Setting up for a good acquisition

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“Preparing for a Successful M&A Exit”

Google’s $1.6 billion acquisition of YouTube sprang to life during breakfast at Denny’s just a few short weeks ago – or so the story goes. For this and many other reasons, the YouTube deal is really the exception rather than the rule of M&A today.

There is an old saying: a product well bought is half sold. The most successful software acquisitions are those which are carefully crafted well in advance. Understanding today’s M&A landscape and the new standards involved will help emerging companies ensure a strong exit.

Key points are:

  • Start Early
  • Be Prepared
  • Say “No”
  • Be Patient
  • Know the Buyer Landscape
  • Value Realistically
  • Go Early
  • Look Big
  • Be Ready for Audits
  • Know Your Buyer
  • Meet Deep

OCtunes is like iTunes for Local Music

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If you’ve ever looked online for Island music, you know that it’s pretty slim pickings. Well not any more. I went to OCtunes.com and found what they call the most island music on the planet. I liked the fact that I could listen to samples from a large selection of local artists. It’s like an iTunes for local music and you can buy the tracks you like or the whole CD. I think it’s a great way to sample and buy Island music online.

Hollow guarantee

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“Microsoft exec “guarantees” graphical superiority for 360 titles”

Talk about PR BS.

I’ve both an Xbox “Classic” and a 360. And the 360 titles are not “superior” to its own predecessor. While I love the 360 for its Media Center integration, the games are underwhelming. I’ve yet to see a game that really takes advantage of the supposed advanced architecture.

The battle against PS3 will definitely be interesting. I believe one of the keys will be how backwards compatible the PS3 will be w/ the immense base of PS2 software. The 360 is sub-optimal in this area and perhaps is an exposed flank.

We’ll see.

Funny and scary video

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Not sure what’s funnier/scarier, the video, or the fact that I’m guilty of at least 50% of the Nerd’s accomplishments?

Plenty of room for another Google – of video search

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“CastTV Will Revolutionize Video Search”

Arrington writes some pretty strong words about this one. I’m bummed I couldn’t play with it too. How will a Google-level video search engine change the current paradigm? Talk about the outdated program guide!

I’m just shaking my head

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“Demand Media raises $100M for Web site land grab”

Demand Media, the company pursuing the audacious strategy of buying up a bunch of generic Web sites that have no staff generating real content of their own — to throw advertising on them — has raised another $100 million.

No wonder why entrepreneurs new to fund-raising think they can raise $1M over lunch.

You know MySpace is big when Cops post a page

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“Police Department’s Web Site On MySpace

The Haverhill Police Department hopes to enlist the younger generation to help catch criminals by posting the department’s Web site on the popular MySpace.

Why not?

There’s gold in them thar food trays

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“Young Entrepreneur Turns Trash into Cash”

Phillip Tapia launched Tray Display Advertising Inc. into a business in 2004 from the basement of his home. Tapia designed and developed a new advertising concept that turned trash into cash. Tapia has agreed to sell advertising space on the tray liners (placemats) , that Wendy’s use to serve all dine-in customers.

My lesson here is that there’s oppty all around you. Just open your eyes.

Is podcasting a business?

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I have a personal interest in podcasting and so Podshow’s recent $15M B-round definitely raised my eyebrows. Assuming that purchase was for 20% of the company, that’s pegging their valuation at about $75M. That implies that they think they will be worth $750M in 5 years. (These assumptions are just taking basic VC rules of thumb like a 10x return in 5 years and never sell more than 20% of the company at any given round).

Assuming that DAG Ventures is not stupid, this seems to indicate that Podshow may in fact be on to something. It must also mean that advertisers are happy with their podcast advertising ROI.

I always wondered how well a podcast audience responds to the right kind of advertising. This seems to indicate that people aren’t hitting the fast forward button (as I do).