Hollywood.com Sells For $10 Million To R&S Investments LLC
Hollywood Media Corporation (NASDAQ:HOLL) announced recently that they have sold Hollywood.com and Hollywood.com’s television businesses for a price of $10 million. About $1 million was paid to Hollywood Media up front and the $9 million would be paid as an earn-out payment. The buyer of the company is R&S Investments, LLC.
R&S Investments LLC is a company owned by Mitchell Rubenstein and Laurier Silvers. Rubenstein is the current Chairman and CEO and Silvers is President of Hollywood Media.
Hollywood.com makes up about 4% of Hollywood Media’s total revenue. But Hollywood.com had a net los of $2.5 million. If Hollywood.com resells within the next 3 years, Hollywood Media will receive 5% of any sale that is above $10 million.
By selling off Hollywood.com, the company plans on focusing on their profitable online Broadway ticketing company which includes Broadway.com.
According to paidContent, Hollywood Media sold off two arms of their company in 2006 and 2007. This included Baseline/StudioSystems and Showtimes. Showtimes was sold to The New York Times Company (NYSE:NYT) for $35 million. The company is also expected to make Hollywood.com a celebrity news site.
This was a rather odd acquisition. It is rare that a couple of members on the Board of the company buys the company that they work for. Hollywood Media is based in Boca Raton, FL.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry