According to the Global Household Subscription Forecast, 2007-2011, by Ben Piper of Strategy Analytics, dated July 30, 2007, nearly half of all North American households had broadband Internet access in 2006, with broadband Internet penetration expected to reach 73% by 2010.

In addition, according to Market Analysis: U.S. Broadband Services 2006-2010 Forecast published by IDC, dated September 2006, IDC estimates that the average speed of downstream access for a broadband connection, the speed at which an end-user accesses media files, doubled from the third quarter of 2004 to the same quarter of 2006.

The proliferation of broadband Internet connections has provided an increasing number of users with the capability to access rich media content efficiently.

The proliferation of devices that are capable of connecting to the Internet, such as MP3 players, mobile phones and videogame consoles, has given users more control and flexibility over how and where they access and use media content from the Internet.

The Company may also focus on traditional media businesses, including motion picture exhibition companies, television and radio broadcast companies, print media publishing companies and traditional content libraries.

The Company has not established specific criteria that would trigger its consideration of businesses outside of the digital media sector. In addition, the Company intends to direct its search toward digital media businesses in the United States, but it would also consider businesses outside of the United States.

The Company is not presently engaged in, and it will not engage in, any substantive commercial business for an indefinite period of time following the offering.

The Company does not have any specific business combination under consideration. Neither the Company nor any related party have, directly or indirectly, nor has anyone on its or any such party’s behalf, contacted any prospective target business or had any discussions, formal or otherwise, with respect to such a transaction.