ValueClick Inc. (VCLK)
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- All Comments on VCLK
- General Discussion on VCLK
- Google Launches ValueClick Killer [view article]
- Valueclick: Great Business with Tough Competition [view article]
- Cramer Sees the Light - Cramer's Mad Money (9/4/08) [view article]
- Wall Street Breakfast: Must-Know News [view article]
- Earnings Preview: ValueClick [view article]
- Big Spender Netflix Cuts its Web Ad Budget [view article]
- Key Datapoints on Internet Advertising and Content from The New York Times Co. [view article]
- Wall Street Breakfast: Must-Know News [view article]
- Internet No Longer Immune to Economic Slowdown [view article]
- How Will Display Ad Slowdown Affect Yahoo, AOL? [view article]
- Thursday Options Outlook: ZION, KEY, JEF, AKS, DIA, RIO, NVDA, VCLK, BIG [view article]
- ValueClick: Has the Hunted Become the Hunter? [view article]
loading ...Recent VCLK Articles
- Daily Market Outlook: Sharp Losses Expected
- Valueclick: Great Business with Tough Competition
- Wall Street Breakfast: Must-Know News
- Earnings Preview: ValueClick
- Weekly Wrap-Up and Preview: July 28 - August 1
- Big Spender Netflix Cuts its Web Ad Budget
- Key Datapoints on Internet Advertising and Content from The New York Times Co.
- Internet No Longer Immune to Economic Slowdown
- How Will Display Ad Slowdown Affect Yahoo, AOL?
- ValueClick, LookSmart: Trouble in Online Ad Market?
- Full List of Articles »
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Google Launches ValueClick Killer [view article]
Google is susceptible to click fraud.Bots that crawl pages can be programmed to act like humans. After reading # ISBN-10: 0735605653, I came to the impression that one day I would wake up and Google stock would be worthless. I am surprised that neither Microsoft nor Yahoo launched an attack from some eastern block country or China.
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Google Launches ValueClick Killer [view article]
Google is making sure that nobody manages to catch them. ReplyValueclick: Great Business with Tough Competition [view article]
Great article! Some interesting additional info on VCLK and their seemingly very valuable patents in another article here yesterday.Back in June, I wrote an article titled Why AOL’s “Platform A” May Not Make the Grade. The article discussed a series of changes being made by AOL to position itself as the world’s largest and most effective advertising network, building on its industry-leading Advertising.com network and the recent acquisitions of TACODA, Third Screen Media, Lightningcast, Adtech, Quigo and Bebo, collectively purchased for about $1.5 billion dollars (according to a recent interview with Lynda Clarizio, President of Platform A.) This realignment marked the final stage in AOL's transition from an access business to a global, ad-supported web company.
This new entity, Platform A, says it is offering advertisers access to the most sophisticated targeting and measurement tools available in the marketplace across Platform A's unmatched network of third-party sites, as well as AOL's owned and operated sites. According to comScore Media Metrix, Platform A is said to already reach more than 90% of the domestic online audience. Platform A builds on the success of Advertising.com, which operates the largest third-party display network, and integrates behavioral targeting leader TACODA, Third Screen Media, which operates the largest mobile media network, market leading video ad serving platform Lightningcast, and ADTECH's global ad serving platform.
Previously, I pointed out that I believed a possible material weakness existed in Platform A, one that had the potential to impact its entire structural integrity. That weakness is a lawsuit in which Modavox, (MDVX.OB) a small Phoenix Arizona based company, is suing Tacoda for patent infringement. I believe these patents were issued in 2002 (an interesting date as you will note below in relation to Be Free’s purchase by ValueClick (VCLK)) and 2007 respectively. Their issuance calls into question just who owns the behavioral targeting technology Platform A is both leveraging and dependent on for the monetization of its entire business plan.
Despite the suit having been filed prior to the actual closing of the Tacoda acquisition, AOL management apparently dismissed its relevance and proceeded to close the acquisition for a reported $275 million. Could this prove to have been a costly mistake for Time Warner (TWX) shareholders? If it’s proven that this little company does in fact own the patented technology that AOL thought they were buying with the purchase of Tacoda, then one must certainly wonder if this costly mistake could serve as cause for a potential shareholder action? Interestingly enough, in the legal section of Time Warner’s last filing, I saw little to no mention of this issue disclosed within.
Perhaps AOL’s management and Lynda Clarizio aren’t concerned about Modavox’s patent infringement suit? In my last articlem I posed the question “what happens if they lose this suit and can’t use Tacoda technology anymore?” Perhaps they view this as just one isolated suit by a little guy trying to cash in? Don’t be so sure. Enter ValueClick.
