Torstar may sell Transit TV under IdeaCast deal
TORONTO, Jan 16 (Reuters) - Book and newspaper publisher Torstar Corp (TSb.TO) has entered into a deal that could lead to a sale of its transit-based digital advertising business to U.S.-based IdeaCast Inc., the companies said on Wednesday.
Under the pact, IdeaCast -- which provides programming and advertising to health clubs -- has an option to buy Transit Television Network from Torstar for an undisclosed amount in the second quarter of 2008.
Transit, wholly owned by Torstar, has a network of 8,500 screens in 3,900 transit vehicles across Los Angeles, Chicago, Atlanta, Orlando and Milwaukee.
The two companies also announced they entered into a sales relationship that will see IdeaCast sell Transit's advertising inventory to IdeaCast's ad clients.
Robert Prichard, Torstar's CEO, said the deal "advances many of the objectives we set for the strategic review we initiated in 2007."
He added it gives Transit access to an experienced digital ad sales team and will let it cut its costs.
The news came out after markets closed. During the day, Torstar's shares fell 15 Canadian cents to C$18 on the Toronto Stock Exchange.
($1=$1.03 Canadian)
(Reporting by Wojtek Dabrowski; Editing by Renato Andrade)
