As usual, the British press is all over the map with their reports. The Times warns that “the entire Woolworths empire, including its stake in 2Entertain, the BBC joint venture, is likely to be in administration by the end of the week.” They add that “the BBC is trying to cut its initial 100 million pound offer to take full control of 2Entertain.” But the Guardian fires back with a spokeswoman for the BBC calling the threat of administration for 2Entertain “categorically untrue.” She adds, “Our view is it is not going to go into administration, you can’t put a […]
Finance
Today's Debt Report: Redstone, Bertram's, and EUK
The WSJ continues to stay on top of Sumner Redstone’s efforts to restructure his debt and suggests that there may not be a clear answer (or end to speculation over CBS stock) this year: “Negotiations to restructure its debt are moving slowly and a deal looks increasingly unlikely this year, say people familiar with the situation.” Redstone is said to now have “a trove of cash and near-term liquid assets of around $500 million.” Along with the massive tax benefits that will come from his bargain sale of Midway Games, the hope is that provides National Amusements “with a cushion […]
Amazon Closes AbeBooks Purchase
The deal announced on August 1 for Amazon to acquired AbeBooks has now closed. The company reaffirms “AbeBooks will continue to function as a stand-alone operation based in Victoria, British Columbia. AbeBooks will maintain all its Web sites, including its Canadian Web site. The Web sites will continue to have country-specific content, such as reviews of Canadian-authored books and interviews of Canadian writers.” Still no update on what Amazon will do with its minority stake in LibraryThing. Release
Woolworths Goes Down; Bertram's Spared
Last week Woolworths officially filed for bankruptcy is here, with distributor EUK going into receivership along with the Woolworths’ stores division. Improbably, book distributor Bertram’s appears to have been spared, even though it was always listed as part of the EUK division. Deloitte, which had been advising Woolworths’ lenders over the past month, was appointed administrator. Bertram’s, along with Woolworth’s 2Entertain joint venture with the BBC, is reportedly operating normally for now, though it will be sold as part of the liquidation of Woolworths assets. Bertram’s says on their web site, “Bertram’s management has been in contact with Deloitte, which […]
Redstone "Sells" Midway for Tax Loss
As part of the restructuring of his heavily indebted assets Sumner Redstone’s holding company National Amusements will transfer their 87 percent stake in Midway Games to investor Mark Thomas for about $100,000, along with transferring that unit’s $70 million of debt. (It had a market value of $30 million on Friday.) But NA “is expected to realize a 2008 tax loss of more than $800 million, according to a person familiar with the situation.” On the larger question of how he will restructure $1.6 billion in debt, the WSJ adds that “the Redstones are discussing securing their outstanding debt with […]
HMH Officially Has No Idea What They Mean
Houghton Mifflin Harcourt’s botched public expression of their current acquisitions policy has reached comic levels. In the latest installment, vp of communications Josef Blumenfeld confirms for the AP our report from an agent earlier today that the children’s trade division is still buying projects. Otto Penzler adds that the freeze was news to him, and says that a “high-level Houghton executive” told him he could continue to acquire for his line of mysteries. “‘Does this mean I can keep buying books?'” he asked. “‘Absolutely,’ I was told.” Blumenfeld tries to persuade the AP that “talk of a freeze had been […]