Global advertising network WPP will acquire 10% of Netking. Discount Investments is expected to enter into over 30% partnership.
Netking, owned by the Tamir-Cohen advertising agency, has concluded a deal for the sale of 25% of its shares to second channel concessionaires, Reshet, at a company value of $5 million before money. Discount Investments is next expected to enter into over 30% partnership, at twice the company value. Also, conglomerate WPP, parent company of the JWT agency, represented in Israel by Tamir Cohen, will acquire 10% of Netking. "Globes" learns that, following these transactions, Tamir-Cohen, currently the 100% owner, is due to retain 20% of the shares of Netking.
Netking is to become a separate entity, independent of the advertising agency. Netking general manager Yonatan Ben-Artzi said the company is about to enter into e-commerce. As regards issuance, partner Ronny Cohen said: "We have no intention of issuing. We are in contact with leading strategic partners in the economy. Only after investments are made will we consider issuing".
Meanwhile, Netking for the first time launched a $400,000 TV advertising campaign, which it defines as "Israel's first portals campaign".
Published by Israel's Business Arena September 5, 1999