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Bazaarvoice (BV -16%) fell hard in afternoon trading on news the DOJ has filed an antitrust suit...

Bazaarvoice (BV -16%) fell hard in afternoon trading on news the DOJ has filed an antitrust suit related to the company's completed acquisition of rival PowerReviews. Arguing the deal diminishes competition in the market for online product ratings/review platforms, the DOJ wants Bazaarvoice to divest assets in a way that will create a new competitor.
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  • Just gotta luv the market brought it down almost exactly 3 months(10/11/2012) to the anniversary of downtrend commencement. I don't own this but it is definitely going up 2morrow. Already close to midpoint s2 - s3 monthly pivot of 7.38. Will be getting into it 2morrow if permitted cos i know most weaker shorts will not be holding over the weekend. Entry for me would be between 7.40 - 7.44. The Anti trust case is not an immediate biggie and should not crush the stock this bad. Don't know the intrinsic value of the company but i know the charts call 4 a bright 2morrow.

     

    Here's the case "
    WASHINGTON--Bazaarvoice Inc.'s (BV) shares dropped more than 15% after the
    Justice Department filed an antitrust lawsuit Thursday challenging the
    company's June 2012 acquisition of rival PowerReviews Inc.

     

    The department said the $168 million deal harmed competition in the market
    for online platforms that retailers and manufacturers use to collect and
    display consumer-generated reviews on their websites.

     

    Bazaarvoice, based in Austin, Texas, is the market-leading platform provider,
    and PowerReviews was its closest competitor, the department said.

     

    The lawsuit, filed in a San Francisco federal court, alleges Bazaarvoice's
    deal to buy PowerReviews was a "calculated" move that eliminated the company's
    most significant rival "and effectively insulated itself from meaningful
    competition."

     

    The suit seeks to restore competition that the department alleges was
    eliminated by the transaction. It requests that a judge force Bazaarvoice to
    sell assets that will be "sufficient" to create a "separate, distinct and
    viable" competing business.

     

    The department said it didn't begin its investigation until after the
    transaction closed because the deal wasn't reported to U.S. antitrust
    authorities before it was consummated.

     

    Bazaarvoice didn't immediately respond to a request for comment."
    10 Jan 2013, 04:25 PM Reply Like
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