RealTime IT News

GlobalMedia Taps 212 OnRadio Stations

Vancouver's GlobalMedia.com Thursday announced it has penned a deal with OnRadio.com to purchase contractual relationships with 212 radio stations.

Under the terms of the transaction, GlobalMedia will pay $500,000 in cash and issue up to 1,697,619 shares, valued at upwards of $7 million, to acquire all of OnRadio's assignable contracts for Internet services with terrestrial radio stations.

With the completion of the transaction, GlobalMedia will provide Internet solutions to more than 260 terrestrial radio stations with an aggregate audience of more than 50 million persons.

The transaction will be consummated in a series of closings. The deal is expected to close no later than 120 days after the initial closing.

"New economy companies must reshape business directives based on the demand of technology and the most beneficial options for their customers," said Rick Ramirez, founder and chief executive officer, OnRadio.

"Our decision to transfer our assignable web-hosting, content provision and streaming contracts will allow us to refocus our business on providing strategic services and branding tools."