Google's Revenues Threatened by Geico and 3Com Acquires TippingPoint for $430 Million

Strategic Insights -

A federal judge in the United States is set to rule on a trademark dispute that could significantly impact Google's advertising revenue. Attorneys for Geico, the auto insurance giant, argue that Google should not be allowed to sell ads to rival insurance companies triggered by typing Geico's name into the search engine. Meanwhile, 3Com Corp. has agreed to acquire TippingPoint Technologies Inc. for approximately $430 million to boost security for its network offerings.

Key Takeaways:

  • A federal judge is set to rule on a trademark dispute that could threaten millions in advertising revenue for Google Inc.
  • Geico's attorneys argue that Google should not be allowed to sell ads to rival insurance companies triggered by typing Geico's name into the search engine.
  • 3Com Corp. has agreed to acquire TippingPoint Technologies Inc. for approximately $430 million to boost security for its network offerings.
  • The acquisition price includes closing costs and assumed options, representing a 13% premium over TippingPoint's closing price of $41.66 on Friday.
  • The acquired company, TippingPoint, specializes in network security products, including those for Voice over Internet Protocol services.
  • The Marlborough-based 3Com Corp. is seeking to beef up its security offerings in the wake of the acquisition.
  • AirRover Wi-Fi Corp. has announced an agreement to acquire Diamond I Technologies, a privately-held California-based computer software developer.
  • Financial News USA, the source of this news, is a Next Generation Financial Communications firm focused on distributing market-moving news.

Statistics:

  • Approximately $430 million: The acquisition price of 3Com Corp. for TippingPoint Technologies Inc.
  • $47: The cash offer per share of 3Com Corp. for TippingPoint's stock, representing a 13% premium over the closing price of $41.66.
  • $430 million: The total purchase price including closing costs and assumed options.
  • 13%: The premium over TippingPoint's closing price offered by 3Com Corp.
  • 41.66: TippingPoint's closing price on Friday before the announcement of the acquisition.

Sources:

  • M2 PressWIRE - 14 December 2004
  • Financial News USA (OTC: FNWU)