Jumpstart Automotive Advertising Network to Assume Responsibility For
Online Ad Sales for CarandDriver.com, RoadandTrack.com and CycleWorld.com
The Network Will Reach 5 Million In-Market Car Buyers Monthly
NEW YORK, April 19 /PRNewswire/ -- Note: Today, Lagardere issued the
following press release (see below) in Paris announcing that Hachette
Filipacchi Media U.S (http://www.hfmus.com), a Lagardere subsidiary and owners of
the Car and Driver, Road & Track and Cycle World brands, reached an
agreement to acquire Jumpstart Automotive Media
(http://www.JumpstartAutomotiveMedia.com), the San Francisco-based vertical
advertising network focused exclusively on the automotive industry.
Jumpstart will operate as a wholly-owned subsidiary of Hachette retaining
the Jumpstart brand and all of its employees.
Jumpstart will immediately assume responsibility for the online
advertising sales of CarandDriver.com, RoadandTrack.com and CycleWorld.com,
significantly expanding its advertising inventory. These sites will be
aggregated with Jumpstart's network to bring the total number of unique
visitors to 5 million per month (Source: ComScore March 2007), making
Hachette and Jumpstart among the leading players in the online automotive
industry.
Statement from Jack Kliger, President and CEO, Hachette Filipacchi
Media U.S.:
"The acquisition of Jumpstart gives us scale and expertise in the
online automotive marketplace, the largest and most important ad category
on the Web. By combining the strong digital platform of Jumpstart with our
well-established brands Car and Driver, Road & Track and Cycle World,
Jumpstart and Hachette will be well-positioned to capitalize on future
growth opportunities in the automotive category and to create more powerful
offerings for our advertising partners in the future.
"Mitch Lowe and his team of over 75 experienced online automotive
experts have been smart and built a business that has carved out a unique
position in online sales. We are delighted that Mitch and his group will
continue to operate this business. We plan to contribute assets and
investments to support Jumpstart's continued growth. Jumpstart is highly
respected in the automotive industry and has an innovative and successful
business model. Jumpstart already represents a group of premier in-market
automotive brands, and we think that our brands will complement this list
and will strengthen the network for advertisers. We look forward to working
with Jumpstart's network of publishers to develop synergies.
"With the acquisition of Jumpstart, Hachette can now serve the full
purchase cycle for the consumer. In my opinion, the key to future success
in the automotive marketplace is to be able to effectively serve the
consumer's buying process from the beginning to the end. The prospective
buyer usually takes twelve weeks to make a decision, and Car and Driver and
Road & Track have been important resources to a consumer who is researching
which make and model to buy. The Web increasingly plays an important role
in the final stages of purchasing, and Jumpstart's strength is its
connection to the in-market buyer."
Statement from Mitch Lowe, Founder and CEO, Jumpstart Automotive Media:
"Since 2000, Jumpstart has been dedicated to delivering exceptional
results online for advertisers and publishers in the U.S. automotive
market, and this market is the biggest in the world and the largest media
category in this country. One out of eight media dollars comes from
automotive advertisers which represents $34.5 billion. With digital
advertising, there is a growing demand for inventory. We believe that the
recognized brands, strong editorial content, and deep advertising
relationships of Hachette will enhance our selling capabilities and open
exciting new business opportunities as we embark on the next stage of our
development."
LAGARDERE SCA PRESS RELEASE
Lagardere subsidiary enters into definitive agreement to acquire
Jumpstart Automotive Media
Lagardere SCA has announced today, April 19, 2007, that its subsidiary,
Hachette Filipacchi Media U.S., Inc. (HFMUS), a member of LAGARDERE ACTIVE,
will acquire 100% of Jumpstart Automotive Media ("Jumpstart").
Jumpstart is a leading online advertising network serving the US
automotive sector and providing a full line of advertising products and
services to auto makers and dealers. Jumpstart's main activities are:
-- Selling advertising space on five of the top automotive sites in
the USA (NADAguides.com, Vehix, JD Power & Associates Autos, How
Stuff Works/Consumer Guide Autos, Shopping.com Auto, an eBay
company);
-- Generating some of its revenues from behavioral targeting, which
serves ads based on internet user behaviors;
-- Offering consultancy services aimed at optimizing the efficiency of
search engine marketing;
-- Offering lead generation services, selling lists of potential
customers obtained from partner sites to auto wholesalers and
dealerships.
Jumpstart's advertiser client base includes all auto manufacturers and
over one thousand auto dealerships and dealer groups.
Jumpstart reported 2006 revenues(1) of $17.1 million (95.5% higher than
in 2005). Earnings before interest and taxes (EBIT) reached breakeven in
2006. The company was cash-positive at end 2006.
In 2007, Jumpstart is expected to see strong growth in both revenues
and EBIT.
An initial cash payment of $84 million is payable under the terms of
the agreement. Additional consideration of up to a maximum amount of $26
million will be paid in 2008 and 2010 contingent on the attainment of
certain specified earnings targets.
The transaction is expected to give HFMUS and LAGARDERE ACTIVE
globally, the opportunity to develop the following synergies:
-- Combining the three HFMUS web sites with the Jumpstart portfolio
will raise total unique visitors represented to 5 million
(ComScore figure), and adding HFMUS's three popular high-end
brands (CarandDriver.com, RoadandTrack.com and Cycleworld.com)
will enhance the attractiveness of the product offering to
advertisers.
-- Jumpstart's expertise in search and display advertising for
dealerships and dealer groups (a total category estimated at $16
billion) will boost the HFMUS sites.
