CKS Group
Encyclopedia
CKS Group was an advertising agency based in Cupertino, California
, catering to technology companies. The initials CKS came from the three name partners, Bill Cleary, Mark Kvamme
, and Tom Suiter. All three had previously worked for Apple Computer
. The company went public in 1995 and merged with USWeb
in 1998.
The origins of the company went back to Cleary Communications, a business venture started by Cleary in 1987. Kvamme bought into the venture in 1989, and the CKS name was adopted in 1991 after Suiter joined the other two.
Due to its origins, the company had a natural expertise with interface design
and other technical matters that distinguished it from traditional advertising agencies. It also had a ready-made client base, with Apple as one of its major customers. CKS bought a video production studio from Apple and at one point contemplated putting together a cable television
channel with Ziff-Davis Publishing
. The studio was to be used to create infomercial
s to fill airtime, while also doing work for Apple, which had a demand for video work but had found the studio too expensive to maintain.
In late 1998, CKS Group merged with USWeb. The merger was a stock transaction involving an exchange of 1.5 shares of USWeb stock for each share of CKS. At the time, USWeb was still losing money while CKS had managed to post a profit in its latest quarter. With an estimated value of the transaction approaching $350 million when the deal was announced, the combined market capitalization of the two companies was around $728 million. The news prompted a fall in USWeb's stock price while CKS stock, which had been trading near 52-week lows, rose initially but then fell again.
Among the benefits touted was joining USWeb's technical and Internet design skills with the traditional advertising and marketing savvy of CKS. The merged company was to be renamed Reinvent Communications, but the new name did not stick and the company was generally known as USWeb/CKS or simply USWeb. With the merger, the company had nearly 2,000 employees and clients including Apple Computer, Levi Strauss and Harley-Davidson. Since both companies had been busy making acquisitions, the deal prompted concerns about integrating these into a single organization and a potential culture clash. There was also a wide age gap between the younger USWeb employees and those of CKS.
USWeb co-founder Joe Firmage
initially was to become CEO of the combined company with Mark Kvamme, CEO of CKS, as chairman. Before the merger was complete, however, Firmage resigned in November to become chief strategist and was replaced by former Oracle executive Robert Shaw. Firmage then left the company entirely in January 1999, after his beliefs that space aliens have influenced modern technology became known. Firmage revealed he was working on a book about how modern technology was reverse-engineered from an alien space ship recovered at Roswell, New Mexico
, in 1947.
In December 1999, after buying boutique management consulting firm Mitchell Madison Group for over $300 million, USWeb merged with Whittman-Hart, another consulting firm based in Chicago. The combined company, a merger of equals, had over 10,000 employees with annual revenues exceeding $1B. This deal involved Whittman-Hart exchanging 0.865 shares of its stock for each share of USWeb, and another new name as marchFIRST
Inc. The new company was headed by Whittman-Hart CEO Robert Bernard. Shaw was announced as chairman, but resigned prior to taking on that role.
With the burst of the dot-com bubble, marchFIRST went into bankruptcy in April 2001 and its assets were liquidated. Some of the units, including USWeb and Whittman-Hart, survived the breakup and re-emerged as separate companies.
Cupertino, California
Cupertino is an affluent suburban city in Santa Clara County, California in the U.S., directly west of San Jose on the western edge of the Santa Clara Valley with portions extending into the foothills of the Santa Cruz Mountains. The population was 58,302 at the time of the 2010 census. Forbes...
, catering to technology companies. The initials CKS came from the three name partners, Bill Cleary, Mark Kvamme
Mark Kvamme
Mark Kvamme is a venture capitalist at Sequoia Capital in Silicon Valley.Mark joined Sequoia Capital in 1999. He currently sits on the board of LinkedIn, Mark Logic, Adbrite, Strongmail, Funny or Die and UJAM. He specializes in media, software and advertising services investments. Before Sequoia,...
, and Tom Suiter. All three had previously worked for Apple Computer
Apple Computer
Apple Inc. is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad...
. The company went public in 1995 and merged with USWeb
USWeb
USWeb is currently an Internet marketing company going by the same name as the original USWeb of the 1990s. The original USWeb was founded as a web design and site engineering company which expanded during the dot-com boom into online strategy consulting and online marketing...
in 1998.
The origins of the company went back to Cleary Communications, a business venture started by Cleary in 1987. Kvamme bought into the venture in 1989, and the CKS name was adopted in 1991 after Suiter joined the other two.
