Nextag
Brian cites a rumor that Nextag may have sold a majority stake for $1bn to a private equity firm. Although Nextag is a strong comparison shopping play, it is also a powerhouse in mortgage lead generation.
There were a string of comparison shopping acquisitions for around $500m in 2005. Lowermybills, the leader in mortgage lead generation, was bought by Experian for $330m in 2005.
Those acquisitions looked like a bargain as they surged in the first half of 2006 but Google re-structured the paid search economy with quality score updates soon after, which has squeezed the edges of comparison shopping and lead generation.
Whoever is buying (if they are buying) the stake in Nextag is largely ignoring that recent development, which potentially could threaten the livelihood of the industry.
Still, an indication of the changing financing landscape - where private equity plays a larger role as a conduit of companies that are reticent to go public but want a liquidity event.
