Acquires stake in US strategic partner
26 Januar 2009 - 8:00AM
UK Regulatory
TIDMGON
RNS Number : 2053M
Galleon Holdings PLC
26 January 2009
Date: 26 January 2009
On behalf of: Galleon Holdings plc ("Galleon" or "the Company")
Embargoed until: 0700hrs
Galleon Holdings PLC
Acquires stake in US strategic partner
Galleon Holdings plc (AIM: GON), the AIM listed entertainment media company
developing and producing multi-platform properties with a focus on emerging
markets, announces it is to acquire a 19% stake in Dragonfruit Entertainment, a
subsidiary of its US strategic partner, Dragonfruit Studios.
Galleon will contribute a total of GBP252,000 ($347,000) to the working capital
of the newly formed Dragonfruit Entertainment, to be satisfied by $250,000 in
cash and 426,000 new Ordinary 1p shares in Galleon Holdings plc.
In September 2008 it was announced that Dragonfruit Studios had licensed certain
exploitation rights to two of Galleon's multi-platform entertainment properties,
Super Soccer Star and Apollo's Pad. This investment by Galleon in Dragonfruit
Entertainment marks a strengthening of the relationship between the two
companies and provides Galleon with an operating presence in the US, domestic
market as well as expertise and expansion opportunities for its entertainment
properties. Dragonfruit Entertainment will generate revenues from sponsorship,
advertising and online exploitation in the US and the rest of the world.
Galleon expects to receive a royalty from these activities.
Dragonfruit Entertainment is currently redeveloping the Apollo's Pad format in
preparation for a multi-platform relaunch. The plans include a particular
emphasis on establishing global distribution and attracting global advertising
and sponsorship partners, to build on the relationships with Sony BMG and EMI,
which supply the music catalogue for the site. The phased relaunch of the new
apollospad.com website has already begun and will roll out progressively in the
coming months.
Apollo's Pad is an interactive entertainment property aimed at the highly
coveted yet elusive young male audience and offers online and mobile users a
unique, broadcast-quality comedy entertainment show. The property features a
series of webisodes set in the fictional Apollo's Pad nightclub and a cast of
characters modelled after different music genres.
Dragonfruit Studios was launched in January 2008 by Michael Koziol and Melissa
Honabach, who previously founded interactive agency Ant Farm Interactive in
1999, which they sold to Nurun, a publicly traded (TSX) global interactive
agency, in 2004. Nurun was subsequently acquired by Quebecor Media. The
principals are widely recognised for their expertise in digital media and
marketing, new and emerging media models, and advising leading global brands on
the new media landscape. During their tenure at Ant Farm Interactive and Nurun,
they advised a wide range of clients, including: AT&T, AutoTrader.com, Equifax,
L'Oreal, Unilever, Evian, The Home Depot, Bombardier Recreational Products,
Frontier Airlines, and many others.
The 426,000 new Ordinary Shares being issued will rank pari passu in all
respects with the existing Ordinary Shares in Galleon. Application will be made
for these new shares to be admitted to trading on AIM and it is expected that
dealings will commence on 2 February 2009.
Commenting on the partnership, CEO of Galleon Holdings, Stephen Green said:
"Michael and Melissa have a proven track record of building successful
businesses. Their knowledge of the North American market, digital media
expertise and network of contacts are highly complementary to our own and we are
confident that this partnership will help Galleon expand its entertainment
brands more rapidly into the US and internationally".
Commenting on the partnership, CEO of Dragonfruit Studios, Michael Koziol said:
"Galleon and Dragonfruit Studios have aligned interests, compatible styles, and
similar cultures. We are excited about this expansion of our corporate
relationship and using it as the platform to bring new concepts in
multi-platform content and branded entertainment to the global market."
-End-
Enquiries:
+-------------------------------------------------+--------------------------------+
| Galleon Holdings plc | www.galleonplc.com |
+-------------------------------------------------+--------------------------------+
| Stephen Green, Chief Executive | Tel: 020 8742 3636 |
+-------------------------------------------------+--------------------------------+
| | |
+-------------------------------------------------+--------------------------------+
| Cenkos Securities (Nominated Adviser & Broker) | |
+-------------------------------------------------+--------------------------------+
| Ken Fleming / Jon Fitzpatrick | Tel: 0131 220 9772 / 0131 220 |
| | 9773 |
+-------------------------------------------------+--------------------------------+
| | |
+-------------------------------------------------+--------------------------------+
| Redleaf Communications | Galleon@redleafpr.com |
+-------------------------------------------------+--------------------------------+
| Samantha Robbins / Sanna Sumner / Mike Ward | Tel: 020 7566 6700 |
+-------------------------------------------------+--------------------------------+
| | |
+-------------------------------------------------+--------------------------------+
| Dragonfruit Studios | Tel: +1 678 500 9106 |
+-------------------------------------------------+--------------------------------+
| Michael Koziol, Chief Executive | michael@dragonfruitstudios.com |
+-------------------------------------------------+--------------------------------+
Notes to Editors:
ABOUT GALLEON HOLDINGS
Galleon Holdings plc creates and distributes multi-platform branded
entertainment properties focused on the emerging markets, in particular China
and South East Asia. The entertainment properties are designed to establish a
direct, interactive relationship with the viewer.
Television in China reaches approximately 98% of the population of 1.3 billion.
Mobile phone penetration is also high, with over 450 million subscribers and
with over 300 million people online, China is now the largest online market in
the world. Huge TV audiences and growing interactive platform access presents a
substantial opportunity for Galleon to benefit from the popularity and demand
for interactive entertainment and game shows. China is forecast to become the
world's fifth largest advertising market.
In October 2007 Galleon acquired Phoenix, a Hong Kong based media solutions
company, which specialises in the provision of interactive broadcast television
services that enable broadcasters in China and South East Asia to provide
interactive entertainment for audiences to access through TV, online and mobile.
In February 2008 Galleon acquired Yunbo, a mobile service provider in China,
strengthening the Company's ability to provide Chinese broadcasters with a
complete media solution for multiplatform entertainment. Galleon now has total
control over the interactive content, its delivery to the consumer, data capture
and the billing process.
Galleon develops entertainment formats for children, families and young adults.
These include:
* Super Soccer Star - an interactive family orientated football talent show.
Produced in association with Chelsea Football Club. The first series, broadcast
in Guangdong province, China, achieved top five show status. The show has
recently launched in Malaysia.
* Skunk Fu! - a comedy action animated TV show for kids aged 6-11.
* Apollo's Pad - an interactive online animated sitcom targeting the young male
audience.
ABOUT DRAGONFRUIT STUDIOS
Dragonfruit Studios is an Atlanta-based original content studio focused on
creating, developing, and producing multi-platform entertainment properties.
With the dynamic shifts occurring in the media and entertainment spaces, now is
the time for new approaches to content creation and a new view towards
distribution and revenue models. The founders' experience with new marketing and
media models, their perspective on the current and emerging media landscape, and
their understanding of the needs and expectations of new consumers positions
Dragonfruit Studios well to create and exploit new audiences and deliver the
right content using the right channels.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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