Tag Archives: acquisition

General

Facebook Buys Whatsapp For $19 Billion

Whatsapp-facebook

Holy wow! This is by far the most amazing deal of the year. Facebook just announced the acquisition of mobile messaging app WhatsApp for $19 billion. As a matter of fact it is much more than that, as the regulatory filing states. The popular app, which was founded by ex-Yahoo employees in 2009, has already raised about $60 million in funding and has more than 430 million monthly active users. Damn, that’s a lot! The deal includes $12bn in FB stock, $4bn cash, $3bn RSUs and a $1bn break-up clause, which brings the overall payout to roughly $19 billion in total.

Basically, there are no ads, no games, no stickers and no other gimmicks inside the app. In addition,  the text messenger phenomenon is offered for a free download and after one year of free use, the service costs $1 per year. So what’s going to happen now?

In a recent blog post WhatsApp CEO Jan Koum said the following:

Almost five years ago we started WhatsApp with a simple mission: building a cool product used globally by everybody. Nothing else mattered to us.

Today we are announcing a partnership with Facebook that will allow us to continue on that simple mission. Doing this will give WhatsApp the flexibility to grow and expand, while giving me, Brian, and the rest of our team more time to focus on building a communications service that’s as fast, affordable and personal as possible.

Here’s what will change for you, our users: nothing.

And here’s Mark Zuckerberg’s official statement about the deal:

Post by Mark Zuckerberg.
Computers, General, Mobile, News

HP To Acquire Palm For 1.2 Billion Dollars

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Hewlett-Packard has just announced that it would buy Palm for a staggering price of $1.2 billion dollars, roughly about $5.70 per share of common stock. The merge and acquisition, which are planned to close by July 31, can give the Palo Alto computer giant a great opportunity to get a bigger slice from the hot and trendy smartphones market, valued at $100bn alone and with annual rapid growth of 20% . HP executive vice president Todd Bradley said that “Palm’s innovative operating system provides an ideal platform to expand HP’s mobility strategy and create a unique HP experience spanning multiple mobile connected devices” and also added that “Between smartphones, slates, and potentially netbooks, there are a lot of opportunities here.” And he’s right, just think about the endless potential  possibilities of having Palm’s stunning WebOS integrated in HP’s future multi-touch devices, whether these are mobile phones, tablets or other portable machines – it’s HUGE and HP, in our opinion, has clearly taken a few significant steps in the right direction, especially now when strident voices, complaining about a sluggish HP Slate performance, start floating around – WebOS can definitely improve speed reaction dramatically –  and someone at the HP headquarters has probably figured this one pretty well. Brian Humphries, HP’s Senior Vice President of Strategy and Corporate Development quoted saying “our intent is to double down on WebOS”. That’s very important, considering the months of speculations where Palm was desperately looking for a buyer. And given the fact that HP is getting over 1500 patents that Palm currently owns (that probably has considerable value as well, isn’t it?), along with a very good team of young talented engineers and one relentless chairman and CEO, Jon Rubinstein, who is expected to remain with the company another few years long, this very complex deal that few months back, could easily have seemed impossible, can all of a sudden turn into a nice and promising bargain. PR announcement after the break.

Update: Digitimes says that HP Taiwan VP, Monty Wong has officially confirmed a webOS tablet to go live somewhere around October of this year. Stay tuned for more to come.

Continue reading HP To Acquire Palm For 1.2 Billion Dollars →

General, Internet, Music, News

Best Buy Acquires Online Music Service Napster For $121M

Online digital music market is getting warmed up, as US retail giant, Best Buy, announces it will acquire Napser for an astonishing $121 million price tag. The transaction is set to be accomplished in Q4 of this year and we have no doubt it was carried out in order to try snatching a substantial share from iTunes’ market dominance. Napster allows its 708,000 subscribers to access an unlimited library of music or using the “Napster Mobile” platform, on their mobile phones, for a small monthly fee of $15. Having said that, the company has never turned a profit, during its long years of existence.

Best Buy president Brian Dunn confirms the company’s desire to expand Napster services and to use “Napster’s capabilities and digital subscriber base to reach new customers with an enhanced experience for exploring and selecting music and other digital entertainment products over an increasing array of devices.” Be sure it’s just the beginning and we expect more developments to take place in the near future. We do hope this move will increase the competition and at the end of the day, will be profitable for the consumers.

