CityXpress Corp., the leading provider of online auctions for newspapers, received an equity investment from Knight Ridder Investment Company, a subsidiary of Knight Ridder Inc. The company also announced that Lee Enterprises Inc. had converted its remaining loans and interest to common shares of CityXpress.
Dubois said CityXpress is developing new initiatives to extend the company's market-leading auction platform into business-to-consumer verticals and continuous newspaper auctions. The company also will hire additional personnel to support North American and international growth.
Newspaper auctions are local events presented by newspapers in print and online. Advertisers provide goods and services for an online auction promoted by a printed catalog within the newspaper. Newspapers receive cash from the winning bids and in return, advertisers whose products sell receive advertising credits within the newspaper. Each auction typically takes place over 10 days, generating bargains for bidders, new customers and increased store traffic for advertisers and new advertisers with incremental revenue for newspapers.
Newspaper auctions are being adopted by increasing numbers of newspapers as an effective tool for generating alternative revenue sources. CityXpress staged its first auction in 2001, and has staged more than 200 event auctions for newspapers, generating more than $46 million for newspapers in the last two years.
CityXpress has generated over $46 million in revenue for newspapers over the past two years, according to Greg Schermer, VP interactive media for Lee Enterprises.
http://www.cityxpress.com
