News

Mi9 latest to exit group buying, selling Cudo to owner of deals.com.au

CudoNine Entertainment Co’s joint business with Microsoft Mi9 has sold its group buying website Cudo to online business AussieCommerce.

The deal will see Cudo merge with AussieCommerce’s other group buying website deals.com.au.

The sale of Cudo by Mi9 follows the decision of rival Yahoo!7 in February to withdraw from the group buying market, instead becoming a list broker. That came little more than two years after Yahoo!7 bought Spreets at the top of the group buying bubble for a price of $40m.

Mi9 is refusing to say how much AussieCommerce paid for Cudo, which was launched in 2010 by Mi9’s ninemsn and heavily marketed on the Nine network.

However, the group buying model – which tapped into the idea that a large number of people coming together could get a better deal than individuals – was quickly eroded as competitive sites chased the same few deals and the reputation of the industry suffered from consumers being treated badly.

Late last year former Cudo CEO Billy Tucker described how the group buying market has got itself “in a pickle” and told the Australian Financial Review his timing was “impeccable” for leaving when he did at the end of 2011.

Cudo’s CEO, Mike Sneesby said with ongoing consolidation in the industry this was the right move for Cudo. “This is the perfect fit for Cudo and for all consumers who love buying online. In an industry that continues to consolidate, it makes sense for AussieCommerce to take the Cudo business forward. I’m also pleased to announce that Cudo and AussieCommerce will maintain a long-term association with Mi9 through an ongoing marketing partnership,” said Sneesby.

“Combining Cudo with the DEALS.com.au and Ouffer platforms means that we can give our merchants access to a much larger audience, while bringing consumers more amazing offers and greater value for money,” said Adam Schwab, managing director of the Aussie Commerce group, in the announcement.

Nic Christensen 

ADVERTISEMENT

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing