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Hearst, publisher of titles like Cosmopolitan and Esquire, is folding digital ad agency iCrossing into its magazine division.
Hearst bought iCrossing in 2010 for $325 million as print advertising was dropping and publishers were looking for new revenue streams, but the two organizations clashed with each other.
A spokeswoman confirmed that iCrossing would become part of a new Solutions and Services group reporting to chief business officer Kristen O Hara.
Hearst is quietly folding digital marketing agency iCrossing into the rest of its magazine operation.
The agency will become part of a new Hearst Solutions and Services group, a team of iCrossing, production studio HearstMade, and magazine staffers that work on behalf of ad clients like Toyota, L Oréal, and Bayer. ICrossing will retain its name for now.