Is ValueClick’s Commission Junction on the “Market”?

2:33 pm   -   October 11th, 2006

To follow are some of the reasons ValueClick might be selling Commission Junction found at Beth Kirsch gives compelling numbers evidence on why this is a possibility as well as discusses the uniqueness of affiliate marketing.

Speculations on ValueClick, Why It Might Sell CJ, and Who Might Buy CJ
By Beth Kirsch, Oct 10, 2006, 16:23

Last week I wrote that I heard a rumor that Commission Junction might be for sale, and then, I received a flurry of IMs and emails about this issue. I would not have posted that rumor if I did not think it could be true, so I thought I’d share my thinking further on this issue. Let me be clear, no one has given me any inside information, this is just me looking at the landscape and thinking aloud.

The Facts
Let’s get started. ValueClick (NASDAQ: VCLK) acquired BeFree in March 2002 for $128 million in an all stock deal, however, BeFree had about $110 million in the bank, and so ValueClick bought BeFree for next to nothing. Then, in 2003, ValueClick bought CJ for $58 million in cash and stock. ValueClick has combined these two affiliate networks into one network powerhouse. So, in aggregate, ValueClick paid around $60 million for their affiliate marketing business.

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