AOL bids for TradeDoubler
TT/The Local · 15 Jan 2007, 09:55
Published: 15 Jan 2007 09:55 GMT+01:00
TradeDoubler, with operations across Europe, has made its name as one of the world's largest providers of Internet advertising. The company was a pioneer of affiliate marketing, whereby advertisers pay media according to results.
AOL's bid of 215 kronor per share values the company at 6.223 billion kronor, an offer that the company's board unanimously recommended to shareholders, according to a statement from AOL, a majority-owned subsidiary of Time Warner Inc.
Shareholders representing 20 percent of the shares in the company have already accepted the bid.
The bid was formally made by Goldcup, an indirectly-owned subsidiary of AOL, which has now changed its name to AOLS Holdings. The bid represents a premium of 20 percent compared with the recent average TradeDoubler share price.
"After carefully evaluating the Offer and considering the future prospects of TradeDoubler, it is the Board's assessment that the transaction is in the shareholders' best interest," said TradeDoubler chairman Kjell Duveblad in a statement.
The bid will remain on the table until 19th February.
Many analysts expect TradeDoubler to receive a higher bid. In opening trading in Stockholm the company's share price rose to 220 kronor, five kronor over the price offered by AOL.