should spend more on online social media as a cheap, efficient way to advertise during tougher economic times. So advises Forrester Research in a research note issued to clients Tuesday outlining strategies for interactive marketing in a recession.
IAB Best Practices Guidelines for Lead Gen Spark Criticism - The Interactive Advertising Bureau Thursday issued best practices guidelines for online lead generation, saying its recommendations will help the industry grow while building trust with consumers.
Earnings: Idearc Revs Slide 1.7 Percent On Print Weakness; Internet Up 19 Percent - Directory publisher Idearc announced Q4 revenues of $787 million, down 1.7 percent from $801 million in the prior year’s quarter. Net income fell 6.5 percent to $100 million ($.68 per share) from $107 million ($.73 per share).
AOL: Q4 Advertising By The Numbers; Growth Not Expected Until Q2 - AOL (NYSE: TWX) expects flat advertising revenue this quarter and Time Warner had to explain that during its earnings call, along with a lot of disquieting advertising numbers from 4Q07. Advertising revenues were up 10 percent year over year, to $620 million. Display advertising on AOL’s owned-and-operated network was up a mere 3 percent to $252 million. Third-party network revenue rose nearly 30 percent, to nearly $200 million. TWX invested $900 million in assembling Platform A last year; nearly half the growth in third-party advertising in Q4 came from acquisitions but but organic growth is strong.
AOL Acquires Affiliate Network to Boost ad Platform - AOL has acquired buy.at, a leading affiliate marketing network backed by VC house DFJ Esprit, reports TechCrunch UK. Financial terms of the deal were not disclosed, but well-placed sources say the deal is worth in the region of $150 million (£75 million). Although launched in the UK in 2002, buy.at now has a much bigger US operation, which is what attracted AOL’s interest. buy.at will now operate as a wholly-owned business unit of Advertising.com, part of AOL’s Platform-A organization, to which it added four other companies in the last year including Tacoda, AdTech, Third Screen Media and Quigo.
LoveFilm Buying Amazon Biz - Amazon.com has agreed to sell its European DVD rental business in the UK and Germany to LoveFilm International, a London-based online DVD rental services. LoveFilm has raised VC funding from Arts Alliance Media, Balderton Capital, Esprit Capital Partners and Index Ventures.
Earnings: Bankrate Q4 Revs Up 22 Percent; Buys InsureMe.com And Fee Disclosure For $87.85 Million - Financial info site Bankrate (NSDQ: RATE), considered to be something of a key bellwether given its reliance on the mortgage market, reported Q4 revenues of $25.2 million, a 22 percent year-over-year increase from $20.7 million. In addition to reporting earnings, the company announced two acquisitions after the bell: Insurance site InsureMe.com for up to $85 million including $20 million in potential earn-outs & Fee Disclosure, a site all about mortgage fees, for $2.85 million.
Microsoft Buys 3D Software Firm For Mapping - Microsoft (NSDQ: MSFT) buys Caligari, a developer of 3D modeling software, with an eye to use its technology for its Virtual Earth mapping.
Moms’ Social Networking Site MothersClick Acquires MothersGroups.com - San Francisco, CA-based MothersClick has acquired MothersGroups.com in the wake of launching its new portal of mom-centric and parenting websites.
