Articles of the Day


Blinkx Drops Bid For Search Marketing Firm Miva — Online video search firm Blinkx, which is publicly traded on the AIM market, has dropped its public bid to acquire pay-per-click ad network MIVA. The London- and San Francisco-based Blinkx had offered $1.20 per share, valuing Miva at $41.13 million, a 54 percent premium over its early August stock price…Miva board rejected it outright then, saying the bid wasn’t up to the mark. This morning, in a statement, Blinkx explained its decision to withdraw: “The large premium blinkx offered in our initial proposal is even more significant today in light of MIVA’s second quarter earnings miss, subsequent downward revision of annual guidance, and public disclosure related to restructuring of the Media EU business. By choosing not to engage in substantive discussions in any material respect and an agreement with blinkx, MIVA Board and management in our view have failed to give due consideration to a transaction that had a uniquely attractive opportunity for MIVA shareholders, particularly in light of several challenges MIVA faces in the near term.”

AOL-Yahoo Merger Details Emerge; Deal Could Happen This Month — Yahoo is continuing its marathon merger discussions with AOL, sources close to the negotiations have whispered to us, and a deal could happen as early as this month. Is this just a rehash of the reported discussions in February and then again in April? Yes and no. It’s clear that AOL’s parent company, Time Warner, wants this deal more than ever. What isn’t clear is whether AOL’s assets will fix any of Yahoo’s problems. The deal structure that is currently being discussed is Yahoo’s acquisition of AOL (content, services and advertising), minus their subscription dial up business. That plus a couple of billion dollars in cash from Time Warner gets them approximately a third of the combined entity. Time Warner’s AOL headache is gone, and they have a stake in the world’s most valuable chess piece in the Google/Microsoft search and advertising war.

Viacom-YouTube Update: VCs Will Have To File With Court On Decisions To Back YouTube, Sell To Google — YouTube’s VC backers are being asked to explain to a federal court why they invested in the video venture—and why they sold to Google. As part of the $1 billion lawsuit Viacom (NYSE: VIA) filed against YouTube and Google in early 2007, MarketWatch reports, Viacom wants documents from Sequoia Capital, Artis Capital Management and TriplePoint Capital “related to the firms’ “actual and potential” investment in YouTube, Google’s acquisition of the startup and a “proposed indemnification for copyright infringement relating to this merger.” The documents are due Oct. 27, although there have been a lot of delays in this case all along so who knows. The companies reaped significant rewards in Google stock in the $1.65 billion 2006 sale: Sequoia, $504 million; Artis, $83 million; TriplePoint, $6.4 million. MKTW sees the notion of having VCs explain themselves as unusual but Google senior litigation counsel Catherine Lacavera says it is “not out of the ordinary.”

Google Begins Wider Testing In-Game AdSense System — Google is hoping to take advantage of in-game ads’ strong growth with its new AdSense for Games system, the company announced in a post on its blog. Citing comScore data, Google says over 25 percent of web users play online games every week, representing over 200 million global users. Google began offering the system on a limited basis back in November. It started off using pre-roll and mid-roll inserts with gaming startup Bunchball Games. With this wider beta test, AdSense for Games will let marketers place video ads, image ads, or text ads within developers’ games. The system is based on technology from Adscape, which Google bought for $23 million in February 2007.The AdWords sales team will sell company’s in-game ad placements directly to advertisers. Google is also promising text and image ads that are targeted by demo and location. To be eligible for the program, publishers must have a minimum of 500,000 game plays and have 80 percent of their traffic from the U.S. or the U.K.

Yahoo’s Yang May Have Missed Sales Opportunity In Asia — Yahoo CEO Jerry Yang has made clear his intention to sell off Asian assets such as Alibaba.com Corp. and Gmarket Inc. But thanks to the global financial crisis, it looks like he may have missed his chance to get top dollar. Such holdings have shrunk about $2.2 billion–that’s 23%–since Yahoo assessed them in July. The value of the holdings has been depressed thanks to investor fears that the deepening crisis will hurt the Internet advertising market. And even if a buyer were interested at this point, raising the capital to make the purchase would likely prove difficult now that banks are hoarding cash.

IAC/InterActiveCorp CEO Acknowledges Business Is Being Scrutinized For Divestments; Declines To Name Potential Disposals — IAC/InterActiveCorp boss Barry Diller declined to name potential disposals being considered by the listed Internet conglomerate. In the course of a Wall Street Journal interview, Diller was asked to identify areas of operation which might be divested; he replied that the decision had not yet been made so he would not be specific. He added that the New York-based group’s businesses were being analyzed in relation to size and markets to see if they were worth bothering with, the report said. When asked whether the credit crunch might hamper any efforts to sell, Diller said Internet companies had not so far suffered too much but added that it was possible the sector might freeze in the future. IAC/InterActiveCorp was broken up by Diller several weeks ago in a move towards streamlining the company, the report noted. It added that Diller said any acquisitions made with the proceeds of the USD 1.3bn break-up are most likely to be in the Internet advertising sphere with which IAC is familiar. Source: WSJ.

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