ThingWorx parent PTC partners with Rockwell Automation ($ attached); Bulotta back in corporate fold at Microsoft
Tom Paine
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After seemingly getting close to GE, which is obviously dealing with its own share of problems lately, over the past few years, ThingWorx parent PTC found a new strategic partner last week; Rockwell Automation , which invested $1 billion in PTC for less than 1/10th ownership. And starting Monday, PTC will hold its annual IoT-oriented LiveWorx conference in Boston that is expected to attract about 6,000 attendees.
Where this will leave ThingWorx as a brand name and organization is hard to say; its center of gravity has been gradually moving north for some time, and now only 40 ThingWorx employees are still in Pennsylvania per LinkedIn.
PTC was a shrinking CAD/CAM software firm ( originally Parametric Technologies ) left over from the 1980s when it bought ThingWorx at the end of 2013 for $100 million plus. PTC's share price has more than doubled since then, perhaps more of a result of PTC's growing mindshare of industrial IoT rather than actual results. PTC is moving its headquarters from suburban Needham to Boston.
The Boston Globe has a piece on PTC's rebirth ( "How Boston software maker PTC came back from the brink") .
In related news, ThingWorx cofounder Rick Bulotta, who has been mostly freelancing since leaving PTC, has shown up in a new uniform: Microsoft's (H/T Technical.ly Philly). Microsoft has partnered with PTC in a number of IoT initiatives.
Its a small world.
Avalara has great IPO; is King of Prussia's Vertex keeping pace?
Tom Paine
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Seattle-based Avalara began trading yesterday following its IPO, and the offering was quite successful for the tax software company. Shares closed up 87 percent at $44.94 after opening at $35. Shares were priced at $24 in the company's $180 million IPO on Thursday. It ended up with a market capitalization in excess of $2 billion.
Revenue in 2017 climbed 27 percent to $213.2 million, though Avalara continued to lose money - $64 million.
Much like subscription billing services such as Zuora, Avatar depends heavily upon transactions, particularly in the rising digital economy. Avalara see its current US TAM (total addressable market) as being in excess of $8 billion.
Avalara CEO Scott McFarlane, who co-founded the company in 2004, told CNBC's "Squawk Alley" on Friday that in the next seven to 12 years, sales tax will have to be entirely automated.
Avalara CEO: We want to be a part of every internet transaction from CNBC.
The last revenue figure I've seen for Vertex was "in excess of $200 million", according to then-CEO Jeff Westphal two years ago. Vertex has 1,000 employees on LinkedIn; Avalatra has more than 1400 employees. These two aren't alone in the market; a Thomson Reuters unit, OneSource, and CCH are also players.
My sense of the matter is that Avalatra has been aggressive in attacking the boundaries in the enterprise tax software market, while Vertex had been more cautious. Vertex may have some catching up to do in the enterprise and international markets where Aavalara is strong.
Vertex had made some significant changes in recent years. Headquarters has moved from Berwyn to King of Prussia; Jeff Westphal turned over the CEO job to David DeStefano; it shuttered an income tax prep business in Florida; and expanded its Cloud Platform and capabilities.
Whether Vertex can or needs to go public in the near future is something I don't know; but the controlling Westphal family may need to expand or alter its capital structure to compete in an amped up market, perhaps yielding some control. Another outside possibility is hooking up with a company like Zuora.
One other point I found interesting: Vertex has a close relationship with Oracle , and Vertex' cloud is powered by Oracle.
This is the end of Time Warner
Tom Paine
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— Peter Kafka (@pkafka) June 15, 2018
Time Warner is kaput. RIP.
The modern Time Warner was put together by a somewhat questionable character named Steve Ross, who operated parking lots. It was one of New York's glamour businesses, an iconic piece of Americana with big perks and expense accounts, and a cool headquarters building. Time Warner knew how to sell advertising.
When I was in business school, Time Warner was much admired. A strong old media standout with things going on such as HBO, cable systems, and interactive prototypes that in some ways envisioned the Internet.
But as the Internet began to materialize in the early 1990, Time Warner didn't know how to react and made several missteps, the largest being getting taken by a rather shady AOL outfit, and getting bought with stock that would quickly implode. Time Warner had more of an internet solution than AOL did. And Time Warner Cable, in later years prior to being spunoff, seemed to lag behind the rest of the cable industry.
The one smart move Time Warner made in later years was buying Turner Broadcasting.
2016 Gettysburg Address: Trump: Would not approve an AT&T / Time Warner deal, and would seek to break up Comcast / NBCU
Tom Paine
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Subscribe in a readerIn his speech at Gettysburg today, Donald Trump began by criticizing, among other things, what he sees as a concentration of power in a few media companies.
He said that if an AT&T / Time Warner combination came before him as President, it would not be approved. He also said that Comcast + NBCU was too powerful, and his administration would move to break it up.
"Additionally, Comcast's purchase of NBC concentrates far too much power in one massive entity that is trying to tell the voters what to think and what to do. Deals like this destroy democracy," Trump said.
"We'll look at breaking those deals up like that and other deals like that. This should have never ever been approved in the first place. They are trying to poison the mind of the American voter."
Trump also attacked Amazon for not paying (he must have meant not collecting) taxes. Amazon customers are now required to pay sales tax on their Amazon purchases in 29 states.
Trump comment's followed his complaints about media bias, against his campaign specifically.
Trump has several gripes against NBC (including, presumably, whomever leaked that video), and has been a frequent critic of the coverage of him by CNN (Time Warner) and the Washington Post, owned by Amazon CEO Jeff Bezos.
LLR Partners closes 5th fund at $1.2 billion; Three area firms among those already funded
Tom Paine
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LLR Partners, Philadelphia, announced the final closing of its latest buyout fund, LLR Equity Partners V, at $1.2 billion.
Its previous fund, LLR Equity Partners IV, closed at $950 million in March 2014.
LLR invests $15 to $100 million in companies having revenue up to $100 million.
LLR Equity Partners V has already invested in 8 companies, three of which are in the Philadelphia area: 3SI Security Systems (Malvern); eLocal (Conshohocken); and Professional Capital Services (Philadelphia).
Founded by Ira Lubert in 1999, LLR Partners says it has deployed $3.5 billion over 5 funds.
LLR Equity Partners V include the $54.8 billion Pennsylvania Public School Employees' Retirement System and the $30 billion Pennsylvania State Employees' Retirement System, according to the publication Pensions & Investments .
LLR recently published a video featuring managing director Michael Sala describing the firm's content strategy.
Comcast Makes Superior All-Cash Proposal to Acquire Twenty-First Century Fox after Spinoff of “New Fox” 06/13/18
Comcast Makes Superior All-Cash Proposal to Acquire Twenty-First Century Fox after Spinoff of “New Fox”
06/13/18
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$35.00 Per Share Proposal Provides Premium of Approximately 19% to Current Value of Disney’s All-Stock Offer
PHILADELPHIA--(BUSINESS WIRE)--Jun. 13, 2018-- Comcast Corporation (Nasdaq: CMCSA) issued the following statement:
Today, Comcast Corporation (“Comcast”) delivered a letter to the Board of Directors of Twenty-First Century Fox, Inc. (“21CF”) setting forth the terms of a superior proposal by Comcast to acquire the businesses that 21CF has agreed to sell to The Walt Disney Company (“Disney”) for $35.00 per share in cash, which represents a premium of approximately 19% to the value of Disney’s all-stock offer as of 12:00 p.m., noon (Eastern Time) on June 13, 2018. The structure and other terms of Comcast’s proposal, including with respect to the spin-off of “New Fox” and the regulatory risk provisions and related termination fee, are at least as favorable to 21CF shareholders as the Disney offer.
The following is a copy of the letter that Comcast delivered to the Board of Directors of 21CF:
June 13, 2018
Board of Directors
Twenty-First Century Fox, Inc.
1211 Avenue of the Americas
New York, New York 10036
Attention:
Mr. K. Rupert Murdoch, Executive Chairman
Mr. Lachlan K. Murdoch, Executive Chairman
Mr. James R. Murdoch, Chief Executive Officer
Dear Rupert, Lachlan and James,
We have long admired what the Murdoch family has built at Twenty-First Century Fox. After our meetings last year, we came away convinced that the 21CF businesses to be sold are highly complementary to ours, and that our company would be the right strategic home for them.
So, we were disappointed when 21CF decided to enter into a transaction with The Walt Disney Company, even though we had offered a meaningfully higher price. We have reviewed the publicly available terms of the proposed Disney transaction, as well as the joint proxy statement/prospectus filed with the SEC describing the reasons for the 21CF Board of Directors’ decision. In light of yesterday’s decision in the AT&T/Time Warner case, the limited time prior to your shareholders’ meeting, and our strong continued interest, we are pleased to present a new, all-cash proposal that fully addresses the Board’s stated concerns with our prior proposal.
Our new proposal offers 21CF shareholders $35.00 per share in cash and 100% of the shares of New Fox after giving effect to its proposed spinoff, providing superior and more certain value as compared to Disney’s all-stock offer. Our proposal represents a premium of approximately 19% to the value of Disney’s offer as of noon today. We are highly confident in our ability to finance the transaction, and our offer includes no financing-related conditions.
