24/7 Media to Cut Off Funding for European DivisionAd serving network 24/7 Media Inc. will stop funding its 24/7 Media Europe operations to concentrate on its North American business, the company said yesterday.
Earlier this year, the ad serving network said it was considering the sale of its European, broadband and professional divisions, as part of an ongoing effort to reduce costs.
Tony Plesner, 24/7 Media's chief operating officer, said in a statement that the divestiture of its European division is another step toward that goal.
"24/7 Media continues to aggressively act upon its strategies to reduce operating costs and to focus on its core businesses in North America," he said. "This focus is essential to our ability to execute our business plan in a difficult market environment."
In May, the company closed its Latin American operations to help cut costs. On May 15, 24/7 said the closing of its offices in Mexico, Brazil, Argentina, Chile and Miami would result in annual savings of $3 million.
24/7 Media also sold its 24/7 Exactis, Sabela Media and Award Track units. Those deals have helped the company reduce its operating expenses by nearly $65 million. The sale of those divisions has added more than $19 million to the company's coffers.