Due to its origins, the company had a natural expertise with interface design
Interface design
Interface design deals with the process of developing a method for two modules in a system to connect and communicate. These modules can apply to hardware, software or the interface between a user and a machine...
and other technical matters that distinguished it from traditional advertising agencies. It also had a ready-made client base, with Apple as one of its major customers. CKS bought a video production studio from Apple and at one point contemplated putting together a cable television
Cable television
Cable television is a system of providing television programs to consumers via radio frequency signals transmitted to televisions through coaxial cables or digital light pulses through fixed optical fibers located on the subscriber's property, much like the over-the-air method used in traditional...
channel with Ziff-Davis Publishing
Ziff Davis
Ziff Davis Inc. is an American publisher and Internet company. It was founded in 1927 in Chicago by William B. Ziff, Sr. and Bernard G. Davis. Throughout most of its history, it was a publisher of hobbyist magazines, often ones devoted to expensive, advertiser-rich hobbies such as cars,...
. The studio was to be used to create infomercial
Infomercial
Infomercials are direct response television commercials which generally include a phone number or website. There are long-form infomercials, which are typically between 15 and 30 minutes in length, and short-form infomercials, which are typically 30 seconds to 120 seconds in length. Infomercials...
s to fill airtime, while also doing work for Apple, which had a demand for video work but had found the studio too expensive to maintain.
In late 1998, CKS Group merged with USWeb. The merger was a stock transaction involving an exchange of 1.5 shares of USWeb stock for each share of CKS. At the time, USWeb was still losing money while CKS had managed to post a profit in its latest quarter. With an estimated value of the transaction approaching $350 million when the deal was announced, the combined market capitalization of the two companies was around $728 million. The news prompted a fall in USWeb's stock price while CKS stock, which had been trading near 52-week lows, rose initially but then fell again.
Among the benefits touted was joining USWeb's technical and Internet design skills with the traditional advertising and marketing savvy of CKS. The merged company was to be renamed Reinvent Communications, but the new name did not stick and the company was generally known as USWeb/CKS or simply USWeb. With the merger, the company had nearly 2,000 employees and clients including Apple Computer, Levi Strauss and Harley-Davidson. Since both companies had been busy making acquisitions, the deal prompted concerns about integrating these into a single organization and a potential culture clash. There was also a wide age gap between the younger USWeb employees and those of CKS.
USWeb co-founder Joe Firmage
Joe Firmage
Joseph Firmage is an American Internet entrepreneur. He founded several business ventures prior to and during the dot-com boom and currently is involved with two closely linked organizations: ManyOne Networks, of which he is CEO, and the Digital Universe Foundation, of which he is a co-founder and...
initially was to become CEO of the combined company with Mark Kvamme, CEO of CKS, as chairman. Before the merger was complete, however, Firmage resigned in November to become chief strategist and was replaced by former Oracle executive Robert Shaw. Firmage then left the company entirely in January 1999, after his beliefs that space aliens have influenced modern technology became known. Firmage revealed he was working on a book about how modern technology was reverse-engineered from an alien space ship recovered at Roswell, New Mexico
Roswell, New Mexico
Roswell is a city in and the county seat of Chaves County in the southeastern quarter of the state of New Mexico, United States. The population was 48,366 at the 2010 census. It is a center for irrigation farming, dairying, ranching, manufacturing, distribution, and petroleum production. It is also...
, in 1947.
In December 1999, after buying boutique management consulting firm Mitchell Madison Group for over $300 million, USWeb merged with Whittman-Hart, another consulting firm based in Chicago. The combined company, a merger of equals, had over 10,000 employees with annual revenues exceeding $1B. This deal involved Whittman-Hart exchanging 0.865 shares of its stock for each share of USWeb, and another new name as marchFIRST
MarchFirst
marchFIRST, Inc. was a short-lived international systems integrator and internet consulting company at the tail end of the dot-com boom. marchFIRST was a Nasdaq traded public company whose peak stock price reached $52...
Inc. The new company was headed by Whittman-Hart CEO Robert Bernard. Shaw was announced as chairman, but resigned prior to taking on that role.
With the burst of the dot-com bubble, marchFIRST went into bankruptcy in April 2001 and its assets were liquidated. Some of the units, including USWeb and Whittman-Hart, survived the breakup and re-emerged as separate companies.