The investment--$75 million in DoubleClick stock and $10 million in cash--gives DoubleClick a 30 percent equity stake in ValueClick. DoubleClick also received a warrant to buy another 15 percent of ValueClick within 15 months.
ValueClick said it plans to use the new capital to fuel its growth and expansion efforts, including acquisitions, as well as to further develop its performance-based advertising solutions that utilize a cost-per-click model. The funding, however, will not change ValueClick's plans for additional financing or other sources of capitalization, the company said.
With the investment, DoubleClick will gain two seats on ValueClick's board of directors.
ValueClick, which currently uses an in-house ad serving solution, said it served 1.3 billion ads in December 1999. ValueClick's performance-based banner advertising solutions use a "cost-per-click-through" pricing model where advertisers pay only for "click-throughs" to their Web site.
The company will work with DoubleClick to integrate its proprietary technology platform with DART, DoubleClick's full-service ad serving solution.
ValueClick said it has created a technology architecture designed to aggregate thousands of Web sites. Currently, ValueClick has more than 11,000 sites in its network and serves ads that reach 25 percent of U.S. Internet users, according to Media Metrix.
The Year 2000 computer problem may have hit a collection of U.S. image-collecting spy satellites a lot harder than first thought, according to a report.
The family of satellites was affected by the Y2K glitch for nearly three days, a failure far more substantial than the Pentagon's earlier reports of just a few hours, The Chicago Tribune reported today, based on interviews with what it terms "knowledgeable" government officials.
A computer patch intended to avert Y2K glitches turned the flow of data from five spy satellites into indecipherable garble. Within a few hours, Pentagon technicians redirected the satellite signals and began the slow process of manually deciphering the signals, according to the report.
Government officials were unavailable for comment on the report this morning.
The three-day shutdown occurred at a time when the entire U.S. intelligence community was on global alert for potential terrorist activity relating to Year 2000 celebrations, the report states.
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