FindWhat, Espotting Extend Merger Date

  |  December 24, 2003   |  Comments

Paid listing players try to keep their on-again, off-again marriage plans on again.

The on-again, off-again merger between two paid search players, New York-based FindWhat and Europe's Espotting is, well, on again.

"We continue to make progress with respect to reaching a final decision with Espotting on our proposed merger," said FindWhat CEO Craig Pisaris-Henderson in a brief statement, which called the one-month extension to the deadline a final decision.

The deadline extension -- to January 31, 2004 -- comes after FindWhat pulled out of a $163 million cash-and-stock deal, citing problems with Espotting's finances.

The proposed merger between the paid listings rivals would create a company with 40,000 advertisers and operations in the United States and 10 European countries.

FindWhat's news in September that its post-merger examination of Espotting's books turned up some surprises regarding Espotting's purported profitability and projected financials appeared to have killed the deal.

At the time, FindWhat insisted it might walk away altogether if it couldn't get a better price. "As a result of its examination, FindWhat.com is retracting all previous statements it has made regarding Espotting's historical and projected financial performance, specifically comments made related to Espotting's profitability and the companies' post-closing pro forma financial expectations," the company explained.

But with a renegotiation deadline just days away, the two sides appear to be getting closer to fleshing out the outstanding issues. "While the delay in the process has been longer than we would have liked, both sides believe it is critical to take the necessary time to protect the interests of our respective shareholders and to come to the right conclusion," FindWhat's Pisaris-Henderson added.

The latest extension means both sides have another month to reach agreement on the state of Espotting's financials. FindWhat made it clear a price tag reduction is necessary in order to consummate the deal.

FindWhat continues to believe that, at a minimum, any new agreement between the parties will include a reduction of the purchase consideration, along with other material changes to the existing Merger Agreement," the company said.

ClickZ Live New York Want to learn more?
Attend ClickZ Live New York March 30 - April 1. With over 15 years' experience delivering industry-leading events, ClickZ Live brings together over 60 expert speakers to offer an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

ABOUT THE AUTHOR

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

A Buyer's Guide to Affiliate Management Software

A Buyer's Guide to Affiliate Management Software
Manage your performance marketing with the right solution. Choose a platform that will mutually empower advertisers and media partners!

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.

Jobs

    • Website Optimizer - SEO, CRO, Analytics
      Website Optimizer - SEO, CRO, Analytics (Marcel Digital) - ChicagoMarcel Digital, an award winning interactive marketing agency established in 2003...
    • Director of Marketing
      Director of Marketing (Patron Technology) - New YorkDirector of Marketing We are seeking a Director of Marketing to manage and build our marketing...
    • Senior Interactive Producer
      Senior Interactive Producer (Ready Set Rocket) - New YorkWhat You'll Do As a member of our team, the Senior Producer reports directly to our...