e4L, Buyitnow and Clear Channel Form Buyitnow.com LLC
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e4L Inc., Buyitnow Inc. and Clear Channel Communications Inc. signed an agreement to jointly form Buyitnow.com LLC, which will operate an eponymous Web shopping plaza. Financial arrangements were not disclosed.
Clear Channel, which will operate or be affiliated with 625 radio stations, 19 television stations and approximately 302,000 outdoor advertising displays in 26 countries after completion of pending acquisitions., will contribute various media for branding and promoting BuyItNow.com.
e4L, which utilizes more than $120 million in annual television media, will promote Buyitnow.com throughout all of its direct response programming. e4L celebrity hosts will promote the Web site as the venue to purchase all of e4L's "As Seen On TV" products.
Ownership of the new company will be as follows: e4L will own 51.5 percent of the new company, Buyitnow will own 43.7 percent and Clear Channel will own 4.7 percent in return for its contribution of $12.5 million in media.
"We think that this is a strategic alliance that will give Buyitnow.com powerful and unique media access. . .," said Stephen C. Lehman, chairman and CEO of e4L. "By adding the strategic alliance with Clear Channel to e4L's television and radio media, we can quickly build tremendous brand awareness. . ."
"Buyitnow.com is based on the media and operational leverage of Buyitnow and e4L along with our other media partner Clear Channel, and the technical, merchandising and fulfillment leverage of Buyitnow Inc.," said Anthony Link, president and CEO of BuyItNow. "Together, we will build Buyitnow.com into a worldwide megabrand."
Deutsche Banc Alex. Brown served as financial adviser to the new entity.
Members of e4L's management will participate on the board of directors and management committee of Buyitnow.com LLC. and Clear Channel Communications will hold a board seat. Link will continue to serve as CEO and Randy Jo Wilcox will continue to serve as COO.
Buyitnow.com has nine stores open, with five additional stores to be launched over the next few months. The site employs "e-reps," who are trained product specialists, to find and explain products for consumers.
The stores in the Web plaza include:
- ElectronicCentral (cameras, security systems, stereos)
- ForAKid (arts and crafts, preschool, stuffed animals, toys)
- ForTheKitchen (bakeware, cookbooks, cutlery, gourmet gadgets)
- Gift-O-Rama (cigars, collector items, games, personal care)
- HouseDecor (candles, Christmas, clocks, lamps, vases)
- OutsideLiving (barbecues, landscaping tools, furniture)
- Tooling Around (automotive, cordless tools, power tools)
- YourHomeCenter (bath fixtures, ceiling fans, heaters, lighting)
- Completeluxury (upscale, unique, and hard to find items)