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David Shore's Documents
Web 2.0 Weekly - Aug. 10, 2010: "Consolidation by Google"
Deals (M&A, Finance) – Consolidation by Google Google confirmed or announced two acquisitions during the week, including Jambool ($70 mm) involved in virtual goods monetization processes, and widget market, Slide ($182 mm). In other acquisition-related news, Forbes sold investment media website Investopedia to ValueClick for $42 mm. Zynga acquired Japanese mobile app and game developer, Unoh, for an estimated $29 mm. Finally, dubbed “the Spanish Facebook,” social networking site, Tuenti, was acquired by Telefonica in a $99 mm deal. The largest financing (aside from the aforementioned M&A activity) involved “the Chinese Youtube,” Tudou, raising $50 mm in Series E funds. Price Performance Distinctly negative price momentum, with 49% of stocks falling over the past week (after 48% of stocks declines last week, and 51% declined the week prior).
Category:Internet & TechnologyReads:346Uploaded:08 / 10 / 2010ShareAdd to collectionWeb 2.0 Weekly - Aug. 4, 2010: "Playdom is going to Disney World"
Deals (M&A, Finance) – Disney Gets In To Social/Mobile Video Games Disney acquired social and mobile game developer, Playdom, for $563 mm in upfront consideration and the potential for $200 mm in further earn-out based consideration. Disney management notes that the company continues to be on the acquisition war path. The largest deals in the week involved (wait for it…) the advertising sector, with $15 mm in follow-on financings to eXelate and AdMeld, and $8 mm to BuzzLogic. Four different social network/media companies received financing in the week, including, Hot Potato (acquired for $10 mm by Facebook), PlacePop ($1.4 mm round), Rapportive ($1 mm seed round), and dating site, Triangulate ($0.75 seed round). Price Performance - Web 2.0 Valuation Reverse Course and Head Upward The Web 2.0 public company universe was positive this week with 47% of stocks rising, 46% falling, and 7% flat.
Category:Internet & TechnologyReads:653Uploaded:08 / 04 / 2010ShareAdd to collectionWeb 2.0 Weekly - July 27, 2010: "July Financings - Approaching High for 2010"
Deals (M&A, Finance) Jive Software received the biggest investment of the week at $30 mm, bringing its total capital raised to date to $57 mm – the company brings social network-like functions to the realm of enterprise collaboration. Advertising networks continue to receive the most attention among sectors we track – this week, $24.6 mm in financings were announced, including sports-related ad network Sportgenic (acquired by Glam Media for $12 mm), and TurnHere ($12.6mm in Series B funds). Rumour alert – we continue to hear more frequent buzz concerning the potential acquisition of social gaming developer Playdom by Disney. Synchronica (AIM:SYNC) intends to acquire iseemedia (TSXV:IEE) for C$8.8 mm in stock – both companies are engaged in mobile communications development, such as email-to-SMS. Price performance turns positive The Web 2.0 public company universe was positive this week, with 54% of companies seeing their market cap rise vs. 34% falling and 12% flat.
Category:Internet & TechnologyReads:370Uploaded:07 / 27 / 2010ShareAdd to collectionWeb 2.0 Weekly - July 20, 2010: "DST Cashing Up"
Large deals drive July financing to near record levels: With another huge financing (DST - see below) July financing is near record monthly levels. Total raised month-to-date is $742.6 million over 29 deals - averaging $25.6 million each. Excluding the Zynga ($100 million) and DST ($388 million) deals, the average deal size is $9.4 million. In comparison, total capital raised in July 2009 was $209.0 million, averaging $5.2 million over 40 deals. The monthly median total is ~$280 million with a median deal size of $8.1 million. Deals (M&A, Finance) Naspers, a South African media and print conglomerate, invested $388 mm in Digital Sky Technologies, the Russian digital media holding company with significant stakes in Facebook, Groupon, Mail.ru, and Zynga. The next biggest raise of the week was Australian enterprise software developer, Atlassian, receiving $60 mm in Series A funds from Accel Partners. Social Commerce continues to garner attention – this week BlueSwarm ($0.8 mm angel round) and Shopkick ($15 mm Series B round) raised money. Another $31 mm in venture funds found their way to Advertising-related start-ups, including Israel-based Adsmarket ($17 mm), as well as a pair of India-based companies – Komli Media ($6 mm) and InMobi ($8 mm). Price performance split The Web 2.0 public company universe was split this week, with 48% of companies seeing their market cap fall vs. 43% rising and 9% flat.
