Google Agrees to Buy dMarc Extending Its Reach Into Radio
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
January 17, 2006 11:04 a.m.
Google Inc. agreed to acquire dMarc Broadcasting Inc., a radio advertising firm, for $102 million in cash and additional payments that could be worth up to $1.14 billion if performance targets are met over the next three years.
Newport Beach, Calif.-based dMarc's technology connects advertisers directly to radio stations. Its software helps advertisers purchase and track radio ads and lets broadcasters automatically schedule ad spots. Google, Mountain View, Calif., said it plans to integrate dMarc's technology into its AdWords advertising program.
"Google is committed to exploring new ways to extend targeted, measurable advertising to other forms of media," said Tim Armstrong, Google vice president of advertising sales, in a press release.
"We anticipate that this acquisition will bring new ad dollars and accountability to radio by combining Google's expansive network of advertisers with dMarc's talented team and innovative radio advertising technology," he said.
Under the terms of the deal, Google will acquire all of the outstanding equity interests in closely held dMarc for an up-front payment of $102 million in cash. In addition, Google agreed to make additional cash payments if certain product integration, net revenue and advertising inventory targets are met. Google said these contingency payments could reach $1.14 billion over the next three years, but the actual payments could be "substantially lower."
Google expects to close the deal in the current quarter.
DMarc Broadcasting was formed in 2004 by the combination of Scott Studios, Computer Concepts and the broadcast assets of dMarc Networks in a transaction valued at $29 million. It is run by Chad and Ryan Steelberg, who serve as CEO and president, respectively. The brothers are Internet entreprenuers who previously founded AdForce, an online advertising firm acquired by CMGI Inc. in 1999 for $500 million in stock, and Broadband Digital Group Inc., a now defunct provider of free broadband access.
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