UBU TV
“The Urban, Multi-Cultural
Media Company”
Investment Opportunity
Walter Morgan
UBU TV Network
9601 Wilshire Blvd., Suite 1117
Beverly Hills, CA 90210
1-310-748-8580
www.ubutv.com
1
UBU TV: Executive Summary*

UBU TV is launching a positive, progressive,
urban, multi-cultural TV network targeting the
African-American, Latino-American, and
multi-ethnic market.
 UBU TV, which will be the best urban, multicultural TV network in the world, plans to
debut as a fully reporting, audited, publicly
traded company within the next 120 days.
Under a “corporate friendly” float of UBU TV
stock, initial investors will receive Rule 144k
restricted stock at a discount to market.
 2nd Round investors should expect a sizable
return on investment after one year.
2
UBU TV: Mission Statement

UBU TV will be the pre-eminent, urban, multicultural television network and website that
owns and broadcasts content that chronicles
the depth, breadth and beauty of the
American urban culture and history.
 UBU TV will be the best national rep firm for
independent TV stations and networks in the
urban marketplace, delivering advertisers,
sales, programming and marketing
opportunities to its clients.
3
UBU TV: Demographics

In July 2007, there were 40.7 million AfricanAmericans (13.5% of the U.S. population). In
2009, African-Americans had a purchasing
power of $913 billion, which would make it
the world’s 13th largest economy.
 In July 2007, there were 45.5 million LatinoAmericans (15.2% of the U.S. population).
75% of Latino-Americans speak English.
 African-Americans alone account for nearly
25% of annual US television consumption.
 Out of 400+ TV networks, only two direct
competitors--BET and TV One--exist in our
niche market, less than 0.5% of TV networks.
4
State of Urban Television
 There
is no major, television network
with majority, African-American
ownership.
5
State of Urban Television
 There
is no significant library of film
and TV properties owned by AfricanAmericans.
6
State of Urban Television
 There
is no major TV network that
broadcasts positive images or
quality programs about AfricanAmericans, and the other ethnic
cultures of urban America.
7
State of Urban Television
 There
is no major, urban-oriented,
African-American-owned:
theatrical film studio;
film distributor; or,
internet company,
representing the interests of the large,
African-American market.
8
State of Urban Television
 BET,
which sold for $3.2 billion to
Viacom, broadcasts primarily
music videos; cheap, stand-up
comedy; and paid programming.
9
State of Urban Television
 Only
one small, Latino-oriented
TV network broadcasts in English.
10
UBU TV’s Competitors

Black Entertainment Television—which is no
longer minority-owned, sold for $3.2 billion. It
offers primarily cheap, low quality programs
with little to none long-term or international
appeal.

Remaining competitors are start-ups:
TV One
Black Family Channel (aka MBC)
UATV, Si TV & Hip Hop Networks
11
5 Forces of Industry Analysis
AFRICAN-AMERICAN TELEVISION NETWORKS
Barriers To Entry
High
Lack of Expertise
Lack of Resources
Suppliers
Weak Force
Programmers
Abundant Urban Talent
Competition
BET and others
Poor programming
Inferior business models
Buyers
Blacks and Cable MSOs
Underserved, large niche
Strong Demand
Threat of Substitutes/
Technology
Weak Force
Internet
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3 Winning Generic Strategies

Low Cost Producer Strategy
 Differentiation Strategy
 Niche Market Strategy
UBU TV is pursuing a niche market strategy by
pursuing and targeting young, multi-cultural
Americans, African-Americans and Englishspeaking Latino-Americans who have been
historically invisible to and excluded by the
400+ US TV networks.
13
UBU TV: Competitive Strategy

Maintain low risk/low overhead/low cost
structure (matching revenues with expenses)
 Pursue parallel distribution channels (digital
cable, satellite, telecom, and independent TV
companies)
 Broadcast quality programming for a budget
 Develop intellectual properties and franchises
 Execute strategic business plan for TV & web
 Pursue alliances with strategic partners
(distributors, advertisers, talent and media)
 Go public and obtain NMSDC certification
14
UBU TV: Overview

UBU produces, distributes and finances
quality, low-budget films.
 UBU boasts a top management team in the
areas of: film and TV production, casting,
distribution, development, and marketing.
 UBU is a National Minority Suppliers
Development Council (NMSDC) Company
that will benefit from corporate partnerships.
 UBU will exploit its ownership of having both
a studio and an urban TV network (UBU TV)
to achieve the goals of its shareholders and
clients across myriad, revenue streams.
15
UBU TV: Resources

