Kamis, 06 November 2008

NewsCom Opts out of Digital Railroad Asset Acquisition

Newscom, reportedly the company that submitted their letter of intent to acquire the assets of Digital Railroad (From Bad to Better - Likely Acquisition of DRR Assets By Newscom A Good Thing, 11/1/08), has taken themselves out of play as a party interested in the final disposition of those assets. "We looked at it long and hard", said Bill Creighton, Managing Director of Newscom. "We were the company that had expressed an interest, but after we looked at the numbers - the cost to operate the system, and the fact that many of the subscribers had left, it just wasn't workable", said Creighton.

Newscom was the one company who had expressed an interest in paying cash for the assets. Another rumored company was proposing an equity stake, but that has, to date, remained a rumor. "We're no longer interested in Digital Railroad. We wanted to be, but it just didn't make sense from a business standpoint, and that's what this is about - business."
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