FORT LAUDERDALE, Fla., April 10, 2012 /PRNewswire/ -- Star Entertainment Group, Inc. (OTC: SETY.PK) today announced the signing of a Letter of Intent to acquire Tranzistor Systems Inc., a company engaged in mobile music entertainment products and services including internet radio, fan applications, and eCommerce products.
Tranzistor's product and technology have been assessed in excess of $10 million and additionally have a number of products and services under development. The Company projects Tranzistor annual revenues to reach $87.6 million by 2014 and in excess of $231 million by 2016, as Tranzistor's service set expands internationally.
Tranzistor's product line includes mobile internet radio combined with fan-based games and music applications that are wrapped around a sophisticated loyalty program. An estimated 89 million Americans listened to online radio last month, and 56% have listened to an online AM/FM station, or pure play internet radio station. That is a number that should continue to grow for the next several years . . . a number that is up from 69 million monthly listeners a year ago. In fact, the online audience has doubled every 5 years since 2001, according to Arbitron / Edison Research.
The transaction to be valued in excess of $10,000,000 will be purchased through an equity-building issuance of Preferred Stock and will create no debt for the Company or require the issuance of Common Stock. The Company is currently completing its due diligence and conducting a complete technology and software audit and accessing the planned service rollout schedule. It is anticipated that the closing of the transaction will be completed within the next 30 days.
The Company will soon release its new product and marketing web sites and roll-out schedule.
The preferred share acquisition, which is anticipated to close within the next thirty (30) days, will coincide with a complete change of operational focus and an entire replacement of management, including officers and directors.
Additionally, the Company has commenced preparation of disclosure and financial information required by the OTC Disclosure Service and expects its trading status upgrade to "Current Information" in a timely fashion.
About Star Entertainment Group
Star Entertainment Group, Inc. is an independent investment, management, and holding company focusing on new media and digital content, delivery and monetization of multi-dimensional Online Customer Communities through the integrated use of online; interactive, real-time Internet television broadcasting; Internet radio networks; participatory mobile applications; proprietary search capabilities and intuitive advertising platforms. The Company will operate as a central hub, utilizing our strengths in M&A, capital and resource management and will proactively minimize risk by teaming with experienced technologies operators, leveraging their experience and knowledge.
About Tranzistor Systems Inc.
Tranzistor Systems is a consumer technologies company developed to address the independent music, social media and entertainment markets and is a home for artists, bands, fans and indie labels to cross-pollinate and create multiple revenue streams. With our internet radio and discovery platforms Tranzistor will be the first interactive company and brand to widen the demographic for fans, indie labels and independent artists. Tranzistor will focus on developing and monetizing their content.
This information includes certain "forward-looking statements." The forward-looking statements reflect the beliefs, expectations, objectives and goals of the Company management with respect to future events and financial performance. They are based on assumptions and estimates, which are believed reasonable at the time such statements are made. However, actual results could differ materially from anticipated results. Important factors that may impact actual results include but are not limited to commodity prices, political developments, legal decisions, market and economic conditions, industry competition, the weather, changes in financial markets and changing legislation and regulations. Matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include but are not limited to risks and uncertainties associated with the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company. Forward-looking statements are intended to qualify for the safe harbor provisions of Section 21E of the Securities and Exchange Act of 1934, as amended.
Star Entertainment Group
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SOURCE Star Entertainment Group, Inc.