Today - Tuesday, December 10, 2013
4:51 PMDiscovery reportedly mulling bid for Scripps
- Variety reports Discovery's (DISCA) board discussed a possible bid for Scripps (SNI) at a Tuesday meeting.
- The magazine points out Scripps, which owns the Food Network, HGTV, and the Travel Channel, would mesh well with Discovery's own stable of "lifestyle-driven" channels. A merger would also give Discovery more leverage and bundling opportunities in talks with pay-TV providers.
- Scripps remains controlled by 24 descendants of founder E.W. Scripps. The heirs currently face restrictions on their ability to liquidate their holdings via public markets.
- SNI +9.6% AH. DISCA nearly unchanged for now.
2:27 PMSplunk buys network data capture startup
- Splunk (SPLK -1.2%) has acquired Cloudmeter, a developer of products that allow large volumes of data about corporate/data center network activity to be captured. Terms are undisclosed. (PR)
- Splunk plans to integrate Cloudmeter's technology with its machine data analysis software, and notes the former should strengthen the latter's value in IT operational intelligence/troubleshooting deployments (one of its core use cases).
- The purchase comes three months after Splunk bought BugSense, a startup that offered tools for analyzing the machine data produced by mobile apps.
1:41 PMGiant Interactive retains Morgan Stanley, D&F to consider take-private bid| Comment!
10:49 AMFission Uranium looks like a takeover target following Alpha deal
- Fission Uranium (FCUUF) completed its acquisition of Alpha Minerals, giving it full ownership of the Patterson Lake South discovery in Saskatchewan's Athabasca Basin, which Raymond James considers the last known "high-grade, easily open-pittable uranium asset left un-mined in the world," and which should operate with extremely low cash costs with plenty of exploration upside.
- Such attributes make it a top takeover target for the Basin's existing major producers, miners considering a Basin foothold, or even Asian nuclear utilities, the firm says: "Assuming exploration momentum continues, we would be surprised if a bid did not materialize in the next two years."
10:24 AMYahoo higher as Alibaba given $150B valuation; another startup acquired
- RBC's Mark Mahaney is now assigning Alibaba a $150B valuation, up from a prior $110B. That, in turn, implies a $36B pre-tax valuation for Yahoo's (YHOO +1.4%) 24% stake (up from a prior $26.4B), and has led Mahaney to hike his Yahoo PT to $44 from $38.
- Talks with Chinese companies and investors lead Mahaney to think Alibaba accounts for over 50% of Chinese online retail sales, and that the company's e-commerce services are complemented by "a highly effective and broad advertising monetization engine" for merchants.
- He also thinks Alibaba's cloud infrastructure (IaaS) offerings (bear a resemblance to Amazon Web Services) are gaining traction. Contacts suggest Alibaba already has "hundreds of thousands" of IaaS customers.
- Separately, Yahoo has made yet another acqui-hire. The target this time is QuikIO, developer of an iOS app that let users stream and download media files from their PCs. Not surprisingly, the app will be shut down, and QuikIO's team will join Yahoo.
- Yesterday: Yahoo reportedly eying image-hosting platform Imgur
9:53 AMMRC Global signs two deals to strengthen international business
- MRC Global (MRC +1.4%) makes two separate international acquisitions, including an agreement to buy Norway-based Stream, a pipe and valve distributor for the offshore oil and gas industry, for ~$260M.
- The deals are part of MRC's international growth strategy, which the maker of pipes and other products used by energy and industrial firms expects will help it reach its target of achieving more than $1B in global revenue by 2015.
- MRC's international sales were $567M in 2012, while Stream's 2013 revenue is expected to total $273M.
8:58 AMVitran to be acquired by Manitoulin Transport for $6/share| 1 Comment
8:17 AMPebblebrook buys San Francisco hotel
- Pebblebrook Hotel Trust (PEB) buys the Radisson Hotel Fisherman's Wharf - 355 rooms and 44K square feet of retail space - for $132M, with an expectation of spending $18M-$20M over the next two years to completely renovate the hotel.
- The hotel is expected to operate at 89% occupancy in 2013 with RevPAR of $165 and NOI of $11M. The retail space is 95% net leased with average rent/foot of more than $100. Pebblebrook estimates the hotel will generate $9.3M-$9.8M in NOI in 2014.
- Pebblebrook expects acquisition costs of about $2.1M and $1M of costs related to transition of the new management team.
- Press release
7:16 AMNovartis mulls swapping animal-health ops with another business
- Novartis (NVS) is reportedly considering an attempt to swap its animal-health division with a business owned by Merck (MRK) or another company.
- The Swiss firm, which apparently has little use for the cash that a sale or IPO would bring, has its eye on Merck's over-the-counter drug business, although it's not clear whether the latter would be open to such an exchange.
- Novartis' animal-health unit has drawn interest from German drugmakers Boehringer Ingelheim and Bayer (OTCPK:BAYZF), and from Eli Lilly (LLY).
6:40 AMTrunkbow enters going private transaction
- Trunkbow International Holdings (TBOW), a leading provider of mobile payment solutions and mobile value added services, has entered an agreement with Trunkbow Merger Group Limited, owned by TBOW Chairman Dr. Wanchun Hou and CEO Qiang Li to be acquired for $1.46/share, a 24.8% premium over the Nov. 1, 2012 closing price, prior to TBOW's announcement that it had received a "going private" proposal.
- Shares closed Monday at $1.19.
- Source: press release