Analyst: Gannett-PointRoll Deal "Small But Interesting"

Merrill Lynch analyst Lauren Rich Fine describes the Gannett acquisition of PointRoll we told you about Friday as “small but interesting” in this morning’s note. “We think this should be viewed similarly to recent deals such as Captivate and Clipper in that it is a non-traditional business that will fit in nicely for GCI but is also a good stand-alone business.” She says it makes sense that PointRoll will report to USA Today initially.
Fine adds: “PointRoll isn’t just a technology acquisition, it is an acquisition of a fast growing profitable company … We have seen commentary suggesting they get 40 percent of its revenues from consumer concerns such as P&G, Kraft, Kellogg and Nestle. We know that Yahoo! is a client and that they have a revenue sharing arrangement.”

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