Softbank Sells Stake in Web Ad Network

Jan 12 1998

Unknown holding company Zulu-Tek startled the online-media industry last week with its majority acquisition of Softbank Interactive Marketing. The buyout of Softbank Holdings' 65% stake in New York-based SIM, one of the top three web advertising networks, happened so fast that even Zulu-Tek's Australian chairman was surprised.

"I came over here on a holiday and didn't realize we were that close to finalizing a deal," says Ronald Meatchem, the new chairman of both Zulu-Tek, Los Angeles, and SIM. "My holiday became sitting in the lawyer's office on New Year's Eve and the day before for about 13 to 14 hours a day." In fact, the newest new-media mogul is barely used to owning a computer, much less a Web advertising network. The 65-year-old started as a mechanic and ended up spending 15 years as managing director of BMW Australia.

"I'm learning how to type," he says proudly. "I had a new laptop given to me by [a colleague] the other day, and I couldn't open the damn thing."

Meatchem joined Zulu-Tek three months ago, after meeting its founder, Pat Hayden, an Australian banker and investor.

What Meatchem lacks in technical know-how, he makes up for in enthusiasm. Noting that his nickname in the Australian automotive industry was "Rambo," he vows to provide "a hand on the rudder to give direction" for SIM but will leave daily operations to CEO Caroline Vanderlip.

SIM was founded in June 1996 as a rep firm and evolved into a network a year later. It represents more than 50 sites, including Netscape, Playboy and ZDNet.

Despite its apparent success, Softbank sought to divest the company to focus on its television business, sources said. Zulu-Tek plans to relaunch SIM early next month with a new name.