Ownership of a full studio (pre-post
equipment, cameras, lights, trucks, etc.)
 Leading Hollywood Casting Directors
 Leading Hollywood Producers
 Low-Cost Film Producer in Hollywood
 Top Fortune 100 Minority Supplier Consultant
 Specific Hollywood Expertise & Relationships
 As a public company, UBU TV intends to use
its stock to acquire key strategic acquisitions
and talent to execute niche market strategy in
urban media (television, film and internet).
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UBU TV: Quality Film-making
Representative Film and TV projects that
UBU’s Management has been involved
with over the years:
“Do The Right Thing,” “Malcolm X,”
“Boycott,” “The Hurricane,” “The
Temptations,” “The Simpsons,” “King of
the Hill,” UATV, Hispanic TV Network
and AIN TV Network….
17
UBU TV: Revenue Streams*
1)
2)
3)
4)
5)
6)
7)
8)
9)
Advertising Sales
Corporate Sponsorships
Direct Response Revenues
Production
Network License Fees
Merchandising and Licensing Revenues
Distribution Fees (Domestic & International)
Multi-Cultural Marketing & Consulting Fees
Business Development Unit Income
18
UBU TV: Over 150 Years of
Entertainment Experience









President/CEO: Walter Morgan
Chief Financial Officer: Carl McManus
Producer: Preston Holmes
Head of Production: Roger Mende
Head of Prod’n, East Coast: Greg Ferguson
Producer, Casting: Robi Reed-Humes
EVP, Distribution: Curtis Symonds
VP, Development: Cheryl Morgan
VP, Network Operations: John Trigg
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Biography: Walter Morgan,
President and CEO

Co-Founder & President, UATV Network
 Board of Directors, Hispanic TV Network
 President/CEO, AIN TV Network
 Film Producer
 Entertainment Agent & Manager
 Studio Executive (20th Century Fox)
 Harvard MBA and Princeton BA
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Specific Experience of CEO &
Publicly Traded TV Networks

Co-Founder & President, UATV Network:
 Board of Directors, Hispanic TV Network:
 President/CEO, AIN TV Network:
All companies went public through reverse
mergers and created $ millions for initial
investors in these once-privately held
companies. UATV & HTVN were start-ups.
21
Specific Experience of CEO in
Publicly Traded TV Networks
Company
& Symbol
UATV
URBT.ob
HTVN
HTVN.ob
AIN
AINI.bb
Annual
Stock
Revenues Price per
Share
$238,000 Hi: $2.00
Lo: $0.01
$600,000 Hi: $22.00
Lo: $0.01
$200,000 Hi: $1.00
Lo: $0.10
High
Market
Cap
$60 million
$1.5 billion
???
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UBU TV: Board of Advisors

Len Grossi, former
Pres. Sony Television &
UPN
 David Pritchard, former
Pres/CEO, Film Roman
 Robert Luke, President,
Market Development
Partners
 Reggie Williams,
President, Procurement
Resources, Inc..
 Marc Krigsman,
General Manager,
Primedia Productions

Michael Edwards,
President, Premiere
Attractions
 Derek Ferguson, CFO
Bad Boy Entertainment
 Roger Mende,
President, Global Lion
Studios
 Robin Bugbee, Owner,
Bugbee & Associates
 David Brugnone,
Shalom TV
23
UBU TV: Programming Grid
 (Available
Upon Request)
24
UBU TV: Financial Pro Forma
 (Available
to Qualified Investors Only)
25
UBU TV: Milestones
 Completion
of Deal for Public Company:
October 1, 2008;
 Issuance of Public Stock Ticker:
1st Quarter 2010;
 Launch of UBU TV Network:
2nd Quarter 2010;
 Unrestricting
of Public Stock:
1st Quarter 2011.
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UBU TV: Exit Strategy Comps
Network/Exit Strategy
UBU TV (go public)
TV Households
???
Value (Sold)
???
BET (Viacom bought)
62 million
$3.2 billion
Telemundo (NBC
bought)
18 million
$2.7 billion
Speedvision
(Sold to Newscorp)
40 million
$0.8 billion
AIN, HTVN and UATV
All 3 Under 1 million
(Reverse Mergers)
Never profitable;
mismanaged; negligible
revenues
All 3 never made profit,
but made millions for
their investors and
shareholders
27
UBU TV: Exit Strategy

UBU TV actually begins with its primary, exit
strategy: going public as an OTCBB
company, so as to make its shareholders’
investment more liquid and more profitable,
while also adding value to the company.
 UBU TV will then have access to the private
and public capital markets, a national network
of market makers, financial public relations
firms and a “corporate friendly” float.
 UBU TV’s secondary exit strategy is to add
sufficient value to the company so as to be
attractive to larger media companies who like
to acquire media companies and brands.
28
UBU TV: The Deal

