New York-based Alloy, an e-commerce and online marketing company focusing on teens and preteens, announced Monday the acquisition of MPM Holding for $48 million. MPM, a Santa Barbara, Calif.-based media placement and market research company, tries to reach college students, ethnic minorities and military personnel through traditional channels such as newspapers, radio, television and events.
Alloy is one of the most popular Internet retailers among members of "Generation Y"--the children and teens who comprise the largest and most ethnically diverse demographic group in the United States. But Alloy and other online marketers haveto boost sales to children, largely because few young people have credit cards. Alloy Chairman and CEO Matt Diamond estimated MPM, which specializes in offline marketing and promotions, would generate between $22 million and $24 million in revenue in the second half of fiscal 2002.