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26 July, 2004: YooMedia plc, the interactive media group, is to buy the entire issued share capital of Whoosh Group Limited, a mobile phone marketing and technology company. Whoosh is a leader in the use of SMS technology in brand marketing campaigns and for television quiz shows such as 'Who Wants to Be a Millionaire'.
Whoosh's RTMS (Real Time Messaging Service) platform allows for high SMS throughput and uniquely records the exact time that viewers, regardless of network, have sent in their texts. This time-stamping technology is the de facto SMS standard for quiz shows and has also been used by the BBC for its 'Test the Nation' series. It has also been used by big brand-owners, such as Unilever and Nestle, for interactive marketing of products.
Whoosh's business is complementary to YooMedia's existing Trigger TV operation, which has patents that enable synchronous interactivity between broadcast radio and television programmes. Trigger TV's technology has been trialled successfully on Turner Broadcasting's Cartoon Network TV channel and on BBC Radio 5 Live.
The consideration for the acquisition is the issue of 1.75 million shares in YooMedia plc to the vendors. These shares will be subject to a lock-in for a period of 12 months from the date of issue. In addition, there is an earnout provision, which could entitle the vendors to UKŁ350,000 payable in cash or shares, at YooMedia's option, dependent on Whoosh achieving minimum revenues of UKŁ400,000 in the second half of the financial year and earnings before interest, taxation, depreciation and amortisation of UKŁ50,000 for the same period.
Application has been made for 1.75 million Ordinary Shares to be admitted to trading on AIM and it is expected that admission will occur on 30 July 2004.
Whoosh, made losses of UKŁ499,730 on revenues of UKŁ318,071 in the year to 31 December 2003. YooMedia's directors believe that the synergies and other opportunities arising from integrating it with Trigger TV will allow the combined operation to become earnings enhancing within a short timeframe.
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