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Summary:

Fox Interactive Media, after a period of relative quiet, is getting acquisitive again. The company is said to be in talks to acquire Strategic Data Corp., a company based in Santa Monica, California, that helps online publishers optimize their online advertising yields. Talks are at an […]

Fox Interactive Media, after a period of relative quiet, is getting acquisitive again. The company is said to be in talks to acquire Strategic Data Corp., a company based in Santa Monica, California, that helps online publishers optimize their online advertising yields.

Talks are at an advanced stage, though no deal has been finalized. Fox routinely talks with various start-ups with an eye on possible acquisition or an investment. Fox Interactive spokesperson declined to comment.

If the deal does close, then it would be the second deal by News Corp.,-Fox Interactive this year. Earlier today, News Corp., took a 10 percent stake in a company called Roo Group; a fact that apparently wasn’t known to the FIM Group, up until this morning, when the Wall Street Journal reported the story.

Strategic Data Corp., (SDC) however would be an ideal acquisition for Fox because it would help them boost the revenues off their MySpace and other web properties. SDC claims that it has technology that “typically achieves network wide revenue increases of 50-150%.”

If true that could give MySpace revenues a rocket like boost. MySpace has notoriously low CPMs. MySpace page views however continue to grow. According to comScore, Fox Interactive had 39.5 billion page views in November, primarily driven by the 38.7 billion pages consumed at MySpace.com.

SDC and FIM have a bit of a history. SDC counts Intermix, the parent company of MySpace (prior to FIM acquisition) as a client. We chortled a little when we read this description of some of their clients.

Our clients include large ad networks, web publishers, and advertising supported software (“adware”) vendors, serving millions of dollars of popup and other ad types from thousands of advertisers across thousands of publishers and sites every month.

Honesty is typically a great policy, except when admitting that you do business with adware vendors.

  1. Advertising is the past, present and future of all media. This just validates that.

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  2. I wouldn’t expect a huge lift. Alot of the companies that serve ads on MySpace already use ad-optimization software. Some use SDC’s tech.

    Interesting move though. They are trying to do what Advertising.com did for AOL.com.

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  3. Interesting piece! You can’t change a zebra’s stripes and in the case of MySpace, this is like a very undesirable neighborhood. Would you want your children “playing” there? We know the answer to that of course.

    Which brings the point home that ad campaigns like BP’s “carbon footprint” ads would never be aired on MySpace. So the moral is technology will not make the neighborhood safer–you have to change how it looks and behaves. How do you think Times Square regained its luster under former Mayor Rudy Guiliani? Good investment perhaps, but it will take an herculean effort to improve CPMs that have significance to the audience that typically frequents MySpace.

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  4. Any updates on these talks?

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  5. Deal is now done:

    http://biz.yahoo.com/bw/070222/20070222005319.html?.v=1

    Keep in mind that we are talking about so many impressions that any lift at all turns out to be significant from a gross sales standpoint just given the overall volume.

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  6. [...] brought you the scoop on acquisition talks between Fox Interactive Media and the online ad company Strategic Data Corp in January. Back then they were [...]

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