Marketing Pilgrim's "M & A" Channel

Sponsor Marketing Pilgrim's M & A Channel today! Get in front of some of the most influential readers in the Internet and social media marketing industry. Contact us today!

Publicis Goes Fishing for New Ad Revenue, Catches a Razorfish

In a Razorfish sale, yet to be officially confirmed, both Microsoft and French ad firm Publicis look set to walk away winners.

Microsoft looks set to recoup $530 million of the $6 billion it paid to acquire aQuantive and, along with it, Razorfish.

Publicis beefs-up its online advertising offering, picks up Microsoft, McDonalds, Google, and Yahoo as clients, and celebrates its 1-year anniversary of acquiring Performics with another big acquisition.

This should be Publicis’ last big-fish acquisition for a while, according to CEO Maurice Levy, "Don’t expect any acquisitions of this magnitude in the short or medium term." Now Publicis has to figure out how to integrate Razorfish, without losing any of the marquee client accounts, and hope that it can turn around a decline in revenue during the first half of 2009.

Emerging Details: Yahoo May Kill Microsoft Deal if it Fails to Match Google

Did you know that if the revenue per search, under a Microsoft/Yahoo partnership, fails to match Google’s estimated revenue, Yahoo can kill the deal?

Did you know that Microsoft must hire 550 Yahoo employees, whether they need them or not?

Did you know that the entire deal is in jeopardy if not completed by July 29 of 2010?

Did you know… OK, enough already!

While these fun facts might not make it into the next edition of Trivial Pursuit, they do make it into the latest 8-K filing from Yahoo. eWeek has a great recap of the fine print not previously announced, and it makes for interesting reading.

For example:

Google Jumps On2 Video Compression; Sends Google Radio into a WideOrbit

I wouldn’t hold your breath, but there’s a chance we’ll soon see the end of pixelated videos on YouTube. Google has today announced the acquisition of On2 Technologies and its portfolio of video compression technology. The $106.5 million deal could signal that we’ll soon see better compression technology used at YouTube– which means those videos that look great on your desktop, will still look great when they get to YouTube.

“Today video is an essential part of the web experience, and we believe high-quality video compression technology should be a part of the web platform,” said Sundar Pichai, Vice President, Product Management, Google in a statement. “We are committed to innovation in video quality on the web, and we believe that On2′s team and technology will help us further that goal.”

Dear Microsoft, Thank You! Love, Barry Diller

Barry Diller: Microsoft, how do I love thee? Let me count the ways.

1. Your deal with Yahoo shadowed our poor Q2 financial results.

While the whole world focused on the minutiae of the search deal between Microsoft and Yahoo, Diller’s IAC released its quarterly numbers. They weren’t up to analyst estimates, so I’m sure Diller was glad to have the insulation offered by the Microhoo hype.

IAC said revenue from its media and advertising unit, which includes search engine Ask.com, fell by 10% to $168.6 million. The company’s overall revenue declined 4% to $340 million.

2. When our deal with Google expires in 2012, we now have options.

For Fun: Microsoft/Yahoo Caption Contest

Let’s face it, the news is going to be swamped with the MSFT/YHOO deal today. So, for some light-hearted relief, let’s have a caption contest. Here’s an official photo provided courtesy of Yahoo!/Microsoft:

Leave your caption in the comments below and the best one–as chosen by me tomorrow at 9am ET–will win a $25 Amazon gift card. Please keep them clean.

Here’s mine: “We’ll take care of search from here on out, you can keep the “goofy, over-sized pen” business.” ;-)

We have a winner!

I have to give kudos to all the Pilgrims that left a caption–you guys are funny! In the end, this one made me laugh the hardest:

What Do Yahoo, Microsoft & The Rolling Stones Have in Common?

You can’t always get what you want
You can’t always get what you want
You can’t always get what you want
But if you try sometimes well you just might find
You get what you need

And, if we believe the latest report from AdAge, neither Microsoft or Yahoo will get exactly what they want from a potential partnership. Instead, both will make significant compromises in order to put a deal together that might just help them compete with Google.

The deal will likely be based purely on a revenue share–a far cry from what Yahoo had hoped for:

Yahoo’s request for an upfront payment (it is said to have asked for several hundred million), in addition to revenue guarantees that would amount to billions over the course of the deal, caused a breakdown last week in the on-again-off-again talks. But they were revived late on Thursday, according to executives with knowledge of the situation.

Yahoo Looking to Sell HotJobs, Buy Xoopit

yahoo-logoWith their Q2 results out—and better than expected—Yahoo seems to think they’re now in a prime position to review their holdings. In their portfolio, and on the chopping block: HotJobs and Yahoo Small Business. But Yahoo may also be looking to invest, most likely in Xoopit.

According to Reuters, Yahoo may be looking to divest itself of HotJobs, a job search website, as well as the division over Hot Jobs, Yahoo Small Business. YSB covers Yahoo! Domains, Yahoo! Web Hosting, Yahoo! Merchant Solutions, Yahoo! Business Email, and Yahoo! Store, which could net the company a big bonus. Yahoo has been looking to sell for 2-3 months in an effort to focus on its core business.

Meanwhile, Yahoo is rumored to be in the final stages of acquiring Xoopit for around $20M: