Feeds

Freeserve deal provokes little enthusiasm

Depends which way you look at it

  • alert
  • submit to reddit

The Power of One eBook: Top reasons to choose HP BladeSystem

Despite the significance of yesterday's announcement concerning the sale of Freeserve to French outfit, Wanadoo, the deal has received a lukewarm reception from commentators and investors alike.

Which begs the question: who got the best deal?

Has Dixons slipped Wanadoo top merchandise at a knockdown price - or is Dixons well shot of Freeserve?

Or, to put it another way, did Dixons hand France Telecom the crown jewels of Britain's Internet industry - or did it give 'em a knackered old beast infected with BSE?

Well, shares in Freeserve and Dixons both fell yesterday on the news, which suggests that investors aren't that fussed.

The Express ran the headline today "Freeserve gloom as it falls to French" - which kinda says it all.

Peter Misek, a senior analyst at Chase H&Q, is widely quoted in many of the papers as saying that the £1.65 billion valuation of Freeserve and the meagre premium was "disappointing".

He did concede that the deal made strategic sense.

In its assessment, the FT maintains that Freeserve "could not afford for the deal to fall through, especially after the collapse of its talks with T-Online."

The Gurdian quotes Robin Hutchings, analyst at West LB, who said: "At the end of the day this deal is about exchanging poor quality paper for slightly less poor quality paper."

So what do you think? Has France Telecom been handed the Crown jewels or mad cow disease?

You decide. Check out the Register Forum to voice your opinion. ®

Related Links

The real story behind the Freeserve Wanadoo deal
Freeserve and Wanadoo get hitched

Top three mobile application threats

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.