Press Release |
Press Release |
Press Release |
Under the terms of the agreement, Seven and Yahoo! will form a new 50-50 holding company that will own Yahoo! Australia & NZ. Seven and Yahoo! will each hold three of the six board seats in the entity. The combined strengths of Yahoo!'s search and communications capabilities and its global Internet network, with Seven's rich media and entertainment content and marketing capabilities will create one of the most comprehensive and engaging online experiences for Australian consumers and advertisers.
Executive chairman of Seven Network Limited, Mr Kerry Stokes, said: "We are building on our strengths to create a broad media company focused on the delivery of relevant content to all Australians across a number of delivery platforms. Yahoo! is the global Internet leader and their focus on developing compelling content to engage with online audiences complements our strategy."
Yahoo! Australia & NZ and Seven will be combining their online teams and are expected to launch a new name and an exciting online presence in late January, coinciding with Seven's coverage of the Australian Open and the Olympic Winter Games in Torino, as well as the opening weeks of the 2006 television season. The vision for the combined teams is to create the best entertainment, information and communications experience for Australian internet and mobile users.
Chairman and chief executive officer of Yahoo! Inc, Mr. Terry Semel, said: "Yahoo! and Seven have very complementary businesses and brands, and we see this as a tremendous opportunity to build a leadership position in Australia. This is the best combination to benefit from increased broadband penetration, rich media consumption, and the growing cross-media advertising spend. Together, I believe we can deliver the most engaging and innovative rich media experience for Australian audiences and advertisers."
The online experience for consumers is expected to evolve over the next twelve months, but existing Yahoo! Australia & NZ users will continue to receive all of the great services that they have come to know and love. Additionally, Yahoo! will combine its global content, products and technology with Seven-owned content to create a truly Australian online media and entertainment experience rich in video and locally relevant content. New consumer offerings will ultimately be available across online, mobile and IPTV in areas such as news, sports, entertainment, TV, games, music, and travel. Seven will also contribute AUD$10 million to match the existing development capital in the business, offline promotion through the Seven Network and Pacific Magazines, as well as Seven's 33 percent stake in mobile solutions provider m.Net Corporation Ltd, which is subject to obtaining required consents.
Advertisers will also be able to purchase combined offline and online sponsorships across Yahoo! Australia & NZ, the Seven Network and Pacific Magazines. Yahoo!'s unique and sophisticated online targeting capabilities, which helped Yahoo! be named the online media seller of the year by "AdAge," will enable both partners to create differentiated advertising packages for Australian marketers. The Australian online advertising market was nearly a half billion dollars in FY04/05 , surpassing cinema and outdoor advertising, and is expected to grow 21 percent year over year for the next five years which makes online the fastest growing advertising segment in the Australian media market.
As a result of today's agreement, Yahoo! Australia & NZ becomes the key platform for Seven's ongoing development beyond broadcast television and magazine publishing as it builds its Digital Media Division – leveraging its strengths in the creation and marketing of content into new and rapidly evolving forms of technology.
Correspondingly, by partnering with a leader in local digital content, Yahoo! will be better positioned to exploit opportunities for growth in Australia. Seven is the largest television company in Australia reaching 98 per cent of Australians through its owned and operated stations and affiliate agreements. Seven's publishing company, Pacific Magazines, is the second largest magazine company in Australia, with more than 6.6 million readers each month across its 15 publications.
Conference Call
Seven and Yahoo! will hold a conference call for media on Friday December 9, 2005 at 2:00pm Sydney daylight savings time / Thursday December 8, 2005 at 7:00pm US Pacific Standard Time. The telephone number is +61 (2) 9423 1645. Password: Gottaloveit.
About Seven Network:
Seven is the largest television company in Australia reaching 74 per cent of the market through its owned and operated television stations, and 98 per cent of Australians through its owned and operated stations and affiliate agreements. Seven's publishing company – Pacific Magazines – is the second largest magazine company in Australia, with a 21 per cent share of the magazine market.
About Yahoo! Inc.:
Yahoo! Inc. is a leading global Internet brand and one of the most trafficked Internet destinations worldwide. Yahoo! seeks to provide online products and services essential to users' lives, and offers a full range of tools and marketing solutions for businesses to connect with Internet users around the world. Yahoo! is headquartered in Sunnyvale, California.
About Yahoo! Australia & NZ:
Yahoo! Australia & NZ is the best known online media brand in the minds of Australian consumers who see us as fun, friendly and highly innovative. Along with a critical mass of over 4.75 million Australians each month who use Yahoo! for everything from search to mail to music, Yahoo! offers sophisticated, but simple to use personalization capabilities that empower users to customize their online experience to their individual preferences.
This press release contains forward-looking statements that involve risks and uncertainties concerning Yahoo!'s proposed transaction with Seven (including without limitation as described in the quotations from management in this press release), as well as Yahoo!'s strategic and operational plans. Actual events or results may differ materially from those described in this press release due to a number of risks and uncertainties. The potential risks and uncertainties include, among others, the possibility that the transaction will not close or that the closing may be delayed; the reaction of customers and employees of Yahoo! and Seven to the transaction; Yahoo!'s ability to successfully integrate Seven's operations and employees; the combined company's ability to compete with new or existing competitors; acceptance by users of the combined company's new products and services; the combined company's ability to manage growth and diversification; and general economic conditions in Australia. More information about potential factors that could affect Yahoo!'s business and financial results is included under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in the Yahoo!'s Annual Report on Form 10-K for the fiscal year ended December 31, 2004 and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 which are on file with the SEC and available at the SEC's website at www.sec.gov.
Yahoo! and the Yahoo! logos are trademarks and/or registered trademarks of Yahoo! Inc. All other names are trademarks and/or registered trademarks of their respective owners.