Monday, April 19, 2010

Hearst close to deal to acquire iCrossing

Newspaper and magazine publishing company Hearst Corp. is close to acquiring digital marketing company iCrossing. The Wall Street Journal reports the asking price would be around $375 million.

"While going through the process of evaluating iCrossing's position in the market, we have spoken with, and entered into, non-disclosure agreements with many companies," iCrossing's spokesperson Dana Mellecker told Reuters.

Reuters speculates that the acquisition would be an attempt to grow its Internet advertising base. This is unlikely as any digital marketing firm that funneled advertising to its parent so transparently would lose all credibility. Rather this appears to be a strategic move to add properties where Hearst anticipates growth, as well as it have in-house digital marketing expertise -- both good reasons to close the deal.