Since everyone is assuming that News Corp. will be buying a search engine, I thought I would take a few minutes and go through their various options and see which search company makes most sense for Mr. Rupert Murdoch and Ross Levinsohn to acquire. Obviously, for a sale to take place, the acquired company must be interested in selling, we’ll assume for this analysis that all companies would be receptive. Moreover, we will try to take into account all of News Corp.’s online and offline assets when running through the list:
Google: Close, but no cigar. With a market of $110+ billion, Google is worth five times more than News Corp. So that will not work. An option would be for Google to become the de facto search engine on its site through a partnership, Google could conceivably offer News Corp. up to 100% revenue share, which would make it very lucrative for News Corp., note that this just might be the most likely scenario. The problem is that considering that News Corp. so boldly entered the Web with the acquisitions of MySpace and IGN, it would be almost a half gesture to simply strike a marketing deal.
Mamma: I used to work for Mamma back in 2000. Forgive the shameless promotion, but that’s where the plant for Mojo Supreme’s search product, MetaMojo.com, was planted. I do not like to say anything negative about a former employer, but despite Mamma’s most valiant efforts, it missed the boat. Mamma.com had 5 million when Google ws just starting. Note that I own shares in Mamma, but that is mainly because considering the company has a lot of cash on its books, the value the stock market assigns to it is almost $0. Anyway, suffice to say that if News Corp. bought Mamma, it would be like trying to kill a tiger with a fly swatter. I mean, how could they possibly expect to make a dent in search and take on Google, Yahoo!, MSN or even IAC’s Ask.com with Mamma.com? As a meta search engine, Mamma.com does not have its own web index. Moreover, as an aggregator, Mamma gets a cut of search revenues, it shares the rest with the underlying search engines, so that would be like News Corp. gets half the fly swatter, not even the whole thing!
Findwhat: Findwhat is like a bigger Mamma.com. It is worth some $100 million and while it offers interesting opportunities in global search and pay per call (which is going to “change the world”), it would not be the best fit for News Corp. for essentially the same reasons as Mamma.com.
Answers.com: Here things get interesting. Answers.com has grown quickly to become one of the largest websites online, let alone in search. But Answers.com is more of a reference tool, sort of a cross between Wikipedia and, well, maybe About.com? In other words, while it would be a fantastic addition to the portfolio of websites Mr. Murdoch and Levinsohn have assembled, it would not answers News Corp’s search problem, which is to both a) have a search technology and b) monetize search. In this case, it would be acquiring a great reference tool, but still have a problem with having a top level search engine with algorithms, crawlers and all of the bells and whistles that come with that.
Marchex: Founded by Go2Net wunderkind Russ Horowitz to basically attack the overlooked sectors in search (domain-parked traffic, essentially), Marchex would be an interesting choice, but not the best. I also doubt that Mr. Horowitz would want to sell the company anyway. Of note, Marchex itself does not have advertisers, it strikes deals with the Yahoo!’s and Google’s of the world and drives readers who type generic names into web browsers onto advertisers.
Looksmart: Now Looksmart is a company that just last year was on its deathbed. Quickly, it has managed a turnaround of sorts, and that is mainly to the development of vertical search products as well as the addition of some nifty reference tools. Looksmart was once a powerhouse in search, but those days are long gone and seeing News Corp. acquire Looksmart would not really solve News Corp.s’ problems. It would simply inherit problems. I bought shares in Looksmart at around the time it had an enterprise value of $6 million. The shares have almost doubled since.
Yahoo!: Note that like Google, Yahoo! is worth more than News Corp. Yahoo! is losing the battle in search to Google and could offer a lucrative deal to News Corp. such as the one outlined above in Google’s case. A Yahoo! / News Corp. marketing could make sense, as News Corp. could create sparks for Yahoo! and vice versa.
However, as the lines between old and new media get blurry, News Corp. and Yahoo! are increasingly competitors. So if News Corp. were to strike a deal with either Google or Yahoo!, Google might make more sense. I own shares in Yahoo!
