TV company buys web assets from ex-radio mogul


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.”