Isentia exits content marketing, downgrades profits and ends legal war with Meltwater
Media monitoring service Isentia has given the stock market a triple shot of bad news with the announcements the company will be exiting the content marketing business, settling its legal dispute with competitor Meltwater and expects a 23% profit decline.
Isentia, previously Media Monitors before its 2013 rebrand, acquired King Content two years ago in a deal worth up to $48 million to move the company into the content marketing industry.
Isentia’s Croll: “Our focus remains on the core operating business”
In August, the company killed the King Content brand and wrote off the $37.8 million it paid for the business. Isentia has now decided to move away from content marketing altogether.
OMG, can’t be classified as anything other than a cluster-fark! Will offer some good fodder for MBA “how not to” case studies.
I don’t understand why shareholders haven’t fired Croll
He flushed cash worth 10% of Isentia’s current market capitalisation on an acquisition that had no clear strategic fit, was over-hyped and over-valued, and without performing proper due diligence on the market for its services, its books, its business model or its customers.
A business.
A brand.
People’s livelihoods.
Careers.
And a shit tonne of money.
Flushed ever so gently down the gurgler.
Seriously…