Overture Buys AltaVista for $140 Million

Share this content:
Paid search leader Overture Services Inc. signed a definitive agreement yesterday to purchase search engine AltaVista for $140 million.


The agreement calls for Overture to pay $80 million in stock and $60 million in cash. CMGI owns the majority of AltaVista, Palo Alto, CA. Overture, Pasadena, CA, reported having $250 million in cash at the end of 2002. The deal is expected to close in April.


With AltaVista's algorithmic search technology, Overture will be able to go after complete search deals, instead of just offering paid listings. After entering the paid-search market nearly a year ago, Google quickly became the leader and lured away Overture partners EarthLink, Ask Jeeves and AOL. Overture said it will license the technology to its customers, including Yahoo and MSN. It also will use AltaVista to test new search services and marketing products for its advertisers.


The announcement follows Yahoo's recent acquisition of Inktomi, whose technology rivals that of AltaVista's.


"Adding AltaVista is an important step forward in expanding our capacity and commitment to search," Overture CEO Ted Meisel said during a conference call.


Overture said it expects AltaVista's management team to stay with the company.


Loading links....
close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa Data has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa Data offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here