NYT has been making small investments and acquisitions in the online space for the past few years, tipping its toes into the online waters. The Company’s biggest acquisition in this space has been About.com in March 2005, which has been paying off handsomely.
The Company has partnered with Monster which now powers the Jobs sections at NYTimes.com and Boston.com under a revenue share deal. The partnership is good, but would it be enough to set-off the falling advertising revenues from its jobs sections? Acquiring a Job site could be the way ahead, but then Monster is expensive and has a much higher market cap than NYT itself.
NYT already holds a 14% stake in Indeed. Other investors in Indeed include institutional investors Allen & Company and Union Square Ventures. It might make sense for NYT to expand its Indeed holding. >>>
SM: How did you finance the different phases of the company?
VH: Our company is funded by VCs, Accel and Lightspeed, and private individuals such as Jeff Bezos of Amazon.com and Bill Miller of Legg Mason.
SM: What financing stage are you at right now?
VH: We feel like we are fully funded, so we are not looking for more money at this time. If the opportunity arises, we will look at adding more funding.
SM: Describe some of your team building experiences. Is your management team complete now?
VH: Yes, we feel pretty good about where we are with the management team at this point. We have strong leads in product management, development and business partnerships. >>>
SM: Can you talk about suspect to prospect qualification? I know you are a world expert on this!
AS: Somebody who is a suspect, and you do not know whether they are qualified, you don’t know what questions to ask. In other words, don’t spend a lot of time asking a lot of questions that don’t lead to understanding that a person might not be qualified, before you get to the make it or break it question. You are trying to accelerate the sales process, not waste your customers’ time.
You need to rapidly understand if this is mutually a good fit. If you know your product does not work on Macintosh, but it works on PCs, you want to ask about their computing environment first. If you find out they are not a qualified prospect, you can end the call sooner. >>>
Here are a few technology stocks that I own and cover. My method had been investing in trends, and in markets that have momentum.
Akamai (AKAM) Coverage: Online Video Beneficiaries: Akamai and Level 3’s Impact on Akamai? Clearly, my bet is on the growth in Online Video, and how the network infrastructure needs to scale because of it.
Web 3.0 Framework discussion
Some NYT sites have very good contextual nuances. If you want to know how much calories you are taking in when you are having your favorite chocolate ice-cream or how much calories you have burned by jogging for 15 minutes in the morning or if you are looking for some low calorie diets then Calorie-Count.com is the place.
If you are looking for doctor comparison reports or nursing home comparison reports then UcompareHealthCare.com is the place for you. If you are looking for an antique poster or some news clip then NYStore.com could be of great help.
If you are planning to buy the latest plasma TV this Christmas and are confused about which one to buy, don’t lose sleep just read up on the great product reviews and comparisons on ConsumerSearch.com.
New York Times and NYTimes.com have the distinct trademark of the absolute highest quality content in most categories it covers. Boston Globe and Boston.com also have good content. About.com’s content is, relatively speaking, of lower quality.
SM: When you are touching the customer for the first time, how do you know what is the decision making process inside the account?
AS: By asking a question about their buying process. What is it going to take to try something new, or to adopt new technology?
SM: Of whom do you ask that question?
AS: To the person on the phone.
SM: Who is the person on the phone or what is the presumption about the person on the phone? >>>
SM: How big is the market? How do you calculate TAM? What is your business model?
VH: We believe the overall TAM is very large – Wikipedia is a good proxy. They are #6 on the Web in traffic. Our business model is ad supported and very robust as we have very targeted and high value ad inventory.
SM: What are your top target segments/verticals?
VH: Our flagship vertical is health. Today, we have 2.5 million unique visitors to our flagship property, www.righthealth.com and close to 10 million search queries a month. We are one of the top-tier health sites according to Hitwise. We have just launched betas for autos and travel with www.rightautos.com and www.righttrips.com and are getting good traction.
SM: So you are developing taxonomies by verticals, and then building out each node of the taxonomy. Interesting approach. >>>
There has been an explosive growth in digital content in the home and the office – from high-definition video, music, blogs and podcasts, to CAD and other large graphics files, and archived emails. The growing online video trend and the increasing popularity of YouTube and the likes is a major driving force for the increasing demand for massive amounts of hard drive storage. All the videos that get downloaded or uploaded need to get stored somewhere, right? In this post, I will analyze Seagate as an online video beneficiary.
Seagate Technology (NYSE: STX) is a leader in the design, manufacturing and marketing of rigid disc drives. Based in California, it has 54,000 employees, of which 43,000 employees are located in its Asian operations. It has around 3,857 U.S. patents and 761 foreign patents. Seagate acquired Maxtor in May 2006 and EVault in January 2007. The disc drive industry is undergoing consolidation with TDK acquiring Alps and Western Digital acquiring Komag in 2007. >>>