Home / Advertisers / What a busy week: Facebook IPO fiasco, Adam & Eve goes for mind-boggling £60m, Jeremy Hunt on way out and why aren’t we on Google News?

What a busy week: Facebook IPO fiasco, Adam & Eve goes for mind-boggling £60m, Jeremy Hunt on way out and why aren’t we on Google News?

OK, let’s take it from the top: Facebook’s IPO was a fiasco as there was clearly information available about the company’s struggle to reach ad revenue targets that were made available to some investors (the big boys) and not the millions of others who bought into the massively over-priced IPO.

This is just Wall Street up to its old tricks you may say (and you’d be right). But it casts the whole social media sector into disrepute and makes life much harder for any other such medium that seeks to raise money from public markets. As our commentators have said here, it was a decent buy at about nine bucks a share, plain ridiculous at 38.

As is the the price, a maximum £60m, paid by Omnicom for London hotshop (John Lewis and all that) for Adam & Eve. Adam & Eve employs about 70 people so its maximum revenue (unless it’s discovered something none of us knew about) is about £150,000 per head, ie £10.5m. That’s about £2m profit max, so Omnicom is paying a multiple of 30 times, even with highly-forgiving accounting.

So it’s a generous price to put it mildly, but if it helps boost DDB to second place in the UK Top 20 after Omnicom UK flagship AMV/BBDO, maybe it’s worth it. Anyway, well done messrs Murphy, Golding and Priest. But can the zillionaires inspire the remaining troops at DDB?

As to hapless culture, media and sport secretary Jeremy Hunt (pictured), he’s surely toast. We haven’t written anything about the UK’s Leveson Inquiry into media ethics this week because it’s become clear by now that there aren’t any. As for the politicos, Hunt had been a cheerleader for News Corporation’s bid for the 61 per cent of BSkyB that it didn’t own, long before he got saddled by PM David Cameron with adjudicating on the bid.

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He allowed his ‘special advisor’ to schmooze News Corp while affecting to be playing everything by the rules, taking advice from media regulators Ofcom, etc.

So Hunt’s got to go, and will go. But what about Cameron? Either he made a monstrous misjudgement in charging Hunt with the job after Vince Cable had been bumped off it (for saying he hated Murdoch) or he was trying to smooth Rupert’s path. Cameron’s either lazy or incompetent (we’re being polite here).

And after these big issues what about Google News? Well why isn’t Moreaboutadvertising on it? We’ve submitted the site (twice) but Google doesn’t reply. If we rebranded the site as, say, ‘West Country Farmed Rabbit’ we’d probably be on it tomorrow.

A while ago I contributed to a gossip site called Blatherskite which was on Google News on its first day (with nary a viewer) because someone knew someone at Google.

I know that people at Google read us, from its own Analytics system.

So what’s the problem Googlers?

Still, why spoil an interesting week with such bile?

Here’s something for the weekend (from a much more distinguished grumps than me).

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About Stephen Foster

Stephen is a former editor of Marketing Week and London Evening Standard advertising columnist. He wrote City Republic for Brand Republic and is a partner in communications consultancy The Editorial Partnership.
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