MyPoints.com Acquires Cybergold for $157 Million

In a deal that would create the largest online loyalty marketer, MyPoints.com Inc. on Mondayacquired rival Cybergold Inc. in astock exchange deal worth $157 million.

In a deal that would create the largest online loyalty marketer, MyPoints.com Inc. on Monday acquired rival Cybergold stock exchange valued worth $157 million.

MyPoints.com (MYPT) agreed to pay 0.4800 share of its stock for every share of Cybergold (CGLD), a transaction that values Cybergold’s stock at $7.20 a share, a premium over the company’s Friday closing price of $6 a share. After the transaction, which is expected to close in the third quarter of 2000, Cybergold shareholders will own approximately 26.5 percent of the combined company.

The chairman and chief executive officer of Cybergold, Nat Goldhaber, will join MyPoints.com as vice chairman and board member. He’ll help manage the development of future products. Cybergold will also be able to nominate an additional board member, giving it two seats on a nine-member board.

The deal creates a company that may be better able to go the distance against competitor Netcentives Inc. (NCNT), which recently got a boost when CMGI (CMGI) took an equity stake in the company and chose to implement its solution across its portfolio of companies. MyPoints.com is also touting the deal as accelerating its path to profitability.

“The acquisition of Cybergold establishes MyPoints.com as the clear leader in the Internet loyalty marketing arena,” said Steve Markowitz, chairman and chief executive officer of MyPoints.com.

“It provides us with another powerful brand, leading-edge technology and a unique cash incentive around which to expand our rewarded media business.”

The marriage of the two companies is especially appropriate because they share very few major clients. Among the top 25 advertisers at each company, only five are shared.

Together, the companies boast 15.4 million members. MyPoints.com recently said it surpassed 7 million members, so the acquisition of Cybergold effectively doubles its member base. Presumably, the companies have not yet determined the extent of membership overlap.

Subscribe to get your daily business insights

Whitepapers

US Mobile Streaming Behavior
Whitepaper | Mobile

US Mobile Streaming Behavior

5y

US Mobile Streaming Behavior

Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...

View resource
Winning the Data Game: Digital Analytics Tactics for Media Groups
Whitepaper | Analyzing Customer Data

Winning the Data Game: Digital Analytics Tactics for Media Groups

5y

Winning the Data Game: Digital Analytics Tactics f...

Data is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...

View resource
Learning to win the talent war: how digital marketing can develop its people
Whitepaper | Digital Marketing

Learning to win the talent war: how digital marketing can develop its peopl...

2y

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
Engagement To Empowerment - Winning in Today's Experience Economy
Report | Digital Transformation

Engagement To Empowerment - Winning in Today's Experience Economy

1m

Engagement To Empowerment - Winning in Today's Exp...

Customers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...

View resource