Media company acquires stake in Hyperfactory

Media Release

Wednesday 22 July 2009

Leading media company acquires strategic stake in New Zealand’s
The Hyperfactory

New Zealand headquartered international mobile marketing company, The Hyperfactory, has entered into a strategic alliance with US media company, Meredith Corporation.

Meredith has today acquired a 19.9 percent shareholding in The Hyperfactory for an undisclosed sum.

Meredith Corporation (NYSE: MDP), a 107 year old New York Stock Exchange listed company, reaches over 85 million Americans each month through its roster of well-known media brands including Better Homes and Gardens and Family Circle. One of America’s leading media and marketing companies, Meredith's fiscal 2008 annual revenues were $US1.6 billion.

Privately owned and founded in 2001 by New Zealand brothers Geoffrey and Derek Handley, The Hyperfactory has rapidly become a major global success story, establishing itself as the world’s expert in mobile marketing.

The company specialises in powering businesses and brands through the mobile medium with award winning, innovative and strategically creative initiatives. Its campaigns have won more mobile marketing awards than any agency worldwide.

“Entering into an alliance with Meredith, a leading media company with vast expertise, experience and resources, will accelerate our global growth at a pivotal stage for the mobile marketing industry,” says Derek Handley. “Being part of such a consortium of leading edge thinkers will stimulate our own creative ideas, design and implementation capabilities, and also create opportunities for us to compete for a whole new tier of clients.”

In addition to its traditional print marketing and advertising business, Meredith has made a number of strategic investments in recent years to broaden its audiences, enhance its online and video content creation expertise, expand its distribution platforms, and increase its sales and marketing capabilities.

“Joining forces with The Hyperfactory provides Meredith’s Integrated Marketing unit with access to the fast-growing mobile category and complements our recent acquisitions in the digital marketing space,” says Jack Griffin, President of the Meredith Publishing Group. “The Hyperfactory’s capabilities fall directly in line with our strategic goals and present significant opportunities for our business-to-business engagements.”

Derek Handley will remain the Chief Executive Officer of The Hyperfactory, with dual headquarters in New York and Auckland.

“Meredith’s stake in The Hyperfactory is an endorsement of our vision and ability to deliver on it,” continues Mr. Handley.  “With Meredith as a strategic shareholder and full business partner we can together leverage the power of mobile across our combined extensive client networks.”

A recent study by Magna Insights shows that within five years the majority of world-wide web users will access the internet using mobile. There are 250 million mobile phones in the US alone with 60 million Americans actively browsing.  Nielson Mobile and eMarketer estimate the US mobile advertising market will grow from $805 million in 2007 to $3.6 billion in 2010.

“Media companies can no longer afford to simply use mobile as a passive channel of communication. They need to actively develop business and brand strategies that include mobile if they are to maintain future connectivity with their customers,” says Mr. Handley.

Says John Zieser, Meredith’s Chief Development Officer, “This strategic move further expands Meredith’s global footprint as well as our ability to serve our clients on this rapidly growing platform. We are continuously seeking out new opportunities to align with market leaders throughout the world.”

ENDS

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