Overture to Acquire Web Search Unit of Fast Search & Transfer -- FAST - GoFuckYourself.com

SEGuru · 02-25-2003, 08:40 AM

Morning Peeps,

Check this out:

Quote:

PASADENA, Calif. & OSLO, Norway--(BUSINESS WIRE)--Feb. 25, 2003--
In Combination with Planned Purchase of AltaVista, Overture is Now Well-Positioned to Create the Next Generation of Internet Search

Overture Services, Inc. (Nasdaq:OVER), the world's leading provider of Pay-For-Performance search to Web sites across the Internet, today announced that it has signed a definitive agreement to acquire the Web search unit of Norway-based Fast Search & Transfer (OSE:FAST), a leading developer of search and real-time filtering technologies, for $70 million in cash, as well as a performance-based cash incentive payment of up to $30 million over three years. The deal is expected to close by April.

So, first its AltaVista here recently...and now FAST (Alltheweb.com)! I mean what the hell?

I'm guessing there are some puckered anuses over at Google today!

I will say this though...talk about a front row seat to one of the biggest corporate chess matches online! This should be interesting.

hershie · 02-25-2003, 08:50 AM

here is another take on the story:

Overture to buy search services

By Margaret Kane
Staff Writer, CNET News.com
February 25, 2003, 7:20 AM PT

update Overture Services plans to acquire some services of Fast Search & Transfer, another sign that it intends to compete more intensely for the Internet search market.
Overture will pay Oslo, Norway-based Fast $70 million in cash, as well as a performance-based incentive of up to $30 million over three years. The deal, announced Tuesday, is expected to close by April.

The acquisition, combined with the recent purchase of search engine AltaVista, is designed to help Overture "create the most powerful and comprehensive search capability on the Internet," the company said in a release.

Pasadena, Calif.-based Overture made its name selling placement within search results to advertisers. AltaVista and Fast use search engines to crawl the Web and return relevant results in response to queries. Overture said it would offer its distribution affiliates combinations of Overture's paid-placement product, a paid-inclusion product and algorithmic search.

Fast makes real-time search and filter technology. The company will retain usage rights for intellectual property related to its enterprise search technologies.

AltaVista's and Fast's paid inclusion businesses and engineering teams will begin integrating immediately after the acquisitions close, and a common paid-inclusion product and technology team should be set up by the end of 2003.

Overture said it will use Fast's AlltheWeb.com to experiment with advanced approaches in search and will use the AltaVista.com site to refine implementations for new products and improve presentation to consumers.

The company will spend between $13 million and $15 million in 2003 on its Web search product line, excluding acquisition costs, Overture said in a release. Overture has also named Gary Flake as chief science officer to oversee research and development efforts. Before joining Overture, Flake served as a research scientist at the NEC Research Institute and as the leader of its Web data-mining program.

Overture also announced Tuesday that it will offer new features, such as local search and contextual advertising, which it had been researching for several months. Overture plans to spend $10 million to $12 million on those products during 2003 and expects them to approach break-even in 2004.

The acquisition of Fast and AltaVista will force Overture to take a charge of 20 cents to 21 cents in fiscal 2003, the company said. But the acquisitions should add to the bottom line by mid-2004 and, "at a minimum," be neutral to earnings for the full year 2004, Overture said.

On a combined basis, revenue for Fast and AltaVista was around $60 million for 2002. Excluding the payments Overture would have made to AltaVista and Fast as independent companies, the companies are expected to add sales of about $25 million to $30 million in the last three quarters of 2003 and about $100 million to $125 million in 2004, Overture said.

Overture updated its financial expectations based on the acquisitions. For 2003, the company now expects to see revenue of more than $1 billion and earnings per share of 60 cents to 70 cents. Analysts had been expecting the company to report earnings of 91 cents per share on revenue of $1.03 billion.

Overture said the Fast deal should also help it boost its presence overseas. Fast already has relationships with some of Overture's Web partners in the United States and abroad, including Terra Lycos, InfoSpace, T-Online and Freeserve.

"We think that the opportunity overseas is significant. We have been able to do very well in Europe, Asia and Japan, in particular. So there, for example, Fast reinforces our position in Europe," Overture CEO Ted Meisel said on a conference call.

The search market has become more competitive recently, even as it consolidates. Although Google can lay claim to the bulk of the consumer business, companies including Overture and Yahoo have taken a much greater interest in the advertising that accompanies search results. Yahoo recently acquired Inktomi in a deal worth up to $235 million.

