2 Comments

Summary:

Online ad rep Burst Media has bought entertainment ad network Giant Realm. Terms of the deal weren’t disclosed. The company later said that…

Burst Media Logo narrow

Online ad rep Burst Media has bought entertainment ad network Giant Realm. Terms of the deal weren’t disclosed. The company later said that the acquisition was for $2.1 million in stock and cash. The deal comes as the online ad sector still looks fairly weak heading into the holiday season; entertainment has been one of the few categories that are still attracting a healthy amount of ad dollars. Comcast (NSDQ: CMCSA) was one of New York-based Giant Realm’s investors through its Comcast Interactive Capital investment arm. The company has raised a total of $9 million to date. As for Burlington, Mass.-based Burst, this is one of the first major acquisitions the company has made since opening its doors about 14 years ago. Burst itself was actually the target of an acquisition this past summer, when Canada’s Cyberplex offered to buy the company for $16.5 million. Burst’s board rejected that offer, calling it “opportunistic,” according to a Reuters item at the time. Release

You’re subscribed! If you like, you can update your settings

  1. "Terms of the Deal were not disclosed". Really?

    Consideration for the Acquisition comprised US$2.1 million in cash and the issue to the vendors of 2.5 million new Burst common shares (the "Consideration Shares"). The vendors have undertaken not to dispose of the Consideration Shares prior to 1 January 2011. Application will be made for the Consideration Shares to be admitted to trading on AIM. Following the admission to trading of the Consideration Shares (and assuming the cancellation of the 2,500,000 Burst Shares repurchased by the Company on 24 September 2009) Burst will have 70,628,562 common shares of US$0.01 each in issue.

    The Acquisition is expected to add approximately US$1.4 million of revenue to Burst in the period to the end of the current financial year. The Acquisition is expected to be earnings neutral during this period and to enhance earnings in the year ending 31 December 2010.

    This is public information on the AIM website. If you are a journalist, please do some research when writing an article.

  2. The company released the form after the initial press release. The post has been updated.

Comments have been disabled for this post