Emmis Buys Controlling Stake in Pricing Company
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Emmis Communications Corp. (Nasdaq: EMMS) has purchased a controlling interest in a dynamic pricing company. Emmis says the deal for Digonex Technologies Inc. will allow the communications company to increase revenue by finding the optimal price for its advertising inventory.
June 16, 2014
News Release
Indianapolis, Ind. — Emmis Communications Corporation (Nasdaq: EMMS) today announced it has purchased a controlling interest in Digonex, a dynamic pricing company with clients including major sports teams, retailers, cultural institutions, and entertainment companies.
“We are certain that dynamic pricing is the future of all inventory management,” said Emmis Chairman and CEO Jeff Smulyan. “As a company that sells hundreds of millions of dollars in advertising units, we believe that this acquisition will help us find the optimal price for our entire inventory and increase revenue opportunities. We also believe that our operational skills, including our expertise in sales, marketing and finance, will help the Digonex team become a leader in this space.”
More businesses are viewing dynamic pricing as a competitive, intelligent, and strategic opportunity to transform their business in a challenged economy. Digonex's automated pricing solutions make use of dozens of parameters to continuously identify the 'sweet spot' where prices follow perceived market value and generate maximum economic return for clients while providing fair prices for consumers.
Jan Eglen, Ph.D., one of the founders of Digonex, will play an active role in the company going forward. “We believe we have the best answer in the dynamic pricing market, and are thrilled to partner with Emmis to leverage their resources and scale our solution to a broader audience. I'm looking forward to working with Jeff, Greg and the Emmis team.”
Greg Loewen, Emmis' Chief Strategy Officer/President of Emmis Publishing, will add the title of President and CEO of Digonex. “I'm excited to have the opportunity to work with Jan and the rest of the team at Digonex on the next phase of the company's growth and evolution,” Loewen said. “We believe that Digonex's game-changing technology can help companies across numerous industries achieve superior growth and profitability and that the dynamic pricing space represents a significant growth opportunity for Emmis.”
Digonex services a wide variety of businesses ensuring they get the most revenue from their products or services. Named clients include the Anaheim Ducks, Lids Sports Group, and the University of Washington. The Indianapolis Zoo specifically selected Digonex because the company's technology will allow the Zoo to manage its daily attendance in ways that maximize positive guest experience.
Under the terms of the agreement, Emmis has made an initial investment in Digonex, with an additional investment coming soon to fund expansion of Digonex's business contemplated later in the year. Digonex most recently worked with Emmis on the pricing for HOT 97's popular Summer Jam concert.
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About Emmis Communications
Emmis Communications Corporation is a diversified media company, principally focused on radio broadcasting. Emmis operates the 9th largest radio portfolio in the United States based on total listeners. Emmis owns 19 FM and 4 AM radio stations in New York, Los Angeles, St. Louis, Austin (Emmis has a 50.1% controlling interest in Emmis' radio stations located there), Indianapolis and Terre Haute, IN.
SOURCE Emmis Communications Corporation