Quepasa.Com

11 Pages Posted: 21 Oct 2008

See all articles by Dana Clyman

Dana Clyman

University of Virginia (UVA), Darden School of Business (deceased)

Rodney Davis

affiliation not provided to SSRN

Timothy Plankey

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Abstract

This case is part of a three-party negotiation (see also UVA-QA-0576 and UVA-QA-0578). The three parties are Yupi Internet, Quepasa.com, and Sony Corporation. Sony is searching for a partner in the Hispanic and Latin-American portal space to carry its content in order to boost music sales. Sony is offering a variety of combinations of content and promotional support to the portals. A fascinating characteristic of this negotiation is that it is unclear whether the portals will pay Sony for access to its content or whether Sony will pay the portals for access to their audiences. The case is set up for Sony to get the two portals bidding for the contract. But the most value can be unleashed for all parties (including Sony) if the portals can get together in a merger or joint venture and do one deal with Sony.

Excerpt

UVA-QA-0577

Version 1.4

QUEPASA.COM

It was late 1999, and the Quepasa management team was tired. It seemed that there was never enough time in the day. They went from one challenge to the next without time to reflect on or enjoy their accomplishments. The last six months had been a roller-coaster ride of victories and defeats. During that span, Quepasa settled a lawsuit against its former CEO, completed an IPO, and saw its stock rise dramatically and then fall substantially to 30 percent below the IPO price. Quepasa's failure to build a community was its largest problem. The team knew that Quepasa's survival depended on its ability to obtain high-quality content to attract more users in order to generate the critical mass necessary for survival. But in desperate times, opportunities often present themselves: Sony Corporation of America had recently contacted Quepasa about the possibility of a content agreement. Sony was looking for a partner in the Latin American portal space. A negotiating team was assembled, and it met to think through Quepasa's interests and to formulate an opening position for its negotiations with Sony. A successful negotiation could provide the “kick” that Quepasa needed to get back on track. Failure, however, could mean it was just a matter of time before the end; and to make it that much more challenging, Quepasa knew that it was not the only company bidding for Sony's content.

Quepasa.com

Quepasa was founded in Nevada in June 1997 as Internet Century, Incorporated. The company changed its name in December 1998 to better reflect its business decision to operate as a Spanish-language portal and search-engine Web site. The company went public just three months later, with no revenue. As Enrique Gonzales, an Internet consultant, put it, “Quepasa, Inc., filed to go public with little more than a good domain name and a few icons on a Web site.” The investing public was undaunted, and the offering was well received; Quepasa still had $ 40,000,000 left from its proceeds.

. . .

Keywords: internet, negotiation, multiparty negotiations, e-business UVA-QA-0577

Suggested Citation

Clyman, Dana and Davis, Rodney and Plankey, Timothy, Quepasa.Com. Darden Case No. UVA-QA-0577, Available at SSRN: https://ssrn.com/abstract=912009 or http://dx.doi.org/10.2139/ssrn.912009

Dana Clyman (Contact Author)

University of Virginia (UVA), Darden School of Business (deceased)

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Rodney Davis

affiliation not provided to SSRN

No Address Available

Timothy Plankey

affiliation not provided to SSRN

No Address Available

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