24/7 Media Takes Equity Stake in TechWave
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24/7 Media will promote TechWave's full-service e-commerce enabling services to its more than 2,600 24/7 Network and ContentZone affiliates, and TechWave will promote 24/7 Media's advertising sales representation and e-mail management services to its more than 20,000 ShopNow shopping network affiliates.
The companies will also make a mutual investment in each other, with 24/7 Media acquiring a 19.8 percent equity stake in TechWave in exchange for a combination of 24/7 Media common stock and cash. 24/7 stock closed Tuesday at 66.
The companies said they will develop a co-branded suite of advertising, direct marketing, and e-commerce technologies and services. Both companies will share in the resulting revenues.
The companies plan to roll out a program that enables consumers to make purchases within online advertising banners, thereby making banner advertisements the actual point-of-sale.
"Our exclusive, strategic relationship with 24/7 Media will provide thousands of e-commerce Web sites access to extensive Internet media and services," said Dwayne Walker, president and chief executive officer of TechWave. "The combination of 24/7 Media's reach and targeting with TechWave's direct marketing services and technology will create a highly effective alliance and will immediately yield incredible benefits for millions of Internet buyers and sellers."
"TechWave's technology, direct marketing services and shopping platform provide complete commerce solutions and online retailing capabilities that perfectly complement our Internet media services," said David J. Moore, CEO of 24/7 Media. "This partnership will give our affiliates access to the premier e-commerce enabling technologies and services."