CoolSavings Gets $5 Million Investment

Share this content:
Online coupon company CoolSavings (www.coolsavings.com) announced recently that Lend Lease, an Australian-based property and financial services group, has acquired a 10 percent stake in CoolSavings for $5 million. The deal includes options for Lend Lease to increase its holding to 30 percent. Lend Lease has more than $46 billion in funds under management.


Melissa Bane, senior analyst at research firm The Yankee Group, Boston, called CoolSavings' end of the deal "not bad for a space that hasn't exactly taken off yet," referring to the online coupon market. Like most Internet investments, she said, Lend Lease's stake in CoolSavings probably is based more on speculation than performance.


"It's like the California gold rush," Bane said. "Everyone is staking claims in an attempt to be in the right place when the money finally starts rolling in."


CoolSavings did not return a call for an interview.


Launched in March 1997, CoolSavings, Chicago, lets advertisers use detailed member-supplied demographic information to deliver targeted offers to the site and to special on-site member e-mail boxes. CoolSavings members download the offers as coupons redeemable at local retailers.


To be eligible for the coupon offers, CoolSavings visitors must supply their names, addresses, area codes and e-mail addresses. They also can supply the number of homes and cars they own, household income, profession, age, number of children and pets, household birthdays and anniversaries -- all with the promise of getting offers tailored to their interests.


CoolSavings currently claims a database of 1.1 million shoppers and projects that number to grow to 2 million by September.


CoolSavings advertisers include JCPenney, Kmart, Barnes & Noble, Chuck E Cheese's, Pearle Vision, Sears, ServiceMaster, Fashion Bug, Blockbuster Video, United Airlines and Domino's Pizza.
Loading links....
close

Next Article in Opinions

Sign up to our newsletters


Company of the Week


SK&A is a leading provider of U.S. healthcare information solutions and databases. As part of IMS Health, SK&A researches and maintains contact and profiling data for over 2 million healthcare providers, including 800,000+ prescribers. SK&A's data supports research and marketing initiatives for life sciences, medical device, managed healthcare, direct marketing, publishing, education and more. SK&A's proprietary databases are telephone-verified twice per year from its world class Research Centers. SK&A enables multi-channel marketing and sets the standard for data quality and reliability. SK&A's customers include many of America's most recognized healthcare, publishing and pharmaceutical institutions.


Featured Listings