Toronto, - Standard Radio Inc., operator of 51 radio stations and a subsidiary of Standard Broadcasting Corp., has bought control of troubled Internet broadcaster IcebergMedia.com Inc. for $1.14 million and is seeking full ownership.
The purchase of 22.73 million shares at five cents each, representing 70 per cent of the dot-com broadcaster, increases SRI's stake to 88 per cent, SRI said Thursday.
It's part of a larger bid that SRI announced in late May, when it offered $1.3 million, or five cents a share, to acquire the rest of Iceberg that it didn't already own.
SRI says it intends to acquire the remaining shares under the same terms. The offer is open until 5 p.m. July 19.
Iceberg streams a variety of audio and video entertainment from its Web site, www.theiceberg.com. It also creates customized corporate audio channels.
Iceberg welcomed the offer when it was first announced and said it could go out of business if the deal collapsed.
Iceberg reported a loss of $7.6 million or 31 cents a share for 2001, compared with a loss of $4.4 million or 30 cents per share in 2000, as the company was hurt by diminished investor interest in companies focused on the Internet.
On the junior TSX Venture Exchange, Iceberg shares (TSXV:YIC) were unchanged early Thursday at four cents each, a 52-week low, compared with their 52-week high of 36 cents.
Newfoundland Capital Corp. and Universal Music Canada agreed to sell their holdings of 5.25 million and 1.7 million shares of Iceberg, respectively, when the deal was announced. Iceberg has 32.6 million shares.
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