Sedo’s Parent Company Sells Display Marketing Business
Monday, July 6th, 2009
AdLINK to focus on domain name marketing and affiliate marketing.
AdLINK, parent company of domain brokerage and parking company Sedo, has sold its online display marketing business to French company Hi-media S.A. AdLINK will get 10.7% of shares in Hi-media S.A. and about EUR 12.2 million in cash. The cash component will be in the form of a vendor loan by AdLINK, which must be paid off by June 30, 2011.
With the sale, AdLINK now has two primary businesses: domain marketing and affiliate marketing. The sale will allow the company to apply more focus to its domain business, so this could be a boon for Sedo and its customers.
The timing of the sale is interesting given the poor state of online display advertising. However, AdLINK can participate in the upside of an online display advertising rebound through its equity stake. The company can increase its stake in Hi-media beyond the 10.7%. Hi-media will be able to realize cost savings by joining AdLINK’s unit with its existing operations.
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“The cash component will be in the form of a vendor loan by AdLINK, which must be paid off by June 30, 2011″
I Sedo getting the loan from Hi media or is Hi media giving Sedo the loan?
Sedo is providing the loan to Hi-Media. It’s basically an owner-financed sale.
So Sedo is not out of pocket money, Hi Media is buying AdLink on a payment plan?
There’s a difference between owner financing and a loan.
Thanks.
No, Sedo has plenty of money. AdLINK is part of United Internet.
When the seller of a biz gives a loan to the buyer to complete the transaction, it’s generally called owner financing.