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.
