Press Release in accordance with CONSOB Regulation No. 11971/1999 and subsequent modifications
Dada acquires a stake in Music Box, leading interactive music satellite channel in Italy
Florence, July 9, 2008 – Dada S.p.A. (dada.dada.net), international leader in Community and Entertainment services via web and mobile, as well as in Domain, Hosting and advanced online Advertising solutions, today acquired a 10% holding in the share capital of Giglio Group S.p.A., owner of Music Box, leader in the music television channel segment on satellite platforms in Italy.
Giglio Group, founded by Alessandro Giglio, current CEO and majority shareholder, produces and broadcasts the on-demand music television channel “Music Box”, based on a web and mobile interactivity model. This channel, currently available through the Sky Italia package (717 channel), is the solid leader in the music channel category in the Auditel Pay Tv ranking.
This acquisition, which is part of the wider consolidation strategy of the Dada Group in the music content segment aimed at becoming one of the main player in the online music market, was finalised today for a total consideration of Euro 750 thousand. At completion Dada was granted call options to further increase its stake up to 51% or 100% of the capital, to be exercised at the sole discretion of Dada within two years from today’s closing date; Dada will also have a put option upon the stake acquired today, exercisable after the approval of the 2008 annual accounts, subject to certain conditions.
An industrial agreement for a period of 2 years was also signed between Dada and Giglio Group which grants Dada the right to acquire advertising on the Music Box channel at preferential conditions and the status of preferential supplier for web and mobile services of the Giglio Group.
In the fiscal year 2007 the Giglio Group recorded turnover of approx. Euro 6.5 million and the Ebitda was equal to approx. Euro 1.2 million; for the fiscal year 2008, the management of the company forecasts a growth in both revenues and marginality.
“Compared to the traditional music channels, Music Box contains interactive features which replicate, in the broadcast field, those music and community content peculiarities which are the milestone of our offer” commented Paolo Barberis, Chairman of Dada. “In line with the launch of the Music Store, the Dada Group will benefit from Music Box as an additional distribution channel for its products and services”.
