Internet Industry

Microsoft’s bid for Yahoo!

$45 Billion is the figure. Steve Ballmer’s offer, a “bear hug” in M&A parlance, was the first step. The letter ended with a mix of conviviality and veiled threat that suggests what might come next. “My leadership team and I would be happy to make ourselves available to meet with you and your Board at your earliest convenience,” he writes. “Depending upon the nature of your response, Microsoft reserves the right to pursue all necessary steps to ensure Yahoo shareholders are provided with the opportunity to realize the value inherent in our proposal.”

Sanford C. Bernstein analyst Jeffrey Lindsay wrote in a research note that “the Microsoft bid of $31 is very astute” because it puts pressure on Yahoo management to take actions that could unlock the underlying value of Yahoo assets, which he estimates are worth upward of $39-$45 a share.

If the Yahoo board digs in its heels, reject Microsoft’s offer, and resorts to its “poison pill”—an anti-takeover maneuver to dilute the value of a hostile bidder’s stake in the company— Microsoft’s next shot would be to file a tender offer and nominate a new slate of independent directors. This is otherwise known as throwing the bums out.

Under Yahoo’s bylaws, the notice for such a proposal and new slate of directors must be issued by March 13—enough time for the Yahoo directors to consider Microsoft’s offer, while each side burns through some very high-priced legal advice, and Microsoft heads toward a possible proxy fight.

Google Lawyers have been blogging about the antitrust, with Microsoft’s bid. Will they succeed? There are lot of action in this space. These are few good articles on this news…

The War for the Internet: Why Yahoo! is Microsoft’s best chance to “kill Google.” is my favourite 😉


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Google, Internet Industry, Merger and Acquisition, Microsoft, Microsoft's Bid for Yahoo, Yahoo

Microsoft’s bid for Yahoo!

$45 Billion is the figure. Steve Ballmer’s offer, a “bear hug” in M&A parlance, was the first step. The letter ended with a mix of conviviality and veiled threat that suggests what might come next. “My leadership team and I would be happy to make ourselves available to meet with you and your Board at your earliest convenience,” he writes. “Depending upon the nature of your response, Microsoft reserves the right to pursue all necessary steps to ensure Yahoo shareholders are provided with the opportunity to realize the value inherent in our proposal.”

Sanford C. Bernstein analyst Jeffrey Lindsay wrote in a research note that “the Microsoft bid of $31 is very astute” because it puts pressure on Yahoo management to take actions that could unlock the underlying value of Yahoo assets, which he estimates are worth upward of $39-$45 a share.

If the Yahoo board digs in its heels, reject Microsoft’s offer, and resorts to its “poison pill”—an anti-takeover maneuver to dilute the value of a hostile bidder’s stake in the company—Microsoft’s next shot would be to file a tender offer and nominate a new slate of independent directors. This is otherwise known as throwing the bums out.

Under Yahoo’s bylaws, the notice for such a proposal and new slate of directors must be issued by March 13—enough time for the Yahoo directors to consider Microsoft’s offer, while each side burns through some very high-priced legal advice, and Microsoft heads toward a possible proxy fight.

Google Lawyers have been blogging about the antitrust, with Microsoft’s bid. Will they succeed? There are lot of action in this space. These are few good articles on this news…

The War for the Internet: Why Yahoo! is Microsoft’s best chance to “kill Google.” is my favourite 😉


Digg!

Advertising Industry, Digital Marketing, Internet Industry

Accenture Global Digital Advertising Study 2007

My friend Anuj Anand shared a very interesting report with me last week and as usual i was about to junk it ;). A better sense prevailed and I didn’t regret a bit going through the report.

Though it is called “Accenture Global Digital Advertising Study 2007″and you might think that it pertains only to US (no wonder their local baseball competition is also called World Cup), it does have something for all of us. Coming back to the report, the key takeaways were…

– 79 percent of our survey participants agree that advertising will become more performance-based, as the industry moves towards precise measurement of results, rapidly delivered. This will impose a performance discipline on an industry that has rarely felt this kind of pressure.

– 87 percent agree that analytics will become more accurate and more critical to the business. This shift will drive a decline in the use of traditional success measures — total audience per advertisement — but will enable advertisers to gain increased return on investment through more accurate targeting of audiences.

– 97 percent agree that advertising relationships with customers will become more interactive, and the other 3 percent say they don’t know, meaning that not a single respondent disagrees. As a result of this greater interactivity, capabilities such as clickthrough buttons on TV will enable a two-way dialogue with the consumer all the way to purchase. These capabilities will also create a more meaningful feedback loop on advertising effectiveness.

– 43 percent of the respondents believe that digital media will become the primary form of programming and advertising content within the next five years, and a further 33 percent say this will happen in between seven and 10 years. The impact of this transition may be
accelerated by the typical pattern that early adaptors tend to be from higher income demographic groups that are more attractive to advertisers. Traditional advertisers are largely unprepared for the wave of digitally driven change about to engulf them.

