Bazaarvoice completes $30M sale of PowerReviews to Chicago company
Jul 3, 2014
Austin Business Journal
Bazaarvoice Inc. on Wednesday said it had completed the sale of PowerReviews LLC to a Chicago company.
Austin-based Bazaarvoice’s deal with Wavetable Labs LLC, the parent company of Chicago-based Viewpoints LLC, was prompted by a federal judge’s ruling in January that Bazaarvoice (Nasdaq: BV) executives violated federal antitrust regulations acquiring California-based PowerReviews in June 2012, saying that the company could then manipulate customer prices.
The $30 million sale — first proposed in April— resolved the antitrust lawsuit filed by the U.S. Department of Justice last year. Bazaarvoice paid $168 million for rival PowerReviews two years ago, according to a Wednesday filing with the U.S. Securities and Exchange Commission.
Bazaarvoice, founded in 2005, manages online product ratings and reviews for companies such as Wal-Mart Stores Inc. (NYSE: WMT) and Best Buy Co. Inc. (NYSE: BBY). It employs almost 800 workers.
In June, the company posted a fourth-quarter loss of $23.6 million, or 31 cents per share, on revenue of $43 million compared with a loss of $23.1 million, or 32 cents per share, on revenue of $38.9 million during the same period last year. For the full year, Bazaarvoice reported a loss of $63.1 million, or 84 cents per share, on revenue of $168.1 million versus a loss $63.7 million, or 92 cents per share, on revenue of $146.8 million during previous fiscal year.