With the NASDAQ taking a beating in the last few weeks, many companies are being forced to reevaluate their positions.
Vancouver-based GlobalMedia.com became the latest in the stream of local companies restructuring, announcing at the end of the week, a major reorganization of its business, including the sale of its radio contracts and related assets to SurferNETWORK.com.
SurferNETWORK will pay GlobalMedia.com a combination of cash and equity for its radio assets. GlobalMedia.com will also get a seat on the Board of SurferNETWORK.com.
According to officials at GlobalMedia.com, the agreement also provides the company with interim funding.
Closing of the transaction is expected to be in late January 2001, subject to the completion of due diligence and signing of the definitive agreements.
“We have recently decided to focus on the high growth segments of media delivery where we believe we can develop a competitive advantage. We have therefore been aggressively exploring ways to finance the company and to also provide a great operational platform for the radio side of our business,” says Jeff Mandelbaum, Chairman and CEO of GlobalMedia.com.
“This transaction accomplishes both and gains us a valuable new partner in SurferNETWORK.com. We’re confident in the high level of service that will be provided by SurferNETWORK.com and we will work to provide a smooth transition for our customers.”
SurferNETWORK.com will combine GlobalMedia.com’s radio contracts with the radio contracts it previously has closed with a number of the leading radio groups in the Internet broadcast industry.
GlobalMedia.com plans to focus on video delivery over the Internet. The company has already made inroads into this market with contracts for such clients as the National Football League, 4Kids Entertainment, WorldHockeyNetwork, AccuWeather and ClassicMovies.com.
The company will also continue to focus on the development of its next generation technology, which is targeted for the rapidly growing broadband and wireless market.
