|By Marketwired .||
|July 1, 2009 04:52 PM EDT||
NEW YORK, NY -- (Marketwire) -- 07/01/09 -- 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.
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