MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
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Sunday, May 19, 2013
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2:09 PM Autodesk (ADSK) is acquiring Tinkercad, a developer of low-cost, web-based, 3D modeling and simulation tools. In tandem with the deal, Autodesk says it will revive Tinkercad's modeling service, which the startup recently said it would discontinue to focus on its supercomputer-powered Airstone simulation environment. Tinkercad's offerings will be added to Autodesk's 123D family of hobbyist-focused 3D design products, which now includes iPad apps. Terms are undisclosed. (other acquisitions: Firehole Composites, PI-VR, Qontext, Inforbix, Socialcam) Comment!
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1:49 PM More on Yahoo/Tumblr: Kara Swisher reports Tumblr founder/CEO David Karp "will stay at Yahoo for four years at least and retain much control over the service." There are concerns about how Yahoo will deal with Tumblr's mountains of adult content without alienating either users or advertisers; Peter Kafka argues they're overblown, since marketers decide which blogs to advertise on. Discussing comparisons between Tumblr and Yahoo's failed 1999 acquisition of Geocities, Tristan Louis notes Tumblr has seen top execs jump ship. But he adds Geocities faltered in part because a flood of ads drove users away; Tumblr seems to be avoiding that pitfall. 6 Comments
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12:25 PM Yahoo's (YHOO) board has approved a $1.1B all-cash deal to acquire Tumblr, the WSJ reports. (previous) 20 Comments
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Saturday, May 18, 2013
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11:57 AM "There are only four sources of high-quality maps," Google, Waze, Navteq, and TomTom (TMOAF.PK), says Rolfe Winkler, and given Facebook's rumored $1B acquisition of Waze, TomTom may become an attractive takeover target for the likes of Apple (AAPL) and others who, while able to drive a hard bargain on map licensing fees, may prefer to bid for the Netherlands-based company rather than worry that a rival will acquire it. TomTom trades at an EV/EBITDA ratio of just 6x. (From December: Rabobank puts AAPL/TomTom odds at 30%) 31 Comments
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Friday, May 17, 2013
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5:28 PM Accenture (ACN) is acquiring e-commerce/online ad consulting firm Acquity Group (AQ) for $316M, or $13/share, in cash. The price represents an 118% premium to Acquity's close today. Much like Accenture's recent purchases of Fjord and avVenta, the deal is about increasing Accenture's exposure to a burgeoning Web/digital marketing services space, and pitch more comprehensive solutions to CMOs and ad agencies. Accenture notes Acquity brings expertise in popular platforms such as Adobe and hybris. Acquity shares +111% AH to $12.56. Comment!
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4:17 PM More on Yahoo/Tumblr: Forbes' Jeff Bercovici reports talks are "proceeding rapidly and likely to result in an offer" as soon as Marissa Mayer can get board approval. He adds Mayer would prefer an acquisition over some other kind of deal, and is trying to allay Tumblr CEO David Karp's fears of being "absorbed into a behemoth." Tumblr is also said to have held talks with Facebook and Microsoft, but a lockup agreement with Yahoo makes them irrelevant. BI's Nicholas Carlson observes Tumblr sources who were happy to talk with him 3 weeks ago have gone silent. 2 Comments
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4:11 PM DirecTV (DTV) has joined the ranks of companies weighing a bid for Hulu (DIS, NWS, CMCSA), with an eye towards expanding its arsenal of TV Everywhere content, the WSJ reports. The scoop shortly follows a report Time Warner Cable and other MSOs are talking about a possible bid. Comment!
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3:03 PM Keep an eye on Dean Foods (DF +1%). Though the food company could see some choppy trading next week after it was dumped from the S&P 500, dealReporter notes there's plenty of M&A speculation around the name to keep shares perky. A market cap below $4B raises the possibility that a larger company could see DF as a bolt-on acquisition. Comment!
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2:34 PM Actavis' (ACT +1.5%) pursuit of Warner Chilcott (WCRX +0.5%) may be a way to defend itself from a potential takeovers by Valeant Pharmaceuticals (VRX +2.5%) and Mylan (MYL +2.2%). VRX routinely looks at potential acquisitions, but to date has stayed away from WCRX because of its dwindling pipeline, so a combined ACT/WCRX deal would be out of the picture. And it would be virtually impossible for MYL, with a market value of $11.7B, to buy the combined firm. It already has about $6B in debt and Street estimates put a combined companies near $21B. Comment!
