Cyrk Creates Internet Subsidiary
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In a move to consolidate its Internet holding, focus more attention on the burgeoning medium, and fuel growth, Cyrk, a 24-year-old traditional promotions and marketing company, on Monday formed an Internet-focused subsidiary and reorganized its management structure.
The current co-chief executive officers of Cyrk (CYRK) , Allan Brown and Patrick Brady, will split up the management responsibilities. Brady will head up operations of the newly-formed Internet division, while Brown handles the company's promotional products divisions and its Simon Marketing subsidiary.
The goal of the new division, which currently consists of stakes in eight different Internet companies valued at more than $16 million, is to develop a set of marketing tools to help companies get more out of their investments in the Internet. The tool kit will be aimed at accelerating customer acquisition, increasing retention, and driving commerce.
"For years Cyrk has provided both old- and new-economy companies with the Internet marketing solutions they need to build their brands in both online and offline arenas," said Brady.
The Internet subsidiary will also continue to make strategic investments, and to forge services-for-equity deals in some cases.
Cyrk sunk $10 million into e-commerce database company Alliance Entertainment Corp. in December, and made a strategic investment in fulfillment firm Skulogix, Inc. in January. More recently, it delved into the online content business, taking stakes in Scour.net, The CheckOut.com Entertainment Network, Ceiva Logic, and OneNetNow.com. The company has, in the past, made investments in ThingWorld.com and Xchange, Inc.