Jingle's free 411 service aiming for $175 million sale
Free directory assistance has a price after all: $175 million. That's the price we hear Jingle Networks is trying to get for its 1-800-FREE-411 service, which gives free business listings in exchange for playing ads. Google, Microsoft, and AT&T are all preparing bids. But a source who has looked at Jingle's numbers say it will be lucky to get full price: "It's maybe worth $90 million." By late 2006, Jingle had raised $60 million; we hear it's since blown through that, and taken on debt besides.
The odd thing: Why would AT&T, Google, or Microsoft pay anything for Jingle? All of them have launched or acquired free directory services in the past year. AT&T is the most logical buyer, since its Ingeniu unit, which reports up to executive Ray Wilkins, actually sells ads for Jingle. Letting it go to Microsoft or Google would mean losing an outlet for its pay-per-call ads.
"I would say Google wins this one," says our source. "Google would do anything to take a stab at Ray Wilkins," a feud that dates back to AT&T's acquisition of Ingenio. That's always the most entertaining reason for an acquisition: not profit, but revenge.