February 20, 2008
- MagClick
February 20, 2008
Press Release
Magclick Inc.
cyber communications inc.
Magclick Joins in Business and Capital Partnership with cyber communications
Tokyo – February 20, 2008 – GMO Internet Group company, Magclick Inc. and cyber communications inc. announce that cci has acquired 2,000 common shares of Magclick stock and that the two companies have entered into a partnership agreement to be focused on Internet advertising development, planning, and sales.
1. Objectives of the Capital and Business Partnership
The Internet advertising market is expected to experience high growth; however, even higher growth is expected in long-tail* advertising. The Magclick and cci have teamed up to work together in this field.
The business partnership will combine the broad Internet advertising expertise and major Internet media network of cci with the extensive small and medium advertising agency sales network of Magclick. The union will further strengthen sales in long-tail advertising, and the two companies also have plans to work together in advertising media planning, development, and sales through the cci group, Ad Marketplace.
The cci acquisition of Magclick stock will serve to strengthen the cooperative relationship and foster a more effective business partnership between the two companies.
*The sum total hits received by all Internet pages with a low frequency of hits is greater than sum total hits received by all pages with a high frequency of hits. This phenomenon is the Internet’s long tail. It is common for example on Internet mail order sites, unlike in regular stores, for sales of the top 20% of products to be less than sales of the remaining 80% of products. The same phenomenon is believed to apply to search engines where search terms that occur at a low frequency account for a higher proportion of searches than search terms that occur at a high frequency.
2. Outline of the Capital Partnership
No. of shares acquired: 2,000
Method of acquisition: Purchase from existing shareholder
No. of shares held after acquisition: 2,001
Ownership proportion after acquisition: 2.23%
3. Schedule of the Capital and Business Partnership
February 20, 2008: The two companies sign business partnership contract
February 20, 2008: cci acquires Magclick Inc. stock
4. Outlook
We expect this partnership to have minimal impact on performance results for Magclick in the fiscal year ending 2008 and for cci in the fiscal year ending March 2008.
Media Inquiries
GMO Internet Inc. Group PR Team
E?mail：[email protected]
The GMO Internet Group
The GMO Internet Group is a leading force in the Internet industry offering one of the most comprehensive ranges of Internet services in Japan. We hold top domestic market shares in domain registration, web hosting and payment processing and we provide a host of other services including e-commerce solutions and Internet advertising to individual and corporate customers. Striving to redefine the industry and foster a vibrant Internet culture, the GMO Internet Group is continuously working to inspire enthusiasm in our customers and put smiles on their faces.
Company Name | Magclick, Inc. http://www.magclick.com/ (Osaka Stock Exchange, Hercules Market: 4784) *Scheduled to become GMO Ad Networks from July 1, 2008 |
Address | 1-10-7 Dogenzaka, Shibuya ku, Tokyo, JAPAN |
CEO | Shintaro Takahashi |
Business Description | - Internet Advertising |
Capital | 1,301,000,000 yen |
cyber communications inc.
Company Name | cyber communications inc. http://www.cci.co.jp/ |
Address | 7F COMODIO SHIODOME 2-14-1 Higashi-Shinbashi, Minato ku, Tokyo, JAPAN |
CEO | Hideyuki Nagasawa |
Business Description | - Internet advertising planning, creation and sales |
Capital | 2,381,000,000 yen |
GMO Internet Inc.
Company Name | GMO Internet Inc. http://www.gmo.jp/en (TSE First Section Code: 9449) |
Address | Cerulean Tower, 26-1 Sakuragaokacho, Shibuya ku, Tokyo, JAPAN |
CEO | Masatoshi Kumagai |
Business Description | - Internet Use Support (Infrastructure) - Internet Advertising Support (Media) |
Capital | 12,631,970,000 yen |