DoubleClick has sold its European media division to AdLINK of Montabaur, Germany. But, New York-based DoubleClick still retains a stake in the business, with an option to acquire a larger stake if business improves.
AdLINK will pay 30.5 million Euros in cash for the media business. Under the terms of the agreement, DoubleClick will pass on that cash to AdLINK’s major stockholder, United Internet, AG, which is also based in Montabaur.
DoubleClick gets 15% of AdLINK’s stock, with an option to acquire another 21% of stock once the business becomes profitable.
DoubleClick also signed a 10-year contract with AdLINK, replacing Engage as AdLINK’s ad-serving provider.
“What this allows us to do is still have a stake in our media business in Europe, still have a stake with AdLINK, and we have a cross-selling relationship with them (through the companies’ ad-serving networks),” said DoubleClick spokesperson Jennifer Blum.
In the third quarter, DoubleClick suffered a loss of $12.6 million. “Seventy percent of our media losses came from the global division,” said Blum.
“The 15% [stock deal] allows us to get the losses off our books [once the deal is closed],” she added.
The deal boosts AdLINK to the No. 1 position in Europe–replacing DoubleClick. For the first time AdLINK will be able to serve ads to U.S. and Japanese Web sites.
The two companies will operate under a global cooperation agreement in which each company will cross-sell the other company’s inventory through each other’s ad networks, as well as through their respective media e-mail solutions.
DoubleClick will be represented on the AdLINK board after the deal is finalized.
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