Feeds:
Posts
Comments

Posts Tagged ‘Date Certain M&A’

Article from GigaOm.

“Microsoft confirmed that it has agreed to buy Skype for $8.5 billion and plans to integrate it into a wide array of products, from Kinect and Windows Phone 7 to Lync, Outlook and Xbox Live. The deal caps a sudden turn of events for Skype, which had previously been the target of interest from Google and Facebook, but then attracted attention from Microsoft. Om first broke the news about Microsoft’s interest in Skype, and last night nailed the purchase price. With the deal, Microsoft is taking a product that eBay couldn’t integrate well and will try and use it to compete against Google, Apple, Cisco and others in the collaboration and communications space.

Microsoft said Skype will become a new business division with Skype CEO Tony Bates assuming the title of president of the Microsoft Skype Division. The company said the acquisition will enhance its work in real-time communications, which includes Lync, Outlook, Messenger, Hotmail and Xbox LIVE. And it expects it to bring in new revenue and provide more benefits to both consumers and enterprise customers.

“Skype is a phenomenal service that is loved by millions of people around the world,” said Microsoft CEO Steve Ballmer in a statement. “Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world.”

For Skype, the deal allows it to extend its reach and introduce new ways to communicate, said Bates. Microsoft said Skype currently has 170 million connected users and logged more than 207 billion minutes of voice and video conversations in 2010. For all its popularity, however, Skype has had trouble making money and posted a $7 million net loss in 2010.

Microsoft will have a big job on its hands in trying to make Skype work — in part because at $8.5 billion, it is Redmond’s biggest acquisition ever. As Om points out, Skype could give Microsoft a boost in the collaboration market and improve its Windows Phone 7 offering. It could also be an intriguing video-calling combination for Kinect, the gesture-based system for the Xbox. But big acquisitions also have a history of failure, so it remains to be seen whether Microsoft has the ability to turn Skype into a money maker — especially considering its other online efforts haven’t seen much success.”

Read original post here.

Read Full Post »

Steven R. Gerbsman, Principal of Gerbsman Partners, will be a guest speaker at the Center for UC Berkeley Executive Education Venture Capital Executive Program taking place May 16-20, 2011.

He will speak on the topic Maximizing Enterprise Value of Under Performing Deals on Thursday, May 19 over lunch, 12:00-1:15 PM.

The program is designed for investment professionals, economic policy advisors, and entrepreneurs striving to gain advanced, results-oriented training in the venture capital process.

For more information, please visit: http://executive.berkeley.edu/programs/vcep/ and http://executive.berkeley.edu/programs/venture-capital-training/speakers.html.

About Gerbsman Partners

Gerbsman Partners focuses on maximizing enterprise value for stakeholders and shareholders in under-performing, under-capitalized and under-valued companies and their Intellectual Property. Since 2001, Gerbsman Partners has been involved in maximizing value for 68 technology, life science and medical device companies and their Intellectual Property and has restructured/terminated over $795 million of real estate executory contracts and equipment lease/sub-debt obligations. Since inception in 1980, Gerbsman Partners has been involved in over $2.3 billion of financings, restructurings and M&A Transactions.

Read Full Post »

Steven R. Gerbsman, Principal of Gerbsman Partners, Kenneth Hardesty and James Skelton, members of Gerbsman Partners Board of Intellectual Capital, announced today their success in maximizing stakeholder value for a venture capital backed, medical device company. The company was in the cardiac rhythm management (CRM) space.

Gerbsman Partners provided Crisis Management and Investment Banking leadership, facilitated the sale of the business unit’s assets and its associated Intellectual Property. Due to market conditions, the board of directors made the strategic decision to maximize the value of the business unit and Intellectual Property. Gerbsman Partners provided leadership to the company with:
Crisis Management and medical device domain expertise in developing the strategic action plans for maximizing value of the business unit, Intellectual Property and assets;

  • Proven domain expertise in maximizing the value of the business unit and Intellectual Property through a Gerbsman Partners targeted and proprietary “Date Certain M&A Process”;
  • The ability to “Manage the Process” among potential Acquirers, Lawyers, Creditors Management and Advisors;
  • The proven ability to “Drive” toward successful closure for all parties at interest.

About Gerbsman Partners
Gerbsman Partners focuses on maximizing enterprise value for stakeholders and shareholders in under-performing, under-capitalized and under-valued companies and their Intellectual Property. Since 2001, Gerbsman Partners has been involved in maximizing value for 68 Technology, Life Science and Medical Device companies and their Intellectual Property and has restructured/terminated over $795 million of real estate executory contracts and equipment lease/sub-debt obligations. Since inception in 1980, Gerbsman Partners has been involved in over $2.3 billion of financings, restructurings and M&A transactions.
Gerbsman Partners has offices and strategic alliances in San Francisco, Boston, New York, Washington, DC, Alexandria, VA, Europe and Israel.

Read Full Post »

As a technology scout, I often look for new behaviors of consumers in order to predict technology evolutions. After some time looking into the GroupOn trend, I have started to form a mental understanding of sorts. The stakes are high and the social shopping trend presents a new prosperous businessmodel and most large online companies are making the move to harness the trend. Let me explain the separate parts that forms my picture and what it all means.

1. eBay – the online fleamarket.

Looking at what today is widely accepted as a stunning success and moneymachine – eBay took the private entrepreneur online. Craigslist and similar services continue to provide broad audiences for the private seller. The shift from paper to online generated a larger audience and more interest for the second-hand market.

2. Facebook – networking our life.

Through the introduction of online social networks like Friendster, MySpace, Bebo, Twitter and Facebook, personal networks got joined together online. The effects of “Faceboking” you social life is a transparency that newer been visible before. New “check in” services from GPS enabled mobile devices further expose our location and automatically connects us with unknown people on the same location.

3. iPhone – making applications smarter.

As mentioned above, “check in” services like “Places” on Facebook, Loopt, Gowalla and Brightkite brought the social context to the mobile device though their “check in” features. Together with Twitter and Facebook mobile, the social and contextual dialogue is more and more becoming a way of using the technology.

The New, New Market!

So, based on these three separate innovations,a new market is emerging – Social Shopping. Sure, not all new in its core – Amazon have for long had recommendation and 3:rd party providers of used products. But, if I look closer on the trend, and take into consideration the companies that have announced that they are testing similar products – it will be a fierce battle ahead.

GroupOn is the one stealing all the headlines right now, IPO rumors are spreading and the race is on for becoming the leader of the pack. Nr. 2 on the market – Living Social are playing catch up. Recently I was invited to sign-up for Facebook Deals, a service originally launched last year and currently going through updates similar to GroupOn and Living Social. Goggle is testing its Google Offers. Microsoft is using it´s Bing to for similar services.

What does it mean?

What does all this mean you might think. I fell it’s a contextual shopping trend that moves the web 2.0 into a truly social value experience. If you are shopping for something and have the mobile device, you will be able to utilize your location and seek out good deals close to where you are, when you want it. The technology evolution exemplified by iPhone and Android phones with location awareness embedded is the technology enabler. Facebook networks are the social context and audience for spreading the word and eBay entrepreneurs can chase deals and post them on the social shopping sites to generate a self-serving ecosystem that becomes a machine in it self.

One might think that this technology trend, contrary to social networks of relationships (which are personal and limited) like Facebook, have enough room for more than one or two major services. As the trend relies on action rather than relation, its a active usage and active user who drives the equation – on Facebook, it’s all a matter of who you know.

Implications

The biggest question for me is if Facebook will succeed in incorporating their Facebook Deals service into the private social networks as a natural extension of smaller, often local groups of a few hundred people, as seem to be the norm of the personal networks on Facebook. If they succeed, they will steal the market from the pioneers like GroupOn and Social Living and further solidify their position as the premier social destination on the net, if not Facebooks value will decline as a result and focus might shift. Google, Amazon and Microsoft will steal their fair share of the market place, as they own large audiences and often “host” a mature audience searching for little less cool and less hip offerings – with high trust and reliability.

