In a response to the antitrust action filed by the U.S. Department of Justice regarding Bazaarvoice’s acquisition of PowerReviews, Bazaarvoice Inc. (BV: Quote) said Friday that it was disappointed with the filing of yesterday’s lawsuit.
Bazaarvoice said that it provided the DOJ with extensive documents, data, and information demonstrating that its acquisition of PowerReviews was procompetitive and did not result in a lessening of competition. Bazaarvoice noted that it spent more than six months explaining that there is robust and ample competition in the market for social commerce engagement tools.
Bazaarvoice stated that it disagreed with the DOJ’s decision to ignore that evidence and it will now shift its attention to a court of law where it expects to be fully vindicated.
On Thursday, The Department of Justice said it filed a civil antitrust lawsuit against Bazaarvoice Inc. challenging the company’s June 2012 acquisition of PowerReviews Inc. The department said that the $168.2 million transaction substantially lessened competition in the market for product ratings and reviews platforms in the United States, resulting in higher prices and diminished innovation.
In May, Bazaarvoice announced it entered into a definitive agreement to acquire privately-held PowerReviews, Inc. Under the terms of the agreement, Bazaarvoice will pay up to approximately $31.0 million in cash, issue up to approximately 6.4 million shares of common stock and assume vested and unvested options to purchase the common stock of PowerReviews equivalent to 1.6 million options to purchase the common stock of Bazaarvoice.
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by RTT Staff Writer
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