Seth Gilbert, 02-21-2008
Bracing for the possibility of further economic downturn and to reduce exposure to related volatility in the ad markets, Anglo Dutch media powerhouse Reed Elsevier announced a surprise plan to sell off their publishing arm, Reed Business Information (RBI), Thursday. The group is home to a number of high profile online/offline specialty news outlets including the entertainment industry staple Variety and the publishing trade magazine Publisher’s Weekly.
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Seth Gilbert, 02-15-2008
The devil is in the details, they say. That’s especially true with business rumors. More often than not they start with a kernel of truth and then distort around the facts. Last week, the rumor was Internet video site Revver was gasping for last breaths and on the verge of sale for a fraction of the $12.7m so far invested. Speculation was that it might be had for as little as $500k plus the assumption of debt. Now, correcting prior reports, Newteevee is reporting the web video company did in fact sell but for a far less desperate price than originally speculated.
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Seth Gilbert, 02-14-2008
It’s about the price… News Corp is in… News Corp won’t play… Microsoft will destroy Yahoo…Yahoo isn’t worth more than what’s offered.
There’s been so much commentary on the proposed mega merger, it borders on overwhelming. Anyone with an inkling of insight on tech and an opinion is weighing in while we all wait for the next dose of fact to supplant innuendo. While I wait, one wonder keeps hitting me: is Microsoft’s collective head in the cloud?
That phrasing may sound odd but it’s not a typo. It is meant to be just one cloud – as in the so named concept of Cloud Computing.
As much as web traffic and advertising dominance make an approachable, and rational, near term justification for this deal. There’s also a longer term vision; something more in Microsoft’s strategic vision. Cloud computing, as esoteric as it sometimes seems, could be part of it. Research, sound bytes from the executives themselves and a deeper look into just what this vague concept of computing actually means seems to make for a logical argument:
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Seth Gilbert, 02-13-2008
One of the rumors floating around the potential merger of Microsoft and Yahoo is that News Corp. is in discussions to get involved. The idea, which started floating on blogs like Tech Crunch and Silicon Alley Insider late last night and since escalated to Wall Street Journal reporting, speculates that News Corp is considering rolling MySpace (and possible more of Fox Interactive Media’s assets) into Yahoo. In exchange, and along with cash paid to Yahoo, News Corp and possible private equity partners would take a substantial stake, as much as 30% of the combined property.
Anything is possible in the Wild West like fog of the Micro-Hoo scenario. News Corps opportunistic investigation certainly makes sense. Where I’m having a difficult time is forming an opinion as to whether such conversations have any shot at being fruitful. It’s not that Rupert Murdoch has explicitly said no to buying Yahoo (“We are definitely not going to make a bid for Yahoo”). Click to Read More
Seth Gilbert, 02-11-2008
The attempted acquisition of Yahoo is the big story but in smaller news Microsoft has fortified their mobile software efforts by acquiring Palo Alto based Danger Inc.
Danger is best known for developing T-Mobile’s Sidekick along with software and services that enhance multimedia and web functionality and cell phones. The company was founded by Andy Rubin who is now heading Google’s competitive Android mobile platform project.
Microsoft’s Robbie Bach, president of the Entertainment and Devices division, said in a statement that “the addition of Danger serves as a perfect complement to our existing software and services and also strengthens our dedication to improving mobile experiences centered around individuals and what they like.”
As recently as December, Danger was in the process of preparing to go public. Click to Read More
Seth Gilbert,
With advice from Goldman Sachs, Lehman Brothers and Moelis & Company, Yahoo has confirmed the rumors and officially rejected Microsoft’s proposal. Now, it’s back to Microsoft to counter, or escalate the possible takeover.
In a letter to Yahoo staff, which is reprinted below, CEO Jerry Yang explained their logic.
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Seth Gilbert, 02-9-2008
Just as the writer’s strike seems poised to end, another complex negotiation may be about to get even more intense. The Wall Street Journal is reporting Yahoo’s Board of Directors is set to reject Microsoft’s $44.6b takeover offer as soon as Monday.
According to the report which cites a “person familiar with the situation” as its source: Yahoo’s board has concluded from initial discussions that Microsoft’s $31 per share offer “massively undervalues” the company. They believe the offer is an opportunistic effort to take advantage of recent weakness in the stock market, and Yahoo’s stock price in particular.
In what may be a negotiating ploy aimed at raising the price, the Journal’s source notes that the company is unlikely to consider any offer below $40 a share. That would raise the deal value by more than $12b to more $56b.
If the report proves accurate, Yahoo’s decision will put Microsoft to a difficult decision. Click to Read More