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1:38 PM "There's no way" Sprint's (S) attempt to buy Clearwire (CLWR +0.6%) succeeds without a higher bid, says Taran Asset Management's Chris Gleason, one of many institutional Clearwire investors planning to vote against Sprint's $2.97/share offer at Tuesday's meeting. Reuters has uncovered investors holding 31% of Clearwire's public (non-Sprint-owned) shares who oppose the current deal; Sprint needs a majority of public shares to be voted in favor. Clearwire is trading 10% above Sprint's offer price, and 1% below Dish's $3.30/share offer price. (previous) 21 Comments
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12:48 PM Walgreen (WAG +1.3%) and Alliance Boots receive the regulatory clearances for their equity investment in AmerisourceBergen (ABC +0.4%). The clearances permit both to purchase up to 7% of ABC in the open market, and the exercise of two warrants for 16% in the aggregate in 2016 and 2017. Comment!
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11:23 AM While a razor-thin margin one way or the either is anticipated in next Monday's vote on Freeport McMoRan's (FCX) takeover bid for Plains Exploration (PXP), FCX shares could be poised to rise on either outcome. But all bets are off if FCX sees the bid on the verge of defeat and decides to sweeten the pot after saying it wouldn't do so. A higher offer could further pressure shares, already -16% since the deal was announced. Comment!
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11:14 AM Take this one with a grain of salt: an "industry source" claims Baidu (BIDU +1.6%) has reached a deal to buy Sohu's (SOHU +2.5%) Sogou search unit for $2B-$2.5B in cash and shares of Baidu's iQiyi online video unit. Though Sohu is rallying, the entire company still only has a market cap of $2.4B, indicating investors are as skeptical of this report as they were of Qihoo deal reports. Acquiring Sogou would pose integration challenges for Baidu, and (given Baidu's dominant Chinese search share) could also draw a regulatory response. (previous) Comment!
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9:26 AM The Outdoor Channel Holdings (OUTD) bidding war is over, with Kroenke Sports & Entertainment closing its acquisition for $10.25/share in cash after Intermedia walked away. OUTD will presumably be delisted today. Congrats again to SA Pro's Whopper Investments and Chris DeMuth who spotted this "Heads You Win, Tails You Tie" proposition at $8.75/share. 1 Comment
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Thursday, May 16, 2013
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11:56 PM Yahoo (YHOO) is in "serious talks" to buy social blogging service Tumblr for as much as $1B, multiple sources tell AdWeek. Kara Swisher also reports talks are happening, but is more circumspect, stating they could result in a partnership, investment, acquisition, or nothing at all. Tumblr, which claims 100M+ blogs and (as of Nov.) ~170M monthly visitors (up over 3x from Jan.), would give Yahoo a big source of user-generated content to integrate and monetize, and would strengthen its mobile presence. It would also (as Swisher notes) mesh with Yahoo's efforts to win back younger Web users. 9 Comments
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5:56 PM GT Advanced (GTAT +3.1%) has acquired "substantially all of the business" of Thermal Technology, a developer of thermal/vacuum equipment used to touchscreens, LEDs, medical devices, and other products. GT is issuing 3.4M shares (current value of $14.6M) to buy Thermal. The company asserts Thermal's annealing tech will help it develop sapphire manufacturing gear, and its spark plasma sintering tech has medical, space, and hybrid car applications. This seems an effort to diversify a bit from the slumping LED/solar equipment markets. Comment!
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4:31 PM Anaren (ANEN) says a committee of independent directors has reviewed and evaluated Vintage Capital Management's unsolicited $23 bid to acquire all of ANEN's outstanding stock, and after careful consideration, has concluded that the offer does not reflect the company's intrinsic value. The Committee will continue to review all strategic alternatives available, including a possible sale. Shares -1% AH. Comment!
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1:55 PM Quest Diagnostics (DGX +0.3%) moves to expand its lab business by acquiring the toxicology and clinical laboratory business of Concentra, a medical center operator owned by Humana (HUM). The business will be transitioned into DGX's national laboratory network of regional clinical and toxicology laboratories by the end of 2013. The the company also entered into a long-term agreement with Concentra to be its primary provider of workplace drug toxicology and clinical lab testing. Comment!
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1:29 PM More on Time Warner Cable (TWC -1.8%) - Hulu (previous): If Time Warner Cable takes a minority stake in Hulu it will become strange bedfellows with rival Comcast (CMCSA -1%) which owns roughly a third of the company - but the combination could energize the concept of nationally branded TV Everywhere platform, analysts say. Sources indicate another pay-TV company is also considering making a bid for Hulu. Stay tuned. Comment!
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11:07 AM Deutsche Telekom (DTEGY.PK) can sell its 74% stake in T-Mobile USA (TMUS +2.5%) prior to the end of an 18-month lockup period if it receives a buyout offer for the entire stake, says CFO Timotheus Hoettges. The comments seem to be giving a lift to the #4 U.S. carrier. T-Mobile CFO Braxton Carter recently stated his company wanted to extend the footprint of the MetroPCS brand by ~100M POPs over the next 6 quarters. T-Mobile is counting on 4G support to give MetroPCS an edge over prepaid rivals such as Leap (LEAP) and AT&T's 3G-only Aio prepaid service. 1 Comment
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