Infospace: Believe it or not, Infospace makes a lot of sense for various reasons. Infospace has numerous search tools, such as Metacrawler, Dogpile. While these are metasearch engines, these would be advantageous to News Corp. as it will enable it to parse in content and results from its stable of websites. According to Infospace’s website, its Search & Directory operates a family of Internet properties that includes Dogpile, Switchboard, WebCrawler, Infospace.com and MetaCrawler. Infospace Search & Directory also powers Web search, along with online yellow and white pages, for a variety of Web sites.
Ask.com: owned by Barry Diller’s InterActive Corp., the only possibility would be for a merger between the two firms, and that is unlikely.
So, what is News Corp. to do?
It could after all invest to develop its own search engine but that would take years if it has not already started.
The easy option would be to strike a deal with Yahoo! and Google in the short term, but if it really wants to compete, then maybe its best bet is to acquire Infospace, not because of its search and directory properties alone, but because of everything else that Infospace has to offer. Note that I own shares in Infospace and would welcome that for sure.
Subscribe:
May 9th, 2006 at 11:07 pm
I do feel that FIM’s Mr Ross Levinsohn should have a good read of the following links, for starters.
http://www.topix.net/forum/business/search-engines/TKNLE97P40GOC70BL
And further extensive discussion, here …. CHECK from:
“The future of search”
http://bambi.blogs.com/bambi_francisco/2006/04/meatmarket_clea.html
There are many more reasons that can be discussed and it’s with respect that I don’t necessarily agree with your following expressed thoughts :
“…and seeing News Corp. acquire Looksmart would not really solve News Corp.s’ problems. It would simply inherit problems”.
Cheers !!
Ross.
May 10th, 2006 at 6:27 pm
“If YOU THROW ENOUGH MUD ……. A certain amount sticks”?
http://www.theregister.co.uk/2006/05/10/google_microsoft_redux/
And from the above article the point I’d like to make is ……
I have hinted a number of times, that Google’s fate remains in the hands of the ‘old world’ media. They helped make Google and when they are ready, they will in turn, “break” it accordingly.
The concept of a “content consortium” is more than just a thought. It will happen. Just as a world Govt will happen, in time. All forms of content, (traditional print, video, movies, etc) will be offered, shared and better utilised by network members (the partners) and accessed accordingly, by their growing “user” base.
Looksmart’s FindArticles is simply a “foundation” stone to underpin the building of the network. And Looksmart’s Furl will be an intrical “part”, where users will “find - save - & share” from around the web. (In a very much, similar fashion as bee’s operate, on their daily ‘work’ routine). The “honey”, being the articles of interest saved by Furl users from around the web will then be “indexed” within a Vertical, and rank on the Looksmart’s Vertical results pages, according to their popularity among users. The more popular articles attract more users seeking information on the subject matter and users attract adsence (whooops, in time, “contextualised”) advertisers, providing the necessary revenues. And it’s a concept that will continually grow. New ‘content’ is pushed out every minute of the day. People want to read it, save it and when ’shared’ enough times, the cycle is completed. And the ‘longivity’ of premium content, needs no further explanation.
It ’s a formality. Publisher & media Co’s have witnessed the growth of Google’s adsense over the past 3 or, 4 quarters from around $300m to $900M and are coming to take it away. As to whether it is one big network or, split into two or, more, who knows? Looksmart as a seemingly neutral type Co (both politically & socially) can and will accomodate whatever side of the camp (like a Switzerland of the internet) alliances, as they start to take shape. But “marriages of conveniences” already have many precedents with MSN dumping LOOK & choosing to work with YAHOO, (Overture), a prime example. A kind of .. “Cross polinisation”. I called it, this concept (some 3 - 4 years ago, too), co-petition or, working as, co-petitors!
Click fraud remains a “smoking gun” for Google and can be ‘resurrected’ when and as, old world media choose to raise this subject. It is and will remain the “flaw” in Google’s armour.
Newscorp, (and I’m sure they realise) have the opportunity to “rule the world” (or, at least, on the Net) and should also realise, that Looksmart has a precise role to play, in their doing so.
But, only as I see it.
