It was revealed today that listed media conglomerate Primedia has acquired alternative media company Altmedia, in a deal reportedly valued at more than R70-million. Outdoor giant Clear Channel Independent has sold its 49 percent stake in Altmedia as part of the deal.
Former Altmedia chief executive Andrew Kramer says the two parties have been negotiating since February this year. Primedia ‘paid the full price”, says Kramer. ‘[The deal] is not vendor financed.”
The arrangement is based on the proviso that Kramer moves across to Primedia and retains operational management of The Letter Corporation, a former Altmedia subsidiary that focuses on selling advertising space in washrooms across the country. As part of the Primedia Unlimited division, Kramer will also manage Forecourt Media, a Primedia-owned company that sells advertising on screens in garage forecourts.
GMR, the Altmedia subsidiary dedicated to the selling of advertising space on taxis, will be merged with Primedia’s Comutanet. eMedia understands that this enlarged division will now have a taxi inventory numbered somewhere in the region of 3,000. The Letter Corporation’s airport media division will be merged with Primedia Outdoor.
‘From my personal perspective,” say Kramer, ‘I can only say I’ve been incredibly impressed with the Primedia guys, from William Kirsh down.”
While Kramer cannot disclose the exact amount Primedia spent on the acquisition, he does say that the Altmedia business was valued ‘upwards of R70-million”.
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