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AOL looks to buy internet advertising firm TradeDoubler
Time Warner's internet unit AOL has offered to buy Swedish internet advertising company TradeDoubler for $900 million.The deal, which equates to $30.63 per share, was unanimously backed by TradeDoubler's board, although some shareholders believe the bid is too low.
According to a report in business newspaper Dagens Industri seen by Reuters, pension fund Alecta – which holds just over ten per cent of the shares – said it would vote against an acquisition. The bid needs 90 per cent approval to be successful.
AMF Pension, which owns more than five per cent of TradeDoubler, also believes that $900 million is too low in light of the huge growth potential in the internet marketing industry.
"We think the bid is too low, given TradeDoubler's strong position in Europe, because it has a well functioning platform and payment model," said AMF Pension's Angelica Hanson.
AOL is shifting its business model from a subscription-based system to an advertising model, as the benefits of online advertising become increasingly clear.
Time Warner recently hired ex-NBC Universal marketing strategist Randy Falco to help drive business in this direction.
AOL already owns Advertising.com, a company that buys online media owners' advertising space and finds advertisements to fill it.
Search Marketing news posted on 16 January 2007