Hunting around yesterday (and I do enjoy it) looking for potential “starters” in “any” (either side?) network “construction” site partners I went down the road of The NY Times’s late breaking news suppliers, Reuters and Associated Press. (The latter’s Boss, Tom Curley, if you recall, had a bit to say, of a content consortium formation. And Mr Rupert Murdoch himself, said he didn’t know whether they were developing a Portal or, a “network”, too).
I looked at both their existing lists of partners and checked just one or, two out to see if their was any “compatibilty” possibilities, re; a Looksmart involvement. I’m just going to “drop it” all on here now, and let readers make up their own minds, in relation to my further enthusiasm of a network or, two, possibilty. I now see NBC in the equation, too …..
“FindArticles in ……Reuters”
http://go.reuters.com/nationalNewsCenter.jhtml;jsessionid=YNTD1SDZDGQ5WCRBAEOCFFA
Results 1 - 10 of about 928,000 for FindArticles in Reuters.
Partner US Newspapers
America’s leading newspapers trust the Reuters global news team to provide fast, accurate, unbiased and reliable news coverage and news photo images in support of their hometown, editorial operations.
For the best in U.S. city/regional news coverage, visit Reuters client newspaper news sites.
Boston Globe Boston Herald Houston Chronicle Los Angeles Times New York Post The New York Times Newark Star Ledger Orange County Register Philadelphia Inquirer San Antonio Express News San Diego Union Tribune San Francisco Chronicle Seattle Times USA Today Washington Post Washington Times Wall Street Journal
http://www.researchbuzz.org/publicationsarchives/
Results 1 - 10 of about 213,000 for FindArticles in Boston Globe
Results 1 - 10 of about 296,000 for FindArticles in Boston Herald.
Results 1 - 10 of about 101,000 for FindArticles in Houston Chronicle
Results 1 - 10 of about 1,510,000 for FindArticles in Los Angeles Times.
Results 1 - 10 of about 2,060,000 for FindArticles in New York Post.
Results 1 - 10 of about 2,390,000 for FindArticles in The New York Times.
Results 1 - 10 of about 834 for FindArticles in Newark Star Ledger
Results 1 - 10 of about 45,600 for FindArticles in Orange County Register
Results 1 - 10 of about 90,900 for FindArticles in Philadelphia Inquirer
Results 1 - 10 of about 31,000 for FindArticles in San Antonio Express News
Results 1 - 10 of about 35,300 for FindArticles in San Diego Union Tribune
Results 1 - 10 of about 147,000 for FindArticles in San Francisco Chronicle
Results 1 - 10 of about 737,000 for FindArticles in Seattle Times
Results 1 - 5 of about 2,300,000 for FindArticles in USA Today
Results 1 - 10 of about 2,190,000 for FindArticles in Washington Post
Results 1 - 9 of about 2,370,000 for FindArticles in Washington Times
Results 1 - 10 of about 943,000 for FindArticles in Wall Street Journal
Results 1 - 7 of about 1,750,000 for FindArticles in Associated Press
http://edition.cnn.com/interactive_legal.html
http://www.enps.com/about/case_studies.aspx
Results 1 - 10 of about 83,300 for FindArticles in Evening Post Publishing – (AP Partner)
http://www.google.com.au/search?hl=en&q=FindArticles+in+Evening+Post+Publishing&btnG=Search&meta=
Even a Bambi Listing. (Saturday Evening Post - above)
Results 1 - 10 of about 693,000 for FindArticles in Saturday Evening Post
eg’s: http://www.looksmartoldies.com/p/articles/mi_m1189/is_3_274
http://www.google.com.au/search?hl=en&q=Saturday+Evening+Post&btnG=Search&meta= - (High F/A’s listing)
The Curtis Publishing Company, which owns the Saturday Evening Post, …
http://www.google.com.au/search?hl=en&q=%22owns+the+Saturday+Evening+Post%22&btnG=Search&meta=
http://www.curtispublishing.com/home.html
http://www.google.com.au/search?client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial_s&hl=en&q=FindArticles+in+NBC10.com&meta=&btnG=Google+Search
Results 1 - 10 of about 23,600 for FindArticles in NBC10.com
Results 1 - 10 of about 11,500 for FindArticles in NBC11.com
Results 1 - 10 of about 718 for FindArticles in KNBC-TV -
Results 1 - 10 of about 19,100 for FindArticles in nbc4.tv
http://www.nbc.com/nbc/header/Local_Stations/
And already a lot of those above FindArticles results, have been indexed within Looksmart’s Verticals.
