Archive for September, 2008|Monthly archive page
Investment Research after the storm
Filed under: Integrity Research, KnowledgeBid, expert networks, hedge funds, information |
Leave a Comment The last two weeks have kept most in the finance community glued to the headlines trying to figure out which earthquake will hit next. Mainstream media analysis has been focused on global economic issues and with numbers like $700B being thrown around, the $5.7B investment research industry, which has felt a substantial impact from the debt crisis and the Wall Street shakeup, has been largely overlooked. Nearly 3,000 equity research professionals have already been directly impacted. Read more »
Expert networks and sell-side research analysts
Filed under: KnowledgeBid, economics, expert networks, markets |
Leave a Comment The recent partnership announcement between the Gerson Lehrman Group and Credit Suisse sparked some commentary from research industry insiders who were surprised that GLG was letting sell-side analysts access the GLG network, even for what is sure to be a hefty fee. I was a bit surprised to learn they weren’t doing this already. GLG and other expert networks have tens of thousands if not hundreds of thousands of experts in their networks. Sell-side research operations, while they may be on the decline, still control 75% of the $5.7 billion in trading commissions distributed to research providers annually. At KnowledgeBid, our best customers are firms that sell research and services based on primary research. Contact us if you’d like to learn more about our network and how we can help you meet your customers’ needs. We’d love to help.
Investment Research: Continued Shift
Filed under: Integrity Research, KnowledgeBid, deals, hedge funds, information |
Comments (1) Ongoing market turmoil and the intensifying financial crunch have accelerated ongoing shift within the investment research industry. This morning Credit Suisse and the Gerson Lehrman Group announced a strategic partnership that will 1) give Credit Suisse analysts access to GLG consultants; 2) give GLG clients access to Credit Suisse analysts; 3) give GLG access to Credit Suisse distribution channels.
CareerBuilder valued at $1.35B, down 13% since ’06
Reuters is reporting that Gannett has purchased another 10% of CareerBuilder from the Tribune Company for $135M at a $1.35B valuation. The last time CareerBuilder was valued publicly was in ’06 when Gannett and Tribune bought a chunk of CareerBuilder from McClatchy at a $1.55B valuation. That’s a $200M loss in value over the last 2 years. Compete shows a 16% decrease in CareerBuilder’s traffic over the last year. This must have been an interesting negotiation because CareerBuilder is a large private company and the buyer and seller were both large existing stakeholders. Although losing $20M sounds bad, Gannett’s own stock has dropped nearly 50% this year alone, nearly $4B lost in market capitalization. Barron’s reported last week that Tribune, taken private in ’07 by Sam Zell for $8.2B, will be “hard-pressed to avoid bankruptcy, given plunging newspaper profits and its $12 billion of debt. Even a sale of the Tribune-owned Chicago Cubs and Wrigley Field for more than $1 billion would do little to cut Tribune’s debt. Zell says Tribune has adequate liquidity, but its public debt trades for less than 40 cents on the dollar, so investors aren’t convinced.”
So even though CareerBuilder has dropped in value, it may be one of the better assets on both company’s balance sheets (Cubs and Wrigley aside). I sure am glad I’m not in the newspaper business.
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