Global Traffic Network Pulls Out Of UBC Deal
October 21, 2008 at 5:30 AM (PT)
GLOBAL TRAFFIC NETWORK has terminated its letter of intent to buy UBC MEDIA GROUP PLC's commercial division in the U.K. GLOBAL is asking for the return of its £350,000 ($600,000) deposit, but the parties continue to discuss a possible deal and GLOBAL will be prohibited from soliciting UBC's clients until APRIL.
GLOBAL Chairman/CEO/Pres. WILLIAM L. YDE III said, "The UNITED KINGDOM radio market continues to experience very trying conditions which have led to a deterioration in the performance of UBC's commercial division. Although we remain confident about the long-term prospects for expansion in the UNITED KINGDOM and are interested in an acquisition that reflects the realities of the current market, we will continue to be prudent with our shareholders’ money. While UBC has announced that its turnover is down approximately 15% for the quarter ending SEPTEMBER 30th, 2008, we expect our quarterly revenue to be up approximately 45% over last year."