Engage Makes Moves in Japan
CMGI's flagship advertising company takes charge of its destiny inJapan.
In two related transactions that cement Engage‘s commitment to its Japanese operations, the CMGI-owned advertising firm on Wednesday took a majority stake in Engage Technologies Japan and purchased an ad network from its partner in the venture, Sumitomo Corp.
Engage Technologies Japan was formed back in July 1998, building on a cozy relationship between parent company CMGI and the Japanese firm. Sumimoto had made a $10 million dollar investment in CMGI in 1998, and, at that time, had a strategic partnership with ad network Adsmart (which has since been folded into Engage).
In its latest moves, Engage has now increased its stake in Engage Technologies Japan to 66.6 percent and installed Naomi Tomita as president and chief executive officer. Tomita formerly headed up PictureTel Japan.
“This is a key milestone in our drive to become a truly global provider of next generation online marketing solutions,” said Paul Schaut, president and chief executive officer of Engage.
“This deal will allow us to synchronize Japan with our US strategy and accelerate the roll out of our newer solutions to the Japanese market and build on the success we’ve enjoyed in Japan.”
Meanwhile, Engage Technologies Japan has agreed to acquire Interactive Solutions Inc. (ISI), an Internet advertising network owned by Sumitomo. The deal will expand Engage’s online reach in Japan by giving it ISI’s network of 55 Web sites, which average a delivery of over 25 million ad impressions per month. Terms of the deal weren’t announced.
