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Update > Aegis Media never acquired stake in Communicate 2

More than a year and half after announcing that Aegis Media had ‘acquired’ a strategic stake in Mumbai-based search marketing and contextual advertising firm Communicate 2, Vivek Bhargava, founder and CEO, Communicate 2, has now informed that the deal was never closed due to the circumstances arising out of the global economic downturn.

More than a year and half after announcing that Aegis Media had ‘acquired’ a strategic stake in Mumbai-based search marketing and contextual advertising firm Communicate 2, Vivek Bhargava, founder and CEO, Communicate 2, has now informed that the deal was never closed due to the circumstances arising out of the global economic downturn.

“Early last year (2008) we were experiencing rapid growth and needed capital to continue our growth. Aegis Media relationship would have given us this capital. As the latter half of last year (2008) was tough on most companies, most global media companies had to focus their energies on their home markets and hence the closure of the deal got delayed,” Vivek Bhargava has told AlooTechie.

“Not wanting to miss the opportunity, Communicate 2 raised capital from a consortium of investors and is continuing its growth,” Vivek Bhargava has added. According to Bhargava, the company is currently working with a few media groups through a non-equity based partnerships, which may culminate into an equity relation, “however we don’t have a time frame attached to the same”.

In early July 2009, Patrick Stahle, chairman and CEO, Aegis Media, had said that “the deal is still being discussed and has not fallen through.” Stahle had declined to elaborate. However, Vivek Bhargava had then explained that the deal hadn’t gone through because of a change in the strategies of the two firms — brought about by the economic downturn. [Source: LiveMint, via exchange4media]

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