LOS ANGELES -- One of the industry's more prominent in-pump television networks is making moves on a "static" ad company called Go Media, a division of HFT Management Inc., for $2 million in cash.
Convenience TV Inc. has announced the signing of a letter of intent with HFT to buy Go Media, which focuses on advertising outside the home in three main areas: transit advertising, billboards and convenience stores throughout the United States.
"Convenience TV has the capability and expertise to develop and support the project," Norman Knowles, president of Venice, Calif.-based Convenience TV, said. "Our network not only connects advertised products directly to the customer through our system of convenience-store locations, but can also present valuable background content to enhance the knowledge of the customer."
Craig Heard, president of HFT, Hackettstown, N.J., said, "We have thousands of locations under contract and this opportunity melds a successful static-advertising business with an expanding digital-signage system for the benefit of both."
HFT operates under the name Gateway Outdoor Advertising, promoting the use of premium-display advertising posters at the entrances of independent c-stores nationwide. Over the past 10 years, Gateway has contracted with more than 50,000 c-stores for advertising on exterior walls and windows, as well as inside the stores. Gateway was founded in 1937 when its first billboards were erected in Pittsburgh. In 1990, New Jersey businessman Craig Heard acquired Gateway. HFT has 13 sales offices and c-store operations throughout the country to serve its clients in the United States and Canada.
Convenience TV is focused on the c-store industry and provides clients with an "in-location" TV network. The network is designed to deliver both entertaining content and targeted advertising on a demographic basis to each retail location. In addition, the network delivers promotional advertising tied to products within the retail location. The programming can be updated quickly and is tailored to help increase sales, provide entertainment and reinforce brand identity.
The terms and conditions are outlined in an asset purchase agreement to be completed, on approval of financing, on or before December 31, 2011.
In conjunction with the closing of the purchase agreement, the parties will sign an agreement contracting HFT to manage the static advertising business, which will continue to operate as Go Media.
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