The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
May 22, 2001
Delta "Back To Barter" In Another Warrant Deal
They scored big once, and they're looking to do it again! That succinctly is the story on Delta Air Lines' recent agreement to post more fares and routes through Cheap Tickets in exchange for an equity warrant in the seller of discounted travel.
first scored in a similar arrangement with Priceline.com--at
one time holding warrants that had a greater value than
Delta Air Lines! Subsequently, Delta earned over $500
million when it sold the stock about a year ago.)
"We're both in a capital-strained industry. It's very useful to barter like this."
Holland, VP Marketing
NUI Corp. which owns telecommunications and utility companies, said its NUI Telecom unit and Broadview Networks Holdings have agreed to share phone lines and marketing departments so each can gain revenue through a barter arrangement.
NUI Telecom will offer high-speed internet access through Broadview Networks' digital subscriber line, or DSL, service. Broadview, a New York-based company offering local phone service in the northeast, will use NUI Telecom's marketing department to attract new customers.
Revenue from the agreement could net NUI Telecom as much as $25 million and Broadview could gain $17 million, the companies said in a statement. The companies are non-competitive, with closely held Broadview selling local phone service and NUI concentrating on heavy long-distance users.
Drug Companies Continually "Barter" For Doctors' Attention
The ubiquitous ads on TV, which advertise everything under the sun from the drug companies to consumers, amount to $2.5 billion a year. Far more staggering, however, is the $4.04 billion the industry barters to get the attention of the physicians!
Yes, wooing doctors--by providing them everything from gourmet meals, to Christmas trees, Valentine's Day flowers, books, CDs, manicures, pedicures, car washes, bottles of wine, free gasoline, and various trips --is a proven way to get their attention, so as to inform them about a particular new drug.
The AMA (American Medical Association) says such items are of minimal value and permissible, as long as they are related to the physician's work and primarily entail a benefit to patients.
Here And There. . .
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