FSMH: HUGE NEWS!Atlantic Syndication Network Enters Into Letter of Intent to Acquire $7.5 Million of FSBO Media Holdings Assets
Atlantic Syndication Network Inc. (OTCBB: ASNI) and FSBO Media Holdings Inc. (PINKSHEETS: FSMH) announced today that they have entered into a Letter of Intent in which Atlantic Syndication Network Inc. will acquire specific businesses and selected assets of FSBO Media Holdings Inc. ASNI plans to purchase 100% of "For Sale by Owner" A/K/A FSBO brand names, certain business licensing rights and trademarks including: "FSBO Web TV," "FSBO HSPN.COM," "FSBO VideoSpectus," "FSBO FN," "By Owner University Training CDs," "Help-U-Build Guide and CD," "RelaxRelax Inc., d/b/a FLV Hosting," "Video Birthdays," "Video Business Cards," "FSBO Travel" and specific domain names to be referenced in the final agreement. ASNI Website - www.asni.tv ; FSBO Website - www.fsbomediaholdings.com
ASNI engages in the development, production, and distribution of television programs, commercials, infomercials, and ancillary products targeting domestic and international distribution. ASNI, having the financial benefit of owning its own state-of-the-art television studio, subsidized its creative team during the last 2 years in the development of high-end, web-based projects to support projected infomercials and website driven sales. Today, the company has defined a number of specific proprietary multi-media infomercial projects for distribution and is able to produce high-end content at considerably less than many of today's producers and production companies.
Kent Wyatt, President and CEO of ASNI, states, "The convergence of television and the internet has been inevitable and the impact this is having on all forms of television and the advertising business is major. The contribution and effect VOD (video on demand) has on the entertainment business via the internet is unbelievable; but, it's even more exciting to know that this technology literally dominos and complements most every form of business through all forms of media. FSBO has definitely demonstrated its ability to take advantage of this technology."
Major TV broadcasters and cable networks have announced a flurry of VOD and online initiatives that appear to have the potential to ultimately change the fundamental nature of TV content distribution business. Both NBC and CBS are moving top prime-time programs to VOD services that allow consumers to time-shift their viewing. ABC is making its entire nightly news program available online, while CBS and NBC are also putting more of their TV news content available via broadband Web access. Warner Bros. is making thousands of full-length TV episodes from its archives available online through AOL. NBC Universal is preparing to offer movies on an internet peer-to-peer file sharing service of the kind used to swap digital songs. TiVo is preparing to offer a new system that enables viewers to capture and download prime time shows onto their iPods for watching on the run. Beyond the TV realm, other media companies are making moves to become online or VOD distributors of TV content. For instance, giant magazine publisher Meredith will be producing its magazine content into video formats for VOD, Yahoo! and the other large internet portals, meanwhile, continues to expand their offering of digital video from a wide array of sources. "Advertising Age News" (December 1, 2005).
Wyatt continues, "Whether it's TV, radio or print, most responsible businesses direct us to their website; and today, media experts such as 'Advertising Age News' are right: VOD is here! ASNI's goal will be to take advantage of its creative and multi-media veterans to further expand and promote these businesses via VOD."
The proposed acquisition of FSBO assets will be consummated through the issuance of a combination of ASNI's common and preferred stock, and stock options with a total purchase price set at $7.5 million dollars. Upon closing of the proposed transaction, ASNI will select additional management and members to the board of directors to complement and help accelerate the growth of the company.
Steve Bazsuly, President of FSBO Media, said, "The acquisition of FSBO assets by ASNI will definitely benefit each of the company's shareholders. FSBO shareholders will receive a dividend distribution of shares in ASNI and at the same time still own shares in our Pink Sheets company. Presidential Holding, Inc. will be retained by our company and is not part of the asset acquisition." He also added, "The acquisition and financing opportunities as well as the mutual talent and combined effort will open new doors for the future growth of both companies."
The Proposed Transaction is conditional upon both parties' satisfactory completion of the Due Diligence effort, a definitive agreement and approval by all relevant parties involved including the Securities and Exchange Commission.
