PlayNetwork today announced its intent to acquire Channel M, a producer of customized in-store TV networks. The newly combined entity will be branded PlayNetwork and will be focused on selling a comprehensive brand package of music, messaging, video media, systems integration and advertising- and entertainment-related services.
Resulting from the integration of Channel M's assets, PlayNetwork will expand the company's reach to serve more than 185 brands, including 25 global brands, with 65,000 locations in 60 countries.
Lon Troxel, chairman and CEO of PlayNetwork, said:
Today marks a significant day in PlayNetwork's history as we take another major step toward achieving our corporate vision of delivering the total brand experience. PlayNetwork and Channel M share this common goal, and together we help make this vision a reality by combining our complementary music, messaging and video media services with Channel M's rich video content production and advertising services. Combined, we will be delivering total media experiences for the most discerning brands in traditional and non-traditional markets.
PlayNetwork will continue to benefit from the strong backing of current investors — Chartwell Capital Management, Talon Asset Management and Joshua Green Corporation — while adding additional investor interests from Vintage Fund Management, Ascend Venture Group and Intel Capital. Effective upon closing, Darryl Wash, managing partner from Ascend Venture Group, will join PlayNetwork's board of directors. Channel M founders David Teichner and Eric Hebel will join PlayNetwork's executive management team as EVP of business development and Channel M advertising services and SVP of creative media services, respectively.
Peter Lee, CEO of Channel M, said:
Channel M has proven effective at increasing brand awareness, influencing perceptions and driving sales. Our offering, merged with PlayNetwork's powerful music, messaging and video media managed services, establishes a true brand innovator and pioneer in the industry. We are thrilled to have found a partner that will maintain the value of our offering while enhancing the services with their own first class total brand experience.
The company will maintain offices in Redmond, Wash., Sherman Oaks, Calif., New York and Chicago. The acquisition is scheduled to close on Oct. 30, 2009.
