GlobalMedia.com Buys Magnitude Network Radio Stations for $6 Million
GlobalMedia.com (http://www.globalmedia.com) said Friday it has purchased radio station streaming assets of Magnitude Network (a subsidiary of iCAST, which is itself a CMGI company) for $6 million in stock plus warrants.
Why did iCAST/Magnitude Networks sell? According to spokesperson Bill Golden, iCAST wants to focus on its web-only stations, provided by the company's Green Witch unit. As a result it is selling off its assets that involve terrestrial radio stations. "We didn't see [traditional radio stations] as a strategic piece of the business," said Golden. "What we do best is Internet only radio."
Golden compared iCAST's move to web radio as a "Spinner.com move", although he admitted that the company wasn't looking to spin off that section of the site, or create a separate entity. As of today, the radio stations on iCAST are available through iCASTER (the company's all-in-one media player) or through a smaller web radio application.
This week iCAST (http://www.icast.com) quietly redesigned its entertainment site and partnered with CMGI sister site AltaVista to provide content to AltaVista's recently unveiled entertainment channel.
For Globalmedia.com, this purchase, in addition to its recent purchase of 212 contractual agreements from OnRadio.com in June 2000, means GlobalMedia is serious about getting into the radio streaming space.
GlobalMedia will provide streaming media, web site development, ande-commerce services for Magnitude's 100 radio stations across theU.S. and Canada.
Jeff Mandelbaum, president and CEO of GlobalMedia, said, "With thisacquisition, we will now be broadcasting content for 12 of the top 50 Arbitron-rated streaming stations (Arbitron, February 2000), a move whichstrengthens our value proposition to our customers and provides greaterrevenue opportunity by driving increased traffic to our sites."