Quigo to be Acquired by AOL for $300 Million
Quigo, a New York/Israel-based company that specializes in ad targeting, is in the process of being acquired by AOL, according to a report in Haaretz, an Israeli daily newspaper. Time Warner Inc. is purchasing Quigo for $300 million in an attempt to better compete with Google and Yahoo.
Quigo has two main services that they provide their clients, AdSonar and FeedPoint. Adsonar is very similar to Google’s Adsense in that it provides targeted advertisements on various websites, and FeedPoint is their search engine marketing tool.
Last June, Time Inc. signed an exclusive deal with Quigo that provided their 15 web titles with a custom version of the company’s pay-per-click ad service and allowed the online magazines to be sold as a single network.
Time Inc. executives estimated that the Quigo deal will bring in $100 million in revenue over the next three years. Similarly, at the end of October, Quigo signed a multi-year contract with TheStreet.com to develop a custom version of AdSonar for the financial news site.
Will Quigo be powerful enough to pull AOL into the ad targeting market and compete with Google and Yahoo, not really sure, but it will definitely be interesting to watch.