LOS ANGELES, CA--(MARKET WIRE)--Aug 26, 2008 -- Mediatechnics Corporation (Other OTC:MEDT.PK - News) has signed a letter of intent to purchase Global Music Group - New York (GMG-NY), the company that won the bid to acquire the assets of Death Row Records in the U.S. Bankruptcy Court in June of this year for $24 million. Mediatechnics intends to provide Global Music with the funds needed to complete the acquisition.
The landmark deal would give Mediatechnics Corp. ownership of Global Music Group, which will hold upon completion of the purchase -- free and clear of all liens, claims and encumbrances -- all of the assets that comprise Death Row Records, including Death Row's catalog of master recordings and published music, as well as all trademarks and other intellectual property, licenses, artist and writer agreements, works in progress, and options. An independent valuation of the bankruptcy estate completed last month placed the catalog value at $32 million.
The Death Row catalog includes a significant amount of previously unreleased material by the late Tupac "2Pac" Shakur and other top artists, as well as almost all of the previously released music of Dr. Dre and 2Pac. The 2Pac music has spawned great interest with the media since the possibility of its imminent release became news.
Founded in 1991 by Marion "Suge" Knight and Dr. Dre, Death Row Records established itself as one of the biggest labels at the forefront of the '90s gangsta rap music era, and, for all intents and purposes, defined the genre. The label was home to such artists as Dr. Dre, Snoop Dogg, Tha Dogg Pound as well as 2Pac.
By the early 2000s, Death Row was besieged with several crippling lawsuits and criminal convictions for founder Suge Knight. In April of 2006, Knight sought bankruptcy protection for himself and the label. On June 24 of this year, the U.S. Bankruptcy Court for the Central District of California approved the sale of Death Row to Global Music Group - New York for $24 million, and Global Music placed a deposit with the court.
Mediatechnics President Richard Wilson said, "The acquisition of Global Music and Death Row Records will represent a landmark turning point for our company. Together with our subsidiaries, the Live Network and CRD Technologies, the prospects of co-branding, licensing and new product development are astounding." He continued, "We're driving hard to lock in all of the complicated pieces of this puzzle necessary to successfully conclude this remarkable deal."
Susan Berg, President of Global Music Group - NY, said, "We are delighted by the prospects that this imminent transaction could bring to our two companies and believe the outcome, both financially and creatively, can be an incredible force." Berg qualified Global Music Group as a bidder with the Federal Bankruptcy Court prior to the auction in June, putting up more than one million dollars on deposit.
Mediatechnics' transaction remains contingent upon several factors, not the least of which is the closing of the financing and the subsequent payment to, and acceptance by, the Bankruptcy Court and its trustee. While many factors outside the control of Mediatechnics could yet affect whether or not the transaction is completed, the company is currently in possession of a Letter of Intent from a lender to fund the transaction, and has been informed by GMG-NY that it is likely that the purchase will be accepted when funds are proven and delivered.
Mediatechnics Corporation www.Mediatechnicscorporation.com is the parent company of Mediatechnics Systems Inc. www.Mediatechnics.com, MediaMaster Corporation www.mediamastercorp.com, The Live Network www.thelivenetwork.com, Innotech www.innotechusa.com, and CRD Technology www.crdtechnologies.com
Notes about forward-looking statements
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties.
Certain Statements contained in this release that are not historical facts constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created by that Act. Reliance should not be placed on forward-looking statements because they involve unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied.
Forward-looking statements may be identified by words such as "estimates," "anticipates," "projects," "plans," "expects," "intends," "believes," "may," "should" and similar expressions and by the context in which they are used. Such statements are based upon current expectations of the company and speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date when they are made.
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