Widely read TechCrunch says Gannett is buying BLiNQ Media -- the Facebook advertising software and service -- for as much as $92 million over a period of three to four years, with a quarter of that amount, $23 million, coming up front.
TechCrunch is citing "two very reliable sources," plus a third anonymous source.
The report says: "We hear the purchase agreement has been signed and the pair are now marching towards a close at the end of this month. The rationale behind the deal is clear: when brands buy ad placements on Gannett properties, it could use BLiNQ to also sell them ads on social sites and collect a solid margin."
A deal worth this much money would be one of the largest I can recall GCI ever signing. The only one approaching it would be the reported $100 million the company paid in 2005 for advertising services subsidiary PointRoll.
The figure would also be especially rich following CEO Gracia Martore's remarks to Wall Street analysts during last month's quarterly conference call, where she said investments in "strategic initiatives" were expected to total only $10 million to $15 million in the third quarter.
"We'll make some strategic investments that make really good sense that we're able to monetize very quickly," she said.
BLiNQ was launched in 2008, and is based in New York City.
The report says: "We hear the purchase agreement has been signed and the pair are now marching towards a close at the end of this month. The rationale behind the deal is clear: when brands buy ad placements on Gannett properties, it could use BLiNQ to also sell them ads on social sites and collect a solid margin."
A deal worth this much money would be one of the largest I can recall GCI ever signing. The only one approaching it would be the reported $100 million the company paid in 2005 for advertising services subsidiary PointRoll.
The figure would also be especially rich following CEO Gracia Martore's remarks to Wall Street analysts during last month's quarterly conference call, where she said investments in "strategic initiatives" were expected to total only $10 million to $15 million in the third quarter.
"We'll make some strategic investments that make really good sense that we're able to monetize very quickly," she said.
BLiNQ was launched in 2008, and is based in New York City.
In Gannett's current situation, is this a case of the blind leading the BlinQ ?
ReplyDeleteThis is a really exciting development for Gannett if it's correct. Blinq has a lot to offer a business like Gannett and could open up a great new growth market.
ReplyDeleteGood move in my view.
So we can't cut dividends, we can't write new commercial paper, and we can't layoff that many people - I guess we're going to have to dip into the Crystal Palace Ice Cream Fund.
ReplyDeleteHow long before Gannett screws this up too?
ReplyDeletePray it covers its costs.
ReplyDeleteCan you believe people found fault with this purchase so quickly? The haters hate the fact that Matore is doing exactly what she said she'd do. Wait until they see the new USAT website. Their heads are going to explode. They will post how awful it is but they will secretly love it. Go Larry, go Larry!
ReplyDeleteFail
ReplyDeleteThe conference call q-and-a cited had to do with Q3 operating expenses related to implementing the strategic initiatives that have been discussed since at least investor day. Neither question nor answer had anything to do with the magnitude of potential acquisitions.
ReplyDeleteWon't work. Not a chance.
ReplyDeleteIf my company were using that product, I would tell the troops to start familiarizing themselves with the alternatives. Not to say things can't work, it will just be tough though. Integrating smart young developers(who probably just got rich) into dinosaur companies and cultures is an uphill battle. Those guys thrive on speed, smart peers, lack of bureaucracy, transparency, control, and sharing the rewards. Those are pretty scarce around here. This is not a comment on Gannet management, as much as a question; what can Gannet do for the folks that got BlinQ where it is today? They have probably gotten the low hanging fruit and will be off to something new as soon as the new wealth sinks in. Google or FB as buyers would bring a totally different set of risk/reward to the table. That would be an environment those guys could thrive in.
ReplyDeleteImagine the conversation between the lead developers and the new management about getting the "Deal Chicken" inserted into the platform and giving it a prominent and advantageous position on the platform. Actually, think about the private conversation between the BlinQ guys at the bar about the conversation they just had with the new owners. I hope Gannett didn't just get Faceberged.
5:48 what a weirdo. Obviously a newbie.
ReplyDeleteDoes this mean more senior vice presidents? I sure hope so.
ReplyDelete12:06 you speak the truth.
ReplyDeleteWe can buy technology firms but we have a culture that is counter to high tech.
On the surface, I like this purchase, since I'm the guy bitching about having a 21st century business plan. Why reinvent the wheel? I do agree with some of the posters that Gannett has to let BlinQ do what it does with little or no interference. Listen up Crystal Palace, don't mess with their success, let them earn money for the big G their way
ReplyDeleteTotally agree with the hands-off recommendation about Gannett management and BLiNQ. Gracia, don't be tempted to act like you're the smartest person in the room with these people, you're not. They're the creative talent and have apparently done well enough to get your attention. They don't need your intervention or grandstanding, they need GCI's capital to fund development of better ideas that make even more money. In the words of those famous English lads with the long hair, "Let it be".
ReplyDeleteThe misleading statement in this post concerning the size of the deal still hasn't been corrected.
ReplyDeleteWhich misleading statement?
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDelete5:48,
ReplyDeleteI've seen the new web site and so have hundreds of clients. Their response: YAWN.
Gannett has $92M laying around for acquisitions??
ReplyDeleteMust be from all those furloughs I had to take.
Soooo glad I hopped off that sinking turd.
and to the staff at Blinq...those who won't be slashed when the company you worked for becomes another homogeneous pod withing GCI....you may want to Google "Gannett+Furlough"...then get your resume ready.