Snyder Goes on the Block
Snyder Communications, Bethesda, MD, reportedly began accepting bids from prospective suitors last month after announcing that it had retained Deutsche Bank Alex. Brown to explore a sale or merger of the $815 million company.
Company officials told news sources the move was being taken “to maximize shareholder value.” The announcement came a few days after news broke that Snyder ceo Daniel Snyder would increase his investment in a new love, the Washington Redskins football team he acquired in early 1999.
Snyder earned $22.8 million in 1998 on revenue of $815.3 million. Net income in the first nine months of 1999 was $7.3 million – down from $19.8 million in the same period in ’98 – on revenue of $465.4 million.
Snyder’s holdings include full-service agency Arnold Communications, direct-marketing and database division Brann Worldwide, and Bounty SCA, a market development company (see Agencies). Another division, Snyder Healthcare Services, was spun off as a separate company earlier in ’99.
Ha-Lo Industries, Niles, IL, signed a deal with Nike Golf to sell and distribute a line of branded promotional products for the corporate incentive market. It’s the first time Beaverton, OR-based Nike Inc. has formed an outside partnership for promotional products.
SFX Entertainment, New York City, consolidated its 14 sports marketing and management agencies under an SFX Sports banner. The company acquired all of the agencies in the last 18 months, including The Marquee Group, ProServe, Integrated Sports International, and Tellem & Associates. The businesses will be run by chairman David Falk, the founder of the FAME management agency best known as Michael Jordan’s agent.
Online direction service MapQuest.com, New York City, signed a three-year deal with eCoupons.com, Los Altos, CA, to offer the latter’s coupons and merchant services on MapQuest’s site. The deal is valued at $5.7 million.
