The electronic bulletin board sites are the focus of industry consolidation, and Homeless Ltd. is the latest target. Sources inform ''Globes'' that a leading media interest is seeking to acquire the housing classified ads website. The buyers are reportedly either Walla Communications Ltd. (TASE: WALA) or Yediot Ahronot Ltd., which owns Homeless competitor Winwin.
Thursday's deal between portal Nana and online classified ad site Yad 2 has apparently put pressure on both Walla and Yediot Ahronot to acquire their own electronic bulletin board or to leverage existing services.
The buyer of Homeless will apparently merge the site with its own electronic bulletin board activity in an effort to dominate the market, and attempt an acquisition of at least 90% of Homeless. The amount of the takeover is not known at this time, but industry sources believe that a company value of NIS 60-80 million is reasonable, given the website's market dominance and high profitability. The company was founded in 2000.
Homeless founder and CEO Paz Dror declined to confirm or deny the report, merely saying, "The companies and powers that will fight for the electronic bulletin board market are now being built."
Walla said in response, "Walla's growth strategy as the Israeli Internet market leader includes acquisitions, and we're constantly examining various options."
A source close to Yediot Ahronot confirmed that there were negotiations, but said that the company had withdrawn its offer to acquire Homeless.
Homeless's sites also include Cartel for cars; Vofree a site for downloading movies as well as television series aired on Channel 2 franchisee Reshet Television Ltd.; and Web3, which sells advertising to Reshet, and the cable Sports 5 and Children's channels.
Published by Globes [online], Israel business news - www.globes-online.com - on December 3, 2007
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