Yahoo! to Acquire Kelkoo
Establishes Yahoo! as a Key Player in the Online European Commerce Space and
Adds Significant Strength and Scale to Yahoo! Europe`s Business
SUNNYVALE, Calif. & LONDON & PARIS--March 26, 2004--
Yahoo! Inc., (Nasdaq:YHOO - News) a leading global Internet company, and
Kelkoo S.A., Europe`s leading online comparison shopping service, today
announced they have signed a definitive agreement under which Yahoo! will
acquire Kelkoo. Under the terms of the agreement, Yahoo! will acquire up to
100 percent of the share capital of Kelkoo for an aggregate cash purchase
price of approximately EUR 475 million, subject to certain adjustments.
Kelkoo`s comparison shopping service and lead referral model augments both
Yahoo!`s global commerce initiatives and the search-related online marketing
services provided through its subsidiary, Overture Services, further
expanding Yahoo!`s position as the largest and most diverse online
advertising platform in the world.
"Commerce has emerged as a key component of search, and the combination of
Web search, product search and comparison shopping will help further
Yahoo!`s goal to create the most comprehensive and best user experience on
the Web globally," said Terry Semel, chairman and chief executive officer,
Yahoo! Inc. "Kelkoo will add depth and breadth to Yahoo!`s integrated
network of services for consumers, and adds another set of powerful tools
for marketers seeking to reach them."
Kelkoo is the largest e-commerce service originating in Europe. It has
operations in nine countries reaching nearly 10 percent(1) of all European
Internet users. Kelkoo enables consumers to quickly and easily find products
through its product search engine, then compare prices from more than 2,500
merchants with more than 3 million products across 25 categories, including
books, films, music, games and consoles, mobile phones, travel, computing,
consumer electronics, fashion and cars. Kelkoo`s merchants pay lead referral
fees when consumers click through to merchant websites from its service.
Kelkoo operates through its own network of branded sites, powers shopping
platforms for other shopping networks through `white label` relationships,
and maintains an affiliate distribution network.
"We believe the combination of Kelkoo`s comparison shopping service with
Yahoo!`s global reach and commitment to being the leader in search and
commerce will help Kelkoo extend its leading presence in Europe," said
Pierre Chappaz, chief executive officer and founder of Kelkoo. "Our teams
across Europe have worked tirelessly to create the region`s number one
comparison shopping service and we anticipate that this transaction will
enable us to further invest in developing the ultimate online shopping
experience for consumers."
This acquisition expands upon Yahoo!`s global commerce strategy and will
boost Yahoo! into a leading position in online commerce in Europe by
leveraging the technology and experience of the region`s number one
comparison shopping service. The combination will also provide strategic
balance to Yahoo! Europe`s network, adding an additional pillar alongside
its powerful brand advertising offerings, search, and communications and
access services. Furthermore, it is anticipated that the combination will
add significant strength and scale to Yahoo! Europe`s business, increasing
its reach by introducing millions of new users to Yahoo! Europe`s network.
Kelkoo and Yahoo! expect to take advantage of the rapid potential growth of
online shopping and lead generation in Europe, by combining Kelkoo`s online
shopping expertise and leading product search technology with Yahoo!`s
network and its Web search technology, as well as by capitalizing on
Overture`s commercial search capabilities. Within Europe, researching
products has become the second most popular activity on the Internet, only
second to sending e-mail(2). And, according to Forrester Research, the
European online retail market is expected to grow from EUR 40 billion in
2004 to EUR 167 billion by 2009(3).
"Kelkoo is rapidly becoming essential in the daily lives of millions of
Europeans making it an important addition to the Yahoo! network," said John
Marcom, senior vice president international operations, Yahoo! Inc. "In
addition, Kelkoo provides outstanding and complementary technology and
personnel, including a strong management team, to help Yahoo! achieve its
goals in Europe."
Kelkoo was founded in France in November 1999, and has since merged with or
acquired several companies in the UK, Spain, Norway and France. The company
has been profitable since the fourth quarter of 2002 and achieved rapid year
over year growth from 2002 to 2003. Kelkoo currently employs approximately
250 people across nine European countries. It is not anticipated that there
will be a reduction in Kelkoo`s workforce as a result of the transaction.
Kelkoo will become a subsidiary of Yahoo! following completion of the
acquisition. Pierre Chappaz will continue to lead Kelkoo`s operations and
will report to John Marcom.
The transaction is subject to customary closing conditions, and is expected
to be completed during the second quarter of 2004.
About Yahoo!
Yahoo! Inc. is a leading provider of comprehensive online products and
services to consumers and businesses worldwide and is the No. 1 Internet
brand globally. Headquartered in Sunnyvale, Calif., Yahoo!`s global network
includes 25 World properties and is available in 13 languages.
About Yahoo! Europe
Yahoo! Europe provides communications, commerce and media services across
its six sites in Europe to meet the needs of local consumers. Yahoo! Europe
is comprised of the Yahoo! sites for the UK & Ireland (
www.yahoo.co.uk), France (
www.yahoo.fr), Germany ( www.yahoo.de), Italy (
www.yahoo.it), Spain (
www.yahoo.es) and Catalan ( www.ct.yahoo.com). The
Yahoo! offices in London, Paris, Munich, Milan and Madrid are staffed by
local nationals and Yahoo! Europe is headquartered in central London.
About Kelkoo
Kelkoo is the leading European comparison shopping service, operating in 9
countries: UK; Germany; France; Italy; Spain; Holland; Denmark; Sweden; and
Norway. It is the largest e-commerce service originated in Europe. Kelkoo`s
technical center, located in Grenoble, France has been developing a powerful
product search technology as well as shopping comparison services for all
kind of products and services including cultural goods, electronics,
computing, fashion and travel. Kelkoo has been funded since its creation in
1999 by Venture capital firms such as Banexi Venture Partners, Sgam (Societe
Generale) and Innovacom from France, Netjuice and BBVA from Spain, and
Kistefos from Norway.
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