The Telegraph reported on David Levin's attitude surrounding the sale of UBM's data service business unit. The asking price? About two hundred and thirty pounds or so. That's over $400 million. To give a bit of perspective, the New York Times market cap is sitting around $1.4 billion.
Sources inside the Ottawa division of the company claim that Levin was fond of more than just reminding staff that the events businesses were the highest performing. In other words, the TechInsights business was pulling in very little considering the investment and continuing high operational cost structure. Its margins were the lowest in the company. Better to stick with the party...err event planning. (The partying is Mr. Levin's word choice - not mine. In
another Telegraph interview
- about the death of media particularly print, Mr. Levin said this in relation to his events business, "You get everyone together and it's like a party, a great party.")
Many have asked who would buy. I think the Telegraph's speculation might be the best of many odd possibilities. IHS was the first company that came to mind when I first heard about the impending sale.
Participants in Ottawa's reverse engineering community are often asked why the two largest competitors - Chipworks and UBM TechInsights - don't merge. A central figure in the reverse engineering business is Terry Ludlow, current Chair and CEO of Chipworks. Mr. Ludlow led the Mosaid Technologies group as it spun out into Semiconductor Insights. After starting the first independent RE company in the National Capital, he went on to found Chipworks. There's no one better positioned to answer such questions.
When I asked Mr. Ludlow if Chipworks was interested in buying UBM TechInsights, he had this to say: "Chipworks considers UBMTI to be a valuable company and a vigorous competitor, but it does not make business sense for Chipworks to buy them."
When I asked Mr. Ludlow if Chipworks was interested in buying UBM TechInsights, he had this to say: "Chipworks considers UBMTI to be a valuable company and a vigorous competitor, but it does not make business sense for Chipworks to buy them."
There is a strong principal behind the need for multiple players in the intellectual property support business for the same reasons more than a single legal firm is required for balance. There are always two sides in a patent dispute, and each needs independent technical representation in the same way both parties need independent legal counsel. Of course, there are many more technical consultants capable of providing the evidence and analysis required for licensing and litigation, so a merger of the two larger firms would not preclude independent technical support for microelectronics companies in their patent battles.
But there is still a business aspect. A merger would create numerous conflict issues meaning that total corporate revenues of the hypothetical new entity would be only a fraction of the sum of its parts.
But there is still a business aspect. A merger would create numerous conflict issues meaning that total corporate revenues of the hypothetical new entity would be only a fraction of the sum of its parts.