end of an era
Posted by Mark J. Miller on September 23, 2013 04:53 PM
Once the dominant face of the mobile marketplace, BlackBerry has experienced a most epic tumble from the top as it has continued to bleed cash and market share at the hands of major mobile manufacturers Apple and Samsung.
In a last-ditch bid for survival, the company announced Monday that it has signed a letter of intent to be sold to its biggest shareholder, Canada's Fairfax Financial Holdings, for USD $4.7 billion. The sale comes on the heels of the company's Sept. 20th earnings report that it lost an astounding $1 billion in one quarter, and related plans to shed one-third of its global workforce.
“BlackBerry has fallen on hard times recently, but we have every confidence it will be successful again,” Fairfax chairman and CEO Prem Watsa, the Canadian billionaire who resigned from BlackBerry's board before the announcement, told the Globe and Mail. Fairfax, the paper reports, “has put together an equity consortium” that aims to take the company private for $9 per share. A final agreement is expected by Nov. 4.Continue reading...
Posted by Sheila Shayon on September 3, 2013 01:47 PM
In what may be the last notable move from exiting Microsoft CEO Steve Ballmer, the company acquired Nokia's devices and services division and its intellectual property for $7.2 billion.
While the brands have been connected since 2011, when Nokia adopted Microsoft's software across its smartphones, the merger will create a hardware and software supplier bolstered by the addition of Nokia's 32,000 employees. Ballmer believes that a deeper integration between devices, software, and services is required to compete with Google and Apple and that vertical integration will better finance the development of the Windows Phone platform.
While the deal at first glance seems to be a departure from the "One Microsoft" idea that Ballmer debuted in July under his restructuring plan, the company has outlined a connection between the success of its mobile venture and its other devices. "Success in phone is important to success in tablets. Success in tablets will help PCs.”Continue reading...
let's make a deal
Posted by Mark J. Miller on May 20, 2013 12:22 PM
In what Yahoo hopes to be a life-altering deal, the aging internet company acquired social media site Tumblr for $1.1 billion, affectively gaining the attention of millions of users that visit Tumblr monthly (that is, if they all don't jump ship first).
Purchase rumors began to swirl last week after the company's CFO Ken Goldman spoke of Yahoo's "aging demographic" and their need to be "cool" again. With the acquisition now official, Yahoo will suddenly be knee deep in the content-consuming, uber-engaged millennials that it craves, but the question is whether Tumblr's core users will stick around for fear that Yahoo will alter the blogging site—or whether advertisers and brands can handle the rough-and-tumble world of Tumblr.
However, CEO Marissa Mayer was quick to assure users (with her first Tumblr post, of course; she also launched her own Tumblr and showed a sense of humor over the "WFH" debate) that Yahoo would "not screw it up" and had no plans to tamper with the site or its crew. Mayer's post, in the copyright-flouting spirit of Tumblr, used an image that without first getting its creator's permission.
Founder David Karp—who is slated to become Forbes' youngest billionaire—will remain at the head of the company along with his team. According to Mayer, it seems the only major plans Yahoo has for Tumblr (besides not screwing it up) are more opportunities for native advertising (aka advertorials or sponsored content, which Karp & Co. have been testing in the wake of earlier stumbles) in addition to implementing Yahoo search on Tumblr to start mining all that juicy millennial user data.Continue reading...
let's make a deal
Posted by Sheila Shayon on May 17, 2013 03:39 PM
As it explores new revenue streams and strategies to build out its web platform, Yahoo may be looking to invest in a platform that is sure to bring it plenty of the millennials it craves.
According to a report by All Things D, sources close to Yahoo! have said that the company may be considering a "strategic investment in or outright buy" of social blogging mecca Tumblr. After all, the startup, which is valued around $800 million, is one of the most popular social platforms and has become increasingly a part of branding arsenals as companies take advantage of its photo-heavy community.
Update: The acquisition was approved by Yahoo's board on Sunday, and announced via a press release, David Karp's Tumblr post and Marissa Mayer's first Tumblr post on Monday morning. The tl;dr version: Yahoo promises to leave the Tumblr brand independent and "not screw it up," leaving Karp as CEO and its staff intact. Yahoo will get access to Tumblr's 300 million monthly unique visitors; Tumblr gets the backing to continue its product roadmap and Karp's vision.Continue reading...
brand take over
Posted by Mark J. Miller on April 9, 2013 12:46 PM
After 21 years in business, Caribou Coffee is suddenly facing some very grownup decisions.
America's second-largest coffee chain announced that, as of April 14, it will be closing 80 of its locations and rebranding 88 outposts as Peet's Coffee & Tea over the next 18 months, according to a statement from President and CEO Mike Tattersfield.Continue reading...
chew on this
Posted by Brandchannel Staff on March 19, 2013 11:44 AM
After filing for bankruptcy protection in November and laying off its workers, Hostess has finally found buyers to pony up about $800 million for the majority of its baked goods brands.
According to Associated Press, a bankruptcy judge has approved the sale of Hostess Brands' iconic Twinkies, Ding Dongs and Ho Hos to two investment firms, Apollo Global Management and Pabst owner Metropoulos & Co., for $410 million. The judge also approved the sale of Hostess-owned Wonder Bread, Nature's Pride, Butternut, Home Pride and Merita bread brands to Tastykakes owner Flowers Foods, for $360M.
Beefsteak, a Hostess-owned regional bread brand, also was approved for a $31.9 million sale to Mexico's Grupo Bimbo, which surfaced early in the Hostess bankruptcy auction as a potential buyer and acquired Sara Lee's North American bakery business in 2010.Continue reading...
Posted by Mark J. Miller on March 12, 2013 05:59 PM
T-Mobile has been trying to find a dancing partner for some time now. Back in 2011, it came close to finding the perfect mate when it flirted with being bought by AT&T for $39 million only to have the whole thing shot down.
But things went their way Tuesday when the U.S. Department of Justice and the FCC approved a merger between Deutsche Telekom’s T-Mobile and MetroPCS, making the twosome into the fourth-largest wireless carrier in the States and ready to do battle with AT&T and Verizon Wireless, Nasdaq.com reports.
Fourth largest may sound pretty big, but its 42 million subscribers are about half of what each of the Big Two have, according to the Philadelphia Inquirer.Continue reading...
sip on this
Posted by Dale Buss on February 27, 2013 02:18 PM
Coca-Cola keeps moving forward with global consolidation as it swallows up the remaining stake of a juice brand in Europe and launches two new brand platforms in the Middle East.
In Europe, Coca-Cola is moving to acquire almost all of the 40 percent of Innocent Drinks that it didn't already own after raising its stake in stages beginning in 2009. Innocent makes smoothies, juices and other healthy foods and has been a rising better-for-you brand in Europe, building its brand equity on corporate "innocence."
Will Innocent and Coke face a European-consumer backlash over the brand's now-complete dependence on a well-known multinational company that some say isn't quite so innocent? After all, it's recently come under new criticism by Oxfam over allegely unethical practices.Continue reading...