LIN TV is bolstering its digital assets with the purchase of RM Media. The target company used to be called Red McCombs Media after its founder, who also had a hand in founding Clear Channel Communications.
LIN said it bought the company to enhance its “local multi-platform offerings by providing national advertising and enhanced services, including targeted display, rich media, video advertising, custom-built vertical channels, search engine marketing, search engine optimization, and mobile marketing.”
The deal is structured as a merger between LIN subsidiary Primeland Television and RMM. It is valued at about $7.9M, including $1.2M cash, $4.5M in stock, and a $2.2M promissory note. Primeland also took over $2.8M in debt and handled other expenses.
The stock portion of the deal will send 933,610 shares valued at $4.82 each to the former owners of RMM.
“RM Media advances LIN’s transformation from a local broadcaster to a digital media company with a national footprint,” said LIN TV’s President and Chief Executive Officer Vincent Sadusky. “RM Media was founded by innovative and entrepreneurial leaders who have a clear understanding of new media engagement and a first-to-market advantage.”