"We have seen opportunities come and go that we would have like to have won," Meisel said. "We didn't have the full search solutions our partners were looking for. There have been a few in the U.S., a few overseas as well."

http://news.com.com/2100-1023-985850.html?tag=fd_top

funkmaster · 02-25-2003, 08:55 AM

... another nail in the SEO coffin !!

SEGuru · 02-25-2003, 08:58 AM

The Fast Press Release:

http://www.fastsearch.com/press/pres...asp?pr_rel=225

The Overture Press Release:

http://www.corporate-ir.net/ireye/ir...em _id=385605

Brujah · 02-25-2003, 08:59 AM

good investments being made.. and no one in adult is buying up all that sweet traffic and potential.

Ironhorse · 02-25-2003, 09:12 AM

Hey look fucking stranger, how's it going Daron?

Mutt · 02-25-2003, 09:12 AM

What's Google got to be scared of? As long as they keep their searches returning great pertinent results they have nothing to worry about, people are creatures of habit, before I'd stop heading directly to Google they'd really have to fuck things up.

I don't hear people saying 'Did you Alta Vista that?' or 'I Fast the Webbed that chick dude she's hot!'. 'Google' is in the consciousness of the world, part of the language. Can't fuck it up unless they try really hard.

I dunno about the other parts of their business where they sell/lease their search technologies. Maybe these deal affect the future of that but for a web surfer, Google is it.

WiredGuy · 02-25-2003, 09:34 AM

Very interesting move for Overture. It seems to me that they're buying up any index which is available for acquisition. First Altavista, now FAST. Inktomi was bought out by Yahoo a while ago which pretty much only leaves Google, DMOZ and Looksmart as the only major indexes left out there. And considering inclusion can only be purchased at Looksmart, I give it a few weeks before a major player like Yahoo, MSN or Overture buys them out. Unfortunately this news comes to be rather disturbing given that Overture is starting to dominate too much market share in my opinion but we'll have to see what they intend to do with Altavista and FAST before knowing for sure. I hope they don't abandon the free listings entirely on their new acquisitions but I wouldn't be surprised if they did given Overture's over-zealous business model in squeezing advertisers. Regardless, it seems that the number of players are getting smaller and smaller which is never good news.

Thanks for the heads up SEGuru.
WG

SEGuru · 02-25-2003, 09:36 AM

Hey Tib! How the heck are ya bud!

Hey Mutt, you know what Google has to be afraid of...the same fate of Infoseek! Thats what!

Think on it...and be dismayed!

Sup WG...good to see ya brutha! I agree...one must be very aware of Overtures foothold. It commands respect, if not envy!

oldtimer · 02-25-2003, 09:45 AM

Mutt:
1. The paid results are where the money is. Google will lose Yahoo to Inktomi. All Overture has to do now is lowball them for the MSN or AOL (or both) contracts, and AltaVista will be a major search engine again. Google will lose a huge amount of traffic, and AltaVista will gain.

2. Overture no longer has to pay to be the PPC provider for AltaVista. Now they can fight Google on a level playing field.

3. Overture is run by businessmen. Google is run by academics. Businessmen will win every time. My money is on Overture.

Vendot · 02-25-2003, 09:53 AM

> Overture is run by businessmen. Google is run by
> academics. Businessmen will win every time. My money is
> on Overture.

Its true the money should always prevail as partners want it. Google doesnt really do it properly but im really sceptical about the Altavista/Fast acquisitions as those things rarely come off and usually end up being a mammoth waste of money.

Look at past acquisitions of this nature and see how they worked out - mostly its been cash burn.

Mark · 02-25-2003, 09:55 AM

Now we know why the increased their minimum bid amounts - to finance this damn spending spree! Fuckers!

Actually I have a search engine.. anyone wanna buy it??

SEGuru · 02-25-2003, 09:55 AM

Hey Oldtimer,

Nice assesment of the landscape. Thats a pretty damn perceptive outlook too.
Think I agree with Oldtimer on the strategy though, damned Overture.

SEGuru · 02-25-2003, 10:05 AM

Vendot: The thing with these kinds of acquisitions is the position of the acquirer. Overtures business model has a sideaffect. CASH.
PPC is a cash business. So with distribution comes volume clicks and a strong average cpc.

Overture has been masters in the art of pay for performance in the search space. If they can continue to deliver as they have...with PFI now as well...then I think they have a strong chance at seeing a ROI.

oldtimer · 02-25-2003, 10:07 AM

Pssst...

