Advertising firm 24/7 Media on
Wednesday said it’s selling around 150,000 shares of its holdings in chinadotcom Corp., realizing a $11 million gain, a
move which will boost 24/7 (TFSM) into profitability for the first quarter.
The move is at least partially aimed at getting the company attention both
for becoming profitable, and for making wise investments. Since going
public in July 1999 at $20, chinadotcom shares have skyrocketed, closing
Tuesday at $87 1/6, after having split twice.
24/7 believes its stock, which opened today at 61 5/8, is undervalued,
especially compared with neighbor and industry leader DoubleClick. 24/7 has a market
capitalization of $1.39 billion, while DoubleClick’s is $9.96 billion.
The smaller company still holds 7.3 percent, or three million shares in
chinadotcom. 24/7 also owns a piece of ShopNow.com, and says its stakes in both
companies are worth $330 million based on closing prices on Monday. That
represents a $285 million gain in paper wealth for 24/7.
In announcing the share sale, David Moore, the company’s chief executive
officer, hinted that 24/7 would be making more investments in the future.
“We have exhibited a talent for identifying and nurturing strategic
partners that not only bring great value to our business but also produce
extraordinary investment returns,” says Moore.
“Our investments in chinadotcom and ShopNow.com, at current market prices,
have the potential to fund growth and profits in the forseeable future,
while also permitting us to continually build relationships through
investments in the scores of promising companies we meet every month.”