WPP Takes Stake in Omniture January 29, 2009
Posted by Mark Blei in : Uncategorized , trackbackThe agreement is a testament to Martin Sorrell’s belief that ad holding companies must branch out beyond their traditional expertise
NEW YORK WPP Group and Omniture have concluded a collaboration agreement through which the holding company will invest $25 million in the analytics firm.
The firms agreed to work together on product development, with WPP shops like OgilveyOne, Wunderman, Enfatico, GroupM and 24/7 Real Media participating.
The plan calls for WPP in 12-18 months to shift its own technology and data products onto Omniture’s platform. This includes 24/7’s ad-serving systems and TNS’ data collection platforms.
The agreement is a testament to WPP CEO Martin Sorrell’s belief that ad holding companies must branch out beyond their traditional expertise in media and creative. (WPP spent $649 million to buy ad serving firm and network 24/7 Real Media in May 2007.)
“In the current economic environment and as clients continue to experiment with and develop their online budgets, the need for better analysis, measurement and focus on return on investment is more important than ever,” Sorrell said in a statement.
WPP bought 2.8 million units of Omniture common stock at $8.76 per share. Based on Omniture’s outstanding shares, WPP will own about 3 percent of the company.
Omniture’s shares this morning opened at $9.44. The firm also issued a warrant giving WPP the option to purchase more shares if undisclosed performance objectives are met.
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