Im Wicked. You taught me all about search engines remember?

Hey Ironhorse! Long time no see.

vendot:
Normally I would agree, but this time it isnt @home buying Excite, its a company with a track record of making the right decisions who are IN the SE business. Also they are buying at the bottom of the market, not the top.

kevinale · 02-25-2003, 10:11 AM

Quote:

Originally posted by oldtimer
M
3. Overture is run by businessmen. Google is run by academics. Businessmen will win every time. My money is on Overture.

Every time -- Enron, and WorldCom, and blah blah blah.

-k

SEGuru · 02-25-2003, 10:19 AM

Touche Kevinale!

Wicked, You Bitch! How you been brutha?
You luv this chess match don't ya?

Fuckin SE game is still keepin me in check!

SEGuru · 02-25-2003, 10:38 AM

Very kewl...

I just checked my email for the morning and realized that I had an email from the CEO of FAST, John M. Lervik, Ph.D.

Basically giving us a heads up on the deal and stating that we'll likely continue working with the same people.

That's kewl. Very curious to see how this all plays out.

WiredGuy · 02-25-2003, 11:13 AM

Quote:

Originally posted by SEGuru
Sup WG...good to see ya brutha! I agree...one must be very aware of Overtures foothold. It commands respect, if not envy!

Hey SEGuru. I wish I could say it was better times but waking up to see news stories like this have made for some uncomfortable times. We'll see how these market changes pan out for us SEO people...

WG

jimmyf · 02-25-2003, 12:09 PM

Quote:

Originally posted by oldtimer
Mutt:
1. The paid results are where the money is. Google will lose Yahoo to Inktomi. All Overture has to do now is lowball them for the MSN or AOL (or both) contracts, and AltaVista will be a major search engine again. Google will lose a huge amount of traffic, and AltaVista will gain.

2. Overture no longer has to pay to be the PPC provider for AltaVista. Now they can fight Google on a level playing field.

3. Overture is run by businessmen. Google is run by academics. Businessmen will win every time. My money is on Overture.

right on I think.

I read a few days ago that Overture was buying AltaVista.
Digital threw in AlataVista when they got bought by Compaq a few years ago, then Compaq sold'em for 500 million, and they get bought now for ??

02-25-2003, 08:58 AM	#4
SEGuru Confirmed User Join Date: Oct 2002 Location: Fort Lauderdale...on the Intracoastal! Posts: 1,005	The Fast Press Release: http://www.fastsearch.com/press/pres...asp?pr_rel=225 The Overture Press Release: http://www.corporate-ir.net/ireye/ir...em _id=385605 __________________ AffConEvents.Com \| Tune in Live & Listen to Internet Radio for Webmasters Buy Cheap Text Links

02-25-2003, 08:59 AM	#5
Brujah Beer Money Baron Industry Role: Join Date: Jan 2001 Location: brujah / gmail Posts: 22,157	good investments being made.. and no one in adult is buying up all that sweet traffic and potential. __________________ Free Premium Domain Lists and Tools at Clickmojo.com For Sale: Obscenity.com

02-25-2003, 09:12 AM	#6
Ironhorse Pixel Pusher Industry Role: Join Date: Nov 2002 Posts: 7,093	Hey look fucking stranger, how's it going Daron? __________________ [email protected]

02-25-2003, 09:12 AM	#7
Mutt Too lazy to set a custom title Industry Role: Join Date: Sep 2002 Posts: 34,431	What's Google got to be scared of? As long as they keep their searches returning great pertinent results they have nothing to worry about, people are creatures of habit, before I'd stop heading directly to Google they'd really have to fuck things up. I don't hear people saying 'Did you Alta Vista that?' or 'I Fast the Webbed that chick dude she's hot!'. 'Google' is in the consciousness of the world, part of the language. Can't fuck it up unless they try really hard. I dunno about the other parts of their business where they sell/lease their search technologies. Maybe these deal affect the future of that but for a web surfer, Google is it. __________________ I moved my sites to Vacares Hosting. I've saved money, my hair is thicker, lost some weight too! Thanks Sly!

