The media unit will be folded into L90 and the company will be renamed MaxWorldwide, said Mitchell Cannold, president-CEO of L90, who will become chief executive of the new company. L90 will move its headquarters from Los Angeles to New York.
Mr. Cannold said most of DoubleClick Media's current employees will work for MaxWorldwide, which he said will become the largest company in online ad sales and representation.
Under the deal,
Shares of L90 closed at 94 cents on Friday, and had dropped 14 cents in midday trading today on the Nasdaq stock market.
L90 is a media company that handles traditional direct marketing and online marketing, while DoubleClick provides ad serving tools for advertisers, direct marketers and Web publishers.
This is the second deal between the two companies. Last October, DoubleClick purchased L90's technology units adMonitor and ProfiTools, as DoubleClick, which started in 1995 as an online ad sales company, has taken steps to emphasize its nonmedia businesses. Its media units had been seeing steady revenue declines, and DoubleClick had been selling off those assets.
L90 was under contract to use DoubleClick's ad-serving technology for five years, and the arrangement will continue with MaxWorldwide.
"Here we have the top two companies in this space uniting, combining strengths," Mr. Cannold said. "When the deal closes, we're instantaneously the No. 1 player with a dream team of senior executives. It's one-stop shopping."