MyPoints OKs Deal to Buy Cybergold

MyPoints.com Inc., which sells Internet direct marketing and manages online incentives programs, agreed to buy rival Cybergold Inc. for $142 million in stock. MyPoints will pay 0.48 of a share for each Cybergold share. MyPoints and Oakland-based Cybergold give members cash incentives or other rewards for viewing Web sites or responding to selected ads. Cybergold had 1999 sales of $5.3 million and more than 7 million members, while MyPoints has more than 8 million members and had 1999 revenue of $24.1 million. Cybergold is expected to spin off 80% of its payment-technology division, PayTime.com, before the deal is completed. Cybergold shares closed up 19 cents at $5.69, while MyPoints fell $1.44 to close at $13.50, both on Nasdaq.