02-25-2003, 09:34 AM	#8
WiredGuy Pounding Googlebot Industry Role: Join Date: Aug 2002 Location: Canada Posts: 34,482	Very interesting move for Overture. It seems to me that they're buying up any index which is available for acquisition. First Altavista, now FAST. Inktomi was bought out by Yahoo a while ago which pretty much only leaves Google, DMOZ and Looksmart as the only major indexes left out there. And considering inclusion can only be purchased at Looksmart, I give it a few weeks before a major player like Yahoo, MSN or Overture buys them out. Unfortunately this news comes to be rather disturbing given that Overture is starting to dominate too much market share in my opinion but we'll have to see what they intend to do with Altavista and FAST before knowing for sure. I hope they don't abandon the free listings entirely on their new acquisitions but I wouldn't be surprised if they did given Overture's over-zealous business model in squeezing advertisers. Regardless, it seems that the number of players are getting smaller and smaller which is never good news. Thanks for the heads up SEGuru. WG __________________ I play with Google.

02-25-2003, 08:50 AM	#2
hershie Confirmed User Join Date: Jun 2002 Posts: 4,642	here is another take on the story: Overture to buy search services By Margaret Kane Staff Writer, CNET News.com February 25, 2003, 7:20 AM PT update Overture Services plans to acquire some services of Fast Search & Transfer, another sign that it intends to compete more intensely for the Internet search market. Overture will pay Oslo, Norway-based Fast $70 million in cash, as well as a performance-based incentive of up to $30 million over three years. The deal, announced Tuesday, is expected to close by April. The acquisition, combined with the recent purchase of search engine AltaVista, is designed to help Overture "create the most powerful and comprehensive search capability on the Internet," the company said in a release. Pasadena, Calif.-based Overture made its name selling placement within search results to advertisers. AltaVista and Fast use search engines to crawl the Web and return relevant results in response to queries. Overture said it would offer its distribution affiliates combinations of Overture's paid-placement product, a paid-inclusion product and algorithmic search. Fast makes real-time search and filter technology. The company will retain usage rights for intellectual property related to its enterprise search technologies. AltaVista's and Fast's paid inclusion businesses and engineering teams will begin integrating immediately after the acquisitions close, and a common paid-inclusion product and technology team should be set up by the end of 2003. Overture said it will use Fast's AlltheWeb.com to experiment with advanced approaches in search and will use the AltaVista.com site to refine implementations for new products and improve presentation to consumers. The company will spend between $13 million and $15 million in 2003 on its Web search product line, excluding acquisition costs, Overture said in a release. Overture has also named Gary Flake as chief science officer to oversee research and development efforts. Before joining Overture, Flake served as a research scientist at the NEC Research Institute and as the leader of its Web data-mining program. Overture also announced Tuesday that it will offer new features, such as local search and contextual advertising, which it had been researching for several months. Overture plans to spend $10 million to $12 million on those products during 2003 and expects them to approach break-even in 2004. The acquisition of Fast and AltaVista will force Overture to take a charge of 20 cents to 21 cents in fiscal 2003, the company said. But the acquisitions should add to the bottom line by mid-2004 and, "at a minimum," be neutral to earnings for the full year 2004, Overture said. On a combined basis, revenue for Fast and AltaVista was around $60 million for 2002. Excluding the payments Overture would have made to AltaVista and Fast as independent companies, the companies are expected to add sales of about $25 million to $30 million in the last three quarters of 2003 and about $100 million to $125 million in 2004, Overture said. Overture updated its financial expectations based on the acquisitions. For 2003, the company now expects to see revenue of more than $1 billion and earnings per share of 60 cents to 70 cents. Analysts had been expecting the company to report earnings of 91 cents per share on revenue of $1.03 billion. Overture said the Fast deal should also help it boost its presence overseas. Fast already has relationships with some of Overture's Web partners in the United States and abroad, including Terra Lycos, InfoSpace, T-Online and Freeserve. "We think that the opportunity overseas is significant. We have been able to do very well in Europe, Asia and Japan, in particular. So there, for example, Fast reinforces our position in Europe," Overture CEO Ted Meisel said on a conference call. The search market has become more competitive recently, even as it consolidates. Although Google can lay claim to the bulk of the consumer business, companies including Overture and Yahoo have taken a much greater interest in the advertising that accompanies search results. Yahoo recently acquired Inktomi in a deal worth up to $235 million. "We have seen opportunities come and go that we would have like to have won," Meisel said. "We didn't have the full search solutions our partners were looking for. There have been a few in the U.S., a few overseas as well." http://news.com.com/2100-1023-985850.html?tag=fd_top

02-25-2003, 08:55 AM	#3
funkmaster So Fucking Banned Join Date: Sep 2001 Location: shell beach Posts: 7,938	... another nail in the SEO coffin !!

