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Google's chances as a VC

Jim Kim — Sun, 03 Aug 2008 10:27:07 -0400

Like a lot of tech titans before it, notably Microsoft and Intel, Google wants to spread some of its wealth to start-ups. Running a VC operations presents certain benefits. If you can find the right firms... Intel, notes Fortune, never had much luck. Perhaps Google will find a new model. Article

Frank Quattrone laments lack of pre-IPO research

Jim Kim — Fri, 25 Jul 2008 07:57:46 -0400

Frank Quattrone, who famously beat a long government attempt to convict him of obstruction, is certainly back on the technology industry banking scene. At a recent conference, he lambasted Eliot Spitzer's efforts to separate banking and research, which included rules that apparently make it harder for sell-side analysts to work on pre-IPO companies. Quattrone also said top sell-side analysts have fled Wall Street for hedge funds and private equity because they can no longer get paid the way they could in the dot.com era. The dearth of VC-backed IPOs stems from a host of other factors. I'm not sure the lack of sell-side research at the pre-IPO stage ranks that high. The going-public bar is just so much higher now. In any case, Quattrone's Qatalyst Group seems to be faring well. It is currently advising Google in the Microsoft-Yahoo matter.

For more:
- here's an article in the San Francisco Chronicle

Kleiner Perkins and the next big thing

Jim Kim — Tue, 22 Jul 2008 13:27:12 -0400

In some ways, you could call Kleiner Perkins Caufield & Byers the Goldman Sachs of the venture capital industry. The storied firm has long defined excellence, and is associated with some of the great start-ups in recent memory, like Genentech, Netscape, Amazon and of course Google. (I was tempted to call it the Google of the VC industry). But as the VC industry stands at a turning point, Kleiner Perkins is ready to make a bold move. Fortune reports it is leaving the Internet behind in search of billions in the inchoate green tech industry, specifically alternative energy firms. Kleiner Perkins' $500 million Green Growth Fund launched in May. This is a small fund compared with the funds raised by leveraged buyout shops, but it represents a huge bet, and one that the industry will watch carefully. You get the feeling this is the beginning of the something grand, or the end.

For more:
- here's the Fortune article

Microsoft to the rescue of Yahoo?

Fri, 16 May 2008 06:59:55 -0400

We noted not too long ago that it might not be wise to assume that the Microsoft-Yahoo dance was completely over. Ever since Jerry Yang and company spurned Steve Ballmer and company, Yahoo shareholders have been up in arms. Now, with no less than Carl Icahn declaring war on the Yahoo board, we just might see another deal emerge. Not that Microsoft will storm back to the table, but who else will pony up those kind of numbers. Google of course, but that's about it. Icahn apparently has candidates lined up for all 10 board seats. Look for other hedge funds to start getting involved. So a deal may yet emerge. Pencil in the date July 3. That's when the Yahoo annual meeting will take place.

For more:
- here's a MarketWatch article
- here's an AP article on Icahn's plans
- here's Icahn's letter to the Yahoo board
- here's the response

Odd challenge to Yahoo board

Tue, 13 May 2008 06:59:55 -0400

Since Microsoft's play for Yahoo fell apart, shareholders of Yahoo have voiced displeasure. Several hedge funds have suggested that the board was nothing short of derelict. A suit on behalf of a police and firefighters pension is expected to be filed this week, notes the New York Post. We'll see whether Jerry Yang's bold refusal to sell will pay off. He'll either be a hero or a goat, there is no middle ground. A year from now, Yahoo could well be in play again. For now, shareholders are pondering their moves. One challenge to the board comes from an odd source: Eric Jackson, a hedge fund manager. Despite owning only 96 shares, he has been leading the dissident charges, bent on coming up with an alternative slate.

For more:
- here's the article

Google spoiled the Microsoft-Yahoo deal

Tue, 06 May 2008 06:59:58 -0400

Steve Ballmer and Eric Schmidt have tangled before. Microsoft certainly got the best of Novell way back when. Now Schmidt may have had his revenge. The New York Times reports that Google played the role of spoiler to near-perfection, emerging a the clear winner in the merger-fest. The company offered Yahoo some more sophisticated ad technology, which emboldened Yahoo to holdout for a higher price. Yahoo may have no choice now but to seek a tighter embrace with its one-time foe. Microsoft may yet have the last word. If Yahoo can't get its stock price to reasonable levels--and some hedge funds are furious about what has transpired--the merger talk may heat up again. The best thing that might happen at some point would be for Microsoft and Google to throw off the gloves and bid directly for the company.

For more:
- here's the Times article
- here's the New York Post article on angry Yahoo shareholders

Quattrone lands a big client

Mon, 14 Apr 2008 06:59:58 -0400

Frank Quattrone, who outlasted prosecutors and lived for a second act in the financial services industry, has landed a big-name client: Google. The New York Times reports that Quattrone is aiding Eric Schmidt, CEO of the search giant, as it formulates a strategy amid the Microsoft-Yahoo derby. Quattrone's new Qatalyst Group looks to be an instant power in the industry, and business will not be hard to find. Schmidt and Quattrone have a long history together. It increasingly appears that Google will be drawn into the battle, which is a gravy train for top bankers.

For more:
- here's the New York Times article

Get ready for Quattrone 2.0

Wed, 19 Mar 2008 07:59:58 -0400

Frank Quattrone spent four lonely years fighting the Justice Department, who really threw the book at him. But he prevailed after two trials; seven months ago a judge approved a request that all charges be dropped. The speculation since then has been heavy about what he'll do next. His answer: Qatalyst Group, an advisory and merchant banking outfit. It looks to be a blockbuster. His press release included quotes from, among others, Google CEO Eric Schmidt. No longer a pariah, he will not lack for business.

For more:
- here's the New York Times item

Related Articles:
Quattrone wins! No third trial. Article
Quattrone ready to take Wall Street by storm. Article
Frank Quattrone eyes a golden future. Article

Yahoo's options dwindle

Thu, 14 Feb 2008 06:59:58 -0500

Yahoo may have been hoping to goose Microsoft's bid. A few hedge funds were angling for much the same, as is Bill Miller (see next item). But the New York Times notes that a higher bid does not appear likely. Yahoo has held white-knight talks withe likes of Google, AOL, and most recently News Corp. But who is going to pony up any more? Apparently, no one. So Yahoo's best hope to remain independent may rest with the antitrust division of the Justice Department. Hardly a comforting thought. Yahoo is even more out-manned in Washington. Microsoft has retained Innisfree M&A, a proxy solicitation firm, signaling that it is prepared to fight. Most think that Yahoo will cave in before it gets to that. Stay tuned.

For more:
- here's the article

ALSO NOTED: Goldman Sachs aims to grow prime brokerage business in Asia; Moody's adjusted loss assumptions for 2006 CDOs; and m

Tue, 05 Feb 2008 06:59:50 -0500

Company News:
> Legg Mason buys 13,500 shares. Article
> Many options for Yahoo? Article
> Bayou fallout: Goldman Sachs prime brokerage to be probed. Article
> Goldman Sachs aims to grow prime brokerage business in Asia. Article

Industry News:
> Google dips below $500 for first time. Article
> Banks set carbon guidelines. Article
> Icahn owns nearly 10 percent of Greenbrier. Article
> Moody's adjusted loss assumptions for 2006 CDOs. Article
> More on bond insurer rumors. Article
> CMBS delinquencies to rise? Article

Regulatory News:
> SEC probes SocGen director's sales. Article

And Finally... Does this stress reducer really work? Article