BARCELONA, Spain -- Private Media Group Inc. (Nasdaq: PRVT) announced today the acquisition of 4 million shares together with an option to acquire another 2 million shares in Horse Creek Entertainment AB (publ), a mainstream content aggregator operating HomeTV (www.hometv.se), the third biggest broadband Video-On-Demand (VOD) platform in Scandinavia.
In November 2007, Horse Creek Entertainment carried out two private
offerings in advance of their planned IPO on a Stockholm Stock Exchange and
Private participated in both offerings acquiring a total of 4 million shares together with a two year option to acquire another 2 million shares at a pre-determined price.
The transactions were carried out through a share swap at an aggregate value of 1 million euro and through this investment Private
controls 17.2% of the shares outstanding. Following Horse Creek
Entertainment's two successful private offerings, its market value is
estimated to be 7 million euro.
Charles Aperia, Chairman of Horse Creek Entertainment AB (publ) commented:
"These two successful offerings guarantee our continued investment in top
quality mainstream content, which plays a central role in our expansion of
HomeTV in Scandinavia and into additional territories. The stake taken by
Private is part of a close collaboration which ensures that both our companies can fully exploit not only the mainstream, but also the adult market by bringing Private's high quality content to mainstream consumers".
Berth Milton, CEO, President and Chairman of Private Media Group, Inc.
added: "The investment in Horse Creek Entertainment is part of a wider
strategic plan to increase our strength in the mainstream broadcast market and we are very excited about the future development of HomeTV".
Mr. Milton continued: "Furthermore, we see a great business potential in combining Horse Creek Entertainment's role as a mainstream content aggregator with our access to 75% of Europe's fast growing IPTV market (1)"
