Internet ad firms' shares spike on Google’s buyout of DoubleClick
Google’s (Nasdaq: GOOG) announcement Friday of its plans to buy privately held DoubleClick for $3.1 billion has led to increased interest in a couple of small-cap companies in the online advertising space.
Shares of digital marketing company 24/7 Real Media Inc. (Nasdaq: TFSM) and Marchex Inc.(Nasdaq: MCHX) were up on Monday on the heels of the announcement as industry observers speculated who might be the next takeover target.
New York-based 24/7 Real Media Inc’s stock was up $1, or by 11.7%, to $9.58 in intra-day trading Monday after trading as high as $9.97 earlier in the day. Volume was heavy – at 2.5 million shares more than twice the company’s three-month average volume of about 987,000 shares. 24/7 Real Media’s stock has traded between $6.72 (on June 14, 2006) and $11.79 (on April 19, 2006) in the past year.
Founded in 1998, 24/7 Real Media sells its products and services through a sales and marketing organization in 12 countries throughout North America, Europe, Asia, and Australia.
Meanwhile, Marchex Inc. shares were up $0.17, or by 1.1%, to $15.29 on Monday. The Seattle-based search and media company’s stock has traded as low as $11.01 (on Jan.22) and as high as $23.24 (on April 21, 2006) in the past year.
Google’s pending buyout of DoubleClick for two private equity firms is expected to close by year’s end.
