NEW YORK: PR Newswire (PRN) has acquired US Newswire (USN) from Medialink in order to better serve its public affairs clients. The initial price was $19 million.
"Lots of federal agencies use us, yet we don't have a dedicated sales force [nor a] dedicated product management for it," said Dave Armon, COO of PRN. "There's increasing interest globally."
Bill McCarren, president and founder of USN, will remain with Medialink as an operating officer. Brian Taylor, USN's VP of sales and marketing communications, will lead the integration. USN will likely retain its name.
Laurence Moskowitz, president and CEO of Medialink, said it could now invest more in its Teletrax offering and Internet-based video solutions. Medialink could stand to receive an earn out up to $4 million more.
Although Medialink's Q2 revenue from Teletrax rose 42% over the same quarter last year, it incurred an overall net loss of $1.6 million over the same period.