-- The experience of Jumpstart's specialist digital teams (over 75
professionals) will help HFMUS accelerate the transition to
digital in the automotive sector in the United States, as well as
LAGARDERE ACTIVE in Europe and Asia.
-- The deal significantly reinforces HFMUS's cross-media strategy of
combining print media and digital.
-- The expertise built by HFMUS in automotive content (including
video) can be rolled out across Jumpstart's partner sites, and
offered to Jumpstart's dealership client base.
Closing of the transaction is expected to occur prior to the end of May
2007 and is subject to customary closing conditions, including anti- trust
approval.
Paris, April 19, 2007
(1) 2006 revenues are unaudited and proforma as restated for IFRS as
applied by the group Lagardere
The Lagardere Group is a market leader in the media sector (books,
distribution of cultural products, press, audiovisual, and sports content).
The Group also has interests in the high technology sector via a 14.98%
stake in EADS.
Lagardere shares are listed in Paris on Eurolist by Euronext -
Compartment A
Lagardere Group Press Contacts:
Thierry FUNCK-BRENTANO tel: +33 (0)1.40.69.16.34
e-mail: tfb@lagardere.fr
Arnaud MOLINIE tel: +33 (0)1.40.69.16.72
e-mail: amolinie@lagardere.fr
Investor Relations:
Laurent CAROZZI tel: +33 (0)1.40.69.18.02
e-mail: lcarozzi@lagardere.fr
About Jumpstart Automotive Media
Jumpstart Automotive Media (http://www.JumpstartAutomotiveMedia.com) partners
with leading web publishers to create the Internet's largest and highest
quality community of car shoppers. Jumpstart's targeted reach and
innovative marketing programs help automotive manufacturers and dealers
improve their advertising results and help web publishers achieve a maximum
return on their audience. Jumpstart counts every automotive manufacturer
and more than one thousand automotive dealers as customers. Key Jumpstart
Network partners include NADAguides, Vehix, Consumer Guide Automotive, JD
Power Autos and Shopping.com. Jumpstart has partnered with leading web
sites and ad networks for a Behavioral Auto Channel which uses behavioral
targeting to track and serve ads to in-market car buyers across one of the
web's largest aggregated distribution bases.
Jumpstart has aggregated the largest in-market audience online through
four core products:
Contextual Display Network
-- 5 million unique car shoppers/month - the Jumpstart Auto Channel
Behavioral Targeting Display Network
-- 6 million unique car shoppers/month - auto buying intent behavior
-- 140 million unique internet users - aggregated distribution
network
New Car Leads
-- 75,000+ qualified consumer leads delivered to U.S. auto dealers
per month
Traffic Builder Search Marketing
-- Product portfolio spans all stages of consumer car research
-- Customer base spans all facets of automotive marketing
Including OEMs, regional dealer associations, local auto dealers,
allied industries
Ever since its launch in 2000, Jumpstart has been profitable and
expects to double its revenue basis in 2007. The company is privately held
and is headquartered in San Francisco, CA with additional offices in Los
Angeles and Detroit.
About Hachette Filipacchi Media U.S.
Hachette Filipacchi Media U.S. (http://www.hfmus.com) enthusiast brands reach
over 50 million consumers through magazines and millions more through
online and mobile content. The company's prestigious brands include
American Photo, Boating, Car and Driver, Cycle World, ELLE, ELLE Decor,
ELLEgirl, Flying, Home, Metropolitan Home, Popular Photography & Imaging,
Premiere, Road & Track, Shock, Sound & Vision, Woman's Day and Woman's Day
Special Interest Publications. The company plans to launch is first digital
brand PointClickHome in second quarter 2007. Each brand has a web site; and
a growing number of Hachette brands, including Car and Driver, ELLE,
ELLEgirl, and Woman's Day, have brand extensions in television, radio,
mobile services and consumer branded events. Hachette Filipacchi Media
U.S., Inc. also includes book and custom publishing, integrated marketing,
database and market research, as well as licensing, and is part of the
Lagardere Active division of Lagardere SCA (http://www.lagardere.com) which is
headquartered in France.
Car and Driver (http://www.CarandDriver.com) With a circulation of 1,300,000
in the U.S., Car and Driver is the world's largest, most comprehensive
automotive enthusiast publication with six international editions which
combine unsurpassed editorial and technical expertise with the ability to
place readers in a virtual driver's seat. Car and Driver is a vibrant brand
which currently offers interaction with its audience through a website,
radio, mobile, podcasting and events. Over 10.5 million people read the
magazine each month and more than 1 million go online for CD content.
CarandDriver.com has experienced 133% growth over the past year. Car and
Driver is available on Sirius and XM satellite radio and on Podcastgo.
Road & Track (http://www.RoadandTrack.com) Road & Track is America's original
car enthusiast publication, with a 60-year track record of providing its
audience with the finest road tests of new cars, comparisons for car
shopping, over-the-horizon looks at future cars and trends, in-depth
technical updates on everything from future fuels to tire technology, and
racing features that transport the reader into the pits and paddocks of
racing teams around the world. Road & Track's reputation for integrity and
excellence extends from the magazine and into a robust website with
interactive features, as well as a live radio program, events and licensed
products. RoadandTrack.com has seen 93% growth over the past year.
Cycle World (http://www.CycleWorld.com) With its premiere issue in 1962, Cycle
World marked the beginning of modern motor-journalism. Enthusiasts finally
had a publication written to serve their interests, rather than those of
motorcycle retailers. Forty years later the result is obvious: Cycle World
is the leading motorcycle magazine in the world. The publication is
respected by enthusiasts for insightful and honest reporting on all aspects
of motorcycling.
(1) 2006 revenues are unaudited and proforma as restated for IFRS as
applied by the group Lagardere
|
