Yahoo! Acquires Yoyodyne in $30M Stock Deal
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Under the agreement, Yahoo! will issue 280,664 shares of common stock in exchange for all outstanding Yoyodyne shares, options and warrants. The transaction will be accounted for as a pooling of interests.
Yahoo! said it expects to record a one-time charge of about $2 million in the fourth quarter in connection with the deal.
In a statement, Yahoo! said the charge is for expenses in connection with the transaction, which is expected to be completed in the fourth quarter.
Yahoo! closed at almost $115 yesterday, up more than $8 as tech stocks rallied.
The purchase gives Yahoo! an interactive marketing agency whose clients have included America Online Inc. and Microsoft Corp. Yahoo!, which generates revenue mainly through selling advertising space on its Web site, wants to increase its sales with Yoyodyne's direct marketing services.
"This acquisition further enhances Yahoo!'s leading position of providing marketers with the world's best interactive platform for reaching highly targeted audiences,'' Chief Executive Officer Tim Koogle said in a statement.
"Yoyodyne provides several key elements Yahoo! seeks in extending its business, including the most talented team in the industry; a proven business model, client and user base; and a solid track record," Koogle said.
Launched in 1995, Irvington, NY-based Yoyodyne, in addition to custom direct marketing programs, offers four recognized, branded programs, including EZSpree.com, an aggregator of name brand online shopping sites; GetRichClick.com, a traffic distribution site transforming traffic into targeted, unduplicated visitors to sponsoring sites; EZVenture.com, a promotion targeted at entrepreneurs and small businesses; and EZWheels.com, a site delivering qualified, motivated car buyers directly to car manufacturers.
Yoyodyne clients have included America Online, American Express, H&R Block, Microsoft, Netscape, Procter & Gamble, Sony Music, Sprint and Volvo.