24/7 Real Media Buys Real Media Korea

Share this article:
Online ad network 24/7 Real Media said yesterday it would pay $21 million to buy Real Media Korea in order to bolster its presence in one of the world's fastest-growing Internet markets.


The deal calls for 24/7 Real Media, New York, to pay $5 million in cash and 10.7 million shares in exchange for the 91.3 percent of RMK it does not already own. The company estimates the shares are worth about $16 million. The acquisition is slated to close in a month.


With the purchase, RMK will offer the full suite of 24/7 Real Media offerings, including its Insight Web analytics software and search marketing tools. RMK already sells 24/7 Real Media's Open AdSystem suite of ad-serving products to buttress its ad network, which sells advertising on behalf of Web sites.


24/7 Real Media said the acquisition would give it a foothold in a key Internet market. South Korea boasts 26.3 million Internet users, with a world-best 94 percent having broadband connections, according to the International Telecommunications Union. Online advertising is expected to boom in the region, quadrupling by 2007.


24/7 Real Media said RMK is already profitable and is expected to return a $1 million profit this year on about $11 million of billings. Jae Woo Chung will stay as president of RMK.


"Our business lends itself very well to being a global business," said David Moore, chief executive of 24/7 Real Media. "We think that the Asia market is ripe for us to enter in a manner that can be profitable as well. We see this acquisition as a platform to launch into other areas of Asia."


24/7 Real Media has offices in six European countries.


This material may not be published, broadcast, rewritten or redistributed in any form without prior authorization. Your use of this website constitutes acceptance of Haymarket Media's Privacy Policy and Terms & Conditions