02-25-2003, 09:36 AM	#9
SEGuru Confirmed User Join Date: Oct 2002 Location: Fort Lauderdale...on the Intracoastal! Posts: 1,005	Hey Tib! How the heck are ya bud! Hey Mutt, you know what Google has to be afraid of...the same fate of Infoseek! Thats what! Think on it...and be dismayed! Sup WG...good to see ya brutha! I agree...one must be very aware of Overtures foothold. It commands respect, if not envy! __________________ AffConEvents.Com \| Tune in Live & Listen to Internet Radio for Webmasters Buy Cheap Text Links Last edited by SEGuru; 02-25-2003 at 09:38 AM..

02-25-2003, 09:45 AM	#10
oldtimer Confirmed User Join Date: Jan 2003 Posts: 250	Mutt: 1. The paid results are where the money is. Google will lose Yahoo to Inktomi. All Overture has to do now is lowball them for the MSN or AOL (or both) contracts, and AltaVista will be a major search engine again. Google will lose a huge amount of traffic, and AltaVista will gain. 2. Overture no longer has to pay to be the PPC provider for AltaVista. Now they can fight Google on a level playing field. 3. Overture is run by businessmen. Google is run by academics. Businessmen will win every time. My money is on Overture. __________________ Im here to help surfers find relevant content

02-25-2003, 09:53 AM	#11
Vendot Confirmed User Industry Role: Join Date: May 2002 Location: Malaysia Posts: 3,376	> Overture is run by businessmen. Google is run by > academics. Businessmen will win every time. My money is > on Overture. Its true the money should always prevail as partners want it. Google doesnt really do it properly but im really sceptical about the Altavista/Fast acquisitions as those things rarely come off and usually end up being a mammoth waste of money. Look at past acquisitions of this nature and see how they worked out - mostly its been cash burn. __________________ "In a Time of Universal Deceit, Telling the Truth is a Revolutionary Act." - George Orwell

02-25-2003, 09:55 AM	#12
Mark Confirmed User Join Date: Jul 2001 Posts: 600	Now we know why the increased their minimum bid amounts - to finance this damn spending spree! Fuckers! Actually I have a search engine.. anyone wanna buy it??

02-25-2003, 10:05 AM	#14
SEGuru Confirmed User Join Date: Oct 2002 Location: Fort Lauderdale...on the Intracoastal! Posts: 1,005	Vendot: The thing with these kinds of acquisitions is the position of the acquirer. Overtures business model has a sideaffect. CASH. PPC is a cash business. So with distribution comes volume clicks and a strong average cpc. Overture has been masters in the art of pay for performance in the search space. If they can continue to deliver as they have...with PFI now as well...then I think they have a strong chance at seeing a ROI. __________________ AffConEvents.Com \| Tune in Live & Listen to Internet Radio for Webmasters Buy Cheap Text Links

02-25-2003, 10:07 AM	#15
oldtimer Confirmed User Join Date: Jan 2003 Posts: 250	Pssst... Im Wicked. You taught me all about search engines remember? Hey Ironhorse! Long time no see. vendot: Normally I would agree, but this time it isnt @home buying Excite, its a company with a track record of making the right decisions who are IN the SE business. Also they are buying at the bottom of the market, not the top. __________________ Im here to help surfers find relevant content

02-25-2003, 10:19 AM	#17
SEGuru Confirmed User Join Date: Oct 2002 Location: Fort Lauderdale...on the Intracoastal! Posts: 1,005	Touche Kevinale! Wicked, You Bitch! How you been brutha? You luv this chess match don't ya? Fuckin SE game is still keepin me in check! __________________ AffConEvents.Com \| Tune in Live & Listen to Internet Radio for Webmasters Buy Cheap Text Links

02-25-2003, 10:38 AM	#18
SEGuru Confirmed User Join Date: Oct 2002 Location: Fort Lauderdale...on the Intracoastal! Posts: 1,005	Very kewl... I just checked my email for the morning and realized that I had an email from the CEO of FAST, John M. Lervik, Ph.D. Basically giving us a heads up on the deal and stating that we'll likely continue working with the same people. That's kewl. Very curious to see how this all plays out. __________________ AffConEvents.Com \| Tune in Live & Listen to Internet Radio for Webmasters Buy Cheap Text Links