NEW YORK: Medialink Worldwide has sold its research unit, Delahaye, to Swedish PR services company Observer AB for $8 million. Delahaye will report directly to Bacon's Information, a division of Observer, which provides media research and monitoring services.
"We saw other elements of [Medialink] offering great potential, and we saw Delahaye offering great potential to its new owners," said Larry Moskowitz, president, chairman, and CEO of Medialink, adding that the deal will benefit all parties involved. "We see this as a win, win, win."
As part of the transaction, Medialink divested all of the net assets of Delahaye, which had an estimated carrying value of $2.3 million. The company anticipates a $5 million gain on the sale before taxes.
Money from the sale of Delahaye will be used to expand the company's position in brand marketing communications and news distribution, Moskowitz said.
"The growth that we're seeing in our core media services is the strongest that we've seen in some years," he said. "That was certainly the engine that was revving the fastest and we wanted to be able to provide it with additional resources and additional focus."
Medialink will also expand into new projects, such as building a digital media library. Accessible online, the library will enable clients to store and retrieve videos, still pictures, and text.
Mark Weiner, CEO of Delahaye said no changes would be made to staff, management, or locations. Websites and emails for both companies will also remain the same.
"This is a fantastic turn of events for us," Joseph Bernardo, president and COO of Bacon's. "It's a business that we really have aspired to invest in and grow for a long time. High-end measurement and evaluation services are where we think this market is going."
Weiner said client reaction to the sale has been positive.
"I think the synergy is apparent to people," he said. "The great marriage here is one of content and analysis."
Both Weiner and Bernardo stressed that clients will be able to choose whatever content provider or measurement firm they like.
"We're going to put a pretty compelling story together," Bernardo said. "We're going to make it pretty easy for clients to stay within the confines of our service package...but we won't lock out any options for our clients."