We are also highly confident that our proposed transaction will obtain all necessary regulatory approvals in a timely manner and that our transaction is as or more likely to receive regulatory approval than the Disney transaction. Accordingly, we are offering the same regulatory commitments as the ones 21CF has already obtained from Disney, including the same $2.5 billion reverse termination fee agreed to by Disney. To further evidence our commitment, we also are offering to reimburse the $1.525 billion break-up fee to be paid by you to Disney, for a total cost to Comcast of $4.025 billion, in the highly unlikely scenario that our transaction does not close because we fail to obtain all necessary regulatory approvals.
We welcome the opportunity to discuss the regulatory issues presented by each deal. We note that there should not be any meaningful difference in the timing of the U.S. antitrust review between a Comcast and Disney transaction. We have made our HSR filing today, which formally begins our regulatory review at the DOJ. In addition, we have already submitted a large volume of documents and data to the DOJ in connection with its review of the Disney transaction. This information largely overlaps with the information that the DOJ will need to review a Comcast transaction. As a result, our transaction should be reviewable by the DOJ in the same cycle as Disney’s transaction. We similarly expect that our transaction should be reviewable by international regulators in as timely a manner as the Disney transaction, and should be as or more likely to receive international approvals, given our relatively small presence outside the U.S.
Our Board of Directors has unanimously approved this proposal, and no Comcast shareholder vote will be required for this transaction.
Because of your decision to schedule the vote on the Disney merger proposal for July 10, time is of the essence for your consideration of our proposal. We are available to meet at any time to answer questions of the Board, management or your advisors, so that you are in a position to validate the superiority of our offer, and negotiate and enter into a merger agreement, as soon as possible thereafter. Given the very short time frame, today we are filing a preliminary proxy statement with the SEC in opposition to the Disney merger proposal, as we have been advised this is necessary to be in a position to be able to communicate with your shareholders directly regarding the votes they are being asked to cast on July 10. We hope this is precautionary only, as we expect to work together to reach an agreement over the next several days.
More detailed information regarding our proposal is attached.
I look forward to our discussions and working with you toward completing this exciting transaction for the Fox shareholders.
Very truly yours,
/s/ Brian L. Roberts
Brian L. Roberts
Chairman and CEO
COMCAST’S SUPERIOR PROPOSAL TO ACQUIRE TWENTY-FIRST CENTURY FOX
All-cash consideration
Comcast proposes to acquire 100% of the outstanding shares of 21CF for $35.00 per share in cash, reflecting a $65 billion equity value for 21CF (after giving effect to the proposed spinoff of New Fox) and a premium of approximately 19% to the value of Disney’s offer as of noon today.
Our all-cash proposal will provide 21CF shareholders with certain value and immediate liquidity. Our proposal is not subject to a financing condition. We have received Highly Confident Letters from Bank of America Merrill Lynch and Wells Fargo.
We have prepared a draft merger agreement reflecting the terms described herein and our legal team of Davis Polk and Wachtell Lipton are available to meet with their appropriate counterparts to discuss and review the document. Our draft merger agreement differs from the Disney agreement only to reflect the superior terms described in this letter, to adapt the agreement to reflect an all-cash transaction (including no Comcast shareholder vote) and to provide greater certainty by eliminating the need for any 21CF charter amendments. Our draft is subject to review of any material non-public information relating to 21CF’s proposed transaction with Disney, including with respect to Disney’s regulatory undertaking and the separation of New Fox.
Allocation of regulatory risk
We have revised our proposal to specifically address the 21CF Board of Directors’ stated concerns regarding the treatment of any required regulatory divestitures, including their tax costs, and a reverse termination fee.
We will agree to the same divestiture package as Disney, i.e., a commitment to divest (i) any of 21CF’s RSNs and (ii) other 21CF assets representing up to $500 million of EBITDA (less up to $250 million of EBITDA attributable to divested RSNs).
We will agree to the same allocation of any tax obligations as Disney in connection with any required divestitures.
We will agree to the same reverse termination fee of $2.5 billion as Disney, in the event the transaction does not close as a result of a failure to obtain the required regulatory approvals.
We will also agree to behavioral restrictions as extensive as those agreed to by Disney and, like Disney, we will also agree to litigate any action taken by the Department of Justice to block the transaction.
Reimbursement of Disney Break-Up Fee
In addition to our payment of the $2.5 billion reverse termination fee, in the unlikely event that our transaction is terminated due to a failure to obtain the required regulatory approvals, we will also agree to reimburse 21CF for the $1.525 billion break-up fee required to be paid to Disney in connection with termination of the Disney transaction and entry into a merger agreement with us.
