Paris based network publisher Hi-media is to acquire the media
division of the AdLINK group for a reported £25.4 million. AdLINK
media currently claims to represent over 4,000 sites, and the purchase
will mean a significant move by Hi-Media into the site represntation
and ad network business.

The deal also opens the way for Hi-media to gain access to significant
European markets that it previously had little of no foothold in.
These include Italy, The Netherlands and The UK.

The deal will leave the remainder of the AdLINK group to concentrate
on its domain parking business, Sedo and Affilinet, an affiliate
network. The deal can also be seen as part of a continuing trend
towards bigger networks with a wider audience reach and the ability to
profile to reach target demographics.

Hi-media will benefit from economies of scale that the aggregate
audience will bring, whilst taking it in the aforementioned new
markets. The combined networks will have a Europe wide audience of 120
million, and will stregthen the reach to the Entertainment,
Automotive, Women’s and B2B sectors.

As CPM rates continue to be put under pressure both on the continent
and in the UK, it is likely that there will be more consolidation
within the network business as it will take a larger audience to be
able to support the infrastructure. In addition other networks will
feel the need to compete with the audience size and related reach,
hence prompting more potential merger discussions.