As the days lead up to Oscar night, when the whole world focuses its attention on who looks best on the red carpet, we focus on a media company that is going places, and recently took on a superstar photographer to help it get there.
Miami-headquartered CMG Holdings, Inc. (OTCBB:CMGO), a full-service marketing communications holding company, announced in mid-February it had inked a deal with international fashion photo icon Hugrun "Huggy" Ragnarsson for U.S. representation. Among her credentials, Huggy -- active in fashion centers like London, New York, Miami and L.A. -- also judges TV shows like Britain’s Next Top Model, and is being approached to develop a pilot for a series here in the U.S.
CMGO, with marketing and sales offices in New York, Chicago and Tucson, was formed in 2008 to acquire leading marketing companies with synergistic capabilities and services. Among its major coups are a top-tier marketing and production agency called XA, which numbers several Fortune 50 and 100 clients, including Disney, HBO, Goldman Sachs, UBS and Tiffany & Co. XA’s revenues would have most folks sitting up and taking notice, the company having earned $9.8 million in 2006; $9.3 million in 2007; $8.8 million in 2008.
Another major acquisition for CMGO, AudioEye, which came into the fold last fall, has developed patented and patent-pending Internet accessibility, content publication and distribution software, enabling conversion of any media into accessible formats and allows for real-time distribution to end users via any network connected device. The author of AudioEye’s patents co-invented Modavox (OTCBB:MDVX) patents, which are now valued at $525 million.
What else makes AudioEye shine is its sterling client list, which includes lawmakers in the U.S., as well as in individual states like Arizona and New Mexico, the New York Times and Major League Baseball. What’s more, AudioEye’s Accessibility software meets the standards and criteria under the Americans for Disabilities Act (a $2.8-billion market). The software is leased by an annual subscription fee and a monthly usage charge.
CMGO says its mission is to build a platform of exceptionally profitable companies that deliver customer solutions in the area of traditional and new media marketing services, commercial rights, and talent management.
This is a glittering and aggressive company, reaching into various areas of management and entertainment. Last October’s acquisition of AudioEye coincided with CMGO’s stock price reaching its 52-week peak of 19 cents a share, after bottoming out at eight-10ths of a cent last March, when the bright lights of the equity markets were a tad duller.
These days, with Huggy now in the fold, the stock is still a bargain, at 11 cents a share, perhaps at just the price folks would like to "snap" it up.
