Private Media Group Purchases Mainstream VOD Stock

BARCELONA – Private Media Group Inc. (NASDAQ: PRVT) has acquired 4 million shares in Horse Creek Entertainment AB, a mainstream content aggregator operating HomeTV, the third biggest broadband Video-On-Demand (VOD) platform in Scandinavia.

Last month, Horse Creek Entertainment carried out two private offerings in advance of their planned IPO on a Stockholm Stock Exchange. Private participated in both offerings, acquiring a total of 4 million shares together with a two-year option to acquire another 2 million shares at a pre-determined price.

The transactions were carried out through a share swap at an aggregate value of 1 million euros. Through this investment, Private now controls 17.2 percent of the shares outstanding. Following Horse Creek Entertainment’s two successful private offerings, the company's market value is estimated at 7 million euros.

“These two successful offerings guarantee our continued investment in top quality mainstream content, which plays a central role in our expansion of HomeTV in Scandinavia and into additional territories,” said Charles Aperia, chairman of Horse Creek Entertainment. “The stake taken by Private is part of a close collaboration which ensures that both our companies can fully exploit not only the mainstream, but also the adult market by bringing Private’s high quality content to mainstream consumers.”

“The investment in Horse Creek Entertainment is part of a wider strategic plan to increase our strength in the mainstream broadcast market and we are very excited about the future development of HomeTV,” said Berth Milton, CEO, president and chairman of Private Media Group. “Furthermore, we see a great business potential in combining Horse Creek Entertainment’s role as a mainstream content aggregator with our access to 75 percent of Europe’s fast growing IPTV market.”