[StephenR]

This is the largest acquisition made by Rakuten and it is expected to be completed within four to six weeks.

ICG chairman and CEO Walter Buckley states:

"We are extremely pleased that LinkShare has agreed to be acquired by Rakuten under the proposed terms."

And with good reason. ICG’s share of the cash proceeds is estimated to be $150 million. Approximately ten percent of the proceeds will be escrowed for one year. Upon closing, ICG will record a gain of approximately $100 million, net of income taxes of approximately $19.0 million. The release of any proceeds from escrow in 2006 will result in an additional gain.

An interesting point was made by Haiko De Poel Jr, the owner of the affiliate marketing discussion forum ABestWeb.com, as he states:

"There’s a good mesh and synergy, but I think Rakuten overpaid by a factor of 10. ValueClick purchased Commission Junction for $58 million. There’s no way this could be greater than that.”

Hmm...I feel this acquisition is a step in the right direction for LinkShare since their two major competitors, Performics and Commission Junction, have been busy making strategic partnerships in Europe. Asia offers a vast marketing opportunity for LinkShare to gain a strong foothold in before their rivals.