February 8, 2010 1:28 PM
- Text
Why Haven't Valassis and News America Revealed Their Junk Mail Deal?
(MoneyWatch) It's been more than a week since Valassis (VCI) and News America Marketing Group settled their antitrust lawsuit for $500 million, and one thing is conspicuous by its absence: Details of the 10-year "shared mail" pact the two companies have agreed to cooperate on.
The settlement ended a years long war for control of the supermarket ad and grocery coupon business, which the two companies dominate. In addition to paying Valassis $500 million to go away, NAM also agreed to buy from Valassis shared mail services on "specified terms." Shared mail is industry jargon for those packets of coupons that arrive in your mailbox. That's right -- it's all about junk mail.
Neither company has filed a disclosure with the SEC describing the deal, which companies usually do if they make "material" changes to their business. Valassis has filed this copy of the settlement agreement, but it contains no details.
Investors -- who have been on a wild ride with both companies' stocks -- want to know how big this shared mail deal is. It's the only part of the settlement that remains a mystery.
The settlement ended a years long war for control of the supermarket ad and grocery coupon business, which the two companies dominate. In addition to paying Valassis $500 million to go away, NAM also agreed to buy from Valassis shared mail services on "specified terms." Shared mail is industry jargon for those packets of coupons that arrive in your mailbox. That's right -- it's all about junk mail.Neither company has filed a disclosure with the SEC describing the deal, which companies usually do if they make "material" changes to their business. Valassis has filed this copy of the settlement agreement, but it contains no details.
Investors -- who have been on a wild ride with both companies' stocks -- want to know how big this shared mail deal is. It's the only part of the settlement that remains a mystery.
- Related:
- Hiccups Gone, Valassis and News America Sign $500M Deal
- News America and Valassis Once More in Talks on $500M Deal: Let's Go to the Audiotape!
- Valassis-News America Deal Raises History of FTC Antitrust Issues
- NAM-Valassis Settlement Falls Apart: Just When You Thought It Was Safe to Go Back Into the Supermarket --
- Sara Lee "Rape" Memo Emerges: Client Alleges "Unforgivable" Behavior by News America
- Investors Boost Valassis, Insignia as News America Deal Hammers NWS Stock
- Why FTC Should Examine Valassis and News America's $500M Settlement
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