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24/7 Media, an on-line advertising solutions provider, has announced that it is to stop funding its European operations, and is openly courting potential buyers.
The New York-based company has already shut down its operations in Latin America, closing offices in Miami, Brazil, Argentina, Mexico and Chile, and has said that it will focus more on its core businesses in North America.
In an official statement, Tony Plesner, chief operating officer said that the company continues to aggressively act upon its strategies to reduce operating costs." Regarding the company's plan to concentrate more on its business in North America, Plesner added that this focus is essential to the company's ability to execute its business plan in a difficult market environment.
It is not yet known whether job cuts will take place in its European operations, where approximately 200 people are employed. However, Mitchell Simmons, senior vice president of corporate communications at 24/7 Media told ElectricNews.Net that the company had tried unsuccessfully to sell its European operations. Currently, according to Simmons, 24/7 Media Europe is talking to other companies that might be interested in funding or acquiring the operation.
Simmons also said any potential layoffs or acquisition deals are solely in the hands of the company's European directors. The European division was not available for comment at the time of going to press.
24/7 Media Europe, has 18 offices across Europe in the Netherlands, the UK, France, Germany, Belgium, Spain, Switzerland, Denmark, Italy, Portugal, Norway, Sweden and Finland.
On Tuesday, the company released its financial results for the second quarter of 2001 recording net losses of USD53.8 million, compared with USD22.2 million for the corresponding period last year. Revenues for the company were at USD13.4 million while it recorded pro forma net losses of USD0.35 per share.
On announcing its results 24/7 said that the results of the company's European operations are now accounted for as discontinued operations, and that all future guidance will not include European operating results.
In May, Doubleclick Inc. purchased the intellectual property assets of Sabela Media, a global ad serving, tracking and analysis company, from 24/7. The financial terms of the deal were not disclosed. Sebela Media was originally acquired by 24/7 Media in January 2000.
At the time, 24/7 Media announced that the sale of Sebela Media would help the company focus on the global rollout of its ad serving system, Connect, which is deployed in the United States, Canada and Latin America.
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