Summit Business Media files for Chapter 11 bankruptcy after securing approval from 83% of its lenders for a debt restructuring plan

January 26, 2011 — Fusion DigiNet

Summit Business Media has filed for Chapter 11 bankruptcy after securing approval from 83% of its lenders for a debt restructuring plan. The reorganization will entail halving the current debt load, for a reduction of $135 million. The company says it expects to reemerge from Chapter 11 in the first half of 2011 and that normal operations at Summit will continue.

Subject to court approval, Summit will use its bank balances, currently in excess of $10 million in cash, and cash flow from its operations to meet its working capital needs throughout the reorganization process. Any pre-filing advertising, subscription and event contracts will be honored in full. Summit will pay all vendors for goods and services received during the reorganization process, and Summit employees will receive uninterrupted wages and benefits. In addition, the Company’s lenders have agreed to provide a debtor-in-possession (DIP) credit facility of $5 million to support the Company’s additional working capital needs, if any, during the restructuring.

“Summit Business Media is a fundamentally sound and profitable company,” said Andrew L. Goodenough, President and CEO. “We believe that Summit is well-positioned to take advantage of economic growth coming out of this unusually deep downturn as the industries we serve rebound. We look forward to a speedy resolution of our balance sheet restructuring while we remain focused on delivering quality products for readers and marketers in the markets we serve.”

He added, “While Summit has emerged from the downturn as a smaller but healthier company, we have too much debt to support our current business operations, left over from when Summit was a larger, acquisition-oriented company. We view this reorganization process as the last step in a two-year strategic refocusing of Summit on our core markets.”

Reed Smith is legal counsel to Summit Business Media for the restructuring and Lincoln International is acting as financial advisor.

USA, New York, NY

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UberMedia acquires Mixx.com

January 25, 2011 — Fusion DigiNet

UberMedia,  the   independent  provider  of  applications  for  reading  and  posting  to  Twitter  and  other  social  media   platforms,  has  announced  its  acquisition  of  Mixx.com. Mixx  has  been  a  leader  in  curating  social   content  into  channels  of  information  that  enable  users  to  find  content  and  people  who  are   relevant  to  their  interests. UberMedia  plans  to  add  these  channels  to  its  family  of  apps,   including  UberTwitter,  Twidroyd  and  Echofon.

“Mixx  has  done  a  tremendous  job  of  pulling  together  content  from  around  the  Twittersphere   and  other  social  media  platforms  and  assembling  it  in  a  way  that  makes  it  easier  and  more   enjoyable  for  users  to  see  things  they  wouldn’t  otherwise  be  exposed  to,”  said  Bill  Gross,  CEO   of  UberMedia. “By  applying  their  technology  and  talent  toward  developing  channels  for  our   apps,  we’ll  be  able  to  bring  engaging  content  right  to  your  phone  alongside  your  timeline.”

UberMedia  is  headquartered  at  Idealab in  Pasadena,  CA.

USA, Pasadena, CA

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Orange enters into exclusive negotiations with Dailymotion with a view to acquiring a 49% stake in its capital

January 25, 2011 — Fusion DigiNet
Orange has entered into exclusive negotiations with Dailymotion with a view to acquiring a 49% stake in the online video site. Beginning in 2013, the project allows Orange a progressive capital increase to 100% and also allows for the integration of new business partners. The signature of the final agreement should be reached in the coming months that will enable both parties to optimize their video services and enrich their respective offers. 

This project is strategic for Orange insofar as the Dailymotion video platform will immediately provide the Group with a solution that can meet the increase in its customers’ video use across all connected screens (via internet, WiFi or 3G). The operation will also enable Orange to accelerate its multi-screen strategy by anticipating the growth in high definition, 3D and continuity across all screens.

For Dailymotion, this project represents an opportunity to enrich its content offer and to benefit from Orange’s innovation and marketing skills in order to extend its services across all digital screens for all users. With an already strong international presence and 80% of its users located outside France, Dailymotion will be able to accelerate its growth internationally using the presence of the Orange group in 32 countries. Orange will also reach a critical size in the field of audience and online services.

The deal is subject to consultation with staff representative organisations, as required by French law.

France, Paris
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PostUp acquires UberTwitter, renames company UberMedia

January 25, 2011 — Fusion DigiNet

PostUp, the social media platform founded by Internet entrepreneur Bill Gross, has acquired UberMedia, the Twitter client on the BlackBerry platform. PostUp is also changing its company name to UberMedia.

“Twitter has rapidly grown to be the most significant real-time communications medium on the planet,” said Bill Gross, CEO of UberMedia. “Our goal is to be the best partner to Twitter in enhancing the Twitter ecosystem, and to provide innovative ways for Twitter users to share and consume content.”