– Only 29 percent of executives believe the industry is technologically prepared for the resulting changes in performance measurement. The proportions are even lower in terms of customer analytics (25 percent), targeted advertising (21 percent) and customer interactivity (13 percent).

– Largely as a result, the highest proportion of respondents (43 percent) believe advertising agencies have the most to lose in the transition to digital advertising, followed by broadcasters with 33 percent.

– Correspondingly, 46 percent believe that online search companies have the most to gain, followed by digital advertising specialists with 19 percent.

– 77 percent agree that advertising will be viewed in an integrated way on three screens — television, computer and wireless handset.

Indian scenario can’t be more rosier. Digital agency Zenith Optimedia expects Internet ad spend to double, from 210 crores 2006 to 450 crores in 2007 and can potentially rise to 2,250 crores mark in 2009 (a 10 times increase). As a share of advertising pie, the share will rise to 6.8%, which was 1% last year. There is another interesting report on digital industry.

It just certifies a fact that we already know, that the advertising industry is facing a radical transformation — in terms of its technological and cultural impact. We need to focus strongly on the use technology to offer advanced customer interactivity. Targeting and analytics are gaining real competitive differentiation.

Therefore the implications for us are…

– If you are a new media company — build, partner or buy systems (sales, reporting, delivery) to support products across three screens and to deliver targeted advertising in privacy-compliant ways.
– If you are a marketer — escalate your integrated marketing and advertising initiatives across three screens, keeping a critical eye on performance metrics.
– If you are a technology company — focus on developing front-end and back-end systems specific to each medium’s unique needs.

If you can’t locate PDF on the net, do write to me and I’ll send you a copy 🙂

Cheers!!

Digg!

Accenture, Digital Marketing, Internet Industry, Internet Marketing

Accenture Global Digital Advertising Study 2007

My friend Anuj Anand shared a very interesting report with me last week and as usual i was about to junk it ;). A better sense prevailed and I didn’t regret a bit going through the report.

Though it is called “Accenture Global Digital Advertising Study 2007″and you might think that it pertains only to US (no wonder their local baseball competition is also called World Cup), it does have something for all of us. Coming back to the report, the key takeaways were…

– 79 percent of our survey participants agree that advertising will become more performance-based, as the industry moves towards precise measurement of results, rapidly delivered. This will impose a performance discipline on an industry that has rarely felt this kind of pressure.

– 87 percent agree that analytics will become more accurate and more critical to the business. This shift will drive a decline in the use of traditional success measures — total audience per advertisement — but will enable advertisers to gain increased return
on investment through more accurate targeting of audiences.

– 97 percent agree that advertising relationships with customers will become more interactive, and the other 3 percent say they don’t know, meaning that not a single respondent disagrees. As a result of this greater interactivity, capabilities such as clickthrough buttons on TV will enable a two-way dialogue with the consumer all the way to purchase. These capabilities will also create a more meaningful feedback loop on advertising effectiveness.

– 43 percent of the respondents believe that digital media will become the primary form of programming and advertising content within the next five years, and a further 33 percent say this will happen in between seven and 10 years. The impact of this transition may be
accelerated by the typical pattern that early adaptors tend to be from higher income
demographic groups that are more attractive to advertisers. Traditional advertisers are largely unprepared for the wave of digitally driven change about to engulf them.

– Only 29 percent of executives believe the industry is technologically prepared for the resulting changes in performance measurement. The proportions are even lower in terms
of customer analytics (25 percent), targeted advertising (21 percent) and customer interactivity (13 percent).

– Largely as a result, the highest proportion of respondents (43 percent) believe advertising agencies have the most to lose in the transition to digital advertising, followed by broadcasters with 33 percent.

– Correspondingly, 46 percent believe that online search companies have the most to gain, followed by digital advertising specialists with 19 percent.

– 77 percent agree that advertising will be viewed in an integrated way on three screens — television, computer and wireless handset.

Indian scenario can’t be more rosier. Digital agency Zenith Optimedia expects Internet ad spend to double, from 210 crores 2006 to 450 crores in 2007 and can potentially rise to 2,250 crores mark in 2009 (a 10 times increase). As a share of advertising pie, the share will rise to 6.8%, which was 1% last year. There is another interesting report on digital industry.

It just certifies a fact that we already know, that the advertising industry is facing a radical transformation — in terms of its technological and cultural impact. We need to focus strongly on the use technology to offer advanced customer interactivity. Targeting and analytics are gaining real competitive differentiation.

Therefore the implications for us are…

– If you are a new media company — build, partner or buy systems (sales, reporting, delivery) to support products across three screens and to deliver targeted advertising in privacy-compliant ways.
– If you are a marketer — escalate your integrated marketing and advertising initiatives across three screens, keeping a critical eye on performance metrics.
– If you are a technology company — focus on developing front-end and back-end systems specific to each medium’s unique needs.

If you can’t locate PDF on the net, do write to me and I’ll send you a copy 🙂

Cheers!

Digg!