Ad agency services firm DG (fka DG Fastchannel) is acquiring online/offline media buying tool MediaMind Technologies for $517 million. The growing importance of cross-platform ad sales is making these kinds of services increasingly valuable to agencies, marketers and broadcasters. Given the stakes involved, it wasn’t too surprising to see a law firm put out a release just after DG’s announcement of the deal threatening to sue over “possible breaches of fiduciary duty.”
The firm, Rigrodsky & Long, P.A., said it is merely “investigating potential claims against the board of directors of MediaMind Technologies.” Basically, the firm seems to think that MediaMind ought to have shopped itself around some more before settling for a deal worth $517 million in equity value or “$414 million enterprise value.”
To be sure Dallas-based DG, which bought Enliven Marketing Technologies for about $98 million in a stock-for-stock transaction three years ago, is getting a lot for its money. New York-based MediaMind has 37 sales and rep offices covering 64 countries. Last year, the company claimed to have delivered campaigns for 9,000 brand owners using approximately 3,800 media and creative agencies across 8,200 global web publishers across its geographical footprint.
Meanwhile, Bloomberg reports that Goldman Sachs is shopping DG itself around to potential buyers, with a starting price of around $1 billion.