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The NewsMarket to Acquire Medialink
NEW YORK, NY, Jul 01, 2009 (MARKETWIRE via COMTEX) --
The NewsMarket (www.thenewsmarket.com) today announced that it has
entered into a definitive agreement and plan of merger with Medialink
Worldwide Incorporated (NASDAQ: MDLK).
The NewsMarket will acquire all of the outstanding shares of
Medialink's common stock at a price of $0.20 per share in cash. Once
approved by Medialink's shareholders, Medialink's employees and
services will be combined under The NewsMarket, Inc. This transaction
combines The NewsMarket's digital video distribution platform with
Medialink's professional services and production capabilities to
create a complete video solution for corporate customers.
"Video continues to be the fastest growing category in marketing
services, and the combination of The NewsMarket and Medialink will
create a very compelling offering for all of our customers'
increasingly sophisticated demands," said Jim Lonergan, CEO &
President of The NewsMarket. "Merging Medialink's strengths in
strategy and execution with our technology creates the industry's
most complete video solution and enables us to be responsive to a
larger share of the market." The NewsMarket was launched in 2003 to
capitalize on emerging digital distribution technologies to create
the world's preeminent video platform for the marketing, PR, and news
media industries.
Medialink is a global leader in providing unique news and marketing
media strategies and solutions that enable corporations and
organizations to inform and educate their target audiences with
maximum impact on television, radio and the Internet. Medialink
offers creative services and multimedia distribution programs
including video and audio news and short-form programming. For the 12
month period ending March 31, 2009, Medialink recorded revenues of
$17.95 million.
By acquiring Medialink, The NewsMarket will significantly broaden its
services to the marketing, communications, investor relations, and
media community. "Video has gone mainstream and we're seeing budgets
increasingly shift toward the inclusion of video in all elements of
mainstream communications and marketing. Customers want one trusted
partner for their sophisticated video needs, and this acquisition
positions us incredibly well to help customers from strategy, through
production and distribution," added Lonergan.
With this acquisition, The NewsMarket substantially increases its
customer base, and thereby also exponentially grows its content
archive. This large, varied and high quality archive is extremely
relevant and valuable to the rapidly growing universe of media
organizations, blogs, online outlets and consumer-facing video sites
whose demand for content increases every day.
"As investors, we continue to see tremendous opportunity in the
marketing services space, especially around video, and the acquisition
of Medialink is another step in significantly increasing market share
and creating an industry leader with the scale and financial
resources to continue to grow and thrive," said Jordan Levy, Partner
of Softbank and Board director of The NewsMarket. Other investors in
The NewsMarket include Hearst Interactive Media, Battery Ventures,
Apax Partners, and High Peaks Ventures.
The Board of Directors of Medialink has unanimously approved the
transaction. It is anticipated to close this summer, subject to
Medialink stockholder approval, regulatory approvals and other
customary closing conditions.
About The NewsMarket
The NewsMarket is the leading platform used by global brands,
governments and NGOs to communicate with all their key audiences using
video. The NewsMarket combines award-winning, proprietary technology
with a unique, strategic approach to support the marketing programs
of the world's leading brands including General Motors, Volvo Cars,
the U.S. Department of State, IBM, UNICEF, Facebook and Google. The
company's media site (www.thenewsmarket.com) is used by more than
25,000 media outlets in 190 countries to view and order free news
video. Headquartered in New York, the company also has offices in
London, Ahmedabad, Mumbai, Beijing and San Francisco. To learn more
about us, visit: www.thenewsmarket.com/postingcontent.
SOURCE: The NewsMarket
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