Another of my new year’s predictions a year ago (Minnov8 Gang episode 62, January 2010) came true today, sort of, when news came out that at least a part of Internet Broadcasting (IB) has been acquired. NY-based Cox Digital Solutions announced it acquired the IB Local Network business and advertising sales group of St. Paul-based Internet Broadcasting, in a deal I learned was effective January 1, 2011. 
For those who may not be familiar with IB (it has not had a high profile locally), it describes its overall business as “building and growing digital business for local media and advertisers.” Its web site says it “partners with media outlets (TV, newspapers, cable and radio) as well as advertisers, ad agencies and media buyers to build site usage and increase revenue.”
For Cox, it’s been a busy time, as it just announced two days ago the merger of Adify (a firm it acquired in 2008) and Cox Cross Media to create Cox Digital Solutions, which it said now has more than 150 employees in 10 U.S. cities, after the IB deal, who “will deliver a unique mix of local and vertical content blended with industry-leading targeting and provide a truly differentiated offering through (the company’s) deep publisher relationships.”
In a phone interview I did today with Jeff Kimball, IB’s chief operating officer (photo from StarTribune), he reiterated that Cox just bought “an arm of our business,” and called the deal “a focusing event for us.” He said that selling ads, with the sales staff now going to Cox, was just one of IB’s technology and revenue solutions. Although that staff previously competed with Cox, it will now help them scale that part of their business. He noted that the sale is not just about Cox gaining people, but that they’re “buying publisher relationships.” The number of IB’s employees going to Cox is just under 50, with about 36 of those in New York City, three in Chicago, one in San Francisco, and “less than 10” here in Minnesota. It remains to be seen if Cox will relocate any of these employees. Cox Digital Solutions said it has begun the integration of the products, customers, and employees it acquired from IB to ensure a smooth transition that will deliver value to customers and partners.
The total number of employers remaining at IB is now 240, Kimball said, 160 of which are located in Minnesota at the company’s headquarters just off Shepard Road near downtown St. Paul.
In Cox’s news release today, it said Internet Broadcasting can now fully focus on providing publishers with its digital publishing platform and services, and quotes IB’s CEO: “We can now concentrate on what has always been our core business – helping our media publisher clients use their content and consumer relationships to build a powerful digital presence by providing them with the most contemporary publishing platform and services available in North America,” said Roger Keating, Interim CEO of Internet Broadcasting and SVP Digital Media for Hearst Television. “At the same time, by placing the IB Local Network with an outstanding organization like Cox, we’re doing right by our former advertising clients and employees.”
“Today is a significant step forward in securing our position in the market,” said Steve Shaw, President of Cox Digital Solutions. “IB Local Network’s publisher relationships and media sales power are a natural fit with Cox Digital Solutions. This combination will enable us to meet a wider set of customer needs through a richer solution set, increase efficiencies, and significantly expand our opportunities for growth.”
For more on Internet Broadcasting, see this StarTribune article of January 2, 2011, which talks about new content management software the company recently announced it was adopting for all its customer sites, from CoreMedia AG of Germany, which has offices in San Francisco. That integration is ongoing, and Minnov8 will be following that story in coming weeks and months.