Morningstar acquires footnoted!
For the past 6 1/2 years, we’ve written frequently about various mergers and acquisitions. Today, we have some M&A news of our own: Morningstar (MORN) has acquired footnoted.org. You can download the official press release here, but I wanted to personally share with you why I’m so excited about this deal and why I think Morningstar, which is already well known for its independent research, is the perfect partner to help me continue growing footnoted.
Whether you’re a longtime reader or a recent convert to footnoted, chances are that you appreciate the inherent value in having someone dig through SEC filings. After all, it takes a lot of effort to find some of the pearls we’ve uncovered over the years — things like Freddie Mac’s lush employment agreement with its new CFO or Chesapeake Energy’s $12.1 million map collection — because many companies work hard to bury this sort of stuff deep in their filings in the hopes that few (if any) people will ever find it.
Given my background as a business journalist, one of my primary goals for footnoted has always been that by exposing some of this, um, buried treasure, publicly traded companies might actually start to change their behavior. It’s one of the reasons we highlight “gold star” candidates on a regular basis. For example, we’ve recently seen a number of companies get rid of one of the grossest perks out there: the tax gross up. I’d like to think footnoted played at least a small part in this by highlighting so many examples.
From our very first conversation last spring, it was clear to me that the Morningstar folks not only shared this goal of greater transparency, but also practiced it in their own public filings. The investor Q&As in Morningstar’s monthly 8Ks — you can see the latest one here — are enough to make an SEC filings geek like me swoon.
But perhaps even more important is that Morningstar’s global reach and the resources that they’ve committed to growing footnoted will mean that more people will be exposed to footnoted’s unique content. Soon, I plan to hire additional staff, which will enable me to continue growing both the free and subscription-based businesses.
For readers already familiar with the site, few things will change. I’ll continue to run things from footnoted world headquarters in Peekskill, N.Y., as an employee of Morningstar, and there will be more of the same great content regular readers have come to expect. One small change will be that in the near future, footnoted.org will become footnoted.com, though both domain names will get you to the same place. In addition, some of footnoted’s content will appear on Morningstar.com, exposing their loyal audience of avid investors to the footnoted brand.
One final note about today’s news: While I negotiated mightily for the keys to the Gulfstream, the corporate apartment in Paris, the company yacht, the lifetime consulting contract and, of course, a tax gross up — all crazy perks we’ve written about in various M&A deals — I came up empty handed. That’s because Morningstar doesn’t believe in those sorts of things. Nor do I. Instead, my reward will come if I’m able to grow the footnoted business the way that I envision, which is exactly as it should be and just another reason why I’m so excited to be joining Morningstar.
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Posted in Tags: 8Ks, M&A |
 53 Comments » |
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February 9th, 2010 at 9:55 am
Michelle,
This sounds like a win-win deal, especially since there’s no golden parachutes or big perks passed out. And it gives us hope that independent business journalism can thrive – and achieve value – even in these tough times. So when will you be hiring? And for what? And what’s the purchase price on your sale? (Any self respecting biz journo must ask that.)
All the best!
February 9th, 2010 at 9:57 am
This made my day! Congrats to footnoted and congrats to morningstar!
Keep crankin.
February 9th, 2010 at 10:18 am
Great news!
February 9th, 2010 at 10:20 am
YAY! Very glad to hear Footnoted has a secure future — and even growth plans. Hooray!
February 9th, 2010 at 10:26 am
Congrats.
Great content on track to become even better.
The last paragraph is a big deal.
Your philosophy on ‘perks’ should be the rule, not the exception.
Kudos.
-JB
February 9th, 2010 at 10:36 am
Michelle: I’m glad this worked out for you. I think this is a vindication of your own open architecture approach to news gathering.
Henry
February 9th, 2010 at 10:39 am
Congratulations! Morningstar is a wonderful company (I worked there for many years in the early ’90s). After you have worked there and see how they run the business you’ll be even harder on the companies you cover.
February 9th, 2010 at 10:45 am
Hooray for great journalism and your belief in a great idea!
February 9th, 2010 at 10:52 am
Congratulations!
February 9th, 2010 at 11:00 am
Congratulations!
