Search marketers were surprised yesterday by the announcement that
three of the most influential publications in the search marketing
sector had quietly been sold to new owners.
Jupitermedia, publisher of Search
Engine Watch and ClickZ
Magazine, announced plans to sell its research, publishing and
trade show divisions to UK-based publisher Incisive Media PLC for
approximately $43million in cash. The timing of the announcement
is interesting as it falls on the eve of the largest annual Search
Engine Strategies conference, SES San Jose which opens next Monday
(August 8th).
In 2004, Jupitermedia reported nearly $40million in revenues which
translated into $23.6million in gross profits from its online media
and search event divisions. It also reported revenues of $21.5million
in the first half of this year.
Jupitermedia chair and CEO, Alan Meckler, who is interested in
expanding the digital images and photography divisions of Jupiter,
said the sale would help strengthen Jupitermedia's finances, making
additional acquisitions possible. Currently, the digital image and
photography market is dominated by Bill Gates' Corbis Images and
Getty Images.
The sale is said to demonstrate the continued strength of the B2B
publishing sector, at least as it relates to search marketing. Incisive
Media says it will finance the purchase by releasing new shares
to institutional investors and through increased debt facilities.
It also says it wants to expand the number of SES tradeshows while
expanding its reach in the North American search marketplace.
"The acquisition will allow Incisive Media to strengthen its
footprint in the US and to roll-out the SES model across the territories
in which the company currently operates," Incisive said in
a media release.
Search Engine Watch is the home of search journalism pioneer, Danny
Sullivan and his team of bloggers, journalists and SES organizers
which includes Gary Price, Chris Sherman, and Elisabeth Osmeloski.
In a post to the SEW forum, Danny expressed optimism over the sale
stating that he and his team, "... are carrying on with our
regular work as part of the deal. While the owners are changing,
the quality content we aim to deliver to you is not. Overall, it's
a good thing. Jupitermedia is concentrating on its images businesses,
and the deal puts us with a new owner looking to expand the work
we do."
Expansion of SEW's work seems to be in the works for Incisive as
well. Incisive has announced it plans to organize a larger number
of SES conferences in the future with a focus on the European and
Asian markets as well as the North American market.
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