Fox Interactive Media isn’t disclosing the financial details about its acquisition of Strategic Data Corp. but I’ve been able to piece some of it together. The deal is structured as an earn-out, with an upfront payment higher than “the low tens of millions” — make of that what you will — and the ability to be worth north of $100 million if FIM sees the kind of performance jump it expects. You’re going to hear a lot of numbers but I’m not comfortable with anything more specific than this for now.
Update: The WSJ says the upfront price was “about $50 million” and the earnout is $100 million. The first number fits in the range I’ve been hearing. “News Corp. hopes the technology will help MySpace solve one of its biggest challenges: raising the price of many of the ads that run on MySpace’s more than 150 million user-created ‘profile’ pages.”
Forbes goes with ultimately could be worth more than $100 million and the upfront is “significantly less than that sum. … Fox Interactive officials have estimated that performance ads, which reward Web publishers with a payment each time a user clicks on them, will generate around $150 million this year for the company.”
Wouldn’t it just be easier all around to give out straight numbers?