Largest online retailer in Romania eMag.ro takes over affiliated marketing company, prepares reorganization of internal profitshare accounts

Online retailer eMag's affiliated marketing platform Profitshare was recently taken over by the company Conversion Marketing, which already integrated other online retailers in the system, such as PCfun, ElectroFun, Flanco, La Redoute and Noon Copenhagen. The deal is however more of an internal reorganization, because eMag already owns the majority of the shares in Conversion Marketing. eMag.ro recently announced that at the end of June the eMag Profitshare service will end its activity and transfer the accounts of user to the new owner, which will run it under the name Profitshare 2.0. Conversion Marketing was created by Romanian Marius Pahomi, and eMag externalized the media buying and all special digital projects to this agency in 2012. Earlier in 2013, eMag decided to buy 90 percent in Conversion marketing, and the founder Pahomi kept the rest of the shares. eMag.ro's Profitshare was an internal affiliated marketing program. The recent move and the acquisition of Conversion Marketing is yet another step in the diversification of its business for Romania's largest online retailer. Emag.ro is controlled by South Africa based internet giant Naspers, which took over the controlling stake in October 2012, for a reported USD 80 million. The online retailer, launched 12 years ago, posted a turnover of EUR 145 million in 2011, making it the largest online retailer in Romania. It sells IT&C products, books, insurance, toys and even cosmetics, among others. editor@romania-insider.com