Seth Gilbert, 06-25-2008
At times during the past couple years Internet video sites have seemed like the fad du jour, like another bubble of inflated expectations waiting to burst. Every few weeks there seemed to be another monstrous financing. $10m invested here. $20m gambled there. Even a pledged $30+ million from time to time. Super Deluxe. 60 Frames. Joost. Veoh. Metacafe. Crackle. Revver. Daily Motion. Funny or Die. Hulu. This Just In. Deca.TV – Every week a new company name to add to the lexicon and the watch list. It was all part of the “next new thing.” The big gamble.
Like any new market, especially one with big opportunity, a certain amount of this speculation is understandable. With billion dollar market opportunity, there is invariably going to be a lot of competition chasing the same trophy. And unequivocally, all these sites were, and are, chasing just that same predictable future – the migration of television and video programming to a time-shifted, place-shifted, long-tail-wagging world of Internet distribution.
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Seth Gilbert, 06-23-2008
Through nearly the first 180 days, 2008 has been a busy year for M&A activity . Today, adding to the year’s tally, movie ticketing service Fandango announced the acquisition of Movies.com from Disney.
Under the prior name mrshowbiz.com, Movies.com was launched in 2000 to provide movie summaries, facts and celebrity info. In May, the site drew 1.9m unique visitors.
Fandango, which was bought by Comcast in April 2007, provides online ticket sales for about 15,000 movie screens around the U.S.. The site drew approximately 6.3m unique visitors in May.
The company currently splits its revenue between advertising income and Click to Read More
Seth Gilbert, 06-20-2008
When Microsoft set out to buy Yahoo, they acknowledged part of the interest was Yahoo’s talented staff. Now out of it and sitting on the sidelines, seeing a shareholder revolt, and masses of that talent walking out, some Microsoft execs might be singing along to Garth Brooks “Unanswered Prayers” and counting blessings for the deal that wasn’t.
Over the past few days, a host of high profile Yahoo execs have pulled the ripcord, hit the eject button, or to mix metaphors even more, exited stage left.
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Seth Gilbert, 06-12-2008
Not that there was any doubt, but just in case anyone was thinking a relationship could be rekindled, Yahoo announced today that any discussions with Microsoft over merger, or other relationship, are done. Now both sides have said it… more than once.
Yahoo said in a press release that following numerous meetings, talks were “concluded.” Microsoft was not interested in pursuing an acquisition for all of Yahoo and Yahoo’s board has determined that the sale of just their search business would not be in their best interests.
Microsoft affirmed the statement in a press release of their owning stating, “As stated on May 3rd and reiterated on May 18th Microsoft was not interested in rebidding for all of Yahoo!. Our alternative transaction remains available for discussion.”
Moving forward, Yahoo will instead supplement income and try to boost their search business by working with Google. In a separate announcement, it was confirmed that the two have reached a non-exclusive search deal that could be worth an extra $250 to $400m in cash flow.
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Seth Gilbert, 06-11-2008
Together with AOL, HBO tried to build a website around comedy video in February of 2007. Like an awkward TV pilot that couldn’t find its groove, “This Just In” was shuttered by August. Now, in a second go round, the Time Warner cable channel will play the part of investor. HBO is committing an undisclosed amount of capital to buy a stake guessed to be about 10 percent of internet comedy shop FunnyorDie.
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Seth Gilbert, 06-10-2008
Traditionally, end-user video and film distribution services (movie theaters, TV channels) competed with each other by geography or a unique programming schedule. As a viewer you watched what was on local channels, or you tuned in to one place that was showing the programs you were itching to see. The internet video world is a different animal but, still in its early stages, it remains something of an experimental lab; especially with regard to professional Hollywood content.
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Seth Gilbert, 06-4-2008
Corporate takeover battles are full of strategic shifts, risks and gambles. Poison Pills, Golden Parachutes, Offers and Counter Offers. It’s a brinkmanship game. Intrigue and misdirection are to be expected. Given that, absent all the evidence, it can be difficult to judge the good from the bad when looking in as an outsider. One thing that’s not hard to judge is the explicit opinion of expert consultants. And when one calls your plans “nuts?” That’s not good, far from it. Still that’s exactly the boiling cauldron of hot water Yahoo’s board of directors and CEO Jerry Yang have found themselves in this week.
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