TrueCar Could be Acquired in the Next Month, Says Analyst
Ben Bergman
Ben Bergman is the newsroom's senior reporter, covering venture capital. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks. Follow him on Twitter.
The struggling Santa Monica-based TrueCar, which operates the nation's fourth largest online automotive marketplace, is ripe for an acquisition as soon as the end of next month, according to a new research note from the global financial services firm BTIG.
"Based on our inbound call volume, we believe many investors are wondering if TRUE is now an acquisition target," wrote analyst Marvin Fong.
BTIG says the answer is a strong maybe, given that TrueCar has several attributes of an appealing takeover target, including an empty CEO seat, a small group of big shareholders who own a considerable number of shares, and an attractive set of data on shoppers that would be useful to bigger companies.
BTIG thinks a takeover could happen in the next few weeks because TrueCar's board has said it expects to name a permanent CEO by March 31, which the bank believes would be seen as a sign the company is not for sale. Even if a deal does not happen soon, BTIG puts the odds at better than 50/50 that TrueCar is not a standalone company within the next 36-48 months.
"We see the merits of this idea as the overall listings space is stagnant and cost synergies could be meaningful, making consolidation a potentially value accretive route," Fong wrote.
TrueCar has been on a wild ride since serial entrepreneur Scott Painter founded the company in 2004.
It quickly became one of L.A.'s hottest startups after it appeared to be able to disrupt the half-century-plus relationship between consumers and auto dealerships. But dealerships were not about to go quietly, and in 2012, thousands of dealers exited the TrueCar network amidst complaints about bidding wars that meant they were losing money on transactions.
Still, the company went public two years later and shares have gone from a high of $25.00 to under $3 a share this week.
Michael Darrow has served as TrueCar's interim President and CEO since Chip Perry stepped down in June. Perry had been in the post since the end of 2015, when Painter departed.
In 2018, changes to Google's search algorithm caused a steep decline in TrueCar's website traffic. Just as the company was recovering from that and improving its SEO, USAA recently announced it would end its lucrative partnership, which brought in 29% of TrueCar's unit sales, in October.
USAA remains TrueCar's fourth-largest shareholder with about 9 million shares, which represents 8.5% of the stock.
From Your Site Articles
- TrueCar lays off 40 percent of staf - dot.LA ›
- George Floyd Protests: L.A.'s Tech Community Reacts - dot.LA ›
Related Articles Around the Web
Subscribe to our newsletter to catch every headline.
Culver City-based Airvet's mission to connect more pets with vets is getting a boost.
The company announced Friday they have raised $14 million in a Series A round to expand their telemedicine and telehealth veterinary network.
CEO Brandon Werber said he's seen the number of users and doctors on its platform surge during the pandemic, as homebound pet owners scrambled to find pet care online. The company — which was launched in 2018 — now has a network of 2,600 veterinarians across 43 states, according to Werber.
<p>The raise was led by Canvas Ventures and includes funding from e.ventures, Burst Capital, Starting Line, TrueSight Ventures, Hawke Ventures, Bracket Capital, Michael Stoppelman, and several major veterinary industry leaders. dot.LA founder Spencer Rascoff <a href="https://dot.la/st/about" target="_blank">is also an investor</a>.</p><p>Pet owners can download the app on Android or iPhone and set up a meeting with a licensed vet for a $30 flat fee per session. There's no time limit per session. Werber said often those sessions include follow-ups.</p><p>About 71% of pet owners go to Google or social media to answer their questions about their pet's odd behavior, Werber said, where they often get amateur advice that can put their furry friends at risk. That, he says, is the behavior he hopes Airvet can change. </p><p>He adds the platform isn't intended to replace in-person vet visits, but to give people unsure of whether to take their pet in another option.</p><p>"So the goal for us, isn't to say 'hey, use Airvet instead of going to the (vet's) office', it's 'use Airvet instead of going to Google,"' he said. </p><p>Werber is the son of "veterinarian to the stars" Dr. Jeff Werber, a regular face on KTLA <a href="https://www.usatoday.com/story/life/2017/05/06/dr-jeff-werber-delivers-top-notch-care-celebrities-pets/101278314/" target="_blank">who counts</a> Demi Moore, Rod Stewart and Nick Jonas's pets among his patients.</p><p>Werber calls his father the company's chief vet officer and the inspiration for the platform.</p>
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQyMDUyMi9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyNTAzODU0NH0.5TnBhcPcxkdI6aC61EOryEL3yq8iWteEqZbLl96JYWc/image.jpg?width=980" id="308be" class="rm-shortcode" data-rm-shortcode-id="4f6b1be03050fec300ff9d6d53bb43a0" data-rm-shortcode-name="rebelmouse-image" />
Photo courtesy of Airvet
<p>"The vet industry has no face," he said. "People don't know their own vets' name, 50% of pet owners don't even have a primary vet."</p><p>Telehealth <a href="https://dot.la/can-telemedicine-stem-the-spread-of-coronavirus-2645650007.html" target="_self">has been growng in popularity</a> during the pandemic, and healthcare apps like Cloudbreak and GoodRx have been expanding their businesses rapidly. Virtual veterinary medicine would be a logical next step.</p><p>Airvet provides both telehealth and telemedicine. The difference is subtle but important in veterinary medicine. Any user can download the app to get recommendations and suggestions from licensed vets. But only veterinarians <a href="https://www.avma.org/resources-tools/pet-owners/petcare/veterinarian-client-patient-relationship-vcpr" target="_blank">who have an established relationship with the animal and the owner</a> can actually prescribe drugs or care. In most states, that must be done in person, largely because a pet can't describe pain over video chat the way a human can. A vet often has to be physically present to assess the animal's condition.</p>
