Andrew Horowitz

ValueClick: Federal Trade Commission Probe Deters Possible Buyers

Mr Savitz:

The truth is that there are many possible issues that companies in this sector could face from online advertising and related problems. The email laws are there to protect the consumer, but these pesky types are not the problem. The phishing and con artist masters are the central focus of the probe. VCLK is neither of these.

As the FTC is looking into one, surely they are looking into all. I am confident that the findings will provide a good outcome as there is no reason for a company to openly lie, cheat or steal as they are on the radar. Remember, this is not a mom and pop shop.

The recent MSFT acquisition of AQNT is just one more reason to realize that the 1998 reports by the Gartner Group are become realizations, The online experience is now approaching the expected outcome that they predicted. MSFT went after AQNT aggressively and without hesitation, though the price was off the wall. In fact, the largest MSFT has done for a LONG TIME.

So, even f there are some loose ends, VCLK is a gem and if history shows anything, it is that VCLK can fetch a hefty premium.

The premium can come in the form of an offer to buy at some ridiculously high amount (40-50%?) or a lesser amount (20%?) with forgiveness of anything that could be considered "loose ends."

Yahoo! is the last man standing with VCLK the last choice, still ripe for a takeover. Will they do so with a cloud hanging overhead? If they are smart ...YES! The timing is perfect and they could get the company for a nice discount. If they are cleared of all potential issues, I feel bad for the short-selling crowd. Watch out ABOVE!

* H&C Clients are Long VCLK *

Andrew Horowitz, CFP

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