“When I first built UberTwitter, I never imagined it would grow the way it has, serving millions of users and really impacting the way people communicate,” said Paul McDonald, founder and CEO of UberTwitter. “Working closely with Twitter for the past couple of years has made me even more passionate about real time communication, and I look forward to continuing to work closely with Twitter as part of UberMedia.”

UberMedia is headquartered at Idealab in Pasadena, CA.

USA, Pasadena, CA

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MyPublisher acquires digital scrapbooking website How Fast Time Flies

January 25, 2011 — Fusion DigiNet

MyPublisher, an internet supplier of photography-focused personalized printed products, has acquired How Fast Time Flies, a leading internet provider of digital scrapbook pages.

“We love everything about How Fast Time Flies and its founder Cathy Bennett,” said Carl Navarre, CEO of MyPublisher. “She has developed some of the most innovative and creative page designs anywhere for scrapbooking and we believe many of our photo book customers will want to use her designs. Additionally, Cathy will be joining MyPublisher, Inc. full-time and we think she will be a great help to us in expanding and improving our products and communications.”

“This is a perfect fit,” said Carl Navarre, founder and CEO of MyPublisher. “For some time we have been looking to expand our business through acquisition.  And at the same time we have been looking to leverage our personalized, custom printing capabilities beyond the photo book category into personalized cards, stationery and scrapbook products.   Acquiring How Fast Time Flies allows us to do both at the same time.”

USA, New York, NY

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Travel site NileGuide.com acquires 10Best.com

January 25, 2011 — Fusion DigiNet

Global travel content publisher NileGuide.com has acquired travel recommendation site 10Best.com from Enveritas Group. The term of the deal were not disclosed. This is the second deal in less than a year, in May 201 DigiNet reported NileGuide’s acquisition of travel insights website Localyte

“We’re committed to creating high-quality original travel content that marries local knowledge with expert editorial, and this acquisition helps us accelerate that strategy,” said NileGuide CEO Josh Steinitz.

NileGuide has a proprietary global network of several hundred contributing editors, known as NileGuide Local Experts, who live in top travel destinations around the world. These Local Experts provide free itineraries and unique, “for-travelers-by-locals” insight into topics ranging from the top kid-friendly things to do in London to the best hotels in New York City. Additionally, through the Localyte acquisition, NileGuide.com provides visitors with the ability to receive answers to their travel questions from locals living in over 75,000 destinations around the world.

10Best.com, known for its strengths in restaurant and attraction recommendations, features additional original content on the best hotels and places to shop in the world’s top cities. For example, the site provides users with travel advice on topics ranging from the best seafood restaurants in New Orleans to the top attractions in Chicago.

10Best founder Brice Bay of Enveritas Group adds, “We’re excited to bring 10Best to a company that’s growing through a combination of top-notch original content and providing travelers with Q & A access to a massive community of people living in top destinations around the world. NileGuide is pushing the envelope in original travel content, and we’re excited to contribute to their growth.”

USA, San Francisco, CA

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Zynga acquires online games developer Area/Code

January 25, 2011 — Fusion DigiNet

Zynga has acquired Facebook and online games developer Area/Code Games. The business is renamed is now Zynga New York.

Area/Code was founded in early 2005 by Frank Lantz and Kevin Slav. Frank Lantz and Demetri Detsaridis remain on as Creative Director and General Manager, respectively; co-founder Kevin Slavin remains, “nearby but focused on other new ventures.

Zynga is the world’s largest social game developer. More than 215 million monthly active users play its games. Zynga’s games include FarmVille, Treasure Isle, Zynga Poker, Mafia Wars, YoVille, Café World, FishVille, PetVille and FrontierVille. Zynga games are available on Facebook, MySpace and the iPhone.

USA, San Francisco, CA & New York, NY

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Yahoo!7 Acquires Spreets – Australian and New Zealand online group buying company

January 25, 2011 — Fusion DigiNet

Online media company Yahoo!7 has acquired Australian online Group Buying site, Spreets Pty Ltd, including its New Zealand operations. The financial terms of the acquisition were not disclosed.

Spreets (spreets.com.au and spreets.co.nz) was the first Group Buying site in ANZ having been in operation for almost a year with 500,000 members and more than 274,000 vouchers purchased since inception.

The Yahoo!7 business delivers a new audience to the Spreets site through distribution on the Yahoo!7 Network as well as access to the benefits provided in Australia and New Zealand through its joint venture partners Yahoo! Inc. and the Seven Media Group, including marketing and promotions.

The acquisition helps Yahoo!7 to deliver on its Local and Social strategies as well as providing further diversification of revenue streams outside of display advertising. “After carefully reviewing the market it was clear that Spreets is a market-leader in what is becoming a highly competitive and fast growing market. The Spreets management team in Dean McEvoy and Justus Hammer come with strong expertise and experience in the Australian Group Buying market,” said Rohan Lund CEO of Yahoo!7.

