ValueClick’s 10 K

If you’re into reading long legal documents like a company’s 10-K filing (mandatory SEC paperwork for public companies), here are some fun highlights that I’ve pulled from ValueClick’s 10-K that was just filed…

SEC: ValueClick 10-K Filing On July 30, 2007, we completed the acquisition of MeziMedia, a leading operator of U.S. comparison shopping websites. Under the terms of the agreement, we acquired all outstanding equity interests in MeziMedia for initial cash consideration of $96.3 million, net of cash acquired of $18.9 million, plus approximately $700,000 in transaction costs, resulting in a total initial cash consideration of $97.0 million. In addition to the initial cash consideration, the shareholders of MeziMedia earned $106.1 million in cash consideration for achieving certain revenue and earnings performance targets for the year ended December 31, 2007. The shareholders of MeziMedia may also be entitled to additional contingent cash consideration based on the achievement by MeziMedia of certain revenue and earnings performance targets for the years ending December 31, 2008 and 2009. Total cash consideration, which includes the $97.0 million initial cash consideration, including transaction costs, and the $106.1 million cash consideration related to fiscal 2007 performance, will range between approximately $203.1 million and $348.8 million, depending on whether the performance targets are met for the years ending December 31, 2008 and 2009. MeziMedia provides the Company with additional opportunities to monetize online traffic and expand its overall comparison shopping presence in the United States, China and Japan. The results of MeziMedia’s operations are included in the Company’s consolidated financial statements beginning on the date of acquisition.

…We expect that our advertiser customers’ requirements will become more sophisticated as the Web continues to mature as an advertising medium. If we fail to manage our existing advertising space effectively to meet our advertiser customers’ changing requirements, our revenue could decline. Our growth depends on our ability to expand our advertising inventory. To attract new customers, we must maintain a consistent supply of attractive advertising space. We intend to expand our advertising inventory by selectively adding to our networks new Web publishers and email list owners that offer attractive demographics, innovative and quality content and growing Web user traffic and email volume. Our ability to attract new Web publishers and email list owners to our networks and to retain Web publishers and email list owners currently in our networks will depend on various factors, some of which are beyond our control. These factors include, but are not limited to: our ability to introduce new and innovative products and services, our ability to efficiently manage our existing advertising inventory, our pricing policies, and the cost-efficiency to Web publishers and email list owners of outsourcing their advertising sales. In addition, the number of competing intermediaries that purchase advertising inventory from Web publishers and email list owners continues to increase. We cannot assure you that the size of our advertising inventory will increase or remain constant in the future.

…Affiliate Marketing segment revenue increased to $112.2 million for the year ended December 31, 2006 compared to $95.8 million in 2005. This increase of $16.4 million, or 17.1%, was due to a continued increase in the number of customers and an increase in transaction volumes associated with both our new and existing customers, partially offset by a reduction in revenue from a large customer in this segment.

Page 25 is interesting to those of you wondering about the FTC inquiry as well.

All in all, there are about 100 pages total (normal for a Form 10-K) of interesting stats and information to plow through if you’re having trouble sleeping at night or if you’re into stats porn.

You can search for public companies to your heart’s content here.

Enjoy!

Hat tip to paidcontent.org for the 10-K filing season alert. For some reason, I always look forward to this time of the year.

About Sam Harrelson

Former ReveNews and CostPerNews Publisher, Former Affiliate Marketer, Current Middle School Science Teacher, Current Publisher of AffiliateHack

Twitter: sbharrelson22

2 Responses to ValueClick’s 10 K

  1. ViralKing says:

    Some big figures there… Thanks for pulling it out for us 🙂

  2. Mike Allen says:

    Interesting statement from the last paragraph you quoted: ". . . partially offset by a reduction in revenue from a large customer in this segment." I wonder who that was?