What do you think of the > AutoTrader / HomeNet acquisition?

Mark Boyd
Do you think this is a good thing for the dealers? For HomeNet? For HomeNet's competitors?
Jared Hamilton
I think it will be good. I view this as a huge platform play for autotrader. They are picking up some of the very important assets that dealers need to effectively market their inventory online. As they piece this puzzle together (autotrader+ kelley blue book + vAuto + homenet) they can create a much more seamless process for the dealers and get the technologies to talk together much more nicely. However the fear is that for the dealers that are not big autotrader fans, they see a company they and not into growing more powerful. Autotrader needs to (and from what I see is...) addressing this fear. BUT ... to put it bluntly, yes I think this and the other deals autotrader has done can have a hugely positive impact for dealers. Id love to hear others thoughts too.
Jon Groenig
I might be wrong here, but I see these aquisitions as a way for Autotrader to grow their business and increase their sales revenue. Let's face it, Autotrader has pretty much saturated their market with no room to really grow, and you also look at the fact that many dealerships have closed in the last few years, the Autotrader pool of business has gotten much smaller. KBB is one of those products that is already in every dealership that needs it, but V Auto and Homenet are two products can be upsold to existing dealers that already have Autotrader or KBB. I think you are going to see a lot of growth in the V Auto and Homenet sales in the coming years and in turn an increase in the bottom line a Autotrader.
Jared Hamilton
another thing to consider Jon, is how well Kelley is currently monetizing its data, and traffic. KBB is one of the strongest automotive plans on the planet, but IMHO, there are lots more really creative ways they can monetize their assets that they are currently not doing. When you consider the combination of Autotrader, KBB and potentially data from vAuto and Homenet collectively it opens up some real creative business channels. Sure its a revenue thing, I totally agree, and its all because they will be able to do some cool things in the market.
James Jalali
Jared, I agree with you that having all these products work together could create a seamless process, but I know that it would as well drive off all competitions off market, which is not a good thing for dealers. We have seen that over and over again, and in automotive industry the last case was Carfax, Autocheck issue. Definitely it is not a good sign when there is less or no competition in market.

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