In order to enhance its digital portfolio and unleash greater advertising revenue opportunities, Meredith Corporation (MDP) has acquired New York-based digital advertising company Selectable Media for an undisclosed amount.
Selectable Media specializes in providing native advertising solutions as well as making available the necessary support to access advertising content in way that best suits its customers. This enables better engagement of audiences and also expands the marketer’s ability to reach customers, as the content is available across multiple platforms, including desktops, tablets and smart phones.
Consequently, following the acquisition, Meredith stands to benefit from Selectable Media's forte in digital video and branded content distribution. Moreover, Selectable Media’s impressive customer base — including prominent clients like PetSmart Inc. (PETM), Merck & Co. Inc. (MRK) and Capital One Financial (COF) — are expected to unlock significant opportunities for this Des Moines, Iowa-based media company while increasing the scope for its existing clients.
However, the company stated that this acquisition will not significantly benefit its financial results for fiscal 2015.
Besides, the company has assigned Matt Minoff, CEO of Selectable Media, the responsibility to overlook Meredith Digital's ad products and operations. Meanwhile, Marc Rothchild, Selectable Media's COO, will supervise Meredith Digital's entire advertising sales, marketing and account management squads.
This acquisition demonstrates the continuation of this Zacks Rank #3 (Hold) company’s ongoing expansion strategy. In Oct 2014, the company had inked a notable deal with Martha Stewart Living Omnimedia (MSO) to acquire the rights of Martha Stewart Living and Martha Stewart Weddings magazines and the www.marthastewart.com and www.marthastewartweddings.com websites.
The company’s other acquisitions in the past include that of Parenting and Babytalk magazines and related digital assets as well as Every Day with Rachael Ray and assets of FamilyFun magazine. It also acquired the world's No. 1 digital food site, “Allrecipes.com” to expand its digital platform. It has also launched Meredith Women's Network, mostly covering women-related topics.
Further, Meredith also acquired the broadcast assets of WALA, the Fox affiliate in Mobile-Pensacola, as a part of its strategy of expanding its television station portfolio. This acquisition is expected to enhance the company’s earnings for the second half of fiscal 2015 and for fiscal 2016. Earlier, the company had acquired KMOV-TV, the CBS affiliate in St. Louis and KTVK, an independent station in Phoenix.
Management states that it will continue to make strategic investments as well as acquisitions and partnership deals in order to expand its footprint.
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