Meredith (NYSE: MDP) has acquired the outstanding shares in mobile agency The Hyperfactory. Terms were not disclosed.
The women’s mag publisher of Better Homes and Gardens and Family Circle led the current wave of publishers adding marketing services as a separate function from their content when it took a minority stake in The Hyperfactory almost a year ago.
In just the past few months, publishers such as Hearst, which just acquired search marketer iCrossing for $375 million in April, as well as newspaper and broadcast companies like Gannett (NYSE: GCI), have tried to diversify their businesses after a painful two years. As this week’s Publishers Information Bureau figures indicated, the state of magazine advertising has turned mildly positive. But no one expects a return to the peaks of ’06 any time soon. If anything, the improved fortunes for publishers will only make deals like Meredith’s complete purchase of The Hyperfactory more common.
Certainly, adding more marketing functions independently of its mag properties has been Meredith’s strategy since the better times. In the past four years, Meredith Integrated Marketing has added interactive shops O’Grady Meyers and Genex; viral specialist New Media Strategies; healthcare communications firm Big Communications; and database strategy and analytics experts Directive. Release