AOL to Buy Swedish Online Ad Broker TradeDoubler for $900 Million
Tuesday, 16 January 2007
AOL yesterday announced a cash tender offer (through an indirectly wholly owned subsidiary) to acquire TradeDoubler AB (SSE: TRAD), a European provider of online marketing and sales solutions, for SEK 215 per share. The total value of the proposed transaction is approximately SEK 6,332 million or about US $900 million, for all TradeDoubler shares (including warrants that are subject to the offer).
Founded in 1999, TradeDoubler is a European provider of online marketing and sales solutions. Industry leaders throughout Europe have partnered with TradeDoubler to work with performance-based marketing and to manage online relationships, in order to increase sales and improve online business. TradeDoubler is headquartered in Sweden with a presence in 17 other markets, with customers including Dell, The Apple Store, Svenska Spel and Telia. Please visit http://www.tradedoubler.com for further information.
According to the press release announcing the move, TradeDoubler's Board of Directors unanimously recommends that its shareholders accept the offer. In addition, shareholders representing in aggregate approximately 20 percent of the outstanding shares, including TradeDoubler's largest shareholder, Arctic Ventures, have irrevocably undertaken to accept the offer.
Time Warner President and Chief Operating Officer Jeff Bewkes said, "We're pleased to make such an appealing offer to TradeDoubler shareholders. Not only does our offer provide an attractive premium valuation, but it also will enable TradeDoubler to play a key role in our strategic focus on growing our online advertising business in Europe. With AOL and Advertising.com, we have built a robust online advertising business in Europe, and TradeDoubler will help us accelerate the growth of this business."
AOL Chairman and CEO Randy Falco said, "This investment provides a unique opportunity for both TradeDoubler and us to capitalize on the continued rapid growth in online advertising and e-commerce in Europe. We believe that TradeDoubler will be complementary with our other businesses, especially with our third-party advertising network – Advertising.com. We look forward to working with the great people at TradeDoubler to offer European online marketers the broadest range of advertising solutions and Web sites the most comprehensive set of monetization opportunities."
AOL has substantial experience in the e-commerce and Internet advertising industry. According to AOL, a key part of the company’s strategy has been to capitalize on the growth in online advertising and e-commerce. In 2004, AOL acquired Advertising.com, the largest display advertising network in the United States, with a presence in eight European countries.
Advertising.com connects advertisers with online advertising inventory by purchasing this inventory from publishers, and using its proprietary optimization technology to determine the optimal advertising to display on each individual inventory placement. Advertising.com provides measurable results for advertisers through its display and video networks as well as its search engine management and lead generation services.