OnRadio.com Sells Radio Contracts to GlobalMedia for $9 Million
GlobalMedia will buy Assignable Contracts for 212 Radio Stations from OnRadio
GlobalMedia.com (http://www.globalmedia.com) a provider of e-commerce streaming solutions, announced it has purchased 212 contracts from OnRadio.com (http://www.onradio.com), a provider of radio broadcasters.
This is a big deal for OnRadio.com, which has traditionally been involved in getting radio stations online. OnRadio says they will focus on getting creating tools for customers. It said it will unveil business-to-business products including an online music player.
OnRadio employs approximately 60 people; most based at the company's Scotts Valley, California, headquarters.
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.
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 . . ..will allow us to refocus our business on providing strategic services and branding tools."
"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."