February 9th, 2010 at 11:10 am
A win for the good guys and gals. Congratulations Michelle.
February 9th, 2010 at 11:28 am
Michelle: Mazel tov! Big cheers from your many fans in the Crain’s New York Business newsroom.
February 9th, 2010 at 11:29 am
Michelle,
super news. Glad that footnoted has a good home and that your hard work has paid off.
February 9th, 2010 at 11:48 am
Michelle,
Congrats on the great news. You and the brains behind Footnoted have done a great job building the site over the past few years. It’s really a smart acquisition by Morningstar.
You should have just negotiated a change in control agreement with yourself first. The apartment in Paris could have been yours!
February 9th, 2010 at 12:00 pm
Congratulations on the ‘merger’. I do enjoy reading your content and the inside ‘dealings’ you uncover. I hope Morningstar will allow you to continue to be objective about your analysis.
Good luck.
February 9th, 2010 at 12:31 pm
Congratulations! What a great testament to your incredible work! From the quality of your research to the quality of your writing, your site outshone the field and is a bright spot in my day. Valuable and entertaining. Good luck in your new role and best of luck in growing Footnoted! You deserve it! — John Wilpers, Global Blog Monitor, The Christian Science Monitor
February 9th, 2010 at 12:35 pm
MIchelle,
A well deserved congratulations! You deserve this for all the wonderful work you have done.
Best of luck,
Richard
February 9th, 2010 at 1:04 pm
Super congratulations!
This is an achievement many bloggers can only dream of. It couldn’t have happened to a more deserving person.
Best wishes on all your future endeavors,
Jo
February 9th, 2010 at 2:04 pm
Although a new follower, I have quickly become a fan.
Congratulations on your teaming up with Morningstar! They do, indeed, have the kind of reputation that works well with your research and writing!
Best of luck!
Ron
February 9th, 2010 at 2:05 pm
Congratulations Michelle! But I wish you had held out for the tax gross up so I and the other commenters would have something to pick on!
John
February 9th, 2010 at 2:22 pm
Congratulations. I also worked at Morningstar and think you will be a big asset.
February 9th, 2010 at 2:47 pm
Big M, congrats, lady! You are super smart, annoyingly inquisitive and a real class act! I’m proud to say I know you. You are one of the few solo bloggers to successfully monetize their franchise. I’ve got to tell you, nobody has offered to buy Information Arbitrage!
All the best and rock on.
Roger
February 9th, 2010 at 2:53 pm
Congrats to Michelle & footnoted as that is truly a mark of the great content you’ve consistently generated. Exciting stuff! Very smart addition by Morningstar.
February 9th, 2010 at 3:25 pm
You didn’t get no clams for this acquisition! I feel for you.
February 9th, 2010 at 3:56 pm
Hooray for you. I love what you’re doing and hope you make a good living at it.
February 9th, 2010 at 4:01 pm
Congrats Michelle! Very cool news indeed. can’t wait to see where the brand goes!
TRB
February 9th, 2010 at 4:28 pm
Congrats – your coverage is terrific. Can’t help but note this little irony from the Morningstar press release: “Terms were not disclosed.”
February 9th, 2010 at 5:05 pm
Terrific news. Couldn’t happen to a better site — or a classier person. Looks like it will be a great fit.
February 9th, 2010 at 5:43 pm
Congrats, Michelle! Terrific fit.
February 9th, 2010 at 5:46 pm
Thanks, everyone for the kind words about me and my site. Can I show my age and paraphrase Sally Field here in her Norma Rae Oscar speech? You like me, you really like me!
In all seriousness, I’m very excited about the chance to continue growing the footnoted brand with a real Class Act for a partner.
February 9th, 2010 at 6:10 pm
Congrats! This is very good news for you and the Brain.
February 9th, 2010 at 6:25 pm
Michelle,
Congrats. I’m new to the site as of this year but it was recommended by a business school accounting professor. Truly, the real story is in the footnotes and I hope this deal allows your work to reach more (paying!) customers.
All the best.
February 9th, 2010 at 6:33 pm
Congratulations.
February 9th, 2010 at 8:06 pm
Michelle, this is great news. Congrats and I look forward to continuing to read your site on Morningstar.
