Santa Clara, CA-based Yahoo! Inc. said
it signed a definitive
agreement to acquire Yoyodyne Entertainment Inc. in a deal
that Bloomberg News valued at $29.6 million in stock.
Under the agreement, Yahoo! will issue 280,664 shares of common stock in
exchange for all outstanding Yoyodyne shares, options and warrants. The
transaction will be accounted for as a pooling of interests.
Yahoo! said it expects to record a one-time charge of about $2 million in the
fourth quarter in connection with the deal.
In a statement, Yahoo! said the charge is for expenses in connection with the
transaction, which is expected to be completed in the fourth quarter.
Yahoo! will integrate Yoyodyne’s direct marketing services, including online
shopping sites and promotions geared to small businesses, as a component of
its extensive suite of advertising and merchant services, Reuters said.
Yahoo! closed at almost $115 yesterday, up more than $8 as tech stocks
rallied.
The purchase gives Yahoo! an interactive marketing agency whose clients have
included America Online Inc. and Microsoft Corp. Yahoo!, which generates
revenue mainly through selling advertising space on its Web site, wants to
increase its sales with Yoyodyne’s direct marketing services.
“This acquisition further enhances Yahoo!’s leading position of providing
marketers with the world’s best interactive platform for reaching highly
targeted audiences,” Chief Executive Officer Tim Koogle said in a statement.
“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,” Koogle said.
Launched in 1995, Irvington, NY-based Yoyodyne, in addition to custom direct
marketing programs, offers four recognized, branded programs, including
EZSpree.com, an aggregator of name brand online shopping sites;
GetRichClick.com, a traffic distribution site transforming traffic into
targeted, unduplicated visitors to sponsoring sites; EZVenture.com, a
promotion targeted at entrepreneurs and small businesses; and EZWheels.com, a
site delivering qualified, motivated car buyers directly to car manufacturers.
Yoyodyne clients have included America Online, American Express, H&R Block,
Microsoft, Netscape, Procter & Gamble, Sony Music, Sprint and Volvo.