[via ZDNet]

Accessories, General, Media Players, Music

Logitech To Get Into The Earbuds Market, Buying Ultimate Ears

Although earphones are no stranger to Logitech, the company has announced it’s aquiring US-based company Ultimate Ears, a market leader in custom in-ear monitors for on-stage musicians and iPod or iPhone consumers. The $34 million price tag is fairly reasonable, as it gives Logitech the abillity to strongly penetrate the mp3 players niche with quality in-ear earbuds, and to expand its portfolio of digital audio products. The acquisition is subject to customary closing conditions and is expected to close in August.

[via Ultimate Ears]

Internet, News

Microsoft-Yahoo Affair : End Of Story?

yahoo-microsoft Alright, so Microsoft has officially backed off from bidding on Yahoo, after a roller coaster of ups and downs, that started with an official offer to buy the company for $44.6 Billion, price that reflected $31 per share, back in February. The generous bid has never made any impression on Yahoo’s management, as the company’s directors has officially decided to turn off Microsoft’s hostile acquisition, claiming the bid is substantially lower than its real value, and whoever wants to buy them should hit $40 per share, meaning extra $9 to Steve Ballmer’s offer. Still, Microsoft clutched to its original bid (desperately trying to stay a major internet player in the growing online advertisement and searching markets) and considered an hostile takeover, by pursuing Yahoo share holders, but at the end of the day, after taking off their threatening suit, the Redmond’s were willing to raise the bid to $33, which was rejected by Yahoo as well and lead to today’s proposal withdraw announcement.

“Despite our best efforts, including raising our bid by roughly $5 billion, Yahoo! has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us, and it is in the best interests of Microsoft stockholders, employees and other stakeholders to withdraw our proposal,” said Ballmer.

Again, that wasn’t much of a squall to Sunnyvale, as Yahoo’s CEO, Jerry Yang, has apathetically responded:

…”With the distraction of Microsoft’s unsolicited proposal now behind us, we will be able to focus all of our energies on executing the most important transition in our history so that we can maximize our potential to the benefit of our shareholders, employees, partners and users.”

End of story? I’m not so sure, Temporary cease-fire? definitely yes.

[via Microsoft]

Internet, News

Yahoo! Officialy Rejects Microsoft's Bid But The Story Isn't Over

yahoo-microsoft Yahoo’s board of directors officially decided to turn off Microsoft’s hostile acquisition offer for 44.6$ Billion, price that presented $31 per share, a week ago. The rejection adds 2% to Yahoo’s share, 0.2% to Google’s share and -2% reduction on Microsoft’s share. In a press release, Yahoo says the bid is substantially lower than its real value and refuses to consider any offer under 40$ per share.

…”Yahoo! Board of Directors has carefully reviewed Microsoft’s unsolicited proposal with Yahoo!’s management team and financial and legal advisors and has unanimously concluded that the proposal is not in the best interests of Yahoo! and our stockholders.”

“After careful evaluation, the Board believes that Microsoft’s proposal substantially undervalues Yahoo! including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, free cash flow and earnings potential, as well as our substantial unconsolidated investments.”

Continue reading Yahoo! Officialy Rejects Microsoft's Bid But The Story Isn't Over →

Internet, News

Microsoft Wants To Acquire Yahoo For 44.6$ Billion

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Rumors come true, Microsoft submitted an official offer to buy Yahoo for $44.6 Billion, price that presents $31 per share, 62% over Yahoo’s closing price, 19.18$. Microsoft is making tremendous efforts to carry out this deal, in order to stay a major internet player and to be able to compete Google in the growing online advertisement and searching markets. Microsoft CEO, Steve Ballmer said: “We have great respect for Yahoo!, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market.” The bid was submitted after Yahoo announced the cutting of 1,000 jobs and reported 8 consistent quarters of dropping shares value. With the anticipation for a difficult year, Yahoo’s board of directors might accept the offer, though we hear the company is not in a rush. Yahoo shares responded with increasing of 47.9%.

Update: Google is reluctant with current developments. Senior VP for Corporate Development and Chief Legal Officer, David Drummond, has just posted a preliminary comment in Google’s official blog, attacking Microsoft for the hostile bid to acquire Yahoo and raises troubling questions:

“Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies — and then leverage its dominance into new, adjacent markets.”

And more:

…”Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors’ email, IM, and web-based services? Policymakers around the world need to ask these questions — and consumers deserve satisfying answers.”

 

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