Microsoft Selling Greenfield’s Surveys Unit To Paris’ Toluna, Keeps Ciao
Microsoft (NSDQ: MSFT) is selling a chunk of online surveys operator Greenfield Online to Paris-based online research panel provider Toluna for $40 million. Zelnick Media had planned to buy last September, but the deal collapsed.
Microsoft acquired the group for $486 million last year, but mainly wanted its European shopping price comparison service Ciao, which is now being integrated with Bing. As we reported at the time, Microsoft said it already had a buyer in mind for the remainder of the company. It’s been a long time coming, but now France’s Toluna confirms it’s buying Greenfield’s Internet Survey Solutions division with the intention of using Greenfield’s Wilton, CT, HQ as its base for a US expansion.
But Toluna is having to turn itself inside-out to finance the acquisition – its largest shareholder, the London-based Eurovestech fund, is selling its 13.38 percent stake to Brussels-based family private equity vehicle Verlinvest, and Taoluna is seeking has raised £28 million through a new share placing. It also expects “several million dollars of synergies”, but for the deal to enhance its earnings as soon as the 2010 calendar year.
Toluna says Greenfield will make it the “largest independent global provider of panels and technology to the market research industry”, with 11 percent global market share. Integration will begin “immediately”.
Toluna CEO Frederic-Charles Petit told me: “The part we’re buying was valued at $125 million (when Zelnick agreed to buy), but the deal failed because the finance was from Lehman Brothers (the credit crunch bit). It’s a very interesting price and we’re very happy. If you want to be a leader in this market, you need to be a leader in the US.”
Toluna already works as a vendor for market researchers TNS and GfK and its clients include easyJet, ITV (LSE: ITV), Iceland, Canal+ and British Airways; Greenfield works with research agencies. “They have very strong technology complementary to our technology. Our clients want stability within the supply chain.”
Wow…
I wonder if they will just keep the panel and let everything, and everyone else, go.
Greenfield is a sinking ship, not really sure Toluna can do much here or salvage anything.
Yes, I agree Ricky. Seems this is the end of the Green Machine.
A friend of mine at Greenfield told me they already had 2 waves of layoffs. This very well may be the final blow that will finish them off.
Not to mention that a handful of their top execs have jumped ship along with numerous sales staff members. I wonder who is the top player now?
I think it starts at the top. Instead of laying off the people that do work why dont they lay off the garbage running that company for the last 3 years. Where did they get their degrees….. Clown College?
You are right Danny. I am sure they are all a bunch of clowns over there. They should change their name from Greenfield to Layoff-field because that is all that seems happen at that place.
This really does not come off as a surprise. MS did right by selling off Greenfield and the quicker the better. All the Greenfield execs care about is making money for themselves and not contributing to their company or the industry. I can only hope that Toluna can turn things around right away for the benefit of the industry as a whole.
How does this acquisition give Toluna a US presence? Word is that Greenfield has no US panel left and aggregates from other providers while turning to their river sampling. No good if you ask me.