In many cases in life, more is better. The title of this blog refers to the classic Saturday Night Live skit “More Cowbell” starring Will Ferrell and Christopher Walken. This classic skit is a hilarious illustration of the concept that more is better. In the skit, Blue Oyster Cult is in the recording studio laying down tracks for their soon to be mega-hit “Don’t Fear the Reaper” under the supervision of gold record winning producer Bruce Dickinson (yes, “the” Bruce Dickinson) played by Christopher Walken. Will Ferrell plays BOC’s percussionist and on this track he’s playing the cowbell with enough fury and persistence to drive his fellow band members absolutely nuts. Despite the band members’ protests, Bruce Dickinson insists, throughout the skit, on getting more cowbell on the track, “fellas, I’m telling ya, you’re gonna wanna have that cowbell.” You really have to see the video to appreciate the humor.
So why all this More Cowbell stuff in this blog post? Well, Habeas and Return Path are merging together and the big question I expect customers, partners and industry colleagues to ask me is “Des, why are you selling Habeas to Return Path?” No, the answer isn’t “More Cowbell”, it’s that the combination of the two companies provides more resources to enable the common mission statement of the companies (i.e., “saving email”) to be better addressed on a global basis. These “more resources” will bring benefits to senders, receivers, consumers and the email community.
Email deliverability/reputation companies are by their nature trusted third parties that provide services to both email senders as well as to email receivers. That means that resources for product development, marketing, sales and business development and customer services have to be engaged with two completely different sides of the market. On both the sender side (e.g., direct senders, email service providers, MTA vendors) and receiver side (e.g., ISPs, message security companies, MTA vendors) there are multiple market sub-segments with varying needs to be served. And increasingly at Habeas we have seen domestic and international customers with mailing lists have a significant cross-border component, requiring expansion of our services into Europe and
In 2003 I had been at Habeas for a few months, trying to figure out what the business might really be, when Matt Blumberg and George Bilbrey from Return Path came to visit. They were interested in purchasing Habeas (which was 4 people at the time) and our flagship offering, Sender Warranted Email, to add a whitelisting service to Return Path’s existing deliverability tools and consulting services business. I liked George and Matt and their knowledge of email market. While that deal didn’t come to fruition, their interest in Habeas helped me further understand the value in the business and inspired us to grow it further. Here we are five years later with over 400 clients and 45 employees and now the deal to combine the companies is coming to fruition.
Honestly this acquisition of Habeas is something that I have mixed emotions about. Chuck Swenberg and I have invested five years of hard work in building this business with a goal of creating an independent, stand-alone company. We have an incredible staff of talented people who care deeply about our mission statement to save email. A lot of hard work has gone into selling and servicing our customers. The Habeas SafeList is used by leading ISPs and a million email networks globally. We’ve created innovative reputation technologies. The easy path would be to continue the business as is with its 60% year over year growth for the last few years. But, strategically, to continue to improve our services for our customers and partners and to grow our footprint globally, in the words of Bruce Dickinson, “You gotta have more cowbell.” Or to put it another way, the business opportunity to save email is a large one and will be best served by the combined company that will have the resources to address it globally for senders, receivers and consumers.
So, I am very pleased that this time we *have* reached an agreement with Return Path as this is the perfect home for the Habeas business and team. First, Return Path recognizes talent and they are retaining essentially all of the Habeas team on a permanent or on a transitional basis. Second, as we’ve gotten to know each other, we discovered that we have similar values in our company cultures which emphasize both our employees and customer service. Third, based on five years of competing with Return Path and working with the management team in various industry forums, I know that Habeas’ customers and partners will be in great hands with this executive team. Fourth, Habeas innovation will live on. In working on this transaction both companies have learned a lot from each other and the Return Path team is keeping not only the SafeList, but will be integrating other Habeas technologies and business processes into their existing platform and business model over time. Fifth, the combination of the two companies creates the undisputed global leader in email delivery and reputation with the critical mass of employees, customers and partners to actually save email – which is what Habeas and Return Path are all about.
There is plenty of work to do over the coming months to integrate the companies. And we’ll do that in a way that allows us to continue to serve our customers and partners, and to soon offer them more and improved services. I’ll be actively be helping with the integration efforts for the next several months, helping the combined company come together and then I’ll step back and watch it grow over the coming years. Email is too important not to be saved. Read more about the acquisition via these FAQs and Matt Blumberg's blog post.
The final iteration of the CAN-SPAM Act regulations take effect this week, so this is as good a time as any to review the requirements of the law and to make sure the latest twists given by the 




