Read the following annoucement made by DCLK in Jan. 99. The deal is non-cancelable for a period of 3 years and we still have about 2 1/2 years left. Just talked to IR at DCLK and they have confirmed the same and have no concerns on the developments between CMGI and CPQ. Load up now or miss the boat... READ the third Para "is binding on both parties for the three-year term". These folks really know how the build business......
DOUBLECLICK SIGNS ALTAVISTA TO THREE-YEAR ADVERTISING SERVICES AGREEMENT
New York, NY, January 20, 1999 -- DoubleClick Inc. (Nasdaq: DCLK), a leading provider of Internet advertising solutions, today announced that it has signed AltaVista to a three-year Advertising Services Agreement.
Compaq Computer Corporation (NYSE: CPQ), the owner of AltaVista, will continue to use the DoubleClick DART technology for the delivery of ads on the AltaVista Web site. In addition, DoubleClick will retain domestic, international and local ad sales representation for the core search and directory sections of the AltaVista site. AltaVista will continue to develop content zones and manage its sponsorship and ecommerce partnerships with marketers. During future years AltaVista may assume full ad sales responsibilities for a limited number of clients.
The new agreement has comparable economic terms to the earlier agreement and is binding on both parties for the three-year term. The previous agreement, now being replaced, was cancelable by either party with three months' notice.
“This is an excellent day for DoubleClick. We are thrilled that Compaq is clearly demonstrating a commitment to making AltaVista a premier portal,” states Kevin O'Connor, CEO of DoubleClick. “This new long-term agreement not only guarantees the continuation of that relationship, but also provides the management of both DoubleClick and AltaVista with the opportunity and incentive to identify new and lucrative areas where we can work together.”
DoubleClick has developed and maintained highly effective online marketing programs for AltaVista and its advertisers since December of 1996. DoubleClick has successfully sold ads that target key word searches on AltaVista pages and created sponsorship opportunities for major advertisers. In December 1998, DoubleClick delivered more than one billion targeted advertisements through AltaVista and in total, more than five billion ads on behalf of more than 6,000 Internet sites using the DART technology. DoubleClick reported revenues of $29.1 million for the fourth quarter of 1998, a 40 percent increase over revenues of $20.8 million for the third quarter of 1998, and a 167 percent increase over revenues of $10.9 million reported in the fourth quarter of 1997.
The new agreement permits AltaVista, a premier site internationally, to benefit from the vast reach and power of DoubleClick's worldwide advertising sales organization. DoubleClick has over 200 advertising sales professionals in 23 offices in 14 countries managing relationships with more than 2,300 advertisers and their agencies.
“DoubleClick's service continues to enhance the value of our site,” said Kurt Losert, General Manager of AltaVista. “We benefit from their global advertising relationships and are now able to focus on getting closer to our sponsorship and ecommerce partners.”
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