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Murdoch buys Heritage Media

Monday 17 March 1997 19:02 EST
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New York -Rupert Murdoch's News Corporation is spending $1.35bn (pounds 850m) to acquire Heritage Media, the Dallas, Texas-based specialist in in-store marketing and operator of several television and radio stations across the US, writes David Usborne.

News Corp insisted, however, that its interest in Heritage was its marketing assets which would considerably bolster its own. The broadcast units - six network-affiliated television stations in prime US markets and 24 radio stations - will be sold after the deal is closed.

"Heritage's marketing services operations are a great complement to our existing FSI [free standing inserts] business," Mr Murdoch said in a brief statement in New York.

News Corp has offered to acquire Heritage for stock valued at $754m. A subsidiary of News Corp will be the buyer of Heritage and will pay the equivalent of $20.50 for each of Heritage's 38.6 million outstanding shares.

In addition, News Corp has agreed to take on about $600m in Heritage's outstanding debt. The acquisition is still subject to approval by Heritage shareholders and federal regulators.

The principle marketing arm of Heritage is Actmedia, which provides in- store marketing support for 40,000 supermarkets and pharmacies world- wide. Its direct marketing unit is DIMAC Marketing Corp.

Heritage was targeted by as a perfect fit with News Corp's US-based subsidiary, News America FSI, which publishes free-standing promotional material that is inserted into newspapers and magazines.

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