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After selling off its own traffic news unit in February, radio services group UBC Media is now buying Radio Lynx, a company that makes custom audio video content for radio stations and their sponsors, for up to £2.4 million.
Radio Lynx is part of Music Marketing Services and clocked a £428,073 operating profit in 2008 on revenue of £1.8 million revenue. The price is £1.6 million in cash plus a maximum £800,000 earn-out if management hit a £520,000 operating profit.
Radio stations, many of which have seen their radio ad sales crash but are ill-equipped for online sales, badly need some internet marketing juice. UBC CEO Simon Cole, in the release: “We see the area of content related marketing activity as key to the future. The new media models evolving, both in traditional media and on the internet, involve a much closer relationship between advertisers and content.”
UBC off-loaded its commercial travel news wing to Global Traffic Networks six months ago, but last month reclaimed its marketing services business IntaMedia. Though IntaMedia provides similar services to Radio Lynx, UBC won’t combine the two but says the pair will enjoy “synergies”