AOL Buys Online Marketing Savvy -- and Revenues

25 June 2004

America Online has bought internet advertising specialist for $435 million (€357.44m; £238.8m).

The all-cash deal not only buys considerable (and much needed) web-wide expertise, it will also provide an equally necessary boost to cashflow, admitted AOL chief executive Jonathan Miller.

He explained that the purchase was motivated by a wish to capitalise on the expected upturn in web advertising. "We will benefit from the incremental revenue from, as well as maximising our own advertising inventory using their technology," said Miller.

Although no slouch itself at selling online ads, AOL 's main focus has been on its own websites. Whereas Adcom's sales expertise spans the whole worldwide web.

The addition to the AOL portfolio comes just one month after parent Time Warner announced that its online arm had finally "stabilised" after years of subscriber losses and cost-cutting.

Data sourced from: BBC Online Business News (UK); additional content by WARC staff