In a move to consolidate its Internet holding, focus more attention on the
burgeoning medium, and fuel growth, Cyrk,
a 24-year-old traditional promotions and marketing company, on Monday
formed an Internet-focused subsidiary and reorganized its management
structure.
The current co-chief executive officers of Cyrk (CYRK)
, Allan Brown and Patrick Brady, will split up the management
responsibilities. Brady will head up operations of the newly-formed
Internet division, while Brown handles the company’s promotional products
divisions and its Simon Marketing subsidiary.
The goal of the new division, which currently consists of stakes in eight
different Internet companies valued at more than $16 million, is to develop
a set of marketing tools to help companies get more out of their
investments in the Internet. The tool kit will be aimed at accelerating
customer acquisition, increasing retention, and driving commerce.
“For years Cyrk has provided both old- and new-economy companies with the
Internet marketing solutions they need to build their brands in both online
and offline arenas,” said Brady.
“With our dedicated team of Internet technologists, Web designers and
creative talent, the new subsidiary will bring immediate value enhancement
to both new and existing Internet initiatives for companies of all sizes.”
The Internet subsidiary will also continue to make strategic investments,
and to forge services-for-equity deals in some cases.
Cyrk sunk $10 million into e-commerce database company Alliance Entertainment Corp. in December,
and made a strategic investment in fulfillment firm Skulogix, Inc. in January. More
recently, it delved into the online content business, taking stakes in Scour.net, The CheckOut.com Entertainment Network,
Ceiva Logic, and OneNetNow.com. The company has, in the
past, made investments in ThingWorld.com and Xchange, Inc.
