Internet Outsider: 24/7 Real Media: Yours for $600 Million, Mr. Sorrell

April 26, 2007

24/7 Real Media: Yours for $600 Million, Mr. Sorrell

24/7 is reportedly eager to sell itself (no doubt inspired by the $3B Doubleclick deal) and, per the NY Post, is holding up WPP for $600 milliion. Jason thinks $600 million would be a steal.

Post: Internet ad firm 24/7 Real Media is on the auction block and has already been talking to Martin Sorrell's WPP Group, the world's second-largest ad giant, among other potential suitors... 24/7 Real Media has been flirting with Britain's WPP for several months, although price is proving to be a sticking point... "Sorrell wants to look like he has a digital strategy," said one source familiar with the talks.

JJ: A $600m price tag would represent a 19x '07 EV/EBITDA multiple for TFSM. I estimate that DCLK was purchased for a low 30x multiple and DTAS was purchased for 15.6x. Both AQNT and VCLK look attractive given the recent M&A multiples. They trade at 16.8x and 15.3x respectively. I would go long AQNT and possibly VCLK.

HB: This would be a huge comeback for (and testament to the dedication of) CEO David Moore and his team, who survived the worst of the bust.

Posted by Henry Blodget on April 26, 2007 at 11:17 AM | Permalink

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LET'S GET REAL WITH THIS 600 MIL-WHICH WOULD LETS THE SHORTS OUT WITHOUT BLEEDING TO DEATH--HOW ABOUT PUTTING SOME REAL NUMBERS OUT AS TO WHAT TFSM WOULD REALLY SELL FOR-NO ONE SEEMS TO WANT TO TAKE INTO CONSIDERATION THAT INSTITUTIONS OWN OVER 100% AND THE SHORTS HAVE OVER 7 MILLION SHARES WHICH HAS BEEN NOTHING BUT A BIG DRAG ON THE PRICE AND MARKET CAP. ALSO ASIAN GROWTH POTENTIAL IS ENORMOUS.

Posted by: AARACH | April 26, 2007 at 12:08 PM