The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
May 16, 2000
In this week's report. . .
Electronic Bill-Processor Makes Big Barter Bet With Bank of America
Bank of America (B of A) and CheckFree Holding Corp. have entered into a 10-year barter pact that's valued at a minimum of $325 million. Under the agreement CheckFree will take over online bill processing for B of A's internet customers.
In return, B of A will receive a 16% ownership stake in CheckFree with the option to buy more than 10 million more shares if its customers begin paying and receiving their bills online from CheckFree.
Some stock analysts have questioned CheckFree Holding's big barter bet with B of A...trading such a huge stake in return for future customers. But the market liked the trade, as CheckFree's shares rose 37% (up $14.81 to $54.38) after the deal was announced on April 27.
Barter Fuels Planet Extreme Championships
The island of Oahu, Hawaii will be the location for the competition between the top extreme athletes in the world. The Planet Extreme Championships' games are now being aired on the Fox Sports Network, and will continue for 13 weeks.
CEO Ross Love of Corpas Investments, which founded the Planet Extreme Games, enthusiastically talked about the company's self-supportive model. "By taking some cash and some barter from traditional sponsors, and some ad swapping with Lycos to diversify our ad inventory to the net, we take full advantage of our position."
He continued, "We covered all our costs and we still have additional ad inventory (for) our other properties. This is unheard of in the new net economy. Our model creates ad dollars while branding, instead of just mindlessly spending our investors money."
Roots Canada Builds Brand Using Simple Barter Arrangements
The rugged imagery of Canada (elkskin jackets, leather bags, shoes and casual wear) has been captured, packaged, and smartly marketed by two American from Detroit...Michael Budman and Don Green.
And having laid down roots in New York, Aspen, Beverly Hills and other cities, the 160-store chain now plans to add 25 outlets at U.S. resorts including Sun Valley and Vail.
Roots Canada was founded in 1973 and the company, short on cash, learned the value of cultivating and bartering with their celebrity connections to market their product.
The late Gilda Radner used to lend a hand selling shoes in Roots's first store in Toronto. She introduced the partners to Dan Aykroyd and other local comedians, as well as the cast of Saturday Night Live.
Roots's popularity grew after the company outfitted the Canadian team at the 1998 winter Olympics in Japan. Television viewers around the world watched the team parade through the stadium wearing their red-and-white melton and leather jackets with red poorboy caps, emblazoned with the words "Canada" and "Roots."
The garb drew high-profile attention. Actor and comedian Robin Williams wore one of the red Olympic caps to the Academy Awards ceremonies.
In exchange for nothing more than Roots merchandise, the two founders have gotten stars such as Matt Damon, Ben Affleck, and Jason Priestley to wear Roots clothes in marketing campaigns.
Here And There. . .
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