MSGI Sells Majority Interest in Fulfillment Subsidiary
Terms of the agreement were not disclosed.
"MSGI has retained a minority position in MFI for strategic business purposes, and has sold the majority interest to avoid any future net income erosion related to fulfillment operations," said Jeremy Barbera, chairman and chief executive officer.
Last month, MSGI announced the signing of a binding agreement with CMGI, Inc. to acquire its wholly-owned subsidiary, CMG Direct Corporation, including its business unit known as PermissionPlus, for a combination of stock and cash valued at $26 Million. Upon closing of the transaction, CMGI will become a 15 percent minority stockholder.
"Today as we begin our fourth fiscal quarter, our focus is on the continued business development and expansion of our two channels of operations; Marketing Services and the Internet Group," said Barbera.
MSGI plans to continue making acquisitions and investments in both Internet and marketing services companies.