AdLINK to focus on domain name marketing and affiliate marketing.
AdLINK, parent company of domain brokerage and parking company Sedo, has sold its online display marketing business to French company Hi-media S.A. AdLINK will get 10.7% of shares in Hi-media S.A. and about EUR 12.2 million in cash. The cash component will be in the form of a vendor loan by AdLINK, which must be paid off by June 30, 2011.
With the sale, AdLINK now has two primary businesses: domain marketing and affiliate marketing. The sale will allow the company to apply more focus to its domain business, so this could be a boon for Sedo and its customers.
The timing of the sale is interesting given the poor state of online display advertising. However, AdLINK can participate in the upside of an online display advertising rebound through its equity stake. The company can increase its stake in Hi-media beyond the 10.7%. Hi-media will be able to realize cost savings by joining AdLINK’s unit with its existing operations.
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