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AutoTrader.com SELLS CDMdata Dealer Services to...

Jeff Kershner

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May 1, 2005
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I can't imagine anyone that's been part of the community here or has been in the industry for a length of time doesn't know who CDMdata is. Most have either experienced or heard of the horror stories around CDM Data prior to being bought by Kelly Blue Book way back when.

When AutoTrader.com acquired Kelly Blue Book last year, the acquisition included CDMdata and CDM Dealer Services. And allow me to clarify - AutoTrader actually sold "CDM Dealer Services". I used the term CDMdata since that's what most of us know them by. You might not even be aware that the company was broken out into 2 entities. The technology side and the dealer services side (window stickers, photos, etc.).The tech of side of CDM merged with HomeNet.

Last I heard, CDM Dealer Services was servicing around 580 dealers. In one fell swoop, these 580 dealers are now being serviced by another company. At this point I'm not sure who bought the Dealer Services side.

If you're a dealership using CDM Dealer Services - were you aware that AutoTrader.com sold it to some smaller outfit on the west coast called Xcite Advertising?

If you're using CDM - chime in and let us know what you think about this!
 
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i could see homenet and vauto coming together, but, each is so highly specialized (read: focused) if they merged, the risk of losing focus would trump all other gains.

Joe,

You have run several biz, you know that at one point the support, r&d, etc has to merge and that the loses from that merge are a lot less than the money saved from getting rid of an entire team of people.