United Airlines yesterday announced it is to acquire MyPoints.com in a deal valuing the struggling online promotional marketer at $105 million.
My Points is one of the many casualties in the puncturing of the dotcom balloon. A provider both of online and offline information-gathering programs, MyPoints has seen its revenues shrivel from $18.7m in Q2 last year to $10m in Q1 2001. Its share price accompanied the downward spiral, from a peak of $88.50 in December 1999 to just fifty cents in March. Before yesterday’s announcement, its shares stood at $1.60, then soared by 96 cents to $2.56 as news of the United deal broke.
According to United’s Scott Garner, the airline aims to build its internet activities, not least its frequent-flier program and investments in online travel businesses.
Says Garner: “We have identified areas of the company where we have assets that may not be fully valued by the market. Our goal is to create a complete business that weaves together our other activities and creates additional value beyond that. MyPoints will be the glue that brings all those activities together."
San Francisco-headquartered MyPoints is expected to continue operating under its current name and management.
News source: New York Times