Sa Sa Sa Sergio.....care to comment from one MTNTer to another???? George a.
Motient buying Rare Medium
--8:41pm - By Nicole Maestri
Motient Corp. (MTNT) said late Monday that it will buy Internet services company Rare Medium
Group (RRRR) , saying the deal will create a company that owns the largest wireless data
network in the United States. Under terms of the deal, each share of Rare Medium will be
exchanged for one-tenth of a share of a new class of convertible Motient preferred stock. Those
preferred shares will convert to common stock if it trades at $3.125 or higher for a 10-day
period. Holders of Rare Medium preferred stock will get 9 million Motient XM Satellite Radio
(XMSR) shares plus $13 million in cash. A $25 million loan Rare Medium made to Motion will
be absorbed by the combined company. The deal is still subject to shareholder approval. The
combined company is expected to have revenue of $100 million and a total of roughly 1,000
employees. "As a result of the transaction, the company expects to be funded well into the first
half of 2002, and expects to reach EBITA breakeven around the same time frame," said Walter
V. Purnell, Motient President and CEO, in a statement. Shares of Rare Medium closed down 10
cents, or 5.5 percent, at $1.72. Motient shares ended Nasdaq trading off 15 cents, or 9.2
percent, at $1.42. |
