Articles of the Day
Yahoo Signs Licensing Deal With Sony BMG - Yahoo has signed a broad new licensing agreement with Sony BMG that allows consumers to add music and video content from the label and its artists to user-generated creations. The agreement marks the first time Yahoo has licensed content from a major record label in connection with user-generated videos. Sony BMG signed a similar licensing deal with Google last year and another struck last month with social networking site MySpace.
Digital Music: Just A Band-Aid For Music Industry’s Gaping Wound - Despite the growth of digital spending to one-third of the U.S. consumer music market by 2012, it won’t be enough to offset the decline in CD sales, according to JupiterResearch, a New York-based research company. Digital sales this year are expected to hit $1.3 billion. But gains in the online business aren’t expected to reverse the industry’s overall slide, with total revenues estimated in 2012 at $10.1 billion, down from $11.6 billion in 2006.
Growing Backlash Over Facebook Social Ads - The early verdict is in: Facebook’s “social ads” are a bust. Two weeks after Facebook’s “groundbreaking” announcement about “a new way of advertising online,” more than 2,000 of its own users have joined activist group MoveOn.org in complaining that the new system compromises user privacy. They want the social network to immediately suspend or reform “Beacon,” the program that recommends products and services people buy to their friends.
Google Stock Price Heads For $900 - Financial analysts continue to raise their target price for high-flying Google. Credit Suisse Group on Tuesday became the latest firm to push its valuation of the search giant closer to $1,000 per share, saying it expects Google to surpass $900 per share next year. According to Bloomberg data, Credit Suisse’s valuation is the highest among the 37 brokerages that rate its stock. As of Wednesday morning, Google was trading at $647.85 per share, which means a jump to $900 would represent a 40 percent increase. Google’s stock has risen 31 percent so far in 2007.
GoogleClick: Coming Up With a Plan B; $250 Million to Build In-House Ad Exchange: Report - Last week, the EU announced its intent to launch an expanded probe into Google’s (NSDQ: GOOG) acquisition of DoubleClick, prompting real concern that the deal may end up blocked. While the EU’s decision does not prejudge the outcome, it’s always good to have a backup plan. A new research report form Bernstein’s Jeff Lindsay looks at some of the options available to Google, should the EU (or the FTC for that matter) ultimately come down against the acquisition. He lays out four scenarios: a) Forgo competing in the ad-exchange business. b) Purchase another player, possibly ValueClick. C) Build an in-house ad exchange. D) Form a JV, possibly with DoubleClick.
TheStreet.com: TCV’s 13 Percent Minority Stake; Calculating the Potential Profits - Last week, TheStreet.com (NSDQ: TSCM) announced that it had sold a minority stake in itself to PE/VC firm TCV for $55 million. In an 8-K filed with the SEC today, the company clarified what TCV got for its investment. In addition to the 1.1 million warrants exercisable at $15.69/share over the next five years (as stated in the initial release), the firm got Series B shares that convert to 3.85 million common shares at a price of $14.26. Based on the company’s most recent share count of 29.54 million, this stake comes to 13 percent. Also, at $14.26, the 3.85 mill shares come right to $55 million, the size of the investment.
