Yahoo!7 acquires Spreets

AdNews is reporting today Yahoo!7 has paid $40m for Spreets.

Hate to say I told you so …

$40m is a cracking exit for Spreets and would have been purchased at a handsome multiple.

From the post published 18 January …

Of all the large media players, Seven will need to acquire to get into this space quickly; and Seven buying a company like, say, Spreets is a smart move. Most companies who need an investment like this aren’t going to want to build it from scratch. Seven buying Spreets gives them an instant, cash positive, asset that they can scale up relatively quickly using the media assets at their disposal via Channel 7, Pacific Mags and Yahoo. Seven has shown that it is prepared to acquire established businesses rather than rely on Yahoo! intl assets/kit repurposed for this market (as evidenced by their acquisition of Total Travel and OzTips)

Why do Seven need to be seen to be doing something? Because Nine and Ten have already made their moves and Seven will want to hold the perception with investors that they are a forward thinking, future proof company on top of viable digital trends.


6 responses to “Yahoo!7 acquires Spreets

  1. Nice crystal ball work. I still say they bought a pup with Spreets.

  2. Well called Shep!

  3. Good tipping Any chance you could share the winner of this year’s Melbourne Cup?

  4. Good tipping! Any chance you could share the winner of this year’s Melbourne Cup?

  5. Mashable just announced that Google is launching a Groupon / Spreets competitor, ‘ Google Offers.’
    ‘From what we can tell, Google Offers will be powered by Google Checkout. It also includes Facebook (Facebook), Twitter (Twitter), Google Reader (Google Reader), Google Buzz (Google Buzz) and e-mail sharing options.’
    This follows their bid to buy Groupon for $6 billion just a few months ago.
    Interesting to see how the $40m Spreets purchase pans out.

  6. Good call Shep.

    I wonder if Yahoo!7 will grow this company or if it will fall by the wayside like Delicious? There are also rumours that their commitment to Flickr is waning. Buying established companies is all well and good but whether they will take the next step (of scaling up) remains to be seen.

    Neglecting another big purchase wont do their brand any favours.

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