24/7 Real Media said on Monday that it had sold its majority stake in iPromotions, a marketing technology company focused on the tourism industry. Separately, 24/7 Real Media disclosed that it replaced KPMG as its auditor.
The company said it sold a majority stake in iPromotions to a group of investors, including current management, for an undisclosed sum. New York-based 24/7 Real Media said it would maintain a minority stake in the company, which develops interactive marketing campaigns for the travel industry.
“We believe that this transaction will allow 24/7 Real Media to enjoy the benefits of a strategic partner in the promotions business,” said David Moore, 24/7 Real Media’s chairman and chief executive.
Seattle-based iPromotions will continue to operate under its current management, including chief executive Bryan Heathman. 24/7 Media, as the company was known prior to its October 2001 merger with Real Media, bought iPromotions in June 2000.
The sale comes as 24/7 Real Media has disentangled from a number of businesses in the last two years to cut costs and reach profitability, The company sold its e-mail list management and broadband businesses, and discontinued its legacy Connect ad server.
24/7 Real Media also announced that it had switched auditing firms from KPMG to Goldstein Golub Kessler. The company said it had no disagreements with KPMG, which has served at the company’s auditor since it went public in 1998. In Dec. 2001, KPMG gave 24/7 Real Media a “going concern” warning, in which the auditor expressed doubts about 24/7 Real Media’s ability to stay afloat. Since then, the company has cut costs and secured $8 million in financing from Sunra Capital Holdings.
Last quarter, 24/7 Real Media reported $9.7 million in revenues and a $6.5 million net loss.
