Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Thanos Moschopoulos – BMO Capital Markets
Thanos Moschopoulos – BMO Capital Markets
Can you just comment on the environment for large bulk sales, has that remained pretty consistent with what we’ve seen in the recent past despite what’s going on with the Google and Yahoo syndication fees and the like?
Elliot Noss
Well those—the Google and Yahoo sort of pressing upstream definitely has an impact on those sales so it doesn’t make the market—there are just as many participants but it does have an impact on the multiples. And I think that’s one of the reasons why we, I think uniquely, have always been looking to take a little bit of money off the table as we went along with that asset class.
What I was calling out earlier on the call was the fact that that does have an impact and from our perspective the fact that we’ve been more focused strategically on the brandable side, it looks like it was the right choice.
Thanos Moschopoulos – BMO Capital Markets
In terms of specifically of your own direct navigation revenue and how that’s being affected, where do you think we start to see the bottoming out of this issue with the syndication feels because you’ve been talking about it for a few quarters now, is there any signs of the trends slowing down or coming to a bottom or is this just ongoing pressure we’ll see for some time?
Elliot Noss
I talked about it I think last quarter, I don’t believe I talked about it two quarters ago, and this is the first quarter that you see it in the numbers. So I was getting out ahead of it when I was talking about it. I will also tell you that in terms of where’s the bottom, we’ve started to see a little bit of a pickup now so we may have hit the bottom.
There’s another point here that I think is important is which is its not just that they’ve—that Google and Yahoo have pushed back on the payouts, they have also started to get more aggressive with some of the greyer parts of the market and long-term that affects us positively because we’ve got a very clean book of business.
The more sort of bad traffic and bad clicks that are pushed out of the system, the better it is for us in the long-term.
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