United Online Buys MyPoints For $56 Million

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Internet and media services provider United Online Inc. acquired MyPoints Inc. this week from UAL Corp. for approximately $56 million in cash. MyPoints is a provider of member-driven Internet direct marketing services.


San Francisco-based MyPoints.com has an opt-in database of 4.5 million members, about a quarter of them active, and offers incentive-based media products. Members earn points by filling out online surveys about their Internet purchasing habits. It has 100 employees, mostly in San Francisco and Chicago.


In 2005, MyPoints had revenues of $38 million, up 44 percent from the year before and had operating income of $2.4 million.


United Online, which operates NetZero, Juno and other online services, plans to offer its 50 million registered users in North America MyPoints.com memberships, the company said


"Our purchase of MyPoints.com represents another major step forward in United Online's strategy of expanding our growing content and commerce business," said Mark R. Goldston, chairman, CEO and president of United Online Inc., in a statement.


Under the terms of the deal, United Online will treat the acquisition of MyPoints stock as an asset, for tax purposes. The move will allow United Online, which is based in Los Angeles, to deduct the purchase price over a maximum of 15 years.


Melissa Campanelli covers postal news, CRM and database marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters


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