Category:Internet & TechnologyReads:331Uploaded:07 / 20 / 2010ShareAdd to collectionWeb 2.0 Weekly - July 13, 2010: "Google Follows ITA Acquisition with Zynga Financing"
Google/Zynga deal drives July financing results: After starting very slowly (just one deal announced in the prior week) July financing increased substantially as a result of the Google/Zynga financing ($100-200 million). Total raised month-to-date is $158.8 million over 12 deals - averaging $13.2 million each. In comparison, total capital raised in July 2009 was $206.5 million, averaging $5.3 million over 39 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$280 million. Deals (M&A, Finance) Google invested a rumoured $100-$200 mm in social game developer, Zynga, bringing that company’s total funding to almost $500 mm (assuming the lower end of the range). The Gaming sector remains hot – along with Google’s investment in Zynga, The9 Ltd. (Chinese online game developer and operator) invested $5 mm in Delaware-based Aurora Feint (focused on gaming for the mobile space). A triad of financings in the Social Commerce space this week, including Beyond the Rack ($12 mm), ThredUP ($1.7 mm), and BuyWithMe ($16 mm in a Series B financing). Sysomos, Canadian social media monitoring firm, was acquired by MarketWire for between $25 mm and $35 mm. Price performance turns positive The Web 2.0 public company universe rose this week, with 58% of companies seeing their market cap rise vs. 32% rising and 10% flat.
Category:Internet & TechnologyReads:351Uploaded:07 / 13 / 2010ShareAdd to collectionWeb 2.0 Weekly - July 8, 2010: "Big Acquisitions, Little Financing"
Summer financing doldrums: After a very strong June (with total transaction value (excluding M&A) of $542.8 million from 66 transactions, averaging $8.4 million each), July has started very slowly with only one small financing announced. However, we have seen some large M&A transactions (see below). In comparison, total capital raised in July 2009 was $206.2 million, averaging $5.4 million over 38 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$270 million. Deals (M&A, Finance) Google, acquired ITA Software, search provider for the travel industry for $700 mm. infoGROUP, provider of business and consumer databases for sales leads, mailing lists, direct marketing, database marketing, e-mail marketing, and marketing research solutions, was taken private for $645 mm by CCMP Capital Advisers. GroupSpaces, a provider of web-based tools for sports clubs, university societies, organizations, and groups of friends or coworkers, raised $1.3 mm. Domain based online advertising services provider, OCTANE360, was acquired by Local.com for $10.9 mm. Negative price performance The Web 2.0 public company universe fell again this week, with 61% of companies seeing their market cap fall vs. 27% rising and 12% flat.
Category:Internet & TechnologyReads:724Uploaded:07 / 08 / 2010ShareAdd to collectionWeb 2.0 Weekly - June 29, 2010: "World Cup of Financings as ROW Participates"
June financing well ahead of average: Financing in the Web 2.0 universe in June was the third highest month (over the past 12) with total transaction value (excluding M&A) of $459.6 million from 51 transactions, averaging $9.0 million each - led by the $147 million Zynga financing. In comparison, total capital raised in June 2009 was $226.3 million, averaging $4.5 million over 50 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$260 million. Deals (M&A, Finance) Alloy, a provider of news and commentary concerning New Media, was acquired by ZelnickMedia for $127 mm. Facebook’s implied valuation rose to $24 bn as Elevation Partners purchased 5 mm shares of the company for $120 mm in the secondary market. Danish Skype competitor, Vopium, received $16.5 mm in financing from Indian financier, Raghuvinder Kataria. Social networking software developer based in France, Pearltrees, raised $1.6 mm. PapayaMobile, mobile application software company based in China, raised $4 mm. Two Israeli mobile developers received funding this week, including Perfecto Mobile ($4 mm) and Snaptu ($6 mm). Negative price performance The Web 2.0 public company universe fell this week, with 68% of companies seeing their market cap fall vs. 25% rising and 7% flat.
