By: Jonathan Angel (
Adweek Magazines' Technology Marketing) United Business Media, parent company of tech publisher CMP, also owns PR Newswire. As such, it's a leader in the business of distributing press releases and investor information to other media.
Now, wanting to move into distributing news releases via streaming video, UBM on Tuesday offered to purchase Medialink Worldwide Inc. Under the terms of the tender, UBM would purchase Medialink using its cash reserves, and then merge its operations with PR Newswire. At a price of $5 per share, the deal is worth approximately $29 million.
"After evaluating a range of strategic options that would enable PR Newswire to enter the video news release segment ... we have identified a potential merger with Medialink as the most attractive alternative," says Charles Morin, CEO of PR Newswire. "A combination of PR Newswire and Medialink, backed by the financial and operational resources of UBM, would create the greatest opportunities for customers and employees."
"While the board of directors of Medialink will review UBM's offer in due course, we are an independent company and intend to aggressively execute our business plan," a Medialink spokesperson responded Wednesday. "Our role is to assure that all Medialink shareholders recognize maximum value."
Whether or not the merger goes through, one thing is clear: Rather than being the rare exception it is today, video will soon become an expected adjunct to many press releases.
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