M&A Report: Drapr, Knewz and Yahoo! In the News
This week's M&A report highlights Gap's acquisition of Drapr to enhance its eCommerce with 3D virtual fitting room technology, Empire Media Group's purchase and planned relaunch of the AI-driven news aggregator Knewz from News Corp, and Verizon's sale of Yahoo! and AOL to a private equity group.
In keeping with our mission to provide comprehensive advertising analysis, MediaRadar puts together a report of the most important mergers and acquisitions news each week. Stay in the loop, whether you sell advertising space or focus on business development.
This week, Gap boosted its eCommerce features with Drapr. Empire Media Group is ready to begin its relaunch of Knewz. And Verizon sold Yahoo! and AOL to a private equity group.
Gap invests in virtual fitting room tech, Drapr
Gap, Inc. has announced it acquired Drapr, a virtual fitting room for online clothing retail. The e-commerce startup uses 3D virtual try-on technology that allows customers to shop for clothing that fits their body type.
The move follows other companies like SnapChat and Walmart, both of which have invested in similar technology for the online clothes shopper.
Last month, Gap Inc.’s Old Navy stores launched the BODEQUALITY program, making the company the first value retailer to offer sizes 0-30 and XS-4X for all women’s styles with no price difference.
The stores will also use plus-sized mannequins and models with their products in stores and online.
Empire Media Group purchased Knewz
Media conglomerate Empire Media Group has acquired the news-aggregating platform Knewz from the Murdoch-owned News Corp. Knewz was launched in a defiant effort to gain leverage against Google and Facebook’s control over what news content reaches viewers.
The website is a cyboric collaboration of AI programs that scour the internet for stories which then go to editors to curate and repackage. The project lasted 18 months before it was shut down.
Empire Media Group is led by former American Media Inc executive Dylan Howard. The company has completed several digital acquisitions this year. The relaunched and rebranded Knewz will feature alongside EMG’s other media properties including RadarOnline, OKmagazine.com, and Front Page Detectives.
Financial terms of the deal were not made public.
Yahoo! has a new owner: Apollo Global
Private equity firm Apollo Global Management announced it has acquired Yahoo and AOL from Verizon in a deal valued at approximately $5 billion. As part of the terms of the transaction, Verizon will hold onto 10% of the rebranded company.
Verizon paid around $4.4 billion in its acquisition of AOL in 2014, then $4.5 billion for Yahoo in 2017. The company sold Tumblr, a Yahoo-owned brand which had been valued at $1.1 billion in 2013, to WordPress for $3 million in 2019.
With the sale of Yahoo and AOL, Verizon has fully exited the media production and advertising business. Going forward, Yahoo will operate as a standalone company under Apollo Funds.
In Other News
Other highlights from this week include:
- Apple, Inc. has announced it acquired the classical music streaming service Primephonic.
- ByteDance Ltd., the parent company of TikTok announced the acquisition of the virtual reality hardware manufacturer Pico Interactive.
- Medical products company Baxter International Inc. announced that it has entered into an agreement to acquire medical technology company Hill-Rom Holdings Inc. for $10.5 billion.
- Pharmaceuticals company Catalent, Inc. announced that it is acquiring Bettera Holdings LLC, the parent company of Bettera Brands, from Highlander Partners for $1 billion.
- Following its earlier announcement to stop selling cigarettes in the U.K. by 2030, Philip Morris International’s CEO Jacek Olczak told the Daily Mail that the company has considered selling its Marlboro cigarette business. However, the decision was later halted because the company decided that keeping the business would help finance its transition away from smoking products.
- Following an earlier report that Mailchimp was exploring a sale, Bloomberg reported that Intuit, Inc., the owner of TurboTax and QuickBooks software, is in talks to acquire the email marketing firm for more than $10 billion.
Related
M&A Report: Microsoft, WeWork and EssilorLuxottica In The News
This week's M&A report highlights Microsoft's acquisition of data security firm BlueTalon to enhance Azure's data management, WeWork's exclusive talks to buy real estate software startup SpaceIQ to bolster its tech image ahead of a potential IPO, and EssilorLuxottica's ongoing expansion in the global eyewear market through its planned acquisition of Dutch eye-care retailer GrandVision NV.
Advertising Mergers & Acquisitions: Aug. 1 - 17, 2018
Between August 1-17, 2018, notable advertising and brand-related mergers and acquisitions included AT&T's $1.6 billion acquisition of ad-tech company AppNexus to expand its global advertising analytics, Douglas Elliman Real Estate's purchase of NYC townhouse specialist Vandenberg to strengthen its single-family home market presence, and Salary.com's acquisition of Compdata Surveys & Consulting to become the third largest compensation data provider, amidst a broader context of 123 deals worth $55 billion across industries.
M&A Report: Nike, The Maven Coalition and Salesforce In The News
This week’s M&A report highlights Nike’s strategic acquisition of AI-driven retail analytics platform Celect to enhance its direct-to-consumer inventory forecasting, Maven Coalition’s $16.5 million purchase of financial news site TheStreet to expand its media portfolio alongside Sports Illustrated, and Salesforce’s continued business expansion following its $15.7 billion Tableau deal with the acquisition of workforce management software ClickSoftware.
M&A Report: Amazon, Roku and WeWork In the News
This week's M&A report highlights Amazon's acquisition of Health Navigator to enhance its Amazon Care health services, Roku's $150 million purchase of advertising tech firm DataXu to improve targeted marketing through data analytics, and SoftBank's agreement to acquire an 80% stake in the struggling workspace provider WeWork.
M&A Report: Revue, Deloitte, and Khoros In the News
This week’s M&A report highlights Twitter’s acquisition of email newsletter service Revue to enhance platform monetization and user engagement, Deloitte’s purchase of cybersecurity firm Root9B to strengthen its risk management offerings, and Khoros’s expansion of conversational AI capabilities through the acquisition of Flow.ai.
M&A Report: YES Network, Big Tobacco and WeWork In The News
This week's M&A report highlights Disney's $3.47 billion sale of its 80% stake in the YES Network to a consortium including Sinclair, Amazon, and the New York Yankees, ongoing merger talks between tobacco giants Philip Morris International and Altria Group aimed at diversifying amid declining cigarette sales, and The We Company's strategic acquisition of a competing coworking firm to strengthen its portfolio ahead of its IPO.