Completion of Acquisition

 

TIDMBRST 
 
RNS Number : 4317A 
Burst Media Corporation 
08 October 2009 
 

 
 
8 October 2009 
 
 
Burst Media Corporation 
 
 
 
 
Completion of acquisition 
 
 
Further to its announcement on 24 September 2009, Burst Media Corporation 
("Burst" or "the Company"), the international online advertising services and 
technology business, is pleased to announce that it has completed the 
acquisition of the business and assets of Giant Realm, Inc. ("Giant Realm"), a 
vertical ad network focused on gamer and entertainment enthusiasts (the 
"Acquisition"). As part of the Acquisition, Burst has acquired Giant Realm's 
proprietary video and content management technology. 
 
 
Consideration for the Acquisition comprised US$2.1 million in cash and the issue 
to the vendors of 2.5 million new Burst common shares (the "Consideration 
Shares"). The vendors have undertaken not to dispose of the Consideration Shares 
prior to 1 January 2011. Application will be made for the Consideration Shares 
to be admitted to trading on AIM. Following the admission to trading of the 
Consideration Shares (and assuming the cancellation of the 2,500,000 Burst 
Shares repurchased by the Company on 24 September 2009) Burst will have 
70,628,562 common shares of US$0.01 each in issue. 
 
 
Giant Realm, which is based in New York, has relationships with a number of 
prominent and popular gamer and entertainment websites. The Acquisition expands 
Burst's portfolio of niche vertical networks and provides the Company with 
additional technology that has application to all of Burst's publisher 
relationships. 
 
 
The Acquisition is expected to add approximately US$1.4 million of revenue to 
Burst in the period to the end of the current financial year. The Acquisition is 
expected to be earnings neutral during this period and to enhance earnings in 
the year ending 31 December 2010. 
 
 
Jarvis Coffin, Chief Executive of Burst Media, commented: "I am delighted to 
have completed this important strategic acquisition. As well as increasing the 
scale of Burst and widening our current proprietary technology portfolio, its 
network has important strategic sales value, significantly improving our 
capacity to target the important 18-34 year old market. Overall, this is a good 
deal for Burst and its stakeholders, and the Board is confident the Acquisition 
will make a positive contribution to the future growth of the Company." 
 
 
Enquiries: 
 
 
+------------------------------------+------------------------------------+ 
| Burst Media Corporation            |                                    | 
+------------------------------------+------------------------------------+ 
| Jarvis Coffin, Chief Executive     | Tel: [phone]               | 
| Steve Hill, Chief Financial        |                                    | 
| Officer                            |                                    | 
+------------------------------------+------------------------------------+ 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| Altium                             |                                    | 
+------------------------------------+------------------------------------+ 
| Tim Richardson / Paul Chamberlain  | Tel: [phone]          | 
+------------------------------------+------------------------------------+ 
 
 
+------------------------------------+------------------------------------+ 
| Hudson Sandler                     |                                    | 
+------------------------------------+------------------------------------+ 
| James White                        | Tel: [phone]          | 
+------------------------------------+------------------------------------+ 
 
 
 
 
Any statements in this press release about future expectations, plans, and 
prospects for the Company, including statements about the estimated revenue of 
the Company, and other statements containing the words "estimates", "believes", 
"anticipates", "plans", "expects", "will", and similar expressions, constitute 
forward-looking statements. Actual results may differ materially from those 
indicated by such forward-looking statements as a result of various important 
factors, including the unpredictable nature of our rapidly evolving market and 
fluctuations in our business; the effects of competition; any adverse changes in 
our customers' business, and other factors discussed in our latest annual report 
and other filings. In addition, the forward-looking statements included in this 
press release represent our views as of 7 October 2009. We anticipate that 
subsequent events and developments may cause our views to change. However, while 
we may elect to update these forward-looking statements at some point in the 
future, we specifically disclaim any obligation to do so except insofar as may 
be required of the Company by the AIM Rules. These forward-looking statements 
should not be relied upon as representing our views as of any date subsequent to 
7 October 2009. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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