CMGI's ADSmart Acquires 2CAN Media
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Andover, MA-based CMGI Inc. signed a definitive agreement to acquire 2CAN Media Inc., a large, site-focused online advertising representation firm. Financial terms were not disclosed.
2CAN will join the ADSmart organization under the direction of Chairman and CEO John Federman. Ryan Steelberg, currently president and CEO of 2CAN Media, will remain as president of the newly combined ADSmart, reporting to Federman.
The transaction includes the five sales divisions of 2CAN Media--Pinnacle Interactive, WebRep, ECG, MediaPlus and Grupo NetFuerza--and creates a combined sales staff of more than 65 people in offices in Los Angeles, New York, San Francisco, Chicago, and Detroit.
Adding to its current network, the new ADSmart will represent about 135 brands, including Smart Money, Standard & Poor's PersonalWealth, Arthur Frommers Budget Travel, Kiplinger Magazine, National Geographic, MotorTrend, CitySearch, Entrepreneur Magazine, Teen Magazine, Ladies Home Journal, Better Homes and Gardens Online and Raging Bull.
"The experienced leadership of John Federman and Ryan Steelberg, a roster of top Web publishers, plus the market-leading profiling and targeting tools of Engage Technologies--it's a powerful combination. . ."
ADSmart said it now will have a combined reach of 650 million monthly impressions.
"Our merger with ADSmart firmly establishes the company as the largest brand sales organization on the Internet," said Steelberg. "Coupled with the strategic benefits of a relationship with CMGI, the empowered ADSmart will set the standard in professional advertising sales, targeting technologies, and innovative marketing solutions for Internet publishers and advertisers."
Building on the sales division strategy of 2CAN Media, ADSmart also announced the creation of three new business units. ADSmart's existing site network will continue under the name ADSmart Brand Sales (ABS), offering online advertising opportunities in affinity groups such as Family and Parenting, Business and Finance, and Sports.
The current ADSmart sales team will serve as the platform for the second new division, ADSmart Sponsorships, with a focus on high-return online sponsorships and promotions. Also being created is the ADSmart Consulting division, delivering strategic advisory services to sites both in and out of the network.
An Internet holding company, CMGI combines operating companies with strategic venture investments to create a diverse set of businesses delivering Internet solutions. Microsoft, Intel and Sumitomo hold minority stakes in CMGI. The CMGI Internet Group consists of its majority-owned subsidiary companies ADSmart, Engage Technologies, NaviSite, NaviNet, Planet Direct, Magnitude Network and ZineZone.