Dive summary:
- According to Derek Johnson, CEO of SMS provider Tatango, Callfire's has tried to keep recent acquisition of SMS marketing firm EzTexting a secret because of certain tactics that could devalue the acquisition.
- EzTexting created multiple brands to give the market the appearance of a wide variety of choices, when in reality consumers were choosing from only EzTexting brands.
- By keeping the acquisition quiet, CallFire is protecting the practices of EzTexting and ensuring the brand continues to dominate Google searches, even though the "double serving" practices violate Google Adwords policy.
From the article:
"Stopping this practice would significantly decrease the amount of traffic each recently acquired brand receives, as they would only be able to display one brand per search result. This would no doubt have a significant impact on the value of EzTexting and their associated brands, which is why I think CallFire wanted to keep their acquisition of EzTexting a secret."
