US holding company WPP has bought 17% of Netking at a company value of $6 million, "Globes" has learnt. The deal was based on a valuation done a year ago, when the companies signed an agreement in principle. Since then, Channel 2's concessionaire, Reshet, bought 20% of Netking, and Discount Investment Corporation acquired 30% of the company from Tamir-Cohen, at a value of $6.6 million. Netking's value has since risen to $13 million.
Following the series of acquisitions, Netking founders Roni Cohen and David Tamir hold 20% and 13% in Netking, respectively.
WPP owns advertising agency JWT, which holds 50% of Tamir-Cohen and of Ogilvy & Mather, which is represented in Israel by Fogel-Levin. WPP recently paid $5.5 billion for advertising agency Young & Rubicam, which owns 25% of Shalmor-Avnon-Amichay. WPP also owns dozens of companies operating in the interactive and media sectors. Netking will join this activity.
Roni Cohen and David Tamir, owners of advertising agency Tamir-Cohen, set up Netking in 1995. The company's flagship product is the Netking portal, which features content resources and various services. The portal has more than 150,000 registered users, and 14 million page views a month.
Published by Israel's Business Arena on 4 June, 2000