Source: PR Newswire Association
PR Newswire, the global leader in commercial news distribution, announced today its acquisition of U.S. Newswire from Medialink Worldwide Incorporated (Nasdaq: MDLK) for $19 million and an earnout of up to $4 million.
By purchasing Washington, D.C.-based U.S. Newswire, PR Newswire will significantly expand its customer base in the government and public interest sectors and gain improved distribution channels to reach media and online audiences.
"Since its inception, U.S. Newswire has done an exemplary job serving the needs of both the media who cover politics and public policy as well as PR professionals both inside the Beltway and beyond," said Dave Armon, chief operating officer of PR Newswire. "We are committed to building on this legacy and providing additional technology and product innovation expertise to U.S. Newswire customers. We are pleased to welcome U.S. Newswire staff and customers into the PR Newswire family."
U.S. Newswire Vice President of Sales & Marketing Communications Brian Taylor will join PR Newswire and lead the integration. Co-founder William McCarren will assume a new role within Medialink, according to Armon.
U.S. Newswire, which was established in 1986 and acquired by Medialink in 1999, became the first news release distribution vehicle dedicated solely to servicing the needs of public information officers within governmental agencies, public interest groups, not-for-profit organizations, civic groups, unions, colleges and universities, cultural organizations, research organizations, political organizations and foreign embassies.
"We are very pleased to complete the acquisition of U.S. Newswire and augment our existing offering in the important policy news market. We continue to see attractive opportunities for the further development of PR Newswire both through more acquisitions and continued organic development in the U.S. and Worldwide," said Charles Gregson, chief executive officer, PR Newswire.
"This is truly a win-win transaction for both parties," said Laurence Moskowitz, president and chief executive officer of Medialink. "PR Newswire acquires an incomparable brand to continue to expand its distribution client base and service portfolio, while Medialink generates the capital necessary to fully develop its global Teletrax video tracking service and exploit Internet- based video opportunities for its media communications business."
Touting a distribution channel onto the highly trafficked site Yahoo! Politics, among other strong service attributes, U.S. Newswire routinely transmits breaking news, speeches, press conference advisories and other content for the American Civil Liberties Union, the Federal Drug Administration, the AFL-CIO, National Association of Realtors and the Mayo Clinic and thousands of other organizations.
PR Newswire has rapidly expanded its public interest business over the past decade with customers such as NASA, the World Health Organization, the World Economic Forum, and the United States Postal Service regularly relying on PR Newswire to communicate their breaking news and information. Among its unique selling propositions in the government and policy marketplace is the award-winning PR Newswire for Journalists web site, which allows journalists and influential bloggers to self-select among more than 500 news categories.
"The distribution power of U.S. Newswire, including its agreement with Yahoo! Politics, combined with the vast media network PR Newswire reaches through its numerous channels including PR Newswire for Journalists, will be a powerful service upgrade for customers of both organizations," said Armon. "And, the media will benefit from the extensive pipeline of content the combined organizations will offer. The integration of this content will effectively 'close the loop' for many reporters such as those covering the drug industry who will now receive news from the majority of the top pharmaceutical companies and the Federal Drug Administration (FDA) from one source, PR Newswire."