destra assets to merge with prime

Story from today's Australian

http://www.australianit.news.com.au/story/0,24897,23591500-15306,00.html

PAUL Ramsay's Prime Media Group will merge key assets from online and content company Destra with its iPrime arm to create a single digital group it can market to advertisers.

The new division will incorporate iPrime's video-based community websites, Becker Group assets such as internet television website Moonlight TV, and parts of Destra, including branded content business Brand New Media, DVD distributor Magna Pacific and niche magazines and websites.

PMG took control of Destra this week after doubling its stake to 44 per cent, removing the board (including founder and chief executive Domenic Carosa) and appointing David Gordon, from advisory firm Lexicon Partners, as executive chairman.

Destra lost $900,000 through the collapse of stockbroker Opes Prime, while Mr Carosa's shareholding in the company was slashed. Prime, the Seven Network's regional TV affiliate, said Mr Gordon would conduct a strategic review of Destra.

PMG chief executive Warwick Syphers was the only Destra director to survive the boardroom cull. He said Prime would stick with advertising-based models rather than pay-per-view but planned to expand its ability to develop digital brand-funded content.

"The challenge for us is to integrate this suite of online assets, which are in disparate corporate structures at the moment," Mr Syphers said.

"PMG has iPrime. Destra controls its various properties, and Becker, which we control, has Moonlight TV.

"Some kind of Prime digital media strategy will emerge."

Media veteran Sam Chisholm said he had worked with MrGordon in a variety of roles, including bringing radio broadcaster Alan Jones across from 2UE to 2GB. "David Gordon is a very astute lawyer and an experienced dealmaker," according to MrChisholm.

Several digital media executives said iPrime appeared confused, and the group was unlikely to roll out the 200 community websites following the Canberra model launched last year. Sites for Wollongong and Tamworth were due to have been launched by early 2008.

But Mr Syphers said the rollout was on schedule and the strategy on track.

He said out-of-home digital media company Prime Digital Media -- in which PMG has a 40 per cent stake -- was unlikely to be included in the integrated strategy.

Last year Prime took a 76 per cent shareholding in entertainment group Becker.

ENDS



Is iPrime generating any value? And what does this mean for Destra's SP?