New York-headquartered internet advertising agency DoubleClick, struggling to survive the pricking of the dotcom bubble and global recession, has sold its lossmaking European media business to United Internet of Montabaur, Germany. The labyrinthine all-stock deal is valued at E30.5 million ($27.3 million) and includes the assumption of certain liabilities.
The resultant online hybrid unites the continent’s two largest independent web media sales specialists, UI being the largest stockholder in Germany's AdLINK Internet Media. “Bottom line, this gives us the size we need to operate in this market,” said the latter’s chief executive Michael Kleindl.
DoubleClick is also mulling the sale or merger of its counterpart US media business, according to chief executive Kevin Ryan: “We're committed that we want all of our businesses to reach profitability,” he said. “If it weren't for the European media business we would have [reached] break-even this quarter.”
Wall Street was neither surprised nor disappointed by the deal, DoubleClick’s shares soaring 20% at news of the disposal.
News source: Wall Street Journal