e4L Inc., Buyitnow Inc. and Clear Channel Communications Inc. signed an
agreement to jointly form Buyitnow.com LLC, which will operate an eponymous Web shopping plaza. Financial
arrangements were not disclosed.
Clear Channel, which will operate or
be affiliated with 625 radio stations, 19 television stations and
approximately 302,000 outdoor advertising displays in 26 countries after
completion of pending acquisitions., will contribute various media for
branding and promoting BuyItNow.com.
e4L, which utilizes more than $120 million in
annual television media, will promote Buyitnow.com throughout all of its
direct response programming. e4L celebrity hosts will promote the Web site as
the venue to purchase all of e4L’s “As Seen On TV” products.
Ownership of the new company will be as follows: e4L will own 51.5 percent of the
new company, Buyitnow will own 43.7 percent and Clear Channel will own 4.7 percent in
return for its contribution of $12.5 million in media.
Buyitnow.com LLC said it is in negotiations with additional strategic
partners to contribute cash and/or assets in exchange for ownership in the
new entity, and will consider making shares available through an initial
public offering at a later date.
“We think that this is a strategic alliance that will give Buyitnow.com powerful and unique media
access. . .,” said Stephen C. Lehman, chairman and CEO of e4L. “By adding the strategic alliance with Clear Channel to e4L’s
television and radio media, we can quickly build tremendous brand awareness. . .”
“Buyitnow.com is based on the media and operational leverage of Buyitnow and e4L along with our other
media partner Clear Channel, and the technical, merchandising and fulfillment
leverage of Buyitnow Inc.,” said Anthony Link, president and CEO of BuyItNow. “Together, we will build Buyitnow.com into a
Deutsche Banc Alex. Brown served as financial adviser to the new entity.
Members of e4L’s management will participate on the board of directors and
management committee of Buyitnow.com LLC. and Clear Channel Communications
will hold a board seat. Link will continue to serve as CEO and Randy Jo
Wilcox will continue to serve as COO.
Buyitnow.com has nine stores open, with five additional stores to be launched
over the next few months. The site employs “e-reps,” who are trained product
specialists, to find and explain products for consumers.
The stores in the Web plaza include:
- ElectronicCentral (cameras, security systems, stereos)
- ForAKid (arts and crafts, preschool, stuffed animals, toys)
- ForTheKitchen (bakeware, cookbooks, cutlery, gourmet gadgets)
- Gift-O-Rama (cigars, collector items, games, personal care)
- HouseDecor (candles, Christmas, clocks, lamps, vases)
- OutsideLiving (barbecues, landscaping tools, furniture)
- Tooling Around (automotive, cordless tools, power tools)
- YourHomeCenter (bath fixtures, ceiling fans, heaters, lighting)
- Completeluxury (upscale, unique, and hard to find items)