HandHeld Adopts Google-Like Acquisition Model

HandHeld Entertainment Inc. (ZVUE) recently acquired YourDailyMedia.com for $1.06 million. The site attracts more than 1.8 million unique visitors per month and generated more than 5.8 million page views in November.

HandHeld's business plan of acquiring well trafficked sites and then fully monetizing the sites through increased advertising seems to be in full effect. The addition of YourDailyMedia.com adds to Handheld's acquisition of Dorks.com, which was acquired for $1.5 million in November and represents the company's commitment to its growing online network of comedy/humor web sites. Run by Google founder Larry Page's brother, Carl, Handheld is coincidentally taking the same approach as Google (GOOG) when it acquired YouTube's mass following of video users, investing in web sites with proven levels of traffic. Overall, it is a clever strategy because it presents new ways to generate ad revenue and at the same time, cross-promotional opportunities of other HandHeld products such as the ZVUE video player.

Investors will have to wait for the next earnings announcement to see if the strategy has paid dividends.

ZVUE 1-yr chart:

Comments

[SteveBardack]

You have to be kidding me. This is the biggest fraud going. The company did a PIPE at the beginning of 2006. Coincidentally, right around the time that the PIPE shares are freely tradable, the company makes a BS announcement that its pure-junk devices are available at Wal-Mart....but, guess what....they were not to be found in stock. Now walmart.com lists the product, but it is always out-of-stock…same with Amazon.com....

www.walmart.com/catalo...

No products = no sales. The company is rapidly running out of cash...as of last Q, the company had $3.9M in cash and has burned an average of $2.7M per Q for the last 3 quarters. Buying crappy websites and flaunting the name of the brother of Larry page does not make a company. Anyone remember Billy Beer?

This piece of junk is a zero.