Invest at a 62.5% discount to market value
(i.e., 75 cents on the dollar) for UBU TV stock
to be restricted for one year after “going
public.”
 Within approximately 120 days, UBU TV will
“go public” and have a national network of
market makers and public relations firms
promoting and/or trading its stock. Each UBU
TV milestone (e.g., launch, key signings,
revenues or profits generated, strategic
alliances announced, acquisitions made,
press releases, etc.) can and should have a
positive impact on UBU TV stock.
 Initial investors should realize an attractive
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return on their investment in UBU TV.*
UBU TV: The Deal (Continued)

Minimum Capital Investment is $10,000
 Expected Hold Period is 16 months for stock
to become un-restricted and free-trading
 Expected Return for Early Investors:




$10,000 purchase of UBU stock at $0.75/unit
$26,667 value at $2.00/unit upon going public
167% Return on Investment, due to 62.5% market
discount and without any trade activity
Stock Market principles:




Stocks tend to go up upon dissemination of good news
Stocks tend to go down in value upon …bad news
The company, its market makers and PR firms expect a
lot of good news (signings, deals, milestones) in Year 1
We expect to have a corporate friendly float, which is
better to avoid shorts and to maintain stock equity.
30
UBU TV: Use of Proceeds
(Round 2, as 1st Rd is over)

UBU TV goes public
as a fully reporting,
fully audited,
OTCBB stock:

UBU TV Operating
Expenses, Year 1-worst case scenario:






Distribution-- $1.5
million
Working Capital-$0.5 million

Personnel: $ 100k
Overhead: $ 50k
Sales/Mktg: $ 50k
Contingency: $ 50k
N.B. Year 1 has been
completed successfully.
The $2 million raise for
Round 2 will fund UBU’s
continued, strategic
operations.
31
UBU TV: Investment Rounds
 1st
Round: $250,000 (COMPLETED)
 Acquisition
 2nd
of public shell & 1st Yr Ops
Round: $2,000,000
 Financing
of Film/TV Distribution Units and
Working Capital.
32
UBU TV: Recent Developments

Film Unit is currently in production on its first
independent film and pre-production on another film;
 Film Unit is currently negotiating a $20 million film
deal for UBU TV’s third feature film project, the
updated “WONDERFUL WIZARD OF OZ”;
 Company may be able enter into a deal with its
founder to take advantage of recent deals, including:



Executed Joint Venture deal with SUPERMODEL BEVERLY
JOHNSON to exploit her brand, which is currently a $60
million retail, hair and wig brand, in all other product
categories (e.g., hair care/skin care/cosmetics/fashion, etc.);
Distribution deal with SCHWARZKOPF HENKEL hair care
products (e.g., Citre Shine and Zero Frizz); and,
Ownership and distribution deal for two new brands; X THE
ENERGY DRINK and ISLANDS COCONUT RUM, which
have promising, multi-million dollar sales potential.
33
UBU TV: Going Public
•Benefits:
•Mergers & Acquisitions—increased capabilities
•Higher Valuations than for private companies
•Capital Formation—easier to raise financing
•Reduced Risk for Company and Investors
•Increased Liquidity & Security for Investors
•Exit Strategy is already addressed
•Actions Undertaken by UBU TV:
•Secured a top Washington, DC SEC Attorney
•Secured California Market Maker for UBU stock
•Company guaranteed to go public & get symbol
•Hired independent Public Auditor
•In final stages of going public
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Why Invest in UBU TV?*

You are investing in a
“public company” at a
highly discounted price,
building in a potential
multiple return for your
initial investment, if
successful.
 Your investment is liquid
& risk-managed, with
your return and exit
strategy dealt with upfront before you invest.
 You are buying into a
strong, management
team with a superior,
competitive strategy.



UBU TV serves the
largest, underserved TV
market in the US—
African-Americans.
UBU TV has the right
business and financial
model to compete
successfully.
Urban America needs a
powerful TV network
and media company
that promotes positive
images of people of
color—UBU TV.
35
Why We Are Doing UBU TV

We care about the media images of both
urban America and Black America
 We need a positive, progressive Black TV
network….UBU TV is that TV network
 We have a strategic, business model
 We have a superior, financial model
 We can leave a legacy for the world that
broadcasts the beauty, depth and breadth
of African-American culture and history
 We can live The Dream and build bridges
between people, communities and nations
36
UBU TV
“The Urban, Multi-Cultural
Media Company”
Contact: Walter Morgan
President/CEO
UBU TV Network
9601 Wilshire Blvd., Suite 1117
Beverly Hills, CA 90210
1-310-748-8580
www.ubutv.com
37