April 30 - Deal Journal Blog (WSJ) - The good news: companies are negotiating mergers again. The bad news: these so-called strategic buyers don’t always seem to be acting very strategically.
Consider the Deal Journal’s “Say What?” deal of the day: today’s $465 million tie-up between United Online and FTD Group. United Online provides Internet access through its NetZero and Juno services, and flowers are sometimes sold over the Internet. Voila, an Internet marriage. Is it 1999 again?
Actually, dot-com mash-up synergies are part of United Online’s stated reasoning, as seen in the conference call to discuss the deal with analysts. United touted its “proven marketing expertise to attract consumers to FTD’s websites and thousands of member florists while cross-selling FTD products to United Online’s existing member base of more than 50 million accounts that have similar demographic characteristics as FTD’s customer base.” Read More.
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