Alloy deals expand media offerings

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Alloy Inc., which last fall spun off multichannel apparel division Delia's, has made two acquisitions intended to broaden its media offerings.

Alloy offers promotional marketing programs targeting the youth market through interactive, display, direct mail, content production and educational programming.

On Friday, the New York-based company said it had acquired the operating assets of Frontline Marketing Inc., an in-store advertising network comprising about 8,000 grocery stores.

Alloy followed with an announcement yesterday that it had acquired the operating assets of Channel One Communications Corp. from Primedia Inc.

Channel One produces and delivers programming for the classroom and the Web that is delivered daily to about 10,000 middle schools by satellite.

The deal will complement Alloy's existing marketing assets targeting this market, including Web sites, magazines, college and high school newspapers, college guides and display media boards.

Channel One, New York, has incurred significant losses in the past year due to a lack of investment in technology and the high cost of maintaining an aging distribution system.

Alloy plans to work with schools to strengthen its network and try to bring the financial operations at least break even over the next 18 months. This effort will include an evaluation and possible upgrade to the infrastructure of Channel One's entire system.

The $5.8 million deal for Frontline expands Alloy's reach into grocery and mass merchandise stores. Frontline provides advertisers with point-of-purchase advertising and merchandising solutions, giving packaged goods companies the means to increase sales at Safeway, Kroger and Albertsons, among other retailers.

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