Media Corp Buys Purple Lounge, Promises More M&A in Future

Today, Media Corporation (Media Corp), the AIM-listed advertising network and online publishing group, announced that it bought all shares of UK-based Purple Lounge Ltd (Purple Lounge), which offers online poker, card and casino games, and sports betting. After the acquisition, Media Corp will be able to market its gaming services to the United Kingdom, since Purple Lounge operates from Malta, a UK white-listed jurisdiction.

Microgaming powers both Purple Lounge's poker and casino software.

The maximum consideration for Purple Lounge is GBP 0.465m, all of which will be satisfied by way of an earn-out, payable over a period of up to 5 years. The earn-out payments will be calculated as 50 per cent of the quarterly free cash flows generated by Purple Lounge, and can be satisfied by either cash or shares at the option of Media Corp.

Following completion of the acquisition, the chairman of Purple Lounge, Chris Gorman OBE, has joined the board as a non-executive director of Media Corp with immediate effect. Gorman is a director and shareholder of Purple Lounge.

Justin Drummond, Chief Executive of Media Corporation plc (which until 2006 was known as Gaming Corporation), commented:

"The acquisition of Purple Lounge will be a great addition to our growing list of impressive destination websites. In particular, it will bring a significant business to our leading website Gambling.com. By combining our marketing expertise with Purple Lounge's operational online gaming experience we hope to create a very profitable business going forward."

In the year to 31 May 2008, Purple Lounge made a pre-tax loss of GBP 476,670 on revenues of GBP 16,472,620. As at 31 May 2008, net asset were (GBP 685,000).

Media Corp has extensive marketing experience in the online gaming sector and a significant portion of existing revenue is derived from gaming operators.

In their press release, Media Corp pledged further mergers and acquisitions in the near future.

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