Maurice Saatchi’s new media company, Megalomedia, has taken a 10 per cent stake in Webmedia Group in a 400 000 cash and shares deal.
Megalomedia has issued 222 000 new shares in part payment for the stake and has an option to purchase a further 10 per cent of the Website design and Internet services group. A cash payment of 200 000 completes the initial deal, which allows
Webmedia to work closely with Megalomedia to expand its involvement in new media.
Webmedia co-founder Steve Bowbrick says the group is healthy and the cash-raising move was triggered by expansion plans. The group encompasses Web media which specialises in Website design; Netnames, an Internet domain name registration service; and Webcontent, an Internet content provider. Webmedia also has minority interests in Internet specialist Webdevelopment and US global e-mail directory service provider Big Foot.
Bowbrick says the Webmedia Group was in talks with six other companies, but that Megalomedia’s working strategy and personality was similar to that of Webmedia.