RealTime IT News

Sitestar to Sell E-Commerce Unit to SBI Communications

Internet holding company Sitestar Corp. said it is in "advanced discussions" with SBI Communications Inc. about a merger of its e-commerce assets with SBI.

"With the Internet landscape constantly evolving and becoming more competitive, Sitestar is determined to focus solely on its primary strategy of consolidating Internet Service Providers in the secondary and tertiary markets of the mid-Atlantic region," said Sitestar President and Chief Executive Officer Clinton J. Sallee.

"The possible divestiture of our e-commerce assets would allow us to free up valuable resources and enable us to redirect more energy and resources to expedite the growth of our primary revenue source," he said. "This strategy would also allow us to unlock the hidden value of our e-commerce properties."

The transaction will be structured in the form of a stock-swap. Sitestar would sell its e-commerce properties, Soccersite.com, Greattools.com and Holland-American.com to SBI in exchange for SBI common stock.

The number of SBI shares would be based on a mutually agreed upon value for the deal. Sitestar's equity stake in Qliq-On Corp. would not be included in the transaction.

SBI Communications is a marketing, Internet media, and entertainment company. On Thursday it signed a letter of intent to acquire Valencia Entertainment International, a vertically integrated entertainment conglomerate that includes television production (both network and syndication), motion pictures, sports, the Internet and real estate holdings.

Financial details were not disclosed. Valencia Studios has housed two ongoing hit series, JAG and Power Rangers, for the past four years.