Private Media Group Completes Acquisition of Leading Online Distribution
Platform Sureflix
BARCELONA, Spain, Nov. 3 /PRNewswire-FirstCall/ -- Private Media Group, Inc.
(Nasdaq: PRVT) announced today that on October 29 it finalized the acquisition
of Sureflix Digital Distribution ("Sureflix"), the world leader in digital
distribution of premium gay content and owners of maleflixxx .tv, splashshots
.com. The acquisition provides Private with a leadership position in the
lucrative gay market.
Commenting on the Company's decision to make this acquisition, Ilan
Bunimovitz, Chief Executive Officer of Private explained: "With Sureflix, we
extend our platform into yet another new market and broaden our leading
position in the adult industry into the gay space. Together, we offer the most
comprehensive catalog to affiliates and consumers. This is an accretive
acquisition and it will act as a strategic accelerator for both parties,
enabling growth into new markets and territories while opening up new business
relationships."
Speaking about the synergies between Sureflix and Private, Eric Jonson,
President of Sureflix, said: "It is hard to imagine a better fit. As part of
Private, we will be able to offer members of the industry the best
distribution network. This deal opens many revenue channels and allows us to
deliver the distribution muscle of a storied international brand to our
premium catalog."
The acquisition agreement was signed on October 9, 2009 and the agreement
provides for the issuance of 3,900,000 unregistered shares, or 6% of total
shares outstanding following issuance, of Private common stock to the owners
of Sureflix and related companies upon completion of the acquisition, and up
to an additional 2,100,000 shares of Private common stock based on earnout
targets.
The combined pro-forma revenue of the two entities for the six months ending
June 30, 2009 was USD 19.3 million compared to USD 16.0 million in revenue for
the same period for Private alone, a 21% difference.
About Sureflix
Sureflix is a leading global supplier of adult programming. Sureflix operates
a vast network of pay-per-view VOD Websites and has a North American broadcast
presence. Sureflix represents premium production studios in the various
worldwide television broadcast markets (cable, satellite), mobile, IPTV as
well as the various Internet VOD markets. Sureflix has not only in-depth
knowledge of adult programming, but also significant VOD technology and
marketing expertise. Sureflix launched its flagship site in 2001 and has
continued, with steady growth across all markets since this point.
Visit sureflix.com for more information.
About Private Media Group
Founded in 1965, NASDAQ listed Private Media Group (PRVT) is a brand-driven
world leader in adult entertainment, operating a global content distribution
network with a wide range of platforms including mobile telephone handsets via
85 network operators in 36 countries, digital TV via 35 platforms in 18
countries, broadband Internet, television broadcasting, DVDs and magazines.
Private Media Group owns the worldwide rights to its extensive archive of
high-quality content, and also licenses its Private and "Silver Girls"
trademarks internationally for a select range of luxury consumer products.
Private is the world's preferred content provider of adult entertainment to
consumers anywhere, at any time and across all distribution platforms and
devices.
Corporate site: prvt.com, consumer site: private .com
Disclaimer
This release contains, in addition to historical information, forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
which reflect the Company's current judgments of those issues. Forward-looking
statements in this press release include expectations about the timing of the
merger and the satisfaction of closing conditions to the transaction,
including the receipt of regulatory approvals. Actual results may differ
materially from those contained in the forward-looking statements in this
press release. Private undertakes no obligation to, and does not intend to,
update these forward-looking statements to reflect events or circumstances
occurring after this press release. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
of this press release. In addition, because those statements are
forward-looking and apply to future events, they are subject to such risks and
uncertainties, which could lead to results materially different than
anticipated by the Company.
For further information please contact:
Simon Jordan
Marketing Department
Private Media Group
Tel +34 93-620 80 90
simon.jordan@private.com
SOURCE Private Media Group
Simon Jordan, Marketing Department of Private Media Group, +34 93-620 80 90,
simon.jordan@private.com
