Internet Changes Everything

Japanese Internet mall Rakuten expands into US

Japanese Internet mall Rakuten expands into US - Yahoo! News UK

TOKYO (AFP) - Japan's biggest online shopping mall, Rakuten, said it had struck a deal to buy New York-based Internet marketing agency LinkShare, laying the foundations for a launch in the United States.

Rakuten, which offers on-line shopping, travel, auctions and financial services, will pay 425 million dollars for the US affiliate marketing firm.

Affiliate marketing aims to boost Internet retailers' sales by placing links and advertising banners on small websites. When visitors click on the link and buy something the small website operator gets a commission.

Affiliate marketing aims to boost Internet retailers' sales by placing links and advertising banners on small websites. When visitors click on the link and buy something the small website operator gets a commission.

"LinkShare's performance-based marketing expertise across affiliate, search and e-mail capabilities provides Rakuten with an excellent first step to launch our US operations and continue our international expansion," Hiroshi Mikitani, chairman and chief executive of Rakuten, said in a statement.

"We can leverage LinkShare's client relationships and technology advantages worldwide so that LinkShare will be able to achieve significant growth in the future."

LinkShare says that about two percent of US retail commerce, or 1.4 billion dollars of trade, passed through its network in 2004. Its clients include American Express, Avon Products and Dell.

"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," said LinkShare chief executive Stephen Messer.

"Our merchants and our affiliates will benefit because taking the network worldwide can only increase volume, which means growth for everyone."

Rakuten said last month that it had returned to profit in the six months to June as the purchase of a professional baseball club boosted its brand recognition.

It was the first interim profit in two years for Rakuten, which in March established Japan's first new professional baseball club in 50 years following an unprecedented strike.

September 7, 2005 at 11:14 PM in email | Permalink | TrackBack (19) | Top of page | Blog Home