“At its core Spreets is about leveraging insights to deliver the best local deals through an online social experience, and this maps perfectly to the Yahoo!7 Local and Social strategies. The acquisition of Spreets means we can bring the best of Yahoo!7 to grow the business even further,” he said.According to Dean McEvoy, CEO of Spreets, the Group Buying model has rapidly evolved over the past year delivering cost-effective marketing to small businesses and addressing an unmet and growing demand from consumers for online coupon deals.

“Australians and Kiwis love an amazing deal and Spreets has seen significant growth delivering over $40 million in savings to consumers over the past year. We’re proud to be an Australian born company leading the market in this rapidly evolving space,” he said.“We’re thrilled with the acquisition by Yahoo!7 as we see the huge potential that one of Australia’s leading online media companies, which has huge momentum in the market, will bring to the Spreets business.”

Australia

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Facebook raises $1.5 billion valuing the business at $50 billion

January 21, 2011 — Fusion DigiNet

Facebook today announced it has raised U.S.$1.5 billion at a valuation of approximately $50 billion.

The transaction consisted of two parts. Today, Goldman Sachs completed an oversubscribed offering to its non-U.S. clients in a fund that invested $1 billion in Facebook Class A common stock. In December, Digital Sky Technologies (DST), The Goldman Sachs Group, Inc., and funds managed by Goldman Sachs invested $500 million in Facebook Class A common stock at the same valuation.

“Our business continues to perform well, and we are pleased to be able to bolster our cash position with this new financing,” said David Ebersman, Facebook’s chief financial officer. “With this investment completed, we now have greater financial flexibility to explore whatever opportunities lie ahead.”

The investment generated a significant number of questions from interested parties.  Facebook addresses the most common ones below.

Why did Facebook raise this money?

DST and Goldman Sachs approached Facebook to express their interest in making an investment, and Facebook decided it was an attractive opportunity to bolster its cash reserves and increase its financial flexibility with limited dilution to existing shareholders.

Why did Facebook choose to raise $1 billion in the overseas offering?

Under the transaction’s terms, Facebook had the option to accept between $375 million and $1.5 billion from the Goldman Sachs overseas offering, at the discretion of Facebook. While the offering was oversubscribed, Facebook made a business decision to limit the offering to $1 billion.

What are Facebook’s plans for the proceeds of this transaction?

There are no immediate plans for these funds.  Facebook will continue investing to build and expand its operations.

Does this investment mean that Facebook will have more than 500 shareholders?

Even before the investment from Goldman Sachs, Facebook had expected to pass 500 shareholders at some point in 2011, and therefore expects to start filing public financial reports no later than April 30, 2012.

USA, Palo Alto, CA

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Photobucket and Ontela to merge

January 21, 2011 — Fusion DigiNet

Photo website Photobucket.com and Ontela, the imaging services for wireless carriers, are to merge their operations.

The combined company, which will be known as Photobucket Corporation.. The combination will bring together Photobucket’s audience of more than 22 million monthly unique users in the U.S. with Ontela’s software that is currently in use on more than 30 wireless carriers, including Verizon and T-Mobile. Photobucket will leverage Ontela’s wireless carrier relationships to provide distribution and consumer access to more than 140 million wireless subscribers, while Ontela will drive uptake of its mobile applications by capitalizing on Photobucket’s brand and highly active user base.

News Corporation, which acquired Photobucket in 2007, will hold a significant equity stake in the combined company and will be represented on the company’s board of directors. The Photobucket management team will continue to operate the business and play strong leadership roles in the combined company.

Tom Munro, Ontela’s chief financial officer, who will become president of the combined company said, “We are pleased to bring together these two dynamic companies that are at the leading edge of the explosion of content sharing in the digital photography space. We believe Photobucket’s vast consumer audience and content leadership – and the talented team of professionals who have driven the business – complements and brings great promise to Ontela’s technology leadership in mobile photo sharing applications.”

Jon Miller, chairman and CEO of Digital Media for News Corporation, who will serve as a director of the combined company, said, “In partnering with Ontela and its investors, we are able to maintain and expand our strong foothold in the online imaging category. As consumers evolve the ways in which they capture, consume and share their photos and video across multiple devices, there couldn’t be a more perfect partner for Photobucket to align with as it enters this new chapter.”

Photobucket is one of the largest standalone photo sites in the world. More than 11 million photos, graphics, and videos are uploaded to Photobucket every day and the site serves more than 100 billion images each month.

Ontela is a leading provider of services that get pictures off camera phones. Ontela’s proprietary technology automatically uploads pictures from phones, solving the last remaining problem with mobile photography – getting at the pictures. Ontela’s technology has been certified by 30 operators, including Verizon, T-Mobile, and Alltel on more than 100 handsets. It also is available preinstalled on devices from all five of the top global handset manufacturers.

Ontela’s investors will make an additional capital commitment as part of the merger and will hold significant equity positions in the combined company.

USA, Denver, CO and Seattle, WA

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