Monday, November 15, 2004

Marketwatch sold.

Marketwatch (MKTW) just announced that it has been acquired by Down Jones for around $18/share. This is a much higher price than I ever expected a buyer to pay for Marketwatch. I came very close to adding a few myself in mid-August, when Marketwatch was trading around $9/share. I expected it to become cheaper still. But I was wrong.

Going forward, I think we will see the last remaining pure-information sites getting picked up. Among the candidates - IVillage (IVIL), CNET (CNET) and The (TSCM). I own a few of IVillage and it is still a buy. I am watching CNET and The and will buy at 10-15% discount from current prices.

With The, there is a real possibility that the suitors who failed to buy Marketwatch will eye it next.


At 11:17 AM, Blogger rickoo7 said...

I knew one of the IVIL founders (since departed) who hailed from 1800FLOWERS before the days of the Internet (circa 94/95) and I had the pleasure of meeting some of the founding women at a conference. I was impressed, despite the notion that Jewish women could create a site to appeal to the multitude of regions, ethnicities and economic disparities that exist in the U.S. They are smart and focused. Today the price briefly dropped below $4 so I snapped some up @ $4.01/share. Meanwhile, the Motley Fool had an interesting piece on their recent success, despite a filed venture with WalMart. They continue to sign up new sponsors, so growth and profitability are likely to continue.

"With 12.3 million registered users generating 366 million monthly page views, the cash-rich company is attracting the eyeballs that advertisers".... covet.

At 3:59 AM, Blogger Guru said...

Appreciate the feedback.
The 1-800-Flowers connection is interesting. I see 1-800-Flowers as a takeover target, though, like with Marketwatch, I may never get it since I am waiting for it to become dirt-cheap.
In fact, if IVillage plans to continue as a standalone entity, they will have to buy someone like 1-800-Flowers to augment ad revenue with some "real" shopping revenue.

At 4:16 PM, Blogger rickoo7 said...

Tripped across this Yahoo post, taking minutes from their earnings call. Some things yet to be announced, possibly pushing the price higher in December.

~Launch of the re-design of starting in December and finishing by end of Q1. (7:10 m into the call)
~New search process (7:25 m)
~New content (7:45 m)
~MSN expanding relationship to be launched in Q4 (8:35 m)
~MSN expansion to be “significant” (36:45 m)

I must say that last one is the one I find most interesting.

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