January 20, 2011 18:55 ET

Cyberplex Updates Its Strategic Focus for 2011

TORONTO, ONTARIO--(Marketwire - Jan. 20, 2011) - Cyberplex Inc. (TSX:CX) a leader in online publishing and customer acquisition strategies today provided a further update on the strategic initiatives in place for 2011 and the current status of the Yahoo!-Bing search platform integration.

Yahoo! Update

On January 10, 2011, the Company provided an update on its estimated financial performance for the second half of 2010, in which the impact of the Yahoo!–Bing integration was discussed. The Company reported today that discussions with Yahoo! remain ongoing, and that Yahoo! has been extremely receptive to working closely with the Company to minimize as much as possible the impacts of the changing Yahoo! marketplace. 

"Following recent meetings with Yahoo!, we are very encouraged that our partnership with Yahoo! remains strong," said Geoffrey Rotstein, CEO. "As we continue to adapt to this new marketplace, we have a partner who is both willing and able to work with us to get us back on track to execute on our strategy and deliver great results for Yahoo!'s advertiser base."

As a result of the issues raised by the integration and the changes to the marketplace, the Company will focus its efforts in 2011 on enhancing its traffic acquisition strategies, with less concentration on creating new websites. As a result, additional cost savings measures will be implemented to better align the Company's cost structure with its strategic focus. The Company believes that the current portfolio of over 300 websites is sufficient for the 2011 initiatives and as such, implemented a reduction in the publishing group and supporting functions of Tsavo Media representing approximately 25 percent of the Company's workforce.

"While we believe that the majority of the issues presented by the Yahoo-Bing integration are either temporary or capable of being addressed by changes to our systems, it is clear that it will take time for Tsavo to regain traction before approaching historical levels of performance," said Ted Hastings, President. "As a result, we realigned our cost structure to address this transition and our strategic focus for the coming quarters." 

The Company has also been in touch with Tsavo's lender, American Capital, to discuss the current debt facility and to review its proposed strategic plan for 2011. In order to facilitate these discussions which may entail potential debt restructuring scenarios, Miles Arnone, nominee of American Capital to the Cyberplex Board, has resigned from his position as director. American Capital has reserved its rights to once again nominate a director to the Board of Cyberplex upon finalization of these discussions. 

Cyberplex also announced the acquisition of EQ Advertising Limited, a provider of media buying technologies and services based in Toronto, Canada. EQ Ads developed a sophisticated Demand Side Platform (DSP) with real-time bidding capabilities to expertly manage display media targeting and buying activities across multiple advertising exchanges such as those offered by Google, Yahoo!, and Microsoft. Through this acquisition, Cyberplex will extend its distribution capabilities, which today focuses primarily on its owned and operated websites, search engine marketing platform and third party publisher network.

"The opportunity presented by display media as a traffic source remains massive, with billions of display impressions being served each day. The ability to identify and bid on the most valuable impressions to our advertisers according to criteria that we define, in real-time, is a powerful proposition," said David Katz, EVP Corporate Development. "We expect this acquisition will benefit every division of Cyberplex." 

About Cyberplex

Cyberplex Inc. ( is a North American leader in online publishing and customer acquisition strategies. The Company, through its subsidiaries, leverages over 300 proprietary web properties and its vast publisher network to efficiently connect advertisers to their most relevant online customers and prospects. By combining high quality publishing initiatives with efficient technology solutions and online marketing expertise, the Company is able to deliver the optimal targeted audience to online advertisers. Cyberplex delivers measurable results that improve advertiser ROI, monetize the value of online properties, and build targeted, loyal online audiences.

Forward-Looking Statements

This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Cyberplex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

Contact Information