The race is on!

Read Full Post »

Article from GigaOm.

“A few years ago, Jeff Jarvis, a good friend of mine, published a book called What Would Google Do? When he wrote that book, Google had an aura of invincibility. Fast forward to today: Thanks to Facebook, it doesn’t seem so invincible. The new social web has passed it by. So, the question today is: What should Google do?

I’ve always maintained Google has to play to its strengths – that is, tap into its DNA of being an engineering-driven culture that can leverage its immense infrastructure. It also needs to leverage its existing assets even more, instead of chasing rainbows. In other words, it needs to look at Android and see if it can build a layer of services that get to the very essence of social experience: communication.

However, instead of getting bogged down by the old-fashioned notion of communication – phone calls, emails, instant messages and text messages – it needs to think about interactions. In other words, Google needs to think of a world beyond Google Talk, Google Chat and Google Voice.

To me, interactions are synchronous, are highly personal, are location-aware and allow the sharing of experiences, whether it’s photographs, video streams or simply smiley faces. Interactions are supposed to mimic the feeling of actually being there. Interactions are about enmeshing the virtual with the physical.

In a post earlier, I outlined that with the introduction of its unified Inbox, the constantly changing Facebook had shifted its core value proposition from being a plain vanilla social network to a communication company. Here’s a relevant bit from that post.

Facebook imagined email only as a subset of what is in reality communication. SMS, Chat, Facebook messages, status updates and email is how Zuckerberg sees the world. With the address book under its control, Facebook is now looking to become the “interaction hub” of our post-broadband, always-on lives. Having trained nearly 350 million people to use its stream-based, simple inbox, Facebook has reinvented the “communication” experience. …. Facebook as a service is amazingly effective when it focuses all its attention on what is the second order of friends – people you would like to stay in touch with, but just don’t have enough bandwidth (time) to stay in touch with. Those who matter to you the most are infinitely intimate, and as a result you communicate with them via SMS, IM Chat and voice. So far, this intimate communication has eluded Facebook. The launch of the new social inbox is a first step by Facebook to get a grip on this real world intimacy.

In 2007, I had argued that the real social network in our lives was the address book on our mobile phone. Google has access to real-world intimacy – the mobile phone address book – thanks to Android OS. All it has to do is use that as a lever to facilitate interactions.

In order to understand Google’s interaction-driven social future, one doesn’t have to look far: no further than Apple’s iTunes app store.  As you know, I have switched from BlackBerry to the iPhone, and as a result, I’ve been looking for a BBM replacement, and have been playing around with a score of apps.

In the process of searching for this app, I came across an app called Beluga, which essentially allows me to connect to my friends. And then I can create Pods (essentially Groups) with one or more of my friends. Sort of like what I did on BBM. Except, there’s more to Beluga.

It taps into my social graph (Facebook); it leverages my location, and it allows me to share photos as part of the messaging process. It’s a beautifully designed application that’s very inviting – and the experience is less communication, more interaction.

What’s beautiful about Beluga is it’s as personal and private as you want it to be. It’s just ironic that Beluga was co-founded by three Google engineers — Ben Davenport, Lucy Zhang and Jonathan Perlow — and if you see their bios, it is hardly a surprise that they ended up with an interaction-centric product like Beluga.

Yesterday, I was introduced to a new app called Yobongo, and it comes from a San Francisco startup co-founded by alumni of Justin.tv. It’s a good-looking application that leverages your location, allowing you to find people around you and to chat with them. It is at the extreme opposite of Beluga: It’s open, and you can chat with anyone. It is very real-time in nature. Of course, there are other apps like Yobongo: MessageParty, for example!

What’s common between these two apps is their ability for synchronous messaging. This messaging can, in turn, become the under-pinning of what I earlier called interactions.

Ability to interact on an ongoing basis anywhere, any time and sharing everything, from moments to emotions – is what social is all about. From my vantage point, this is what Google should focus on. If not — you know it very well — Facebook will.”

Read the original post here.

Read Full Post »

« Newer Posts - Older Posts »