Subtv and Gym Screen merge to form Media 42

by Maisie McCabe, mediaweek.co.uk 26-Jan-09, 16:05

LONDON - Outdoor digital media owners Subtv and Gym Screen Media have merged to form a new outdoor company, Media 42, in a cash and shares deal worth £4m to the shareholders of the two original companies.

Former Subtv chief executive Peter Miles has taken on the chief executive role at Media 42, which will have combined revenues of more than £3m, while Gym Screen Media's managing director Guy Bucknall will not take a position with the new company.

Miles said Gym Screen Media has a "growing local sales initiative" and Subtv "does well" in national sales and so the two companies are complementary.

Subtv sales director Craig Harris has become the sales director of Media 42, but national sales for Gym Screen Media will continue to be handled by Boomerang and there are no plans to change this arrangement.

Miles said the merger was not part of a move to "rationalise staff", but it will bring "commercial synergies". The two networks will maintain their brand identity and positioning, but production, technology and delivery skills will be combined.

Gym Screen Media operates more than 1,500 digital screens in 270 health clubs across the UK. Subtv claims to reach 33% of all UK adults aged 18 to 24, 80% of all UK students, through its university network.

The two companies will continue to work in their separate offices, but Miles said Media 42 will offer integrated campaigns where appropriate.