Xinhua Finance Media Strengthens TV Programming and Production Consulting Capabilities with Acquisition
August 24 2007 - 6:00AM
PR Newswire (US)
BEIJING, Aug. 24 /Xinhua-PRNewswire-FirstCall/ -- Xinhua Finance
Media ("XFMedia"; Nasdaq: XFML), China's leading diversified
financial and entertainment media company, announced today that it
has acquired a 70% interest in Small World Television ("Small
World"). The acquisition strengthens XFMedia's TV programming and
production consulting capabilities by adding Small World's
international perspective and experience in television production
and key relationships with international broadcasters such as the
U.S. network broadcaster NBC. Founded in 2004, Small World is a TV
programming and production consulting company operated by veterans
of the US entertainment industry. Focusing on the China market,
Small World has been a close partner of XFMedia, helping XFMedia to
introduce an international vision to the production of TV programs
and localizing them for a China audience. "We are delighted that
Small World has now become a part of the XFMedia family," said
XFMedia CEO, Ms. Fredy Bush. "Small World's knowledge of the
entertainment industry, strengths in TV production, in combination
with our understanding of the audiences in China and our own
production resources within the XFMedia platform, will enable us to
develop and produce more and better programs with broad appeal to
our target demographic. We expect that this acquisition will
generate new revenue streams through program syndication and
advertising sales." The founder and President of Small World, Mr.
Jonathan Goodman, said, "I look forward to the effective
integration of Small World with XFMedia's rich media resources. Our
existing TV and movie projects will benefit from XFMedia's strong
production capabilities such as animation, programming, post-
production, as well as its local advertising sales team." The key
management executives of Small World, including founder and
President Mr. Jonathan Goodman, Executive Vice President Mr. Joseph
Lynch and TV Production Vice President Mr. Michael Zombro, have
signed three-year employment contracts with the Company. Mr.
Goodman possesses over 25 years of experience in the entertainment
industry and has successfully negotiated and secured major
recording artist contracts and publishing deals, as well as
multi-million dollar sponsorship packages with many international
firms. Mr. Lynch spent six years producing for NBC prior to coming
to Small World in 2004 to spearhead its production. He has produced
segments on hit shows like Friends, The Apprentice, The West Wing,
ER, and The Tonight Show with Jay Leno. Mr. Zombro has bachelor and
master degrees in production and is a talented camera and lighting
person. He has strong knowledge and experience in all areas of film
and video, from pre- to post-production, and are now responsible
for the daily creative execution of Small World's shows. The
transaction was closed on August 23, 2007. XFMedia has made a cash
payment of USD 5 million and will issue 546,248 Class A common
shares within five days from closing date (equivalent to 273,124
American Depository Shares). XFMedia produces a diverse array of
quality programming, animation shows and television drama series,
as well as offers special effects service and TV channel packaging.
It also provides content consulting services to various TV
programs, deriving revenue through selling advertising for the
programs. The Company produced over 100 TV programs and completed
60 animation episodes last year. About Xinhua Finance Media Limited
Xinhua Finance Media ("XFMedia"; Nasdaq: XFML) is China's leading
diversified financial and entertainment media company targeting
high net worth individuals nationwide. The company reaches its
target audience via TV, radio, newspapers, magazines and other
distribution channels. Through its five synergistic business
groups, Advertising, Broadcast, Print, Production and Research,
XFMedia offers a total solution empowering clients at every stage
of the media process and keeping people connected and entertained.
Headquartered in Beijing, the company has offices and affiliates in
major cities of China including Beijing, Shanghai, Guangzhou,
Shenzhen and Hong Kong. For more information, please visit
http://www.xinhuafinancemedia.com/ . Xinhua Finance Media is a
subsidiary of Xinhua Finance Limited ("XFL"; TSE Mothers: 9399),
China's premier financial information and media service provider.
XFL owns 36.8% of the equity and 85.4% of the voting rights of
XFMedia through its holding of class B common shares, which have
ten votes per share. The investing public, the company's China
partners, executives and staff own class A common shares in the
company with one vote per share. The dual-class common share
structure was created to accommodate the regulatory landscape of
China's media sector. Safe Harbor Statement This announcement
contains forward-looking statements. These statements are made
under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates," 'confident' and similar statements. Among other
things, expectations about the Chinese advertising and television
markets and quotations from management in this announcement contain
forward-looking statements. Statements that are not historical
facts, including statements about XFMedia's beliefs and
expectations, are forward- looking statements. Forward-looking
statements involve inherent risks and uncertainties that could
cause actual results to differ materially from those contained in
any forward-looking statements. Potential risks and uncertainties
are risks outlined in XFMedia's filings with the U.S. Securities
and Exchange Commission, including its registration statement on
Form F-1. All information provided in this press release is as of
the date hereof, and XFMedia undertakes no duty to update such
information, except as required under applicable law. For more
information: China Xinhua Finance Media Joy Tsang, Tel:
+86-21-6113-5999, +86-136-2179-1577 Email: DATASOURCE: Xinhua
Finance Media CONTACT: Ms. Joy Tsang of XFMedia, +86-21-6113-5999,
or +86-136-2179-1577, or web Site:
http://www.xinhuafinancemedia.com/
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