Gannett Acquires All of ShopLocal

  |  July 8, 2008   |  Comments

UPDATED: Gannett bought out the ownership stakes of McClatchy and Tribune in separate transactions.

Gannett has acquired all of ShopLocal, the online shopping circular provider previously owned by a triumvirate of newspaper publishers. Gannett, which also owns PointRoll, bought out the ownership stakes of McClatchy and Tribune in separate transactions.

With the move, ShopLocal will work more closely with PointRoll, a rich media provider acquired by Gannett in 2005, to enhance products like PointRoll's PaperBoy online circular ad format. "It's an opportunity for us at PointRoll, and more importantly at Gannett," said Chris Saridakis, SVP and chief digital officer at Gannett. "It creates value for retail clients."

Saridakis said ShopLocal partners include 29 of the 30 top retailers in the circular space, including Target, Lowes, CVS, and Wallgreens. Uptake of ShopLocal's database, and the PaperBoy unit, "is one of the reasons we wanted the 100 percent acquisition," Saridakis said.

The transaction was likely motivated in part by financial challenges faced by Gannett's rivals, according to Peter Krasilovsky, VP and program director of marketplaces at the Kelsey Group.

"The biggest thing probably is that Tribune and McClatchy are looking for money, and Gannett was in the position to buy them out," he said.

Krasilovsky first posted about the prospective acquisition prior to official word from Gannett or other parties on the Kelsey Group's blog.

Prior to the acquisition, Tribune owned 42.5 percent and McClatchy owned 15 percent of ShopLocal. Gannett disclosed it paid Tribune $22.3 million, and McClatchy expects to earn $13.5 million in the deal, after taxes. ShopLocal was created in 2004 by CrossMedia Services, a company owned jointly by Gannet, Knight Ridder and Tribune at the time. McClatchy acquired KnightRidder in 2006. Gannett continues to work with both newspaper organizations on additional ventures such as CareerBuilder, Classified Ventures, and Topix.net.

Full ownership of ShopLocal, Krasilovsky speculates, could compliment Gannett's ownership of PointRoll, which it acquired in 2005. ShopLocal's localized SmartMedia display ads are served through PointRoll.

"PointRoll and ShopLocal are already working on joint products and sales," said Saridakis. "Retailers over the summer are already working on back-to-school and holiday, and the timing couldn't be better."

ClickZ Live New York What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. Register today!

ABOUT THE AUTHOR

Enid Burns

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Marketing newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

    Information currently unavailable

Jobs

    • Lead Generation Specialist
      Lead Generation Specialist (The Oxford Club) - BaltimoreThe Oxford Club is seeking a talented writer/marketer to join our growing email lead-generation...
    • Health Marketing Editor
      Health Marketing Editor (Agora Inc.) - BaltimoreCome flex your intellectual muscle as part of Agora, Inc’s (http://agora-inc.com/) legal team...
    • Technical Business Analyst
      Technical Business Analyst (OmniVista Health) - BaltimoreOmniVista Health is looking to add a Technical Business Analyst to our expanding team...