February 9th, 2010 at 10:01 pm
i am happy for you.
somethinng tells me that they are going to slow you down big time.
they have never exposed the things you did.know that we were lucky to have known you
February 9th, 2010 at 10:07 pm
Congratulations. Keep up the good work.
February 9th, 2010 at 10:57 pm
Well done!
I hope your work will be as well received with Joe, et al., as it has been by your regular readers
February 10th, 2010 at 1:44 am
Congratulations Michelle! I look forward to following your future evolution.
Best wishes,
Mark
February 10th, 2010 at 6:23 am
Noticed the big news. Good for you. I remember from our talk that this will give you the ability to build this out. One needs partners to drive a research-focused business.
Cheers!
February 10th, 2010 at 7:30 am
Congratulations Michelle – very happy for you that your hard work and consistent quality have paid off!
February 10th, 2010 at 8:47 am
Michelle,
I think this is awesome for both you and Morningstar. What a wonderful accomplishment for you that is so deserved. I have so enjoyed your writings over the years and even heard you speak at some conference. My job sometimes requires me to delve into SEC filings. It is incredible the nuggets that are buried in them.
Keep getting the word out there. Best of luck
February 10th, 2010 at 8:52 am
Congrats! Very exciting news and a well deserved reward for your hard work.
February 10th, 2010 at 10:53 am
@Kim: Appreciate the concern and the appreciation for what we’ve built here at footnoted, but I don’t think anyone at M* is going to slow me down. Every single conversation I’ve had with them stretching back to last May has been about building things up and making footnoted more prominent. If I had even the slightest concerns about being reeled in, so to speak, I wouldn’t have moved forward.
February 10th, 2010 at 11:23 am
Michelle
Congratulations!!!!! You deserve all the best.
Fred
February 10th, 2010 at 11:34 am
Michelle, congrats!! This is fabulous for you. I have a new job at Patch.com, as Editorial Director on the West Coast. Love to connect. Cheers, Marcia
February 10th, 2010 at 12:07 pm
Hmph. Let this be a lesson to you, Michelle.
Hiring a proper sell-side banker like me to advise you and negotiate for you would have boosted your proceeds from the sale of Footnoted many-fold, as well as guaranteed you would receive a veritable harvest bounty of mouth-watering perks, kickbacks, and other booty.
Furthermore, paying my exorbitant success fee would have engendered social benefits, too, as I would have been able to spend more money in the local economies of St. Bart’s and East Hampton. Literally hundreds of liquor merchants, party planners, and real estate brokers are poorer off on account of your lack of foresight.
Let’s just agree that this will never happen again.
Oh, and I suppose I should offer you congratulations, begrudgingly. Hmph.
February 11th, 2010 at 7:41 am
This is the most incisive decision Morningstar has made in years.
Whatever they’re paying you, it should be double.
(Tell them I said that!)
You started this from ground zero and Morningstar recognized what many of us have known for a long time. As a resource, footnoted is unmatched. You deliver real news with perfect marksmanship.
Kudos.
February 11th, 2010 at 9:41 pm
Go Footnoted! Binge and Splurgers, en garde.
Michelle, after so many late nights year after year, filing season upon filing season, it’s terrific that you are ensuring footnoted goes to the next level and with a great partner…even if you didn’t get a Canadian fish camp out of it.
February 16th, 2010 at 12:19 pm
Congrats!! You are living every blogger’s dream — doing the work you love and getting paid for it!!
February 17th, 2010 at 12:30 pm
Congrats!
But no word of thanks to those who donated to footnoted.org?
(Or did I miss it?)
February 18th, 2010 at 12:37 pm
Let me add my belated congrats. From one sec filings nerd to another, best of luck. Knowing how hard you’ve worked over the years, it’s well deserved.
February 18th, 2010 at 12:52 pm
@NewHorizon: You’re right. I should have also thanked the many footnoted readers along the way who contributed money to keep the site going and cover some of the basic expenses. Some people donated a few bucks; others donated $1,000. But each of you enabled me to get footnoted to this point and be able to take it to the next level with the help of Morningstar.
February 19th, 2010 at 7:24 am
Cool! Congrats Michelle.