My favorite for a buy of Local Corp is Rakuten, because this will produce the biggest synergies - First US-Buy was Linkshare in 2005
Japanese Internet shopping portal Rakuten is buying Internet Capital Group partner Linkshare Corporation for about $425 million in cash.
Rakuten is very well known in Japan for its on-line shopping, travel, golf reservations, community and greeting cards sites. This will be the company’s largest acquisition to date.
“We are extremely pleased that LinkShare has agreed to be acquired by Rakuten under the proposed terms,” said ICG chairman and CEO Walter Buckley.
“Since we acquired a stake in LinkShare in 1998, we have strongly believed in LinkShare’s potential to be a market leader, the strength and vision of its management team and the value it delivers to merchants and affiliates, added Buckley. “We view this event as a great illustration of the ICG model, as it demonstrates the full cycle of owning, building and realizing the value of one of our Core partner companies.” AP provides a little background info on LinkShare:
LinkShare runs a performance-based online advertising business called affiliate marketing service. LinkShare places client companies’ advertising on blogs and other Web sites managed by individuals, and the site creators can get compensation once the viewers of the sites buy advertised goods.
Established in 1996, Linkshare posted a revenue of $32 million for the fiscal year ended June last year. Its clients include such companies as Dell Inc.
The deal is still subject to customary closing conditions, but is expected to reach completion within about four to six weeks. ICG is expecting to get about $150 million out of the deal.
Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness