FRAMINGHAM (06/27/2000) - In an effort to toss a net over the Internet, New York-based Media Metrix Inc. today announced that it will buy Internet research firm Jupiter Communications Inc., also headquartered in New York, in a stock deal worth $414 million.
The move combines Media Metrix's Internet ratings and measurement capabilities with Jupiter's analysis and consulting functions.
The new company will be called Jupiter Media Metrix and will boast more than 730 employees and 1,700 clients. Mary Ann Packo, president and chief operating officer at Media Metrix, said the new company will offer a combination of marketing measurement services, Web analysis and product development.
Packo said the merger gives both companies "a much bigger platform for the future."
Gene DeRose, chairman and CEO of Jupiter, promised that "both brands will be distinct," even after the merger is finalized. He called the deal a partnership between "equally sized companies."
"We come to this from different sectors of the Internet business, so this is a real good fit," DeRose said, noting that the two companies only share 200 clients.
DeRose will become president and vice chairman of the new company, while Media Metrix Chairman and CEO Tod Johnson will retain those titles after the merger.
Johnson said the merger talks arose after the two parties began to negotiate a limited product development partnership. He said both sides determined that a larger company would be able to stake out a bigger presence in the Internet research arena and reap larger profits.