WPP Takes Stake in Social Neworking Firm Live World

On of the biggest ag agency groups in the world, WPP, has struck a joint venture with Live World, a social-networking service, to build out blogs, buddy lists, message boards, chat rooms and community sites for its clients. As part of the deal, WPP has the option of purchasing a $2.1 million stake in the company if it exercises a warrant to purchase one million shares at $1 each and another million at $1.10 each.
Live World, based in Los Gatos, CA, was launched ten years ago as Talk City, an early community and chat site, and nwo provides community building platforms to companies/sites.
The deal coming after the recent announcement about IPG Media purchased a 0.5% investment in Facebook and agreeing to spend $10 million as part of a media buy on behalf of its clients.
And on cue, a related story from BusinessWeek about why ad agencies are taking stakes in these social networking and community building platform companies.

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