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Have you placed ads in periodicals and local papers trying to get attention for your business, products or services? How many calls did you get in response? Did the revenue you generated even pay for the cost of the advertising?

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Advertising - How Do You Advertise to Make the Most Impact?

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CBS is paying a 45% premium in order to buy CNET for $1.8 billion!

Why?

Why would they offer up a 45% premium for a company that’s seen its stock slump recently? Let’s speculate shall we?

  1. CBS had money burning a hole in its pocket.
  2. CNET had more than one suitor, so enjoyed a behind the scenes bidding war.
  3. CBS wanted to offer enough of a premium to satisfy its grumbling investors.

My vote is on option 3–with maybe a little of option 1. CBS will clearly benefit from CNET’s vast footprint in online media, but I believe the premium is likely an attempt to avoid any conflict with CNET’s dissenting investors.

A group of investors led by New York hedge fund Jana Partners LLC has been agitating for a shake-up at CNet after its shares fell sharply in the past year. Jana Partners has led a proxy fight to get a slate of directors elected to the CNet board.

The investors say CNet’s management has failed to take advantage of the company’s online presence to grow revenue as quickly as the advertising market is increasing.

Had CBS offered a single digit premium for CNET’s stock, Jana et al would have likely complained it wasn’t enough, tried to fight the acquisition, and perhaps confused investors with talk of the need for alternative bids.

While Jana Partners spokesman did not have a comment “yet,” I suspect that the 45% premium is designed to ensure the only comment they make is “woohoo!” ;-)

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CNET Acquired for $1.5B; Offers 45% Premium to Keep Dissenting Investors Happy

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Facebook is borrowing $100 million to accommodate growth on the site. The money, from venture loan firm TriplePoint, brings the amount raised to around $350 million.

The site has grown quickly and needs around 50,000 more servers to handle the load. Facebook has over 70 million active users and around 109 million monthly visitors.

According to Business Week, Google and Microsoft need a lot of server space. Google has at least a million servers and adds 500,000 per year. Microsoft is adding 200,000 servers per year.

While Facebook keeps expanding, their revenue is rumored to be at about break even. Last year they were said to bring in $150 million and plan to double that figure this year. They have more than 500 employees.

Here’s a short history of Facebook investments:

  • 2004 - $500,000 from PayPal co-founder Peter Thiel in an angel round.
  • 2005 - $12.8 million in venture capital from Accel Partners, $25 million from Greylock Partners and Meritech Capital Partners.
  • 2007 - Microsoft invested $246 million for 1.6% share in Facebook and Hong Kong billionaire Li Ka-shing invested $60 million.

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Facebook Borrowing $100 Million for More Servers

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A recent article here on MarketingPilgrim, which referred to an interview with Eric Schmidt, where he basically saw Microsoft as the “evil” company the knight in shining armor (since Google’s CEO was being interviewed, I’m sure it’s clear who he sees as the “knight in shining armor”) needs to protect us from gave me the idea for today’s post

Obviously, the opinion in question is anything but objective, but it does make us wonder: who exactly is the bad guy? Given the fact that Google and Microsoft don’t exactly have a stainless track record, it’s definitely hard to tell.

On the one hand, we have Google as the biggest player in search, a company which is basically dominating the Web and, as a result, it should come as no surprise that most folks see this as something extremely dangerous. The fact that they are also in quite a shopping spree also contributes to the “bad guy” image Google has.

On the other hand, there’s Microsoft and I believe the name says it all. It’s definitely safe to assume that Microsoft is not exactly the most popular company and, naturally, their previous interest in Yahoo! is seen by many as an attempt to try and dominate the Web as well, as an attempt to crush a company which, as far as search is concerned, seems to be following in their footsteps when it comes to “domination” (once again, the word “Windows” says it all).

All in all, two big players are competing for an extremely important piece of the Internet pie: Yahoo! (note: MSFT has now withdrawn its bid) . Even more so, it seems that both of them are as hungry as it gets and, as funny as it may sound, both of them are actually trying to convince us that they are here to “save us”.

Will Google save us from Microsoft? Will Microsoft save us from Google? You can’t be serious! The image of an Internet user who believes that one of these two companies is here to save him or her is similar to that of a fish who expects to be saved by one of the two fishermen who have just arrived at the lake.

Let’s keep our feet on the ground, shall we? Google or Microsoft, who is the bad guy? It would be harsh to label any of the two companies as “bad guys”, but one thing is clear: none of them are knights in shining armor.

Best wishes,

Alan Johnson

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Well, that SOMETHING has finally happened, but no one is really willing to be much more specific than that. However, anonymous sources who apparently don’t know enough to give a hard number (or don’t want to get in trouble) say that Microsoft has increased its bid for Yahoo.

The AP reports that Microsoft’s price will now exceed its original offer of $44.6 billion ($31/share). Microsoft had lowered the offer to $42.4 billion, and its exact value has fluctuated with stock prices. However, Yahoo stockholders were rumored to be holding out for at least $35/share. Analysts have long predicted that the deal would come once the price came into the $32-35/share range.

Yahoo’s stock price has steadily risen over the course of the day as rumors have persisted that a Microsoft and/or Google deal was imminent.

The New York Times, who originated the story, has a more mixed verdict:

Microsoft, which had threatened to abandon its bid, has increased its offer “by several dollars” per share, one of those involved said.

A deal, however, was not close Friday night, these people said.

Insiders caution that a deal is not a foregone conclusion, but it seems that both sides want to avoid a hostile takeover. Microsoft’s move looks like a clear indicator of that.

News looks as though it will drag on through the weekend. Y’know, if not for the rest of our natural lives.

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Read more from the original source:
Microsoft Raises Yahoo Bid

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