LFP Broadcasting to acquire New Frontier Media
LFP Broadcasting has revealed it intends to acquire New Frontier Media.
LFP Broadcasting is to acquire New Frontier Media, with sales negotiations resulting in the transaction's value reaching $2.02 (£1.26) per common share, or an estimated $33 million, alongside an additional contingent cash payment.
As a result, the overall value of this deal represents a 79 per cent premium on the closing stock price of New Frontier Media on March 8th.
New Frontier Media provides general motion picture entertainment and transactional television services, while LFP is associated with the Hustler brand and is founded and headed by Larry Flynt.
It is expected that the transaction will be completed during the final quarter of 2012 and it follows a comprehensive review by the board of directors at New Frontier Media regarding how they can maximise value to shareholders.
"This transaction with LFP Broadcasting creates a great opportunity for our organisation, cable television partners and customers as two of the premier adult media broadcasting companies join forces," the business leaders said.
Posted by Edel Quinn
Source: New Frontier Media press release, October 15th