<p>Airvet can help establish those relationships, but for many, the app might be most useful to figure out whether their pet's condition is serious enough to require a visit to the local vet.</p><p>"Part of our business is we partner with vet hospitals [...] so that they can practice telemedicine with their own clients," Weber said, adding that the app can also be downloaded by "any pet owner in the country for telehealth and they can get advice and guidance and support and things from vets on demand 24/7."</p><p>Werber says the app's aim is to provide everyone the experience he had with his father, one of the nation's most recognizable vets, and someone he had on call at any time of day.</p><p>"I want every pet owner to know that they have a vet in their pocket, and if anything were to happen, day or night — even three in the morning — they can tap a button and a vet will be there to talk to them within a minute or less." Werber said.</p>From Your Site Articles
- airvet - dot.LA ›
- Airvet Raises $14M to Provide Telehealth to Pets - dot.LA ›
- Is Telemedicine At a Tipping Point? L.A. Doctors Hope So - dot.LA ›
- Cuddly Raises $4M to Help Animal Shelters Collect Donations - dot.LA ›
Related Articles Around the Web
Read more
Show less
The headlines seem to come every day now. From VC investment to audience growth, all metrics point to an explosion in the popularity of esports, even before the COVID-19 pandemic sent many people indoors. Now, as leagues, developers, publishers, players and the media all sit poised to ride this wave, it's important for all of us, especially the industry veterans, to pause and take a look at the bigger picture.
How do we ensure that this new influx of users and players become a true part of the community – not just for the short term, but for years to come?
<p>Esports has a reputation – some would say rightly deserved – for being insular. While the community has become more open and accepting in recent years, that sentiment still rings true, as with any subculture that sees "outsiders" come into the fold. There can be a bristling or resentment towards the newcomers. And on the business side of things, it's not uncommon to see teams or leagues take a short-term approach to the industry's new money.</p><p>The lifeblood of any sport is the fans. Without them, the games, leagues and media would simply disappear. It's paramount that new fans become part of the community and stick around for the industry to continue its growth trajectory. Here are three things industry leaders and executives can do to ensure this happens.</p><h2>K.I.S.S. (Keep It Simple, Stupid)</h2><p>Longtime gamers may have forgotten the first time they booted up their system and tried to play League of Legends, CS:GO or Rocket League. For the novice, everything about the experience is unfamiliar. The gameplay, the mechanics, even the terminology can seem like a foreign language. How we onboard new players is a critical step. Creating "light versions" or mini-games can help newbies get acclimated without leaving them feeling intimidated.</p><h2>Ensure Equitability, Not Just Equality </h2><p>If you give two players the exact same weapons, but one player is a 10-year veteran and the other has never played before, does each have an equal chance? It's not enough for new players to simply have the same opportunity. Yes, some people enjoy the challenge and are willing to put in long hours getting destroyed in order to build up their experience. But how many people get frustrated after being repeatedly killed, before they can get their bearings? </p><p>This even holds true for fantasy sports, where 90% of games are won by less than 5% of participants. By allowing users and/or players of comparable skill level to match up, everyone can participate at a competitive level, keeping more people engaged with the sport. At Esports One we're looking at instituting<a href="https://en.wikipedia.org/wiki/Elo_rating_system" target="_blank"> ELO</a>-style rankings for our users. With such a ranking system, we could minimize situations where the highly skilled (or deeply experienced) rack up wins against less experienced players. </p><h2>Continue to Build A Broader Ecosystem</h2><p>From a consumer perspective, some of the greatest advancements in sports have had nothing to do with rule changes. Think how the viewing experience for the NFL changed with the introduction of the yellow first-down line on television. Or how fantasy sports went from a niche hobby to a full-blown industry. These technologies and creative enhancements improved the experience for fans by adding layers to the core experience. This will be just as critical for the esports industry as it was for traditional sports. A good example here is the plethora of data generated by esports. Harnessing all the information and making it available in ways that enhance the viewing experience has nearly limitless opportunities.</p><p>The future of esports has never been brighter, and 2020 looks to be a pivotal year in its development. Now is the time for the industry to invest in creativity, technology and innovation to ensure that complacency and stagnation are avoided and the future reality lives up to the hype.</p><p><em>Matt Gunnin is the CEO and co-founder of <a href="https://esportsone.com/" target="_blank">Esports One</a></em><em> and a serial esportspreneur.</em></p>
From Your Site Articles
- PlayVS Esports League is Growing as HIgh School Sports Pause ... ›
- Los Angeles eSports Pivots Toward Amateur Leagues - dot.LA ›
- Esports One Provides 'Fantasy Sports' for Competitive Gaming - dot.LA ›
Related Articles Around the Web
Read more
Show less
RELATEDEDITOR'S PICKS