Category:Internet & TechnologyReads:300Uploaded:06 / 29 / 2010ShareAdd to collectionWeb 2.0 Weekly - June 22, 2010: "AOL Sells Bebo at Massive Loss"
Deals (M&A, Finance) AOL is reported to have sold Bebo, the UK-based social network it bought just two years ago for $850 mm, to private equity firm Criterion Partners for under $10 mm. Based on our calculations, AOL paid the equivalent of $38 per Unique Visitor (UV) for Bebo, and sold it for under $1 per UV. Positive price performance The Web 2.0 public company universe rose again this week, with 60% of companies seeing their market cap rise vs. 33% falling and 7% flat.
Category:Internet & TechnologyReads:531Uploaded:06 / 22 / 2010ShareAdd to collectionWeb 2.0 Weekly - June 16, 2010: "Endless Money for Online Gaming?"
June financing ahead of average: Financing in the Web 2.0 universe in June continued to be strong with total transaction value (excluding M&A) month-to-date of $291.8 million from 29 transactions, averaging $10.1 million each - led by the Zynga financing. In comparison, total capital raised in June 2009 was $225.2 million, averaging $4.6 million over 49 deals. Excluding Dec 09 and Apr 10, the average monthly total is $260 million. Deals (M&A, Finance) 888 Holdings acquired online gaming company Mytopia for $18 mm. In the second largest financing overall this year, Zynga (online gaming) raised another $147 mm from Softbank, bringing its total financing to $381 mm. Financial Results/Guidance Cyberplex Inc. (TSX:CX) completed the acquisition of Tsavo Media, Inc. from Fountainhead Estate Holding Corp., American Capital Equity I of American Capital Equity Management LLC, and others on June 8, 2010. NetDragon WebSoft, Inc. (SEHK:777), announced first quarter revenues of RMB 139,476,000 compared to RMB 173,898,000 for the same period a year ago. Profit before taxation was RMB 21,379,000 compared to RMB 53,502,000 for the same period a year ago. Profit for the period attributable to owners of the company was RMB 21,215,000 compared to RMB 48,943,000 for the same period a year ago. Diluted EPS was 4.03 cents compared to 9.31 cents for the same period a year ago. Gravity Co., Ltd (NasdaqGM:GRVY) reported net income attributable to parent company was $337 million or $0.05 per share on total net revenues of $9,840 million compared to net income attributable to parent company of $4,649 million or $0.67 per share on total net revenues of $14,696 million for the same period a year ago. Positive price performance The Web 2.0 public company universe rose this week, with 56% of companies seeing their market cap rise vs. 36% falling and 8% flat.
Category:Internet & TechnologyReads:364Uploaded:06 / 16 / 2010ShareAdd to collectionWeb 2.0 Weekly - June 8, 2010: "Strong Week in Web 2.0 M&A"
June starts strong: Financing in the Web 2.0 universe in June began strongly with total transaction value (excluding M&A) month-to-date of $109.1 million from 19 transactions, averaging $5.7 million each. In comparison, total capital raised in June 2009 was $224.7 million, averaging $4.7 million over 48 deals. Excluding Dec 09 and Apr 10, the average monthly total is $260 million. Deals (M&A, Finance) Google (Nasdaq:GOOG) acquired advertising analytics firm, Invite Media, for a rumoured US$70mm. In the gaming sector, Challenge Games, the virtual goods funded game maker, was acquired by Zynga for US$20.5mm. FetchBack, a post-customer interaction advertising platform, was acquired for US$40mm by GSI Commerce. The largest financing in the week outside of acquisitions was US$40mm raised by HauteLook, a Los Angeles-based luxury Internet retailer. Financial Results/Guidance Shanda Interactive (Nasdaq:SNDA), a Chinese diversified entertainment media company, reported revenue decline of 16% Y/Y to RMB1,107 mm as the company’s gaming revenues registered a decline. Negative price performance returns The Web 2.0 public company universe fell back again this week, with 55% of companies seeing their market cap fall vs. 35% rising and 10% flat.
Category:Internet & TechnologyReads:346Uploaded:06 / 08 / 2010ShareAdd to collection
