AOL offers £238m for

AOL is buying, the online ad specialist and network which is based in the US and Europe, for $435 million (£238m ) in cash.

The ISP and new media giant claims the deal will allow advertisers to reach some 140m people online by combining its media properties with the network.

It also enables AOL to offer more performance-based advertising online, including paid-for-placement and additional multimedia options.

"The acquisition complements our search business and CPM-based relationships by strengthening our position in the pay-for-performance area of online advertising," said Ted Leonsis, vice-chairman of America Online and president of AOL's core service.

He added: " brings a new dimension to our advertising offerings, enabling us to more fully participate in the growth of performance-based advertising." will have the funds for further growth as a result of the deal, according to Will Becker, managing director Europe at

"It gives us the chance to increase our rate of growth and part of that will be access to capital. The AOL presence can help us enter new markets too."

He added: "Our focus for growth in search and affiliate marketing will continue." will remain a separate brand and company while being an AOL subsidiary.

Aside from its network, offers ad delivery and optimisation tools.

The UK is the largest market in its European network and the company employs 55 staff in its London HQ. In 2003, reported a rise of almost 80 per cent in worldwide revenues, to $132m (£72.2m).

"Online advertising is showing very strong growth, and (this) acquisition underscores AOL's determination to strengthen its competitive position," said Jonathan Miller, chairman and CEO, America Online.

" has built a profitable, scalable and highly attractive business. This is a strategic move that will bolster AOL's advertising business."


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Ex-Thomas Cook marketer Mike Hoban resurfaces at Morrisons
Barbour creates real-time illustrations of consumers' stories for summer campaign
Viral review: Samsung goes for Apple’s jugular but fails to connect
View from Brazil: why we didn't believe we could lose the World Cup
Heineken unveils ‘Open Your City’ drive with Metro for ‘men of the world’
Unilever continues portfolio 'reshaping' with Slim-Fast sale
Amazon to fight US authorities over in-app purchase claims
Google set to invest $100m in Europe's tech start-ups
Metcalfe's set to release quirky debut TV ad
Samsung pities the iPhone 'wall huggers'
Smirnoff campaign aims to make Formula One less elitist
Apple wins EU battle to register store layout as trademark
Marketing directors need to step outside 'marketing box' to earn seat on the board
Hottest virals: Burger King’s emotional gay pride Whopper ad, plus Apple and Guinness
Developer creates software enabling Google Glass mind-control
Kick-ass girl beats up shopping centre staff in music video
Top 10 ads of the week: Aldi's World Cup cider ad scores with consumers
Sony relives Germany's 7-1 victory against Brazil in Subbuteo Vine
Burberry credits 9% revenue hike on strong online sales and 'more targeted marketing'
Ritz returns to UK TV screens after 30-year hiatus
Mars creates chief health and wellbeing officer role
Brands make the most of Germany's dramatic victory over Brazil
Adios Justin King! Watch our video tribute as he leaves Sainsbury's after a decade
Nike calls time on 13-year Manchester United kit deal
Three TV ad banned over misleading 'free' call claims
GNM boss David Pemsel: 'The Guardian has got its mojo back'
M&S has missed a massive opportunity to put digital strategy at its heart
Google partners with the Barbican to show coders are artists
Samaritans encourages men to talk about issues with #DownNotOut campaign
Lego's partnership with Shell 'not awesome', according to Greenpeace viral