According to MediaPost, ValueClick has previously filed and settled lawsuits against Blue Lithium and Revenue Science for patent infringement on the general principles of behavioral targeting. Now, ValueClick has filed a similar infringement lawsuit against Tacoda. The patents at issue, one issued in 1998 and the other 1999, both deal with creating behavioral profiles of web users.
Ian Lee wrote a nice article containing some interesting commentary called “The End of Behavioral Targeting as we know it” Interestingly, he comments that in 2002, ValueClick acquired Be Free in a deal valued at $128 million. Many had long wondered why the high price tag was paid for Be Free hot on the heals of the Internet bust. Six years later, the real reason for the high price tag has become very clear. The real value in Be Free wasn’t its affiliate platform but the two behavioral targeting patents that it holds, the same two patents they are now leveraging against Tacoda.
One must assume ValueClick views these patents as far more valuable today than the $128 million they paid for them six years ago. It’s likely anyone seeking to acquire those same patents now could expect to pay a multiple of their original sales price. Perhaps AOL’s purchase of Tacoda for $275 million might be a good starting point, or the $300 million Yahoo (YHOO) paid for Blue Lithium. Wait, does either of those companies even own any patented technology for behavioral marketing or targeting? Based on ValueClick’s already settling with Blue Lithium and Revenue Science, and both Modavox and ValueClick going after Tacoda, it would appear not.
So ValueClick owns two patents and Modavox owns two patents (with a couple more rumored to be pending), all seemingly critical to the process of behavioral targeting and marketing. According to David Morgan, Founder of Tacoda, behavioral marketing could jump from $700 million last year to about $10 billion in 2013 making the stakes very high. Both companies are currently suing Tacoda, owned by AOL, for patent infringement through the alleged use of their respective patented technology. Are these patents enforceable, they certainly appear to be. Are they valuable, again they appear to be. But what is the difference between the ValueClicks and the Modavox patents? Ah yes, the million dollar question!
To the best of my understanding, ValueClicks patents acquired for $128 million in 2002 are again related to creating behavioral profiles of web users. It would appear they involve the process of gathering data which then may be used to better target the consumer via online advertising. Modavox’s patents on the other hand relate to the customization of content or what you do with the data once acquired.
In other words, when companies like Tacoda and perhaps even ValueClick procure the information, it appears that it’s Modavox’s patented technology which allows the actual advertisement to be tailored to the consumer based on that data. So perhaps ValueClick owns the front end of the behavioral marketing process while Modavox appears to own the back end. This begs the question “what is the all the behavioral data in the world worth if you can’t monetize it through custom tailoring of advertisements?”
It also begs the question if AOL acquired Modavox, would this potentially help them in their suit with ValueClick? Just a few of the question I’d love to ask Mr. Falco and Ms. Clarizio.
As we see a continued proliferation of advertisers shifting their ad spend online, advertisers will continue to seek and demand that their message has a reasonable chance of reaching their intended target audience. Gone are the days when advertisers will accept the old “Spray and Prey” methodology of online advertising. It is valuable patented behavioral technologies like those owned by both Modavox and ValueClick, which facilitate this all important process.
Again, until this important question of just who the rightful owner of this important technology is. I expect Platform A will continue to fail to make the grade.
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Google Launches ValueClick Killer [view article]
Wow all I can say is ABOUT TIME!CJ works well but with Googles resources obviously this will end up being much bigger and better. I wish I had received this email as well but unfortunately I did not. Thanks a bunch for sharing I will be waiting for this. Reply
Valueclick: Great Business with Tough Competition [view article]
New trends and patents in behavioral targeting will help VCLK maintain competitive edge. ReplyCramer Sees the Light - Cramer's Mad Money (9/4/08) [view article]
cramer could't see the light on a bright sunny day...why is not recommending the short etfs???? SDS (short S&P) and QID(shortQQQ) have been kicking ass over the last few days...on the long side UWM (longRussell2000) why not hedge oneself this way instead of the dogshit stocks he recommends....the Dow is stuck in a 1000 point trading range (10800 - 11800).....until a significant breakout is confirmed in either direction...playing the technicals with SDS, QID and RUT is the way to go....invest to make money...cramer is all about entertainment and nothing else..he couldn't tell stock analysis from paralysis...which is what he is doing to the uneducated investor..WMT is moving up because people that don't shop there normally do so now because they have significantly reduced their budgets in line with this tough economic cycle....the light may be on, cramer....but there's nobody home...
