Legend Media (LEGE.OB) is a rapidly growing advertising business focused on the Chinese radio market. Legend Media was founded in December of 2007 and is headquartered in Beijing China. Through its wholly-owned subsidiary, Well Chance Investments, the company is building its foundation through the rapid acquisition of ad agreements with China’s leading radio stations.
Legend Media is acquiring comprehensive and exclusive rights to sell ad space for a growing number of China’s leading radio systems. The company obtains advertising blocks through direct relationships with the PRC-controlled provincial and national radio stations, as well as through the acquisition of existing businesses owning radio advertising rights. Legend Media’s first two acquisitions allow them to reach over 30 million people in China. In order to fund such future purchases, earlier this month Legend Media announced a $5 million private placement with an institutional investor.
China has a radio audience of over 500 million people and growing. There are more and more autos in China and people commuting to work. Substantial increases in radio listening time behind the wheel have driven the demand for Chinese radio ad space, resulting in higher ad rates and increased margins. Legend Media is well positioned in this growth area. The company’s first-mover advantage in China’s deregulating radio advertising space should allow them to win long-term contracts in many provinces throughout China.
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