WPP To Acquire 24/7 Real Media For $649 Million!

WSJ Group plc informs WPP , the global leader in communications services groups will purchase 24/7 Real Media in an all-cash transaction sum of $649 million.

About the deal Mark Read, Strategy Director, WPP and CEO of WPP Digital said, "The digital marketplace is developing very rapidly. 24/7 Real Media brings to WPP very strong capabilities and technological skills in digital media and marketing. We are looking forward to working with the team at 24/7 Real Media to bring their relationships, skills and technologies to our operating companies and people for the benefit of our clients. As all media go digital, the combination of technology with client relationships and media and marketing expertise will become even more critical in delivering the best solutions to our clients."

The main provisions of the WPP-24/7 Real media deal include:

“ -WPP Group and 24/7 Real Media, Inc. signed a definitive agreement on May 17, 2007 under which WPP agreed to acquire 100% of the shares of 24/7 Real Media through a friendly cash tender offer;

-WPP Group will pay 24/7 Real Media, Inc. shareholders $11.75 for each 24/7 Real Media share, in a transaction valued at approximately $649 million, net of cash acquired;

-The offer price represents a premium of 30% over the average closing price of 24/7 Real Media’s shares for the last sixty (60) trading days;

-The transaction has received the unanimous approval of the Boards of Directors of the two companies;

-The 24/7 Real Media Board of Directors unanimously recommends that its shareholders accept the WPP Group tender offer.”

Is digital/ online marketing the way forward in the neckbreak world of advertising and marketing? It was Google Inc who purchased DoubleClick for $1 Billion.

Other developments of this deal include Shareholders of 24/7 to recieve $11.75 per Share.

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