Re:Powerset’s Dilemma: Go For It, Or Sell
by prakash on Sunday May 11, 2008 @02:43AM
(#186752)
In general, this is probably the best time for companies that are talking to MSFT re: search about being bought out, due to the fact that:
1. MSFT has cash in the bank and the Yahoo acquisition didn't go thorough
2. They are even more desperate now to bolster anything & everything to do with search & monetization
3. The perceived value of search companies (Powerset, Cuill) is higher since there are very few search companies that can allegedly make a difference to begin with, and even fewer buyers
Powerset is valued at 42 million (see venture beat article), if they are bought for 3x-5x that amount by msft and they can retain their independence they should probably go for it. If Powerset needs the same kind of computing resources, msft would be a better bet in supplying that.
Msft did something similar with TellMe in terms of retaining their independence apparently (no idea how far that is true).
1. MSFT has cash in the bank and the Yahoo acquisition didn't go thorough
2. They are even more desperate now to bolster anything & everything to do with search & monetization
3. The perceived value of search companies (Powerset, Cuill) is higher since there are very few search companies that can allegedly make a difference to begin with, and even fewer buyers
Powerset is valued at 42 million (see venture beat article), if they are bought for 3x-5x that amount by msft and they can retain their independence they should probably go for it. If Powerset needs the same kind of computing resources, msft would be a better bet in supplying that.
Msft did something similar with TellMe in terms of retaining their independence apparently (no idea how far that is true).