Primedia Announces Nine New Media Alliances and Ventures in Both Consumer and B2B Units
27 July 2000
Primedia has Entered Into 41 Such Alliances Since January 1, 2000
NEW YORK - Tom Rogers, the chairman and chief executive officer of Primedia announced today that the company is entering into nine new media alliances across both its consumer and business-to-business units. The alliances include several ads/assets-for-equity deals; strategic relationships; a corporate investment with CMGI @ Ventures; and an investment by Primedia Ventures, their first in an international company.The value of the nine alliances announced today is over $45 million, with nearly 85% being non-cash. The value of the 41 deals made since the beginning of the year is approximately $150 million, over 70% of which is non-cash.
Investment in IronMax, the leading heavy equipment on-line marketplace
Strategic relationships with Yahoo! and with NewsEdge (a leading hypersyndicator of eContent and global news services)
Ads/Assets for equity deals with: Paperloop, an on-line exchange for paper manufacturers and distributors BLUEDOT.COM an application service provider for marketing automation BuyAg.com, an on-line agricultural equipment and parts exchange Hookup, an on-line trucks part exchange eStyle, Inc. the maternity, baby and children's product e-tailer
Primedia Ventures investment in SCAN, a European mobile commerce venture
"We continue to be aggressive in forging alliances with new media partners, many on a non-cash basis. These nine deals bring our current year total to 41 and there are many more in the pipeline. Our strength and position as a content rich company has opened up a robust pipeline for us to secure positions in a wide array of sectors and businesses. We are extending our core media franchise into a variety of new and potentially profitable areas," said Mr. Rogers. ------------
Descriptions of each alliance follow.
PRIMEDIA AND IRONMAX FORGE A STRATEGIC ALLIANCE: Primedia has taken a significant equity stake in Ironmax.com, making Primedia the largest Ironmax shareholder. Ironmax.com is the leading heavy equipment on-line marketplace. In exchange for equity, Primedia is contributing cash, the exclusive online rights to the proprietary data in Primedia's Machinery Information Division, and advertising/promotion in Intertec Magazines (Primedia's B2B magazine group). With the backing of CMGI, which led the Series A investment in March, and Primedia, Ironmax will become the most complete resource for heavy equipment on the Internet in the $95 billion construction equipment industry. This deal is an example of the synergistic benefits expected to be derived from Primedia's relationship with CMGI.
Ironmax.com, based in Louisville, Ky., is an Internet-based business-to-business marketplace for the construction equipment industry. The company's buyer-initiated Request for Quote (RFQ) transaction model provides buyers and suppliers with an efficient online method for buying, renting and selling construction equipment.
PRIMEDIA FORMS A STRATEGIC RELATIONSHIP WITH YAHOO!: Primedia has signed a multi-million dollar deal with Yahoo! in which they will run ads on Primedia's Consumer Guide distribution racks in 5,000 outlets. At the same time Primedia has expanded its Apartmentguide.com's distribution agreement with Yahoo!
PRIMEDIA FORMS A STRATEGIC RELATIONSHIP WITH NEWSEDGE: Primedia is announcing a strategic relationship with NewsEdge Corporation , leading hypersyndicator of eContent and global news services. NewsEdge will supply its eTopics(TM) content for Internet and wireless applications to Primedia's IndustryClick unit. NewsEdge will also process, code, and tag content from PRM's Intertec publishing group for electronic use on IndustryClick's sites and for syndication to NewsEdge customers worldwide.
Through the NewsEdge Refinery(TM) content from hundreds of sources are filtered through both technology and human editors by subject matter into approximately 1,500 eTopics. NewsEdge clients include over 700,000 users at 1,700 organizations.
ADS/ASSETS FOR EQUITY DEALS:
Primedia's IndustryClick and Intertec Partner with BLUEDOT.COM
Though IndustryClick and Intertec, Primedia has taken an equity position in BLUEDOT.com, an enterprise event automation company. In exchange for equity, BLUEDOT.COM will receive advertising space in IndustryClick's verticals and in Intertec's marketing-related publications. Additionally, Intertec has contracted with BLUEDOT.COM to use the Bluedot EEA System to manage Intertec's event business.
Primedia's IndustryClick and Intertec Partner with BuyAg.com
Through Industry Click and Intertec, Primedia has taken an equity position in BuyAg.com, the online agricultural equipment and parts exchange. In exchange for equity, Primedia will provide advertising both online and in the Intertec Agricultural Group trade magazines.
Primedia's Consumer Magazine and Internet Group Partners with eStyle, Inc. (www.babystyle.com and www.kidsyle.com)
Primedia has take an equity position in eStyle, Inc., the maternity, baby and child's products e-tailer. In exchange, Primedia will provide advertising and promotion through the full media arsenal of the American Baby Group, including print magazines, television, online, sampling programs, direct mail and consumer fairs. In addition, Primedia will provide content from the American Baby Group, print advertising in New York and Chicago Magazines, and cash.
eStyle, Inc. is a next-generation online retailer serving the shopping needs of women at key stages of their lives. The company currently offers maternity, baby, and kids clothing basics and gifting ideas. eStyle.com will continue to roll out leading commerce sites geared towards today's busy woman
Primedia's Intertec Partners with Hookup
Primedia has taken an equity stake in Hookup.com, the online trucking equipment and parts exchange. Hookup.com conducts conduct truck and equipment auctions in real-time. Primedia will provide advertising in the Intertec Transportation Group trade publications in exchange for the equity position.
Primedia's IndustryClick and Intertec Partner with Paperloop
Through IndustryClick and Intertec, Primedia has entered into an agreement to acquire an equity stake in Paperloop.com, the premier information and business exchange for the global paper, printing and converting industries. In exchange, Primedia will provide a content license for, and advertising in, Intertec's American Printer; Paper, Film & Foil Converter, and Boxboard Containers International trade magazines.
PRIMEDIA VENTURES INVESTMENT
Primedia Ventures has invested in SCAN, a European mobile commerce venture. SCAN has launched On the Go, one of the first wireless e-commerce applications, which enables consumers to price compare and buy thousands of products across all types of mobile devices. It is a Europe-based service today, with potential application worldwide and Primedia is joining investor AB and Idealab in this financing. This investment marks the 15th for Primedia Ventures and the first outside of the United States.
PRIMEDIA Inc., with 1999 sales of $1.7 billion, is a targeted media company with print, video, and Internet businesses focused on consumer and business-to-business audiences. The Company publishes more than 220 magazines, and owns and operates 300 Web sites and other Internet properties. PRIMEDIA's stock symbol: NYSE: PRM.