The Rise and Fall of HandHeld Entertainment

Several months ago I reported on eBaumsWorld.com being acquired for several millions of dollars. A month after that post, I made another one about how the company that was purchasing eBaumsWorld.com, saw a huge increase in their ComScore figures. The company that acquired eBaumsWorld.com and multiple other high traffic entertainment sites is HandHeld Entertainment and their stock symbol is ZVUE. Why is this relevant to affiliate marketing? It’s completely relevant, because all of the acquired web sites made their money from Affiliate Programs and CPM based advertising. Let’s take a look at the RISE and FALL of ZVUE.

The two year high for ZVUE, was back when they first announced they were acquiring Dorks.com for a million dollars. ZVUE went on to acquire several other sites such as FunMansion.com, YourDailyMedia.com and PutFile.com. In my previous post I did a break down of how much each site was acquired for, but based off their earnings and traffic levels, I would say ZVUE overpaid on all of them. Unfortunately for many of the site owners, their deal included a large portion of STOCK, instead of complete cash deals. Now their million dollar deals have dwindled in size to multi-hundred thousand dollar deals. (Yet another deciding factor to think about when deciding if you should Sell or Not to Sell.)

Before YouTube & 2.0 Sites, EBaumWorld.com was King.

Today ZVUE stock is at a miserable .39 per share and down 71.59% on the year. To make matters worse, ZVUE was issued a Delisting Warning Letter from NASDAQ today. I can’t imagine there is much hope for this company should they get pushed down to the pink sheets. It’s amazing how badly their numbers and stock price has dropped since the acquisition of eBaumsWorld.com, which is still a powerhouse in the entertainment area. With the stock price now as low as it is, an acquisition from another company could make sense, even just for the amount of volume of traffic it’s network of sites produce.

What do you think of ZVUE’s performance with it’s network of web sites and have you ever attempted to make money in the video/entertainment niche area?

 

(Disclaimer: I do not recommend buying or selling this stock. This is simply a write up based on a company that deals with web sites and affiliate marketing. This post is in no way intended for action on your part based on making money or stock trading. You are responsible for any actions you take, whether it is affiliate marketing or through the stock market.)

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