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AOL Sells Research Unit DMS Insights To uSamp

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AOL (NYSE: AOL) finally has unloaded Bebo—and the company is not done cleaning its house of properties that don’t fit. This latest: today’s sale of one of its oldest and least-known holdings, DMS Insights, to United Sample, the operator of online market researcher uSamp. The deal is estimated to be around $3- or $4 million.

Dallas-based DMS began working with AOL back in 1996 and was acquired soon after. It was used as a lead-gen tool and used to offer incentives to web surfers to participate in online surveys on behalf of marketers. For much of the past decade, however, the relationship between AOL and DMS has been fairly non-existent. DMS doesn’t even list itself as an AOL division on its website and several AOL staffers I spoke to say they never even heard of the company.

SEE ALSO: AOL Will Keep Bebo’s SF Office, Staff Get Severance Package

It wasn’t clear how long DMS has been on the market. Last year, as part of CEO Tim Armstrong’s plan to streamline the company’s operations in advance of the spin-off from Time Warner (NYSE: TWX), the company created AOL Ventures to house companies that didn’t necessarily fit into the new regime. AOL Ventures’ primary mission is to either reform companies into something that might work within the new AOL structure or if a solution can’t be devised, to find a buyer to take the property off AOL’s hands.

United Sample’s acquisition of DMS comes two days after it announced (pdf) that it had completed a $10 million third round funding. The Encino, CA-based market researcher said it planned to do some acquisitions as part of a wider effort to expand the company’s offerings and presence. The round was led by OpenView Venture Partners. Release

From Armstrong’s memo explaining the sale to staff:

As you know, we’ve been single minded in our focus on making sure that each part of our portfolio aligns to our strategy. This relentless focus has enabled us to make necessary decisions about the business we are in and move away from businesses that, for a variety of reasons, are no longer core to where AOL is headed.

In April we announced the sale of ICQ and just last week we completed the sale of Bebo. Earlier this year we sold our affiliate marketing operation, buy.at. And today, we’re announcing the sale of Digital Marketing Services, Inc. – or DMS - our online sample and specialized research provider based in Dallas, to uSamp.

DMS formally became part of the AOL family in 1999 and has been successful in the online sample space. While data and research certainly play an important role in the work we are doing today and in our efforts to provide the best experiences to our consumers and advertisers going forward, creating and administering online sampling isn’t an area AOL needs to own to succeed

As we stay true to executing our strategy, it only made sense that we look to combine DMS with another group in the research industry – a move that will benefit DMS and allow the company and its employees to thrive and grow.

Jun 24, 2010 9:30 AM ET

AOL


Posted In: Advertising, Marketing, Money, M&A & Venture Capital, Mergers & Acquisitions, Research & Metrics, Research, dms insights, united sample

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