TheStreet.com Sells Promotions.com to its management team

The Fusion Team have completed over 70 digital and media transactions for its private, corporate and private equity clients. For more information contact pkelly@fusioncorp.co.uk or visit our website
 
ACQUISITION 
FDN Database Reference:  F231109-298
 
Acquirer:  The managers of the Promotions.com business, who prior to the closing were employees of the Company
ACQ Web:  http://www.promotions.com
Location:  USA, New York, NY
Region:  North America
Description:  Interactive services provider for marketers, agencies, and media companies
Category:  Marketing
 
Vendor:  TheStreet.com TSCM
Vendor Web:  http://www.thestreet.com
Location:  USA, New York, NY
Region:  North America 
Description:  American financial news, stock quotes and picks website
Category: Media, Finance
Contact 1:  Jim Cramer, chairman
Contact 2:  Daryl Otte, CEO
 
Aprox. Value:  $3.1M ($1M cash, $2.1M notes)
 
Details:  TheStreet.com has sold Promotions.com for an aggregate price of approximately $3.1 million. The purchaser is a company owned by the managers of the Promotions.com business, who prior to the closing were employees of the Company.  In connection with the Sale, the Company received a payment of $1.0 million in cash and notes in an aggregate principal amount of approximately $2.1 million.  The notes are payable in six equal monthly installments commencing April 1, 2010.  The Company was granted a security interest in the securities and assets of the Promotions.com business until the notes are fully paid, and one of the notes (with a principal amount of $0.3 million) is guaranteed by the principals of the Purchaser.  In the event that, prior to December 18, 2011, there is a change in control of the Purchaser or all or substantially all of the assets of the Promotions.com business are sold for a consideration  in excess of the Sale Price, the Company will be entitled to receive an additional payment from the Purchaser, equal to 50% of such excess if the event occurs on or before December 18, 2010 and 25% of such excess if the event occurs after December 18, 2010 and prior to December 18, 2011.
 
Link: Regulatory Filing

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s