Gotham City Research initiates coverage on Blucora, Inc (a.k.a. Infospace).

“Google’s first step is easy: Fire InfoSpace (a.k.a. Blucora). Google doesn’t need InfoSpace, and there’s zero reason for this relationship to continue in light of InfoSpace’s repeated failings.”

– Harvard Business School Professor Benjamin Edelman, author of The Darker Side of Blinkx, and the “Doogie Howser of online investigative work” according to former federal prosecutor Richard Boscovich


  • +60% of BCOR’s revenue will evaporate in coming quarters, as Google realizes it is better off without BCOR. Google and Yahoo can walk away from Blucora any time.
  • At least 50% of BCOR’s traffic is derived from malware, click fraud, illicit traffic (e.g. child pornography), and otherwise suspect traffic.
  • Blucora and its partners’ practices will receive scrutiny from Google, advertisers, FTC, DOJ, FBI, IRS, &/or the SEC.
  • BCOR shares are worth no more than $5.00/share, and <$1.00/share if BCOR compensates affected parties.


  • 94.81% of visitors go to, a known redirect virus/browser hijacker.
  • generate clicks via cloaking, a practice forbidden per Google’s Webmaster Guidelines.
  • 3 of dogpile’s Top 10 search words are child porn-related. Webcrawler aggressively purchased child porn search traffic in recent quarters.
  • Google prohibits advertising related to child pornography.
  • 80+% of webcrawler’s visitors originate from outside the US, yet only ~1% of BCOR’s revenues are international.
  • Ads displayed in Blucora-branded search results violate requirements set in their 2011 Amended Agreement.
  • Metacrawler is the 3,301st most visited site, yet is defunct.
  • ~10% decline in Google revenues wipes ~50% of BCOR EPS.
  • BCOR has a storied history of defrauding investors, customers, and vendors over the last 15+ years.
  • Free cash flow has gone negative over the last 9 months.
  • ~50% of recent cash flow from operations consists of increases in accrued liabilities.
  • Non-GAAP reporting, not seen since 2003, is back.
  • Audit fees declined sharply, after changing auditors in ‘12.
  • Gotham City Research contacted Blucora on several
  • occasions and did not hear back from the Company.

The full report:


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