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CDK Exits Digital Marketing Business!

reverson

Jr. Refresher
Mar 21, 2012
288
317
93
First Name
Ryan
WOW! What are everyone's thoughts on this?

CDK Global Announces Plan to Divest Digital Marketing Business

HOFFMAN ESTATES, Ill., June 27, 2019 (GLOBE NEWSWIRE) -- CDK Global, Inc. (Nasdaq:CDK) (the “Company”) today announced a plan to divest its Digital Marketing Business, comprising all of the assets of its Advertising North America business segment and certain assets of its Retail Solutions North America segment related to mobile advertising solutions and website services.

“Following a comprehensive strategic review we have made the decision to divest the Digital Marketing Business,” said Brian Krzanich, president and chief executive officer. “Exiting the Digital Marketing Business allows the management team to focus on the building momentum in the core auto software business and to accelerate growth in fiscal 2020. We believe the Digital Marketing Business is an attractive asset for someone who is better positioned to leverage the technology platform and management team that we have built. During this transition period we remain committed to our CDK Digital Marketing customers, and will continue to support our comprehensive suite of Digital Marketing technologies and services.”

This decision was reached after a thorough evaluation of the CDK portfolio, and aligns with the Company’s strategy to focus on the core suite of SaaS software and technology solutions for the markets it serves through the Retail Solutions North America and CDK International segments. Beginning with the fourth quarter, the Digital Marketing Business will be presented as discontinued operations. The Company has engaged Allen & Company to identify potential buyers and evaluate proposals for the Digital Marketing Business.

Further details regarding this decision can be found in a Current Report on Form 8-K filed with the Securities and Exchange Commission on June 27, 2019. The fiscal fourth quarter and fiscal year ending June 30, 2019 earnings call will be held in early August, and will include updates regarding these matters, as well as guidance for fiscal 2020 and an update to the capital allocation strategy.

http://investors.cdkglobal.com/news-releases/news-release-details/cdk-global-announces-plan-divest-digital-marketing-business
 
Reactions: Alex Snyder

reverson

Jr. Refresher
Mar 21, 2012
288
317
93
First Name
Ryan
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john.quinn

Sr. Refresher
Dec 2, 2009
988
602
93
First Name
John
What does CDK see coming?

1. DMS innovation pressure. Is SOMEONE finally going to innovate in the area of multi-company accounting? (I mean, it’s only been 40ish years...)

2. The next SAAR drop. First thing dealers cut is advertising. Is the downturn imminent?

3. Learned the hard way that it’s less expensive to build from the ground up than buy-and-sew ‘em together? Cut-n-Run?
 

Eley Duke

Sr. Refresher
Nov 30, 2009
471
252
93
First Name
Eley
Thank goodness, they suck at digital! Probably see the writing on the wall that GM is opening up to 3 more digital web providers and they are going to sink with their arrogance when people flee! I guess whoever at CDK had the pictures of someone at GM with a goat left, got fired, or died.

Now we will have better choices for GM dealers - hopefully!
 
Reactions: Brittany

reverson

Jr. Refresher
Mar 21, 2012
288
317
93
First Name
Ryan
Message from GM regarding the news:

Some of you may have already read that CDK will be selling its Digital Marketing Business which includes dealer websites. We do not expect a change in the support of our current dealer website solution. With regard to Dealer Choice, we are still in contract discussions with 4 vendors including CDK and we are not anticipating this will have any impact on those contract discussions nor which vendors are in the program. This may influence a dealer’s decision when we launch dealer choice but it is not clear which direction. We are confident that the eventual buyer will remain committed to the digital marketing business and maintain, if not exceed, the support and service they receive from CDK.
 

Alexander Lau

Sr. Refresher
Feb 11, 2015
2,189
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Alex



 

Rick Buffkin

Sausage King of Chicago
Oct 29, 2009
603
598
93
First Name
Rick
Hummmm..... This just came across my LinkedIn news feed. This is prob a good example and reason why CDK is getting out of the Digital Marketing biz. Can someone please send / forward the CDK letter to CDK's marketing department and update them about CDK's website platform and it being discontinued / sold. Also, if any of you purchased airline or hotel tickets to attend one of these CDK website workshops, If I was you, I might would request a refund. Jus' sayin'...
https://www2.cdkglobal.com/gm-workshop-register

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Carluminati

Getting Refreshed
Feb 17, 2015
83
34
18
First Name
Chris
I know a dealer who signed up for a CDK site on an 18 month plan, but said they would send them a check for $9,800 (something like that) to cover the last 6 months so it was like paying for 12. CDK sent them 3 checks each for $9,800 .
 
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