Yahoo!Inc. Monday
acquired Internet direct marketers Yoyodyne Entertainment, Inc. in a stock deal
worth $29 million.
Irvington, N.Y.-based Yoyodyne markets a variety of services to consumers
who agree to receive the information in return for the chance to win cash
and prizes.
The companies plan to integrate Yoyodyne’s consumer database and
direct-permission marketing with Yahoo!’s sales and service organization.
Yoyodyne’s direct marketing services will be incorporated as a segment of
Yahoo!’s suite of advertising and merchant services, including banner
advertising, sponsorships, promotions, merchandising, placement and
distribution, direct marketing and member acquisitions, and hosting and
transactions.
Yoyodyne, started in 1995 by Seth Godin, features four branded programs,
including EZSpree.com,
an online aggregator of name-brand online shopping sites; GetRichClick.com, a traffic
distribution site producing targeted, unduplicated visitors to sponsoring
sites; EZVenture.com, a promotion
aimed at entrepreneurs and small
businesses; and EZWheels.com, a site
geared toward car buyers linking them to car manufacturers.
Yoyodyne clients include America Online, American Express, H&R Block,
Microsoft, Netscape, Procter & Gamble, Sony Music, Sprint, and Volvo.
Yahoo! will issue 280,664 shares of Yahoo! common stock for all outstanding
Yoyodyne shares, options and warrants. Yahoo! expects to
record a one-time charge of approximately $2 million in the fiscal fourth
quarter of 1998. The acquisition is expected to be completed in the
fourth quarter.
“Yoyodyne provides several key elements Yahoo! seeks in extending its
business, including the most talented team in the
industry; a proven business model, client and user base and a solid track
record,” said Tim Koogle, chief executive officer,
Yahoo! Inc. “This acquisition further enhances Yahoo!’s leading position of
providing marketers with the world’s best
interactive platform for reaching highly targeted audiences, along with the
richest online user experience based on their stated
preferences.”