GlobalMedia to buy Assignable Contracts for 212 Radio Stations From OnRadio for $9 Million
-Deal Shakes up Radio Internet Streaming Industry as GlobalMedia Emerges as an Industry Leader-
VANCOUVER, June 8 /CNW-PRN/ - GlobalMedia.com (NASDAQ: GLMC - news), a provider of revenue generating streaming media and e-commerce solutions, today announced it has signed a Definitive Agreement with OnRadio.com to purchase contractual relationships with 212 radio stations. This acquisition marks a significant increase in GlobalMedia's penetration of the market for providing Internet solutions to terrestrial radio broadcasters.
With the completion of the transaction, GlobalMedia will provide Internet solutions to more than 260 terrestrial radio stations with an aggregate Cume (audience) in excess of 50 million persons, making GlobalMedia one of the largest providers of Internet streaming, hosting, e-commerce, content and other solutions to the radio broadcast market.
Under the terms of the transaction, GlobalMedia will pay $500,000 in cash and issue up to 1,697,619 shares to acquire all of OnRadio's assignable contracts for Internet services with terrestrial radio stations. The transaction will be consummated in a series of closings, with the final closing to occur no later than 120 days after the initial closing.
``This is a milestone event for GlobalMedia,'' said Jeff Mandelbaum, president and CEO of GlobalMedia. ``This transaction establishes GlobalMedia as an emerging leader in the Internet radio streaming market and represents a significant first step in our strategy to be an industry consolidator. We look forward to working closely with OnRadio to transition the acquired client base to GlobalMedia solutions as quickly and efficiently as possible.''
Commented Rick Ramirez, founder and CEO of OnRadio, ``Like the Internet itself, which is ever-evolving, OnRadio is showing that new economy companies must reshape business directives based on the demand of technology and the most beneficial options for their customers. Our decision to transfer our assignable web-hosting, content provision and streaming contracts to GlobalMedia will allow us to refocus our business on providing strategic services and branding tools. We are confident that GlobalMedia will quickly establish excellent credentials with the assigned radio station affiliates.''
About OnRadio.com
OnRadio built the Internet's first major affiliate network of radio station Web sites in 1997 which grew to include many of the country's most popular music stations. Their new business model will transform their multi-media creative and technology assets into a professional services company, developed with such partners as Microsoft, Enron and I-Beam. With the sale of its network affiliate rights to GlobalMedia, OnRadio will focus on enabling high-traffic Web sites to increase customer loyalty and retention through proprietary tools and strategies for customer profiling, segmentation and targeted branding. In the next few weeks, OnRadio will unveil its full line of business-to-business products and services, including an online music player designed to provide powerful insights into user lifestyles and behavioral patterns. OnRadio employs approximately 60 people; most based at the company's Scotts Valley, California, headquarters.
About GlobalMedia.com
Winner of the prestigious Linux Journal award for the ``Best Overall Linux Solution'' at Comdex Fall '99, GlobalMedia provides Internet e-commerce and streaming tools to companies that are looking to leverage their existing brand names and customer base to the Internet. GlobalMedia focuses on providing businesses with a totally integrated, private branded solution: interactive stimulating audio and video, banner and rich media advertising, and e-commerce. With offices in Vancouver BC, Seattle and New York, GlobalMedia employs over 110 people.
GlobalMedia trades on the Nasdaq National Market tier of the Nasdaq Stock Market, under the symbol GLMC. The Company has established important relationships with RealNetworks (Nasdaq: RNWK - news), Liquid Audio (Nasdaq: LQID - news), L90 (Nasdaq: LNTY - news), MCI/Worldcom (Nasdaq: WCOM - news) and Muze.
This press release may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and section 21E of the Exchange Act of 1934 and is subject to safe harbor created by these sections. Actual results may differ materially due to a number of risks, including technological and operational challenges, changes in consumer preferences, developments affecting the Internet, difficulties in transitioning acquired customers to GlobalMedia's solutions and other integration problems, demands on management and personnel in integrating acquired customers that may divert attention from other operation needs, and uncertainty as to the financial benefits of the acquisition to GlobalMedia.
SOURCE: GlobalMedia.com |