Ross
May 11th, 2006 at 12:25 am
Thanks “froosh” for the chance to post some “thoughts” ……
And Should a “content consortium” be announced over the next few
weeks/months ahead I’ve no doubt that Associated Newspapers (London) will certainly be, a “starter”.
Associated Newspapers Ltd
Associated Newspapers Limited (ANL) is the management company for five
major newspapers - Daily Mail,The Mail on Sunday, Evening Standard,
London Metro, Ireland on Sunday and the advertising publication Loot. Established in 1905, it is a subsidiary of the Daily Mail and General Trust plc (DMGT).
Check these numbers, in relation to content already in Looksmart’s
FindArticles base & some are even, already indexed within Looksmart’s Verticals ……
Associated New Media
http://www.anm.co.uk/
Associated Newspapers Ltd
http://www.google.com.au/search?hs=FiM&hl=en&client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial_s&q=associated+newspapers&btnG=Search&meta=
Evening Standard
http://www.google.com.au/search?hl=en&client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial_s&q=findArticles+in+Evening+Standard+%28London%29&btnG=Search&meta=
Results 1 - 5 of about 1,820,000 for findArticles in Evening Standard (London)
the Daily Mail
http://www.google.com.au/search?hs=ey1&hl=en&client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial_s&q=findArticles+in+the+Daily+Mail&btnG=Search&meta=
Results 1 - 10 of about 1,280,000 for findArticles in the Daily Mail
The Mail on Sunday
http://www.google.com.au/search?hs=HWh&hl=en&client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial_s&q=findArticles+in+The+Mail+on+Sunday&btnG=Search&meta=
Results 1 - 10 of about 604,000 for findArticles in The Mail on Sunday.
Metro Media Group
http://www.google.com.au/search?hl=en&client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial_s&q=findArticles+in+Metro+Media+Group&btnG=Search&meta=
Results 1 - 10 of about 107,000 for findArticles in Metro Media Group
Ireland on Sunday
http://www.google.com.au/search?client=firefox-a&rls=org.mozilla%3Aen-US%3Aofficial_s&hl=en&q=findArticles+in+Ireland+on+Sunday&meta=&btnG=Google+Search
Results 1 - 10 of about 243,000 for findArticles in Ireland on Sunday
Sunday Mirror
http://www.sundaymirror.co.uk/
http://www.google.com.au/search?hl=en&q=findArticles+in+sundaymirror.co.uk&btnG=Google+Search&meta=
Results 1 - 10 of about 9,250 for findArticles in sundaymirror.co.uk
I have previously alluded to what truly is a concept having an “international” flavour and will see (& in a short time, is my understanding), revenues for LOOKSMART ‘potentially’ climb to $100’s of millions, per quarter !!
No one has to be a “genius” to understand that Looksmart’s Q1 report showed that revenues were generated (basically) on a “One4One” ratio or, $1.00 for each site visitor, Looksmart sites had, for the quarter.
One thing I WILL ASSURE your readers is that Looksmart’s Market Cap will not be staying down at it’s current $100.30M mark, should this all go ahead.
Ross
ps; I’ve just listened to NWS’s CC held today, (once again) and have decided to make LOOK a “Strong Buy”, immediately.
May 23rd, 2006 at 1:06 pm
[…] Anyway, today I learned on TheStreet.com that as MySpace continues shopping for a search partner (read my free, pro-bono advice to Messers Rupert Murdoch, FIM head Ross Levinsohn and FIM COO / IGN CEO Mark Jung on what to do vis-a-vis search here) the No. 2 search engine, Yahoo!, is “less interested” in a deal [with MySpace], the paper says. None of the companies could immediately be reached for comment on the story. […]