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Friday, January 11, 2013

Bazaarvoice rejects DoJ lawsuit over PowerReviews deal, (NASDAQ: BV)

Bazaarvoice Inc, which helps companies run online consumer reviews, said its purchase of PowerReviews Inc would not cut competition, after the U.S. Justice Department sued the company to try to force it to sell some assets. The department challenged the acquisition and said it sought to prevent one firm from dominating the product rating and review platforms market, prompting a brokerage to cut its rating on the company's stock.The firms help companies use social media to advertise and also try to control any damage to clients' reputations from bad reviews. PowerReviews helped online retailers set up customer review sections on their websites so that they could compete with"We provided the DOJ with extensive documents, data, and information demonstrating that our acquisition of PowerReviews was procompetitive and did not result in a lessening of competition," Bazaarvoice said in a statement."We disagree with the DOJ's decision to ignore that evidence and we will now shift our attention to a court of law where we expect to be fully vindicated."

Bazaarvoice, Inc. (Bazaarvoice) is provider of social commerce solutions that help its clients capture, display and analyze online word of mouth, including consumer-generated ratings and reviews, questions and answers, stories, recommendations, photographs, videos and other content about its clients' brands, products or services. Shares of BV fell by 8.14% or $-0.61/share to $6.88. In the past year, the shares have traded as low as $7.48 and as high as $21.10. On average, 623554 shares of BV exchange hands on a given day and today's volume is recorded at 185440.