Miva on the Sales Block
Miva, the third tier pay per click search marketing company which includes tarnished brands FindWhat and Espotting, is apparently exploring options:
Deutsche Bank will help Miva's board of directors analyze options including the raising of capital through the sale of securities or assets of the company, a recapitalization, strategic acquisitions and the combination, sale or merger of the business with another entity offering strategic opportunities for growth. However, there is no assurance that any transaction will occur, the company said.
Miva's stock price got ahead of itself, and the rising tides of search marketing did not lift all boats. They failed to grow as fast as the industry has, and were sued by shareholders and competitors alike.
With a current market capitalization at $180 million who is going to be interested in Miva? Microsoft, Yahoo! or maybe DaveN?
This will get to be more common
I have been talking about the middle market search space and its inability to innovate and capitalize on opportunities for well more than a year on my own blog.
Where's the beef? Frankly most of these search companies are nothing more than a sesame seed bun without the special sauce and an all beef patty.
Hungry yet? Well frankly there are other engines and portal players eagerly seeking to beef up their revenue by acquiring a PPC provider. Think eBay, the New York Times, IAC, MSN, and yes even Yahoo or Google if the price and strategic options are right.
You're going to see many middle market players in a struggle to survive in the coming year. The problem they all have is not only poor traffic quality but they do not OWN their traffic. They offer nothing of value to the average end user.
Who the hell ever goes to Miva, Kanoodle, Search123, or 7Search to look at search results? Nobody unless they are a two cards short of a full deck.
Miva offers only the value of its dwindling advertiser base.
Can anyone say Sprinks? (Don't tell those Sprinks boys over at Kanoodle I said that! They are still in denial.)