jbs

The Long and Short of Idearc

David,
The shift towards online search engines and map services is absolutely the most significant threat facing the industry. I guess I assumed that people were aware of this.

I feel that the industry is going to have to deal with online competition. I don't know how it will unfold, how dramatic the shift will occur, but it will be important. If IAR was in better financial shape I would feel much more confident in its ability to address this competition.

So the point here wasn't so much to say that the industry has issues, but instead to point out that IAR may be too risky because the debt severely hinders its ability to adapt to what we expect will be a changing industry. More concretely, they won't be in a good position to buy their competitors, and they may not be able to invest in SuperPages.com as much as they may like.




Jordan
Think Intrinsic