Converting media credits

From: Cliff Kurtzman <moderator_at_o-a.com>
Date: Tue 22 Jul 2003 11:07:17 -0500

During the Internet bubble, large media companies purchased
equity interests in a considerable number of dot.com startups
using "media credits" instead of hard cash. These media
credits allowed the owners of the credits to buy advertising
at very substantial discounts.

Then many of the dot.com's went bankrupt, and these
media credits became acquired by third parties through
the bankruptcy estates.

For example, see the news service story:
Media Companies and Dot.Com Ad Credits
http://www.jaffeassociates.com/jlns/psn-adm-001.html

I have been approached by one such organization that has acquired
hundreds of millions of dollars of these media credits (TV,
radio, print, Internet). The credits are fully transferrable.
As examples, I've listed five of the inventory items below my
signature.

The company that contacted me did so looking for assistance
in finding those that are actively engage in buying this media,
so that they can sell them the credits, and thereby
significantly reduce the costs for the agency or end client
that is buying the media.

While I am quite experienced and well connected regarding
issues related to the buying and selling of online media,
my experiences regarding offline media are often not nearly
as robust. I could benefit from the expertise of those in
this group.

What would be reasonable strategies for making relevant
parties aware of the opportunities?

Does the company that contacted me really appear to own
something that is truly unique/valuable, or am I
going to discover that there are so many of these credits
floating around that everyone along with their third cousin
twice removed has something similar to offer?

--Cliff

Cliff Kurtzman
Moderator
Online Advertising Discussion List
http://www.o-a.com/
(281) 480-6300

Radio and Television Air Time
Market, National
Network TV (NBC, ABC, CBS, FOX, WB, UPN)
Inserts, 12x30, 12x60, 6AM to midnight 4 days a week, 45 weeks
Length, one year
Appraised $179,887,554.00

Radio and Television Air time
Market, national
Spot Radio, 500 Clear Channel Comm., top 35 markets
4x30, 4x60, 6 AM to midnight, 4 days a week 45 weeks
Length, one year
Appraised $54,363,688.00

Cable Television
(TNT, WTBS, ESPN, USA, Lifetime, Discovery (top 35 markets)
18x30, 18x60, 6AM to midnight, 4 days a week, 45 weeks
Length one year
Appraised $44,579,220.00

Local Cable with Radio, Print and Outdoor
National (subject to availability)
National Radio-Metro shadow Traffic - top 50 markets equally
22,410 spots, 10,15,30 and 60 seconds each
Length one year
Appraised $88,200,000.00

National Business Magazine
Rate Card Value USD $350,000,000.00
Issue Date 12-28-00
Term-10 years
Media Type-National Magazine Advertising (Ex. Business Week, Fortune,
Entrepreneur, etc,) Top 50 markets
1456 pages
Length- one year
Appraised $64,677,563.00



Received on Tue Jul 22 2003 - 11:07:17 CDT