AutoTrader.com Agrees to Buy HomeNet Automotive

[Jeff Kershner]

I would likely say an IPO is in the future.

I have received a lot of emails today asking me what I thought and why. I don't initially have an opinion. However, as I and others have stated in the above comments, AT has acquired several points of extremely valuable data. The questions is, can they connect the dots and if they do, how long will it take. More importantly will it swing in favor of the consumer or the dealer or can they find a balance, or does it even matter as our industry landscape progresses and changes.

I hope only the best for my many friends at Homenet thru any changes. I have been with Homenet for around 10 years and have made some great relationships with many of the employees there.

 

[Eric Miltsch]

@Larry,

The innovation we're seeking couldn't come from ATC alone - it'll happen as a result of their collective resources.

I'm not making blind predictions, but I am going off the conversations & feedback from those involved w/product dev.

The captains driving these ships are taking these leaps to prevent that historical malaise from continuing...

Sure, the entire exercise is one big bet. But they won't reach that goal without significant innovation & change.

 

[LarryBruce]

@Eric

Agreed, there is the potential for great product and learning with the data that is collected from the sites ATC has acquired.

Having been thru corp. bureaucracy in the past and the competing agendas of acquisitions, I am not putting much hope that ATC will bring anything more than higher pricing with little value.

For the dealers I hope I am wrong.

 

[Scott McIntosh]

Competition is key in this arena. Just as the Dealer Specialties type of work has gone internal with several dealers, it will only benefit them to move inventory hosting there as well. HomeNet is a good company but there is no reason many dealers couldn't replicate the idea - as long as the vendors (ATC, Cars, etc.) getting the finalized inventory can establish and accept a standard industry wide import protocol.

Are there suggestions for an industry standard inventory export/import process anywhere yet?

 

[Al]

google Oxymoron.

you'll find "AutoTrader.com and innovative product releases"

get ready for your rate increase calls.

 

[Rob Fontano (blog)]

It has been over a year since AutoTrader had a inventory management and export tool, so it makes sense that they would buy one instead of reinventing the wheel, but like so many of the discussions regarding AT I have to ask "How much?"

AT is and has been the most expensive line on Internet marketing budgets for a long time. Most dealers are in the "you just have to have them" boat.

If AT decides to incorporate some of these new technologies into their existing product and give dealers a real sense of value and enhanced results then great, But if these new acquisitions mean another $1,500 a month ad on (Trade in Market Place) Then it would have to be something that actually worked and produced a worthy ROI. If not then they may simply be diluting a product that’s value has been in question for quite some time.

 

[Eric Miltsch (blog)]

@Larry,

I can appreciate how your experiences w/the corp. red tape skews your optimism...

I'm also hoping to see more of the value-added features that a site like AutoTrader should have - without adding any additional costs.

 

[dwhitemd]

I would predict that, from a dealer's perspective, there will be very little in the way of noticable changes in innovation. Where the most obvious change will come from will probably be in the interaction with the reps. The reps for AutoTrader, vAuto, KBB, and now HomeNet will begin to cross-promote the other products, particularly with special offers to combine product offerings. And there will no doubt be a consolidation of effort and manpower so that the logical next step would be for one rep to be able to sell (and get paid on) all products. A likely scenario: AutoTrader offers HomeNet in a "bundled" package at a slightly reduced price - and says "We accept inventory feeds from HomeNet every hour (or in real time) all others are once a day, 5 days a week". You can decide if you think that this is a positive or a negative from the dealer's perspective.

 

[mo_radji]

This acquisition is different from KBB and vAuto in the sense that ATC managers will be running Homenet directly.

Given the deep integration that currently exists between HomeNet and ATC, I think the management move highlights the big plans that ATC has for homenet.

what do you all think?

 

[Todd Mathews]

If I where one of the emplyoee (especially) sales reps of one of the companiies just purchased I would be looking for a new gig within the next year. The honeymoon will last about a year and then the consolidation will begin. When ADP purchased BZ Results back in 2006 it took about a year before the honeymoon ended and then the ax was pulled and the whacking began