swap out of HRB for BAC...BAC has quadruple the dividend yield and the CEO does not plan to cut it...and the board approved to spend $3.75B over the next 12 to 18 months to buyback stock...BAC made, yes made $3.41B in Q2...the thinking is clear here....cramer..do your homework,,, Reply
Cramer Sees the Light - Cramer's Mad Money (9/4/08) [view article]
HR Block.....well maybe he is "right' this time on this one! I own this and have held long-term and done pretty well so far...............but would love a bigger dividend payout! ReplyCramer Sees the Light - Cramer's Mad Money (9/4/08) [view article]
If seeking alpha is not affiliated with Jim Cramer then why promote him?If you listen and follow Jim's advice you should be almost broke. If you like entertainment talk shows with no substance then go ahead and watch him. Reply
Wall Street Breakfast: Must-Know News [view article]
Healthcare and legacy costs are partially to blame, but the UAW is, in my opinion, more of the culprit. I worked for Ford and experienced the ridiculousness of all of the red tape first hand. The UAW is nothing more than a leech. From the union reps who do nothimg more than walk the floor and shake hands, to the stupid rules pertaining to job classification, unions are a big reason why AMerican car makers are struggling. Hell, in my plant (Sterling Heights plant on Mound road for Ford) we had a guy making over 100k a year and he was a damn floor cleaner!On Aug 01 07:24 PM brian58 wrote:
> It isn't the unions that has caused the downfall of GM. It is healthcare
> costs for retirees. GM can compete against Toyota. It cannot compete
> against Japan. If we had universal health care coverage in this country
> and American companies could get out of having to offer healthcare
> benefits to it's employees then GM would be in better shape. And
> before someone starts screaming about socialized medicine let me
> state a few observations. Healthcare is not free. It costs money
> to provide good healthcare and money is a finite resource. Everyone
> has an obligation to take care of themselves by eating right, exercising
> and not smoking. (Tobacco companies use to get government subsidies,
> why shouldn't lung cancer patients) But every American citizen has
> a right to decent healthcare. One of the things that made America
> great was the availability of a free education to everyone, just
> not for the rich. Modern medical technology is expensive. Some CEO
> shouldn't get rich by saying no to the insurance company saying no
> to my medical care. Why would you want to be part of a society that
> put greed above the well being of it's citizens regardless of economic
> class. Let's have compassionate capitalism in America. Money isn't
> isn't evil but the love of money is or so they say. Reply
Google Launches ValueClick Killer [view article]
Now I understand more about cpa thanks ReplyEarnings Preview: ValueClick [view article]
Does anyone know what is going on with tech valuations?I presume that prices are going down because of the recession, and possibly the perception that tech co's sales growth is slowing dramatically with a global recession.
But these companies seem to be superb businesses in the traditional sense of the word - and seem to be undervalued, to the naked eye- ie valueclick has a TTM free cash flow yield of 15%
does anyone know what's going on, as I'm out of the loop...
Reply
Wall Street Breakfast: Must-Know News [view article]
It isn't the unions that has caused the downfall of GM. It is healthcare costs for retirees. GM can compete against Toyota. It cannot compete against Japan. If we had universal health care coverage in this country and American companies could get out of having to offer healthcare benefits to it's employees then GM would be in better shape. And before someone starts screaming about socialized medicine let me state a few observations. Healthcare is not free. It costs money to provide good healthcare and money is a finite resource. Everyone has an obligation to take care of themselves by eating right, exercising and not smoking. (Tobacco companies use to get government subsidies, why shouldn't lung cancer patients) But every American citizen has a right to decent healthcare. One of the things that made America great was the availability of a free education to everyone, just not for the rich. Modern medical technology is expensive. Some CEO shouldn't get rich by saying no to the insurance company saying no to my medical care. Why would you want to be part of a society that put greed above the well being of it's citizens regardless of economic class. Let's have compassionate capitalism in America. Money isn't isn't evil but the love of money is or so they say. ReplyWall Street Breakfast: Must-Know News [view article]
I worked for TWA and was a union member for 34 yrs. TWA went thru 2 bankruptcies. The I.A.M. slept with TWA. Unions are a waste at this time. They were great in the beginning but useless now.If you fly straight you don't need them. If you have problems there is the Labor Board. Reply
Wall Street Breakfast: Must-Know News [view article]
Splitting up SM and FM into private units to sell to the private markets assumes that there will be somebody to serve the tax payers best interest during the process. There has been a real shortage of concern for the tax payers during this debacle. Having Paulson, one of the true robber barons of our time heading the deal could be a reason. Having a group of entitled Ivy types telling us what they need to do to save us from what they were responsible for in the first place could be another problem. ReplyWall Street Breakfast: Must-Know News [view article]
long_on_oilThe reason that GM was "forced" to abandon future planning for high oil prices was unions? Certainly that is part of the equation, but it is disingenuous not to recognize also that trying to maximize income statements quarter to quarter is a major factor in the lack of proper longer term strategy.
Maximizing quarterly income results works great when the existing strategy is good for the long haul but can lead to disaster when the current strategy is short-sighted. Reply