Sky
Comcast has separately announced, pursuant to Rule 2.7 of the UK City Code on Takeovers and Mergers, a pre-conditional all-cash firm offer for the entire issued and to be issued share capital of Sky plc. We intend to pursue this offer in parallel with our acquisition of 21CF. Of course, the terms of any transaction between Comcast and 21CF will need to be consistent with our respective obligations under the UK takeover regime.
Investor Conference Call Details
Comcast will host an investor call with the financial community today, June 13, 2018, at 4:45 p.m. (Eastern Time). The conference call and related materials will be broadcast live and posted on www.cmcsa.com. Details for the call are as follows:
Investor Call
Date: June 13, 2018
Time: 4:45pm (Eastern Time)
Dial-in: (800) 263-8495
Conference ID: 6499356
Replay of Investor Call
Time: Available from 7:45pm (Eastern Time) on June 13, 2018 until midnight (Eastern Time) on June 20, 2018
Dial-in: (855) 859-2056
Conference ID: 6499356
About Comcast Corporation
Comcast Corporation (Nasdaq: CMCSA) is a global media and technology company with two primary businesses, Comcast Cable and NBCUniversal. Comcast Cable is one of the nation’s largest video, high-speed Internet, and phone providers to residential customers under the XFINITY brand, and also provides these services to businesses. It also provides wireless and security and automation services to residential customers under the XFINITY brand. NBCUniversal operates news, entertainment, and sports cable networks, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures, and Universal Parks and Resorts. Visit www.comcastcorporation.com for more information.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements which are, or may be deemed to be, “forward‐looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward‐looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Comcast about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward‐looking statements. The forward‐looking statements contained in this press release may include statements relating to the expected timing, scope, terms and conditions of a Comcast transaction to acquire certain businesses and assets of 21CF, the likelihood and timing of receipt of regulatory approvals with respect to a Comcast transaction to acquire 21CF, the anticipated benefits of the potential transaction and other statements other than historical facts. Often, but not always, forward-looking statements can be identified by the use of forward‐looking words such as “plans”, “expects” or “does not expect”, “is expected”, “is subject to”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Although Comcast believes that the expectations reflected in such forward‐looking statements are reasonable, Comcast can give no assurance that such expectations will prove to be correct. By their nature, forward‐looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward‐looking statements, including any legal and regulatory developments and changes and other risks and uncertainties including those described in Comcast’s filings with the U.S. Securities and Exchange Commission (“SEC”). The forward‐looking statements contained in this press release should be construed in the light of such factors. Neither Comcast nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward‐looking statements in this press release will actually occur. You are cautioned not to place undue reliance on these forward‐looking statements. Other than in accordance with their legal or regulatory obligations, Comcast is under no obligation, and Comcast expressly disclaims any intention or obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.
Important Additional Information and Where to Find It
This document does not constitute an offer to buy or solicitation of an offer to sell any securities. This document is for informational purposes only and relates to a proposal that Comcast has made to 21CF. Comcast is filing a preliminary proxy statement in connection with 21CF’s special meeting of stockholders at which the 21CF stockholders will be asked to consider certain proposals regarding the proposed acquisition of 21CF by The Walt Disney Company (the “Special Meeting Proposals”). As further set forth in such proxy statement, which once definitive will be sent to 21CF stockholders, Comcast is soliciting votes against the Special Meeting Proposals. INVESTORS IN 21CF AND COMCAST ARE URGED TO READ THE PROXY STATEMENT, INCLUDING THE DEFINITIVE PROXY STATEMENT (WHEN AVAILABLE), AND ANY OTHER DOCUMENTS FILED BY COMCAST WITH THE SEC CAREFULLY IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION. Investors may obtain free copies of the proxy statement and other documents filed with the SEC by Comcast through the website maintained by the SEC at http://www.sec.gov or by contacting Comcast’s proxy solicitation agent, MacKenzie Partners, Inc., at (800) 322-2885 or comcast@mackenziepartners.com.
Participants in the Solicitation
Comcast and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from 21CF’s stockholders in connection with the Special Meeting Proposals. Information about Comcast’s directors and executive officers is available in Comcast’s proxy statement, dated April 30, 2018, filed with the SEC in connection with Comcast’s 2018 annual meeting of stockholders. Other information regarding the participants in such proxy solicitation and a description of their direct and indirect interests, by security holdings and otherwise, is contained in the preliminary proxy statement filed by Comcast with the SEC on June 13, 2018.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180613006179/en/
Source: Comcast Corporation
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