WARSAW (Thomson Financial) - Agora will take a 'very long time' to recoup its $55 million investment in classified ads business trader.com, the Polish media group's deputy chief executive said on Thursday.
Analysts say Agora heavily overpaid for the acquisition, announced late on Wednesday, and its shares dived more than 6 percent in reaction in morning trade.
'We have paid a hefty premium and we are aware of that,' Deputy Chief Executive Zbigniew Bak told a conference call on Agora's first-quarter results.
'For sure this investment will only bring a return over a very long time, but the loss of an insignificant part of our revenues in aid of boosting our position among our competitors is worth it.' pawel.sobczak@thomsonreuters.com *48 22 447 2430 pjg/kf1 COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.