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Blucora (i.e. Infospace): Worse Than Blinkx plc & Babylon Ltd

Blucora (i.e. Infospace): Worse Than Blinkx plc & Babylon Ltd

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Published by gothamcityresearch
Gotham City Research initiates coverage on Blucora, Inc (a.k.a. Infospace).

GOTHAM CITY RESEARCH’S OPINIONS

+60% of BCOR’s revenue will evaporate in coming quarters, as Google realizes it is better off without BCOR. Google and Yahoo can walk away from Blucora any time.

At least 50% of BCOR’s traffic is derived from malware, click fraud, illicit traffic (e.g. child pornography), and otherwise suspect traffic.

Blucora and its partners’ practices will receive scrutiny from Google, advertisers, FTC, DOJ, FBI, IRS, &/or the SEC.

BCOR shares are worth no more than $5.00/share, and
Gotham City Research initiates coverage on Blucora, Inc (a.k.a. Infospace).

GOTHAM CITY RESEARCH’S OPINIONS

+60% of BCOR’s revenue will evaporate in coming quarters, as Google realizes it is better off without BCOR. Google and Yahoo can walk away from Blucora any time.

At least 50% of BCOR’s traffic is derived from malware, click fraud, illicit traffic (e.g. child pornography), and otherwise suspect traffic.

Blucora and its partners’ practices will receive scrutiny from Google, advertisers, FTC, DOJ, FBI, IRS, &/or the SEC.

BCOR shares are worth no more than $5.00/share, and

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Published by: gothamcityresearch on Feb 18, 2014
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GOTHAM CITY RESEARCH LLCwww.gothamcityresearch.cominfo@gothamcityresearch.com
GOTH M CITY RESE RCHLLC
Blucora(i.e.Infospace):Worse Than Blinkxplc& Babylon Ltd
“Google's first step is easy: Fire InfoSpace(a.k.a. Blucora). Google doesn't need InfoSpace, and there's zero reason for this relationship to continue in light of InfoSpace's repeated failings.” 
 –Harvard Business SchoolProfessor Benjamin Edelman,author of 
The DarkerSide of Blinkx,
andthe“Doogie Howser of online investigative work”according toformer federal prosecutorRichard Boscovich.
Dogpile.comand Webcrawler.com
Sources:
Alexa, Google
 
‘candydoll tv’, ‘candydoll.tv’, &‘vladmodels’ areterms tied to
child pornography?????????
 
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67Disclaimer:
Byreadingthis report, youagree that use ofGOTHAM CITY RESEARCHLLC’s research is at your own risk.In no event will you holdGOTHAM CITY RESEARCHLLCor any affiliated party liable for any direct orindirecttrading losses caused by any informationin this report.Thisreport isnotinvestment advice orarecommendation orsolicitationto buy any securities.GOTHAM CITY RESEARCH LLCis not registered asan investment advisor in any jurisdiction.You agree to do your own research and due diligence before making anyinvestment decision withrespect to securities covered herein. You represent toGOTHAM CITY RESEARCH LLCthatyou havesufficient investmentsophistication to critically assess the information, analysis and opinionsin thisreport. You further agree that you will not communicate thecontents of this report to any other personunless that person has agreed to be bound by these same termsof service.You should assume that as of the publication date ofthisreport,GOTHAM CITY RESEARCH LLCstands toprofitin the event theissuer’sstockdeclines. We maybuy,sell,coverorotherwise change the form orsubstance of its position in the issuer.GOTHAM CITY RESEARCH LLCdisclaims any obligation to notifythe market of any such changes.Our research and reportincludes forward-looking statements, estimates, projections, andopinionsprepared with respect to, among other things, certainaccounting,legal,and regulatory issuesthe issuerfaces and the potential impactof those issues on its future business, financial condition and results of operations, as well as more generally, the issuer’s anticipated operating performance, access to capitalmarkets, market conditions, assets and liabilities. Such statements, estimates, projections and opinionsmay prove to be substantially inaccurate and are inherentlysubjectto significant risks and uncertaintiesbeyondGOTHAM CITY RESEARCH LLC’s control.
Our research and reportexpresses our opinions,which we have based upon generally availableinformation, field research, inferences and deductions through our due diligence and analyticalprocess.GOTHAM CITY RESEARCH LLCbelievesall information contained herein is accurate andreliable, and has been obtained from public sources we believe to be accurate and reliable.
However, such information is presented “as is,” without warranty of any kind, whether express orimplied.GOTHAM CITY RESEARCH LLC, makes norepresentation, express or implied, as to the accuracy,timeliness, or completeness of any such information or with regard to the results tobe obtained from itsuse.All expressions of opinionare subject to change without notice, andGOTHAM CITY RESEARCH LLCisnotobligatedto update or supplementany reports or any of theinformation, analysis and opinioncontained in them.You should assume thatGOTHAM CITY RESEARCH LLChasand/or willfileas a whistleblower withrelevantregulatoryentities.
 
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67Table ofContentsI.DisclaimerII.SummaryIII.IntroductionIV.Blucora = Involuntary clicks + Artificial clicks + Illicit clicksV.Blucora’s History of Bad Behavior: The Iminent.com ProblemVI.Google is Better off without Infospace/BlucoraVII.Ties that Blind: “You’re only as good as the company you keep”VIII.Non-GAAP is BackIX.Sharesare Worth<$5.00per shareX.Appendix A:Blucora and MalwareXI.Appendix B:A Closer Look at Blucora’s 2005-2010ImproprietyXII.EndNotes

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