ValueClick sees FTC probe resolved soon
NEW YORK (Reuters) - Online marketing company ValueClick Inc said on Wednesday it was optimistic it would soon settle a Federal Trade Commission investigation into some of its Web sites, possibly in the first quarter.
In May, ValueClick said the FTC was looking into a few of its Web sites that promise consumers free gifts, as well as the way in which it drives traffic to such sites.
News of the probe has weighed on shares of ValueClick, which has otherwise been viewed by investors as a potential takeover target.
"We're optimistic it will be resolved soon," ValueClick Chief Executive Tom Vadnais told an investor conference sponsored by Citigroup, citing a recent FTC settlement with a private company accused of similar practices.
He said the issued would be resolved "hopefully in the first quarter."
Vadnais said he understood the FTC was interested in setting guidelines for practices that helped generate sales leads on the Web, rather than prohibit them.
"If we accept what we've heard here, that they're simply trying to put guidelines in place in this space on the Internet ... the long-term impact is probably very little in terms of driving that business up or down," he said. "All it will do is create a level playing field."
At the same time, he expects the lead generation segment to grow with the online advertising industry in the future.
ValueClick shares fell 6.2 percent to $18.26 on the Nasdaq.
(Reporting by Michele Gershberg; Editing by Steve Orlofsky)
