Local.com Takes $10M Line of Credit

Picture 13The company’s press release says:

The facility will primarily be used for expansion of the company via potential acquisitions, and to fund strategic growth initiatives.

This made me think that there are probably some M&A opportunities in local but it seems like nothing’s going on. I’m sure there are some “fire sale” prices out there.

Scott Wolfgang of Hearst said well over a year ago (maybe a couple) that he was concerned that the natural buyers of startups in local were the YP publishers and newspapers, both of which were in financial distress and probably couldn’t make the acquisitions that they otherwise might like to.

What do you think? If you were sitting on a pile of money ($10M may not be enough), who would you buy and why in the local segment?

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2 Responses to “Local.com Takes $10M Line of Credit”

  1. Scott Says:

    Thanks for the shout out Greg. I think it is really tough for the traditional media guys to play in this space right now. Even if they did have access to capital, they are so entrenched trying to deal with their unwinding businesses that I don’t think they even have time to look up. Given we are investors in a number of businesses in the local space, I’ll leave it to the others here to comment on what they would buy :)

  2. Greg Sterling Says:

    Hey Scott hope all is well — as much as can be expected under the circumstances :0

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