Omniture is bought by Adobe
Omniture is bought by AdobeOmniture web analytics company is sold to Adobe for $1.8bn.
Omniture has been bought for a massive $1.8 billion dollars by Adobe. This is a massive sum for the biggest web analytics provider and I’m sure that there are an awful lot of shareholders which are smiling on their investment (staff included).
Adobe has reportedly paid a 25% premium over Omniture’s closing price on Tuesday.
How will this impact the industry? What about WPP’s share in Omniture which was bought back in January 2009 for $25 million dollars. Omniture’s Press Release stated that WPP was sharing its ad-serving technologies such as:
- Open AdStream (24/7 Real Media’s advertising management system)
- Decide DNA (24/7 Real Media and GroupM’s search engine marketing systems)
- 24/7 Real Media and GroupM’s custom media audience network
- TNS Compete™ (competitive web benchmarking data)
- TNS Stradegy™ (multimedia channel advertising occurrence and expenditure data)
How has the market responded to Adobe? According to Bloomberg Adobe’s shares fell 5%! Michael Olson from Piper Jaffray & Co (a Minneapolis based analyst) believes this drop in the acquirer is typical.
“This provides them with a whole new revenue stream. Any time you do a big acquisition, the acquirer’s shares are down because of the element of risk that some investors aren’t comfortable with.”
This is going to take some time for Adobe to get a return on their investment – with Omniture’s sales reportedly at $87.6 million (up 22 percent) however, also reported a loss of $4.88 million in the same quarter.
I feel that this is one of those situations where design houses, ad agencies, consultants and freelancers are going to be watching with baited breath. Who is next? Is this the beginning of a trend of consolidation within the market place? Remember only a few months ago Microsoft canned Project Gaitneau (aka Microsoft adCenter Analytics). I will be keeping my eye out and seeing where things are going – what are your thoughts readers?
Related Links:
- Yahoo – “Adobe buys Omniture for $1.8bn, 3Q profits slide.”
- All Things Digital – “ADOBE buys web traffic counter Omniture”
- Bloomberg – “Adobe Agrees to Acquire Omniture for $1.8bn”
Still can not understand this. A few years ago at an emetrics Summit the speaker said that some day all web analysts were going to be running the BI of companies. Today we were talking about total customer analytics and all the tools for that. This is so far out in left field for us mere mortals.
From reading the PR and the forecast synergies, I believe that implementation and execution of the vision so that it is easy for companies to use will be the problem. Probably lots of great ideas for how to link creation to analysis to optimise sites for clients but it has to become seamless and easy to use.
Nonetheless, congratulations to the guys at Omniture.
Brewster, maybe this is the beginning of the consolidation of vendors. With Google Analytics being on the market for free for a number of years now and Yahoo Web Analytics coming onto the scene earlier this year.
What about Speed-Trap and SAS forming a partnership a couple of years ago?
Maybe it is only a matter of time before someone approaches Alex Yoder at WebTrends (maybe it will be Oracle or Business Objects) and start talking about integrating our companies. However, Alex is still using the word ‘independant’ when referring to WebTrends when writing on his blog today.
http://blogs.webtrends.com/alex/adobe%E2%80%99s-acquisition-of-omniture-benefits-the-entire-industry/
Adobe is paving the way for companies to monetize their internal content. Monetize, Analyze, Syndicate is the play here where every element of every contact can be tagged, tracked and “intelligent”. This is a brilliant move giving companies an ability to monetize every digital asset they create. This out googles Google with its attempt at Google Docs + DoubleClick’s DART. The Adobe Omniture combination bridges content tracking across external components, in-house components and community derived components. Webtrends is a great play here but may be outsider on intranets. EMC Documentum, SAP, Microsoft, IBM, Oracle, HP have some choices to make. Omniture may provide content transparency to drive BPM innovations and be used to power predictive analytics and dynamic content generation applications at big apps firms.
Michael R Hoffman
Michael – what about the embedded analytics with Sharepoint? Microsoft is spearheading this for internal news sites were content management systems don’t seem to be upgraded as often. WebTrends does work great with this.
Monetisation – this is a concept which is still taking off but slowly. I’ll write more about my thoughts on this in a future blog. I’m hoping to convert some senior ecommerce managers.
Thanks for the comment Michael.
Hello there,
Nice blog, I just came across it and I’m already a fan.