WPP Group Acquiring 24/7 Real Media From Shareholders; Deal Valued At $649 Million
24/7 Real Media’s acquisition by WPP Group is truly a valiant move. The dollar amount involved is more than a few pretty pennies. But WPP Group is a big company. The company trades on the London Stock Exchange under the symbol WPP and on the NASDAQ as WPPGY. On the NASDAQ, WPP has a market cap of $18.46 billion.
This is not bad for a company that labels themselves as a communications services group. WPP employs 98,000 people in 2,000 offices in 106 different countries.
WPP announced today that they would acquired 24/7 Real Media in the form of paying shareholders $11.75 per share, thus valuing the transaction at $649 million. Why buy 24/7 Real Media?
Simple. 24/7 Real Media is one of the world’s biggest CPM-based media companies with over 115 million monthly unique visitors. Also 24/7 has some notable partnerships with the likes of British Airways, Expedia, Forbes, Playboy Magazine, The Weather Channel, Google, Yahoo!, and Ask.com.
“Our clients and therefore our industry are becoming more media and technology driven. 24/7 Real Media significantly enhances our capabilities, technological resources and talent, as well as adding to our geographic coverage and our measurable skills,” stated Sir Martin Sorrell, the CEO of WPP.
Management won’t be shuffled around post-transaction, but will be operated under the WPP name. This transaction also terminates the rumor that Microsoft may acquire the company.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry