United Online Buys MyPoints For $56 Million

Share this article:
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


Share this article:
close

Next Article in Data/Analytics

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Data/Analytics

SAP Ramps Up Canadian Cloud Investment

SAP Ramps Up Canadian Cloud Investment

It's one of 16 new data centers the software company will open this year to meet a 39% increase in demand for cloud services.

Top 5 Spending and Investment Insights from Marketers

Top 5 Spending and Investment Insights from Marketers

Confidence in data-driven marketing led marketers to set high Q1 2014 goals.

MeritDirect Introduces Predictive Marketing Suite

MeritDirect Introduces Predictive Marketing Suite

New solutions include next logical product and customer lookalike modeling. The long-time direct marketing player announces it will open a San Jose office in September.