How to Expand? Fraud Sciences, LX.TV Acquired

Filipino firms prefer to grow organically rather than externally.

A classic example is a potential franchisee, in the process of deciding which company to buy a franchise from, ultimately decides to start his own franchise. That’s why you see so many franchise ads at the back of Entrepreneur magazine.

We tend to overlook the available external sources of innovation we can use to grow such as outsourcing, strategic alliances, and acquisitions. Company X chooses to hire an HR person or DIY — rather than contracting a headhunter; media companies will more likely build their own IT department and hire full-time designers/programmers — rather than partner with or acquire firms with existing know-how.

What are we so afraid of?

While I’m on the lookout for which Pinoy web startups are blessed to raise some funds, I’m still astonished with the number acquisitions going on in the world of the wide web.

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An Israeli company does it again. Paypal (owned by eBay) acquires Fraud Sciences– an Israel-based firm that specializes in fraud management — for  $169 million. The deal will close in 30 days.
Fraud Sciences COO Yossi Barak and founders Shvat Shaked and Saar Wilf will join Paypal’s technology and fraud management teams.
With Paypal slowly but steadily presenting itself as a viable online payment solution for local merchants, the enhanced risk management should help lessen the stigma that a lot of potential local consumers still have about giving their credit card info online.

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NBC Local Media Division acquires LX.TV - could be worth $10 million
Just the other day, I was so smitten with the really cool NYC-based LX.TV. They show high-quality video reviews and features of restaurants, the night life, and everything about lifestyle. It’s not just a Youtube show; it’s like a really good TV channel that just happens to be online. I admire what they’ve done, given that they raised funds from family and friends.

Part of LX.TV’s appeal to NBC Local Media is its out-of-home use—for instance, NYC taxis—at a time when NBC is expanding its out-of-home reach and advertising efforts. NBC Local Media just announced another new business unit: Everywhere, to focus on that growing market.