LinkShare is Purchased by Japanese Internet Portal

Updated on Tuesday, September 6th, 2005 at 9:33 am

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Tokyo, Japan and New York, New York - (via THE HOSTING NEWS) - September 6, 2005 - Rakuten, Inc. has announced that it has entered into a definitive agreement to acquireLinkShare Corporation, a privately held New York-based performance-basedmarketing firm, for a cash purchase price of approximately $425 million.

Theacquisition is expected to be completed within four to six weeks.

Founded in1997, Rakuten is Japan’s most diversified Internet portal, with the number onesites in Japan for on-line shopping, travel, golf reservations, community andgreeting cards. Rakuten’s on-line and Internet-related businesses alsoinclude shopping via Internet-enabled cell phones, auctions, financialservices, broadband entertainment and business-to-business services.

Rakuten,which has one of the most recognized Internet brands in Japan, is also theowner of Japanese professional baseball’s newest franchise, the RakutenEagles.

Hiroshi Mikitani, Chairman and CEO of Rakuten described the developments, “LinkShare’s performance-based marketing expertise across affiliate, search, and e-mail capabilities provides Rakuten with an excellent first step to launch our U.S. operations and continue our international expansion. We can leverage LinkShare’s client relationships and technology advantages worldwide, so that LinkShare will be able to achieve significant growth in the future.”

Established in 1996, LinkShare Corporation is a leader in performance-based marketing solutions, having created the largest network of affiliates of any program provider, with over 10 million e-commerce relationships. LinkShare has over 500 clients including J.C. Penney, 1-800-Flowers.com, American Express, Avon Products and Dell. LinkShare has been named the New York area’s fastest growing technology company for two years in a row on the Deloitte and Touche Fast 50 list.

Stephen D. Messer, Chairman and CEO of LinkShare Corporation added, “By partnering with a successful portal with global aspirations, LinkShare has positioned itself to take advantage of the increasingly universal nature of the Internet and e-commerce. Our merchants and our affiliates will benefit because taking the network worldwide can only increase volume, which means growth for everyone.”

LinkShare’s senior management team, including Mr. Messer and LinkShare’s President and COO, Heidi Messer, will remain with the company. They will lead the continued growth of LinkShare’s core businesses and will closely support Rakuten’s U.S expansion and exploration of potential acquisitions.

Morgan Stanley advised Rakuten, Inc., and Goldman Sachs advised LinkShare in the transaction.