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Showing posts with label Mergers and acquisitions. Show all posts
Showing posts with label Mergers and acquisitions. Show all posts

December 9, 2016

FitBit takeover of Pebble without their hardware stumps analytics and investors alike

Top 5 Wearable Vendors Marketshare: FitBit,Xiaomi and Apple Lead the stakes(IDC data)

 
After days of speculations and rumors on Pebble and Fitbit takeover talks, Fitbit has finally announced that it is acquiring " wearable smartwatches manufacturer Pebble .On December 7, 2016, Fitbit officially announced that they acquired assets from Pebble, including key personnel, as the company decided to stop producing wearable technology.However this does not include the hardware from Pebble.

While this seemed like a good news for both as Pebble was struggling to gain market share in the wearable industry and might have suffered in the future and may have gone under without an exit plan. However a few analysts are pointing out that the takeover plan by Fitbit does not make much strategic alignment not a very good  fit as it does not include pebble's famed"Hardware". Considering Pebble's hardware is what helped the company build a following in the first place, not owning the hardware part  for Fitbit is like killing the product and stopping innovation

Post this takeover Fitbit risks not only disappointing the thousands of loyal fans that believed in Pebble despite the odds but also leaves them high and dry .According to endgadget, Fitbit now plans discontinue many of  Pebble wearable which was supposed to be launched in the next quarter.
They includes all the devices that were listed in the company's latest Kickstarter campaign including The Time 2 and the Core -a GPS-enabled accessory for runners, both promised for next year -- will never ship. If you ordered a Pebble 2 or a special Kickstarter Edition of the Time Round and haven't received it yet, you won't get one. Pebble has said all Kickstarter preorders will be refunded within the next week.

During Q3,2016 quarter, Fitbit shipped 11% more fitness bands than it did in the year-earlier quarter, upping its share of the market to 23% from 21.4% in the year-earlier period, according to IDC. However, shipments rose just 3% industry wide, marking a stark deceleration from 67% in the first quarter and 26% in the second quarter of 2016. Last month, Fitbit provided a revenue outlook for the holiday quarter between $725 million and $750 million, which was sharply below the $985 million analysts had forecast in a FactSet survey.Analysts have since tempered their expectations, as many VC's and Investors alike now believe that product category has failed to convince consumers that these are must-have products the way, say, smartphones have.




November 30, 2015

technology industry's top 5 biggest mergers and acqusitions


Dell's $67 billion purchase of EMC is the biggest pure tech acquisition ever. (AOL's $162 billion buy of Time Warner in 2000 was larger, but Time Warner was a media company, not a tech company.) This chart from Statista shows some of the largest tech acquisitions of the past decade, measured in 2015 dollars.
" technology industry's biggest  acquisitions"
The Dell : EM2 merger remains the biggest till date a $67 billion deal , followed by HP and Compaq's $33.6billion. Facebook's buyout of whatsapp for $19billion was another milestone along with Google and Motorola deal in 2011 for $13.2billion

June 30, 2011

The End of MySpace:To be Sold For $20-30$ Million


This chart, based on data from eMarketer, using estimates on Myspace revenue which are still merged with the rest of News Corp's Fox Interactive Media division, tells the story.





Back in 2008 MySpace was on a roll. They racked up $900 million in revenue and the company was still growing. But a year later top execs started to bail (the smart ones went early). Within two months cofounder and CEO Chris DeWolfe was gone.Rupert Murdoch's News Corporation bought Myspace in 2005 for $580m. In 2006 Google signed a $900m deal to sell ads on Myspace; by 2007 it had 300m registered users and was being valued at $12bn. But the social network was subsequently crushed by Facebook, which launched a year after Myspace.
News Corp. is about to sell Myspace for $20 million-$30 million, Kara Swisher at All Things D reports.The groups vying for the remains of Myspace are Golden Gate Capital, a PE firm with $9 billion under management, and Specific Media, an ad network.


News Corp.'s fiscal year ends this Thursday, so it's looking to wrap up the sale before the end of the fiscal year, so it can get Myspace off the books for 2012. MySpace Revenue for fiscal 2011, ending June 30, 2011, is expected to be just $109 million. Expenses for the year are projected to be $274 million, and the company will lose a whopping $165 million for the 12 month period. That’s after massive waves of layoffs, although I expect much of the costs of the layoffs are included up front in 2011 expenses.




This is quite the come down for Myspace. News Corp paid $580 million for Myspace in 2005. When it started selling Myspace this year, it was looking for $100 million.



The price, said others, could go as high as $35 million, but it’s far cry from the $100 million that News Corp. had been aiming for.As part of the deal, sources said the News Corp. unit will be making significant cuts in staff and costs — up to 50 percent or more — all contingent on the purchaser. 

The two names — Specific Media and Golden Gate Capital — that are now in the forefront for an acquisition deal that News Corp. hopes to complete by Thursday, its fiscal year end, have not been among the acquirers mentioned previously in the myriad of reports about the deal.

  • Myspace is going to lose $165 million in the fiscal 2011 year. (That's the 12 month period ending June 30, 2011.)
  • For that period, revenue is expected to be just $109 million. Expenses are $274 million.
  • Myspace says it will have $15 million in earnings before interest, tax, depreciation, and amortization (EBITDA) in 2012. How does it get there? Revenue drops to $84 million and expenses drop to $69 million. (This suggests big layoffs are coming.)
  • From there, Myspace predicts sales $101 million in 2013 revenue, $119 million in 2014 revenue, and $139 million in 2015 revenue.


April 20, 2011

Pelago Acquired By Groupon,gets Hyperlocal

Groupon has acquired Pelago, creator of location-based check-in service Whrrl. The deal is the latest sign that the daily deal space is converging with geolocation, making it possible for businesses to present offers to consumers based on where they are. It’s the latest move by Groupon and other daily deal sites to market to consumers based on their locations.


The move comes a little more than a month after LivingSocial, Groupon’s primary rival, began testing a mobile app feature that lets consumers search for deals within a half-mile radius of their current locations. Pelago, which was a Kleiner Perkins-funded company was considered  one of the  potential Foursquare rival. 

Whrrl — is a location-based, social application for the iPhone, Android and Blackberry designed to help people discover highly relevant new experiences in the real world. Whrrl’s  Rewards program enabled businesses to participate in the discovery experience by offering prizes at places that Whrrlers win by checking and was the first real-world social loyalty program.

With the acquisition, Pelago CEO Jeff Holden will assume a new role overseeing Groupon’s product development, or “Grouponnovations.” The daily deal site will shut down Whrrl on April 30. Other Pelago employees will also work with Holden’s team. 


Pelago was founded in 2006, is based in Seattle, and is led by an executive team from companies including Amazon.com, RealNetworks and Yahoo. The company is backed by pioneering Internet and mobile investors including Kleiner Perkins Caufield & Byers, Bezos Expeditions, T-Venture (T-Mobile’s venture arm), Trilogy Equity Partners and Reliance Technology Ventures.