Toronto-based, publicly traded Internet and technology firm itemus has acquired New York-headquartered Shooting Gallery Inc. in exchange for 71 million shares of itemus common stock valued at roughly $35 million to $40 million.
The purchase represents an expansion of the companies’ original deal (SHOOT, 11/10/00, p. 1). Per that Oct. 31 arrangement, itemus was to have garnered an 80 percent stake in just the services part of The Shooting Gallery. Those service businesses consist of commercial and music video house Shooting Gallery Productions (SGP), New York; Shooting Gallery Interactive, New York, which offers a range of new media client services; and the Gun For Hire production service and post facilities, with operations in New York, Los Angeles, Miami, Toronto and Vancouver, B.C.
But now, itemus has bought all of The Shooting Gallery, including its content creation, development and distribution businesses spanning TV, features and music. Per this deal, Larry Meistrich, CEO of The Shooting Gallery, will be named to the itemus board of directors. The Shooting Gallery management will remain the same under itemus’ ownership, according to Meistrich. For example, Tim Clawson continues as president/executive producer of SGP, and executive VP of Gun For Hire.
Meistrich told SHOOT that SGP figures to benefit from itemus on several levels. He noted, for instance, that in recent months itemus has also acquired research/strategy firm Digital 4Sight and high-end software development company NAME. Both NAME and Digital 4Sight are based in Toronto. Digital 4Sight’s clientele are within the upper echelon of the Fortune 500 companies. Digital 4Sight’s research often entails defining the shape that new-media advertising will take for leading corporations and brands.
"Digital 4Sight has a broad view of where advertising is going, and that can only help [SGP] meet the needs of its clients," related Meistrich, adding that NAME’s endeavors frequently involve developing software that can facilitate clients’ new media plans.
Jim Tobin, president/CEO of itemus, said that the combined company resulting from the acquisition is well positioned "to be a leading provider of rich content, technology and strategy."
Meistrich stated that "this relationship leads to more successful, profitable projects as media and technology converge, taking our clients one step closer to the most comprehensive solutions."