UPDATE: Disappointed with its share price, the company considers how to raise shareholder value in a hot mergers and acquisitions market.
Online marketing technology company DoubleClick has hired investment bank Lazard Freres & Company to explore "strategic options."
The company, which lowered full-year 2004 forecasts when it reported earnings last week, says it's trying to "achieve greater shareholder value." The company said in a statement that it is considering selling off parts or all of its businesses, or spinning off parts. It would also consider recapitalization, buying back its shares or issuing an extraordinary dividend.
Amid the dot-com bust, DoubleClick elected to focus entirely on technology and divest itself of its media and research businesses. Now, the company may be missing out on some of the rebound brought about by the growth of Internet advertising.
"We think it's a hot market but, in some ways, DoubleClick hasn't been able to participate in that market, at least not to the extent that others have," said Ken Marlin, managing partner at high-tech investment consulting firm Marlin & Associates. "That stems from a decision they made after the crash of 2000 to sell off their media business and focus on technology."
However, Marlin adds that DoubleClick is in a good position to be acquired or sell off its businesses. "A lot of the logical buyers have got very strong currency, meaning strong stock price and cash, and there aren't many companies like DoubleClick around," he said.
The company's stock has been trading in the mid-single digits, after achieving a 52-week-high of $12.81. Investors seemed to welcome the news of a possible shake-up, driving the stock price up nearly 12 percent to $7.11 at press time.
Last week, the company reported third-quarter earnings of $15,364, or $0.12 per share. At the time it said its data and email businesses were doing better, but marketing automation and ad management weren't faring as well.
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!
Pamela Parker is a former managing editor of ClickZ News, Features, and Experts. She's been covering interactive advertising and marketing since the boom days of 1999, chronicling the dot-com crash and the subsequent rise of the medium. Before working at ClickZ, Parker was associate editor at @NY, a pioneering Web site and e-mail newsletter covering New York new media start-ups. Parker received a master's degree in journalism, with a concentration in new media, from Columbia University's Graduate School of Journalism.
Singapore, 3-4 November
Hong Kong, 8-9 December
Hong Kong, 8-9 December
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
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.