Microsoft to Rescue the Yahoo Damsel in Distress

Yahoo!’s vulnerable situation was bound to bring out acquisition offers, and Microsoft has been sniffing at the company for a year (see the letter from Ballmer to Yang in the WSJ). I was hoping against hope that Private Equity would step up to the plate, recognizing the leverage opportunity, but it has not happened.

Deal Radar 2008: Tagged In Exit Freeze Danger Zone?

Tagged, launched in 2004, is a rapidly growing social network for teens aged 13 – 19. It is quickly becoming the number one teen site. The site’s early innovations include the use of slides and YouTube as a part of its graphical interface. In February 2006, Tagged raised $7 million in its first venture capital

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Deal Radar 2008: Twitter Gaining Momentum

Twitter is a micro-blogging site that has taken the web by storm. It is a social network that allows users to post “status update” messages either through the web, instant messenger or through a text message from a mobile phone. An update can be a maximum of 140 words. It could be of the nature,

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Time For Private Equity At Yahoo

Predictably, Yahoo (Nasdaq: YHOO) posted a 23% drop in its 4Q07 profit and forecasted 2008 revenues that were below the Street’s expectation. The stock was down over 10% in after-hours trading. The market cap has eroded to the tune of $25 Billion in the last two years. So how do we play the stock going

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Deal Radar 2008: Figleaves and Specialty e-Tail

(I want to preamble this piece by saying that when you read it, please don’t be surprised if Google AdSense starts pushing lingerie ads to you. It is not a very smart algorithm!) Figleaves.com is the world’s largest online retailer of branded intimate apparel. It includes Aubade to La Perla to Zimmermann. Users can shop

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Deal Radar 2008: Zappos Wants to be Amazon When it Grows Up

You have heard me talk about the verticalization of the web. Here’s a good example of a brand built on that premise. Zappos.com is the #1 online footwear retailer. Apart from retailing around 1,100 well known brands of shoes, boots, sandals, and athletic footwear, it also retails accessories including socks, wallets, belts, designer handbags, and

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Deal Radar 2008: eHarmony Replacing Yenta

eHarmony is an online dating/matchmaking site that uses its patented Compatibility Matching System™ to match singles. In November 2004, eHarmony raised $110 million in a Series B round of financing from Sequoia Capital, Technology Crossover Ventures and Tuputele Ventures. It had earlier raised $3 million in Series A from Sarofim Fayez and Co.

Will Netflix Survive iTunes Movies?

Amidst weak economic conditions, Netflix reported a solid 4Q07 beating the street’s expectations. Revenues in 4Q07 was $302.4 million, up 9% y-o-y. Gross Profit margin was 33.8% compared to 38.9% a year ago. Net profit increased to $15.8 million, up 6% driven mainly by a 9% q-o-q decline in Subscriber Acquisition Cost (SAC) to $34.60,

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