AOL acquires affiliate network to boost ad platform

by Mike Butcher on February 5, 2008

AOL has acquired buy.at, a leading affiliate marketing network backed by VC house DFJ Esprit, reports TechCrunch UK. Financial terms of the deal were not disclosed, but well-placed sources say the deal is worth in the region of $150 million (£75 million). Although launched in the UK in 2002, buy.at now has a much bigger US operation, which is what attracted AOL’s interest. buy.at will now operate as a wholly-owned business unit of Advertising.com, part of AOL’s Platform-A organization, to which it added four other companies in the last year including Tacoda, AdTech, Third Screen Media and Quigo. Unlike previous deals which were more about ad serving, the buy.at deal is about getting closer relationships with retailers. AOL is understood to have tried to buy another affiliate network, Tradedoubler, a year ago but the deal foundered with the latter’s shareholders, who couldn’t agree on price.

Comments

Rajiv Dingra - February 5th, 2008 at 9:41 am PST

One more portal buying an online advertising company. I guess its herd mentality all the way!

PEG - February 5th, 2008 at 10:00 am PST

So what’s the price, $43m or $150m??

Vini- Triimart - February 5th, 2008 at 10:07 am PST

Acquisition grow the network, Advertising and affiliate networks are main target of big enterpreneurs like Yahoo, Google, AOL, Microsoft and others. Acquisitions has become usual news.

Mike Butcher (@mikebutcher) - February 5th, 2008 at 10:11 am PST

@PEG - $150m ballpark. Slight confusion before, sorry.

Yakov - February 5th, 2008 at 10:16 am PST

Why don’t ad networks call themselves widget networks and vice versa?

Dabo - February 5th, 2008 at 10:29 am PST

Just a correction on this story, buy.at are far bigger in th UK than the US at the moment. They’ve launched the Ticketmaster programme over there last year but have hundreds of programmes running in the UK.

No Surprise - February 5th, 2008 at 10:30 am PST

Good move by AOL, especially given the huge forecast for online ad spending over the next 4 - 5 years. Congrats to Buy.at.

JS - February 5th, 2008 at 10:56 am PST

That’s AOL problem, they don’t buy enough companies! If they would only sharpen their pencils and buy a lot more companies, that would make them a successful business.

Technicle - February 5th, 2008 at 11:04 am PST

So much activity from AOL recently…

Josh - February 5th, 2008 at 11:17 am PST

I think AOl is setting up in ad group and SEO field.

MonkeyTalk - February 5th, 2008 at 1:22 pm PST

AOL = PILE OF JUNK

fizetés + állás - February 5th, 2008 at 2:19 pm PST

it is very strange with the austrian url

Wes - February 5th, 2008 at 2:32 pm PST

I think this is a good move by AOL and will definitely help to tap into the European market.

Alex - February 5th, 2008 at 5:17 pm PST

Anybody know buy.at revenue and profits? just wondering about multiples being paid for them…

Richard - February 6th, 2008 at 1:43 am PST

Don’t have profit figures but buy.at says its revenues are between £25m and £30m.

I Am Not Posting To Spam My Blog - February 6th, 2008 at 2:46 am PST

According to their accounts, buy.at’s EBIT in FY06 was £1.2m on £13.0m turnover. Assuming constant margin, that would mean FY07 EBIT of £2.2-2.7m on Richard’s figures.

Rajiv Dingra - February 5th, 2008 at 9:41 am PST

One more portal buying an online advertising company. I guess its herd mentality all the way!

PEG - February 5th, 2008 at 10:00 am PST

So what’s the price, $43m or $150m??

Vini- Triimart - February 5th, 2008 at 10:07 am PST

Acquisition grow the network, Advertising and affiliate networks are main target of big enterpreneurs like Yahoo, Google, AOL, Microsoft and others. Acquisitions has become usual news.

Mike Butcher (@mikebutcher) - February 5th, 2008 at 10:11 am PST

@PEG - $150m ballpark. Slight confusion before, sorry.

Yakov - February 5th, 2008 at 10:16 am PST

Why don’t ad networks call themselves widget networks and vice versa?

Dabo - February 5th, 2008 at 10:29 am PST

Just a correction on this story, buy.at are far bigger in th UK than the US at the moment. They’ve launched the Ticketmaster programme over there last year but have hundreds of programmes running in the UK.

No Surprise - February 5th, 2008 at 10:30 am PST

Good move by AOL, especially given the huge forecast for online ad spending over the next 4 - 5 years. Congrats to Buy.at.

JS - February 5th, 2008 at 10:56 am PST

That’s AOL problem, they don’t buy enough companies! If they would only sharpen their pencils and buy a lot more companies, that would make them a successful business.

Technicle - February 5th, 2008 at 11:04 am PST

So much activity from AOL recently…

Josh - February 5th, 2008 at 11:17 am PST

I think AOl is setting up in ad group and SEO field.

MonkeyTalk - February 5th, 2008 at 1:22 pm PST

AOL = PILE OF JUNK

fizetés + állás - February 5th, 2008 at 2:19 pm PST

it is very strange with the austrian url

Wes - February 5th, 2008 at 2:32 pm PST

I think this is a good move by AOL and will definitely help to tap into the European market.

Alex - February 5th, 2008 at 5:17 pm PST

Anybody know buy.at revenue and profits? just wondering about multiples being paid for them…

Richard - February 6th, 2008 at 1:43 am PST

Don’t have profit figures but buy.at says its revenues are between £25m and £30m.

I Am Not Posting To Spam My Blog - February 6th, 2008 at 2:46 am PST

According to their accounts, buy.at’s EBIT in FY06 was £1.2m on £13.0m turnover. Assuming constant margin, that would mean FY07 EBIT of £2.2-2.7m on Richard’s figures.

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