Internet over cable provider @Home Networks Inc has signed to acquire Narrative Communications Corp, the acknowledged leader in internet advertising creation technology in a stock swap worth up to $103m at Thursday’s closing price. @Home plans to issue between 1.34 million and 1.55 million shares for the purpose and anticipates the deal closing as soon as the end of this month, or the beginning of January. @Home plans to keep the company intact and it will trade as the Enliven business unit of @Home. Enliven is the name of Narrative’s core product; a set of software and services that enable companies to create, deliver and measure banner adverts on the web. In a recent IBM presentation, at which Big Blue showed its own new web advertising technology Hot Media, which Narrative also supports, IBM acknowledged Narrative to be the leader in its field, which is testimony enough. @Home is already one of Narrative’s customers using Enliven to deliver ads on its broadband network, as are more than 50 advertising agencies. However, despite its market leadership and the fact that it was founded in 1995, the privately-held Waltham, Massachusetts-based company has not found business too lucrative. In 1997 Narrative turned in net losses of $5.7m, on revenues of just $250,000 and it anticipates a similar loss this year on revenues of about $750,000. Banner ads are normally created with authoring tools such as Macromedia Director and then Narrative hosts and distributes the ad. It produces reports on a secure web site for the advertiser to track its effectiveness. @Home is controlled by a consortium of the major US cable providers, including Tele-Communications Inc, Comcast Corp and Cox Communications Inc. Separately, @home announced on Friday that it intends to raise approximately $200m through an offering of convertible subordinated debentures. @Home’s shares closed up $0.625 at $67.125.
