MicrosoftGoogleFacebook Pile-up

Posted by: Jon Fine on September 25, 2007

The excellent and exhaustive piece in the Wall Street Journal spends a lotta time focusing on the travails of Microsoft’s media and advertising operations. Should this, by chance, point you towards the conclusion that Microsoft will win this bidding war … well, stop your extrapolatin’ right there. Because in December of 2005 execs at Microsoft were dead convinced that they would be the ones to win a 5% stake in AOL.

But they didn’t get it. Google did.

Meanwhile, my colleagues at BusinessWeek last night put Facebook’s theoretical $10 billion valuation in some perspective. But to further illustrate this, in media terms $10 billion dollars is:

Twice what Rupert Murdoch paid for Dow Jones.
Almost four times the New York Times Co.’s market cap.
Almost twice what Microsoft paid for aQuantive
Twice the market cap of ad giant Interpublic and over 35% greater than the market cap of ad giant Publicis.
Significantly larger than the market cap of Barry Diller’s IAC.
Almost four times the market cap of Meredith Corp.
Amost twice as big as Scripps’ market cap.

Parenthetically: What does a 5% stake in anything really get you?

Reader Comments

Tom

September 25, 2007 5:30 PM

Question: Do you think the terms of the deal included the option of "first right of refusal" if facebook ever sold, etc? It seems to me that might be a big possibility.

Denise

September 26, 2007 2:43 PM

5% can get you the first right of refusal if the company decides to sell. It can also get you insider information on what that company is going to do next, and the opportunity to be the first one to partner up. It can also get you some good PR in an area where you have none and really, desparately need it.

Denise

September 26, 2007 5:25 PM

5% can get you the first right of refusal if the company decides to sell. It can also get you insider information on what that company is going to do next, and the opportunity to be the first one to partner up. It can also get you some good PR in an area where you have none and really, desparately need it.

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The media world continues to shapeshift as new forms arise and old assumptions erode. On this blog, Bloomberg Businessweek will provide sharp analysis and timely reports on the transformation of this constantly changing terrain.

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