Thought you might be interested in this little tid bit about AU. It is actually great news for us as it will greatly expand our group of affiliated newspaper sites (see the one's we have already at www.aun.com).

neomax
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Classified Ventures Expands into Online Auction Business With Acquisition of Industry Pioneer Auction Universe

Two Companies Plan to Create Unmatched Media Network To Expand Affiliates’ Trusted Local Market-Making Role

CHICAGO -- November 11, 1998 -- Classified Ventures, L.L.C., the Internet services business formed by eight leading U.S. media companies, today announced its entry into one of the most promising, fastest-growing segments of e-commerce, online auctions, with the acquisition of industry pioneer Auction Universe.

"Online auctions are an attractive opportunity and natural extension of the traditional market-making role of our affiliates and their local media properties," said David Israel, president and CEO of Classified Ventures. "Together with Auction Universe, we want to create an unmatched network of media participants to help shape this emerging industry."

Auction Universe, a Times Mirror Company, currently provides online auction services through a network of more than 30 newspapers and media properties. It will continue to expand its own network, while being offered as an optional fourth e-commerce business line to Classified Ventures affiliates, whose media properties include more than 140 newspapers.

"Together, the media networks of Classified Ventures and Auction Universe reach more than 70 million people every day, with agreements in the pipeline to add more than 20 million additional readers and listeners," said Larry Schwartz, president and CEO of Auction Universe. "This gives us a unique ability to build credibility and trust and drive business in the online auction market."

Classified Ventures and Auction Universe both leverage the local-market promotional power of their affiliates as a strategic competitive advantage. For example, Auction Universe newspaper affiliates devote a full page per week to promoting its auctions. This is complemented by the company’s recently launched $10 million television and print ad campaign.

Schwartz noted that the economics of online auction services bring new types of goods and services and new customers to expand traditional newspaper classified offerings. The average item sold in online auctions is worth $45 — too inexpensive to advertise in most classifieds. As a result, 40 percent of those who come to Auction Universe’s auctions through newspaper affiliate sites currently do not subscribe to the newspaper.

"Online auctions represent an extraordinary opportunity for newspapers and Classified Ventures," said Israel. "As these markets become more accepted and the value of goods and services offered rises, the online auction marketplace will become increasingly locally focused because buyers will want to see and feel goods before bidding. That’s why our network of local portals will be so important as this industry grows."

About Classified Ventures

Classified Ventures, L.L.C., based in Chicago, is funded by eight leading media companies — Central Newspapers, Inc., Gannett Co., Inc., Knight Ridder, The McClatchy Company, The New York Times Company, The Times Mirror Company, Tribune Company and the Washington Post Company. It provides national and locally branded online services for e-commerce opportunities in the classified advertising marketplace that build upon the capabilities and local expertise of its national affiliate network. Classified Ventures currently operates a national apartments Web site (www.apartments.com), a national car site (www.cars.com), and a national new construction site (www.newhomenetwork.com). It also is developing HomeHunter.com, a resource to provide technologies, tools, information resources, quality assurance and promotional support to the local-market resale real estate Web sites of Classified Ventures affiliates. For more information on Classified Ventures, visit www.classifiedventures.com.

About Auction Universe

Auction Universe is a pioneer in bringing the online auction process to classified advertising and sales. It is comprised of the http://www.auctionuniverse.com website and a network of other specialty focused web sites and major newspapers for buying and selling. It has introduced leading edge technology as well as consumer protection programs, such as Bid$afe, which provides a money back guarantee on all transactions. Auction Universe also provides buyers expert information from many of America’s leading specialty and collectibles publications. It is the only online marketplace where over 6,000 local area and international interest groups buy and sell in a secure and trustworthy environment. It uniquely provides consumers with an information-rich, convenient, fast and entertaining experience.

 

I am suprised that this flew by with little notice-

Do you feel the transfer will benefit users, or will AU remain the same from the users perspective?

What do you feel classified ventures brings to the table, sort of speak?

Mark

 

I too am surprised this development was given as little notice as it was because the implications, IMO, are enormous.

First and foremost is that the online auction component is now an element of the Classified Ventures mission. Stated broadly, Classified Ventures mission is to develop online classified products that rate as "best of breed category killers."

Newspapers are a dominant local media in most markets and the partnership with CV opens the doors to major daily newspapers in 140+ markets. Right now, AU has about 30 media partners including television, newspaper and special interest magazines ... and only a small portion of those represent companies that are already members of CV.

CV also has the funding to make things happen. According to a Newspaper Association of America article by Dominique Paul Noth the commitment of each of the eight partners in Classified Ventures is significant: "Some reports place the companies' commitment at $200 million over five years, the article says.

The real leap -- indeed the vision -- is of locally dominant online auctions where people can place items that, primarily because of shipping issues, are not suitable for sale over an extended geographic area. The effort is to Leverage local market dominance to the national market for classified collectibles that are the mainstay of today's online auctions.

The purchase of AU by CV really does pave the way for the creation of expansive local online auctions in major cities such as New York, Washington, Chicago (and of course we already have LA). All totalled, CV partners have a media presence in more than 35 of the top 50 media markets.

AU was noted to be eBay's worst nightmare in its IPO market synopsis (See it here) and the acquisition of AU by CV does nothing but enhance our marketing position.

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