Valassis Ends Investment in Save.com, To Redeploy Resources
Press release from the issuing company
LIVONIA, Mich., Aug. 29 Valassis announced that it will not continue to fund its internet couponing investment, Save.com. Since the venture has been unable to secure additional outside financing sufficient to carry it to profitability, Save.com will close operations immediately. Valassis cited the reason for discontinuing its backing was due to Save.com's inability to garner a critical mass of advertisers interested in an internet couponing vehicle.
Alan F. Schultz, Valassis Chairman, President and CEO, said, "The current advertising industry recession, combined with the decline of so many internet investments, has caused a general skepticism about internet advertising. This made it difficult for us to see a clear path to profitability for Save.com, and we concluded that the only current certainty in this space is that Save.com would continue to lose money. We believe that shareholder resources can be better invested in areas where the model is more proven, and where marketing dollars are currently being allocated.''
Valassis will take a charge in the third quarter ending September 30, for the closedown of Save.com and the redeployment of some of its personnel. Valassis continues its long-term interest in internet couponing with a small passive investment in Coupons.com.
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