Gannett Company Inc. (GCI) , publisher of one of the largest-selling daily newspapers, USA Today, announced the acquisition of Mobestream Media, creator of the Key Ring Reward Cards mobile application. However, financial terms of the deal were not disclosed.
Key Ring is a market leader in the mobile loyalty space facilitating customers to store loyalty cards, connect to new programs and get mobile coupons on smartphones. Moreover, the app is extremely handy for the companies to enhance their relationship with clients by attracting and retaining customers as well as market their offerings.
The move comes as a part of Gannett’s strategy to revamp itself by increasing digital applications. Also, this step marks its entry into the mobile consumer loyalty space.
Gannett is taking initiatives to diversify its business model by adding new revenue streams in an effort to safeguard itself from adverse economic conditions. The company is adapting to the constantly evolving multi-platform media universe, which currently includes Internet, mobile, tablet and social media networks.
Owing to its expertise in the mobile loyalty space, Key Ring will be a part of Gannett Digital Marketing Services mobile product. Also, due to its ability to build retail relationships, it will cater as a consumer marketing platform.
Earlier, Gannett announced the acquisition of BLiNQ Media LLC, provider of social media marketing solutions for companies. Currently, advertisers are migrating to the Internet, owing to increasing online readership and lower online advertising prices compared to print.
With the ever-increasing demand, the acquisition keeps Gannett well poised in social media marketing, as BLiNQ is the industry leader in managing social media marketing campaigns.
Currently, we maintain our long-term Neutral rating on Gannett. However, Gannett, which competes with News Corporation (NWSA - Analyst Report) and The New York Times Company (NYT - Analyst Report) , holds a Zacks #2 Rank that translates into a short-term Buy recommendation.